Grameen phone-Financial Statment for Regulators for Investor Relations-First Quarter-2011...

8/3/2019 Grameen phone-Financial Statment for Regulators for Investor Relations-First Quarter-2011 (Financial Report - 1st Q

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Condensed Consolidated

Interim Financial Statements as at and for the

Quarter ended 31 March 2011

(Un-audited)


2/11


3/11

Quarter ended Quarter ended

Notes 31 March 2011 31 March 2010Taka Taka

Revenue 16 20,671,798,291 17,041,538,870

Cost of network operations:

Direct cost of network revenue 17 (4,358,391,377) (3,358,012,292)

Network operation and maintenance expenses (1,504,053,484) (1,125,388,547)

Depreciation and amortisation (3,654,442,465) (3,725,415,328)

(9,516,887,326) (8,208,816,167)

Gross profit 11,154,910,965 8,832,722,703

Other income, net 15,004,257 11,617,670

Operating expenses:

General and administrative expenses (2,251,145,685) (1,900,897,607)Selling and distribution expenses 18 (2,686,940,943) (1,232,252,070)

Depreciation and amortisation (355,970,377) (374,754,208)

(5,294,057,005) (3,507,903,885)

Operating profit 5,875,858,217 5,336,436,488

Finance income/(expense), net 19 374,757,284 128,081,467

Grameenphone Ltd.

Condensed Consolidated Statement of Comprehensive Income

for the quarter ended 31 March 2011

Foreign exchange gain/(loss) (294,262,464) 107,768,829

Gain/(loss) on disposal of property, plant and equipment 235,114 9,283,128

Profit before income tax 5,956,588,151 5,581,569,912

Income tax expenses 20 (3,089,110,837) (2,424,245,464)

Profit for the quarter 2,867,477,314 3,157,324,448

Other comprehensive income - -

Total comprehensive income for the quarter 2,867,477,314 3,157,324,448

Total comprehensive income attributable to:

Owners of the company 2,867,477,293 3,157,324,477

Non controlling interest 21 (29)

Earnings per share:

Basic and diluted earnings per share (par value Tk 10 each) 21 2.12 2.34

The annexed notes 1 to 22 form an integral part of these condensed consolidated financial statements.

_________________ __________________________Tore Johnsen Raihan Shamsi

Chief Executive Officer Deputy Chief Executive Officer &

Chief Financial Officer

Dhaka, 30 April, 2011

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Sd/- Sd/-


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Deposit

Share Share Capital from General Ret

capital premium reserve shareholders reserve ear

Taka Taka Taka Taka Taka T

Balance as at 1 January 2010 13,503,000,220 7,840,225,942 14,446,452 1,880,178 2,139,729,365 26,6

Transactions with the shareholders:

Issuance of share of Grameenphone IT Ltd. - - - - -

Total comprehensive income for the quarter

ended 31 March 2010

Profit for the quarter - - - - - 3,1

Other comprehensive income - - - - -

Balance as at 31 March 2010 13,503,000,220 7,840,225,942 14,446,452 1,880,178 2,139,729,365 29,8

Balance as at 1 January 2011 13,503,000,220 7,840,225,942 14,446,452 1,880,178 2,139,729,365 24,5

Total comprehensive income for the quarter

ended 31 March 2011

Profit for the quarter - - - - - 2,8

Other comprehensive income - - - - -

Balance as at 31 March 2011 13,503,000,220 7,840,225,942 14,446,452 1,880,178 2,139,729,365 27,4

Grameenphone Ltd.

Condensed Consolidated Statement of Changes in Equity


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Quarter ended Quarter ended

31 March 2011 31 March 2010

Taka Taka

Cash flows from operating activities:

Cash receipts from performance of services/sales 19,717,870,401 16,896,096,153

Payroll and other payments to employees (1,464,649,812) (1,375,195,676)

Payment to suppliers, contractors and others (7,221,342,295) (6,032,384,839)

Net finance income received 503,872,045 254,479,902Finance costs paid (482,411,370) (75,381,661)

Income tax paid (2,265,016,279) (2,332,481,411)

(10,929,547,711) (9,560,963,685)

Net cash flow from operating activities 8,788,322,690 7,335,132,468

Cash flows from investing activities:

Payment for acquisition of property, plant and equipment (1,681,601,820) (1,565,524,251)

Proceeds from sale of property, plant and equipment 5,466,122 31,059,155

Payment for acquisition of intangible assets (11,431,133) (93,773,266)

Investment in long term deposits (61,245) -

Short term investments 597,479,739 (58,187)

Net cash used in investing activities (1,090,148,337) (1,628,296,549)

Cash flows from financing activities:

Payment of long term borrowings - (117,648,000)

Payment of dividend (8,921,116) -

Proceeds from issue of shares to non controlling interest - 100

Amount refunded to IPO share applicants (651,117) (77,535,709)

Net cash used in financing activities (9,572,233) (195,183,609)

Net changes in cash and cash equivalents 7,688,602,120 5,511,652,310

Cash and cash equivalents at beginning 18,931,502,552 14,101,313,087

Cash and cash equivalents at closing 26,620,104,672 19,612,965,397

Grameenphone Ltd.

Condensed Consolidated Statement of Cash Flows


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1. Reporting entity

1.1 Company profile

1.2 Nature of busines

2. Basis of preparation

3. Accounting policies

The same accounting policies, presentation and methods of computation have been followed in these

condensed consolidated financial statements as were applied in the preparation of the consolidated financial

statements of the group as at and for the year ended 31 December 2010.

These condensed consolidated financial statements have been prepared in accordance with International

Accounting Standard/Bangladesh Accounting Standard (IAS/BAS) 34: Interim Financial Reporting and

relevant guidelines issued by the Securities and Exchange Commission, Bangladesh and should be read in

conjunction with the consolidated financial statements as at and for the year ended 31 December 2010 of the

group, the period for which the last full annual financial statements were prepared.

The group is primarily involved in providing mobile telecommunication services (voice, data and other

related services) and IT related services in Bangladesh. Grameenphone obtained its radio system operating

licence from the Ministry of Posts and Telecommunications (MOPT), Government of Bangladesh,

commencing from 11 November 1996 and launched commercial operation on 26 March 1997.

Telecommunication network of the company covers all divisional towns and districts of the country. Thecompany also provides international roaming services through international roaming agreements with

various operators of different countries across the world.

These consolidated financial statements comprise the company and its subsidiary, Grameenphone IT Ltd

(together referred to as "the group").

Grameenphone Ltd.

as at and for the quarter ended 31 March 2011

Notes to the condensed consolidated financial statements

Grameenphone Ltd (hereinafter referred to as "GP"/"Grameenphone"/"the company"/"the parent company")

is a public limited company incorporated in Bangladesh in 1996 under the Companies Act 1994 with its

registered address at Celebration Point, Road 113/A, Gulshan, Dhaka, Bangladesh. In July 2010, the

registered office of the company was shifted to GPHOUSE, Bashundhara, Baridhara, Dhaka 1229. GP was

initially registered as a private limited company and subsequently converted into a public limited company

on 25 June 2007. During November 2009, GP listed its shares with both Dhaka and Chittagong Stock

Exchanges. In 2010, Grameenphone formed a wholly owned subsidiary namely Grameenphone IT Ltd

(hereinafter referred to as "GPIT"/ "the subsidiary company"), to provide IT services to itself and also to

external customers. GPIT launched its commercial operation from 1 April 2010.

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4 Property, plant and equipment, net

Disposal/ Disposal/

As at Addition Adjustment As at As at Charged Adjustment

1 January during during 31 March 1 January during the during

Name of assets 2011 the quarter the quarter 2011 2011 the quarter the quarter

Taka Taka Taka Taka Taka Taka Taka

Freehold assets 127,709,029,019 11,406,482,376 (19,366,370,043) 119,749,141,352 65,642,723,849 3,622,663,623 (9,678,199,729)

Capital work in progress 4,139,246,427 11,659,743,339 (11,339,769,832) 4,459,219,934 - - -

131,848,275,446 23,066,225,715 (30,706,139,875) 124,208,361,286 65,642,723,849 3,622,663,623 (9,678,199,729)

Fibre Optic Network

under finance lease 7,678,321,508 - - 7,678,321,508 2,187,780,988 82,495,788 -

139,526,596,954 23,066,225,715 (30,706,139,875) 131,886,682,794 67,830,504,837 3,705,159,411 (9,678,199,729)

5 Intangible assets, net

Disposal/ Disposal/

As at Addition Adjustment As at As at Charged Adjustment

1 January during during 31 March 1 January during the during

Name of assets 2011 the quarter the quarter 2011 2011 the quarter the quarter

Taka Taka Taka Taka Taka Taka Taka

Freehold assets 10,931,511,847 1,118,589 - 10,932,630,436 4,288,344,023 305,253,432 -

Capital work in progress 349,560,499 20,615,457 (1,118,589) 369,057,367 - - -

11,281,072,346 21,734,046 (1,118,589) 11,301,687,803 4,288,344,023 305,253,432 -

Cost Depreciation

Cost Depreciation

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6 Inventories As at As at

31 March 2011 31 December 2010

Taka Taka

Handset, data card and other device 197,481,831 133,374,666

SIM card 347,854,815 633,598,995

Scratch card 38,567,790 67,381,665

583,904,436 834,355,326

7 Accounts receivable, net

Receivables for mobile service-interconnection 5,342,487,608 4,877,394,453

Receivables for mobile service-post paid and others 165,888,786 180,435,548

Receivables for infrastructure sharing 314,443,214 153,522,463

Receivables for sub lease of fibre optic network 27,088,750 22,995,771

Other receivables for non-mobile service 14,376,050 13,597,537

5,864,284,408 5,247,945,772

8 Other receivables

Accrued interest 237,547,388 156,269,520Receivable from Ericsson 428,123,981 428,123,981

Receivable from other Telenor entities 187,281,548 182,467,922

Receivable from other external parties 162,674,459 161,158,846

1,015,627,376 928,020,269

9 Advances, deposits and prepayments

Advances 417,867,834 458,566,739

Deposits 203,273,730 188,441,730

Prepayments 947,199,265 974,629,370

1,568,340,829 1,621,637,839

10 Cash and cash equivalents

Cash in hand 4,079,895 3,737,483

Cash at bank 26,616,024,777 18,927,765,069

26,620,104,672 18,931,502,552

11 Deferred tax liabilities

Taxable temporary differences 34,240,498,875 37,521,403,533

Deductible temporary differences (5,412,592,970) (5,518,307,785)

28,827,905,905 32,003,095,748

Tax rate 35% 35%

Deferred tax liability 10,089,767,067 11,201,083,512

12 Accounts payable

Liability for capital expenditure 2,434,116,291 2,246,290,076

Payable for expenses 8,850,776,296 7,622,500,562

Payable for other expenses 200,449,693 315,087,154

11,485,342,280 10,183,877,792

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13 Payable to government and autonomous bodies

As at As at

31 March 2011 31 December 2010

Taka Taka

Bangladesh Telecommunication Regulatory Commission (BTRC)

Frequency and spectrum charges 199,199,476 226,000,964Revenue sharing 1,260,924,626 1,388,092,365

1,460,124,102 1,614,093,329

Supplementary duty on SIM payable to NBR 2,747,972,881 2,869,736,536

Share of sub-lease rent payable to Bangladesh Railway 4,920,058 10,908,544

Payable for Bills Pay receipt 257,198,846 319,751,841

4,470,215,887 4,814,490,250

14 Income tax provision

Opening balance 15,738,404,448 12,228,778,445

Provision made during the period/year 4,200,427,282 12,512,235,175

19,938,831,730 24,741,013,620

Paid during the period/year (including tax deducted at source) (2,265,016,279) (9,002,609,172)Closing balance 17,673,815,451 15,738,404,448

15 Provision for expenses

International roaming services 7,051,014 8,705,560

Commission and other operational expenses 66,874,664 81,454,862

Cost of SIM card, scratch card, handsets etc. 1,791,540,457 1,302,937,127

Personnel expenses 2,096,761,879 2,046,458,804

Employee provident fund 30,707,467 26,643,930

Training and travelling expenses 66,417,164 62,799,455

Sales and promotional expenses 782,669,149 776,568,213

Consultancy and professional fees 498,832,253 703,940,472

Network operations and maintenance 1,129,631,042 711,382,083Capital expenditure 2,150,965,122 1,953,597,498

Office and general expenses 714,542,913 749,139,910

Lease rent to Power Grid Company of Bangladesh Ltd. 6,315,460 4,788,000

9,342,308,584 8,428,415,914

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16 RevenueQuarter ended Quarter ended

31 March 2011 31 March 2010

Taka Taka

Traffic revenue 16,816,454,685 14,353,817,738

Subscription revenue 152,381,682 162,642,997

Connection revenue 65,907,789 75,733,680

Roaming revenue 130,864,913 103,427,080

Interconnection revenue 1,990,718,103 1,618,343,951

Other operating revenue 890,117,760 639,751,727

Other non- mobile revenue 625,353,359 87,821,697

20,671,798,291 17,041,538,870

17 Direct cost of network revenue

Cost of interconnection 915,111,473 936,017,168

Cost of SIM card, scratch card, handset etc. 803,920,650 299,576,809

International roaming cost 49,976,572 47,679,884

Licence fees and spectrum charges 175,874,967 175,847,385

Revenue sharing with BTRC 1,071,674,586 888,970,426Dealers' and agents' commission 1,303,895,045 1,006,871,227

Revenue sharing with content providers and others 37,938,084 3,049,393

4,358,391,377 3,358,012,292

18 Selling and distribution expenses

Sales, marketing and representation costs 2,130,084,507 925,946,795

Advertisements 325,002,568 170,953,045

Business development and promotional expenses 231,853,868 135,352,230

2,686,940,943 1,232,252,070

19 Finance income/(expense), net

Interest on long term loans - (2,702,529)

Finance charge - lease (193,669,221) (192,012,041)

Interest on ARO (4,094,984) (4,016,747)

Other finance charges (13,702,730) (13,789,680)

(211,466,935) (212,520,997)

Finance income 586,224,219 340,602,464

374,757,284 128,081,467

20 Income tax expenses

Current tax expenses 4,200,427,282 3,203,918,239

Deferred tax expenses (1,111,316,445) (779,672,775)

3,089,110,837 2,424,245,464

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21 Earnings per shareQuarter ended Quarter ended

31 March 2011 31 March 2010

Profit attributable to the ordinary shareholders (Taka) 2,867,477,293 3,157,324,477

Weighted average number of ordinary shares

outstanding during the period 1,350,300,022 1,350,300,022

Basic earnings per share (par value Tk 10 each) (Taka) 2.12 2.34

22 Other disclosures

22.1 Related party disclosures

22.2 Capital commitments

22.3 Events after the reporting period

Except for the above, there was no event after the reporting period that requires either disclosure of or adjustment to the

financial statements.

Except for the regular transactions, there was no significant related party transaction during the quarter ended 31 March

2011.

No diluted earnings per share is required to be calculated for the periods presented as GP has no dilutive potential

ordinary shares.

The shareholders of the company, in its14th AGM held on 19 April 2011, approved Tk. 16,203,600,264 as totaldividend for 2010, including the interim dividend Tk. 4,726,050,077.

There was no significant change in the commitments made by the company during the quarter ended 31 March 2011.

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