ADN Telecom Limited

Financial Statements (Un-audited )

For the period ended 30 September, 2019

Pa rticulars

ASSETS

Non-Current Assets

Property, Plant and Equipmentlntangible Assets

lnvestment

Total Non-Current Assets

Current Assets

Trade and Other Receivables

Advance, Deposits and Prepayments

Cash and Cash Equivalents

Total Current Assets

Total Assets

EQUITY AND LIABILITIES

Capital & Reserves

Share Capital

Share Premium

Retained Earnings

Total Equity

LIABILITIES

Non-Current Liabilities

Term Loan

Lease Liabilities

Deferred Tax LiabilityTotal Non-Current liabilities

Current Liabilities

Short Term Loan

Accrued Expenses

Provision for Workers' Profit Participation Fund (WPPF)

Trade and Other Payables

Provision for Tax LiabilityTotal Current Liabilities

Total Liabilities

Total Equity and Liabilities

Net Asset Value (NAV) Per Share

Date: November 05, 2019

Place: Dhaka

ADN TELECOM LIMlTEDSTATEMENT OF FINANCIAL POSITION

AS AT SEPTEMBER 30, 2019

2

3

4

5

6

7

9

10

77

L2

13

1,535,999,466 1,516,589,254

356,376,468202,7Ls,000

31,966,950591,058,418

448,600,000

83,005,464440,296,196

971,901,660

67,92L,65312,958,055

768,624,336

243,504,044

nts.

II

Y

Managing D rector

348,621,452183,750,861

41_,303,724

573,676,O37

448,600,000

83,005,464

41,1,842,1,73

943,447,637

13

77,957,84X

8,744,898163,806,s26

250,509,254

20,L18,633

81.,204,055

70,032,6231,75,2L3,755

34,024,696320,593,762

564,097,806

L,535,999,466

2L.67

573,L41,6L87,5L6,589,254

21.03

The ahnexed notes form an integral part ofthe financial stateme

ttl it^+^- Il''"""11

933,444,415721,,044

1,0,775,589

944,94L,O48

931,378,634

758,994

10,775,589

942,9t3,217

11,,775,905

67,589,654

8,009,194

206,429,646

28,827,953

322,632,353

Director

Officer

ADN TELECOM LIMITEDSTATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE PERIOD OF SEPTEMBER 30, 2019

Particulars

Net Revenue

Cost of Goods Sold & Services

Gross ProfitOperating Expenses

Administrative Expenses

Distribution and Marketing Expenses

Operating ProfitOther Non-Operating lncome

Financial Expense

Workers Profit Participation Fund (WPPF)

Profit before lncome Tax

Provision for Tax

Current Tax

Deferred Tax

Net Profit After Tax

Other Comprehensive lncome

Total Comprehensive lncome

Basic Earnings Per Share (EPS)

Diluted Earnings Per Share (EPS)

Amount in BDT

30-Sep-19 ll so-sep-ra

L4

15

16

77

26t,413,465150,582,

110,831,151

275,943,Lt6122,110,

93,772,352

(3s,28s,860)

(31,502,809)

(55,788,569)

(33,763,581

(

(59,647,278l'

44,042,482 34,!25,074

1_1

40,468,575 30,480,695

(7,796,742)

817

(6,084,298

133

(1,2,074,5521 (8,863,431)

28,454,023 2L,617,264

28,454,023 2L,6L7,264

20

20

d notes form an integral part of the financial statements.

Director Managing Director

Date: November 05, 2019

Place: Dhaka

19

L9

42,492,004(2,023,4291

32,004,730(1,524,035)

ADN TELECOM LIMITEDSTATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD OF SEPTEMBER 30, 201.9

Particulars

Balance as at 1 July 2018

Net Profit after taxBalance as at 30 September 2018

Balance as at l July 2019

Net Profit after tax

Balance as at 30 September 2019

Ordinary Share

Capital

448,600,000

Share Premium

83,005,464

448,600,000

448,600,000

83,005,464 333,448,114 865,053,578

943,447,63V

28,454,023

83,005,464 41,1,,842,773

28,454,023

448,600,000 83,005,464 440,296,196 971,907,660

Managing Director

Date: November 05, 2019

Place: Dhaka

Director

.r," rorricer

Retained

Earnings

311,830,850

21,,617,264

Amount in BDT

Total

843,436,314

21,617,264

ADN TELECOM LIMITEDSTATEMENT OF CASH FLOWS

FOR THE PERIOD OF SEPTEMBER 30, 2019

Particulars

Cash Flow from Operating Activities

Cash Received from Customers

Cash Paid to Suppliers & Others

Paid for Operating Expenses

Cash generated from Operations

Finance Expenses Paid

lncome Tax Paid

Net Cash Flow from Operating Activities

Cash Flow from lnvesting ActivitiesAcquisition of Property, Plant & Equipments and Intangible Assets

Advance for Land (purchase)/adjustment

Net Cash Flows from /(used) for lnvesting activities

Cash Flow from Financing Activities

Repayment of Long Term Borrowing

Repayment of Short Term Borrowing

Receipt of Short Term Borrowing

Dividend Paid

Repayment to Lease Finance

Fund Received from Lease Finance

Net Cash Flows from/ (used) for Financing Activities

Net Cash lncrease/(Decrease) during the year

,fficer

Date: November 05, 20L9

Place: Dhaka

2s3,679,550(t64,s29,6391

(69,83s,290)

t55,917,260(90,819,s31)

(ss,910,216)

19,3L4,621(3,0s7,21s)

(2,000,000)

14,257,4O7

(18,558,104)

(900,000)

lLg,4s8,104l

( 16,036,188)

(4,93t,2731

t3,214,000(6ss.77s)

(s86,841)

4,800,000

(4,t36,O77l,

(9,336,774l,

47,303,724

t9,247,513(3,624,8s01

t44,641,376l,58,496,2L6

31,956,950 t3,854,842

0.32 0.35

Managing Director

Opening Cash and Cash Equivalents

Closing Cash and Cash Equivalents

Neq\Oper-ating Cash Flow per s

Chairman Director

\4

ADN Telecom LimitedNotes to the Financial Statements

For the period of 30 September, 2019

1.0 Company and its activities

a) Company Profile

ADN Telecom Ltd. (Formerly known as Advanced Data Networks System Limited) was incorporated on 22

September, 2003 under The Companies Act 1994 as a Private Limited Company" lt commenced its commercial

operation in 2003. ADN Telecom Ltd. was converted into Public Ltd Co. from Private Ltd on 25 July, 2012, The

company has been awarded with the ISO 9001:2008 certification for serving its valued customers with the service

of excellent quality"

The registered office of the company is located at Red Crescent Concord Tower, 17 Mohakhali ClA, (19th Floor)

Dhaka- L2L2, Bangladesh. The business office of the company is located at Red Crescent Concord Tower, 17

Mohakhali C/A, (19th Floor) Dhaka- 12L2, Bangladesh.

b) Nature of Business

The principal activities of the company includes providing seamless, secured data & internet connectivity to various

grades of customers using fiber, satellite and wireless solutions. ADN Telecom Ltd. has been providing services in

the market with a high level of success since 2003. ADN Telecom Ltd. is the prime service provider for domestic and

international connectivity services and solutions duly authorized by the Bangladesh Telecommunication Regulatory

Commission (BTRC).

ADN Telecom is a first tier Telecom service provider as well as an lT Enabler Service provider. lt's range of products

allow it to deliver service to mostly corporate, 82B, government, financial institutions, etc. There are future plans to

expand coverage to include 82C products and services.

c) Basis of Preparation

The financial statements have been prepared and the disclosures of information made in accordance with the

requirements of The Companies Act 1994. On the basis of these Regulations, Bangladesh Accounting Standards

(BAS) and Bangladesh Financial Reporting Standards (BFRS) were applied with the applicable standards at the

Financial Position date.

These condensed interim financial information are individual financial statements of ADN Telecom Ltd, and have

been prepared in accordance with lnternational Accounting Standard/Bangladesh Accounting Standard (lAS/BAS)

34: lnterim Financial Reporting and relevant guidelines issued by the Bangladesh Securities and Exchange

Commission and should be read in conjunction with the financial statements of ADN Telecom Ltd. as at and for theyear ended 30 June 2019, the year for which the last full financial statements were prepared. These financial

statements present the financial position and performance of ADN Telecom Ltd.

These financial statements have been prepared in accordance with lnternational Financial Reporting Standards

(IFRS), Bangladesh Financial Reporting Standards (BFRS), the Companies Act 1994, the Securities and Exchange

Rules 1987 and other applicable laws in Bangladesh. The requirements of IFRS and BFRS, to the extent relevant tothese financial statements, do not vary from each other.

These financial statements have been prepared on the historical cost and going concern basis. Measurement at

revalued amounts or fair value does not have significant impact on these financial statements. The amounts in

these financial statements have been rounded off to the nearest BDT except otherwise indicated. Because of these

rounding off, in some instances the totals may not match the sum of individual balances.

d) Significant accounting policies

The same accounting policies and methods of computation have been followed in these condensed interim

financial information as were applied in the preparation of the financial statements of ADN Telecom Ltd. as at and

for the period ended 30 September 2019"

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fn

lnvestment in Associates

This is mode up os follows:

Opening lnvestment in Share

Share of proflt/(loss) of associates

Total

Trade and Other Receivables

This is mode up os follows:Trade Receivable

Other Receivable

Advance, Deposits and Prepayments

This is made up as follows:Porticulars

Advance

Deposits

.Prepayments

7.0 Cash and Cash Equivalents

This is mode up os follows:Cash in Hand

Cash at Bank

+ Bank balances are reconciled at regular intervals to keep the unreconciled balances within non-material level.

8.0 Term Loan

This is mqde up os follows:IDLC

IIDFC

Total

The above balances has been confirmed by IIDFC & IDLC

9.0 Short Term Loan

This is made up os follows:Loan Against Trust Receipts (LATR)

4.0

5.0

5.0

9,946,38s

829,204

L0,775,589

245,252,903

103,368,549

348,52L,452

t47,233,742

33,056,310

3,467,409

183,750,851

482,264

40,82!,460

4L,303,724

42,104,676

35,853,165

77,957,84L

1.1,775,905

Lt,775,905

202,7L5,000

* All the above Advance, Deposits & Prepayments are considered secured by the management.

10.0 Accrued Expenses

This is made up os follows:

Salaries & Allowance

Director Remuneration

Bandwidth and Fiber Rent

I PTSP lnterconnection Charges

Overtime, Holiday Allowance & Conveyance

Provision for Rent

Provision for Bad debts

GratuityVehicle Expense

Mobile Bill

Dividend Payable to SEAF Venture

Provision for others

Utilities Expense

Provision for Workers Profit Participation Funds (WPPF) :

This is mode up os follows:Particu lars

Opening Balance 1st July

Charge during the period

Disbursement during the period

Closing Balance

Trade and Other Payables

This is mode up as follows:Trade Payables

Others Payables

Total

11.0

8,009,194

2,O23,429

to,032,623

to,o32,623

28,827,953

7,796,742

9,085,811

8,009,194

17,095,005

9,085,811

8,009,194

L2.O

170,1.59,034

36,270,611205,429,646

13.0 Provision for !ncome Tax

This is mode up os follows:

For Current Tax

For Deferred Tax

13.1

t3.2

Note- 13.1

Note- 13.2

Note -19

Note-19

28,827,953

t63,806,s2sL92,634,478

60,736,864

28,827,953

Provision for Current Tax

This is mode up os follows:

Opening Balance 1st July

Add: Provision made during the period

Less: Adjustment & Paid during the period

Closing Balance

Provision for Deferred Tax

Opening Balance 1st July

Add: Provision made during the period

Less; Provision realised during the period

Closing Balance

36,024,696 89,564,8L7

2,0o0,ooo 60,736,864

34,O24,696

163,806,525

4,917,8!O

28,827,953

158,731-,426

5,075,100

L68,624,336 163,806,526

L68,624,335

76,973,387

179,000

4,953,249

1,916,981

1,153,108

474,698

L,748,61.4

36,400,117

898,000

421,555

65s,775

106,919

1,708,251

67,589,654

L75,213,755

L63,806,526

L3.2.L Calculation of Deferred Tax:

As on 30 June, 2019

Property, Plant & Equipment

Applicable Tax Rate

Deferred Tax Liability

As on 30 September, 2019

Property, PIant & Equipment

Applicable Tax Rate

Deferred Tax Liability

tc,"y'.ull'*;-li Amount

I

93L,378,634 463,359,989

933,444,415 451,660,599

Temporary

Difference

48L,783,81_6

3s%

468,0'1.8,644

3s%

10

L63,906,526

L68,624,336

14.0 Revenue

This is made up os follows:

Export Services

Local Services

Total

15.0 Cost of Goods Sold & Services

This is made up os follows:Bandwidth Cost

lnfrastructure, Optical Fiber & Network Equipment Cost

Salary & Allowances

Cost of Equipment

Fiber Lease Rent

lP Telephony lnter Connectivity Expenses

BTRC License Fees

Consumable ltems

Entertainment

Fire and Burglary lnsurance Expenses

POP Expenses and Rent

IPTSP Revenue Sharing with BTRC

Equipment Repair & Maintenance

Telephone, Fax, lnternet & Courier

Training & Development

Travelling & Conveyance

Vehicle Expenses

UtilitiesDigital Marketing Business

Depreciation

15.0 Administrative Expenses

This is mode up os follows:Salary & Allowances

Director Remuneration

Group Life lnsurance Premium

Professional & Technical Fees

Telephone, Fax, lnternet & Courier Expenses

Office MaintenanceTravelling and Conveyance

Entertainment Expenses

IPO Expenses

Medical Expenses

Legal Fees

Statio neries

Newspaper, Books & Journals

License & Regulatory Fee

Office Rent

Repairs & Maintenance

Vehicle Expenses

Training & Development Expenses

Utilities Expenses

Amortization Expenses

Depreciation

741,,568,902

\19,744,564267,4L3,465 2t5,943,1t6

s2,402,027

5,753,582

3s,698,s18

5,506,820

L6,888,940

1.,881.,754

7,297,225

41,,208

403,2L9

8,111,545

247,995

404,097

726,172

r29,708

2,221,,s1,5

2,365,392t,619,666

74,882,93t150,582,314 L22,t70,764

19,804, L1 1

600,000

836,446

L,202,3s9

430,485

363,49s

2,291.,435

78,542172,750

286,39s

34,758t77,868

3,310,641

L94,369

L,644,826

L22,3t62,087,722

37,950

1.,609,392

19,823,5 14

600,000

2L,180

1.82,1lt621.,460

973,914

1"1.2,837

467,688

62,84749,744

2t2,rgl38,086

568,605

3,516,154

871,396

1,488,768

448,t3sL,93t,s6l

47,437

1,,737,293

35,285,860 33,763,587

Amount in BDT

,028

15,897,718

4,719,224

30,238,298

r00,275

17,24t,314

2,290,821

115,000't ,049,31.t

90,808

5,943,362

250,32L

492,766

832,205

198,564

348,864

2,226,775

2,128,918

1,235,583

17.0 Distribution and Marketing Expenses

This is made up os follows:Salary & Allowances

Advertisement Expense

Business Promotion Expenses

Travelling and Conveyance

Entertainment Expense

Misc" AD HOC

Pri nti ng

Telephone, Fax, lnternet & Courier

Vehicle Expenses

Training

Tender Participant Expenses

Bad Debts Collection Charges

Bad Debts

19.0

Financial Expenses

This is mode up os follows:lnterest on Term Loan

lnterest on Finance Lease

Bank Service Charges

Exchange (Gain)/Loss

lncome Tax Expenses-this is mode up os follows:Current Tax Expenses

Deferred Tax Expenses/(l ncome)

Earnings Per Share (EPS):

Basic Earnings Per Share (EPS):

This is mode up os follows:Profit Attributable to ordinary Shareholder

Weighted Average Number of Ordinary Shares

Outstanding during the Year

Basic Earnings Per Share

Diluted Earning per Share:

This is mode up os follows:Profit Attributable to Ordinary Shareholder

Total number of Existing share

Diluted Earning Per Share

* EPS has been calculated as per IAS 33.

Note-13.1

Note-13.2

2,s33,483 ll 3.260,09s

362,4s7 ll gt,nt16t,274 ll z0o,szs(21,101)ll (4,7L1.1

3,036,114 3,620,139

7 ,1e6,742 ll 6,084,2s8

4,817,810 ll 2,779,133

72,0t4,552 8,853,431

28,454,023 21,617,254

44,850,000 44,860,000

0.48

20.0

20.L

28,454,023

44,860,000

21,617,264

44,860,000

0.48

19,8s7,774 ll rS,:SZ,a:sL,272,s02ll t,45a,287,64s,ess ll zsot,au

720,407 ll t,Ot+,srcr27,ts4 ll 84,s76

317,0s1 ll 280,062

868,e24ll SSS,OSa

ll 12o,ooo

60,s00 ll 4,2s2

ll 2,200

29,736ll t23,712

34.946 ll

sog,szo ll ,ur,ooo31,502,809 25,883,697

t2

Amount in BDT