Renata : Quarterly Report 2023-24 (First Quarter)

RENATA LIMITED

FINANCIAL STATEMENTS FOR THE PERIOD JULY TO SEPTEMBER 2023 (UNAUDITED)

RENATA LIMITED

Plot-1, Milk Vita Road, Section-7

Mirpur, Dhaka-1216

Dear Shareholders,

Subject: Financial statements for the first quarter ended 30 September 2023

We are pleased to present the unaudited first quarter's interim condensed consolidated and separate financial statements of Renata Limited and its subsidiaries containing the Statement of Financial Position as at 30 September 2023, the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Cash Flows and the Statement of Changes in Equity for the first quarter ended 30 September 2023. The details of the published first quarter financial statements are available in the website of the Company. The address of the website is www.renata-ltd.com

Yours Sincerely

for RENATA LIMITED

Syed S. Kaiser Kabir

CEO and Managing Director

Renata Limited

Statement of Financial Position as at 30 September 2023

(Unaudited)

ASSETS	Notes		30 September 2023	30 June 2023
		Taka in 000's	Taka in 000's
Non-current assets
Property, plant and equipment (WDV)	4		31,640,050	31,034,633
Intangible assets	5		142,395	147,529
Investment in subsidiaries	6		190,010	190,010
Employee benefits			300,702	297,712
Total non-current assets			32,273,157	31,669,883
Current assets
Inventories		7	10,192,256	9,548,408
Trade and other receivables			4,489,164	4,070,182
Advances, deposits and prepayments		8	1,167,756	1,048,100
Investment in shares and FDR		9	569,653	555,844
Cash and cash equivalents		10	1,062,718	1,836,746
Total current assets			17,481,547	17,059,280
Total assets			49,754,704	48,729,163
EQUITY AND LIABILITIES
Shareholders' equity
Share capital	11		1,146,965	1,146,965
Revaluation surplus			172,747	172,747
Other reserves			526,898	526,898
Fair value reserve			23,953	23,935
Retained earnings			29,671,699	28,664,069
Total shareholders' equity			31,542,262	30,534,613
Non-current liabilities
Loans and borrowings	13		4,176,611	3,401,914
Deferred tax liabilities	12		1,239,306	1,189,653
Total non-current liabilities			5,415,917	4,591,567
Current liabilities
Loans and borrowings	13		9,250,377	10,878,813
Trade and other payables			1,449,860	1,431,302
Accruals and provisions			1,662,499	852,954
Unclaimed dividend			26,794	26,919
Provision for taxation			406,996	412,996
Total current liabilities			12,796,526	13,602,983
Total equity and liabilities			49,754,704	48,729,163
Net asset value (NAV) per share	17		275.01	266.22
Number of shares used to compute NAV	Nos. in 000's		114,696	114,696

Dr. Sarwar Ali	Syed S. Kaiser Kabir	Nehal Ahmed	Md. Jubayer Alam	Mustafa Alim Aolad
Chairman	CEO and Managing Director	Independent Director	Company Secretary	Chief Financial Officer

Page 1

Renata Limited

Statement of Profit or Loss and Other Comprehensive Income for the period from 01 July to 30 September 2023

(Unaudited)

	Notes		2023	2022
		(July-September)	(July-September)
			Taka in 000's	Taka in 000's
Turnover		14	9,421,543	8,370,646
Cost of sales		15	(5,246,530)	(4,417,506)
Gross profit			4,175,013	3,953,140
Administrative, selling, marketing & distribution expenses			(2,620,536)	(2,092,391)
Operating profit			1,554,477	1,860,749
Other income			65,084	19,077
Finance costs			(283,495)	(286,059)
Profit before contribution to workers' profit participation			1,336,066	1,593,767
Contribution to workers' profit participation			(63,622)	(75,894)
Profit before tax			1,272,444	1,517,873
Current tax			(215,160)	(272,674)
Deferred tax		12	(49,653)	-
Net profit after tax for the period			1,007,630	1,245,199
Other comprehensive income
Net profit after tax for the period			1,007,630	1,245,199
Items that will not be reclassified to profit or loss
Fair value adjustment on investment in shares, net of tax			19	(2,631)
Realised gain/ (loss) on disposal of shares			-	-
Total comprehensive income for the period			1,007,649	1,242,568
Basic earnings per share i.e. EPS (par value of Tk. 10)	18		8.79	10.86
Number of shares used to compute EPS	Nos. in 000's		114,696	114,696

Dr. Sarwar Ali	Syed S. Kaiser Kabir	Nehal Ahmed	Md. Jubayer Alam	Mustafa Alim Aolad
Chairman	CEO and Managing Director	Independent Director	Company Secretary	Chief Financial Officer

Page 2

Renata Limited

Statement of Cash Flows for the period from 01 July to 30 September 2023

(Unaudited)

Notes	2023	2022
(July-September)	(July-September)
	Taka in 000's	Taka in 000's

1. Cash flows from operating activities:

	Collection from customers and other income		9,067,645	9,651,213
	Payment for cost and expenses		(7,841,526)	(8,349,147)
	Income tax paid		(221,160)	(274,549)
	Net cash generated from operating activities	19	1,004,959	1,027,517
B.	Cash flows from investing activities:
	Acquisition of fixed assets		(941,467)	(1,424,868)
	Investment in shares and FDR		(13,809)	1,046,690
	Investment in subsidiaries		-	(190,000)
	Sale proceeds of property, plant and equipment		3,152	2,187
	Net cash used in investing activities		(952,124)	(565,991)

1. Cash flows from financing activities:

	Loans and borrowings (net)	(853,740)	(482,521)
	Dividend paid	(125)	(567)
	Net cash used in financing activities	(853,864)	(483,088)
D.	Effect of exchange rate changes on cash and cash equivalents	27,002	30,963
E.	Net increase/ (decrease) in cash & cash equivalents (A+B+C+D)	(774,028)	9,401
F.	Opening cash and cash equivalents	1,836,746	778,537
G.	Closing cash and cash equivalents (E+F)	1,062,718	787,938

Net operating cash flow per share	20	8.76	8.96
Number of shares used to compute net operating cash
flow per share	Nos. in 000's	114,696	114,696

Dr. Sarwar Ali	Syed S. Kaiser Kabir	Nehal Ahmed	Md. Jubayer Alam	Mustafa	Aolad
Chairman	CEO and Managing Director	Independent Director	Company Secretary	Chief Financial Officer

Page 3

Renata Limited and its subsidiaries

Consolidated Statement of Profit or Loss and Other Comprehensive Income for the period from 01 July to 30 September 2023

(Unaudited)

	Notes		2023	2022
		(July-September)	(July-September)
			Taka in 000's	Taka in 000's
Turnover	14(a)	15	9,440,195	8,370,646
Cost of sales		(5,246,530)	(4,417,506)
Gross profit			4,193,665	3,953,140
Administrative, selling, marketing & distribution expenses			(2,626,534)	(2,092,391)
Operating profit			1,567,131	1,860,749
Other income			66,083	19,077
Finance costs			(283,495)	(286,059)
Profit before contribution to workers' profit participation			1,349,719	1,593,767
Contribution to workers' profit participation			(63,622)	(75,894)
Profit before tax			1,286,097	1,517,873
Current tax			(216,723)	(272,674)
Deferred tax	12		(49,653)	-
Net profit after tax for the period			1,019,721	1,245,199
Other comprehensive income
Net profit after tax for the period			1,019,721	1,245,199
Items that will not be reclassified to profit or loss				-
Unrealised gain on exchange differences of subsidiaries			(6,351)
Fair value adjustment on investment in shares, net of tax			19	(2,631)
Realised gain/(loss) on disposal of shares			-	-
Total comprehensive income for the period			1,013,389	1,242,568
Basic earnings per share i.e. EPS (par value of Tk. 10)	18(a)		8.89	10.86
Number of shares used to compute EPS	Nos. in 000's		114,696	114,696

Dr. Sarwar Ali	Syed S. Kaiser Kabir	Nehal Ahmed	Md. Jubayer Alam	Mustafa Alim Aolad
Chairman	CEO and Managing Director	Independent Director	Company Secretary	Chief Financial Officer

Page 5

Renata Limited and its subsidiaries

Consolidated Statement of Cash Flows for the period from 01 July to 30 September 2023

(Unaudited)

Notes	2023	2022
(July-September)	(July-September)
	Taka in 000's	Taka in 000's

1. Cash flows from operating activities:

	Collection from customers and other income		9,087,295	9,651,213
	Payment for cost and expenses		(7,856,829)	(8,349,163)
	Income tax paid		(221,160)	(274,549)
	Net cash generated from operating activities	19(a)	1,009,306	1,027,501
B.	Cash flows from investing activities:
	Acquisition of fixed assets		(941,467)	(1,424,868)
	Investment in shares and FDR		(13,809)	1,046,690
	Sale proceeds of property, plant and equipment		3,152	2,187
	Net cash used in investing activities		(952,124)	(375,991)

1. Cash flows from financing activities:

	Loans and borrowings (net)	(853,740)	(482,521)
	Dividend paid	(125)	(567)
	Net cash used in financing activities	(853,864)	(483,088)
D.	Effect of exchange rate changes on cash and cash equivalents	6,351	30,963
E.	Net increase/ (decrease) in cash & cash equivalents (A+B+C+D)	(790,332)	199,385
F.	Opening cash and cash equivalents	2,129,392	778,574
G.	Closing cash and cash equivalents (E+F)	1,339,060	977,959

Net operating cash flow per share	20(a)	8.80	8.96
Number of shares used to compute net operating cash
flow per share	Nos. in 000's	114,696	114,696

Dr. Sarwar Ali	Syed S. Kaiser Kabir	Nehal Ahmed	Md. Jubayer Alam	Mustafa Alim Aolad
Chairman	CEO and Managing Director	Independent Director	Company Secretary	Chief Financial Officer

Page 6

Renata Limited

Statement of Changes in Equity for the period from 01 July to 30 September 2023

						Taka in 000's
Particulars	Share	Revaluation	Other	Fair value	Retained	Total
capital	surplus	reserves	reserve	earnings	equity
	Taka	Taka	Taka	Taka	Taka	Taka

Balance at 01 July 2022	1,071,930	152,868	219,338	26,568	27,941,599	29,412,303
Adjustment of deferred tax liability due to extra	-	36	-	-	-	36
depreciation charged to revaluation reserve
Depreciation adjustment on revalued assets	-	(159)	-	-	159	-
Net profit after tax for the period	-	-	-	-	1,245,199	1,245,199
Fair value adjustment on investment in shares, net	-	-	-	(2,631)	-	(2,631)
of tax
Realised gain/ (loss) on disposal of shares	-	-	-	-	-	-
Transfer between reserves- realised gain/ loss on	-	-	-	-	-	-
disposal of shares
Balance at 30 September 2022	1,071,930	152,746	219,338	23,938	29,186,957	30,654,909
Balance at 01 July 2023	1,146,965	172,747	526,898	23,935	28,664,069	30,534,613
Bonus share issued	-	-	-	-	-	-
Cash dividend paid	-	-	-	-	-	-
Adjustment of deferred tax liability due to extra	-	-	-	-	-	-
depreciation charged to revaluation reserve
Depreciation adjustment on revalued assets	-	-	-	-	-	-
Net profit after tax for the period	-	-	-	-	1,007,630	1,007,630
Fair value adjustment on investment in shares, net	-	-	-	19	-	19
of tax
Balance at 30 September 2023	1,146,965	172,747	526,898	23,953	29,671,699	31,542,262

Renata Limited and its subsidiaries

Consolidated Statement of Changes in Equity for the period from 01 July to 30 September 2023

			Attributable to equity holders of Renata Limited			Non-	Taka in 000's
Particulars	Share	Revaluation	Other	Fair value	Retained	Equity for	controlling	Total equity
capital	surplus	reserves	reserve	earnings	Renata Limited	interests
	Taka	Taka	Taka	Taka	Taka	Taka	Taka	Taka

Balance at 01 July 2022		1,071,930	152,868	219,338	26,568	27,941,463	29,412,167	-	29,412,167
Adjustment of deferred tax liability due to extra	-	36	-	-	-	36	-	36
depreciation charged to revaluation reserve
Depreciation adjustment on revalued assets	-	(159)	-	-	159	-	-	-
Net profit after tax for the period		-	-	-	-	1,245,183	1,245,183	-	1,245,183
Fair value adjustment on investment in shares, net	-	-	-	(2,631)	-	(2,631)	-	(2,631)
of tax
Balance at 30 September 2022		1,071,930	152,746	219,338	23,938	29,186,804	30,654,756	-	30,654,756
Balance at 01 July 2023		1,146,965	172,747	526,898	23,935	28,738,194	30,608,738	-	30,608,738
Stock dividend issued		-	-	-	-	-	-	-	-
Cash dividend paid		-	-	-	-	-	-	-	-
Adjustment of deferred tax liability due to extra	-	-	-	-	-	-	-	-
depreciation charged to revaluation reserve
Depreciation adjustment on revalued assets	-	-	-	-	-	-	-	-
Net profit after tax for the period		-	-	-	-	1,019,721	1,019,721	-	1,019,721
Foreign operation translation		-	-	-	-	(6,351)	(6,351)	-	(6,351)
Fair value adjustment on investment in shares, net	-	-	-	19	-	19	-	19
of tax
Balance at 30 September 2023		1,146,965	172,747	526,898	23,953	29,751,564	31,622,127	-	31,622,127
Dr. Sarwar Ali	Syed S. Kaiser Kabir			Nehal Ahmed		Md. Jubayer Alam		Mustafa Alim Aolad
Chairman	CEO and Managing Director		Independent Director		Company Secretary		Chief Financial Officer

Page 7

Renata Limited

Notes to the interim condensed financial statements

For the period ended 30 September 2023

• Corporate information
  Renata Limited (the "Company") is a public limited company incorporated in Bangladesh in 1972 as Pfizer Laboratories (Bangladesh) Limited under the Companies Act, 1913 and subsequently duly registered under Companies Act, 1994. The Company was listed with Dhaka Stock Exchange Limited on 12 May 1979. Subsequently, the Company was renamed as Renata Limited in 1993.
  The registered office of the Company is situated at Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216.
  The main activities of the Company and its subsidiaries (the "Group") are manufacturing, marketing and distribution of pharmaceutical, animal health products, oncology-based products, agro-based products, poultry products and consumer products.
  For the purpose of conducting their business more efficiently and profitably, the Board of Directors of the three Companies along with due consents from minority shareholders and then approval from the Hon'ble High Court Division of the Supreme Court of Bangladesh has amalgamated Renata Agro Industries Limited and Purnava Limited with Renata Limited under provision of section 228 & 229 of the Companies Act,1994 with effect from 01 July 2021. The audited financial statements of the Transferor Companies on 30 June 2021 have been used to account for the assets and liabilities of these Transferor Companies in the books of Renata

• Basis of preparation
  These interim condensed financial statements are the separate and consolidated financial statements of Renata Limited and its subsidiaries have been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting , the Companies Act 1994, the Securities and Exchange Rules 2020, relevant guidelines issued by the Bangladesh Securities and Exchange Commission, Financial Reporting Act, 2015 and other applicable laws in Bangladesh and should be read in conjunction with the financial statements of Renata Limited as at and for the year ended 30 June 2023, the year for which the last full financial statements were prepared.
  These financial statements have been prepared on going concern basis. Unless otherwise specifically mentioned, historical cost principle has been followed for the purpose of these financial statements. The amounts in these financial statements have been rounded off to the nearest Taka in thousand (Taka'000) except otherwise indicated. As a result of these rounding off, in some instances the totals may not match the sum of individual balances.
  Authorisation for issue
  These interim condensed financial statements were authorised for issue by the Board of Directors of the Company on 21 October 2023.

• Significant accounting policies
  The same accounting policies and methods of computation have been followed in these interim condensed financial statements as were applied in the preparation of the financial statements of Renata Limited and its subsidiaries as at and for the year ended 30 June 2023.

		30 September 2023	30 June 2023
4	Standalone and consolidated property, plant and equipment (WDV)	Taka in 000's	Taka in 000's
	Fixed assets at cost/ revaluation at beginning of the period	31,034,633	34,069,579
	Additions during the period	941,467	5,764,515
	Disposal/ adjustment during the period	(25,001)	(77,776)
	Closing accumulated depreciation	(311,048)	(8,721,685)
	Closing balance	31,640,050	31,034,633

• Standalone and consolidated intangible assets

	Opening balance	147,529	350,467
	Additions during the period	400	5,130
	Closing accumulated amortisation	(5,534)	(208,068)
	Closing balance	142,395	147,529
6	Investment in subsidiaries
	Renata (UK) Limited	95,000	95,000
	Renata Pharmaceuticals (Ireland) Limited	95,010	95,010
	Closing balance	190,010	190,010

• Standalone and consolidated inventories

	Finished goods	2,093,705	2,278,846
	Work-in-process	629,515	860,369
	Raw and packing materials	4,531,442	4,215,133
	Raw materials- agro-based products	134,442	16,096
	Cosumable stores, spares and reagent	1,017,601	966,993
	Stock in transit	1,969,297	1,374,619
	Less: Provision for obsolete inventories	(183,745)	(163,647)
	Closing balance	10,192,256	9,548,408
8	Advances, deposits and prepayments
	Loans and advances	709,162	885,148
	Security and other deposits	216,364	154,918
	Prepayments	242,230	8,034
	Closing balance	1,167,756	1,048,100
8(a)	Consolidated advances, deposits and prepayments
	Renata Limited	1,167,756	885,148
	Renata (UK) Limited	-	155,092
	Renata Pharmaceuticals (Ireland) Limited	6,350	8,034
	Closing balance	1,174,106	1,048,274

Page 8

• Standalone and consolidated investment in shares and FDR Investment in shares
  Investment in FDR
  Closing balance

10 Cash and cash equivalents Cash in hand

Cash at bank

Closing balance

10(a) Consolidated cash and cash equivalents Renata Limited

Renata (UK) Limited

Renata Pharmaceuticals (Ireland) Limited

Closing balance

1. Share capital Authorized share capital
   285,000,000 ordinary shares of Tk.10 each
   Issued, subscribed and paid up capital
   In issue at 01 July
   Ordinary shares of Tk.10 each issued as bonus share
   Closing balance
2. Standalone and consolidated deferred tax liabilities Opening balance
   Addition during the period
   Closing balance
3. Standalone and consolidated loans and borrowings
   Long term loan Short term bank loan Overdrafts
   Closing balance
4. Turnover Pharmaceuticals Animal health Agro-basedproducts Consumer products
   VAT
   Total

14(a) Consolidated turnover-NetRenata Limited

Renata (UK) Limited

Renata Pharmaceuticals (Ireland) Limited

Total

30 September 2023

Non-current Current

4,176,6112,078,451

• 6,552,691
• 619,234

4,176,6119,250,377

88,008	84,136
481,645	471,707
569,653	555,844
50	1,075
1,062,668	1,835,671
1,062,718	1,836,746
1,062,718	1,075
154,381
121,961	2,128,316
1,339,060	2,129,392
30 September 2023	30 June 2023
Taka in 000's	Taka in 000's
2,850,000	2,850,000
1,146,965	1,071,930
-	75,035
1,146,965	1,146,965
1,189,653	1,405,429
49,653	(215,776)
1,239,306	1,189,653

30 June 2023

Non-current Current

3,401,9141,741,452

• 8,974,187
• 163,174

3,401,91410,878,813

2023	2022
(July-September)	(July-September)
Taka in 000's	Taka in 000's
8,865,897	7,876,612
1,744,169	1,494,284
17,766	50,921
54,865	184,955
(1,261,153)	(1,236,126)
9,421,543	8,370,646
9,421,543	8,370,646
992	-
17,661	-
9,440,195	8,370,646

Page 9