RENATA LIMITEDCASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2012Figures in Taka2012 2011A. Cash flows from operating activities:Collection from customers and other incomePayment of VATPayment to suppliers and employeesCash generated from operationFinancing costPayment of taxNet cash from operating activitiesB. Cash flows from investing activities:Purchase of property, plant and equipmentInvestment in sharesSale proceeds of property, plant and equipmentNet cash used in investing activitiesC. Cash flows from financing activities:Bank loan (repaid)/received (net)Non convertible bond issueDividend paidNet cash generated from financing activitiesD. Net cash outflows for the year (A+B+C)E. Opening cash and cash equivalentsF. Closing cash and cash equivalents (D+E)8,696,834,669(1,109,202,451)(5,876,069,492)1,711,562,726(370,881,897)(253,421,332)1,087,259,497(1,524,143,603)(7,029,261)200,000(1,530,972,864)(232,054,247)1,000,000,000(134,205,384)633,740,369190,027,002141,265,972331,292,9747,271,765,062(912,593,792)(5,013,045,176)1,346,126,094(215,315,416)(230,677,854)900,132,824(2,460,811,903)(402,784)767,812(2,460,446,875)1,608,568,138-(85,372,340)1,523,195,798(37,118,253)178,384,225141,265,972The annexed notes 1 to 37 form an integral part of these financial statements.•56
RENATA LIMITEDNOTES TO THE FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31 DECEMBER 20121. <strong>Report</strong>ing Entity1.1 Company profile<strong>Renata</strong> Limited (“the Company”) is a public limited company incorporated in Bangladesh in 1972 as Pfizer Laboratories(Bangladesh), under the Companies Act 1913. In 1993, the Company was renamed as “<strong>Renata</strong> Limited”. The authorizedcapital of the Company is Tk. 1,000,000,000 divided into 100,000,000 ordinary shares of Tk. 10 each with a paid up capitalof Tk. 282,418,750 divided into 28,241,875 ordinary shares of taka 10 each. The address of the registered office of thecompany is Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka -1216. The shares of the Company are publicly traded on thefloor of Dhaka Stock Exchange Limited.Principal ActivitiesManufacture, marketing and distribution of pharmaceutical and animal health products.1.2 Subsidiary Companies1.2.1 <strong>Renata</strong> Agro Industries Limited<strong>Renata</strong> Agro Industries Limited, a subsidiary company of <strong>Renata</strong> Limited, was incorporated on 7 September 1997 as a privatelimited company under the Companies Act 1994 with authorized share capital of Tk. 150,000,000 divided into 1,500,000ordinary shares of Tk. 100 each. The company commenced its commercial operation from October 1998. The principalactivities of the company comprises of poultry breeding and selling various agro based products.1.2.2 Purnava LimitedPurnava Limited, a subsidiary company of <strong>Renata</strong> Limited, was incorporated on 17 August 2004 as a private limited companyunder 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 to carry onbusiness of manufacturing, marketing and distribution of all kinds of consumer goods, consumer durables, food items, edibleoils etc. and to engage in the business as traders, importers, exporters, commission agents of all kinds of goods and servicesincluding pharmaceutical products.2. Significant Accounting Policies2.1 Property, plant and equipmentItems of Property, plant & equipment is recognized where it is probable that future economic benefits will flow to the entityand their cost can be measured reliably.Measurement at recognitionAn item of Property, plant & equipment qualifying for recognition is initially measured at its cost. Cost comprises:- Purchase price, including all non recoverable duties and taxes but net of discounts.- Costs directly attributable to bringing the asset to the location and condition necessary for it to be capable ofoperating in the manner intended by the management.Subsequent Costs- Repairs and maintenance expenditure is recognized as expenditure as incurred.- Replacement parts are capitalized, provided the original cost of the items they replace is derecognized.DepreciationDepreciation is commenced when the asset is in the location and condition necessary for it to be capable of operating inthe manner intended. Property plant and equipment of <strong>Renata</strong> Limited are depreciated using straight-line methodwhereby there is a constant charge each year, on the assumption that equal amounts of economic benefit are consumedin each year of the assets life. Each significant part of an item of Property, plant & equipment is depreciated separately,using their useful lives. The residual value and useful life of an asset are reviewed in each year end. Depreciation is57 •renata annual report 12
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