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POWERGRID

All Eps Dividend Board Agm Q1 Q2 Q3

POWERGRID 24-Jan-2017

(Q2 Un-audited): EPS was Tk. 0.71 for October-December, 2016 as against Tk. 0.69 for October-December, 2015; EPS was Tk. 1.73 for July-December, 2016 as against Tk. 1.30 for July-December, 2015. NOCFPS was Tk. 7.75 for July-December, 2016 as against Tk. 4.76 for July-December, 2015. NAV per share was Tk. 82.47 as of December 31, 2016 and Tk. 72.57 as of December 31, 2015.

POWERGRID 19-Jan-2017

As per Regulation 16(1) of the Dhaka Stock Exchange (Listing) Regulations, 2015, the Company has informed that a meeting of the Board of Directors will be held on January 23, 2017 at 6:00 PM to consider, among others, un-audited financial statements of the Company for the Second Quarter (Q2) period ended on December 31, 2016.

POWERGRID 08-Jan-2017

(continuation news of POWERGRID): The Company carries an unfunded gratuity scheme for its employee and provision was made as per company gratuity policy for which no actuarial valuation was performed which is required to be done as per BAS 19. (end)

POWERGRID 08-Jan-2017

(continuation news of POWERGRID): to BPDB. These amounts could neither be confirmed from BPDB directly nor supported with the account statement of BPDB. 6. As disclosed in Note # 15, the company has reported an amount of BDT 1,735,868,760.00 (addition during the year amounting to BDT 681,918,278) as provision for gratuity. (cont. 8)

POWERGRID 08-Jan-2017

(continuation news of POWERGRID): the said amount should be recognized as loss in Statement of Profit or Loss and Other Comprehensive Income. Due to this misrepresentation, income for the period has been overstated by BDT 1,100,215,757.00. 5. As disclosed in Note#20.4, current account with corporation and other offices includes BDT 114,745,358.00 and BDT (2,422,567.00) on account of BPDB and project-1 respectively as on 30 June 2016. Also as per Note#13.3(A), the Company owes BDT 4,339,480,698.00.(cont. 7)

POWERGRID 08-Jan-2017

(continuation news of POWERGRID): mentioned amounts, the earnings per share (EPS) and net asset value (NAV) for the year 2015-2016 would have adversely been affected to that extent. 4. As disclosed in Note #2.1, the company has reported an amount of BDT 1,100,215,757.00 as addition of PPE arises from exchange rate fluctuation related with the outstanding principal amount of loan for the year ended 30 June 2016. As per BAS 21: Effects of Changes in Foreign Exchange Rates, (cont. 6)

POWERGRID 08-Jan-2017

(continuation news of POWERGRID): and optical fibercharges. It includes receivable from DPDC and DESCO amounting to BDT 857,867,261.00 and 267,881,465.00 respectively being carried forward since 2008-2016, which includes disputed amounts with the respective companies (disputed amount with DPDC BDT 274,407,626.00 and DESCO BDT 3,106,231.00). As the mentioned disputed amounts, in our opinion, the company is very unlikely to receive the amounts in full. As provisions were not made for the above (cont. 5)

POWERGRID 08-Jan-2017

(continuation news of POWERGRID): maintained properly, movement of inventories was not recorded property and we could not find annual inventory valuation report for Barisal, Bogra, Ishwardi and Mymensingh GMD offices. As a result we are unable to confirm the physical existence of inventories to confirm the physical existence as well as their value as on 30 June 2016. 3. As disclosed in Note #8, the company has reported an amount of BDT 2,463,747,065.00 as receivable from transmission/wheeling (cont. 4)

POWERGRID 08-Jan-2017

(continuation news of POWERGRID): impairment test for PPE and no policy regarding impairment was found, which a non-compliance with BAS 16 is : Property, Plant & Equipment (PPE). 2. As disclosed in Note # 7, the Company has reported an amount of BDT 808,254,057 as inventories. We have visited 20 Grid Maintenance Division (GMD) offices involving the inventories value amounting to BDT 608,057,048.00 which is 75% of total inventories. During our visits, we find that inventory register was not (cont. 3)

POWERGRID 08-Jan-2017

(continuation news of POWERGRID): identification number etc. Valuation and physical verification of plant and machinery transferred from Bangladesh Power Development Board (BPDB) and Dhaka Power Distribution Company (DPDC) was not conducted. No physical verification of PPE was conducted either at the year-end or any time during the period under audit. We are unable to confirm the authenticity as to the physical existence of PPE as on 30 June 2016. The Company has never performed (cont. 2)

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