ANNUAL REPORT 2010

DHAKA ELECTRIC SUPPLY COMPANY LIMITED

DESCO Map
Tongi (West)

Tongi (East)

Uttara

Dakshin Khan

Purbachal (Proposed)

Pallabi

Kafrul Kallayanpur Gulshan

Baridhara

Contents

NOTICE OF THE ANNUAL GENERAL MEETING MILESTONES VISION, MISSION AND CORPORATE PHILOSOPHY BOARD OF DIRECTORS CORPORATE DIRECTORY SERVICE CENTERS TECHNICAL AND COMMERCIAL HIGHLIGHTS PERFORMANCE GRAPHS DIRECTORS' REPORT EVENTS HIGHLIGHTS AUDITORS' REPORT FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

02 04 05 06 08 09 10 12 14 30 32 34 40

DESCO Annual Report 2010

01

Banani Model Town. Road # 24. Block # K.1213. (DESCO) House # 3. Dhaka .Notice of the 14th Annual General Meeting Dhaka Electric Supply Company Ltd. 02 DESCO Annual Report 2010 .

M. may appoint a proxy on his/her stead.m. 2010. 2010 Registered Office House # 3. at Bashundhara Convention Center. the 3rd January.DHAKA ELECTRIC SUPPLY COMPANY LTD. 2. DESCO Annual Report 2010 03 . 4. To elect Directors. 2. shareholders are requested to submit their queries on the Directors' Report and/or the Audited Financial Statements for the year ended June 30. Notice is hereby given that the 14th Annual General Meeting of Dhaka Electric Supply Company Ltd. Baridhara.1213 Notes: 1. By order of the Board. A. must be submitted at the Registered Office of the Company not later than 48 hours before the time fixed for the meeting. at the Registered Office of the Company at least 3 (three) working days before the day of Annual General Meeting. To receive. A member eligible to attend and vote at the Annual General Meeting. The proxy form attached with this report. Dhaka . (DESCO) will be held on Monday. Block # K Banani Model Town. 2010. For the sake of convenience. Bashundhara Residential Area. 3. Shareholders of the Company are hereby requested to kindly make it convenient to attend the Meeting in time. 4. 2010. R oad # 24. signed and stamped. Admission to the hall will be strictly on production of the attendance slip sent with the Annual Report. To appoint Auditors for the FY 2010-11 and fix their remuneration. 2010. 2011 at 11:00 a. To declare Dividend for the year ended June 30. Nurul Huda Company S ecretary Date: December 12. consider and adopt Directors' and Auditors' Reports and the Audited Financial Statements of the Company for the year ended June 30. 3. H. Dhaka to transact the following business: Agenda 1. if any. Shareholders whose names appeared in the CDS/Company's Register on the record date of 11/11/2010 will be eligible to attend the meeting and will be entitled for dividend for the year ended June 30. duly filled in.

2005 Inauguration of Prepaid Metering System June 18. 1996 Certificate of Incorporation 1996 December 19. 2007 Distribution L icense from BERC 2008 November 11. 2006 Company goes public March 03. 2003 Take over of Gulshan Circle from erstwhile DESA February 15. 2007 Take over of Tongi Pourashava Area 2007 November 15. 2008 Inauguration of Data Acquisition System 04 DESCO Annual Report 2010 . 1998 1998 2003 2004 2005 2006 Take over of Mirpur area from erstwhile DESA and commencement of commercial operation April 09. 1996 First Board Meeting September 24.Milestones November 03. 2004 Establishment of Sales & Distribution (S&D) Division September 07.

ice c DESCO Annual Report 2010 05 . Corporate Philosophy Serv exellence with integrity and corporate social responsibility. Mission Serv to the utmost satisfaction of the consumers through reliable and ice uninterrupted power supply and prov alue for money. Prov congenial ide v ide working env ironment for the employees.Vision To be a role-model electric supply company in the region using most dependable technologies and be a dev lopment partner in the continuous e welfare of the society.

Govt. Shahjahan Siddiqui. of the People’s Republic of Bangladesh Saleh Ahmed Managing Director up to 19/08/2010 Manzur Rahman Managing Director (In-charge) & Director (Engineering) from 20/08/2010 06 DESCO Annual Report 2010 . Bir Bikram Chairman Former Secretary.Board of Directors Chairman and Managing Director Md.

Directors Md. Power Division Ministry of Power. Justice & Parliamentary Affairs Prof. Energy & Mineral Resources Begum Salma Benthe Kadir Joint Secretary (Drafting-4) Legislative & Parliamentary Affairs Division Ministry of Law. BUET S R Akhtar Superintending Engineer (Retd. Chittagong Md. Fazlul Hoque Member (Finance) Bangladesh Power Development Board Foiz Ahamed Joint Secretary (Admin).) Erstwhile Dhaka Electric Supply Authority (DESA) Engineer Mohammad Harun Proprietor Regal Enterprise. M. Dr. M. Abdus Sobhan Managing Director Dhaka Power Distribution Company Limited (DPDC) DESCO Annual Report 2010 07 . Shahidul Hasan Department of Electrical and Electronic Engineering.

Bank Asia Limited 07. Standard Bank Limited 28. Janata Bank Limited 16. Standard Chartered Bank Limited 30. Jamuna Bank Limited 17. Dhaka Bank Limited 12. Premier Bank Limited 25. BRAC Bank 09. The Hongkong and Shanghai Bank Corporation Limited (HSBC) 08 DESCO Annual Report 2010 . First Security Islami Bank Limited 14. Al-Arafa Islami Bank Limited 04. National Bank Limited 21. Mercantile Bank Limited 18. H. ICB Islami Bank Limited 23. Arab Bangladesh Bank Limited 02. One Bank Limited 22. Sonali Bank Limited 33. Rupali Bank Limited 27. Bangladesh Krishi Bank 06. 10. Trust Bank Limited 34. National Credit & Commerce Bank Limited 20. Social Islami Bank Limited 32. M. Prime Bank Limited 26. The City Bank Limited 35. Southeast Bank Limited 31. Agrani Bank Limited 03. Bangladesh Commerce Bank 08. IFIC Bank Limited 15.A. Bank Alfalah Limited 05.MANAGING DIRECTOR (In-charge) & DIRECTOR (Engineering) DIRECTOR (Procurment. Nurul Huda Rahman Mostafa Alam & Co. Mutual Trust Bank Limited 19. Eastern Bank Limited 13. Pubali Bank Limited 24. Finance & Accounts) COMPANY SECRETARY TAX ADVISOR LEGAL ADVISOR AUDITORS Monzur Rahman Qudrate Khuda A. Shahjalal Islami Bank Limited 29. City Bank N. Dutch Bangla Bank Limited 11. Chartered Accountants Sheikh & Chowdhury Aziz Halim Khair Choudhury Chartered Accountants Corporate Directory BANKERS 01.

Company Service Centers CORPORATE OFFICE House # 3. Dhaka 1216 Phone: 9014846.org. Uttara. Fax: 8023984 E-mail: kallyanpur.bd COMPLAIN: 9812398 Squib Road. Gazipur Phone: 9815921 E-mail: tongiwest.ssd@desco. Road #17 Block #C.org. Section #10.ssd@desco. Fax: 8019852 E-mail: kafrul. 8911260 Ext.bd COMPLAIN: 9815904 Squib Road. TONGI (EAST) 9.ssd@desco.desco. 8914265.bd COMPLAIN: 9001051 House #47.org. Fax: 8019852 E-mail: pallabi. Road # 24.org. Dhaka-1212 Phone: 8859493 (direct). Gazipur Phone: 9815901 E-mail: tongieast. BARIDHARA 6. Cherag Ali. KALLYANPUR Sales and Distribution (S&D) Divisions House #4. 9007709.bd COMPLAIN: 9001119 House #4.org.org.bd COMPLAIN: 8919574 Dag #3503/3504 Mollah Para. Mirpur. 101 E-mail: uttara. Dhaka . Dhaka 1216 Phone: 8021344. 222 E-mail: baridhara. GULSHAN 5. Road #2/A Block #J. DAKSHINKHAN 8. 8825759 Ext. Road #134. Road #17 Block #C.ssd@desco. KAFRUL 1. 8860341 Fax: 8854648 E-mail: info@desco. Mirpur.ssd@desco. Dhaka 1230 Phone: 8959145 (direct). Shahjalal Avenue Sector #6.bd mddesco@bdcom. Gulshan-1. UTTARA 7.org.ssd@desco.org.bd COMPLAIN: 9801080 3. Dhaka-1230 Phone: 8911289 E-mail: dakshinkhan. 9895117 Ext. Road #17 Block #C. Mirpur. Notun Bajar Baridhara.ssd@desco.org. Dakhinkhan. Cherag Ali. 101 E-mail: gulshan. Section #10. Section #10.1213 Telephone: 8859642. Dhaka 1216 Phone: 8052016 (direct). Dhaka Phone: 8855244 (direct).bd COMPLAIN: 9144714 House #4. Tongi.ssd@desco. Block # K Banani Model Town.bd COMPLAIN: 9895117 20/21.org.com Web: www.bd 2. 9002026. Tongi.ssd@desco.bd COMPLAIN: 9895045 House #1/A. TONGI (WEST) DESCO Annual Report 2010 09 . PALLABI 4.org.

Technical & Commercial Highlights 10 DESCO Annual Report 2010 .

19 10.72 7845.70 143.07 317.57 415842 22.79 98.80 600.10 1517.53 2474.74 16.80 208.22 4390.12 1671.00 262.98 13.52 2007-08 2573. Energy Import (MKWh.70 142.30 76.69 DESCO Annual Report 2010 11 .51 9888.73 2008-09 2742.37 1017. 33KV Underground Line (KM) 6. 33/11KV Sub-stations (No. LT Line 9.) 4.72 1591.00 3785 2005-06 16 620/868 397.00 1105.) 2.36 1897.40 2005-06 2023.44 104.69 10911. Maximum Demand (MW) 4.00 4106 2006-07 19 680/952 451.76 6151. Energy Sales (MTk.82 76.25 318.35 1473.37 347614 26.80 720. Consumer Nos.30 9.30 552.64 97.07 80.Technical 2003-04 1.20 8.00 1021.96 7117. 9.00 1250.25 76.39 1695.20 96.75 90.01 89.20 860.40 90. Ratio (%) 8.00 82.24 87.63 80.10 385037 21.31 5466.86 350.65 2673.55 6423.89 3999. Receivable/Sales (%) 1739.80 182.44 4497 2008-09 21 760/1064 545. Energy Import (MTk.I.07 1536.39 241964 64.48 2009-10 2933.80 182. System Loss (%) 6. Distribution Transformer (No.98 281960 38.52 1405.83 77.) 5.46 4946.92 259580 44.72 2006-07 2191.29 2293. Capacity of 33/11KV Sub-stations 3.88 4810 Commercial 2003-04 1.03 4902.80 184.84 959. Collection Ratio (%) 7.) 13 425/493 351.00 82.00 3594 2004-05 13 430/602 377.00 205.40 314.00 82.39 4563 2009-10 22 770/1078 622.24 2004-05 1842.00 82.00 446129 20.91 100.86 98.00 238.87 3775. 11KV Underground Line (KM) 8.32 19.) 3.20 910.01 7380.03 9094.09 16.25 4316 2007-08 21 760/1064 505.18 88.70 125.) 2. C. Energy Sales (MKWh. 11KV Overhead Line (KM) 7. 33KV Overhead Line (KM) 5.

295 258.Performance Consumer Mix Category Residential Industrial Commercial Others Consumer Number 393639 5979 36957 9554 (%) 88.28% 2.10% 49.67 3.15 1.15% 88.28 02.205 (%) 49.21% Residential Commercial Industrial Others Consumption Growth 1400 1300 1200 1100 1000 900 Residential Industrial Commercial Others 882 678 696 594 348 239 166 14 21 00-01 268 256 16 186 24 31 41 '02-03 104 29 '03-04 121 55 145 53 '05-06 167 61 '06-07 618 742 802 788 1316 1177 1064 984 1016 MKWh 949 800 700 600 500 400 300 200 100 0 209 70 '07-08 239 75 '08-09 259 83 '09-10 '01-02 '04-05 Fiscal Year 12 DESCO Annual Report 2010 .23% Residential Commercial Industrial Others Consumption Pattern Category Residential Industrial Commercial Others Consumption (MKWh) 1315.34 08.766 1016.67% 3.23 01.421 83.10 38.34% 8.02 9.02% 9.21 38.

44 10.86 YEAR 04-05 05-06 06-07 07-08 08-09 System Loss (%) 16.07 96.20 13.44 10.Load Growth MW 700 600 500 400 300 200 100 0 505 451 377 398 545 622 YEAR 04-05 05-06 06-07 07-08 08-09 MW 377 397 451 505 545 622 YEAR 04-05 05-06 06-07 07-08 08-09 09-10 09-10 Import & Sales MkWh 3500 3000 2500 2000 1500 1000 500 0 Import Sales 2574 1843 1536 2023 1696 2191 2293 1897 YEAR Import 2743 2475 2934 2674 04-05 05-06 06-07 07-08 08-09 MkWh 1843 1536 2023 2191 2574 2743 2934 1696 1897 2293 2475 2674 Sales YEAR 04-05 05-06 06-07 07-08 08-09 09-10 09-10 System Loss Percentage 20 16.40 101.01 99.64 15 16.31 5466 5306 6424 6207 7381 7706 9094 9095 2000 0 YEAR 04-05 05-06 06-07 07-08 08-09 9709 09-10 DESCO Annual Report 2010 13 .63 104.91 9.86 10 5 0 YEAR 04-05 05-06 06-07 07-08 08-09 09-10 09-10 Profit / (Loss) 2200 2000 1800 1600 1400 1200 1000 800 600 400 200 0 Percentage 2161 2072 2141 YEAR 04-05 05-06 Profit-Loss(MTk) 540 874 1261 2072 2141 2161 1261 06-07 874 540 04-05 05-06 06-07 07-08 08-09 09-10 07-08 08-09 09-10 YEAR Billing and Collection MTk.20 13.91 9.79 8.64 16.13 99.79 8. 12000 10000 8000 6000 4000 Sales Amount Collection Amount YEAR 04-05 05-06 06-07 10911 10775 07-08 08-09 09-10 9888 Ratio (%) 97.

I take great pleasure to welcome you on behalf of the Board of Directors to the 14th Annual General Meeting of Dhaka Electric Supply Company Limited (DESCO) and to place before you the Audited Accounts for the financial year ended on June 30. Shahjahan Siddiqui.Directors' Report Directors' Report to the Shareholders Md. 2010 along with the Auditors’ and the Directors’ Reports thereon. Bir Bikram Chairman Dear Shareholders. 14 DESCO Annual Report 2010 .

2010 with a maximum load demand of 622 MW. consumers service complaints have been reduced significantly. Mohakhali Jheel. However. the operational activities of DESCO at the field level commenced on September 24. cleaning service and transport service have also been outsourced. transmission and distribution. Recently “Purbachal Model Town” a Rajuk project.00 billion. For ensuring more consumer’s satisfaction.46. the operational area of DESCO was expanded through inclusion of Gulshan Circle (comprising Gulshan. recording a growth of 19. On the other hand. 1998 with the taking over of the electric distribution system of Mirpur area (comprising Kallayanpur. the total consumer strength stands at 4. In order to get these jobs done. Rokeya Sarani. Growth of the Company The growth of the Company can be better conceived from the figures and graphs presented at page no 11 of this Report. Outsourcing of some Operational Activities The major technical activities like scheduled maintenance of the Substations and switching stations.760 million. 2003 and Tongi Pourashava Area in March. It appears from these figures and graphs that starting from a consumer base of 71.000 nos with load demand of 90 MW in 1998. 2007. 5. commercial support activities like meter reading.The Company You are aware that as a part of on-going Power Sector Reforms by way of unbundling the Power Sector and increasing efficiency in the area of generation. service disconnection of the defaulter consumers. Territory The area under service of the Company is about 220 square kilometers which comprises the areas bounded by the Mirpur Road. 8. have been outsourced. In the subsequent years of successful operation and performance. Pallabi Sales & Distribution Division) from the erstwhile Dhaka Electric Supply Authority (DESA) with a consumer strength of 71. Kafrul. situated on the east side of the Balu River and adjacent to Dakshinkhan area. Dakshinkhan Sales & Distribution Division) in April. have also been outsourced. DESCO engaged several experienced contractors through competitive bidding process. (DESCO) was created as a distribution company in November 1996 under the Companies Act 1994 as a Public Limited Company with an Authorized Capital of Tk. DESCO Annual Report 2010 15 . 7. installation of new connection meters. trouble shooting & breakdown maintenance. At the same time the shareholders equity increased from Tk. With the proper maintenance of the distribution system. Management The Company is run by a management team headed by the Managing Director under the guidance of the Board of Directors with a view to run it efficiently and economically with optimum overhead cost and manpower.161 and a load demand of 90 MW. Meanwhile. With the expansion of operational areas followed by increase in number of consumers and system load.000 nos of consumers as of December 2010. decision has been taken to create 3 (three) more Sales & Distribution Divisions in greater Mirpur area in order to ensure effective control and supervision of field operations in the area. Agargaon Road. line & equipment maintenance etc.. distribution of monthly electricity bill. Other logistic support services like security service. Progati Sarani.129 as of 30th June.320 million last year to Tk. Rampura Jheel connected with the Balu River in the South and East and the Turag River in the West and areas under Tongi Pourashava in the North. overhead line maintenance. changing of old or unserviceable meters etc. Dhaka Electric Supply Co. the Company has grown to cater about 4. Uttara. DESCO reorganized its activities into 9 (nine) Sales & Distribution (S&D) Divisions.67%.46. New Airport Road. the procedure for new connection has been simplified and efforts have been made to further reduce the average time now taken. has also been included under the operational area of DESCO. Today. handling of the customer service complaints. Mymenshing Road. Baridhara. Ltd. house wiring inspection.

2. a Project with the title “Strengthening DESCO’s Electric Distribution Network” with Project cost of Tk.38 km O/H 29. of 11/0.66 km c) Installation of Distribution Transformers As many as 203 nos. The Project work is scheduled to be completed by June. 270.00 million. 229. 2012. . 3-Phase 200KVA & 38 nos. New . New .30 million will be financed by GOB.850 nos of new consumers in greater Mirpur area. is also in the implementation stage. 4.810 Nos 212 Nos 02 Nos Development Activities Major development programs implemented during the financial year 2009-10 are highlighted below: a) Installation of Substation Installation. Tk.250 nos of new consumers in the Gulshan Circle.49 km ii.45 km Distribution L L : 0. The project will result in augmentation of Sub-Station capacity of DESCO by 120 MW to facilitate in providing electric connections to 43. 5.559. 2010 the physical progress achieved was 54%while financial progress achieved was 46%The completion of the project will result in augmentation of . Sub-Station capacity of DESCO by 210 MW and facilitate in providing electric connections to 94.049 KM 22 Nos 770/1078 MVA 622 MW 53.4 Kv ine T i. testing and commissioning of a 20/28MVA Transformer was completed at Mirpur Old S/S replacing the damaged 10/14MVA Transformer.78.59.859. 2012. The Project work is scheduled to be completed by June. is in the implementation stage.4 Kv ine T i. Renovation – 28.20 million.53 km Distribution L H: 11Kv & 11/0. b) Expansion & Up-gradation of Distribution Line Expansion and up-gradation of distribution network by: Medium Voltage (Source) L 33 Kv U/G ine: i.67 million to be financed by DESCO and the rest to be financed by ADB against o L an No: 2332-BAN under the scope of “ Sustainable Power Sector Development Program-II (SPSDP-II)” of ADB. Major on-going Projects to be completed by June. Tk. 1.949. 1-Phase distribution transformers were installed.149.55 million to be financed by DESCO and the rest to be financed by ADB against L an No: 2332-BAN under the scope of o “Sustainable Power Sector Development Program-II (SPSDP-II)” of ADB.20. New . the physical progress achieved was 54% .4Kv.13 km U/G & ii. Up to June. of which Tk. of which Tk.84 % 4. while financial progress achieved was 44% completion of the .Infrastructure Particulars Source line Distribution line No of substation Installed capacity Max demand L ad factor o Distribution Transformer No of feeder 132/33 KV Grid SS As of June 2010 291 KM 3. 2010. Another project with the title “Upgrading and Expanding Distribution System in Gulshan Circle” with Project cost of Tk. 2012 In order to strengthen power supply facilities in greater Mirpur area. Renovation – 10. Up to June. 16 DESCO Annual Report 2010 .26 million will be financed by GOB.

The various options are under active consideration of DESCO to install a 200 MW Power Plant. DESCO has prepared a Plan to cater to this increasing load demand. Power Generation To overcome the prevailing power crisis in Bangladesh. the Government has taken up the policy to generate adequate power through different ways like IPP. Up-gradation of some of the existing Sub-Stations will also be required. This new township has been decided to be included in DESCO’s operational area.35 MVA by the year 2020. Rental & Quick Rental basis. 1. Commercial Activities The major commercial activities undertaken by DESCO during the year are highlighted below: Disconnection / Reconnections The most effective tool to recover outstanding bills from the defaulters is disconnection of power line.009 defaulting consumer services were disconnected with the help of the Outsource Contractor and by the Company’s own staff during the year. During the year.02 MVA by the year 2025 and 6. DESCO will create adequate facilities in phases by taking up new projects. 12.910. The electrical network development for this area will soon be taken up by DESCO. 18. For this purpose 117 nos of new 33/11 Kv Sub-Stations and 28 nos of new 132/33 Kv grid Sub-Stations will be required.010 nos of consumers were given re-connection on recovery of their outstanding dues and realization of penalty as applicable under the law. The load demand of “Uttara 3rd Phase” is expected to be about 230 MW.27. To keep pace with the load growth and consumer strength. The report shows that the load demand of DESCO will increase to 1.77 MVA by the year 2030.489. PPP.287. Another new area named “Uttara 3rd Phase” is being developed by RAJUK within DESCO’s territory.45 million against supplementary bills. An aggregate amount of Tk. DESCO has completed a study to ascertain load demand and consumer growth in DESCO area up to 2030 with 5 years phasing. 3. Data Acquisition System (DAS) The Data Acquisition System (DAS) established by DESCO as a tool for strong monitoring of real time load status and effective load management is being upgraded.Consumer Strength 450 400 350 In Thousand 385 332 348 416 446 300 250 200 150 100 50 0 '05-06 '06-07 '07-08 YEAR '08-09 '09-10 Future Plans A new area named “Purbachal Model Town” is being developed by RAJUK in the north east of DESCO area and on the eastern bank of the Balu River under the District of Gazipur and Narayangonj.129. The load demand of Purbachal Model Town is expected to be about 500MW. A total number of 24. A remote terminal unit for data gathering and computer-server network has been integrated with the system.432 nos of illegal consumer services were traced and disconnected during the year. Merchant Power Plant.185. Moreover. The electrical network development for this area is at its planning stage.52 million was realized from the defaulting consumers and Tk. DESCO Annual Report 2010 17 .15 MVA by the year 2015.

31% Collection/ Import (C.46. relocation.129 nos. for which DESCO is giving emphasis on regular training of the employees.10.099 nos of meters were changed on receiving complaints from the consumers.10. Billing/ Collection The primary obj ctive of maintaining the financial strength of the Company is achieved by continuous efforts to e maintain a healthy billing/ collection ratio.974 nos of bills were corrected. which led to the establishment of Customers’ One Point Service Center in each of the Sales and Distribution Divisions.811 million and collection at Tk. The issue is seriously considered by DESCO. The this in Accounts Receivable/ Sales One of the indicators of efficient financial management of any company is decreasing balance of accounts receivable ratio. 8. Our customers are our prime focus and we are committed to ensure satisfactory customer service as deemed suitable. . this last System Loss This is a key performance indicator for any electricity distribution company. During the year. Thus the total number of electric connections under DESCO at the end of the financial year stands at 4.79% 8. correction of names and addresses are seriously attended to. Relentless efforts have been made to maintain the system loss at single-digit figure. bill correction. Consumer Complaints DESCO continuously strives to offer ‘service excellence’ to its valued consumers. 18 DESCO Annual Report 2010 .Bill Collection Ratio 120% 100% 80% 60% 40% 20% 0% EAR Y '03-04 '04-05 '05-06 '06-07 '07-08 '08-09 '09-10 97% 88% 97% 104% 101% 99% 99% System Loss Year 03-04 04-05 05-06 06-07 07-08 08-09 09-10 System Loss 19. reconnection and other related services. The system loss works out to 8. DESCO maintains a system of continuous monitoring of accounts receivable by way of monthly reports and analysis. records of 2. sealing of meters and inspection of meters on a regular basis.569 nos of defective meters were changed. every effort has been made to change defective meters.79% in the previous year.177 nos of meters were inspected.48% year. and is determined by the quantity of energy purchased and sold.91% 9. Considering sales at Tk.86% this year as against 9.44% 10. The Customer Service Centers are under continuous improvement to bring them up to the desired standard. It covers new connection. Metering Energy meter being the ‘cash box’ of the Company. 4. During the year.402 nos of new connections have been added to our system. One Point Service Center Customer satisfaction is the key to success of any business.69% year as against 22.I.20% 13.737 million. the billing collection ratio during the year works out at 99. Consumer visiting any of DESCO’s Sales & Distribution Divisions can get his/her desired service and solution of any problem from the staff of the One Point Service Centre.51% year as against 89.716 nos of consumers names and addresses were corrected and 3.24% 16. service cable renovation.) ratio is 90. load extension. The Accounts Receivable/ Sales ratio works out at 20.858 nos of meters were sealed and 35. Consumer complaints in terms of billing errors. 19.86% New Connections During the year 32.64% 16.10% last year.

40 45.84 15.236 (484) 1.656) 2. DESCO has been continuously contributing substantial amount to the Government Exchequer: VAT and Income Tax VAT from Electricity Bills VAT from Contractors/Suppliers Bills Income Tax deduction at Source Corporate Income Tax Total 2009-10 (MTK) 2008-09 (MTK) 2007-08 (MTK) 514.74 1032.001 381 1.479 Contribution to the Govt.32 1049. Financial Results and Appropriation The year to year financial results are presented as under: Particulars Revenue from Operations Cost of Sales Gross Profit Expenses Operating Profit Financial Expenses (Net) Non Operating Income Taxation Net Profit for the year Dividend (proposed) Un appropriated profit carried forward 2009-10 (MTK) 2008-09 (MTK) 2007-08 (MTK) 10.333 (799) 1. Bangladesh University of Engineering and Technology (BUET).79 19 DESCO Annual Report 2010 . 8. 13 & 14 of Uttara have already been covered under the programmed. 10.11 438. 9. The introduction of pre-paid meters in Uttara area has helped DESCO to improve revenue collections and minimize system loss as well.072) 1.005 (7. In order to facilitate continuous supply of pre-paid meters in future.789 721 5.97 459.80% Operating Profit 77.20% Pre-paid Metering Pre-paid meter utilizes smart card technology that allows customers to put money on a smart card which is inserted into and removed from the pre-paid meter.189 (6. 6.Profit After Tax in 2009-10 Non Operating Profit 22.658 (170) 669 (533) 1.. Upto the year under review.752 (256) 576 (1. 7. 4.48 52. Sectors 1.989 (8.53 426. 9.531 10.758 9.59 430. The meter reads a chip in the card and ensures that only the amount of electricity for which payment has been made be available to the customer.81 913. 3.953) 2.860) 2.38 474.11 81. Exchequer Since commencement of its operation.62 18.83 37. DESCO has set up a "Pre-paid Meter Production Unit" at Mirpur with the technical assistance of the Institute of Information & Communication Technology (IICT). Customers can re-charge their smart cards by making payment at DESCO’s Vending Stations. 11.534 (221) 880 (373) 1.607 601 3.767 nos of single phase pre-paid meters and 380 nos of three phase pre-paid meters have been installed in Uttara area.145 (487) 1. 12.

1601. Some of the indicators are presented below to reflect DESCO’s financial position: Financial Indicator 01.760 9000 (MTK) 8000 7.Earning Per Share 125 100 75 53.) 13. 100/. Earning Per Share (Tk.40 21. Return on Equity Ratio 11.77 21.5000.38 334.23 2.Tk.73 78. Gross Margin / Sales Ratio 07.42 546. 20 DESCO Annual Report 2010 .471 3.58 14. Current Ratio 02.10 14. market value of shares.74 78.95 194. Return on Asset Ratio 10.81 19.) 12.98 TAKA 100.245 3000 2000 1000 0 YEAR '05-06 '06-07 '07-08 '08-09 '09-10 50 25 0 43.65 2.58 2. Accounts Receivable (Months Equivalent to Sales) 05.each Stock Exchange Listing The issued Ordinary shares of Dhaka Electric Supply Company Ltd.66 67:33 2.Tk.46 185.25 60:40 2.46 74. Quick Ratio 03.68 Shareholders' Equity 8.35 '05-06 '06-07 '07-08 YEAR '08-09 '09-10 Financial Indicators Financial ratios are indicators of financial strength/weakness of an organization. Net Asset Value Per Share (Tk.98 Share Information The distribution of shareholding.61 75.) 2009-10 3. Operating Expenses to Operating Revenue 06.00 Paid up Capital: Class of Share: M. Net Income / Sales Ratio 09.44 11.35 111.86 16. (DESCO) are listed with Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).38 100. type of shareholding of the company are shown below: General Authorized Capital: M.55 20.67 24.68 2008-09 3.31 20.91 153.70 Ordinary Shares of Tk.39 73:27 2. Operating Margin / Sales Ratio 08. Net Operating Cash Flow Per Share (Tk.00 22.55 21.96 548. Debt Equity Ratio 04.789 4000 3.76 111.89 16.320 7000 6000 5000 4.19 16.89 21.35 2007-08 2.58 74.

446 766 1.17 0.28 11.431 181.732 359.320.044 % of share capital 2. 2010 Group Name Sponsors (DESA) General Public Investors A/C Mutual Funds Unit Fund Local Company Foreign Company Total Number of Shareholders 7 3.02 2.52 0.44 75.64 4.12 0.00 Shareholding Pattern 1 2 1600 (TK) 1400 954.13 1.958 186.24 0.769 nos on record date of 11th November.91 1.223.25 1446.10 1.191 % of Shareholders 86.351.154 1.446 Shareholding Pattern as on 30th June.69 100 DESCO Annual Report 2010 21 . Range of Holding in number of Shares 1 to 499 500 to 5000 5001 to 10000 10001 to 20000 20001 to 30000 30001 to 40000 40001 to 50000 50001 to 100000 100001 to 1000000 100000 to 1000000000 Total Number of Shareholders 3616 473 47 22 7 9 4 5 7 1 4.Closing Market Price Per Share 1.191 Number of Shares held 12.017.178 366. 2010.888 307.92 1.10 0.743 238.00 100 Market Value per Share during the FY 2009-10 Particulars Highest during the year Lowest during the year At closing of the year Tk.75 1.00 7. Investor A/C 4.65 1.361 110.50 3.24 1200 1000 800 600 400 200 0 YEAR '05-06 259.64 4.02 100 Number of Shares 331.864 34 26 3 255 2 4.49 2.420 1. 2010 stood at 4. Sponsors (DESA) 2. Foreign Company 0.12 0.207 643.012.017.29 8.191 nos which was 4.070 12.759 16. General Public 3 4 5 6 7 75.058 306.69 '06-07 '07-08 '08-09 '09-10 Distribution of Shareholdings Number of Shareholders as on 30th June.00 7.780 1. Local Company 7. Unit Fund 6.29 1. 1.66 1.29 8. Mutual Funds 5.406.521 336.17 2.21 0.720 16.108 745.17 0.24 8.07 4.044 Percentage of holding 75.012.50 938.49 2.

Shareholders’ Role
The Directors of the DESCO Board have always recognized the important role played by the valued Shareholders of the company in assisting the Board to implement proper corporate governance. The Company also welcomes the active participation of the Shareholders at the Annual General Meetings and solicits their views at all times. Whenever possible, the Company has also implemented the suggestions of the shareholders. The Board and the Company Management constantly interacts with the shareholders of the Company through the half yearly and annual publications of financial statements, meetings and other forms of communications.

Directors' Responsibilities for Financial Statements
Section 18 of the Companies Act 1994 requires Directors of the Board to ensure that the Company keeps proper 1 books of accounts of all transactions and prepare financial statements that give a true and fair view of the state of the Company' affairs and of the profit/ loss for the year. s The Directors are also required to ensure that the financial statements have been prepared and presented in accordance with the requirements of the International Accounting Standards/ International Financial Reporting Standards as adopted by the Institute of Chartered Accountants of Bangladesh and provide the information required by the Companies Act 1994, Securities and Exchange Ordinance 196, Securities and Exchange Commission Rules 9 198 7 and the regulations of the Dhaka / Chittagong Stock Exchanges. They are also responsible for taking reasonable measures to safeguard the assets of the Company, and in that context to establish appropriate systems of internal control with a view to the prevention and detection of any fraud and other irregularities.

Corporate Governance Compliance Report
The pattern of shareholding along with the name wise details of (i) Parent/Subsidiary/Associated Companies and other related parties; (ii) Shareholding of Directors; (iii) Shareholding of CEO, CFO, Company Secretary & Head of Internal Audit; (iv) Shareholding of Senior Executives (Top five salaried persons other than CEO, CFO, CS, HIA) and (v) Shareholder(s) holding 10% or more voting interest in the Company as on 30.06 .2010 are shown at Annexure-I Dhaka Electric Supply Company L imited (DESCO) to this end has complied with all the requirements of Corporate Governance as required by the Securities and Exchange Commission. Accordingly, Corporate Governance Compliance Report is prepared and shown at Annexure- II.

Board Meetings and Attendance
During the year, 17(seventeen) Board Meetings were held. The attendance record of the Board Directors is shown at Annexure- III of this report.

22

DESCO Annual Report 2010

Audit Committee
In compliance with Securities & Exchange Commission (SEC) Regulations, the company has formed a 4-member Audit Committee of the Board headed by an independent Director, Mr. Mustafizur Rahman, FCA, Council Member of ICAB. The other members of the Committee were Mr. Mohammad Wahid Hossain, ndc Joint Secretary (Admin), Power Division, Ministry of Power, Energy & Mineral Resources, Mr. Mohammad Reazul Islam, Vice-President (Admin & Finance), Institute of Engineers Bangladesh and Mr. Qudrate Khuda, FCA, FCMA, Director (Finance), DESCO. The Attendance record of the Audit Committee is shown at Annexure-IV. During the Financial Year 2009-2010, the Audit Committee of the Board of Directors held 03 (three) meetings in which, among other things, the following issues were discussed/evaluated/reviewed and the Committee accordingly provided necessary guidelines and instructions: Reviewed and finalized the draft Auditors Report & Audited Accounts of the Company for the financial year ended on 30th June, 2009. Reviewed and finalized the un-audited financial statements for the half year ended on 31st December, 2009. Reviewed the existing use and management of transports in DESCO.

Human Resource Development
Training improves the knowledge, skills, efficiency, performance and attitudes of an employee needed by his / her job. Only skilled and quality people can deliver quality service. In order to achieve the Company’s vision and mission, DESCO recognizes and emphasizes on qualitative development of its employees. So, based on the directives of the Ministry of Power, Energy and Mineral Resources, DESCO has developed a training schedule for each employee designed to meet at least 20 hours training on different topics, round the year. A target group of 929 employees received 20 hours of training during the year 2009-2010 which shows that almost 100% of the target man hours of training have been achieved. These courses include training on Service Rules, Electricity Act, Customer Service, Introduction to Management, e-governance, record Management, Organogram, Official manners and behavior. Essential Technical Training Programs are also conducted for the concerned employees on Distribution System Inspection and Maintenance, New Connection Process, Distribution Network Protection System, Fundamentals of Electrical Safety Guidelines, Breaker Maintenance & Relay, House Wiring Inspection, Disaster Management, Fire Fighting & first Aid, Security System Maintenance, Energy Meter Installation-Connection-Calibration & Testing, Financial Management , Strategic Management, Tender Evaluation Process, Electricity & Energy Regulatory Acts, etc. Besides, DESCO arranged participation of its employees in trainings / seminars / workshops in organizations and institutions like the Institution of Engineers of Bangladesh (IEB), Engineering Staff College of Bangladesh, Institute of Information and Communication Technology (IICT), Bangladesh University of Engineering & Technology (BUET), Bangladesh Power Development Board (BPDB), Institute of Chartered Secretaries and Managers of Bangladesh, Bangladesh Metrological Department, World Bank, ADB for its employees which is about 2500 man – hour during the year.

E-Governance
To keep pace with the modern technological advancement in Information Technology (I.T) sector and to make the utility management more user friendly, DESCO Management has decided to launch e-governance program with a unified approach. Institute of Information and Communication Technology (IICT), BUET is helping DESCO in this regard. E-governance software in One Point Service Center, New Connection, Monthly Bill Collection, Miscellaneous Bill Collection, DESCO Website and E-mail Communication, Inter Office Wide Area Network (WAN) Connectivity have already been developed and implemented. Training of DESCO officials on this newly implemented software are going on. Citizen Charter has also been displayed in DESCO’s website and now any consumer may check the status of his/her bill and load shedding schedule from this website.
DESCO Annual Report 2010 23

BILL

Citizen Charter
The Citizen Charter makes it clear that the services offered by the utility organization are the right of its customers and not a favour to them. The increasing demand for time bound services by the public will bring qualitative improvement in services rendered by DESCO and the Charter will help DESCO to evaluate the delivery of services. DESCO’s Citizen Charter is displayed in its customer service centers for public awareness. There are some printed leaflets on different categories of services. These are available at the Customer Service Centers of DESCO.

Bill Payment through Internet
Payment of utility bills through internet is one of the modern and expected service facilities worldwide for the customers. In view of increasing customer’s need and expectations for faster service, Bangladesh Bank has allowed online transaction through Debit/Credit cards of Banks from this year. DESCO is the first Public Sector electrical utility company that launched the facility of bill payment through internet under NEXUS gateway of Dutch-Bangla Bank. DESCO consumers can pay their regular monthly electricity bill using internet at anytime and from anywhere in the world by Credit/Debit card as allowed by NEXUS-gateway of Dutch-Bangla Bank such as Master, VISA, NEXUS, Mastro etc. Bill payment procedure is published in the web and there is a printed leaflet available in the DESCO’s Customer Service Center. Bill payment is now so easy that with a few mouse-clicks, payments may be made. At the same time, the payer will get an acknowledgement slip automatically. Again, customers can view the bill payment status instantly by login to their respective accounts.

Bill Payment through Mobile Phone
Mobile phone service providers have introduced several value added services for the public. One of the most important value added service is utility bill payment through Mobile phone or through retail seller of the Mobile phone operator. DESCO’s customers may pay their monthly electricity bill through Mobile Phone network at marked retail shops of mobile phone operators in Dhaka and also all over the country. DESCO has implemented this service under the contract with Grameen Phone, Banglalink and Citycell.

Corporate Social Responsibility (CSR)
The ethos of DESCO for pursuing its activities in social arena has got further momentum with continuous enthusiasm and support of the stakeholders. While running the company on commercial basis, DESCO also has got some social responsibilities. Some of the Corporate Social Responsibility (CSR) activities of the Company are:

24

DESCO Annual Report 2010

the Board of Directors recommends 15% cash dividend and 30% stock dividend (i. (DPDC) and Mr. as per article 87 of the Articles of Association of the Company. Ministry of Power. It may please be noted here that Mr. Prof. the Board also resolved in the same meeting to appoint Mr. Auditors Aziz Halim Khair Choudhury. Dr.f. the retiring Directors are eligible to be re-elected as Directors of the Company. DESCO as Managing Director (in-charge). of the People’s Republic of Bangladesh. DESCO shall continue to act as Directors of the Board.e. Justice & Parliamentary Affairs and Engr. Foiz Ahamed. World Bank. Election of Directors In terms of Article 86 of the Articles of Association of the Company. Dhaka Power Distribution Company Ltd. Additional amount payable in this respect for the said period is borne by DESCO. Joint Secretary (Admin). Ministry of Planning. 3 bonus shares for every 10 shares held) for the financial year 2009-10. Dhaka Stock Exchange Ltd. prosperity and development of the Company. Energy & Mineral Resources. In conclusion. Md. M. Mr.). Energy and Mineral Resources. Abdus Sobhan. I would also like to express my thanks to all the employees of the Company on behalf of the Board of Directors for their sincere efforts in performing their duties and responsibilities for progress. all concerned Government Departments..e. Mr. Bir Bikram Chairman DESCO Annual Report 2010 25 . approved Freedom Fighters living in its geographical area for which monthly electricity bills up to 200 units are being paid by DESCO.50 per unit only from the Biswa Ijtema Committee. Asian Development Bank. Legislative & Parliamentary Affairs Division. Akhter.● ● ● DESCO collects electricity bills during Biswa Ijtema period at Tongi Ijtema Ground at a nominal rate of Tk. Department of Electrical and Electronic Engineering. Dividend Based on the performance of the Company. Mohammad Harun. Acknowledgement Esteemed Shareholders. Chartered Accountants. Ministry of Finance. M. Shahjahan Siddiqui. ICB Capital Management Limited. Regal Enterprise shall retire from the Board of Directors. R. Member (Finance). Rural Electrification Board. and other development partners for their continuous support and assistance. Securities and Exchange Commission (SEC). Economic Relations Division. the existing Auditors of the Company will retire at the forthcoming Annual General Meeting and have expressed their willingness to continue in the office for the Financial Year 2010-11. Fazlul Hoque. Govt. Bangladesh University of Engineering & Technology (BUET). Joint Secretary (Drafting-4). Ministry of Power. For and on behalf of the Board of Directors. Md. However. Power Division. ICB Securities and Trading Company Limited. Md. Md. Bir Bikram. Md. Accordingly. In view of officiating the vacant post. DESCO also provides support to the Govt. Superintending Engineer (Retd. Md. Power Grid Company of Bangladesh. Mr. Saleh Ahmed resigned from the post of Managing Director of DESCO on 19/08/2010. Managing Director (In-charge). Shahjahan Siddiqui. Shahidul Hasan. Mr. Monzur Rahman. 19/08/2010 in its meeting held on 19/08/2010. On behalf of the Board of Directors. Retired Secretary. I pray to the Almighty Allah that may the Company continue its performance gloriously throughout the years ahead. (DSE). Proprietor. Chittagong Stock Exchange Limited (CSE). his letter of resignation was duly accepted by the Board w.0. Appointment of the Managing Director is under process. Monthly electricity bills up to 1500 units for the family of the National Poet Kazi Nazrul Islam are also being paid as a gesture of goodwill and respect to the National Poet. Begum Salma Binthe Kadir. I would like to express my sincere gratitude to the Power Division. Bangladesh Power Development Board (BPDB). Monzur Rahman. Managing Director. Ministry of Law. Director (Engineering). S. Mr. Bangladesh Power Development Board. Whereas. Power Cell. Dhaka Power Distribution Company Ltd.

COMPANY SECRETARY &HEAD OF INTERNAL AUDIT 01. S R Akhtar Superintending Engineer (Retd. Bir Bikram Retired Secretary Govt. Director Nil 08.Annexure I I) II) PARENT/SUBSIDIARY/ASSOCIATED COMPANIES AND OTHER RELATED PARTIES: NIL DIRECTORS' SHAREHOLDING Sl. Director Nil III) SHAREHOLDING OF CEO. M. M. Mr. Fazlul Hoque Member (Finance) Bangladesh Power Development Board (BPDB) Mr. Name Mr. Chief Executive Officer and his spouse and minor children Chief Financial Officer and his spouse and minor children Company Secretary and his spouse and minor children Head of Internal Audit and his spouse and minor children Nil Nil Nil Nil 26 DESCO Annual Report 2010 . Director Nil 03. 01. Regal Enterprise Chittagong Mr. 02. Saleh Ahmed Former Managing Director Dhaka Electric Supply Company Limited (DESCO) Designation Chairman % of shares as on June 30. Power Division Ministry of Power. Md. Ataul Masud Former Managing Director Dhaka Power Distribution Company Limited (DPDC). of the People's Republic of Bangladesh Mr. CFO. Mr. Justice & Parliamentary Affairs Dr. Shahidul Hasan Professor Department of Electrical and Electronic Engineering. Director Nil 06. Director Nil 07. Energy & Mineral Resources Begum Salma Benthe Kadir Joint Secretary (Drafting-4) Legislative & Parliamentary Affairs Division Ministry of Law. Shahjahan Siddiqui. Md. Md. Director Nil 09. Director Nil 05. Foiz Ahamed Joint Secretary (Admin. 2010 Nil 02. BUET. 04. Director Nil 04.). No.) Erstwhile Dhaka Electric Supply Authority (DESA) Engineer Mohammad Harun Proprietor. 03.

S&D Division. INVESTORS A/C 1 IDLC . 2010 Nil 0.723 31. S&D Division.29 0. No.914 27.750 288. Gulshan DGM (System Engg.67 0. 2010 Sl.100 39. Md. Shah Alam Mr.0052 0.050 20.00 VI) TWENTY LARGEST SHAREHOLDERS AS ON JUNE 30. Habibur Rahman Engr. 5. CS.916 92. 4.47 1. THE PREMIER BANK LIMITED ICB AMCL UNIT FUND EASTERN BANK LTD. HIA) Sl. Md. Dhaka Electric Supply Authority Erstwhile (DESA) 75.010. S&D Division. AKM Mostofa Kamal Engr. Administration DGM.40. Name Engr. Rofi Uddin Designation Director (Engineering) GM (ON & C) and Director Operation (in-charge) % of shares as on June 30.850 62. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Name of Shareholder DHAKA ELECTRIC SUPPLY AUTHORITY ICB UNIT FUND ABIL .0138 DGM.0040 0.46 0.633 495.IV) SHAREHOLDING OF SENIOR EXECUTIVES (TOP FIVE SALARIED PERSONS OTHER THAN CEO.488 129. Md.450 30.0003 Nil 0.100 103. UNION CAPITAL LTD. HBFS FRONTIER FND (BERMUDA) L MD. 8.000 80.0075 0.IDA ICB ARAB BANGLADESH BANK LTD.54 DESCO Annual Report 2010 27 .081 Percentage 75.0160 0. PRIME BANK LTD. Noor Mohammod Engr.102 37.995 33.24 0.765 264. IP A/C TBL IDA ARUNA RANI SARKER EASTERN BANK LTD. Md.25 0. & Design) DGM (Finance & Accounts) V) SHAREHOLDERS HOLDING 10% OR MORE VOTING RIGHT 1.74 1. 2. S.29 0.49 0. 7. 6.00 1.945 27.370 147.917 93.22. Md.93 1. CFO.48 0. Monzur Rahman Engr.73 0. INVESTOR ACC.PORTFOLIO ACCOUNT RABINDRA NATH SARKER RABINDRONATH SARKER CACEIS BL A/C BARCA GL.000 1. SHAHID ULLAH TOTAL Nos. of Shares Held 10.65 0. Kallyanpur DGM. 3. 1.42 0.FUND LANKABANGLA FINANCE LTD.M.40 0.29 0.282 342. Shafiqul Islam Chowdhury Engr.25 0. Shahjahan Mia Mr. No.29 0. Baridhara DGM.M.21 87.

e.00(iii) 4.Annexure II Status of compliance with the conditions imposed by Notification No.00 3.4(d) 1. SEC/CMRRCD/2006-158/Admin/02-08 dated February 20.2(ii)(d) Reporting of any other matter to the Board of Directors 28 DESCO Annual Report 2010 .4 4.2 3.1 2.3.3.2(i) 1.3. minimum one Appointment of Independent Director by elected Directors Separate Chairman of the Board and Chief Executive and clearly defined roles and responsibilities Directors Report to Shareholders on: Fairness of Financial Statements Maintenance of proper books of account Adoption of appropriate accounting policies and estimates Compliance with International Accounting Standard Soundness of Internal Control System Ability to continue as a going concern Significant deviations in operating results from last year Presentation of at least preceding three years financial data Declaration of Dividend Details of Board meeting Shareholding pattern Appointment of CFO.00(i) 4.4(e) 1.1(iii) 3.4(i) 1.4(b) 1. 1.4(k) 2.00(vi) 4.00(vii) Compliance Status (Put in the appropriate column) Complied Board's size: should not be less than 5 (five) and more than 20(twenty) Independent Director: at least 1/10 i.00(v) 4.3. Company Secretary & Head of Internal Audit and defining of their responsibilities Attendance of CFO & Company Secretary in the Board of Directors meeting Audit Committee: Constitution of Audit Committee Constitution of Audit Committee with Board members including the Independent Director Filling of casual vacancy in the Audit Committee Chairman of the Committee Professional qualification and experience of the Chairman of the Committee Reporting on the activities of the Audit Committee Reporting of Conflict of interest to the Board of Directors Reporting of violation of laws to the Board of Directors Reporting of Qualified point to Commission Reporting of activities to the Shareholders and General Investors External/Statuary Auditors: Non-engagement in appraisal of valuation Non-engagement in designing of Financial Information System Non-engagement in Book-Keeping Non-engagement in appraisal of valuation Non-engagement in Acturial Services Non-engagement in Internal Audit Non-engagement in any other services √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ No such case as yet No such case as yet No such case as yet No such case as yet Not applicable √ √ √ √ Not Complied Explanation for non-compliance with the condition - Title 3.4(h) 1.2(i) 3.4(c) 1. 2006 of the Securities and Exchange Commission (SEC) issued under section 2CC of Securities and Exchange Ordinance 1969: Condition No.3 1.1 1.2(ii)(a) 3.4 1.4(j) 1.4(f) 1.3.1(i) 3.2(ii)(c) 3.2(ii)(b) Reporting of any fraud or irregularity to the Board of Directors 3.4(g) 1.1 (i) 3.2(ii) 3.4(a) 1.00(ii) 4.2 3.3.00 4.1(ii) 3.2(ii) 1.00(iv) 4.

Mr. ndc. Mr. Murtozaa Reza Chowdhury 06. Reza Shah Alam 08.T. 03. Dr. Lutful Kabir 10. FCA 05. Mr. A. Saleh Ahmed 01 16 08 16 08 08 08 09 08 09 09 09 09 08 01 01 17 Nil 15 08 13 02 08 08 Nil 06 09 08 08 09 03 Nil 01 17 Annexure IV Audit Committee Meetings and Attendance during the year ended June 30. Mr. Foiz Ahamed 12. Shahjahan Siddiqui. Mohammad Reazul Islam 07. Mustafizur Rahman. Md. Safar Raj Hossain 02. Mr. Mohammad Wahid Hossain. Begum Salma Benthe Kadir 16. Qudrate Khuda 3 3 3 3 3 3 3 3 DESCO Annual Report 2010 29 . Mr. S.Annexure III Board Meeting and attendance during the Year ended June 30. Mohammad Reazul Islam 04. Fazlul Hoque 11. Prof. Latifur Rahman 09. Mr. 2010. M. Bir Bikram 03. 04. Md. Ataul Masud 15. Mr. ndc. Mr. Mr.M. Mr. S R Akhtar 14. Name of the Directors Meetings held while a member No of meeting attended in person/alternates 01. Engineer Mohammad Harun 17. Md. Md. Mustafizur Rahman. 2010. M. Md. Md. Name of the Members Meetings held while a Member No of Meetings attended 01. M. Shahidul Hasan 13. Dr. FCA 02. Mr. Mr. Mr. Prof. Mohammad Wahid Hossain. Mr. Mr.

Honourable Shareholders at the 13th Annual General Meeting.Events Highlights Boad of Directors attending the 13th Annual General Meeting. 30 DESCO Annual Report 2010 .

DESCO Annual Report 2010 31 .events events events Exchanging views with consumers at Uttara S&D Division. Visit at DESCO stall by the advisor to the honourable Prime Minister at “Power Expo-2009”. highlights highlights highlights Blood Donation Program organised by DESCO. Visit at DESCO’s Head Office by the honourable State Minister.

Auditors' Report to the Shareholders of DHAKA ELECTRIC SUPPLY COMPANY LIMITED (DESCO) 32 DESCO Annual Report 2010 .

An audit includes examining. Our responsibility is to express an opinion on these financial statements based on our audit. c) The company’s balance sheet and income statement dealt with by the report are in agreement with the books of account and returns. give a true and fair view of the state of the company’s affairs as of June 30.We have audited the accompanying balance sheet of Dhaka Electric Supply Company Limited (DESCO) as of June 30. 2010 and the related Income Statement and Statement of Cash Flows for the year then ended. We believe that our audit provides a reasonable basis for our opinion. proper books of account as required by law have been kept by the company so far as it appeared from our examination of those books and (where applicable) proper returns adequate for the purpose of our audit have been received from Sales & Distributions Divisions. on a test basis. These financial statements are the responsibility of the Company’s management. Dated: 31 October 2010 Dhaka Aziz Halim Khair Choudhury Chartered Accountants DESCO Annual Report 2010 33 . b) In our opinion. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. the financial statements prepared in accordance with Bangladesh Accounting Standards (BAS). d) The expenditure incurred was for the purposes of the company’s business. 2010 and of the results of its operations and its cash flows for the year then ended and comply with the applicable section of the Companies Act 1994. evidence supporting the amounts and disclosures in the financial statements. the Securities and Exchange Rules 1987 and other applicable laws and regulations. as well as evaluating the overall financial statement presentation. Opinion: In our opinion. An audit also includes assessing the accounting principles used and significant estimates made by management. We also report that: 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. Scope: We conducted our audit in accordance with Bangladesh Standards of Auditing (BSA).

34 DESCO Annual Report 2010 Financial Statements .

Financial Statements DESCO Annual Report 2010 35 .

539 734.600 714.451 2.601.552.442.392.395.028.835.639.757.396.539 854.366.130.090.000 600.700 75.320.962 18.231 4.668.131.453.120 23.753.095.000 1.020.761 359. 31 October.840.508.375.155.322.677.631.706 4.453.865.541.000.059.833 21 35.635 6.000 1.288.407.000.136 4.855.540.281 78.097 5.059.119.052.892.552.558 50.966.671.492 7.350.545.805 1.063 438.385 4.020.613.195 1.311.039.279.502.140.350.284 488.440.363.454.637.736 18.901.397.440 75.920.2 22 23 These financial statements should be read in conjunction with the annexed notes.392 335.293.475 134.396.086.302. Plant & Equipment Capital Work -in.791.756 257.039.624 2.492 1.685.368.213.356 21.394 8.871 4.Balance Sheet Particulars as on 30 June 2010 Note 30 June 2010 Taka 30 June 2009 Taka APPLICATION OF FUND Non Current Assets Property.808 79.150 16.874.049 12.833 5 6 7 8 9 10 11 12 13 14 15 16 SOURCES OF FUND Capital & Reserves Share Capital Share Money Deposit GOB Equity Proposed Dividend Retained earnings Equity Long Term Liabilities Loan from ADB/GOB Deferred Tax Liability Due to DESA (for assets taken over) Consumer Security Deposits 17 18 19 38 20 1.182.Progress Investment in Shares Current Assets Stores and Spares Accounts Receivable Advances & Deposits Advance Income Tax Cash and Bank Balances Current Liabilities Creditors for Goods/Works Accounts Payable Creditors for Other Finance Creditors for Expenses Current Maturity of Long Term Loans Accrued Interest on Loans Provision for Income Tax Net Current Assets 2 3 4 8.924.992.291.491. Company Secretary Director (Finance) Director Managing Director Signed in terms of our separate report of even date annexed.476 254.857 21.563 1.193 7.193 405.132.022 9.657 4.744 29.440 386.531.140.449 12.781.081.843 1.880 11.181 718.195 8.095.805.201.671.000 8. Dhaka.408 204.313.308.000 5.671. 2010 Aziz Halim Khair Choudhury Chartered Accountants 36 DESCO Annual Report 2010 .622 17.037 990.482.079 747.930 11.232 7.743.337.165 3.487.605.013.590.659.334.673 1.140.011.525.759.704.

117.654 INCOME TAX Current Tax Provision Deferred Tax Provision Net Profit After Tax Basic Earnings per Share 35.845.045) (32.68 (533.472.2 34 126.35 36 These financial statements should be read in conjunction with the annexed notes.738.534.370 486.846) 1.809.475.285 627.472.188 10.749.995 10.607.788.580.507 482.371) (223.666.896 1.686.159.918.707 OPERATING REVENUE Energy Sales (Net of Vat) Other Operating Revenue Total Revenue from Operation 24 25 COST OF ENERGY SALES Energy Purchase (including wheeling Charge) Operating Expenses Depreciation (Operating) Gross Margin 26 27 34 7.015.807) 2.859.004.977 619.912 243.531.132) 1.577.122.1 35.974.337.217.581.332.712 205.698 36.312.335 2.161.544 7.788 (169.414 2008-2009 Taka 9. 2010 Aziz Halim Khair Choudhury Chartered Accountants DESCO Annual Report 2010 37 .544.522 100.810.1 33 872.615.490 (221.041.475) (372.087 2.656.680 NON OPERATING INCOME/(EXPENSE) Interest Income Interest Expenses Exchange (Loss)/Gain Appreciation / (diminution) in value of Investment Miscellaneous Income Non Operating Income(Net) Net Profit before tax 30 31 32 4.280.2 (149.018. 31 October.730.372 COST & EXPENDITURE Administrative Expenses Employee Expenses Bad Debts Provision Depreciation (Non Operating) Operating Profit 28 29 6.132) (533.646.200.481 666.226 178.395.738.145. Dhaka.140.225.238 223.794.127 798.692 1.840.981.193.807 2.083.327 7.603.989.813.263 41. Company Secretary Director (Finance) Director Managing Director Signed in terms of our separate report of even date annexed.050 2.703 334.347.800.529 12.431 104.957 8.921 11.635 111.032.007.841.378.222.396) (10.218 566.793.118) (5.658.974 2.799.532.037.Income Statement Particulars for the year ended 30 June 2010 Note 2009-2010 Taka 10.487) 5.553 518.191.

915 (317.500 600.470.874.165 4.(333.672) 600.740 1.165 600.407.334.960 1.320.000.272. 31 October.000 1.855. Dhaka.552.334.165 (266.000 5.000 3.639.392.Statement of Changes in Equity Particulars Note Share Capital Share Money Deposit for the year ended 30 June 2010 GOB Equity Reserve & Surplus Proposed Dividend Total Taka FOR THE YEAR ENDED 30 JUNE 2010 Balance at 1st July 2009 GOB Equity Net profit for the year Priors year's adjustment Stock Dividend paid Cash Dividend paid Balance at 30 June 2010 37 1.788.000.757.337.264.011.232 1.730.232 317.000.700.140.753.097 .334.407.759.320.140.000 1.000 1.798.440.097 1.672) (333.593. 2010 Aziz Halim Khair Choudhury Chartered Accountants 38 DESCO Annual Report 2010 .000 287.(317.531.607.700 266.160 287.392.337.635 (15.552.639.753.140.500) These financial statements should be read in conjunction with the annexed notes.500) 7.798.688.782.688.000.522 1.440 75.775.700 1.874.639.425) 7.740) .704.000 1.788.522 1.195 75.552.425) 8.700 75.601.730.635 (15.950.915 (600.000 1.607.635 FOR THE YEAR ENDED 30 JUNE 2009 Balance at 1st July 2008 GOB Equity Net profit for the year Priors year's adjustment Proposed Dividend Dividend paid Balance at 30 June 2009 37 1.272.000 75.757.593.478.950.165) 3.639.798.753. Company Secretary Director (Finance) Director Managing Director Signed in terms of our separate report of even date annexed.000 1.700.

078) (3.622 2.006.787.879) (101.491.413.473.901.897.900.377. F.290.514) 120.636) (4.750) 2.178 598. CASH FLOW FROM INVESTING ACTIVITIES Acquisition of Property & Plant Acquisition of Stores & Equipment Net cash used in investing activities (193.842.710 (6.434) (619. CASH FLOW FROM FINANCING ACTIVITIES Long Term Loan received Dividend Paid Long Term Loan Paid Consumer Security Deposits Net cash inflow from financing activities 1. Dhaka.548.712.511.959 942.862.723.559.318.705) (774.500 589. Vat & Tax Net cash inflow from operating activities B.119 1. 31 October.818 803.904) (124.150 9.358 1. Company Secretary Director (Finance) Director Managing Director Signed in terms of our separate report of even date annexed. Duty.683.239.Cash Flow Statement Particulars for the year ended 30 June 2010 Note 2009-2010 Taka 10.651 2008-2009 Taka 9.073 (125.322) (195.710) (2. E. CASH FLOW FROM OPERATING ACTIVITIES Received from Energy Sales Collection of Govt.396. Cash & Cash equivalents increase /(decrease) during the year Cash & Cash equivalents at the beginning of the year Cash & Cash equivalents at the ending of the year These financial statements should be read in conjunction with the annexed notes.787) 2. VAT & Tax Received from Other Operating & Non Operating Activities Received against Financial Income Payment for Energy Purchase Payment for Employee Expenses Payment for Administrative & Other Expenses Payment for Interest on Long Term Loan Income Tax Paid Payment for Govt.714.736. 2010 Aziz Halim Khair Choudhury Chartered Accountants DESCO Annual Report 2010 39 .874 A.302.490 2.263.141.195 (7.336.826) (2.804.193.556.224.445.372 319.856.262) (331.128.995.536) (557.708.170 249.714) C.584.460.096.031 8.472 8.119 7.744) (526.281.641.302.646) (562.119) (431.650) (271.610.094.886.268.003.674.367.190.177.992) (279.030. Duty.541.954) 150.491.150 D.007.474.374.499.853 (323.100) (235.913.668.838.843.126 552.661.

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2010 40 DESCO Annual Report 2010 .

92 million and Tk.4. 1. as per Vendor Agreement signed between DESCO and DESA. 1994.2 Valuation of Assets Taken Over from DESA 1. 1.1. 1.2.3 Depreciation 1.998. DESCO started its operation from 24 September 1998 in Mirpur area and as per Govt. plant & equipment taken over from Dhaka Electric Supply Authority (DESA) in the Mirpur area have been valued at Tk.4. 271.4. including cost of land.1. Plant & Equipment 1. Further on 04 March 2007 operation of Tongi Area was also handed over from DESA to the Company. the Securities and Exchange Rules 1987 and other applicable laws and regulations.4. except where otherwise mentioned.1 Depreciation is charged at straight-line method at rates varying from 2% to 20% depending on category and economic life of the assets as under: Categories Land & Land Development Building & Other Constructions Distribution Equipment & Cables Furniture & Fixtures Office Equipment Motor Vehicles Rate (%) Nil 2.2 Principal Activities The main objective of the Company is to distribute electricity to its consumers effectively and efficiently. while those of Gulshan and Tongi areas have been provisionally estimated by DESCO at Tk.4.5. and are in compliance with the relevant requirements of the Companies Act. Plant & Equipment Purchased by DESCO All property.245.1 LEGAL STATUS & NATURE OF THE COMPANY.3 Basis of Accounting The Financial Statements have been prepared on historical cost convention in accordance with Bangladesh Accounting Standards (BAS).1 Valuation of Property. plant & equipment purchased by DESCO are recorded at cost considering its purchase price and any directly attributable cost of bringing the assets to working condition for intended use inclusive of inward freight.4.795. The shares of the Company have been listed and are being traded in Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) since 2006.3.1 Legal Status Dhaka Electric Supply Company Limited (DESCO) was incorporated as a Public Limited Company by shares.1.3 Independent valuers have been appointed to physically verify and value the assets taken over by the company from DESA. 1. The valuers have submitted their draft report which is under scrutiny by the management for placement to the Board.2. on November 03.2 DESCO also took over two Grid Substations (Bashundhara and Uttara) from DESA at provisional estimated cost of Tk.4. 1.2.04 million respectively.100 each. 1996 with an Authorized Capital of TK.5% 2%-10% 10% 15% 20% DESCO Annual Report 2010 41 .1 Property. 1. decision the operation of greater Gulshan area was added from 09 April 2003.194 million as per joint survey report between DESA and DESCO. duties and non-refundable taxes. 1.000 million divided into 50 million ordinary shares of Tk.4 Property. SIGNIFICANT ACCOUNTING POLICIES AND OTHER RELEVANT INFORMATION 1.71 million.

4.per year.4. are recognized on cash basis Interest on short-term deposits (STD) and on FDR's with banks is recognized as income on cash basis. Provision for appreciation / (diminution) in value of shares. BUET is represented on the company's Board. bills against materials. The Company entered into contract with Bureau of Research. BUET for technical assistance in prepaid metering pilot project for production of prepaid meters. if required. Testing & Consultation (BRTC). 1. 1.42 lac on 99 years lease in the year 2005. 1. 42 DESCO Annual Report 2010 . which would not have any 'material impact' on the profitability of the company. after making due allowance for any obsolete or slow moving items.4.4 Depreciation on the assets taken over in Gulshan and Tongi area has been charged on the value and economic life as provisionally estimated by DESCO. Exchange losses/gain arising out of the said conversion is recognized as expense/ income for the year in accordance with BAS-21.3 Full year's depreciation is charged on assets acquired during the year and put into use for six months and over.3.11 Related Party Transaction (a) (b) The 'related party' as per BAS-24 is Dhaka Electric Supply Authority (DESA).7 Foreign Currency Translation Foreign currency transactions are translated into Taka at exchange rates prevailing on the respective dates of transaction. 1. as on closing of the year. meter-testing fees.490/.5 Investment in Shares Investment in marketable ordinary shares has been shown at cost or marketable price. 1.3. Other operating income arising from connection/disconnection fees.6 Stores and Spares Stores and spares have been stated at the lower of cost and net realizable value in accordance with BAS 2 "Inventories". whichever is lower.1. service charge. while foreign currency monetary liabilities at the end of the year are reported at the rate prevailing on the balance sheet date. 1. demand charge.2 The company has acquired 0. The amortization of the cost of this land would have been Tk. The company provides for doubtful debts @ 0.10 Accounts Receivable Accounts Receivable for energy is stated at realizable amount less provision for doubtful debts.9 Cash Flow Statement Cash Flow Statement is prepared principally in accordance with BAS 7 "Cash Flow Statement" and the cash flow from operating activities has been presented under the direct method as required by the Securities and Exchange Rules 1987 and considering the provisions that "Enterprises are encouraged to Report Cash Flow from Operating Activities using the Direct Method" 1. 1.04. is taken into account as per BAS-25. LPC (Late Payment Charge) etc. hence no amortization has been considered. 1.3. while no depreciation is charged on assets acquired for less than six months during the year. 7. The cost of inventories is assigned by using weighted average cost method. 7. e-governance and Data Acquisition System. which holds 75% of the total shares outstanding.8 Revenue Recognition (a) (b) (c) The Company recognizes revenue of energy on issue of bills to the consumers for consumption of energy. as decided by the Board of Directors at the meeting held on 17. meter and transformer rent.1532 acres land from National Housing Authority (NHA) at Tk.2005.5% of Accounts Receivable balance standing at the balance sheet date.

the company pays to a retired employee.14 Taxation (a) Current Tax The tax currently payable is based on taxable profit for the year. DESCO Annual Report 2010 43 . Deferred Tax Liability The Company accounts for deferred tax liability as per Bangladesh Accounting Standard (BAS-12). 1.1. Group Insurance The Company has taken Group Insurance Endowment policy for its employees and provision for the premium on the coverage is made annually. approved by the NBR under Income Tax Ordinance.16 Reporting Currencies The financial statements presented are stated in Bangladesh Taka and rounded off to the nearest Taka.13 Retirement Benefit Plans (a) Contributory Provident Fund The Company maintains a Contributory Provident Fund (CPF). (b) (c) 1. The liability shown in the Balance Sheet does not reflect the present value of the expected payments by the company's retirement plan to existing and past employees attributable to the service already rendered and is therefore not in compliance with BAS 26. at the rate of two months' last drawn basic salary for every completed year of service.15 Borrowing Cost Interest on borrowed funds for ongoing projects is charged as expense. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Taxable profit differ from net profit as reported in the income statement because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. 1984. The company pays to the fund for the liability at the end of each year considering the number of years of service of employees eligible under the scheme. neither the "GOB Equity "nor the "Share Deposit" amounts have been considered for determining BEPS and no shares have been allotted against these receipts. (b) 1. Tax rate prevailing at the balance sheet date is used to determine deferred tax liability. Weighted average Number of shares Outstanding during the year: This represents the number of ordinary shares Outstanding at the beginning of the year plus the year the numbers of ordinary shares issued during the year multiplied by a time weighting factor. The company contributes an equal amount. recognized by the National Board of Revenue (NBR). The fund is managed and operated by a Board of Trustees. Diluted Earnings Per Share: No diluted Earnings per share was required to be calculated for the year under review as there is no scope for dilution of Earnings per share for the year.17 Reporting Period The accounting year of the company covers the period from 1st July to 30th June consistently. 1. Gratuity The Company maintains a Gratuity Fund. under which the employees contribute 10% of their basic salary to the fund. Deferred Tax is provided using the liability method for all temporary timing difference arising between the tax base of assets and liabilities and their carrying value for financial reporting purposes. (b) (c) 1. having completed at least 3 (three) years of service. An appropriate proportion of provision has been considered in calculating temporary timing difference. However. Under the Gratuity Scheme.12 Earnings Per Share (EPS) (a) Basic Earnings per Share (BEPS): Basic Earnings per share has been calculated by dividing the earnings attributable to the number of shares (ordinary) outstanding during the year. The time weighting factor is the numbers of days the specific shares are outstanding as a proportionate of the number of days in the year. The net earnings of the fund are apportioned to the Fund member's accounts at the end of the year.

500 5.72 million.383 (63.2 3.200 8.500 1.3) Prepaid Meter Pilot Project Boundary Wall Construction and Central Store / Bounia Substation Construction Office Shed & Land Development(notes-3.983 612.2009-2010 Taka 2 PROPERTY. The Company entered into an agreement with Bureau of Research.574.892.829 6. This represents construction of boundary fencing office shed and land Deveplopment of Purbachal (Total contract price is Tk12.5 44 DESCO Annual Report 2010 .090.894.3 3.954 2.119 608. Testing and Consultation ( BRTC) to implement Data Acquisition System (DAS) whereby different parameters of power quality would be available at 33kv & 11kv level for effective load management.592 2.935.442.222. This represents civil work for Bashundhara Sub-station.968 50.755.141. (Note 3. 183.187.710) 2.71 million).494.357.476.744 13. 8. The total contract price of the works is Tk.800) (7.000 21.Station .914 2.313.550.558 2.179.(Note 3.283.103.537.120 3. 33/11Kv Sub -Station under ADB Contract.5) 11.PROGRESS 33/11KV OH/UG Cable Line (Note 3.710) 10.894.396 (20.152 9.817.486.638.400) 9.617.187.1 33/11kv overhead & under ground cable works are in progress at Uttara & Mirpur respectively.482 555. The Company entered into an agreement with Energypac to implement 10 (ten) nos.350) 2.600) (12.971 10.176 335.567) (7.817.432 (23.103.081 3.188 283.1) 33/11Kv Sub.194.097.4 3.1 3 Detail of assets are shown in Annexure-1 attached.386.886.293. 3.077 27.548.Turnkey Project.783.954 (41. CAPITAL WORK -IN.574.476.164.1) Balance at 30th June Depreciation Balance at 1st July Less: Adjustment for disposal of equipment Less: Adjustment for disposal of vehicles Charged for the year Balance at 30th June Written down Value 10.440. The total contract price is Tk.280.148 11. The total contract price is Tk 2831 million.444 1.244.645.474 6. PLANT & EQUIPMENT Cost Balance at 1st July Less: Disposal of office equipment Less: Disposal of vehicles Additions during the year (2.920.396 7.4) Civil work for Bashundhara Sub-station.905.92 million.339.386.339.392 2008-2009 Taka 9.989.2) Data Acquisition System (Note 3.

including L/C charge and Pre -Shipment.139.16. 2. Month 2.037.901 249.000 2008-2009 Taka 29.451 5.401.963.283. 5.2 5 STORES & SPARES Stores & Spares -Note-5.844.791.059.964 4.452. month 4.753.180 354. month 2.050.0.637.636.1 Cost of Stores & Spares Cable & Accessories Pole & Pole fittings materials Distribution transformers Meter & meter accessories Sub-station Equipment & spares Tools & equipment & others 2.1 Receivable from Consumers are Categorised as Follows Government (Eqv.853.165.283 3.649 (164.556 DESCO Annual Report 2010 45 .4.919) 2.939 12.395/.049 121.475 2.519.472.401.392. 2008-09 :3.5) Average ( Eqv. The appreciation / (diminution) in value has been shown as income / (expense).649 98.294.per share on 30 June 2009 (Source: DSE Website).738.2) Receivable from DPDC against materials supplied Receivable from BPDB against materials supplied Expenses recoverable from employees Advertisement cost recoverable from other utility organization.Inspection (PSI) expenses.719 11.216 2.375.131.250.389. 803/.106 358.140.139.840.811.900 76.000 (5.per share as against Tk.193 5.2009-2010 Taka 4 INVESTMENT IN SHARES Balance at 1st July Add/Less appreciation / (diminution) in value of Investment Balance at 30th June 23.1 Stores in Transit -Note.372 2.950 175.419.624 3.887 190.173 55.494 2.799.131 shares of Tk.88 per share on 17/08/2010 as per Board decision taken in this matter in its meeting held on 03/05/20009. Out of the shares held.665.2 3.203.62) 182.382.203.193 4. 1000/.062.201 1.5.3 6 ACCOUNTS RECEIVABLE Receivable from consumers -(Note 6.306.855.807) 23.929.068. As on June 30.738.964 2.519.730 76.301 110. 2010 market price of the shares was Tk.928.799.040.785 287.31) Private (Eqv.546 2.753.556.173 197. 4.176.339 4.556 (152.756. 2.2 This represents cost of materials.1 This represents face value of 29.74) Semi.028.487 323.Government/Autonomous (Eqv.392.587.131.811.821.776. paid against import of materials for which post landing inspection (PLI) has not been completed.660 2.283.130 shares were subsequently sold at average sale price of Tk.656) 2. 29.671.112 5.807 29.660 860.405 2.each of ICB Islamic Bank Ltd (former Oriental Bank Ltd) allotted to the Company against fixed deposits in the Bank under the reconstruction scheme of Oriental Bank Ltd undertaken by Bangladesh Bank.237.363.545 352.74.332. 2008-09 : 3. Month 2. 1.217.448.971 5. 2008-09: 2.408 6.130.224 3.360 346.112 1. Stores & spares have been valued at weighted average cost.897.1) Less: Provision for doubtful debts (Note 6.299. 2008-09 : 2.452.

Tk.007.440 7.070.015.2) Security Deposits Telephone/ Mobile Dhaka City Corporation (against road cutting) Dhaka WASA Central Depository Bangladesh Ltd (CDBL) Others 96.394 79.16 million paid to GEMCO for purchase of transformers and Tk.366. 46 DESCO Annual Report 2010 .272.192.1 Advance against Office rent Others ( Note 7.169.766 2. 20. as per Company's policy.9.411 500.155.382.263 164.928) 386.432 134.906 742.656 12.963 104.256 356.141.928 60.958 11.5% of the amount outstanding at the balance sheet date.462. 61.412.656 7 ADVANCES & DEPOSITS Advances Against goods and services -Note 7.000 (386.263/-.000 (134.621 18.184.139 71.517.063 177.411 500. (AY-2010-11) Adjustment made during the year (Note-8.000. 7.901.1 Advance against goods & services includes Tk.494.000 1.240 20.898.621 28.981 6.73 million paid to BRTC.1 As the company's assessment has been finalized up to FY 2008-09 (AY 2009-10) after adjusting carried forward tax losses of previous years. 12.440 30.202 10.919 141.698 152. BUET against E-Governance Project. the excess provision has been adjusted against this head.2 2008-2009 Taka Provision made this year @ 0.394) 438.255 255.901.382.900.363 5.166.amounts to Tk.959 10.80 million against CFL bulb distribution.389.394 8.965 670.000 599.1) Balance at 30th June 386.007.962.2009-2010 Taka 6.31 million paid to Bangladesh Power Development Board (BPDB) against purchase of spun pre-stressed concrete (SPC) poles.079 183.149.320.022 134.149.474 204.2 8 ADVANCE INCOME TAX This is made-up as follows: Balance at 1st July Deducted at source (on interest on FDR & STD) during the year Deducted at source (on imported materials) during the year Income tax paid for FY 2009-10. Advance to others include Tk 1.322. This balance has been arrived at as under: Balance at 1st July Provision during the year Balance at 30th June 152.901.659.306 2.898.631 670.581.

865.541.617.702 8.495 1.136 186. Tk 2.826 7.078.689 111.826 11.668. 10.1 Power Grid Company of Bangladesh (PGCB).689 342.611.2 Fixed Deposits include Tk.070.1) Imported Materials against ADB loan (Note 10.092 1.25 million for LME price adjustment against imported materials under ADB loan.Note 11.1.058.949.420.446.079 1.102.1.412 702. against purchase of pole fittings materials.896.668.3 1.515 740.403.058.392.010.436.Sadia Ltd against purchase of pole fittings materials and Tk 0.489. 10 CREDITORS FOR GOODS Equipment & materials (Note-10.313 9.2) 2.79 million payable to Rangs Ltd against purchase of two cars Tk.1.103 1.302.531.55 million against purchase of energy meters. 9.368.1 Accounts Payable . Wahid Trader and M/s.372. which will be transferred to the Company's main Account in the next month. 11 ACCOUNTS PAYABLE Bangladesh Power Development Board (BPDB).1 Cash at Banks Current Account (Revenue collection) (Note 9.686.949.86.986) 123. (former Oriental Bank Ltd.1) Current Account (VAT) STD Accounts Fixed Deposits (Note 9. Sunrise International Ltd.491.347.542 6.386 87.622 2008-2009 Taka 55.422.081.543.548 8.705.490.959.2.115.410 8.723 7.096.949.405 9.943.064.263 57.528 (7.490.673 10.638 1.86 million in ICB Islamic Bank Ltd.320.Note 11.136 DESCO Annual Report 2010 47 .483 1.) which is subject to phase wise withdrawal restriction imposed by Bangladesh Bank under the reconstruction scheme.631.308.405 8.777) 1.320.054.658.242 577.335 438.02 million to Monospol Paper Manufacturing against purchase of printing & stationery .305.357.751 1.102 (6.992.201.1 This includes Tk 4.2 This includes provision of Tk 791.1 This represents collection for the month of June 10.412.039.963.150 9.607 628.655.904.320.392.2 Accounts Payable .904.494.69 million to M/s. Tk 2.463.639 1.1.195 10.617.904.808.2 Dhaka Electric Supply Authority (DESA) .1 44.043.808.397.826 123.210 796.20 million payable to M/s.118.078.346 (665.187 6.249.379 6.751 130.410 9.276) 1.2) 18.Note 11. by the different collecting banks.222.786.122 (616.734 438.136 672.742.173.483 9.600 11.668.2009-2010 Taka 9 CASH & BANK BALANCES Cash in hand Imprest Cash with S&D Divisions Cash at banks -Note-9.PGCB Balance at 1st July Wheeling charge during the year Payment made during the year Balance at 30th June 123.644.BPDB Balance at 1st July Energy purchased during the year Payment made during the year Balance at 30th June 1.657) 130.178 1.028.

425 62.098 1.761 53.939 53.284 14.972.026.388 747.095.092 410.779 Taka 53.360 33.025 3.250.182.381.309 24.788 248.220 342.668.473 28.756 172.705 31.146 31.135 170.2009-2010 Taka 11.616.528) 52.904.929 78.650.243.786) 767.665.893 8.927 2008-2009 Taka 53.666 (223.3) 55.920.102.527 714.2) GOB Loan (Note-14.149.149 900.279.250.638 12 CREDITORS FOR OTHER FINANCE Vat collected against electricity bills Tax / Vat deducted from contractors.746.837 186.506 21.359 14.639 2008-2009 Taka 147.098.052.091.025 4.528) 53.098 48 DESCO Annual Report 2010 .476 14 CURRENT MATURITY OF LONG TERM LOANS ADB Loan No-1505 (Note-14.687 (62.148 792.600.250.3 Accounts Payable .300 9.1 ADB (Loan No 1505) 2009-2010 $ Balance at 1st July Transferred from long term loan Paid during the year Adjustment as per ADB Schedule Exchange loss/(gain) Balance at 30th June 768.098 170.837 203.037.098 62.808 58.626 (62.102.722.000 194.000 205.222 6.683.208.098.172 5. suppliers & others Retention money ( contractors & suppliers) Receipts against Deposit Works Unpaid Dividend Others 89.249 55.DESA Energy Purchase and other costs Adjustment for DSL Stores materials Consumer bill collection 100.528 115.525 79.927 768.102.222 5.322.931.283.262 115.883 410.502.674.542.935 (906.786 1.135 $ 774.102.091.611.222 64.631 25.580 33.490 1.409.385.665.642.037.281 13 CREDITORS FOR EXPENSES Audit Fees Contribution to Provident Fund Contribution to Gratuity Fund Line maintenance & commercial services and others BERC sales charge 172.417 (900.747.260.561.481 254.480 257.605.847 4.819) 60.927 899.1) ADB Loan No-1731 (Note-14.514.159 355.520.951.514.347.514.008) 768.

705 Paid during the year Adjustment as per ADB Schedule Exchange loss/(gain) Balance at 30th June 2.324 454.527.528) 13.472.785.636 170.459.119.277) 34.934.228 (1.1) Adjustment during the year ( Note-16.193 454.1) Interest payable on 40% (Debt Portion) of GOB Loan(15.638.385 149.644) 168.311.946.705 (124.617 677.712.756 (74.2) 345.890.691) 153.244.149.078 4.913) 345.446 (48.461.149.657 762.149.578.845 4.869 34.744) (270.678 (307.057 293.250.675 15.705) (386.631.852 (37.496.703.070.132 1.990.546 533.2 ADB (Loan No 1731) 2009-2010 $ Balance at 1 July Transferred from long term loan st 2008-2009 Taka 2008-2009 Taka 170.795.213.1 ADB Balance at 1st July Less: Adjustment relating to previous year Interest accrued during the year Paid during the year Adjustment against dsl Balance at 30th June 15.110.385 DESCO Annual Report 2010 49 .505 34.296.557.181 967.990.795 Taka 169.864.339 124.369) 454.950.952 (56.487.948 (443.646) 2.463.483 48.394) 405.463.396 (124.787) 2.250.039 (74.177 51.371 867.141.795 1.592.481 15 ACCRUED INTEREST ON LOANS Interest payable on ADB Loan (15.474.020) 170.146 $ 2.954 170.549) 718.250.795 2.480 31.463.591) (154.2) Balance at 30th June 718.481 48.966) 31.202.195) 905.705 123.806.874 (1.590.496.1 Payment during the year ( Note-16.020 293.890.752 1.779 90.592.198.129.3 GOB Loan Balance at 1st July Transferred from long term loan Paid during the year Balance at 30th June 31.592.786.725 (123.256) 2.2 GOB Balance at 1st July Less: Adjustment relating to previous year Interest accrued during the year Paid during the year Balance at 30th June 16 PROVISION FOR INCOME TAX Balance at 1st July Provided during the year -Note-35.021.783.712.447 (48.785.084.901.206 1.931.781.026.965 80.885.505 204.874 (223.505 148.675 17.141.663.037.965 80.324 359.270.223.2009-2010 Taka 14.422.250.675 488.373 (158.890.084.790.966) 31.156.119.869 13.890.868 658.929.677.051 (1.866) 15.943.441 14.084.

000 75.559.2009-2010) has been finalized.510.000.66% 1.92% 1.1 Composition of Shareholding The composition of Share holding position as of 30th June.521 336.154 Local Company 255 1.8 which is disclosed in note 35. 100 each issued as Bonus 16.394 has been asjusted against advance income tax.17% 2.743 Mutual Fund 26 238.000. 17 SHARE CAPITAL Authorized 50000000 ordinary shares @Tk.21% 0.196.02% 100% Number of Share 331. the excess provision amounting to Tk. 100 each for consideration against Mirpur area assests taken over from DESA 3.00% 17.704.012.196.1 and Tk.000.49% 2.29% 8.420 1.361 Foreign Company 2 110.2009-2010 Taka upto that year.732 359.000 1.02% 2.44% 75.000.780 General Public 3864 1.12% 0.000.431 181.334.320.17% 0.017.601. Ordinary shares @ Tk.044 Nos.13% 1.29% 1.2 As Assessment upto FY. of shares @ 'Tk.69% 100.888 307.52% 0. 256. 100 each 5.901.92% 1.012.000 63. fully paid up in cash 11.2008-2009 (AY.00% 7.440 1.000 330.10% 0.up to Fy 2008-09 has been written back and adjusted with current tax expenses as per BAS .017.100 each.207 643. 2008-2009 Taka 16.2 Distribution Schedule The distribution Schedule as of 30 June.100 each Issued & subscribed 750.070 12.961.044 % of Share 75.274.17% 0.753.194.958 186.700 1.10% 1.351.000 1.64% 4.07% 4.017.305.000 ordinary shares @Tk.044 % of Share Capital 2.940 Nos.2008-2009 (AY 2009-10) on finalization of assessement 16.000 75. 386. 2010 are as follows: No of Share Holders Number of Share Sponsors (DESA) 7 12.1 This represents final payment of income tax liability upto FY.286/.058 306.12% 0. 2010 showing the number of shareholders and their shareholding in percentages is disclosed below as a requirement of the "Listing Regulation" of Dhaka stock Exchange (DSE) and Chittagong Stock Exchange (CSE).108 Investor A/C 34 745.178 Unit Fund 3 366.000. Range of Holding in Number of Shares 1 to 499 500 to 5000 5001 to 10000 10001 to 20000 20001 to 30000 30001 to 40000 40001 to 50000 50001 to 100000 100001 to 1000000 1000001 to10000000 No of Share Holders 3616 473 47 22 7 9 4 5 7 1 4191 % of Shareholders 86.104 Nos.00% 100% 50 DESCO Annual Report 2010 .223.440 5.700 17.194.720 4191 16.24% 8.759 16. Ordinary shares @ Tk.28% 11.24% 0.

124.170.274 1.828 Taka 1.730.960 1.788.000 The amount was received from DESA against shares of the company which have not yet been issued.513. 9th Power Project) This has been arrived at as under 2009-2010 $ Balance at 1st July Drawn Adjustment against DSL Transferred to Current Liability Adjustment as per ADB Schedule Exchange loss Balance at 30th June 14.233.782.563 321.1 Loan No 1731 .Note-37 Net Profit for the year Proposed Dividend Balance at 30th June 3.478.447.868.593.528) 848.219 175.3 854.633 (b) Loan from Government of Bangladesh (GOB ) Loan No (1505 & 1731 ) Note 21.678.140.011.964 1.140. 20 RETAINED EARNINGS Balance at 1st July Prior year's adjustment .005.866 6.639.678.531.Note 21.011.678.000.832.058.594.552.600 14.067.013.385 15.5 Total 272.Note 21.531.678.635 5.828 12.403 5.579.184 496.708.000 1.704.579.358.296.255 151.086 1.368.232 (15.600 2008-2009 Taka 1.757.704.067.874.533 1.397 (600.533 $ 15.118 2.978.013.274 (62.637.305.Note 21.429 4.195 5.208.013.4 Loan No 2332: Note 21.000 This represents 60% of loan received from the Government as "Equity" under Annual Development Program (ADP).757.1505.296.086 1.915 1.013. the balance 40% being shown as loan.482.344 423.949 6. directive.508.745.018.272.257. no share have been issued against such equity.655.165) 3.529.825. The primary loan agreement is between the ADB and the GOB.874.2 Loan No 2332 .492.704.232.232 21 LONG TERM LOANS (a) Loan from Asian Development Bank (ADB) Loan No 1505 .672) 1.000 19 GOB EQUITY 1.1 Loan from ADB (No .514.262) 1.013 8.629.786) 14.086 (103.566 3.378.607.871.073 1.600 14.600 (1. of Bangladesh (GOB).195 1.804. DESCO Annual Report 2010 51 .704.385 (900. 2008-2009 Taka 75.458.584 854.086 (i) This represents dollars amount drawn to date translated at exchange rate prevailing at balance sheet date for import of materials/ equipment for 9th Power Project under the Subsidiary Loan Agreement (SLA) entered into between the company and the Govt.037 21.482.2009-2010 Taka 18 SHARE MONEY DEPOSIT 75.609) (62.282) (899.655.599 6.629.522 4. In the absence of any Govt.337.490) 12.365.000.392.552.

248.550 3.972 Taka 1.616. The term of the project under which the loan was sanctioned expired on 30th June.annually on June 15 and December 15 .835. determined at the official rate of exchange prevailing on the date of each interest payment of the principal amount of the loan relent to DESCO disbursed and outstanding from time to time.459.e.445.098 9.866 .232.003.480. 10th Power Project) This has been arrived at as under 2009-2010 $ Balance at 1 July Add Drawn st 2008-2009 Taka $ 23.248.594. 2006.079) 19.785.616.248. The principal amount of the subsidiary loan is repayable in 25 years including a grace period of 5 (five) years in 40( forty) consecutive semi.305.annual installments on a semi-annual basis (i. The foreign exchange and interest rate risks are to be borne by DESCO during the repayment period of 20 years.236.118 1.e. The foreign exchange risk on the outstanding amount of loan shall be borne by DESCO.236.791.893 1.429 34.492. The term of the project under which the loan was sanctioned expired on 30th June.248.412.021.810.118 Transferred to Current Liability Exchange loss Balance at 30th June (i) 21. The company shall pay to the Government in local currency interest at the rate of 4% per annum on the local currency equivalent.845) 21.057) 1.604.372 2. June 15 and December 15 in each year). The installment is payable on a semi-annual basis (i.644. (ii) (iii) (iv) 21.382 1.069.408.020) 1.949 34.887 3.825.817 23.616.369.877. 2004.232.118 (123.2332BAN. determined at the official rate of exchange prevailing on the date of each interest payment of the principal amount of the Loan relent to DESCO disbursed and outstanding from time to time The interest is payable semi.378.073 (11. determined at official rate of exchange prevailing on the date of repayment . The principal amount of the subsidiary loan is repayable in 20 years including a grace period of 4 years in 32 consecutive semi.073 2.480. (iii) (iv) 21.429 1.644) 2.616.376.810.382 (124.040.604.492. each year).972 (1.365.817 (1.376.423 55. Sustainable Power Sector Development Project) This has been arrived at as under 2009-2010 $ Balance at 1st July Add Drawn Transferred to Current Liability Exchange loss Balance at 30th June 52 DESCO Annual Report 2010 2008-2009 Taka $ 34. The interest is payable on semi-annual basis.(ii) According to the terms of the agreement the Principal amount of the subsidiary loan repayable by DESCO and the Government under this agreement shall be in local currency equivalent. January 15 and July 15.835.793 1.949 20. of Bangladesh (GOB).e.325 12. the primary Loan agreement being between the ADB and the GOB.868.073 2.316 15.795.949 34. in each year).781.868. determined at official rate of exchange prevailing on the date of repayments.480.372 55.412.083.468 1.877.972 21. DESCO shall pay interest to the Government in local currency interest at the rate of 4% per annum on the local currency equivalent.893 19.040.877.248.972 21.365.040.2 Loan from ADB (No .372 55. As per the terms of the Agreement the principal amount of the subsidiary Loan repayable by DESCO to the Government shall be in local currency equivalent.868.3 Loan from ADB (No .annual installments as per Amortization Schedule. (i.949 Taka 2.492.511.949 34.316 3.376.566 This represents dollars amount drawn to date translated at exchange rate prevailing at balance sheet date for import of materials/ equipment for 10th Power Project under the Subsidiary Loan Agreement (SLA) entered into between the Company and the Govt. January 15 and July 15 in each year).1731.

000 210.5 Loan from GOB (2332) Balance at 1st July Received during the year Refunded during the year Balance at 30th June (i) 175.745.091.annual installments (i.962. as well as to meet other project related expenses . (i. The loan carries interest at 3% p.184 (48.184 370.219 321. (ii) 21.015.a.015. As per the terms of the Agreement the principal amount of the subsidiary Loan repayable by DESCO to the Government shall be in local currency equivalent. The balance 60% is accounted for under "GOB Equity". as well as to meet other project related expenses . of Bangladesh (GOB). and is repayable as per Debt Service Liability (DSL) schedule provided by the Government.800.219 This represents 40% of the amount released to the Company by the Government under Annual Development Program (ADP) to enable the Company to pay the customs duty & Vat on material/ equipment imported by the company under the ADB Loan.344 19. May 1 and November 1. The loan is repayable in 30 instalments starting from 2012 after a grace period of 5 years.124.890. in each year). 2012 (ii) (iii) (iv) 21. The balance 60% is accounted for under " GOB Equity". The foreign exchange and interest rate risks are to be borne by DESCO during the repayment period of 20 years.890. The principal amount of the subsidiary loan is repayable in 20 years including a grace period of 5 years in 30 consecutive semi.708.255 370. The interest is payable on semiannual basis.233.219 (48.2009-2010 Taka (i) 2008-2009 Taka This represents dollars amount drawn to date translated at exchange rate prevailing at balance sheet date for import of materials/ equipment for Sustainable Power Sector Development Project under the Subsidiary Loan Agreement (SLA) entered into between the Company and the Govt. DESCO shall pay interest to the Government in local currency at the rate of 4% per annum.184 (23.124.219 321.800.a.000 191.816) 175. Such interest shall be calculated on the total principal amount outstanding of the subsidiary loan.965) 321.4 Loan from GOB (1505 & 1731) This has been arrived at as under Balance at 1st July Received during the year Refunded during the year Transferred to Current Liability Balance at 30th June (i) 321.184 This represents 40% of the amount released to the Company by the Government under Annual Development Program (ADP) to enable the Company to pay the customs duty & Vat on material/ equipment imported by the company under the ADB Loan.124.000 (35. May 1 and November 1 in each year).184 370. determined at official rate of exchange rate prevailing on the date of repayment . The loan carries interest at 3% p.e.965) 272. and is repayable as per Debt Service Liability (DSL) schedule provided by the Government.708. (ii) DESCO Annual Report 2010 53 .840) 151.000.708. The term of the project under which the loan was sanctioned will expire on 30th June.184 175.015. the primary Loan agreement being between the ADB and the GOB.124.e.

711.471 871.4452 per kwh and pays wheeling charge to Power Grid Co.697 1.711.539 4.039.049 583.237.000 1.31% 0.733 33. Pump Construction & others Tariff A B C D E F H I J 2E % 43. Independent valuers have been appointed for identification.07% 0.482 744. meter testing fees.1 Area wise break-up is as under: Gulshan Area (comprising Gulshan.00% 4.261 9. 23 CONSUMER SECURITY DEPOSITS Balance at 1st July Received during the year Refunded during the year Balance at 30th June 734.853.742.039.922 (10.487.422.352) 854.701 130.555 9.974.742.2 Value of assets shown above are provisional.646.040.000 795.512.717.012.873.799.342.867. Ltd (PGCB) at Tk 0. meter rent etc.998.039.920.082 10.245.39% 0.071 441.781.525.995 This represents disconnection / reconnection fees.444.117.013 1. Dakshinkhan) Tongi Area (comprising Tongi East and Tongi West) Uttara & Bashundhara Grid Substation Balance at 30th June 1.297.31% 2.955.3 The terms and conditions of repayment to DESA against the assets taken over have not yet been determined.615.401 (17.539 2008-2009 Taka 4.2009-2010 Taka 22 DUE TO DESA FOR ASSETS TAKEN OVER 4.263.648.536 7.751.20% 13. Baridhara.531.712 8.39% 1. 2.671.1 Electricity is purchased solely from Bangladesh Power Development Board (BPDB) at the rate of Tk.2291 per kwh.539 4.217. Uttara.475.661 Taka 7.920.912 2008-2010 Unit (KWH) 2. 22.287 734.519 250. 26 ENERGY PURCHASE 2009-2010 Unit (KWH) Taka 2.977.013.013.225. valuation and recording of assets taken over from DESA which is under finalization.527.30% 100% 4.439 160.938.177 536.033.782 202.845.930 137.039.671.998.040.539 22.07% 0.348 33.433.930 24 ENERGY SALES Domestic Agricultural Pump Small Industries Non-Residential Commercial & Office Medium Voltage High Voltage (33kv &above) REB High Voltage Street Light.047.04% 34.378 3.000 795.188 205.810.669 478.009.238 26.734.961.247 3.539 1.671.289 136.647 19.712 25 OTHER OPERATING REVENUE 178.784. cost of materials realized. 54 DESCO Annual Report 2010 .621.852.305.636.226 4.539 22.671.000 1.992) 734.770 37.131.245.

331 421.538.238 712.386 76.473.848 15.393.344.084.320 992.278.508.128 886.673 5.539.814 661.703 28.2) Miscellaneous 150.624 977.633 5.644 87.301 30.567.508 12.977 125.339.355 996.261 370.216 4. Md Yousuf Bin Siraj.500 2.609 756.513 8.672 28. AM (SO).063.977.645 2. 0.661 2.567.Survey & Consultancy fees Staff Training Listing Fee & annual charges Transport Corporate Social Expenses (Note-28.699.000 6.007. Installation & Replacement of Meters Maintenance of distribution of line & equipment Repair & Maintenance of Transformer Revenue Stamp Charge Against Consumer Bill System operating Fee BERC ( Note 27.953 44.336 491.846 10.320.1 This represents provision on net sales value as "annual system operating fees" payable to Bangladesh Energy Regulatory Comision (BERC) for the FY 2009-2010 as per BERC rules.463 5.000 8.624 6.776 254.000 as board meeting fee for attending each meeting.268 70.240.702.026.896 314. DESCO Annual Report 2010 55 .561 713.887. telephone & internet Printing & Stationery Rates & Taxes Repair & Maintenance of Non operating Assets Repair & Servicing of Vehicle Recruitment Expenses Inspection .1 Directors are entilted to Tk 5.517.981.756 7.140.631 640.318.201.524 8.748 223.857 1.120.130 2.591 17.776.721.2 Corporate Social Expenses included Tk.61 million paid to Mr.739 87.000 1.861 14.386 1.690.506. 28 ADMINISTRATION EXPENSES Audit Fees Advertisement & Notices Annual Picnic Annual General Meeting Bank charges Conveyance Cleaning Expenses Directors' Fees(Note 28.302.347.121 1.913 15.165 301.097.072 5.732.923.670.818 5.824.320.722 3.891 6.310.913 455.440 3.642 11.030 11.324.032.327.637. gas & water Entertainment Fuel for Vehicles Honorarium to committee members Insurance of vehicles Legal & Professional fees Newspaper & Periodicals Office maintenance Office Rent Office Security Postage .310 1.793.604 2. 28.027.840.1) Less: Receipt against Deposit Work 94.732 3.171.422 126.750 363.882.553 27.280 6.227 526.217 1.756 10.479.084.825.1) Electricity.247 2.488.351.000 11.528.159.975 688.124 1.35 Milion paid electricity bill of National Poet Kazi Nazrul Islam's family.742 817.672 2.218 2008-2009 Taka 92.978.2009-2010 Taka 27 OPERATING EXPENSES Commercial operation Support Services Schedule & preventive maintenance Special Action Team & Collection Drive Consultancy Fees for Distribution network Consultancy Fees for valuation of assets.050 243.237 891.527 1.571.062.783 2.839.049.923.410 27.896 2. 0. against accidental death.89 Milion for Bisho Estema and Tk.951 2.608 411.Tk 0.069.250 12.644 12.258 104.

298 29.677 87.400.193.825 619.070.448.071.487) (10.168.679.847.118) Exchange fluctuation loss of Tk.193.861 42.657.933 1.519.836.789 11.195 68.879 2007-2008 Taka Directors Executives 3.683.32.has arisen out of translation of foreign currency loan into taka at balance sheet date at Tk.159 22.617 15.548.29.29. 2009.675 18.577.018.577 19.054. 30 INTEREST INCOME Interest earned on STD/FDR Late Payment Charge 803.580.380 7.2009-2010 Taka 29 EMPLOYEES EXPENSES Salary & allowances ( Note .289.186.864.774.69.970 249.794.475.2) Medical Expense reimbursed ( Note .255 2.775 3.783 5.69.853.779 169.076 189.222.29.619 1. 33 MISCELLANEOUS INCOME Sale of Tender Documents Sale of Obsolete Store Materials 445.688 69.168.361.555.868 17.166 11.389 2.045 153.685 99.651.29.929.177 221.988.395.936.922.124.129.952 29.3 Employee expenses increased due to implementation of new pay structure.380.603.507 56 DESCO Annual Report 2010 .529 2008-2009 Taka 249.903 108.236 385.487/.951 533.611.902.953 23. 29.295 872.679 61.048 8.411.101 2.157.052.50/$1 (2008-09: at Tk.877.083.915 84.820 15.925.754.490 597.722 4.638 159.249.406 2.685 2.837 334.2 Electricity bills and medical expense are reimbursed on actual basis to employees.396 32 EXCHANGE (LOSS) (32.876.600 2.2) Uniform Total Employees Expenses (Note.06/$1) and has been recognized as expenses as per BAS-21.3) 388. subject to ceiling.993 529. effective from July 01.732 11.100 666.200.818 2.285 129.788 31 INTEREST EXPENSES Interest Expense against ADB loan Interest Expense against GOB loan 204.1 Remuneration of Director and Executives 2008-2009 Taka Directors Executives Salary and Bonus House rent Provident Fund Dearness Allowance 5.1) Festival Bonus Incentive Bonus Company's Contribution to provident fund Company's Contribution to gratuity fund Group Insurance premium Electricity/ telephone expense reimbursed (Note .921 29.

537) 990.370 555. Deferred Tax Provision Balance at 1st July Addition during the year Adjustment relating to previous year Balance at 30th June Calculation of deferred tax this has been arrived as under Carring amount of Assets Tax base amount of Assets Temporary Difference Effective Tax Rate Deferred Tax Provision during the year 990.68 1.251.475 for the year 2009-2010.044 111.213.706 8.544.475. 256.097.544.948.312.up to FY 2008-09 has been written back and adjusted with current tax expenses as per BAS 8.556.749. Current Tax( rate 27.371 223.274.097.473.635 16.026.037.944.307.017.037.2009-2010 Taka 34 DEPRECIATION Depreciation (Operating) Depreciation (Non operating) 566.007.367 4.311.231 223.914 533.1 The Company's income tax assessment up to the FY 2008-2009 ( AY 2009-2010) has been completed and agreed upon.50% 1.542.337.781.846 2008-2009 Taka 518. Previous year's figures have been restated for the issue of 26. 35.2 Provision for deferred tax has been made an amount of Tk 223.572 405.371 As Assessment upto Assessment Year 2009-2010 ( Financial Year 2008-2009) has been finalized the excess provisions amounting to Tk.544 36.35 36.1984.69.522 16.860.835.286) 149.828 (1.607.5%) for the year Less: Previous year over provision Current tax expenses 2.892.263 2.544.472.231 36 EARNING PER SHARE (EPS) Earning Per Share Earning attributable to ordinary Shareholders Number of shares outstanding Basic Earning Per Share 1.017.957 41.084 149.475 1.286/.213.132 35 INCOME TAX Current Tax Provision (35.730.788.127 608.481 608.392 4. DESCO Annual Report 2010 57 .416.657 (256.161.542.141.1 Earning per share has been calculated in accordance with BAS -33 "Earning Per Share (EPS)".132 533.413.347.472. The details of current tax calculation are given below: Profit before tax as per income statement Add: Accounting depreciation to be consider later on Bad debt Provision Depreciation as per 3rd Schedule of Tax Ordinance.2) Tax Expenses 35.581.768 1.666.291.440.835.706 1.291.256) 1.608.213.274.025 27.084 12.475 372.706 1.1) Deferred Tax Provision (35.835.507 Bonus Shares during the year.044 100.608.768 (618.

no circumstances have arisen since the Balance Sheet date which would require adjustment to. Employment throughout the year in receipt of remuneration aggregating Tk 36.557 1. 41 CAPITAL COMMITMENT 41.1 Proposed Dividend Subsequent to the balance sheet date.623. land development. Walki talki set burnt in previous year accounted for. to conform to current year's presentation to facilitate comparison.1 The Company has entered into contracts for various construction works.) 29.130 shares were subsequently sold on 17/08/2010 at an average sale price of Tk.490. Employment for a part of the year and in receipt of remuneration aggregating Tk 3.593) (15.) in previous year accounted for.766. Company Secretary Director (Finance) Director Managing Director Signed in terms of our separate report of even date annexed. 38. total amount of cash and stock dividends is Tk.998. Thus.915 38 SUBSEQUENT EVENTS-DISCLOSURES UNDER BAS 10 "EVENTS AFTER THE BALANCE SHEET DATE". 40 CREDIT FACILITY AVAILED There was no credit facility availed of by the company under any contract as on June 30. i. 03 bonus shares for every 10 shares held at record date of the year ended June 30.272. Dhaka. 2010.560) 4.251.per share and stock dividend @ 30%. 2. 720.593.000 (44. the Board of Directors in their meeting held on October 28.88 per share as per Board decision taken on 03/05/2009.537 135.00. 31 October. 15/.000 or more per annum b.000 or more per month 993 Nil 993 890 101 991 43 GENERAL Previous year's figures have been re-arranged.392.2 Sale of Investment Out of 29. 2010 58 DESCO Annual Report 2010 Aziz Halim Khair Choudhury Chartered Accountants .621 518. 2010 other than trade credit available in the ordinary course of business. 38.e. or disclosure in the financial statements or notes thereto. (former Oriental Bank Ltd.481 (1. Excess provision of deferred tax written back Excess provision of Income tax written back Excess provision of interest on ADB & GOB Loan written back Exchange fluctuation loss of prior year (18. Except the fact stated above. The dividend proposal is subject to shareholders' approval at the forthcoming 14th AGM.131 shares held in ICB Islamic Bank Ltd.068.800) 618. installation renovation and dismalting O/H and U/G cables to the tune of Tk 2. the Company may have to incur additional cost after finalization of the value of the assets. works of which will be started in the next financial year.251. wherever necessary.2009-2010 Taka 37 ADJUSTMENT RELATED TO PREVIOUS YEAR Energy purchase for previous year payable to DESA Interest income of ICB Islamic Bank (former Oriental Bank Ltd.221. 2010 recommended cash dividend of Tk. 42 EMPLOYEES' SALARY a.691. 39 CONTINGENT LIABILITY 39.672) 2008-2009 Taka 4.1 As the value of assets taken over from DESA in the Gulshan and Tongi area have been shown at estimated value.902 million.

022 846.790.710) 169.742 5 Office Equipment 4 100.746.598 2.25 Milion was purchased.890 170.466 Km Service Cable etc.674. 4. 4.394. 4) Office Equipment comprise Communication Equipmet .125 13. of Distribution Transformer.415.835.012 10% 9.382 (20.123 3 Motor Vehicles 3 115.270 14.182.585 4 Furniture & Fixture - 24. of cars at tolal cost of Tk.537.755.722.511. Plant & Equipment as at 30 June 2010 Annexure-1 Cost Addition during the year 1.541.50% 31.050 7.277) 3.4 Kv. 2) Building includes Store Godown Sheds.800) 114.228. of Jeep at the cost of Tk.488.614 3.of old vehicles were disposed through public auction.838. 59 .643 15%-20% 58.778 (41.043.285 21.021 Total 10. 11 (eleven) Nos.978.414 134.241. Boundary Wall. Addition represents Tk.392 Adjustment for disposal Total as on 30-6-2009 Rate Balance as on 01-07-09 Charged during the year Adjustment for disposal Total as on 30-06-10 Written down value as on 30-06-10 Depreciation Written down value as on 30-06-09 906.735.723.041 96.239.185 3.935.241.229.710) 1.081 3.320.179 608.300 14.146.Schedule of Property.184.537.972 390.621 2.1. Computer & Peripherals .467 (7.668 2.125.902.367 25.79 Milion and 01 (one) No.627.247.148 (7.510) 11.939.750 12.894. overhead and 20.518.079 32.476.825. Badda.153.426.645.151 907.998 2.558 Sl Category of Assets No.566.817. 5) Addition to Distribution Equipment includs 528 Nos.366.444 38.182. DESCO Annual Report 2010 6) During the year 137.187.997 37.490.859.994 6 Distribution Equipment 5 3.327.954 1.113.933 1.744 42.386.87 Km of 11Kv & 11/0.440. Dhaka.177.618 2%-10% 2.036. Note Balance as on 01-07-09 1 Land 1 906.786 2.566.285 14.977.425.373.767.075 7 Distribution Line 6 5.090.408 2.892.872.493.000 (7.414 2 Building 2 165.817.002.201 8.875 20% 82.141.988.383.010.449 226.749.494.293.712.396 7.028 131.317.53 Km of 33Kv underground line was laid.207 17.007 2%-10% 675.664 Km Conductor and 1.749.799. Electric and Store Equipment etc.097.032.339 4.920.900. 9.935.567) 26.942.568 75.028 907.570 122.592 Note: 1) Addition to land is for registration and incidental cost of 40 decimel land acquired during the year at Dumni Mouja.719.920.175 (7.28 paid for development of Gulshan S&D office building 3) During the year 02 (two) Nos.044 5.

48 1.4452 0.62 3. Street Light and Pump-J 4.49 2.20 3. BPDB to DESCO (for energy) PGCB to DESCO (for wheeling) 60 DESCO Annual Report 2010 .80 8. Tariff Category Present Tariff (from October 01.00-23. 5. Very High Voltage-G (132 KV) i) Time: 23.00 iv) Flat Rate 8.80 3.50 3.52 2.82 3. 2008) Taka/KWH 2.00-17. Medium Voltage-F (11 KV) i) Flat ii) Off-peak hour iii) Peak hour 7.86 1. No. 2.58 3.25 1. Non Residential-D (Charitable Industry) Commercial -E i) Flat ii) Off-peak hour iii) Peak hour 6.Tariff RETAIL TARIFF Sl. Domestic-A i) from 00 to 100 units ii) from 101 to 400 units iii) above 400 units 2.35 5. Agriculture-B Small Industries-C BULK PURCHASE TARIFF Sl.45 3.30 3. Tariff Category Consumption Slab Present Tariff (from March 01.00 iv) Time: 17. No.93 i) Flat ii) Off-peak hour iii) Peak hour 4.00-06.00-13.2291 1.00 iii) Time: 13.14 6. 2008) Taka/KWH 2.03 6. 3.02 3.20 5.15 5.00 ii) Time: 06.66 5. High Voltage-H (33 KV) i) Flat ii) Off-peak hour iii) Peak hour 9.73 1.

...... Note: The proxy form should reach the Corporate Office of the Company not less than 48 hours before the time fixed for the meeting i......................................... (DESCO) do hereby appoint Mr................................................................... ...... ........ Note: Please present this slip at the Reception Desk................... : ........ Date: ....................00 am........................................................................................................e........... Signature Verified Authorized Signatory Dhaka Electric Supply Company Ltd........................................................................ (DESCO) Attendance Slip I hereby record my attendance at the 14th Annual General Meeting being held on Monday........ Bashundhara Residential Area.................... 2010.................... Bashundhara Residential Area............................................ : ............................................... As witness my hand this day of ............................................................................................................... at Bashundhara Convention Center.....................Proxy Form I/We.......of .............................................................. Dhaka and at any adjournment thereof............................/Miss............ the 3rd January.. Dhaka BO ID No..................... (Signature of the Proxy) BO ID No............................................................ Date: .............................................................................................. as my/our proxy to attend and vote for me/us on my/our behalf at the 14th Annual General Meeting of the Company to be held on Monday............................/Mrs.................................................... 8/- (Signature of the Shareholder) BO ID No......... 2011 within office hours...... 2011 at 11........... the 3rd January.................................................................................. at Bashundhara Convention Center.... being a member of Dhaka Electric Supply Company Ltd................ Date: ...................................................................................... Baridhara................... Baridhara................... not later than 1st January.. Name of the Shareholder/Proxy .......................................................of ............................................... .......... 2011 at 11........ Signature ...........................................00 am............................... : ........................ Affix Revenue Stamp of TK.....................

11/11/2010................. . Road # 24............................... of .. Signature of the Member(s) must be in accordance with the Specimen Signature recorded with the Company.............. Option for Receiving Dividend I/We ............................ shall be borne by the Member(s) in case of payment of dividend through transfer to the Member(s) Bank Account as per SEC notification...........DHA RISUPL C PA Y L D.................................. K CP YO N T A E L C T M House # 3..... Banani Model Town.... ........................... Bank Account details and Address shall be considered final as provided by CDBL on Record Date i.. Dhaka .............................. Block # K.e......... Applicable service charge........1213.. do hereby exercise my/our option to receive dividend in the following manner: Please (√) in the applicable box In the form of Dividend Warrant Through transfer to my/our Bank Account recorded with the Company Required information of the Member(s): BO ID Number Mobile Number E-mail (if any) Signature Verified by Signature of the Member(s) Authorised Signatory of the Company Notes: The form duly completed must be submitted at the Company’s Registered Office on or before 15/01/2011......... Number of Shares................ if any.................... being Member of Dhaka Electric Supply Company Ltd..

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com Web: www. Block # K Banani Model Town.1213 Telephone: 8859642.bd . 8860341.org. Dhaka . mddesco@bdcom.desco.bd.DHAKA ELECTRIC SUPPLY COMPANY LIMITED House # 3.org. Fax: 8854648 E-mail: info@desco. Road # 24.

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