Investor Presentaiton

106 9 Inventories Inventories in hand Inventories in transit ANNUAL REPORT 2018-2019 Notes to the Financial Statements (Continued) Inventories in hand Heavy fuel oil (HFO) Light fuel oil (LFO) Lube oil Chemical Spare parts for plant maintenance Material-in-transit (Spare parts) Inventories in transit Material-in-transit (HFO) Consumption/loss/loan during the period Balance at 1 July 2017 Addition during the period Balance at 30 June 2018 Balance at 1 July 2018 Addition during the period Consumption/loss/loan during the period Balance at 30 June 2019 641,677,624 Amount 436,658,949 436,658,949 669,845,431 252,996 8,543,343,824 Heavy fuel oil (HFO) 141,952 6,096,314,919 (264,667) (8,748,362,499) (136,950) (5,863,128,437) 22,375 10,704 Quantity (MT) 10,704 15,706 Amount 4,335,244 4,173,603 4,173,603 3,785,243 Light fuel oil (LFO) 207,000 12,963,069 (208,951) (13,124,710) 432,000 27,055,126 (438,121) (27,443,486) 68,853 Quantity (Ltr) 66,902 66,902 60,781 Quantity (Ltr) 79,835 85,203 672,681 45,165 6.1 Movement in inventories 7.2 ANNUAL REPORT 2018-2019 Notes to the Financial Statements (Continued) 7 Trade and other receivables Trade receivables (Note: 7.1) Other receivables (Note: 7.3) 7.1 Trade receivables Capacity payment/Other monthly tariff Rental payment Energy payment (fuel payment) 30 June 2018 30 June 2019 Amounts in BDT 2,364,690,049 133,002,240 2,497,692,290 3,686,513,919 123,544,059 3,810,057,978 71,339,745 539,397,703 323,259,820 549,737,781 1,274,277,343 2,291,336,493 Energy payment (variable operation & maintenance payment) 479,675,258 2,364,690,049 522,179,825 3,686,513,919 In accordance with the Contract with KPCL-II and KPCL-III, Bangladesh Petroleum Corporation (BPC) had been the liquid fuel oil supplier and BPDB was liable to pay for the fuel. However, since the start of operation of the plants, the quality and quantity of the supplied fuel were not as per given specification in the contract. For this reason, the actual fuel consumption was higher per unit of electricity generation. On account of the actual fuel consumption, BPDB started deduction from some of the monthly invoices of these units which amounted to BDT 97,254,272 for KPCL-II and BDT 151,268,650 for KPCL-III (both the amounts are included under Energy payment- variable operation and maintenance payment) for the year 2012 and 2013. On continuous objections raised to BPDB by these units, BPDB had formed a committee to justify the quality and quantity of supplied fuel. The decision on this issue is under process with the Power Division of Bangladesh Government as of the reporting date. Trade receivables also include BDT 216,235,843 for KPCL-I, BDT 76,122,665 for KPCL-II and BDT 88,259,092 for KPCL-III due to differ- ences in power factors and fuel payment only of KPCL-II and KPCL-III. Power factor is used to derive revenue amount. BPDB uses the actual monthly power factor as per Power Purchase agreement when determining the amount payable to KPCL whereas the KPCL uses a fixed factor (0.85). This creates a difference between the monthly bill and the payment made by BPDB which is kept as receivables. Management is in discussion with BPDB with a view to resolving these issues and strongly feels that total amount of these BDT 629,140,522 is recoverable. Management position in this regard is supported by opinion from external legal counsels. 7.3 Other receivables BPDB (agreed charges paid to BIWTA) 10,834,002 18,707,557 FDR interest due from bank 26,180,628 49,257,284 Income tax authority (corporate tax deposition at the time of appeal) Summit Oil & Shipping Co. Ltd 4,018,887 4,018,887 90,567,034 49,103,044 DEG 1,813,269 Others 1,401,690 133,002,240 644,018 123,544,059 8 Current tax assets Opening balance Paid during the year 137,932,489 119,068,141 309,678,615 242,376,103 Adjustment of advance tax on completion of assessment (169,683,459) (414,122,228) 87,317,172 137,932,490 9 Advances, deposits and prepayments Advances Advance to South Eastern Tank Terminal Ltd. Bangladesh Inland Water Transport Authority Khulna Power Operations & Services Ltd Advance for HFO LC Loan to employees Others 138,772,800 257,348 1,955,727 807,123 3,170,168 1,445,546 271,387 4,592,036 145,849,298 363,217 485,736 6,271,790 107

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