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Balance Sheet Analysis of Renata Limited (Part 2)
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Abu Zafour
NAME : Abu Zafour Fathers Name : M. Fazlur Rahman Mothers Name : Mrs. Kohinur Begum Date of Birth : 1st January, 1988 Nationality : Bangladeshi by birth Birth Place : Bauphal, Patuakhali Marital Status : Single Religion : Islam (Sunni) Weight : 60 Kg. Height : 5’ 4” Health : Fit  
By Abu Zafour
Published on 29 February 2012
 
Balance Sheet Analysis of Renata Limited. Analysis of Property, Assets, Liabilities and Shareholders equity of Renata Limited.

Balance Sheet Analysis of Renata Limited
Company Chronology

Renata Limited has created a new vista in manufacturing Pharmaceutical, Animal Health Medicine, Nutritional and Vaccines. Its year of Incorporation is 19972: as Pfizer laboratories (Bangladesh) Limited, subsidiary of Pfizer corporations, USA. In 1993 it renamed as “Renata Limited” after divestment of shareholders by Pfizer corporations, USA. Renata’s 10 products have been licensed to M/s Deurali-Janta pharmaceutical Ptv. Ltd., Nepal for manufacture, marketing and distribution in Nepal. Renata Limited is giving technical assistances for upgrading their manufacturing plant to WHO GMP standards.

Renata Limited is dedicated to serving its valued customers with products of excellent quality through continuous improvement in process and technology; complain with the guidelines of good manufacturing process (GMP) and the requirements of ISO 9110:1999 quality management system. Its top management is committed to ensure that quality policy is adopted and practice in all phases of company activities and urge all concerned to perform their duties by following the principles.

A sound system of internal and financial control has been established by Renata Limited, which involves periodical reporting, continuous audit of different segments of the business and budgetary control to ensure optimum utilization of the company’s resources. Renata Limited is a highly professionally managed organization. A team of skilled professionals has been dedicating their efforts in order to achieve the corporate objectives. 

Financial Statement Analysis

Financial Statement analysis is the art of transforming the data from financial statements into information that is useful for informed decision making. The analysis is used to determine the firm’s financial position so as to identify its current strength and weakness. To take the rational decisions in keeping with the objective of the firm, the financial statement is too much significant for the managements. Financial statement analysis is not only important for the firm’s managements, but also for the firm’s investors and creditors internally, financial managers use the information provides by financial analysis to help make financing and investing decisions to maximize the firm’s value. Externally, stockholders and creditors use financial statement analysis to evaluate the attractiveness of the firm as an investment by examining its ability to meet its current and expected future financial obligations. Financial analysis involves the use of various financial statements. These statements do the several things which are as follows-

Balance Sheet
Balance sheet is that statement which represents the summary of a firm’s financial position on a given data that shows the total assets, liabilities and owners’ equity or stockholders’ equity of a financial year.
 
Income Statement
Income Statement is that statement which represents the summary of a firm’s revenues and expenses over a specified period for the purpose of determining the net income or loss for the period. For determining the net income or loss Renata Limited represents revenues and expenses to their income statement for the period.

Cash flow statement
The statement of cash flows reports the cash receipts, cash payments, and net change in cash resulting from operating, investing, and financing activities during the year. For determining the total cash inflow and outflow of a financial year, Renata Limited prepares the cash flow statement.

Stockholders’ Equity
This statement represents the company’s total common stock plus additional paid-in capital and retained earnings.  It also shows the changes in equity during the period. To identify these things Renata Limited prepares the Stockholders’ Equity.


Balance Sheet

Property& Assets

The Company has the following Property & Assets: Property, plant and equipment, capital work-in-progress, investment in subsidiaries, other investment, trade and other receivables, advances, deposits and prepayments, cash and cash equivalents, and other assets.  
 
Total Assets
31 December 2005, 31 December 2006
      Particulars                                           2005(TK)                     2006(TK)
 
     Total Assets                                   1,274,556,982               1,776,512,741

Through this table, we see that the Total Assets TK 501,955,759 (39.38%)   in 2006 is grater than then the previous year (2005).
 
Liability and capital
Liabilities:  The liabilities of Renata limited are as follows-
Deferred liability-staff gratuity, deferred tax liability, bank overdraft, creditors for goods, accrued expenses, other payables, unclaimed dividend, and provision for taxation, and other liabilities. 

Total Liabilities
31 December 2005, 31 December 2006
 
 Particulars                                                2005(TK)                     2006(TK)
 
 Total Liabilities                                        500,439,779                794,199,946
 
Through this table, we see that the total liabilities TK 293,760,167 (58.70%) in 2006 is less than then the previous year (2005).
 
Shareholders equity
The sources of shareholders equity are as follows:
Share capital, revaluation surplus, tax holiday reserve, proposed stock dividend, proposed cash dividend, and retained earnings.
 
Shareholders equity
    31 December 2005, 31 December 2006

            Particulars                                2005(TK)                    2006(TK)                   
    
           Shareholders equity (capital)              774,117,203                982,312,795
 
Through this table we see that total shareholders equity is TK 208,195,592 (26.89%) in 2006 is greater than the previous year (2005).
 
Liabilities & Shareholders equity
    31 December 2005, 31 December 2006
 
 Particulars                                           2005(TK)                     2006(TK)
 
 Liabilities & Shareholders equity   1,274,556,982              1,776,512,741
 
Through the above table we see that the total liabilities and shareholders equity is TK 501,955,759 (39.38%) in 2006 is greater than the previous year (2005).