DESCO STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2007 Amonunt (Taka) OPERATING REVENUE Energy

Sales (Net of Vat) Other Operating Revenue Total Revenue from Operation COST OF ENERGY SALES Energy Purchase (including wheeling charge) Operating Expenses Depreciation (Operating) Gross Margin COST & EXPENDITURE Administrative Expenses Employee Expenses Bad Debts Provision Depreciation (Non Operating) Operating Profit NON OPERATING INCOME/(EXPENSE) Interest Income Interest Expenses Exchange Fluctuation (Loss) Appreciation / (diminution) in value of Investment Gain on sale of Investment Miscellaneous Income Non Operating Income (Net) Net Profit before Tax INCOME TAX Current Tax Provision Deferred Tax Provision Net Profit after Tax Retained Earnings at 01 July 2006 GOB Equity Priors year's adjustment Cash Dividend paid Retained Earnings at 30 June 2007 Vertical Horizontal Analysis Analysis 14.96% 260.03% 16.70% 12.66% 395.94% 20.50% 19.55% 7.44% 26.22% 35.27% -14.57% 44.28% 31.47% 2.80% #DIV/0! 68.04% -102.72% #DIV/0! #DIV/0! 139.72% -94.34% 44.25% 50.00% 104.57% 86.10% 22.87% 16.10% -98.21% -116.44% #DIV/0! 16.58%

7,219,587,714 97.81% 161,691,524 2.19% 7,381,279,238 100.00% 4,946,360,677 393,778,258 442,201,454 5,782,340,389 1,598,938,849 73,721,100 206,076,932 9,573,967 27,364,536 316,736,535 1,282,202,314 247,105,883 -283,783,491 5,657,843 0 0 9,895,780 -21,123,985 1,261,078,329 -150,000,000 -400,000,000 -550,000,000 711,078,329 3,249,973,094 6,000,000 76,116,003 -254,238,800 3,788,928,626 67.01% 5.33% 5.99% 78.34% 21.66% 1.00% 2.79% 0.13% 0.37% 4.29% 17.37% 3.35% 3.84% 0.08% 0.00% 0.00% 0.13% 0.29% 17.08% 2.03% 5.42% 7.45% 9.63% 44.03% 0.08% 1.03% 3.44% 51.33%

Worksheet-01: Horizontal and Vertical Analysis of Statement of Income and Retained Earnings (2006-2007)

Examination of the Statement of Income and Retained Earnings (2006-2007) shows the following1. Net Energy Sales increased 14.96% in 2007. We can attribute this to the increasing demand for Electricity in both local and global market. 2. Other Operating Revenue increased 260.03% in 2007. However, Other Operating Revenue provides only 2.19% of total operating revenue. So, its effect is largely ignorable. 3. Total Operating Revenue increased 16.07% in 2007. The increase in revenue means that DESCO had a positive growth in 2007. 4. Cost of energy sales increased 19.55% in 2007. This increase is larger than the increase in Total Operating Revenue. So, we can interpret that the percentage increase in production cost was larger than the percentage increase in sales price. 5. Gross Margin increased 7.44% in 2007. This can be attributed to the fact Cost of Energy Sales is only 78.34% of Total Revenue from operations. So, even though that the percentage increase in production cost was higher than the percentage increase in sales, DESCO nonetheless had a positive growth in Gross Margin. 6. Operating Cost and Expenditure increased 31.47% in 2007. This means that the costs that are not directly related to production increased substantially. 7. Interest Income was 247,105,883 tk. But, as there was no Interest Income in 2006, Horizontal Analysis failed to provide a reasonable result. 8. Non Operating Profit (Net) shows the difference between Total Non Operating Income and Total Non Operating Expense. As it decreased by 94.34% in 2007, we can interpret that the increase in Total Non Operating Income was substantially larger than the increase in Total Operating Expense. 9. Net Profit before Tax increased 44.25% in 2007. This is largely due to the fact that Interest Income was 247,105,883 tk in 2007, compared to no interest in 2006. 10. Income Tax rose by 86.10% in 2007. This had a negative effect on the percentage increase in Net Profit after Tax. 11. Net Profit after Tax increased 22.87% in 2007. However, it was only 9.63% of the Total Operating Revenue. 12. Cash Dividend Paid was 254,238,800 tk. But as no dividend was paid in 2006, Horizontal Analysis failed to provide a reasonable result.

26% 13.97% 1.50% 94.93% #DIV/0! #DIV/0! -88.189.66% 10.75% 16.294.470.752.00% Amonunt (Taka) OPERATING REVENUE Energy Sales (Net of Vat) Other Operating Revenue Total Revenue from Operation COST OF ENERGY SALES Energy Purchase (including wheeling charge) Operating Expenses Depreciation (Operating) Gross Margin COST & EXPENDITURE Administrative Expenses Employee Expenses Bad Debts Provision Depreciation (Non Operating) Operating Profit NON OPERATING INCOME/(EXPENSE) Interest Income Interest Expenses Exchange Fluctuation (Loss) Appreciation / (diminution) in value of Investment Gain on sale of Investment Miscellaneous Income Non Operating Income (Net) Net Profit before Tax INCOME TAX Current Tax Provision Deferred Tax Provision Net Profit after Tax Retained Earnings at 01 July 2007 GOB Equity Priors year's adjustment Cash Dividend paid Retained Earnings at 30 June 2008 9.798.55% 5.48% 22.62% 934.25% -1615.395 34.524.248 499.00% 18.23% 0.686.371 320.07% 5.295.68% 5.184.65% 114.020 2.565 -521.831.788.91% 2.67% 37.85% 36.86% 12.215 99.720.65% Horizontal Analysis 24.162.500.518 9.94% 701.946.936 0 0 1.00% 0.088.50% 24.14% 40.89% 41.00% -131.901.78% 0.000 -550.70% 32.532 -317.177.500.29% 24.44% 75.82% 40.24% 0.071.242.775.00% 66.15% -9.371.990 45.000 1.012.500.147.46% 48.000.250 295.928.22% 5.565 3.000 -23.12% 25.94% 3.98% 25.36% -24.170 176.84% 9.34% 19.564.713.673.688 6.821.151.92% 100.627 22.76% 2.482.000.DESCO STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2008 Vertical Analysis 98.26% 3.00% 0.072.37% 5.668 83.40% 0.96% 20.016 2.500 4.549 529.699 -255.386.99% 11.331.522 6.58% 275.167 273.49% 0.01% 3.08% 1.08% 0.160 Worksheet-02: Horizontal and Vertical Analysis of Statement of Income and Retained Earnings (2007-2008) .119 1.000 -1.56% 64.277.666.60% 24.342 490.33% 247.26% 54.

Net Profit after Tax increased 40. This can be attributed to the increase in Non Operating Income (Net).33% in 2008.85% in 2008. Income Tax rose by 94.94%. 5. Gross Margin increased 40.89% of the Total Operating Revenue.15% in 2008 but Interest Expense decreased by 9. This had a negative effect on the percentage increase in Net Profit after Tax.26% in 2008.75% in 2008. However. Operating Cost and Expenditure increased 54.82% in 2008.92% of total operating revenue. this result was negative in 2007. So.14% in 2008. Cost of energy sales increased 20. its effect is largely ignorable. This means that DESCO did better financially in 2008 than it did in 2007. Non Operating Income (Net) was 320. Interest Income Increased 114.016 tk in 2008. 9. This percentage increase in gross margin is substantially larger than 2007’s percentage increase of 7. 7. 10. The increase in revenue means that DESCO had a positive growth in 2008. This means that the costs that are not directly related to production increased substantially. This increase is smaller than the increase in Total Operating Revenue. we can interpret that the percentage increase in production cost was smaller than the percentage increase in sales price.50% in 2008. Other Operating Revenue increased 9. Other Operating Revenue provides only 1.147. 2. we can interpret that DESCO managed to sale at a larger profit in 2008.Examination of the Statement of Income and Retained Earnings (2007-2008) shows the following1. Cash Dividend Paid increased 25.29% in 2008. 4. . Net Profit before Tax increased 64. Non Operating Income was substantially larger than Non Operating Expense. Net Energy Sales increased 24. So. Total Operating Revenue increased 24. So. As.44%. a better percentage than 2007’s ratio of 9. We can attribute this to the increasing demand for Electricity in both local and global market. 6. As a result.84% in 2008. Net Profit after tax was 10. horizontal analysis has failed to provide a reasonable result. 3. 12.63%. 11. This is a positive indication of DESCO’s profitability in 2008.00% in 2008. 8.

794.320.40% 5.615.37% 25.658.799.915 -317.03% 4.66% 1.73% -5.544 7.17% Horizontal Analysis 8.654 -533.918.24% 5.80% 0.472.56% -123.145.71% -24.698 36.34% 0.680 666.396 -10.70% 0.738.21% 60.800.395.841.60% 18.160 287.DESCO STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2009 Vertical Analysis 97.500 7.87% 15.117.370 486.692 1.132 0 -533.238 223.041.475.77% 3.132 1.222.392.840.470.00% -50.272.122.666.44% 1.37% 3.580.35% 25.07% 44.79% 13.05% 3.703 334.69% 2.335 2.11% 0.607.472.921 11.407.74% Amonunt (Taka) OPERATING REVENUE Energy Sales (Net of Vat) Other Operating Revenue Total Revenue from Operation COST OF ENERGY SALES Energy Purchase (including wheeling charge) Operating Expenses Depreciation (Operating) Gross Margin COST & EXPENDITURE Administrative Expenses Employee Expenses Bad Debts Provision Depreciation (Non Operating) Operating Profit NON OPERATING INCOME/(EXPENSE) Interest Income Interest Expenses Exchange Fluctuation (Loss) Appreciation / (diminution) in value of Investment Gain on sale of Investment Miscellaneous Income Non Operating Income (Net) Net Profit before Tax INCOME TAX Current Tax Provision Deferred Tax Provision Net Profit after Tax Retained Earnings at 01 July 2008 GOB Equity Priors year's adjustment Cash Dividend paid Retained Earnings at 30 June 2009 9.372 104.553 518.06% 0.33% 16.712 205.00% 1178.015.700.13% 8.507 482.95% 2.097 Worksheet-03: Horizontal and Vertical Analysis of Statement of Income and Retained Earnings (2008-2009) .00% 63.33% 0.05% 100.00% 0.004.00% 5.140.57% 6.30% -100.859.775.67% -5471.531.82% 21.14% -4.707 7.793.75% 50.72% 3.36% -88.73% 16.225.686.87% 16.807 0 2.37% 4.11% 0.337.522 4.974 2.97% -0.000 1.798.577.08% 22.118 -5.56% 21.00% 71.88% 6.995 10.14% 2.18% 78.90% -33.809.32% #DIV/0! #DIV/0! 121.88% 12.30% 2.788 -169.18% 73.

13% in 2009. 11. 5.14% in 2009. So. .50%. This means that the costs that are not directly related to production decreased slightly. 4. This had a positive effect on the percentage increase in Net Profit after Tax. So. This decrease resulted in DESCO having less operating profit in 2009 compared to the operating profit in 2008.90% in 2009 but Interest Expense decreased 33.Examination of the Statement of Income and Retained Earnings (2008-2009) shows the following1.30% in 2009.07% of the Total Operating Revenue. Income Tax fell by 50. Cash Dividend Paid in 2009 was exactly the same of that paid in 2008. While this is only a slight increase. Gross Margin decreased 4. it still managed to provide a positive result after the percentage decrease in gross margin. This means that DESCO did better financially in 2009 than it did in 2008.35% in 2009. 7. we can interpret that while DESCO had a positive growth in 2009. This had a positive effect on Net Profit before Tax.84%.60% in 2009. While this increase in itself is positive. Net Profit before Tax increased 3. a better percentage than 2008’s ratio of 10. 12. We can attribute this to the smaller profit percentage of DESCO in 2009. The increase in revenue means that DESCO had a positive growth in 2009. This increase is larger than the increase in Total Operating Revenue. but it is smaller compared to 2008’s percentage increase of 24. However. its growth was slower compared to the growth in 2008. 10. but it was considerably smaller than 2008’s growth of 24.73% in 2009. Non Operating Income (Net) increased 50. Other Operating Revenue provides only 2. 3. Net Energy Sales increased 8. its effect is largely ignorable. Net Profit after Tax increased 60. 9. we can interpret that the percentage increase in production cost was larger than the percentage increase in sales price.05% of total operating revenue. Other Operating Revenue increased 16.77% in 2009. 2. 6. Operating Cost and Expenditure decreased 0.56%. So. 8.73% in 2009. Total Operating Revenue increased 8. Cost of energy sales increased 13. we can interpret that DESCO wanted to increase its Retained Earnings by a larger amount. As Net Income after Tax was larger than 2008. Net Profit after tax was 16. Non Operating Income was substantially larger than Non Operating Expense.21% in 2009. Interest Income Increased 25. As a result.89%.87% in 2009.

63% 0.037.327 126.759.05% 0.00% 0.414 100.159.529 12.487 5.94% 2.007.032.217.425 8.378.75% 20.22% 5.332.06% #DIV/0! -30.407.431 872.475 -372.974.71% Worksheet-04: Horizontal and Vertical Analysis of Statement of Income and Retained Earnings (2009-2010) .27% 13.28% 66.050 2.84% 10.04% 79.71% 19.534.03% 3.635 71.23% 9.32% -13.29% 63.12% 9.39% 2.16% 11.96% 7.00% 19.490 -221.347.28% -200.788.083.603.226 98.544.738.200.656.097 0 -15.16% 78.263 41.981.807 0 2.087 2.371 -223.045 -32.161.DESCO STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2010 Amonunt (Taka) OPERATING REVENUE Energy Sales (Net of Vat) Other Operating Revenue Total Revenue from Operation COST OF ENERGY SALES Energy Purchase (including wheeling charge) Operating Expenses Depreciation (Operating) Gross Margin COST & EXPENDITURE Administrative Expenses Employee Expenses Bad Debts Provision Depreciation (Non Operating) Operating Profit NON OPERATING INCOME/(EXPENSE) Interest Income Interest Expenses Exchange Fluctuation (Loss) Appreciation / (diminution) in value of Investment Gain on sale of Investment Miscellaneous Income Non Operating Income (Net) Net Profit before Tax INCOME TAX Current Tax Provision Deferred Tax Provision Net Profit after Tax Retained Earnings at 01 July 2009 GOB Equity Priors year's adjustment Cash Dividend paid Retained Earnings at 30 June 2010 Vertical Horizontal Analysis Analysis 10.62% 10.00% -7.90% 30.33% 85.593.61% 0.02% 9.74% -100.00% 0.646.00% 12.810.532.96% -72.688.813.14% 3.188 1.280.581.018.00% 7.38% 178.16% 9.02% 5.127 798.39% 16.29% 0.285 627.67% 1.00% #DIV/0! 1.846 1.635 7.23% 1.845.00% 29.13% 8.77% 64.672 -333.77% 21.730.36% 2.312.11% 0.855.191.47% 30.989.01% 0.38% 7.28% 204.193.31% 10.957 8.481 -149.977 619.15% 5.90% 0.320.749.00% -101.896 1.218 566.66% 10.912 243.23% 5.

. 10.96% in 2010. As the percentage increase in Net Income after Tax was slightly larger than that of 2009. So. its effect is largely ignorable. Operating Cost and Expenditure increased 64.62% of total operating revenue. it is less than that of 2009. Other Operating Revenue decreased 13. Cost of energy sales increased 8. The increase in revenue means that DESCO had a positive growth in 2010. This is significantly smaller compared to the 60. Cash Dividend Paid increased 5. Other Operating Revenue provides only 1. This means DESCO had less efficiency in running its operation in 2010 compared to that of 2009.16% in 2010. we can interpret that the percentage increase in production cost was smaller than the percentage increase in sales price. Non Operating Income (Net) increased 29.00% in 2010.84% in 2010. This increase is smaller than the increase in Total Operating Revenue. 2. 9. we can interpret that DESCO had a more success in 2010 compared to 2009 in terms of revenue. So.32% in 2010.60% increase it had in 2009. This had a positive effect on the percentage increase in Net Profit after Tax. This is a negative indication of DESCO’s profitability. we can interpret that DESCO wanted to increase its Retained Earnings by a larger amount. Total Operating Revenue increased 9.29% in 2010. Net Profit before Tax increased 0. Income Tax fell by 30.75% in 2010. This growth is also slightly larger than 2009’s growth of 8. 11.75% in 2010. This had a positive effect on Net Profit before Tax. This increase is slightly larger than 2009’s increase of 8. 5. So.47% in 2010. 4. Net Profit after Tax increased 11. 3.73%. This means that the costs that are not directly related to production increased significantly. Operating profit decreased 7. 12. 7. Net Energy Sales increased 10. 8.90% in 2010. Gross Margin increased 8. However.87%. While this is only a slight increase. This increase means that DESCO had more operating profit in 2010 compared to its operating profit in 2009.16% in 2010.Examination of the Statement of Income and Retained Earnings (2009-2010) shows the following1. 6.00% in 2010.

00% 8.26% 2.14% 0.63% 1.279.781.476 795.961.35% 11.246.919.851.267 -516.666 9.794 217.59% 22.255.04% 6.11% 9.679.51% Worksheet-05: Horizontal and Vertical Analysis of Statement of Income and Retained Earnings (2010-2011) .082.75% 5.33% 4.257.598.55% 9.41% 1.827.37% 16.04% -28.098.20% 4.317 575.173 0 31.54% -17.539 45.527 -501.759.94% -100.796.43% 30.11% 0.82% 19.00% 13.48% 12.894 -277.30% 4.36% -81.44% -10.362.793 19.832 2.914 659.587.512 161.296.396 70.014.800 1.478.847 2.005 9.425 98.00% -50.69% 3.146 -240.DESCO STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2011 Amonunt (Taka) OPERATING REVENUE Energy Sales (Net of Vat) Other Operating Revenue Total Revenue from Operation COST OF ENERGY SALES Energy Purchase (including wheeling charge) Operating Expenses Depreciation (Operating) Gross Margin COST & EXPENDITURE Administrative Expenses Employee Expenses Bad Debts Provision Depreciation (Non Operating) Operating Profit NON OPERATING INCOME/(EXPENSE) Interest Income Interest Expenses Exchange Fluctuation (Loss) Appreciation / (diminution) in value of Investment Gain on sale of Investment Miscellaneous Income Non Operating Income (Net) Net Profit before Tax INCOME TAX Current Tax Provision Deferred Tax Provision Net Profit after Tax Retained Earnings at 01 July 2010 GOB Equity Priors year's adjustment Cash Dividend paid Retained Earnings at 30 June 2011 Vertical Horizontal Analysis Analysis 13.24% 12.500 13.61% 1503.02% 0.61% 0.337.573 8.93% 79.338.38% 11.92% -6.154.25% 0.801.68% 45.600 1.290.635 0 -78.65% -0.340.596.713 2.36% 6.475.364.43% 25.55% 1.53% 12.020.19% -10.828.72% 16.52% 184.680 781.136.19% -96.01% 0.87% 28.225 100.421 -542.35% 19.66% #DIV/0! 404.00% 0.316.001.855.576.23% 4.954 1.533 -40.51% 236.609.85% 70.07% -7.22% 0.15% 16.296.00% 0.00% 0.71% 13.830.29% 77.

11. Other Operating Revenue provides only 1. Operating profit increased 30. Net Profit after Tax decreased 17.71% in 2011. 5.53% in 2011. . This increase is smaller than the increase in Total Operating Revenue. We can attribute this to DESCO’s decline in Net Profit growth. 6. This increase means that DESCO had substantially more operating profit in 2010 compared to its operating profit in 2010. 2.Examination of the Statement of Income and Retained Earnings (2010-2011) shows the following1.32%. This means that the costs that are not directly related to production decreased slightly.44% in 2011. we can interpret that the percentage increase in production cost was smaller than the percentage increase in sales price. 7. Cash Dividend Paid decreased 28. Total Operating Revenue increased 13. Cost of energy sales increased 11. This had a positive effect on the percentage increase in Net Profit after Tax. 3. We can attribute this to the large amount of loss due to Exchange Fluctuation. In the last 5 years. This is a negative indication of DESCO’s profitability. The increase in revenue means that DESCO had a positive growth in 2011. So. Non Operating Income (Net) decreased 96. This increase is larger than 2009’s increase of 10. This is a very negative indication for the average shareholders.87% in 2011. So. This means DESCO had far efficiency in running its operation in 2011 compared to that of 2010.35% in 2011. 12. 4.51% in 2011. 10.92% in 2011. However.82% in 2011. Income Tax fell by 17. Other Operating Revenue increased 3. This growth is also slightly larger than 2010’s growth of 9.69% in 2011. Gross Margin increased 19.48% of total operating revenue. Net Energy Sales increased 13. This had a negative effect on Net Profit before Tax.84%. So.43% in 2011. This is far less compared to that of 2010.00% in 2011. 9. 8.35% in 2011. Operating Cost and Expenditure decreased 0. we can interpret that DESCO had a more success in 2011 compared to 2010 in terms of revenue. DESCO suffered the worst decline in its growth in 2011. its effect is largely ignorable. Net Profit before Tax decreased 6.

00% 11.70% 100.90% 171.58% 137.50% 124.10% 252.00% 100.00% 100.16% 167.00% 113.99% 153.12% 1671.33% 169.75% 110.65% 100.00% 100.85% 100.32% 2010 149.10% 100.45% 100.00% 100.98% 100.02% -2968.00% 100.15% 269.17% 149.56% -2285.74% 126.00% 125.50% 261.95% 97.00% 801.00% 194.26% 2009 135.88% 158.83% 117.25% 135.24% 114.32% 149.49% 131.00% 100.80% Worksheet-06: Trend Analysis of Statement of Income and Retained Earnings (2007-2011) .67% 355.00% 4795.27% 115.29% 124.54% 0.00% 100.05% 26.00% 90.04% 116.00% -20.01% -9126.36% 55.20% 334.00% 1034.17% 279.61% 352.13% 300.00% 100.DESCO STATEMENT OF COMPREHENSIVE INCOME TREND ANALYSIS 2007 OPERATING REVENUE Energy Sales (Net of Vat) Other Operating Revenue Total Revenue from Operation COST OF ENERGY SALES Energy Purchase (including wheeling charge) Operating Expenses Depreciation (Operating) Gross Margin COST & EXPENDITURE Administrative Expenses Employee Expenses Bad Debts Provision Depreciation (Non Operating) Operating Profit NON OPERATING INCOME/(EXPENSE) Interest Income Interest Expenses Exchange Fluctuation (Loss) Appreciation / (diminution) in value of Investment Gain on sale of Investment Miscellaneous Income Non Operating Income (Net) Net Profit before Tax INCOME TAX Current Tax Provision Deferred Tax Provision Net Profit after Tax Retained Earnings at 01 July GOB Equity Priors year's adjustment Cash Dividend paid Retained Earnings at 30 June 100.92% 135.00% 100.22% 148.24% 98.54% 143.00% 100.59% 207.20% 10.89% 219.70% 145.00% -31.21% 162.75% 226.26% 94.39% 160.00% 100.56% 375.55% 225.96% 128.73% 129.42% 151.00% 100.14% 140.83% 77.31% 13.76% 171.36% 75.93% -187.93% 134.00% 164.00% 347.99% 140.52% #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 100.02% 156.23% 100.00% 100.00% -1515.06% 133.89% 56.65% 125.21% 99.25% 231.74% 251.82% 96.06% 59.65% 137.10% 100.00% 132.00% 193.26% 100.11% 119.31% 169.03% 137.96% 120.14% 112.62% 100.75% 26.50% 0.00% 125.38% 125.00% -569.00% 136.00% 100.15% 142.92% 316.25% 0.34% -91.00% 214.66% 2011 170.61% 61.08% 100.91% 100.84% 109.00% -103.68% 251.00% 100.00% 154.02% 177.00% 118.89% 67.90% 269.40% 165.95% 55.39% 174.00% 2008 124.

If DESCO manages to rebound from its decline in net profit.We selected 2007 as the base year. 7. Net Profit after Tax has increased substantially from 2007 to 2010. 4. Energy Sales has steadily increased all 5 years. This is largely due to the decline in Net Profit growth in 2011. 6. But it has decreased in 2011. 9. We can attribute this to the increasing demand for electricity in both local and global market. Operating Cost & Expenditure has also increased substantially in the 5 years. This is a positive indication of DESCO’s profitability. 2. that the cost of energy sales will continue to increase in the next 5 years under normal circumstances. DESCO should try to find the cause for this fluctuation and redesign is operation structure if necessary. Although interest income decreased in 2011 compared to 2010. we can interpret that it will continue to increase under normal circumstances. Examination of the Statement of Income and Retained Earnings (2007-2011) shows the following1. Interest Income has increased substantially in the past 5 years. This discrepancy may have occurred due the global recession. 3. We can predict that it will continue to increase the next 5 years as well. Trend Analysis has failed to provide a reasonable result for Non Operating Income (Net) because the base year had a negative number. We predict that as energy sales are increasing. 5. The same is expected for the next 5 years. As the population increases. but it has decreased in 2011. the Energy sales are expected to grow even larger in the next 5 years. 8. . 10. Operating profit has both increased and decreased in the past 5 years. Cost of Energy Sales increased in every year except 2009. Total Revenue from Operation has also increased steadily. We can assume that the next 5 years will have even larger amount of Operating Cost & Expenditure due to the increase in administrative expenses and employee salaries. DESCO should rebound from this decline in the future years. Cash Dividends paid has increased from 2007 to 2010. Cash Dividends should grow as well. We can generally assume. Net Profit before Tax has mostly increased in the past 5 years. As Energy Sales is the major source of operating income for DESCO.

589 8.557.44% 15.40% -88.61% 10.45% 29.71% 45.57% 7.261.667.655.27% 0.241.42% 79.00% 27.666.16% 0.547 5.55% 0.63% 16.00% 0.969 68.381.68% 135.949.67% 16.389 12.58% -3.40% 15.52% 16.788.14% -34.199.64% 8.070 12.43% 7.910.000 75.74% 27.60% 69.15% -3.299.381.975 413.29% 1.000 317.15% 16.15% -15.073 8.111.387.23% 60.00% 0.47% 16.00% 0.55% 29.78% 25.61% 3.950 106.78% 69.11% 26.65% 1.031 172.60% 27.422.040.798.697 10.509.00% 113.91% 10.13% 30.271.718.43% -77.455.987.511.532 445.338 0 6.88% 0.542.36% 71.57% 100.27% 0.35% #DIV/0! 16.194 87.410 260.318 1.401 5.265.17% 3.344.737.271.000.446.732.773 81.076.24% -89.03% 2.394.39% 8.673 1.00% 56.876.180 1.DESCO STATEMENT OF FINANCIAL POSITION 30 JUNE 2007 Amonunt (Taka) APPLICATION OF FUND Non Current Assets Property.629.534.936 1.940.49% 16.696 55.557.000 1.86% 0.49% 25.286.501 21.40% 100.500 882.627 3.769 3.Progress Investment in Shares Current Assets Stores and Spares Accounts Receivable Advances & Deposits Advance Income Tax Cash and Bank Balances Current Liabilities Accounts Payable Creditors for Goods/Works Creditors for Other Finance Creditors for Expenses Current Maturity of Long Term Loans Accrued Interest on Loans Provision for Income Tax Net Current Assets 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 Vertical Analysis Horizontal Analysis 6.127 3. Plant & Equipment Capital Work -in.592.34% 0.919.928.058.146.194.996.69% 34.318.34% 43.40% 2.29% Worksheet-07: Vertical and Horizontal Analysis of Statement of Financial Position (30 June 2007) .27% 64.35% 154.307 916.184 3.749.

Retained Earnings increased 113.14% in 2007. 4.15% in 2007.60% of Total Assets in 2007. DESCO deducted its Current Liabilities from its current Assets. 12. Long-term Liabilities increased 16.49% in 2007. 10. .43% of Total Assets in 2007. Total Assets increased 16. 3.Examination of the Statement of Financial Position (30 June 2007) shows the following1.15% in 2007. Equity increased 16.57% of Total Assets in 2007. Current Liabilities increased 15.63% in 2007. 2.29% in 2007. 8. 11. Equity was 30. Net Current Assets were 43. 5.58% in 2007. Non Current Assets were 56. 9. 6. Current Assets increased 16. Share Capital remained the same in 2007.40% of Total Assets in 2007. This means that DESCO distributed very little of its Net Profit to shareholders as dividends in 2007. Long-term Liabilities was 69. 7. Non Current Assets increased 16.

160 3.174.950.820.84% 23.763.597.Progress Investment in Shares Current Assets Stores and Spares Accounts Receivable Advances & Deposits Advance Income Tax Cash and Bank Balances Current Liabilities Accounts Payable Creditors for Goods/Works Creditors for Other Finance Creditors for Expenses Current Maturity of Long Term Loans Accrued Interest on Loans Provision for Income Tax Net Current Assets 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 Vertical Analysis Horizontal Analysis 7.19% 2.00% 8.63% 13.19% 21.358.84% 100.671.859 511.74% 32.987 762.26% 7.48% 9.526.00% 4.665 1.98% 54.348.000 75.608.695.853.38% 0.506 1.00% 0.96% 10.60% 25. Plant & Equipment Capital Work -in.000.271.150.827.11% 5.00% 1.934 13.264.548.445.57% -24.00% 67.440.096.746 52.305.82% 0.585 13.336 61.731 6.85% 76.078.24% 0.57% 0.70% -23.447.74% 0.28% 1.24% 67.763.77% 47.039.843.061.478.542.72% 0.243 134.782.000 381.960 4.247 1.351.768 4.000 1.29% -4.15% 11.48% 22.18% 31.839 1.775.53% 11.645.60% 53.35% 4.000 7.269.292.55% 51.827 20.860.61% 125.69% 29.803.935.47% -2.546 4.131.116.898.61% 6.DESCO STATEMENT OF FINANCIAL POSITION 30 JUNE 2008 Amonunt (Taka) APPLICATION OF FUND Non Current Assets Property.52% 100.539 583.445.316.21% 53.235.929 253.16% 1.15% 3.861 29.81% 20.928.439 9.47% 18.169.16% 5.31% 192.70% -15.84% 8.497.45% 1.670.54% 9.77% 10.38% 33.07% 19.956 239.032 10.00% -10.00% 0.200 1.812 774.64% 46.14% #DIV/0! 4.951 51.54% 29.24% 11.928 7.470.745 9.16% Worksheet-08: Vertical and Horizontal Analysis of Statement of Financial Position (30 June 2008) .194.

Examination of the Statement of Financial Position (30 June 2008) shows the following1. DESCO deducted its Current Liabilities from its current Assets. Share Capital remained the same in 2008.70% in 2008. 8.52% of Total Assets in 2008. 7. Net Current Assets were 46.47% in 2008.00% in 2008. 4. 9.15% in 2008. 5.16% in 2008.61% in 2008. 6. Current Assets increased 21. Equity increased 18. 10. 2.48% of Total Assets in 2008. Total Assets increased 11. Long-term Liabilities increased 8.84% of Total Assets in 2008. 11. Equity was 32. This means that DESCO distributed very little of its Net Profit to shareholders as dividends. Long-term Liabilities were 67. Retained Earnings increased 67. 3. . 12. Non Current Assets were 53. Non Current Assets increased 4.16% of Total Assets in 2008. Current Liabilities increased 25.07% in 2008.

38% -38.081.000 600.53% -14.637.558 50.671.039.834 7. Plant & Equipment Capital Work -in.781.13% 39.963 18.41% 3.88% 21.25% -56.86% 3.11% 2.407.231 4.453.43% -19.020.25% 20.88% 186.302.408 204.09% 5.50% 20.81% 12.394 8.880 11.50% 154.181 718.605.00% 0.80% 34.75% 57.037 990.600 1.87% 0.673 714.874.453.753.840.119.13% 39.552.130.70% 0.98% 60.65% 3.871 4.DESCO STATEMENT OF FINANCIAL POSITION 30 JUNE 2009 Amonunt (Taka) APPLICATION OF FUND Non Current Assets Property.539 734.27% 0.43% 1.020.74% 75.930 11.92% 60.385 4.966.291.491.62% 16.69% 524.201.140.36% 39.23% 0.901.12% 63.89% 3.232 7.440 386.02% 86.685.013.631.000.41% 8.33% 100.44% 0.442.89% 26.095.67% 29.476 254.924.052.392.Progress Investment in Shares Current Assets Stores and Spares Accounts Receivable Advances & Deposits Advance Income Tax Cash and Bank Balances Current Liabilities Accounts Payable Creditors for Goods/Works Creditors for Other Finance Creditors for Expenses Current Maturity of Long Term Loans Accrued Interest on Loans Provision for Income Tax Net Current Assets 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 Vertical Analysis Horizontal Analysis 7.639.150 16.38% 2.193 7.284 488.677.49% 52.99% 8.120 23.366.293.84% 5.00% 22.37% 21.086.19% 0.92% 26.77% 71.66% 5260.613.63% 27.097 5.84% 19.843 1.08% 100.334.059.54% 1.132.07% Worksheet-09: Vertical and Horizontal Analysis of Statement of Financial Position (30 June 2009) .07% 1.52% 0.00% 0.502.320.165 3.00% 5.737 18.95% 34.700 75.368.757.24% -5.155.182.23% 11.451 2.834 39.363.090.000 1.281 78.397.10% 46.80% -2.00% 25.

7. 2.50% in 2009.07% in 2009. 5. DESCO deducted its Current Liabilities from its current Assets.00% in 2009. .80% in 2009.74% in 2009. Current Liabilities increased 21. Equity increased 63. Current Assets increased 52.Examination of the Statement of Financial Position (30 June 2009) shows the following1. Non Current Assets increased 0.67% of Total Assets in 2009.77% in 2009. Share Capital increased 5. 10. 11. 9.12% in 2009. 4.08% of Total Assets in 2009. Long-term Liabilities were 60. Total Assets increased 34. 3. 12. Net Current Assets were 60.33% of Total Assets in 2009. Non Current Assets were 39. 6.92% of Total Assets in 2009. Equity was 39. Retained Earnings increased 154. Long-term Liabilities increased 19.69% in 2009. This means that DESCO distributed very little of its Net Profit to shareholders as dividends. 8.

54% 1.DESCO STATEMENT OF FINANCIAL POSITION 30 JUNE 2010 Amonunt (Taka) APPLICATION OF FUND Non Current Assets Property.37% 1.855.70% Worksheet-10: Vertical and Horizontal Analysis of Statement of Financial Position (30 June 2010) .00% 15.508.000.000 1.552.482.350.10% 15.288.53% -3.85% 4.91% 41.50% 13.022 9.97% 100.00% 0.213.311.51% -34.791.396.635 6.659.05% 45.36% 5.00% 47.011.892.57% 0.195 8.308.22% 58.063 438.350.657 4.21% 1.00% 16.531.86% 7.392 335.000 0 5.835.028.75% 24.759.059.29% 13.313.049 12.671.90% 22.56% -4.857 21.74% 4.756 257.396.18% 19.992.601.66% 20.487.920.095.322. Plant & Equipment Capital Work -in.70% 14.540.805.279.00% 20.42% 13.00% 0.48% 11.29% 80.09% -26.70% 1.744 29.16% 15.624 2.50% 0.35% -4.545.671.493 39.668.68% 1.440 75.03% 30.475 134.131.743.563 1.079 1.140.865.92% 4.63% 2.440.395.039.492 7.04% 13.57% 0.193 405.808 79.76% 100.97% 8.24% 21.454.00% -100.50% 0.525.706 4.00% 58.704.69% 18.00% 25.82% 3.449 12.541.72% 0.44% -43.140.357 21.35% 7.136 4.337.53% 19.375.000 8.74% 564.761 359.622 17.195 747.12% 0.539 854.27% 0.14% 41.75% 22.88% 11.Progress Investment in Shares Current Assets Stores and Spares Accounts Receivable Advances & Deposits Advance Income Tax Cash and Bank Balances Current Liabilities Accounts Payable Creditors for Goods/Works Creditors for Other Finance Creditors for Expenses Current Maturity of Long Term Loans Accrued Interest on Loans Provision for Income Tax Net Current Assets 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 Vertical Analysis Horizontal Analysis 8.806 1.62% 1.590.

70% in 2010.03% of Total Assets in 2010. 9. Non Current Assets increased 19.53% in 2010. 2. 8. 4. Share Capital increased 20.10% in 2010. DESCO deducted its Current Liabilities from its current Assets. Retained Earnings increased 47. Current Liabilities decreased 4.24% of Total Assets in 2010. Net Current Assets were 58.18% in 2010. 10.66% in 2010. Current Assets increased 7. Non Current Assets were 41. 3. 6. Equity increased 19. Equity was 41. 12. Total Assets increased 15. 11.00% in 2010. Long-term Liabilities were 58. Long-term Liabilities increased 13.50% in 2010.76% of Total Assets in 2010. 7.70% in 2010. .Examination of the Statement of Financial Position (30 June 2010) shows the following1.97% of Total Assets in 2010. 5. This means that DESCO distributed little of its Net Profit to shareholders as dividends.

156 130.552.762.41% 0.984.627.000 9.804 12.665.76% 59.81% -2.28% 13.11% 100.940 13.885 2.00% 11.00% 11.84% 0.37% 0.96% 3.69% 52.77% -13.71% 34.956 363.945.737.356 399.44% -100.383.55% 1.976.00% 9.039.25% 43.681.539 950.95% 8.026.231.00% 0.797.18% 2.540.772 75.591 23.496 5.174.000 0 6.28% 9.31% 10.671.140.89% -8.565.54% 0.19% 100.623 9.276.DESCO STATEMENT OF FINANCIAL POSITION 30 JUNE 2011 Amonunt (Taka) APPLICATION OF FUND Non Current Assets Property.730.41% 18.082.00% -1.27% 5.008 1.770.79% 0.501 8.215.678 1.209.29% 82.143 544.257.86% 28.53% 2.949 14.907 4.00% 0.189.933.73% 10.62% 12.63% 11.00% 40.89% 31.312.000.92% Worksheet-11: Vertical and Horizontal Analysis of Statement of Financial Position (30 June 2011) .919.859 119.000 1.74% 5.390.974.681.92% 2.04% 291.899 1.106 23.352.30% 23.016.22% 41.339 19.00% 26.466.30% 17.Progress Investment in Shares Current Assets Stores and Spares Accounts Receivable Advances & Deposits Advance Income Tax Cash and Bank Balances Current Liabilities Accounts Payable Creditors for Goods/Works Creditors for Other Finance Creditors for Expenses Current Maturity of Long Term Loans Accrued Interest on Loans Provision for Income Tax Net Current Assets 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 Vertical Analysis Horizontal Analysis 8.254.469.00% 30.987.55% 0.32% 6.08% 13.103.643.632.406.540 2.127 4.341.82% 13.06% 4.342 832.11% 53.65% 41.36% 51.498 35.475 516.00% #DIV/0! 12.516.703.02% 58.730.88% 3.395 7.340.24% 15.799.146.500 1.75% -19.51% 1.81% 17. Plant & Equipment Capital Work -in.51% 4.

Non Current Assets increased 9. Long-term Liabilities were 58.31% in 2011. Equity increased 13. Total Assets increased 10. Retained Earnings increased 12. Share Capital increased 30. 11. Current Assets increased 13. 10. 12. 6.63% in 2011. DESCO deducted its Current Liabilities from its current Assets.19% of Total Assets in 2011.28% in 2011.89% of Total Assets in 2011. 5.11% of Total Assets in 2011. Long-term Liabilities increased 9. 4.77% in 2011. 9.81% of Total Assets in 2011.24% in 2011. This means that DESCO distributed most of its Net Profit to shareholders as dividends. . 2.Examination of the Statement of Financial Position (30 June 2011) shows the following1. 3.62% in 2011. 8. Non Current Assets were 40.00% in 2011. Current Liabilities decreased 18. Equity was 41.92% in 2011. Net Current Assets were 59. 7.

80% 219.00% 100.91% 149.27% Worksheet-12: Trend Analysis of Statement of Financial Position (2007-2011) .00% 124.00% 100.95% 106.16% 149.00% 100.04% 126.94% 4853.00% 454.98% 0.57% 160.00% 100.98% 189.60% 275.98% 0. Plant & Equipment Capital Work -in.00% 100.50% 192.60% 153.00% 703.26% 147.00% 89.01% 113.04% 172.DESCO STATEMENT OF FINANCIAL POSITION TREND ANALYSIS 2007 APPLICATION OF FUND Non Current Assets Property.31% 46.96% 110.00% 101.65% 292.80% 100.71% 180.00% 104.94% 147.56% 147.00% 425.00% 75.72% 100.81% 120.95% 97.00% 100.44% 163.87% 277.41% 155.23% 96.44% 208.66% 498.15% 111.44% 172.18% 131.97% 34.20% 189.29% 128.39% 231.07% 152.53% 97.04% 123.00% 124.00% 100.18% 213.54% 110.24% 210.20% 144.65% 165.46% 509.65% 118.21% 156.17% 191.39% 225.44% 191.00% 100.00% 100.57% 105.54% 119.67% 110.25% 146.63% 149.00% 100.61% 528.53% 205.85% 129.59% 199.00% 100.00% 100.52% 232.00% 100.38% 170.00% 100.00% 104.43% 126.87% 93.56% 149.00% 100.00% 100.14% 123.84% 111.36% 95.57% 259.94% 125.16% 5100.74% 3926.00% 100.00% 626.00% 100.18% 164.02% 439.33% 100.Progress Investment in Shares Current Assets Stores and Spares Accounts Receivable Advances & Deposits Advance Income Tax Cash and Bank Balances Current Liabilities Accounts Payable Creditors for Goods/Works Creditors for Other Finance Creditors for Expenses Current Maturity of Long Term Loans Accrued Interest on Loans Provision for Income Tax Net Current Assets 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 2008 2009 2010 2011 100.29% 145.19% 121.00% 100.00% 100.27% 100.55% 49.99% 120.02% 138.00% 100.62% 126.02% 492.00% 100.20% 218.00% 108.40% 121.00% 100.47% 118.38% 76.42% 114.74% 439.00% 84.91% 146.10% #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 100.00% 100.55% 110.00% 124.38% 133.50% 226.16% 105.00% 100.70% 105.45% 151.58% 193.05% 1926.18% 191.70% 172.00% 100.56% 126.00% 100.00% 167.81% 107.29% 261.00% 100.00% 100.00% 100.53% 172.82% 185.86% 74.

shareholders may be discouraged to buy its shares. DESCO should continue to grow and increase its Total Assets. This is due to the fact that there was no Investment in Shares in the base year of 2007. Under normal circumstances. Share Capital was same for 2007 and 2008. This should not be a major concern for DESCO’s solvency because the increase in Equity is considerably larger. DESCO might not be fully utilizing its resources to earn profit. Total Equity has increased every year. We can assume that DESCO will want to increase its share capital even more in the future. liquidity should not be a problem for DESCO when it has to provide payment for short-term loans. We interpret that this is due do DESCO’s growth as a company. This is mostly due to the increase in Retained Earnings.We considered 2007 as the base year for our Trend Analysis. This is a positive indication for DESCO’s liquidity. Current Liabilities increased as well but at lesser pace than Current Assets. Under Normal Circumstances. DESCO deducted its Current Liabilities from its current Assets in all 5 years to determine Net Current Assets. but then it began to increase. 7. While this ensures that DESCO is capable of handling its short-term payments. 4. 5. Net Current Assets has increased every year substantially. Examination of the Statement of Financial Position (2007-2011) shows the following1. 10. 2. While this ensures DESCO’s solvency for the future. In the past 5 years. Total Assets have steadily increased in the last 5 years. It should continue to increase in the next 5 years. Retained Earnings has increased in large amounts every year. 6. 9. 3. 8. Non Current Assets have steadily increased in the last 5 years. Current Assets have increased substantially in the last 5 years. it may not be properly utilizing its current assets to earn profit. Long-term Liabilities has increased every year as well. So. . While this is positive in proving DESCO’s solvency. DESCO provided very little of its Net Profit to its Shareholders as Cash Dividends and instead increased its retained earnings. Trend Analysis has failed to provide reasonable results for Investment in Shares.

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