Power Grid Company of Bangladesh Limited Report on the Audit of the Financial Statements Qualified Opinion We have audited the financial statements of Power Grid Company of Bangladesh Limited (the Company), which comprise the statement of financial position as at June 30, 2019, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion section of our report, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at June 30, 2019, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs). Basis for Qualified Opinion 1. In note # 2.1 to the financial statements, the Company has reported an amount of BDT 489,606,950 as addition to property, plant and equipment (PPE) resulting from increase in Bangladesh currency equivalent to the foreign currency loan liabilities, relating to acquisition of such PPE, due to change in exchange rates during the year ended on 30 June 2019. Again, the Company capitalized BDT 1,968,449,324 as an addition to capital work in progress for the ongoing projects resulting from the increase in Bangladesh currency equivalent to the foreign currency loan liabilities, relating to the acquisition of such capital work in progress, due to change in exchange rates during the year ended on 30 June 2019. As per Para-28 of IAS-21: Effects of Changes in Foreign Exchange Rate, the said amount should be recognized as a loss in the Statement of Profit or Loss and Other Comprehensive Income. The Company describes the reason for such capitalization in note # 2.1. 2. As disclosed in Note#4 to the financial statements, the carrying amount of PPE was reported at BDT 144,494,665,501. No fixed assets register with the required information was available. Some items of PPE have been received by the Company from Bangladesh Power Development Board (BPDB, previously PDB) and Dhaka Power Development Company (DPDC, previously DESA) without conducting physical verification and valuation thereof. It is also noted that no physical verification of PPE was conducted either at the year-end or any time during the year under audit. As such we are unable to confirm the authenticity of the physical existence of PPE as of 30 June 2019. Out of the total assets of the Company, PPE is 58.76% which remained unverified as to its quantity. Moreover, the Company has never performed impairment test of its PPE which is also a non-compliance with IAS 36. 3. Note#5 to the financial statements includes inter-alia inventory in transit (under capital work in progress) amounting to BDT 2,063,539,050 out of which we have checked, on a sample basis, inventory in transit amounting to BDT 362,696,086 (18% of the total inventory in transit) and found that 3 lots having carrying value of BDT 234,620,563 in total were delivered to respective GMDs during the prior years. One lot for BDT 83,937,832 was delivered during the year 2013-2016, one lot for BDT 86,618,334 was delivered during the year 2015-2016 and one lotfor BDT 64,064,397 was delivered during the year 2017-2018. But the Company has not yet transferred such inventory in transit to inventory. The management could not provide us any documents related to inventory in transit amounting to BDT 118,580,523. As a result, we could not confirm the same. The remaining amountof BDT 9,495,000 was found to be in inventory in transit. PONER GRID COMPANY OF BANGLADESH LTD. 4. In note # 7 to the financial statements, the Company disclosed BDT 1,137,052,392 as inventories. Movement of inventories was not properly recorded, and mismatches were found between store ledger and accounts ledger balances at the cost centers we visited. During our visit to 5 GMDs, we observed that the physical store statement showed the inventory of BDT 365,739,960 as against BDT 350,555,591 as per the accounts ledger, the difference being BDT 15,184,369. As a result, the physical existence and value of the inventory could not be confirmed. We had no other practical alternative auditing procedure that we could apply to confirm the physical existence as well as the value thereof as on 30 June 2019. 5. As disclosed in note # 8 to the financial statements, the Company reported an amount of BDT 5,542,285,929 as receivables from transmission/wheeling and optical fiber charges. It includes receivables from DPDC, DESCO, BPDB, RPC, PBS, WZPDCL, M/S Abul Khair Steel Product and BWDB GK Project (Bheramara, Kushtia) amounting to BDT 1,112,318,607, BDT 319,992,566, BDT 1,910,533,381, BDT 5,439,000, BDT 1,819,975,742, BDT 194,670,991, BDT 6,433,733 and BDT 1,560,621 respectively. The amount of BDT 5,439,000, receivable from RPC is being carried forward since FY 2004-05, though 100% provision had been made against the same. Other amounts as stated above are increasing year by year till to date. It includes disputed amounts with DPDC, DESCO, BPDB, RPC, PBS, WZPDCL, M/S Abul Khair Steel Product and BWDB GK Project (Bheramara, Kushtia) amounting to BDT 611,824,767, BDT 3,106,231, BDT 1,192,078,169, BDT 5,439,000, BDT 107,357,277, BDT 65,797, BDT 6,433,733 and BDT 1,560,621 respectively. In our opinion, the Company is very unlikely to recover the amounts in full. If adequate provisions were made for the above, the earnings per share (EPS) and net asset value (NAV) for the year 2018-19 would have been adversely affected to that extent. 6. The Company has accumulated a balance of provision against gratuity amounting to BDT 3,114,689,871 of which BDT 322,980,496 is for the current year. The Company carries an unfunded gratuity scheme for its employees and provision is made as per the Company's gratuity policy for which no actuarial valuation was done though required under IAS 19: Employee Benefits. We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Bangladesh, and we have fulfilled our other ethical responsibilities in accordance with these ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matters described in the Basis for Qualified Opinion section we have determined the matters descrived below to the key audit matters to be communicated in our report. POWER GRID COMPANY OF BANGLADESH LTD. The revenue during the year represents revenue Our audit procedures to address the risks of mainly arising from transmission/wheeling material misstatement relating to revenue, charge and optical fiber charges. We have which was considered to be significant audit risk, identified the head 'revenue' as a key audit included- matter because revenue is one of the key * Assessment of the design and testing of the performance indicators of the Company and therefore there is an inherent risk of operating effectiveness of management's manipulation of the timing of recognition of control over revenue systems across the revenue by management to meet specific Company. targets or expectations. There is also a risk that * Checking of the process that revenue has been revenue may be overstated through recognized at the correct time by testing a misstatement of the measurement units. Further, sample of transactions against which the there is a risk that the provisions of IFRS 15 (New revenue has been recognized. revenue accounting standard) may not be properly complied with. The application of the Ascertaining the revenue recognition process new revenue accounting standard involves and testing the same through recalculation of certain key judgments relating to the revenue, and evaluation of recognition, identification of distinct performance measurement, presentation and disclosures in obligations, determination of transaction price the financial statements in accordance with the of the identified performance obligation, the related IFRS 15. appropriateness of the basis used to measure Revenues are included in Note # 23 to the revenue recognized over a period. financial statements. The Company maintains interest-bearing loans We obtained the debt schedule to prove and grants which are recorded at the amount of mathematical accuracy, determine that significant proceeds received, net of transaction costs. reconciling items are proper by examining source Borrowing costs are charged to the statement of documents and determined if classification of profit or loss and other comprehensive income debt between current and non-current is as an expense in the period in which they are appropriate. We examined documentation such incurred. The company is entitled to repay the as directors'/finance committee's minutes and principal balance as well as any accrued interests correspondence for evidence of new borrowing and obtained debt agreements to review for key or significant items such as principal, interest, maturity date, collateral, scheduled payment dates and debt covenants. We also analytically reviewed interest expense to develop an expectation of interest expense based on the average principal amounts outstanding during the period and contractual or average interest rates, compare expected amounts to recorded amounts and determine whether results identify areas where additional procedures are required. We also determined whether violations of covenants or provisions of debt agreements exist by performing the entity's covenant calculations and compliance certificate submitted to lender and examining confirmation replies for evidence of known matters of noncompliance. See note 14 to the financial statements. POWER GRID COMPANY OF BANGLADESH LTD. Company reported net deferred tax liability We obtained an understanding, evaluated the design and totaling BDT 6,524 million as at 30 June 2019. tested the operational effectiveness of the Company's key . . controls over the recognition and measurement of Significant judgment is required in relation to deferred tax liabiity nthe assumpisused in deferred tax liability and the assumptions used in deferred tax liabilities as their recoverability is estimating the Company's future taxable expense.We also dependent on forecasts of future profitability assessed the completeness and accuracy of the data used over a number of years. for the estimations of future taxable expense.We involved tax specialists to assess key assumptions, controls, recognition and measurement of deferred tax liabilities. We also assessed the appropriateness of presentation of disclosures against IAS 12: Income Tax. See note 17 to the financial statements. The company has several legal proceedings, We obtained an understanding, evaluated the design and claims and government investigations and tested the operational effectiveness of the company's key inquiries pending that expose it to significant controls over the legal provision and contingencies litigation and similar risks arising from disputes process.We enquired to those charged with governance and regulatory proceedings. Such matters are to obtain their view on the status of all significant subject to many uncertainties and the outcome litigation and regulatory matters. may be difficult to predict. We enquired of the company's internal legal counsel for These uncertainties inherently affect the all significant litigation and regulatory matters and amount and timing of potential outflows with inspected internal notes and reports. We also received respect to the provisions which have been formal confirmations from external counsel. We established and other contingent liabilities. assessed the methodologies on which the provision Overall, the legal provision represents the amounts are based, recalculated the provisions, and company's best estimate for existing legal tested the completeness and accuracy of the underlying matters that have a probable and estimable information. impact on the company's financial position. We also assessed the company's provisions and contingent liabilities disclosure. Our audit procedures have a focus on We tested the design implementation, and operating information technology systems and controls effectiveness of the Company's access controls over the due to the pervasive nature and complexity of information systems that are critical to financial reporting. the IT environment, the volume of transactions We tested IT general controls (Logical access, Changes proceeded in numerous locations daily and the management & aspects of IT operational controls). These reliance on automated and IT department included testing that requests for access to systems were manual controls. appropriately reviewed and authorized. Our areas of audit focus included user access We tasted the company's periodic review of access rights. management, developer access to the We inspected requests of changes to systems for production environment and changes to the IT appropriate approval and authorization. We considered environment. These are key to ensuring IT the control environment relating to various interfaces, department and application based controls are configuration and other application layer controls operating effectively. identified as key to our audit. Where deficiencies were identified, we tested compensating controls or performed alternate procedures. In addition we understood where relevant changes were made to the IT landscape during the audit period and tested those changes that had significant impact on financial reporting. POWER GRID COMPANY OF BANGLADESH LTD,1 Otherh inora on Management is responsible for the other information. The other information comprises all of the information in the Annual Report but does not include the financial statements and our auditors report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we concluded that thereis a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard at this stage, since no components (except for the financial statements and our audit report thereon) of the Annual Report of the Company have yet been prepared by the Management .However, when we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance. Other Matters 1. The financial statements of the Company as at and for the year ended 30 June 2018 were audited by other auditors who expressed a modified opinion on those statements on 01 November 2018. 2. The Company has not disclosed net asset value per share, net operating cash flow per share and reconciliation of net income or net profit with cash flow from operating activities making an adjustment for non-cash items, for non-operating items and the net changes in operating accruals. It is a non-compliance of para-5 of notification no. BSEC/CMRRCD/2006/-158/208/ Admin/81 dated 20 June 2018. Responsibilities of Managem i and Those Charged with Govenance fer the Financia Statements and Interna Contro Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs as explained in note no. 2, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The Companies Act, 1994 require the Management to ensure effective internal audit, internal control and risk management functions of the Company. In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 114 OEiR GRDCOMPANYOt 201F2 BNAE 51 "r 11L m NuIRTD M: * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. * Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Ropoitf on ot. Ieja In Watory R u r1lnts In accordance with the Companies Act 1994 and the Securities and Exchange Rules 1987, we also report the following: a)we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and made due verification thereof; b)in our opinion, proper books of accounts as required by law have been kept by the Company so far as it appeared from our examination of these books; c)the statements of financial position and statement of comprehensive income dealt with by the report are in agreement with the books of accounts and returns; and d)the expenditure incurred was for the purposes of the Company's business. ACNABIN Howladar Yunus & Co. Chartered accountants Chartered accountants Dated, Dhaka 06 November 2019 POWER GRID COMPANY OF BANGLADESH LTD. As at 30 June 2019 ;D. 01 30.06.2018 Assets Notes j ) (BDT) Non-current assets Property, plant and equipment 04 144,494,665,501 115,120,606,842 Capital works-in-progress 05 68,590,309,163 63,269,033,237 Total non-current assets 213,0 08,.89,640,0_9 Current assets Investment in FDR 06 10.000 000 110,000,000 Inventories 07 1.13 7.05_292 1,011,360,681 Accounts and other receivables 08 5,5 42, 285.929 3,240,307,900 Advances, deposits and prepayments 09 1-1. 188602.127 9,901,480,568 Cash and cash equivalents 10 11,938,407,665 7,481,236,802 Total current assets .,816,348,11 __1,4,_8,9_51 Total assets 245,901,322,777 200,13 4, 026,030 Equity and liabilities Equity Share capital 11 4,609,129,910 4 600.129.91.0 Deposit for shares 12 50,710,701,193 37. 348.,94 3,386 Retained earnings 13 10,940,901,160 7,075,722.-19CJ2 Total equity 66,260,732,263 49,833,796,288 Non-current liabilities Term loan-interest bearing 14 156.740.746.757 129,395,518,629 Grant from SIDA & KFW 15 1,397,138.163 1.048,053.605 Deferred liability-gratuity 16 3,000,998,610 2,791,709,375 Deferred tax liabilities 17 6,524,327,821 6,240,241.5A2 Total non-current liabilities 167,663,211,351 139,475,523,151 Current liabilities - Term loan-interest bearing 18 777,574,800 840.005. 104 Interest payable 19 331,989,607 410.713,009 Liabilities for expenses 20 1,053,892,851 2.00.7195 Liabilities for other finance 21 9,337,938,750 7.178,242,571 Provision for taxation 22 475,983,155 365.031 982 Total current liabilities 11,977,379,163 10,824,706,S91 Total liabilities 179,640,590,514 150,300,229,742 Total equity and liabilities 245,901,322,777 200,134,026,030 The accounting policies and explanatory notes (1 to 37) form an integral part of these Financial Statements. For and on behalf of Board of Directors of Power Grid Company of Bangladesh Ltd. Company Secretary Managing Director Director See annexed report of the date Chartered Accountants Howladar Yunus & Co. Dhaka, Bangladesh, Dated, 06 November 2019 Chartered Accountants POWER GRID COMPANY OF BANGLADESH LTD. Statement of Profit or Loss and Other Cornprehensive Incorne For the year ended 30 June 2019 Notes Revenue 23 17,782,781,714 15.50 .05 ' -1% Transmission expenses 24 (10,041,743,816) i17".37.U578 Gross profit 7,741,037,898 6,416,701,'.20 Administrative expenses 25 (753,879,913) 709, 60.702, Profit from operating activities 6,987,157,985 .1 ,y7 I II,1 Finance income 26 332,112,266 17157.620 Other income 27 376,968,178 197,432,549 Finance expenses 28 (3,249,457,807) (3,282,789,446) Profit before contribution to WPPF 4,446,780,622 2,796,141,941 Contribution to WPPF (211,751,458) (133,149,616) Profit before income tax 4,235,029,164 2,662,992,325 Income tax expense 29 (395,037,452) 10.' 72S.0 0, Current tax (110,951,173) (95,769,898) Deferred tax (284,086,279) 1 (386,958,132)1 Profit after tax 3,839,991,712 2,180.,264,29r Other comprehensive income Total comprehensive income 3,839,991,712 2,180,264,295 Earnings per share (EPS)- basic 30 8.33 4.73 The accounting policies and explanatory notes (1 to 37) form an integral part of these Financial Statements For and on behalf of Board of Directors of Power Grid Company of Bangladesh Ltd. Company Secretary Managing Director Director See annexed report of the date ACNABIN Howladar Yunus & Co. Chartered Accountants Chartered Accountants Dhaka, Bangladesh, Dated, 06 November 2019 POWER GRID COMPANY OF BANGLADESH LTD, Statement of Changes in Equity For the year ended 30 June 2019 Acre c it l 11eposii o0 shlalps Reiiineli eannitp Total Year ended 30 June 2018 HYIT (1U) BDT Balance at 01 July 2017 4,609,129,910 30,394,658,990 6,380,288,420 41,384,077,320 Prior years' adjustment for: Understated expenses Overstated expenses - 6,541,294 6,541,294 Overstated income - - (2,030) (2,030) Re-stated balance at 01 July 2017 4,609,129,910 30,394,658,990 6,386,827,684 41.39c.616.5S Net investment received during the year - 6.9i4 - 2, '!'4. 48.8 1- Total comprehensive income for the year 2,180,264,295 2.10,24.95 Final dividend of 2016-17 (15% cash) - - (691,369,487) '891, 369.-27) Balance as on 30 June 2018 4,609,129,910 37,348,943,886 7,875,722,492 19,833,796,/88 Year ended 30 June 2019 Balance as on 1 July 2018 4,609,129,910 37,348,943,886 7,875,722,492 49,833,796,288 Prior years' adjustment for: Overstated expenses - 10,465,809 10,465,809 Understated expenses - - (1,726,769) (1,726,769) Re-stated balance at 01 July 2018 4,609,129,910 37,348,943,886 7,884,461,532 49,842,535,328 Net investment received during the year - 13,361.J'7.i.:.0 - 13,361,757 300 Total comprehensive income for the year - 3,839,991,712 3.839.991.712 Final dividend of 2017-18 (17% cash) - - (783,552,085) (783,552.085) Balance as on 30 June 2019 4,609,129,910 50,710,701,194 10,940,901,160 66,260,732,264 For and on behalf of Board of Directors of Power Grid Company of Bangladesh Ltd. Company Secretary Managing Director Director Dhaka, Bangladesh, Dated, 06 November 2019 POWER GRID COMPANY OF BANGLADESH LTD Statement of Cash Flows For the year ended 30 June 2019 A. Cash flows from operating activities Cash receipts from customers 15,470,836,462 15,068,404,130 Cash paid to suppliers, contractors and employees' etc. (7,849,754,280) (1.7558,000 Cash generated from operating activities 7,621,082,182 1 3,292. 54,050 Interest paid (893,060,954) 1612, 152 221 Net cash from operating activities (note 31.1) 6,728,021,228 12, 79,893, 728 B. Cash flows from investing activities Interest received 332,378,933 202.920,106 Cash receipts from sale of transmission line and scraps 386,668,733 20 7.1-:2,5-9 Addition to property, plant and equipment and capital works-in-progress (38,985,495,652) (43,465,058,067) Investment in fixed deposit 100,000,000 1,210,000,000 Net cash used in investing activities (38,166,447,986) (41,844,705,412) C. Cash flows from financing activities Share capital and deposit for shares (Rearranged) 13,361,757,307 6.,960.824.1i0 Grant from SIDA (Rearranged) 349,084,558 871. 7.C.14 Long term loan 22,968,307,841 24.07 0.19-) 251 Dividend paid (783,552,085) 0F91.39487 Net cash from financing activities 35,895,597,621 31,211,393,867 D. Net increase in cash and cash equivalents (A+B+C) 4,457,170,863 2,046,582,182 E. Opening cash and cash equivalents 7,481,236802 1 ,434,654,620 F. Closing cash and cash equivalents (D+E) 11,938,407,665 7481.236,..02 Cash and cash equivalents comprise: Cash in hand 789,532 711,389 Balances with banks: Current deposit accounts 1,844,200,295 933 017.262 Short term deposit accounts 10,093,417,838 6, 547,508,151 11,937,618,133 7,480,525,413 11,938,407,665 7,481,236,802 For and on behalf of Board of Directors of Power Grid Company of Bangladesh Ltd. Company Secretary Managing Director Director Dhaka, Bangladesh, Dated, 06 November 2019 POWER GRID COMPANY OF BANGLADESH LTD. Notes to the finandia statements For the year ended 30 June 2019 1. Reporting entity 1.1 Companypof a Power Grid Company of Bangladesh Ltd. (hereinafter referred to as "PGCB"/ "the Company") is a listed public limited company in Bangladesh. The Company was incorporated on 21 November 1996 having registration no. C-31820 (941)/96 under the Companies Act, 1994 as a fully Bangladesh Power Development Board (BPDB) owned private company limited by shares with an authorized capital of Taka 10 billion under the Power Sector Reform Program of the Government of Bangladesh and it was subsequently converted to a public limited company on 05 March 2000. PGCB is a subsidiary company of Bangladesh Power Development Board (BPDB). The Company was listed in October 2006 at the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE). Offloading of shares started in October 2006. The Shares of the company have been trading in both Stock Exchanges since then. Nature and scope of business The Company's principal activities are planning, promoting, developing, operating and maintaining an integrated and efficient power transmission system/network throughout Bangladesh. As the sole power transmission Company in Bangladesh, the Company is responsible for all aspects, regarding transmission lines, sub-stations, load dispatch centers, communication facilities, etc. The scope of work of the Company also includes co-ordination of integrated operations of regional, national and international grid systems. It also provides consultancy services in power systems and execution turnkey jobs for other organizations. The company is the sole electric power transmission organization in Bangladesh. It is a government-owned company that solely operates the power grid & transmission of electricity in Bangladesh. L 3 LRegistered office The registered office of the Company is located at Red Crescent Concord Tower, 17 Mohakhali C/A, 6th Floor, Dhaka 1212, Bangladesh. 1.4 Corporate head office Corporate head office of the Company is located at PGCB Bhaban, Avenue - 3, Jahurul Islam City, Aftabnagar, Badda, Dhaka-1212, Bangladesh. 2. Basi of preparation of financia statements 2.1 Statement of compliance Except as detailed below, the financial statements have, been prepared in accordance with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), the Companies Act, 1994, Bangladesh Security Exchange Commission (BSEC) Acts & Rules and other applicable laws and regulations. Foreign currency exchange difference of BDT 489,606,950 arising from foreign currency denominated loans and borrowings taken by the Company for acquisition of property, plant and equipment has been added with the carrying amount of capital works-in-progress and property, plant and equipment as required under the provision of Section 185, read with, Part-1, Schedule XI of the Companies Act, 1994 since the loans were used in the projects that were accounted for in capital works in progress. While IAS 21 does not allow capitalization of foreign exchange difference, the company recognized the foreign exchange loss/(gain) as part of its property, plant, and equipment as allowed under the Companies Act, 1994. The Company carries an unfunded gratuity scheme for its employees and provision is made as per the Company's gratuity policy for which no actuarial valuation has been done though required under IAS 19: Employee Benefits. POWER GRID COMPANY OF BANGLADESH LTD Notes to the financda statements For the year ended 30 June 2019 The Company is also required to comply with the following major laws and regulations in addition to the Companies Act 1994: The Securities & Exchange Ordinance, 1969 The Securities & Exchange Rules, 1987 The Income Tax Ordinance, 1984 The Income Tax Rules, 1984 The Value Added Tax Act, 1991 The Value Added Tax Rules, 1991 The Customs Act, 1969 The Labor Act, 2006 L2 P~T, " - of h -aca1 satet The presentation of these financial statements is in accordance with the guidelines provided by IAS 1: Presentation of Financial Statements. a. Statement of Financial Position; b. Statement of Profit or Loss & Other Comprehensive Income; c. Statement of Changes in Equity; d. Statement of Cash Flows; and e. Notes comprising a summary of significant accounting policies and other explanatory information to the financial statements. 2.3 Basis of measurement Measurement is the process of determining the monetary amounts at which the elements of the financial statements are to be recognized and carried in the statement of financial position and profit or loss and other comprehensive income. The measurement basis adopted by the company is historical cost except for the inventories which are stated at the lower of cost and net realizable value. Under the historical cost, assets are recorded at the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the time of their acquisition. Liabilities are recorded at the number of proceeds received in exchange for the obligation, or some circumstances (for example, income taxes), at the amounts of cash or cash equivalents expected to be paid to satisfy the liability in the normal course of business. 2.4 Functiona and presentation currency These financial statements are presented in Bangladesh Taka (BDT) which is both functional and presentational currency. 2.5 Level of precision The figures of financial statements presented in BDT which have been rounded off to the nearest integer. P~ -s oesiaeand )--d9m:nts The preparation of financial statements requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and the associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the result of which forms the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates is recognised in the period in which the estimates are revised and in any future periods affected. Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates is recognized in the period in which the estimates are revised and in any future periods affected. POWER GRID COMPANY OF BANGLADESH LTD. Notes to the financia statements For the year ended 30 June 2019 To be precise, information about significant areas of estimation uncertainty and critical judgment in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is included in the following notes: Note Ref. Depreciation and amortisation 4 Deferred liability for gratuity 16 Deferred tax liabilities 17 Foreign currency denominated loans and borrowings 14-15 and 18-19 3 oinI concern The Company has adequate resources to continue in operation for the foreseeable future. For this reason, the directors continue to adopt a going concern basis in preparing the financial statements. The current resources of the Company provide sufficient funds to meet the present requirements of the existing business. 18 Accrua basis of a nting The Company prepares its financial statements, except for cash flow information, using the accrual basis of accounting. When the accrual basis of accounting is used, an entity recognizes items as assets, liabilities, equity, income, and expenses (the elements of financial statements) when they satisfy the definitions and recognition criteria for those elements in the Framework. 2.9 Materia ity and aggregat on The Company presents separately each material class of similar items and items of a dissimilar nature or function unless they are immaterial. Financial statements result from processing large numbers of transactions or other events that are aggregated into classes according to their nature or function. 210 fftting The Company does not offset assets and liabilities or income and expenses unless required or permitted by an IFRS. 2.11 App Icable accounting standards The following IASs and IFRSs are applicable for the financial statements for the year under review: IAS - 1 Presentation of Financial Statements IAS - 2 Inventories IAS - 7 Statements of Cash Flows IAS - 8 Accounting Policies, Changes in Accounting Estimates and Errors IAS - 10 Events after the Reporting Period IAS - 12 Income Taxes IAS - 16 Property, Plant and Equipment IAS - 19 Employee Benefits IAS - 20 Accounting for Government Grants and Disclosure of Government Assistance IAS - 21 The Effects of Changes in Foreign Exchange Rates IAS - 23 Borrowing Costs IAS - 24 Related Party Disclosures IAS - 32 Financial Instruments: Presentation IAS - 33 Earnings per Share IAS - 34 Interim Financial Reporting IAS - 36 Impairment of Assets IAS - 37 Provisions, Contingent Liabilities and Contingent Assets IAS - 39 Financial Instruments: Recognition and Measurement IFRS - 7 Financial Instruments Disclosures IFRS - 13 Fair Value Measurement IFRS - 15 Revenue from Contracts with Customers 122 l Ami RFepNoLr,H 2TFF MofR POWhER GRID COMPANY OF BANGLADESH LTD. Notes to the financial statements For the year ended 30 June 2019 21 2 uR.' period The financial statements of the Company cover one year from 01 July 2018 to 30 June 2019 and followed consistently. 3. Signficant accounting pocies The accounting policies set out below have been applied consistently to all periods presented in these financial statements. International Accounting Standards 21: The Effect of Changes in Foreign Exchange Rates requires balances resulting from transactions denominated in a foreign currency to be converted into BDT at the rate prevailing on the date of transaction. All monetary assets and liabilities at balance sheet date, denominated in foreign currencies, are to be retranslated at the exchange rates prevailing on the balance sheet date. While recognizing foreign exchange gain/loss, on foreign currency-denominated loans for acquisition of property, plant, and equipment the Company consistently follows the Companies Act 1994. Details are given in note 2.1. 32 Property, plant and equipment 32.1 Recognition and measurement Items of property, plant, and equipment excluding land are measured at cost less accumulated depreciation in compliance with the requirement of IAS 16: Property, Plant and Equipment. The cost of an item of property, plant, and equipment comprises its purchase price, import duties, and nonrefundable taxes, after deducting trade discount and rebates and any costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in an intended manner. Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment. 3,2,2 `usqun ACosts The cost of replacing part of an item of property, plant, and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of property, plant, and equipment are recognized in profit or loss and other comprehensive income as incurred. 32.3 Depredation No depreciation is charged on land and capital work in progress Depreciation on other items of property, plant, and equipment is provided on a straight-line basis over the estimated useful lives of each item. In addition to property, plant, and equipment, depreciation is charged from the month of capitalization up to the month immediately preceding the month of disposal. Considering the estimated useful life of the assets, the rates of depreciation stand as follows: Category of asset Rate of depreciation (%) Building 5 Plant and machinery (substations and transmission lines) 3.5 Motor vehicle 20 Office equipment 10 Computer and accessories 10 Signboard 25 Furniture and fixtures 10 POWER GRID COMPANY OF BANGLADESH LTD. Notes to the financial statements For the year ended 30 June 2019 Capital works-in-progress consists of all costs related to projects including civil construction, land development, consultancy, interest, exchange loss/(gain), line-in progress, import duties, and nonrefundable taxes and VAT. Property, plant, and equipment that is being under construction/ acquisition is also accounted for as capital works-in-progress until construction/acquisition is completed and measured at cost. And the cost does not include the retention money kept by the donors by the instruction of the Company. 3 -2 ~T*tiennt and' disposal An item of property, plant, and equipment is derecognized on disposal or when no further economic benefits are expected from its use, whichever comes earlier. Gains or losses arising from the retirement or disposal of property, plant, and equipment are determined by comparing the proceeds from disposal with the carrying amount of the same and are recognized the net with 'other income' in the statement of profit or loss and other comprehensive income. 3.26 Impairment The carrying amounts of assets are reviewed at each reporting date to determine whether there is any indication of impairment loss. If any such indication exists, the recoverable amount is estimated in order to determine the extent of the impairment loss, if any. An impairment loss is recorded on a judgmental basis, for which provision may differ in the future years based on the actual experience. An impairment loss is recognized whenever the carrying amount of the asset exceeds its recoverable amount. Impairment losses, if any, are recognized in the statement of profit and loss and other comprehensive income. 3.3 Inventories Inventories consisting of spare parts at Grid Maintenance Divisions (GMD) offices are valued at cost. The cost of inventories includes expenditure incurred in acquiring the inventories and other costs incurred in bringing them to their existing location and condition. Cost of inventories is determined by using the weighted average cost formula. Net realisable value is based on estimated selling price less estimated cost to sale. 3.4 Financial instrument "A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.Financial assets carried in the statement of financial position include cash and cash equivalents, other receivables, inter company receivables and advance, deposits and prepayments. " Nonderivative financial instruments comprise of cash and cash equivalents, accounts and other receivables, loans and borrowings and other payable. 34.1 Financial assets All other financial assets are recognized initially on the date at which the company becomes a party to the contractual provisions of the transaction. Cash and cash equivalents Cash and cash equivalents comprise of cash on hand and cash at bank including fixed deposits having maturity of three months to one year which are available for use by the Company without any restriction. Advances, deposits and prepayments Advances are recognized and stated at original invoiced amounts and carried at anticipated realizable values. Accounts and other receivables Accounts and other receivables are initially recognised at cost which is the fair value of the consideration given in return. After initial recognition these are carried at cost less impairment losses due to collectability of any amount so recognised. 124 A rffliu-i[Repoi! 201C8-201(J 'AO9w _A A WGLa rES: POW'ER GRID COMPANY OF BANGLADESH LTD. Notes to the finandai statements For the year ended 30 June 2019 3.4.2 Fiancia ab th es Financial liabilities are recognized initially on the transaction date at which the Company becomes a party to the contractual provisions of the liability. The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expired. Financial liabilities include interest bearing borrowing mostly from government , non refundable grants, trade payables and other current liabilities. Interest-bearing borrowings "Interest bearing borrowings are created against the capital assets which are brought in the name of projects of the company and paid for by the lenders. The company creates an interest bearing borrowing amount in the name of the lender when a capital asset is booked under a project's name for which the lender paid to the procurer. In the cases of foreign borrowings, the company goes into a Subsidiary Loan Agreement (SLA) with the GoB. In case of interest bearing borrowings from the GoB, the borrowings are detruncated into 40%-60% ratio as per the commemoratives of the borrowings distributed in the name of the company. 40% of the borrowing is recorded as interest bearing borrowing where the other 60% is recorded as Deposit for Share. The unused amount of GoB loans are refunded in the name of GoB through treasury challan." Grants Grants or non-repayable grants are disbursed or given by the grant makers to fund specific projects. Grants are usually conditional upon certain qualifications as to the use, maintenance of specified standards, or a proportional contribution by the grantee or other grantors. The company receives its grants from foreign grant makers through GoB Subsidiary Grant Agreements (SGAs). The grant makers disburse the amount of grant against procurements of the company under the terms of SGAs. Trade payables Payables are stated at cost which is the fair value of the consideration to be paid in the future for goods and services received. Paid up capital represents the total amount contributed by the shareholders and bonus shares issued by the Company to the ordinary shareholders. Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to vote at shareholders' meetings. In the event of a winding up of the Company, ordinary shareholders rank after all other shareholders and creditors are fully entitled to any residual proceeds of liquidation. Deposit for shares "A share money deposit is a part of equity. These are considered equity shares and are long-term profit-invested deposits geared toward to stockholders of a company. The company gets Share money deposit from two key concerns, i.e., Bangladesh Power Development Board (BPDB) and the Govt. of Bangladesh. BPDB represents the amount of investment received through the 5th & 6th Vendors Agreement with the company. GoB's amount represents the investment received from GoB against the development projects. GoB's borrowings are detruncated into a 40%-60% ratio as per the commemoratives of the borrowings distributed in the name of the company. 60% of the borrowings are deposited as a deposit for shares in the name of GoB." 3.6 Prov sion, contingent labii ties and coti ngent assets Provisions A provision is recognized in the balance sheet when the Company has a legal or constructive obligation as a result of the past event, an outflow of economic benefits will probably be required to settle the obligation and a reliable estimate can be made of an amount of the obligation. Provision is ordinarily measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date. POWER GRID COMPANY OF BANGLADESH LTD. Notes to the finandia statements Accruals For the year ended 30 June 2019 Accruals are liabilities to pay for goods or services that have been received or supplied but have not been paid, invoiced or formally agreed with the supplier, including amount due to employees. Contingent liabilities A contingent liability arises where a past event may lead to an entity having a liability in the future but the financial impact of the event will only be confirmed by the outcome of some future event not wholly within the entity's control. A contingent liability should be disclosed in the financial statements unless the possible outflow of resources is thought to be remote Contingent asset A contingent asset is a potential asset that arises from past events but whose existence can only be confirmed by the outcome of future events not wholly within an entity's control. A contingent asset should be disclosed in the financial statements only when the expected inflow of economic benefits is probable. 3. nore tax Income tax expense comprises current and deferred tax. Income tax expense is recognised in the statement of profit or loss and other comprehensive income except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity in accordance with the requirements of IAS 12: Income Taxes. 3.7.1 Current tax "Current tax is the expected tax payable on the taxable income for the year, using tax rate enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. The effective rate of tax is 25% as per Income Tax Ordinance 1984. Minimum Tax is applicable for the Company as per section 82C(4) of Income Tax Ordinance 1984 on gross receipts from all sources @ 0.60%. Provision for tax has been made on the basis of income tax laws." 3.7.2 Deferred tax Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they are reversed, based on income tax, the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity. A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the deductible temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. 3.8 Revenue recognition IFRS 15: Revenue from Contracts with Customers supersedes IAS 11: Construction Contracts, IAS 18: Revenue and related Interpretations and it applies, with limited exceptions, to all revenue arising from contracts with its customers. IFRS 15 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. IFRS 15 requires entities to exercise judgment, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires extensive disclosures. POWER GRID COMPANY OF BANGLADESH LTD. Notes to the financial statements For the year ended 30 June 2019 Due to the transition methods chosen by the Company in applying this standard, comparative information throughout these financial statements has not been restated to reflect the requirements of the new standard. Revenue comprises transmission/wheeling charge and rental income which is recognized in the statement of profit or loss and other comprehensive income after meeting the recognition criteria in accordance with the requirements of IFRS 15: Revenue from Contracts with Customers. Revenues are measured at a fair value of the consideration received or receivable, net off sale-related taxes (VAT). Transmission charge is recognized when monthly invoices are raised against Bangladesh Power Development Board (BPDB), Dhaka Power Distribution Company (DPDC), Palli Bidyut Samitees (PBSs), West Zone Power Distribution Co. Ltd (WZPDC), Northern Electric Supply Co. Ltd (NESCO) and Dhaka Electric Supply Company Ltd. (DESCO). The amount of invoices is determined by a survey of meter reading at the cut-off time. Rental income from Optical Fibber Cable Network is recognized when monthly invoices are raised against Grameen Phone Ltd, Bangladesh Telecommunication Company Limited (BTCL), Banglalink, Fibber @ Home, UGC, Robi Axiata Ltd. & Summit Communications Ltd. Quantum of invoices is determined in accordance with the agreement. 39 asis for allocation of trans on expense and administrative expense: Salary and othei employee beielits 09.00 11.0 100 Travelling and conveyance 96.20 3.80 100 Functions, games and entertainment 8.67 91.33 100 Rent, rates and taxes 44.90 55.10 100 Postage, telephone and fax 67.66 32.34 100 Recruitment and training 47.40 52.60 100 CPF contribution 92.11 7.89 100 Gratuity 83.00 17.00 100 Electricity and power 98.34 1.66 100 Office expenses 35.52 64.48 100 Fuel and lubricants 76.13 23.87 100 Security expense 98.66 1.34 100 Insurance 21.63 78.37 100 Bank charges and commission 98.00 2.00 100 Consultancy 17.88 82.12 100 Repair and maintenance 96.87 3.13 100 C & F, carrying and handling 96.01 3.99 100 Miscellaneous expenses 81.55 18.45 100 Depreciation (note 4) 99.62 0.38 100 Note: Based on the above ratios the cost is allocated between transmission and administrative expenses. POWER GRID COMPANY OF BANGLADESH LTD, inance incomn e Finance income comprises interest income on funds invested. Interest income is recognised on accrual basis. Finance expense comprises interest expense on loans and foreign exchange loss/(gain) on translation of foreign currency relating to finance expenses. All finance expenses are recognised in the statement of profit or loss and other comprehensive income 3.11 -ann3:pr are The company presents basic and diluted (when dilution is applicable) earnings per share (EPS) data for its ordinary shares in accordance with the requirements of IAS 33: Earnings per Share Basic EPS is calculated by dividing the net profit for the year attributable to ordinary shareholders (the numerator) by the weighted average number of ordinary shares outstanding (the denominator) during the year and splitted ordinary shares (IAS 33.10). Diluted EPS is calculated by adjusting the earnings and number of shares for the effects of dilutive options and other dilutive potential ordinary shares (IAS 33.31). 3.12 Events after the reporting period Events after the reporting period provide additional information about the Company's position at the balance sheet date are reflected in the financial statements. Events after the reporting date are not adjusting events are disclosed in the notes when material. 3.13 Statement of cash flows The statement of cash flows has been prepared in accordance with requirements of IAS 7: Statement of Cash Flows. The cash generated from operating activities has been prepared using the direct method as prescribed by Securities and Exchange Rules 1987 and as the benchmark treatment of IAS 7, whereby major classes of gross cash receipts and gross cash payments from operating activities are disclosed. 3.14 Borrowing cost Borrowing cost relating to projects already in commercial operations is charged as expenses for the year in accordance with requirements of IAS 23: Borrowing Costs. In respect of projects that have not yet commenced commercial operation, borrowing costs are adjusted with capital works-in-progress. 3.15 Employee benefits The Company maintains both defined contribution plan and defined benefit plan for its eligible permanent employees in accordance with the requirements of IAS 19: Employees Benefits. The eligibility is determined according to the terms and conditions set forth in the respective deeds. 315.1 Defined contribution plan (provident fund) Defined contribution plan is a post-employment benefit plan. The recognised Employees' Provident Fund is considered as defined contribution plan as it meets the recognition criteria specified for this purpose. All permanent employees contribute 10% of their basic salary to the provident fund and the Company also makes equal contribution. The Company recognises contribution to defined contribution plan as an expense when an employee has rendered services in exchange for such contribution. The legal and constructive obligation is limited to the amount it agrees to contribute to the fund. 3.15.2 Defined benefit plan (gratuity) The Company also maintains an unfunded gratuity scheme for permanent employees, provision for which has been made in the statement of profit or loss and other comprehensive income. Employees are entitled to gratuity benefits after completion of minimum 3 years service with the Company but provision has been made for persons who have not completed 3 years. The gratuity is calculated on the last basic salary and is payable at the rate of 2.5 months' basic salary for every completed year of service. 1281 P RID C O OF B A D LTD The Company has also a group insurance scheme for its permanent employees, premium for which is being charged to profit or loss and other comprehensive income annually as per the insurance policy. I~T mN~s~ Proxfit adpio ud(PF "This is required to be made in terms of section 234(1)(b) of Bangladesh Labour Act 2006 (as amended in 2013). As per that Act, 5% of the net profit of each year, not later than nine (9) months from the close of that period, is required to be transferred to the fund, the proportion of the payment to the participation fund and the welfare fund being 80:10. The remaining 10% shall be paid by the company to the workers' welfare foundation fund, as formed under the provision of the Bangladesh Worker's Welfare Foundation Act 2006. Of the 80% being transferred to the participation fund, two-third has to be distributed in equal proportions to all the members (beneficiary) of the fund in cash and one-third has to be invested in accordance with the manner as stated in section 242 of that Act. The company makes provision @ 5% of its net profit before tax as a contribution to workers' profit participation fund before tax and charging such expense in accordance with The Bangladesh Labour Act 2006 (as amended in 2013). However, the fund is not separately allocated in the above stated manner." 3 1 7 Proposed dividenid The amount of proposed dividend has not been accounted for but disclosed in the notes to the accounts along with dividend per share in accordance with the requirements of the para 125 of IAS 1: Presentation of Financial Statements. Also, the proposed dividend has not been considered as "liability" in accordance with the requirements of the paras 12 & 13 of IAS 10: Events After The Reporting Period, because no obligation exists at the time of approval of accounts and recommendation of dividend by the Board of Directors. The Board of Directors of the Company recommended 20% (BDT 2.00 per share) cash dividend amounting to BDT 921,825,982.00 for 30 June 2019 at the board meeting held on 06 November 2019. The dividend is subject to final approval by the shareholders at the forthcoming annual general meeting of the Company. The financial statements for the year ended 30 June 2019 do not include the effect of the cash dividend which will be accounted for in the period when shareholders' right to receive payment is established. 3.18 Comparative information Relevant comparative information has been presented in the financial statements. Previous year's figures have been rearranged/reclassified and restated wherever possible and considered necessary to conform to current year's presentation. POWER GRID COMPANY OF BANGLADESH L0. T For the year ended 30 June 2019 4. P er pl Figures in BDT Cost Depreiation Carrying Adition ouring lDispo3ali Total at 31, Junc R31F UPLO 01 Jlv Prior YEW~ Rer.saled i (ispOZ311i Cnrac ior LC.5 Tot3l ic 21- Jun: P - son ur,sr NJ~~- iri mes e n__1___2__, Dal3ncE- a., at 5dju.en ~ rTt Particular At 01 July 2018 yar adjustmpn for Total I 30 JunE Rmen Jut 01 Cnarnx r h To-olc. 0 Juu -nI ---I Building 609,832,954 116,889,907 - 726,722,861 5 92,446,426 - 92,446,426 - 33,857,422 126,303,848 600,419,013 Plant and machinery 175,545,061,424 33,834,022,322 209,379,083,746 3.5 67,511,150,625 (5,110,649) 67,506,039,976 5,942,598,357 73,448,638,333 135,930,445,413 Motor vehicle 1,143,726,911 106,138,146 - 1,249,865,057 20 741,459,481 - 741,459,481 - 146,425,116 887,884,597 361,980,459 Office equipment 393,706,322 99,193,480 - 492,899,803 10 157,714,266 - 157,714,266 - 38,493,715 196,207,981 296,691,822 Computer and accessories 65,328,826 10,289,696 75,618,522 10 29,336,973 - 29,336,973 - 6,485,712 35,822,684 39,795,838 Signboard 56,411,853 - - 56,411,853 25 5,411,853 56,411,853 - 56,411,853 - Furniture and fixtures 85,240,362 8,640,232 - 93,880,594 10 43,089,064 43,089,064 - 6,781,125 49,870,189 44,010,405 Total 2018-19 183,752,215,530 35,543,589,456 - 219,295,804,986 68,631,608,688 15,110,649) 68,626,498,039 - 6,174,641,446 74,801,139,485 144,494,665,501 Total 2017-18 177,186,892,072 6,812,823,457 1(247,500,000) 183,752,215,530 63,788,656,067 63,788,656,068 (247,500,000) 5,090,452,620 68,631,608,688 115,120,606,842 Depreciation charged for the year 2018-19 2017-18 Transmission expenses (note 24) 6,151,177,808 5,071,108,900 Administrative expenses (note 25) 23,463,637 19,343,720 6,174,641,446 5,090,452,620 Plant and machinery include substations and transmission lines (included in note 7) amounting to BDT 47,370,760,000 that has been transferred from PDB through several vendors agreements of which the 1st agreement was made on 14-10-99 and the last agreement (6th agreement) till date was made on 10-04-2012. The final vendors' agreement, however, is expected to be signed in the next accounting year. C, Notes to the finandia statements For the year ended 30 June 2019 5. Capital work-in- progress (BOY) (t04) Balance as at 01 July 63,269,033,237 25,353,438,671 Add: Cost incurred during the year (27,203,376,107) 37,915,594,565.44 Less: Adjustment/transfer to assets 32,524,652,033 - Balance as at 30 June 68,J00,09, 63,269,033,237 Project-wise break-up: 400/230/132 Kv Chocoria Matharbari TLP 234,562 234,562 Ashuganj Bhulta 400 KV Transmission Line Project - 5,717,948,413 Aminbazar Mawa Mongla 400 KV TLP & Aminbazar S/S Project 981,161,557 119 .3 096 132 KV Amnura Substation & Associated TLP 638,603,706 566.059,9-)2 Bakerganj-Barguna 132kv and Barguna S/s construction Project 491,383,917 1 7.63, ' 16 B.Baria-Nabinagar-Narshingdi 132 KV Transmission Line Project - 200,000 Bay Extension at Tongi and Rampura SS Construction Project 12,393,953 - Baharampur-BD-Baharampur-India 2nd 400kv TLP 588,373,874 2,568,048 Bangladesh power system reliability and efficiency improvement Project 45,231,692 4,270,636 Bhaluka Sreepur 132kv TLP 1,265 - Enhancement of capacity of Grid S/S & TL for Rural Electrification Project 8,748,331,074 6,556,104,709 ESPNER Eastern Region Project 102,925,429 - Power Grid Network Strengthening Project (G to G) 151,184,452 L5,745.025 Ghorasal 230kv UG cable project 135,583,998 112.539,974 400/230/132 KV Grid Network Development Project 8,065,449,524 4,474.910,145 Grid Development Project in Eastern Region - 8,649.497,151 Head Office Building * 1,708,156,217 1,439.286,501 HVDC 400kv back to back substation project 89,355,821 297. 361 HVDC 2nd Block - 14,299,198,099 Ruppur Paromanobik Biddut Nirman Prokolpo 1,371,059 - Kodda 132/33 KV S/S Project 190,102,337 24.818,094 64 Kodda-Rajendrapur 132kv double circuit TLP 511,504,278 1,900 00 Matarbari-Anowara-Madunaghat 400 KV TL Project 685,794,023 23,799,291 DTIMEZRPS Mirsharail project 410,263,973 2.222.799 Dhaka-Chittagong MPGS Project (MMM) 592,945,310 396,356 036 Mongla Khulna (South) 230 KV TLP 951,339,689 824.935,928 Management Training Centre Building, Agargaon 203,013,902 140,70D.,739 Mymensingh Tangail Bhaluka and Jamalpur Sherpur 198,502 193,502 National Power Transmission Network Development 16,769,507,335 11,088,649,969 Sylhet Shajibazar Brahmanbaria 400 Kv TL 36,340,322 36,340,322 Shajibazar Ashuganj 132 Kv Transmission Line 158,988,750 158,988,750 Replacement of Aminbazar 132kv double circuit TLP 110,527,750 108,000 Meghnaghat - Aminbazar 400 Kv RPP, Associated T/L extension Transmission Line - 487,681,960 Patuakhali (Payra) Gopalganj 400 KV TLP & Gopalganj 400 KV S/S 12,063,552,348 3,302,321,790 Patuakhali-Payra 230kv TL Project 2,281,945,775 91,585,248 Rajendrapur 132kv GIS S/S project 531,032,368 5,570,306 RE Component of MUSCCFP 608,834,560 487,581,378 Reconductoring of 132kv TLP 1,602,648,545 1,121,845,732 POWER GRID COMPANY OF BANGLADESH LTD.1 For the year ended 30 June 2019 Rural Trans. Network Development and Renovation Project (Energy Efficiency in Grid Based Power Supply Project). 214,534,489 66,086,654 Western Grid Network Development Project 4,627,602,598 935,782,571 Sahajibazar XLPE Cable Raplacement Project 103,103,817 - South Western Transmission Expansion Project 2,924,794 - 33 Kv Switching Station at Agrabad & Rampur, Ctg. 11,003,848 - GMD-Dhaka (North) WIP 130,869,377 - Exchange Rate Fluctuation loss/(Gain) 1,968,449,324 1,370,949,566 Inventory in Transit 2,063,539,050 655,517,623 Balance as at 30 June 68,590,309,163 63,269,033,237 *Head Office Building partially has now been used. 6. Investment in FDR 10,000,000 110,000,000 This represents investment in fixed deposit with BRAC Bank Ltd.(Banasree Branch) 7. Inventories 1,137,052,392 1,011,3 60,68 These represent the closing inventory of electrical goods as at 30 June. The electrical goods include spare parts which were received from Bangladesh Power Development Board (BPDB) along with the substations and transmission lines mentioed in note 4. 8. Accounts and other receivables Receivable from transmission/wheeling and optical fiber charge (note 8.1) 5,542,246,347 3.230.301,095 Other receivables (note 8.2) 39,582 10,006,304 5,542,285,929 3,240,307,900 8.1 Accounts receivables Receivable from transmission/wheeling and optical fiber charge 5,547,685,347 3.235,740,095 Provision for bad debt (RPCL) (5,439,000) (5,439',000) Net receivable from transmission/wheeling and optical fiber charge 5,542,246,347 3,230,301,09S 8.2 Other receivables T/L sales (Tangail PBS) - 9,700,555 Interest receivable 39,582 306.,249 39,582 10,006,804 POWER GRID COMPANY OF BANGLADESH LTD. Notes to the finania statements For the year ended 30 June 2019 The age-wise analysis of receivables against transmission/wheeling and optical fiber charge of BDT 5,542,246,347 is as under: BPDB 961,562,450 94.970,93 1 1,910,533,381 DPDC 592,290,262 520,028.345 1,112,318,607 DESCO 3,106,230 316,336,336 .319,992,566 PBS 77,433,992 1.7-12,511.750 1,819,975,742 WZPDCL 65,796 19-1,605. 19 194,670,991 NESCO (NWZPDCL) - 99.184.299 99,184,399 M/S Abul Khair Steel Product 6,433,733 - 6,433,733 BWDB GK Project Bheramara, Kushtia 1,560,621 - 1,560,621 Grameenphone Ltd. for optical fiber 15,467,416 15,467,416 BTCL for optical fiber 2,096,251 50,220,L)I0 52,316,251 Banglalink - 1.-197,151 1,497,151 Robi Axiata for optical fiber 273,816 - 273,816 Fibre @ Home for optical fiber - 692. 209 6,982,209 Summit Communication (3) - (3) UGC for optical fiber - 1,039,466 1,039,466 1,660,290,564 3,881,955,783 5,542,246,347 The Company has reported an amount of BDT 5,542,246,347 as receivable from transmission/wheeling and optical fiber charge. It includes receivables from PDB, DPDC, DESCO, WZPDCL and NESCO BDT 1,910,533,381, 1,112,318,607, 319,992,566, BDT 194,670,991 & BDT 99,184,399 respectively. Receivable from DPDC includes BDT 13,702,055 being carried forward from June 2008 to June 2019 due to fewer amounts not received against wheeling charge bills over the years. Receivable from DESCO includes BDT 3,106,230 being carried forward from 2012 and receivable from WZPDCL includes BDT 9,620 being carried forward from the year 2015. The accounts receivable from BPDB has been partly adjusted against the debt service liability payable to BPDB by PGCB out of loan transferred with the assets. All the receivables have been considered as good. 30.06.2019 30.06.2018 9. Advances, deposits and prepayments (BDT) (BDT) Advances (note 9.1) 14,186,622,803 9,900,228,999 Deposits (note 9.2) 1,979,324 1,251,569 9.1 Advances 14,188,602,127 9,901,480,568 Advance against legal expense (Doza & Haroon) 407,815 -10j.815 Advance against TA/DA 99,000 09000 Advance against contractors/suppliers 6,504,073 7,617.489 Advance of branch offices and GMDs 41,261,715 27,493.618 Advance tax (note 9.1.1) 8,040,668,844 6,276,658,745 Advance against expenses 10,138,315 10,013,085 Advance against office rent 1,554,650 1,554,650 Advances given by projects (note 9.3) 6,084,541,433 3,575,634,329 Suspense account (defalcation at CE-Project Monitoring) 31,138 31,138 Advance against training (employee) 1,415,820 719,130 14,186,622,803 9,900,228,999 POWER GRID COMPANY OF BANGLADESH LTD. Notes to the finandia statements For the year ended 30 June 2019 9.1.1 Advance tax represents income tax deducted at source on import of raw materials, interest on fixed deposits and short term accounts and advance payment of tax deducted by customer. 9.2 Deposits Grid maintenance divisions 1,102,845 375,090 CDBL 500,000 500,000 Others 376,479 376,479 1,979,324 1,251,569 9.3 Advances given by projects IBSB Project 306,748 306,748 33 KV GIS SS at Agrabad & Rampur Ctg. 2,478,266 - 132 KV Amnura S/S & Associated TLP 7,000 7,000 Bibiyana-kaliakore Project - - Project 1 (Aminbazar old Airport) 12,500,290 Barishal Bhola Borhanuddin Project (BBB) - 5,133,326 RRAGS Project 7,221,069 7,221,069 National Power Transmission Network Development (NPTND) 262,103,503 402,388,521 132KV GNDP in Eastern Region 10,520,226 7,874,960 400/230/132 KV GND Project 17,000 246,007 Ashuganj Bhulta 400 KV TLP - 411,113,679 Mongla-Khulna-South 98,019,502 100,643,623 Kodda 132/33KV SS 498,906 4,198,528 HVDC 2nd Block - 114,541,444 ECGSTLP 4,889,240 177,233,271 Ruppur Paromanobik Biddut Nirman Project 17,537,897 30,721,630 Dhaka-Chittagong MPGC Project 2,176,186,875 - Aminbazar-Mawa-Mongla 400kv TL Project 1,477,637,927 83,657,855 RE Component of MUSCCFPP 4,038,454 12.476.579 Power Grid Network Strenthening Project-G to G 40,313,794 40,313,599 Patuakhali(Paira)-Gopalgonj 400kv TLP 77,072,379 327,729.338 Patuakhali(Paira)-Gopalgonj 230kv TLP 26,450 220,139,357 Re-conductoring of 132kv TL project 9,520,170 28,293,S55 Rajendrapur 132/33kv GIS project 3,841,589 6,007.136 DTIMEZRPS Mirsharail project 176,179,040 3393 5.170 Rajendrapur 132kv double circuit TLP 3,959,532 24.956,236 Bakerganj Barguna 132kv & Barguna SS construction project 43,163,929 85,325,507 Bharamara-Baharampur 2nd 400kv TL 48,400,877 77,584,951 Matarbari-Modunaghat 400kv TL project 179,659,248 241,156 WGNDP 825,300,531 1.285,023,735 Energy efficiency in grid base power supply - 25,819,759 South Western Expansion Project 588,648,810 ESPNER Project, Eastern Region 125,405 Bay Extension at Rampura SS & Tongi Project 7,635,440 Bhaluka-Sherpur Project 19,231,626 - 6,084,541,433 3,575,634,329 1POWER GRID COMPANY OF BANGLADESH LTD. Notes to the finandia statements For the year ended 30 June 2019 10. Cash and cash equivalents (IAIT) ( ) Cash in hand 789,532 711,389 Balances with banks as: Current deposit accounts 1,844,200,295 933,017,262 Short term deposit accounts 10,093,417,838 . 547, 50U.151 11,937,618,133 7 480, 525,413 11,938,407,665 7,481, 36,802 11. Share capital Authorised share capital 10,000,000,000 ordinary shares of BDT 10 each 100,000,000,000 10,000,000,000 Paid up share capital 460,912,991 ordinary shares of BDT 10 each 4,609,129,910 4,609),129,910 The break-up of the paid up share capital is as follows: 116,536,000 shares of BDT 10 each fully called and paid up in cash 1,165,360,000 1.165, 360,000 247,822,100 shares of BDT 10 each paid up other than cash 2,478,221,000 2478.221.000 54,653,710 shares of BDT 10 each as 15% bonus shares 546,537,100 546,537,100 41,901,181 shares of BDT 10 each as 10% bonus shares 419,011,810 419.011.810 4,609,129,910 4,609,129,910 Percentage of shareholdings: 30 June 2019 30 June 2018 No. of shares % No. of shares % Sponsors (BPDB) 351,446.348 76.25 351,446,348 76.25 InstitUtions (financial & others) 86,755,354 18.82 88.951,770 19.30 Individual 22,711,289 4.93 20,514,873 445 Total 460,912,991 100 460,912,991 100 Classification of shareholders by holding: Number of shareholders as at % of shareholdings as at Shareholding range 30 June 2019 30 June 2018 30 June 2019 30 June 2018 Less than 500 shares 1,913 1,648 35.53 29.94 500 to 5,000 shares 2,606 3,078 48.40 55.92 5,001 to 10,000 shares 365 354 6.78 6.43 10,001 to 20,000 shares 232 178 4.31 3.23 20,001 to 30,000 shares 77 58 1.43 1.05 30,001 to 40,000 shares 31 29 0.58 0.53 40,001 to 50,000 shares 31 18 0.58 0.33 50,001 to 100,000 shares 50 53 0.93 0.96 100,001 to 1,000,000 shares 67 76 1.24 1.38 Over 1,000,000 shares 12 12 0.22 0.22 Total 5,384 5,504 100 100 MOu E R ffa aGrID COPN Oepod 2A' 135 POWER GRID COMPANY OF BANGLADESH LTD. Notes to the financial statement For the year ended 30 June 2019 .1) O2011 30.06.2018 12. Deposit for shares (1.[1) (BDT) This represents the amount of investment received from the Government of Bangladesh (GoB) as part of GoB equity against the development projects & BPDB's investment received through the 5th & 6th Vendors Agreement. Balance as at 01 July 37,348,943,886 30,394,658,990 Add: Received during the year from the GoB as part of equity in respect of development projects (note 12.1) 13,478,835,000 7,035,011,571 50,827,778,886 37,429,670,561 Less: Refunded to GoB the surplus fund released by GoB (note 12.2) 117,077,692 80,726,675 Balance as at 30 June 50,710,701,193 37,348,943,886 2018-19 2017-18 Note: Investment of Govt. 4 8,192. 1, 193 34,830,803,886 Investment of BPDB 2,518. 140,000 2,518,140,000 Total investment 50.710.701,193 37,348,943,886 The amount related to deposit for shares will be settled as per the statutory regulation and decision of the Govt. 12.1 Equity in respect of development projects 132kv GNDP-Eastern Region Project - 27,000,000 Ashuganj-Bhulta TL Project 26,400,000 281,250,000 HVDC 2nd Block 374,400,000 1.,72,000,000 Bibiyana-Kaliakore-Fenchugong- Bibiana TL Project - 400/230/132KV GNDP 450,300,000 180,000,000 NPTND 1,950,000,000 780,000,000 ECGSTLP 120,000,000 480,000,000 Aminbazar-Mawa-Mongla 400kv TLP 410,250,000 112,500,000 Patukhali(Paira)-Gopalgonj 400kv TLP 6,324,000,000 2,400,000,000 Energy Efficiency in Grid Based Power Supply Project 228,000,000 300,000,000 Meghnaghat-Aminbazar 400kv - 19,971,600 Haripur 360MW combined cycle 48,399,240 Transmission Efficiency Improvement Project(TEI) 22,375,731 Patukhali-Paira 230kv TLP 1,415,985,000 149,715,000 Power Grid Network strengthening project-G to G 240,000,000 24,000,000 Bakerganj-Barguna 132kv and Barguna 132/33kv S/S construction project 342,000,000 60,000,000 Bharamara-Baharampur 2nd 400kv double circuit TL project 571,500,000 48,000,000 DTIMEZRPS Mirsharail project 459,000,000 49,800,000 Western Grid Network Development project 540,000,000 180,000,000 Materbari Madunaghat 400 Kv TLP 27,000,000 - 13,478,835,000 7,035,011,571 136 Annual Report 2018 201 9 1 mMsraFatir Mamffffal"mM: POWER GRID COMPANY OF BANGLADESH LTD. Notes to the financial statements For the year ended 30 June 2019 12.2 Refund to GoB (154 (? ) HVDC 2nd Block 21,796,693 25,668 Ashuganj-Bhulta TL Project - 50,335,723 132kv GNDP-Eastern Region Project 5,981,400 Transmission Efficiency Improvement Project(TEI) - 22,375,731 Bakerganj-Barguna 132kv and Barguna 132/33kv S/S construction project 62,592,254 - Bharamara-Baharampur 2nd 400kv double circuit TL project 29,995,249 Materbari Madunaghat 400 Kv TLP 2,693,497 Energy Efficiency in Grid Based Power Supply Project - 2.008.15 117,077,692 80,726,61S 13. Retained earnings Balance as at 01 July (A) 7,875,722,492 6,380,288,4 Prior years' adjustment for: Understated expenses (note 13.1) (1,726,769) Overstated expenses (note 13.2) 10,465,809 6,541,294 Understated income (note 13.3) - - Overerstated income (note 13.4) - 12,030) Total prior years adjustment (B) 8,739,040 6,539,264 Re-stated balance at 01 July (A+B) 7,884,461,532 6,386,827,684 Total comprehensive income for the year 3,8.39991.712 2.180,264 295 Final dividend (783,552,085) (691.269.37) Balance as at 30 June 10,940,901,159 7,875,722,492 13.1 Prior years adjustment for understated expenses Incentive Bonus not charged in previous years 1 726.769 1,726,769 - 13.2 Prior years adjustment for overstated expenses Collection from employee for internal audit objection from site offices 5,355,160 1,941..59 Refunded for wrongly deducted by Rupali bank as L/C charge against various L/C. - ,479,565 Wrongly recorded as bank charge in Ruppur Paromanobic project. - 120,370 Depreciation 5,110,649 - 10,465,809 6,541,294 13.3 Prior years adjustment for understated income Wheeling bill revised for PBS-1 Mymensingh for the month of June 2017 13.4 Prior years adjustment for overstated income Wheeling bill revised for PBS-3, Dhaka for the month of June 2017 (2 6) Wheeling bill revised for PBS-3, Chattogram for the month of March 2017 -11404) -_ (2,030) POWER GRID COMPANY OF BANGLADESH LTD. Notes to the financial statements For the year ended 30 June 2019 14. Term loan- interest bearing ... () _0.2 0-. 1 at The break-up of term loan- interest bearing are as follows: W,LI') IP-0 Notes ADB loan 14.1 54,714,263,071 48,974,530,674 GoB loan 14.2 29,665,279,766 21,105,049,433 Assigned loan 14.3 3,648,966,960 4,394,3 19.98 3 SIDA loan 14.4 217,621,575 27.7, c 68 KFW loan 14.5 4,293,272,303 3,379_)42_5,77 Danida loan 14.6 704,810,726 846_ J6 892 DPBS-1 loan 14.7 398,642,500 467,042.500 NDF loan 14.8 500,682,623 60.194084 JBIC loan BD 52, 55 & 70 14.9 20,280,803,416 13,96.2.811,964 IDA loan (No 4508, 53810, 6177 & 60100) 14.10 9,104,751,537 7,388.582.777 EDCF loan 14.11 7,400,483,209 7.081.06.954 HSBC loan 14.12 216,352,435 191.661.790 IDB loan BD 0172 14.13 1,784,298,288 1,254,926,242 DPBS-3 loan 14.14 - 38,476,823 132,930,228,408 109,961,920,567 Less: Transfer to term loan-interest bearing (note 18) i.e. current portion of long term loan (777,574,800) (840,005,104) Total long term loan 132,152,653,608 109,121,915,463 Add: Long term interest 24,588,093,149 20.273.603,166 Balance as at 30 June 156,740,746,757 129,395,518,629 14.1ADB loan Balance as at 01 July 48,974,530,673 39,376,453.261 Current Portion of Debt - Add: Received during the year 5,746,575,807 8,570,517,457 54,721,106,480 47.946,970,717 Exchange rate fluctuation loss/(gain) 389,309,875 1.421. 169 748 Less: Repaid during the year (note 14.1.1) (396,153,285) (93. 609,7912) Balance as at 30 June 54,714,263,071 48,974,530,673 Loan details are as follows: Loan no. Mymensingh Power Station and Transmission Line 1505 30,046,073 30,046,073 Rampura Sub-Station 1505 28,553,595 28,553.59" Sub-station-Extension -Mirpur 1505 19,891,454 19.891.454 Emergency Restoration System 1505 49,299,719 49_299,719 National Load Dispatch Centre 1505 16,739,594 16,739,594 Haripur-Rampura Transmission Line (General Project) 1505 444,071,780 538,596,794 Exchange rate fluctuation loss/(gain) 1505 832,661,229 819,570,610 Total ADB 1505 (A) 1,421,263,444 1,502,697,838 Hasnabad-Aminbazar-Tongi Transmission Line 1731 26,438,868 26,413,8868 Sub-station Aminbazar 1731 160,203,565 195.648.150 Sub-station Extension Tongi, Hasnabad & Kalyanpur 1731 522,249,289 522,249.289 1POWER GRID COMPANY OF BANGLADESH LTD. Notes to the financial statements For the year ended 30 June 2019 'ni0~.)01 '30.06.2018 Loan no. (OVL) (BDT) Rampura-Gulshan Underground Transmission Line 1731 137,072,901 137,072,901 Rampura Horipur Aminbazar -CCC 1731 682,250,482 682,250,482 GIS Sub-Station - CNEEC 1731 365,739,955 365,739,955 Exchange rate fluctuation loss/(gain) 1731 723,263,904 699,991,879 Total ADB 1731 (B) 2,617,218,964 -, ,b9,391,'. Khulna -Ishwardi Transmission Line- L & T 1885 - Khulna Ishwardi Transmission Line-(TATA Power) 1885 1,114,656,086 1.,19'.919,710 Ashuganj-Sirajganj Transmission Line -(LG & Sejon) 1885 1,332,346,580 1.?32.346.S.O0 Ashuganj-Sirajganj ABB Ltd. 1885 186,232,208 136 2 208. Ishwardi-Baghabari-Sirajgonj-Bogra-BHEL 1885 779,228,281 7228.281 Gallamari 132/33 KV GIS S/S Cons. & 132 KV TL Cons. 1885 477,789,256 477, 719256 Shunt Compensation Phase-1 1885 214,157,758 2].0 .r 84 Exchange rate fluctuation loss/(gain) 1885 1,125,400,137 1.(,?17 C 064 Total ADB 1885 (C) 5,229,810,306 5,293,544,684 National Load Dispatch Centre 2039 2,009,002,945 16 5)90. 10 Exchange rate fluctuation loss/(gain) 2039 520,987,040 499,205.345 Total ADB 2039 (D) 2,529,989,985 2,664,295,525 Meghnaghat - Aminbazar 400 KV TL 2332 2,770,384,288 2.770.381. 28 Aminbazar Old Airport 230 KT TL 2332 4,602,794,915 .1.601791.915 3 Transmission Line NCC 2332 1,034,521,006 1.034.,521,006 3 Transmission Line-HG Power 2332 753,634,898 753,6 24,898 Exchange rate fluctuation loss/(gain) 2332 1,071,315,317 980.492,9A76 Total ADB 2332 (E) 10,232,650,424 10,141,828,082 Bangladesh India Grid Interconnector 2661 8,973,642,077 8.973.62 077 Exchange rate fluctuation loss/(gain) 2661 394,512,361 311. 363 (61 Total ADB 2661 (F) 9,368,154,438 9,285,005,138 GNDP in Eastern Region 2966 6,300,361,186 5 681 431 3?5 Aminbazar-Mawa-Mongla 2966 95,938,478 57.616.202 Exchange rate fluctuation loss/(gain) 2966 535,621,110 .180,257.657 Total ADB 2966 (G) 6,931,920,774 6,219,305,884 ADB Loan(400/230/132kv GNDP) 3087 1,716,393,786 1.664.411.425 Exchange rate fluctuation loss/(gain) 3087 72,727,638 57,252,692 Total ADB 3087 (H) 1,789,121,423 1,721,664,117 ADB Loan(400/230/132kv GNDP) 3350 2,559,928,528 769,566,234 Exchange rate fluctuation loss/(gain) 3350 30,493,515 13,756,117 Total ADB 3350 (1) 2,590,422,044 783,322,351 ADB Loan(HVDC 2nd Block) 3298 2,749,533,708 2,690,715,274 Exchange rate fluctuation loss/(gain) 3298 152,959,833 127,067.515 Total ADB 3298 (J) 2,902,493,542 2,817,782,819 ADB Loan(HVDC 2nd Block) 3299 6,909,881,631 5.775,111,149 Exchange rate fluctuation loss/(gain) 3299 132,407,424 140.581,265 Total ADB 3299 (K) 7,042,289,055 5,915,692,713 ADB Loan(400/230/132kv GNDP) 3522 1,464,742,287 Exchange rate fluctuation loss/(gain) 3522 5,537,576 - Total ADB 3522 (L) 1,470,279,863 - ADB Loan(South Western Trans Exp) 3683 588,648,810 Exchange rate fluctuation loss/(gain) 3683 - - Total ADB 3522 (M) 588,648,810 - Total ADB loan (A+B+C+D+E+F+G+H+I+J+K+L+M) 54,714,263,071 48,974,530,674 The above loans are repayable within 16 years to 25 years with 5 years grace period. POWER GRID COMPANY OF BANGLADESH LTD. 1 Notes to the fnancdal statements For the year ended 30 June 2019 Loan no. O.6.x019 30.06.2018 14.1.1 Repaid during the year (LhI) (BDT) Substation extension-Mirpur 1505 47.262 507 Mymensingh Power Station and Transmission Line 1505 4 . 262 07 Meghnaghat Associated TLP 1505 94,525,014 - Substation Aminbazar 1731 35,444,585 70,889,170 (Khulna-Ishwrdi) L & T 1885 85,263,624 127,895,436 Shunt Compensation Project 1885 24,832,827 23,838,204 NLDC 2039 156,087,235 76,461,968 396,153,285 393,609,792 14.2 GoB loan Balance as at 01 July 21,105,049,433 169.,5223 Current Portion of Debt Add: Received during the year 8,985,890,000 -1,90,007,71- 30,090,939,433 21,386,905,942 Less: Refunded during the year (note 14.2.1) (425,659,667) (281.S½.6.50'1 Balance as at 30 June 29,665,279,767 21,105,049,433 Loan details are as follow: 1) Comilla-Meglinaghat-Rampura & Meghnaghat-Haripur-203 KV Transmission Line 86,269,990 iG 269,WU 2) Hasnabad-Aminbazar-Tongi Transmission Line 76,476,675 1."77',00 3) Kabirpur-Tangail-Sirajgonj Transmission Line 25,645,120 3.46..80 4) Ishwardi-Baghabari-Sirajgonj-Bogra Transmission Line 612,804,828 612,804,32s 5) Khulna-Ishwardi-Bogra-Barapukuria Transmission Line 385,359,607 642,266,005 6) Ashugonj- Jamuna Bridge-Serajgonj (Inter Connector Line) 169,910,000 203,892,000 7) NLDC Project-National Load Dispatch Centre 366,247,496 390 6tS3.9r96 8) Three Transmission Line 525,247,450 5, 247. 150 9) Aminbazar-Old Airport 230 Kv Associated Substation 924,418,863 92--.418.861 10) Shunt compensation at Grid Substation 59,121,686 63 306 76 11) Meghnaghat-Aminbazar 400 Kv Transmission Line 703,887,136 70 887.136 12) Transmission efficiency improvement 158,766,733 1c,8.766.733 13) Siddirgonj Maniknagar 230 Kv T/L Cons. Project 208,205,501 208.205.501 14) BD - India Grid Interconnection Project 1,666,584,784 1,666,584,784 15) Bibiana Comilla (North) 230KV TLP 924,000,000 924,000,000 16) Haripur 360mw Combined Cycle Power Plant 167,324,499 16.,324,4Io 17) 132 KV GNDP Eastern Region 672,958,958 672,958.958 18) Ashugonj Bhulta 400 KV TLP 2,391,278,412 2.373,67.412 19) Grid Interconnection between Tripura (India) 624,780,000 624 780.000 20) HVDC 2nd Block 2,152,546,378 1 917.477.507 21) Bibiana Kaliakoir 400kv & Fenchugonj Bibiana 230kv T/L Project 3,020,264,696 3.020.2614.696 22) NPTND 2,120,000,000 820,000,001) 23) 400/230/132kv Grid Network Development 504,200,000 204.000.000 24) TLF(Project-2) 949,782,673 9-19.78.673 25) Enhancement of Capacity(ECGSTLP) 536,000,000 456,000,000 26) Feasibility Study to Connect Nuclear Power Plant with National Grid 35,474,516 35 474.5113 27) Dhaka-Chittagong MPGS Project(MMM) 87,133,200 37.133.200 28) Aminbazar-Mawa-Mongla 400kv TL Project 413,210,000 139,710,000 29) Patukhali(Payra)-Gopalgonj 400kv TL Project 6,028,240,000 1. 812. 240. 000 30) Energy Efficiency in Grid Based Power Supply Project 394,661,231 242 661,231 31) Patuakhali-Payra 230kv TL project 1,043,800,000 99.810,000 32) Power Grid Network strengthening project-G to G 176,000,000 16.000,000 33) Bakerganj-Barguna 132kv and Barguna 132/33kv S/S construction project 226,271,830 40.000.000 34) Bharamara-Baharampur 2nd 400kv double circuit TL project 393,003,167 32.000.000 35) DTIMEZRPS Mirsharail project 339,200,000 33.200.000 36) Western Grid Network Development project 480,000,000 120.000,000 37) Materbari Madunaghat 400 Kv TLP 16,204,336 - 29,665,279,766 21,105,049,433 Add: Current portion of long term loan _ - 29,665,279,766 21,105,049,433 140 Anual Repoit 208 18 2019 lumar11ls Lr evrturm'IRs: POWER GRID COMPANY OF BANGLADESH LTD. Notes to the finandal statements For the year ended 30 June 2019 Comilla-Meghnaghat-Rampura & Meghnaghat-Haripur-203 (bull) KV Transmission Line Hasnabad-Aminbazar-Tongi Transmission Line 15,295,333 30,590,666 Kabirpur-Tangail-Sirajgonj Transmission Line 12,822,560 6,411,280 Khulna-Ishwardi-Bogra-Barapukuria Transmission Line 256,906,398 128,453,199 Ashugonj- Jamuna Bridge-Serajgonj (Inter Connector Line) 33,982,000 33.912 000 HVDC 2nd Block 14,531,128 17, 112 Shunt Compensation Project 4,185,080 4.185,00 NLDC 24,416,500 24,416,500 132kv GNDP Project - 3,987,600 Ashuganj-Bhulta 400kv TLP - 33,557,149 Transmission efficiency improvement project (TEI) - 14,917,154 Energy Efficiency in Grid Based Power Supply Project - 1,338,769 Bakerganj-Barguna 132kv and Barguna 132/33kv S/S construction project 41,728,170 - Bharamara-Baharampur 2nd 400kv double circuit TL project 19,996,833 Materbari Madunaghat 400 Kv TLP 1,795,664 - 425,659,667 281,856,509 14,3 Assgne loan The break-up of the above loan is as follows: A. Assigned loan from BPDB Balance as at 01 July 795,147,662 1,705. 943 235 Add: Current portion of the debt - - Add: Exchange rate fluctuation loss/(gain) (745,353,023) (621,549,629) Addition/adjustment during the year - 1289,245,944, 49,794,639 795.147.662 Balance as at 30 June (A) 49,794,639 795,147,662 B. Assigned loan from DPDC(DESA) Balance as at 01 July 3.599,172.321 3 5172.321 Addition/adjustment during the year - - Balance as at 30 June (B) 3,599,172,321 3,599,172,321 Balance as at 30 June grand total (A+B) 3,648,966,960 4,394,319,983 Above loans have been taken over from BPDB and DPDC(DESA) along with the fixed assets at written down value in different phases, the break-up of which is given below: 1. A.- ne I n rn BPI-B- 1st Phase-Comilla (North) and Haripur 230 KV Sub-station and Haripaur-Ghorashal 230 KV 45 KM. Transmission Line. 2nd Phase-Hasnabad and Tongi 230/132 KV. Sub-station and Hasnabad-Haripaur 230 KV 16.5 KM Transmission Line. 3rd Phase - Grid Maintenance Division viz Dhaka (North) Dhaka (South), Dhaka (East), Aricha, Comilla and Mymensingh Telecommunication Division, Siddhirgonj, System Protection and Metering Division, Dhaka Grid Circle office, Dhaka. 4th Phase - 230 KV and 132 KV Transmission Line, Sub-station of Chittagong and Sylhet Division. 5th Phase - 230 KV, 132 KV, and 66 KV Transmission Line and Grid Sub-station of western part of the Country. 6th Phase - 230 KV and 132 KV Transmission Line and Grid Sub-station of western part of the Country. m n giNu rm ira iP'qTl Anni al Repot 2018 019 141 POWER GRID COMPANY OF BANGLADESH LTO: Notes to the financial statements For the year ended 30 June 2019 2. Asgned loan from DPDC(DESA): 1st Phase - Bhulta, Joydevpur and Manikgonj 132/33 KV. Sub-station & related Transmission Line. 2nd Phase - Kallyanpur and Mirpur 132/33 KV. Sub-station & related Transmission Line. During the year, the Company provided for interest @4% p.a. on all the assigned loans. It is noted that the subsidiary loan agreements of the above loans with the Government are still with BPDB and DPDC(DESA). So, the repayments are made through BPDB and DPDC(DESA). SIDA loan(ABB) SIDA (Swedish International Development Co-Operation Agency) loan is recorded as and when disbursement request is sent to SIDA's designated bank through Economic Relations Division (ERD) for making payment directly to the contractors/suppliers account as per SIDA Loan agreement and disbursement procedure. 30. 06.20:9 3006.2018 (DT) (BDT) Balance as at 01 July 273,987,868 310,763,409 Received during the year - Less: Paid during the year (note 14.5.1) (49,038,816) (24,519,408) Exchange rate fluctuation loss/(gain) (7,327,477) (12,256,134) Balance as at 30 June 217,621,575 273,987,868 14.4.1 Paid during the year Khulna-Ishurdi-Bogra-Baropukuria 230 kv TL Project 49,038,816 24,519,408 49,038,816 24,519,408 14.5 KFW loan KFW (Kreditanstalt Fur Wiederaufbau) loan is recorded as and when disbursement request is sent to KFW for making payment directly to the contractor/suppliers account as per KFW Loan agreement and disbursement procedure. Name of the transmission line WZNDP, IBSB, KIBB, TEI & EEGBPS Project KFW loan Balance as at 01 July 3,379,242,577 2,617,867,232 Add: Received during the year 1,019,288,749 665,213,320 Less: Paid during the year (note 14.6.1) (50,246,865) (50,246,865) Exchange rate fluctuation loss/(gain) (55,012,158) 146,408,890 Balance as at 30 June 4,293,272,303 3,379,242,577 14.5.1 Paid during the year Bogra S/s ABB Germany WZP 50,246,865 16,748,955 Khulna-Ishurdi-Bogra-Barapukuria TLP - 33,497,910 14.6 Danida oan 50,246,865 50,246,865 Danida (Danish International Development Agency) loan is recorded as and when disbursement request is sent to Danida's designated bank through Economic Relations Division (ERD) for making payment directly to the contractor/suppliers account as per Danida loan agreement and disbursement procedure. Name of the transmission line Danida loan Joydevpur-Kabirpur-Tangail Balance as at 01 July 846,286,898 854,201,773 Received during the year - Less: Paid during the year (note 14.7.1) (125,725,880) (62,862,940) Exchange rate fluctuation loss/(gain) (15,750,292) 54,948,065 Balance as at 30 June 704,810,726 846,286,898 14.61 Paid during the year Joydebpur-Kabirpur-Tangail Project 125,725,880 62,862,940 125,725,880 62,862,940 142 Ainual Repot 2018-2019 1aMr Ufm ia ra Ra: POWER GRID COMPANY OF BANGLADESH LTD. Notes to the financdal statements For the year ended 30 June 2019 This loan was received from Dhaka Palli Bidyut Shamity-1 for purchasing land, development of land and construction of 2X75 MVA 132/33 Kv Sub-Station. The loan amount is maximum BDT 76 crore. The repayment of principal and interest @ 5% will be made in 10 years from the date of commercial tenderization at semi-annual equal installment. 30062019 30.06.2018 (BDT) (BDT) Balance as at 01 July 467,042,500 535,442,500 Received during the year (14.7.1) - - Less: Paid during the year (14.7.2) (68,400,000) (68,400,000) Balance as at 30 June 398,642,500 467,042,500 14.7.1 Received during the year Kodda 1321