Renata Annual Report 2019 2020 PDF
Renata Annual Report 2019 2020 PDF
PABX : 8001450-54
Fax : 880-2-8001446
Email : [email protected]
Website : www.renata-ltd.com
Corporate Headquarters: Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216, Bangladesh
TRANSMITTAL LETTER
The Shareholders
Bangladesh Securities and Exchange Commission
Registrar of Joint Stock Companies & Firms
Dhaka Stock Exchange Ltd.
Sub: Annual Report for the year ended June 30, 2020
We are pleased to enclose a copy of our Annual Report and Audited Accounts
including a Statement of Financial Position, a Statement of Comprehensive
Income, and notes and annexes as needed for the year that ended June 30,
2020. We hope you enjoy reviewing the Report and seeing how Renata has
grown as a company over the past year.
Yours sincerely,
AGENDA
Agenda-1: To receive, consider and adopt the Audited Accounts of the Company for the year ended
June 30, 2020 together with Reports of the Auditors and the Directors.
Agenda-2: To declare dividend for the year which ended on June 30, 2020 (See note ii).
Agenda-3: To elect Directors, in accordance with the relevant provisions of the Articles of Association of
the Company.
Agenda-4: To approve appointment of the Independent Director.
Agenda-5: To approve the related party transactions and the receivables from the subsidiaries.
Agenda-6: To appoint Auditors for the year 2020-21 and to fix their remuneration.
Agenda-7: To appoint Compliance Auditors for the year 2020-21 and to fix their remuneration.
NOTES:
i) The ‘Record Date’ (in lieu of Book Closure) is Monday, November 16, 2020. The Shareowners whose name will appear in
the Share Register of the Company and in the Depository Register on that Date will be eligible to attend the meeting and
qualify for the Dividend to be declared at the AGM.
ii) The Directors have recommended @ 130% cash dividend for year 2019-2020 and stock dividend (bonus share) @ 10%
for the year ended June 30, 2020.
iii) A member entitled to attend and vote at the Annual General Meeting may appoint a proxy to attend and vote on his/her
behalf. The Proxy Form, duly completed, must be deposited at the Registered Office of the Company at Plot # 1, Milk Vita
Road, Section-7, Mirpur, Dhaka-1216 or sent through e-mail at [email protected] not later than 48 hours before
the time fixed for the Meeting.
iv) Members are requested to notify change of address, if any, to the Company. For BO A/C holders, the same to be rectified
through their respective Depository Participants.
v) In Compliance with the BSEC Notification No.BSEC/CMRRCD/2006-158/208/Admin/81 dated 20 June 2018, Annual Report
2019-2020 will be duly sent in soft copy to the respective shareholders e-mail addresses available in their Beneficial Owner
(BO) Accounts maintained with the DP. These will also be available in Company’s website: www.renata-ltd.com
vi) Full login/participation process Digital Platform Meeting will also be available in the Company’s website: www.renata-ltd.com
vii) For any IT related guidance in this regard Members may contact cell number 01811-415502
ANNUAL
GENERAL MEETING
2018-2019
Table of Contents
1 Company Profile
3 Our Values
7 Chairman’s Statement
11 Board of Directors
16 Corporate Governance
17 Directors’ Report
39 Financial Highlights
40 Financial Trend
45 Product Portfolio
58 Auditors’ Report
Change of Name
1993 Renamed as Renata Limited after divestment of
shareholdings by Pfizer Corporation, USA
Field of Business
Manufacturing, Marketing & Distribution of Human Pharmaceuticals,
Animal Health Medicines, Nutritionals, and Vaccines
Contract Manufacturing
General products for UNICEF and SMC
MHRA Certificate
Medicines and Healthcare products Regulatory Agency, UK
has issued a Certificate of GMP Compliance of a Manufacturer
to Renata Limited for our Potent Products Facility at section 7, Mirpur, Dhaka &
Rajendrapur General Facility, Rajendrapur, Gazipur, Bangladesh
Investment in Subsidiaries
• 99.99% Shareholding in Renata Agro Industries Limited
• 99.99% Shareholding in Purnava Limited
• 100% Shareholding in Renata (UK) Limited
• 100% Shareholding in Renata Pharmaceuticals (Ireland) Limited
•1
Kashor Herbal Facility, Kashor
Hobirbari, Bhaluka, Mymensingh
Vertex Chambers
Hoque & Associates
Integrity
We conform to the highest
ethical standards.
Social Responsibility
We make active efforts to improve
the welfare of our community.
Building Leaders
Renata cannot grow without
leadership in all spheres of our
activities. Therefore creating
leaders is a key priority.
•3
Our
Mission
To provide maximum
value to our customers,
and communities where
we live and work.
Approach
to Quality
The endurance of a company’s
reputation depends upon the
quality of work it does rather
than the quantity. Hence, the
appreciation of quality must be
instinctive, and our commitment
to quality must be total.
Our Vision
To establish Renata permanently
among the best of innovative
branded generic companies.
A A A
RATED COMPANY
•5
6 •renata annual report
Chairman’s Statement
Welcome to the 47th Annual General Meeting of Renata Limited. closed down leading to a drastic fall in
the provision of healthcare.
We express our sincere condolences for the families of Covid-19 victims. May they find
strength during these hard times. In the smaller towns and rural areas,
during the first few months of the
This was an abnormal year due the Pandemic. Nevertheless, Company emerged relatively Pandemic, the bulk of patient needs
unscathed from the first wave of the Pandemic which affected the last two quarters of the were addressed by doctors located
fiscal year. Net profit and Net Sales grew by 8.0% and 8.7% respectively. While these results within chemist shops, known as
are not in line with the historical performance of the Company, the dramatic fall in economic dispensing general practitioners.
activity during the fourth quarter weighed heavily on our overall performance.
Some pharmaceutical companies
Contrary to popular belief, pharmaceutical markets in many parts of the world have actually encouraged doctors to switch to online
been quite depressed during this pandemic. The reason is obvious: People have been wary medical practice. While there were
of contagion-risk at hospitals, clinics, and private chambers. The reduced patient flow some takers, the overall response to
ironically reflects unmet healthcare needs. digital healthcare was disappointing.
In fact, healthcare providers themselves have discouraged patient visits. For example, the The overall impact of the Pandemic on
NHS in the UK asked patients not to visit their general practitioners unless absolutely the pharmaceutical industry can be
essential. surmised from Table No. 1.
Hong Kong, one of the early victims of the Pandemic experienced a sharp downturn in Essentially, Table No. 1 looks at what
patient numbers. Even much needed diagnostics or surgical interventions were postponed. the retail pharmaceutical market
would have been if it followed the
An article in the Lancet, drawing on public health data from India, reported that there had five-year growth trend versus what
been alarming reductions in essential public health and clinical interventions. Specifically, a actually transpired. The difference is
69% reduction in measles, mumps, and rubella vaccination in children, a 21% reduction in attributed to the Pandemic. It is a
institutional deliveries, a 50% reduction in clinic attendance for acute cardiac events and, somewhat simplistic analysis, but it
surprisingly, a 32% fall in inpatient care for pulmonary conditions in March, 2020, compared does show that that Pandemic has
with March, 2019. had a depressing effect on the market.
The Bangladesh pharmaceutical market is overwhelmingly reliant on the private practice of Medicine prices remained stable and
doctors. As soon as the Covid-19 numbers began rising, most chambers in the large cities affordable even though raw material
prices rose sharply during the first few
months of the pandemic. In particular,
Effect of the Pandemic on the Retail Pharmaceutical Table No. 1 a strict lockdown in India halted the
Market in Taka (Crores) shipment of basic chemicals, leading
to supply shortages. Locally, the small
Estimated packaging industries shut down their
Actual Market Actual operations which caused severe
Growth on Year Market disruptions in the supply chain for the
Year Ending Year Estimated pharmaceutical industry.
Ending June 2020 Ending Impact
5-Year June based on June of Apart from a few exceptions, key
CAGR 2020 CAGR 2020 Pandemic medicines continued to be available
Alimentary Track & Metabolism 18% 7% 9,641 8,731 (910) even though the social-distancing
Blood and Blood forming Organs 22% 6% 658 574 (85) imperative led to new challenges in
Cardiovascular System 19% 13% 2,786 2,628 (158) manufacturing.
Dermatologicals 15% 9% 577 546 (30)
GU System and Sex Hormones 19% 5% 856 757 (100) Renata implemented strict hygiene
Systemic Hormones 17% -1% 301 253 (47) protocols beginning early March. In
Systemic Anti-Infectives 13% -7% 3,993 3,294 (699) manufacturing, we placed special
Hospital Solutions 2% -8% 143 128 (14) emphasis on social-distancing. In this
Antineoplast + Immunomudulators 18% 7% 78 71 (7) regard, work timings were extended
Musco-Skeletal System 14% -2% 1,287 1,098 (190) and re-organized to lower the
Nervous System 16% 5% 2,653 2,403 (250) worker-density at any given time.
Parasitology 7% -1% 159 147 (12) Moreover, extra makeshift canteens
Respiratory System 19% 9% 2,495 2,290 (204) were opened up at all manufacturing
Sensory Organs 15% -6% 372 305 (66) sites. The standard-operating-
Diagnostic Agents 37% -3% 1 0 (0) procedure (SOP) adopted by Renata
Various 29% -3% 81 61 (20) for prevention of Covid-19 can be
found here:
TOTAL RETAIL MARKET 17% 4% 26,081 23,287 (2,794)
https://renata-ltd.com/featured-news/
IMS DATA
sop-for-covid-19-prevention-version-3-0/
•7
Unfortunately, the highly contagious nature of the disease, First, the Pandemic has largely been an urban phenomenon,
our safety protocols were not enough to avoid infection. whereas most farms are located in rural areas.
Table No. 2 shows the number of employees affected due to
Covid-19. Second, while reduced aggregate demand led to cutbacks in animal
husbandry, the impact on the animal health industry was different
Covid-19 at Renata Table No. 2 for domestic producers and importers. So, for example, while
weekly broiler day-old-chick (DOC) production fell from a peak of
Infections Deaths 1.8 crores to only 1.2 crores, the brunt of this fall in production was
March 2 borne by traders who import medicines from Covid-19 affected
April 2 countries. In contrast, domestic producers that had adequate stock
May 24 of raw materials were able to make further inroads into the market
June 56 due to reduced competition from imported products.
July 27
For these two reasons, our Animal Health business continued to do
August 18 1
well, even during these difficult times.
September 15
TOTAL 144 1 I now take a very brief look at our constituent businesses.
The tragic loss of one life was that of a long-term consultant. Animal Health: Our growth was 18% compared to the
The remainder of the infected employees are doing well. So market-growth of 15%. We continued to consolidate our position as
far, the cure rate is near 100%. market-leader.
Activities at regulatory authorities such as MHRA and Contract-Manufacturing: This growing segment of our core
USFDA also slowed down considerably. As a result, new business was unscathed by the Pandemic. Significantly, the
registrations by Renata have suffered considerably. During Government has now included third-generation birth control pills in
the entire fiscal year, we managed only one new registration its Family Planning Programme. We hope to win a sizeable portion
in the US. However, it is noteworthy that we filed a NCE-1 in of this business.
the US, which brings our total first-to-file (FTF) molecules to
two. Table No. 3 shows the registrations/filings during Outlook for 2021: Our sales growth has been at a near-normal rate
2019-2020 since August 2020. This is because doctors returned to their
practice after a hiatus of nearly four months. In essence, the outlook
Table No. 3 for 2021 remains highly dependent on the continuing severity of the
Pandemic. Moreover, one has to accept that living with Covid-19
Registration Status Country might become a reality for the next few years. So, rather than trying
to predicting the future in the short-run, we ought to remain focused
Rosuvastatin Calcium Approved USA on our long-term goals. This focus means investing heavily in
Tablets 5/10/15/20 mg people, factories, and R&D, so that when life becomes normal, we
make an increasing contribution towards making life worth living.
Name withheld ANDA under
Injection Assessment USA
The Pandemic also affected animal husbandry which in turn Dr. Sarwar Ali
impacted the Animal Health Industry. However, the effect Chairman
was less severe on the domestic industry for two reasons: October 26, 2020
•9
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10 •renata annual report
Dr. Sarwar Ali, Chairman
Current Responsibilities
Chairman, Board of Directors, Renata Limited
Trustee, Liberation War Museum
Executive President, Chhayanaut
Chairman, Board of Management, BIRDEM Hospital
Vice President, Bangladesh Diabetic Association
Past Responsibilities
Director, Renata Limited
Managing Director, Renata Limited
Medical Director, Pfizer (Bangladesh) Limited
President Bangladesh Employers’ Federation
International Councilor of IPPNW
Secretary General, Bangladesh Medical Association
Member, Dhaka University Senate
Education
MBBS, Dhaka Medical College
•11
Zahida Fizza Kabir, Director
Current Responsibilities
Director, Renata Limited
CEO, Sajida Foundation
Board Member, Action Aid Bangladesh
Chairperson, Psychological Health & Wellness Clinic Ltd.
Managing Director, Home and Community Care and Inner Circle
Private Limited
Past Responsibilities
Exceutive Director, Sajida Foundation
Director of Programs, Sajida Foundation
Senior Program Officer, Sajida Foundation
Education
Masters Degree in International and Intercultural Management,
School for International Training, Vermont, USA
Bachelor’s Degree in Social Work,
University of the Philippines
Post graduate diploma on “Organizational leadership”,
Said Business School, University of Oxford
•13
Nehal Ahmed, Independent Director
Current Responsibilities
Director, Renata Limited
Director, A-CUBED PTE Ltd., Singapore
Advisor, SHEBA.XYZ
Advisor, Amartaka.com
Advisor, Xenious International (Pvt) Ltd.
Past Responsibilities
Senior Director (Head of Communications), Grameenphone
Director (Marketing), Grameenphone
Executive Vice President, Robi Axiata Limited
Chief Marketing Officer, AUGERE Wireless Broadband Bangladesh
Limited (QUBEE)
Global Marketing Manager, BACARDI Global Brands Ltd., London, UK
European Brand Director, MARS Snackfoods Europe, Slough, UK
Global Marketing Manager, MARS Drinks Global, Basingstoke, UK
International Brand Marketing Manager, British American Tobacco PLC,
London, UK
Group Brand Manager, British American Tobacco Bangladesh Ltd.,
Education
Innovation – Strategy to Execution, INSEAD Business School, Singapore
Strategic Marketing Program, London Business School (LBS), London
Bachelor of Science in Industrial Engineering and Operations,
The University of Massachusetts, USA
•15
Director, Manufacturing
BUSINESS ACTIVITIES
Turnover during 2019-20 was Taka 24,164.0 million registering a growth of 8.7% over last year’s turnover of Taka
22,220.8 million. Profit after tax was Taka 4,129.5 million – a growth of 8.0%. Earnings per Share (EPS) stood at Taka
46.62 against Taka 43.16 of 2018-19.
CAPITAL EXPENDITURE
The following capital expenditure made by the Company during the year amounted to Taka 2,492.6 million.
Taka in millions
2019-20
The investments were funded from internally generated cash and bank loans.
The Directors retiring by rotation under Articles 109, 115 and 116 of the Articles of Association of the Company
Dr. Sarwar Ali have been longest in office since election, and constitute one-third of the Directors who retire by rotation,
being eligible offer himself for re-election.
CONSOLIDATION OF ACCOUNTS
The Company is consistently following the Code of International Financial Reporting Standard as adopted by the
Institute of Chartered Accountants of Bangladesh. According to International Financial Reporting Standard-10,
(IFRS-10) the Company has presented all the relevant consolidated financial statements with those of its subsidiaries.
•19
REMUNERATION PAID TO THE DIRECTORS
During the year, the Company has paid BDT 2,40,000 as Board Meeting attendance fees and BDT 60,000 for Audit
Committee Meeting attendance fees. The remuneration of the Directors has been mentioned in Note 34 of the financial
statement.
ADDITIONAL STATEMENT
The Directors are pleased to make the following additional statements in respect of the Report prepared under section
184 of the Companies Act 1994.
(vi) Executives:
Mr. Halimusshan 0
Dr. Sayma Ali 16,505
Dr. Sarwar Ali
Mr. Monowarul Islam 2,055 Chairman
Mr. Sirajul Hoque 9,000 October 26, 2020
Mr. Zaki Chowdhury 0
•21
ANNEXURE-A
[(As per condition No. 1(5)(xxvi)]
Subject: Declaration on Financial Statements for the year ended on June 30, 2020
Dear Sirs,
Pursuant to the condition No. 1(5)(xxvi) imposed vide the Commission’s Notification No.
BSEC/CMRRCD/2006-158/207/Admin/80 Dated June 3, 2018 under section 2CC of the
Securities and Exchange Ordinance, 1969, we do hereby declare that:
(1) The Financial Statements of Renata Limited for the year ended on June 30,
2020 have been prepared in compliance with International Accounting
Standards (IAS) or International Financial Reporting Standards (IFRS), as
applicable in the Bangladesh and any departure there from has been adequately
disclosed;
(2) The estimates and judgments related to the financial statements were made on a
prudent and reasonable basis, in order for the financial statements to reveal a true
and fair view;
(3) The form and substance of transactions and the Company’s state of affairs have
been reasonably and fairly presented in its financial statements;
(5) Our internal auditors have conducted periodic audits to provide reasonable assurance
that the established policies and procedures of the Company were consistently
followed ; and
(6) The management’s use of the going concern basis of accounting in preparing the
financial statements is appropriate and there exists no material uncertainty related to
events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern.
(i) We have reviewed the financial statements for the year ended on June 30, 2020 and
that to the best of our knowledge and belief:
(a) these statements do not contain any materially untrue statement or omit any
material fact or contain statements that might be misleading;
(b) these statements collectively present true and fair view of the Company’s affairs
and are in compliance with existing accounting standards and applicable laws.
(ii) There are, to the best of knowledge and belief, no transactions entered into by the
Company during the year which are fraudulent, illegal or in violation of the code of
conduct for the company’s Board of Directors or its members.
Sincerely yours,
•23
ANNEXURE-B
[(Certificate as per condition No. 1(5)(xxvii)]
STATUS OF COMPLIANCE
OF THE CORPORATE GOVERNANCE GUIDELINE (CGG), 2018
Status of compliance with the conditions imposed by the Commission's Notification No. BSEC/CMRRCD/2006-158/207/
Admin/80, dated 03 June, 2018 issued under section 2CC of the Securities and Exchange Ordinance, 1969:
(Report under Condition No. 9.00)
•25
STATUS OF COMPLIANCE
OF THE CORPORATE GOVERNANCE GUIDELINE (CGG), 2018
•27
STATUS OF COMPLIANCE
OF THE CORPORATE GOVERNANCE GUIDELINE (CGG), 2018
1(5)(xxiv) In case of the appointment or reappointment of a director, a disclosure on the following information to the shareholders: -
The code of conduct as determined by the NRC shall be posted on the website of the
1(7)(b) √ - -
company
•29
STATUS OF COMPLIANCE
OF THE CORPORATE GOVERNANCE GUIDELINE (CGG), 2018
5(2)(e) The company secretary shall act as the secretary of the Committee. √ - -
The quorum of the Audit Committee meeting shall not constitute without at least 1
5(2)(f) √ - -
(one) independent director.
The Board of Directors shall select 1 (one) member of the Audit Committee to be
5(3)(a) √ - -
Chairperson of the Audit Committee, who shall be an Independent director;
In the absence of the Chairperson of the audit committee, the remaining members
may elect one of themselves as Chairperson for that particular meeting, in that case
5(3)(b) there shall be no problem of constittuting a quorum as required under condition √ - -
No.5(4)(b) and the reson of absence of the regular chairperson shall be duly recorded
in the minutes.
Chairperson of the Audit Committee shall remin present in the Annual General Meeting -
5(3)(c) √ -
(AGM):
The Audit Committee shall conduct at least its four meetings in a financial year.
5(4)(a) Provided that any emergency meeting in addition to regular meeting may be convened √ - -
at the request of any one of the members of the Committee;
The quorum of the meeting of the Audit Committee shall be constituted in presence of
5(4)(b) either two members or two third of the members of the Audit Committee, whichever is √ - -
higher, where presence of an independent director is a must.
5(5) The Audit Committee shall:
5(5)(a) Oversee the financial reporting process; √ - -
5(5)(b) Monitor choice of accounting policies and principles; √ - -
•31
STATUS OF COMPLIANCE
OF THE CORPORATE GOVERNANCE GUIDELINE (CGG), 2018
6(4)(a) The NRC shall conduct at least one meeting in a financial year; √ - -
•33
STATUS OF COMPLIANCE
OF THE CORPORATE GOVERNANCE GUIDELINE (CGG), 2018
The professional who will provide the certificate on compliance of this Corporate
9(2) Governance Code shall be appointed by the Shareholders in the annual general √ - -
meeting.
The directors of the company shall state, in accordance with the Annexure-C attached,
9(3) in the directors’ report whether the company has complied with these conditions or √ - -
not.
AUDIT COMMITTEE REPORT FOR THE YEAR ENDED JUNE 30, 2020
a) To review the quarterly, half yearly and the audited financial statements and management letter if any;
b) To recommend to the Board of Directors the quarterly, half yearly and the audited financial
statements for approval;
c) To review the internal audit findings and monitor the progress of potential issues;
d) To review the statement of all related party transactions submitted by the management; and
e) To recommend to the Board of Directors the reappointment and refix the remuneration of
M/S ACNABIN, Chartered Accountants as External Auditors of the Company for the year 2020-2021.
The committee reviewed the internal audit reports, financial statements and the external audit report.
The committee didn’t find any material deviation, discrepancy or any adverse finding / observation in the
area of reporting.
Nehal Ahmed
Chairman
Audit Committee
•35
RENATA LIMITED
REPORT OF THE NOMINATION & REMUNERATION COMMITTEE (NRC)
The Board of Directors of Renata Limited has duly constituted a Nomination and Remuneration Committee (NRC), in
accordance with the requirements of the BSEC Code of Corporate Governance. .
The NRC at Renata provides guidance to the management in identifying the Company’s needs for employees at different levels
and determining their selection, transfer or replacement and promotion criteria.
The NRC aid the Board in the nomination criteria or policy for determining qualifications, positive attributes, experiences and
independence of Directors and other top-level executives. The NRC also assists the Board to formulate policy for formal and
continued process of considering remuneration/honorarium of Directors and top-level executives.
The Report of Nomination and Remuneration Committee is prepared in compliance with the Corporate Governance Code
issued by the Bangladesh Securities and Exchange Commission (BSEC).
This Report describes the nomination and remuneration policies, evaluation criteria and activities of the NRC at Renata Ltd.
a) Nomination Criteria
i. the Company policies and guidelines as well as country regulations (where applicable) are followed
ii. transparency in all respects is maintained in the selection process
iii.a process which is compatible with international standards as well local best practices is follows
iv. core competencies of the respective personnel for the different level of management and employees of the Company
is recognized.
v. efforts are made to ensure diversity in terms age, maturity, qualification, expertise and gender disciplines
vi. the selection process reflects the value the company places on equality and diversity.
❏ Executive Director:
The NRC recommends the candidate(s) for Executive Director(s), based on nomination by the majority shareholders.
The Board of Directors appoint the Executive Director/s upon nomination and recommendation of the NRC.
❏ Non-Executive Director:
The NRC recommends candidate(s) for Non-Executive Director(s), based on nomination by the majority shareholders,
the Government shareholders and other general shareholders. The Board of Directors appoints the Non-Executive
Directors upon nomination and recommendation of the NRC.
❏ Independent Director:
The Independent Director shall be a knowledgeable individual with integrity who is able to ensure compliance with
financial laws, regulatory requirements and corporate laws that can make meaningful contribution to the business. The
Independent Director should have competence relevantto the sector in which the Company operates, and necessarily
should have the qualifications as required by the regulations of BSEC. The Board of Directors appoints Independent
Directors upon nomination and recommendation of the NRC, which is then approved by shareholders at the Annual
General Meeting of the Company.
❏ Top-level executives:
The NRC identifies and recommends candidate(s) for top-level executives upon thorough scrutiny by the Managing
Director, Executive Committee and Human Resources Department (HRD), considering relevant qualifications,
experience, skills and leadership, as required for the respective positions based on the Company’s internal selection
process.
❏ Other Employees:
The NRC sets a guideline to identify the Company’s need for employees at different levels, and empowers the relevant
management of the Company’s HRD for selection, transfer, replacement and promotion of respective employees
based on the Company’s internal processes.
a) Executive Directors
The respective line authority of the Executive Director(s) sets the performance measurement criteria based on the
respective role profile and responsibilities through a Company appraisal process at the beginning of each calendar
year. The Executive Director(s) prepare the performance document (half-year and year end). The respective line
authority then evaluates the performance of the Executive Director(s) according to the measurement criteria.
In addition, the NRC formulates guidelines for evaluation and assessment of all employees in the organization. These
guidelines are then passed on to Human Resources Division. These guidelines are followed when assessing the
performance of all employees.
d) Mid-level Employees:
The respective line management or line authority of mid-level employees and other employees set the performance
measurement criteria based on respective roles and responsibilities to achieve people and business objectives through
Company appraisal processes at the beginning of each calendar year.
e) Junior-level Employees:
The respective line management or line authority of junior-level employees and other employees set the performance
measurement criteria based on respective roles and responsibilities to achieve people and business objectives through
Company appraisal processes at the beginning of each calendar year
ii) formulating the criteria for determining qualifications, positive attributes and independence of a director and
recommend a policy to the Board, relating to the remuneration of the directors, top level executive, considering the
following:
iii) the level and composition of remuneration is reasonable and sufficient to attract, retain and motivate suitable
directors to run the company successfully;
iv) the relationship of remuneration to performance is clear and meets appropriate performance benchmarks; and
v) remuneration to directors, top level executive involves a balance between fixed and incentive pay reflecting short
and long-term performance objectives appropriate to the working of the company and its goals;
•37
vii) reviewing the policy for authorizing claims for expenses from the Directors;
ix) identifying the company’s needs for employees at different levels and determine their selection, transfer or
replacement and promotion criteria; and
x) developing, recommending and reviewing annually the company’s human resources and training policies;
In 2019-20 the Committee met twice, dated 13 November, 2019 and June 02, 2020. The Managing Director, Head of Finance
and Head of HR attended the meeting by invitation of the committee.
Nehal Ahmed
Chairman
Nomination and Remuneration Committee
•39
TAKA (MILLIONS)
24164.0
11531.1
11154.9
22220.8
25000 12000
9346.4
18603.7
10000
8102.9
16043.4
20000
6545.1
12880.0
8000
15000
6000
3779.5
7318.1
10000
4000
5000
2000
0 0
2015 2016 2016-2017 2017-2018 2018-2019 2019-2020 2015 2016 2016-2017 2017-2018 2018-2019 2019-2020
(6 months) (6 months)
5000 1500
4129.5
1240.2
3823.3
4000 1200
3196.9
885.8
883.0
2612.1
770.3
3000 900
2006.6
529.5
2000 600
1143.3
1000 300
0 0
2015 2016 2016-2017 2017-2018 2018-2019 2019-2020 2015 2016-2017 2017-2018 2018-2019 2019-2020
(6 months)
Application:
2019-2020 2018-2019
22.3% 24.6%
9.6%
43.1%
42.5% 7.5%
25.7% 24.9%
•41
Corporate Social Responsibility (CSR) is the continuing The following areas are covered:General,
commitment by business to behave ethically and Gynaecology, Cardiovascular, Diabetes, Accident,
contribute to economic development while improving the Diagnostic, Gastroentology, Oncology, Pediatrics,
quality of life of the workforce and their families as well as Dentistry, Skin & Dermatology, Nephrology,
of the local community and society at large. We strongly Gastroentology, ENT
believe that in order to be successful, it is necessary to
create value, not just for the company but also for the B) SUPPORT TO CHARITABLE
society that we live in. In our company, corporate social
responsibility means caring for our employees, assisting ORGANIZATIONS:
disadvantaged members of our society, and building a Renata encourages organizations that are
working for a change in society by providing
sustainable environment.
financial support to them. Over the years, Renata
Ltd. has made donations and contributions to a
Led by this believe, Renata donates substantially on
number of reputable charitable organizations.
various CSR activities:
Most of these organizations are working for the
betterment of underprivileged and disadvantaged
A) HEALTHCARE FOR EMPLOYEES members of our society. Donations made to
AND THEIR FAMILIES charitable organizations make up a significant
The Renata health program covers all permanent portion of Renata’s total CSR expenditure every
employees, their spouses, and children. This year. Renata has extended its support to the
comprehensive program includes surgery, hospitalization, following charitable organizations over the last few
as well as routine doctor visits. At Renata, all employees years.Here is a list of the charitable organizations
to which Renata has made financial donations
are reimbursed for their personal medical expenses.
NAME ACTIVITIES
JAAGO Foundation is a non-profit that works to provide education to children from
Jaago socially and economically disadvantaged backgrounds. Various support functions
Foundation work to ensure the sustainable growth of their core schooling program as well
contribute to improved livelihoods within affected communities.
One Degree One Degree Initiative is a non-profit that provides mentorship to young people in
Initiative order to engage them as active citizens and inspire entrepreneurship
The Poverty The Poverty Fighter Foundation is a dedicated non-profit organization working to
Fighter Foundation reduce poverty in Bangladesh. Renata supported their program aiming to empower
children through education.
Birangona Project focuses on the often forgotten women war heroes of Bangladesh
Birangona Project and helps to empower these heroes and provide them with sustainable livelihoods
and support.
•43
NAME ACTIVITIES
Centre for Cancer Centre for Cancer Prevention and Research (CCPR) is a voluntary organization
Prevention and working in Bangladesh for cancer prevention and control.
Research
Combined Medical Combined Military Hospital (CMH) to open an In-vitrofertilization center aiming to
Hospital offer a comprehensive range of fertility treatment.
ANTI-HYPERTENSIVE
Cardipin Amlodipine Tablet 5mg 6x10’s
Cardipin Plus Amlodipine+Atenolol Tablet 5mg+50mg 6x10’s
Alphapress Prazosin Hydrochloride Tablet 1mg & 2mg 10x10’s
Alphapress XR Prazosin Hydrochloride Tablet 2.5mg & 5mg 3x10’s
Ostan Losartan Potassium Tablet 25mg, 50mg 3x10’s, 5x10’s
Ostan Plus Losartan Potassium+ Hydrochlorothiazide Tablet 50mg+12.5mg 3x10’s
Plagrin Clopidogrel Tablet 75mg 3x10’s
Plagrin Plus Clopidogrel+ Aspirin Tablet 75mg+75mg 3x10’s
Pendoril-2 Perindopril Tablet 2mg 2x10’s
•47
Trade Name Generic Name Formulation Strength Pack Size
ANTI-HYPERTENSIVE
Pendoril-4 Perindopril Tablet 4mg 2x10’s
Pendoril Plus-2 Perindopril + Indapamide Tablet 2mg + 0.625mg 2x10’s
Pendoril Plus-4 Perindopril + Indapamide Tablet 4mg + 1.25mg 2x10’s
Bisoren-2.5 Bisoprolol Fumarate Tablet 2.5mg 3x10’s
Bisoren-5 Bisoprolol Fumarate Tablet 5mg 3x10’s
Bisoren Plus 2.5 Bisoprolol+Hydrochlorothiazide Tablet 2.5mg+6.25mg 3x10's
Bisoren Plus 5 Bisoprolol+Hydrochlorothiazide Tablet 5mg+6.25mg 3x10's
Uritone-20 Furosemide+ Spironolactone Tablet 20mg + 50mg 3x10’s
Uritone-40 Furosemide+ Spironolactone Tablet 40mg + 50mg 3x10’s
Azisan Azilsartan Medoxomil Potassium Tablet 40mg, 80mg 2x10’s, 1x10's
Azisan Plus Azilsartan + Chlorthalidone Tablet Azilsartan 40mg + 10's
Chlorthalidone 12.5mg
Alphapress XR Prazosin Hydrochloride Tablet 2.5mg 3x10’s
Alphapress XR Prazosin Hydrochloride Tablet 5mg 3x10’s
ANTI-ANGINA
Antogin ER Ranolazine Tablet 500mg 4X5's
Trizedon MR Trimetazidine Dihydrochloride Tablet 35mg 3x10’s
LIPID LOWERING AGENT
Taven Atorvastatin Tablet 10mg/20mg/40mg 3x10’s
Fenobate Fenofibrate Capsule 200mg 5x6’s
Rolip Rosuvastatin Calcium Tablet 5mg, 10mg 3x10’s
ANTI-DIABETIC
Bigmet-500 Metformin HCL Tablet 500mg 10x10’s
Bigmet-850 Metformin HCL Tablet 850mg 10x10’s
Bigmet 500 XR Metformin HCL Tablet 500mg 5x6’s
Glicron CR Gliclazide CR pellets Capsule 30mg 3x10’s
Glicron Gliclazide Tablet 80mg 3x10’s
Glinta Linagliptin Tablet 5 MG 2X10'S
Sitamet Metformin+Sitagliptin Tablet 500mg+50mg 1x10’s
HAIR REGROWTH
Regain 5% Minoxidil Solution 5% 60ml
Regain 2% Minoxidil Solution 2% 60ml
ANTIGOUT
Feburen Febuxostat Tablet 40mg 3x10’s
Feburen Febuxostat Tablet 80mg 1x10’s
NSAIDS
Cartilage Max Glucosamine Sulfate+Diacerein Tablet 750mg+50mg 3x10’s
Ceclofen Aceclofenac Tablet 100mg 5x10’s
Dysmen Mefenamic Acid Tablet 250mg 10x10’s
Dysmen Mefenamic Acid Tablet 500mg 5x10’s
Rolac Ketorolac Tablet 10mg 4x14’s
ANTIULCER AGENTS
Prazole Omeprazole Capsule 20mg 6x10’s
Maxpro Esomeprazole Tablet 20mg 10x14’s
Maxpro Esomeprazole Tablet 40mg 4x10’s
Maxpro Esomeprazole Capsule 20mg 10x10’s
Maxpro Esomeprazole Capsule 40mg 10x6’s
Maxpro Esomeprazole Injection 40mg 1x1’s
Maxpro HP Esomeprazole+Amoxicillin+ Capsule+Tablet+ 20mg+500mg+ 14x4’s
Clarithromycin Tablet 500mg
Protonil Pantoprazole Tablet 20mg 5x10’s
Protonil Pantoprazole Tablet 40mg 3x10’s
Profast Rabeprazole Tablet 20mg 6x10's
ANTI-FUNGAL AGENT
Lucan-R Fluconazole Capsule 50mg 4x10’s
Lucan-R Fluconazole Capsule 150mg 2x6’s
Lucan-R Fluconazole Capsule 200mg 2x6’s
Lucan-R Fluconazole DPS 50mg/5ml Bottle 35ml
Conasyd Tioconazole Cream 1% dermal Tube 10gm
ANTI-TUBERCULOSIS AGENT
Streptomycin Streptomycin Sulfate Injection 1gm Vial 1gm
ANTI-SPASMODIC
Algin Tiemonium Tablet 50mg 10x10’s
Algin Tiemonium Injection 5mg/2ml 1x5’s
Algin Tiemonium Syrup 10mg/5ml Bottle 100ml
*DPS= Dry Powder for Suspension
•49
Trade Name Generic Name Formulation Strength Pack Size
STEROID
Deltasone Prednisolone Tablet 5mg 25x10’s, 50x10’s
Deltasone Prednisolone Tablet 10mg 10x10’s
Deltasone Prednisolone Tablet 20mg 5x10’s
Deltasone Prednisolone Oral Solution 5mg/5ml Bottle 100ml
Deltasone Prednisolone Oral Solution 5mg/5ml Bottle 50ml
Dexa Dexamethasone Tablet 0.5mg 25x10’s
Dexa IM/IV Dexamethasone Injection 5mg/ml 10’s
ANTI-OSTEOPOROTIC
Ivana Ibandronic Acid Tablet 150mg 1’s
ANTI-ALLERGIC
Fenadin Fexofenadine HCL Tablet 60mg 3x10’s
Fenadin Fexofenadine HCL Tablet 120mg 5x10’s
Fenadin Fexofenadine HCL Tablet 180mg 2x10’s
Fenadin Fexofenadine HCL Suspension 30mg/5ml Bottle 30ml
Fenadin Fexofenadine HCL Suspension 30mg/5ml Bottle 50ml
Stark Rupatadine Tablet 10mg 3x10’s
HORMONE
Normens Norethisterone Acetate Tablet 5mg 10x10’s
Bredicon Desogestrel Tablet 75mcg 1x28’s
Criptine Bromocriptine Mesilate Tablet 2.5mg 1x30’s
Emcon 1 Levonorgestrel Tablet 1.5mg 1x1’s
Letrol Letrozole Tablet 2.5mg 2x5’s
Ovulet 50 Clomiphene Citrate Tablet 50mg 1x10’s
Ovulet 100 Clomiphene Citrate Tablet 100mg 1x5’s
Medrogest Medroxyprogesterone Acetate Tablet 5mg, 10mg 3x10’s
Thyrox 50 Levothyroxine Sodium Tablet 50mcg 3x30’s
Menorest Tibolone Tablet 2.5mg 1x28’s
Desolon Desogestrel+Ethinylestradiol Tablet 0.15mg+0.03mg 1x21’s
Giane 35 Cyproterone Acetate + Tablet 2.0mg+ 1x21’s
Ethinylestradiol 0.035mg
Nandron Nandrolone Phenylpropionate Injection 25mg/ml 1x5’s
Nandron Nandrolone Decanoate Injection 50mg/ml 1x1’s
Gestrenol Allylestrenol Tablet 5mg 5x10’s
Regumen Lynestrenol+Ethinylestradiol Tablet 2.5mg+0.05mg 1x21’s
Estracon Conjugated Estrogens Tablet 0.625mg 28’s
Microgest Natural Micronized Progesterone Capsule 100mg 3x10's
Microgest Natural Micronized Progesterone Capsule 200mg 3x10's
Microgest Natural Micronized Progesterone Capsule 400mg 2x5's
Novelon Drospirenone and Ethinylestradiol Tablet 3mg & 0.03mg 1x21's
Novelon lite Drospirenone and Ethinylestradiol Tablet 3mg & 0.02mg 1X24's
Danzol Danazol Capsule 100mg & 200mg 3 x10’s, 2x10’s
Cabolin Cabergoline Tablet 0.5mg 2x2’s
Indula Misoprostol Tablet 200mcg 3x10’s
Mif Mifepristone Tablet 200mg 1x3’s
Androcap Testosterone undecanoate Capsule 40mg 3X10’s
Gynova Micronized estradiol Tablet 2mg 3X10’s
5X Ulipristal Acetate Tablet 30mg 1’s
Mercazole Carbimazole Tablet 5mg 6X10’s
AB Kit Mifepristone+Misoprostol Tablet 200mg+200mcg 1X5’s
ANTI-CANCER
Proscan Flutamide Tablet 250mg 3x10’s
Sofenib Sorafenib Tablet 200mg 3x4’s
Erloren Erlotinib Tablet 100mg 1x7’s
Erloren Erlotinib Tablet 150mg 1x7’s
Tyrokin Imatinib Tablet 400mg 1x10’s
Tyrokin Imatinib Tablet 100mg 1x10’s
•51
Trade Name Generic Name Formulation Strength Pack Size
OXYTOCIC
Arbecin Carbetocin IV Injection 1ml 1X1’s
Oxyton Oxytocin Injection 5 I.U. 1x10’s
ANTI-FIBRINOLYTICS
Xamic Tranexamic Acid Capsule 500mg 2x10’s
Xamic Tranexamic Acid Injection 500mg/5ml 1x5’s
ANTI-ASTHMA
Odmon Montelukast Chewable Tablet 4mg 3x10’s
Odmon Montelukast Tablet 5mg 3x10’s
Odmon Montelukast Tablet 10mg 3x10’s
Pulmino Doxofylline FC Tablet 400 MG 5X6'S
Pulmino Doxofylline FC Tablet 200 MG 5X6'S
Trulax Levosalbutamol Syrup 1mg/5ml Bottle 100ml
Totifen Ketotifen Tablet 1mg 10x10’s
Totifen Ketotifen Syrup 1mg/5ml Bottle 100ml
EXPECTORANT
Topex Guaiphenesin Pseudoephedrine Syrup 131.25mg/5ml Bottle 100ml
Recof Ambroxol Hydrochloride Syrup 15mg/5ml Bottle 100ml
Recof PD Ambroxol Hydrochloride Paed. Drops 6mg/ml Bottle 15ml
GASTROPROKINETIC AGENTS
Domiren Domperidone Tablet 10mg 15x10’s
Domiren PD Domperidone Paed. Drops 5mg/ml Bottle 15ml
Domiren Domperidone Suspension 5mg/5ml Bottle 60ml
NARCOTIC ANALGESIC
Fentanyl Fentanyl Citrate IV Injection 100mcg/2ml 1x5’s
ANTIPYRETIC/ ANALGESIC
Pyralgin Paracetamol Tablet 500mg 50x10’s
Pyralgin Paracetamol Suspension 120mg/5ml Bottle 60ml
Pyra Plus Paracetamol+Caffeine Tablet 500mg+65mg 15x10’s
ANESTHETIC
Neos-R Neostigmine Injection 5ml, 1ml 1x5’s
Kain Ketamine Injection 50mg/ml 1’s
Sivicaine Heavy Bupivacaine+Dextrose Injection 5mg+80mg 1x5’s
Epidron Ephedrine Injection 5mg 1x5’s
ANTIVIRAL
Enteca Entecavir Tablet 0.5mg 1x10’s
Buviren Sofosbuvir Tablet 400mg 1x6’s
SULPHONAMIDES
Diadin Sulphadimidine Sodium BP Injection 333mg/ml 30ml, 100ml
Diadin Sulphadimidine BP Bolus 5gm 10 x 2’s
Sulpha -3 Sulphadiazine USP Bolus 1.666gm+ 10 x 2’s
Sulphadimidine BP 1.666gm+
Sulphapyridine USP 1.666gm
Renatrim Sulphadiazine + Trimethoprim Bolus 1000mg+200mg 10 x 2’s
ANTHELMINTIC
Helmex Albendazole USP Tablet 600mg 5 x 4’s
Nitronex 34% Nitroxynil BP Injection 340mg/ml 10ml, 30ml
Tremacid Oxyclozanide BP Tablet 1000mg 5 x 4’s
Renadex Triclabendazole + Tablet 900mg+600mg 10 x 2’s
Levamisole
ANTIPROTOZOAL
Ectorid Imidocarb Dipropionate Injection 133.26mg/ml 10ml
Renamet Bolus Metronidazole Bolus 2gm//Bolus 5 x 4’s
ANTI-HISTAMINIC
Dellergen Promethazine HCL USP Injection 50mg/ml 10ml
Dellergen Promethazine HCL USP Bolus 150mg/Bolus 10 x 4’s
Renacin Chlorpheniramine Maleate Injection 10mg/ml 10ml, 100ml
•53
Trade Name Generic Name Formulation Strength Pack
NSAID
Renafen Ketoprofen Injection 100mg/ml 10ml
Pyralgin Paracetamol Tablet 2gm 10 x 2’s
Fevenil Tolfenamic Acid Injection 40mg/ml 10ml
Renaspirin Carbasalate Calcium & Ascorbic Acid Powder 7.632g & 0.748 g/10gm 10g, 100g
Melocam Meloxicam Injection 0.5g/100ml 10ml
Melocam Meloxicam Bolus 100mg/Bolus 10 x 4’s
GLUCOCORTICOID
Predexanol-S Prednisolone Anhydrous USP Injection 7.5mg+2.5mg/ml 10ml
Dexamethasone Trimethyl
Acetate USP
METABOLIC
Cal-D-Mag Calcium Gluconate USP Injection 20.8+20.0+5.0+0.1mg/ml 200ml, 500ml
Dextrose USP
Magnesium Hypophosphate BP
Chlorocresol (as preservative) BP
Vitaphos Toldimphos Injection 200mg+0.05mg/ml 30ml
Cyanocobalamine (Vit B12) BP
Catophos Butaphosphan Injection 100mg+0.05mg/ml 100ml, 30ml
Cyanocobalamine (Vit B12) BP
Levabon Rumen E Saccharomyces Cerevisiae Powder 100cfu/gm 20kg
Rumen E Saccharomyces Cerevisiae Powder 100cfu/gm 100g
DCAD Minus Magnesium sulphate Powder 50% & 32.5% 1 Kg
Aluminium sulphate
Cal-Boost gel Ionic calcium & Gel 43.5gm & 300 ml
magnesium supplement 2.5gm/300ml
HORMONE PRODUCTS
Ovurelin Gonadorelin (as Acetate) Injection 100mcg/ml 20ml
Ovuprost Cloprostenol (as Sodium) Injection 250mcg/ml 20ml
VITAMIN-MINERAL INJECTION
Hemovit Iron+Copper+ Injection 15mg+0.2mg+ 10ml
cobalt+Vitamin B-complex 0.7mg+202.86mg/ml
Renasol AD3E Vitamin A, D3 & E Injection 0.5MIU+0.075MIU+ 10ml, 30ml
50mg/ml & 100ml
ANTHELMINTIC
Avinex Levamisole HCL USP Powder 300mg/gm 10g, 100g
ANTI-COCCIDIAL
Coxicure Sulphaclozine Sodium Powder 300mg/gm 100g
Monohydrate INN
Renazuril Suspension Toltrazuril Suspension 25mg/ml 100ml
ELECTROLYTE
Renalyte Vitamin A Powder 2MIU+ 1kg
Sodium Bi-carbonate BP 500gm+
Sodium Chloride BP 266gm+
Dextrose BP 179.6gm+
Potassium Chloride BP 50gm/kg
ORT Calf Sodium chloride, Citric Oral saline 40.13%, 2.43%, Paired sachet
acid, potassium citrate, 0.6% & 20.7% A 9.72g &
potassium monophosphate B 22.31g
NUTRITION PRODUCTS
Rena WS Vit B Complex+A+ Powder 111.52+0.1MIU+ 10g, 50g,
D+E+C 0.025MIU+20mg 100g,1kg
+300mg/gm
Rena B+C Vitamin B Complex & Vit. C Powder 22.12mg+5mg/gm 100g, 500g, 1kg
Rena C Ascorbic Acid Powder 999.00mg/gm 100g, 1kg
Rena K Menadione Sodium bisulphite Powder 100mg/gm 10g
Renasol AD3E Vitamin A, D3 + E Oral Solution 0.1MIU+0.02MIU 100ml, 1L
+20mg/ml
Renavit DB Vitamin & Mineral Premix Powder 100g, 500g, 1kg
Renavit DB Plus Vitamin, Mineral & Amino Acid Premix Powder 1kg
Rena Sel-E Vitamin E + Selenium Oral Solution 80mg+0.6mg/ml 100ml, 1L
NUTRITIONAL PREMIX
Rena Breeder Vitamin+Mineral Powder 44.99gm+68.42gm/kg 2.5kg
Rena Broiler Vitamin+Mineral Powder 41.73gm+72.38gm/kg 2.5kg
•55
Trade Name Generic Name Formulation Strength Pack
Rena Grower Vitamin+Mineral Powder 31.06gm+52.36gm/kg 2.5kg
Rena Layer Vitamin+Mineral Powder 35.38gm+47.59gm/kg 2.5kg
Rena Fish Vitamin+Mineral Powder 43.75gm+53.55gm/kg 1kg
IMPORTED
Availa 4 Zinc+Manganese Powder 51.5mg+28.6mg 10gm,100gm
+Copper +18.0mg+1.8mg & 500gm
+Cobalt+AminoAcid +204.8mg/gm
Availa Z/M Zinc+Manganese Powder 40mg+ 500gm
Chealeted with AA 40mg/gm
Biotronic SE Formic Acid+Propionic Acid Powder 23mg+5mg/ml 25kg
Biotronic SE Forte Liquid Formic Acid+Propionic Acid+ Oral Solution 23mg+5mg+ 100ml, 1L
Lactic Acid 1mg/ml
Mycofix Plus 3.0 SBM+Epoxidase+Esterase+ Powder NA 1kg & 25kg
Phytogenic+Phycophytic
Mycofix Select 3.0 SBM+Epoxidase+ Powder NA 1kg & 25kg
Phytogenic+Phycophytic
Mycofix ECO 3.0 SBM+Phytogenic Powder NA 1kg & 25kg
Mycofix Secure Bentonite Powder 100% 25kg
Biomin Phytase 5000 Phytase Enzyme Powder 5000FTU/gm 25kg
Rena Phytase 400 Phytase Enzyme Powder 400FTU/gm 1kg
Lisovit Muramidase+Peroxidase+ Powder NA 10gm, 100gm
FOS+Vitamin E+C & 1kg
Vigest Vitamin+Mineral Oral Solution 3.58mg+0.078mg 500ml, 2L
+Amino Acid +67.33mg/ml
Poultry TMO Zinc+Manganese+ Powder 32mg+ 25kg
Copper+ 32mg+8mg+
Iron+Iodine+ 5mg+1.2mg+
Selenium+MHA 0.15mg+400mg/gm
Mintrex PSe Zinc+Manganese+ Powder 40mg+40mg+ 25kg
Copper+ 20mg+
Selenium+MHA 3mg+540mg/gm
Cibenza DP 100 Special Protease Enzyme Powder 0.6MIU/gm 25kg
Poultry Star Sol Pro & Prebiotic Powder NA 10gm
Poultry Star me Pro & Prebiotic Powder NA 25kg
NephCare Plus Nephrotonic Oral solution NA 100ml, 500ml
Digesterom PEP MGE Phytogenic Growth Promoter Powder NA 25kg
Digesterom PEP 125 Phytogenic Growth Promoter Powder NA 25kg
Ozinc Organic Zinc Solution 85mg/ml 100ml
Ren A Tox Liquid Toxin binder Solution NA 100ml, 1L
Rena Calp Calcium+Phosphorous Solution 24.02mg+8.39mg/ml 1L, 5L
Renaliv Herbal Liver Tonic Solution NA 1L
Respocare Herbal Expectorant Solution NA 100ml, 250ml
FAM 30 Iodophore Liquid 27.5mg/ml 100ml, 1L,
GPC8 Gluataraldehyde+QAC Liquid 120mg+40mg/ml 100ml, 1L
Shift Trisodium based Detergent Solution 113mg/ml 1L, 25L
Rena Cal-P Calcium Phosphate Water soluble powder 42mg/gm 500g & 1Kg
Monosodium Phosphate 15mg/gm
Vitamin C 6mg/gm
Vitamin B12 10mg/gm
Vitamin D3 400IU
Disodium Citrate 0.27mg/gm
Renazyme CS Xylanase, Cellulase, Solution 10000 IU, 200000 IU, 100ml
Beta-glucanase, Amylase, 1400 IU, 7000 IU,
Protease, Mannanase, 10 IU, 100 IU,
Pectinase 5 IU
56 •renata annual report
Trade Name Generic Name Formulation Strength Pack
Availa Zn 120 Zinc amino acid complex Powder 120mg/gm 100gmX10's
GasFree Saponin+Glycocompound Powder 100gmX10's
Heparen Choline chloride & Oral solution 3.5gm & 500 ml
Vitamin BT/ Levocarnitine 1gm /100 ml
Kol Suspension Activated Charcoal Oral solution 16.40% 500ml
VACCINES
LIVE VACCINES
IZOVAC Clone Attenuated NDV Lyophilized Clone 106 EID50 1000 Doses
IZOVAC Lasota Attenuated NDV Lyophilized Lasota 106 EID50 1000 Doses
IZOVAC H120 Clone Attenuated NDV & Lyophilized Clone 106 EID50 & 1000 Doses
Attenuated IBV H120 103 EID50
IZOVAC H120 Lasota Attenuated NDV & Lyophilized Lasota 106 EID50 & 1000 Doses
Attenuated IBV H120 103 EID50
IZOVAC Gumboro2 Attenuated intermediate IBDV Lyophilized Winterfield 2512 103 EID50 1000 Doses
IZOVAC Gumboro2 Attenuated intermediate Plus IBDV Lyophilized Winterfield 2512 102.7 EID50 1000 Doses
IZOVAC Marek HVT +Diluent Attenuated MDV serotype 3 Lyophilized Strain FC 126 1000 Doses
KILLED VACCINES
IZOVAC ND Inactivated NDV Injection Lasota 50PD50 1000 Doses
IZOVAC ND-EDS Inactivated NDV & Injection Lasota 50PD50 1000 Doses
Inactivated EDS virus EDS’76 108 EID50
IZOVAC ND-EDS-IB Inactivated ND virus, Injection NDV 50PD50 1000 Doses
Inactivated EDS virus & EDS’76 strain 127 &
Inactivated IB virus IBV strain M41, D274
& D1466 as per PhEu
IZOVAC Coryza3 Inactivated Infectious Injection Haemophilus 1000 Doses
Coryza (IC) Paragallinarum,
Serotype A 5x109 CFU,
Haemophilus
Paragallinarum,
Serotype B 5x109 CFU,
Haemophilus
Paragallinarum,
Serotype C 5x109 CFU,
IZOVAC ND-IBD Inactivated ND virus & Injection NDV 50PD50 & IBDV 1000 Doses
Inactivated IBD virus Winterfield 2512 RP≥ 1
AQUA PRODUCTS
Aquastar Pond Water Probiotic Powder NA 500gm, 1kg
Biomin Aquaboost Amino Acid Complex Powder NA 1000gm, 25kg
Hepa Protect Aqua Flavanoids Powder NA 100gm, 25kg
Oxy-Ren Sodium Carbonate Peroxhydrate Powder 130mg/gm 1kg
Aquastar grow out Gut Probiotic Powder NA 100gm
Levabon Aqua Saccharomyces cerevisiae Powder 1012 cfu/gm 100gmX5's
Oxy-Ren Sodium carbonate peroxyhydrate Tablet 130mg/gm tablet 1kg
Zeoren Alluminium sodium silicate Granular 750mg/gm 10kg
Gas Free Yucca Powder NA 100g
Ammorid Nitrifying & Denitrifying Liquid NA 1L
bacteria (Probiotics)
Realbind Binding Agent Liquid NA 1L
Ultipro Soil Probiotics Liquid NA 5L
Rena-C Aqua Ascorbic Acid Powder 99gm/100gm 1kg
•57
Renata Limited
Independent Auditor’s Report and
Audited Financial Statements
For the year ended 30 June 2020
Opinion
We have audited the financial statements of Renata Limited, which comprise the statement of financial position as
at 30 June 2020 and the statement of profit or loss and other comprehensive income, statement of changes in
equity and statement of cash flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the
Company as at 30 June 2020 and its financial performance and of its cash flows for the year then ended in
accordance with International Financial Reporting Standards (IFRSs).
Emphasis of Matter
We draw attention to note # 1.3 to the financial statements which describe the amalgamation of the fully owned
subsidiary Renata Oncology Limited with the Company. The Board of Directors of Renata Oncology Limited and
Renata Limited in their joint meetings held on 11 November 2019 and 13 November 2019 approved the
amalgamation of Renata Oncology Limited with the Company, whereby the Subsidiary will merge with the
Company and the Company shall be the surviving entity. Our opinion is not modified in respect of this matter. The
financial statements reflect financial result of the amalgamated entity.
1. Revenue (Turnover)
See note # 23 to the financial statements
Key audit matters How the matters were addressed in our audit
ISAs require that, as part of our overall response to We performed walkthroughs of the revenue cycle at
the risk of fraud, when identifying and assessing the significant components to gain an understanding of
risks of material misstatement due to fraud, we when the revenue should be recognized, to map out
evaluate which types of revenue or revenue the relevant controls end to end and the processes in
transactions might give rise to potential fraud risks. place.
•59
The principal activities of the Company are We assessed the design and implementation of these
manufacturing, marketing and distribution of controls. We tested the sample of individual sales
pharmaceutical and animal health products across a transactions and traced to dispatch notes and
number of geographical areas in home and abroad. We subsequent cash receipt or other supporting documents.
have specifically focused this key audit matter to cut-off We have tested the design and operating effectiveness
and occurrence for revenue recorded within 30 June of key controls focusing on the following:
2020. Pressures to meet stakeholders’ expectations
• Calculation of discounts, incentives and rebates;
could provide incentives to record revenues where
• Segregation of duties in invoice creation
controls of the goods have not passed.
and modification;
• Timing of revenue recognition;
• Cross match sales order, sales invoices and
dispatch carefully.
We performed analytical reviews to identify any unusual
or one-off material revenue transactions. We identified
and considered the impact of any credit notes or
inventory returns occurring after year-end, including
evaluating the impact of any material overdue debts from
customers.
The company has invested in equity shares of its We have reviewed management’s analysis of impairment
subsidiaries namely Renata Agro Industries Limited, assessment and recoverable value of subsidiaries in
Purnava Limited, Renata (UK) Limited and Renata accordance with IAS-36.
Pharmaceuticals (Ireland) Limited. As at 30 June 2020
the carrying value of these investments are accordingly In particular, our discussions with management was
BDT 60,570,476 in Renata Agro Industries Limited, BDT focused on the continued appropriateness of the value in
2,499,900 in Purnava Limited, BDT 110 in Renata (UK) use model, the key assumptions used in the model, the
Limited and BDT 9,610 in Renata Pharmaceuticals reasonably possible alternative assumptions, particularly
(Ireland) Limited. where they had the most impact on the value in use
calculation.
At the time of audit of our financial statements of the
Company, we have considered the recoverable value of We also checked the mathematical accuracy of the
the Company’s investment in subsidiaries. valuation model, challenged the discount rate used within
the model, inputs used in the determination of assumptions
within the model were challenged and corroborating
information was obtained in reference to third party
sources.
Key audit matters How the matters were addressed in our audit
At the reporting date, the carrying value of inventory • Assessing the compliance of Company’s
amounted to Taka 5,126,624,240 which is 17.65% of accounting policies over inventory with applicable
total assets. Inventories were considered as a key accounting standards.
audit matter due to the size of the balance and
because inventory valuation involves management • Assessing the inventory valuation process and
judgment. practices. On major locations, we tested the
effectiveness of the key controls.
Inventory valuation and existence was an audit focus • Assessing the analyses made by management with
area because of the number of locations/stores that respect to slow moving and obsolete stock.
inventory was held at, and the judgment applied in the
valuation of inventory to incorporate inventory • Attending inventory count on 30 June 2020 and
shrinkage. reconciling the count results to the inventory listings
to test the completeness of data.
According to the Company’s accounting policy,
inventories are measured at the lower of cost or net • Comparing the net realizable value, obtained
realizable value. The Company has specific through a detailed review of sales subsequent to
procedures for identifying risk for obsolete items and the year-end, to the cost price of a sample of
measuring inventories at the lower of cost and net inventories.
realizable value. • Reviewing the historical accuracy of inventory
provisioning, and the level of inventory write-offs
during the year.
Key audit matters How the matters were addressed in our audit
At the reporting date, the carrying value of the • We obtained an understanding of the client and its
Company’s property, plant and equipment and environment to consider inherent risk related to
capital work- in- progress amounted to Taka property, plant, and equipment. Our understanding
11,753,639,042 and 1,914,471,284 respectively. includes:
The valuation of property, plant, and equipment was
identified as a key audit matter due to the > Obtaining an understanding of the internal
significance of this balance to the financial control over property, plant, and equipment.
statements, as well as the significance of
management’s judgments in determining its > Assessing the risks of material misstatement
valuation. and designing tests of controls and substantive
procedures that cover the following aspects:
•61
Key audit matters How the matters were addressed in our audit
In considering the valuation of property, plant, and • Substantiate the existence of property, plant,
equipment, we focused on the assessment of the and equipment.
followings:
• Establish the completeness of recorded
• Inherent risks associated with property, plant and
property, plant, and equipment.
equipment.
• Verify the cut-off of transactions affecting
• Potential misstatements in property, plant, and
property, plant, and equipment.
equipment on account of frauds and errors.
• Assessment of useful lives of assets. • Establish the proper valuation or allocation of
• Assessment of impairment of assets. property, plant, and equipment and the
accuracy of transactions affecting property,
Inherent risks associated with property, plant and plant, and equipment.
equipment
• Determine the correctness and
• Property, plant and equipment may include assets appropriateness of classification of property,
that should have been derecognized following sale, plant and equipment.
other transfer of rights or abandonment or
impairment. • We obtained an understanding of the potential
misstatements in property, plant, and equipment on
• Expenditure that should have been recognized as account of frauds and errors.
property, plant and equipment but has not been so
recognized, including capitalized finance costs • We evaluated the assumptions made by
• Depreciation may have been incorrectly calculated. management in the determination of useful lives to
ensure that these are consistent with the principles of
• Potential misstatements in property, plant, and IAS 16. “Property, Plant and Equipment”.
equipment on account of frauds and errors
• We compared the useful lives of each class of asset
• Purchase of an asset at an inflated price especially in the current year to the prior year to determine
from a related party. whether there were any significant changes in the
useful lives of assets, and considered the
• Wrong write-off of the asset as scrap, obsolescence, reasonableness of changes based on our knowledge
missing, donated, or destroyed. of the business and the industry.
• Expenditures for repairs and maintenance recorded • We verified records e.g. contractor bills, work orders
as property, plant and equipment or vice versa. and certification of work performed by the specialized
personnel to ensure that the assets under
• Capitalization of expenditure which are not normally construction or pending installation and not yet ready
attributable to the cost of the property, plant and for intended use are classified as work- in- progress.
equipment.
• We also verified the date on which the assets are
• Recording of an asset purchased, which in effect has moved from the capital work- in- progress account to
not actually been received by the entity at all. the property, plant and equipment (the date on which
the asset is ready for intended use), so that the
Valuation of capital work- in-progress to PPE depreciation on property, plant and equipment has
Management needs to ensure that the assets under been computed correctly.
construction or pending installation and not yet ready for
intended use are classified as work- in- progress. An • We reconciled the movement of capital work- in-
appropriate system needs to put in place to capture all progress from opening to closing, specifically
directly identifiable costs, which can be capitalized, to be verifying additions during the year, capital assets
so accumulated to capital work- in- progress whilst completed during the year and impairment of any
expenses which are not eligible for being capitalized are opening capital work-in-progress items.
identified and charged to revenue in the normal course.
Key audit matters How the matters were addressed in our audit
The range of possible outcomes for contingencies can We evaluated the design and tested the operating
be wide and management is required to make certain effectiveness of controls in respect of the recognition and
judgments in respect of estimates of contingencies in measurement of uncertain tax provisions. We determined
order to assess the adequacy of tax provisions. that we could rely on these controls for the purposes of our
audit.
The Company disclosed contingent liabilities With the assistance of our tax specialists, we evaluated
amounted to Taka 136,702,333 in respect of management’s judgments and estimates of tax exposures
unresolved disputed tax claimed by the tax authority and contingencies in order to assess the adequacy of the
over the years. Company’s tax provisions. In understanding and
evaluating management’s judgments, we considered the
Contingent liabilities were considered as a key audit status of recent and current tax authority audits and
enquiries, judgmental positions taken in tax returns and
matter because unexpected adverse outcomes could current year estimates and developments in the tax
significantly impact the Company’s reported profit and environment.
balance sheet position.
Based on the work performed, we concluded that
contingent liabilities in respect of tax have been disclosed
appropriately.
Key audit matters How the matters were addressed in our audit
The Company has related party transactions and we Our audit procedures amongst others included the
focused on identification of related parties and following:
disclosure of related party transactions in • Evaluated the design and tested the operating
accordance with relevant accounting standards. effectiveness of controls over identification and
disclosure of related party transactions.
• Evaluated the transactions among the related
parties and tested material accounts balances.
• Evaluated the Board of Director’s approval for the
related parties’ transactions.
• Evaluated the disclosures in the financial
statements in compliance with IAS 24.
The related party transactions were separately
disclosed in the financial statements in note # 41.
•63
7. Employee benefits
See note # 21.2 & 21.3 to the financial statements
Key audit matters How the matters were addressed in our audit
Worker’s participation and welfare fund (note # 21.2) Worker’s participation and welfare fund
As per section 234 (1)(b) of Bangladesh Labour Act We have checked the adequacy of WPPF fund provision
2006 (as amended in 2013) 5% of the net profit of each and distribution thereof and observed that, the
year, not later than nine (9) months from the close of that requirement of the Labour Act 2006 (as amended in
period, is required to be transferred to the Fund, the 2013) followed properly.
proportion of the payment to the Participation Fund and
the Welfare Fund being 80:10. The remaining 10% of the After distribution of some amount, balance of the fund
amount of net profit shall be paid by the Company to the has been transferred to a separate account meant for
Workers' Welfare Foundation Fund, as formed under the WPPF for future distribution without any interest payable
provision of the Bangladesh Worker's Welfare on the undistributed amount.
Foundation Act, 2006. Of the 80% being transferred to
the participation fund, two-third has to be distributed in Defined contribution plan
equal proportions to all the members (beneficiary) of the We have checked the contribution of the employees and
fund in cash and one-third has to be invested in the contribution of the employer to the provident fund
accordance with the manner as stated in section 242 of and confirmed the distribution as per Labour Act 2006
that Act. (as amended in 2013) and found correct. We confirmed
that fund forfeited during current and earlier financial
Defined contribution plan (note # 21.3) year from existing employees have been returned to the
The Company operates a recognized provident fund mother account and from past employees are currently
scheme where employees contribute 8.33% up to 5 under the process of being retrieved.
years and over 5 years 10% of their basic salary with
equal contribution by the Company. The provident fund Defined benefit plan
is being considered as defined contribution plan being Our audit procedures included updating our
managed by a Board of Trustees. Renata Limited understanding of the business processes followed by the
recognizes contributions payable as an expense in the Company for accounting and valuing their defined
period in which the employee provides services. A benefit plan.
liability is recognized where contributions arise in
relation to an employee's service, but remain unpaid at We obtained sufficient audit evidence to conclude that
the period end. the inputs and methodologies used to determine the
liability and determination of the expenses and its basis
Defined benefit plan for defined benefit plan.
The Company operates a defined benefit schemes
which in total are significant in the context of the overall We assessed the design and operating effectiveness of
financial position. Liability for gratuity is provisioned and the Company’s key controls supporting the identification,
transferred within due time to the fund on the basis of measurement and oversight of valuation of the defined
actuarial valuation. At year end the Company reported a benefits payable provision and expenses thereon.
net defined benefits scheme expense of Taka
82,500,000. The Company had transferred the total We examined the basis on which gratuity is payable to
contribution to the fund and there is no current liability to the employee and worked out the liability for gratuity
the fund. Therefore, valuation of the benefit and taking into consideration the actuarial valuation.
expenses thereon is considered as a key audit matter.
There is separate trustee of this benefit plan. We ensured that the basis of computing gratuity is valid;
verify the computation of liability on aggregate basis and
transferred to the fund within the financial year.
Key audit matters How the matters were addressed in our audit
Company reported net deferred tax liability totaling We obtained an understanding, evaluated the design
Taka 1,442,915,240 as at 30 June 2020. and tested the operational effectiveness of the
Company’s key controls over the recognition and
Significant judgment is required in relation to measurement of deferred tax assets and liabilities and
deferred tax liability as it is dependent on forecasts the assumptions used in estimating the future taxable
of future profitability over a number of years. expense of the Company.
Key audit matters How the matters were addressed in our audit
The financial statements of the Company for the Our procedures, in relation to the key audit matter
financial year ended on 30 June 2020 was the first described, included, among others:
one being subject to our audit.
• meeting with key personnel responsible for financial
In accordance with International Standards on reporting of the Company as well as meetings with
Auditing 510: Initial Engagements- Opening members of the audit team, including specialists
Balances, the first-year audit of financial statements planned to be involved in the audit procedures;
requires performing of a few additional audit
procedures that are limited in the case of the audit • understanding of the Company’s operations, its
performed for a consecutive year. business environment and key risk areas related to
its operations;
The purpose of these additional audit procedures is • understanding of the Company’s internal control
to collect sufficient and relevant audit evidence environment, including also tests of identified
about whether: controls;
•65
Key audit matters How the matters were addressed in our audit
• appropriate accounting policy applied to the opening • understanding of key areas of estimation and
balances was used continuously in the preparation of professional judgment of the Company’s
financial statements for the current period, or whether management;
the changes made were correctly accounted for and
properly presented in accordance with the applicable • communication with the previous auditor on matters
financial reporting framework. including;
Accordingly, this issue was identified as key audit matter • a discussion of key audit issues and reading of audit
for the audit of the financial statements of the Company. documentation from the previous reporting period;
Key audit matters How the matters were addressed in our audit
Our audit procedures have been focused on IT systems We tested the design and operating effectiveness of the
(Desa & Oracle) and controls due to the pervasive Company’s IT access controls over the information
nature and complexity of the IT environment, the large systems that are critical to financial reporting.
volume of transactions processed in numerous locations
(Head office, Factories and Depots) daily and the We tested IT general controls (logical access, changes
reliance on automated and IT is dependent on manual in data management and aspects of IT operational
controls. controls). This included testing that requests for access
to systems were appropriately reviewed and authorized.
•67
report. However, future events or conditions may cause a) we have obtained all the information and
the Company to cease to continue as a going concern. explanations which to the best of our knowledge
and belief were necessary for the purposes of
• Evaluate the overall presentation, structure and our audit and made due verification thereof;
content of the financial statements, including the
disclosures, and whether the financial statements
represent the underlying transactions and events in a b) in our opinion, proper books of accounts as
manner that achieves fair presentation. required by law have been kept by the
Company so far as it appeared from our
We communicate with those charged with governance examination of these books;
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, c) the statement of financial position and statement
including any significant deficiencies in internal control of profit or loss and other comprehensive
that we identify during our audit. income dealt with by the report are in
agreement with the books of accounts and
We also provide those charged with governance with a returns; and
statement that we have complied with relevant ethical
requirements regarding independence, and to d) the expenditure incurred was for the purpose of
communicate with them all relationships and other the Company’s business.
matters that may reasonably be thought to bear on our
independence, and where applicable, related
safeguards.
Signed for & on behalf of
ACNABIN
From the matters communicated with those charged with
Chartered Accountants
governance, we determine those matters that were of
most significance in the audit of the financial statements
of the current period and are therefore the key audit Place: Dhaka
matters. We describe these matters in our auditor’s Date: 26 October 2020 M. Moniruzzaman, FCA
Partner
report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be
communicated in our report because the adverse
consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
communication.
ASSETS
Notes 30 June 2020 30 June 2019
Non-current assets
Property, plant and equipment 5 11,753,639,042 10,227,887,020
Capital work-in-progress 6 1,914,471,284 1,492,889,354
Investment in subsidiaries 7 63,080,096 143,079,096
13,731,190,422 11,863,855,470
Current assets
Inventories 8 5,126,624,240 4,172,321,022
Trade receivables 9 2,543,784,315 2,265,753,666
Other receivables 10 1,015,276,977 1,086,389,221
Advances, deposits and prepayments 11 533,580,314 433,302,071
Investment in shares and FDR 12 4,721,102,257 3,581,402,024
Cash and cash equivalents 13 1,372,995,830 798,213,039
15,313,363,933 12,337,381,043
TOTAL ASSETS 29,044,554,355 24,201,236,513
The annexed notes from 1 to 43 form an integral part of these Financial Statements.
This is the Statement of Financial Position referred to in our separate report of even date.
Signed for & on behalf of
ACNABIN
Chartered Accountants
•69
RENATA LIMITED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Amount in Taka
Tax expenses 29
Current tax 22 (1,753,720,521) (1,295,568,037)
Deferred tax 18 (108,691,642) (94,847,040)
(1,862,412,163) (1,390,415,077)
Net profit after tax for the year 4,129,595,803 3,823,362,130
The annexed notes from 1 to 43 form an integral part of these Financial Statements.
Amount in Taka
The annexed notes from 1 to 43 form an integral part of these Financial Statements.
Place: Dhaka
Date: 26 October 2020
•71
RENATA LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
Amount in Taka
D. Effect of exchange rate changes on cash and cash equivalents 1,633,925 3,364,206
E. Net cash inflow/(outflow) for the year (A+B+C+D) 567,639,893 (259,139,429)
F. Cash and cash equivalents at the beginning of the year 798,213,039 1,057,352,468
G. Cash and cash equivalents of Renata Oncology Limited due
to merger at the beginning of the year 7,142,898 -
H. Cash and cash equivalents at the end of the year (E+F+G) 1,372,995,830 798,213,039
The annexed notes from 1 to 43 form an integral part of these Financial Statements.
Place: Dhaka
Date: 26 October 2020
1. Reporting entity
After approval of the Board of Directors and consent of minority shareholder, the Hon'ble High Court
Division of the Supreme Court of Bangladesh has sanctioned the Scheme of Amalgamation of Renata
Oncology Limited with Renata Limited on 26 July 2020 with effect from the appointed date 01 July 2019.
The audited financial statements of Renata Oncology Limited on 30 June 2019 have been used to account
for the assets and liabilities of Renata Oncology Limited in the books of Renata Limited.
Renata Oncology Limited will no longer continue as a separate entity as a result of amalgamation, rather all
the undertakings have entirely been transferred to Renata Limited at its continuing value. In accordance
with the Scheme of Amalgamation, Renata Limited paid in consideration at cash of net asset value
equivalent to the share exchange ratio that comes to 0.02 Renata Limited’s share for each share of Renata
Oncology Limited to the ordinary minority shareholder of Renata Oncology Limited, whose names were
recorded in the Register of Members on the Record Date, fixed by the Board of Directors of Renata Limited.
Ordinary shares of Renata Oncology Limited that were held by Renata Limited on the Record Date have
been cancelled and deemed to have been cancelled without any further act or deed and no shares of
Renata Limited are required to be issued in lieu thereof. Finally, the deficit amount of Tk. 43,065,180 of the
net assets of Renata Oncology Limited over the net assets value of the shares settled in consideration of
cash of Tk. 454 by Renata Limited have been transferred and debited to “Other Reserves” in the books of
Renata Limited pursuant to the Scheme of Amalgamation.
•73
2.2 Application of International Financial Reporting Standards (IFRSs)
The following IFRSs are applicable for the financial statements for the year under review:
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions of accounting estimates are recognised in the period in which the estimate is
revised and in any future periods affected as required by IAS 8: Accounting Policies, Changes in Accounting
Estimates and Errors. In particular, significant areas of estimation uncertainty and critical judgments in
applying accounting policies that have the most significant effect on the amounts recognised in the financial
statements include depreciation, amortization, impairment, net realizable value of inventories, accruals,
taxation and provision.
2.10 Offsetting
Renata Limited does not offset assets and liabilities or income and expenses, unless required or permitted by an
IFRS.
Elements of Costs
• Purchase price, including import duties and non-refundable purchase taxes, after deducting trade
discounts and rebates.
• Costs directly attributable to bringing the asset to the location and condition necessary
for it to be capable
of operating in the manner intended by the management.
• The initial estimate of the cost of dismantling and removing the item and restoring the site on
which it is located.
•75
Subsequent Costs
• Costs of day to day servicing [repairs and maintenance] are recognised as expenditure as incurred.
• Replacement parts are capitalized, provided the original cost of the items they replace is derecognised.
Cost model
After recognition as an asset, an item of property, plant and equipment is carried at its cost less any
accumulated depreciation and any accumulated impairment losses.
Revaluation model
After recognition as an asset, an item of property, plant and equipment is to be measured at a revalued
amount, which is its fair value less subsequent accumulated depreciation and impairment accumulated losses.
Where an asset’s carrying amount is increased as a result of a revaluation, the increase is recognised in other
comprehensive income and accumulated in equity under the heading of revaluation surplus. However, the
increase is recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset
previously recognised in profit or loss. Where an asset’s carrying amount is decreased as a result of a
revaluation, the decrease is recognised in profit or loss. However, the decrease is recognised in other
comprehensive income to the extent of any credit balance existing in the revaluation surplus in respect of that
asset. The revaluation surplus included in equity in respect of an item of property, plant and equipment is
transferred directly to retained earnings as the asset is used by Renata Limited.
Depreciation
The depreciation charge for each period is recognised in profit or loss unless it is included in the carrying
amount of another asset. Depreciation of an asset begins when it is available for use, i.e. when it is in the
location and condition necessary for it to be capable of operating in the manner intended by management. The
residual value and the useful life of an asset is reviewed at least at each financial year-end and, if expectations
differ from previous estimates, the change(s) shall be accounted for as a change in an accounting estimate.
Depreciation has been charged on straight-line method on all property, plant and equipment that have already
been put on operation except land. Full month's depreciation is charged from the month the asset is put into
use and no depreciation is charged for the month of disposal. Rates of depreciation considering the useful
lives of respective assets are as follows :
3.2 Leases
IFRS 16 introduces a single, on-balance sheet lease accounting model for lessees. A lessee recognises a
right-to-use asset representing its right to use the underlying asset and a lease liability representing its
obligation to make lease payments. There are recognition exemptions for short-term leases and leases of
low-value items. Lessor accounting remains similar to the current standard- i.e. lessors continue to classify
leases as finance or operating leases. The standard is effective for annual periods beginning on or after 1
January 2019, but also with permission for early adoption.
Investment in subsidiaries
Separate financial statements are to enhance the relevance, reliability and comparability of the information
that a parent entity provides in its separate financial statements for a group of entities under its control.
Renata Limited has disclosed the information to enable users of the financial statements to evaluate the
nature of the relationship between Renata and its subsidiaries. Investment in subsidiaries is accounted for
in Renata Limited’s separate financial statements at cost.
Investment in shares
Renata Limited has elected to designate equity investments as measured at Fair Value through Other
Comprehensive Income (FVTOCI). They are initially recorded at fair value plus transaction costs and then
remeasured at subsequent reporting dates to fair value. Unrealized gains and losses are recognized in
other comprehensive income. On disposal of the equity investment, gains and losses that have been
deferred in other comprehensive income are transferred directly to retained earnings.
Dividends on equity investments and distributions from funds are recognized in the income statement when
Renata Limited’s right to receive payment is established.
Trade receivables
Trade receivables are measured in accordance with the business model under which each portfolio of trade
receivable is held. Renata Limited has a portfolio of trade receivables that is being managed within a
business model whose objective is to collect contractual cash flows, and are measured at amortised cost.
Trade receivables measured at amortised cost are carried at the original invoice amount less allowance for
expected credit losses.
•77
Expected credit losses are calculated in accordance with the simplified approach permitted by IFRS 9, using
a provision matrix applying lifetime historical credit loss experience to the trade receivables. The expected
credit loss rate varies depending on whether and the extent to which settlement of the trade receivables is
overdue and it is also adjusted as appropriate to reflect current economic conditions and estimates of future
conditions. For the purpose of determining credit loss rates, customers are classified into groupings that have
similar loss patterns. The key drivers of the loss rate are the nature of the business unit and the location and
type of customer.
When a trade receivable is determined to have no reasonable expectation of recovery it is written off, firstly
against any expected credit loss allowance available and then to the income statement. Subsequent
recoveries of amounts previously provided for or written off are credited to the income statement.
Borrowings
All borrowings are initially recorded at the amount of proceeds received, net of transaction costs. Borrowings
are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs,
and the amount due on redemption being recognised as a charge to the income statement over the period of
the relevant borrowing.
Trade payables
Trade payables are recognised initially at fair value. Subsequent to initial recognition they are measured at
amortised cost using the effective interest method.
3.6 Inventories
Measurement
Inventories are measured at the lower of cost and net realizable value except for goods in transit which are
valued at cost.
Cost of inventories
The costs of inventories are comprised of all costs of purchase, costs of conversion and other costs incurred
in bringing the inventories to their present location and condition. Cost of active materials, raw materials and
packing materials is assigned by using the first-in, first-out (FIFO) cost formula. Cost of work-in-progress and
finished stocks are determined by using FIFO cost formula including allocation of manufacturing overheads
related to bringing the inventories to their present condition. The Company uses standard cost method for
measurement of cost of finished goods.
Recognition as an expense
When inventories are sold, the carrying amount of those inventories is recognised as an expense in the period
in which the related revenue is recognised. The amount of any write-down of inventories to net realizable value
and all losses of inventories is recognised as an expense in the period the write-down or loss occurs. The
amount of any reversal of any write-down of inventories, arising from an increase in net realizable value, is
recognised as a reduction in the amount of inventories recognised as an expense in the period in which the
reversal occurs.
Recognition
A provision is recognised when Renata Limited has a present obligation (legal or constructive) as a result
of a past event; it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation; and a reliable estimate can be made of the amount of the obligation. If these conditions
are not met, no provision is recognised. Accruals are liabilities to pay for goods or services that have been
received or supplied but have not been paid, invoiced or formally agreed with the supplier, including amount
due to employees.
Renata Limited does not recognise a contingent liability. A contingent liability is disclosed, unless the
possibility of an outflow of resources embodying economic benefits is remote. Renata Limited does not
recognise a contingent asset. Contingent assets usually arise from unplanned or other unexpected events
that give rise to the possibility of an inflow of economic benefits to Renata Limited.
Measurement of provisions
The amount recognised as a provision is the best estimate of the expenditure required to settle the present
obligation at the end of the reporting period.
Initial recognition
A foreign currency transaction is recorded, on initial recognition in the functional currency, by applying to the
foreign currency amount the spot exchange rate between the functional currency and the foreign currency
at the date of the transaction.
•79
Subsequent measurement
A foreign currency transaction may give rise to assets or liabilities that are denominated in a foreign currency.
These assets and liabilities are translated into Renata Limited’s functional currency at each reporting date.
Foreign currency monetary items outstanding at the end of the reporting date are translated using the closing
rate. The difference between this amount and the previous carrying amount in functional currency is an
exchange gain or loss. Exchange differences arising on the settlement of monetary items or on translating
monetary items at rates different from those at which they were translated on initial recognition during the
period or in previous financial statements is recognised in profit or loss in the period in which they arise.
Product revenue is recognised when control of the goods is passed to the customer. The point at which control
passes is determined by each customer arrangement, but generally occurs on delivery to the customer. Value
added tax and other sales taxes are excluded from revenue.
Product revenue represents net invoice value including fixed and variable consideration. Variable
consideration arises on the sale of goods as a result of discounts and allowances given and accruals for
estimated future returns and rebates. Revenue is not recognised in full until it is highly probable that a
significant reversal in the amount of cumulative revenue recognised will not occur.
The methodology and assumptions used to estimate rebates and returns are monitored and adjusted regularly
in the light of contractual and legal obligations, historical trends, past experience and projected market
conditions. Once the uncertainty associated with the returns and rebates is resolved, revenue is adjusted
accordingly. The scheme has been recognized as per 5 step model of IFRS-15 “Revenue from contract with
customers”.
3.12 Taxation
The tax expense for the period comprises current tax and deferred tax. Tax is recognised in the income
statement, except in the case it relates to items recognised in other comprehensive income or directly in
equity. In this case, the tax is also recognised in other comprehensive income or directly in equity. The
prescribed tax rate is @25% for the Company.
Current tax
The current income tax charge is calculated based on tax laws enacted or substantively enacted at the
balance sheet date. Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to interpretation. It establishes provisions where
appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred tax
Principle of recognition
Deferred tax is recognised as income or an expense amount within the tax charge, and included in the net
profit or loss for the period. Deferred tax relating to items dealt with as other comprehensive income is
recognised as tax relating to other comprehensive income within the statement of profit or loss and other
comprehensive income.
Deferred tax relating to items dealt with directly in equity (such as the correction of an error or retrospective
application of a change in accounting policy) is recognised directly in equity.
Measurement
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting period.
Basic EPS
Renata Limited calculates basic earnings per share amounts for profit or loss attributable to ordinary equity
holders of the parent entity. Basic earnings per share is calculated by dividing profit or loss attributable to
ordinary equity holders of the parent entity (the numerator) by the weighted average number of ordinary
shares outstanding (the denominator) during the period.
Renata Limited presents basic earnings per share in the statement of profit or loss and other
comprehensive income. The Company presents basic earnings per share with equal prominence for all
periods presented. Renata Limited presents basic earnings per share, even if the amounts are negative (i.e.
a loss per share).
As there is a single business and geographic segment within which the Company operates, no segment
reporting is felt necessary.
•81
Renata Limited’s aim is therefore to achieve an appropriate balance between risk and return and minimize
potential adverse effects on Renata Limited’s financial performance. Renata Limited’s risk management
policies are designed to identify and analyze these risks, to set appropriate risk limits and controls, and to
monitor the risks and adherence to limits by means of reliable and up-to-date information systems. Renata
Limited regularly reviews its risk management policies and systems to reflect changes in markets, products
and emerging best practices
Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The senior management of Renata Limited carefully manages its
exposure to credit risk. Credit exposures arise principally in receivables from customers into Renata
Limited’s asset portfolio. The credit risk management and control are controlled through the credit policies
of Renata Limited which are updated regularly. The Company is also exposed to other credit risks arising
from balances with banks which are controlled through board approved counterparty limits.
Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time
or at a reasonable price.
The Company's approach toward managing liquidity is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Company's reputation. Typically, management
ensures that it has sufficient cash and cash equivalents to meet expected operational expenses, including
the servicing of financial obligations through preparation of the cash forecast prepared based on time line
of payment of the financial obligations and accordingly arrange for sufficient liquidity/fund to make the
expected payments within due date.
Market risk
Renata Limited takes on exposure to market risks, which is the risk that the fair value or future cash flows of
a financial instrument will fluctuate because of changes in market prices. Market risks arise from open
positions in interest rate and currency, all of which are exposed to general and specific market movements
and changes in the level of volatility of market rates or prices such as interest rates, credit spreads and foreign
exchange rates.
a) Currency risk
The Company is exposed to currency risk on certain receivables and payables such as receivables
from foreign customers and payables for import of raw materials, machinery and equipment. The
majority of the Company’s foreign currency transactions is denominated in US Dollar and relates to
procurement of raw materials, machinery and equipment from abroad.
Inventories
Inventory includes materials, work-in-process, stock in transit and finished goods. Disruption in raw material supply,
exchange rate fluctuation and increase in other production costs have impacted inventory value. The Company has
assessed inventory as per IAS-2 and reported it correctly at the lower of cost and net realizable value.
Trade receivables
The Company has assessed collectability of trade receivables and has kept sufficient provision as required.
Increase in receivable balance is due to increase in turnover of the Company in the normal course of business.
Others
Management of the Company has assessed other areas of operations and found no significant impact of COVID-19
thereon.
Buildings
At cost 3,319,220,764 90,554,167 583,258,235 - 3,993,033,166 1.54-5 672,773,486 9,602,617 116,266,896 - 798,642,999 3,194,390,167
On revaluation 41,291,251 - - - 41,291,251 1.54-5 14,648,386 - 635,885 - 15,284,271 26,006,980
3,360,512,015 90,554,167 583,258,235 - 4,034,324,417 687,421,872 9,602,617 116,902,781 - 813,927,270 3,220,397,147
Plant and machinery 8,730,002,091 123,505,535 1,040,595,849 - 9,894,103,475 5 - 20 3,302,110,020 24,277,950 610,681,164 - 3,937,069,134 5,957,034,341
Automobiles 463,471,087 - 101,752,057 36,523,503 528,699,641 25 307,048,838 - 74,871,574 36,523,503 345,396,909 183,302,733
Office equipment 835,950,649 2,584,006 54,476,878 - 893,011,533 10 - 12.5 300,379,483 717,924 91,438,536 - 392,535,943 500,475,591
Furnitures and fixtures 174,626,497 2,466,431 119,799,542 - 296,892,470 10 89,947,007 719,003 21,310,272 - 111,976,282 184,916,188
Total 30 June 2020 14,914,794,240 219,110,139 2,257,163,702 36,523,503 17,354,544,579 4,686,907,220 35,317,494 915,204,327 36,523,503 5,600,905,537 11,753,639,042
Total 30 June 2019 13,480,374,974 - 1,455,044,481 20,625,215 14,914,794,240 3,901,832,083 - 801,008,550 15,933,413 4,686,907,220 10,227,887,020
5.1 Initially recognised value of fully depreciated assets included in property, plant and
equipment is as follows:
•83
5.2 The freehold lands of the Company measuring 217.825 acres are located at:
5.4 The freehold land and buildings were revalued by a firm of professional valuers in the year 1995 and the
increase in net carrying amount as a result of revaluation were shown as addition/valuation in that year.
This represents mainly construction of buildings for Bhaluka general manufacturing facility, Bhaluka animal health
nutrition facility, warehouse for sachet filling facility, Dinajpur depot, Rangpur depot, Mirpur research and
development lab unit, extension of Rajendrapur general manufacturing facility, extension of head office, installation of
plant and machinery, their components and other fixed assets procured from foreign and local vendors.
6.1 The break down of capitalized property, plant and equipment is as follows:
Buildings 515,891,343 107,727,340
Plant and machinery 995,590,779 938,334,912
Office equipment 6,873,721 14,286,169
Furniture and fixtures 104,942,339 1,068,290
1,623,298,181 1,061,416,711
•85
7.5 Investment in subsidiary company - Renata Pharmaceuticals (Ireland) Limited
Renata Limited acquired 100% of equity interest in Renata Pharmaceuticals (Ireland) Limited (1 ordinary share of
Euro 100 each) on 24 April 2019. Purchase consideration with regard to the acquisition of the share amounted to Euro
100 being face value of the share. Renata Limited and Renata Pharmaceuticals (Ireland) Limited have been
operating under common control.
9 Trade receivables
9.1 Trade receivables disclosure as per Schedule-XI, Part-I, of the Companies Act, 1994
Trade receivables include Tk. 11,224,400 due from Renata Agro Industries Limited for the sale of nutritional
and animal health products during the year.
10 Other receivables
Advances
Deposits
Prepayments
(a) All advances, deposits and prepayments are considered regular and recoverable in the normal course of business.
(b) The maximum amount due from officers (manager and above) against salary during the year was Tk. 21,318,424.
(c) No amount was due from the Directors, Managing agent, Managers and other officers of the Company and any of
them severally or jointly with any other person except as stated in (b) above.
•87
12 Investment in shares and FDR 30 June 2020 30 June 2019
Taka Taka
Investment in shares (Note-12.1) 75,040,731 104,670,189
Investment in FDR (Note-12.2) 4,646,061,526 3,476,731,835
4,721,102,257 3,581,402,024
Cash at bank
Standard Chartered Bank 280,738,334 205,094,890
Eastern Bank Limited 312,906,954 276,418,400
Bank Asia Limited (including Renata Oncology Limited) 338,116,685 48,055,463
Commercial Bank of Ceylon PLC 56,380,178 140,398,765
Sonali Bank Limited 17,331,262 35,176,292
Citibank N. A. 32,940,926 15,527,098
Agrani Bank Limited 18,288,072 16,694,980
The City Bank Limited 9,850,116 30,202,732
BRAC Bank Limited 301,515,738 23,211,815
The Hongkong and Shanghai Banking Corporation Limited - 2,859,342
Prime Bank Limited - 90,397
United Commercial Bank Limited - 676,528
Bangladesh Commerce Bank Limited 93,084 96,274
1,368,161,349 794,502,976
1,294,260 ordinary shares of Tk.10 each issued for cash 12,942,600 12,942,600
1,724,490 ordinary shares of Tk.10 each issued for consideration other than cash 17,244,900 17,244,900
85,570,492 ordinary shares (77,516,925 ordinary shares as at 30 June 2019) of
Tk.10 each issued as bonus shares 855,704,920 775,169,250
885,892,420 805,356,750
These shares are listed with Dhaka Stock Exchange Limited and quoted at Tk 1,026.20 per share on 30 June 2020.
30 June 2020
No. of No. of
Holdings shareholders shareholders No. of total No. of % of total
as per folio as per BOID shareholders shareholdings shareholdings
•89
30 June 2020 30 June 2019
15 Revaluation surplus Taka Taka
The deficit amount of Tk. 43,065,180 of the net assets of Renata Oncology Limited over the net assets value of the
shares settled in consideration of cash by Renata Limited have been transferred and debited to “Other reserves” in the
books of Renata Limited pursuant to the Scheme of Amalgamation. This is the retained loss of Tk 43,066,180 of
Renata Oncology Limited net of consideration of share value of Tk. 1,000 (100 shares @ face value of Tk. 10 each) of
the minority shareholder.
17 Retained earnings
Taxable/(deductible)
temporary Deferred tax
Carrying amount Tax base difference liabilities/ (assets)
Taka Taka Taka Taka
Taxable/(deductible)
temporary Deferred tax
Carrying amount Tax base difference liabilities/ (assets)
Taka Taka Taka Taka
•91
30 June 2020 30 June 2019
19 Short term bank loan and overdrafts Taka Taka
Eastern Bank Limited (Note-19.1) 37,623,723 52,269,803
The City Bank Limited (Note-19.2) 260,460,000 238,979,895
Standard Chartered Bank (Note-19.3) 834,648,149 1,076,367,260
Citibank N. A. (Note-19.4) 411,934,856 539,592,529
Bank Asia Limited (Note-19.5) 183,643,469 95,412,837
Commercial Bank of Ceylon PLC (Note-19.6) 1,252,411,185 559,984,391
United Commercial Bank Limited 415,693 -
2,981,137,076 2,562,606,715
The terms and conditions of the facility available for Overdraft, Acceptance, LATR,
Revolving, Import and Demand loan are as follows:
Security
i) First charge over all present and future inventories and trade receivable of Renata Limited under
pari-passu security sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited jointly as above.
iii) Registered hypothecation by way of pari-passu with RJSC on entire inventory book debts and other floating
assets and plant and machinery of the Company in favor of Eastern Bank Limited.
Letter of credit / Acceptance (Sight / Usance) / Import finance / Short term loan
Purpose : To import API, excipient, packing and finished materials, to retire sight letter of
credit documents opened for procurement of API, excipient, packing and finished materials,
and for payment of duty and other charges related to import and VAT.
Facility limit : Combined Tk. 1,200 million.
Repayment : Within 180 days from the date of disbursement.
Overdraft
Purpose : To meet the day to day operating, promotional, and marketing expenses.
Facility limit : Tk. 100 million.
Repayment : Within 365 days from the date of disbursement.
Security
i) First charge over all present and future inventories and trade receivable of Renata Limited under pari-passu
security sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited with RJSC on pari-passu
security sharing basis with the existing lenders.
Overdraft
Purpose : For working capital purposes.
Facility limit : Tk. 150 million.
Repayment : Overdraft to be cleaned up for 3 days in one year.
Security
i) First charge over all present and future inventories and trade receivable of Renata Limited under pari-passu
security sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited jointly as above.
19.4 Citibank N. A.
Overdraft
Purpose : To finance regular selling, general and administrative expenses.
Facility limit : Combined USD 2,000,000.
Repayment : On demand.
Security
i) First charge over all present and future inventories and trade receivable of Renata Limited under pari-passu
security sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited jointly as above.
•93
Overdraft
Purpose : For payment of duty VAT, taxes and operating expenses.
Facility limit : Tk. 150 million.
Repayment : Within 180 days from the date of disbursement.
Security
i) First charge over all present and future inventories and trade receivable of Renata Limited under pari-passu
security sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited jointly as above.
Security
i) First charge over all present and future inventories and trade receivable of Renata Limited under pari-passu
security sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited jointly as above.
21 Other payables
VAT and other payables (including Renata Oncology Limited) 511,670,530 515,098,602
Advance from customers (Note-21.1) 537,525,993 5,296,645
Workers' participation fund (Note-21.2) 64,199,608 89,484,909
Provident fund (Note-21.3) 7,018,484 374,362
Unclaimed dividend (Note-21.4) 38,921,309 33,161,390
Export commission payable 29,159,816 6,896,754
Accrued interest 23,710,390 30,901,405
1,212,206,130 681,214,066
21.1 This amount represents advances received from customers against sales and for which respective sales have
accrued in the subsequent financial period.
21.3 Tk. 4,367,701 and Tk. 1,457,242 have been forfeited from the provident fund of outgoing employees from January
2015-June 2019 and from July 2019-June 2020 respectively. Renata Limited has successfully retrieved Tk. 3,576,963
(forfeited during January 2015-June 2019) and Tk. 1,457,242 (forfeited during July 2019-June 2020) from existing
employees by 30 June 2020. The process of retrieving the remaining amount of Tk. 790,738 (forfeited during January
2015-June 2019) from employees who have already left the Company is currently underway.
Amount in Taka
2019-2020 2018-2019
During the year, sale of pharmaceutical products includes export sales of Tk. 693,632,930 equivalent to US$
7,789,681 (Tk. 466,830,128 equivalent to US$ 5,558,351 for the year ended 30 June 2019).
•95
2019-2020 2018-2019
24 Cost of sales Tata Taka
As per Part II of Schedule XI of the Companies Act, 1994 the quantities of raw materials, purchases and stocks
should be expressed in quantitative denomination. However, this could not be provided as the Company deals with
large number of products both locally made and imported.
Materials available in local market are procured from the local manufacturers. Materials are imported from the
following countries either directly from the manufacturers or suppliers approved by the Drug Administration:
2019-2020 2018-2019
25 Administrative expenses
Taka Taka
Salaries, wages and allowances 230,939,161 204,553,776
Travelling and conveyance 28,657,799 30,256,650
Training expenses 3,317,524 881,700
Stationeries and supplies 7,877,850 9,850,712
Postage, telex, fax and telephone 7,496,864 4,219,001
Electricity, fuel, gas and water 16,933,346 22,234,792
Employees’ free lunch, snacks and tea expenses 31,472,419 30,161,976
Staff uniform 379,993 563,521
Rent 8,352,425 6,857,985
Repairs and maintenance 13,240,133 8,455,601
Govt. taxes and license fees 2,231,448 3,066,761
Cleaning & security services 6,157,236 5,492,910
Depreciation (Note-5.3) 17,521,334 15,512,068
Software and hardware support services 19,536,929 28,608,045
Insurance premium 7,063,300 5,416,508
Automobile expenses 15,546,646 14,742,516
Legal and professional expenses 504,500 207,091
Audit fees 962,500 805,000
Board meeting attendance fee 300,000 430,000
Subscription and membership fees 1,559,610 4,479,715
Meeting and corporate expenses 16,152,192 13,508,097
AGM expenses 367,804 1,985,560
Health and safety 85,826 -
Other expenses 21,215,585 22,042,678
457,872,424 434,332,663
•97
2019-2020 2018-2019
26 Selling, marketing and distribution expenses
Taka Taka
Salaries, wages and allowances 1,926,845,117 1,679,794,345
Travelling and conveyance 513,184,659 487,833,962
Training expenses 8,779,279 5,619,687
Stationeries and supplies 39,603,465 30,331,316
Postage, telex, fax and telephone 75,602,453 43,200,990
Electricity, fuel, gas and water 27,877,814 27,613,683
Employees’ free lunch, snacks and tea expenses 167,420,889 151,773,671
Staff uniform 2,086,605 2,009,858
Rent 23,201,120 25,948,698
Repairs and maintenance 13,928,996 16,564,633
Govt. taxes and license fees 15,433,528 17,567,415
Cleaning & security services 58,063,287 55,870,197
Depreciation (Note-5.3) 150,324,825 139,608,599
Insurance premium 14,956,787 14,804,515
Automobile expenses 38,244,760 30,043,569
Journal and advertisement 27,183,119 32,987,729
Free sample 123,509,318 111,280,168
Marketing and sales promotional expenses 359,649,656 1,152,915,446
Product literature 258,739,078 255,154,376
Distribution expenses 471,899,408 424,689,528
Export expenses 42,666,942 41,670,320
Special discount 435,057,023 371,208,478
Subscription and membership fees 16,510,685 22,622,944
Meeting and corporate expenses 118,314,544 122,529,264
Health and safety 1,293,214 18,887,605
Other expenses 172,183,013 87,630,614
5,102,559,584 5,370,161,610
27 Other Income
Last year's NAV has been adjusted due to issuance of bonus shares.
30.1 Weighted average number of ordinary shares outstanding during the year
Earnings attributable to the ordinary shareholders (net profit after tax for the year) 4,129,595,803 3,823,362,130
Weighted average number of ordinary shares outstanding during the year (Note-30.1) 88,589,242 88,589,242
Basic earnings per share (EPS) 46.62 43.16
Last year's EPS has been adjusted as per the requirement of IAS 33 "Earnings Per Share".
•99
2019-2020 2018-2019
Taka Taka
Adjustments for:
(Increase)/ decrease in inventories (921,363,546) (414,559,417)
(Increase)/ decrease in trade receivables (280,667,248) (76,303,805)
(Increase)/ decrease in other receivables (269,271,414) (182,663,047)
(Increase)/ decrease in advances, deposits and prepayments (99,000,486) 28,083,685
Increase/ (decrease) in trade payables (60,028,743) 346,036,516
Increase/ (decrease) in other payables 532,388,661 (278,899,422)
Cash generated by operations 6,020,998,226 5,606,096,550
Finance costs (228,041,378) (150,177,868)
Payment of tax (1,194,062,327) (1,300,676,754)
Net cash generated from operating activities 4,598,894,521 4,155,241,928
The computation of net operating cash flow per share is given below:
Last year's net operating cash flow per share has been adjusted due to issuance of bonus shares.
Amount in Taka
Directors Officers
Short-term employee benefits
Remuneration 13,697,866 571,132,640
House rent 8,038,930 424,177,979
Bonus 5,707,445 245,701,674
Conveyance allowance and transport 3,372,835 179,037,863
Other welfare expenses 5,767,060 49,350,972
Post-employment benefits
Contribution to provident fund 1,369,787 55,999,081
Gratuity 1,712,233 81,287,767
39,666,156 1,606,687,976
34.1 During the year, no payment has been made to any non-executive Directors for any special services rendered.
35 Contingent liabilities
35.1 There are contingent liabilities on account of unresolved disputed corporate income tax assessments involving tax
claims by the tax authority amounting to Tk. 3,555,060 for the assessment year 2000-01, Tk. 11,888,503 for the
assessment year 2013-14 and Tk. 14,478,424 for the assessment year 2014-2015 which are pending before the
Hon'ble High Court Division of the Supreme Court, and Tk. 33,196,071 for the assessment year 2018-2019 awaiting
for appeal to be filed by us with the Taxes Appellate Tribunal.
35.2 The Assistant Commissioner of Taxes issued a notice vide letter No. SA-162/2014-2015/82 on 01 September 2014
claiming that during the assessment year 2008-09 (income year 2007), the Company did not deduct VAT on certain
accounting heads amounting to Tk. 245,280,917 and tax file reopened accordingly under Section 93 of the Income
Tax Ordinance, 1984. Total tax amount was calculated Tk. 73,584,275 on that claimed amount by using the prevailing
corporate tax rate 30%. However, the Hon'ble High Court delivered the verdict in favour of the Company on 6 January
2016 but the National Board of Revenue has made leave to appeal to the Supreme Court Appellate Division against
the verdict.
37 Commitments
On the statement of financial position date, the Company is enjoying 30 June 2020 30 June 2019
unfunded credit facilities from the following banks: Taka Taka
Letters of credits (Note-37.1) 2,426,510,888 1,745,661,987
Outstanding guarantees issued by the banks 220,823,176 666,110,566
Capital expenditure commitments 7,912,299,499 7,691,345,783
10,559,633,563 10,103,118,336
39 Disclosure as per requirement of Schedule XI, Part II of the Companies Act, 1994
39.1 Employee position of Renata Limited as per requirement of schedule XI, part II, Para-3
The company engaged 7,710 (6,886 as at 30 June 2019) employees as of June 2020, of which 5,113 (4,642 as at 30
June 2019) is permanent employees and 2,597 (2,244 as at 30 June 2019) is casual and temporary workers as
required. All employees received total salary of above Tk. 36,000 per annum.
2019-2020 2018-2019
Actual Actual
Major product group / Unit Capacity production Utilization production Utilization
(In ’000) (In ’000) % (In ‘000) %
Sterile dry fill (injectable) / Vials 8,155 10,003 122.66% 9,524 127.84%
Sterile liquid (inj) / Vials / Ampoules 15,350 23,016 149.94% 21,739 162.96%
Ointments / Tubes 1,500 775 51.67% 773 51.53%
Capsules and tablets / Cap / Tab 2,116,550 2,854,425 134.86% 2,595,456 151.34%
Oral liquid & dry syrup / Bottles 19,650 33,744 171.73% 32,923 185.59%
Water for injection / Ampoules 9,400 11,131 118.41% 10,953 128.86%
Premix feed supplement / Kg 5,900 7,390 125.25% 7,190 148.25%
Premix feed supplement / Sachets 6,800 8,386 123.32% 6,778 202.33%
Oral saline / Sachets 540,000 692,738 128.28% 543,024 152.96%
Potent Products / Tablets 2,650,000 2,957,601 111.61% 2,879,215 117.04%
•101
Foreign Local
40 Payments / receipts in foreign currency
currency currency
40.1 During the year, the following payments were made in foreign currency for USD Taka
imports, calculated on CIF basis of:
42 General
1) All the figures in the financial statements represent Bangladesh Taka currency rounded off to the nearest Taka.
2) The comparative information have been disclosed in respect of the year 2019-2020 for all numerical
information in the financial statements and also the narrative and descriptive information as found relevant for
understanding of the current year's financial statements.
Other events
There are no other material events identified after the statement of financial position date which require adjustment or
disclosure in these financial statements.
Place: Dhaka
Date: 26 October 2020
102 •renata annual report
Report and Financial Statements as at and for the year ended 30 June 2020
Board of Directors
• Mr. Kaiser Kabir, Chairman
• Mr. Md. Jubayer Alam, Director
• Mr. Nehal Ahmed, Independent Director
•103
The core business of Renata Agro has hitherto been the production of Day-Old-Chicks (DOCs). Due to
a structural shift in the poultry industry, Feed has now become the main profit earner for most of the
large companies, while the DOC business has been relegated to a secondary status.
Since Renata Agro does not operate in the commercial feed market, we have suffered badly due to
this shift in the Industry. Moreover, in the last financial year, the DOC market, in part due to the
Covid-19 pandemic experienced a severe downturn.
Given the bleak outlook for DOC as a stand-alone business, in Q2 we shifted our business model
towards producing specialty eggs and branded chicken meat exclusively for Purnava Limited. Given
the growing popularity of O3 and Vitamin-E eggs, we are hopeful that this shift to producing
commercial eggs augurs well for the Company. The breeder operation has been scaled down and its
output is largely used in the production of the newly launched Lal Jhunti chicken meat.
Although, the Company continues to make losses, the new business model has significantly cut down
losses from Q2 onwards.
Kaiser Kabir
Chairman
26 October 2020
•105
audit conducted in accordance with International Standards within the company to express an
on Auditing (ISAs) will always detect a material opinion on the financial statements.
misstatement when it exists. Misstatements can arise from We are responsible for the direction,
fraud or error and are considered if, individually or in the supervision and performance of the
aggregate they could reasonably be expected to influence audit. We remain solely responsible for
the economic decisions of users taken on the basis of our audit opinion.
these financial statements. We also provide those charged with
As part of an audit in accordance with ISAs, we exercise governance with a statement that we
professional judgment and maintain professional have complied with relevant ethical
skepticism throughout the audit. We also: requirements regarding independence,
and to communicate with them all
● Identify and assess the risks of material misstatement of relationships and other matters that may
the financial statements, whether due to fraud or error, reasonably be thought to bear on our
designed and performed audit procedures responsive to independence, and where applicable,
those risks, and obtain audit evidence that is sufficient related safeguards.
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting Report on Other Legal and Regulatory
from fraud is higher than for one resulting from error, as Requirements
fraud may involve collusion, forgery, intentional In accordance with the Companies Act
omissions, misrepresentations, or the override of internal 1994 and other applicable laws and
control. regulations, we also report the following:
● Obtain an understanding of internal control relevant to (a) we have obtained all the information and
the audit in order to design audit procedure that as explanations which to the best of our
appropriate in the circumstances, but not for the purpose knowledge and belief were necessary
of expressing an opinion on the effectiveness of the for the purposes of our audit and made
company's internal control. due verification thereof;
● Evaluate the appropriateness of accounting policies used (b) in our opinion, proper books of account
and the reasonableness of accounting estimates and as required by law have been kept by
related disclosures made by management. the company so far as it appeared from
● Conclude on the appropriateness of management's use our examination of those books; and
of the going concern basis of accounting and, based on
(c) the statement of financial position and
the audit evidence obtained, whether a material
statement of profit or loss and other
uncertainty exists related to events or conditions that comprehensive income dealt with by the
may cast significant doubt on the company's ability to report are in agreement with the books
continue as a going concern. If we conclude that a of account.
material uncertainty exists, we are required to draw
attention in our auditor's report to the related disclosures
in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of
our auditor's report. However, future events or conditions
may cause the company to cease to continue as a going
concern.
K.M. HASAN & CO.
● Evaluate the overall presentation, structure and content
Chartered Accountants
of the financial statements, including the disclosures, and
whether the financial statements represent the underlying Place: Dhaka, Bangladesh.
transactions and events in a manner that achieves fair Dated: 26 October 2020
presentation and
● Obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business activities
Current assets
Investment in shares and others 8 85,816,797 101,332,570
Inventories 9 60,589,783 103,445,871
Trade and other receivables 10 33,030,477 41,178,546
Advances, deposits and prepayments 11 24,692,396 18,600,889
Cash and cash equivalents 12 23,258,405 36,796,563
227,387,858 301,354,439
Total assets 760,141,891 789,771,722
•107
Renata Agro Industries Limited
STATEMENT OF PROFIT OR LOSS &
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Amount in Taka
Amount in Taka
Reserve for
Tax Holiday unrealized Retained
Particulars Share Capital reserve gain Earnings Total
Reserve for
Tax Holiday unrealised Retained
Particulars Share Capital reserve gain Earnings Total
•109
Renata Agro Industries Limited
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
Amount in Taka
Net cash and cash equivalents inflows/(outflows) for the year (A+B+C) (13,538,158) 28,682,589
Add: Opening cash and cash equivalents 36,796,563 8,113,974
Closing cash and cash equivalents 23,258,405 36,796,563
1.1 Renata Agro Industries Limited is a private company limited by shares incorporated on 07 September 1997 in
Bangladesh under the Companies Act, 1994. The shares of the company shall be under the control of the Directors of
the company.
3.4 Risk and uncertainties for use of estimates in preparation of Financial Statements
The preparation of financial statements in conformity with the International Accounting Standards (IASs) require
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of financial statements, and revenues and expenses during
the year. Actual results could differ from those estimates. Estimates are used for accounting of certain items such as
provision for doubtful accounts, depreciation, taxes, reserves and contingencies.
•111
No depreciation is charged on land and land development. Depreciation on all other fixed assets is charged on straight
line method in amount sufficient to write off depreciable assets over their estimated useful life. Depreciation is charged
for the full year on assets acquisitioned during the year. The rates of depreciation are indicated in Note-5.
Depreciation has been allocated on farm overhead expenses, vitamin-E eggs expenses, omega-03 project,
administrative expenses, distribution expenses, hatchery expenses, feed mill expenses, marketing expenses and
laboratory expenses proportionately. The allocation of depreciation is indicated in Note-5.
3.7 Inventories
Inventories comprise of parent stock -broiler, parent stock- vitamin-E, parent stock- layer, feed stock, medicine, feed
mill ingredient, litter, generator fuel, LP gas, layer eggs-03, omega-03 feed, vitamin-E feed and vitamin-E eggs . All
these are stated at cost and considered as realizable value. No due allowance for any obsolete or slow moving items
have been accounted for.
(i) Sales are recognized at the time of delivery of products from the farm whether billed or not.
(ii) Other sales are recognized at the time of delivery from the farm.
Basic earnings
This represents earnings for the year attributable to ordinary shareholders. As there was no preference dividend,
minority interest or extra ordinary items, the net profit for the year has been considered as fully attributable to the
ordinary shareholders.
4. GENERAL
4.3 Comparative figures have been re-arranged whenever considered necessary to ensure better comparability with the
current period without causing any impact on the profit and value of assets and liability as reported in the financial
statements.
•113
Amount in Taka
5. PROPERTY, PLANT AND EQUIPMENTS
COST DEPRECIATION
Balance as at 30 June 2019 719,558,399 52,243,497 - 771,801,896 281,642,128 38,958,523 - 320,600,651 451,201,245
Amount in Taka
Allocation of depreciation
30 June 2020 30 June 2019
Farm overhead 28,297,886 29,291,220
Vitamin - E eggs expenses 667,944 667,944
Omega-03 Project 1,691,102 1,681,854
Administrative expenses 2,448,386 2,323,045
Distribution expenses - 750,296
Hatchery expenses 2,902,992 2,885,831
Feed mill 609,077 582,903
Marketing expenses 801,180 587,532
Laboratory expenses 191,523 187,898
37,610,090 38,958,523
Amount in Taka
•115
Amount in Taka
For the Year ended 30 June 2020 BDT BDT BDT BDT
Property, plant and equipment excluding cost of land 416,492,506 360,472,297 56,020,209 5,602,021
Provision for gratuity (7,202,464) - (7,202,464) (720,246)
Provision for doubtful debt (3,300,000) - (3,300,000) (330,000)
Investment in shares 35,816,797 18,406,615 17,410,182 1,741,018
Deferred tax liability/ (assets) as on 30 June 2020 6,292,792
Deferred tax liability/ (assets) as on 30 June 2019 8,080,739
Increase in deferred tax liabilities/ (assets) during the yeart (1,787,947)
•117
Amount in Taka
•119
Amount in Taka
19. REVENUE
Broiler 95,246,199 308,564,394
Eggs 5,320,506 4,471,234
Cull birds/ reject bird 41,344,572 52,787,569
Commercial broiler 59,315,078 257,400
Omega-03 eggs 58,030,641 45,188,466
Cattle 906,220 165,440
Vitamin-E eggs 29,742,285 21,503,214
Reject bird omega-3 eggs 5,131,440 6,273,549
Reject bird vitamin-E eggs 3,420,960 3,898,409
Others 3,219,173 3,781,370
301,677,074 446,891,045
•121
Amount in Taka
•123
30 June 2020 30 June 2019
27. PAYMENTS TO DIRECTORS AND OFFICERS
The aggregate amount paid during the year to officers of the company are disclosed below:
Basic 34,467,819 18,029,095
House rent 17,226,849 6,759,205
Bonus 8,182,426 9,214,268
Contribution to provident Fund 3,319,327 1,549,179
Gratuity 7,854,500 6,830,000
Medical expenses 345,000 996,000
Conveyance allowance and transport 664,500 750,000
72,060,421 44,127,747
28 Disclosure as per requirement of Schedule Xl, Part ll of the Companies Act, 1994
28.1 Employee Position of the Renata Agro Industries Limited as per requirement of schedule Xl, Part ll, Para-3
The Company engaged 310 employees of which 237 is permanent employees and 73 is casual and temporary
29 Payments / receipts in foreign currency
29.1 During the year, the following payments were made in foreign currency for imports, calculated on CIF basis of:
Foreign currency Foreign currency Foreign currency Local currency
GBP EURO US$ Taka
Board of Directors
• Mr. Kaiser Kabir, Chairman
• Mr. Monowarul Islam, Director
• Mr. Nehal Ahmed, Independent Director
•125
The Purnava team demonstrated admirable resilience during the Pandemic period. As doctors
withdrew from their private practice during the early months of the Pandemic, the growth of our
branded lifestyle products reduced considerably. To compensate for lost business, the team quickly
launched hand sanitizers and face-masks. Given the brand-equity that Purnava holds in the market,
these new products notched-up significant sales.
Strong digital-marketing increased online sales several-fold. Our distribution team put in long hours of
work to ensure timely delivery to shops and homes.
As doctor chambers re-open, we are hopeful that sales growth for our key brands shall return to a
high-growth trajectory.
The Company is now very close to achieving break-even sales. We are confident that Purnava shall
start earning profit from Q1 of the next fiscal year.
Kaiser Kabir
Chairman
Purnava Limited
26 October, 2020
•127
includes our opinion. Reasonable assurance is a However, future events or conditions may cause
high level of assurance, but is not a guarantee that an the company to cease to continue as a going
audit conducted in accordance with International concern.
Standards on Auditing (ISAs) will always detect a
material misstatement when it exists. Misstatements • Evaluate the overall presentation, structure and
can arise from fraud or error and are considered if, content of the financial statements, including the
individually or in the aggregate they could reasonably disclosures, and whether the financial statements
be expected to influence the economic decisions of represent the underlying transactions and events
users taken on the basis of these financial in a manner that achieves fair presentation and
statements.
• Obtain sufficient appropriate audit evidence
As part of an audit in accordance with ISAs, we regarding the financial information of the entities
exercise professional judgment and maintain or business activities within the company to
professional skepticism throughout the audit. We express an opinion on the financial statements.
also: We are responsible for the direction, supervision
and performance of the audit. We remain solely
• Identify and assess the risks of material responsible for our audit opinion.
misstatement of the financial statements, whether
due to fraud or error, designed and performed We also provide those charged with governance with
audit procedures responsive to those risks, and a statement that we have complied with relevant
obtain audit evidence that is sufficient and ethical requirements regarding independence, and to
appropriate to provide a basis for our opinion. The communicate with them all relationships and other
risk of not detecting a material misstatement matters that may reasonably be thought to bear on
resulting from fraud is higher than for one our independence, and where applicable, related
resulting from error, as fraud may involve safeguards.
collusion, forgery, intentional omissions,
misrepresentations, or the override of internal Report on Other Legal and Regulatory
control. Requirements
In accordance with the Companies Act 1994 and
• Obtain an understanding of internal control other applicable laws and regulations, we also report
relevant to the audit in order to design audit the following:
procedure that as appropriate in the
circumstances, but not for the purpose of (a) we have obtained all the information and
expressing an opinion on the effectiveness of the explanations which to the best of our knowledge
company's internal control. and belief were necessary for the purposes of
our audit and made due verification thereof;
• Evaluate the appropriateness of accounting
policies used and the reasonableness of (b) in our opinion, proper books of account as
accounting estimates and related disclosures required by law have been kept by the company
made by management. so far as it appeared from our examination of
those books; and
• Conclude on the appropriateness of
management's use of the going concern basis of (c) the statement of financial position and statement
accounting and, based on the audit evidence of profit or loss and other comprehensive income
obtained, whether a material uncertainty exists dealt with by the report are in agreement with the
related to events or conditions that may cast books of account.
significant doubt on the company's ability to
continue as a going concern. If we conclude that
a material uncertainty exists, we are required to
draw attention in our auditor's report to the related
K. M. HASAN & CO.
disclosures in the financial statements or, if such Chartered Accountants
disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence Place: Dhaka
obtained up to the date of our auditor's report. Dated: 26 October, 2020
Non-current assets
Property, plant and equipment 4 8,607,687 3,473,118
Deferred tax assets 5 2,362,871 1,556,171
10,970,558 5,029,289
Current assets
Inventories 6 52,696,135 28,721,270
Trade receivables 7 94,423,463 38,182,384
Other receivables 8 3,571,912 1,353,309
Advance, deposits and prepayments 9 5,367,552 15,835,548
Cash and cash equivalents 10 21,008,507 7,712,715
177,067,569 91,805,226
Total assets 188,038,127 96,834,515
Shareholders' equity
Share capital 11 2,500,000 2,500,000
Retained earnings/(losses) (175,222,902) (161,587,086)
(172,722,902) (159,087,086)
Current liabilities
Trade payables 12 20,000,483 12,311,432
Other payables 13 337,551,750 240,051,750
Provision for taxation 14 3,208,796 3,558,419
360,761,029 255,921,601
Total equity and liabilities 188,038,127 96,834,515
•129
Purnava Limited
STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED JUNE 30, 2020
2019-2020 2018-2019
Notes Taka Taka
Amount in Taka
Share Retained
PARTICULARS Total
capital Earnings/(Losses)
•131
Purnava Limited
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2020
2019-2020 2018-2019
Taka Taka
D. Net increase/(decrease) in cash and cash equivalents for the year (A+B+C) 13,295,792 (9,275,180)
Place: Dhaka
Dated: 26 October, 2020
1. REPORTING ENTITY
•133
2.5 Component of the financial statements
According to the International Accounting Standards "IAS"-1, "Presentation of Financial Statements" a complete set of
Financial Statements include the following components:
a) Statement of Financial Position as at June 30, 2020.
b) Statement of Profit or Loss and Other Comprehensive Income for the year ended June 30, 2020.
c) Statement of Changes in Equity for the year ended June 30, 2020.
d) Statement of Cash Flows for the year ended June 30, 2020.
e) Notes to the Financial Statements for the year ended June 30, 2020.
2.9 Inventories
Inventories are valued at lower of cost and estimated net realizable value. The cost of inventories is valued at weighted
average cost method and includes expenditure for acquiring the inventories and bringing them to their existing location
and condition.
Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been transferred
to the buyer, the company has no managerial involvement of ownership of the goods, the amount of revenue and the
cost of the transaction can be measured reliably and it is probable that the economic benefit associated with the
transactions will flow to the company.
3. GENERAL
1) All the figures in the financial statements represent Bangladesh Taka currency (BDT) rounded off to the nearest
integer.
2) The comparative information has been disclosed in respect of June 30, 2020 for all numerical information in the
financial statements and also the narrative and descriptive information as found relevant for understanding of the
current year's financial statements.
COST DEPRECIATION
Written down
As at Additions Disposal/ As at Rate As at Charged Disposal/ As at value at
Particulars July 01, during Adjustment June 30, % July 01, during Adjustment June 30, June 30,
2019 the during 2020 2019 the year during 2020 2020
year the year the year
Furniture and fixtures 35,528 164,820 - 200,348 10% 33,931 8,312 - 42,243 158,105
Office equipments 1,336,323 267,708 - 1,604,031 10%-12.5% 615,610 162,233 - 777,843 826,188
Balance as at
30.06.2020 9,680,805 7,109,724 - 16,790,529 6,207,687 1,975,155 - 8,182,842 8,607,687
•135
June 30, 2020 June 30, 2019
5. DEFERRED TAX ASSETS Taka Taka
Carrying Taxable/
amount as at Tax base (deductible temporary
June 30, 2020 difference)
BDT BDT BDT
6. INVENTORIES
7. TRADE RECEIVABLES
Trade receivables disclosure as per Schedule-XI, Part-1, of The Companies Act, 1994
8. OTHER RECEIVABLES
Advances
Advance income tax (Note: 9.1) 2,170,567 2,684,939
Advances to employee (Note: 9.2) - 50,000
Advance to suppliers 823,757 4,798,457
Advance for inventory 2,373,228 8,301,940
Advance VAT - 212
5,367,552 15,835,548
9.1 Advance income tax
Authorized capital:
2,000,000 Ordinary shares of Tk. 100 each 200,000,000 200,000,000
No. of Face
Name of the shareholders shares value
•137
June 30, 2020 June 30, 2019
Taka Taka
12. TRADE PAYABLES
Inter-company payables:
Renata Limited 337,500,000 240,000,000
Audit fee payable 51,750 51,750
337,551,750 240,051,750
2019-2020 2018-2019
Taka Taka
15. COST OF SALES
17. DISCLOSURE AS PER REQUIREMENT OF SCHEDULE XI, PART II OF THE COMPANY ACT 1994
17.1 Employee position of Purnava Limited as per requirement of schedule XI, part II, para 3
The company engaged 131 employees of which 124 are permanent employees and 7 are casual and temporary workers
as required. All employees received total remuneration of above Tk. 36,000 per annum.
18.1 During the year the following payments were made in foreign currency for imports calculated on CIF basis of:
•139
19. RELATED PARTY DISCLOSURES
During the year the Company carried out a number of transactions with related parties in the normal course of
business on an arm's length basis. Name of those related parties, nature of those transactions and their total value
have been shown in the table below in accordance with IAS 24 "Related Party Disclosures".
20.1 The Board of Directors in its meeting held on 26 October, 2020 approved the audited financial statement of
the company for the year ended 30 June, 2020 and authorised the same for issue.
20.2 No material events occurred after the date of statement of audited financial position, non-disclosure of
which could affect the ability of the users of these audited financial statements to make appropriate
evaluation.
Place: Dhaka
Dated: 26 October, 2020
•141
Renata Limited
and its Subsidiaries
Independent
Auditor’s Report and
Audited Consolidated
Financial Statements For the year ended 30 June 2020
In our opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial position
of the Group as at 30 June 2020 and of its consolidated financial performance and its consolidated cash flows for the year then
ended in accordance with International Financial Reporting Standards (IFRSs).
Emphasis of Matter
We draw attention to note # 1.3 to the consolidated financial statements which describe the amalgamation of the fully owned
subsidiary Renata Oncology Limited with the Company. The Board of Directors of Renata Oncology Limited and Renata Limited
in their joint meetings held on 11 November 2019 and 13 November 2019 approved the amalgamation of Renata Oncology
Limited with the Company, whereby the Subsidiary will merge with the Company and the Company shall be the surviving entity.
Our opinion is not modified in respect of this matter. The financial statements reflect financial result of the amalgamated entity.
1. Revenue (Turnover)
See note # 23 to the consolidated financial statements
Key audit matters How the matters were addressed in our audit
ISAs require that, as part of our overall response to the risk of We performed walkthroughs of the revenue cycle at
fraud, when identifying and assessing the risks of material significant components to gain an understanding of when the
misstatement due to fraud, we evaluate which types of revenue should be recognized, to map out the relevant
revenue or revenue transactions might give rise to potential controls end to end and the processes in place.
fraud risks.
We assessed the design and implementation of these
The principal activities of the Group are manufacturing, controls. We tested the sample of individual sales
marketing and distribution of pharmaceutical, animal health transactions and traced to dispatch notes and subsequent
products, oncology-based products, agro-based products, cash receipt or other supporting documents. We have tested
poultry products and consumer products across a number of the design and operating effectiveness of key controls
geographical areas in home and abroad. We have specifically focusing on the following:
focused this key audit matter to cut-off and occurrence for
revenue recorded within 30 June 2020. Pressures to meet • Calculation of discounts, incentives and rebates;
stakeholders’ expectations could provide incentives to record • Segregation of duties in invoice creation and modification;
revenues where controls of the goods have not passed. • Timing of revenue recognition;
• Cross match sales order, sales invoices and dispatch
carefully.
•143
We performed analytical reviews to identify any unusual or
one-off material revenue transactions. We identified and
considered the impact of any credit notes or inventory returns
occurring after year-end, including evaluating the impact of
any material overdue debts from customers.
3. Inventory
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• Capitalization of expenditure which are not normally certification of work performed by the specialized personnel
attributable to the cost of the property, plant and to ensure that the assets under construction or pending
equipment. installation and not yet ready for intended use are
• Recording of an asset purchased, which in effect has not classified as work- in- progress.
actually been received by the entity at all.
• We also verified the date on which the assets are moved
Valuation of capital work-in-progress to PPE from the capital work-in-progress account to the property,
Management needs to ensure that the assets under plant and equipment (the date on which the asset is ready
construction or pending installation and not yet ready for for intended use), so that the depreciation on property,
intended use are classified as work- in- progress. An plant and equipment has been computed correctly.
appropriate system needs to put in place to capture all
directly identifiable costs, which can be capitalized, to be so • We reconciled the movement of capital work- in- progress
accumulated to capital work- in- progress whilst expenses from opening to closing, specifically verifying additions
which are not eligible for being capitalized are identified and during the year, capital assets completed during the year
charged to revenue in the normal course. and impairment of any opening capital work- in- progress
items.
Assessment of useful lives of assets
Management applies estimates and judgments in its • We assessed whether there are circumstances that
determination of useful lives of assets and reviews the useful indicate a possible impairment of property, plant and
lives of assets at each financial year end and adjusts for equipment and if such circumstances exist, how the same
changes, where appropriate. have been dealt with by the entity.
Impairment of assessment We were satisfied that the property, plant and equipment
At the end of each reporting period, management assesses recognition and measurement policies have been applied
whether there is any indication that an asset may be appropriately. Based on the work performed, we concluded
impaired. If any such indication exists, management that property, plant and equipment have been recorded
estimates the recoverable amount of the asset. If the appropriately.
recoverable amount of an asset is less than its carrying
amount, the carrying amount of the asset is reduced to its
recoverable amount.
7. Employee benefits
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8. Measurement of Deferred Tax Liability
Group reported net deferred tax liability totaling Taka We obtained an understanding, evaluated the design and
1,446,845,163 as at 30 June 2020. tested the operational effectiveness of the Group’s key
controls over the recognition and measurement of deferred
Significant judgment is required in relation to deferred tax tax assets and liabilities and the assumptions used in
liability as it is dependent on forecasts of future profitability estimating the future taxable expense of the Group.
over a number of years.
We also assessed the completeness and accuracy of the
data used for the estimations of future taxable expense.
Other Matter
The consolidated financial statements of the Group for the year ended 30 June 2019 were audited by another auditor who
expressed an unmodified opinion on these consolidated financial statements on 29 October 2019.
Other Information
Management is responsible for the other information. The other information comprises the director’s reports, financial highlights,
financial trend, statement of value addition and certification on corporate governance but doesn’t include the financial statements
and our auditor’s report. The director’s reports, financial highlights, financial trend, statement of value addition and certification
on corporate governance are expected to be made available to us after the date of this auditor’s report.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above when
it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the director’s reports, financial highlights, financial trend, statement of value addition and certification on corporate
governance that there is a material misstatement therein, we are required to communicate the matter to those charged with
governance.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements and
Internal Controls
Management is responsible for the preparation of the consolidated financial statements that give a true and fair view in
accordance with IFRSs, the Companies Act 1994, the Securities and Exchange Rules 1987, relevant notifications issued by
Bangladesh Securities and Exchange Commission (BSEC) and other applicable laws and regulations and for such internal
control as management determines is necessary to enable the preparation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
•149
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
• Obtain an understanding of internal control relevant to the audit 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 Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures,
and whether the consolidated financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the
direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
a) we 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;
c) the consolidated statement of financial position and consolidated statement of profit or loss and other comprehensive
income dealt with by the report are in agreement with the books of accounts and returns; and
d) the expenditure incurred was for the purposes of the Group’s business.
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RENATA LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
Amount in Taka
Non-current liabilities
Deferred tax liabilities 18 1,446,845,163 1,343,870,038
1,446,845,163 1,343,870,038
Current liabilities
Short term bank loan and overdrafts 19 2,981,137,076 2,562,606,715
Trade payables 20 523,338,327 577,121,240
Other payables 21 1,304,153,638 788,416,707
Provision for taxation 22 1,367,971,535 807,715,038
6,176,600,576 4,735,859,700
TOTAL EQUITY AND LIABILITIES 29,385,777,997 24,675,777,173
Tax expenses
Current tax 22 (1,758,124,679) (1,299,306,117)
Deferred tax 18 (107,648,572) (99,611,316)
(1,865,773,251) (1,398,917,433)
Net profit after tax for the year 4,012,113,335 3,755,504,293
Attributable to:
Equity holders of Renata Limited 4,012,126,486 3,755,508,969
Non-controlling interests (13,151) (4,676)
Total profit after tax for the year 4,012,113,335 3,755,504,293
Attributable to:
Equity holders of Renata Limited 3,971,497,900 3,752,991,207
Non-controlling interests (14,846) (4,906)
Total comprehensive income for the year 3,971,483,054 3,752,986,301
The annexed notes from 1 to 41 form an integral part of these Consolidated Financial Statements.
This is the Consolidated Statement of Profit or Loss and Other Comprehensive Signed for & on behalf of
Income referred to in our separate report of even date. ACNABIN
Chartered Accountants
Dhaka,
26 October 2020 M. Moniruzzaman, FCA
Partner
•153
RENATA LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Amount in Taka
Balance at 01 July 2018 700,310,221 154,808,121 46,637,673 - 56,743,224 14,549,628,623 15,508,127,862 69,010 15,508,196,872
Stock dividend issued 105,046,529 - - - - (105,046,529) - - -
Final dividend - - - - - (665,294,710) (665,294,710) - (665,294,710)
Adjustment of deferred tax liability due to extra - 158,972 - - - - 158,972 - 158,972
depreciation charged to revaluation reserve
Balance at 30 June 2019 805,356,750 154,331,208 46,637,673 - 54,338,060 17,535,319,640 18,595,983,331 64,104 18,596,047,435
Balance at 01 July 2019 805,356,750 154,331,208 46,637,673 - 54,338,060 17,535,319,640 18,595,983,331 64,104 18,596,047,435
Stock dividend issued 80,535,670 - - - - (80,535,670) - - -
Final dividend (cash dividend) - - - - - (805,356,750) (805,356,750) - (805,356,750)
Transfer to Other reserves due to merger of - - - - - 43,065,180 43,065,180 - 43,065,180
Renata Oncology Limited
Balance at 30 June 2020 885,892,420 153,854,296 46,637,673 (43,065,180) 13,709,475 20,705,254,771 21,762,283,455 48,803 21,762,332,258
The annexed notes from 1 to 41 form an integral part of these Consolidated Financial Statements.
Amount in Taka
D. Effect of exchange rate changes on cash and cash equivalents 1,633,925 3,364,206
F. Cash and cash equivalents at the beginning of the year 849,907,204 1,083,732,442
G. Cash and cash equivalents at the end of the year (E+F) 1,417,264,953 849,907,204
The annexed notes from 1 to 41 form an integral part of these Consolidated Financial Statements.
Dhaka,
26 October 2020
•155
Renata Limited and its Subsidiaries
Notes to the consolidated financial statements
As at and for the year ended 30 June 2020
1. Reporting entity
After approval of the Board of Directors and consent of minority shareholder, the Hon'ble High Court Division of the
Supreme Court of Bangladesh has sanctioned the Scheme of Amalgamation of Renata Oncology Limited with Renata
Limited on 26 July 2020 with effect from the appointed date 01 July 2019. The audited financial statements of Renata
Oncology Limited on 30 June 2019 have been used to account for the assets and liabilities of Renata Oncology Limited
in the books of Renata Limited.
Renata Oncology Limited will no longer continue as a separate entity as a result of amalgamation, rather all the
undertakings have entirely been transferred to Renata Limited at its continuing value. In accordance with the Scheme of
Amalgamation, Renata Limited paid in consideration at cash of net asset value equivalent to the share exchange ratio
that comes to 0.02 Renata Limited’s share for each share of Renata Oncology Limited to the ordinary minority
shareholder of Renata Oncology Limited, whose names were recorded in the Register of Members on the Record Date,
fixed by the Board of Directors of Renata Limited. Ordinary shares of Renata Oncology Limited that were held by Renata
Limited on the Record Date have been cancelled and deemed to have been cancelled without any further act or deed and
no shares of Renata Limited are required to be issued in lieu thereof. Finally, the deficit amount of Tk. 43,065,180 of the
net assets of Renata Oncology Limited over the net assets value of the shares settled in consideration of cash of Tk. 454
by Renata Limited have been transferred and debited to “Other Reserves” in the books of Renata Limited pursuant to the
Scheme of Amalgamation.
1.4 Subsidiaries
Subsidiaries are entities controlled by Renata Limited. An investor controls an investee when it is exposed, or has rights,
to variable returns from its involvement with the investee and has the ability to affect those returns through its power over
the investee. The followings are the subsidiaries of Renata Limited:
Purnava Limited
Purnava Limited, a subsidiary Company of Renata Limited, was incorporated on 17 August 2004 as a private limited
company under the Companies Act 1994 with authorized share capital of Tk. 200,000,000 divided into 2,000,000 ordinary
shares of Tk. 100 each. The Company commenced its commercial operation in 2009. The principal activities of the
Company are manufacturing, marketing and distribution of all kinds of consumer goods, consumer durables, food items,
edible oils and so on and to engage in the business as traders, importers, exporters, commission agents of all kinds
•157
2.4 Basis of consolidation
The group financial statements include the financial statements of Renata Limited and subsidiaries that it controls. The
Group prepares consolidated financial statements using uniform accounting policies for like transactions and other events
in similar circumstances. Consolidation of an investee shall begin from the date the investor obtains control of the
investee and cease when the investor loses control of the investee. Intra-group assets and liabilities, equity, income,
expenses and cash flows relating to transactions between entities of the Group are eliminated in full. Profits or losses
resulting from intra-group transactions that are recognised in assets are eliminated in full. The Group presents
non-controlling interests in the consolidated statement of financial position within equity, separately from the equity of the
owners of Renata Limited.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions of accounting estimates are recognised in the period in which the estimate is revised and in any future periods
affected as required by IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors. In particular, significant
areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect
on the amounts recognised in the consolidated financial statements include depreciation, amortization, impairment, net
realizable value of inventories, accruals, taxation and provision.
2.11 Offsetting
The Group does not offset assets and liabilities or income and expenses, unless required or permitted by an IFRS.
Elements of Costs
• Purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts
and rebates.
• Costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of
operating in the manner intended by the management.
• The initial estimate of the cost of dismantling and removing the item and restoring the site on which it is located.
Subsequent Costs
• Costs of day to day servicing [repairs and maintenance] are recognised as expenditure as incurred.
• Replacement parts are capitalized, provided the original cost of the items they replace is derecognised.
Cost model
After recognition as an asset, an item of property, plant and equipment is carried at its cost less any accumulated
depreciation and any accumulated impairment losses.
Revaluation model
After recognition as an asset, an item of property, plant and equipment is to be measured at a revalued amount, which
is its fair value less subsequent accumulated depreciation and impairment accumulated losses.
Where an asset’s carrying amount is increased as a result of a revaluation, the increase is recognised in other
comprehensive income and accumulated in equity under the heading of revaluation surplus. However, the increase is
recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised
in profit or loss. Where an asset’s carrying amount is decreased as a result of a revaluation, the decrease is recognised
in profit or loss. However, the decrease is recognised in other comprehensive income to the extent of any credit balance
existing in the revaluation surplus in respect of that asset. The revaluation surplus included in equity in respect of an item
of property, plant and equipment is transferred directly to retained earnings as the asset is used by the Group.
Depreciation
The depreciation charge for each period is recognised in consolidated profit or loss unless it is included in the carrying
amount of another asset. Depreciation of an asset begins when it is available for use, i.e. when it is in the location and
condition necessary for it to be capable of operating in the manner intended by management. The residual value and the
useful life of an asset is reviewed at least at each financial year-end and, if expectations differ from previous estimates,
the change(s) shall be accounted for as a change in an accounting estimate. Depreciation has been charged on
straight-line method on all property, plant and equipment that have already been put on operation except land. Full
month's depreciation is charged from the month the asset is put into use and no depreciation is charged for the month of
disposal. Rates of depreciation considering the useful lives of respective assets are as follows:
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Asset Type Depreciation rate (%)
30 June 2020 30 June 2019
Buildings 1.54-5 1.54-5
Plant and machinery 5-20 5-20
Automobiles 25 25
Office equipment 10-12.5 10-12.5
Furniture and fixtures 10 10
3.2 Leases
IFRS 16 introduces a single, on-balance sheet lease accounting model for lessees. A lessee recognises a right-to-use
asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease
payments. There are recognition exemptions for short-term leases and leases of low-value items. Lessor accounting
remains similar to the current standard- i.e. lessors continue to classify leases as finance or operating leases. The
standard is effective for annual periods beginning on or after 1 January 2019, but also with permission for early adoption.
The Group has applied the exemption for short-term leases and booked its rental payments as expenses in profit or loss
given that the enforceable period of all its current contracts are cancellable in the short-term and has no purchase option.
The Group assesses at the end of each reporting period whether there is any indication that an asset may be impaired. If
any such indication exists, the Group estimates the recoverable amount of the asset.
Investment in shares
The Group has elected to designate equity investments as measured at Fair Value through Other Comprehensive Income
(FVTOCI). They are initially recorded at fair value plus transaction costs and then remeasured at subsequent reporting
dates to fair value. Unrealised gains and losses are recognised in other comprehensive income. On disposal of the equity
investment, gains and losses that have been deferred in other comprehensive income are transferred directly to retained
earnings.
Dividends on equity investments and distributions from funds are recognised in the income statement when the Group’s
right to receive payment is established.
Trade receivables
Trade receivables are measured in accordance with the business model under which each portfolio of trade receivable is
held. The Group has a portfolio of trade receivables that is being managed within a business model whose objective is to
collect contractual cash flows, and are measured at amortised cost. Trade receivables measured at amortised cost are
carried at the original invoice amount less allowance for expected credit losses.
Expected credit losses are calculated in accordance with the simplified approach permitted by IFRS 9, using a provision
matrix applying lifetime historical credit loss experience to the trade receivables. The expected credit loss rate varies
depending on whether and the extent to which settlement of the trade receivables is overdue and it is also adjusted as
appropriate to reflect current economic conditions and estimates of future conditions. For the purpose of determining
credit loss rates, customers are classified into groupings that have similar loss patterns. The key drivers of the loss rate
are the nature of the business unit and the location and type of customer.
When a trade receivable is determined to have no reasonable expectation of recovery it is written off, firstly against any
expected credit loss allowance available and then to the income statement. Subsequent recoveries of amounts previously
provided for or written off are credited to the income statement.
Borrowings
All borrowings are initially recorded at the amount of proceeds received, net of transaction costs. Borrowings are
subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the
amount due on redemption being recognised as a charge to the income statement over the period of the relevant
borrowing.
Trade payables
Trade payables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost
using the effective interest method.
3.6 Inventories
Measurement
Inventories are measured at the lower of cost and net realizable value except for goods in transit which are valued at cost.
Cost of inventories
The costs of inventories are comprised of all costs of purchase, costs of conversion and other costs incurred in bringing
the inventories to their present location and condition. Cost of active materials, raw materials and packing materials is
assigned by using the first-in, first-out (FIFO) cost formula. Cost of work-in-progress and finished stocks are determined
by using FIFO cost formula including allocation of manufacturing overheads related to bringing the inventories to their
present condition. The Group uses standard cost method for measurement of cost of finished goods.
•161
Recognition as an expense
When inventories are sold, the carrying amount of those inventories is recognised as an expense in the period in which
the related revenue is recognised. The amount of any write-down of inventories to net realisable value and all losses of
inventories is recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any
write-down of inventories, arising from an increase in net realisable value, is recognised as a reduction in the amount of
inventories recognised as an expense in the period in which the reversal occurs.
Recognition
A provision is recognised when the Group has a present obligation (legal or constructive) as a result of a past event; it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and a reliable
estimate can be made of the amount of the obligation. If these conditions are not met, no provision is recognised. Accruals
are liabilities to pay for goods or services that have been received or supplied but have not been paid, invoiced or formally
agreed with the supplier, including amount due to employees.
The Group does not recognise a contingent liability. A contingent liability is disclosed; unless the possibility of an outflow
of resources embodying economic benefits is remote. The Group does not recognise a contingent asset. Contingent
assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow of economic
benefits to the Group.
Measurement of provisions
The amount recognised as a provision is the best estimate of the expenditure required to settle the present obligation at
the end of the reporting period.
Initial recognition
A foreign currency transaction is recorded, on initial recognition in the functional currency, by applying to the foreign
currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the
transaction.
Product revenue is recognised when control of the goods is passed to the customer. The point at which control passes is
determined by each customer arrangement, but generally occurs on delivery to the customer. Value added tax and other
sales taxes are excluded from revenue.
Product revenue represents net invoice value including fixed and variable consideration. Variable consideration arises on
the sale of goods as a result of discounts and allowances given and accruals for estimated future returns and rebates.
Revenue is not recognised in full until it is highly probable that a significant reversal in the amount of cumulative revenue
recognised will not occur.
The methodology and assumptions used to estimate rebates and returns are monitored and adjusted regularly in the light
of contractual and legal obligations, historical trends, past experience and projected market conditions. Once the
uncertainty associated with the returns and rebates is resolved, revenue is adjusted accordingly. The scheme has been
recognized as per 5 step model of IFRS-15 “Revenue from contract with customers”.
3.12 Taxation
The tax expense for the period comprises current tax and deferred tax. Tax is recognised in the income statement, except
in the case it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also
recognised in other comprehensive income or directly in equity.
Current tax
The current income tax charge is calculated based on tax laws enacted or substantively enacted at the balance sheet
date. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be
paid to the tax authorities.
Deferred tax
Principle of recognition
Deferred tax is recognised as income or an expense amount within the tax charge, and included in the net profit or loss
for the period. Deferred tax relating to items dealt with as other comprehensive income is recognised as tax relating to
other comprehensive income within the statement of profit or loss and other comprehensive income.
Deferred tax relating to items dealt with directly in equity (such as the correction of an error or retrospective application of
a change in accounting policy) is recognised directly in equity.
•163
Measurement
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset
is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by
the end of the reporting period.
Basic EPS
The Group calculates basic earnings per share amounts for profit or loss attributable to ordinary equity holders of the
parent entity. Basic earnings per share is calculated by dividing profit or loss attributable to ordinary equity holders of the
parent entity (the numerator) by the weighted average number of ordinary shares outstanding (the denominator) during
the period.
The Group presents basic earnings per share in the statement of profit or loss and other comprehensive income. The
Group presents basic earnings per share with equal prominence for all periods presented. The Group presents basic
earnings per share, even if the amounts are negative (i.e. a loss per share).
Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The senior management of the Group carefully manages its exposure to credit risk. Credit
exposures arise principally in receivables from customers into the Group’s asset portfolio. The credit risk management
and control are controlled through the credit policies of the Group which are updated regularly. The Group is also exposed
to other credit risks arising from balances with banks which are controlled through board approved counterparty limits.
The Group’s approach toward managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the Group’s reputation. Typically, management ensures that it has sufficient cash and cash equivalents
to meet expected operational expenses, including the servicing of financial obligations through preparation of the cash
forecast prepared based on time line of payment of the financial obligations and accordingly arrange for sufficient
liquidity/fund to make the expected payments within due date.
Market risk
The Group takes on exposure to market risks, which is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market prices. Market risks arise from open positions in interest rate and
currency, all of which are exposed to general and specific market movements and changes in the level of volatility of
market rates or prices such as interest rates, credit spreads and foreign exchange rates.
a) Currency risk
The Group is exposed to currency risk on certain receivables and payables such as receivables from foreign customers
and payables for import of raw materials, machinery and equipment. The majority of the Group’s foreign currency
transactions is denominated in US Dollar and relates to procurement of raw materials, machinery and equipment from
abroad.
Revenue
The principal activities of the Group are manufacturing, marketing and distribution of pharmaceutical, animal health
products, oncology-based products, agro-based products, poultry products, consumer products and so on. Although
lockdown and restriction in movements imposed due to COVID-19 has affected sales of the Group in the last quarter of
2019-2020, the Group has managed to recover in the subsequent quarter.
Inventories
Inventory includes materials, work-in-process, stock in transit and finished goods. Disruption in raw material supply,
exchange rate fluctuation and increase in other production costs have impacted inventory value. The Group has
assessed inventory as per IAS-2 and reported it correctly at the lower of cost and net realizable value.
Trade receivables
The Group has assessed collectability of trade receivables and has kept sufficient provision as required. Increase in
receivable balance is due to increase in turnover of the Group in the normal course of business.
Others
Management of the Group has assessed other areas of operations and found no significant impact of COVID-19 thereon.
•165
3.20 Auditors of Subsidiaries
Freehold land
At cost 1,292,290,469 357,725,141 - 1,650,015,610 - - - - 1,650,015,610
On revaluation 179,132,078 - - 179,132,078 - - - - 179,132,078
1,471,422,547 357,725,141 - 1,829,147,688 - - - - 1,829,147,688
Buildings
At cost 3,737,413,252 585,208,065 - 4,322,621,317 1.54-5 818,665,457 132,626,501 - 951,291,958 3,371,329,359
On revaluation 41,291,251 - - 41,291,251 1.54-5 14,648,386 635,885 - 15,284,271 26,006,980
3,778,704,503 585,208,065 - 4,363,912,568 833,313,843 133,262,386 - 966,576,229 3,397,336,339
Plant and machinery 9,114,686,627 1,042,203,826 - 10,156,890,453 5-20 3,465,718,596 623,820,513 - 4,089,539,109 6,067,351,344
Automobiles 517,368,939 108,429,253 39,728,235 586,069,957 25 344,963,250 83,355,071 38,606,579 389,711,742 196,358,215
Office equipment 852,970,974 54,765,786 - 907,736,760 10 -12.5 311,767,045 92,876,682 - 404,643,727 503,093,033
Furnitures and fixtures 180,233,492 119,964,362 - 300,197,854 10 93,270,318 21,474,920 - 114,745,238 185,452,616
Total 30 June 2020 15,915,387,082 2,268,296,433 39,728,235 18,143,955,280 5,049,033,052 954,789,572 38,606,579 5,965,216,045 12,178,739,235
Total 30 June 2019 14,415,934,536 1,520,077,761 20,625,215 15,915,387,082 4,213,343,418 851,623,047 15,933,413 5,049,033,052 10,866,354,030
Amount in Taka
6. Capital work- in-progress
30 June 2020 30 June 2019
•167
8. Inventories Amount in Taka
Trade receivables
2,736,334,613 2,392,271,023
Trade receivables- unsecured (101,872,915) (93,041,721)
Allowances for doubtful receivables 2,634,461,698 2,299,229,302
Other receivables
204,949,522 218,834,412
Sundry receivables - unsecured but considered good 311,079,125 237,958,072
Value Added Tax (VAT) recoverable (1,918,825) (1,918,825)
Allowances for doubtful receivables 514,109,822 454,873,659
3,148,571,520 2,754,102,961
Advances
Advance to employees for motorcycle 125,856,078 108,535,665
Advance to employees for scooter 34,500 217,500
Loan to employees against salary 49,013,224 49,147,221
Advance for house rent 6,102,975 11,384,978
Advance VAT 63,261,137 92,824,386
Advance for inventory 100,554,952 62,385,231
Advance to staff against expenses (other than petty cash) 98,173,645 34,715,131
Advance against expenses 29,539,193 35,108,174
Other advances 22,930,729 18,680,441
495,466,433 412,998,727
Prepayments
Insurance premium 7,942,620 4,995,610
7,942,620 4,995,610
563,640,262 469,016,265
(a) All advances, deposits and prepayments are considered regular and
recoverable in the normal course of business.
(b) The maximum amount due from officers (Managers and above) against
salary during the year was Tk. 21,318,424.
(c) No amount was due from the Directors, Managing agent, Managers and
other officers of the Company and any of them severally or jointly with
any other person except as stated in (b) above.
•169
Amount in Taka
30 June 2020
Holdings No. of No. of No. of No. of % of
shareholders shareholders total total total
as per folio as per BOID shareholders shareholdings shareholdings
•171
Amount in Taka
14. Revaluation surplus
30 June 2020 30 June 2019
The deficit amount of Tk. 43,065,180 of the net assets of Renata Oncology Limited over the net assets value
of the shares settled in consideration of cash by Renata Limited have been transferred and debited to “Other
reserves” in the books of Renata Limited pursuant to the Scheme of Amalgamation. This is the retained loss of
Tk 43,066,180 of Renata Oncology Limited net of consideration of share value of Tk. 1,000 (100 shares @
face value of Tk. 10 each) of the minority shareholder.
•173
Amount in Taka
The terms and conditions of the facility available for Overdraft, Acceptance, LATR, Revolving, Import and Demand loan
are as follows:
Overdraft
Security
i) First charge over all present and future inventories and trade receivable of Renata Limited under
pari-passu security sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited jointly as above.
iii) Registered hypothecation by way of pari-passu with RJSC on entire inventory book debts and other
floating assets and plant and machinery of the Company in favor of Eastern Bank Limited.
Purpose : To import API, excipient, packing and finished materials, to retire sight letter of credit documents
opened for procurement of API, excipient, packing and finished materials, and for payment of duty
and other charges related to import and VAT.
Facility limit : Combined Tk. 1,200 million.
Repayment : Within 180 days from the date of disbursement.
Overdraft
Purpose : To meet the day to day operating, promotional, and marketing expenses.
Facility limit : Tk. 100 million.
Repayment : Within 365 days from the date of disbursement.
Security
i) First charge over all present and future inventories and trade receivable of
Renata Limited under pari-passu security sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited with RJSC on
pari-passu security sharing basis with the existing lenders.
Purpose : To open letter of credits for import of raw materials, packing materials, capital machinery,
spares and other items required for regular course of business, for retirement of documents of
only sight letter of credits, and to provide acceptance against letter of credits issued by the bank.
Facility limit : Combined Tk. 2,250 million.
Repayment : Within 180/365 days from the date of disbursement.
Overdraft
Security
i) First charge over all present and future inventories and trade receivable of Renata Limited under
pari-passu security sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited jointly as above.
•175
19.4 Citibank N. A.
Purpose : To open letter of credits for import of raw materials, packing materials, capital machinery,
spares and other items required for regular course of business, and to refinance import letter of credits.
Facility limit : Combined USD 17,000,000.
Repayment : Within 180/360 days from the date of disbursement.
Purpose : To finance local purchase of active and raw materials, packing materials,
capital machinery, spares and other items required for regular course of business.
Facility limit : Combined USD 6,000,000.
Repayment : Within 180 days from the date of disbursement.
Overdraft
Security
i) First charge over all present and future inventories and trade receivable of Renata Limited under
pari-passu security sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited jointly as above.
Purpose : To import raw materials, machineries and spare parts for the Company.
Facility limit : Tk. 600 million.
Repayment : Within 180 days from the date of disbursement.
Revolving LATR
Purpose : Retirement of documents of only sight letter of credits.
Facility limit : Tk. 150 million.
Repayment : Within 120 days from the date of disbursement.
Overdraft
Purpose : For payment of duty VAT, taxes and operating expenses.
Facility limit : Tk. 150 million.
Repayment : Within 180 days from the date of disbursement.
Security
i) First charge over all present and future inventories and trade receivable of Renata Limited under
pari-passu security sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited jointly as above.
Security
i) First charge over all present and future inventories and trade receivable of
Renata Limited under pari-passu security sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited jointly as above.
Amount in Taka
•177
Amount in Taka
During the year, sale of pharmaceutical products includes export sales of Tk. 693,632,930
equivalent to US$ 7,789,681 (Tk. 466,830,128 equivalent to US$ 5,558,351 for the year ended 30 June 2019).
•179
27 Other income
Amount in Taka
Last year's NAV has been adjusted due to issuance of bonus shares.
29.1 Weighted average number of ordinary shares outstanding during the year
Earnings attributable to the ordinary shareholders (net profit after tax for the year) 4,012,126,486 3,755,508,969
Weighted average number of ordinary shares outstanding during the year (Note-29.1) 88,589,242 88,589,242
Basic earnings per share (EPS) 45.29 42.39
Last year's EPS has been adjusted as per the requirement of IAS 33 "Earnings Per Share".
Adjustments for:
(Increase)/ decrease in inventories (902,482,325) (410,752,103)
(Increase)/ decrease in trade and other receivables (403,434,944) (182,863,781)
(Increase)/ decrease in advances, deposits and prepayments (93,193,641) 36,368,063
Increase/ (decrease) in trade payables (53,782,912) 333,456,771
Increase/ (decrease) in other payables 517,168,025 (260,964,673)
Cash generated by operations 6,117,478,461 5,690,575,249
Finance costs (232,595,600) (153,933,538)
Payment of tax (1,199,298,537) (1,305,668,672)
Net cash flow from operating activities 4,685,584,324 4,230,973,039
The computation of net operating cash flow per share is given below:
Last year's net operating cash flow per share has been
adjusted due to issuance of bonus shares.
•181
33. Payments to Directors and officers
The aggregate amount paid (except Directors' fees for attending board meetings)
during the year to Directors and officers of the Company is disclosed below Amount in Taka
as required by the Securities and Exchange Rules-1987:
Directors Officers
Short-term employee benefits
Remuneration 13,697,866 605,600,459
House rent 8,038,930 441,404,828
Bonus 5,707,445 253,884,100
Conveyance allowance and transport 3,372,835 179,702,363
Other welfare expenses 5,767,060 49,695,972
Post-employment benefits
Contribution to provident fund 1,369,787 59,318,408
Gratuity 1,712,233 89,142,267
39,666,156 1,678,748,397
33.1 During the year, no payment has been made to any non-executive Directors for any special services rendered.
Final dividend paid to non-resident shareholder, Business Research International Corp. Inc. for the year 2018-2019 was
Tk. 140,093,104 equivalent to US$ 1,632,786.76 for their 17,511,638 shares.
35.1 There are contingent liabilities on account of unresolved disputed corporate income tax assessments involving tax
claims by the tax authority amounting to Tk. 3,555,060 for the assessment year 2000-01, Tk. 11,888,503 for the assess-
ment year 2013-14 and Tk. 14,478,424 for the assessment year 2014-2015 which are pending before the Hon'ble High
Court Division of the Supreme Court, and Tk. 33,196,071 for the assessment year 2018-2019 awaiting for appeal to be
filed by us with the Taxes Appellate Tribunal.
35.2 The Assistant Commissioner of Taxes issued a notice vide letter No. SA-162/2014-2015/82 on 01 September 2014
claiming that during the assessment year 2008-09 (income year 2007), the Company did not deduct VAT on certain
accounting heads amounting to Tk. 245,280,917 and tax file reopened accordingly under Section 93 of the Income Tax
Ordinance, 1984. Total tax amount was calculated Tk. 73,584,275 on that claimed amount by using the prevailing
corporate tax rate 30%. However, the Hon'ble High Court delivered the verdict in favour of the Company on 6 January
2016 but the National Board of Revenue has made leave to appeal to the Supreme Court Appellate Division against the
verdict.
38. Disclosure as per requirement of Schedule-XI, Part-II of the Companies Act, 1994
38.1 Employee position of Renata Limited as per requirement of schedule XI, Part-II, Para-3
The company engaged 8,151 (7,324 as at 30 June 2019) employees as at 30 June 2020, of which 5,474 (4,999 as at
30 June 2019) is permanent employees and 2,677 (2,325 as at 30 June 2019) is casual and temporary workers as
required. All employees received total salary of above Tk. 36,000 per annum.
39.1 During the year, the following payments were made in foreign currency for imports, calculated on CIF basis of:
Foreign Local
currency currency
USD Taka
Active, raw and packing materials
Machinery and spares 86,402,601 7,307,821,577
15,558,900 1,324,549,186
101,961,501 8,632,370,763
USD
Export of goods on FOB 7,789,681
•183
40. General
1) All the figures in the financial statements represent Bangladesh Taka currency rounded off to the nearest Taka.
2) The comparative information have been disclosed in respect of the year 2019-2020 for all numerical information in
the financial statements and also the narrative and descriptive information as found relevant for understanding of the
current year's financial statements.
The Board of Directors in their meeting held on 26 October 2020 have recommended cash dividend @ 130% per
share of Taka 10 each aggregating Taka 1,151,660,146 and stock dividend @ 10% of Taka 10 each aggregating Taka
88,589,242 for the year ended 30 June 2020 subject to approval of the shareholders in the Annual General Meeting
scheduled to be held on 19 December 2020. The financial statements for the year ended 30 June 2020 do not
include the effects of the above cash dividend and stock dividend which will be accounted for in the period when
shareholders' right to receive the payment will be established. The declared dividend is also in compliance with
section 16G of Income Tax Ordinance 1984.
Other events
There are no other material events identified after the statement of financial position date which require adjustment or
disclosure in these financial statements.
Dhaka,
26 October 2020
MANUFACTURING SITES
Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216, Bangladesh, PABX: (880 -2) 801 1012-13
Noyapara, Bhawal Mirzapur, Rajendrapur, Gazipur, Bangladesh, Tel: 06825-55148
Kashor, P.O.: Seed Store, P.S.: Bhaluka, Mymensingh, Bangladesh.
DISTRIBUTION CENTRES
•185
RENATA LIMITED Revenue
Stamp
of
PROXY FORM Taka 20.00
I/We, the undersigned, being a member of the above named Company hereby appoint
Mr./Ms.
Of (Address)
as my/our proxy to vote and act for me/us and on my/our behalf, at the 47th Annual General
Meeting of the Company, to be held through Digital Platform on Saturday, December 19, 2020 at
11.00 am and at any adjournment thereof.
Address
Folio/BO No.
Date:
Signature of the Proxy
RENATA LIMITED
I/We hereby record my/our attendance at the 47th Annual General Meeting being held on
Saturday, December 19, 2020 through Digital Platform at 11.00 am
Name of Shareholder(s)...............................................................................................................
•187
Renata Limited
Corporate Headquarters: Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216, Bangladesh, GPO Box No. 303
Phone: 8001450, 8001454 (PABX), Fax: 880-2-8001446, Website: www.renata-ltd.com
Find us on at http://www.facebook.com/renatalimited