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POWERGRID

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POWERGRID 20-Nov-2014

(Continuation of News of POWERGRID): 6.As disclosed in Note # 15 to the financial statements, the gratuity scheme operated by the company is unfunded and provision is provided as per Company policy. But no actuarial valuation has been done as per BAS 19. (end)

POWERGRID 20-Nov-2014

(Continuation of News of POWERGRID): 5.As disclosed in Note # 20 to the financial statements, liabilities for other finance include an amount of Tk. 3,765,000 owed to BPDB, and as disclosed in Note # 20.4, liabilities for other finance include account current with corporations and other offices amounting to Tk. 110,512,421 comprising Tk. 112,434,988 and Tk. (2,422,567) on account of BPDB and Project-1 respectively as on 30 June 2014. As disclosed in Note # 13.3, Note # 13.4(A) and Note # 17 PGCBL owes to BPDB Tk. 8,003,670, Tk. 8,006,716,130 and Tk. 1,626,835,513 respectively. The balances could not be confirmed from BPDB. (cont. 7)

POWERGRID 20-Nov-2014

(Continuation of News of POWERGRID): Repair and maintenance charge receivable from DESA is Tk. 104,722,014 which is being carried forward from 2010. But the company is yet to provide provisions for the amounts according to the report. As for the other disputed amounts, in our opinion the company is very unlikely to receive the amounts in full. If provisions were provided for the above mentioned amounts the EPS for the year 2013-14 would have adversely been affected. (cont. 6)

POWERGRID 20-Nov-2014

(Continuation of News of POWERGRID): The company has been following the policy of capitalizing or deducting such exchange rate fluctuation loss /gain from Property, plant and equipment from the year 2010-2011 which is a non-compliance of the above provision of BAS-21. 4. As disclosed in Note # 8 to the financial statements, the Company has reported an amount of Tk. 1,420,770,057 as receivable from transmission/wheeling and optical fiber charge. It includes receivables from DPDC, DESCO and WZPDCL Tk. 464,799,716.24, 195,926,954 and Tk. 103,544,777 respectively carried forward since 2007 which includes disputed amount with the respective companies (disputed amount with DPDC Tk. 174,594,248.24, DESCO Tk. 3,480,438 and WZPDCL Tk. 973,755). (cont. 5)

POWERGRID 20-Nov-2014

(Continuation of News of POWERGRID):However, the company has hired the services of a firm of Chartered Accountants for the valuation in September 2011 which has now cancelled due to failure to complete the assignment in due time. 3. Exchange rate fluctuation loss amounting to Tk. 58,030,166.38 relating to the outstanding principal amount of loan for the year ended 30 June 2014 of the completed projects that are now in operation has been added to Property, plant and equipment instead of recognizing such loss in Profit and Loss Account. Para-28 of Bangladesh Accounting Standards (BASs-21) requires that the said exchange rate fluctuation loss shall be recognized in Profit and Loss account. (cont. 4)

POWERGRID 20-Nov-2014

(Continuation of News of POWERGRID): 2. As disclosed in Note # 7 to the financial statements, the Company has reported an amount of Tk. 864,243,630 as inventories. We have visited 8 GMD's out of 31 as per the TOR of appointment involving the inventories value amounting to Tk. 270,970,906 where we found that movement of inventories is not properly recorded in the accounts maintained. As a result, physical existence of inventory could not be verified. We had no other practical alternative auditing procedure that we could apply to authenticate the physical existence as well as the value thereof as on 30 June 2014. (cont. 3)

POWERGRID 20-Nov-2014

(Continuation of News of POWERGRID):We had no other practical alternative auditing procedure that we could apply to authenticate the physical existence as well as the value thereof as on 30 June 2014. Bangladesh Accounting Standards (BASs) 36 requires impairment test of property, plant and equipment and necessary disclosure in this regard. The Company has no laid down policy and procedure in regard to impairment test, and no such test was carried out. However, the company has hired the services of a firm of Chartered Accountants for the valuation in September 2011 which has now cancelled due to failure to complete the assignment in due time. (cont. 2)

POWERGRID 20-Nov-2014

(Qualified Opinion): "Syful Shamsul Alam & Co", Auditor of the company has given the following qualified opinion in the audit report of the company for the year ended on 30 June 2014:" Basis for Qualified Opinion: 1.The carrying amount of property, plant and equipment as reported in the Balance Sheet is Tk. 77,249,112,417 Proper register for property, plant and equipment is not maintained by the company. Valuation of plant and machinery transferred from Bangladesh Power Development Board (BPDB) and Dhaka Power Distribution Company (DPDC, previously DESA) was not done properly. No physical verification of its property, plant and equipment as at 30 June 2014 or any time during the period under audit was done. (cont. 1)

POWERGRID 20-Nov-2014

Trading of the shares of the Company will be allowed only in the Spot Market and Block/Odd lot transactions will also be settled as per Spot settlement cycle with cum benefit from 23.11.2014 to 24.11.2014. Trading of the shares of the Company will remain suspended on record date i.e., 25.11.2014.

POWERGRID 13-Nov-2014

(Q1): As per un-audited quarterly accounts for the 1st quarter ended on 30th September 2014 (July'14 to Sep'14), the Company has reported net profit after tax of Tk. 118.06 million with EPS of Tk. 0.26 as against Tk. 488.11 million and Tk. 1.06 respectively for the same period of the previous year.

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