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Condensed Consolidated Financial Statements

as at and for the half-year ended 30 June 2011


(Un-audited)

Grameenphone Ltd.
Condensed Consolidated Statement of Financial Position (Un-audited)
as at 30 June 2011
As at
30 June 2011
Taka

As at
31 December 2010
Taka

4
5

69,712,238,616
6,686,280,462
12,656,194
76,411,175,272

71,696,092,118
6,991,416,098
12,594,949
78,700,103,165

668,782,646
452,182,906
3,998,052,746
1,093,337,272
1,095,975,517
3,866,358,121
19,916,027,849
31,090,717,057
107,501,892,329

834,355,326
484,842,481
5,247,945,772
928,020,269
1,621,637,839
2,753,729,110
18,931,502,552
30,802,033,349
109,502,136,514

13,503,000,220
7,840,225,942
14,446,452
1,880,178
2,139,729,365
22,163,153,447
45,662,435,604

13,503,000,220
7,840,225,942
14,446,452
1,880,178
2,139,729,365
26,874,256,053
50,373,538,210

257

268

449,786,840
5,019,805,838
9,936,041,536
179,226,838
15,584,861,052

444,639,879
5,019,805,838
11,201,083,512
162,876,392
16,828,405,621

8,861,658,924
4,538,524,255
2,278,383,935
2,653,424,671
15,973,904,614
195,082,427
134,516,729
564,142,536
11,054,957,325
46,254,595,416
107,501,892,329

10,183,877,792
4,814,490,250
2,248,977,889
2,451,869,531
13,396,693,877
155,699,144
38,263,621
581,904,397
8,428,415,914
42,300,192,415
109,502,136,514

Notes

Assets

Non current assets


Property, plant and equipment, net
Intangible assets, net
Long term deposits
Current assets
Inventories
Deferred cost of connection revenue
Accounts receivable, net
Other receivables
Advances, deposits and prepayments
Short term investment
Cash and cash equivalents

7
8
9
10

Total assets
Equity and Liabilities
Shareholders' equity
Share capital
Share premium
Capital reserve
Deposit from shareholders
General reserve
Retained earnings

Non controlling interest


Non current liabilities
Deposit from agents and subscribers
Finance lease obligation
Deferred tax liabilities
Long term provisions

11

Current liabilities
Accounts payable
Payable to government and autonomous bodies
Unearned revenue
VAT payable
Income tax provision
Accrued interest
Other liabilities
Deferred connection revenue
Provision for expenses

12
13

14

15

Total equity and liabilities

The annexed notes 1 to 22 form an integral part of these condensed consolidated financial statements.

Sd/-

Sd/-

_________________
Tore Johnsen
Chief Executive Officer

__________________________
Raihan Shamsi
Deputy Chief Executive Officer &
Chief Financial Officer

Dhaka, 18 July, 2011


1

Grameenphone Ltd.
Condensed Consolidated Statement of Comprehensive Income (Un-audited)
for the half-year ended 30 June 2011

Revenue
Cost of network operations:
Direct cost of network revenue
Network operation and maintenance expenses
Depreciation and amortisation

Notes

1 January to
30 June 2011
Taka

1 January to
30 June 2010
Taka

1 April to
30 June 2011
Taka

1 April to
30 June 2010
Taka

16

43,404,139,050

35,809,552,182

22,732,340,759

18,768,013,312

17

(8,850,289,485)
(3,264,003,788)
(7,178,018,128)
(19,292,311,401)
24,111,827,649

(7,723,920,410)
(2,707,484,235)
(7,527,339,536)
(17,958,744,181)
17,850,808,001

(4,496,889,929)
(1,754,452,456)
(3,523,575,663)
(9,774,918,048)
12,957,422,711

(4,365,908,118)
(1,582,095,688)
(3,801,924,208)
(9,749,928,014)
9,018,085,298

Gross profit
Other income, net
Operating expenses:
General and administrative expenses
Selling and distribution expenses
Depreciation and amortisation

36,721,864

22,348,535

21,717,607

10,730,865

(4,632,317,355)
(4,741,968,021)
(701,344,522)
(10,075,629,898)
14,072,919,615

(3,885,619,660)
(4,107,731,599)
(739,852,932)
(8,733,204,191)
9,139,952,345

(2,381,677,697)
(2,055,027,078)
(345,374,145)
(4,782,078,920)
8,197,061,398

(1,984,722,053)
(2,875,479,529)
(365,098,724)
(5,225,300,306)
3,803,515,857

Finance income/(expense), net


19
Foreign exchange gain/(loss)
Gain/(loss) on disposal of property, plant and equipment
Profit before income tax

748,375,341
(566,488,223)
3,700,968
14,258,507,701

230,072,663
276,242,954
7,960,048
9,654,228,010

373,618,057
(272,225,759)
3,465,854
8,301,919,550

102,145,524
168,474,125
(1,323,080)
4,072,812,426

Income tax expenses


Profit for the period

(7,492,060,131)
6,766,447,570

(4,821,282,413)
4,832,945,597

(4,402,949,294)
3,898,970,256

(2,397,036,950)
1,675,775,476

Other comprehensive income


Total comprehensive income for the period

6,766,447,570

4,832,945,597

3,898,970,256

1,675,775,476

Total comprehensive income attributable to:


Owners of the company
Non controlling interest

6,766,447,581
(11)

4,832,945,596
1

3,898,970,288
(32)

1,675,775,446
30

18

Operating profit

Earnings per share:


Basic and diluted earnings per share
(par value Tk 10 each)

20

21

5.01

3.58

The annexed notes 1 to 22 form an integral part of these condensed consolidated financial statements.

Sd/_________________
Tore Johnsen
Chief Executive Officer

Sd/__________________________
Raihan Shamsi
Deputy Chief Executive Officer &
Chief Financial Officer

Dhaka, 18 July, 2011


2

2.89

1.24

Grameenphone Ltd.
Condensed Consolidated Statement of Changes in Equity (Un-audited)
for the half-year ended 30 June 2011

Share
capital
Taka

Share
premium
Taka

Capital
reserve
Taka

Deposit
from
shareholders
Taka

General
reserve
Taka

Retained
earnings
Taka

Non controlling
interest
Taka

Total
Taka

Balance as at 1 January 2010

13,503,000,220

7,840,225,942

14,446,452

1,880,178

2,139,729,365

26,655,044,251

50,154,326,408

Adjustment for reversal of income tax provision


Balance as at 1 January 2010

13,503,000,220

7,840,225,942

14,446,452

1,880,178

2,139,729,365

2,341,710,571
28,996,754,822

2,341,710,571
52,496,036,979

Transactions with the shareholders:


Issuance of share of Grameenphone IT Ltd.

Total comprehensive income for


the half-year ended 30 June 2010:
Profit for the period
Other comprehensive income

4,832,945,596
-

100

100

4,832,945,597
-

Final dividend for the year 2009


Balance as at 30 June 2010

13,503,000,220

7,840,225,942

14,446,452

1,880,178

2,139,729,365

(8,101,800,132)
25,727,900,286

101

(8,101,800,132)
49,227,182,544

Balance as at 1 January 2011

13,503,000,220

7,840,225,942

14,446,452

1,880,178

2,139,729,365

26,874,256,053

268

50,373,538,478

6,766,447,581
-

(11)
-

6,766,447,570
-

(11,477,550,187)
22,163,153,447

257

(11,477,550,187)
45,662,435,861

Total comprehensive income for


the half-year ended 30 June 2011:
Profit for the period
Other comprehensive income
Final dividend for 2010
Balance as at 30 June 2011

13,503,000,220

7,840,225,942

14,446,452

1,880,178

2,139,729,365

Grameenphone Ltd.
Condensed Consolidated Statement of Cash Flows (Un-audited)
for the half-year ended 30 June 2011
1 January to
30 June 2011
Taka

1 January to
30 June 2010
Taka

44,714,170,378

35,297,564,669

(2,496,002,401)
(18,383,392,819)
1,039,631,935
(937,676,717)
(6,179,891,370)
(26,957,331,372)
17,756,839,006

(3,342,697,445)
(12,835,560,392)
638,834,981
(80,482,089)
(4,679,884,497)
(20,299,789,442)
14,997,775,227

(3,990,368,199)
9,778,310
(189,436,321)
(61,245)
(1,112,629,011)
(5,282,716,466)

(4,317,046,858)
32,689,355
(359,695,978)
(58,187)
(4,644,111,668)

(11,488,545,721)
(1,051,522)
(11,489,597,243)

(1,886,014,721)
(8,101,800,132)
100
(84,420,611)
(10,072,235,364)

Cash flows from operating activities:


Cash receipts from performance of services/sales
Payroll and other payments to employees
Payment to suppliers, contractors and others
Net finance income received
Finance costs paid
Income tax paid
Net cash flow from operating activities
Cash flows from investing activities:
Payment for acquisition of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payment for acquisition of intangible assets
Investment in long term deposits
Short term investments
Net cash used in investing activities
Cash flows from financing activities:
Payment of long term borrowings
Payment of dividend
Proceeds from issue of shares to non controlling interest
Amount refunded to IPO share applicants
Net cash used in financing activities
Net changes in cash and cash equivalents
Cash and cash equivalents at beginning
Cash and cash equivalents at closing

984,525,297

281,428,195

18,931,502,552
19,916,027,849

14,601,313,087
14,882,741,282

Grameenphone Ltd.
Notes to the condensed consolidated financial statements
as at and for the half-year ended 30 June 2011
1.

Reporting entity

1.1

Company profile
Grameenphone Ltd (hereinafter referred to as "GP"/"Grameenphone"/"the company"/"theparent company") is a
public limited company incorporated in Bangladesh in 1996 under the Companies Act 1994 with its registered
address at Celebration Point, Road 113/A, Gulshan, Dhaka, Bangladesh. In July 2010, the registered office of
the company was shifted to GPHOUSE, Bashundhara, Baridhara, Dhaka 1229. GP was initially registered as a
private limited company and subsequently converted into a public limited company on 25 June 2007. During
November 2009, GP listed its shares with both Dhaka and Chittagong Stock Exchanges. In 2010,
Grameenphone formed a wholly owned subsidiary namely Grameenphone IT Ltd (hereinafter referred to as
"GPIT"/ "the subsidiary company"), to provide IT services to itself and also to external customers. GPIT
launched its commercial operation from 1 April 2010.
These condensed consolidated financial statements comprise the company and its subsidiary, Grameenphone IT
Ltd (together referred to as "the group").

1.2

Nature of business
The group is primarily involved in providing mobile telecommunication services (voice, data and other related
services) and IT related services in Bangladesh. Grameenphone obtained its radio system operating licence
from the Ministry of Posts and Telecommunications (MOPT), Government of Bangladesh, commencing from
11 November 1996 and launched commercial operation on 26 March 1997. Telecommunication network of the
company covers all divisional towns and districts of the country. The company also provides international
roaming services through international roaming agreements with various operators of different countries across
the world.

2.

Basis of preparation
These condensed consolidated financial statements have been prepared in accordance with International
Accounting Standard/Bangladesh Accounting Standard (IAS/BAS) 34: Interim Financial Reporting and
relevant guidelines issued by the Securities and Exchange Commission, Bangladesh and should be read in
conjunction with the consolidated financial statements as at and for the year ended 31 December 2010 of the
group, the year for which the last full annual financial statements were prepared.
Even though these condensed consolidated financial statements contain a prior year adjustment, the reporting
format follows requirement of IAS/BAS 34 only as those are considered appropriate and applicable in such
circumstances.

3.

Accounting policies
The same accounting policies, presentation and methods of computation have been followed in these condensed
consolidated financial statements as were applied in the preparation of the consolidated financial statements of
the group as at and for the year ended 31 December 2010.

Property, plant and equipment, net


Cost

Name of assets

Addition
during
the period
Taka

As at
30 June
2011
Taka

As at
1 January
2011
Taka

Depreciation
Disposal/
Charged
Adjustment
during the
during
the period
the period
Taka
Taka

Carrying amount
As at
30 June
2011
Taka

As at
30 June
2011
Taka

As at
31 December
2010
Taka

Freehold assets

127,709,029,019

17,604,824,659

(27,589,250,639)

117,724,603,039

65,642,723,849

7,098,000,150

(14,355,315,148)

58,385,408,851

59,339,194,188

62,066,305,170

Capital work in progress

4,139,246,427
131,848,275,446

18,505,362,619
36,110,187,278

(17,596,205,522)
(45,185,456,161)

5,048,403,524
122,773,006,563

65,642,723,849

7,098,000,150

(14,355,315,148)

58,385,408,851

5,048,403,524
64,387,597,712

4,139,246,428
66,205,551,598

7,678,321,508
139,526,596,954

36,110,187,278

(45,185,456,161)

7,678,321,508
130,451,328,071

2,187,780,988
67,830,504,837

165,899,616
7,263,899,766

(14,355,315,148)

2,353,680,604
60,739,089,455

5,324,640,904
69,712,238,616

5,490,540,520
71,696,092,118

Fibre Optic Network


under finance lease

As at
1 January
2011
Taka

Disposal/
Adjustment
during
the period
Taka

Intangible assets, net


Cost

Name of assets

As at
1 January
2011
Taka

Addition
during
the period
Taka

Freehold assets

10,931,511,847

10,738,536

Capital work in progress

244,760,095
11,176,271,942

413,815,428
424,553,964

Disposal/
Adjustment
during
the period
Taka

As at
30 June
2011
Taka
-

(10,738,536)
(10,738,536)

As at
1 January
2011
Taka

Amortisation
Disposal/
Charged
Adjustment
during the
during
the period
the period
Taka
Taka

Carrying amount
As at
30 June
2011
Taka

As at
30 June
2011
Taka

As at
31 December
2010
Taka

10,942,250,383

4,288,344,023

615,462,885

4,903,806,908

6,038,443,475

6,643,167,823

647,836,987
11,590,087,370

4,288,344,023

615,462,885

4,903,806,908

647,836,987
6,686,280,462

348,248,275
6,991,416,098

Inventories
As at
30 June 2011
Taka
Handset, data card and other device
SIM card
Scratch card

3,253,033,226
394,229,400
315,238,435
23,292,409
12,259,276
3,998,052,746

4,877,394,453
180,435,548
153,522,463
22,995,771
13,597,537
5,247,945,772

281,599,710
428,123,981
214,613,571
169,000,010
1,093,337,272

156,269,520
428,123,981
182,467,922
161,158,846
928,020,269

360,856,734
209,451,419
525,667,364
1,095,975,517

458,566,739
188,441,730
974,629,370
1,621,637,839

1,772,866
19,914,254,983
19,916,027,849

3,737,483
18,927,765,069
18,931,502,552

33,814,432,155
(5,425,742,051)
28,388,690,104
35%
9,936,041,536

37,521,403,533
(5,518,307,785)
32,003,095,748
35%
11,201,083,512

2,391,806,666
6,257,044,447
212,807,811
8,861,658,924

2,246,290,076
7,622,500,562
315,087,154
10,183,877,792

Advances, deposits and prepayments


Advances
Deposits
Prepayments

10

133,374,666
633,598,995
67,381,665
834,355,326

Other receivables
Accrued interest
Receivable from Ericsson
Receivable from other Telenor entities
Receivable from other external parties

274,824,868
385,285,468
8,672,310
668,782,646

Accounts receivable, net


Receivables for mobile service-interconnection
Receivables for mobile service-post paid and others
Receivables for infrastructure sharing
Receivables for sub lease of fibre optic network
Other receivables for non-mobile service

As at
31 December 2010
Taka

Cash and cash equivalents


Cash in hand
Cash at bank

11 Deferred tax liabilities


Taxable temporary differences
Deductible temporary differences
Tax rate
Deferred tax liability

12 Accounts payable
Liability for capital expenditure
Payable for expenses
Other payables

13 Payable to government and autonomous bodies


As at
30 June 2011
Taka
Bangladesh Telecommunication Regulatory Commission (BTRC)
Frequency and spectrum charges
Revenue sharing
Supplementary duty on SIM payable to NBR
Share of sub-lease rent payable to Bangladesh Railway
Payable for Bills Pay receipt

As at
31 December 2010
Taka

200,823,911
1,332,615,123
1,533,439,034
2,690,490,184
5,793,600
308,801,437
4,538,524,255

226,000,964
1,388,092,365
1,614,093,329
2,869,736,536
10,908,544
319,751,841
4,814,490,250

13,396,693,877
13,396,693,877
8,757,102,106
22,153,795,983
(6,179,891,369)
15,973,904,614

12,228,778,445
(2,341,710,571)
9,887,067,874
12,512,235,175
22,399,303,049
(9,002,609,172)
13,396,693,877

14 Income tax provision


Opening balance
Adjustment for reversal of income tax provision (Note 14.1)
Adjusted opening balance
Provision made during the period/year
Paid during the period/year (including tax deducted at source)
Closing balance

14.1 Income tax provision amounting to Tk. 2,341,710,571 has been reversed from the opening balance of income tax
provision and added to the opening balance of retained earnings of the year 2010, as it is considered to be in excess
of requirements.

15 Provision for expenses


International roaming services
Commission and other operational expenses
Cost of SIM card, scratch card, handsets etc.
Personnel expenses
Employee provident fund
Training and travelling expenses
Sales and promotional expenses
Consultancy and professional fees
Network operations and maintenance
Capital expenditure
Office and general expenses
Lease rent to Power Grid Company of Bangladesh Ltd.

30,191,757
112,790,922
1,467,557,824
2,710,419,312
32,078,162
69,573,677
781,616,435
563,291,857
1,387,732,208
2,967,258,635
923,683,616
8,762,920
11,054,957,325

8,705,560
81,454,862
1,302,937,127
2,046,458,804
26,643,930
62,799,455
776,568,213
703,940,472
711,382,083
1,953,597,498
749,139,910
4,788,000
8,428,415,914

16 Revenue

Traffic revenue
Subscription revenue
Connection revenue
Roaming revenue
Interconnection revenue
Other operating revenue
Other non- mobile revenue

1 January to
30 June 2011
Taka

1 January to
30 June 2010
Taka

1 April to
30 June 2011
Taka

1 April to
30 June 2010
Taka

35,419,920,634
296,591,578
133,844,619
297,541,534
4,126,707,526
1,869,270,644
1,260,262,515
43,404,139,050

29,642,061,686
318,043,131
130,603,008
203,479,586
3,448,340,682
1,389,581,523
677,442,566
35,809,552,182

18,603,465,949
144,209,896
67,936,830
166,676,621
2,135,989,423
979,152,884
634,909,156
22,732,340,759

15,288,243,948
155,400,134
54,869,328
100,052,506
1,829,996,731
749,829,796
589,620,869
18,768,013,312

1,848,513,128
1,498,326,037
106,943,349
354,155,269
2,251,795,659
2,691,367,286
99,188,757
8,850,289,485

1,886,158,242
1,142,416,825
98,518,170
350,436,067
1,874,293,784
2,364,885,707
7,211,615
7,723,920,410

933,401,655
694,405,387
56,966,777
178,280,302
1,180,121,073
1,387,472,241
66,242,494
4,496,889,929

950,141,074
842,840,016
50,838,286
174,588,682
985,323,358
1,358,014,480
4,162,222
4,365,908,118

3,827,803,337
521,338,355
392,826,329
4,741,968,021

330,284,629
232,062,076
3,545,384,894
4,107,731,599

1,697,718,830
200,654,806
156,653,442
2,055,027,078

2,619,438,099
159,331,584
96,709,846
2,875,479,529

17 Direct cost of network revenue


Cost of interconnection
Cost of SIM card, scratch card, handset etc.
International roaming cost
Licence fees and spectrum charges
Revenue sharing with BTRC
Dealers' and agents' commission
Revenue sharing with content providers and others

18 Selling and distribution expenses


Sales, marketing and representation costs
Advertisements
Business development and promotional expenses

19 Finance income/(expense), net


Interest on long term loans
Finance charge - lease
Interest on ARO
Other finance charges
Finance income

(388,103,274)
(8,201,853)
(23,234,353)
(419,539,480)
1,167,914,821
748,375,341

(3,402,510)
(383,276,378)
(8,046,124)
(40,232,777)
(434,957,789)
665,030,452
230,072,663

(194,434,053)
(4,106,869)
(9,531,623)
(208,072,545)
581,690,602
373,618,057

(699,981)
(191,264,337)
(4,029,377)
(26,288,769)
(222,282,464)
324,427,988
102,145,524

8,757,102,106
(1,265,041,975)
7,492,060,131

6,323,329,540
(1,502,047,127)
4,821,282,413

4,556,674,824
(153,725,530)
4,402,949,294

3,119,411,301
(722,374,351)
2,397,036,950

20 Income tax expenses


Current tax expenses
Deferred tax expenses/(income)

21 Earnings per share


1 January to
30 June 2011

1 January to
30 June 2010

1 April to
30 June 2011

Profit attributable to the ordinary


shareholders (Taka)

6,766,447,581

4,832,945,596

3,898,970,288

1,675,775,446

Weighted average number of ordinary shares


outstanding during the period

1,350,300,022

1,350,300,022

1,350,300,022

1,350,300,022

5.01

3.58

2.89

1.24

Basic earnings per share


(par value Tk 10 each) (Taka)

1 April to
30 June 2010

No diluted earnings per share is required to be calculated for the periods presented as GP has no dilutive potential ordinary shares.

22 Other disclosures
22.1 Related party disclosures
Except for the regular transactions, there was no significant related party transaction during the quarter ended 30 June 2011.
22.2 Capital commitments
There was no significant change in the commitments made by the company during the quarter ended 30 June 2011.
22.3 Events after the reporting period
There was no significant event after the reporting period that requires either disclosure of or adjustment to these condensed
consolidated financial statements.

10