Contents
BTCL’s Vision/ Mission/ Objective
Company Profile/ Historical Background
Organogram: BTCL/ BTTB
Managing Directors (2013-14)
Nationwide Telecommunication Backbone: Map of Optical Fiber Network
Directors’ Report
Background, Objective, Board of Directors, Meetings, Management & Manpower, Licenses as Operator, Services, technical Data, Transmission backbone, IP & Data Network, Projects, Other Development Works, Income Statement, Directors, Auditors, Conclusion.
Financial Statement (2013-14), audited by Hoda Vasi Chowdhury & Co, Chartered Accountants
Responsibility of Management & Auditors, Qualified opinion, Matters affecting net loss/ account balance, Statements of Financial Position, Comprehensive Income, Changes in Equity, Cash Flows, Notes of Financial Statements, Notes to the Financial Statement, Introduction & Objective, Accounting Policies, Property-Plant & Equipment, Capital Work, Stores, Receivables, Advances, Cash, Security Deposit, Payables, VAT & Taxes, Expenses, Share, Equity, Loans, Employees, Assets, Revenue, Cost of Services, BTRC Fees, Administrative Expenses, Maintenance, Non-Operative Income, Number of Employees.
Photo Gallery
Telecom History in the Region
Our Vision
Our vision is to turn BTCL into a vibrant dynamic organization and lead the country’s telecommunication sector by establishing a sound and cost-effective infrastructure.
Our Mission
We strive to provide telecommunication services to the nation with the state-of-the-art technology at an affordable cost without compromising the quality. To deliver customers with enhanced values, the following steps are being implemented:
• Improve quality of customer services; • Meet the demand for telephone connections and develop proper infrastructure; • Increase institutional efficiency; • Adopt marketing principles and practices; • Employ modern network planning; • Augment revenue management.
Our Objective
• To engage in the business of telecommunications by way of acquiring operation, management, improvement, installation and sales of both local and long distance telecommunication services; • To undertake programs pertaining to the creation and operation of other services like data network delivery. • To provide subscribers easy access to an effective intra-national and international telecommunication network. • To carry-on activities as stated in the memorandum of association, etc.
BTCL Managing Directors during 2013-14
SOM Kalim Ullah
ID: 2007 Born: 15 jan 1954 Dist: Laxmipur Joined as ADE: 15 sep 1981 MD: 14 jan 2013 - 13 jan 2014
Nadir Shah Quereshi
ID: 2009 Born: 01 apr 1955 Dist: Chittagong Joined as ADE: 16 jul 1979 MD: 13 jan 2014 to 30 mar 2014
Mahfuz Uddin Ahmed
ID: 2006 Born: 13 jul 1956 Dist: Jessore Joined as ADE: 16 jul 1979 MD: 31 mar 2014 to 28 jun 2014
Md Shah Newaj
ID: 2015 Born: 12 dec 1956 Dist: Patuakhali Joined as ADE: 03/09/1981 MD: 29 jun 2014 to 23 nov 2014
Bangladesh Telecommunications Company Limited (BTCL)
DIRECTORS’ REPORT 2013-2014
December 2014 DIRECTORS’ REPORT Under Section 184 of the Companies Act, 1994
Dear Shareholders
The Directors are pleased to welcome you to the 6th Annual General Meeting of Bangladesh Telecommunications Company Limited (BTCL) (the “Company”) and present herewith the audited Balance Sheet as on 30 June 2014 and the Income Statement along with the Cash Flow Statement for the period of 01 July 2013 to 30 June 2014 (the “Accounts”).
2. Background of the Company
The Telegraph branch under the Posts and Telegraph Department was created in 1853 in the then British India and was regulated afterward under the Telegraph Act of 1885. Pakistan Telegraph and Telephone Department was created in 1962. After the independence of the People’s Republic of Bangladesh in 1971, Bangladesh Telegraph and Telephone Department was set up under the Ministry of Posts and Telecommunications. This was converted into a corporate body named ‘Telegraph and Telephone Board’ by promulgation of Telegraph and Telephone Board Ordinance, 1975. In Pursuance of Ordinance No. XII of 1979, promulgated on 24th February 1979, Telegraph and Telephone Board was converted to “Bangladesh Telegraph and Telephone Board (BTTB)” as a Government Board. In pursuance of “Bangladesh Telegraph and Telephone Board (Amendment) ordinance, 2008” dated 01 June, 2008, (Later on Bangladesh Telegraph and Telephone Board (Amendment) Act 2009) a company namely “Bangladesh Telecommunications Company Limited (BTCL)” was incorporated and registered in Bangladesh under the Companies Act, 1994 as a public limited company having its registered head office situated at 37/E, Eskaton Garden, Dhaka. The entire undertaking (As per Sec 5A of said ordinance) of the BTTB was transferred to BTCL through a Deed of Agreement between Ministry of Post Telecommunications and BTCL signed on 30 June, 2008. From 01 July 2008, BTCL started its journey.
3. Objective of forming the company i. To engage in the business of telecommunications by way of acquiring operation, management, improvements, installations, sales and re-sales of both local and long distance telecommunication services and to promote the development of telecommunications and related services in Bangladesh including the application of new technologies within the telecommunications field. ii. To undertake programs pertaining to the creation and operation of other services including data network delivery and other newly invented telephone services throughout Bangladesh while enabling commercial subscribers to resell telephone services to their customers. iii. To provide subscribers easy access to an effective intra-national and international telecommunication network and to develop network to meet the telecommunication needs of the whole nation and to improve and provide connectivity access to national and global network. iv. To carry on activities as stated in the Memorandum of Association etc. 4. Board of Directors (up to date):
Name of Directors Designation Remark Sl 1 Mr. Md Faizur Rahman Secretary Chowdhury Posts & Telecommunications Division, Director & Ministry of Posts, Telecommunications Chairman & Information Technology, Bangladesh Secretariat, Dhaka. 2 Mr. Jalal Ahmed Additional Secretary Director Finance Division, Ministry of Finance Bangladesh Secretariat, Dhaka. 3 Mr. Md. Feroz Salah Uddin Additional Secretary Director Posts & Telecommunications Division, Ministry of Posts, Telecommunications & Information Technology, Bangladesh Secretariat, Dhaka. 4 Mr. A S M Mahbubul Alam Additional Secretary Director Ministry of Information Bangladesh Secretariat, Dhaka. 5 Brig. Gen. Rashedul Mannan, lsc, Director, FSIB, DGFI, Director Dhaka Cantonment. 6 Dr. Satya Prasad Majumder Professor, Dept. of EEE, BUET Director 7 Mr. Md. Syful Islam, FCA Former President Director ICAB, Karwanbazar, Dhaka. 8 Mrs. Monowara Hakim Ali 1st Vice-President, FBCCI, Dhaka Director 9 Mr. Mahfuz Uddin Ahmad Managing Director, BTCL Director
5. Board Meetings. 10 (Ten) Board meetings were held during 2013-2014, where about 100 agenda on different issues were discussed by the Board of Directors and necessary directives were given by the Board to run the company smoothly. Also the 5th AGM of the Shareholders of the Company was held on 27 December, 2013.
6. Management & Manpower BTCL inherited an Organogram along with human resources from erstwhile BTTB and still its operation is carried on according to erstwhile BTTB Organogram with the existing 7,811 BTTB employees. In addition to this there are approximately 2800 Work Charged and 1857 Casual employees taken over from BTTB.
However BTCL Board of Directors has approved its Company Organogram, which is ready for implementation. Total 8703 posts are created in the approved Organogram. Transition from the erstwhile BTTB Organogram to the newly created BTCL Organogram is still waiting due to some unavoidable reasons. Government has taken initiative to form a department in the name ‘Department of Telecommunications (DOT)’ to accommodate the employees of erstwhile BTTB and in that case BTCL will be able to run according to its own Organogram and Service Rules.
7. Licenses as Operator i. PSTN license. ii. International Gateway (IGW) service operator license. iii. Interconnection Exchange (ICX) service operator license. iv. International Internet Gateway (IIG) service operator license. v. Internet Service Provider (ISP) license. vi. ITC (International Terrestrial Cable) license vii. NTTN (National Telecommunications Transmission Network) license viii. BTRC has awarded BTCL the Wireless Broadband Access license and BTCL has planned to get the LTE (Long Term Evolution) license in this regard.
8. Telecommunication services provided by BTCL
8.1. Services Provided by BTCL . Landline phone services throughout the country (PSTN-Local, NWD, ISD) Copper line based Optical Fiber based GPON Virtual Number . Value added services in land phones: Call Barring Abbreviated Dial Conference Call C all Waiting Wake Up Call Subscriber Absence Message Don’t Disturb Message Call Forwarding Hot Line . RED Telephone service . Internet Services: a) Dial up Service (56 kbps) b) ADSL (256 kbps to 1.5 Mbps) c) GPON (1,2 and 4 Mbps) d) Leased Internet (64 kbps, 1 Mbps & Multiple) e) MPLS and ADSL VPN f) IP Address Point to Point and Point to Multi-point Voice Grade local leased Line . Digital Data Node (DDN) services (n x 64kbps, E1 etc ) . International Private Leased Circuit (IPLC) – Voice or Data (nx64 kbps, E1, E3, STM1, STM4) . .bd Domain Name Registration . Web Hosting and DNS hosting . Inter Operator Connectivity (E1,E3, STM1, STM4) . Co-location Services (With Other Operators) . International Bi-lateral Voice Carrier . www.btcl.gov.bd provides Telephone and ADSL Bill check and print. . Web based form to submit complain . Interactive discussion blog.
8.2. BTCL at a Glance (Technical data as on 30 June 2014):
Item 30 June 2014 30 June 2013 Total telephone Exchanges 718 (at 595 places) 718
Telephone Capacity 14.7 lac 14.7 lac Telephone Subscribers 8.5 Lac 9.00 lac Districts under Telephone service 64 64
Upazillas under Telephone service 481 478 ADSL Internet connection capacity 89,000 47,000 ADSL Internet Subscriber 15,440 13,000 Districts under ADSL Internet service 46 45 Dial-up Internet facility All BTCL Telephones All BTCL Telephones Interconnection Exchanges 05 (at Dhaka, Chittagong, Sylhet, Bogra and Khulna) Satellite Earth Stations 2 at Mohakhali and 1 2 at Mohakhali and 1 at Betbunia at Betbunia Bandwidth under use through Optical fiber i) Voice - 5 Gbps, ii) i) Voice - 5 Gbps, ii) Data – 8 Gbps Data – 8 Gbps Bandwidth under use through Satellite i) Voice 36.5 x2 Mbps i) Voice 36.5 x2 Mbps duplex duplex ii) Internet–down 28 ii) Internet–down 28 Mbps & up 8 Mbps Mbps & up 8 Mbps International Telephone call traffic (2013-14) i) Incoming 144.97 crore minutes ii) Outgoing 3.08 crore minutes Internal Telephone call traffic (2013-14) i) BTCL-BTCL 98.69 crore minutes ii)BTCL-Cellphone 241.31crore minutes
8.3 Transmission System of BTCL in Bangladesh: i) Transmission Network for Nation Wide Communication. In order to connect nation wide digital exchanges and data nodes BTCL has a strong nation wide transmission network up to Upazilla level and in some cases the network is extended up to Union Parishad level. This Nation wide transmission network of BTCL is mainly composed of Optical Fiber and radio links. The transmission backbone connecting the district head quarters is mostly Optical Fiber based; few district head quarters (8 nos.) are still connected to the transmission backbone through radio links. Most of the Upazila head quarters are presently connected to the respective district head quarters through radio links. Only 70 Upazila head quarters (other than sadar upazila) are connected through Optical fiber. BTCL is also providing backhaul connectivity for the only submarine landing station of Bangladesh at Cox’s Bazar through a high capacity redundant optic fiber transmission link between Dhaka (Moghbazar station of BTCL) and Cox’s Bazar. The redundancy of the link has been provisioned through Optical Fiber of the Power Grid Company of Bangladesh. At present the length of the optical fiber cable in BTCL’s transmission network is more than 4,500 kilo meter. Recently BTCL has taken several projects through which seven out of the rest eight districts head quarters will come under Optical Fiber Cable network, also 290 Upazila and 1000 Union Parishad will be connected with optical fiber through these projects. ii) IP and Data Network
BTCL has a strong IP based data network through which all the district head quarters have been brought under the IP Cloud of BTCL. Now BTCL can provide Internet bandwidth from its IP PoPs (Point of Presence) located at all the district head quarters. BTCL is also providing point to point and point to multi point MPLS VPN services at all the district HQs through its IP Cloud. BTCL is providing retail broad band Internet services (128 kbps to 1 Mbps) to its customers through its legacy copper network using ADSL technology in almost all the district head quarters. For customers using higher bandwidth ( 2 Mbps or more), connectivity is provided directly from the BTCL IP PoP nearest to the customer using optic fiber cable.
9. Telecommunications Projects of BTCL during 2013-14 Fiscal Year
9.1 Projects Financed by BTCL i. The project “Replacement of Old Digital Telephone System of Dhaka (171 KL)” at a cost of TK 248.06 crore has been completed. Under the scope of the project 1,00,000 lines old digital telephones in Dhaka city has been replaced and further 1,39,000 lines has been added to the existing capacity. As a result, in addition to high quality voice service, telephone subscribers in Dhaka metropolitan city will be able to enjoy high speed data facilities. Furthermore, 40,000 ADSL lines and 450 km OFC has been installed under this project. ii. “Project for compliance of ILDTS Policy 2007” project at the cost of TK 107.44 crore has been completed. Installation of IIG, ICX, and IGW to facilitate domestic and international telephone traffic and up gradation of the existing Billing System has been done under this project. ICX in 04 districts including Dhaka, IIG and DPI in Dhaka and Chittagong, Central Billing System and Computerized Accounting System have been installed.
9.2 Projects Financed by GoB i. The project “Optical Fiber Cable (OFC) Network Development in 1000 Union Parishads” at the cost of Tk 718.97 crore is being implemented by BTCL. The said project started in January 2012 and will be completed by June 2016. Under the scope of the project 11,000 km OFC will be deployed in 1006 unions of 98 upazilas. As a result, people from distant part of the country will be able to connect to the world through Broadband Internet. ii. To connect all upazilas of the country through Optical Fiber cable, a project named “OFC Network Development at Upazila lavel” has been taken by BTCL at a cost of TK 499.28 crore implementable in a time period of 03 years. Under this project, 7830 km OFC will be installed in 290 upazilas (District to Upazila connectivity). After completion of the project people from almost all the upazilas of the country will be able to have modern telecom facilities including high speed Broadband Internet Services. iii. The project “Optical Fiber Cable (OFC) Network Development in 1000 Union Parishads in Durgom (Remote) Areas” at the cost of Tk 1088.82 crore is to be implemented in a time period of 04 years. The project is under process for approval. Under the scope of the project OFC will be deployed in 1002 unions of 128 upazilas under 49 Zilas. Also, Radio Links will be deployed in Remote 12 upazilas under 05 Zilas. As a result, people from distant part and remote areas of the country will be able to have modern telecom facilities including high speed Broadband Internet Services.
9.3 Foreign Aided Projects i. “Telecommunication Network Development” Project at the cost of TK 622.86 crore (including Japan Government aid of TK 509.36 crore) is in implementation stage. The project started in July 2009 and will be completed by June 2015. This project will enable BTCL to provide facilities like ADSL and FTTX after installation of NGN based telecommunication system. Telephone capacity of 2,10,000 lines will be increased and 1,500 km optical fiber cable will be installed under this project. ii. “Installation of Wireless Broadband Network (4G, LTE) for Digital Bangladesh” Project at the cost of TK 956.84 crore (including Korea Government aid of TK 612.15 crore) has been approved. Implementation period of the project is from May 2014 to June 2017. To facilitate high speed Broadband Internet Services throughout the country, BTSs will be installed in various Metropolitan Cities, District Towns, Upazilas. Also, 300 km Optical Fiber will be installed under this project. iii. “Installation of NGN (IMS) based Telecom Network (NTN) for Digital Bangladesh” Project at the cost of TK 1861.15 crore (including Project aid of TK 1453.21 crore) has been approved. Implementation period of the project is from May 2014 to June 2017. For this project, Commercial Agreement has been signed between BTCl and CMEC, China. Under this project, telephone capacity of 7,00,000 lines with latest IMS Platform, Access Network System, Transmission Backbone will be installed. Subscribers will be able to avail the latest telecom facilities like Video on Demand, Video conferencing, etc. Since Loan Agreement with China Government has not been signed yet, implementation process of the project has not been started yet.
10. Other Major development works during the period 2012-13: i. BTCL is implementing a project named "Up-gradation work of Existing (410GM/S) High Capacity SDH Transmission Link between Dhaka-Chittagong-Cox'sbazar to 240 Gbps through both Main Link and Redundant Protection Link Using PGCB Optical Fiber. ii. BTCL is Up-grading the SDH MUX TV Coder and TV Decoder of BTV (Bangladesh Television) in order to build a digital transmission link between Rampura Television centre and different TV relay stations in the country. iii. BTCL is implementing a project for Bangladesh Police named "Supply, Installation, Testing & Commissioning of Network Equipment for Outdoor Cameras, Display Units, and Base- Stations on Turn-Key basis." This project will modernize DMP Control room through fiber optic connectivity with the installation of 10 base stations, 17 display boards & 155 Cameras to monitor traffic, to display necessary information and have the wireless communication system for Bangladesh Police. iv. BTCL has taken initiative for Network & Database Solution of Customer Service, Human Resource and Inventory Management as an automation process of BTCL. v. BTCL is establishing Subscriber's Ledger Management System at Shere Bangla Nagar by procuring new Servers, routers, RDBMS, application software. This project will update the existing ledger management system.
11. Income Statement (for the year ended 30 June 2014)
Particulars 2012-2013 2013-2-014 (Taka) (Taka) Revenue 11,458,429,862 8,439,445,726 Less: Cost of services 8,342,879,172 4,2000,298,148 Administrative 3,191,242,098 3,558,900,752 expenses Repairs and 479,542,020 473,648,213 Maintenance Depreciation 5,473,733,973 5,575,834,827
17,487,397,264 13,808,681,941
Operating (6,028,967,402) (5,369,236,215) Profit/(Loss) Add: Non- operating income 2,036,689,555 1,610,721,124 (3,992,277,848) (3,758,515,091) Less: Bank Charges (7,395,390) (5,743,361) Foreign Exchange 4,119,067,953 (1,241,007) gain/(Loss) Net Profit / (Loss) 119,394,715 (3,765,499,458) Before Tax Less: Provision for (68,000,000) (30,200,000) Income tax Net Profit / (Loss) 51,394,715 (3,795,699,459) After Tax 12. Directors
Pursuant to the provision of Article 121 of the Articles of Association of the Company read in conjunction with those of the Company Act, 1994, 03 (three) Directors shall retire from office in the Annual General Meeting. Being eligible, the retiring Directors may offer themselves for re-election.
13. Auditors
Pursuant to Section 210 of the Companies Act, 1994, the existing Auditors of the Company M/s. Hoda Vasi Chowdhury & Co., Chartered Accountants, will retire at the 6th Annual General Meeting. Being eligible, the same Auditors M/s. Hoda Vasi Chowdhury & Co., Chartered Accountants, expressed their willingness to be re-appointed.
14. Conclusion
The Company realizes its potential to progress and create values for the stakeholders and subscribers by steadily pursuing a coherent strategy. There is clearly further potential for enhanced value creation at our operations and in growth of investment opportunities. We have a strong technical human resource team with dedicated and hard working people looking for new service opportunities and putting them in action.
The Company also acknowledges its responsibilities towards the stakeholders and subscribers by providing quality services thereby adopting the norms of transparent corporate governance.
The Board of Directors of the Company would like to put on record the appreciation of the cooperation and support that were received from the Ministry of Post & Telecommunications, BTRC, Teletalk Bangladesh Ltd, Bangladesh Submarine Cable Co. Ltd, Telephone Shilpa Shangstha Ltd. (TSS), Bangladesh Cable Shilpa Ltd. (BCS), other government organizations and private telecom operators & entities. The Directors also express gratitude to its management and employees of all levels whose dedication and hard work made it possible to elevate the Company to the stage at which it has put its standing today.
For and on behalf of the Board of Directors:
I Hoda Vasi Chowdhury & Co
AUDTTED FINANCIAL STATEMENTS
OF
BAN GLADESH TELECOMMUNICATIONS COMPANY LIMITED
FORTHE YEAR ENDED 30 JUNE 2OI4 Hoda Vasi Chowdhury & Co Chartered Accountants
AUDITORS'REPORT To the Shareholders of Bangladesh Telecommunications Company Limifed
We have ar-rdited the accompar-rying financial statements of Bangladesh Telecommunications C'omparry Lirnited (hereir-rafter ref'erred to as the "Company" or "BTCL") which comprise the staterrcnt of financial position as at 30 Jr"rr-re 2014, and the statement of comprehensive income, statentcnt of charrges in eqr-rity and statement of cash flows for the year then ended, and a summary o1' s i gr-r i fi cant accounti n g po I icies and other exp lanatory i nformatior-r.
Management's Responsibility for the Financial Statements
Managelttent is responsible for the preparation and fair presentation of these financial statements in accordatrce with applicable larvs and Bangladesh Financial Reporting Standards (BFRSs) and I3angladcsh Accourrtit.rg Standards (BAS). This respol'tsibility inclLrdes designing, implementing and tnaintainit-tg internal cotrtrol relevant to tl-re preparation and fair presentation of financial statements lhat are [l'ec frorr r.r.raterial misstaternent, whether due to fiaud anci error, selecting and applying aprpropriate accot-tntirrg policies and making accounting estimates that are reasonable in the c i rc u r.nstances.
Aurlitors' Responsibility
Ortr resporrsibility is to express an independent opinion on these financial statements based on our aLrclit. We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA). Those standards require that we cornply with ethical requirements and plan and perform the audit to obtain rcasonablc assLlrance abor-rt whether the financial statements are free of material misstatement.
Ari a'rclit irrvolves perfbrnring procedures to obtain audit evidence about the amounts and disclosures il; ihe tlnancial stater.nents. The procedures selected depend on the auditor's judgment, includingthe asscsslrcnt of the risl< o1-material misstatement of the financial statements, whether due to fraud or crror. In ntaliing those risl< assessment, the auditor considers internal control relevant to the entity's ltrcDaration and f-air presentatior.r of the flnancial statements in order to design ar-rdit procedure that are appropriate in the circumstances but not for the pllrpose of expressing an opinion on the ellectivcness of the entity's internal control. An ar-rdit also inclr-rdes evaluating the appropriateness of accot-tnting policies ltsed and the reasonableness of accounting estir.nates made by management as u,cli as evaluating the overall financial statements presentation.
We bciicve thal the ar-rcli1. evidences we have obtained are sufficient and appropriate to provide a irrr.rs ltrI orrr qLralifictl opirriorr. \c
National Office : BTMC Bhaban (8th Floor), 7-9 Karwan Bazar Commercial Area, Dhaka- 121 5, Bangladesh Motijheel Office: lspahani Building (3rd Floor), 14-15 Motijheel Commercial Area, Dhaka-1000, Bangladesh Chittagong Office : Delwar Bhaban (4th Floor), 104 Agrabad Commercial Area, Chittagong-4100, Bangladesh Hoda Vasi Chowdhury & Co |t;rsis fbr Qualilied Opinion
Significont mutters uffecting tlte net loss / uccount bolunces: -[he a) accotnparryiug f-inancial statements have been corrsolidated based on the retltrns received tiom l 75 operating units and returns have been accepted by us as certified by the rnanageuret-rt of the Comparry without verif-ication at unit level. However, we have veriflecl the retr-rrn of DDHQ r-rnit, the largest cost and revenue r,rnit of the Company; ir) Wc coirlcl rrot verity revenLle, cost of services and administrative expenses amounting 'l'al<.a 84,1 crore, l'aka 370 crore and Taka 40 crore respectively as we have not been proviclecl invoiccs. agreernents, satisfactory explanation and necessary sLrpporting docuntentsl c) 'l-he guantt-tu of bad debts, if any has neither been worked out nor been accounted for in tire accot'npanying f-inancial staterxents. As a result, profit for the year under review has been overstated to the extent of bad debts. In addition, the Company has calculated provision fbr bad and dor-rbtfr-rl debts at certain percent of receivable balances rather than basecl on zrn organized receivable age analysis. Accordingly, provision for bad and cloLrbtfLi debts appears to be understated;
We cor-rld not verily accrued expenses amourrtir-rg l-aka 1,487 crore as we have not been
prov i ded bleal<-u p. i r.r voi ces, agrec tnents and subseq r-tent statLls ; c) Ncither physical verification nor impairmelrt test was carried out for assets amounting Taka 12..811 crore since 1 JLrly 2008. Moreover, in the absence of fixed assets register, we could luol verily depreciation charged dr-rrirrg the year amounting Taka 557 crore;
'l-i're Company accouuted lbr interest on terrn loans for the whole tenure of the loans at the lime ol valuatiorr at 30 Jr,rne 2008. Accordingly, no interest on term-loans has been charged irr tl-re accornpanying financial statements,
ilowever, tlte munagement could not tluantify the e.ffect o.f tlte ubove signfficant matters on !iit: uperuting /n.ss o./ the Compuny. As u result, we conclude that tlte operuting loss reported ita the $tcotltpu,tying income stutement needs to be udjusted uppropriately.
\Y" Hoda Vasi Chowdhury & Co
{}t f r e r s i g n i fi cunt mutters :
!r, ) I-and ar.nounting l'aka 28,058 crore has been transferred to the Company from Bangladesh 'lelegraph arrd Telephone Board (BTTB) thror-rgh Vendor Agreement br-rt the mutation of the lancl in fhvor of the Company has not been completed yet; h) We coLrld not verity the flxed assets amolrnting Taka 636 crore acqr-rired dr-rring the years 2009 - 20 14 in the absence of Lrpdated f-ixed asset register, agreernents, invoices and other related documents:
Capital-lvork-in-progress fbr Taka 143 crore appearing in the accompanying financial
statemcnts could not be verifled by r-rs satisfactorily as we were not provided the relevant .igreelre nts, contracts, arrd related sr.rpporting documents; j) l{cnewal and reserve firnd Covernrnent represents amollnt receivable from Government o1' Banglaclesh an-ror-rnting Taka 173.4 crore bLrt this arlolrnt has been carried forward tiorr 2008 and remained unchanged and unadjusted since then; ii) Stoi'cs and spares lbr'faka 76 crore inclr-rding the valr-ration thereof could r-rot be satislactorily veritied by us irT the absence of updated schedr:le includirrg obsolete and -['aka clamagecl items. The noted amoLrnt of 76 crore has remained unchanged since long. Further. r'to ycar-cnd verit-ication of stores and spares has been carried oLIt at 30 Jr-rne 201 4.
Accourrts receivable fbr aggregate arnount of Taka 2,182 crore could not be verified satislactorily in tlre absence of party-wise break-up of figures, related ledger accoltnt, aging anzrlysis. subseqnent collection statement and confirmation of balances. Fr-rrther, riccoLrnts receivable includes cLlrrent account balances with diffurent companies.'lhe C'ontpan,v-' has neither worl Aclvanccs ancl prepayr.nents irrcludes Taka 1,233 crore and 19 crore represeltting tnargins oir Letters of Clreclit ancl advance to suppliers respectively could not be verified by us satisfhctorily iu the absence of schedr-rles of the outstanding letters of credit, total comutitrrent. current status and related infbrmation. Further, payable of outstanding letter of credits payable to the contractors arrd sr"rppliers for Taka 867 crore in relation to projects as appearing in note l4 cor,rld not be verif-ied by us in the absence of, relevant scheclulc, sr-rpporting and subsecluent posilion. The noted amount of Taka 867 crore has rcn.rninecl uncirauged since lorrg. In addition, we could not verify advance income tax of i aiia 4.1 crolc paicl cluring thc ycar; $" Hoda Vasi Chowdhury & Co n) We could not verify cash at banks and cash in transit for Taka 29 crore and Taka 65 crore respectively as we could not confirm the figure from schedule, bank statements, bank recor-rciliation statelnents, subsequent status and other related documents made available to Lls: o) The Cornpany has accounted for a part of foreign loans as current portion. On 30 Jr'rne 2014, the balance of foreign loans current portion was Taka 61J crore (on 30 June 2013: 'faka 438 crore) but no payment has been made during the year 2013-2014. We have been provided necessary explanation with this regard; p) We cor-rld not verify security deposit & others amounting Taka 55 crore satisfactorily in the absence of agreements, schedule and related supporting documents. Moreover, we could not verify VAT ar,d duties payable amounting Taka 65 crore in the absence of schedr-rle, invoices, Government treasury challans etc; q) Other lor-rg-term liabilities cornprisiug impaired assets for Taka 4,236 crore and others for Tal Deferrecl tax has neither been calculated nor accounted for in the accompanying financial stater.nents resulting non-compliance of BAS 12; and s) Facls and tigures with respect to contingent assets and liabilities and outstanding courmitrnents, ilany, as of 30 Jr-rne 2014 coLrld not make available to us and as a result, this has remained unverified by r-rs. Qualified Opinion such ir-r our opinion, sr-rbject to the contents of above paragraphs and except for the effects of adjustments as might have been cletermined by the Company, the financial statements, prepared is accordapce with Bapgladesh Financial Reporting Standards (BFRS) and Bangladesh Accor-rr-rting Standards (BAS), give a true and fair view of the state of the Company's affairs as oi j0 June 2014 and of the results of its operations and its cash flows forthe yearthen ended and cop-rply with the Companies Act 1994 and other applicable laws and regulations. \\r" Hoda Vasi Chowdhury & Co We also report that: a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the pr-rrposes of our audit and made due verification thereoi b) 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; c) the Company's statement of financial position ar-rd the statement of comprehensive income along with the annexed notes 1 to 30 dealt with by the report are in agreement with the books of account; and ' d) the expenditure incurred was for the purpose of the Company's business. Dhaka, 3 , 3tC ?fi t Ml|*hkff $,(/ {; Hoda Vasi Banglaclesh relecommunications company Limitetl ChOWdhUfy & CO Statement of Financial Position As at J0 June 2014 2014 2013 Notes Taka Taka Application of Fund ,\ ssets Non Current Assets l)ropert)'. plant ancl eclr.riprnent. net 4 333.t29.928.t24 337.229,913.626 ('apital r.r, orli-iu-progress 5 I .431 .132.816 t.625,094.671 Other Non Current Assets (iorrernr.nent proviclent fLrncl (CPF) - Clontra 6 2.079.26s.889 1,905,222,024 l(rrrrrr lrl illrLl rcict\ \' lirrt.l - Cor cl rtrnent 7 1.734.237.000 1.734.237.000 3,813,502,889 3,639,459,024 Investlreut in shares 8 I 05.004.564 I 05,004,564 {lurrent Assets () StLrres ancl spales 761.521.538 761 .52 I ,53 8 ,,\ccounts receivable l0 2 I ,8 I 9.83 5.95 5 23.426,461,664 r\rlr' lrnces ll l 3.593.306. I 77 13,394.029,t92 ('ash nncl cash ecprivalents l2 t4.t t0.62t.282 13,79t,638.1 l7 50,285,284,952 51,373,650,512 {lurrent Liabilities l.rrll:t I(l Ill lrlilll - !tlrfCIll pr)rliUIl 21.2 6.447,815,690 6.102,539,919 Securitr deposits and others l3 553.412,693 48s,982,933 i'alable to contrllctors ancl suppliers l4 8.673.3 84.009 8.673.3 84.009 Vr\ l' anrl duties pa1'able l5 652.112.799 583.371.314 I iltl\l\r\ci\ crrrtrllrrrrerrl (lc(lICli(rn: t6 t4.631.232 14,142,789 I)rur ision lirl income tzrr t7 r,399,878,555 r,369,678,555 Acclued expenses l8 14.871.290.'.7 50 1 5.253.056. il 4 32,612,525,127 32,482,155,633 Net current assets 11,672,759,225 18,891,494,879 'l oill Assets 356,152,927,617 361,490,966,764 Scurccs ol H'und {)wnors'Fiquity Sharc capitirl l9 r.800 r.800 lrrlLritr lcsor-r'c 20 280.5 I 5.065.849 280,5 I 5,065,849 l{ctairred eanrings 7.987.235.5t6 4.191,536,05 272.527.832.133 276,323,531,592 l\on C-urrent Liabilities i,oans - lor.rg term portion 2t.t 12.592"219,044 1 3,758,602,598 l,ougi-ternr I iirbilitics to cmplovees 22 26.529.413.'773 27.079,413,',773 LiuvcrnrrenL provident lund ({iPF) - contra 6 2.079"265.889 1,905.222,024 ( )ther long-tenr I iabi litics 1-) 42.424.t96.77'7 42.424.196.7'77 83,625.095,483 85,167,4i5,172 c rl:rl i.rguily anrl Liabilities 356,152.921,617 361,490,966,764 I hc accourpanl,ing notcs arc the intc I part ofthese financ EEI ALrditors' report to the shareholders See annexecl report oldale \Ur"(lhartered i)rraka Accountants 3l0rc 2014 \hr iloda Vasi Chowdhury & Co Bangladesh Telecommunications Company Limited Statement of Comprehensive Income For the year ended 30 June 2014 2014 2013 Notes Taka Taka R.evenue 24 8,439,445.725 11,458,429,962 [-ess: Cost of services 25 4,200,298,149 8,342,879,172 Administrative expenses )6 3,558,900,752 3 "191,242,099 Repairs and maintenance 21 413,649,213 479,542,020 Depreciation 4 5,515,834,921 5,473,733,973 I 3,808,68 r ,941 11,481,397,265 {)perating loss (5,369,236,216) (6,028,967,403) Add: Non-operating income 28 1.610.721.124 2,036,689.555 (3,759,515,091) (3,992,277,949) Less: Bar.rk charges (s,143,361) (1,395,390) Foreign exchange gairr/(loss) (1,241,001) 4,119 .061 .953 Net (loss) / profit belbre tax (3,765,499,459) llg,3g4,7l5 Less: Provision for income tax t7 (30,200,000) (69,000,000) l\et (loss) / profit after tax (3,795,699,459) 51,394,715 'fhe accon.rpanying notes are the integral part of these financial statements I- Auditors' repod to the shareholders See annexed report ofdate UJ"!*ff-,bfi Dhaka'3lsEc ?filt us Hoda Vasi Chowdhury & Co Bangladesh Telecommunications Company Limited Statement of Changes in Equity For the year ended 30 June 2014 C.p,t.l Equity Reserve Retained Earnings Particulars iSh"* lruul Taka Taka Brlance as on I July 2010 r,800 280,515,065,849 (43, I 32,082) Foreign exchange loss (675.845,590) Net loss 1br tl're year (3,35 r,868,762) (3,35 t,868,762) Balance as on 30 June 201 I I,800 280,s1s,06s,849 (4,070,846,434) 276,444,221,215 Net loss for the year ( I 72,084,338) ( r 72,084,338) Balance as on 30 June 2012 r,800 280,515,065,849 (4,242,930,772) 276,272,136,877 Net profit tbr the year 51.394.715 51,394,715 i3alance as on 30 June 2013 1,800 280.s 1s.065.849 (4,19t,536,057) 276,323,531,592 Net loss fbr the year (3.79s,699,459) (3,19s.699,4s9) Balrnce as on 30 June 2014 I,800 280,515,06s,849 (7,987,235,516) 212,527,832,133 IITA Hoda Vasi Chowdhury & Co Bangladesh Telecommunications Company Limited Statement of Cash Flows For the year ended 30 June 2014 2014 2013 Talta Taka (lash IIows from operating activities: Net (loss) / profit before tax (3 ,7 6s ,499,4s9) 1 19,394,71s Aci.!ustrnent Ibr non-cash item: [)eplcciation charged during the year 5,5 75,834,827 s,473,733,973 {.*sh from operations 1,810,335,368 5,593,128,688 {ihanges in worhing capital (lncreasc) / decrease in accounts receivable 1 ,606,62s,710 (3,332,434,984) (41 ( l)ecrease) in advances (199,27 6,985) r,326,98s) lncrcasc in security deposits and others 67,429,760 94,889,816 (l)ecrease) in pal,ables to contractors and suppliers (149 ,1 t3 ,996) Increase in VA'l and clulies payable 68,141,485 339,451 ,291 increase in current portion of lolig-ternr loan 345,27 5 ,77 1 582,484,01I Inciease / (decrease) in accrued expellses (3 81,765,365) t,621 ,403,059 lncrease in en'rployees eurolument dedr-rctions 488,443 1,123,739 I ,507,51 8,819 (1,254,1 18,048) 4,339,010,640 Net cush .flows.f rom operoting actittities - A 3,317,854,187 (lash I'lows from investing activities: r\criuisition of plopertl,, plant and equipment (1 ,47 5 ,849,325 ( r,706,943,689) r 62,589,830) I ,rprtlri 11 q,1 11-i11-progt cs: r93,i61,8s6 Nct t'usk.flows.fi'om investing uctivities - B (1,282,487,469) ( I,869,533,519) {.' us I r _fl ov,s .fro m.fin u nc in g a ctit, ities : i)ccrease in long term loan (1,166,383,553) (6,253,683,070) l]ecreasc in long-terlr liabilities to enrployees (s 50,000,000) 900,000,000) (1,716,383,ss3) (7,1 53,683,070) Net cush.flow.from .financing octivities - C l\e{ increase of cash ancl cash equivalents (A+B+C) 318,983,165 (4,684,205,949) ('ash and casl'r ecluivalerrts at the begir.rning of the year t3 ,791 ,638,1 11 18,475,844,066 13.791,638,1 l7 Cash and cash equivalents at the end ofthe year 14,110,621,282 w- Hoda Vasi Chowdhury & Co Bangladesh Telecommunications Company Limited. Notes to the Financial Statements For the year ended 30 June 2014 ! introduction and ob.iective i. t FX-istorical background of BTCL 'l 'l'clegraph he branch under the Posts and Telegraph Departn.rent was created in 1853 in the then British India and was regulated afterwards under the Telegraph Act of 1885. The Telegraph branch was reconstructed h 1962 it'r tl.re then Pakistan as Pakistan Telegraph and Telephone Department. After the inclepenclence of thc People's Republic of Bangladesh in 1971, Bangladesh Telegraph and Telephone I)epartn'rent was set up under the Ministry of Posts and Telecontrrunications to run the Telecornmunications services in Bangladesh. This was converted irrto a corporate body named "Telegraph and Telephone Board" b-v promulgation of Telegraph and Telephone Board Ordinance, 1975. In pursuance of Ordinance No. XII of 1979 promulgated on 24 F'ebruary 1979, Telegraph and Telephone Board was convefted to "Bangladesh 'l'e legraph and Telephone Board" as a Government body. Llnder the Bangladesh Telegrapli and Telephone Board (Amendment) Ordinance, 2008, the Government in public irrlerest, by aereeurent transferrecl the entire undertaking of the Board to a public limited company registered under tlre Cornpanies Act, 1994 namely Bangladesh Telecornmunications Cornpany Limited (8I'Ct-) ficnr I July 2008. The rranagement of the Cornpany is vested in Board of Directors consisting of 9 nr c Itr'ne rs xJnclertaliing of the Board inclr-rdes its offlcers and en.rployees, business, pro.jects, schemes, assets, rights, powcrs, license, authorities and privileges, its properties, movable and immovable, reserve funds, irrvesturents. deposits, borrowirrgs, liabilities and obligations of whatever nature but dose not include those rcitrtcd to the subrnarine cable . ,'\lier the dissolr-rtion of the BT'IB. all of the offlcers and employees rvho were serving under the dissolved iJoarci arc deemed to be clfflcers or. as the case may be, enrployees of the BTCL on such terrns and conditions as nray be deternrined by the BTCL or" until so deternrined, on the same terrns and conditions as were applicable to then'r in the dissolved Board prior to its dissolution. .t Ccrnran consultant firm nan.rely M/s DETECON Grnbh was appointed to value the assets and liabilities of tlT'l'R fbr the conrrersiou purpose. Due to time constraint, the consultant firm had to value the assets and liabilities ancl net worth of BTTB as orr 30 Septernber 2007. Subsequently, the Board of Directors of llangladesh Teleconltlur.rications Company Limited decided to update the value as on 30 June 2008 as all the assets and liabilities of BTTB were transferred to BTCL as on 0l July 2008 through a vendors agreement datcci i0 June 2008 between Governrrent of the People's Republic of Bangladesh (GOB) and BTCL. The repoit of Rahuran Rahnran Huq (RRH) an independent valuer and first balance sheet as on 30 June 2008 cirawn by thcrr fbrn.red the basis for preparation of 2008-2009 financial statements. l.rl Natureoi'business ilanqiaclcsh iclcconrniunications Company Linrited is a public sector teleconrrnunicatior.r service provider in !Sangiaclcsh. 'l-hc Company provides tlre services like Telegraph, Local Telephone Network, Nation wide dialing (NWD), Intcrrrational telephone call facilities, International circuits leasing, lntemational maritime satellite conrn'runication and internet and data services. \$' Hoda Vasi Chowdhury & Co Ilasis of preparation of financial statements Statement of compliance These financial statements have been prepared in accordance with Bangladesh Accounting Standards (BAS), Bangladesh Financial Reporting Standards (BFRS), the Companies Act 1994, and other applicable laws and regulations in Bangladesh. 2.2 llasis of measurement The accounts have been prepared on a going concern basis under historical cost convention. 2"3 F-unctional and presentation currency 'l-he accounts are presented in Bangladesh Taka wliich is both functional currency and presentation currency ofthe company. The figures offinancial statements have been rounded offto the nearest Taka. '!6 (lse of estimates and judgements 'l'he preparation of accounts requires rnanagernent to make judgements, estimates and assumptions that affect the application of accounting policies and the reporled arnounts of assets, liabilities, income and expenses. 'l'he estimales and associated assun.rptiorrs are based on historical experience and various other factors that are believed to be reasonable under the circurnstances, the result of which form the basis of rnaking .iudgernents about the carrying values ofassets and liabilities that are not readily apparent from other sources. Actual results rray differ fiom these estimates. I-lstirnates and underlying assurnptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimate is revised if the revision affects only that year, or in the year ofrevision and future periods ifthe revision affects both current and future periods. Significant accounting policies Accounting policies set out below have been applied consistently in preparation and presentation offinancial statel.lients. 3.i Property, plant and equipment (PPE) Recognition of property, plant and equipment 'l'itesc are oapitalized at cost of acquisition and subsequently stated at cost less accumulated depreciation in corupliance witli the benchmark treatment of BAS l6 "Properly, Plant and Equipment". The cost of acquisition o1'an assel courprises its purchase price and any directly attributable cost of bringing the asset to its operating corrdition fbr its intended use inclusive of inward freight, duties and non-refundable taxes. Hoda Vasi Chowdhury & Co Depreciation of Property, plant and equipment Depreciation on items of property, plant and equipment is provided on a straight-line basis over the cstimated Lrseful lives of eacl.r item of property, plant and equiprnent. For addition to property, plant and cquiprrient, depreciatiorr is charged lronr the date of capitalization up to the month immediately preceding the nronth o1'clispclsal. Depreciation method, Lrseful lives and residual values are reassessed at each reporting date. The estimated useful lives for different type of assets in years are as follows: Items Buildings 50 l-owers 50 f xcharrge equiprnent 15 I rarrsrnissirru 15 Outside plants 30 Electric power and environmental control I5 Vehicles 5 Office equipnrent, furniture and fixtures l0 IP data 15 Equiprnent under nrobile pro"iect 15 I esl ctlrriprrrerrl I 5 'l'hc rcpairs & maintenance cost of the day to day servicing of the property, plant & equiprnent are recognized in thc profit ancl Ioss accouut as and when incurred. No depreciation is charged on lar.rd and capital work-in-progress. "].2 Ciapitalrvorh-in-progress Capital work-in-progress cor.rsists of accluisition costs of plant and machinery, capital components and related installatior.r cost until tlie date of capitalization of assets. ln case of irnport of components, capital work-in-progress is recognized when their shiprnent is confirmed by the supplier. .3.3 Stores & Spares Stores items were valued at original cost as available. Old items known to have no value were valued at Taka I crclt fi,r' itlerrtification purposes. 3.,6,Accounts receivables (*) llecognition and measurement r\ccor-rr.rts lece ivable consists of unpaid bills receivable fi'om subscribers and unbilled revenue recognized at thc baiance sheet date and are stated net ofbad debts provision. (u) f,)rovision for doubtflul debts i)rovisiorr lor cloLrbtlul debts has been considered on a lump sum basis on the possibility of collection of rccc ivab les. Hoda Vasi Chowdhury & Co 3.5 Elasis of payments to BTRC 'l-he Company has acquired 6 (six) licenses from Bangladesh Telecomrnunications Regulatory Cornmission (ll'l'Rc) for various terms. The Company did not require to pay acquisition fee (exempted) but is required to pay fbllowing annual renewal fees/charges: a) PSTN license fee: annul fee ofTk 10,000,000 b) Interr.rational Gateway (lGW) service license fee: annual fee of Tk 75,000,000 c) International Exchange (lCX) service license fee: annual fee ofTk 25,000,000 d) lnternational Internet Gateway (llG) service license fee: annual fee of Tk 250,000 In addition, the Company is required to pay share of telecom revenues to BTRC calculated at various rates as prescribed by BTRC. 3.6 Imployee benelits Pursuant to the vendors agreelnent executed ori I July 2008 between the Government of Bangladesli and B'l'CL. the err-rployees will be on the account of Government for 2 (two) subsequent years and thereafter options will be obtained as to their preference whether employr.nent of any employee or staff should be transferred to the oompany or shall renain with the Government. In view of the above, no provisior.r for pension and gratuity has been made in the accornpanying financial stalen.)euts. ln addition. BTCL maintains both defined contribution plan and defined benefit plan for its eligible permanent employees. The eligibility is determined according to the terms and conditions approved by the (iovernrrrent. (a) Delined contribution plan (provident fund) All perr.nanent ernployees usually contribute 10% of their basic salary to the general provident fund but it luray vary based on his/her declaration subject to government rules and regulations in this regard. The Companl, collects the contributions from the employees and deposits the same to the Government exchequer. (b) fl)elined benel'it plan (pension) l)efined benefit plan is a retirer.nent benefit plan under which amout.tts to be paid and determined by ref'erence to employees' earnings ancl years of service. The recognized Ernployees' Pension Fund is considerecl as defined beneflt plan as it meets the recognition criteria. The BTTB / BTCL's obligation is to provide the agreed benefits to retired en.rployees as per condition ofthe fund. (c) Short-term employee benelits Short-ternt errployec benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. (d) Salary llayments until pension ability 'l'his is the accumulated cost attributable to the enrployees of discontinuing business of BTTB telegraph and tclex service. Il'lTB has discontinued their telegraph and telex service but still er.nploys the related personnel who are yet to be retired. These employees are under- employment, distributing the revenue invoices once a morrtit and perforntitrg sotle tlanual ipvoicing activates for internet customers. Hoda Vasi Chowdhury & Co 3.7 Income tax The Company has no taxable income. As per Finance Act2014, minimum tax provision @0.3% on gross receipts has been made in the accompanying financial statements. 3.8 Revenuerecognition a) Telecom revenues are recognized when services are rendered. b) Interest on term deposits has been recognized on accrual basis. c) Dividend income is recognized on cash receipt basis. 3.9 Foreign currency transactions Transactions in foreign currencies are recorded in the books at the rates ofexchange prevailing on the date of the transactions. Monetary assets and liabilities in foreign currencies at the balance sheet date are translated into Bangladesh Taka at the rate ofexchange prevailing at the balance sheet date. 3.10 General (a) The Company has neither any investment in shares in Telephone Silpa Sangstha Ltd. and Bangladesh Cable Shilpa Ltd. nor any interest therein except business linkage as the Government owned entities in the similar sector. Further, the Company has no control on the management of the aforesaid companies who are independently managed by their Boards of Directors as separate entities. (b) The figures have been rounded offto the nearest Taka. (c) The figures relating to previous period have been rearrange to conform current year's presentation. (d) The Company will prepare its financial statements in new format as required by Bangladesh Accounting Standards (BSAs) from the year ending 30 June 2015. ra--oo@Larat6ot I [email protected]!n d ,. cl cl F: o? c'l q r.,.i q -. raoo.n-9@rr^.r- t; -i C '^ 'a r O i.a.l .a.. e cl Hoda Vasi 9 9'.1 cl r: $...,. o.1 ara.ll.at3m.r6al - !o 411-.l 59Or*.. d & Co ,1 ? cl ,a .r .. 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'- 6 a c ::-'-u-u'r= - n." .-: =:-.19-.rujcu '; .= ) :.:i-;r'^).=':piY - | - d ::'m-,,-->-+L - I t::l o:- c l: | ,,':' Hoda Vasi Chowdhury & Co 2014 201 3 (iapita I rvorh-in-progress Taka Taka (}pening halance ROD]'S I 0,301 ,45 8 10,30 r ,45 8 BLrilding under constluction 256,335.243 217,045,413 Internirtionzrl Long Distance Telephone Setvice 285,679,287 28s,679,28'.7 Inib Bahon Pro.ject 803.740,683 803,740,683 0ther 269,03 8,000 145.738.000 1,62s,094,671 t,462,504,841 Additions during the vear (note- 5.1) 1,165,096,1 l4 r 62,589,830 Less: l-r'ansi'er to propefiv plant and equipnient 1,358,457.970 ('iosing lrtllnce 1,431,732,8t6 1,625,094,671 5.1 Additions during the year Building nncler construction 3.877.078 39,289,830 PIant ancl Ilcluiprrent under Constmctiou 1.05 7,748.863 Other r 03.470, l 73 r 23.300,000 1,165,096,1 r4 162,589,830 (]or ernment provident fnnd (GPF) - contra Opening balance 1.905.222.024 I .905,238,324 Amount .ledLictecl dr.rling the year ti'our employees I 74,043,865 (16 ______2,01 2]6s W______lly 2n,41 l-hc irbove represents amount deductecl fiour ernployees as Governtneut provident fitnd contribution and deposited to the (i0r,elnrrent treasr-rrY. 7 ltenerval and rescrye fund - Governrnent. t,734,237,000 1,734,237,000 -l his lcplesents the anrount leceivable flom the Governr.nent ol'Bangladesh as valued by M/S Rahnian Rahman Huq and Iclatccl tenls llncl condilions are yet to be arrived at as to recovery ofthe trforesaid fLrnd. I nvcstment in sharcs A) lnr.narsat I'lc. Lllr (145.142 shares f.zr1) CBP 5.25 each listed in [-onclon Stoch Llxchange) 104.322,815 104,322,845 B) Inmar.sat I'lolding Ltd L.lK (5000 shares (ri GBP letrch is nonlisted and valuation iras been made on the basis olcost price.) 681,719 68t.719 105,004,56,t I 05,004,564 Stores and spares ( rrlrlcs 643.205.856 643.205,856 Slolcs 1 14,t1 5;7',7 0 I14.17 5.'.7'70 Apparltus iinci associaled itenrs 2,026.467 2,026.461 l:leetrie:rl itr:ltLtrttettl: & itctess,tries 2. I I 3,445 2,113.445 76 I ,521,538 76 l,521,s38 Hoda Vasi Chowdhury & Co 2014 20t3 r$ :\crounts receivable Tal Less: provision lbr bad dehts [-ocal operators 3 l 0,909,578 3 10,909,s78 Foleign operators 440,295.260 440,295,260 I)r'ivate - norrliil 168.022,242 168,022.242 ( l,'\cJ nlrrrl)cr orr irtg eotlprtttics I.633.512,939 1,633,512,939 2.552.740.01 9 2,552,740,019 2 I ,819,835,955 23,426,461,664 I 1,. I Receivrble form related parties Teletalk Bangladesh [.tcl. 88,1 19,312 88,119,312 (iovclnment of the ['eople's Republic ol Bangladesh I 63.041.641 563,343"64 1 ilansIaclesh Subruarine (lable Corrptrrry Ltd 672.481,160 464,067.242 ( iovcrnr.nent Ciompiuries I 28. I 82,966 128,182,966 I elephone Silpa Sangstha I-td. 1.212,251,458 I,212,251,458 gtg Banglaclesh C able Shilpa Ltcl. 49) l5g 492.939,359 2,757,018,496 2,948,903,978 it Advances Salirry advance 160,430 r 60,430 'l'emporary aalvance 880.919 2,802,0 l9 '[ A acivance 3. I 07,21 5 s.883.71 s I Othel advzrnces (note - I I. I ) I 3,5 89,1 57,6 I 3 I 3,3 85, 83,028 r J,593.306,r 77 13,394,029,192 Other zrdvanccs Aclvance to suppliers 193.s42.461 193,542,461 l./(i malgins. CID/VAT rvith Custotns Hottses at Dhal E'' {'ash and cash equivalents (lash in hand I 8,637,21 0 42.668,459 ('ash at baniis 289.986.6r 0 (388,1 89,1 82) -l elnr cleposits I 3. I 48,575.479 l 3,5 89,3 I 9,996 ( ash in transil 653.421.983 s4'1,838,844 14,110,621,282 13,791,638,1 17 Hoda Vasi Chowdhury & Co 2014 201 3 I-] Securitl' deposits :rnd others Taha Taka l)cpos its 1ol contributoly r.vorks 2 1 0,1 42,840 I 80,959,588 i)edr.rction fiorr contractors and suppliers 3.07'1 .304 3,0'17,304 Security monel' 13,094,50 r I t,980,496 Deposits 1l'orr customers 109.991,160 88,250,036 Secr-rrit) cleposits 2 1 7.1 06.889 201 ,71 5,5 l0 55t,4r 2,693 485,982,933 t"a Pay rblcs to contraclors and suppliers Llrrpairl letter-s o1'creciit - Proiect 8,673,384,009 8,673,384,009 i5 \'A'l- and duties pavzrble CLrstoms ancl excise pa1'rble 16.472.942 16,4'.72,942 VA l pal'able 639,608.63 I 567,6 1 0,807 I-l)S Pa1'able 1.432.941 1,432.941 ( )thers (5,40 1,7 I 5) (2.145.315) 652,112,799 583,371,314 I (r fimployees cnrolument deductions 11,631,232 t4,142,189 -fhis reltrs to anrount declur:ted 1l'om the enrployees dut'irtg tlte yezrr undel revierv on tccollnt of Covernment Provident Fuud rvhich ir|e Yet to be cleposited to the Governr.t.tent treasury. This arnor.rnt is exclr"rsive fiorn the arnourrt of Taka207.9 cr-ores appearing in Note - 6. 'l i? X'rovision tbr Inconre ar ( )penrng btrlance 1.369,678.555 l ,301.678,55 s Aclcl: ['rovision ltr the year 30.200.000 68.000,000 l,399,878,555 1,369,678,s55 IS .\ccrued expcnses (ltlltlers sirlzir'l atid ai lor.vances (6 l 0.529) 58 I.852 Stall salary ancl allorvances I 2.507,600 11,925,748 (:ieneral e\peuses 1.049.414,842 1,049.414,842 ALrdit tees 690,000 690,000 Accruecl repairs & mainteuatlce 257,098 25',1,098 i-iabiIit1 firr capacit1, chzrrges & settletnents I.079.300.461 r,s80, I 30,693 I'alable to Iroleign C'arriers 1.029.()86,244 1,029.986,244 i'alable to otirer ICX fbr revenue share 2.0 I 3.41 6.978 l,398.l96.l63 lll RCl liccnsc fees I 8.833.333 l 8,833.333 L:] l RCl revenuc share 8.156.727,431 7.975. I 58,845 B-l'iiC fiecluencl charge 82.20 l.550 82,201 ,5 50 [3angiadesh Suhntat ine (]able (onrparr]' Ltd 677.IL4.005 -lcicpirone Shilpa Shangstha' ISS I -1.276.01 0 13.276.010 {iovernntent of Bangludesh / Quasi Government: Deposit palablc on clemand 47.152.342 4'.7.152.342 Other pay'lble - ()OB I 8.501 .67 I 18,s01.671 Wellirre lirnd 108.400 r 08,400 ('ontliiruturl cleposi1 l(t.417.459 16.417,459 Othcr pal lblc - (iOIl - VA'[ orr (ior'.'l el.bill 50 1.387.549 s0 1,387,549 583,567,421 583,567,421 l'rolcct LiabiliLics 83 1.722.3 l0 831.'722,310 11,871,290,7s0 15,2s3,056,1 l1 W Hoda Vasi Chowdhury & Co 2014 2013 19 Share capital Taka Taka Authorized share capital 1,500,000,000 shares of Taka 100 each I 50,000,000,000 1 s0.000,000,000 Paid up share capital I 8 Shares of Taka I 00 each I ,800 1,800 Comnosition of shareholdings Name of shareholders & respective Ministries / Asencies Represented bv Ministry of Post & Telecommunications Mr. Md. Abubakar Siddique 200 200 Ministry of Finance Mr. Jalal Ahrned )nn 200 Ministry of Information Md. Khalilur Rahman 200 200 Ministry of Post and Telecommunications Mr. Md. Feroz Salauddin 200 200 Bangladesh Army, Dhaka Cantonment Brig. Gen Rashedul Mannan 200 200 ICAB Mr. Syfirl lslam 200 200 BUET Dr. Satya Prasad Majumder 200 200 FBCCI Mrs. Monowara Hakim Ali 200 200 Managing Director, BTCL Mr. Md. Shahnerva.i 200 200 ______tdq ______lJq The entire amount ofabove paid up capital has been paid by the Government. 20 Equity reserve ____4qfl1,0{5rU2_ ____2!0,515,0q&2_ This arnount represents dil'ference of assets and liabilities of earstwhile Bangladesh Telegraph and Telephone Board (BTTB) taken over by the company as on 30 June 2008 according to the valuation carried out by M/S Rahman Rahman Huq, an independent valuer. 2l Loans 2l.l Long term portion: Foreign loans (note - 21.l.l) 9,898.825,805 l 1,758,652,530 Foreign lease finance / Submarine Cable (note - 21 .1.2) t64,087,615 Government loans 2,693,393.239 1,835,862,4s3 tLscD2tg.044 ______!ffu!z,s99_ 2l.l.l Foreign loans Principal 9,450.342,841 11,155,372,369 lnterest 448,482,964 603,280,1 6 I 9,898,825,805 l1,758,652,530 21.1.2 Foreign lease finance / Submarine Cable Principal f-iseJos-3641 lnterest q.ng.zst I I 164,087,615 Hoda Vasi Chowdhury & Co 2014 2013 21.2 L,ong-term loan-current portion: Taka Taka I'or-eign loans (note - 2l .2.1) 6.167.842.511 4,379,661j23 Suppliers credit - CMllC. Chirra (note - 2l .2.2) l ,3 80,365,61 5 l'oreign lease flnance / Subrnarine Czrble (note - 21.2.i) ------6Vn$$W279.9"13,l',l9 342,512,981 --6,ITzF3qpit ?,i.?,.1 Foreign loans Principal s.4s1 .662,698 3,8 r 9,5 87,929 I nterest 7 l 6.1 79.81 3 560.073.394 6,167,842,511 4,379,661,323 7.1"2.2 Supplicrs cretlit - CNltlC, China Principal I ,347,5 I 9,8 I 9 I nte lest t2.845,796 l,380,36s,61s ),t "2.3 F oreign lease linanco / Submarine Cable ['rincipal 2'76.196,443 318.616.72 I nterest 1776',l\6 23,896,254 279,97 3,179 342,512,981 7.',2 i,ong-term liabilities to ernployees L.oau to employ'ees 100.434,3 I 9 100.434.3 I 9 I'ension liabilities (note - 22. I ) 1 9.1 0 1.590.000 I 9.65 1,590.000 lietirenrent ber.rellt 7 .32'.7 .389,454 7.327,389.4s4 26,529,413,773 27,079,413,',!73 't7.i i'cnsion liahilities l,ong-terur pension p2rylrent fhmily l. I 74,568,000 r. r 74.568.000 l-ong-tenl pension pn)lment pens ioners t7.927,022,000 l 8.477.022.000 19,10r,590,000 19,651,s90,000 23 Othcr long-term liahilities lnrpniled assets (note - 23.1 ) 42.364,400.165 42.364,400,165 ( )thers s9.796.612 59,796,612 42,424,196,',|',|',l 42,424,196;777 2J. ( irnpaired Assets Salar'y payurcnts untiI pcnsiorr abiIity 1.136.060,627 1.136,060,627 4,639"716 4.639 t6 [)enroiition cost--l'c.jgaon and Tongi "7 IN4l). L-B ancl Magrteto Exchirtrge l 20.7 I 5.053 r 20.7 r 5.053 i ttir. Is.rl sct'r ir'i rrlrligltli,rtt 41.102.984,769 41.102,984,769 42,364,400,1 65 42,364,400, I 65 -l hc aborc itenrs ale ls per valuation repor't as on 30.ltrne 2008. Salarl, paymerrts until pension abilitl 'l[is is thc aecunrulated cost attributtrble to the employees oldiscontinuing bttsiness o1'B'lTB telegraph aud telex service. L]-f-l'B has cliscrtnlinuecl their teleglaph and telex service lrut still emplol,s the related personrtel who trre yet to be retired. -l-hese eutployees are unclcr- eurplol,'urent. clistributing the reveuue inroices ouce itt a month and pelforrning some nlarlual invoicing activities Ibr internet custotners. []emolition cost lr:stirlatcd cosl to bc incuued to denrolish thc dilapidated stores and workshop building at'[ejgaon and Tongi. Ii\tD, ('B antl nragncto erchange L:stirrralcd lo-ss of inrpirircci assels to be ittcurred fbr the next I0 yearrs. Hoda Vasi Chowdhury & Co { 'niversal sen,ice obligation BICL is tccluirecl. as a condition olits license to plovide universal telephone service throughout Bangladesh rvithout taking the econort.rics o1'the connectiorrs iuto account. Due to this [..]niversal Service Obligation (USO), tlie cost olthis serr,ices is estiuratecl fbr corporative BTCL 1ir next 20 1,ears. Considering all operational cost t'actors and depreciation ol inliastluctule lill srvitches. transmission and outside plarnt, the mtrjority ofexchanges are currently at loss. To reflect an []SO scenario and the estirniitecl liabilities. the flnancial ir.npact has been calculated tbr the continuation of loss making operations rvith the netrvork configurzrtion that BTCL has. The provisions have been estimated fbr the loss making crchitnges tilr 20 venrs. 2011 2013 ?..1 R.cvcri u c Tal l'elcphone revonLlc 3.647 .587 .566 3,667.990,463 I rrterconnection revenue 17,629.518 880.700.864 i-ocal operators 1 r7.341,084 l 96,6 l 8,70s lS t) 224.39'7,067 299.422,561 Revenue fiorn oapacity lease 633,35 1.702 3'.7 5 ,7 3'7 ,303 Foreign operator-s 3, l l 9.686.653 5,066,719.32'.7 ICX Rcvcnuc fbl ISD Incorring calls 100.t32.426 ) )q 70q 6s5 ANS llevenue tirr ISD lnconring calls 64.683.670 64.669.149 Irrternet ancl clata selvices 5 14.440.45 I 675.324.415 'l'eleglaph scr-r'ices I 95,588 1.537.420 8,439,445,725 11,458,429,862 2:1 { osl of seryices '793,436,'7 I ntclconncctir'rrr irnd selllcnle,tt 62 4,145,6t 1.703 B l'[1C' r'evenue shaling 2.08 l,868.586 2,7'.7 4.354.733 |'r-eqtrenct chtrlgcs )lt 671 755 lLg.203.677 ( apacitr, chalges lrnd settlenieuts 823.206.545 t, I 93.459,059 B f RC' lir:ense tees (note - 25.1) 270. r I 2.500 I I 0,250.000 4,200,298,148 8,342,879,172 I5.t ll'l'R(l liccnse lces ICiW I 83,750,000 7s,000,000 I(-X 6 l .2s0.000 25,000,000 I'S'i'N 24.500.000 r 0,000,000 II(i 6 I 2.500 250,000 270,r t 2,500 I I0,250,000 \d Hoda Vasi Chowdhury & Co 2t)14 2013 Administrative expenses Taha Taka StafT cost Olllcers salarl, and allou'ances )qs 01s 70) 247.812,761 \lxl'lj .rlir') ilrrrl Jllou irrccs 2.019,663,391 t,672,234,050 Oltlcels / staffs benellts 260,324,673 259,464.433 Olliccr-s / statli letirernent payments 5,495,700 2.285.665 2,580,518,966 2,181,796,910 {ieneral expenses ( )1'flce lent 14.601 ,454 9,49s,853 Municipal tar 23.737.524 t't ,015,422 [,and development tzrx 4,352.776 5,720,548 I n sulance 2.645,01 l 379 Electlicity & power 340,45 1,039 306,38s,16t Water & sewerage I 6,080.73 8 19,092,620 Cjas & firel chzrrges I 60,008,892 166,638,761 Printing & statiouary 26. I 82,1 53 22,866,495 ['eliodicals & papers 357,57 | 480,603 Aclr,crtise rnent 3.221.582 4,526,231 []usiness pr-ourotional expeltses 5t6.706 1.19'.7,665 Advisory & cor.rsultancy expenses 1.647.032 812,629 Legal lces 3,5 34.695 10.989,808 Ar-rdit iees 402,500 402.500 'l r-irining- local 21.262,010 21,624,093 'fraining- Foleign 2,566,584 LJnilbrrn & liveries 12.495,750 I 3,590,570 (iar-clen meintenirnce 27,560 Salart, ol'su,eepers. carpellters elc. 8,5 80,528 4.639;705 Saiary ol casual stal'l' I 3 1.958,556 88,606,21 8 C'tlr rve)'ance 5,682,56 I 8,026.28s Liccnce 1ee 4.017 483,897 l)ostagc & cout ier' 25.537.854 26.8s7,38 1 Entcrlainurent 1.883.090 I ,501 ,7'7 4 [)onation & subscription 16.000 -['r'avel ling oxpenses 30.3 1 3,1 79 26,492,198 C [stonrs Dut)' 30,000 10,710,152 lncoure Tlx 61.236 85,069 Other-tar antl VAI- 639.4t2 71.497,702 [)entrllage 19,995 Penzritl 5,000 13,995 ( lenning. expenses 63,630 Stafl' bus hir-ing chalge 35.27 s,;4t 25,t70,'730 Registration & retteu,irls 2.t97.928 667.3ts ('asrral staff 8,845,037 6,898,909 St:ourity sen ices 7 t .346.297 62.408.31'7 Meeting expenses 40.190 l 43.070 546.350 I )irectors' honorirrittt.t.t 470.000 Conrputer brlling chargc 8,418,190 3,123.729 [)aily labour 25,5'70,820 5 5.673,75 8 Bincling expellscs 1.026.395 1,074.501 ('iearing Agents. Contr.uissions & Others 17,0'.79,819 ( )l lir'c elcctlicil) & olltcr lll:lillLclr:llltc 1.576.355 2.344,863 10.918.933 1 2.302. I 98 M isce I lnncous 1,002,713,271 r,029,837,481 l-ess: l{t:covet'y ol erpenses 24,331 ,485 20,392,292 ---- 9?8J8tJ86 1,009,445,190 ,19r, Hoda Vasi Chowdhury & Co 2014 2013 27 Repairs and maintenance Tal M iscel I aneous 5,970,213 3,324,380 ---- n$Nz6- 479,542,020 28 Non-operatingincome lnterest income fi'onr short term deposits (FDR) 1,451,384,738 I ,851,355,461 Bank interest 151,614,676 147,596,658 Otlter incorne 7 .721 .710 37,737,436 r,610,721,124 2,036,689,555 29 Nlanaging f)irectors' remuneration Duling tl-re year, the Manirging Director of the company was paid Taka 476,600 Numbcr of ernployees 'l-he total number tlf employees of the company as at 30.lttne was as fbllows: Salary range 2014 2013 'laka 1?5 3.00C) or above 7 7,811 Relorv'l-aka 3.000 Nil Nil - ej .l r'/I Photo Gallery (2013-14) 04-06 July 2013: Digital Fair, Chittagong 04-06 July 2013: Digital Fair, Chittagong 04-06 July 2013: Digital Fair, Chittagong 16 Dec 2013: BTCL Head Office on Victory Night 17 Dec 2013: Minister RK Menon visiting BTCL 17 Dec 2013: Minister RK Menon visiting BTCL 14-16 Mar 2014: A2I Fair, Bogra 14-16 Mar 2014: A2I Fair, Bogra Photo Gallery (2013-14) 20-22 Mar 2014: A2I Digital Fair, Sirajganj 20-22 Mar 2014: A2I Digital Fair, Sirajganj 20-22 Mar 2014: A2I Digital Fair, Sirajganj 20-22 Mar 2014: A2I Digital Fair, Sirajganj 20-22 Mar 2014: A2I Digital Fair, Sirajganj 20-22 Mar 2014: A2I Digital Fair, Sirajganj BTCL won 2nd Prize BTCL won 2nd Prize 06 Apr 2014: BTCL MD Mr Mahfuz at ADSL meeting 04-07 Jul 2014 2014: Digital Fair, Dhaka Photo Gallery (2013-14) 17 May 2014: WTISD Truck Rally, Dhaka 17 May 2014: WTISD Truck Rally, Dhaka 17 May 2014: WTISD Truck Rally-3rd Prize 17 May 2014: WTISD Truck Rally-3rd Prize Telecom History 1837: Samuel Morse invented Telegraph 1850: Telegraph Lime between Calcutta and Diamond Harbor by East India Company 1853: Telegraph branch under Posts and Telegraph Department, British India 1853: 4000 miles telegraph lines constructed in India 1855: Telegraph service opened to public in India 1858: India-Srilanka telegraph cable laid 1885: Telegraph Act 1886: Copper wire replacing iron wire 1895: Phonogram introduced in India 1902: Wireless Telegraphy started in India 1914: Postal and Telegraph departments merged in India 1933: Wireless Telegraphy Act 1444: Introduction of Hindi script 1962: Reconstructed as Pakistan Telegraph and Telephone Department 1971: Reconstructed as Bangladesh Telegraph and Telephone Department under Ministry of Posts and Telecommunications after the liberation war 1975: Reconstructed as Telegraph and Telephone Board 1979: Reconstructed as Bangladesh Telegraph and Telephone Board (BTTB) with right to issue license for telecom and wireless services. 1981: Digital Telex Exchange in Bangladesh 1983: Automatic Digital ITX started in Dhaka 1985: Coinbox Telephone introduced in Bangladesh by BTTB 1989: GENTEX Telegraph messaging service introduced in Bangladesh 1989: Bangladesh Rural Telecom Authority got license to operate exchanges in 200 upazilas 1989: Sheba Telecom got license to operate exchange is 199 upazilla 1989: Pacific Bangladesh Telephone Limited and Bangladesh Telecom got Cellular mobile phone license 1992: BTCL & Telephone Shilpa Sangstha launches magnetic cardphone service in the country (1400 units) 1995: Card Telephone service introduced in Bangladesh by BTTB and TSS 1995: Regulatory power of BTTB transferred to Ministry (MoPT) 1995: 2nd and 3rd ITX installed in Dhaka 1996: Grameen Phone got cellular mobile Telephone license 1998: Telecom Malaysia International Bangladesh got cellular mobile license 1998: Telecom Policy by Ministry of Post and Telecommunications 1999: Chiptype cardphone installation begins in the country (1130 units) 2000: Global Telecom Service (GTS) Telex Exchange venture with British Telecom 2001: Telecommunication Act, to establish Bangladesh Telecommunication Regulatory Commission (BTRC) 2002: ICT Policy 2004: Licensing Procedure by BTRC 2004: Teletalk cellular mobile launched 2004: Interconnection Regulation by BTRC, Amendment: 2008 2004: BTRC (Licensing Procedure) Regulations, Amendment: 2009 2006: Telecommunication Act-2001 Amendment 2006: NGN (Next Generation Network) introduced in BTTB 2007: International Long Distance Telecommunication Services (ILDTS) Policy by BTRC 2008: Bangladesh Telegraph & Telephone Board (BTTB) was converted into Bangladesh Telecommunications Company Limited (BTCL) on 01 July with 100% shares owned by Government and with 9 directors, headed by secretary of Ministry of Post and Telecommunications 2009: Magnetic Cardphone and Chiptype Cardphone service withdrawn as cellphone becomes available. 2009: BTTB ordinance-1979 Amendment (BTCL Act) 2009: National Broadband Policy by Ministry of Post and Telecommunications 2010: Telecommunication Act-2001 amendment 2010: ILDTS Policy 2010: SMS based Premium Rate Services guideline by BTRC 2010: Video Conferencing Guideline by BTRC 2011: Telecom Infrastructure Sharing guideline by BTRC 2012: License Fees of ISP, VSAT, Call Centre etc by BTRC 2013: BPO/Call Centre guideline by BTRC 2013: Mobile Financial Service instructions by BTRC and Bangladesh Bank 2014: (10/02/2014) Ministry of Post and Telecommunication and Ministry of Information and Communication Technology are integrated to Ministry of Posts, Telecommunications and Information Technology and BTCL comes under Post & Telecommunications Department.