Biman Bangladesh Airlines Limited
Independent auditors' report along with audited consolidated and separate financial statements for the year ended June 2017
Syful Shamsul Alam & Co. ACNABIN Chartered Accountants V. Chartered Accountants Table of Content
Particulars
Independent auditors'report
Statennentof Consolidated Financial Position
Statement of Consolidated Profit or Loss and Other Comprehensive income
Statement of Consolidated Cash Flows
Statement of Consolidked Changes In Equity
Statement of Financial Position '
Statement of Profit or Loss and Other Comprehensive Income
Statement of Cash Flows
Statement of Changes In Equity
Notes to the Consolidated Financial Statements
Annexure:A- Statement of Consolidated Profit or Loss and other Comprehensive Income
Annexure:B- Details of Consolidated Total Assets
AnnexureiC- Statement of Profit and Loss and Other Comprehensive Income
Annexure:D- Details of Total Assets
Annexure:E- Elimination statement of Debtors and CreditorszyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA .j^
Annexure:F- Details of Consolidated Equities & Liabilities
Annexure:G- Details of Equities & Liabilities
Annexure:H- Summary schedule of Property, Plant and Equipment
Annexure:l- Summary schedule of Intangible Assets
AnnexureJ- Summary schedule of non- current assets held for sale and discontinued operations
Annexure;K- Summary Schedule of Property, Plant and Equipment (BPC)
Annexure:L- Summary Schedule of Property, Plant and Equipment (BFCC)
Annexure:M- Schedule Of Property, Plant and Equipment (Sabre)
Annexure:N- Summary of Related Party Transactions
Annexure:0- Summary schedule of Deferred Tax
Annexure:P- Disclosure under section 186(6) of the Companies Act 1994 Syful Shamsul Alam & Co. ACNABIN Chartered Accountants . Chartered Accountants
Independent Auditors' Report to the shareholders of Biman Bangladesh Airlines Limited
Report on Financial Statements
We have audited the accompanying consolidated financial statements of Biman Bangladesh Airlines Limited and its subsidiaries (the Group) as well as separate financial statements of Biman Bangladesh Airlines Limited (the Company) which comprise the consolidated and separate statements of financial position as at 30 June 2017 and consolidated and separate statements of profit or loss and other comprehensive income, consolidated and separate statements of changes in equity and consolidated and separate statements of cash flows for the year then ended and a summary of significant accounting policies and other explanatory information disclosed in notes-1 to 34 of the financial statements.
Management's Responsibility for the Financial Statements
Management of the Company is responsible for the preparation and fair presentation of these financial statements in accordance with Bangladesh Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors'judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements In order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our Qualified audit opinion. Syful Shamsul Alam & Co. ACNABIN Chartered Accountants . Chartered Accountants
Basis for Qualified Opinion
1. As disclosed in the note # 7 of the financial statements, two Airbuses classified as Assets Held for Sale (Airbus 310- 300 S-2 ADF 11- FS- OOl & S-2 ADK ll- FS- 002) have been shown at their carrying amount (written down value) of Tk. 585,623,044. This is a non- compliance of para 15 of BFRS 5: Non- current Assets Held for Sale and Discontinued Operations which requires these Airbuses to be valued at the lower of carrying amount and fair value less costs to sell. As a result, the Assets Held for Sale have been overstated.
2. As disclosed in note # 19 to the financial statements, the Company has recognized deferred tax expense amounting Tk. 685,062,367. But, in the light of BAS 12: Taxation, deferred tax expenditure would amount to Tk. 2,485,620,536. Thus, profit for the year of the Company as well as of the Group have been overstated by Tk. 1,800,558,169 with a consequential overstatement of equity by the same amount.
Qualified Opinion
In our opinion, except for the effects of the matters described in the Basis for Qualified Opinion paragraph, the financial statements present fairly. In all material respects, the financial positions of the Company and the Group as at 30 June 2017, and of its and Group's financial performances and cash r flows for the year then ended, and these financial statements have been drawn up in accordance with t the requirements of the Bangladesh Financial Reporting Standards as disclosed in note # 2.01.
Emphasis of Matters
Without further qualifying our opinion, we draw attention to the following matters:
1. As disclosed in note # 6 to the financial statements, the Company has shown the landing rights at a value of Tk. 5,072,851,401. This is the value of 41 routes estimated as of 23 July 2007, the date at which the Company was incorporated and take over took place. Currently 15 routes are operative and 26 routes are non- operative. No impairment test, as required by BAS 36: Impairment of Assets, has been conducted. This is a non- compliance of BAS 38: Intangible Assets, which requires the value of these routes to be shown at fair value by applying the required impairment test.
2. As disclosed in note # 8.1 to the financial statements, the year- end ledger balance of Stores and Spares amount to Tk. 5,337,907,189 against which there Is a provision for store obsolesce n =D{ Dhaka •- r Syful Shamsul Alam & Co. ACNABIN Chartered Accountants . Chartered Accountants
amounting to Tl< . 2,636,818,173, resulting in a net amount ofTlc. 2,701,089,016 as Stores and Spares. Whereas, the physical inventory report of Stores and Spares shows an amount of Tk. 2,603,423,660 (General inventory Tk. 2,336,933,302 and Airbus inventory Tk. 266,490,358) as the year- end balance. A firm of Chartered Accountants has been reportedly appointed to reconcile the Inventory figures of the inventory ledgers with those in the general ledger. Further, as per Para 9 of BAS 2: Inventories, the inventory should be valued at lower of cost and Net Realizable Value (NRV) which has not been followed in this case resulting In the possibility of more amount of write- off directly.
3. As disclosed In thezyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA note # 9.1 of the financial statements, Biman has long outstanding receivables from different parties amounting to Tk. 588,973,329 (receivables being outstanding from 1970 to 2015) against which provision of Tk. 390,229,417 has been made previously, requiring additional provision of Tk. 198,743,912 to be made In the financial statements. This additional provision includes inter alia Tk. 143,796,060 receivable from GMG Airlines which fully closed its business in 2012 and Its menibership has been cancelled by lATA Clearing House with a declaration of non- receivable of such amount.
4. As disclosed In note # 17 (i) to the financial statements, the Company has a loan liability to the Government of People's Republic of Bangladesh amounting to Tk. 1,912,543,075 for three DC-10-30 aircrafts, but there is no written contract or agreement In this regard.
5. As disclosed In note # 18 to the financial statements, according to BAS 19: Employee Benefits, actuarial valuation Is required for the defined beneficiary scheme. The Company Is maintaining provision for Pension and Gratuity without actuarial valuation from 2011. Moreover, disclosure as per para 57 of BAS 19 was not given In the financial statements.
6. As disclosed In note # 20.1 (ii) to the financial statements, the Company has shown liability payable to Padma Oil Company Limited amounting to Tk. 11,526,470,851, whereas Padma Oil Company Limited claims an additional amount of Tk. 5,046,718,922 as Interest receivable due to delayed payments. The Company disagrees with the additional claim and shows the additional claim as a Contingent Liability in note # 34 to the financial statements. Moreover, no written agreement exists between Padma Oil Company Limited and Biman Bangladesh Airlines Limited for any transaction.
7. As disclosed In note # 20.1 (iv) to the financial statements, the Company has shown an amount of Tk. 6,892,193,460 as payable to Civil Aviation Authority of Bangladesh (CAAB). iii Syful Shamsul Alam & Co. ACNABIN Chartered Accountants Chartered Accountants
However, we have not received any confirmation from CAAB about the balance of Rajshahi and Chittagong airports which totals Tk. 1,607,392,258 and included in the above amount. In addition, the Company disagrees on a portion of claim by CAAB amounting to Tk. 14,506,170,020. This is an amount of surcharge (claimed by CAAB) which has been disclosed inzyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA note # 34 to the financial statements as a contingent liability.
8. As disclosed in note # 23 to the financial statements, the Company has not complied with the Labor Act 2006 (as amended) as regards creating separate workers profit participation fund and welfare fund, and also in forming a Board of Trustees in this regard. In addition, hajj bonus has been adjusted erroneously against the provision for the fund.
9. Note # 24 to the financial statements discloses about the status of income tax appeals and assessments of the Company and also about non- deduction of tax on overseas payments to non- residents. other Matter
1, The financial statements of the Company for the year ended 30 June 2016 were audited jointly by ACNABIN, Chartered Accountants and Syful Shamsul Alam & Co., Chartered Accountants who expressed a qualified opinion on 29 November 2016.
2. The consolidated financial statements have been prepared on the basis of the financial statements of the Company and of Sabre Travel Network (Bangladesh) Limited, a subsidiary of the Company. Hoda Vasi Chowdhury & Co., Chartered Accountants was the auditor of the subsidiary company.
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Report on Other Legal and Regulatory Requirements
We also report that:
1. We have obtained all the material information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and made due verification thereof;
2. In our opinion, proper books of account as required by law have been kept by the Company so far as it appeared from our examination of those books; and Syful Shamsul Alam & Co. ACNABIN Chartered Accountants Chartered Accountants
3. The Company's statement of financial position and statement of profit or loss and other comprehensive income dealt with by the report are in agreement with the books of account.
Syful Shamsul Alam & Co. ACNABI N Chartered Accountants Chartered Accountants
Dated, Dhaka 02 December 2017
1 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Biman Bangladesh Airlines Limited Statement of Consolidated Financial Position As at 30 June 2017
Amount in Taka Particulars Notes 30.06.2017 30.06.2016 01.07.2015 (Restated) ASSETS Non- Current Assets Property, Plant and Equipment 3(a) 69,891,228,512 73,253,657,545 66,047,656,741 Capital Work In Progress 4 636,412,428 1 5.975,493 247,710,279 intangible Assets 6(a) 5,133,556,522 5,144,794,047 5.628,444,948 75,661.197,462 78,414.427.086 71,923,811,968
Non- Current Assets Held for iaie 7 585,623,044 4 129.839.786
Current Assets Stores and Spares 8 2,752,537,266 2.414,175,598 4,245,121,421 Sundry Debtors 9(a) 4,079,012,195 3,837.168,562 3,552,284,253 Advances, Deposits and Prepayments 10(a) 14,279,587,898 11,347,229,149 7,395,208,059 Advance Income Tax 11(a) 720,664,007 607,608,385 530,- 418,223 Accrued Interest on FDR 12(a) 42,946,098 33,525,206 46,753,147 Cash and Cash Equivalents 13(a) 5,128,907,117 4,770,412,263 3,907,1 59,129 27,003.654,581 23,010.119,163 19.676,944,232 Total Assets 103.250.475.088 101.424.546.254 91.730.595.986
EQUITIES & LIABILITIES Equity Share Capital 14.2 20,824,096,400 20,824,096,400 20,824,096,400 Equity of Government 15 101 101 101 Retained Earnings 16 (8,071,035,516) (8,469,267,685) (10.801,895,1 30) Attibutable to Bimans' owner 12,753,060,985 12,354,828,816 10,022,201,371 Non Controlling Interests 25 1 1 3,638,368 110.463,491 99,361,952 12.866,699,353 12.465,292,307 10.121,563,323 Non Current Liabilities Long Term Loans & Finance Leases 'l7 47,026,892,886 42,031,330,761 39,609,469,967 Deferred Liabilities 18(a) 5,463,546,160 5,519,862,235 3,586.859.546 Deferred Tax Liabilities/ (Assets) 19(a) (1,384,975,510) (2,062,742.770) (654,389,01 1) 51.105.463.536 45,488.450,226 42.541.940,502 Current Liabilities and Provisions
Accounts Payables & Accruals 20(a) 28,813,332,946 28,1 33,095,126 26,070.421.174 Unearned Transportation Revenue 21 2.615,246,003 4,068,881,677 3,021,747,672 Short Term & Current Portion of Long Term Loans & Finance 10,318,061,570 9.355.642.956 Leases 22 6,451,094.960 Workers Profit Participation & welfare Fund 23(a) 197,238.677 120,920,044 120,838,348 Provision for Taxation 24(a) 1.191,399,613 829,845,304 498,442,011 39.278,312,199 43,470,803,722 39.067,092,161 Total Equities and Liabilities 103.250.475.088 101.424.546.254 91.730.595.986
The annexed notes are an integral part of these financial statements. Signed on behalf of the Board of Directors as per decision in its 202nd meeting held on 02 December 201 7 by
Kazi Atique Rahman, PCS nneet Sood A M MosaddiqiftrAhmed Company Secretary Chief Financial Officer Managing Director & CEO
Signed in terms of our separate report of even date.
Syful Shamsul Alam & Co. ACNABIN Chartered Accountants Chartered Accountants
Dated, Dhaka 02 December 2017
1 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Biman Bangladesh Airlines Limited Statement of Consolidated Profit or Loss and Other Comprehensive Income For the year ended 30 June 201 7
Amount in Taka Particulars Notes 2016-17 2015-16
Operating Revenue 26(a) 45.045.685,258 47,743,003,152 ^.J, , Operating Expenses 27(a) (41,614.559,074) (42,890.194,703) Operating Profit/ (Loss) 3.431.126,184 4,852,808,449 Non- operating Reveni^e 28(a) 469,554,929 503.935,687 - Non- operating Expenses 29(a) (1,328.180,967) (3,181,269,276) ^'"^ Non- operating Profit/ (Loss) (858,626,038) (2,677,333,589) Profit/ (Loss) before Interest & Tax 2.572.500.146 2.175,474,860 Finance Expense 30 (982,688.443) (850,716,779) Net Profit/ (Loss) for the year before WPPF and Tax 1.589,811,703 1,324,758,081 • Workers' Profit Participation & Welfare Fund 23.2 82,933,085 46,701,406 - Net Profit/ (Loss) for the year before Tax 1,506,878,617 1,278,056,676 Current Tax lncome/ (Expenses) 24.2 (361,554,309) (331,403,293) . Deferred Tax lncome/ (Expenses) 19.2 (677,767,259) 1,408,353,759 Total Tax lncome/ (Expenses) (1.039,321,568) 1,076,950,466 Net profit / (Loss) after Tax for the year 467,557,049 2,355,007,142
Other Comprehensive Income _ _ Total Comprehensive lncome/ (Los5) for the year 467,557,049 2,355.007.142
Profit for the year attributable to: Ow/ ners of the company ^ 398,232,1 71 2.311,712,603 Non- controlling interest zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA"^f^' 69,324,878 43,294,539 467,557,049 2,355,007,142 Total Comprehensive Income for the year attributable to: Owners of the company 398,232,1 71 2.311.712,603 Non- controlling interest 69,324,878 43.294.539 467,557,049 2,355,007,142
The annexed notes are an integral part of these financial statements. Signed on behalf of the Board of Directors as per decision in its 202nd meeting held on 02 December 2017 by
Kazi Atique Rahman. PCS Virffeet Sood A M Mosaddique Ahmed NKA Company Secretary Chief Financial Officer Managing Directors CEO Director
Signed in terms of our separate report of even date.
I
Syful Shamsul Alam & Co. ACNABIN Chartered Accountants Chartered Accountants
Dated, Dhaka 02 December 2017 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Biman Bangladesh Airlines Limited Statement of Consolidated Cash Flows For the year ended 30 June 201 7
Amount in Taka Particulars 2016-17 2015-16
A. Cash flows from operating activities Total comprehensive income/ (loss) for the year (before tax) 1,506,878,617 1,278,056,676 Adjustment for non- cash items and consideration elsewhere 1^ 982,688,443 850,716,779 Interest Income *• (152,880,447) (1 33,903,065) Depreciation charged 3,359,31 7,224 3,306,941,750 Provision for deferred liabilities 649,216.631 2,214,864,543 Amortization for C Check, Engine Overhauling, Software 3,055,721,790.40 1,022,447,699 Loss due to non current assets held for sale - 125,039,782 Loss on sale/ disposal of fixed assets 22,065,637 484,073,222 9,423,007,896 9,148,237,386 Changes in working capital Decrease/ dncrease) in sundry debtors (241,843,632) (280,564,309) Decrease/ (lncrease) In advances, deposits and prepayments (2,932,358,749) (3,741.026,553) Decrease/ dncrease) in stores and spares (338,361,669) 1.640.866,126 Decrease/ dncrease) in work in progress (620,436,935) 231.734.786 lncrease/ (Decrease) in accounts payable and accruals 535,187,819 2.009.710.297 lncrease/ (Decrease) in un- earned transportation revenue (1,453.635.675) 1.047,134.005 (5.051.448,841) 907.854.353 Cash generated from operation 4,371,559,055 10,056,091,739 Advance Income tax paid (1 13.055.622) (77,190,162) lncrease/ (Decrease) in Provision for WPPF 76,318,633 81,696 Payment to the trustee board against deferred liabilities (705,532,705) (281.861,854) Net cash flow from operating activities 3.629.289,362 9.697.121.418 B. Cash flows from investing activities
Acauisition of fixed assets (680.476.414) (8.887.645,647) Payment for C Check, Engine Overhauling, Software (2,986.259,242) (2,631.464.552) Proceed from the disposal of fixed assets 24,733,669 - Interest received 143,459,555 147.131,006 Acquisition of Intangible Assets (7.059.1 51) (16.222.373) I. Net cash used in investing activities (3,505,601,584) (1 1,388,201,567) C. Cash flows from financing activities
Interest Paid (894,016,597) (708,498,573) lncrease/ (Decrease) in long term loans and finance leases 4,995,562,125 2,421,860,794 lncrease/ (Decrease) in short term loan and current portion of long term (3,800,588.456) 873,164,063 Dividend paid for non Controlling Interest (66,150.000) (32.193.000) Sig Net cash used in financing activities 234.807.073 2.554.333,284
358,494.854 863.253,135 Cash and cash equivalents at the beginning of the year 4,770,412,263 3.907.159,129 Cash and cash equivalent at the end of the year 5.128.907.1 17 4.770.412.2^3
The annexed notes are an intearal oart of these financial statements. Signed on behalf of the Board of Directors as per decision in its 202nd meeting held on 02 December 2017 by
L Kazi Atique Rahman, FCS / ineet Sood A M Mosaddicrue^Ahmed Company Secretary Chief Financial Officer Managing Director & CEO b L r. Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Biman Bangladesh Airlines Limited Statement of Consolidated Changes in Equity for the year ended 30 June 201 7
Paid- up Capital Non - Controlling Particulars Retained Earnings Total Equity to BBAL Total Government Interest Share Capital Equity
For the year 2016- 17
Balance as at 1 July 2016 20,824,096.400 101 (8.469,267.685) 12,354.828.816 110,463,491 12,465,292,307
Restated balance 20,824.096,400 101 (8,469,267,685) 12,354,828,816 110,463,491 12,465.292,307
Net profit for the year - 398,232,1 71 398,232,1 71 69,324,878 467,557,049 Dividends (cash) for 2016 --- (66,150,000) (66,150,000)
Balance as at 30 June 2017 1, 20,824,096,400 101 (8.071,035,516) 12,753,060,985 113,638,368 12,866.699,353
For thevear 2015- 16
Balance as at 1 July 201S 20,824.096.400 101 (10.801.895,130) 10,022,201,371 99.361,952 10,121,563,323 Prior year adjustment for Tax paid on Employee salary for the year 2011- 12, 2012- 13. 2013- 14 and 2014- 20,914,840 20,914,840 - . 20,914.840 1 5 charged as Biman's expenditure.
Restated balance 20,824,096,400 101 (10.780,980,290) 10,043,116,211 99.361.952 10,142,478,163
Net profit for the year - 2.311,712.603 . 2.311,712,603 43,294,539 2,355,007,142 Dividends (cash) for 201 S - -- (32,193,000) (32,193.000)
Balance as at 30 June 2016 20.824.096,400 101 (8,469,267,685) 12,354.828,816 110,463.491 12,465,292.307
The annexed notes are an integral part of these financial statements. Signed on behalf of the Board of Directors as per decision in its 202nd meeting held on 02 December 201 7 by
Company Secretary Chief Financial Officer Managing Director & CEO Director Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Biman Bangladesh Airlines Limited Statement of Financial Position As at 30 June 2017
Amount in Taka Particulars Notes 30.06.2017 30.06.2016 01.07.2015 (Restated) ASSETS Non- Current Assets Property, Plant and Equipment 3 69,872,181,405 73,234,71 3.106 66.027,21 5.270 Capital Work In Progress 4 636,412,428 1 5,975,493 247.710.279 Investment in Shares 5 9,180,000 9,180.000 9.180.000 Intangible Assets 6 5.133.470.678 5.144.681.843 5.628,444,944 75.651.244.51 1 78.404.550,443 71.912.550.493 I. Non- Current Assets Held for Sale 7 585.623.044 4 129,839.786 Current Assets Stores and Spares 8 2.752.537.266 2.414.175.598 4.245,121.421 Sundry Debtors 9 3.941.675.191 3,739,876.822 3,507.851.738 Advances, Deposits and Prepayments 10 14.270.379.760 11.340.676.910 7.389.032.855 Advance Income Tax 11 248,045,141 208,778.336 1 73,453.223 Accrued Interest on FDR 12 41,609,011 32.389.146 45.050.652 Cash and Cash Equivalents 13 4,954,374,526 4,596,526,900 3.738,074,934 26.208,620,895 22.332,423.712 19,098.584,823 Total Assets 102.445.488.452 100.736.974.160 91.140.975.102
EQUITIES & LIABILITIES Equity Share Capital 14.2 20.824.096.400 20.824,096,400 20,824,096,400 Equity of Government 15 101 101 101 Retained Earnings 16.1 (8.180.132.188) (8,575,059.891) (10,896,132,672) 12.643,964.313 12.249.036.610 9,927,963,829 Non Current Liabilities Long Term Loans and Finance Leases .17 47.026.892.886 42,031.330.761 39,609,469,967 Deferred Liabilities 5.446.701.200 5.508,968.713 3,577,522,639 Deferred Tax Liabilities/ {Assets) 19 (1,376,032,729) (2,061,095.097) (650,363,124) 51.097,561,357 45.479,204.377 42,536,629,482 Current Liabilities and Provisions: Accounts Payable and Accruals 20 28,746,725,148 28,090,534,791 26,045,026,168 Unearned Transportation Revenue 21 2,615,246,003 4,068,881,677 3,021,747,672 Short Term & Current Portion of Long Term Loans & Finance Leases 22 6.461.094,960 10,318,061,570 9,355,642,956 Workers Profit Participation & welfare Fund 23 183,1 23,457 1 12,236,229 114,849,383 Provision for Taxation 24 697.773.214- 419,018.905 139,115,612 38,703.962,782 43,008.733.1 73 38.676.381.791 Total Equities and Liabilities 102.445.488.452 100.736.974.160 91.1'^P.975.102
The annexed notes are an integral part of these financial statements. Signed on behalf of the Board of Directors as per decision in its 202nd meeting held on 02 December 201 7 by
Company Secretary Chief Financial Officer Managing Director & CEO Director
Signed in terms of our separate report of even date.
Syful Shamsul Alam & Co. ACNABIN ^' Chartered Accountants Chartered Accountants
Dated. Dhaka . ' ' . . 02 December 2017 - Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Biman Bangladesh Airlines Limited Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 201 7
Amount in Taka Particulars Notes 2016-17 2015-16 Restated
Operating Revenue 26 44,568.366,286 47,424,678,248 Operating Expenses 27 (41,350,590,651) (42,708,982,252) Operating Profit/ (Loss) 3,217,775,635 4,715,695,996 Non- operating Revenue 28 523,351,020 524,834,702 Non- operating Expenses 29 (1,328,180,967) (3.181,269,276) Non- operating Profit/ (Loss) (804.829,947) (2,656,434,574) Profit/ (Loss) before Interest & Tax 2.412,945,688 2,059,261,422 Finance Expense 30 (982,688,443) (850,716,779) Net Profit/ (Loss) for the year before WPPF and Tax 1,430.257,245 1,208,544,643 Workers' Profit Participation & Welfare Fund 23.2 71,512,862 39,215,384 Net Profit/ (Loss) for the year before Tax 1,358,744,382 1,169.329,260 Current Tax lncome/ (Expenses) 24 (278,754,309) (279,903,293) Deferred Tax lncome/ (Expenses) (Annexure- 0) 19.2 (685,062,367) 1,410,731,973 Total Tax lncome/ (Expenses) (963,816,676) 1,130,828,680 Net profit / (Loss) after Tax for the year 394,927,706 2.300,157.940
Other Comprehensive Income - - Total Comprehensive lncome/ (Loss) for the year . 394,927,706 2,300,157,940
The annexed notes are an integral part of these financial statements. Signed on behalf of the Board of Directors as per decision in its 202nd meeting held on 02 December 2017 by
Company Secretary Chief Financial Officer Managing Director & CEO Director
Signed in terms of our separate report of even date.
Syful Shamsul Alam & Co. ACNABIN Chartered Accountants Chartered Accountants
Dated, Dl.aka 02 December 2017 Il
Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Biman Bangladesh Airlines Limited Statement of Cash Flows For the year ended 30 June 2017
Amount in Taka Particulars 2016-17 2015-16
A. Cash flows from operating activities Total comprehensive income/ (loss) for the year (before tax) 1,358,744,382 1,169,329,260 Adjustment for non- cash items and consideration elsewhere Finance expense 982,688,443 850,716.779 Interest Income (152,880,447) (133,903.065) Depreciation charged 3,346,222,518 3,292.750.393 Provision for deferred liabilities 643,265,193 2,21 3.307,928 Amortization for C Check, Engine Overhauling, Software 3,055,675,430 1,022.437.499 Loss due to non current assets held for sale - 125,039,782 r Loss on sale/ disposal of fixed assets 22,164,1 50 484,032,700 9,255,879,670 9,023,71 1,276 Changes in working capital Decrease/ dncrease) in sundry debtors (201,798,368) (227.705.083) Decrease/ (lncrease) in advances, deposits and prepayments (2,929,702,850) (3.740.649.518) Decrease/ dncrease) in stores and spares (338,361,669) 1.640.866.126 Decrease/ (lncrease) in work in progress (620,436,935) 231,734,786 lncrease/ (Decrease) in accounts payable and accruals 511,140,357 1,992,544,968 lncrease/ (Decrease) in un- earned transportation revenue (1,453,635,675) 1.047,134,005 (5,032,795,140) 943,925,285 Cash generated from operation 4,223,084,529 9.967,636.561 Advance Income tax paid (39,266,805) (35,325,1 13) I lncrease/ (Decrease) in Provision for WPPF 70,887,228 (2,613,155) Payment to the trustee board against deferred liabilities (705,532,705) (281,861.854) r. Net cash flow from operating activities 3,549,172,248 9,647,836,438 B. Cash flows from investing activities Acquisition of fixed assets (667,243,553) (8,874,910,500) Payment for C Check, Engine Overhauling (2,986,259,242) (2,631,464,552) Proceed from the disposal of fixed assets 24,599,671 - Interest received 143,660,582 146,564,571 Acquisition of Intangible Assets . (7,039,151) (16,099,973) Net cash used in investing activities (3,492,281,693) (11,375,910,755)
C. Cash flows from financing activities Interest Paid (894,016,597) (708,498,573) lncrease/ (Decrease) in long term loans and finance leases 4.995,562,125 2,421,860,794 lncrease/ (Decrease) in short term loan and current portion of (3.800,588,456) 873,164,063 long term loans and finance leases Net cash used in financing activities 300,957,073 2,586,526,284 Net lncrease/ (decrease) in cash and cash equivalent 357,847,625 858,451,967 Equivalents during the year (A+ B+ C) Cash and cash equivalents at the beginning of the year 4,596,526.900 3,738,074,934 Cash and cash equivalent at the end of the year 4,954,374.526 4,596.526,900
The annexed notes are an integral part of these financial statements. Signed on behalf of the Board of Directors as per decision in its 202nd meeting held on 02 December 201 7 by
Kazi Atique Rahman, FCS Viheet Sood A M Mosaddiql> e^hmed NKA Mobin, FCA, F( Company Secretary chief Financial Officer Managing Director & CEO Director Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Biman Bangladesh Airlines Limited ^ - Statement of Changes in Equity " * For the year ended 30 June 201 7
Paid- up Capital Particulars Retained Earnings Total Government Share Capital Equity
Balance as at 01 July 2016 (Restated Balance) 20,824,096.400 101 (8,575,059.891) 12,249,036,610 Net profit for the year 394,927,706 394,927,706 1>
Balance as at 30 June 20? 7 *• 20,824,096,400 101 (8,180,132,188) 12,643,964,313
Balance as at 01 July 201 5 20,824,096,400 101 (10,896.132,672) 9,927,963.829 Prior year adjustment for Tax paid on Employee salary for the year 20,914,840 20,914,840 2011-12, 2012- 13, 201 3-14 and 2014- 15 charged as Biman's expenditure. Restated balance 20,824,096,400 101 (10,875.217,832) 9,948,878,669 Net profit for the year 2,300,157,940 2,300,1 57,940 Balance as at 30 June 2016 20,824,096,400 101 (8,575,059,891) 12,249.036,610
The annexed notes are an integral part of these financial statements. Signed on behalf of the Board of Directors as per decision in its 202nd meeting held on 02 December 2017 by Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Biman Bangladesh Airlines Limited (Incorporated on 23 July 2007) Notes to the Consolidated Financial Statements For the year ended 30 June 201 7
1.00 Background and Information
1.01 The Company
Bangladesh Biman Corporation has been converted into Public Limited Company on 23rd July 2007 by dint of the Ordinance no 13, 2007 dated 11 July 2007 and SRO NO 191/ AIN/ 2007 dated 02 August 2007. Biman Bangladesh Airlines Limited has tal^en over the business, assets and liabilities of Bangladesh Biman Corporation with effect from 23rd July, 2007. ItzyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA was done as per the Bangladesh Gazette notification dated August 2, 2007 and Agreement for Transfer of Undertaking between the Government of People's Republic of Bangladesh, represented by Ministry of Civil Aviation and Tourism and Biman Bangladesh Airlines Limited signed on 31 st July 2007.
Biman Poultry Complex (Former Savar Poultry Complex) was established in 1976 by Bangladesh Biman Corporation. The complex went into its operation in 10th November, 1980. The complex produces and supplies hybrid oTie day chicks both layer and broiler from its parent stock and supplies dressed meat to Biman Flight Catering Centre (BFCC). The complex also produces agricultural products like paddy, wheat, mustard, vegetable and grows fishes, milk. Total area of the complex is 76.12 acres.
Biman Flight Catering Center (BFCC) was established on 11 November 1989 vide Biman office order # 13/89. An agreement was made between Bangladesh Biman Corporation and M/S Albert Abela (Far East) Inc. on 03 October 1989 for three years to operate BFCC. After completion of 3 years operation period M/s Albert Abela (Far East) INC. left BFCC and Bangladesh Biman Corporation took over the operations of BFCC on 27 October 1 992. Its capital was provided by Bangladesh Biman Corporation at the time of its setting up. A Board called BFCC Board manages it. A board was also originally constituted by Bangladesh Biman Corporation for management of BFCC on 26 November 1989 vides Biman order No. 38/39. The Board is re- constituted by Bangladesh Biman Airlines Ltd. from time to time. For all intents and purposes Biman Bangladesh Airlines Ltd. may be treated as the owner of BFCC and BFCC may be considered as a unit of Biman. The principle activity of Biman Flight Catering Center (BFCC) is to provide catering services to all Airlines at Dhaka Including Biman Bangladesh Airlines.
1.02 Prior History Bangladesh Biman, established under Bangladesh Biman (Temporary Order 1972) (APO No. 2 of 1972 as amended by President's Order No. 31 of 1 972), started functioning by taking over the assets and liabilities of the erstwhile Pakistan International Airlines (PIA) within the territories constituting Bangladesh. Thereafter, on 27 October 1972, a Corporation was established called Bangladesh Biman by Bangladesh Biman Order 1972 (President's Order No. 126 of 1972) and on 26 May 1977, this order was repealed by Bangladesh Biman Corporation Ordinance 1977 which established the corporation called Bangladesh Biman Corporation.
1.03 Nature of Business The principal activities of the Company are to provide and develop safe, efficient, adequate, economical and properly coordinated air transport services, domestic as well as international. Biman Bangladesh Airlines Ltd. also has two seperate units namely Biman Poultry Complex (BPC) & Biman Flight Catering Centre (BFCC) whose accounts are consolidated in Biman Bangladesh Airlines Ltd.
2.00 Accounting Policies and Disclosures
Basis of Preparation
The financial statements have been prepared in accordance with the Bangladesh Financial Reporting Standards (BFRS). The elements Included in the financial statements have been measured under historical cost convention. The Biman Bangladesh Airlines Limited took over Assets and assumed Liabilities of Bangladesh Biman Corporation on the basis of valuation done by an independent valuer which was approved by the Board of Directors. Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
BAS Name of the BAS/ BFRS Compliance Status BAS 1 Presentation of Financial Statements Complied BAS 2 Inventories Partially Complied BAS 7 Statement of Cash Flows Partially Complied
BAS 8 Accounting Policies, Changes in Accounting Estimates and Errors Complied
BAS 12 Income Taxes Complied BAS 16 Property, Plant & Equipment Complied BAS 17 Leases Disclosure as para 35 not complied BAS 18 Revenue Partially Complied BAS 19 Employee Benefits Disclosure as para 57 not complied BAS 21 The^ects of Changes in Foreign Exchange Rates Complied BAS 23 Borrowing Costs Complied BAS 24 Related Party Disclosures Complied BAS 27 Separate Financial Statements Complied BAS 36 Impairment of Assets Complied BAS 37 Provisions, Contingent Liabilities and Contingent Assets Complied BAS 38 Intangible Assets Complied BAS 41 Agriculture Partially Complied BFRS 5 Non- current Assets Held for Sale and Discontinued Operations Partially Complied BFRS 7 Financial Instrument: Disclosures Complied BFRS 10 Consolidated Financial Statements Complied BFRS 1 3 Fair Value Measurement Partially Complied
2.02 Basis for consolidation Biman Bangladesh Airlines Limited is holding 51% share ofzyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA M/ S Sabre Travel Network (Bangladesh) Limited. The financial statements of the subsidiary company used in the preparation of the consolidated financial statements in accordance with BAS 27 and BFRS 10 as at the end of the reporting period. Consistent accounting policies are applied to like transactions and events in simitar circumstances. All intra- group balances, transactions, income and expenses and unrealized profits and losses resulting from intra- group transactions are eliminated in full. Non- controlling interest represents the equity in subsidiary company not attributable are presented separately in the consolidated statement of comprehensive income and within equity in the consoiidated statement of financial position, separately from equity attributable to owners of the Parent. The management of the Company can dispose upto Tk. 1 Lac. After that they have to obtain approval from board of directors.
2.03 Property, Plant and Equipment
Property, Plant and Equipment are stated at cost less accumulated depreciation. Cost includes value of assets taken over from Bangladesh Biman Corporation at revalued amount. The property, plant and equipment of Bangladesh Biman Corporation were revalued by an independent valuer as on 22 July 2007 and the Company incorporated those revalued assets as opening balance as on 23 July 2007. Capital work in progress represents the cost incurred for acquisition and/ or construction of assets that were not ready for use at the end of 30 June 201 7 and those are stated at cost.
2.04 Depreciation of Non - Current Assets
Aircraft and engine maintenance costs in respect of major overhauls of owned aircraft which are typically carried out at intervals greater than one year are capitalised and depreciated by reference to their units of economic consumption typically hours/ Cycle used.
The rates at which assets are depreciated per annum, depending on the nature and estimated useful life of assets are given below:
Asset Category Rate
Building 2% Aircraft & Equipment 10% New Airframes (777- 300ER) 4% Aircraft and Engine Maintenance Costs 1 5% to 33% Operating Ground Equipment 3.33% to 5% Furniture & Fixture 10% Machinery & Equipment 3.33% to 20% Motor Vehicles 10% Spare and rotables 10% Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
2.05 Leases
The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement at inception date: whether fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset. (i) Finance Lease * Finance leases, which transfer to the Biman substantially all the risks and benefits incidental to ownership of the leased asset, are capitalised at the inception of the lease at the fair value of the leased asset or, if lower, at the present value of the minimum lease payments. Any initial direct costs are also added to the amount capitalised. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against the profit and loss account, ., (ii) Operating lease
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease payments are recognised as an expense in the profit and loss account on a straight- line basis over the lease term.
2.06 Investment Biman Bangladesh Airlines Ltd. has invested in Equity of Sabre Travel network (Bangladesh) Limited, which is a subsidiary of Biman Bangladesh Airlines Limited. Biman purchased 91,800 ordinary shares of Tk. 100 each at the time of company formation in 2003, these represented 51% Equity. At the time of establishment the name of the Comapny was Abacus Banagladesh NMC Limited. As per decision of Extra Ordinary General Meeting held on 1 5 December 201 5, the name was changed to Sabre Travel Network (Bangladesh) Limited. Disclosure of the Companies Act 1994 under section 186(6) has been given in Annexure - P.
2.07 Stores and Spares
Inventories of Stores and Spares and raw materials are stated at the the cost. Due to lack of active market net realisable value could not be calculated. The cost price of store and spares is determined on a weighted average basis. Where necessary, allowance is provided for damaged, obsolete and slow moving items to adjust the carrying value of Inventories to the lower of cost and net realisable value.
2.08 Landing Rights The company acquired all of it's Landing rights namely route network from the corporation as on 23.07.2007 and are capitalised at fair value on acquisition. Landing rights are considered to have an indefinite economic life. An Impairment review has been conducted on the operations of the route network. The recoverable amount of this 'Cash- Generating Unit' (CGU) has been measured on its value in use, using a discounted cash flow model. The after tax discount rate applied to cash flow projections iszyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA 1%. A reasonable change to the assumptions used by mangement to determine the impairment required, particularly the discount rate and long- term growth rate, would not significantly affect the result. _,
2.09 ImpairmentTestof Landing Rights A sensitivity analysis has not been disclosed as management believe that any reasonable change In assumptions would not cause the carrying value of the CGU to exceed their recoverable amount. The recoverable amount of the landing slots has been determined based on value- ln- use calculation using five years Cash Flow projection approved by management. The impairment review of landing rights has not resulted in an impairment change during the year (2016- 1 7 no impairment).
2.10 Revenue recognition Revenue is recognised to the extent that It is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of consideration received or receivable.
Revenue is principally earned from the carriage of passengers, cargo and mall, engineering services, training and . related activities. Revenue for the Company excludes dividends from subsidiary companies and intra- group transactions. Passenger and cargo sales are recognised as operating revenue when the transportation services are provided. The value of unused tickets and air waybills is included in current liabilities as sales in advance of carriage. Ticket sold but not yet used (unutilized) are recognized as unearned passenger revenue. Biman develops estimations using historical statistics and data for unredeemed/ unutilized tickets. Biman has the policy to write back estimated unredeemed/ unutilized tickets prior to 30 months and recognized as operating revenue.
Revenue from engineering services and traning are recognised on provision of services and Invoices raised.
11 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Biman loyalty program ' Biman Bangladesh Airlines Limited operates a frequent flyer program called 'Biman Loyality Program' that provides travel awards to program members based on accumulated mileage. In accordance with IFRIC 13 a portion of passenger revenue attributable to the award of frequent flyer benefits, estimated based on expected utilization of these benefits, is deferred until they are utilized. These are included under deferred revenue on the financial statements. Any remaining unutilized benefits are recognized as revenue upon expiry. The amount deferred is recognized as revenue on redemption of the points including a portion of the points that does not expect to be redeemed by the customers {"breakage"). If estimated changes in accounting policies are for only one period, changes are applied on the current year but if the estimated changes effect the following periods, changes are applied both on the current and following years prospectively.
2.11 Foreign currency ^ Foreign currencies are translated into taka at the transaction dates. Monetary assets and liabilities are reconverted at the rates prevailing at the balance sheet date. Differences arising on conversion are charged or credited to the profit and loss account and adjusted with the respective account balance.
• • . • r r 2.12 Income Tax Expense Income tax expense is calculated as per Income Tax Ordinance 1984 and recognized in statement of profit or loss and other comprehensive income. Deferred tax Liabilities/ Assets has been recognized in accordance with the provision of BAS 12 based on temporary differences arising due to difference in the carrying amount of the assets or liabilities and their tax base. Minimum tax liabilities under section 82C of Income Tax Ordinance has been recognized as there taxable loss arises.
2.13 Employee Benefits
The company maintains both defined contribution plan and defined benefit plan for its eligible permanent employees. The eligibility is determined according to the terms and conditions set forth in Biman Service rules.
The company has accounted for and disclosed employee benefits in compliance with the provisions of BAS 19: Employee Benefits. No actuarial valuation was performed up to 30 June 2016, thought the actuarial valuation was performed up to 30 June 2011. Based on that actuarial valuation report, Biman has made provision in the current year.
The cost of employee benefits is charged off as revenue expenditure in the period to which the contributions relate.
The company's employee benefits include the following:
(a) Defined Contribution Plan (Provident Fund) The company has a registered provident fund scheme (Defined Contribution Plan) for employees of the company eligible to be members of the fund In accordance with the rules of the provident fund constituted under an irrevocable trust. All permanent employees under the Gratuity Scheme contribute from 8.33% of their basic salary to the provident fund and the company also makes equal contribution. All permanent Employees under Pension Scheme contribute 1 5% of their basic Salary to the provident fund. The company recognizes contribution to defined contribution plan as an expense when an employee has rendered services in exchange for such contribution. The legal and constructive obligation is limited to the amount it agrees to contribute to the fund.
(b) Defined Benefit Plan (Gratuity)
This represents unfunded gratuity scheme for its permanent employees covered under Gratuity Scheme. Employees are entitled to gratuity benefit after completion of minimum ten years of service in the company. Though no valuation was done to quantify actuarial liabilities as per the BAS 19: Employee Benefits, such valuation in not likely to yield a result significantly different from the current provision.
(c) Short- term employee benefits ,
Short- term employee benefits include salaries, bonuses, leave encashment, etc. Obligations for such benefits are measured on an undiscounted basis and are expensed as the related service Is provided.
(d) Contribution to Workers' Profit Participation and Welfare Funds
This represents 5% of net profit before tax contributed by the company as per provisions of the Bangladesh Labor (amendment) Act 2013 and is payable to workers as defined in the said law.zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA y^^^^^ui^ y;.vV>- • '• 'Z^ (e) Insurance Scheme Employees of the company are covered under insurance schemes.
2.14 Related PairtyTransactions Biman has transactions with related parties, the related parties are Government of Bangladesh, Padma Oil C L#iited, ,M|ghna Oil Company Limited, Civil Aviation Authority- Bangladesh & Sadharan Bima Corporation. R I/ Payable'fo; related parties are given below. Details are given in Annexure- N.
12 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
As on 30 June Related Party 2017
Govt. Of Bangladesh: Receivable from Govt, of Bangladesh Tk. 237,221,167 Loan from Govt, of Bangladesh Tk. 4,813,543.075 Payable to Govt, of Bangladesh Tk. 1,734,097,933 (Interest on Loan from Govt.)
Others: Payable to Padma Oil Company Limited Tk. 11,803,772.179 Advance to Meghna Oil Company Tk. 1,410,886 Limited Loan from Sonali Bank (UK) Limited Tk. 9,632,177,179 Payable to Civil Aviation Authority Tk. 6,820,594,289 Payable to Insurance Company Tk. 36,702,356
Loan from Sonali Bank UK and other International Loans received by Biman Bangladesh Airlines Limited in connection with purchase of aircrafts are fully covered by Sovereingn Guarantee by the Government of The People's Republic of Bangladesh.
2.1 5 Aircraft Purchase Agreement
Biman has signed three definitive agreements with the Boeing Company to acquire ten new generation aircrafts. These will provide fuel efficiency, reliability and spacious passenger cabin. Under these agreements Biman has ordered for 4 (four) B777- 300 ER, 2 (two) B737- 800 ER and 4 (four) B787-8 Aircrafts. Out of 10 (ten), 4 (four) B777- 300ER and 2(two) B737- 800ER aircraft have already been delivered by Boeing. Four B787- 8 will be delivered by 201 8/201 9.
2.16 Financial risk management:
The management has overall responsibility for the establishment and oversight of the company's risk management framework. The company has exposure to the following risks from its use of financial Instruments.
Credit Risk Liquidity Risk Market Risk
Credit risk: Credit risk Is the risk of a financial loss to the company If a customer or counterparty to a financial instrument fails to meet its contractual obligations. It mainly comprises of accounts/ trade receivables, advances to suppliers and trade deposits. The Company's maximum exposure to credit risk at the reporting date is accounts receivables which are secured by agreement and Bank Guarantees. Travel Agencies usually provide the Bank Guarantee to lATA and lATA gives the guarantee to Biman up to the amount equal to the Bank Guarantee. All other third parties including GSA in foreign countries doing business based on the agreement.
Exposure to credit risk The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:
Particulars 2017 2016 Accounts receivable 4,079,012,195 3,837,168,562 Advance deposit and ^ prepayment 14.279,587,898 11,347,229,149
b) Impairment The accounts receivables are secured by agreement and Bank Guarantee. According to the company, recognition of any Impairment losses was not necessary as they were fully collectible. Subsequent to year end the collectibles were realized duly.
Liquidity risk Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The Company's approach to managing liquidity (cash and cash equivalents) Is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed condition^ incurring unacceptatal^e losses or risking damage to the company's reputation.
Dhaka Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Particulars 2017 2016 Short Term interest bearing loans 6.461.094,960 10.318,061,570 Long Term interest bearing loans 47,026,892.886 42,031.330.761 Accounts Payable and Accruals 28,813,332,946 28,133,095.126 Others Liability/ creditors 8.196,093.31 1 8.587,229,982
2.17 General f Figures in these Notes and the annexed financial statements have been rounded off to the nearest Taka.
2.18 Prior year Adjustments in Statement of financial position and statement of profit or loss and other comprehensive income r Some previous year figures have been restated by rectifying the previous year errors in accordance with Bangladesh Accounting Standard - 8. Summary of the rectifications are given below: i) CAAB bill of previous year not recognized, now rectified (Note - 20.1 & 27.1) _zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA ^t,'< ;, Accounts Payable to DGCA for landing & parking .
Before restatement balance for the year 201 5-16 7,099,168,191 Add: Adjustment (Note: 20.1) 115,001,314 After restatement balance for the year 201 5-16 7,214,169,505
Operating Expense in Landing, Parking & overflying 'r Before restatement balance as on 30 June 2016 3,093,631,025 Add: Adjustment (Note: 27.1) (CAAB) 115,001,314 Add: Adjustment (Note: 27.1) ^ 18,913,855 After restatement balance as on 30 June 2016 3,227,546.194
ii) Landing Parking, Overflying and Navigation bill at foreign station was not booked in previous year, now rectified (Note 20.1 & 27.1) Accounts Payable clearence
Before restatement balance for the year 2015- 16 " 1,592,1 86,233 G Add: Adjustment (Note: 20.1) (Landing Parking and Overflying) 18,913,855 Add: Adjustment (Note: 20.1) (Override Commission) 38.397,811 r After restatement balance for the year 201 5-16 1,649,497,899
Operating Expense for sales commission
Before restatement balance for the year 201 5-16 1.943,972,866 Less: Adjustment (Note: 27.1) (Override Commission) 38,397,81 1 After restatement balance for the year 201 5-16 1,982.370,677
iv) Receivable from Travel agent wrongly understated debiting exchange loss/ gain account in previous year , now rectified (Note - 9.1 & 28.1) Sundry Debtors- Agent Sales r
Before restatement balance for the year 201 5-16 3,056.227,649 Add: Adjustment (Note: 9.1) 20,763,222 After restatement balance for the year 2015- 16 3.076,990,871
Non- operating revenue 3.-
Before restatement balance for the year 2015- 16 390,326,076 Add: Adjustment (Note: 28.1) (Exchange loss for Travel Agent receivable 20,763,222 Add: Dividend received from Subsidiary (Note 28.1) 33,507,000 Less: Adjustment (Note: 28.1) (Interest receivable)) 13,921,848 After restatement balance for the year 201 5-16 430.674,450 r
14 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
v) Sale of Fixed Assets In previous year but not recognized now rectified (Note - 7, 9.1 & 29.1) Non Current Assets Held for Sale
Before restatement balance for the year 2015- 16 4,800.004 Less: Adjustment (Note: 7) 4,800.000 After restatement balance for the year 201 5-16 4
- Non- operatina expense
Before restatement balance for the year 201 5-16 3,199,874,827 Less: Adjustment (Note: ^9.1) (Bad debts provision write back) 19,085,550 _ > Add: Adjustment (Note: 29.1) (Sale of Fixed Assets held for sale) 480,000 After restatement balance for the year 201 5-16 3,181,269,277
vi) Interest Income on FDR excess shown in previous year, now rectified (Note- 12 & 28.1) Accrued Interest for FDR
1 Before restatement balance for the year 201 5-16 46,310.994 Less: Adjustment (Note: 12) 13,921,848 After restatement balance for the year 201 5-1 6 32.389,146
Non Operating revenue
Before restatement balance for the year 201 5-16 147.824,912 L: Less: Adjustment (Note: 28.1) 13,921,848 After restatement balance for the year 201 5-16 133,903,065 r vii) Passenger handling expense was over charged instead of debiting concern passenger tax account in the previous year, i • I' now rectified (Note- 20.1 & 27.1) Accounts Payable to Terminal tax Kualalampur
Before restatement balance for the year 201 5-1 6 428,268,987 Less: Adjustment (Note: 20.1) 265,161,420 After restatement balance for the year 201 5-16 163,107,567
• ir--f O^eratinq Expense for Aircraft Handlinq r Before restatement balance for the year 201 5-16 1.690,007,846 Less: Adjustment (Note: 27.1) 265,161,420 After restatement balance for the year 201 5-16 1,424,846.426
viii) Tax expense on party bill booked excess In previous year, now rectified (Note- 20.1 & 27.1) n Accounts Payable for Income taxs various parties
Before restatement balance for the year 201 5-16 4,393,025 c Less: Adjustment (Note: 20.1) 2,124,650 , After restatement balance for the year 201 5-16 2,268,374
Operatinq Expense for tax expense
Before restatement balance for the year 201 5-16 292.790.381 Less: Adjustment (Note: 27.1) 2,124,650 After restatement balance for the year 201 5-16 290,665,730
ix) Salary of FY 201 5-16 of Biman's crew was not paid and liability was not created, now provision made (Note- 20.1 & 27.1) L Accounts Payable for Unpaid salaries and waqes
Before restatement balance for the year 201 5-16 270.661.492 r Add: Adjustment (Note: 20.1) 146,207,722 After restatement balance for the year 201 5-16 416,869,214 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Operatinq Expense for salary & allowance
Before restatement balance for the year 201 5-16 2.903,652,868 Add: Adjustment (Note: 27.1) 146,207,722 After restatement balance for the year 201 5-16 3.049,860,590
x) Fuel was uplift but expense was not booked in previous year, now rectified. (Note- 20.1 & 27.1) Accounts Payable for Provision for aircraft fuel & oil uplift
Before restatement balance for the year 201 5-16 269,075.004 Add: Adjustment (Note: ^0.1) 262,645,982 After restatement balance for the year 2015- 16 531,720,986
Operatinq Expense for fuel & oil
Before restatement balance for the year 201 5-16 12,178.532,864 Add: Adjustment (Note: 27.1) 262,645,982 After restatement balance for the year 201 5-16 12,441,178,846
xi) Payment for Passenger tax. which was collected from passenger, was wrongly considered as expense, now rectified as income (Note- 20.1 & 26.1.1) Accounts Pavable for Various Tax & Fee Payable
Before restatement balance for the year 201 5-16 1 55,396,372 Less: Adjustment (Note: 20.1) 64,315,137 After restatement balance for the year 201 5-16 91,081,235
Before restatement balance for the year 201 5-16 148,001,763 Less: Adjustment (Note: 20.1) 131,607.820 After restatement balance for the year 201 5-16 16.393.943
Before restatement balance for the year 2015- 16 644,803,369 Less: Adjustment (Note: 20.1) 639,801,309 After restatement balance for the year 201 5-1 6 5,002,060
Before restatement balance for the year 201 5-16 530,922,788 Less: Adjustment (Note: 20.1) 456,398,507 After restatement balance for the year 201 5-16 74,524,281
Operating revenue
Before restatement balance for the year 201 5-16 721,296.053 Add: Adjustment (Note: 26.1.1) 1.292,122,772 After restatement balance for the year 201 5-16 2,013.418,825
xii) Bad Debts Provision on Advance was over Charged in previous year, now rectified (Note- 1 0.1, 29.1) Bad Debts provision on Advance. Deposits & Prepayment
Before restatement balance for the year 201 5-16 101,484,970 Less: Adjustment (Note: 10.1) 19,085,550 After restatement balance for the year 201 5-16 82,399,420
Before restatement balance for the year 201 5-16 80.383,142 Less: Adjustment (Note: 29.1) 19,085,550 After restatement balance for the year 201 5-16 61.297,592
xiii) Pension provision in the financial year 2016-1 7 (Note- 1 8.2 & 27.1) Deferred Liabilities for pension
Before restatement balance for the year 201 5-16 3,393,620,734 Add: extra provision for pension(Note: 1 8.2) 1,230,000,000 After restate«mnt balance for the year 201 5-16 4,623,620,734 r Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Operatinq Expense for pension expense
Before restatement balance for the year 2015- 16 663.952.348 Add: Adjustment (Note: 27.1) 1.230,000.000 After restatement balance for the year 201 5-16 1,893.952,348
xiv) Gratuity provision in the financial year 201 5-16 (Note- 18.1 &27.1) Deferred Liabilities for gratuitv
Before restatement balance for the year 201 5-16 443,766,919 Add: extra provision of c|ratuity(Note: 18.1) 200.000,000 After restatement balance for the year 201 5-16 643.766,919
Operatinq Expense gratuity expense
Before restatement balance for the year 201 5-16 516.611,619 Add: Adjustment (Note: 27.1) 200,000,000 After restatement balance for the year 201 5-16 716,611,619
xv) Excess provision for WPPF in prior year was writen back c Provision for Workers' profit participation fund Before restatement balance for the year 201 5-16 140,550.751 Less: extra provision adjusted(Note: 23) 28.314,522 0 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBAAfter restatement balance for the year 201 5-16 1 12,236.229
Expense for Workers' profit participation fund '.^ r Before restatement balance for the year 201 5-16 80,412.176 Less: extra provision adjusted{Note: 23) 28,314,522 After restatement balance for the year 201 5-16 52,097,654
r r b
17 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount in Taka Particulars Notes 30.06.2017 30.06.2016
3 Property, Plant and Equipment Biman Bangladesh Airlines Annex - H 68.435,305,519 71.798,536,095 Biman Poultry Complex Annex - K 1,225.490,704 1.227.71 1,983 Biman Flight Catering Center Annex - L 21 1,385.182 208.465,028 69.872,181,405 73.234,713.106
3(a) Consolidated Property, Plant'^nd Equipment Biman Bangladesh Airlines Limited 69.872.181,405 73.234.713,106 Sabre Travel Network (Bangladesh) Limited Annex - M 19,047.107 18.944.439 69.891,228,512 73,253,657.545
Aircraft and engine maintenance costs in respect of major overhauls of owned aircraft which are typically carried out at intervals greater than one year are included in the carrying value of Property, Plant and Equipment. Previously it was shown seperetly as 'Deferred Expenditure'.
4 Capital work- in- progress Opening balance 15,975.493 247,710,279 Add: Addition during the year 4.1 630,785,703 30,426,982 646,761,196 278,137,261 Less: Transfer to Property, Plant and Equipment 10.348,768 261,099,811 Less: Disposal of Sun'n Shade 1,061,958 Closing balance 636,412.428 1 5.975,493
• • . * - Addition during the year Induction cost for 2 (two) Boeing 787-8 Aircraft 630,785.703 14.605.137 Construction work- in- progress 1 5.821.845 630.785.703 30.426.982
Capital work in progress includes induction cost related to purchase of new generation aircrafts, under constructions works, architectural design works.
5 Investment in subsidiary Sabre Travel Network (Bangladesh) Limited (At cost) 9.180.000 9.180,000
Sabre Travel (Bangladesh) Limited was formed in 2003 and is incorporated in Bangladesh under the company's act 1994. 51% shares of the company is held by Biman Bangladesh Airlines Ltd at a cost Tk. 9,1 80.000 and remaining 49% by Abacus International Private Limited (Singapore). With the approval from Extra Ordinary meeting of Shareholders, name of subsidiary was changed to Sabre Travel Network from Abacus Bangladesh NMC Ltd.
According to requirment of BFRS 10 Biman Is required to prepare consolidated financial statements. Accordingly accounts of Sabre TraveKBangladesh ) Ltd. has been consolidated.
6 Intangible Assets Biman Bangladesh Airlines Limited Landing Rights 5.072,851.401 5,072,851.401 Computerization Software 6.1 60,619,277 71,830.442 5,133,470.678 5.144,681.843
The company acquired all of it's Landing rights namely route network from the Biman Bangladesh Corporation as on 23.07.2007 and are capitalised at cost of acquisition from Bangladesh Biman Corporation. Landing rights have been accounted at cost as transferred from Bangladesh Biman Corprotation based on valaution conducted by the professional valuer on 22 July 2007. Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount in Taka Particulars Notes 30.06.2017 30.06.2016
Impairment of landing rights:
The landing rights stated above is assessed for impairment annually as the landing rights have indefinite useful life. The recoverable amount of the landing rights has been determined based on value- in- use calculations using five- year cash flow projection. The discounting factor considered atzyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA 1% as equal to the 1 year FDR rate for 1 crore Taka of Banks in Bangladesh. According to calculation, discounted cash flow derived at Tk. 937.58 Crore. On the other hand, the book value of landing rights is Tk. 507.29 Crore. As the book value is much lower than the discounted cash flow of 5 years projections, so the existing value of Landing rights is kept unchanged for the year 2016- 1 7. r 6(a) Consolidated Intangible Assets Biman Bangladesh Airlines Limited 5,133,470,678 5,144,681,843 1: Sabre Travel Network (Bangladesh) Limited 6.2 85,844 112.204 5.133,556,522 5,144794,047
6.1 Computerization Software * Opening Balance 71,830,442 72,277,606 Add: Addition during the period Annex- 1 7,039,151 16,099,973 78.869,593 88.377.579 L Less: Amortization during the year 18,250,316 16,547,1 37 Closing Balance 60,619,277 71.830.442
L; 6.2 Computerization Software Sabre Travel Network (Bangladesh) Limited * -- Opening Balance • • 112,204 4 Add: New Purchase 20.000 122,400 132,204 122,404 Less: Amortization during the year 46.360 10,200 Closing Balance 85.844 112.204
6.3 Goodwill Opening Balance - 483,31 5.937 Add during the period 483,31 5,937 Less: Amortization during the year - 483,31 5,937 Closing Balance --
Biman Bangladesh Airlines Ltd. recognized goodwill amounting to Tk. 483,31 5,937 in 2007. Goodwill was recognized at I > cost based on the Assets transferred by Bangladesh Biman Corporation and as valued on 22.07.2007 Biman has been carrying goodwill in books of accounts without amortization. In similar cases of conversion of Government owned banks, ^ goodwill generated was amortized over the period of 10 years. Furthermore Biman has not been able to conduct the I impairment test for goodwill due to continued losses. In the financial year 201 5-16 Management had decided to writte off goodwill in full to comply with the BAS 38- Intangible Assets and BFRS 1 3- Fair Value Management.
7 Non- current assets held for sale and discontinued operations (Figure of 30.06.2016 restated) * Airframes Annex- J 585,623.044 1 Engine Annex- J 3 585.623.044 4
Sale of Fixed Assets In previous year but not recognized now rectified. « Non Current Assets Held for Sale L. Before restatement balance for the year 201 5-16 4.800.004 Less: Adjustment 4.800,000 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount In Taka Particulars Notes 30.06.2017 30.06.2016
Stores and Spares Biman Bangladesh Airlines Limited 8.1 2,701,089.016 2,364.509,584 Biman Poultry Complex 8.2 15,889.323 18.394.137 Biman Flight Catering Center 8.3 35,558.927 31,271,877 2.752.537.266 2.414.175,598
8.1 Biman Bangladesh Airlines Limited Aircraft spares key- repairabl^ 2,308,519,714 2,1 1 1,275,956 Aircraft spares consumable 1.836,246,658 1.731,841.495 Tools consumable 249.096.574 241.1 53,447 Ground equipment - spares 443.484,901 421,266,837 Consumable stores 500,559,342 495,790.022 5.337.907,189 5,001,327,757 Less: Provision for store obsolescence 2,636,818.173 2.636,818,173 • 2.701,089.016 2.364.509.584
In FY 2015- 16, Stores & Spares for Tk 1,906,267.078 has been provided for. as these spares relate to DC- 10 and Poker Aircraft which is now discontinued from operations. Management is taking neccesary steps to dispose off this Inventory. Actual loss on sale of Inventory will be booked as and when these items are sold.
8.2 Biman Poultry Complex Feed 5.726,769 5,452.881 Medicine and vitamin 271.163 233.622 Vaccine 26,085 62,396 Printing and stationery 619,404 481,540 Live Bird (Chicken) 8,377,468 10.680.480 Store in BPC Sales Center 1.667 166.279 Chick Box & Egg 572.860 1,103,380 Milk 76.960 24,675 Petrol 48,489 56,984 Medicine (Broiler) 138.614 125,765 MT Sales Center 21.604 3.060 Balaka Sales Center 8.240 3.075 1 5,889.323 18.394.137
8.3 Biman Flight Catering Center Raw materials 32,278.129 27.584.938 Cleaning items 2,129,184 2.529,653 Printing and stationary in hand 342,634 261.178 Stock of spares 1.809,580 1,896.709 36.559.527 32,272,477 Less: Provision for store obsolescence 1,000.600 1,000.600 35.558.927 31,271,877
Sundry Debtors Biman Bangladesh Airlines Limited 9.1 3,894,699,985 3,671.534,584 Biman Poultry Complex 72,249.245 68,665.125 Biman Flight Catering Center 2.331.360,023 2,404.400.121 6.298,309.253 • 6,144,599,830 Less: Elimination of intra BBAL transaction Annex - E 2,356.634.063 2.404.723,008 3,941,675.191 3,739.876,822
9(a) Consolidated Sundry Debtors Biman Bangladesh Airlines Limited 3,941,675,191 3,739,876,822 Sabre Travel Network (Bangladesh) Limited 137.337,004 4,079.012,195
20 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount in Taka Particulars Notes 30.06.2017 30.06.2016
9.1 Biman Bangladesh Airlines Limited Credit Sales 496,728,790 345,089,215 Less: Provision 34,508.089 34,508.089 462,220.701 310,581,126 Airlines Receivable 563,998,685 512,715,988 Less: Provision - 563,998,685 512,715.988 Agent Sales Partly secured {Figure of 30.06.2016 restated) 2,626,851.787 3.076.990,871 Less: Provision 296,651,174 296.651.174 2,330,200.613 2,780,339,697 Miscellaneous Receivables I 90.221,780 13,254,633 Less: Provision - - 90,221,780 13.254.633 Other Debtors (Figure of 30.06.2016 restated) 507,128.361 113.713.294 Less: Provision 59,070.1 54 59,070.1 54 448.058.207 54,643,140 3,894.699.985 3.671.534.584
Other Debtors includes Tk. 57,677,385 receivable from Summit Bank at Karachi, Pakistan . For recovery management has filled a court case which is still pending. The amount has been kept in Provision for doubtful debts in FY 201 5-16.
Receivable from Travel agent wrongly understated debiting exchange loss/ gain account in previous year, now rectified
Before restatement balance for the year 201 5-16 3.056,227,649 Add: Adjustment (Note: 9.1) 20.763.222 After restatement balance for the year 201 5-16 3.076,990,871
10 Advances, Deposits and Prepayments Biman Bangladesh Airlines Limited 10.1 14,247.019.359 1 1,293.233.602 Biman Poultry Complex 148,145 143.145 Biman Flight Catering Center 23,212.256 47,300.163 14.270,379,760 11,340,676.910
10(a) Consolidated Advances, deposits and prepayments Biman Bangladesh Airlines Limited 14,270.379.760 11.340,676,910 Sabre Travel Network (Bangladesh) Limited 9,208.138 6,552,239 14.279.587.898 11.347.229.149
10.1 Biman Bangladesh Airlines Limited Advances to Boeing .^i 9,715,512.022 7,896,970.908 Advances to other parties 1.399,534.726 1,686,796,082 Advance to Rajuk for procurement of land at Uttara 4.296,095 4,296,095 Advance to Ministry of Works for procurement of land at Dhanmondl 1.309.351 1,309,351 Advance for Inventory 1,595,325.812 282.526.472 Security Deposits 1.160,953,553 1,021,590.063 Prepayments to employees 3,333,354 4,563.591 Prepaid interest 76,798,199 42,673.873 Prepaid commission 41 1,501,545 51 5,837,746 Prepayments for insurance 13,113,856 11,515,615 14,381,678,513 11.468,079,796 Less: Provision against Advance for Inventory 52.259,734 92,446.774 Less: Provision as doubtful 82.399,420 82,399.420 14.247,019.359 1 1.293.233,602
Advance include Tk. 61,297,592.00 and Tk. 2,016.277 was paid to external parties and employees possibility to recover the same. Therefore, provision has been made for these doubtful amount in the y ended 30 June 2016. 21 r Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount in Taka Particulars Notes 30.06.2017 30.06.2016
L Bad Debts Provision on Advance was over Charged in previous year, now rectified.
Before restatement balance for the year 201 5-16 101,^84,970 r. Less: Adjustment 19,085.550 After restatement balance for the year 201 5-16 82,399,420
11 Advance Income Tax ^ Biman Bangladesh Airlines Limited 187,663,993 1 54,767.963 Biman Poultry Complex (Income Tax on FDR) 32,502,069 29,485,066 r Biman Flight Catering Center Oncome Tax on FDR) 27.879,079 24,525.307 248.045.141 208.778.336 i: Previously the 'Advance Income Tax' was disclosed as 'Tax Deduction at Source'
Biman Bangladesh Airlines Limited 248.045,141 208.778,336 L Sabre Travel Network (Bangladesh) Limited 472,618,866 398,830,049 720.664,007 607.608.385 l:
12 Accrued Interest on FDR Biman Bangladesh Airlines Limited 12.746,763 Biman Poultry Complex 13,117.993 13,453,347 Biman Flight Catering Center 1 5,744,255 18,935.799 41.609,011 32,389.146
Opening balance 32,389,146 45,146.923 Add: Addition during the year 41,609,011 32,389,146 73,998,157 77,536,069 - Less: Encashment during the year 32,389,146 45,146,923 — Closing balance 41,609,011 32,389.146
Accured interest income on FDR excess shown in 201 5-16. Now the balance of accured interest for Biman Bangladesh Airlines Ltd. as at 30 iune 2016, has been restated
Before restatement balance for the year 201 5-16 - 46,310,994 Less: Adjustment 13,921,848 — After restatement balance for the year 201 5-16 32,389,146
1 2(a) Consolidated Accrued Interest on FDR Biman Bangladesh Airlines Limited 41,609,011 32,389,146 Sabre Travel Network (Bangladesh) Limited 1,337.087 1.136,060 42.946.098 33,525.206
1 3 Cash and Cash Equivalent Cash in hand, imprest and credit imprest Biman Bangladesh Airlines Limited 13.3 3.285,844.998 3,076,316,536 Biman Poultry Complex 6,027.115 16.795,619 Biman Flight Catering Center 61,316.783 36,624,541 Fixed Deposits Biman Bangladesh Airlines Limited 638.697,897 612,489,900 Biman Poultry Complex 422.670,474 379,400.608 Biman jy+glT^^Catering Center 539,817,259 474,899,696 4,954.374.526
22 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount In Taka Particulars Notes 30.06.2017 30.06.2016
13(a) Consolidated Cash and cash equivalent Biman Bangladesh Airlines Limited 4.954,374,526 4,596.526,900 Sabre Travel Network (Bangladesh) Limited 174.532.591 173,885,363 5.128.907,117 4,770.412,263
13.1 Cash and cash equivalent Cash imprest accounts 10.072,074 7,796,381 !,zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA .'• Cash at banks: ^ Imprest account 55,823.1 62 506,646.716 Cash Collection account 58,953,214 103,812,076 I Cheque collection account 3.256,756,626 2,542,925,321 3.371,533,002 3,1 53,384,1 14 3,381,605,076 3,161,180,495 13.2 Bank credit imprest balance
a) Local Bank Accounts Sonali Bank, Dilkusha branch 43,885.245 28,792,733 Standard Chartered Bank 1.222,073 Sonali Bank. HSIA 1,767.035 Eastern Bank Ltd 133,802 Agrani Bank, Sylhet branch 204,715 151,770 Sonali Bank, HSIA 472,304 Sonali Bank, Head Office HSIA 357,462 284.459 Sonali Bank, Chittagong branch 839,138 1,448,779 Rupali Bank. Cox's Bazar 5,272 Sonali Bank, Saidpur branch 3,674 Sr Manager Motor Transport 1 19,470 45,882,008 33,805,923
b) Overseas Bank Accounts Sonali Bank, Kolkata 2,923,887 268,069 The Chartered Bank, Singapore 14,645,045 18,991,181 TD Bank. New York 1,217 Finance Manager London 1,644 Bank Balance with BAAS 30.447,977 31.776,897 Rupali Bank, Karachi 20.245 Standard Chartered Bank, Delhi 344 Janata Bank, Dubai 121,089 Standard Chartered Bank, Bangkok 375,258 HSBC, Manchester 761,853 Nabil Bank Ltd, Kathmandu 601.400 49,878,070 51,058,036 95,760,078 84,863,959
1 3.3 Net cash at bank (Note-13.1 - Note-13.2) 3.285.844.998 3.076,316,536
14 Capital
14.1 Authorized capital 150,000,000,000 150,000,000.000 The authorized share capital of the Company is Tk. 150,000,000,000 divided into 1,500,000,000 ordinary shares of Tk. 100 each as per Memorandum and Articles of the Association.
14.2 Issued, subscribed and paid-up Capital of BBAL 20.824,096,400 20.824,096.400
208,240,964 ordinary shares of Tk. 100 each has been issued, subscribed and paid-up in the capital of the Company. 23 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount In Taka Particulars Notes 30.06.2017 30.06.2016
14.3 Issued, subscribed and paid-up Capital of Sabre Travel Network (Bangladesh) Limited 18.000.000 18.000.000 1 5 Equity of Government Government Equity- (Purchase Consideration) As per the vendor's agreement between Government of Bangladesh (GoB) and Biman Bangladesh Airlines Limited (BBAL), the entire undertakings of Bangladesh Biman Corporation (BBC) haS been transferred to the Company under the power vested in it by section 28A(2) of the Bangladesh Biman Corporation Ordinance. 1977 (Ordinance No XIX of 1977). In consideration for the transfer of the entire undertaking of BBC, "The Company shall issue shares for an ^ amount equivalent to the net worth at a fair value of Bangladesh Biman Corporation determined as of the close of business of 22 July 2007 to GoB or its nominees". Accordingly the assets and liabilities of BBC have been revalued by an independent valuer M/S S F Ahmed & Co, Chartered Accountants. As per their revaluation report, net worth is calculated at TK 2.850,706.572/-. The amount of Tk 2,850,706,471 has been transfered to paid up capital during the year 2010-11.
16 Consolidated Retained earnings Opening balance (8.469.267.685) (10,801.895,130) Prior year adjustment for Tax paid on BFCC Employee
salary for the year 2011-12. 2012-13. 2013-14 and 20.914,842 2014-15 charged as Biman's expenditure. Total Comprehensive lncome/(Loss) tor the year (Figure of 30.06.2016 restated) 398.232.171 2,31 1,712,603
Retained earnings transferred (8.071.035.514) (8.469.267.685
16.1 Retained earnings Biman Bangladesh Airines Limited Opening balance (8,575,059.892) (10,896,132,672) Prior year adjustment for Tax paid on BFCC Employee salary for the year 201 1-12, 2012-13, 2013-14 and 20,914.840 2014-15 charged as Biman's expenditure. Total Comprehensive lncome/{Loss) for the year 394.927,706 2,300.157.940 (Figure of 30.06.2016 restated) Retained earnings transferred (8.180.132.186) (8.575.059.8"92)"
Retained earnings of the company include the net result of operational activities of Biman, BPC and BFCC.
Sabre Travel Network (Bangladesh) Limited Opening balance 207,435,696 184,779.494
Total Comprehensive lncome/(Loss) for the year 141.479,343 88,356.202 (135,000,000) (65,700,000) Dividend paid 213.915.039 207.435.696 Retained earnings transferred
1 7 Long Term Loans and Finance Leases Opening balance 51.534.137.780 48,965,1 12,923 Received during the period 10,342.022,098 7,522,604,850 Add: Exchange difference 1,534.707.372 295,993,555 Less: Payment during the period (9,955.755,802) (5,249,573.548) Less: Current portion for the year (6,428.218,563) (9,502,807,019) 47.026.892.886 42.031.330,761 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
„ . . ^, Amount in Taka Particulars Notes 30.06.2017 30.06.2016
Type- wise break- down of the above loans are as follows:
Loan from Government of Bangladesh (1 and 11) 4,813,543.075 4.813.543.075 Finance Lease (Mi and vi) 24,784,774.719 27,385.105.835 Term Loan (iv, v, vii, viii, ix and x) 17,428,575,093 9.832,681.850 47.026.892,886 42,031.330.761
Lender- wise break- down of the above loans are as follows:
(i) Loan from Govt, of Bangladesh. (For 3 DC 1 0-30 Aircraft)** 1,912,543.075 1.912.543.075 1,912,543.075 1,912,543,075
**Biman received foreign currency loan from eight different foreign banks and Sonali Bank, London Branch for purchase of three DC-10-30 aircrafts in 1984. Subsequently the loan has been paid by Bangladesh Bank in favor of Biman as per Government decision; and Bangladesh Bank recovered the amount from the Government. The loan has been transferred to the Government resulting in creating a loan from Government without any written contract. Biman has made an application (Letter ref # DACAZ/Equity/201 7/1 342, dated 05.03.201 7) to the Government to transfer the loan into equity.
(II) Loan from Govt, of Bangladesh for VRS 2.901.000,000 2.901,000.000 2,901,000,000 2,901,000,000
As per Government decision 1 877employees of Bangladesh Biman Corporation were retired under Voluntary Retirement Scheme (VRS). The Government provided the money for settlement of the above employee's retirement benefits amounting to TK 290.10 crore. The first installment amounting to TK. 213.16 crore as 70% of the total retirement benefit was received from Government on 19-07-07 vide GoB letter AMA/ABE/BA-1/0927/7311 (4)/2007/659 and the remaining balance TK. 77.96 crore was received on 18-11-2007 vide GoB letter AMA/BE/BA-1/09277311(4)/2007/1001 as Government loan payable within fifteen years with 5% interest.
(ill) Finance Lease from JP Morgan (For Purchase of 1 st & 2nd B777-30()ER Aircrafts) Opening Balance 12,819,398.370 14,332.001.909 Less: Payment made during the year 1,665,843,386 1,607.568.202 1 1,1 53,554.984 12,724,433,707 Add: Exchange diff. during the year 398,173,360 94,964,663 1 1.551,728,345 12,819,398,370 Less: Current portion for the year 1,743,827,518 1,649,662.267 9,807,900,827 11,169,736,103
(iv) Term Loan from Standard Chartered Bank (For payment of POP loan of EEL for 1 st and 2nd Aircraft) Opening Balance 1,458,996,000 2,414,720.000 Received during the year 1,458,996,000 2,414,720,000 Less: Payment made during the year 985,138,000 969,122,000 473,858.000 1.445,598,000 Add: Exchange diff. during the year 29,106.000 13.398.000 502,964,000 1.458.996.000 Less: Current portion for the year 502,964,000 972.664.000 486,332,000
(V) Term Loan from Standard Chartered Bank (For Purchase of 3rd & 4th B777-300ER Aircrafts) Opening Balance 2,865.885.000 3.880,800.000 Received during the year 2,865.885.000 3.880.800,000 Less: Payment made during the year 1.055.835.000 1.040,325,000 1.810,050.000 2.840,475,000 Add: Exchange diff. during the year 76,065.000 25,410,000 1.886,1 1 5,000 2.865,885,000 Less: Current portion for the year 1.077,780,000 1.042,140,000 r Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount in Taka Particulars Notes 30.06.2017 30.06.2016
(vi) Finance Lease from TD Bank (For purchase of 3rd and 4th B777- OER Aircrafts) Opening Balance 17,893,015.089 19.392,337,755 Received during the year 17,893,01 5,089 19,392.337.755 Less: Payment made during the year 1.702,509,343 1,632,558,347 16,190,505,746 17,759,779.408 Add: Exchange diff. during year 576,682,574 133,235.681 16,767,188,320 17,893,015,089 Less: Current portion for the year 1,790.314,428 1,677,645,356 14,976,873,892 16,215,369.732
(vii) Term Loan from Sonali Bank (UK) Limited For Purchase of 2 B737-800 Aircrafts Opening Balance 4,160,695,396 4,131.710,184 Received during the year 4,160,695,396 4,131,710,184 Less: Payment made during the year 4,221,300,839 - (60,605.443) 4,131,710,184 Add: Exchange diff. during the year 60.605,443 28,985.212 - 4,160,695,396 Less: Current portion for the year - 4,160,695,396 - (viii) Term Loan from Sonali Bank (UK) Limited For Purchase of B787-8 Aircrafts Opening Balance 7,522,604,850 - Received during the year 1,818,572,333 7,522,604,850 9,341,177,183 7,522,604,850 Less: Payment made during the year 9,341,177,183 7,522,604,850 Add: Exchange diff. during the year 290.999,996 - 9,632.177.179 7,522,604,850 r Less: Current portion for the year 9,632,177,179 7,522,604,850 (ix) Term Loan from Sonali Bank Limited For Purchase of B737-8 Aircrafts Opening Balance - Received during the year 5,326.650,000 5,326,650,000 - Less: Payment made during the year 258,81 5,721 5,067,834,279 - Add: Exchange diff. during the year 103,075,000 - 5.170,909,279 - Less: Current portion for the year --^ 1,043,053,194 - 4,127,856,085
(x) Term Loan from TD Bank NA For Purchase of B737-8 Aircrafts Opening Balance Received during the year 3,196.799.766 3,196,799,766 - Less: Payment made during the year 66,313.513 - 3,130,486.253 Add: Exchange diff. during the year 3,130,486,253 - Less: Current portion for the year 270,279,424 - 2,860,206,829
Balance as on 30-06-2016 47,026.892.886 42.031,330.761 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount in Taka Particulars Notes 30.06.2017 30.06.2016
18 Deferred Liabilities Biman Bangladesh Airlines 18.3 5,106,072,146 5,267,387,653 Biman Flight Catering Center 320,683.586 220,236,318 Biman Poultry Complex 19,945.468 21.344,742 5,446,701,200 5,508,968,713
18(a) Consolidated deferred liabilities Biman Bangladesh Airlines Liltiited 5,446.701,200 5.508.968,713 Sabre Travel Network (Bangladesh) Limited 16,844,960 10,893.522 5.463.546.160 5.519.862.235
18.1 Gratuity (Figure of 30.06.2016 restated) Biman Bangladesh Airlines Opening balance 643,766,919 423,752,881 Add: Provision made during the year 35.200,000 234,712,584 678,966,919 658.465.465 Less: Payments made during the year 8,707.614 14,698.546 Closing balance 670,259,305 643,766,919
Provision for gratuity is calculated on the basis of - "last basic X length of service X 2" for general employees under gratuity scheme. For cockpit crew calculation is made "last basic X length of service X 3". Total number of employees under gratuity scheme as on 30 June 201 7 is 622.
Provision for Gratuity made for financial year 201 5-16 in the current year.
Before restatement balance for the year 201 5-16 443,766,919 Add: extra provision of gratuity 200,000,000 After restatement balance for the year 201 5-16 643,766,919
18.2 Pension (Figure of 30.06.2016 restated)
Opening balance 4.623.620,734 2,982,459,673 Add: Provision made during the year 503.290,561 1,906,456,149 5,126,91 1,295 4,888,915,822 Less: Payments made during the year 691.098,453 265.295.088 Closing balance 4,435,812,841 4,623,620.734
Provision for Pension made for financial year 201 5-16 in the current year.
Before restatement balance for the year 201 5-16 3.393.620,734 Add: extra provision for pension 1.230.000.000 After restatement balance for the year 201 5-16 4.623.620,734
18.3 Total Gratuity and Pension of Biman Bangladesh Airlines 5.106.072,146 5.267.387.653
Provision for pension is calculated as per existing.Gover-oment rules. Total number of employees under pension scheme as on 30th June 2017 is 2186.
19 Deferred Tax ^ Opening Balance X|;6£Acct^ (2,061,095,097) (650,363,124) Deferred Tax Expenses/(lncome) during the Year Annex - O 685,062.367 :i,410,731,973) Closing balance (1,376,032,729) (2,061,095.097)
19(a) Consolidated Deferred Tax Biman Bangladesh Airlines Limited (1,376,032,729) (2,061.095,097) Sabre Travel Network (Bangladesh) Limited (8,942,781) (1,647.673) (1.384.975,510) (2.062,742,770) Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount in Taka Particulars Notes 30.06.2017 30.06.2016
19.1 Deferred Tax Sabre Travel Network (Bangladesh) Limited Opening Balance (1,647,673) (4,025,887) Deferred Tax Expenses/(lncome) During the Year (7,295,108) 2,378,214 Closing balance (8.942,781) (1,647.673)
19.2 Deferred tax for the year - Biman Bangladesh Airlines LirViited 685,062,367 (1,410,731,973) Sabre Travel Network (Bangladesh) Limited (7,295,108) 2,378,214 677.767,259 (1,408,353,759)
20 Accounts Payable and Accruals Biman Bangladesh Airlines 20.1 30,923,460,259 30,266,318,928 Biman Flight Catering Center 165,432,262 216,980,247 Biman Poultry Complex 14,466,688 1 1,958.624 31,103,359,209 30,495,257.799 Less: Elimination of intra company transaction Annex - E 2,356,634,063 2.404,723,008 28,746,725,146 28,090,534,791
20(a) Consolidaetd Accounts Payable and Accruals Biman Bangladesh Airlines Limited 28,746,725,146 28,090,534,791 Sabre Travel Network (Bangladesh) Limited 66,607,800 42,560.335 28,813,332,946 28.133.095.126
Accounts Payable and Accruals Biman Bangladesh Airlines Limited Provision & Security Deposits 1 127,770,060 652.1 57,601 Payables & Trade Creditors ii 19,607,702,505 17,616,088,606 Various Tax & Fee Payable Hi . 3,510,1 59,630 4.086.314,847 Payable to CAAB Iv 6,892,193,460 7,370,266,067 Fund & Others V 785,634,604 541,491,807 30.923,460.259 30.266,318,928
i) Provision & Security Deposits: Provision for aircraft fuel & oil uplift (Figure of 30.06.2016 restated) - 531.720,986 Provision for payment of back wages of reinsted corp. employee - 13,017.284 Deposits received from vendors 14.400,742 1,230.699 Sundry deposit-tenders account 75,097.163 68.415,278 Security deposit from travel agent 33.399,827 34,508,354 Security deposit from casual / contractual employees 3,265,000 3.265,000 Advance From Other Airlines 1,607.328 - 127,770,060 652.1 57,601
28 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount In Taka Particulars Notes 30.06.2017 30.06.2016
Ii) Payables & Trade Creditors: Accounts payable to Padma Oil Company Limited** 1 1.526,470,852 1 1,433,656.227 Accounts Payable-vendors control 3.883,130,446 Accounts payable clearance {Figure of June 2016 restated) 4,184 1.649.497.899 Accounts payable for pax meal flight 1,761.434.176 2,336.263.943 Accounts payable foreign bills 2,374.003 1,629.453 Accounts payable Imports 599,475.107 442.049.809 Insurance premium pa^)able 36,702,356 101,371,805 BG sales collection on behalf of KPT 3.452.436 Interest payable on loan from Govt, of Bangladesh 303.887.489 303,887.489 Interest payable on loan for VRS 1,430,210.444 1.285,160,444 Auditors' remuneration payable 1,539.722 . 677,222 Refund Control A/C 188,177 D-14 Clearance - 667,883 Account receivable - DE / COD 44,127 M/S. Qater Jet Fuel Co. Airlines payable 61,573.539 58,441,879 19,607,702,505 17,616,088,606
**Biman has shown liability payable to Padma Oil Company Limited amounting Tk. 1 1,526,470,851 which is agreed by Padma Oil and it also agrees with the invoiced amount. But, Padma Oil Company Ltd. claims an additional amount of Tk. 5,046,718,922 as an interest receivable due to delayed payments. Biman disagreed with the additional claim as there was nothing mentioned in the invoice about the interest on delayed payments. Moreover, Biman has no written agreement with the Padma Oil Company In this regard. Biman has shown this amount as contingent liability. Ill) Various Tax & Fee Payable; Employees Income tax. Foreign Station 1,201.176 Employees Income tax. Bangladesh 1 7,844,738 31,858,531 Terminal tax Kualalampur (Figure of 30.06.2016 restated) 11,087,975 163,107,567 Common Use Pax Processing 2.633.861 U.S Government Tax 2.562.841 2.622.283 Airport development fee -Delhi (Figure of 30.06.2016 restated) 81,471.070 91,081,235 Nepal GOVT, tax 23,407,784 20,377,484 Income taxs various parties (Figure of 30.06.2016 restated) 9,032,884 2,268,374 Excise duty tax on international passenger 405,034.006 412,003,887 Business tax of Thai Govt. 126,938 Tax payable Rangoon 12,816,991 5,005,912 Kuwait airport tax 53,241,969 43,305,650 Security tax Paris 628 VAT collection PAX sale BD 81,245 81,245 UK Travel Tax 2,728,765 4,129,815 Security tax Geneva 72.502 FTT & embarkation fee, Pakistan 621,840 620.576 Brussels airport tax 50 Capital value tax of Pakistan Govt. 2,337.972 2,337,972 Passenger service charge Singapore 19,537,908 18,010,015 Airport departure tax Oman (Figure of 30.06.2016 restated) 27.619,721 16,393,944 Passenger coll of service charge TYO 449,739 442,867 Passenger departure tax HKG 3,083,404 3,084.032 Security Tax MAD SPN 4,446 Airport Service charge Madrid (Spain) 85,286 Income tax various parties FRG station 6,603.083 24,990,435 Foreign air travel tax 602,448,676 722,192,709 Domestic air travel tax 15,096.119 28,795,164 Withheld tax at Karachi 617.327 617,327 Intl. airport departure tax, Saudi Govt. (Figure of 30.06.2016j;estated 21.600,017 5,002,060 Security Surcharge on Cargo BRU. 2,330 Passenger service fee. India 18.701,261 27,401.694 Greece Security Charge 5,805,878 45,818,720 Qatar airport development fee ^ 39,455,1 12 1,226.020 Terminal security fee in Singapore ^Sr^arf 1,090.550 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount In Taka Particulars Notes 30.06.2017 30.06.2016
PAXS service charge{DXB) (Figure of 30.06.2016 restated) 109.015,880 . 74,524.281 PAXS service charge(BKK) 6,200.913 4.609,656 Cargo Security Handling(USA Airlines INC A. ' 3.091 - Airport improvement fee Canada 3,637,237 3.637,237 Insurance Surcharge - • «, Fuel Surcharge - Passenger service fee(BH), Bahrain 1,850,81 1 1,850.811 Tonga sales tax ** 1.944,236 1,944,214 Maldive airport tax 82.510 82.510 Pax movement charge Australia 3.858 3.858 Development charge of IndiazyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA . I- '' 28,627,720 28,627.720 Security charge of karachi 61,061 61.061 Infrastructure development fee Karachi 69,349 . ' • 69.349 Q fee revenue » 13,517.861 • ^- 13,517.861 Tax collection others 18,803.900 6,677.818 Destuffing Charge DEL 97,275 20,226 Attendent Charge for KTM 18.431 10,009 Tax Control for Forward Sales 1,153.747.583 1,244.060.970 Surcharge Control Account 493,087.251 686,462.560 TDS on Agent Commission - 427,231 Cargo handling fee- Kolkata 599,149 586,497 Airport Development Fee, Nepal 4.038,755 5.019,205 Saudi Arabian Security Charge 54,143.350 57.508.858 Advance Passenger Processing User Charge 1,661.873 1,206.418 Swachh Bharat Cess Tax on Service 4,544 3,229 Airport Building Charge Saudi Arabia 126.691.493 287.410.403 Passenger Facilities Charges F6 81,535.238 - Krishi Kalyan Cess India 245.512 60,444 Passenger Facility Charge - G4 14,098,036 - International Arrival & Departure • 2,531.060 Zimbabwe PAX Service Charge ZW 20.980 20,980 Refundable tax amount India 143.617 306.887 3,510,1 59,630 4,086.314,847
Iv) Payable to CAAB: (Figure of 30.06.2016 restated) Payable to DGCA for landing & parking (Figure of 30.06.2016 restated)** 6.820,594.289 7,214,169,505 Embarkation fees domestic stations - 2,893,218 Embarkation fee foreign stations 45.963.334 128.065.071 Security scanning of cargo HSIA 25,635.837 25,138,274
>« - 6,892.193.460 7,370,266,067
**Biman Bangladesh Airlines owes an amount of Tk. 6,892,193.460 to Civil Aviation Authority of Bangladesh (CAAB). This outstanding amount represents arrears over the period from year 2007 onwards. CAAB has imposed Surcharge and others charges on Biman Bangladesh Airlines amounting to Tk. 14,506.170,020. Biman has refused to accept this liability as CAAB has not been able to provide any calculation in favor of their claim regarding imposition of surcharge and other charges. Biman has reconciled the main outstanding amount other than Rajshahi and Chittagong station which totals tk. 1.607.392,258 with CAAB as on 30 June 2017 which has been agreed, however the remaining amount of surcharge and other charges has not been reconciled and hence being treated as disputed. Therefore, Biman has treated this as a contingent liability.
v) Fund & Others: Retired employees clearance 19,202.836 12.806.106 General provident fund 56,043,684 6.956.318 Officers association fund 88,389 36.957 Mukti- Joddah sangsad fund 12.060 8,380 Pilot association fund 209,289 Biman pilots welfare fund 75,513 Insurance claims received for employees 600.000 765,000 ADDL P.F. employee contribution 105,917 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount In Taka Particulars Notes 30.06.2017 30.06.2016
VAT on demurrage charges 6,802,033 . 10,441,914 P. F. employees contribution stations 114,781 133.866 P.F employees contribution, ' 5,845,562 926,954 Mosque contribution 334,840 252,280 Biman secretarial staff association 1.300 - 3,680 Flight Engineers & Navigator's Association 734 Cabin crews association 149,300 192.700 Society of aircraft engineers 213,000 221,000 VAT on Embarkation Fee 65.901,849 33.709,508 Service Charge on Advertisement 510.787 181,197 VAT collection & payment on parties in BD . . 14,294,339 10.335,480 Monthly contribution of BB EU RGD No- 191 7 - 690 President/ CMLA's Relief Fund .'r^ Collection as agent others . 1,096.060 390,050 Officers welfare contribution 1 33,272 71,231 BBEU welfare contribution - 920 Biman employees children scolarship fund 1.212,127 1,212,127 BBSL contribution - 80,480 Current salaries and wages clearance 30.002.196 18,587,940 Unpaid salaries and wages (Figure of 30.06.2016 restated) 485,043.633 416.869,214 1 /3 salary deduction- refundable WDF 02/96 11,640.335 6,361,355 Payable to Employee 52,005,818 - Payable to Service Hired 542,690 Payable to Trainee Employees 57,941 - PAYABLE TO EX- EMPLOYEE 12,440.684 - Payable to Guest Speaker agt their 153,850 Payable against ticket refund 300,332 - Liabilities on behalf of other carrier 1,137,483 1,137,483 P.F company contribution foreign station local 97.565 114.356 TAP Sales Controll A/ C 10,802,567 10,762,095 Contribution staff welfare foreign stations 18,953 1,164,441 Imprest Clearence Account 169,584 Festival Allowance 118,697 - Percentage Tax Receivable - 511.604 Advance received from BSP link PSA 8,714,898 6,696,178 785.634,604 541.491,807
Liabilities booked for CAAB Before restatement balance for the year 201 5-16 7,099,168,191 Add: Adjustment 115,001,314 After restatement balance for the year 201 5-16 7,214,169,505
Liabilities booked Accounts payable clearance Before restatement balance for the year 201 5-16 1,592,186,233 Add: Adjustment (Landing Parking and Overflying) 18,913,855 Add: Adjustment (Override Commission) 38,397,81 1 After restatement balance for the year 201 5-16 1,649.497,899
Liabilities was over charged for Terminal tax Kualalampur Before restatement balance for the year 201 5-16 428,268,987 Less: Adjustment 265,161,420 After restatement balance for the year 201 5-16 163.107,567
Liabilities was over charged for Income taxs various parties Before restatement balance for the year 201 5-1 6 4.393,025 Less: Adjustment 2,124.650 After restatement balance for the year 201 5-16 2,268.374 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount In Taka Particulars Notes 30.06.2017 30.06.2016
Liabilities was Unpaid salaries and wages, now rectified Before restatement balance for the year 201 5-1 6 270,661,492 Less: Adjustment 146,207,722 After restatement balance for the year 201 5-16 416,869.214
Liabilities for aircraft fuel & oil uplift was not booked Before restatement balance for the year 201 5-16 269,075,004 Add: Adjustment 262.645.982 After restatement balance for the year 201 5-16 531,720,986
Liabilities was over charged for Airport development fee - Delhi Before restatement balance for the year 201 5-16 1 55,396,372 Less: Adjustment 64,315,137 After restatement balance for the year 201 5-16 91.081,235
Liabilities was over charged for Airport departure tax Oman Before restatement balance for the year 201 5-16 148,001.763 Less: Adjustment 131.607,820 After restatement balance for the year 201 5-1 6 16,393,943
Liabilities was over charged for Intl. airport departure tax, Saudi Govt. Before restatement balance for the year 201 5-16 644,803,369 Less: Adjustment ^ • 639,801,309 After restatement balance for the year 201 5-16 5,002.060
Liabilities was over charged for PAXS service charge(DXB) Before restatement balance for the year 201 5-16 530.922,788 Less: Adjustment 456,398,507 After restatement balance for the year 201 5-16 74,524,281
21 Unearned Transportation Revenue Opening balance 4,068,881,677 3,021,747.672 Add: Gross Sales (Passenger Sales) 30,806,234,983 35,773,589,809 34,875,1 16.661 38.795.337.481 Less: Transferred to Income (Passenger Revenue) 32,259,870,658 34,726,455,804 Closing balance 2.615,246.003 4.068.881.677
Provision for Deferred Revenue under Frequent Flyer program was created decreasing Unerned Revenue but according to IFRIC 13 that should effect with earned revenue. Thus corrected the comparetive figure according to BAS 8 by increasing unearned transportation revenue and decreasing passenger revenue.
22 Current portion of long term loans and Finance Leases jP Morgan (For Purchase of 1 st & 2nd 777- 300ER Aircrafts) 1.743,827,518 1,649,662,267 SCB (For payment of PDP loan of EBL for 1 st and 2nd Aircrafts) 502,964,000 972,664,000 SCB (For Purchase of 3rd & 4th 777- 300ER Aircrafts) 1.077.780,000 1,042,140,000 TD Bank (For purchase of 3rd and 4th 777- 300ER Aircrafts) 1,790.314,428 1,677,645,356 Sonali Bank Limited (For Purchase of 737- 800ER Aircrafts) 1,043.053.194 TD Bank (For Purchase of 737- 800ER Aircrafts) 270,279,424 Interest on Loan for Purchase of Boeing Aircraft 32,876.397 89,254,550 Sonali Bank (UK) Limited (For Purchase of 737- 800ER Aircrafts) 4,160.695,396 Term Loan from Eastern Bank Ltd 242.000.000 Term Loan from Standard Chartered Bank 242.000.000 Term Loan from The City Bank Ltd 242.000,000 6.461.094.960 10.318,061.570 Syful Shamsul Alam Co. ACNABIN c Chartered Accountants Chartered Accountants Amount in Taka Particulars Notes 30.06.2017 30.06.2016
23 Workers' Profit Participation & Welfare Fund** Opening Balance 1 12.236,229 114,849,383 (Add) Provision during the year (5 % of Net Income) 71,512,862 52.097,654 183,749,091 166,947,037 Adjustment: Previous year Profit from excess income 12,882.270 (Less) Paid during the year 625,634 41,828,538 r 183.123.457 1 12.236,229 — ' ' Before restatement balance for the year 201 5-16 140,550.751 r Less: extra provision adjusted 28,314,522 After restatement balance for the year 201 5-16 1 12,236,229
Before restatement balance for the year 201 5-16 80i412.176 Less: extra provision adjusted 28.314,522 After restatement balance for the year 201 5-1 6 52,097.654
**ln order to meet the requirement of the Labor Act 2006 (as amended), Biman maintained a provision at the rate ofzyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA S% on net profit for the Workers' Profit Participation Fund, but no separate fund in this regard as well as Board of Trustees have yet been created. Hajj bonus was adjusted against this provision and interest was not accrued on the Fund not yet disbursed. Biman has appointed a consultant in the year 2016 -17 for constituting the Fund in line with the Labor Act r 2006 (as amended UD to 201 5).
^ 23(a) Consolidated Workers' Profit Participation & Welfare Fund Biman Bangladesh Airlines Limited 183,123,457 1 12,236,229 Sabre Travel Network (Bangladesh) Limited 23.1 14,115,220 8,683,815 197.238,677 120.920,044
23.1 Workers' Profit Participation & Welfare Fund- Sabre Opening Balance 8,683,815 5,988,965 11,420,223 7,486,022 (Add) Provision during the year (5 % of Net Income) 20,104,038 13.474,987 5.988,818 4.791,172 (Less) Paid during the year 14,115.220 8.683.815
The above provision was maintained according to Labour Act 2006 (As amended) of Chapter XV, Section 234(b).
1. 23.2 Current year provision WPPF Biman Bangladesh Airlines Limited 23 71,512.862 52,097,654 ^ Adjustment: Previous year Profit from excess income 12,882.270 Company provision 71.512,862 39,21 5,384 Sabre Travel Network (Bangladesh) Limited - ^ 23. 1 1 1,420.223 7,486.022 _ Consolidated provision 82.933.085 46,701,406
24 Provision for Current Income Tax** Opening Balance ^ 419,018.905 139,115.612 Add: Provision during the year (Minimum Tax 0.6%) 278,754.309 279,903,293
^\ 697.773,214 419.018.905
**Biman has submitted income tax return for the income year of 2007- 08 u/s 82BB of ITO 1 984 against which NBR did not query. For the income year 2008- 09 Biman is proceeding to file a case to the Honorable High Court Division of Bangladesh against the Tribunal Order (ITA 4473 of 201 6-1 7) of the Tax Appellate Tribunal Division Bench, Dhaka. For the income year 2009- 10, hearing before the Tax Tribunal Division Bench has been completed but the Tribunal Order is yet to be received. For the income years 2010- 11. 2011 -12 and 201 2-1 3 Biman has filed to Tax Tribunal Division Bench against the Appeal Order from Commissioner of Tax (Appeal), but the hearing is yet to be held. For the income year 201 3-14 initial audit by LTU has been completed, but the assessment order is yet to be received. Income Tax returns have be«fle&led to NBR for i.ncome years 2014- 15, 2015- 16 u/s 82BB.
33 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount in Taka Particulars Notes 30.06.2017 30.06.2016
**Biman has to take different services such as maintenance of aircraft, lease of aircraft, interest. Insurance etc., from outside Bangladesh, to continue its regular operation. For this purpose, Biman has to make payments to the foreign parties (non- resident as per tax law) from foreign stations of Biman in foreign currency from the fund generated through ticket sales outside Bangladesh. Biman does not deduct tax at the time of payments to the non- residents as the services are availed outside Bangladesh and such entities do not have any permanent establishment in Bangladesh. ,
24(a) Consolidated Provision for Current Income Tax Biman Bangladesh Airlines Lilnited 697,773,214 419,018,905 Sabre Travel Network (Bangladesh) Limited 24.1 493,626,399 410,826,399 1.191.399.613 829.845.304
24.1 Provision for Taxation- STNBL Sabre Travel Network (Bangladesh) Limited Opening Balance 410.826.399 359,326.399 (Add) Provision during the year 82.800.000 51,500,000 493.626.399 410.826.399
24.2 Provison for taxation Biman Bangladesh Airlines Limited 278,754,309 279.903.293 Sabre Travel Network (Bangladesh) Limited 82.800,000 51,500.000 361,554,309 331,403,293 25 Non - Controlling Interest Number Amount Name of the shareholders Location of shares in Taka
Biman Bangladesh Airlines Limited Bangladesh 91,800 9.180.000 Abacus International Pte Ltd Singapore 88,200 8,820.000 180.000 18.000,000 % of Non - Controling Share of Abacus International 49%
Balance at the beginning of the year 110,463,491 99,361.952 Share of current year profit 69,324,878 43,294,539 Dividend Paid (66.150,000) (32,193,000) 113.638.369 110.463.491
26 Operating Revenue Biman Bangladesh Airlines 26. 1 44,243,21 3,71 1 47,119.586,067 Biman Poultry Complex 26.2 136,878,690 135,073.991 Biman Flight Catering Centre 26. 3 1,1 76,503,506 1,1 54,243,779 45.556.595.907 48,408,903,837 Less: Elimination of intra company transaction Annex - C 988.229,620 984,225.589 44.568.366.286 47.424.678.248
This figure has contra effect on sales and purchase between BBA & BFCC. The same eliminated both sales & purchases (Annexure ~ C) as the transaction has taken place within the company.
26(a) Consolidated Operating revenue
Biman Bangladesh Airlines Limited 44,568.366.286 47,424,678.248
Sabre Travel Network (Bangladesh) Limited 477,318,972 318,324,904 45.045.685.258 47.743.003.1 52 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount In Taka Particulars Notes 30.06.2017 30.06.2016
26.1 Operating Revenue Biman Bangladesh Airlines Passenger (Figure of FY 201 5-1 6 restated)** 32,259,870.658 34,726.455.804 Cargo 2,442,892.382 3,144,289.618 Excess baggage 621,909,540 673,892,509 Mail 1.365,539 1.380.280 Non- Scheduled Transport Service 271,722,980 Others >• 26.1.1 8,645,452,612 8,573,567.856 44.243.213.71 1 47.119.586.067
**Biman started Frequent Flyer Program (FFP) in November 2013. MD & CEO of Biman. approved PPM (Price per mile) at the rate of USD 0.072 as advised by Mr. Bert Ven Der Stege, an analyst and consultant on FFP who has wide experience on international airlines industry. At initial stage of FFP, the PPM rate was fixed considering full utilization of mileage earned by the members of FFP. On Feb- 2017, Biman has appointed an International FFP auditor named ICLP with expertise on FFP and financial audit to perform health check of Biman FFP. They have thoroughly studied and identified that actual utilization of BLC mileage was much lower than the BLC mileage earned. According to ICLP observation and recommendation, Biman has revised the rate of PPM from USD 0.072 to USD 0.0018 considering mileage usage and breakage, time value of money and reduced fare price. Therefore, provision for BLC program was revised by considering new PPM by writing back an excess provision of Tk. 413.286,741 in the year 2016- 1 7. -
26.2 Operating Revenue Biman Poultry Complex Sale of Poultry & Agricultural product 136,878.690 135,073,991 136.878.690 135.073.991
26.3 Operating Revenue Biman Flight Catering Centre Sales to Biman Bangladesh Airlines Limited 898,442.090 898,994.484 Sales to Foreign Airlines 238,319,727 234,785,679 Catering & Bakery Sales 23,647,980 18,983,726 F & B Training Fee 1,573,341 1,262,390 Misc. Training Fee 49,000 217,500 FC Exchange Account 463,396 Other Operating Revenue 14,007,972 1.176.503.506 1.1 54.243.779
26.1.1 Other Operating Revenue Biman Bangladesh Airlines Cancellation Charges (Figure of FY 201 5-16 restated) 891.712,574 2.013.418.826 Handling Service 4.424.086,358 4,887,316,892 Cute & Check in Gene Service 137.090,788 82,600,809 Bar sales (Inflight) 24,346,145 28,271.241 Engineering Service- to other Airlines '*"* . 78,019.368 31.917,146 Royalty from other Airlines 24,839,029 1 52,347 Demurrage charge & other cargo income 459,107.361 402.708,923 Interest earning from employee loan 1,399,894 2,058,210 Income from printing service Cargo handling to other Airlines 1.816,553,979 784,651,295 Earnings from BATC 7,004.880 13,921,762 Gain in proration 19,609,611 48,938,374 Others 761,682,625 277,612.032 8.645.452.612 8.573.567.856
Operating revenue for cancellation charge
Before restatement balance for the year 201 5-16 721.296.053 Add: Adjustment (Note: 26.1.1) 1,292,122.772 After restatement balance for the year 201 5-16 2.013,418,826 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount in Taka Particulars Notes 30.06.2017 30.06.2016
27 Operating Expenses , Biman Bangladesh Airlines 27.1 41.137,204,308 42,627,334,571 Biman Flight Catering Centre 27.2 1.064,505,480 936.901.145 Biman Poultry Complex 27.3 137,110.483 128,972.125 42,338,820,271 43,693,207,841 Less: Elimination of intra company transaction Annex - C 988.229,620 984,225,589 41,350,590,651 42,708,982.252 K
27(a) Consolidated Operating expense Biman Bangladesh Airlines Limited 41.350,590.651 42,708,982.252 Sabre Travel Network (Bangladesh) Limited ; 27.4 263,968,423 181,212,451 41.614,559.074 42,890,194,703
27.1 Operating expenses Biman Bangladesh Airlines Salaries & allowances (Figure of FY 201 5-1 6 restated) 3.629,256,819 3,049.860,590 Staff expenses (Figure of FY 201 5-16 restated) 602.1 13,1 56 716.61 1,619 Meal allowance crew (Overseas) 926.458,771 824.694.096 Crew layover (Overseas) 158.766,048 204.039,992 Pension expenses (Figure of FY 201 5-16 restated) 500.188,727 1,893.952,348 Income tax on salary 126.542,721 147.506,022 Office contingencies 735.777,575 1.775,195.862 General expenses (Figure of FY 201 5-1 6 restated) * • 0* 299.905,1 57 290.665.730 Auditors' fee 862,500 677.222 HR & other consultancy expenses 396,951 5,311.725 Director's honourium 1,200,000 •' 1,200.000 Directors' remuneration 2,656.500 1,557,274 Maintenance & overhaul 3,266,255,643 2.899.373,676 Landing, parking & over flying (Figure of FY 201 5-16 restated) 3.036,286,563 3,227,546,194 Fuel & oil (Figure of FY 201 5-16 restated) 12.057,602,791 12.441.178.846 Material consumed & procurement 912,256,139 469,761.574 1,424.846,426 Aircraft handling (Figure of FY 201 5-16 restated) 1.583.567,917 205.804.077 Selling expenses 259.601,659 2,056,732,773 1,982,370.677 Commission on passenger sales (Figure of FY 201 5-16 restated) 15,294,400 16.767.464 Commission on cargo sales 2,135,504.726 2,1 13.860,655 Computerized reservation charge 2,052,834,520 2,012,830.270 Passenger & crew expenses 12,775,262 Pax. Commission Knock- off A/C 426,081.729 Insurance 594.1 13,250 223,430.076 Employees welfare 155,711.519 22,438,409 Advertising & publicity 35.521.877 3,319,468,952 Depreciation ** - 3.276.323.837 2,772,947.824 Aircraft rental (lease & charter cost) 2.860.051.750 41.137.204.308 42.627,334.571
Operating Expense in Landing. Parking & overflving
Before restatement balance as on 30 June 2016 3.093,631.025 Add: Adjustment (CAAB) 115,001.314 Add: Adjustment 18,913.855 After restatement balance as on 30 June 2016 3,227,546.194
Operating Expense for sales commission
Before restatement balance for the year 201 5-16 1,943,972.866 Less: Adjustment forOverride Commission 38,397,811 After restatement balance for the year 201 5-16 1,982,370.677
36 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount in Taka Particulars Notes 30.06.2017 30.06.2016
Operating Expense for Aircraft Handling
Before restatement balance for the year 201 5-16 1,690.007,846 Less: Adjustment 265,161.420 After restatement balance for the year 201 5-16 1,424,846,426
Operating Expense for tax expense I.
Before restatement balance for the year 201 5-16 292.790,381 Less: Adjustment 2.124.650 After restatement balance for the year 201 5-16 290.665.730
Operating Expense for salary & allowance
Before restatement balance for the year 201 5-16 2,903.652.868 Add: Adjustment 146,207.722 After restatement balance for the year 201 5-16 3.049.860,590
Operating Expense for fuel & oil
Before restatement balance for the year 201 5-1 6 12.178,532.864 Add: Adjustment 262,645.982 After restatement balance for the year 201 5-16 12.441,178,846
Operating Expense for pension
Before restatement balance for the year 201 5-1 6 663.952,348 Add: Adjustment 1.230,000.000 After restatement balance for the year 201 5-16 1,893.952,348
Operating Expense for gratuity
Before restatement balance for the year 201 5-16 516.611,619 Add: Adjustment 200,000.000 After restatement balance for the year 201 5-16 716,611,619
27.2 Operating Expenses Biman Flight Catering Centre Cost of goods sold 950,760,562 837.487.310 Administrative cost 113.629,155 99.351.099 Financial cost 115,763 62,736 1.064.505.480 ^ 936.901.145
27.3 Operating Expenses Biman Poultry Complex Material consumed 81,833.780 79.356.920 Farm overhead 38,904,956 32,883,546 Administrative expenses 16.371,747 16.731,659 137.110.483 128.972.125
— 27.4 Operating expenses Sabre Travel Network (Bangladesh) Limited ^ Cost of Services 183,918.401 133,731.831 General and Administrative Expenses 78.835.058 46.278.365 Marketing Expenses 1,214.964 1.202,255 263.968.423 181.212,451 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount In Taka Particulars Notes 30.06.2017 30.06.2016 c 28 Non- Operating Revenue Biman Bangladesh Airlines 28.1 454,1 16.398 430,674,450 Biman Poultry Complex 31.1 55,528 35,362.671 Biman Flight Catering Centre 38.079,094 58,797,581 —• 523.351.020 524,834.702 -
28(a) Consolidated Non- operating revenue Biman Bangladesh Airlines LirViited 523,351,020 524,834.702 Sabre Travel Network (Bangladesh) Limited 1 5,053,909 12.607.985 538.404.929 537,442.687 Less: Elimination of intra BBAL transaction 68.850,000 33,507.000 469.554.929 503.935.687
28.1 Non- Operating Revenue L Biman Bangladesh Airlines Exchange gain (Net) (Figure of FY 201 5-16 restated) 89,746,342 136,773.538 Gain on sale of Fixed Assets 24,599,671 Bad Debts Provision Write back 40.187,040 Rent collection 76,740,351 1 1 5.893,810 Dividend Income from Subsidiary 68.850,000 33,507,000 Interest Income 152.880,447 133.903.065 Other Non- operating Income * 489.937 9,189.193 Interline Gain *^ • 622.610 1.407.845 454.116,398 430,674.450
Restatement of Non- ooeratinq revenue
Before restatement balance for the year 201 5-16 • 390,326,076 Add: Adjustment for Exchange loss for Travel Agent receivable 20,763,222 Add: Dividend received from Subsidiary 33,507,000 Less: Adjustment for Interest receivable) 13,921,848 After restatement balance for the year 201 5-16 430.674,450
29 Non- operating Expenses Biman Bangladesh Airlines 29.1 1,328,180,967 3,181,269,276 Biman Poultry Complex -J Biman Flight Catering Centre - 1.328.180.967 3.181.269,27- 6
29(a) Consolidated Non- operating expense Biman Bangladesh Airlines Limited 1,328.180,967 3,181.269,276 Sabre Travel Network (Bangladesh) Limited 1.328.180.967 3.181.269.276
^ 29.1 Non- operating expenses Biman Bangladesh Airlines Exchange Loss (Net) 1.328,050,504 451,386,165 Provision created for obsolsence of stock and bad debts 2.119.705,106 FIM Loss 130.463 43,566 Loss on sale/ disposal of Non Current Asset (Fig. 30.06.2016 Restated ) 125,519.782 Loss on sale/ disposal of Non Currernt Asset (Non- r operational assets) 484,614.658 1.328.180.967 3.181.269.276
r Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
^ . . Amount in Taka Particulars Notes 30.06.2017 30.06.2016
Prior year restatment
According to BFRS 5, any amount impaired from carrying amount of held for sale shall be charged to statement of profit or loss. Previously it was charged under Other Comprehensive income and this year restated accordingly. Bad debts provision expense write back because previous year wrongly provision made.
Before restate balance as on 30.06.2016 - . 3.199,874,827 Adjustment . . , 480.000 Less: Adjustment for Bad deb'ts provision write back 19,085,550 After restate balance as on 30.06.2016 . 3,181,269.277
29.2 Provision created for obsolsence of stock and bad debts Bad debt provision for motor cycle and house buiding - 2.016,277 Bad debt provision for advance to external parties - 61,297,592 Provision of Spares and Stores . 1,906,267,078 Provision for items in transit ' * • _ 92,446,774 Bad debt provision for unrealized fund at karachi station 57.677,385 - 2,1 19,705,106 - Bad Debts Provision on Advance was over Charged in previous year
Before restatement balance for the year 201 5-1 6 80,383.142 Less: Adjustment 19,085,550 After restatement balance for the year 201 5-16 61,297,592
Interest Expenses On loan from GoB for VRS 145.050.000 145,050,000 On loan from The City Bank Ltd 11,997.481 6.785,500 On loan from Standard Chartered Bank 6,009,471 12.325.194 On loan from Eastern Bank Ltd 12,137,763 6,705,417 On loan from jP Morgan 149,855,167 98,848,041 On PDP loan from SCB (for 1 st & 2nd aircrafts) 62.806,334 123,770,276 On Junior loan from SCB (for 3rd & 4th aircrafts) 192.650.730 225,928,786 On PDP loan from Sonali Bank (UK) 737- 800) 1 55,61 1,855 75,122,003 On senior loan from TD Bank 193,506,638 1 56,181,562 On senior loan from Sonali Bank Limited 53.063,004 - 982,688,443 850.716.779
Investment in project at cost (Fund Account) Investment revaluation Surplus - BFCC 184.444.136 184,444,136 Investment revaluation Surplus - BPC 1,434,141.400 1,434,141,400
-1« • 1.618.585.536 1.618,585,536
Project current account Biman Poultry Complex 19,215,191 17,201,681 Biman Flight Catering Centre ^ 232.061.795 431,186,965 251,276.986 448.388.646 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount in Taka Particulars Notes 30.06.2017 30.06.2016
L 33 Prior year adjustment in Statement of Profit or Loss and Other Comprehensive Income Biman Bangladesh Airlines Limited Provision for Deferred Revenue under Frequent Flyer program was created decreasing Unerned Revenue but (257,645.408) r. that should effect with earned revenue in previous - year. Now rectified. (Note - 21 & 26.1) CAAB bill of previous year wrongly not recognized, (115,001,314) now rectified (Note - 20.1 & ?7.1) Landing Parking, Overflying and Navigation bill at foreign station was not booked in previous year, now ;• (18,913,855) rectified (Note - 20.1 & 27.1) • •• Receivable from Travel agent wrongly understated debiting exchange loss/ gain account in previous year, now rectified 20,763.222 •.V (Note- 9.1 & 28.1) t Sale of Fixed Assets in previous year but not recognized (480.000) now rectified (Note - 7, 9.1 & 29.1) Interest income on FDR excess shown in previous year, now (13,921,848) rectified (Note- 12 & 28.1) Passenger handling expense was over charged instead of debiting concern passenger tax account in the previous 265,161,420 - year, now rectified (Note- 20.1 & 27.1) Tax expense on party bill booked excess in previous 2,124,650 year, now rectified (Note- 20.1 & 27.1) - Salary of FY 2015- 16 of Biman's crew was not paid and liability was not created, now provision made (146,207,722) < • — (Note- 20.1 & 27.1) Fuel was uplift but expense was not booked in (262.645,982) previous year, now rectified. (Note- 20.1 & 27.1) Expense for override commission of GSA was not booked in previous year, now rectified (Note - 20.1, & (38.397.811) - 27.1) Payment for Passenger tax, which was collected from passenger, was wrongly considered as expense, now 1,292,122,772 - rectified as income (Note- 20.1 & 26.1.1)** Bad Debts Provision on Advance was over Charged in 19,085,550 previous vear, now rectified (Note- 10.1. 29.2) - Pension provision in the financial year 2016- 17 (Note- (1,230,000,000) 18.2 & 27.1) - Gratuity provision in the financial year 201 5-16 (Note- (200,000,000) 18.2 & 27.1)
Excess provision for WPPF in prior year was writen 28.314.522 back (Note- 23)
Adjustment of Tax due to excess calculation in FY 742,649,418 20M-15 (Note - 24)
(397,996.394) 485.004,010
r BFCC Prior year adjustment for Tax paid on Employee salary for the year 2011- 12. 2012- 13. 2013- 14 and 2014- 20.914,840 - 1 5 charged as Biman's expenditure. r^^''" 7rr>
Overtime expense for June 2016 was not charged aszyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA i^^^^^. (6,894,953) - salary expense during the year 201 5-16 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBAi- ^i'I^'^f^' 14.019,887 - (383,976.507) 485,004,010
**Biman collects different types of taxes and levies on behalf of respective airport authorities at the time of selling passenger ticket which are booked as liability as the unearned revenue accounting for tickets. Later on, Biman makes payment to the respective authorities on the basis of invoice through BSP, E 8i F and station remittance. In the current financial year, we obser regarding these dues on account of taxes and levies was overstated during the years 2011 to 2016 due posting of c expenditure rather than adjusting the same against liabilities already booked. Considering the above, Biman has rec Accordingly, an amount of Tk. 1,292,122,772 was written back in the year 2015- 16 as this pertains to prior period an^ for the nirrpnt vpar overstatwi tran';artion in thp vpar 2016- 17. 40 . Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Amount in Taka Particulars Notes 30.06.2017 30.06.2016
34 Contingent Liabilities
a. Biman Bangladesh Airlines owes an amount of Tk. 6,892.193,460 to Civil Aviation Authotiy of Banagladesh (CAAB). This outstanding represents arrears over the period from year 2007 onwards. CAAB has imposed Surcharge and others charges on Biman Bangladesh Airlines amounting to Tk. 14.506,170,020. Biman has refused to accept this liability as CAAB has not been able to provide any calculation in favour of their claim regarding imposition of surcharge and other charges. Biman has partially reconciled the outstanding with CAAB as on 30 June 2017 which has been agreed, however remaining amount of surchage and other charges has not been reconciled and hence being treated as disputed. Therefore Biman has treated this as contingent Liability.
b. Biman has shown liability payable to Padma Oil Company Limited amounting Tk. 1 1,526,470.851 whereas Padma Oil Company Ltd. claims an amount as interest receivable amounting to Tk. 5,046,71 8.922 due to delay payment. Biman disagreed with the additional claim of the Padma oil Ltd . Signed on behalf of the Board of Directors as per decision in its 202nd meeting held on 02 December 201 7 by
Kazi Atique Rahman, PCS Vineet Sood Company Secretary Chief Financial Officer Managing Director & CEO Director \zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA i: » 1 1 1 1 1 .1 \ , » 1 1 1 1 1 >
Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
t
Annexure- A Biman Bangladesh Airlines Limited Statement of Consolidated Profit or Loss and other Comprehensive Income For the year ended June 30. 201 7
Ol- Jul- 16 to Ol- Jul- 16 to Ol- Jul- 15 to Particulars BPC BFCC B8A Elimination STNBL Elimination 30- Jun- 17 30- Jun- 17 30- Jun- 16
Taka Taka Taka Taka Taka Taka Taka Taka Taka Income Operating revenue 136.878.690 1.1 76.503.506 44,243,213,711 988,229,620 44.568,366,286 477.318.972 45.045.685,258 47,743.003.1 52 Non- operating revenue 31,1 55,528 38,079,094 454,1 16,398 523,351,020 1 5.053.909 (68.85(1^00) 469.554,929 503.935,687 Total Income 168,034,218 1.214,582,600 44,697,330,109 988,229,620 45.091,717,307 492,372,881 - 45,515,240,1 88 48.246.938.839
Expenses Operating expense 137,110,483 1.064,505,480 41,137,204.308 988,229,620 41,350,590,651 263,968,423 - 41,614,559,074 42,890.194.703 Non- operating expense 1.328.180,967 1.328,180,967 1,328,180,967 3,181,269,276 Interest Expenses ^ 982,688.443 982,688,443 982,688,443 850,716,779 Total expenses 137,110,483 1,064,505,480 43,448.073.719 988,229,620 43,661,460,062 263,968,423 - 43,925,428,485 46,922,180,758 Net Pront/ (Loss) for the year 30.923,735 150.077,120 1.249.256.390 - 1,430,257.245 228,404,458 _ 1,589,811.703 1,324.758,081
Other Comprehensive Income {Loss)/ Cain due to NCA held for sale ------Total P/ L and OCI -- _ - - Total P/ L and OCI before WPPF provision 30,923.735 150.077,120 1,249,256,390 - 1,430,257,245 228,404.458 - 1.589,81 1,703 1.324.758,081 Workers' Profit Participation & Welfare Fund -- 71,512,862 - 71,512,862 11.420,223 - 82.933,085 46.701.406 Total P/L an OCL before tax 30,923,735 150.077,120 1.1 77,743,527 - 1,358,744,382 216.984.235 - 1,506,878,617 1,278,056,676
Current Tax !ncome/ {Expenses) -- (278,754,309) - (278,754,309) (82,800.000) - (361,554,309) (331,403,293) Deferred Tax lncome/ {Expenses) (685,062,367) (685.062,367) 7,295.108 (677,767,259) 1,408,353,759 Total Tax lncome/ (Expenses) -- (963,816,676) - (963,816,676) (75,504,892) - (1,039,321,568) 1,076.950,466 Total P/ L and OCI for the year after tax 30,923,735 150,077,120 213,926,851 - 394,927,706 141,479,343 467,557,049 2,355,007,142
Accumulated profit/ (losS) brought forward 269,402.584.00 2,193,574,863 (11,038.037.341) - (8,575,059,894) 207,435,696 (8,367,624.198} (10,824,274,827) Dividend paid - - - - - (135,000,000) (68,850.000) (66,150.000) __- Accumulated profit/ {loss) Transferred 300,326,319 2,343,651,983 (10,824.1 10.490) (8,180,132.188) 213,915,039 104,818.369 (8,071.035.518) (8,469.267,685) 1 11 -1 —n 1 11 1 1 1 1 ^ ^ i i ^ Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Annexure- B Biman Bangladesh Airlines Limited Details of Consolidated Total Assets As at June 30, 2017
Particulars BPC BFCC BBA Elimination 30 June 2017 STNBL Elimination Conso Balance 30 June 2016
Taka Taka Taka Taka Taka Taka Taka Taka Taka Norr Current Assets Property, Plant and Equipment 1,225,490.704 21 1,385,182 68,435,305.519 - 69.872,181,405 19.047,107 - 69.891,228,512 73.253,657,545 Capital work in progress -- 636.412,428 - 636,412,428 - - 636.412,428 15,975.493 Investment in BFCC -- 184,444,136 184,444.136 -- 1*— - - - Investment in BPC - - 1,434.141,400 1,434,141.400 -- - - Investment in Shares - - 9,180,000 - 9,180,000 - 9,180.000 - - Intangible Assets , -- 5,133,470.678 - 5,133.470,678 85,844 5.1 33,556,522 5,144,794,047 Deferred Expenditure - 1,225,490,70------4 21 1,385.182 75.832,954,162 1.618,585,536 75.651,244.512 19.132,951 9,180,000 75,661.197,463 78,414,427,086- Non current assets held for sale 585,623,044 - 585,623.044 585,623,044 4 Total Non Current Assets 1.225.490,70--4 21 1,385,182 76,418,577,206 1,61 8,585.536 76.236,867,556 19,132,951-- 9,180.000 76,246.820,507 78,414,427,090
Current Assets Store & Spares 15.889,323 35.558,927 2,701,089,016 2,752,537,266 - 2.752,537,266 2,414.175,598 Sundry Debtors 72,249,245 2,331.360,023 3,894,699,985 2.356,634,063' 3,941,675,191 137,337.004 4,079,012,195 3,837,168,562 Advance, Deposit & Prepayment 148,145 23,21 2,256 14.247,019,359 - 14,270.379,760 9,208,138 - 14,279,587,898 11,347,229,149 Advance Income Tax 32,502.069 27,879.079 187.663.993 248,045.141 472,618,866 - 720,664,007 607,608.385 Fixed deposit (FDR) 422,670,474 539,81 7.259 638,697,897 1,601,185.630 159,680,1 18 - 1,760,865,748 1,479,673,194 Accrued interest on FDR 13,117,993 15.744,255 12,746,763 41.609,011 1.337,087 - . 42.946,098 33.525,206 Current Account with BPC -- 19,215,191 19,215,191 -- - -- Current account with BFCC -- 232,061,795 232.061.795 ----- Cash at Bank 6,012,1 15 61,316,783 3,285,844,998 - 3,353,1 73,896 14,797,473 - 3,367.971,369 3,290.669.069 Cash in hand 15,000 -- - 15,000 55,000 - 70,000 70,000 Total Current Assets 562,504,364 3,034,888.582 25,219,038,998 2,607,911.049 26.208,620,895 795,033,686 - 27,003.654,581 23.010,1 19,163 Total Assets 1,788,095,068 3.246.273.764 101,637,616,204 4.226.496.585 102.445.488.451 814.166,637 - 103,250,475,088 101.424,546,253 Note: The Property, Plant and Equipment includes lease hold aircrafts. } \ 1 1 1 } 11 11 1 L 1 L 1 1 1 11 I Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants *-
,1 Annexure -C Biman Bangladesh Airlines Limited Statement of Profit and Loss and Other Comprehensive Income For the year ended 30 June 2017
Ol- Jul- 16 to Ol- Jul- 15 to Particulars BPC BFCC BBA Elimination 30- Jun- 17 30- Jun- 16
Taka Taka Taka Taka Taka Taka
Income Operating revenue 136,878,690 1,176,503.506 44,243.213,711 988.229.620 44.568,366,286 47.424.678,248 Non- operating revenue 31,1 55,528 38.079.094 454,1 16,398 523,351,020 524,834.702 Total Income 168,034,218 1.214,582,600 44.697,330,109 988.229.620 45.091,717,307 47.949.512.950 i Expenses • • , Operating expense 137,1 10.483 1.064.505,480 41.137,204.308 988,229.620 41,350.590.651 42,708,982.252 Non- operating expense 1,328,180.967 1.328.180,967 3,181,269.276 Interest Expenses • 982,688.443 982.688.443 850,716,779 Total expenses 137,1 10,483 1.064.505.480 43,448.073,719 988,229,620 43,661.460.062 46.740.968.307 Net Profit/ (Loss) for the year 30,923,735 1 50.077,120 1.249,256,390 - 1,430,257,245 1,208.544,643
Other Comprehensive Income (Loss)/ gain due to non current assets held for sale Total P/ L and OCI - ---- Total P/L and OCI before WPPF provision 30,923,735 150.077,120 1,249.256.390 - 1,430,257,245 1,208,544,643 Workers' Profit Participation & Welfare Fund -- 71,512.862 71,512,862 39.215,384 Total Comprehensive lncome/ (Loss) before tax 30,923,735 . 150.077.120 1.177.743.527 - 1,358.744,382 1.169.329,260
Current Tax lncome/ (Expenses) - - (278.754,309) - (278,754,309) (279.903,293) Deferred Tax lncome/ (Expenses) (685,062,367) (685,062,367) 1,410,731.973 Total Tax lncome/ (Expenses) -- (963,816,676) (963,816.676) 1.130.828,680 Total P/L and OCI after tax 30.923,735 150.077.120 21 3.926.851 - 394,927.706 2.300.157,940
Accumulated profit/ (loss) brought forward 269,402.584 2.193,574,863 (11.038.037,341) (8,575.059.894) (10.875,217.830) Accumulated profit/ (loss) Transferred 300,326,319 2,343.651.983 (10.824,110,490) - (8,180,132,188) (8,575,059.891) 1 1.:
Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Annexure - D Biman Bangladesh Airlines Limited Details of Total Assets As at June 30, 2017
Particulars BPC BFCC BBA Elimination 30June 2017 30June 2016
Taka Taka Taka Taka Taka Taka
Non Current Assets Property, Plan and Equipment 1,225,490,704 211,385,182 68,435,305,519 - 69.872,181,405 73,234.713,106 Capital worl< in progress -- 636,412,428. 636,412,428 15,975,493 Investment in BFCC - - 184,444,136 184,444,136 -- Investment in BPC j, • . - - 1,434,141,400 1,434,141,400 - Investment in Share - - 9,180,000 - 9,180,000 9,180,000 Intangible Assets / - - 5,133,470.678 - 5,133,470,678 5.144,681,843 Deferred Expenditure ------/ 1.225.490.704 211,385,182 75,832,954,162 1,618,585.536 75,651,244.512 78.404.550.443 / Non current assets held for sale - 585,623.044 - 585,623,044 4 Total Non Current Assets 1,225,490,704 211,385,182 76.418,577.206 1,618.585.536 76,236.867,556 78,404,550.447
Current Assets /
Store & Spares 15,889,323 35,558,927 2,701.089,016 2,752.537.266 2,414,175.598 Sundry Debtors 72,249,245 2,331,360,023 3,894.699.985 2.356,634,063 3,941.675,191 3,739,876,822 Advance, Deposit & Prepayment. 148,145 23,212,256 14,247.019.359 - 14.2/0,379.760 1 1,340,676,910 Tax Deducted at Source 32,502,069 27,879,079 187.663.993 - 248,045,141 208,778,336 Fixed deposit (FDR) 422,670,474 539,81 7,259 638.697.897 1.601,185.630 1,466,790,204 Accrued Interest on FDR 13,117,993 1 5,744,255 12.746,763 41.609.011 32,389,146 Current Account with BPC -- 19.215,191 19.'215,191 -- Current account with BFCC -- 232,061,795 232.061.795 - - Cash at Bank 6.012.115 61,316,783 3.285,844,998 - 3,353,173,896 3.129.721,696 Cash in hand 15.000 --- 15,000 15.000 Total Current Assets 562,604.364 3,034,888,582 25.219,038,998 2,607,911,049 26.208,620,895 22.332,423,712 Total Assets 1,788.095,069 3.246,273,764 101,637,616,203 4,226.496,585 102,445,488,452 100.736,974.159
1 1 1 ! ! } 1 } T ^ 1 1 > 1 1 ^ r^l Syful Shamsul Alam Co. Chartered Accountants
Annexure-E Biman Bangladesh Airlines Limited Elimination statement of Debtors and Creditors as at June 30, 201 7
Particulars BPC BFCC BBA Elimination 30 June 2017
Taica Taka Taka Taka Taka
BPC Sundry Debtor:
Receivable from BFCC 72,176,185 72,176,185 Receivable from outside parties 73.060 73.060 BFCC Sundry Debtors
Receivable from Biman 2,284,457,878 - 2,284,457,878 Receivable from outside parties 46.902,145 46,902.145 BBA Sundry Debtor 3,894,699,985 3,894,699,985 Total Sundry Debtors 72.249.245 2,331.360.023 3,894.699,985 2,356.634.063 3,941.675,191
Sundry Creditors: BPC
Liabilities for goods supplied 6,436,546 6.436,546 Advance against sales 550,927 550,927 Liabilities for other finance 7,479,215 7,479,215 BFCC:
Creditor for goods & service
A Foreign Supplier 912,199 912,199 B. Local Supplies
Payable to BPC 72,176,185 72,176.185 Other 34,379,198 34,379.198 C. Local agents commission 698,970 698.970 Accounts payables & accruals 44,726,331 44.726.331 Creditors for other finance 12,539,379 12,539,379 BBA
Accounts Payable to pax meal Flight 2,284,457.878 2.284,457,878 Others 28,639,002,378 28,639.002,378 Total sundry creditors 14.466,688 165.432.262 30,923.460,255 2,356.634,063 28.746.725,142 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Annexure-F Biman Bangladesh Airlines Limited Details of Consolidated Equities & Liabilities As at 30 June 2017
Conso Balance 30- Particulars BPC BFCC BBA Elimination 30-Jun-17 STNBL Elimination 30-Jun-16 Jun-17
Taka Taka Taka Taka Taka Taka Taka Taka Taka Equities Share Capital - 20.824.096,400 - 20.824,096,400 18.000,000 18,000^00 20,824.096.400 20.824,096,400 Biman Capital Account 1,434,141.400 184,444,136 - 1.61 8,585,536 -- -- Equity of Government -- 101 - 101 -- 101 101 Accumulated Profit/(Loss) 300,326,319 2,343,651.983 (10.824.110.490) - (8,180,132,188) 213,915,039 104,818,369 (8.071,035,517) (8,469,267.685) 1,734,467,719 2,528,096,119 9,999,986,011 1,618,585,536 12,643,964.313 231,91 5,039 122,818,369 12,753,060,984 12,354,828,816 Non Controlling Interest - --- - 113,638,369 110.463,491 Total Share holders' equity 1.734,467.719 2,528,096,1 19 9,999,986,011 1,618,585,536 12,643,964.313 231,91 5,039 122.818,369 12,866,699,353 12,465,292,307
Non Current Liabilities; Long Term Loans - - 47,026,892,886 4. 47.026.892,886 - - 47,026,892,886 42,031,330,761 Deferred Liabilities 19,945,468 320,683.586 5,106.072.146 - 5,446,701.200 16,844,960 - 5,463,546,160 5.519,862,235 Deferred Tax liabifities/(Assets) -- (1,376,032,729) - (1,376,032,729) (8,942,781) - (1,384,975,510) (2,062,742,770) Total 19,945,468 320,683,586 50.756.932,303 - 51,097,561,357 7,902,179 - 51.105,463.536 45,488,450,226
Current liabilities Accounts payable & accruals 14,466.690 165.432.265 30,923,460,254 2,356,634,063 28,746,725.146 66,607,800 - 28,813,332,946 28,1 33,095,126 Un-earned transportation revenue -- 2,615,246,003 - 2,615.246.003 -- 2,615,246,003 4,068,881,677 Short term loans -- 6,461,094,960 - 6,461.094,960 - 6,461.094,960 10,318,061,570 Current account with Biman 19.215,191 232.061.795 - 251.276.986 - - - -- WPPF - - 183,123.457- - 183.123,457 14,115,220 - 197,238,677 120,920,044 Provision for Taxation -- 697,773,214 - 697,773,214 493,626,399 - 1,191,399,613 829,845,304 33.681.881 397,494,060 40,880.697,888 2,607,911,049 38,703,962,780 574,349.419 - 39,278.31 2,1 99 43,470,803,722 Total Equities & Liabilities 1,788,095,068 3,246,273.764 101,637,616,204 4,226,496,585 02,445,488,451 814,166,637 103,250,475,089 101,424,546,254 Syful Shamsul Alam Co. ACNABIN Chartered Accountants Chartered Accountants
Annexure-G Biman Bangladesh Airlines Limited Details of Equities & Liabilities As at 30 June 2017
Particulars BPC BFCC BBA Elimination 30-Jun-17 30-Jun-16