Investor Presentaiton

ANNUAL REPORT 2018-2019 Notes to the Financial Statements (Continued) 114 ANNUAL REPORT 2018-2019 Notes to the Financial Statements (Continued) 19.1 KPCL-I was allowed tax exemption for a period of 15 years with effect from commencement of commercial production, vide SRO no. 114-Law/99 dated 26 May 1999 and amended time to time issued by Government of Bangladesh, under private sector power generation policy. This expired on 12 October 2013. Though after successful completion of the tenor the Company (KPCL-I) has been granted an extension for a further five-year term, no tax exemption facility has been given. Therefore, due income tax provision for the accounting year/period has been made in the accounts on the net profit of this unit (KPCL-I). However, no provision is made for income tax for other two units (KPCL-II and KPCL-III), amalgamated with KPCL-I, as BPDB is responsible for payment of income taxes, other taxes, VAT, duties, levies and all other charges imposed inside Bangladesh on any payments made by BPDB to the Company from the start of its commercial operation. 30 June 2019 30 June 2018 Amounts in BDT 30 June 2019 30 June 2018 Amounts in BDT 23 General and administrative expenses Salary and allowances Gratuity provision Earned leave provision Employer's contribution to provident fund 28,945,766 1,115,700 28,526,340 1,138,800 1,940,197 2,338,750 365,799 628,817 Leave fare assistance 356,608 533,157 Office rent and maintenance 6,770,231 6,604,791 Telephone, fax and e-mail 428,669 409,873 Advertisement, publicity, press and seminar 2,246,229 954,550 20 20 Revenue from contract with customer Entertainment expenses 708,904 68,454 Bank charges and commission 1,793,140 1,547,628 Capacity payment Rental payment 423,935,820 2,032,893,200 Energy payment - fuel payment 5,696,378,509 Energy payment - variable O & M payment 197,908,426 8,351,115,955 1,257,895,485 2,007,987,800 8,352,295,676 480,138,422 12,098,317,383 Printing, postage and stationeries 857,854 418,173 License fee - BIWTA Training expenses 549,775 3,066,306.00 44,606 18,789 Travel and conveyance 510,410 446,809 Vehicle fuel and maintenance 153,560 143,704 Plant wise Revenue Newspapers, books and periodicals 18,339 24,727 KPCL-1(110 MW) 1,435,960,054 KPCL-2(115 MW) 4,658,622,911 KPCL-1(40 MW) 2,256,532,990 4,368,966,370 5,629,470,113 2,099,880,900 Business promotion, subscription, gift and donation 6,124,135 6,127,732 CSR/Social goodwill expenses 3,621,158 3,663,194 Uniform and liveries 29,400 27,720 8,351,115,955 12,098,317,383 Insurance premium 20,633,791 21,617,031 Lease rent - BPDB 6,754,528 6,921,328 Contract balances (Note -7.1) 2,364,690,049 3,686,513,919 Directors' fees and board meeting expenses 1,712,460 1,801,371 Auditor's fee 675,000 675,000 21 Cost of sales Legal, tax and other professional fees 2,752,125 1,448,400 Consumption of heavy fuel oil (HFO) and related expenses (Note - 21.1) 5,900,832,363 Consumption of light fuel oil (LFO) Consumption of lube oil Consumption of spare parts (Note - 21.1) 27,443,488 99,247,518 193,828,035 8,760,390,571 13,124,710 Survey, testing and inspection fees Company matters & share related expenses 221,672,841 Performance bond/bank guarantee charges 342,186,082 Computer consumable and maintenance 3,883,458 469,327 1,238,292 44,802 4,175,179 53,250 2,266,282 491,492 Other operation and maintenance costs 128,500,930 148,713,724 General Meeting (AGM/EGM) expenses 2,047,588 2,120,481 - Manned security services at plant site Depreciation 6,731,193 6,734,023 Depreciation Other property, plant and equipment 4,467,259 6,107,708 21.1 281,958,964 6,638,542,490 328,779,555 9,821,601,506 The above expenses arise after considering various heavy fuel oil (HFO)and spare parts related expenses and adjustments which are not relevant with HFO and spare parts inventory. Hence, the actual consumption shown in inventory (note 6.1) will not directly match with the above mentioned expenses. VAT expenses 818,597 7,141,531 Bad debt Expenses 85,221,997 Other operating expenses 5,189,851 Miscellaneous and incidental expenses 677,269 2,922,278 187,976,973 119,619,496 22 22 Other income Sale proceeds of sludge, used lube oil and empty lube oil drums Gain from disposal of assets Handling commission & others 2,938,707 2,999 2,040,680 1,256,999 58,433,058 61,374,764 3,297,679 24 Foreign exchange gain/(loss) Receivable from BPDB US Dollar bank accounts Working capital loan and interest for acceptance of HFO L/CS Accounts payable Others 8,304,286 8,524,492 19,925,786 2,598,231 (73,067,871) (127,670,616) (613,912) (4,811,195) (56,853,005) (109,957,794) 115

View entire presentation