annual report 2014-2015apscl.portal.gov.bd/sites/default/files/files/apscl... · organogram value...

A S H U G A N J P O W E R S TAT I O N C O M PA N Y L T D .(An Enterprise of Bangladesh Power Development Board)

ANNUAL REPORT2014-2015

VisionTo become the leader in power

generation in Bangladesh in line with the government’s target to

provide electricity to all. MissionEmpowering Bangladesh by

expanding the company’s power generation capacity to meet the

growing demand of the country through efficient and effective management of facilities and

acquisition of capabilities for providing quality electricity

objectiVes To enhance electricity generation from existing 671 MW to 1500 MW by 2015.

To achieve auxiliary consumption to minimum 5% by 2015.

To maintain 90% availability of power plant by proper maintenance by 2015.

To establish a culture of safe operation to achieve zero accident level within 2016.

To identify surplus, obsolete and unwanted inventory and dispose the same by the end of 2015.

To provide need based training to each employee as part of Human Resource Development.

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Company InformatIon

apSCL at a GLanCe

tImeLIne

Corporate DIreCtory

notICe of the 15th annuaL GeneraL meetInG

performanCe at a GLanCe 2014-15

the BoarD

DIreCtorS’ profILe

fI nanCIaL hIGhLIGhtS

ChaIrman’S SpeeCh

orGanoGram

VaLue aDDeD Statement

VarIouS CommItteeS

CompLIanCe report on BaS & Bfr S

heaLth Safety & enVIronment poLICIeS anD Statement

report of auDIt CommIttee

BoarD’S report

aChIVementS

memoraBLe eVentS 2014-2015

auDIt report

proxy

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ANNEXED

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aShuGanj power StatIon Company LtD

Company InformatIon A shuganj Power Station Company Ltd. is one of the largest

power station in Bangladesh having capacity of about 16% (as on September 2015) of total electricity generation

capacity in the public sector of the country. At present the total capacity of its nine (9) units is 982MW. As a part of the Power Sector Development and Reform Program of the Government of Bangladesh (GoB), Ashuganj Power Station Company Ltd. (APSCL) has been incorporated under the Companies Act 1994 on June 28, 2000. The registration No. of APSCL is 40630 (2328)/2000. Ashuganj Power Station (APS) Complex (with its assets and liabilities) had been transferred to the APSCL through a provisional vendor’s agreement signed between BPDB and APSCL on May 22, 2003. All the activities of the company started formally on June 1, 2003. From that day, the overall activities of the company along with operation, maintenance and development of the power sector are vested upon a management team consisting of the Managing Director, Executive Director (Engineering), Executive Director (Finance) and Executive Director (Project & Planning). Its registered office is situated at Ashuganj, Brahmanbaria. The Company also purchased a fixed asset (owned flat) at Bijoy Nagore, Dhaka in 2012 having 4200 sqf worth of BDT 5.83 Crore. The flat is being used for various official purposes such as Board Meeting, Committee Meetings, Meetings with Foreign Delegates and so on. According to the Memorandum and Articles of the Association of the company most of total shares are held by BPDB and rest of the shares distributed among Ministry of Finance, Ministry of Planning, Power Division, MOPEMR & Energy Division.

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AnnuAl RepoRt 2014-2015

name of the unit year of Commissioning Installed Capacity (mw) present Capacity (mw)

unit-1 & 2 1970 128 100

unit-3,4&5 1986~88 450 450

CCpp (Gt-1,St) 1982~84 90 -

Gt-2 1986 56 40

50 mw 2011 53 53

225 mw (Simple Cycle) 2015 150 144

200 mw modular 2015 200 195

9 units total 1127 982

Electricity generated in this power station is supplied to the national grid and thereby distributed to the consumers throughout the whole country. This power station plays a significant role in the national economic development by generating about 16% (as on September, 2015) generation of the total generation in the public sector in the country. In this station, natural gas from Bakhrabad Gas Distribution Company Limited is used as primary fuel. Water from the river Meghna is used through in take channels for steam generation and cooling of the plants and some portion of the used water (after cooling) is thrown in to the river Meghna through discharge channels. The main portion of the used water from the discharge channels are used for irrigation in the local area in the dry season. It is known that about 36,000 acres of land of Ashuganj are irrigated by this water.

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apSCL at a Glance

» Date of incorporation : 28 june 2000 » Date of functioning : 1 june 2003 » No. of units : 9 (nine) » Generation capacity : 982mw » Authorized capital : tk. 3,000 crore » Paid up capital : tk. 662 crore » Company web site : www.apscl.com » E-Mail : [email protected] » Corporate office :

ashuganj power Station Company Ltd. ashuganj, Brahmanbaria-3402

» Dhaka Liaison Office : navana rahim ardent (8th floor), 185 Shahid Syed nazrul Islam Soroni, Dhaka.

» Business : power Generation » Legal Status : public Limited Company » Area of Land : 263.55 acres » Manpower : 544

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230 & 132 KV Grid

Medical Center

ExistinG infrastruCturE

Gas supply

Jetty Cranetraining Center

Workshop

residence

school

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tImelIne

1966 » first agreement signed

with a foreign construction company to establish thermal power plant

» two units (64*2 mw) construction work started

1970 » unit-2 (64mw) & unit-1

(64mw) Commissioned

1982 » Gt-1 (56mw) Commissioned

1984 » CC-St (34mw) Commissioned

1986 » Gt-2 (56mw) & unit-3

(150mw) Commissioned

1987 » unit-4 (150mw)

Commissioned

1988 » unit-5 (150mw)

Commissioned

2000 » Incorporated under companies law

2003 » provisional vendor’s agreement

signed with BpDB » Company activities formally started

2011 » 53mw Ge Commissioned » achieved “Best power Generating

unit” award for unit-3 in 2011. »

2012 » achieved trade finance award “Deals

of the year 2012”

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1982

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1998

2000-

2012

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2013 » unveiled plaque of foundation

stone of 225 mw CCpp, 450mw CCpp (South), 450mw CCpp (north) & 200mw modular power plant by honorable prime minister Sheikh hasina, people’s republic of Bangladesh

» procedure started for attaining ISo certification

2014 » retirement of Gt-1 & St unit

for site transferring of 225mw CCpp project

» achieved “Best Corporateaward-2014” from ICmaB

2015 » Commissioning of 225mw

CCpp & 200mw modular power plant

» Dpp of 400mw CCpp (east) approved in eCneC

» achieved international “the Green era award-2015” from Berlin, Germany

» apSCL entered in e-Gp (electronic Government procurement) system

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2014

2015

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Corporate DIrectory

ChAIRMAN Dr. Ahmad Kaikaus

DIRECTORS: Mr. Khandker Maksudul HassanDr. Md. Quamrul AhsanMr. Mamtaz Uddin AhmedMr. Sheikh Faezul Amin, PEngMr. A B M Mizanur RahmanMr. A. T. M. Zahirul Islam MajumderMr. Md. Shamsul Haque Mr. Kamal AhmedMr. Md. Mukammel Hoque Mr. S.M. Tarikul IslamMr. A M M Sazzadur Rahman

MANAGEMENT TEAMMr. A M M Sazzadur RahmanManaging Director (Addl. Charge) & Executive Director (Engineering)

Md. Sharafat Ali, ACMAExecutive Director (Finance) & Executive Director (P&P), Addl. Charge.

PROJECT DIRECTORSMr. Md. Abdus SamadSuperintendent Engineer (450MW CCPP South)

Mr. Kshitish Chandra BiswasSuperintendent Engineer (450MW CCPP North)

Mr. Ajit Kumar SarkerSuperintendent Engineer (225MW CCPP & 200MW Modular Power Plant)

Mr. Anwar Hossain Superintendent Engineer (400MW CCPP East)

OPERATIONAL MANAGEMENT TEAM Mr. Achinta Kumar SarkerChief Engineer

Mr. A K M YakubSuperintendent Engineer (Electrical Maintenance)

Mr. Ratan Kumar PaulDeputy General Manager (Finance & Accounts)

Mr. Md. Abdul MazidSuperintendent Engineer (Operation)

Mr. Shahalam KhanSuperintendent Engineer (Mechanical Maintenance)

DhAkA LIAISON OFFICE Navana Rahim Ardent (8th Floor), 185, Shahid Syed Nazrul Islam Soroni, Dhaka.

AuDITORSM/S SF Ahmed & Co. Chartered AccountantHouse # 51 (3rd Floor), Road # 9, Block-F, Banani, Dhaka-1213.

REGISTERED OFFICEAshuganj Power Station Company Ltd.. , Ashuganj, Brahmanbaria-3402

MAIN BANkERS Pubali Bank Ltd. EXIM Bank Ltd. Janata Bank Ltd. Standard Chartered BankHSBC

Ongoing Projects upcoming Projects

• 225MW CCPPP

• 450MW CCPP (South)

• 450MW CCPP (North)

• Ashuganj 400MW CCPP (East) Project

• 1320 MW Coal Fired Power Plant Project (Patuakhali Super Thermal Power plant)

• Ashuganj 80MWp Grid Tied Solar Power plant

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notIce of the 15th annuaL GeneraL meetinG

14th annual General meetInG

Notice is hereby given that the 15th Annual General Meeting of Ashuganj Power Station Company Ltd. will be held on Wednesday, December 23rd, 2015, 09 ‡cŠl 1422 e½vã at 7.00 P.M. at Bijoy Hall, Biddut Bhaban (Level-14), 1 Abdul Gani Road, Dhaka to transact the following businesses:

A g e n d A

1. to receive and adopt the Board’s report and the audited financial Statements of the company for the year ended 30 june 2015 together with audited report thereon.

2. to approve dividend for the year 2014-15 as recommended by the Board of Directors.

3. to elect Directors.

4. to appoint auditors for the year ending 30 june 2016 and fix their remuneration.

5. to transact any other business.

By the order of the board

Company Secretary Ashuganj Power Station Company Ltd. Date: 09 December 201525 AMÖnvqY 1422 e½vã

note:

A member entitled to attend and vote at the Annual General Meeting may appoint any person as a proxy to attend and vote instead of him. The proxy form, duly completed and stamped, must be deposited not later than 48 hours before the meeting.

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Performance at a GLanCe 2014-15

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the BoarD

From left to right

Mr. kamal Ahmed - Director, Mr. Md. Shamsul haque - Director, Mr. Mamtaz uddin Ahmed - Director, Mr. A. T. M. Zahirul Islam Majumder- Director, Dr. Md. Quamrul Ahsan- Director, Mr. A M M Sazzadur Rahman- Managing Director, Addl. Charge, Dr. Ahmad kaikaus- Chairman, Mr. khandker Maksudul hassan- Director, Mr. Sheikh Faezul Amin, PEng- Director, Mr. Md. Mukammel hoque - Director, Mr. S.M. Tarikul Islam- Director, Mr. A B M Mizanur Rahman & Mr. Md. Sarafat Ali - Executive Director (Finance)

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DIrectors’ profiLe

Dr. AhmAD KAiKAusChairman

Dr. Ahmad Kaikaus joined the Power Division in May, 2014. Prior to his joining at the Power Division of the

Ministry of Power, Energy and Mineral Resources, Dr. Ahmad worked for 3 years as the Deputy Chief of Party of the Policy Research and Strategy Support Program (PRSSP) at the International Food Policy Research Institute (IFPRI), which was funded by the United States Agency for International Development (USAID). He has an unusual combination of civil service experience in a developing country and high academic accomplishments with solid empirical research involvement. His civil service career provided him a unique opportunity to working in diverse places encompassing both rural and urban areas, regulatory and development agencies, and local government as well as ministerial positions. His academic and research background, on the other hand, made him well conversant of the development policy perspectives.

Dr. Kaikaus received his Master of Arts degree in Development Economics from the Center for Development Economics, Williams College, Massachusetts, USA, and PhD in Public Policy and Political Economy from the University of Texas at Dallas, Texas, USA. His research focus covers interdisciplinary subjects such as governance, poverty, development, labor market, migration, etc. Dr. Ahmad has published research papers and survey reports for IFPRI. His one of the significant journal articles was in the World Development Journal on the structural

transformation in Bangladesh economy. He has expertise on developing questionnaires and sampling frames for surveys. Along with his current government responsibilities, he is also researching on cluster-based economic transformation, fish value chain, rural non-farm economy, and public expenditure for economic development.

Dr. Ahmad Kaikaus joined the Bangladesh Civil Service (Administration) cadre on 21 January 1986. He has worked different levels of field administration such as Assistant Commissioner, Upazila Magistrate, and Upazila Nirbahi Officer. He also worked on deputation in several organizations that include Directorate of Accommodation, Department of Narcotics Control and Bangladesh Services Limited. At the Ministerial level, Dr. Ahmad worked for the Ministry of Public Administration, Ministry of Post and Telecommunications, and Economic Relations Division. Kaikaus also worked as part-time faculty at Collin County Community College in Texas, USA and at the American International University, Bangladesh. He regularly attends as guest speaker at the Public Administration Training Centre, Bangladesh Civil Service Academy, and the Dhaka University.

mr. KhAnDKer mAKsuDul hAssAnDirector

Mr. Khandker Maksudul Hassan, current Chairman of Bangladesh Power Development Board

(BPDB) joined APSCL as Director on July 20, 2015. Prior to secured the position

of the Chairman of BPDB Mr. Hassan served as Member (Distribution) of the concern for about one year where he successfully supervised the overall operation and maintenance of the total distribution system. Mr. Hassan also served as Chief Engineer (Generation), Chief Engineer (Distribution Project), Chief Engineer (Planning & Development) and Chief Engineer (Services) at BPDB for about three year. As a Chief Engineer of BPDB he supervised and monitored the performances/works of the offices of Directorate Diesel Generation, CERS, C&M & Electrical Equipment and also advised on the duties and responsibilities to Director, Superintended Engineer and Executive Engineer of the corresponding office/s, appraised of progress of works of CERS Department Tongi. He also appraised the progress of the clearing works of the materials/equipment, imported by the board through C&M Department, formulated annual development projects, evaluates progress of the projects, and conducted various research and development works. Prior to the assignment of Chief Engineer, Mr. Hassan served as Superintendent Engineer (Siddirong 450MW CCPP Project), Superintendent Engineer (CSO to Chairman), and Superintendent Engineer (Directorate of Design & Inspection-2) for more than two years. He also worked as Executive Engineer (Directorate of Design & Inspection-2), Executive Engineer (Meghnaghat 300MW CCPP Project) and Sub-Divisional Engineer (Directorate of Electrical Equipment). Mr. Hassan, a fellow member of “The Institutions of Engineers, Bangladesh,” started his career as an Assistant Engineer of BPDB following his completion of B.SC Engineering from Electrical and Electronic Engineering from Khulna Engineering College.

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Dr. mD. QuAmrul AhsAnDirector

Born in 1951, Dr. Md. Quamrul Ahsan, Professor of Electrical and Electronic Engineering of Bangladesh University of

Engineering and Technology (BUET) joined at Ashuganj Power Station Company Ltd as a Director in 2008. Dr. Ahsan is also Chairman of Procurement Review Committee of Ashuganj Power Station Company Ltd. After completing his graduation from Bangladesh University of Engineering and Technology (BUET) he obtained M.Sc Engineering from the same University in 1980. Afterwards, in 1984 Mr. Ahsan acquired Ph.D from the University of Ottawa of Canada. Dr. Ahsan, also was a visiting faculty member of the University of Bahrain, published more than eighty technical papers in the reputed national and international journals and conferences. He has been a reviewer of many national and international journals including IEE and IEEE. Dr. Ahsan has supervised sixteen postgraduate theses including a couple of Ph.D. He, an author of two books, was the Technical Chair of ICECE 2006, Project Manager of an international training and a course coordinator of a short course sponsored by USAID under SARI/Energy Program. Dr. Ahsan has also worked as a consultant of many important national projects. He, a Former Director of PGCB, has also been involved in the administrative works for instance Dean of the Faculty, Head of the Department and Hall Provost of Bangladesh University of Engineering and Technology (BUET).

Prof. mAmtAz uDDin AhmeD, fCmADirector

Prof. Mamtaz Uddin Ahmed, professor of Department of Accounting Information Systems of University of

Dhaka, accomplished his vivid academic feat from Department of Accounting of University of Dhaka. Afterward he obtained MBA from University of New Castle in USA. Prof. Ahmed earned FCMA from ICMAB in 1995 and was elected twice as President of the same entity. At present, he is a Council member of ICMAB. Alongside, Prof. Ahmed is a member of Board of Governors at Bangladesh Insurance Academy, Jury Board of Dhaka Stock Exchange and Expert Panel of Dhaka Stock Exchange. Prof. Ahmed joined Ashuganj Power Station Company Ltd. as Director on 2007. He is also an Independent Director of Al-Haj Textile Ltd. and a Director of Dhaka Power Distribution Company (DPDC) Ltd. In his long cherished academic career, Prof. Ahmed who is the Chairman of the Audit Committee of Ashuganj Power Station Company Ltd. attended various professional presentations across the globe. Born in 1958, Prof. Ahmed authored several research paper and publications on various issues.

mr. sheiKh fAezul Amin, Peng.Director

Mr. Sheikh Faezul Amin, Joint Secretary of Power Division, joined Ashuganj Power Station Company

Ltd as Director in 2012. At present Mr. Amin acts as member of SREDA (Sustainable & Renewable Energy Development Authority), which works for the promotion and development of sustainable energy, comparison of renewable energy, energy efficiency and energy conversion. He is also a member of Procurement Review Committee of Ashuganj Power Station Company Ltd. Mr. Amin completed his graduation in Mechanical Engineering from Bangladesh University of Engineering and Technology in 1988. Soon after completion of his study, he joined in the BCS Cadre of Roads and Highway in 1989, by the virtue of his merit and caliber. He served in Roads and Highway for quite a long period as Assistant Engineer Sylhet Division, Sub Divisional Engineer Sylhet Mymensingh& Dhaka, Executive Engineer Barishal Division and many other significant key positions where he had proved his excellence. In the succeeding years, his career track clocked respectable growth. Later Mr. Amin was moved to Power Division and promoted as Deputy Secretary. After couple of years, he reassigned to PSCDP of Power Division as Deputy Project Director (Technical). Mr. Amin, who was awarded Abul Kashem Award in 2008, also pursued his M.Sc in Engineering Management from Brunei University, West London, UK with excellent academic result. He, also an

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DIrectors’ profiLe

MBA, is privileged to be a part of a good number of local and foreign training which encompasses Purchase & Supply Chain Management, Performance Management, Bangladesh Solar Powered Irrigation Pump & Solar Home System, and Operation & Maintenance of Construction Machinery and so on. Born in 1965, Mr. Amin, a Life Fellow of Institute of Engineers of Bangladesh, is associated with various social clubs, organizations etc.

mr. A B m mizAnur rAhmAnDirector

Mr. A B M Mizanur Rahman joined as a Director of the Board of APSCL in 2015. He completed his Graduation

from the Department of Electrical Engineering of Bangladesh University of Engineering and Technology in 1980. Mr. Rahman, is a fellow of the Institution of Engineers, Bangladesh. After obtaining his Bachelor’s Degree Mr. Rahman started his career as Assistant Engineer of Bangladesh Power Development Board in March 1980. In his long demonstrative trail of career, Mr. Rahman passed several paradigms as Sub-divisional Engineer, Executive Engineer, Superintendent Engineer, Chief Engineer and so on. With the proven track record of success in the arena of Power Station Construction, Operation & Maintenance of Power Plant, Specialized Power Generation Project Management, Power Plant Training, Power Distribution and many other territories he became

Member (Distribution) of Bangladesh Power Development Board in 2015. Mr. Rahman took part in many training courses in Bangladesh and overseas regions. On different occasions of his service he visited a good number of countries across the globe.

mr. A.t.m.zAhirul islAm mAjumDerDirector

Born in 1957, Mr. A. T. M. Zahirul Islam Majumder joined in APSCL as a Director of the Board in 2015.

He completed his Graduation from the Department of Civil Engineering of Khulna Engineering College in 1980. After obtaining his Bachelor’s Degree Mr. Majumder started his career as Assistant Engineer of Bangladesh Power Development Board in March 1981. Mr. Majumder, is a life-fellow of the Institution of Engineers, Bangladesh. In his long demonstrative trail of career, Mr. Majumder passed several paradigms as Sub-divisional Engineer, Executive Engineer, Superintendent Engineer, Chief Engineer and so on. With the proven track record of success in the arena of Power Station Construction, Operation & Maintenance of Power Plant, Specialized Power Generation Project Management, Power Plant Training, Power Distribution and many other territories he became Member (Planning & Development) of Bangladesh Power Development Board in July 2015. Mr. Majumder took part in many training courses in Bangladesh and overseas regions.

On different occasions of his service he visited a good number of countries across the globe. He played vital role in handling the Inaugural Ceremony of Power Station Construction in various places and achieved the appreciation.

mr. mD. shAmsul hAQueDirector

Mr. Md. Shamsul Haque, also a director of FBCCI for three terms and nominated by Power Division,

joined Ashuganj Power Station Company Ltd as director in 2011.He is also a member of Procurement Review Committee of Ashuganj Power Station Company Ltd. Mr. Haque is a founder Chairman of M. Shamsul Haque Private Ltd. a Nagaon based eminent business entity. Being a prominent business figure, Mr. Haque was elected as Commercially Important Person (CIP) four times in a row and as Best Taxpayers for twice. He is a life time member of SAARC Chamber of Commerce and an EC Member of SAARC Chamber. He is also a member of Bangladesh Road Transport Authority, Nagaon. Born in 1951, the Freedom Fighter Mr. Haque obtained MSc from Rajshahi University. He, whose spouse Mrs. Shahin Monoara Haque, is a Member of Current Parliament, is well connected to various social initiatives and has a good travel record around the world on business and personal trip.

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mr. KAmAl AhmeDDirector

Mr. Kamal Ahmed joined as a Director of the Board of APSCL in 2014. Born in 1951, Mr. Ahmed completed his

graduation from Dhaka College in 1972. After completing his study, Mr. Ahmed engaged himself in the trade of frozen sea foods in 1975. He is former president of Seafood Export Agents Association of Bangladesh. Mr. Ahmed is engaged in various social activities. He is member of Red Crescent Society, Uttara Club and Dhanmondi Club. Mr. Ahmed is also a member of Bangladesh Awami League. At present he is the President of Bangladesh Awami League, Dhanmondi since 1999.

mr. muKAmmel hoQueDirector

Mr. Md. Mukammel Hoque, Deputy Secretary of Energy and Mineral Resources Division, was born in

the district of Mymensingh in 1972. He did his graduation from BUET in Chemical Engineering. He obtained MBA from University of Lincoln in the IIK. He also completed various training courses at home and abroad. He joined Bangladesh Civil Service Administration in 1998 and started his job as an Assistant Commissioner. He served in different positions in the field administration in several districts across the country. He also worked in the different ministries and since 2014 he has been working in the Energy and Mineral Resources Division under Ministry of Power, Energy and Mineral Resources. He joined the Board of Ashuganj Power Station Company Ltd in 2014.

mr. s.m.tAriKul islAmDirector

Mr. S.M.Tarikul Islam joined as a Director of the Board of APSCL in 2015. At present Mr. Islam is

serving as a Director of Prime Minister’s Office. Mr. Islam completed his graduation from Rajshahi University in 1994 and later on joined in the Administration Cadre of Bangladesh Civil Services. Started his career as an Assistant Magistrate Mr. Islam served different area of public administration of Bangladesh Government. Being an admin cadre, he served as Senior Assistant Magistrate, Deputy Collector, UNO, Senior Assistant Secretary and so on. As a part of his service, Mr. Islam took part in various training such as Law and Administration Course at BCS Administration Academy, Foundation Training Course at BPATC, Survey and Settlement Training and so on.

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fInancIal hiGhLiGhtS

2014-15 2013-14 2012-13 2011-12 2010-11

Operating Performance

Generation in Kwh 3,985,518,888 3,708,939,994 4,243,123,911 3,900,419,090 3,397,985,758

Revenue 7,094,702,639 6,971,021,960 7,537,809,811 7,302,150,915 6,621,164,145

Cost of Sales 5,573,002,554 5,457,215,490 5,750,586,330 5,505,156,715 4,992,437,081

Gross Profit 1,521,700,085 1,513,806,470 1,787,223,481 1,796,994,200 1,628,727,064

Operating Profit 520,298,467 750,393,723 1,135,787,758 1,296,218,128 1,187,018,412

Net Profit 367,634,407 681,179,956 718,594,879 618,486,464 616,341,270

Financial Position

Total Asset 77,516,624,833 55,122,428,169 43,264,051,182 30,851,295,691 32,399,497,568

Total Liability 61,538,646,486 39,479,009,229 29,358,999,998 17,631,764,386 19,798,452,727

Total Equity 15,977,978,347 15,643,418,939 13,905,051,184 13,219,531,305 12,601,044,841

Net Fixed Asset 19,839,586,457 21,586,111,577 16,778,318,947 17,804,035,043 18,943,313,329

Current Asset 5,083,144,790 4,455,070,967 6,208,071,774 5,066,425,747 6,136,279,874

Current Liability 2,116,362,792 1,812,000,162 3,052,772,898 739,195,005 3,389,745,581

Financial Ratios

Current Ratio 2.40:1 2.46:1 2.03:1 6.85:1 1.81:1

Gross Profit Margin 21.45% 21.72% 23.71% 24.61% 24.60%

Operating Profit Margin 7.33% 10.76% 15.07% 17.75% 17.93%

Net Profit Margin 5.18% 9.77% 9.53% 8.47% 9.31%

Return on Net Fixed Assets 1.85% 3.16% 4.28% 3.47% 3.25%

Return on Equity 2.30% 4.35% 5.17% 4.68% 4.89%

Debt Equity Ratio 3.08 1.75 1.15 1.28 1.3

Debt Service Coverage 3.5 3.67 3.82 4.05 3.7

Average Collection Periods in Months 4.26 6.04 6 4.14 4.25

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chaIrman’s SpeeCh

To meet such mounting demand for electricity, the present Government has initiated strategies of generating 24,000 MW by 2021 and 40,000MW by 2030. In line with the Government’s Master Plan, APSCL also undertakes several strategies to enhance its generation capacity by successfully commissioning eleven (11) power plants so far while two (2) other power plants are under implementation stage.

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Good evening and warm welcome to all in this 15th Annual General Meeting of the Ashuganj

Power Station Company Ltd. (APSCL). On this grand occasion, I would like to express my

sincere gratitude to you for spending some of your precious time for attending the AGM.

Your kind presence and valuable participation in the proceedings of the meeting would

help us in improving performance of the company. By the grace of Almighty Allah we could

present you the Annual Report containing Boards’ Report and audited financial statements

for the year ended 30 June, 2015 along with report of the Auditors. The state owned

Ashuganj Power Station Company Ltd. (erstwhile Ashuganj Power Station Complex) started

its voyage in 1970. By this time it has become the pioneer power generation company in

Bangladesh. Over the years, the company paints a truly inspirational development by

successfully commissioning eleven (11) units in its fleet while two (2) other projects are

under implementing stage which would likely to be commissioned within next one year.

Dear Shareholders

at present, by dint of industrialization, modernization and economic pace, the demand for electricity is mounting day by day in Bangladesh. to meet such mounting demand for electricity,

the present Government has initiated strategies of generating 24,000 mw by 2021 and 40,000mw by 2030. In line with the Government’s master plan, apSCL also undertakes several strategies to enhance its generation capacity by successfully commissioning eleven (11) power plants so far while two (2) other power plants are under implementation stage. moreover in order to escalate its generation capacity furthermore from the current generation capacity 982mw to 4148mw by 2021 and 6835mw by 2030, the development process is undergoing.

Its my pleasure to inform you that since the inception of present Government led by honorable prime minister Sheikh hasina, it has been working relentlessly for the developments of the power sector. as a part of such initiatives power sector in Bangladesh has recently experienced a landmark by successfully commissioning 100th power plant on october 8, 2015. on this day honorable prime minister of peoples republic of Bangladesh has inaugurated three

power plants through videoconferencing. the inaugurated power plants are ashuganj 225-mw Combined Cycle power plant, ashuganj 200-mw modular power plant and ashuganj midland 51-mw power plant.

of these three power plants the simple cycle portion (144mw) of ashuganj 225-mw Combined Cycle power plant has came into

generation from the last week of april 2015 while the combined cycle portion has came into generation from December 2015. the estimated cost of this project is $256 million, 75.35% of which is eCa (export Credit agency) backed finance.

the ashuganj 200-mw modular power plant has been built under public private partnership (ppp) with united Group where apSCL holds 29% share. the other project ashuganj midland 51-mw power plant has built by private entrepreneur which belongs to private Ipps. apart from these power plants, apSCL is currently implementing two other projects_ 450mw CCpp (South) and 450mw CCpp (north) with a cost of tk. 3792 crore and tk. 3,400 crore respectively. of this projects, 450mw CCpp (South) is expected to come into generation from january 2016 while the expected commercial date of operation of 450mw CCpp (north) is june 2017. the overall physical progress of 450mw CCpp (South) and 450mw CCpp (north) are 98.08% and 52.19% respectively while the financial progress of the said projects are 83% and 38.76% respectively.

22


chaIrman’s SpeeCh

23


In addition of these under implementation projects, apSCL has under taken some other projects in line with Government’s long term vision for the power sector and to achieve apSCL’s own master plant within 2030. apSCL has recently got the approval from the concerned authority for the implementing 400mw CCpp (east) project which will be replaced at the site of retired Gt-1 & 2 and St units. the estimated cost of the project is tk. 2931.36 crore which will be financed by developments partners like aDB & IDB.

In order to assuage the dependency over the natural gas, apSCL envisages to implements some other power plants based on alternative sources of energy. Keeping this in consideration, apSCL undertakes 1320mw Coal Based power plant at patuakhali region. Besides this project, apSCL also strides towards renewable energy by implementing solar based power plants having 80mwp. the administrative approval for the acquisition of the land for the said two projects have been given form the concerned ministry.

It is expected that by the dint of the implementation of these projects, the total generation capacity of ashuganj power Station Company Ltd. will be 6,835mw by 2030 and by this virtue apSCL, hopefully, will play the protagonist role in the power sector of Bangladesh.

Distinguished ShareholdersI am happy to inform you that though we have overcome so many impediments during the financial year under review, by the grace of almighty allah and due to sincere efforts of Board, devotion of management team and assiduous workforce, the overall performance of the company is encouraging. In fy2014-15 we have dispatched 3.9 giga watt-hour electricity to the national grid against 3.7 giga watt hour in the preceding year. we have earned net profit of BDt 36.76 crores in fy2014-15. our asset grew up by 40.63% in fy 2014-15 while our equity increased by 2.14%. Capital work in progress has hiked tremendously by 84.17%.

present Board was elected in the 14th annual General meeting held on 29th September, 2014. as per guidelines of the aGm, the Board chalks out detailed plans and programs. In order to ensure good corporate governance the Board runs the affairs of the company by maintaining transparency and accountability. management of the company ensures implementation of decisions taken by the Board. the Board also gave due importance to the preventive maintenance and timely procurement of machineries and spares.

honorable Shareholderson behalf of the Board of Directors, I would like to express my gratitude to power Division, ministry of power, energy and mineral resources for guiding apSCL constantly, giving prompt decision in the matters referred to them, under the able leadership of our honorable prime minister, honorable energy advisor, honorable State minister, Senior Secretary of pmo, Secretary of power Division and other concerned officials of the ministry who are working relentlessly to combat the power crisis of the country.

I would like to extend heartfelt thanks and gratitude to ministry of planning, finance Division, economic relation Division, energy Division, ministry of Law, ministry of Commerce, Banking Division, national Board of revenue, Bangladesh Bank, petrobangla, Bakhrabad Gas t & D Co. Ltd., aDB, IDB and other Development partners, janata Bank, exIm Bank, Standard Chartered Bank, hSBC and other financial institutions for their valuable help and assistance.

I acknowledge with thanks to the BpDB management, especially the Chairman for his wholehearted interest and support for expansion and running of the company.

I express my sincere thanks to Board members for their continuous support and contribution. I also acknowledge the contribution of the members of the management and all employees of apSCL for their sincere and hard work. I wish to express my sincere appreciation to the entire stakeholders especially to the people and administration of ashuganj for their wholehearted co-operation and support for the wellbeing of the company.

I expect that in the coming days the company would be able to avail similar assistance and co-operation from all concerned in fulfilling our responsibilities.

Before concluding I regret to all of you on behalf of the Board of Directors of apSCL for any undesirable incidents occurred in the arrangement of this aGm.

I wish you all a prosperous 2016 and wellbeing for all of you and family members. Let us pray to almighty allah for peace and good health for all of us.

with Best regards

Sincerely yours

Dr. Ahmad kaikausChairmanashuganj power Station Company Ltd. &additional Secretary power Divisionministry of power, energy and mineral resources Government of the people’s republic of Bangladesh

24


orGanoGram

XEN (HRD)

Deputy Manager(HRM)

Asstt. Manager(Labor & Welfare)

Head Master(School)

Deputy Manager (Security & Discipline)

Sr. Medical Officer(Medical Center)

Sub-Divisional Engineer (Document

Centre)

Dy. Manager (Internal Audit &

Control)

Manager (HRM) Manager(Accounts)

Manager(Finance)

Manager(Procurement)

Manager,(Safety

& Environment)

XEN, Planning &

Development

Manager (MIS & ICT)

Manager (Health, Safety &

Environment)

XEN (Operation), U-1,2 & NWXEN (Operation), U-3,4&5XEN (Operation), CCPPXEN (Operation), 50MW GEXEN (Efficiency & CO)Manager (Chemical)XEN (Shift) -4

XEN (Generator) XEN (Substation)XEN (Instrumentation &

Control) (Block-A)XEN (Instrumentation &

Control) (Block-B)XEN (Electrical &

Instrumentation), CCPPXEN (Civil)

XEN (Boiler)XEN (Turbine) XEN (Workshop)XEN (Mechanical), CCPPManager (Store)

XEN, Electrical XEN, Mechanical XEN, CIVILManager (Accounts)



Superintending Engineer(Operation)

Deputy General manager (Finance & Accounts)

Company Secretary(Deputy General manager)

Superintending Engineer(Electrical

Maintenance)

Superintending Engineer(Mechanical

Maintenance)

Superintending Engineer(Planning &

Development

Project Director,225MW CCPP

Project Director, 450MW CCPP

(North)


(South)

Chief Engineer(Operation & Maintenance)

Managing Director

BOARD OF DIRECTORS

Executive Director(Engineering)

Executive Director(Planning & Project)

Executive Director(Finance)

* XEN = Executive Engineer

25


XEN (HRD)

Deputy Manager(HRM)

Asstt. Manager(Labor & Welfare)

Head Master(School)

Deputy Manager (Security & Discipline)

Sr. Medical Officer(Medical Center)

Sub-Divisional Engineer (Document

Centre)

Dy. Manager (Internal Audit &

Control)

Manager (HRM) Manager(Accounts)

Manager(Finance)

Manager(Procurement)

Manager,(Safety

& Environment)

XEN, Planning &

Development

Manager (MIS & ICT)

Manager (Health, Safety &

Environment)

XEN (Operation), U-1,2 & NWXEN (Operation), U-3,4&5XEN (Operation), CCPPXEN (Operation), 50MW GEXEN (Efficiency & CO)Manager (Chemical)XEN (Shift) -4

XEN (Generator) XEN (Substation)XEN (Instrumentation &

Control) (Block-A)XEN (Instrumentation &

Control) (Block-B)XEN (Electrical &

Instrumentation), CCPPXEN (Civil)

XEN (Boiler)XEN (Turbine) XEN (Workshop)XEN (Mechanical), CCPPManager (Store)




Superintending Engineer(Operation)

Deputy General manager (Finance & Accounts)

Company Secretary(Deputy General manager)

Superintending Engineer(Electrical

Maintenance)

Superintending Engineer(Mechanical

Maintenance)

Superintending Engineer(Planning &

Development

Project Director,225MW CCPP


(North)


(South)

Chief Engineer(Operation & Maintenance)

Managing Director

BOARD OF DIRECTORS

Executive Director(Engineering)

Executive Director(Planning & Project)

Executive Director(Finance)

* XEN = Executive Engineer

FUEL COST

EMPLOYEE & OTHER COST

DEPRECIATION EXPENSES

INTEREST EXPENSE

NATIONAL EXCHEQUER

NET INCOME

Distribution of Added Value: 2014-15


26


Value aDDeD Statement

2014-15 2013-14

Amount in BDT % of Total Amount in BDT % of Total

Composition of Value Addition

Revenue 7,094,702,639 98.11% 6,971,021,960 96.21%Other Income 136,673,029 1.89% 211,208,425 2.92%Provision No Longer Required Return Back 0.00% 63,092,822 0.87%Total Added Value 7,231,375,668 100.00% 7,245,323,209 100.00%

distribution of Added Value

Fuel Cost 3,644,633,696 50.40% 3,531,423,375 48.74%Employee & Other Cost 1,186,229,076 16.40% 925,860,299 12.78%Depreciation Expenses 1,766,923,120 24.43% 1,803,403,561 24.89%Interest Expense 165,955,369 2.29% 183,456,017 2.53%National Exchequer 100,000,000 1.38% 120,000,000 1.66%Net Income 367,634,407 5.08% 681,179,955 9.40%Total Distributed Value 7,231,375,668 100.00% 7,245,323,209 100.00%

FUEL COST

EMPLOYEE & OTHER COST

DEPRECIATION EXPENSES

INTEREST EXPENSE

NATIONAL EXCHEQUER

NET INCOME



27


COMPOSITION OF TOTAL EXPENSES

2014-15 2013-14

Amount in BDT % of Total Amount in BDT % of Total

Fuel Cost 3,644,633,696 53.10% 3,531,423,375 53.80%

Employee & Other Cost 1,186,229,076 17.28% 925,860,300 14.10%

Depreciation Expenses 1,766,923,120 25.74% 1,803,403,561 27.47%

Interest Expense 165,955,369 2.42% 183,456,017 2.79%

National Exchequer 100,000,000 1.46% 120,000,000 1.83%

Total 6,863,741,261 100.00% 6,564,143,253 100.00%

Fuel Cost

Employee & Other Cost

Depreciation Expenses

Interest Expense

National Exchequer

28


VariouS commIttees

Audit Committee Recruitment & Promotion Committee Procurement Review Committee

prof. mamtaz uddin ahmed -Chariman

mr. S.m. tarikul Islam -member

mr. md. mukammel hoque -member

mr. Kamal ahmed- member

Dr. ahmad Kaikaus -Chairman

mr. Khandker maksudul hassan -member

mr. a.t.m. Zahirul Islam majumder-member

Dr. md. Quamrul ahsan -Chairman

mr. a B m mizanur rahman -member

mr. md. Shamsul haque –member

mr. Sheikh faezul amin- member

there are three standing committee formed by the board members. the activities of the committees are presented below:

Audit Committee: the audit Committee is formed with members having wide experience in the field of finance and accounting with a view to oversee the Company’s financial aspects as well as the adequacy and accuracy of its internal control system. the said committee is comprised of three members headed by a Chairman and with three other members. the committee holds 9 meetings in the year 2014-15.

Recruitment & Promotion Committee: the committee, is formed with three members headed by a Chairman with two other members having well acquainted in the field of human resource in order to oversee the performance of the company’s human resources. the committee holds 6 meetings in the year 2014-15.

Procurement Review Committee: the procurement review Committee is formed with members having good experience in technical and financial issues to ensure the quality and efficiency of Company’s procurement System. the committee holds 9 meetings in the year 2014-15.

29


comPlIance rePort on BaS & BfrS

SL No. BAS Title BAS Effective Date Remarks

BaS-01 presentation on financial Statements adopted on or after 01.01.07 applied

BaS-02 Inventories adopted on or after 01.01.07 n/a

BaS-07 Statement of Cash flows adopted on or after 01.01.99 applied

BaS-08 accounting policies, Changes in accounting estimates and errors adopted on or after 01.01.07 applied

BaS-10 events after the balance sheet Date adopted on or after 01.01.07 applied

BaS-11 Construction Contract adopted on or after 01.01.99 n/a

BaS-12 Income taxes adopted on or after 01.01.99 applied

BaS-16 property, plant & equipment adopted on or after 01.01.07 applied

BaS-17 Leases adopted on or after 01.01.07 n/a

BaS-18 revenue adopted on or after 01.01.07 applied

BaS-19 employee Benefits adopted on or after 01.01.04 applied

BaS-20 accounting of Government Grants and disclosure of Government assistance adopted on or after 01.01.99 applied

BaS-21 effects of Changes in foreign exchange Changes adopted on or after 01.01.07 applied

BaS-23 Borrowing Cost adopted on or after 01.01.10 applied

BaS-24 related party Disclosure adopted on or after 01.01.07 n/a

BaS-26 accounting and reporting by retirement Benefit plans adopted on or after 01.01.07 applied

BaS-27 Consolidated and separate financial statements adopted on or after 01.01.10 n/a

BaS-28 Investments in associates adopted on or after 01.01.07 n/a

BaS-29 financial reporting in hyperinflationary economics not yet adopted by ICaB n/a

BaS-31 Interest in joint ventures adopted on or after 01.01.07 n/a

BaS-32 financial instruments presentations adopted on or after 01.01.10 applied

BaS-33 earnings per share adopted on or after 01.01.07 n/a

BaS-34 Interim financial reporting adopted on or after 01.01.99 n/a

BaS-36 Impairment of assets adopted on or after 01.01.05 applied

BaS-37 provisions, contingent liabilities, and contingent assets adopted on or after 01.01.07 applied

BaS-38 Intangible assets adopted on or after 01.01.05 applied

BaS-39 financial instruments: recognition and measurement adopted on or after 01.01.10 applied

BaS-40 Investment property adopted on or after 01.01.07 n/a

BaS-41 agriculture adopted on or after 01.01.07 n/a

SL no. BfrS title adoption Status of ICaB remarks

IfrS-1 first time adoption of international financial reporting standards adopted as BfrS 1, effective on or after 01.01.09 n/a

IfrS-2 Share based payments adopted as BfrS 2, effective on or after 01.01.07 n/a

IfrS-3 Business combination adopted as BfrS 3, effective on or after 01.01.10 n/a

IfrS-4 Insurance contracts adopted as BfrS 4, effective on or after 01.01.10 n/a

IfrS-5 non current assets held for sale and discontinued operation adopted as BfrS 5, effective on or after 01.01.07 n/a

IfrS-6 exploration for and evaluation of mineral resources adopted as BfrS 6, effective on or after 01.01.07 n/a

IfrS-7 financial instruments: disclosures adopted as BfrS 7, effective on or after 01.01.10 applied

IfrS-8 operating segments adopted as BfrS 8, effective on or after 01.01.10 n/a

30


health safety & enVIronment PolIcIes and Statement

A shuganj power Station Company Ltd. (APSCL) hSE vision

is an accident free workplace, with no harm to people

and continuously decreasing environmental impacts of

business activities. It commits to provide a safe and healthy work

environment and ensuring that all activities are conducted in a

manner that protects the environment.To achieve this commitment,

its health, Safety and Environmental (hSE) management system

drives continual improvement, outlines hSE accountabilities and

requires that we:

• Identifyandmanageriskstoaslowasreasonablypracticablewherethey have the potential to cause an injury or ill health to people, or unacceptable impacts on the environment or the community.

• Providesafeworkplacesandsystemsofwork,empoweremployees,contractors and other stakeholders to address unsafe or hazardous situations and carry out their work in a manner that does not present a risk to themselves, others or the environment.

• Setobjectives,targetsandPlanswhichseektoimproveperformance in hSe.

• CommittothepreventionofPollution.

• EnsurecompliancewithapplicableHSElegalrequirementsandother hSe commitments.

• RequirecontractorsandotherstakeholderstomanageHSEusingstandards and practices that comply with this policy.

• ReviewandreportHSEperformanceregularly.

the entire line management is responsible for establishing and overviewing apSCL commitment to manage hSe in accordance with this policy and monitoring the performance of the Company with respect to its implementation.

It is here to mention that, apSCL proudly proclaims that it has worked 812 days in a row without a recordable injury in its work station. moreover the ongoing project site is free from any type of heath hazardous activities.

we recognize that the management of employee’s health and Safety at work and the minimization of our adverse environmental impact are a prime duty and responsibility of the management. we are committed to continuously improve our health, safety and environmental (hSe) performance.ashuganj power Station Company Ltd. (apSCL) ensures the quality, health & safety, environment and social responsibility, creating sustainable added value to our employees, clients and other stakeholders.

Our principles: we continually strive to create a safe workplace for our employees and contract personnel, thus avoiding accidents and occupational illness.we believe that:

• Nojobisworthdoingifitcannotbedonesafely;allworkrelatedincidents can be prevented.

• Healthandsafetyatworkistheresponsibilityofeveryemployee,contractor and visitor.

• Weallcontributetoprotectingthenaturalenvironment.

• Itistheresponsibilityofourmanagementtoprovidetheresourcesnecessary to implement this policy.

• Ensuresustainableprogressthroughinternalandexternalaudits.

Our commitments: the entire line management, supported by our internal hSe network, is accountable for the implementation of this hSe policy and shall remain committed to:

• Protectthehealth&safetyofouremployees,visitors,contractorsand clients.

• Preventpollution;minimizeourresourceuseandwastegenerationthrough sustainable development initiatives.

• IncreaseouremployeeawarenessofHSEconcernsandissues.

• ComplywithrelevantHSElegislation,Groupandotherapplicablerequirements.

• Providethetools,internalHSEresourcesandtrainingnecessaryforthe implementation of effective hSe management systems.

the apSCL hSe policy is our core value to achieve our vision of Zero accidents, illness and adverse environmental impact

31


report of auDIt commIttee

Audit Committee Report: the Board of Directors of ashuganj power Station Company Ltd. has constituted an audit Committee comprising following members

• Prof.MamtazUddinAhmed,FCMA-Chairman

• Mr.S.M.TarikulIslam-Member

• Mr.Md.MukammelHoque-Member

• Mr.KamalAhmed-Member

Purpose of Audit Committee: the purpose of the audit Committee is to ensure and to improve the adequacy of internal control system and provides the updated information to the Board of Directors. the Committee is empowered to examine the matter relating to the financial and other affairs of the company. the key responsibilities of the audit Committee include, among others:

• Overseeingthecompany’sfinancialreportingprocessanddisclosureoffinancialinformationtoensurethatthefinancialstatementsarecorrect, sufficient and credible

• Monitortheintegrityofthefinancialreportingprocessensuringcompliancetoaccountingpolicies,standardsandprinciples

• Monitorinternalcontrolandbusinessriskmanagementprocess

• Overseehiringandperformanceofexternalauditors

• Monitorandreviewtheeffectivenessofinternalauditfunction

• OthermatteraspertermsofreferenceoftheAuditCommittee.

Activities carried out by the Audit Committee:

• Thecommitteeoverseeingthefinancialreportingprocess,reviewedandrecommendedtotheBoardofDirectortoapprovetheannual,halfyearly and quarterly financial statements.

• Reviewedandrecommendedtotheboardofdirectors’toapprovetherevisedrevenuebudget,capitalbudgetandprojectdevelopmentbudget for the year 2014-15 and proposed revenue budget, capital budget and project development budget for the year 2015-16.

• OverseeingthehiringandperformanceofexternalauditorsSFAhmed&Co.CharteredAccountants.

the committee found adequate arrangement to present a free and fair view of the activities and the financial status of the company and did not find any material deviation, discrepancies or any adverse finding or observation in the areas of reporting.

Prof. Mamtaz uddin Ahmed, FCMA Chairman audit Committee

32


BoarD’s report

The Board of Directors of Ashuganj Power Station Company Ltd. has the pleasure in presenting to the Honorable Shareholders the 15th Annual Report and Audited Financial Statements for the year 2014-15 together with the Report of the Auditor. A review of this report would reveal continuous growth of the company amidst competition and adversities.

Macroeconomic Overview in 2014-15

following the further slowdown in the emerging markets and a weaker recovery in the advanced economies, global growth subdued in the first half of fy2014-15. according to the estimation made by Imf (International monetary fund) on its world economic outlook (weo), global growth is now projected at 3.1% for the next fiscal. the growth is projected to decline in emerging market and developing economies while growth in advanced economies is expected to pick up slightly relative to the preceding year. for emerging and developing economies the downside risks have slightly risen due to declining commodity prices, depreciating emerging market currencies, and increasing financial market volatility.

on the plus side, domestic growth held up well in fy2014-15, thanks to the necessary and supportive measures taken by the government, resilience economy, brisk domestic demand, milestone remittances sent by the expatriates, stable financial market, controlled inflation and higher public and private investment. however the fiscal kicked off with a political agitation which took a toll in the transport services, exports, and private investment. Government has successfully tame the inflation by the dint of keeping large public stocks of food grains, normal weather, a supportive monetary policy, and lower global food and commodity prices that a steady exchange rate allowed to passed through. the country is hopefully to produce a growth in GDp in the next fiscal following the expectation of rise in exports in uS and euro Zone, strong expansion in remittances, boosted consumption demand, hike in private and public investment, increased spending in the aDp (annual Development program) and stabilized political situation. Power Sector in Bangladesh

CEI BPDB REB DPDC DESCO

POWER CELL

Ministry of Power, Energy and Mineral Resources

Energy and Mineral Resources Division BERC

PGCB APSCL EGCB NWPGCL WZPDCL

Power Divition

IPPsPBS

Rural Power Co. Ltd.

P R E S E N T S T R U C T U R E O F P O W E R S E C T O R

33


electricity is the most potential for foundation of economic growth of a country and constitutes one of the vital infrastructural inputs in socio economic development. the world faces a surge in demand for electricity that is driven by such powerful forces as population growth, extensive urbanization, industrialization and the rise in the standard of living. Considering this issue as prime focus the present government

has put utmost importance on the power sector. the government has doubled the allocation for power sector in the budget 2015-16 at tk. 16,503 crore from tk. 8,386 crore in the previous fiscal.

Due to the nature of availability of fuel for electricity, Bangladesh has to rely heavily on the natural gas for the generation of electricity. however as such natural resources are limited and are depleting rapidly, therefore the government has to unearth some other alternative sources of fuel for the generation of electricity. Keeping this issue in consideration the government has said in the proposed budget for 2015-2016 that it needs to finalize programs within 2015 for the installation of power plants in the country, making coal the prime fuel for the plants. the government’s vision statement for 2021 targets

electricity for all which will require the targets for adequate volume of electricity, a large number of baseline power plants to be installed and made functional. these power generation projects will require massive investments such as 1,320mw rampal coal-fired power plant, 1,200mw matarbari coal-fired power plant, 1,200mw maheshkhali coal-fired power plant and 1,320mw patuakhali (paira) power plants, 2,000mw rooppur nuclear power plant.

Success Story of Power Sector

following the gap between supply and demand of electricity in the last several years, Bangladesh has been suffering from acute load shedding. the per capita generation was only 220Kwh while only 47% population had access to electricity in the year 2009. following the necessary measures such as liquid fuel based rental and peaking power plants installed for temporary basis taken by the government in order to mitigation of huge demand for electricity at present about 74% population has the access to electricity while the per capita generation has amplified at 371Kwh. Such movements leads the country towards blooming economic growth, rapid urbanization and increased industrialization and extensive sustainable development structure.

Achievement

• Constructionof5961MWcapacitybasednewpowerplants

• Import500MWofelectricityfromIndia.

• PowerGenerationcapacityincreasedto11,877MWfrom4942mw

• Highestpeakgenerationincreasedto8177MW(asonAugust13,2015) from 4130 mw

• Accesstoelectricityraisedto74%from47%

• Percapitagenerationincreasedto371kWhfrom220kWh

• Provideelectricityto15millionoffgridnewconsumersbyinstalling 3.3 million ShS

• ExtendedconsumerservicesbyintroducingMobilephoneandon-line billing system

• AgreementwassignedwithRussianFederationforinstallationof2,000 mw capacity nuclear power plant

• EnactedSustainableandRenewableEnergyDevelopmentauthority (SreDa) act

• InitiativesaregoingontoimportpowerfromIndia,Nepal,Bhutanand myanmar.

• Introducedinnovativefinancinginpowersector.

Encouraging Development in Power Sector

on october 8, 2015, honorable prime minister of peoples republic of Bangladesh has inaugurated three power plants through videoconferencing. the inaugurated power plants are ashuganj 225-mw Combined Cycle power plant, united ashuganj 200-mw modular power plant and ashuganj midland 51-mw power plant. on that day the government achieved another milestone by commissioning 100th power plants in the country. Such proliferation of the power plants must enlarge the country’s energy portfolio and consequently

Power Plants: Fuel Mixed

Power Generation: APSCL's Contribution

Imported

Hydro

HSD

HFO

Gas

Coal

Other Power Plants

APSCL

4%

2%

8%

21%

63%

2%

91%

9%

34


BoarD’s report

35


decrease the demand and supply side gap. the estimated annual loss in the industrial output is $1 billion due to the power outage in the country. recognizing this issue the government has constructed 73 new power plants since its assumption of office in 2009. there was a severe crisis of electricity when the present government took office. In order to address the power crisis the government has designed short, medium and long term strategy to increase power supply based on introduction of fuel mix (gas, coal, liquid fuel, nuclear energy and renewable), demand side management, energy efficiency and conservation. after assessing the latent demands, the government has revised upward its targets for increasing power generation at regular intervals. present government is committed to achieving self-sufficiency in the power sector. In this view it has gradually eased out the quick rental power plants. another development story is the construction of nuclear based power plant at rooppur which will make a glossy print of the power sector of the country.

APSCL’s Performance in FY2014-15

the state owned ashuganj power Station Company Ltd. (the erstwhile ashuganj power Station Complex), started its voyage in 1970, the first mover in pioneering power generation in Bangladesh. through its journey of more than four decades it experienced amazing highs and several curious twists. over the years, the company paints a truly inspirational development by successfully commissioning eleven (11) units in its fleets while two (2) other projects are going to be commissioned within short span of time which were unveiled by the honorable prime minister on june 2013. In the fy-2014-15, the company witnessed a brisk workflow of its four projects (1325mw) which makes the surface of apSCL a bustle thoroughfare. Its projects growth picked up space in the fy2014-15. of the four projects, simple cycle of 225mw CCpp has come into generation from the last week of april 2015 while the combined cycle is expected to come into generation at mid of December 2015. the 200mw modular project (of which apSCL owns 29% share) has come into generation from october 2015. this two projects along with another power plant owned by private sector were inaugurated by the honorable prime minister of peoples republic of Bangladesh on october 8, 2015. the expected commercial date of operation of 450mw CCpp (South) is january 2016. the civil works and other related works of 450mw CCpp (north) is on agile move. this project is expected to come into generation from june 2017. moreover, apSCL has undertaken one more aDB & IDB financed project namely 400mw (east) which will cost approximately tk. 2931.36 crore. apart from the development of the projects, the operating and maintenance performance of the company is quite satisfactory. though the company has faced several hurdle in the considering period, it successfully overcome all such impediments and make a decent picture in the said period. following the site transfer of 225mw CCpp, the company had to retire two of its units (Gt-1 & St) since january 2014 which impacts on generation and electricity sales accordingly. Consequently declined sales took a toll on the other variable of the income statement. however the company was superbly supersede such shock and made the overall financial position stable in the considering period by showing better performance and efficiency. In a nutshell the overall financial and operating performances of the company masks into glossy print. the overall performances of apSCL in fy2014-15 are demonstrated below:

Operating Performance: During the fy 2014-15, the company supplied 3,985.51 million Kwh of electricity into the national grid which is 7.46% more than that of the previous period. In the considering period, the company earned BDt 7,094.70 million which is 1.77% more than that of the period. accordingly fuel cost of apSCL has increased by 3.21% in the said period as against corresponding period of the previous fiscal.

monthsamount in BDt amount in Kwh amount in BDt

Total Revenue Fuel Cost Supplied Electricity Per unit Revenue Per unit Fuel Cost

jul-14 623,396,260 337,384,591 366,071,373 1.70 0.92

aug-14 606,022,878 314,263,016 350,605,418 1.73 0.90

Sep-14 557,635,472 270,356,705 308,209,365 1.81 0.88

oct-14 567,662,064 283,041,327 313,299,099 1.81 0.90

nov-14 535,167,887 255,709,225 271,971,674 1.97 0.94

Dec-14 550,598,272 264,951,803 284,530,753 1.94 0.93

jan-15 545,031,060 256,954,043 279,593,984 1.95 0.92

feb-15 554,683,177 270,033,395 292,413,726 1.90 0.92

mar-15 599,830,392 313,382,995 340,374,696 1.76 0.92

apr-15 782,603,966 332,052,882 370,092,727 2.11 0.90

may-15 709,524,379 359,252,084 392,337,506 1.81 0.92

jun-15 732,498,138 387,120,010 416,018,566 1.76 0.93

Total 7,094,702,639 3,644,633,696 3,985,518,888 1.78 0.91

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Financial Performance: In the fy2014-15, the company earned BDt 7,094.70 million from sales of electricity which is 1.77% more than that of the previous period. Such increase in sales is mainly attributed to the commencement of the generation of simple cycle of 225mw CCpp from the last week of april 2015. the variables in the balance sheet items show some impressive picture of the company in fy2014-15. total assets clocked 40.63% mounting, a respective growth in the considering period with a progression of 2.14% in total equity. on the liability side, total liability moves on upward by 55.88% in fy 2014-15 compared to the preceding year. Capital works in progress accelerate tremendously with 84.17% growth which shows a ballooning development of the ongoing two projects. Current asset increased by 14.10% whereas, current liability increased by 16.80%.

Particulars 2013-14 2014-15 % Change

total asset 55,122,428,169 77,516,624,833 40.63%

total Liability 39,479,009,230 61,538,646,486 55.88%

total equity 15,643,418,939 15,977,978,347 2.14%

net fixed asset 21,586,111,577 19,839,586,457 -8.09%

Capital work in progress 28,274,074,626 52,072,056,996 84.17%

Current asset 4,455,070,967 5,083,144,790 14.10%

Current Liability 1,812,000,162 2,116,362,792 16.80%

0.0

0.5

1.0

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2.0

2.5

Jun-15May-15Apr-15Mar-15Feb-15Jan-15Dec-14Nov-14Oct-14Sep-14Aug-14Jul-14

Per Unit Revenue Per Unit Fuel Cost

0

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2000

3000

4000

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6000

7000

8000 Net Profit after Tax

figur

e in

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ion

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Income Tax Expense

Net Profit before Interest & Tax

2013-2014 2014-2015

Non Operating Profit

Operating Profit

Fuel Cost

Sales

2013-2014 2014-20150

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Current Liability

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Financial Ratios

the main financial ratios of the company has been portrayed below with comparison of the previous period

Particulars 2014-15 2013-14

Gross profit margin 21.45 % 21.72 %

operating profit margin 7.33% 10.76%

net profit margin 5.18% 9.77%

return on net fixed assets 1.85% 3.16%

return on equity 2.30% 4.35%

Current ratio 2.40:1 2.46:1

Quick ratio 1.98:1 2.07:1

Debt equity ratio 3.08 1.75

Debt Service Coverage ratio 3.5 3.67

accounts receivable ratio 2.82 1.99

average Collection period (in months) 4.26 6.04

Profit Appropriation : During 2014-15 the company’s net profit amounted to BDt 367.63 million compare to BDt 681.17 million in the year 2013-14. however the company needs adequate funds for uninterrupted progress of the project as well as for future growth. Keeping this in view the Directors would like to report the company’s financial result for the year ended 30 june 2015 with the recommendation for appropriation as follows:


net profit Before tax (BDt) 467,634,407 801,179,955

Income tax expense (BDt) 100,000,000 120,000,000

profit for appropriation (BDt) 367,634,407 681,179,955

no. of Share 66,150,000 66,150,000

earning per Share (epS) (BDt) 5.56 10.30

Contribution to the National Exchequer & the economy:

electricity is one of the main driving forces of the economy and it has a diversified use and multiplier effect in the economy. Significantly in the development of industrialization, electricity as fuel has no other alternative. In the fy 2014-15, apSCL has added 3,985.51 mln Kwh electricity to national grid. this addition has contributed significantly in enhancing industrial production and providing more job opportunities throughout the country. During reporting year ended june 2015, apSCL collected tk.16.83 million as Vat and tk. 53.23 million as Income tax on behalf of the Government and deposited the same into the Government treasury. In the reporting period, apSCL also paid tk. 1,675.48 million as CD Vat.


Vat (BDt) 16,835,638 12,225,561

CD (BDt) 1,675,480,629 1,073,994,334

Income tax (BDt) 53,236,179 33,083,866

total (BDt) 1,745,552,446 1,119,303,761

Significance Variance between Quarterly and Annual Financial Statements:

no significant variations have occurred between quarterly and annual financial statements during the considering period.

Corporate and Financial Reporting Framework:

the law requires that the financial statements of the company should be prepared in accordance to the prescribed format given by International financial reporting Standard (IfrS) as adopted by ICaB and Bangladesh financial reporting Standards (BfrS). this has been completely followed to fairly present the financial position and performance of the

company. while preparing the financial statement, the following points were considered

• Selectionofsuitableaccountingpoliciesandthenapplyingthemconsistently

• Makingjudgmentsandestimatesthatarereasonableandprudent

• Ensuringthatthefinancialstatementshavebeenpreparedinaccordance with Bangladesh financial reporting Standards.

• Preparingthefinancialstatementsingoingconcernsbasisunlessit is appropriate to presume that the company will no continue in business.

proper accounting records have been kept so that at any given point the financial position of the company is reflected with reasonable accuracy, which will enable them to ensure that its financial statements comply with Companies act 1994 and other required regulatory authorities.

2013-2014 2014-20150

5

10

15

20

25Return on Equity

Return on Net Fixed Assets

Net Profit Margin

Operating Profit Margin

Gross Profit Margin %

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Shareholding Information:

Name of Shareholders Representative Number of ShareBpDB 66,147,098power Division Secretary, power Division 1,900energy & mineral resource Division

Secretary, energy & mineral resource Division 1

finance Division Secretary, finance Division 1,000planning Division Secretary, planning Division 1Total 66,150,000

Board of Directors: the present Directors of the company comprising 12 numbers. out of the 4 numbers of Directors selected from (a) persons specialized in generation of electricity, (b) consumers, (c) business community and (d) persons specialized in finance. the managing Director is the ex-officio member of the Board and other 7 Directors will be elected by shareholders among themselves. the name of the Directors of the company and the biographical details are shown on page no 14 to 17.

Directors’ Meeting and Attendance:

During the year fy 2014-15 17 (Seventeen) Board meetings were held. the attendance record of the Directors is as follows:

SL no. name Designationno. of Board

meeting attended

1. mr. md. anwar hossain Chairman 172. mr. md. abduhu ruhullah Director 173. Dr. md. Quamrul ahsan Director 164. mr. Shahinul Islam Khan Director 13

5. mr. mamtaz uddin ahmed, fCma Director 15

6. mr. Khandker maksudul hassan Director 13

7. mr. Swapan Kumar Saha Director 138. mr. md. Shamsul haque Director 149. mr. Kazi nazir hossen Director 610. mr. Khan md. nurul amin Director 1711. mr. Sheikh faezul amin Director 1712. mr. Kamal ahmed Director 1213. mr. md. mukammel hoque Director 11

14. mr. a B m mizanur rahman Director 7

15. mr. md. nurul alam managing Director (former) 15

16. a.m.m.Sazzadur rahman

managing Director (addl. Charge) & executive Director (engineering)

2

whenever the Directors could not attend the meetings, they were granted leave of absence.

Election of Directors:

In terms of articles of 125 & 126 of the articles of association of the Company the Directors subject to retire by rotation every year shall be those who have been longest in office since their last election. one third of the Directors shall retire from the Board at this annual General meeting and they are being eligible, offer themselves for re-election.

Board Committees

Audit Committee: the company has an audit Committee with an established charter comprising the following members:

prof. mamtaz uddin ahmed Chairman

mr. S.m. tarikul Islam member

mr. md. mukammel hoque member

mr. Kamal ahmed member

the Committee holds 9 meetings in the year 2014-15. a detail of activities of the audit Committee has been provided in the audit Committee report.

Recruitment & Promotion Committee: the Company has a recruitment & promotion committee with an established charter comprising the following members

Dr. ahmad Kaikaus Chairman

mr. Khandker maksudul hassan member

mr. a.t.m. Zahirul Islam majumder member

the Committee holds 6 meetings in the year 2014-15Procurement Review Committee: the Company has a procurement review Committee with an established charter comprising the following members

Dr. md. Quamrul ahsan Chairman

mr. a B m mizanur rahman member

mr. md. Shamsul haque member

mr. Sheikh faezul amin member

the Committee holds 9 meetings in the year 2014-15

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Appointment of Auditor:

pursuant to section 210 the Company’s act 1994. the Company’s statutory auditors m/S Sf ahmed & Co. Chartered accountants retires at the 15th annual General meeting as auditors of the Company. the Chartered firm has audited apSCL in the last three consecutive years. the retiring auditors are eligible for re-appointment and have expressed their willingness to continue for the year 2015-16 at a fee of tk. 1,00,000 plus Vat.

Business Risk and uncertainties:

the Directors consider that the following risks and uncertainty are running with the plant:

• Averageageoftheplantismorethan27years.

• Overallthermalefficiency&reliabilityisnotuptothemark.

• De-ratingofAPSCL’sfacilityisrealthreatandriskforsteadyrevenue earning.

• AlargeoverloadedgridsubstationwithinAPSCL’spremisesisalsoabusiness risk.

Therefore, APSCL’s challenges are:

• Replacementofoldinefficientoutlivedplants.

• Implementationofnewprojects.

• Increaseofstationpowergeneratingcapacity.

• Increaseofoverallthermalefficiency.

Financial Risk Management:

the company has exposures to the following risks from its use of financial instruments:

• Creditrisk

• Liquidityrisk

• Marketrisk

the Board has overall responsibility for the establishment and oversight of the company’s risk management framework. they Board oversees how management monitors compliance with risk management policies and procedures and reviews the adequacy of the risk management framework in relation to risk faced by the company. the Board is assisted in its oversight role by audit Committee, undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit Committee.

Credit risk: Credit risk is the risk of financial loss to the company if a customer or counterparty fails to meet its contractual obligations. the company’s sales are made to Bangladesh power Development Board (BpDB) under the conditions of long term power purchase agreement (ppa). Sales made to that entity are fully secured by Letters of Credit issued by local scheduled banks.

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 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 conditions, without incurring unacceptable losses or risking damage to the company’s reputation.

typically management ensures that it has sufficient cash and cash equivalent to meet expected operational expenses, including the servicing of financial obligation through preparation of cash forecast, prepared based of time line of payment of the financial obligation and accordingly arrange for sufficient fund to make the expected payment within due date.

market risk: market risk is the risk that changes in market forces such as foreign exchanges rates and interest rate that will affect the company’s income or value of its holding of financial instruments. the objectives of market risk management are to manage and control market risk exposures within acceptable parameters, while optimizing the return. apSCL has already taken necessary measures such as interest rate Swap and foreign exchange rate Swap in order to address such market risk.

Going Concern:

while approving the financial statement, the Directors have made appropriate enquires and analyzed significant operating and indicative financials which enabled them to understand the ability of the company to continue its operations for a foreseeable future. the Directors are convinced and gave reasonable expectation that the company has adequate resources and legal instruments to continue its operations without interruptions. therefore the company adopted the going concern basis in preparing these financial statements.

Corporate Governance:

Corporate governance is the system of internal controls and procedure by which an individual company is managed. the primary role of corporate governance is played by the Board of Directors. the Board formulates the vision, mission, objectives and strategic goals. the management’s role is to execute those directives in a professional manner. the corporate structure of apSCL is depicted in below:

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Shareholders

Board of Directors

Management

Operational Management

Board Committees

Management Commitees

Corporate Social Responsibility:

Besides its normal activity of operation and maintenance of existing power plants and installation of new ones, the Company operates a high School, a training Centre, a medical Center and a mosque, one officers’ Club, one employees Club a maktab and a temple. all these are financially supported by the Company. the high School is operated by the company. the school is affiliated by the Comilla Secondary & higher Secondary education Board. Students from Baby Group to Class x study in this school. the School is run by a group of experienced teaching Staff. It is worth full here to mention that about 40% of the total student of this school comes from the adjacent areas and villages. In this way apSCL make a valuable contribution in the sector of education of this area. the medical Centre is run by the company. there are one Senior medical officer (mBBS) & two medical officers (mBBS)-one male & one

female, four nurses (Diploma) and one female attendant. they provide medical services such as antenatal checkup, epI vaccination, Blood sugar check, eCG, nebulization and many other emergency services to the employees and their family members at the medical Center. there is an ambulance with fully equipped modern facilities in the medical center. the water used for steam generation is discharged after its uses through discharge channel which are further used for irrigation in the local area in the dry season. It is known that about 36,000 acres of land of ashuganj are irrigated by this water at free of cost. apart from these, the infrastructures of apSCL’s surface areas like road, bridge, drainage system, footpath etc are constructed and maintained by its authority whose beneficiary are the mass people of this area. By this way apSCL took part in the development of this area.

National Integrity Strategy (NIS)

the present Government of Bangladesh is committed to establish democracy, the rule of law, human rights, freedom of citizens as embodied in the Constitution, equality and justice in the country. In this view the present government has undertaken national Integrity Strategy (nIS) which is a comprehensive set of goals, strategies and action plans aimed at increasing the level of independence to perform, accountability, efficiency, transparency and effectiveness of state and non-state institutions in a sustained manner over a period of time. the integrity system comprises both State and non-state institutions. In order to implement this strategy the management of apSCL has also taken several measurements such as accountability, transparency, efficiency, effectiveness, delegation of authority, right to information and so on.

human Resource Management:

efficient manpower is the pre-requisite for development of any organization. Success of this organization depends on qualified and skill manpower for right post. apSCL is performing the task with due care and integrity to increase the efficiency of the plant through appropriate maintenance and operation. already computerized attendance and access control system (finger print) and customized personnel information system have been adopted in the company. to introduce human resource Information system, Software development work is running.

human Resource Development:

training is the most essential element for improving efficiency of the employees in the today’s competitive world. In order to improve productivity of the company’s manpower, the company is continuously providing formal and informal training to its employees at every level for at least 50 man-hours per year. It has a full-fledged training center headed by manager (hrD) to implement the training programs. Towards Global Accreditation:

ashuganj power Station Company Ltd., situated on the bank of river meghna with about 300 acres of land under its possession, is now heading to attain world class certification from ISo. the company intends to design, develop, document and implement Integrated management System (ImS) with a view to be certified to ISo: 9001 QmS (Quality management System), ISo: 14001 emS (environmental management System) & ohSaS (occupational health & Safety assessment Series): 18001. to this end the company inked a contract of BDt 2.36 million with a local consultant namely Center for management Development (CmD) on august 24, 2013. the services of the consultant encompass to design, develop, document and implement ImS covering all functions of apSCL and thereby obtain the all certification from competent authority. In this connection, apSCL would get following services from the consultant:

• TrainingonIMS(ISO:9001QMS,ISO:14001EMS&OHSAS:18001)

• TrainingonTotalQualityManagement(TQM)

• Trainingoninternalauditanddevelopmentsofinternalauditorson ImS

• ReportonStrategicPositioningofAPSCLandsettingstrategicobjectives covering relevant key functional areas

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• CompiledSystemManual,StandardProcedures,WorkInstructions

• ForcertificatesonIMS(ISO:9001QMS,ISO:14001EMS&OHSAS:18001) external auditing being performed during the tenure of consultancy

It is here to mention that apSCL has employed an independent external auditor in order to conduct auditing regarding the attainment of ISo Certification. In this context Bureau Veritas (Bangladesh) private Limited, an independent external auditor, has successfully completed ImS Stage-2 audit on october 26, 2015. the further procedure in the attainment of the certificate is under processing and it is expected that apSCL will earn this prestigious certificate by December 2015.

Security Strength:

Manpower

• InternallyProvided:36

officer -02, Staff-32, temprary-02

• Ansar:49

platoon Commander -01, a. platoon Commander -01, ansar-47

• PatrolPolice:15

• ArmedForces:31

Sr. warrant officer -01, Sergeant -01, Lance Corporal -06, Soldier-22, DGfI-01

Equipment• Arms• CCCamera• ArchwayGate• HandHeldMetalDetector• GuardPatrolMonitoringSystem• VehicleSearchMirror• WalkieTalkie• FingerprintMachine&MagneticLock• Firefighting&safetymeasures

Information Technology:

In line with Government’s plan to build digital Bangladesh, the apSCL has been striving to automate all of its operational activities. this would help to achieve operational efficiency, cost control, reliability, transparency and overall a good management system for the organization. the mIS & ICt activities of the organization are:

• CompanyWebsite:www.apscl.como Special features:o Company history & Current informationo up-to-date Generation Informationo procurement Information/publications

Local area network (Lan)o Store management System:o total integrated on-line system for procurement, Inventory

& Consumption activities of apSCL Stores

o Database for historical transactionso necessary reports for Internal & external purposeo Computerized attendance and accesso Control System (finger print)o Internal mailing System(en effort to paperless company)o Installation of Intraneto Guard patrol monitoring Systemo Customized personnel information system

Environment Conservation and Cleanliness

ashuganj power Station is aware of the impact of uses of chemicals, lubricating oil, transformer oil & water discharge to the river. all the issues are mitigated with proper measures. the power Station and its residential area is always kept clean. on other hand, there are different types of environment friendly trees the care of which are taken constantly. moreover, new trees of different types are planted on the land of the power Station every year.

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Projects in Progress:

Name of the Project: Ashuganj 225MW Combined Cycle Power plant

Project highlights: Combined cycle power plant with a gas turbine unit and a steam turbine unit making it more efficient than existing plant. It will meet a part of the growing demand of electricity.

Estimated cost of the project: 256.00 million uSD

Project financed by: eCa Backed financing, 192.9 million uSD

Contractor: the Consortium of hyundai engineering Co. Ltd. (hyunDaI) and Daewoo International Corporation (DwI)

Date of commencement: 17th february, 2013.

Commercial Operation Date: 27th april, 2015 (Simple Cycle) and expected 9th December 2015 (Combined Cycle)

Physical Progress:•CODofSimpleCycleachievedon27thApril,2015

•CombinedCycleperformancetestcompleted.

Financial Progress: total financial progress is 84.03%

BDt 16,820 million has been spent (up to 30 june 2015)

Name of the Project: Ashuganj 450MW Combined Cycle Power Plant (South)

Name of the Project: ashuganj 450mw Combined Cycle power plant (South)

Project highlights: Single shaft Combined cycle power plant with a gas turbine unit and a steam turbine unit making it more efficient than existing plant. It will meet a part of the growing demand of electricity.

Estimated cost of the project: total eq BDt: 3792 Crores

Project financed by: eCa backed finance, 420 million uSD

Contractor: Consortium of tSK electronica Spain, Inelectra International, Sweden

Date of commencement: march, 2013

Expected Commercial Operation Date: january, 2016

Physical Progress:

Work Done:

• electrical & mechanical erection Gt, St & Generator is completed.

• Installation of gas pipe line from gas Valve Station-3 to proposed rmS has been completed.

• Installation of hrSG and commissioning has been completed.

• Installation of water treatment plant has been completed.

• 230 KV all GIS Bays installation, testing and commissioning completed.

Work in Progress:

• Installation of Cw pumps and pipeline have been going on and would be completed by December, 2015

• Commissioning of water treatment plant would be completed by December 2015.

• 1st firing of Gas turbine would be done by December, 2015.

Total Overall Physical Progress achieved is 98.08% upto November 2015.

Financial Progress: total financial progress is 83% upto november 2015.

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BoarD’s report

Name of the Project: Ashuganj 450 MW CCPP (North) Project

Project highlights: Government of the people’s republic of Bangladesh already has declared that electricity for all within 2021. to achieve the goals, apSCL has taken different initiative to enhance the generation of power.

Estimated cost of the project: BDt 3400.02 Crore

Project financed by: aDB 228 million uSD, IDB 200 million uSD, GoB BDt 353 crore & apSCL BDt 51 Crore

Date of Commencement: 2-apr-14

Date of completion: january-03, 2017 for Simple Cycle and june-03 , 2017 for Combined Cycle

Project duration: open cycle: 33 months , Combined cycle: 38 months

Contractor & Consultant:

Contractor:

the Consortium of tecnicas reunidas S.a. & tSK electronica y eletricidad S.a., Spain. Contract Signed date 01.12.2013 which has been effect on 02.04.2014.

Consultant:

Consultant contract with fichtner Gmbh & Co. KG Germany has been signed on 01 December, 2012 and engaged in the project implementation consultancy service.

Physical Progress

Work Done:

access road has completed for hrSG erction.

hrSG structure, Casing, module erection Completed.

hrSG main Stack & Bypass stack erection Completed.

GIS Building Completed.

foundation works of Gt, St, Condenser and transformer have been completed.

Work in Progress:

hrSG welding and stair, Insulation Liner and plate form works in progress.

turbine hall steel structure erection in progress.

workshop, warehouse and admin building foundation works in progress.

under Ground Circulating cooling water pipe line installation in progress.

total overall physical progress achieved is 52.19% upto november 2015

Financial Progress:total financial progress is 38.76% upto november 2015

BDt 9,232.025 million has already been spent up to 30 june 2015.

Name of the Project: Ashuganj 400 MW Combined Cycle (East) Power plant

Project highlights:Combined cycle power plant to effective & efficient utilization of natural gas by replacing of old inefficient power plant. It will accelerate to meet the vision of the Government i.e. to ensure quality power for all in 2021.

Estimated cost of the project: BDt. 2,931.36 Crore

Project financed by: aDB & IsDB (both) 303.78 million uSD, GoB BDt 420.69 Crore & apSCL BDt 152.40 Crore

Contractor: not applicable

Date of commencement: not applicable

Commercial Operation Date: not applicable

Physical Progress: not applicable

Financial Progress: not applicable

45


Name of the Project: Ashuganj 200 MW Modular Power Plant Project

estimated cost of the project: 170 million uSD.

project financed by: united enterprises Ltd. (Sponsor)

Contractor: united enterprises Ltd.

Date of Inauguration: october 08, 2015

upcoming Power Plant Projects:

Name of the Project: Patuakhali Super Thermal Power plant

project highlights: 2x660mw Coal based thermal power plant with ultra Super critical technology. It will meet a part of the growing demand of electricity.

Site Selection: Site selected at Debpur, panchjunia and Chalitabania mouza of Dhankhali union under Kalapara upazilla, patuakhali. (west bank of rabnabad Channel)

acquisition: administrative approval for acquisition of 1000(one thousand) acre of land has given the concern ministry. further works for acquisition are in progress.

Consultant for Iee, eIa, SIa & fS: Consortium of Development Design Consultant Ltd. of Bangladesh and Lahmeyer International India (pvt.) Ltd.

Submission of final feasibility study report: 15th april, 2016.

Name of the Project: Ashuganj 80MWp Grid Tied Solar Power plant

project highlights:80mwp Grid tied Solar photovoltic(pV) power plant. renewable energy policy has been approved in 2008. through this policy the Government is committed to envisions10% of total generation by 2020. It will meet a part of the growing demand of electricity.

Site Selection: Chor-chartala mouza of Chor-Chartala union under ashuganj upazila,.Brahmanbaria,

acquisition: works for administrative approval for acquisition of 220 acre of land are in progress.

• DinajpurSuperPowerThermalPlant(1200MW) expression of Interest (eoI) for consultant appointment to be issued.

Future Development Plan:

electricity is the driving force of economy and civilization. all development activities are directly or indirectly dependent on it. the trend of generation capacity of the country is running behind to meet the prevailing load demand of the country and causes hindrance to the development activities in industrial, commercial, agricultural and social sectors. Keeping this view in mind apSCL has untaken a master plan of twenty years to generate 6835mw within 2030.

Year Installed Capacity (MW) Retired(MW) New Installed Capacity (MW)

Enhanced capacity (MW)

Total Generation(MW)

2011-15 777 90 875 875-90 = 785 1562

2016-20 1562 334 2920 2920-334 = 2586 4148

2021-25 4148 300 1720 1720-300 = 1420 5568

2026-30 5568 53 1320 1320-53 = 1267 6835 Acknowledgement:

the Board of Directors would like to extend its foremost regards and appreciation to the valued Shareholders and other Stakeholders of the Company for their persistent support and guidance to the company that led to its cumulative achievements. the Board also recognizes that its journey to the attainment during the year was possible because of the cooperation, positive support and guidance that it had received from the Government of Bangladesh, ministry of power, energy and mineral resources, power Division, power Cell, economic relations Division, ministry of finance, ministry of planning, Bangladesh power Development Board, petro Bangla, Bakhrabad Gas Distribution Company Limited and local administration and people. accordingly the Board offers its utmost gratitude to them.

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47


I would like to convey our heart-felt gratitude to Consortium of Inelectra International aB, Sweden and tSK electronica electricidad S.a., Spain and the Consortium of hyundai engineering Company Ltd. & Daewoo International Corporation Ltd., hSBC and SCB, the eCa facilities and lenders - hermeS Germany, onDD Belgium, CeSCe Spain, mIGa, Banco Bilbao Vizcaya argentaria S.a., Banco espanol de Credito S.a., Caixa Bank S.a., Kfw Ipex-Bank Gmbh, norddeutsche landesbank Girozentrale and K-Sure (Korea trade Insurance Corporation) and Korea finance Corporation, DZ Bank aG for their support and co-operation in construction and financing 450mw CCpp (South), 225mw CCpp project. asian Development Bank & Islamic Development Bank for 450mw CCpp (north) & united Group for 200mw modular power plant project.

we also extend the warmest greetings and felicitation to the management and employees for being the essential part of apSCL during the year. It was theirs’ unrelenting commitment, dedication and diligence throughout the year that led to the company achieving the awards and accolades so far.

we are proud of you all and look forward to your continued support as we march ahead to take ashuganj power Station Company Ltd. further forward as a leading player in the power sector of the country.

with Best wishes

on behalf of the Board of Directors

Chairman

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achIVements

ICMAB Best Corporate Award-2014

The 2015 Green Era Award

ICMAB Best Corporate Award-2014 (for Corporate Governance)

49


Trade Finance Award Deals of the Year 2012

Financing Facility availed for 225MW CCPP

To Mark 100000 Hours Commercial Operation of the GEC CCPP

Best Power UnitFinancing Facility availed for 450MW CCPP (South)

50


memoraBLe eVents 2014-2015

S t A t e M i N i S t e R f o R P o w e R , e N e R g y A N d M i N e R A l R e S o u R C e v i S i t A t A P S C l

B o A R d C h A i R M A N v i S i t A t A P S C l

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RECEPTIOn OF nEW CHAIRMAn AnD FAREWEll OF RETIRInG CHAIRMAn OF APSCl

MIlAD FOR InAUGURATIOn OF 225MW CCPP BY HOnORABlE PRIME MInISTER

CHITTAGOnG DIvISIOnAl COMMISSIOnER vISIT AT APSCl

45TH InDEPEnDEnCE DAY PROGRAM

InAUGURATIOn OF COMPUTER lAB & MUlTIMEDIA ClASSROOM AT APSCl’S SCHOOl

52


memoraBLe eVents 2014-2015

Science and technology Minister visit at APSCl

53

AshugAnj Power stAtion ComPAny Ltd AnnuAl RepoRt 2014-2015

Auditors’ report to the shAreholdersAuditors’ report to the shAreholdersFor the year ended 30 June 2015

We have audited the accompanying financial statements of Ashuganj Power Station Company Ltd (the Company), which comprise the statement of financial position (balance sheet) as at 30 June 2015, statement of profit or loss and other comprehensive income (profit and loss statement), statement of changes in equity and statement

of cash flows for the year then ended and a summary of significant accounting policies and other explanatory notes.

Management’s responsibility for the financial statementsManagement’s responsibility for the financial statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Bangladesh Financial Reporting Standards, the Companies Act 1994 and other applicable laws and regulations. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ responsibilityAuditors’ 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. Those standards require that we comply with relevant ethical requirements and plan and perform the audit to obtain a reasonable assurance 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’ judgement, including the assessment of the risks of material misstatements of the financial statements, whether due to fraud or error. In making those risk assessments, we consider 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 entity’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 audit opinion.

OpinionOpinion

In our opinion, the financial statements prepared in accordance with Bangladesh Financial Reporting Standards, give a true and fair view of the state of the Company’s affairs as at 30 June 2015 and of the results of its operations and its cash flows for the year then ended and comply with the Companies Act 1994 and other applicable laws and regulations.

We also report that :We also report that :

(i) we have obtained all the 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;

(ii) 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

(iii) the statement of financial position (balance sheet) and statement of profit and loss statement and other comprehensive income (profit and loss statement) dealt with by the report are in agreement with the books of account and returns.

Dhaka, Bangladesh S. F. AHMED & CODated, 03 December 2015 Chartered Accountants

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stAtement of finAnciAl position (BAlAnce sheet)stAtement of finAnciAl position (BAlAnce sheet)As at 30 June 2015

Notes2015 2014

BDT BDT

AssetsNon-current assetsProperty, plant and equipment 4 19,839,586,457 21,586,111,577Deferred expenditure 5 521,836,590 807,170,999Capital works-in-progress 6 52,072,056,996 28,274,074,626Total non-current assets 72,433,480,043 50,667,357,202

Current assetsStocks in stores 7 887,979,012 697,972,141Advances, deposits and prepayments 8 30,796,061 27,198,279Accounts receivables 9 2,771,527,966 2,268,405,064Other receivable - fixed deposits 7,109,335 13,702,313Cash and cash equivalents 10 1,385,732,416 1,447,793,170Total current assets 5,083,144,790 4,455,070,967Total assets 77,516,624,833 55,122,428,169

Equity and liabilitiesShare capital 11 6,615,000,000 6,615,000,000Equity of BPDB 12 5,572,614,964 5,572,614,964Direct grant 13 344,182,000 344,182,000Retained earnings 14 3,446,181,383 3,111,621,975Total equity 15,977,978,347 15,643,418,939

Subordinated loanDebt service liabilities (DSL) 15 10,252,300,000 10,252,300,000

Non-current liabilitiesGovernment loan 16 3,046,322,919 2,894,298,607Foreign loan 17 9,621,169,871 3,200,907,696Export credit agency (ECA) loan 18 35,221,123,234 20,136,635,611Provision for income tax 19 1,085,300,338 1,007,036,308Liabilities for gratuity 20 196,067,332 175,830,846Total non-current liabilities 49,169,983,694 27,414,709,068Current liabilitiesOutstanding liabilities 21 2,092,981,072 1,771,941,164Workers’ profit participation fund 22 23,381,720 40,058,998Total current liabilities 2,116,362,792 1,812,000,162Total equity and liabilities 77,516,624,833 55,122,428,169

These financial statements should be read in conjunction with annexed notes

For Ashuganj Power Station Company Ltd

Company Secretary Executive Director (Finance) Managing Director Director

See annexed report of the date


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stAtement of profit or loss And other comprehensive income stAtement of profit or loss And other comprehensive income (profit And loss stAtement)(profit And loss stAtement)For the year ended 30 June 2015

Notes2015 2014

BDT BDT

Revenue 23 7,094,702,639 6,971,021,960Cost of sales 24 (5,573,002,554) (5,457,215,490)Gross profit 1,521,700,085 1,513,806,470

Operation and maintenance expensesPersonnel expenses 25 (446,307,797) (392,443,418)Office and other expenses 26 (26,270,840) (24,128,063)Repair and maintenance expenses 27 (49,796,052) (58,806,620)Depreciation expenses 28 (60,941,346) (59,308,860)Provision for uncollectable receivable 29 (73,921,693) (54,002,685)Uncollectable receivable written-off 30 (58,829,481) (58,829,481)Amortisation of deferred expenditure Annex 2 (285,334,409) (115,893,620) (1,001,401,618) (763,412,747)Operating profit 520,298,467 750,393,723

Provisions written-off 31 - 63,092,822Non-operating income 32 136,673,029 211,208,425Profit before interest and tax 656,971,496 1,024,694,970Financial expenses 33 (165,955,369) (183,456,017)Workers’ profit participation fund (23,381,720) (40,058,998) (189,337,089) (223,515,015)Profit before tax 467,634,407 801,179,955Income tax expense (100,000,000) (120,000,000)Profit after tax 367,634,407 681,179,955Other comprehensive income - -Total comprehensive income 367,634,407 681,179,955

These financial statements should be read in conjunction with annexed notes





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stAtement of chAnges in equitystAtement of chAnges in equityFor the year ended 30 June 2015

ParticularsShare capital Equity of BPDB Direct grant Retained

earnings Total

BDT BDT BDT BDT BDT

Year ‘2014

Balance at 01 July 2013 6,615,000,000 4,826,534,164 - 2,463,517,020 13,905,051,184

Overhauling project (Units 4 and 5) - 746,080,800 - - 746,080,800

Profit after tax - - 681,179,955 681,179,955

Direct grant - - 344,182,000 - 344,182,000

Dividend payable - - (33,075,000) (33,075,000)

Balance at 30 June 2014 6,615,000,000 5,572,614,964 344,182,000 3,111,621,975 15,643,418,939

Year ‘2015

Balance at 01 July 2014 6,615,000,000 5,572,614,964 344,182,000 3,111,621,975 15,643,418,939

Profit after tax during the year - - - 367,634,407 367,634,407

Dividend payable - - - (33,075,000) (33,075,000)

Balance at 30 June 2015 6,615,000,000 5,572,614,964 344,182,000 3,446,181,383 15,977,978,347





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stAtement of cAsh flowsstAtement of cAsh flowsFor the year ended 30 June 2015

2015 2014

BDT BDT

A. Cash flows from operating activities Cash received from operation 6,591,579,737 9,456,983,863 Cash received from other income 143,266,007 205,441,450 Payment to employees (426,071,311) (373,443,218) Payment to suppliers and allowances (3,988,464,039) (5,018,990,100) Interest paid (165,955,369) (183,456,017) Income tax paid (21,735,970) (38,536,836) Net cash from operating activities 2,132,619,055 4,047,999,142

B. Cash flows from investing activities : Acquisition of property, plant and equipment (20,398,000) (30,248,717) Payments for project cost (23,797,982,370) (15,431,385,965) Addition to deferred expenditure - (69,040,294) Net cash used in investing activities (23,818,380,370) (15,530,674,976)

C. Cash flows from financing activities : Repayment of government loan (399,729,324) (116,110,798) Repayment to foreign loan (91,668,632) (427,205,983) Dividend paid (33,073,549) (66,148,549) Government loan for 450 MW (North) project 551,753,636 8,354,601 Foreign loan for 450MW (North) project 6,511,930,807 2,219,253,773 Export credit agency (ECA) loan 15,084,487,623 10,509,459,164 Net cash from financing activities 21,623,700,561 12,127,602,208

D. Net increase in cash and cash equivalents (A+B+C) (62,060,754) 644,926,374E. Opening cash and cash equivalents 1,447,793,170 802,866,796F. Closing cash and cash equivalents (D+E) 1,385,732,416 1,447,793,170





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notes to finAnciAl stAtementsnotes to finAnciAl stAtementsFor the year ended 30 June 2015

1. Corporate Information1. Corporate Information1.1 Legal status and background of the company

Ashuganj Power Station company Ltd (APSCL/the company) was registered as a private limited company with the Registrar of Joint Stock Companies (RJSC), Dhaka on 28 June 2000 vide certificate of incorporation no. 40630(2328)/2000 which was thereafter converted into a public limited company. Its authorised share capital has been increased from BDT 100 cores to BDT 1500 cores through a special resolution passed on 01 March 2003 and authorized capital has been increased from BDT 1500 cores to BDT 3,000 cores through an ordinary resolution on 10th AGM held on 26 December 2010. Its paid up capital has been increased to BDT 661.40 core by a special resolution in the 142th board meeting held on 08 July 2012 in terms of condition of section 151 of Companies Act 1994 for issue of shares against assets and conditions of the company’s Articles of Association, clauses 11th and 17th (here considering on the basis of provisional vendor’s agreement, maximum BDT 661.40 core can be transferred to BPDB’s paid up capital from its equity). A provisional vendor’s agreement has been signed between Bangladesh Power Development Board (BPDB) and APSCL in order to transfer all the assets and liabilities of Ashuganj Power Station Complex, Ashuganj Combined Cycle Power Plant, Ashuganj Power Plant Training Centre and Ashuganj Regional Accounting Office of BPDB to APSCL on 22 May 2003. A Provisional Power Purchase Agreement (PPPA) has also been signed on 30 May 2005 between the BPDB and APSCL. Both the agreements are with effect from 01 June 2003. The Articles of Association of the company was amended in the 8th AGM held on 30 June 2008. After the amendments, the accounting period has been changed from Gregorian calendar year to company’s desired financial year with due permission from RJSC, vide its letter no. 4835. First amendment of PPPA has been made with effect from 15 January 2010, second amendment of PPPA between APSCL and BPDB has been made with effect from 14 January 2012 and third amendment of with ef-fect from 17 June 2015.

1.2 Nature of business activitiesThe main objectives of the company is to carry out the business of electric power generation, supply and sell of electricity through national grid to BPDB for electric energy, which can be employed and to manufacture and deal in all apparatus and things required for, or capture of being used in connection with the generation, sup-ply, sale and employment of electricity including in term electricity all power that may be directly or indirectly derived therefrom, or may be incidentally hereafter discovered in dealing with electricity.

2. Basis of preparation2. Basis of preparation2.1 Measurement of the elements of financial statements

Measurement is the process of determining the monetary amounts at which the elements of the financial state-ments are to be recognised and carried in the statements of financial position and profit or loss and other com-prehensive income. The measurement basis adopted by APSCL is historical cost except the revaluation of land. Under the historical cost, assets are recorded at the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the time of their acquisition. Liabilities are recorded at the amount of proceeds received in exchange for the obligation, or in some circumstances (for example, income taxes), at the amounts of cash or cash equivalents expected to be paid to satisfy the liability in the normal course of business.

2.2 Basis of preparation of the financial statementsThese financial statements has been prepared on accrual basis following going concepts under historical cost convention.

2.3 Use of estimates and judgmentsThe preparation of financial statements requires management to make judgments, estimates and assumption that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed ongoing basis.

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2.4 Reporting periodThe financial period of the company covers 01 (one) year from 01 July 2014 to 30 June 2015 which is followed consistently.

2.5 Components of financial statementsa) Statement of financial position (balance sheet)b) Statement of profit or loss and other comprehensive income (profit and loss statement)c) Statement of changes in equityd) Statement of cash flowse) Summary of significant accounting policies and other explanatory notes.

3. Significant accounting policy and other material information3. Significant accounting policy and other material informationThe accounting policies set out below have been applied consistently to all periods presented in these financial statements.

3.1 Property, plant and equipment3.1.1 Recognition and measurement

Items of property, plant and equipment (PPE) are initially measured at cost. After initial recognition, an item of PPE is carried at cost less accumulated depreciation and impairment losses as per BAS 36 ‘’Impairment of Assets”. Cost represents the cost of acquisition/procurement including development expenses, all installation expenses, commissioning and other relevant expenses.

3.1.2 Subsequent costs

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the company and its cost can be measured reliably. The costs of the day to day servicing of property, plant and equipment are recognised in the profit and loss statement as incurred.

3.1.3 Maintenance activities

The company incurs maintenance costs for all of its major items of property, plant and equipment. Repair and maintenance costs are charged as expenses and sometimes deferred when incurred. Subsequently deferred expenses charge to Statement of financial position (balance sheet) the over its useful life.

3.1.4 Depreciation

Depreciation on PPE has been charged applying straight line method considering the estimated life and the salvage value of the assets procured. Depreciation is charge on property plant and equip-ment for 6 (six) months in the year of acquisition and 6 (six) months in the year of disposal.

Itemised depreciation rates are as follows:

Asset category Rate of depreciation (%)Building 1.55 - 13.33Plant and machinery 7.14 - 40Office equipment 10 - 33.33Vehicles 5Furniture and fixtures 10

3.1.5 Retirements and disposals

An asset is derecognised on disposal or when no future economic benefits are expected from its use and subsequent disposal. Gains or losses arising from the retirement or an asset is determined between the net disposal proceeds and the carrying amount of the asset and is recognised as gain and losses from disposal of asset under other income in the profit and loss statement.

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3.2 InventoriesStocks in stores have been stated at the lower of cost and net realisable value in accordance with BAS 2 “In-ventories”. The cost of inventories is assigned by using weighted average cost method.

3.3 Accounts receivableAccounts receivable are recognised at cost which is the fair value of the consideration given for them.

3.4 Cash and cash equivalentsCash and cash equivalents comprise of cash in hand and cash at bank, which are held and available for use of the company without any restriction.

3.5 Cash flow statementCash flow statement is prepared according to BAS 7 “Statements of Cash Flows” under direct method as re-quired by the Securities & Exchange Rules 1987.

3.6 Equity of BPDBAllotment of shares against equity of BPDB has not yet been made. After allotment of shares, it will be pre-sented as share capital of the company.

3.7 Status of foreign loanForeign loan was initially transferred from BPDB on 01 June 2003. Periodical dues of principal and interest are transferred to Debt Service Liability (DSL).

3.8 Foreign currency transactionsForeign currency transactions are converted at the rates ruling on the dates of transactions in accordance with BAS 21 “The Effects of Changes in Foreign Exchange Rates”. Foreign currency monetary assets and liabilities at the balance sheet date are translated at the rate prevailing on that date. Exchange losses/(gain) arising out of the said conversion is recognised as an expense/(income) for the year.

3.9 ProvisionsA provision is recognised on the balance sheet date if as a result of past events, the company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

3.10 Employee benefitsEmployees’ provident fund

The company has established a Contributory Provident Fund (CPF) scheme for its eligible permanent employ-ees. The fund is wholly administered by a Board of Trustees. No part of the fund is included in the assets of the company.

Group insurance

The company has also a group insurance scheme for its permanent employees, premium for which is being charged to income statement annually as per policy.

Gratuity

The company also maintains an unfunded gratuity scheme for regular employees, provision for which has been made in account. Employees are entitled to gratuity benefit after completion of minimum 3 years’ of service in the company but provision has been made for persons who have not completed 3 years. The gratuity is calculated on the last basic salary and is payable at the rate of two months’ basic salary for every completed year of service.

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3.11 RevenueSales revenue has been calculated as per Power Purchase Agreement (PPA) and its first amendment signed between BPDB and APSCL. The main elements of the sales revenue are as follows:A. Capacity payments a) Depreciation on fixed assets b) Cost of capital i.e., interest on borrowed capital c) Return on equity d) Repairs and maintenance of plant, machinery and equipment e) Salary and allowancesB. Energy payments i.e. fuel cost (gas bill) The capacity payment is fixed in nature but the energy payment is variable with volume of generation.

3.12 Provisional interest expenseProvisional interest expenses are calculated @ 3% on government loan and @ 8% on foreign loan regarding overhauling project units 3, 4 and 5.

3.13 TaxationCurrent taxThe tax currently payable is based on taxable income for the year. Taxable income differs from net income as reported in the Statement of Profit or Loss and Other Comprehensive Income because it excludes items of in-come or expenses that are taxable or deductible in other year and it further excludes items that are never tax-able or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted as of Statement of financial position (balance sheet) date.

The company has a taxable loss for depreciation calculated using the third schedule of the Income Tax Ordi-nance 1984.

3.14 Workers’ profit participation fundThis is made in terms of section 234(1)(b) of Bangladesh Labour (Amendment) Act 2013, 5% of the net profit of each year, not later than nine (9) months from the close of that period, is required to be transferred to the Fund, the proportion of the payment to the Participation Fund and the Welfare Fund being 80:10. The remain-ing 10% of the amount of net profit shall be paid by the company to the workers’ Welfare Foundation Fund, as formed under the provision of the Bangladesh Worker’s Welfare Foundation Acts, 2006.

3.15 Significant contractPower Purchase Agreement (PPA)

The company has entered into a PPA with BPDB, whereby BPDB agrees to purchase all net electricity outputs of the facility. BPDB is also required to provide natural gas to the facility sufficient to meet the full requirements of the facility. The PPA can be extended during the final twelve months of its term upon mutual agreement of the company and BPDB.

The company delivers electricity only as requested by BPDB. The price paid by BPDB for electricity comprises a fuel cost recovery tariff and an operations and maintenance tariff.

The operations and maintenance tariff is structured to cover the operating, administration and general ex-penses of the company, as well as to provide a return on equity to the shareholders. The operations and main-tenance tariff is based on the number of kilowatt-hours of electricity delivered.

The company has recognised revenue of BDT 7,094,702,639 during the year ended 30 June 2015 and BDT 6,971,021,960 during the year ended 30 June 2014 under this agreement.

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2015 2014

BDT BDT

4. Property, plant and equipment4. Property, plant and equipmentCostOpening balance 34,436,114,844 34,405,866,127Add : Addition during the year 20,398,000 30,248,717Closing balance 34,456,512,844 34,436,114,844Accumulated depreciationOpening balance 12,850,003,267 11,046,599,705Add : Charge for the year 1,766,923,120 1,803,403,562Closing balance 14,616,926,387 12,850,003,267Written down value at 30 June 2015 19,839,586,457 21,586,111,577Details are shown in Annex 1.

5 Deferred expenditure5 Deferred expenditureLicence fee (note 5.1) - -Deferred expenditure (note 5.2) 521,836,590 807,170,999

521,836,590 807,170,9995.1 Licence fee

Opening balance - 724,000Less : Amortisation - 724,000Closing balance - -As per Bangladesh Energy Regulatory Commission (BERC) Licence Regulation 2006, every power generation entity should obtain a licence and pay licence fee of BDT 5,000 against each Mega Watt (MW) of installed capacity with appli-cation. The company paid an amount of BDT 3,620,000 against its 724 MW of installed capacity for obtaining licence.

5.2 Deferred expenditureOpening balance 807,170,999 854,024,325Add : Addition during the year - 69,040,294 807,170,999 923,064,619Less : Amortisation 285,334,409 115,893,620Closing balance 521,836,590 807,170,999

Deferred expenditure consists of cost of spare parts of plant and machinery and others major repair and maintenance expenses. As per decision of 17th meeting of Audit Committee of APSCL, deferred expenditure should be amortised for a period of maximum 10 years. In the year 2014-15 the Audit Committee of APSCL, in its 57th meeting decided to revise life time of some items in deferred expenditure which has been approved in 201th Board Meeting of APSCL.

Details are shown in Annex 2A.

6. Capital works-in-progress6. Capital works-in-progress225 MW Combined Cycle Power Plant (note 6.1) 16,820,218,413 10,636,422,580450 MW (South) Project (note 6.2) 25,747,606,583 15,214,063,369450 MW (North) Project (note 6.3) 9,336,067,333 2,255,424,010200 MW Modular Project (note 6.4) 168,164,667 168,164,667 52,072,056,996 28,274,074,626

APSCL is going to implement new power plant namely, 225 MW Combined Cycle Power Plant, 450 MW (South), 450 MW (North) and 200 MW Modular Project. All cost in such projects are shown as capital works-in-progress.

63



2015 2014

BDT BDT

6.1 225 MW Combined Cycle Power PlantFor details, see Annex 3A.Opening balance 10,636,422,580 2,621,594,996Add : Addition during the year 6,183,795,833 8,014,827,584Closing balance 16,820,218,413 10,636,422,580

6.2 450 MW (South) ProjectFor details, see Annex 3B.Opening balance 15,214,063,369 10,198,653,454Add : addition during the year 10,533,543,214 5,015,409,915Closing balance 25,747,606,583 15,214,063,369

6.3 450 MW (North) ProjectFor details, see Annex 3C.Opening balance 2,255,424,010 22,138,511Add : addition during the year 7,080,643,323 2,233,285,499Closing balance 9,336,067,333 2,255,424,010

6.4 200 MW Modular ProjectFor details, see Annex 3D.Opening balance 168,164,667 301,700Add : addition during the year - 167,862,967Closing balance 168,164,667 168,164,667

7. Stocks in stores7. Stocks in storesOpening balance 697,972,141 619,145,229Add: Purchase during the year 316,269,554 283,030,546 1,014,241,695 902,175,775Less: Goods-in-transit (reduction during the year) (118,713,828) 1,862,091Consumption during the year 244,976,511 202,341,543Closing balance 887,979,012 697,972,141

The above figure represents the cost price of spare parts and other materials.

8. Advances, deposits and prepayments8. Advances, deposits and prepaymentsAdvancesTemporary advance 13,561,600 8,118,515Income tax deducted at source 11,066,193 18,273,779Advance to Agrodoot Bangladesh Scouts 120,000 120,000Prepaid festival allowance 565,380 -Advance income tax 3,000,000 -Loan to 450 MW (North) project 1,796,903 - 30,110,076 26,512,294DepositsCustoms security deposit (For 50 MW gas engine project) 50,500 50,500Titas Gas T & D Ltd (security deposit) 635,485 635,485 685,985 685,985 30,796,061 27,198,279

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2015 2014

BDT BDT

9. Accounts receivables9. Accounts receivablesReceivable from BPDBOpening balance 2,268,405,064 4,754,366,967Add: Electricity sales to BPDB during the year 7,094,702,639 6,971,021,960 Previous year adjustment for 50 MW fuel cost - 46,839,969 Other adjustment with BPDB - 677,760 Debt service liability due (note 9.1) (21,353,328) 68,227,203 9,341,754,375 11,841,133,859Less: Fuel cost paid by BPDB 3,296,120,153 4,306,113,836 Cash collection during the year 3,215,276,776 5,207,785,478 Uncollectable receivable written-off 58,829,480 58,829,481 2,771,527,966 2,268,405,064

As per decision of 149th board meeting, a sum of BDT 235,317,922, receivable from Bangladesh Power Develop-ment Board (BPDB) against sale of energy is to be written-off equally 4 years. As a result, a sum of BDT 58,829,481 is charged during the year. Accordingly, the accounts have been rectified and receivable balance has been reduced to that extent.

9.1 Debt service liability (DSL)

DSL against government loan (note 9.1.1) 1,240,599,246 751,355,070DSL against foreign loan (note 9.1.2) 7,725,862,002 7,557,752,850 8,966,461,248 8,309,107,920Less: Adjusted DSL 4,061,851,228 3,425,851,228 4,904,610,020 4,883,256,692Less: Opening balance 4,883,256,692 4,951,483,895Closing balance 21,353,328 (68,227,203)

9.1.1 Debt service liability (DSL) against government loan

Opening balance 751,355,070 545,317,422Add: Principal due during the year 399,729,324 116,110,798 Interest accrued during the year 89,514,852 89,926,850Closing balance 1,240,599,246 751,355,070

Break-up of the above figurePrincipal 825,594,622 425,865,298Interest 415,004,624 325,489,772 1,240,599,246 751,355,070

9.1.2 Debt service liability (DSL) against foreign loan

Opening balance 7,557,752,850 7,037,017,701Add: Principal due during the year 91,668,632 427,205,983 Interest accrued during the year 76,440,512 93,528,750Foreign currency fluctuation loss 8 416Closing balance 7,725,862,002 7,557,752,850Break-up of the above figure :Principal 4,341,275,327 4,249,606,695Interest 3,192,716,024 3,116,275,512Foreign currency fluctuation loss 191,870,651 191,870,643 7,725,862,002 7,557,752,850

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2015 2014

BDT BDT

10. Cash and cash equivalents10. Cash and cash equivalentsCash in hand 142,005 304,296Bank balances (note 10.1) 1,385,590,411 1,447,488,874 1,385,732,416 1,447,793,17010.1 Bank balances with :

Janata Bank Limited 660,367,007 1,112,243,906Mutual Trust Bank Limited 115,288,212 108,527,523HSBC 15,027,319 93,261,849Shahjalal Islami Bank Limited 31,628,989 29,509,654EXIM Bank Limited 236,771,915 28,886,075Pubali Bank Limited 19,234,854 23,951,638Bangladesh Development Bank Limited 13,447,171 12,394,034Jamuna Bank Limited 23,773,826 12,357,103The City Bank Limited 11,279,040 10,466,540IFIC Bank Limited 21,658,823 10,450,012Trust Bank Limited 5,299,455 3,131,041Standard Chartered Bank 25,562,820 2,285,015Sonali Bank Limited 18,529,201 24,484AB Bank Limited 125,251,521 -Prime Bank Limited 10,373,675 -The Premier Bank Limited 52,096,583 -

1,385,590,411 1,447,488,874

11. Share capital11. Share capitalAuthorised capital300,000,000 ordinary shares of BDT 100 each 30,000,000,000 30,000,000,000

Issued, subscribed and paid-up capital66,150,000 ordinary shares of BDT 100 each 6,615,000,000 6,615,000,000

Shareholding position:Name of shareholder/representative No. of sharesBangladesh Power Development Board (BPDB) 66,147,098Power Division Secretary, MOPEMR 1,900Energy and Mineral Resources Division Secretary, MOPEMR 1Finance Division Secretary, Ministry of Finance 1,000Planning Division Secretary, Ministry of Planning 1Total number of shares 66,150,000

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2015 2014

BDT BDT

12. Equity of BPDB12. Equity of BPDBAssets as on 01 June 2003 16,057,600,000 16,057,600,000Assets take over for overhauling Unit # 3 1,630,955,483 1,630,955,483Total assets transferred from BPDB 17,688,555,483 17,688,555,483Government loan 971,682,193 971,682,193Foreign loan 4,289,400,000 4,289,400,000Debt service liability (DSL) 10,252,300,000 10,252,300,000Total liabilities transferred from BPDB 15,513,382,193 15,513,382,193Provision for equity (note 12.1) 4,146,519,000 4,146,519,000Provision for equity (note 12.2) 5,118,841,874 5,118,841,874Provision for equity (note 12.3) 746,080,800 746,080,800 12,186,614,964 12,186,614,964Less : Transferred to paid-up capital 6,614,000,000 6,614,000,000 5,572,614,964 5,572,614,964

12.112.1 Provision for equity (Units # 3, 4 and 5) has been increased for handing over of overhauling projects.

12.212.2 Provision for equity has been added at the time of fixation of new tariff as per proposed vendor’s agreement.

12.312.3 Projects completion report (PCR) of overhauling projects (Unit # 3, 4 and 5) has been completed, so added remaining equity.

13. Direct grant 13. Direct grant 344,182,000 344,182,000

An amount of BDT 344,182,000 was received as grant from Kreditenstalt Fur Wiederaufbau (KFW) in the year 2011. This was initially classified as “Foreign Loan” but as per instruction of PCR, this grant has to be shown as equity of the company after finalisation of Projects Completion Report (PCR). The PCR was finalised in November 2013, following which the said amount has been reclassified as equity for the financial year 2013-14. However, no shares were allotted against the said amount.

14. Retained earnings14. Retained earningsOpening balance 3,111,621,975 2,463,517,020Add: Profit during the year 367,634,407 681,179,955 3,479,256,383 3,144,696,975Less: Dividend payable 33,075,000 33,075,000Closing balance 3,446,181,383 3,111,621,975

15. Debt service liabilities (DSL)15. Debt service liabilities (DSL)Transferred from BPDB 10,252,300,000 10,252,300,000 10,252,300,000 10,252,300,000

Debt service liabilities (DSL) arises from debt service liability in accordance of provisional vendor’s agreement and subsequently it will converted to Equity of BPDB which is under process. It was treated as non-current liabilities in the statement of financial position of APSCL and now it will be treated as subordinated loan and shown as separately in-stead of non- current liabilities as per letter reference no. 2513/BOB/(SOCI)/unnoyn-01/85 dated 27 November 2012 of BPDB.

67



2015 2014

BDT BDT

16. Government loan16. Government loanOpening balance 2,894,298,607 2,588,956,460Add: addition for overhauling project (adjustment) - 413,098,344 addition during the year (450 MW- North) 551,753,636 8,354,601 3,446,052,243 3,010,409,405Less: Repayment due for the year 399,729,324 116,110,798Closing balance 3,046,322,919 2,894,298,607Break-up of the above figure450 MW (North) 568,789,004 17,035,368Overhauling unit # 3 652,382,193 652,382,193Overhauling unit # 4 and 5 1,825,151,722 2,224,881,046 3,046,322,919 2,894,298,607

17. Foreign loan17. Foreign loanOpening balance 3,200,907,696 2,912,221,050Add: addition during the year (ADB loan) 1,560,975,364 1,323,927,774 addition during the year (IDB loan) 4,950,955,443 895,325,999 9,712,838,503 5,131,474,823Less: repayment during the year 91,668,632 427,205,983 overhauling project adjustment - 1,503,361,144Closing balance 9,621,169,871 3,200,907,696

18. Export credit agency (ECA) loan18. Export credit agency (ECA) loan450 MW (South) Project (note 18.1) 23,233,495,788 14,234,466,856225 MW Project (note 18.2) 11,987,627,446 5,902,168,755 35,221,123,234 20,136,635,611

18.1 For 450 MW (South) Project

CESCE facilities 2,637,694,845 785,279,135HERMES facilities 5,988,443,748 4,440,564,843MIGA facilities 10,408,504,480 7,836,857,106ONDD facilities 3,414,921,907 878,212,615Interest during construction period (IDCP) 783,930,808 293,553,157 23,233,495,788 14,234,466,856

18.2 For 225 MW ProjectHERMES facilities 4,661,132,741 2,763,138,152K-SURE facilities 7,117,513,077 3,110,597,323Interest during construction period (IDCP) 208,981,628 28,433,280 11,987,627,446 5,902,168,755

The company has arranged an ECA loan facility for two new projects namely 225 MW CCGT and 450 MW CCGT power plant, amounting to US$ 193 million and US$ 420 million for the said plant. The loan will be drawn within three years of the availability period and should be repaid with interest within 10 years after the project completion. The ECA loan was received in US$ and it was converted to BDT at the rate prevailing on the disbursement date.

68



2015 2014

BDT BDT

19. Provision for income tax19. Provision for income taxOpening balance 1,007,036,308 925,573,144Add: provision made during the year 100,000,000 120,000,000 1,107,036,308 1,045,573,144Less: payment during the year 21,735,970 38,536,836Closing balance 1,085,300,338 1,007,036,308

20. Liabilities for gratuity20. Liabilities for gratuityOpening balance 175,830,846 156,830,646Add: provision made during the year 28,736,486 24,000,200 204,567,332 180,830,846Less: payment during the year 8,500,000 5,000,000Closing balance 196,067,332 175,830,846

21. Outstanding liabilities21. Outstanding liabilitiesLiabilities for :Expenses (note 21.1) 1,442,094,948 1,121,055,040Interest expense (note 21.2) 650,886,124 650,886,124 2,092,981,072 1,771,941,16421.1 Liabilities for expenses

Fuel cost payable 1,107,913,005 962,437,922Provision for uncollectable receivable 183,793,917 109,872,224Provision for new uniform pay scale of the power sector - 31,955,488Accounts payable 7,025,933 5,614,124Conveyance payable 244,719 5,479,008School fund 3,858,110 3,063,730Overtime expense payable 1,586,170 1,942,541Provision for physical inventory verification 50,000 363,000Elegant builders payable 104,576 104,576Security deposit (contractors and suppliers) 6,890,976 90,976Provision for audit fees 115,000 70,000Income tax consultancy fee payable 60,000 60,000Dividend payable 2,902 1,451VAT payable 78,964,842 -Withholding taxes 51,484,798 - 1,442,094,948 1,121,055,040

21.2 Liabilities for interest expense (For OH projects 3, 4 and 5)Opening balance 650,886,124 650,886,124Add: provision made during the year - -Closing balance 650,886,124 650,886,124

22. Workers’ profit participation fund22. Workers’ profit participation fundOpening balance 40,058,998 48,429,744Add: provision made during the year 23,381,720 40,058,998 63,440,718 88,488,742Less: payment during the year 40,058,998 48,429,744Closing balance 23,381,720 40,058,998

69



2015 2014

BDT BDT

23. Revenue (Sales)23. Revenue (Sales)Capacity payment (note 23.1) 3,368,291,034 3,480,486,509Energy payment (note 23.2) 3,726,411,605 3,490,535,451 7,094,702,639 6,971,021,960

The entire sales of the company are made to Bangladesh Power Development Board and recognised on the basis of Power Purchase agreement with BPDB for various segments of its performance of the said contract, like, capacity payment, energy payment, etc.

23.1 Capacity payment (unit 1,2,3,4,5 and GT-2)July 251,426,313 262,174,873August 251,426,313 262,174,872September 251,426,313 262,174,872October 251,426,313 262,174,872November 251,426,312 262,174,872December 251,426,312 262,174,873January 251,426,312 251,426,313February 251,426,312 251,426,313March 251,426,313 251,426,313April 251,426,313 251,426,313May 224,641,144 251,426,313June 224,641,144 251,426,313 2,963,545,414 3,081,607,112Capacity payment (50 MW)July 29,505,136 33,494,848August 29,505,136 33,494,848September 29,505,136 33,494,848October 29,505,136 33,494,848November 29,505,136 33,494,848December 29,505,136 33,494,848January 29,505,136 33,494,848February 29,505,136 33,494,848March 29,505,136 33,494,848April 29,505,136 33,494,848May 29,505,136 33,494,848June 29,505,136 30,436,069 354,061,632 398,879,397Capacity payment (225 MW)July - -August - -September - -October - -November - -December - -January - -February - -March - -April 141,734,136 -May 90,937,350 -June 87,963,808 - 320,635,294 -Less: Capacity adjustment 269,951,306 -Total capacity payment 3,368,291,034 3,480,486,509

70



2015 2014

BDT BDT

23.2 Energy payment (unit 1, 2, 3, 4, 5 and GT-2)

July 322,003,474 335,393,624August 305,626,056 308,392,445September 257,238,468 280,980,958October 267,162,184 275,290,228November 238,727,199 226,034,128December 256,477,423 181,855,619January 250,103,670 294,706,044February 260,424,546 242,234,480March 304,288,156 267,417,587April 265,422,518 296,781,420May 261,107,542 327,044,003June 293,656,693 264,834,561 3,282,237,929 3,300,965,097Energy payment (50 MW)July 20,461,337 19,248,128August 19,465,373 19,288,557September 19,465,555 18,389,580October 19,568,431 14,275,440November 15,509,240 9,677,804December 13,189,401 11,202,895January 13,995,942 10,160,764February 13,327,183 12,986,611March 14,610,787 18,908,321April 12,948,707 15,522,820May 14,638,268 20,132,343June 16,001,454 19,777,091 193,181,678 189,570,354Energy payment: (225 MW)July - -August - -September - -October - -November - -December - -January - -February - -March - -April 81,567,156 -May 88,694,939 -June 80,729,903 - 250,991,998 -Total energy payment 3,726,411,605 3,490,535,451

24. Cost of sales24. Cost of salesFuel cost - gas and diesel (note 24.1) 3,644,633,696 3,531,423,375Depreciation on plant and machinery (Annex 1) 1,098,944,988 1,137,057,915Depreciation on overhauling (Annex 1) 607,036,786 607,036,786Repair and maintenance (note 24.2) 222,387,084 181,697,414 5,573,002,554 5,457,215,490

71



2015 2014

BDT BDT

24.1 Fuel cost (unit 1,2,3,4,5 and GT-2)July 316,119,033 329,973,536August 294,099,926 313,016,714September 250,160,649 286,803,966October 263,085,817 282,852,653November 239,806,737 232,629,894December 251,156,591 187,463,741January 242,389,392 297,870,732February 255,982,325 244,885,884March 297,946,036 270,846,181April 260,184,974 304,054,932May 257,528,556 320,382,527June 290,834,108 260,936,188 3,219,294,144 3,331,716,948Fuel cost: (50 MW)July 21,265,558 20,726,631August 20,163,090 20,424,439September 20,196,056 19,276,164October 19,955,510 15,174,149November 15,902,488 10,263,229December 13,795,212 11,904,348January 14,564,651 10,752,863February 14,051,070 13,777,525March 15,436,959 19,331,797April 14,152,824 16,249,962May 15,976,315 20,713,210June 17,659,810 20,769,306 203,119,543 199,363,623Fuel cost: (225 MW)July - -August - -September - -October - -November - -December - -January - -February - -March - -April 57,715,084 -May 85,747,213 -June 78,626,092 - 222,088,389 -Total gas 3,644,502,076 3,531,080,571Total fuel cost - gas and dieselGas 3,644,502,076 3,531,080,571Diesel 131,620 342,804 3,644,633,696 3,531,423,375

24.2 Repair and maintenanceChemical and gas consumption 13,974,738 17,341,233Lubricating oil, grease, vaseline, etc. 39,280,466 38,941,816Spare parts 96,907,428 71,404,536Repair and maintenance of plant, machinery and equipment 72,224,452 54,009,829 222,387,084 181,697,414

72



2015 2014

BDT BDT

25. Personnel expenses25. Personnel expensesSalary and allowances (workers) 195,410,538 163,771,467Salary and allowances (officers) 128,808,428 107,231,041Overtime allowance 23,487,705 24,988,668Employer’s contribution to CPF 17,884,317 14,013,765Gratuity expense (worker) 14,921,774 13,825,460Festival allowances (workers) 14,283,537 13,649,104Salaries (casual employees) 14,657,775 12,348,578KPI bonus 14,118,359 11,156,950Domestic gas and electricity for employees 12,306,953 10,454,687Leave encashment 14,272,548 10,147,413Gratuity expense (officers) 13,059,212 9,597,740Festival allowances (officers) 10,580,646 9,383,256Conveyance 2,057,689 5,479,008Salary and allowances (directors) 6,745,599 5,309,680Group insurance premium 3,321,370 2,738,351Education allowance 1,874,313 1,878,695Uniform and liveries 4,473,740 1,300,600Festival allowances (casual employees) 1,798,027 1,054,416Employees welfare and recreation expenses 649,110 737,710Gratuity (directors) 755,500 577,000Medical expenses reimbursed 3,090,365 535,353Festival allowances (directors) 590,900 459,000Gratuity (casual employees) 569,730 409,800 499,718,135 421,047,742Less: House rent recovery 53,410,338 28,604,324 446,307,797 392,443,418

26. Office and other expenses26. Office and other expensesMiscellaneous expenses 5,857,142 5,770,900Advertising and procurement processing expenses 3,972,299 3,739,643Printing and stationery 3,389,372 3,192,252Training and education 1,485,954 2,300,104Postage, internet and telephone 2,395,726 1,717,100Travelling and daily allowances 2,197,152 1,143,225AGM and EGM expenses 1,378,236 1,133,091Entertainment 815,104 926,521Committee meeting expenses 1,091,623 732,481Directors’ honorarium 1,006,250 690,000Defence service expense 634,627 567,378Bank charges 383,336 511,721Physical inventory verification - 481,000Board meeting expenses 551,657 413,196Rent expense (Dhaka office) 361,188 233,664Recruitment and appointment affairs expenses 51,850 178,028Newspapers and periodicals 178,184 153,680Legal expenses 206,250 142,428Audit fees 115,000 70,000Hospitalisation expense 199,890 31,651 26,270,840 24,128,063

73



2015 2014

BDT BDT

27. Repair and maintenance27. Repair and maintenanceBuilding maintenance 18,885,475 28,480,965Cleaning and gardening 7,008,169 6,482,789Fuel for transport 4,839,474 5,444,150Roads and other civil maintenance 671,033 3,091,113Vehicle maintenance 2,946,176 2,610,906Annual licence renewal fees 2,500,000 2,500,000Electrical maintenance 2,465,183 1,980,143Transformer oil, silica jell, etc. 1,929,420 1,968,326Rent, rates and taxes 3,316,462 1,550,273Consultancy services 1,731,191 1,535,548Other operating expenses 1,843,244 1,148,316Carriage inward, freight and handling 786,303 1,028,474Insurance expenses 710,108 619,632Repair of office furniture 20,200 197,550Repair of office equipment 143,614 158,435Monitoring log sheet - 10,000 49,796,052 58,806,620

28. Depreciation expenses28. Depreciation expensesAs per existing value 60,941,346 59,308,860 60,941,346 59,308,860Details are shown in Annex 1.

29. Provision for uncollectable receivable29. Provision for uncollectable receivableDuring this year 73,921,693 54,002,685 73,921,693 54,002,685

Capacity payment is not considered for approving the sales bill by BPDB and after last dependable capacity test BPDB applied power factor adjustment on measured capacity. Moreover dependable capacity decreased due to power factor adjustment by BPDB. So, APSCL prepared sales bill on the basis of that measured capacity. The company maintained regular contact with BPDB and also negotiate for collecting the amount.

30. Uncollectable receivable written-off30. Uncollectable receivable written-offDuring this year 58,829,481 58,829,481

31. Provision written-off31. Provision written-offProvision for contribution to provident fund - 28,769,353Arrear salaries and allowances - 26,323,469Provision for acid cleaning - 8,000,000 - 63,092,822Less: Transferred to profit and loss A/C - 63,092,822Closing balance - -

74



2015 2014

BDT BDT

32. Non-operating income32. Non-operating incomeInterest income 104,116,223 188,459,474Sale of scraps 10,834,183 13,892,297Received electricity bill 7,994,019 5,621,199House rent recovery 960,713 1,676,851Sale of tender documents 1,300,892 836,500Forfeiture of pay order 706,326 363,456Other income 9,886,310 197,455Income from recruitment 810,000 130,400Sale of hydrogen gas 12,889 27,343Income from power plant training centre 51,474 3,450

136,673,029 211,208,425

33. Financial expenses33. Financial expensesInterest on government loan 89,514,850 412,000Interest on foreign loan 76,440,511 19,105,802Provisional interest expense - 163,937,799Foreign currency fluctuation loss 8 416 165,955,369 183,456,017

34.34. Number of employees who received remuneration throughout the financial year of not less than BDT 36,000 was 312 and none receiving below BDT 3,000 per month.

35.35. Figures in these notes and in the annexed financial statements have been rounded of to the nearest BDT.

36.36. Previous year’s figures have been rearranged, wherever considered necessary, to conform to current year’s presenta-tion without causing any impact on the operating results for the year and value of assets and liabilities at the end of that year as shown in the financial statements under reporting.



Dhaka, BangladeshDated, 03 December 2015

75


detAils of property, plAnt And equipmentdetAils of property, plAnt And equipmentFor the year ended 30 June 2015

Annex 1Annex 1

Particulars

Cost

rate (%)

Depreciationwritten down

value at 30 june 2015 At 01 july 2014

Addition during the

year

disposal during the year

total at 30 june 2015

At 01 july 2014 Charge for the

year total at 30 june

2015

Bdt Bdt Bdt Bdt Bdt Bdt Bdt Bdt

Land 1,180,354 - - 1,180,354 - - - 1,180,354

Building 2,512,706,808 3,564,279 - 2,516,271,087 1.55 - 13.33 577,629,910 52,408,291 630,038,201 1,886,232,886

Plant and machinery 23,318,325,887 353,768 - 23,318,679,655 7.14 - 40 9,700,318,162 1,098,944,988 10,799,263,150 12,519,416,505

office equipment 33,060,805 7,460,349 - 40,521,154 10 - 33.33 21,175,247 4,420,686 25,595,933 14,925,221

Vehicles 59,104,346 8,371,500 - 67,475,846 5 17,434,050 2,955,826 20,389,876 47,085,970

Furniture and fixtures 13,221,644 648,104 - 13,869,748 10 8,841,586 1,156,544 9,998,130 3,871,618

overhauling project (*) 8,498,515,000 - - 8,498,515,000 2,524,604,312 607,036,786 3,131,641,098 5,366,873,902

total at 30 june 2015 34,436,114,844 20,398,000 - 34,456,512,844 12,850,003,267 1,766,923,120 14,616,926,388 19,839,586,456

total at 30 june 2014 34,405,866,127 30,248,717 - 34,436,114,844 11,046,599,705 1,803,403,562 12,850,003,267 21,586,111,577

(*) Transferred from projects in progress for (units # 3, 4 and 5)

Annex 1 (a)Annex 1 (a)Total depreciation 1,766,923,120 Less : Depreciation of plant and machinery 1,098,944,988 Less : Depreciation of overhauling project 607,036,786 60,941,346

76


stAtement of deferred expenditurestAtement of deferred expenditureFor the year ended 30 June 2015

Annex 2Annex 2

Period

Addition during the period Useful life (years)

Amortisation up to 30 June 2014 (as

per previous life)

Amortisation up to 30 June 2015 (as

per revised life) Already charged as amortisation up to

30 June 2014

Amortisation (July 2014 to June 2015)

Closing balance as at 30 June 2015

BDT BDT BDT BDT BDT

2008-09 12,060,466 6 7,236,280 12,060,466 7,236,280 4,824,187 -

2009-10 16,536,129 5 6,482,408 11,820,420 6,482,408 5,338,012 4,715,709

2010-11 30,642,324 4 12,316,762 17,518,117 12,316,762 5,201,355 13,124,207

2011-12 821,401,752 3 255,506,078 427,332,095 255,506,078 171,859,257 394,036,417

2012-13 182,419,488 2 36,483,898 118,869,910 36,483,898 82,386,013 63,549,578

2013-14 69,040,294 1 6,904,029 22,629,615 6,904,029 15,725,586 46,410,679

Total 1,132,100,454 - 324,929,455 610,230,624 324,929,455 285,334,409 521,836,590

77


stAtement of deferred expenditure for the period ended 30 June 2015stAtement of deferred expenditure for the period ended 30 June 2015

Annex 2AAnnex 2A

Year Particulars DivisionDeferred exp.value

in BDT

Useful life

(years)

Per year expenditure

BDT

Balance of deferred

expenditure BDT

Utiliza-tion year (2013-14)

Total amor-tisation

Balance of deferred expendi-ture BDT

Revised life in years

Annual amortisa-tion as per revised life

Amortisation up to 30 June

2015 as per revised life

Already charged as

amortisation up to 30

June 2014

Amortisa-tion 2014-

15 BDT

Balance as at 30 June 2015 BDT

2008-2009

Combustion chamber GT # 1 1,210,874 10 121,087 1,089,787 6 726,524 484,350 7 172,982 1,210,874 726,524 484,350 0

Gland ring P- 144 GT # 1 2,440,663 10 244,066 2,196,597 6 1,464,398 976,265 7 348,666 2,440,663 1,464,398 976,265 0

Gland ring P- 145 GT 2 2,440,663 10 244,066 2,196,597 6 1,464,398 976,265 7 348,666 2,440,663 1,464,398 976,265 0

DC power supply unit GT # 2 1,018,266 10 101,827 916,440 6 610,960 407,307 7 145,467 1,018,266 610,960 407,307 0

Lead acid industrial battery GT # 1 4,949,999 10 495,000 4,454,999 6 2,970,000 1,980,000 7 707,143 4,949,999 2,970,000 1,980,000 0

2009-10

Combustion can GT 2 1,958,867 10 195,887 1,762,980 5 979,434 979,434 6 326,478 1,958,867 979,434 979,434 0

Rectifier OEC Generator 7,434,637 10 743,464 6,691,174 5 3,717,319 3,717,319 8 929,330 5,575,978 3,717,319 1,858,659 1,858,659

Gravel filter (stone) Switchyard 7,142,625 20 357,131 6,785,494 5 1,785,656 5,356,969 10 714,263 4,285,575 1,785,656 2,499,919 2,857,050

2010-11

Ball joint Boiler 7,790,760 10 779,076 7,011,684 4 3,116,304 4,674,456 8 973,845 4,869,225 3,116,304 1,752,921 2,921,535

Bush Boiler 1,877,200 10 187,720 1,689,480 4 750,880 1,126,320 8 234,650 1,173,250 750,880 422,370 703,950

Gravel filter (stone) Switchyard 372,959 10 37,296 335,663 4 149,184 223,775 10 37,296 186,480 149,184 37,296 186,480

Air preheater tube Boiler 13,383,172 10 1,338,317 12,044,854 4 5,353,269 8,029,903 10 1,338,317 6,691,586 5,353,269 1,338,317 6,691,586

230 KV Sf6 circuit breaker with accessories

Sub-Station

2,145,999 10 214,600 1,931,400 4 858,400 1,287,600 10 214,600 1,073,000 858,400 214,600 1,073,000

Flexible hose Turbine 1,877,200 10 187,720 1,689,480 4 750,880 1,126,320 5 375,440 1,877,200 750,880 1,126,320 0

132 KV single phase hermitically sealed outdoor current

Sub-Station

3,095,314 10 309,531 2,785,783 4 1,238,126 1,857,189 10 309,531 1,547,657 1,238,126 309,531 1,547,657

Computer network accessories 99,720 3 33,240 66,480 3 99,720 0 3 33,240 99,720 99,720 0 0

2011-12

Tilting pad for thrust bearing unit with p/no.31 thrust pad

Boiler 5,468,557 10 546,856 4,921,701 3 1,640,567 3,827,990 8 683,570 2,734,279 1,640,567 1,093,711 2,701,039

Thrust pad Boiler 4,102,718 10 410,272 3,692,446 3 1,230,815 2,871,902 8 512,840 2,051,359 1,230,815 820,544 2,051,359

Round sealing cord Boiler 12,801,250 4 3,200,313 9,600,938 3 9,600,938 3,200,313 4 3,200,313 12,801,250 9,600,938 3,200,313 0

Round sealing card Boiler 7,315,000 4 1,828,750 5,486,250 3 5,486,250 1,828,750 4 1,828,750 7,315,000 5,486,250 1,828,750 0

New pipe line GT -2 1,886,500 10 188,650 1,697,850 3 565,950 1,320,550 4 471,625 1,886,500 565,950 1,320,550 0

LP blade carrier Unit - 4 406,280,010 10 40,628,001 365,652,009 3 121,884,003 284,396,007 8 50,785,001 203,140,005 121,884,003 81,256,002 203,140,005

Registration fee of Joint Stock Company

11,259,688 10 1,125,969 10,133,719 3 3,377,906 7,881,782 4 2,814,922 11,259,688 3,377,906 7,881,782 0

Turbine blade Turbine 372,288,029 10 37,228,803 335,059,226 3 111,686,409 260,601,620 8 46,536,004 186,144,015 111,686,409 74,457,606 186,144,015

2012-13

Supply of turbine blade, acces-sories and spare parts

Turbine, Unit -1

173,014,637 10 17,301,464 155,713,173 2 34,602,927 138,411,710 5 38,447,697 115,343,091 34,602,927 80,740,164 57,671,546

Solar panel 9,404,851 10 940,485 8,464,366 2 1,880,970 7,523,881 8 1,175,606 3,526,819 1,880,970 1,645,849 5,878,032

2013-14

Shaft with keys Turbine 4,605,795 10 460,580 4,145,216 1 460,580 4,145,216 8 575,724 1,151,449 460,580 690,869 3,454,346

Complete rotor assembly Turbine 10,889,280 10 1,088,928 9,800,352 1 1,088,928 9,800,352 6 1,814,880 3,629,760 1,088,928 2,540,832 7,259,520

Service payment for overhauling Unit - 04 32,866,133 10 3,286,613 29,579,520 1 3,286,613 29,579,520 6 5,477,689 10,955,378 3,286,613 7,668,764 21,910,755

Service payment for overhauling Unit - 05 20,679,086 10 2,067,909 18,611,177 1 2,067,909 18,611,177 6 3,446,514 6,893,029 2,067,909 4,825,120 13,786,057

Total 1,132,100,454 115,893,620 1,016,206,834 324,896,215 807,204,239 164,981,048 610,230,624 324,896,215 285,334,409 521,836,590

78


development/proJect costdevelopment/proJect costFor the year ended 30 June 2015

Annex 3Annex 3

Summary of project cost

Particulars01 July 2014 Addition during the year 30 June 2015

BDT BDT BDT

225 MW Combined Cycle Power Plant 10,636,422,581 6,183,795,833 16,820,218,414

450 MW (South) Project 15,214,063,369 10,533,543,214 25,747,606,583

450 MW (North) Project 2,255,424,010 7,080,643,323 9,336,067,333

200 MW Modular Project 168,164,667 - 168,164,667

Total 28,274,074,627 23,797,982,370 52,072,056,997

79


development/proJect costdevelopment/proJect costFor the year ended 30 June 2015

Annex 3AAnnex 3AWork in progress A/C - For 225 MW Combined Cycle Power Plant

Particulars 01 July 2014 Addition during the year 30 June 2015BDT BDT BDT

Plant and machinery 5,173,218,308 5,537,629,139 10,710,847,447Advance payment against LC 2,035,083,078 - 2,035,083,078Premium 1,856,064,509 - 1,856,064,509CD VAT 803,537,902 274,433,960 1,077,971,862Fees, rent, rates and taxes 462,043,455 140,188,984 602,232,439LC commission 159,397,771 - 159,397,771Legal expense 66,173,813 92,000 66,265,813Interest expense 41,316,222 213,055,233 254,371,455Civil works 22,232,321 141,046 22,373,367Salary and allowances 5,596,087 4,822,475 10,418,562Consultancy services 4,065,351 3,583,490 7,648,841Land development 3,701,442 - 3,701,442Store equipment - 5,947,774 5,947,774Other operating expense 2,525,763 2,915,023 5,440,786Office furniture 555,250 184,480 739,730Office equipment 492,960 219,300 712,260Printing and stationary 192,271 97,530 289,801Travelling and daily allowance 176,828 - 176,828Bank charges and others 40,984 372,628 413,612Entertainment 8,266 112,771 121,037Total 10,636,422,581 6,183,795,833 16,820,218,414

Annex 3BAnnex 3BWork in progress A/C - For 450 MW (South) Project

Particulars 01 July 2014 Addition during the year 30 June 2015BDT BDT BDT

Premium 5,536,272,023 - 5,536,272,02315% Down payment 3,650,749,943 - 3,650,749,943Plant , machinery and equipment 3,466,244,067 6,579,627,212 10,045,871,279Design, installation and others 866,231,984 1,964,777,590 2,831,009,574Loan processing fee 463,600,277 - 463,600,277LC commission 315,837,566 47,150 315,884,716Interest expense 296,151,720 490,945,011 787,096,731Fees, rent, rent and taxes 294,661,718 374,564,409 669,226,127CD VAT 248,342,332 1,106,102,472 1,354,444,804ORM REF (VAT) 55,773,210 - 55,773,210Salary and allowances 7,262,129 6,924,060 14,186,189Consultancy services 6,547,414 5,387,151 11,934,565Civil works 3,591,498 - 3,591,498Legal fee 1,165,833 - 1,165,833Office furniture 716,344 306,505 1,022,849Office equipment 532,350 333,380 865,730Printing and stationary 165,229 73,413 238,642Other operating expense 162,343 71,800 234,143Bank charges and others 41,885 4,369,096 4,410,981Entertainment 13,504 13,965 27,469Total 15,214,063,369 10,533,543,214 25,747,606,583

80



Annex 3CAnnex 3CWork in progress A/C - For 450 MW (North) Project


BDT BDT BDTAdvance payment 1,417,242,504 - 1,417,242,504Plant and machinery 784,370,674 6,550,064,923 7,334,435,597Consultancy service 29,214,357 547,505 29,761,862Land development 16,591,852 1,938,274 18,530,126Building - 4,541,759 4,541,759Salary and allowances 5,050,138 8,498,807 13,548,945Advertisement 1,778,178 - 1,778,178Fees, rent, rates and taxes 500,000 113,138,188 113,638,188Interest expense 443,516 - 443,516Bank charge - 6,390 6,390CD VAT - 245,055,328 245,055,328CD VAT accounts - 154,944,671 154,944,671Entertainment 87,443 89,604 177,047Legal expense 62,500 - 62,500Office furniture - 731,019 731,019Office equipment 54,000 966,000 1,020,000Printing and stationary 28,848 59,765 88,613Others operating expense - 61,090 61,090Total 2,255,424,010 7,080,643,323 9,336,067,333

Annex 3DAnnex 3DWork in progress A/C - 200 MW Modular Project


BDT BDT BDT

Legal expense 291,000 - 291,000

Entertainment 10,700 - 10,700

Land 167,862,967 - 167,862,967

Total 168,164,667 - 168,164,667

Total work in progress 28,274,074,627 23,797,982,370 52,072,056,996

proxy form

Shareholders’ Attendance Slip

AshugAnj Power stAtion ComPAny Ltd.AshugAnj Power stAtion ComPAny Ltd.registered office: Ashuganj Power station Company Ltd. Ashuganj, Brahmanbaria-3402

AshugAnj Power stAtion ComPAny Ltd.AshugAnj Power stAtion ComPAny Ltd.registered office: Ashuganj Power station Company Ltd. Ashuganj, Brahmanbaria-3402

I/We ........................................................................................................................................................................ of ................................................................................................................................................................................................ being a member of Ashuganj Power Station Company Ltd. hereby appoint Mr./Ms . .................................................................................................................................................................... of .................................................................................................. as my proxy to attend and vote for me on my behalf at the 15th ANNUAL GENERAL MEETING of the Company to be held on Wednesday the 23rd December, 2015 at 7.00 PM at Bijoy Hall, Biddut Bhaban (Level-14), 1 Abdul Gani Road, Dhaka and at any adjournment thereof.

Signed this ....................................... day of ................... 2015.

...................................................................... ...................................................................... Signature of the Shareholder (s) Signature of the Proxy

Number of Shares held ................................

Note :A member eligible to attend and vote at the Annual General Meeting may appoint a proxy to attend and vote on his/her behalf. Proxy form must be affixed with revenue stamps of Tk. 20.00 and submitted to the Registered Office of the Company not later than 48 hours before the time fixed for the Annual General Meeting. Signature Verified

...................................................................... Authorised Signatory

I/we hereby record my attendance at the 15th Annual General Meeting being held on Wednesday the 23rd December, 2015 at 7.00 PM at Bijoy Hall, Biddut Bhaban (Level-14), 1 Abdul Gani Road, Dhaka.

Signature Verified by

...................................................................... ...................................................................... Signature of the Member/Proxy Authorised Signatory of the Company

NOTE :1. Please note that AGM can only be attended by the honorable shareholder or properly constituted proxy. Therefore, any friend or children

accompanying with honorable shareholder or proxy cannot be allowed into the meeting. 2. Please present this slip at the reception desk.

Name of the member/Proxy(in Block Letter)

Folio No.

Mobile Number

E-mail address (if any)

RevenueStamp

Tk. 20.00

FOliO NO

FOliO NO

ASHUGANJ POWER STATION COMPANY LTD.Ashuganj, Brahamnbaria-3402BangladeshPhone : +880 8528 74004Fax : +880 8528 74014, 74044E-mail : [email protected], [email protected] : www.apscl.com

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