Investor Presentaiton

ANNUAL REPORT 2018-2019 Notes to the Financial Statements (Continued) 110 30 June 2019 30 June 2018 Amounts in BDT ANNUAL REPORT 2018-2019 Notes to the Financial Statements (Continued) 30 June 2019 30 June 2018 Amounts in BDT 12 Capital redemption reserve Capital redemption reserve 14 Employee benefits 325,647,810 325,647,810 Staff gratuity (Note 14.1) Earned leave encashment (Note 14.2) 13 Deferred tax (asset)/liabilities As at 30 June 2019 19,316,373 6,419,365 25,735,738 17,376,176 6,053,566 23,429,742 14.1 Staff gratuity Particulars Property, plant and equipment (excluding land)- (Note 13.2) 2,179,431,690 Gratuity provision 19,316,373 Note Carrying amount at reporting date Taxable/ (deductible) Tax base temporary difference 2,179,431,690 Opening balance 17,376,176 15,037,426 Add: Provision made during the year 1,940,197 2,338,750 19,316,373 17,376,176 Taxable/(deductible) temporary difference Applicable tax rate Deferred tax (asset)/liabilities (19,316,373) (19,316,373) (4,829,093) Less: Paid during the year Closing balance 19,316,373 17,376,176 25% 14.2 Earned leave encashment Opening balance 6,053,566 5,424,749 Add: Provision made during the year 365,799 628,817 As at 30 June 2018 6,419,365 6,053,566 Particulars Property, plant and equipment (excluding land) Gratuity provision Taxable/(deductible) temporary difference Applicable tax rate Deferred tax (asset)/liabilities Carrying amount at reporting date 2,220,624,872 17,376,176 Tax base Taxable/ (deductible) temporary difference Less: Paid during the year Closing balance 6,419,365 6,053,566 2,220,624,872 15 Asset retirement obligation (ARO) (17,376,176) (17,376,176) Opening balance 30,170,359 30,170,359 25% (4,344,044) Provision made during the year Closing balance 8,576,083 38,746,442 30,170,359 16 Loans and borrowings (4,344,044) (4,829,093) (485,049) 263,915,897 (4,344,044) (268,259,941) 13.1 Deferred tax (income)/expense Deferred tax (asset)/liabilities at the beginning of the year Deferred tax (asset)/liabilities at the end of the year (Note 13) Deferred tax (income)/expense recognised 13.2 The Company had been enjoying income tax exemption from its inception to 12 October 2013 (exemption expiry date) as an independent power producer. In the absence of specific legislation in connection with companies in such situation with regard to tax depreciation, the Company had taken its tax written down value as at the exemption expiry date to be the same as accounting written down value on that date. From then on, deferred tax was calculated considering temporary differences of KPCL-I only. Subsequently, the tax authorities completed the income tax assessment of the Company for the year ended 31 December 2014 whereby the tax depreciation charge on property, plant and equipment was assessed to be the same as the accounting depreciation charge, implying that there were no temporary differences between accounting net book value and tax written down value. The tax authorities took a similar position in the assessments for the following two financial periods also. Considering the consistent treatment by the tax authorities for three consecutive periods, the Company believes the tax written down value of property, plant and equipment to be the same as the accounting net book value as at 30 June 2019 and hence no temporary differences exist. On this basis, previously recognised deferred tax liability relating to property, plant and equipment has been reversed. The Company had the following facility arrangements with banks as at 30 June: 2019 2018 Currency Loan limit Loan outstanding Loan limit Loan outstanding 440,000,000 Bank Alfalah Limited Standard Chartered Bank Citibank, NA BDT BDT BRAC Bank Limited BDT BDT 1,300,000,000 3,476,000,000 2,512,500,000 1,000,000,000 8,288,500,000 1,300,000,000 879,864,125 3,476,000,000 1,118,411,076 2,512,500,000 607,086,292 1,949,572,264 1,994,624,268 1,000,000,000 2,438,275,201 8,288,500,000 4,551,282,824 Bank Alfalah Limited Standard Chartered Bank Citibank, NA 440,000,000 607,086,292 879,864,125 1,949,572,264 1,118,411,076 2,438,275,201 1,994,624,268 4,551,282,824 111

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