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CAPITAL EXPENDITUREThe following capital expenditure made by the Company during the year amounted to Tk.1, 524.14 million.Taka in MillionFreehold Land 96.94Building 433.90Plant and Machinery 620.40Office Equipment, Furniture & Fixtures 43.31Automobile 17.41General Manufacturing Facility (Rajendrapur), Hormone Plant-II, Different depots & Others 312.18Total 1,524.14The investments were funded from internally generated cash and bank loans.DIVIDENDRenata continues to have a veryaggressive investment strategy. During2012 investments made for new GeneralManufacturing Facility, Hormone plant-IIat Rajendrapur, Barisal Depot, KeranigonjDepot and Feni Depot total investmentamounting to Taka 1,524.14 million. Theamount was financed through internalcash generation and bank loans.Investments of this magnitude areexpected to continue for the foreseeablefuture. Hence the Directors deem itnecessary to retain adequate funds forfinancing capital expenditures.The Board of Directors is pleased torecommend a cash dividend of Taka 6 perordinary share of Taka 10 each. Thisdividend will entail a payment of Taka169,451,250. The Board of Directors alsorecommend for declaration of StockDividend (Bonus Shares) in the ratio ofone Bonus Share for every four sharesheld (4:1B) for which an amount of Taka70,604,688 will have to be transferred toShare Capital Account.CONTRIBUTION TONATIONALEXCHEQUERDuring the year under review yourCompany paid Taka 1,565.2 million to theNational Exchequer in the form ofCorporate Income Tax, Import Duties andValue Added Tax (VAT)DIRECTORSThe Directors retiring by rotation underArticles 106, 109, 115 and 116 of theArticles of Association of the Companyare Mr. A. Hasnat Khan, Mrs. SajidaHumayun Kabir and Mr. Manzoor Hasan.Moreover Independent Director Mr. KaziAminul Huque who appointed by theFINANCIAL RESULTSThe Directors take pleasure in reporting the followingfinancial results of the Company for the year 20122012TAKA2011TAKAProfit before tax 1,712,375,851 1,438,836,938Less: Provision for tax 474,449,485 351,117,807Net Profit after tax 1,237,926,366 1,087,719,131Add/(Less) Other comprehensive income 9,348,964 2,914,910Total Comprehensive income 1,247,275,330 1,090,634,041Add; Unappropriated profit brought forward 3,250,750,286 2,358,802,379Add; Depreciation of revaluation surplus 635,885 635,885Less: Tax holiday reserve (Net) (75,165,779) (7,277,269)4,423,495,722 3,442,795,036APPROPRIATION RECOMMENDEDDividend proposed:a) Cash dividend @ Taka 6/- per Share 169,451,250 135,561,000b) Stock dividend (Bonus Share) in the ratioof one bonus share for everyfour(4:1B) Shares held 70,604,688 56,483,750240,055,938 192,044,750Balance of unappropriated profit carriedforward 4,183,439,784 3,250,750,2864,423,495,722 3,442,795,036Board of Directors during this year will also retires. All being eligibleoffer themselves for re-election, except Mrs. Sajida Humayun Kabirwho does not wish to seek re-election.AUDITORSThe Company’s Auditor Messrs S.F. Ahmed & Co., CharteredAccountants retire at the 40th Annual General Meeting. As per order ofBangladesh Securities and Exchange Commission the issuerCompany shall not appoint any firm of chartered accountants as itsstatutory auditors for a consecutive period exceeding three years. Assuch they are not eligible for reappointment. Therefore the Board ofDirectors is pleased to recommend Messrs Hoda Vasi Chowdhury &Co. Chartered Accountants as Auditor of the Company for the year2013 and fix their remuneration.CONSOLIDATION OF ACCOUNTSThe Company is consistently following the Code of International19 •renata annual report 12