Annual Report 2009

Aspire Lead Grow

Directors’ Report

TO THE MEMBERS

The Directors of the Company are pleased to present their Report together with the Audited Accounts of the Company for the year ended December 31, 2009.

DIRECTORS

The Directors retiring by rotation under Articles 109, 115 and 116 of the Articles of Association of the Company are Mr. S. H. Kabir and Dr. Sarwar Ali who, being eligible, offer themselves for re-election.

BUSINESS ACTIVITIES

Turnover during 2009 was Taka 3,900.7 million registering a growth of 26.2% over last year’s turnover of Taka 3,089.7 million. Profit after tax was Taka 603.5 million – a growth of 39.3%. Earnings per Share (EPS) stood at Taka 417.38 against Taka 299.55 of 2008.

CONTRIBUTION TO NATIONAL EXCHEQUER AUDITORS

During the year under review your Company paid Taka. 862.10 million to the National Exchequer in the form of Corporate Income Tax, Import Duties and Value Added Tax (VAT).

DIVIDEND

Renata continues to have a very aggressive investment strategy. During 2009 investments made for upgrading the General Facility at Mirpur, and the Cephalosporin and Penicillin Facilities at Rajendrapur amounted to Taka 642.57 million. The entire amount was financed through internal cash generation. Investments of this magnitude are to be expected every year for the foreseeable future. Hence the Directors deem it necessary to retain adequate funds for financing capital expenditures. The Board of Directors is pleased to recommend a cash dividend of Taka 60/per ordinary share of Taka 100 each. This dividend will entail a payment of Taka 86,759,040/-. The Board of Directors also recommend for declaration of Stock Dividend (Bonus Shares) in the ratio of one Bonus Share for every four shares held (4:1B) for which an amount of Taka 36,149,600/- will have to be transferred to Share Capital Account. The