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Income Statement and Stockholder Equity Analysis of Renata Limited (Part 3)
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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
 
Income Statement and Stockholder Equity Analysis of Renata Limited. Interest Income, Operating expense, Profit after tax, Earning per share and Statement of Changes in Equity of Renata Limited.

Income Statement and Stockholder Equity Analysis of Renata Limited
Income Statement

Interest Income
 
Renata Limited is a manufacturing company. The company produces different type of products and sales the products. Their revenue comes from the following different sources. The sources are divided into mainly two parts:

1. Non-tax holiday (unit 1, 2, 3)
2. Tax holiday (unit 4).
 
In non-tax holiday unit they produce and sale the different products which are- Pharmaceutical products, Animal health products, Animal nutritional products and ORS. In tax holiday unit they produce the potent product facility.
 
Net income
31 December 2005, 31 December 2006

    Particulars                                                2005(TK)                     2006(TK)
      Total revenue                                    1,625,773,193              1,962,528,378  
      Total expenses                                (1,433,204,932)           (1,720,396,741)      
       Net income                                          192,568,261                 242,131,637

Through this table, we see that the net interest income TK 49,563,376 (25.78 %) in 2006 is grater than then the previous year (2005).
 
Operating expense
Renata Limited has done expenses in different sources. The sources are as follows:
 
Cost of goods sold, administrative, selling and distribution expenses,  Salary and allowances, managing director’s salary & allowances, rent, rates and taxes, insurances, electricity, legal expenses, postage, stamp, telecommunication, audit fees, printing , stationery & advertisement ,  repairs, maintenances & depreciations, and other expenses.  
 
Expense for tax purpose
The sources of taxes are provision for tax, current tax & deferred tax:

Profit after tax
31 December 2005, 31 December 2006
 
        Particulars                                              2005(TK)                     2006(TK)
        Profit before tax                                    279,387,690                 347,221,767          
        Tax                                                       (86,819,429)               (105,090,130)
         Profit after tax                                   192,568,261                  242,131,637
 
Appropriations

The sources of Appropriation are- tax holiday reserve, proposed stock dividend, proposed cash dividend and retain earnings.
Through this table, we see that the Profit before tax TK 49,563,376 (25.78%) in 2006 is grater than then the previous year (2005).
 
      Particulars                                                2005(TK)                     2006(TK)
     Earning per share (TK.)                           239.71 (’05)                 301.41(’06)

Through this table, we see that the earning per share TK 61.7 (25.74%) in 2006 is greater than then the previous year (2005).
 
Statement of Changes in Equity
 
Owner’s equity summarizes the changes in owner’s equity for a specific period of time. It discloses the sources of the changes in the various permanent shareholders’ equity accounts that occurred during the period. The statement of shareholders’ equity only shows the net effects on retained earnings.
 
In following table shows the changes of owner’s equity of Orion Infusion Ltd. for the year ended 31 December 2005 and 31 December 2006.
 
Total Stockholder Equity
31 December 2005     31 December 2006
774,117,203                      982,312,795
 
In 2006 the shareholders’ equity is increased by TK 208,195,592 (26.89%) than the previous year.

So we understood that the change in equity is increased TK 1.2689 in 2006 instead of TK 1 in 2005.