Investor Presentaiton
120
ANNUAL
REPORT
2018-2019
Notes to the Financial Statements (Continued)
30 June 2019
Particulars
Contractual cash flows
Trade and other payables
Loans and borrowings
Carrying
amount
2,438,275,201
Total
2,438,275,201
Unclaimed dividend
64,608,698
38,336,096
Provision for income tax
Employee benefits
15,000,000
25,735,738
64,608,698
38,336,096
15,000,000
25,735,738
2 months
or less
954,705,238
22,185,598
38,336,096
2-12
months
1,483,569,963
42,423,100
More than
1-2 years
2-5 years
5 years
15,000,000
I
- 25,735,738
Asset retirement obligation (ARO)
38,746,442
38,746,442
- 38,746,442
2,620,702,175 2,620,702,175 1,015,226,932
1,540,993,063
- 64,482,180
30 June 2018
Carrying
Particulars
Loans and borrowings
amount
4,551,282,824
Trade and other payables
Unclaimed dividend
207,652,667
Provision for income tax
386,140,659
137,000,000
23,429,742
30,170,359
Asset retirement obligation (ARO)
Employee benefits
5,335,676,251 5,335,676,251 2,562,084,698 2,719,991,452
4,551,282,824
Total
207,652,667
386,140,659
137,000,000
23,429,742
30,170,359
36,362,544
171,290,123
386,140,659
137,000,000
- 23,429,742
- 30,170,359
-
53,600,101
Contractual cash flows
2-12
months
2 months
or less
2,139,581,495 2,411,701,329
More than
1-2 years
2-5 years
5 years
I
34.2
Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that
are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible,
that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Company's reputation.
Exposure to liquidity risk
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted,
and include estimated interest payments and exclude the impact of netting agreements.
ANNUAL
REPORT
2018-2019
Notes to the Financial Statements (Continued)
34.3
Market risk
a)
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company's
income or the value of its holdings of financial instruments. The objective of the Company's management is to manage and control
market risk exposures within acceptable parameters, while optimising the return.
Currency risk
The Company is exposed to currency risk on revenue and certain expenses such as procurement of heavy fuel oil, spare parts and purchase of capital
items. Majority of the Company's foreign currency transactions are denominated in United States Dollar (USD) and Euro (EUR) and related to revenue and
procurement of heavy fuel oil and spare parts. The Company maintains USD denominated bank accounts where receipts from BPDB are deposited.
Exposure to currency risk
The summary quantitative data about the Company's exposure to currency risk as reported to the management of the Company is as follows:
Trade and other receivables
Cash at bank (Note 10.1)
Loans and borrowings
Trade and other payables
Net exposure
30 June 2019
USD
EUR
10,345,288
491
(16,902,666)
(6,556,887)
The following exchange rates were applied during the year:
United States Dollar (USD)
Euro (EUR)
Source: BRAC Bank TT OD rate
30 June 2018
USD
EUR
10,617,697
1,626,275
(39,137,823)
(26,893,851)
Year end spot rate
2019
2018
84.50
98.54
83.75
99.87
Sensitivity analysis
A reasonably possible strengthening (weakening) of foreign currency against BDT at 30 June would have effected the measurement of financial
instruments denominated in a foreign currency and increased (decreased) equity and profit or loss by the amounts shown below. This analysis
is based on foreign currency exchange rate variances that the Company considered to be reasonably possible at the end of the reporting period.
The analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.
30 June 2019
Effects in BDT
USD (3 percent movement)
Strengthening
profit or (loss)
(16,621,709)
Weakening
profit or (loss)
16,621,709
EUR (3 percent movement)
30 June 2018
Effects in BDT
USD (3 percent movement)
EUR (3 percent movement)
(16,621,709)
16,621,709
Strengthening
profit or (loss)
(67,570,800)
Weakening
profit or (loss)
67,570,800
(67,570,800)
b)
Interest rate risk
67,570,800
Interest rate risk is the risk that arises due to changes in interest rates on borrowings. Loans and borrowings are affected by fluctuations
in interest rates as the rate is of LIBOR plus variable rate ranging from 1.3% to 1.5%.
At the reporting date, the interest rate profile of the Company's interest bearing financial instruments was:
Nominal amount
In BDT
2019
2018
Fixed rate instruments
Financial liabilities
Variable rate instruments
Loans and borrowings
2,438,275,201
2,438,275,201
4,551,282,824
4,551,282,824
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