information document for direct listing - dhaka stock...

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“If you have any queries about this document, you may consult issuer and issue manager.”

Information Document for Direct Listing

OF

TITAS GAS TRANSMISSION AND DISTRIBUTION COMPANY LIMITED Titas Gas Bhaban, 105, Kazi Nazrul Islam Avenue, Karwan Bazar Commercial Area, Dhaka-1215.

Phone-8112135-42. Fax-880-2-8113031, E-mail: [email protected], [email protected]

Website: www.titasgas.org.bd

Offloading of 21,411,728 ordinary shares of Tk.100.00 each (Face Value Tk. 2,141,172,800.00)

Listing Date with DSE: , 2008 Listing Date with CSE: , 2008

Manager to the Issue

ICB Capital Management Limited

(A Subsidiary of ICB) BSB Building (14th Floor),

8, DIT Avenue, Dhaka.

Date of Information Document: , 2008

The Issue shal l be p laced in “N” Category

Credit Rating by

Credit Rating Agency of Bangladesh (CRAB)

Long Term Short Term Rating AA3 ST - 2

“CONSENT OF THE DHAKA AND CHITTAGONG STOCK EXCHANGE LIMITED HAS BEEN OBTAINED TO THE ISSUE/OFFER OF THESE SECURITIES UNDER THE DHAKA & CHITTAGONG STOCK EXCHANGE (DIRECT LISTING) REGULATIONS, 2006. IT MUST BE DISTINCTLY UNDERSTOOD THAT IN GIVING THIS CONSENT THE EXCHANGES DO NOT TAKE ANY RESPONSIBILITY FOR THE FINANCIAL SOUNDNESS OF THE COMPANY, ANY OF ITS PROJECTS OR THE ISSUE PRICE OF ITS SHARES OR FOR THE CORRECTNESS OF ANY OF THE STATEMENTS MADE OR OPINION EXPRESSED WITH REGARD TO THEM. SUCH RESPONSIBILITY LIES WITH THE ISSUER, ITS DIRECTORS, CHIEF EXECUTIVE OFFICER/CHIEF FINANCIAL OFFICER, ISSUE MANAGER AND/OR AUDITOR.”

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Definition and Elaboration of the abbreviated words and technical terms used in the Information Document

TGTDCL : Titas Gas Transmission & Distribution Company Limited SEC : Securities and Exchange Commission ICML : ICB Capital Management Limited Commission : Securities and Exchange Commission The Company/Issuer : Titas Gas Transmission and Distribution Company Limited Issue : Direct Listing of Shares of TGTDCL DSE : Dhaka Stock Exchange Limited CSE : Chittagong Stock Exchange Limited RJSC : Registrar of Joint Stock Companies & Firms Securities : Shares of TGTDCL Securities Market : The Share Market of Bangladesh Registered Office : Head Office of the Company BO : Beneficiary Owner CDBL : Central Depository Banlgladesh Limited CIB : Credit Information Bureau GOB : Government of Bangladesh DSL : Debt Service Liability EGM : Extra-Ordinary General Meeting AGM : Annual General Meeting ADP : Annual Development Program ADB : Asian Development Bank PDB : Power Development Board PSC : Production Sharing Contract IOC : International Oil Company BPD : Bangladesh Power Development Board DESA : Dhaka Electric Supply Authority DESCO : Dhaka Electric Supply Company REB : Rural Electrification Board BCIC : Bangladesh Chemical Industries Corporation IPP : Independent Power Producer BGFCL : Bangladesh Gas Field Company Limited PSIG : Pounds per Square Inch Gauge BERC : Bangladesh Energy Regulatory Commission BB Project : Brahmaputra Basin Gas Project CGS : City Gate Station DRS : District Regulating Station TBS : Town Bordering Station CP : Cathodic Protection MW : Mega Watt M & R Station : Metering & Regulating Station RDO : Regional Distribution Office DGM : Deputy General Manager GM : General Manager WPPF : Workers Profit Participation Fund VAT : Value Added Tax RMS : Regulating & Metering Station OECF : Overseas Economic Co-Operation Fund ERF : Exchange Rate Fluctuation HR : House Rent MA : Medical Allowance WA : Washing Allowance GPF : General Provident Fund CPF : Contributory Provident Fund NAV : Net Asset Value EPS : Earning Per Share PDF : Price Deficit Fund DCC : Dhaka City Corporation

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Availability of Information Document

Information Document of the Company may be available at the following addresses:

Company Contact Person Contact Number

Titas Gas Transmission and Distribution Company Limited, Titas Gas Bhaban, 105, Kazi Nazrul Islam Avenue, Karwan Bazar Commercial Area, Dhaka-1215.

Khalequzzaman Faruk Company Secretary

Phone : 8112135-42 Fax : 880-2-8113031, E-Mail : [email protected], [email protected] Website : www.titasgas.org.bd

Manager to the Issue Contact Person Contact Number

ICB Capital Management Ltd. BSB Building (14th Floor), 8, DIT Avenue, Dhaka.

Md. Iftikhar-uz-zaman Chief Executive Officer

Phone : 02-7160422, 7160326-27, 9563455 EX-196 Fax : 880-2-9555707 E-mail : [email protected] Website : www.icbcml.com.bd

Stock Exchanges Available at Contact Number

Dhaka Stock Exchange Ltd. 9/F Motijheel C/A, Dhaka-1000.

DSE Library

Phone : 02-9564601-7, 7175705-9 Fax : 88-02-9564727 E-mail : [email protected] Website : www.dsebd.org

Chittagong Stock Exchange Ltd. CSE Building, 1080, sheikh Mujib Road, Chittagong.

CSE Library

Phone : 031-714632-3, 031-720871-3 Website : www. csebd.com

Information Document would also be available on the web site of SEC (www. secbd.org), DSE (www. dsebd.org), CSE (www. csebd.com), Issue Manager (www. icbcml.com.bd) and Public Reference Room of the Securities and Exchange Commission (SEC) for reading and study.

SHARE CAPITAL OF THE COMPANY

Authorised Capital:

As on 30-06-2007 Authorised Capital of the Company was Tk. 3,500,000,000.00 divided into 70,000,000 ordinary shares of Tk. 500.00 each. As on 24-10-2007 the Company enhanced its Authorised Capital to Tk. 20,000,000,000.00 divided into 200,000,000 ordinary shares of Tk. 100.00 each. It is mentionable that as on 24.10.2007 the Company split up its shares from Tk. 500 each to Tk. 100 each. Paid-up Capital: As on 30-06-2007 the paid-up capital of the Company was Tk. 2,388,807,500.00 divided into 47,77,615 ordinary shares of Tk. 500 each. The Company in its Extra Ordinary General Meeting held on October 24, 2007 resolved to convert Tk 1,921,260,000.00 being GOB loan in local currency into equity, which has subsequently been approved in principle by the Government. Accordingly the Company transferred Tk. 1,865,816,200.00 being value of 18,658,162 ordinary shares of Tk. 100.00 each to paid-up capital, which is unpaid local currency loan after payment of Debt Service Liability (DSL) to Government. The Company also declared 43,100,675 bonus shares of Tk. 100.00 each amounting to Tk. 4,310,067,500.00 at the same meeting. As a result the Paid-up capital of the Company stood at Tk. 8,564,691,200.00 divided into 85,646,912 ordinary shares of Tk. 100.00 each.

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Table of Contents

Item Page No. A. Disposal of Shares: 6

Shareholders Resolution in respect of disposal of shares in accordance with the regulation 5 6 of Dhaka/Chittagong Stock Exchange (Direct Listing) Regulations, 2006 B. Risk Factors and Management Perceptions: 9-11

C. Description of Business: 11-12 Information about the Company: Principal products or services of the company: Market for the products or services of the company: The relative contribution to sales and income of each product or service that accounts for more than 10% of the company's total revenue: Name of associates, subsidiary/related holding company and their core areas of business: Distribution procedure of products or services: Competitive conditions in the business: Sources and availability of raw materials and the names of the principal suppliers: Sources of, and requirement for, power, gas and water: Name of customers who purchase 10% or more of the company’s products: Description of any contract, which the company has with its principal suppliers or Customers: Description of any material patents, trademarks, licenses or royalty agreements: Number of total employees of TGTDCL and number of full-time employees of TGTDCL: Production/storage capacity and current utilization:

D. Description of Property: 13-19 Location of the principal plants and other property and the conditions thereof: Property owned by the company or taken on lease: Description of lease holds property & Expiration date of the lease: Mortgage or other type of lien on the property owned by the company:

E. Plan of Operation and discussion on Financial Conditions: 19-26 Internal and external sources of cash: Material commitments for capital expenditure and the expected sources of Funds: Causes of any material changes in income, cost of goods sold, other operating expenses and net income: Seasonal Aspects: Known trends, events or uncertainties: Change in the assets used to pay off any liabilities: Loans taken from the holding/Subsidiary company or loans given to those companies: Future contractual liabilities: Estimated future capital expenditure: Vat, income tax, customs duty or other tax liabilities yet to be paid: Sources of Vat, income tax, customs duty and other tax liabilities yet to be paid: Details of operating lease during last five years: Last five years financial commitment including lease commitment: Personnel related schemes to make provision in future years: Break down of all expenses including fee of issue manager: Revaluation of assets: Last five years transactions between the issuer company and its subsidiary/holding company: Special report from the auditors regarding any allotment of shares to promoters or sponsors: Material information having an impact on the affairs of the company:

F. Directors and Officers: 26-31 Names, ages and positions of all Directors, alternate Directors of the company: Date of first becoming Director and date of expiry of current term: Involvement of Directors with other companies: Involvement of Directors with listed company in terms of dividend and category: Family relationship among directors, alternate directors, nominees and officers: Short bio-data of each Director: Holding of 5% or more shares in the paid-up capital by the Directors or shareholders of the Issuer is loan defaulter in terms of the CIB report of the Bangladesh Bank: Description of senior executives and officers:

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G. Involvement of Officers and Directors in certain legal proceedings: 31 H. Certain Relationships and Related Transactions: 32 Loans taken from, or given to, any director or any person connected with the director: Pecuniary or non-pecuniary interests and facilities enjoyed by a director: I. Executive Compensation: 32 Name and designation with the amount of remuneration paid to the top ten salaried officers in the last accounting year: Aggregate amount of remuneration paid to all officers and directors in the last accounting year: Remuneration paid to any Director who was not an officer during the last accounting year: Contract with any officer or director for the payment of future compensation: Increment of the remuneration to the officers and directors of the company in the current year: J. Options granted to Officers, Directors and Employees of TGTDCL: 33 K. Transaction with Promoters: 33 L. Tangible assets per share: 33-34 M. Ownership of the Company’s Securities: 34 Number of shares owned by the top ten salaried officers, directors and all other officers: N. Description of Securities Outstanding or Being Offered: 35 Dividend, voting and preemption rights of the shares outstanding or being offered: Conversion and liquidation rights of any preferred stock outstanding or being offered: Payment of dividends to common or preferred stockholders: Others material rights of common or preferred stockholders: O. Debt Securities: 35 P. Financial Statements: 36-91 Auditors’ Report: Statement of Changes in Equity: Certificate of Net Fixed Assets per Share: Comparative Income Statements, Balance sheet and Cash Flow Statement for immediate preceding five accounting years: Selected Ratios: Q. Credit Rating Report: 92-112

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A. Disposal of Shares:

Details of offloading of shares by the Existing Shareholders as per Regulation 5 of Dhaka & Chittagong Stock Exchange (Direct Listing) Regulations, 2006

The Company shall offload 21,411,728 ordinary shares of Tk.100.00 each (Face value Tk. 2,141,172,800.00) with a minimum market lot of 50 (fifty) shares following the Regulation 5 of Dhaka & Chittagong Stock Exchange (Direct Listing) Regulations, 2006, the Depository Act, 1999 and regulations issued there under:

1. As resolved in the Board of Titas Gas Transmission & Distribution Company Limited and also as per resolution taken in the EGM of TGTDCL, 25% of the proposed offer (i.e. 21,411,728 shares) to be sold to the general public/institutions at market price.

2. The information Document, as vetted by DSE & CSE, shall be published in at least two widely circulated national dailies (One in English and another in Bengali) minimum 7 (Seven) days before commencement of trade upon listing by DSE & CSE along with an electronic copy for posting in the web page of DSE & CSE.

3. The company shall simultaneously submit the vetted Information Document with all exhibits to SEC, to the stock Exchanges where it tends to list its securities.

4. The existing shareholders of the company shall sell their shares through brokers of the exchange upon listing.

5. No existing shareholder of the company shall sell more than 50% of his existing shareholdings until the company holds the Annual General Meeting after completion of one full accounting year of the company upon listing with the Exchanges.

6. The conditions stated in 4 and 5 is subject to the provision that the existing shareholders shall offer for sell at least 10% of the shareholdings in the company within 30(thirty) working days from the date of listing.

7. Declaration about Listing of Shares with the Stock Exchange(s):

Applications have been made to the Dhaka and Chittagong Stock Exchanges for permission of the shares of the company for dealing in both the said Stock Exchanges and for the quotation of the stock exchanges. After fulfillment of all requirements by the Company, the Exchanges shall list the Company’s shares within three weeks from the date of Publication of the Information Document, as mentioned in regulation 4, under intimation to the Commission, provided there is no contrary opinion of the Commission in this respect.

In case of failure to fulfill the requirements by the company, the Exchanges shall reject the application for listing showing reasons thereof, under intimation to the Securities and Exchange Commission within 60 (sixty) days from the date of application.

Shareholders Resolution in respect of disposal of shares in accordance with the regulation 5 of Dhaka/Chittagong Stock Exchange (Direct Listing) Regulations, 2006 We the existing shareholders of Titas Gas Transmission and Distribution Company Limited (TGTDCL) declare that- ii ) We shall sell our shares through the exchanges (DSE/CSE) upon listing; ii ) We shall not sell more than 50% of our existing shareholdings until the Company holds the Annual General Meeting after completion of one full accounting year of the Company upon listing with the exchanges (DSE/CSE); iii) We shall offer for sell at least 10% of the shareholdings in the Company within 30 (thirty) working days from the date of listing.

Sd/- (Jalal Ahmed)

(C.M. Yousuf Hossain)

Sd/- (Major (Retd.) Md. Muqtadir Ali)

Sd/-

(Md. Mukbul-E-Elahi)

Sd/-

(Md. Mahbubur Rahman)

Sd/-

(Golam Mostafa Talukder)

Sd/-

(Md. Yousuf Ali Talukder)

Sd/-

(Jalal Ahmed) Representative of Petrobangl

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Date: May 07, 2008

To The Secretary Dhaka Stock Exchange Limited Dhaka.

Dear Sir,

UNDERTAKING

We undertake, unconditionally, to abide by the Listing Regulations of the Dhaka Stock Exchange Limited as well as other relevant securities laws which presently are, or hereinafter may be in force.

We further undertake:

(1) That our shares and securities shall be quoted on the Ready Quotation List and/or the Cleared List at the discretion of the Exchange.

(2) That the Exchange shall not be bound by our request to remove the shares or securities from the ready Quotation List and/or the Cleared List.

(3) That the Exchange shall have the right, at any time to suspend or remove the said shares or securities for any reason which the Exchange considers sufficient in public interest.

(4) That such provision in the Articles of Association of our Company or in any declaration or basis relating to any security as are or otherwise not deemed by the Exchange to be in conformity with the Listing Regulations of the Exchange shall, upon being called upon by the Exchange, be amended to supersede the Articles of Association of our Company or the declaration or basis relating to any security; and

(5) That our company and /or the security may be delisted by the Exchange in the event of non-compliance and breach of the Regulations and/or of this undertaking after giving an opportunity of being heard to us.

Yours faithfully,

Sd/- (Md. Abdullah) Managing Director

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Date: May 07, 2008

To The Board of Directors Chittagong Stock Exchange Limited Chittagong.

UNDERTAKING

We undertake, unconditionally, to abide by the Listing Regulations of the Chittagong Stock Exchange (Guarantee) Limited which presently are, or hereinafter may be in force.

We further undertake:

(1) That our shares and securities shall be quoted on the Ready Quotation board and/or the Cleared List at the discretion of the Exchange.

(2) That the Exchange shall not be bound by our request to remove the Shares or Securities from the Ready Quotation and/or the Cleared List.

(3) That the Exchange shall have the right, at any time to suspend or remove the said shares and securities for any reason which the Exchange considers sufficient in public interest.

(4) That such provision in the Articles of Association of our Company or in any declaration or agreement relating to any other security as are or otherwise not deemed by the Exchange to be in conformity with the Listing Regulations of the Exchange shall, upon being called upon by the Exchange, be amended to supersede the Articles of Association of our Company or the nominee relating to the other Securities to the extent indicated by the Exchange for purpose of amendment and we shall not raise any objection in relation to a direction by the Exchange for such amendment; and

(5) That our Company and/or the Security may be delisted by the Exchange in the event of non-compliance and breach of the Regulations and/or of this undertaking.

Yours faithfully,

Sd/- (Md. Abdullah) Managing Director

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STATEMENT REGARDING HOLDING OF ANNUAL GENERAL MEETING OF THE COMPANY

No. of AGM Date of Hold on Financial Year

1ST AGM 2ND AGM 3RD AGM 4TH AGM 5TH AGM 6TH AGM 7TH AGM 8TH AGM 9TH AGM

10TH AGM 10TH AGM 10TH AGM 10TH AGM 10TH AGM 10TH AGM 11TH AGM 12TH AGM 13TH AGM 14TH AGM 15TH AGM 16TH AGM 17TH AGM 18TH AGM 19TH AGM 20TH AGM 21ST AGM 22ND AGM 2 3RD AGM 24TH AGM 25TH AGM 26TH AGM

30.03.1966 29.05.1967 27.08.1968 21.06.1969 25.06.1970 30.06.1971 06.07.1972 30.06.1973 07.09.1979 25.02.1981 25.02.1981 25.02.1981 25.02.1981 25.02.1981 25.02.1981 17.06.1995 20.06.1995 22.06.1995 12.09.1996 21.08.1997 10.09.1998 06.12.1999 20.12.2000 24.12.2001 27.10.2002 30.12.2003 29.08.2004 18.05.2005 16.03.2006 28.12.2006 26.12.2007

1964-65 1965-66 1966-67 1967-68 1968-69 1969-70 1970-71 1971-72 1976-77 1972-73 1973-74 1974-75 1975-76 1977-78 1978-79 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Note: Holding of AGM from FY 1979-80 to 1990-91 was not required for the Company as per verdict of Honorable High Court Division of Supreme Court of Bangladesh. B. Risk Factors and Management Perceptions:

No investment can be made without considering the risk. So, before taking decision on investing in shares of TGTDCL the investors should carefully analyze the following risks:

a) Interest rate risk: When a concern collects its fund from outsiders is liable to pay more than its borrowing size. The excess payable is

considered as interest, which impacts the profitability. So, any high rate borrowing affects adversely any concern, which has borrowed fund.

Management Perception:

The Company takes long-term loan from local and foreign sources for implementing the development projects taken by GOB under Annual Development Program (ADP) and interest rate is fixed by GOB. In the mean time, entire long-term loan in local currency from GOB has been converted into equity. As a result the borrowed fund of the Company has been reduced and company will face less risk.

b) Exchange rate risk: The Company requires foreign loans for implementing development programs. So, exchange rate fluctuation can

enhance the development cost of the Company. Management Perception:

To cope with Exchange Rate Fluctuation the Company adds or deducts gain or loss with assets, which are procured with foreign currency.

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c) Industry risk: The Organizations namely Bakhrabad Gas Systems Ltd., Jalalabad Gas T & D System Ltd., Paschimanchal Gas Co. Ltd and Titas Gas Transmission & Distribution Co. Ltd. are actively engaged in gas distribution business, but each of those enjoys monopoly in their franchise area.


Since the Company enjoys monopoly in its franchise area and no chance of entering new organizations to its area of operation in near future. So, industry risk does not arise for the company.

d) Market & Technology related risk: Technology is related to transmission, distribution, quantity measuring and maintaining of

required temperature and pressure of gas. For protecting the transmission and distribution line from corrosion primer coating, tape rapping and cathodic protection are used.


Management of the Company is always aware of any technological changes in the field and has endeavor for adoption of new technology gradually according to a well-designed strategy. On the other hand for ensuring safety and security of pipe line and other related machinery and equipments skilled and equipped personnel are engaged.

e) Potential or existing Government regulations: The business activities of the Company is fully controlled by policies, rules and

regulations framed by Government that is, policies related to gas price fixation, demand & supply and distribution is fully under the control of Government. Government policies in this regard may impact business operation of TGTDCL.


The Company is entrusted with the responsibility of transmitting and distributing of gas to its operational area under Government policies and also monitored by Government. So, all existing or potential government regulations are generally in favor of the gas transmitting and distributing companies. Any unfavorable rules, regulations, policies adopted by Government will equally impact the all-existing ventures of gas industry. However, the Company's Board was vested with full autonomy and exercise all financial powers as per Company's Act-1994 vide the government gazette notification no. weR¡vLm (cÖvmD-2)/M¨vm-2/2002 (Ask -2) 787 dated 5 November, 2002.

f) Potential changes in global or national policies: The performance of the company may be affected due to unavoidable

circumstances both in Bangladesh and worldwide, as such political turmoil, war, terrorism; political unrest in the country may adversely affect the economy in general.


The risk due to changes in global or national policies is beyond control for any company. Yet the company is well prepared for adoption of policies and preventive measures as and when required to reduce the risk.

g) Non-operating history: There is no history of non-operation in case of TGTDCL. Management Perception:

To overcome short supply and low pressure problem of gas the Company has taken various long term and mid term measures. h) Operational Risk:

i) System loss: System loss is an operational problem for the Company, which impacts the profitability of the Company. In the year 2006-07 system loss was 5.26%, which is still beyond desired level.


Various measures including a project named System Loss Reduction Plan financed by ADB have been taken to reduce system loss. In the Year 2006-07 the System Loss has been reduced to 5.26% compared to 6.47% of previous year and current position of system loss is about 4%. Among the measures- maintaining area wise input-output & fixing responsibilities, RMS sealing, calibration and replacement of old meters, intensive vigilance, disconnection of unauthorized gas connection by task force, speedy disposal of court cases, installation of internal pipeline above the ground of industrial, commercial customers etc. are mentionable.

ii) Revenue Collection:

Some customers of the Company delay in making payment of gas bill habitually and or for their financial problems. Management Perception:

The Company has been taking continuous endeavor to overcome this situation with skill manpower. Gas connections are disconnected for three months overdue. In case of non-collection after disconnection of the gas line legal procedures are being taken.

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C. Description of Business Information about the Company:

Titas Gas Transmission & Distribution Company Limited (TGTDCL), the premier gas marketing Company of the country was established in the year 1964 with the aim and objective to transmit natural gas from the gas fields to different areas and to distribute the same to the consumers in power, fertilizer, industrial, captive power, commercial, seasonal and domestic categories of its franchise area viz. Greater Dhaka & Mymenshingh districts and B. Baria district. After construction of the 58 miles long original 14" dia gas transmission pipeline from B. Baria to Demra the Company started its commercial activities in April 1968 supplying gas to Siddirgonj Power Station, the first gas consumer. Thereafter, the Company constructed different distribution lines in phases towards Dhaka City area, Ghorashal and Ashugonj for gas supply to all categories of customers. Till the liberation of the country in 1971, TGTDCL had been able to supply gas to two power stations, one fertilizer factory and about 2,000 customers in other categories. After liberation of the country the Company has been Nationalised under the Presidential Order No. 27/1972 and its overall activities has been placed under the supervision and control of the Bangladesh Oil, Gas & Mineral Corporation (Petrobangla). Subsequently the Company's Board was vested with full autonomy and exercise full financial powers as per Company's Act-1994 vide the government gazette notification no. weR¡vLm (cÖvmD-2)/M¨vm-2/2002 (Ask -2) 787 dated 5 November, 2002. TGTDCL since its inception has been developing day by day and at present it has a gas pipeline network of about 10,293.42 km including the addition of 619.13 km during 2006-07 and a total customer base of about 1,239,900 nos. including the addition of 77,514 nos. during 2006-07. The total customers include 10 power stations of PDB, 15 private power stations and 4 fertilizer factories in the bulk category. The authorized share capital amounts to Tk. 3,500,000,000 divided into 7,000,000 ordinary shares of Tk.500 each and the issued, subscribed and paid up share capital amounts to Tk.2, 388,807,500 divided into 4,777,615 ordinary shares of Tk. 500 each upto 30-06-2007. As on 24-10-2007 the Company enhanced its Authorised Capital to Tk. 20,000,000,000.00 divided in to 200,000,000 ordinary shares of Tk. 100.00 each. It is mentionable that as on 24.10.2007 the Company split up its shares from Tk. 500 each to Tk. 100 each. The Company declared 43,100,675 bonus shares Tk. 100.00 each amounting to Tk. 4,310,067,500 and converted loan amount of Tk. 1,865,816.200.00 being value of 18,658,162 ordinary shares of Tk. 100.00 each to paid-up capital at Extra Ordinary General Meeting held on October 24, 2007. As a result the Paid-up capital of the Company stood at Tk. 8,564,691,200.00 divided into 85,646,912 ordinary shares of Tk. 100.00 each. Principal products or services of the company:

The Company is engaged in business of purchasing Gas from various gas fields of the country and transmitting and distributing it to the customers of its franchise area. Market for the products or services of the Company:

The Company transmits and distributes Gas to gas-based power stations, fertilizer factories, industrial and commercial concerns and domestic users of its franchise area viz. Greater Dhaka & Mymenshingh districts and B. Baria district. The relative contribution to sales and income of each product or service that accounts for more than 10% of the company’s total revenues:

Gas is the only product of the Company. So, contribution of more than 10% by any product to total revenue of the Company does not arise. Name of associates, subsidiary/related holding company and their core areas of business:

Titas Gas Transmission & Distribution Company Limited (TGTDCL) is a Company of Bangladesh Oil, Gas & Mineral Corporation (Petrobangla). The main functions of PETROBANGLA are -

i. Exploration and development of the Oil, Gas and Mineral Resources; ii. Coordinate, plan and supervise the activities of the companies; iii. Overall control and coordination of the production, transmission and distribution of gas, condensate, oil and mineral resources produced

in the country; iv. Conduct necessary research required in Oil, Gas and mineral Exploration;

v. Enter into Production Sharing Contract (PSC) with International Oil companies (IOCs) for exploration and development of Oil and Gas and to control, monitor and coordinate the activities under the signed PSCs.

vi. To implement important projects to develop the gas and mineral sector with the GOB fund and assistance's provided by the friendly countries and international organizations;

vii. Any other functions and responsibilities as directed by the Government from time to time.

The Company has no subsidiary or associate organization. Distribution procedure of products or services:

The Company purchases Gas from various gas fields of the country and distributes it through 735 km transmission pipelines and 9558 km distribution lines to its customers.

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Competitive conditions in the business:

The Company has not to face any competition to its franchise area viz. Greater Dhaka & Mymenshingh districts and B. Baria district. Sources and availability of raw materials and the names of the principal suppliers: Titas, Habigonj, Rashidpur, Bakhrabad, Beanibazar, kailastila, Jalalabad (IOC), Bibiana (IOC), Fenchugonj and Narsingdi gas field are the sources of raw material (Natural Gas) of the Company.

Sources of, and requirement for power, gas and water: The required electricity is provided by BPDB, DESA, DESCO and Palli Biddyut Samity of REB. Water is required for auxiliary purpose, which is met from own sources or from local arrangement as availability.

Name of customers who purchase 10% or more of the company’s products:

Bangladesh Power Development Board (BPDB), Bangladesh Chemical Industries Corporation (BCIC) & Independent Power Producers (IPP) are the buyers who purchase more than 10% of the Company's product individually. Description of any contract, which the company has with its principal suppliers or Customers: The Company makes agreement with all of its clients as normal course of business. On the other hand the Company has made an agreement with principal supplier namely Bangladesh Gas Fields Company limited for purchasing of gas from its gas fields. The main futures of the agreement are as follows: a) The point of delivery of all the Gas sold and supplied at which point the property in and the risk attaching to the gas shall pass to TGTDCL,

shall be at a mutually determined point/points immediately on the down-stream of the metering manifold installed by BGFCL.

b) The gas to be supplied by BGFCL to TGTDCL shall be regulated at a pressure of 980 ± 20 PSIG & temperature of 120ºF/49ºC but not in excess of one thousand (1000) pounds per square inch gauge pressure. BGFCL shall install such equipment as may be necessary to regulate the supply pressure of the gas as aforesaid upstream of the metering manifold and the cost of any gas being vented in connection with relief of any excess supply pressure will be borne by BGFCL.

c) TGTDCL shall pay to the BGFCL a price as determined by the Government from time to time per one cubic meter in respect of the quantities of the gas sold and delivered.

Description of any material patents, trademarks, licenses or royalty agreements: Material patents, trademarks, royalty agreements etc. are not applicable to TGTDCL. But as per License Regulation 2006 of Bangladesh Energy Regulatory Commission (BERC) enlistment as a licensee is under process. Number of total employees and number of full-time employees: As on June, 2007 employee’s position of the company is as follows:

Number of Employee

Description

Full Time / Permanent Outsourcing Total Officer 834 - 834 Staff 1741 301 2042

Total 2575 301 2876

Production/Storage capacity and current utilization:

The Company is engaged in the business of transmitting and distributing of natural gas to different categories of customers through transmission and distribution pipeline systems. So, production or storage capacity is not applicable for the Company.

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D. Description of Property:

Information in respect of plants and property:

Location of the principal plants and other property and the Physical condition thereof:

Fixed Assets (Land)

Sl. No.

Name Location Total Acquired Area in Acre

Physical Condition

1 B-B Project Mymensingh 122.8816 Good 2 Gulshan-Tongi, Joydevpur-Tongi, Savar & Tongi Ashulia Gas Pipe Line Project 8.9752 Good 3 Savar Pipe Line Project-1 & Kamta Joydevpur Pipe Line Project 13.1200 Good 4 Joydevpur CGS Extension Project 7.4850 Good 5 Narsinghi-Ghorasal –Joydevpur Project 11.6750 Good 6 BRAC CDS Rajendrapur DRS 10.0650 Good 7 Joydevpur Tongi Ashulia Gas Pipe Line Project

Gazipur

48.8690 Good 8 Gopalpur Ghatail Gas Pipe Line 39.4200 Good 9 Tangail DRS Office & Residential Bhaban

Tangail 20.2725 Good

10 Transmission Building 7.5100 Good 11 Demra Gulshan Pipe Line Project 4.0300 Good 12 Demra Postagola Pipe Line Project 7.9000 Good 13 Demra Godnail Project 5.9500 Good 14 Sharulia Approach Road Tat Jute Banking Project 3.7400 Good 15 Savar Pipe Line Project 6.8800 Good 16 Nandipara DRS Project & Staff Quarter 3.3600 Good 17 Savar Manikganj Pipe Line Project 3.2200 Good 18 Zinzira Pipe Line Project-1 3.8400 Good 19 Ashulia Aminbazar Pipe Line Project 5.8400 Good 20 Construction of Store Yard 8.8325 Good 21 Aminbazar Hazaribag Pipe Line Project 5.7000 Good 22 Donia DRS, Office & Quarter Project 4.4450 Good 23 2nd Burigonga Bridge DRS Project 4.9500 Good 24 Joydevpur Tongi Ashulia Pipe Line Project 4.3150 Good 25 Shampur Kadamtoli Industrial Area & Gulshan DRS 11.5620 Good 26 Extention of CGS Demra, Gulshan TBS DRS, Zoarsahara DRS & Uttara CP Station 18.5345 Good 27 Mirpur DRS Savar Station Building & Staff Quarter

Dhaka

3.9728 Good 28 BB Project Jamalpur 64.2687 Good 29 BB Project Netrokona 24.6180 Good 30 Hobigonj-Ashuganj Pipe Line Project 35.0550 Good 31 Titas East Bank Project

B.Baria 50.7050 Good

32 B.Baria Demra Transmission Gas Pipe Line 43.9800 Good 33 Telecom Station Puranpara Narsinghi Ghorasal 3.10 Good 34 Transmission Line 48.1615 Good 35 Titas Narsinghi Pipe Ramnagar DRS 3.62 Good 36 Belabo Titas Pipe Line 4.6475 Good 37 Monohordi Narsinghi Gas Pipe Line Project 46.0465 Good 38 Narsinghi Siddhergaon Gas Pipe Line Project 18.0010 Good 39 Narsinghi Ghorasal 3rd Horizontal Gas Pipe Line Project 8.6100 Good 40 Ghorasal Station Building & Staff Quarter

Narsinghi

1.7150 Good 41 Hobiganj Ashuganj Pipe Line Project 48.6850 Good 42 Murapara Kanchan Pipe Line Project 10.4100 Good 43 Godanail DRS Office& Residential Bhaban 15.5250 Good 44 Tarabo DRS 4.85 Good 45 Narsinghi Siddhirganj Pipe Line Project 5.0100 Good 46 Horipur 360 MW Power Plant Gas Pipe Line Project 6.1975 Good 47 Siddhirganj Kadamtoli Gas Pipe Line Construction Project 26.5548 Good 48 Meghna Ghat 400 MW Power Plant Pipe Line Project

Hobiganj

33.3967 Good 49 Savar Manikganj Project Manikganj 1.4438 Good 50 B.Baria Demra Project 4.9200 Good 51 Distibution Line BB project Monohordi Kishorganj 6.9150 Good 52 BB project Monohordi Kishorganj

Kishorganj

27.2810 Good 53 Mirkadim Munshiganj TBS/DRS Munshiganj 3.4870 Good

14

Plant and Machinery:

Tube well

a. Deep Tube well Location Condition b. Sallow Tube well Location Physical Condition

1 60 Horse Power Demra, Dhaka. Good 1 2 Horse Power Jinjira, Dhaka. Good 2 20 Horse Power Manikgonj Good 2 2 Horse Power Narsingdi. Good 3 20 Horse Power B. Baria Office Good 3 2 Horse Power Shahjibazar, Sylhet. Good 4 20 Horse Power Ashugonj Good 4 2 Horse Power Kishoregonj. Good 5 20 Horse Power Ghorashal Good 5 2 Horse Power Netrokona. Good 6 20 Horse Power Joydevpur Good 6 2 Horse Power Sherpur. Good 7 25 Horse Power Mymensingh Good 7 2 Horse Power Gofargaon, Mymesingh. Good 8 20 Horse Power Munsigonj Good 8 1 Horse Power Bhaluka, Mymesingh. Good 9 15 Horse Power Savar, Dhaka. Good

10 20 Horse Power Tangail. Good 11 20 Horse Power Tarakandi Good 12 7.5 Horse Power Ashugonj Good

Tower in different location of the company:

Sl. No. Height Location Condition Sl. No. Height Location Physical Condition

1 0+60 ft Kawranbazar Good 15 82 ft Shamvuganj Good 2 330 ft Demra Good 16 330 ft Valuka Good 3 200ft Ghorasal Good 17 120 ft Trishal Good 4 300 ft Monohordi Good 18 200 ft Netrokona Good 5 240 ft Ashuganj Good 19 120 ft Goforgaon Good 6 159 ft B.Baria Good 20 150 ft Tangail Good 7 200 ft Shahajibazar Good 21 98 ft Savar Good 8 120 ft Kishorganj Good 22 82 ft Tarabo Good 9 120 ft Sherpur Good 23 159 ft Joydevpur Good

10 200 ft Jamalpur Good 24 82 ft Siddherganj Good 11 240 ft Tarakandi Good 25 278 ft Osmani Uddan Good 12 330 ft Alenga Good 26 82 ft Horipur Good 13 240 ft Mymensingh Good 27 159 ft B.Baria/Ghatua Good 14 49 ft Amin Bazar Good

Gas Generator in different location of the Company:

Sl. No.

Power Location Condition Sl. No.

Power Location Physical Condition

1 230 KVA Kawranbazar Good 14 25 KVA Jamalpur Good 2 250 KVA Demra Good 15 25 KVA Tarakandi Good 3 40 KW Demra CGS Good 16 25 KVA Mymensingh Good 4 60 KVA Horipur Good 17 60 KVA Shamvuganj Good 5 50 KVA Horipur Good 18 25 KVA Valuka Good 6 50 KVA Meghnaghat Good 19 25 KVA Trishal Good 7 60 KVA Ghorasal Good 20 25 KVA Netrokona Good 8 25 KVA Ghorasal/Palash Good 21 25 KVA Gofargaon Good 9 60 KVA Ashuganj Good 22 15 KVA B.Baria Good

10 60 KVA Ashuganj Good 23 50 KVA Shiddherganj Good 11 15 KVA Shahajibazar Good 24 15 KVA Tarabo TBS Good 12 25 KVA Kishorganj Good 25 15 KVA Joydevpur Good 13 25 KVA Sherpur Good

15

CP Station in different location of the company:

Sl. No. Size of the CP Room Number of CP Room Location Physical Condition

1 Building size 10/ 10/ 10/

52 Franchise area of this company mainly located in Mymensingh, Gazipur, Tangail, Dhaka, Sherpur, Jamalpur, Netrokona, B.Bharia, Norsindi, Hobigonj, Narayangonj, Manikgonj and Munshigonj.

Out of 52 CP Rooms, 5 (Five) are obsolete and others are in Good condition.

2 Out door CP Station 4/ 4/ 3/

10 Franchise area of this company mainly located in Ashuganj, Monohordi, Mymensingh, Netrokona, Gazipur, Tangail, Jamalpur and Sherpur.

Good

Plant:

Sl. No. Name of the plant/property Number Location Physical Condition

1 Bulk customer RMS 18 B.Baria, Narsingdi, Narayanganj, Mymensingh, Jamalpur, Dhaka

Good

2 Off transmission M & R station 10 B.Baria, Kishorganj, Mymensingh, Netrokona, Jamalpur, Sherpur, Gazipur

Good

3 CGS/TBS/DRS 20 Shahajibazar, B.Baria, Kishorganj, Dhaka, Narsingdi, Narayanganj, Gazipur, Munshiganj, Tangail

Good

Valve Station:

Sl. No. Size of the transmission line

Number Location Physical Condition

1 4" Ø Transmission Line 3 Sherpur, Kishorganj Good 2 6" Ø Transmission Line 5 Gazipur, Jamalpur, Gafargaon, Netrokona Good 3 8" Ø Transmission Line 3 Narsingdi, Tarakandi, Mymensingh Good 4 10" Ø Transmission Line 2 Ashuganj, Narsingdi Good 5 10"x150 PSI Bulb Station 1 Narayanganj Good 6 12" Ø Transmission Line 12 Hobiganj, Sylhet, , Tangail, Tarakandi, Bhaluka ,

Trishal, Mymensingh , B.Baria, Good

7 14" Ø Transmission Line 21 B.Baria, Ashuganj, Kishorganj, Gazipur, Norsingdi, Narayanganj, Ghorashal,

Good

8 16" Ø Transmission Line 2 Ashuganj, Narsingdi, Good 9 20" Ø Transmission Line 6 Narsingdi, Narayanganj, Horipur, Good

10 24" Ø Transmission Line 10 Doulatkandi, Narsingdi, Gazipur, Tangail Good

List of Assets (Building):

Sl. No. Name of the immovable properties Location Physical Condition

1 Office Building Zingira, Mirpur, Shampur, Demra,Munshiganj,Damrai, Manikganj, Savar, Joydevpur, Ashuganj, B.Baria, Shahajibazar, Narshingdi, Ghorasal, Tangail, Elenga, Monohordi, Bhaluka, Gafargaon, Netrokona,Danua Kishorganj, Mymensingh, Trishal, Sherpur, Jamalpur,

2 CP Room Zingira, Mirpur, Shamoly, Tejgaon,Uttara,Postogola,Tongi, B.Baria, Narshingdi, Ghorasal, Methikanda,Madabdi,Manikganj, Mymensingh, Savar,

Good

3 Boundary wall, Fencing & Valve stations Zingira, Gulshan, Postogola, Deleshware, Pangaon-Panchabati, Demra, Manikganj, Savar, Kamta gas field, Trishal

Good

4 Boundary wall & guard room Tarakandi, Mymensingh, Danua, Sherpur, Jamalpur

Good

5 Boundary wall & Generator room Kishorganj Good 6 Fencing of DRS, RMS & guard room Narayanganj Good

16


7 Observation Building Mirpur, Aricha, Tongi Good 8 Observation room Narsingdi Good 9 Security room Uttara, Shampur, Gafargaon Damrai, shibpur,

Ghorasal, Manikganj,Ashuganj, Tangail Narsingdi, Ghorasal, Netrokona, Mymensingh, Danua

Good

10 Security Room & Garage Mirpur, Good 11 Control building Narsingdi, Tarakandi, Sherpur Shambuganj

Kishorganj, Trishal, Jamalpur Good

12 Control building & connecting road B.Baria Good 13 Emergency Control Building Dhaka cantonment, Good 14 Guard Shed Tejgaon, Siddhirganj, Demra, Mymensingh Good 15 Low cost shed & security room Shahajibazar Good 16 Low cost shed, boundary fencing etc Gulshan, Postogola Good 17 Emergency office Building Gulshan Good 18 Re construction of TBS Gulshan Good 19 Reconstruction TBS of platform & pipe support Gulshan Good 20 Sr. Officer’s Quarter Gulshan Good 21 Officer’s Quarter Uttara, Nandipara, Manikganj, Joydevpur, Narsingdi,

Ghorasal, Mymensingh Good

22 Staff Quarter Nandipara, Munshiganj, Savar, Manikganj, Joydevpur, Ashuganj B.Baria, Shahajibazar, Ghorasal, Narsingdi, Tangail, Tarakandi, Gafargaon,Netrokona, Sherpur Shambuganj, Kishorganj, Mymensingh, Jamalpur

Good

23 Land development Nandipara, Meghnaghat, Danua Manikganj, Tarakandi, Trishal Kishorganj, Mymensingh, Sherpur, Jamalpur

Good

24 Land development & Chain link fencing Tarakandi Good 25 Land development & boundary wall Shampur, Narayanganj, Horipur, Joydevpur, B.Baria,

Khatihata, Bhaluka, Netrokona Good

26 Land development, boundary wall & DRS fencing Tangail RDO, Kumudini & Mirzapur Cadet College Good 27 Land development & boundary wall at DRS area

incl. platform at ashulia Savar, Ashuganj Good

28 Land development, boundary wall & building Aricha DRS, Damrai DRS Good 29 Land development, boundary wall & security guard

room Elenga trans. Good

30 Ansar & Guard room Nandipara, Good 31 Underground water reservoir Nandipara, Demra, Good 32 Emergency gas control building Postogola, Good 33 Emergency Crew room Narayanganj, Savar Good 34 Approach road Narayanganj, Manikganj Good 35 Boundary wall, Radio & observation room at RMS

area Horipur power station Good

36 Gas regulating & metering station AES Horipur 360 MW power station, Meghnaghat Good 37 Workshop building Demra operational head quarter Good 38 Store building Demra, Mymensingh Good 39 Store room Narsingdi Good 40 Service cum store Demra operational head quarter Good 41 EMS building Demra operational head quarter Good 42 Metering workshop building Demra operational head quarter Good 43 E-type staff quarter Demra operational head quarter Good 44 A-type staff quarter Demra operational head quarter Good 45 School building Demra operational head quarter Good 46 Mosque building Demra operational head quarter Good 47 Wrapping Godown building Demra operational head quarter Good 48 Ordorent Godown Joydevpur. Good 49 Bas bar building Demra operational head quarter Good

17


50 Pump house Demra, Manikganj, Joydevpur Savar, Ashuganj, Monohordi, Netrokona, Trishal.

Good

51 Deep tube well & pump house Tarakandi, Netrokona, Trishal Mymensingh, Danua, Sherpur, Jamalpur

Good

52 Pump house Ext. incl. Mosque Savar Ashulia complex Good 53 Water pump Damrai, Narsingdi, Ghorasal, Gafargaon Good 54 Residence of Imam Demra operational head quarter Good 55 CGS Demra operational head quarter Good 56 DRS Demra operational head quarter Good 57 Underground surface drain Bituminous road, water

& sewerage line, in/c septic tank Demra operational head quarter Good

58 Ext. of Demra area & land develop Demra operational head quarter Good 59 Land development & bituminous Rd Demra operational head quarter Good 60 Drainage system at new & old land Demra operational head quarter Good 61 Medical center & auditorium building Demra operational head quarter Good 62 Overhead water tank Demra operational head quarter Good 63 Main gate & security building Demra operational head quarter Good 64 Security camp CP. bldg. incl. boundary wall of DRS Munshiganj RDO Good 65 Guard wall & pre-cost piling work in extended area

of CGS at Joydevpur Joydevpur Good

66 Office cum residential building Kamta gas field Good 67 Club building Ashuganj, B.Baria Good 68 Generator room, pump house & security room Ashuganj, Narsingdi, Ghorasal, Elenga, Gafargaon,

Netrokona, Tarakandi, Monohordi, Bhaluka, Kishorganj, Mymensingh, Trishal, Sherpur, Jamalpur

Good

69 Generator building Ghorasal Good 70 Telecom station building B.Baria Good 71 Metering station & DRS B.Baria Good 72 Valve station, boundary wall & fencing East & West side of Titas River, Khatihata &

Shahbajpur Good

73 Approach road, valve compound & telecom building East side of Titas River Good 74 Garage room Narsingdi, Mymensingh Good 75 Dormitory building Narsingdi Good 76 Electric room Ghorasal Good 77 Electrial building Tangail Good 78 RCC road & drain Netrokona, Danua, Sherpur, Jamalpur Good 79 Guard room, fencing and drain Mymensingh, Trishal Good 80 Guide wall & drain Mymensingh Good 81 M & R stations pipe support & RCC Danua Good 82 M & R station Shambuganj Good

Lease hold land:

Sl. No.

Particulars & Location Lease taken From

Location Physical Condition

1. Head Office, Karwanbazar, Dhaka. RAJUK Karwanbazar, Dhaka. Good 2. GM Quarter, Gulshan DRS (North), Gulshan, Dhaka. RAJUK Gulshan, Dhaka. Good 3. Transport Office, Gulshan DRS (South), Gulshan, Dhaka. RAJUK Gulshan, Dhaka. Good 4. Mirpur DRS, Mirpur, Dhaka. Housing

& Plannjng Authority Mirpur, Dhaka. Good

5. DGM & Managers Quarte, Uttara DRS, Uttara, Dhaka. RAJUK Uttara, Dhaka. Good 6. Joar Shahara DRS, Joar Shahara, Dhaka. RAJUK Joar Shahara, Dhaka. Good 7. Cantonment DRS, Dhaka Cantonment, Dhaka. Cantonment Board Dhaka Cantonment, Dhaka. Good 8. Kadamtali DRS, Shampur, Dhaka RAJUK Shampur, Dhaka Good 9. Khanpur Block Land for Office Building (Proposed), Narayangonj. RAJUK Narayangonj. Good

10. Tongi Industrial Area, Tongi RAJUK Tongi Good 11. BISIC Leather Industrial Area, Hamayet pur, Savar, Dhaka. BISIC Hamayet pur, Savar, Dhaka. Good 12. Osmani Uddyan, Dhaka DCC Osmani Uddyan, Dhaka Good

The Company itself owns the entire fixed assets.

18

The properties, plants and equipments owned by the company and written down value are as under:

(Amount in Taka)

SL. No. Name of assets Net book value as on 30-06-2007 1. Land: a. Freehold land 458,961,718.632. Buildings: a. Freehold concrete/brick structures 330,822,033.03b. Sheds and temporary structures 8,254,214.82c. Walls and store yards 80,859,842.93d. Other constructions 50,322,708.18 Total 470,258,798.96

3. Furniture & fixtures: a Furniture & fixtures 11,444,973.08b Domestic appliances 3,744,419.81 Total 15,189,392.89

4. Office equipments: a. Office equipments 401,380.37b. Telecom and computer equipments 118,057,479.68 Total 118,458,860.05

5. Other equipments: a. Radiography and G & G equipments 45.00b. Workshop equipments 141.00c. Electrical installations 7,279,873.21d. Construction equipments 23.00e. Other equipment 3,413,176.20 Total 10,693,258.41

6. Transmission & distribution lines: a. Transmission lines 4,152,175,246.21b. Distribution lines 4,386,690,851.10c. Transmission & distribution plant 1,677,507,031.93d. Consumer metering 560,156,404.63 Total 10,776,529,533.87

7. Water services: a. Tube wells and ponds 2,910,904.40b. Water pumps 34,783.87c. Water pipeline and tanks 947,966.11 Total 3,893,654.38

8. Vehicles: a. Light vehicles 33,953,552.60b. Heavy vehicles 19.00 Total 33,953,571.60

9. Other assets: a. Loose tools 1.00b. Marine crafts -c. Unclassified assets 7,386.50

Total 7,387.50 Grand-Total 11,887,946,176.29

19

Description of lease holds property & Expiration date of the lease:

Lease Hold Land:

Sl. No.

Particulars & Location Lease taken From

Date Of Acquisition

Lease Period Area in acre

Taka Date of Expiration

1. Head Office, Karwanbazar, Dhaka. RAJUK 08.11.1996 99 Years 0.3008 17,00,421.00 07.11.2075 2. GM Quarter

Gulshan DRS (North) Gulshan, Dhaka.

RAJUK 22.01.1970 99 Years 0.1220 57,708.00 21.01.2069

3. Transport Office Gulshan DRS (South) Gulshan, Dhaka.

RAJUK 22.01.1970 99 Years 0.4950 2,37,64,064.00 21.01.2069

4. Mirpur DRS, Mirpur, Dhaka. Housing & Planning Authority

21.11.1970 99 Years 0.0933 27,686.25 20.11.2069

5. DGM & Managers Quarter, Uttara DRS, Uttara, Dhaka.

RAJUK 30.10.1980 99 Years 0.3300 9,38,455.00 29.10.2079

6. Joar Shahara DRS, Joar Shahara, Dhaka. RAJUK 30.04.1985 99 Years 0.1650 5,80,232.70 29.04.2084 7. Cantonment DRS, Dhaka Cantonment,

Dhaka. Cantonment

Board 30.06.1967 99 Years 0.0880 8,061.52 29.06.2066

8. Kadamtali DRS, Shampur, Dhaka. RAJUK 02.09.1997 99 Years 0.4948 Free of Cost 01.09.2096 9. Khanpur Block Land for Office Building

(Proposed), Narayangonj. RAJUK,

03.01.1993

99 Years 0.1925 44,25,417.00 02.01.2092

10. Tongi Industrial Area, Tongi. RAJUK 04.06.1997 99 Years 0.7425 18,00,000.00 03.06.2096 11. BISIC Leather Industrial Area, Hamayet pur,

Savar, Dhaka. BISIC 17.04.2006 99 Years 0.3445 Free of Cost 16.04.2105

12. Osmani Uddyan, Dhaka. DCC 23.11.1998 - 0.3765 Free of Cost - Total 3.7449 3,33,02,045.47

Mortgage or other type of lien on the property owned by the company:

The Company itself owns the entire fixed assets. There is no mortgage or lien on the property. E. Plan of Operation and discussion of Financial Conditions:

Internal and external sources of cash:

Internal Sources:

(Amount in Taka)

Particulars 2006-07 2005-06 2004-05 2003-04 2002-03 Paid-up Capital 2,388,807,500 1,507,324,000 1,507,324,000 1,507,324,000 1,507,324,000 Deposit for Share 655,879 881,483,800 760,097,800 257,797,800 - Capital Reserve 754,693,866 754,693,866 754,693,866 754,693,866 754,693,866 Revenue Reserve 6,576,007,668 4,863,347,110 3,552,616,597 2,734,494,086 2,278,101,973

Total 9,720,164,913 8,006,848,776 6,574,732,263 5,254,309,752 4,540,119,839

External Sources:

(Amount in Taka)

Particulars 2006-07 2005-06 2004-05 2003-04 2002-03 Unsecured loans - local sources 1,565,449,251 1,787,224,251 2,006,288,751 2,006,586,751 1,858,820,795 Unsecured loans - foreign sources 3,022,256,103 3,253,813,361 2,792,914,646 2,932,219,253 2,800,754,633

Other Long Term Liabilities 9,719,941,283 7,691,597,311 6,407,514,626 5,395,943,762 4,587,608,255 Total 14,307,646,637 12,732,634,923 11,206,718,023 10,334,749,766 9,247,183,683

20

Material commitments for capital expenditure and the expected sources of Funds:

The material commitments in terms of development activities with estimated cost, sources of fund, year of completion of those projects with other relevant information are shown as follows:

(Amount in Lac) Sl. No. Name of projects Estimated

Cost Sources of

Fund Year of

Completion Remarks

01. System loss reduction project 1,772.60 ADB + ADP June 2009 The project cost will be financed by ADB and GOB.

02. Network expansion project 10,471.46 Own finance June 2009 The project cost will be financed by the Company. 03. Service Connection 14,608.11 Internal

& External source

June 2009 Tk. 2,035.48 lac will be financed by the Company and Tk. 12,572.63 will be financed by the customers.

04. System balance project 1,000.00 Own finance June 2009 The project cost will be financed by the Company. 05. Land & building 878.59 Own finance June 2009 The project cost will be financed by the Company. 06. Operational equipment 4,272.32 Own finance June 2009 The project cost will be financed by the Company. 07. Vehicles furniture & others 4,393.00 Own finance June 2009 The project cost will be financed by the Company.

Total 37,396.08 Causes of any material changes in income, cost of goods sold, other operating expenses and net income:

(Amount in Taka) Particulars 2006-07 2005-06 2004-05 2003-04 2002-03

Sale 38,957,171,618 34,539,725,659 30,306,440,814 26,712,347,617 24,222,436,057 Cost of Sales 35,184,220,639 31,578,954,074 27,778,844,976 24,649,718,090 22,136,961,042 Operating Profit 3,772,950,979 2,960,771,586 2,527,595,838 2,062,629,581 2,085,475,015 Other Income (Non-Operating) 245,090,197 283,458,157 111,838,405 157,618,111 156,677,630 Total Income 4,018,041,176 3,244,229,742 2,639,434,243 2,220,247,692 2,242,152,645 Financial Costs (122,355,199) 50,020,086 127,359,777 158,365,217 157,652,348 Profit before contribution to WPPF 4,140,396,375 3,194,209,656 25,120,744,66 2,061,882,475 2,084,500,297 Workers' Participation In Profits 197,161,732 152,105,222 119,622,594 98,184,880 99,261,919 Net Income Before Tax 3,943,234,643 3,042,104,435 2,392,451,872 1,963,697,595 1,985,238,378 Provision for Tax 1,367,993,729 978,066,040 897,169,452 834,731,938 830,568,416 Net Profit after Tax & WPPF 2,575,240,914 2,064,038,395 1,495,282,420 1,128,965,657 1,154,669,962

The income of the company is increasing gradually due to expansion of sales network, reduction of system loss, cost control as well as efficient and effective measures taken by the management to its business (i.e. developing activities of the company, reduction of system loss and collection of arrear bill). During FY 2006-2007 interest income from bank deposit was higher than the interest charged against ADP & ADB loans. Seasonal Aspects:

In general, there is insignificant seasonal impact on the company’s business because of the demand and the use of gas is increasing in all seasons.

Known trends, events or uncertainties:

Civil disorder, natural calamities are generally known events that may affect the company’s business. Change in the assets used to pay off any liabilities: No asset of the company has been used to pay off any liabilities. Loans taken from the holding/Subsidiary company or loans given to those companies:

The company did neither take any loan from nor give loan to any company for the last five years. Future contractual liabilities:

The Company has no future contractual liabilities that may have impact on the Company’s financial fundamentals. Estimated future capital expenditure:

There is no program of future capital expenditure other than stated under caption 'material commitment for capital expenditure.

21

Vat, income tax, customs duty or other tax liabilities yet to be paid:

a. VAT

There is no liability for VAT.

b. Income Tax

The income tax for assessment year 2004-05 and that of for assessment year 2006-2007 is still pending for assessment by the Tax Authority. Every year's disputes between IT (including surcharge) demanded by the authority and the IT paid by the company (through AIT and cash) is not yet been settled since the assessment year 1991-92. These disputes are waiting for hearing in the Tribunal and the Honorable High Court respectively. As such the situation is, considering the IT demanded by the authority and the provision for IT made by the company for assessment years 2004-05 and 2006-07 are the same, the total IT demanded by the authority up to 30 June, 2006 is Tk. 801,20,84,745.00 against which a total provision made up to 30 June, 2006 is Tk. 813,00,80,324.

c. Customs duty or other Tax liabilities yet to be paid:

There are no outstanding on account of Customs duty or other Tax liabilities.

Sources of Vat, income tax, customs duty and other tax liabilities yet to be paid:

Unpaid/unadjusted liabilities, if any, on account of VAT, Income Tax, Customs Duty or Other Tax liabilities will be paid out from internal source of the company.

Details of operating lease during last five years:

Sl No.

Particulars of leased premises Area in sft Period of lease Rent per sft in Tk.

Monthly amount in Tk.

1 11/3 (1st –6th fl), Toyenbi circular road, Motijheel C/A, Dhaka-1000

18,900 March 2006 to February 2011 17.00 3,21,300.00

2 RAJUK Plot # 36, Chashara C/A, Narayanganj

700 June 2003 to May 2004 6.00 4,200.00

3 Shailar ghati, Monnu nagar, Tongi, Gazipur

4,500 April 2001 to March 2004 4.50 20,250.00

4 50/A Toyenbi Circular road, Tikatuli, Dhaka-1000

9,500 August 2004 to July 2009 Consolidated 70,000.00

5 RS-260, SA-275, Khatian –137, Rupganj, Narayanganj

5,000 November 2005 to October 2008

9.00 45,000.00

6 Kha-199/2 (5th –7th), Maddhabadda Progati Sarani, Dhaka

13,320 July 2004 to June 2009 16.00 2,13,120.00

7 12/A, 6/72, Mirpur-12, Dhaka 11,400 January 2008 to December 2010

11.00 1,25,400.00

8 Flat # D-6, Basati Green Hamlet, 23, Green road, Dhanmondi, Dhaka

Flat as a whole

January 2005 to Consolidated 16,000.00

9 Plot # D-3, Road-10, Lorel lake view aptt. Flat # D-3, Dhanmondi, Dhaka

Flat as a whole

November 2003 to Consolidated 16,000.00

10 Western tower, 3rd floor, Flat # 2-C, 11, Shegunbagicha, Bijoynagar, Ramna, Dhaka

Flat as a whole

December 2003 to Consolidated 19,500.00

22

Last five years financial commitment including lease commitment:

a. The Company has local and foreign sources loan under Annual Development Program of Bangladesh Government. The details of loans are given bellow:

(Amount in Taka) Projects 2006-07 2005-06 Bangabandhu Bridge approach road Pipeline Project 596,484,200 657,558,200Belabo -Norshindi gas connection pipeline project 6,862,010 12,771,010RMS for AES Meghnaghat 450 MW Power Station Project 90,241,500 101,536,500Third Natural Gas Development project 871,861,542 1,015,358,541 Total 1,565,449,251 1,787,224,251Movement of the outstanding local loans (ADP) during the year is as follows:

Description 2006-07 2005-06 Opening balance 1,787,224,251 2,006,288,751Add: Received during the year - - Total 1,787,224,251 2,006,288,751Less: Transferred to current part 221,775,000 219,064,500Less: Return of unutilized loan to GOB - -Closing balance 1,565,449,251 1,787,224,251

Loan Project 2006-07 2005-06 ADB loan no. 714 BAN (SF) Second Natural Gas Development Project 50,818,843 62,229,353ADB loan no. 868 BAN (SF) Brahamaputra Basin Project 299,258,173 328,217,827ADB loan no. 1293 BAN (SF) Third Natural Gas Development Project 1,470,047,686 1,629,107,023ADB loan no. 1943 Dhaka Clean Fuel Project 566,792,219 522,144,000.00OECF loan no. BD, C - 18 Third Natural Gas Development Project 635,339,182 712,115,158 Total 3,022,256,103 3,253,813,361

Movement of the outstanding foreign loans & ERF during the year is as follows:

2006-07 Description

Principal ERF Total 2005-06

Opening balance 2,480,058,534 773,754,827 3,253,813,361 2,792,914,646Add: Additions during the year 44,748,219 (70,998,250) (26,250,031) 283,561,688Add: Adjustments (100,000) 101,482,105 101,382,105 497,607,000 Total 2,524,706,753 804,238,681 3,328,945,434 3,574,083,334Less: Transferred to current part 278,972,024 27,717,307 306,689,332 320,269,973Closing balance 2,245,734,729 776,521,374 3,022,256,103 3,253,813,361

b. The Company has no lease commitment. Personnel related schemes to make provision in future years:

The following benefit schemes for the employees of TGTDCL have been introduced:

1. Pension Fund

The company has a pension scheme for its employees. This fund represents accumulated amount of company's contribution and interest earned thereon less payments made to the ex-employees enjoying pension benefits. No actual estimate of the future liability to pay pensions has been carried out.

2. Gratuity

The company also operates an 'end of service facility' for gratuity to those employees who have opted for the contributory provident fund.

3. Contributory provident fund

The Company also operates a contributory provident fund for its 44 employees who have opted not to join the pension scheme

23

4. WPPF

A statutory transfer to the Workers' Profit Participation fund is made on the basis of 5% of the net profits before corporate taxation. 5. Annual Bonus and other Incentives:

There is a provision for the payment of Annual Incentive Bonus to the employees of the Company as per Company’s approved Incentive Bonus Scheme. There are also two annual Festival Bonuses for the permanent employees of the Company in every year. Besides, the company provides earned leave encashment facilities as per guideline of the company.

Break down of all expenses including fee of issue manager and underwriters:

I. Fee of Issue Manager: Tk. 7.00 Lac. II. Underwriting Commission: Nil.

Revaluation of Assets:

The revaluation of company’s assets was made on 31.12.2006. A reputed Chartered Accountants Firm named K. M. Hasan & Co. did the revaluation. The valuation has been made for reflection of actual value of its assets. The revalued amount is not incorporated in the accounts as on 30.06.2007. The summary of revaluation is show bellow:

(Amount in Taka) Description Book Value as on

31-12-2006 Revaluation Surplus

as on 31-12-06 Revalued Book Value as

on 31-12-06 Assets Fixed Assets 10,362,442,882 16,410,159,451 26,772,602,333 Other Assets 812,018,042 - 812,018,042 Investment 6,971,484,293 - 6,971,484,293 Capital Work in Progress 1,727,489,899 - 1,727,489,899 Current Assets Stores & Spares 530,308,050 - 530,308,050 Advances, Deposit & Prepayments

316,526,082 - 316,526,082

Trade Debtors Less Provisions 15,738,401,122 - 15,738,401,122 Other Current assets 206,246,679 - 206,246,679 Cash & Bank Balance 399,590,350 - 399,590,350 Total Current Assets 17,191,072,283 - 17,191,072,283

Total Assets 37,064,507,399 16,410,159,451 53,474,666,850 Outsiders Liabilities Long Term Borrowings 5,041,037,612 - 5,041,037,612 Other Long Term Liabilities Pension Fund 482,344,833 - 482,344,833 Provision for Gratuity 7,938,817 - 7,938,817 Leave Pay 127,958,893 - 127,958,893 General Provident Fund 193,668,797 - 193,668,797 Customers Security Deposit 7,529,155,468 - 7,529,155,468 Sub-Total 8,341,066,808 - 8,341,066,808 Group Company Accounts Gas Purchases and Transmission 11,902,098,412 - 11,902,098,412 Group Current Account (496,303,596) - (496,303,596) BAPEX & Hydro. Dev. Fund 1,673,155,241 - 1,673,155,241

13,078,950,057 13,078,950,057 Other Liabilities 1,995,893,515 1,995,893,515 Total Liabilities 28,456,947,992 - 28,456,947,992

Net Worth (A-B) 8,607,559,407 16,410,159,451 25,017,718,858

24

Schedule of Revalued Fixed Assets as on 31.12.2006

Sl. No.

Name of Assets Value as on 31.12.2006

Accumulated depreciation as on 31.12.2006

Net Book Value as on 31.12.2006

Revaluation Surplus as no

31.12.2006

Market Value as on 31.12.2006

1. Land: Free hold land 458,961,718.63 458,961,718.63 11,267,383,127.37 11,726,344,846.00 2. Buildings: Free hold concrete/brick

structures 510,074,830.05 176,262,359.14 333,812,470.91 135,541,968.09 469,354,439.00

Sheds and temporary structures

12,337,845.16 5,688,582.91 6,649,262.25 (5,369,193.25) 1,280,069.00

Walls and store yards 139,062,868.70 60,800,689.34 78,262,179.36 8,478,039.64 86,740,219.00 Other Constructions 64,800,675.81 15,178,758.47 49,621,917.34 5,760,791.68 55,382,709.00 Total 726,276,219.72 257,930,389.86 468,345,829.86 144,411,606.14 612,767,436.00 3. Furniture & Fixtures: Furniture & Fixtures 27,318,805.46 16,638,044.40 10,680,761.06 3,888,183.94 14,568,945.00 Domestic appliances 17,696,843.18 14,442,880.32 3,253,962.86 1,117,162.14 4,371,125.00 Total 45,015,648.68 31,080,924.72 13,934,723.92 (13,934,723.92) 4. Office equipments: Office equipments 12,243,539.73 11,845,409.36 398,130.37 231,058.63 629,189.00 Telecom and computer

equipments 387,487,369.33 250,824,639.65 136,662,729.68 89,574,451.32 226,237,181.00

Total 399,730,909.06 262,670,049.01 137,060,860.05 89,805,509.95 226,866,370.00 5. Other Equipments: Radiograpgy & G & G

equipments 3,404,460.95 3,404,415.95 45.00 75.00 120.00

Workshop equipments 13,369,360.74 13,369,219.74 141.00 111.00 252.00 Electrical installation 27,238,521.34 18,741,139.41 8,497,381.93 (3,453,915.93) 5,043,468.00 Construction equipments 365,642.53 365,619.53 23.00 69.00 92.00 Other equipments 29,964,075.00 2,550,7210.80 4,456,864.20 4,940,248.80 9,397,113.00 Total 74,342,060.56 61,387,605.43 12,954,455.13 1,486,587.87 14,441,043.00 6. Transmission & Distribution

Lines:

Transmission Lines 5,468,010,755.35 1,625,740,813.37 3,842,269,941.98 4,650,422,453.02 8,492,692,395.00 Distribution Lines 5,542,434,083.19 2,335,604,629.04 3,206,829,454.15 (357,048,691.15) 2,849,780,763.00 Transmission & Distribution

Plants 2,698,460,604.93 985,588,127.67 1,712,872,477.26 520,467,113.74 2,233,339,591.00

Consumer Metering 922,512,505.25 436,558,934.72 485,953,570.53 93,298,826.47 579,252,397.00 Total 14,631,417,948.72 5,383,492,504.80 9,247,925,443.92 4,907,139,702.08 14,155,065,146.00 7. Water Services: Tube wells & ponds 15,553,190.31 12,390,412.50 3,162,777.81 2,662,452.19 5,825,230.00 Water pumps 535,663.15 516,002.28 19,660.87 41,874.13 61,535.00 Water pipeline tanks 3,927,438.93 2,886,615.63 1,040,823.30 852,013.70 1,892,837.00 Total 20,016,292.39 15,793,030.41 4,223,261.98 3,556,340.02 7,779,602.00 8. Vehicles: Light Vehicles 198,136,736.67 179,191,351.07 18,945,385.60 10,021,500.40 28,966,886.00 Heavy Vehicles 15,406,409.35 15,406,390.35 19.00 1.00 20.00 Total 213,543,146.02 194,597,741.42 18,945,404.60 10,021,501.14 28,966,906.00 9. Other Assets: Loose tools 413,992.45 413,992.45 1.00 - 1.00 Marine Crafts - - - - - Unclassified Assets 1,525,866.05 1,434,683.55 91,182.50 289,800.00 380,982.50 Total 1,939,858.50 1,848,675.00 91,183.50 289,800.00 380,983.50 Grand total 16,571,243,802.24 6,208,800,920.65 10,362,442,881.59 16,410,159,450.91 26,772,602,332.50

25

Last five years transactions between the issuer company and its subsidiary/holding Company:

Bangladesh Oil, Gas & Mineral Corporation (PETROBANGLA) owns 100% share of TGTDCL. The transaction with Petrobangla during last five years is shown below: (Amount in Taka)

Particulars Holding/ Associate

As on 30-06-2007

As on 30-06-2006

As on 30-06-2005

As on 30-06-2004

As on 30-06-2003

Due to Petrobangla 100% owns of share 20,17,35,531 24,61,07,395 16,12,04,150 14,08,72,293 10,77,70,405

Special report from the auditors regarding any allotment of shares to promoters or sponsors:

To whom it may concern:

This is to certify that as per share register and other relevant records maintained by Titas Gas Transmission and Distribution Company Limited (TGTDCL), the paid-up capital of the company as at 30 June 2007, was Tk. 238,88,07,500 divided into 47,77,615 ordinary shares of Tk. 500 each. The break-up of the paid-up share capital of last five years ended on 30th June 2007 commencing from 30th June 2003 are as follows:

Amount in Taka Particulars 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003

30,14,648 Ordinary shares of Tk. 500 each fully paid-up

150,73,24,000 150,73,24,000 150,73,24,000 150,73,24,000 150,73,24,000

17,62,967 Ordinary shares of Tk. 500 each issued against share money deposit

88,14,83,500 - - - -

Total 238,88,07,500 150,73,24,000 150,73,24,000 150,73,24,000 150,73,24,000 This is also to certify that:

The Company in its Extra Ordinary General Meeting held on October 24, 2007 decided to split up its shares from Tk. 500 each to Tk. 100 each and the diluted paid-up capital of the Company stands as follows: -

Sl No Particulars No. of

Shares Paid-up Capital

(in Tk.) Remarks 1. Splitting of original value of Shares as on

30th June, 2007 from Tk. 500 each to Tk. 100 each.

2,38,88,075 238,88,07,500 As per decision taken in EGM held on 24.10.2007

2. Issuance of Bonus Shares from Revenue Reserve.


3. Conversion of unpaid ADP Local Currency Loan of Tk. 186,58,16,200 into 186,58,162 Shares of Tk. 100 each.

1,86,58,162 186,58,16,200 Approved in principle by Finance Division, Ministry of Finance vide Memorandum No. Ag/Awe/gwbt/wZZvm/BKzBwU/2007/619, dt. 20.03.'08 but final approval is needed after completion of share off-loading by TGTDCL. In this regard company's resolution is taken vide Circulation No.-74 dt. 07.04.2008.

Total 8,56,46,912 856,46,91,200

Sd/- Dhaka, Dated: 28.04.2008

Khan Wahab Shafique Rahman & Co. Chartered Accountants

26

Material information having an impact on the affairs of the company:

We furnish the following information, which has an impact on the affairs of the company: (Amount in Taka)

Particulars 2006-07 2005-06 2004-05 2003-04 2002-03 Sale 38,957,171,618 34,539,725,659 30,306,440,814 26,712,347,617 24,222,436,057 Operating Expenses 2,013,045,297 1,783,460,167 1,602,448,228 1,487,188,792 1,373,899,905 Net Income Before Tax 3,943,234,643 3,042,104,435 2,392,451,872 1,963,697,595 1,985,238,378 Net Profit after Tax & WPPF 2,575,240,914 2,064,038,395 1,495,282,420 1,128,965,657 1,154,669,962

Statement of Changes in Equity For the year ended 30 June 2007

(Amount in Taka) Particular Share Capital Deposits for Share Capital Reserves Revenue Reverse Total

Balance as on 01 July 2006 150,73,24,000 88,14,83,800 75,46,93,866 486,33,47,110 800,68,48,776 Addition during the year - 6,55,579 - - 6,55,579 Issue of Share 88,14,83,500 (88,14,83,500) - - - Net Profit for the year - - - 257,52,40,914 257,52,40,914 Prior years' adjustments - - - 1,99,73,644 1,99,73,644

Dividend paid during the year - - - (88,25,54,000) (88,25,54,000) Balance as on 30 June 2007 238,88,07,500 6,55,879 75,46,93,866 657,60,07,668 972,01,64,913

The Company in its Extra Ordinary General Meeting held on October 24, 2007 decided to reduce the denomination of its share from Tk. 500 each to Tk. 100 each. Considering this, as on 30.06.2007 the number of paid-up shares of the Company stands at 2,38,88,075. Subsequently, the Company raised its paid-up capital from Tk. 238,88,07,500 to Tk. 856,46,91,200 by the following way:

Sl. No. Particulars No. of Shares

Paid-up Capital (in Tk.) Remarks

1. Issuance of Bonus Shares from Revenue Reserve


2. Conversion of unpaid ADP Local Currency Loan of Tk. 186,58,16,200 into 186,58,162 Shares of Tk.100 each.

1,86,58,162 186,58,16,200 Approved in principle by Finance Division, Ministry of Finance vide Memorandum No.- Ag/Awe/gwbt/ wZZvm/ BKzBwU/ 2007/619, dt. 20.03.'08 but final approval is needed after completion of share off-loading by TGTDCL. In this regard company’s resolution is taken vide Circulation No.-74 dt.07.04.2008

Total 856,46,912 856,46,91,200

F. Directors and Officers:

Sl. No.

Names and address of the directors Age Position Representative of

1 Mohammad Mohsin Secretary, Energy & Mineral Resources Division.

53 Years Chairman of TGTDCL Board

Energy & Mineral Resources Division.

2 Md. Mokhlesur Rahman Chairman, Bangladesh Chemical Industries Corporation (BCIC).

53 Years Director of TGTDCL Board

Bangladesh Chemical Industries Corporation

(BCIC). 3 Jalal Ahmed

Chairman, Bangladesh Oil, Gas & Mineral Corporation (Petrobangla).


Bangladesh Oil, Gas & Mineral Corporation

(Petrobangla) 4 Md. Showkat Ali

Chairman, Bangladesh Power Development Board (BPDB).


Bangladesh Power Development Board

(BPDB). 5 Major (Retd.) Md Muqtadir Ali

Director (PSC) Petrobangla.


Bangladesh Oil, Gas & Mineral Corporation

(Petrobangla)

27

Sl. No.

Names and address of the directors Age Position Representative of

6 Abdul Hafiz Chowdhury Vice President, Metropolitan Chamber of Commerce & Industries (MCCI) & Partner, Rahman Rahman Huq, Dhaka.


Metropolitan Chamber of Commerce & Industries

(MCCI)

7 Md. Hossain Khaled President, Dhaka Chamber of Commerce and Industries (DCCI).


Dhaka Chamber of Commerce and Industries

(DCCI) 8 Md. Humyun Kabir

PS to Special Assistant to Hon'ble Chief Advisor, M/O Power, Energy and Mineral Resources


Energy & Mineral Resources Division.

9 Md. Abdullah Managing Director, Titas Gas T & D Co. Ltd.


Titas Gas Transmission & Distribution Company Ltd.

Date of first becoming Director and date of expiry of current term:

Sl. No.

Name of Directors Date of becoming Director for the first time Date of Expiration of Current Term

1 Mohammad Mohsin 25.11.2007 2 Md. Mokhlesur Rahman 05.04.2007 3 Jalal Ahmed 26.09.2007 4 Md. Showkat Ali 27.02.2008 5 Major (Retd.) Md Muqtadir Ali 26.02.2007 6 Abdul Hafiz Chowdhury 10.04.2003 7 Md. Hossain Khaled 15.02.2007 8 Md. Humayun Kabir 13.03.2008 9 Md. Abdullah 11.11.2003

One third of total directors takes retirement at every Annual General Meeting and re-elect if eligible as seniority.

Involvement of Directors with other companies:

Sl. No.

Name of director Name of other organization/company where the director is involved Position.

Mobil – Jamuna Lubricants Ltd. Chairman Bangladesh Petroleum Exploration & Production Company Ltd. (BAPEX) Chairman

1 Mohammad Mohsin

Bangladesh Petroleum Institute Chairman 2 Md. Mokhlesur Rahman Bangladesh Chemical Industries Corporation (BCIC) Chairman

Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) Chairman Gas Transmission Co. Ltd. Chairman Sylhet Gas Fields Ltd. Chairman Barapukuria Coal Mining Co. Ltd. Chairman Madhyapara Granite Mining Co. Ltd. Chairman Rupantarita Prakritik Gas Co. Ltd. Director Bangladesh Petroleum Exploration & Production Co. Ltd. Director Bangladesh Gas Fields Co. Ltd. Director

3 Jalal Ahmed

Bangladesh Petroleum Institute Director Bangladesh Power Development Board Chairman Dhaka Power Distribution Company Ltd Director

4 Md. Showkat Ali

Power Grid Company of Bangladesh (PGCB) Director Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) Director Gas Transmission Co. Ltd. Director

5 Major (Retd.) Md. Muqtadir Ali

Jalalabad Gas Transmission & Distribution System Ltd. Director Metropoliton Chember of Commerce and Industires Vice-President 6 Abdul Hafiz Chowdhury

Jalalabad Telecom Limited Director

28

Sl. No.

Name of director Name of other organization/company where the director is involved Position.

Dhaka Chember of Commerce & Industry President Bangladesh Finance & Investment Co. Ltd. Vice Chairman Anwar Jute Spinning Mills Ltd. Managing Director In2it Interactive Ltd. Managing Director AG Automobiles Ltd. Managing Director Anwar Silk Mills Ltd. Director Anwar Ispat Ltd. Director Anwar Cement Ltd. Director Anwar Landmarks Ltd. Director Mehmud Industries (Pvt.) Ltd. Director Hossain Dyeing & Printing Mills Ltd. Director City General Insurance Co. Ltd. Director The City Bank Ltd. Director Bangladesh Services Ltd. Director

7 Md. Hossain Khalied

Electricity Generation Co. of Bangladesh Ltd. Director 8 Md. Humyun Kabir - - 9 Engr. Md. Abdullah - -

Involvement of Directors with listed company in terms of dividend and category:

Sl.No. Name of director Name of organization/ company where the director is involved

Position Listing category in terms of dividend

1 Mohammad Mohsin

Nill Nill Nill 2 Md. Mokhlesur Rahman Nill Nill Nill 3 Jalal Ahmed Nill Nill Nill 4 Md. Showkat Ali Power Grid Company of Bangladesh (PGCB) Director A 5 Major (Retd.) Md. Muqtadir Ali Nill Nill Nill 6 Abdul Hafiz Chowdhury Nill Nill Nill

Bangladesh Finance & Investment Co. Ltd. Vice Chairman “N” City General Insurance Co. Ltd. Director “Z”

7 Md. Hossain Khalied

The City Bank Ltd. Director “A” 8 Md. Humayun Kabir Nill Nill Nill 9 Engr. Md. Abdullah Nill Nill Nill

Family relationship among directors, alternate directors, nominees and officers:

There is no family relationship among Directors, alternate Directors, nominees and Officers.

Short Bio-data of each Director:

The Board of Directors of TGTDCL comprises of 9 (nine) Members including the Chairman and Managing Director. A brief introduction of the Members of the Board of Directors of TGTDCL is as follows:

Mohammad Mohsin, Chairman & Director

Mohammad Mohsin, son of late Abdul Mannaf, was born in Chandpur. 53 years of age Mr. Mohsin completed B.A (Hons.) and M.A degrees in Economics from the Dhaka University in 1977 and 1979 respectively. He obtained M.Sc. in Business Studies from Salford University, UK in 1991. He started his career as Staff Economist of BRAC in 1979. In 1981 he joined the Bangladesh Civil Service and served as Assistant Secretary and Senior Assistant Secretary under the Ministries of Defence, Livestock, Finance and Establishment at different periods till March 1996. In his service tenure he was promoted to Deputy Secretary, Joint Secretary, Additional Secretary and Secretary and served in the Ministries of Establishment, Agriculture, Home Affairs and Board of Investment in different capacities. Currently he is the Secretary of Energy and Mineral Resources Division. He is the Chairman of the Board of Directors of Mobil-Jamuna Lubricants Ltd., BAPEX (Bangladesh Petroleum Exploration & Production Company Ltd. and Bangladesh Petroleum Institute (BPI). He is also associated with different social organizations like JICA Alumni, Alumni of British Council Scholars and Officers’ Club. He attended various training programs and seminars at home and abroad. He visited a number of countries including Indonesia, Sri Lanka, Pakistan, UK, Japan, Malaysia, Vietnam, Myanmar, Singapore, Thailand, India, USA and Saudi Arabia.

29

Md. Mokhlesur Rahman, Director Md. Mokhlesur Rahman, son of Jalaluddin Ahmed and late monwara begum was born on 05-03-1955 in Kalapara, Patuakhali. He obtained M.S.S in Economics from Dhaka University in 1977. He also completed Diploma in Development Planning Land. He started his carrier as Assistant Commissioner on 30.01.1981 and upto the date he is promoted to the post of Additional Secretary. At present he is entrusted with the responsibility of Chairman of BCIC. He took part in local training program arranged by the organizations like PATC, APD, BCS Admin Academy and foreign training in U.K. Singapore, Thailand, India and Indonesia. He traveled Japan, France, Malaysia, South Africa and Senegal. Jalal Ahmed, Director

Jalal Ahmed, son of Md. Abdur Rahman, was born in 1961. He graduated with Honors in Public Administration from the University of Dhaka in 1981 and did his MSS from the same University in 1982. After completion of his education Mr. Jalal joined the Bangladesh Civil Service (Administration) Cadre in 1983 and served as Assistant Commissioner, Upazila Magistrate & Metropolitan Magistrate, Upazila Nirbahi Officer, Senior Assistant Secretary, Additional Deputy Commissioner, Deputy Commissioner, Deputy Secretary and Joint Secretary in the field of administration in various places of the country in different times. Before joining Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) as Chairman he served as the Chief Metropolitan Magistrate in Dhaka during the period from 2 December 2004 to 24 September 2007. He attended various training programs and conferences at home and abroad. He is also the Chairman of the Board of Directors of Gas Transmission Co. Ltd., Sylhet Gas Fields Ltd., Barapukuria Coal Mining Co. Ltd. and Madhyapara Granite Mining Co. Ltd. and the Director of the Board of Directors of Rupantarita Prakritik Gas Co. Ltd., Bangladesh Petroleum Exploration & Production Co. Ltd., Bangladesh Gas Fields Co. Ltd. and Bangladesh Petroleum Institute. He traveled abroad extensively and visited Sweden, India, Thailand, UK, USA, UAE, Belgium, Egypt, Finland, France, Hong Kong, Jordan, China, Australia, Switzerland, Oman, Malaysia, Myanmar, the Netherlands, Singapore and Qatar. Md. Showkat Ali, Director

Md. Showkat Ali, son of late Md. Abid Ali, was born on 7th April, 1952 in Brahmanbaria. He passed B.Sc. Engg. (Electrical) from BUET. He joined Bangladesh Power Development Board (BPDB) as Assistant Engineer in 1976 and mainly responsible for power distribution, operation & maintenance, commercial operation, system control, distribution planning, generation and project planning. Mr. Ali also served as Director of Dhaka power Distribution Company Ltd. (DPDC) and Power Grid Company of Bangladesh ltd. (PGCB). He has participated 21 Professional Training courses including 7 foreign training courses and seminars.

Major (Retd.) Md. Muqtadir Ali, Director

Retired Major Md. Muqtadir Ali, son of Late Hajee Md. Abdur Rashid, was born on 20 October 1952 in Sylhet. He did his BA degree from the University of Dhaka in 1983. In 1972 he joined Bangladesh Army as 2nd Lieutenant and got retirement from Bangladesh Army as Major in 1981. Then he joined Bangladesh Petroleum Corporation (BPC) in 1982 and served as Secretary of the Board of Directors of BPC for two years. In 1984 he deputed to the Titas Gas Transmission and Distribution Company Limited at the same post and promoted to Managing Director in 1992. He also acted as Managing Director of Bangladesh Petroleum and Exploration Company from 1998 to 2001 and Director of Bangladesh Oil, Gas and Mineral Corporation from 2001 to till to date. Mr. Ali an energetic person with amiable behaviour trained in Human Resource Development, Oil and Gas Regulatory and Pricing Issues and International Project Procurement and Contract Negotiation. He attended several seminars in abroad related to energy sector. He is engaged in various social activities of the country. He traveled abroad severally and visited India, People’s Republic of Chaina, Thailand, Saudi Arabia, Singapore, Malaysia, UK, USA, Canada, France, Italy, Nepal, Philippines, Bahrain, Oman and Abu Dhabi. Abdul Hafiz Choudhury, Director Abdul Hafiz Choudhury, son of late Zillur Rahman choudhury, was born on 9th April, 1938 in a respectable Muslim family in Sylhet. After completing Masters degree in commerce from Dhaka University, he completed Chartered Accountancy and obtained fellowship (FCA) from England & Wales in 1966. Mr. Abdul Hafiz Choudhury enjoys a huge reputation for his contribution in formulating regulations and policies of different Government Authorities. Mr. Choudhury also contributed to formulate Tax Policy, SEC Regulations, Bangladesh Bank Credit policies for bank. He has been involved in setting up of many industrial and commercial companies in his professional capacity. He is the Vice President of Metropolitan Chamber of Commerce & Industries (MCCI), Dhaka & United Nations Association of Bangladesh and senior partner of Rahman Rahman Huq, a Chartered Accountancy Firm. He is also associated with Jalalabad Telecom Limited as Director. In his 40 years of professional experiences he took part in many seminars in various countries of the world and traveled most of the countries of Asia, Europe, USA and some of the countries of Africa including South Africa.

30

Md. Hossain Khaled, Director

Md. Hossain Khaled, son of Al-haj Anwar Hossain, was born in 1976 in a respectable muslim family in Dhaka. He completed BBA and MBA degrees from University of Toledo, Ohio, USA and University of texas A & M, Texas, USA in 1997 and 1999 respectively. After completion of his education Mr. Hossain a dynamic & hard working person gathered knowledge in Modern Methods, Technology, Production and Marketing & Management Techniques of various industries being associated with various companies as Director, Managing Director and Vice Chairman. These experiences assisted to make him elected as President of Dhaka Chamber of Commerce & Industry (DCCI) for the current term. He attended the 5th World Chamber Congress and several seminars in abroad. He traveled at least 15 countries for his business purpose. Being President of the DCCI Mr. Hossain is contributing to various social organizations. Md. Humayun Kabir, Director

Md. Humayun Kabir, son of late Muhammad Daud, was born on 20 February 1959 in Dhaka. He obtained B.Sc. (Hons.) degree from Dhaka University in 1981. He is a civil servant. After completion of his graduation Mr. Kabir joined the Bangladesh Civil Service (Administration) Cadre in 1986. In his service life he worked as Assistant Commissioner, Assistant Commissioner (Land), Upazila Nirbahi Officer and Deputy Secretary under different Ministries such as Establishment, Land, Home Affairs, Housing & Public Works, PT & T, PE & MR etc. in various places of the country in different time. In 2000 he obtained a Professional Master’s Degree from Netherlands. Deputy Secretary Mr. Kabir is serving now as Private Secretary to Special Assistant to Hon’ble Chief Advisor. Training programme on BCS Administration, Land Administration, Foundation Training for BCS Officers, Survey & Settlement, Advanced Course on Administration & Development, Laws & Rules of election, Local Government Administration, Green Trade for Protection of Ozone Layer and Bangladesh Military Academy Training at home and Hostage Negotiation Course & Comprehensive Security Response Terrorism in USA illuminated his carrier. He traveled in India, Thailand, Netherlands, Germany, France, Belgium, Myanmar, USA, South Korea and Malaysia. Md. Abdullah, Managing Director & Director Md. Abdullah, Son of Late Alhaj Amir Uddin Ahmed was born on 1st October, 1952. He completed his B.Sc. Engineering (Metallurgical) degree from Bangladesh University of Engineering and Technology (BUET), Dhaka obtaining First Class First in 1976 (1973-74 Session). After that he completed his M.S. Degree from Yugoslavia in 1981. He is a life fellow of the Institutionary Engineer Bangladesh (IEB). He has also acquired the degree of professional Engineer from Bangladesh professional Engineers registration Board. In his long professional experience Mr. Abdullah started his career in Chittagong Steel Mills Ltd (An enterprise of BSEC) as Assistant Engineer in June 1976. He has joined in Titas Gas Transmission and Distribution Co. Ltd as Managing Director on 8th November, 2003, prior to joining Titas Gas Transmission and Distribution Co. Ltd he was serving as General Manager of Jalalabad Gas Transmission and Distribution system Ltd, Sylhet a company of Petrobangla. He has an outstanding and significant profile in the gas sector. During his long career he underwent various training courses and participated in seminars and workshops on different aspects / issues of gas sector held in the country and abroad and gained excellent exposure in modern concept of gas Distribution marketing.

Holding of 5% or more shares in the paid-up capital by the directors or shareholders of the Issuer is loan defaulter in terms of the CIB report of the Bangladesh Bank:

As the Shareholder or Directors of TGTDCL are nominated by the Govt. through Bangladesh Oil, Gas & Mineral Corporation (Petrobangla), the question of involvement of TGTDCL Shareholders and Directors as a loan defaulter in terms of the CIB report of the Bangladesh Bank shall not arise.

Description of Senior Executives and Officers:

SL. No.

Name Position Educational Qualification

Date of joining in

the Company

Last Five Years Experience

1. Engr. Md. Abdullah Managing Director B.Sc. Engineering (Metallurgical), M.Sc

08/11/2003 Managing Director in TGTDCL

2. Engr. Md. Aminur Rahman Director (Operation) B.Sc.Engg (Mech) 08/11/2003 GM. Operation. Director Operation (on contract) in TGTDCL

3. Engr. Mahbubul Alam

General Manager (Investment board)

B.Sc.Engg (Mech) 31/07/1975 GM in TGTDCL

31

SL. No.

Name Position Educational Qualification

Date of joining in

the Company

Last Five Years Experience

4. Engr. Khurshidul Hasan General Manager(Services division)

B.Sc.Engg (Civil) 22/09/1976 DGM, GM in TGTDCL

5. M. Zahirul Alam, FCA Director (Finance) B.Com, PGD-in-Fin. Management Control

01/01/2005 Financial Adviser of a project of R&H financed by ADB. Director Finance (on contract) in TGTDCL.

6. Engr. Foadul Islam General Manager(Planning & Development)

B.Sc. Engg (Chemical) 27/07/1978 DGM, GM in TGTDCL.

7. Engr. Khalid Hasan General Manager(Vigilance)

B.Sc. Engg (Chemical) 20/12/1978 DGM, GM in TGTDCL.

8. S. M. Faruque General Manager(Admn) BA(Hons) MA(Economics),

02/08/1980 DGM (Admn.) Company Secretary and General Manager (Admn.) in TGTDCL.

9. Khalequzzaman Faruk GM/Secretary, Corporate division, Incharge

B. A. 22/08/1985 DGM, GM (Admn.) Addl. charge, Company Secretary, Addl. Charge in TGTDCL.

10. Minara Begum GM(Metro-Revenue) Incharge

B.Com, CA(Intermediate)

05/06/1975 DGM, GM incharge in TGTDCL.

11. Engr. Md.Ashab Uddin

General Manager (Regional Marketing Div.Gazipur) Incharge

B.Sc. Engineering (Civil) 02/08/1978 DGM, GM incharge in TGTDCL in TGTDCL.

12. Engr. Md. Nizam Uddin Sarker General Manager (Metro-Dhaka Marketing Div. North) Incharge

B.Sc.Engineering (Civil) 11-06-1980 DGM, GM incharge in TGTDCL.

13. Engr. Shahinoor Alam General Manager (Regional Marketing Div. N. Gonj) Incharge

B.Sc.Engineering (Mech.)

21/06/1980 Manager, DGM, GM, incharge in TGTDCL.

14. Engr. Amir Ahmed DGM (E & CC) and GM(Engg. Services Div.) Addl. Charge

B.Sc.Engineering (Chemical)

25/03/1987 Manager, DGM, GM (Addl. charge ) in TGTDCL.

15. Engr. Mojibul Hoque

DGM (Metro Sales-1) & GM (Metro Dhaka Marketing Div. South) Addl. Charge


28/03/1987 Manager, DGM, GM (Addl. charge) in TGTDCL.

16. Engr. S.M. Nazrul Islam DGM (RDD-BR) & GM (RMD, Mymensingh) Addl Ch


29/03/1987 Manager, DGM, GM (Addl. charge) in TGTDCL.

G. Involvement of the Officers and Directors in certain legal proceedings:

No officer or Director of the company was involved in any of the following types of legal proceedings in the last 10 (Ten) years or for the period of commercial operation:

1. Any bankruptcy petition filed by or against any company of which any officer or Director or nominee of the Company filing the prospectus was a Director, Officer or general partner at the time of bankruptcy or within 2(two) years prior to that time;

2. Any conviction of an officer, director or nominee in the criminal proceedings or any criminal proceedings pending against him; 3. Any order, judgment or decree of any court of competent jurisdiction against officer, director or nominee permanently or temporarily

enjoying, barring, suspending or otherwise limiting the involvement of any officer or director or nominee in any type of business, securities or banking activities.

4. Any order of the Securities and Exchange Commission or other regulatory authority or foreign financial regulatory authority suspending or otherwise limiting the involvement of any officer or director or nominees in any type of business, securities or banking activities.

32

H. Certain Relationships and Related Transactions:

Transaction with related parties:

The Company has no proposed transaction nor had any transaction during the last 2(two) years with following related parties:

1. Any director or executive officer of the company; 2. Any Director or officer; 3. Any person owning 5% or more of the outstanding stock of the issuer; 4. Any members of the immediate family (including spouse, parents, brothers, sisters, children and in-laws) of any of the above persons; 5. Any transaction or arrangement entered into by the company for a person who is currently a director or in any way connected with a

director of either the issuer company or who was a director or connected in any way with a director at any time during the last two years prior to the publication of Information document.

6. Any director holding any position, apart from being a director in the issuer company, in any company, society, trust, organization or proprietorship or partnership firm.

Loans taken or given from or to any director or any person connected with the director:

No such loans was taken or given from or to director or any person connected with the director of TGTDCL.

Pecuniary or non-pecuniary interests and facilities enjoyed by a director:

Facilities whether pecuniary or non-pecuniary enjoyed by the Directors will remain unchanged during the publication period of the Information document. The shareholder directors only receive the fees for their attendance in the Board meetings and other functions. The executive directors are entitled for salary and other benefits as per contract with the Company.

I. Executive Compensation:

Name and designation with the amount of remuneration paid to the top ten salaried officers in the last accounting year (2006-07):

Sl. No.

Name Designation Basic H.R. Gas Sub.

M.A./ M.B

W.A. Bonus GPF CPF

1 Engr. Md. Abdullah MD 705006 234000 6239 28913 - 225980 - 70504 2 Engr. Md. Aminur

Rahman Director

(Operation) 564005 192000 6239 - - 180784 - 56401

3 M. Zahirul Alam, FCA Director (Finance)

529272 192000 6239 45312 - 170848 - 52926

4 Engr. Khurshidul Hasan GM (Services)

240600 120000 6239 6000 1200 80200 24060 -

5 Engr. Fuadul Islam GM (Planning)

240600 120000 6239 6000 1200 80200 24060 -

6 Engr. Khalid Hasan GM 240600 120000 6239 6000 1200 80200 - 24060 7 S. M. Faroque GM 240600 120000 6239 6000 1200 80200 24060 - 8 Minara Begum GM in Charge 240600 120000 6239 6000 1200 80200 24060 - 9 Md. Asabuddin GM in Charge 240600 120000 6239 6000 1200 80200 24060 -

10 Khalekuzzaman Faroque GM in Charge 240600 120000 6239 6000 1200 80200 24060 -

Aggregate amount of remuneration paid to all officers and directors in the last accounting year: The aggregate amount of remuneration paid to Directors and Officers including Staff in the FY 2006-07: (Amount in Taka)

Particulars 2006-2007 Directors' fee 228,113 Employees remuneration 249,161,329

Total 249,389,442 Remuneration paid to any Director who was not an officer during the last accounting year:

The remuneration/honorarium paid to the directors (who were not officers) Tk. 204,113.00 during the FY 2006-07. Contract with any officer or director for the payment of future compensation:

There is no such contract. Increment of the remuneration to the officers and directors of the company in the current year:

TGTDCL follows Government pay scale policy for annual increment on the basis of basic salary of permanent employees, officers and executive Director(s).

33

J. Options granted to Officers, Directors and Employees: The Company has not granted any option for issuance of sharers to any Officer, Director and other employee of the Company.

K. Transaction with Promoters:

As TGTDCL is a Govt. owned company, the question of receiving any benefit by the promoters is irrelevant. However, Government being the promoter of the company did not receive anything of value directly or indirectly from any director or any person connected with the Director. L. Tangible assets per share:

Net Tangible Assets per Share:

Net Tangible Assets are valued on historical cost basis and considered on the basis of audited balance sheet as at 30 June 2007 as under:

Assets Amount (Taka) FIXED ASSETS a) Fixed assets (at cost- less accum. depreciation) 11,887,946,176b) Capital work-in-progress 2,955,926INVESTMENTS AND OTHER ASSETS a) Long-term bank deposits 4,056,613,013b) Loan to employees 842,960,541c) Encashable securities of Customers' & Contractors' 4,501,204,234CURRENT ASSETS a) Inventories of stores and other materials 1,322,130,082b) Advances, deposits and prepayments 258,128,324c) Trade debtors(Debtors less provision for bad & doubtful debts) 13,821,574,255d) Cash and bank balances (Including cash in transit) 1,177,354,378e) Other current assets 239,116,442f) Group current accounts 98,340,867

Total Assets 38,208,324,238Liabilities

CURRENT LIABILITIES i) GROUP COMPANY ACCOUNTS a) Payable for Gas purchase & transmission 10,697,758,839b) Payable for PDF & BAPEX margin 1,086,328,904ii) OTHER LIABILITIES a) Creditors and accruals 1,383,839,658b) Workers' Profit Participation Fund 222,315,797c) Current portion of long-term loans 790,269,491LONG TERM BORROWINGS (Local & Foreign) 4,587,705,354OTHER LONG-TERM LIABILITIES a) Pension fund 498,906,548b) Gratuity 9,272,754c) Leave pay 132,217,109d) General provident fund 195,513,650e) Customers' & Contractors' security deposits 8,884,031,222

Total Liabilities 28,488,159,325 Net Asset Value (NAV) 9,720,164,913 Number of Shares 4,777,615 Net Asset Value Per Share 2,035

The net assets value (NAV) is also equivalent to the shareholder's equity consisting of paid-up capital, capital reserve and retained earnings as follows:

34

Particulars Amount (Taka)

Share capital 2,388,807,500Deposits for Share 655,879Capital reserves 754,693,866Revenue reserves 6,576,007,668Total Shareholder's Equity 9,720,164,913Number of Shares 4,777,615Net Asset Value Per Share 2,035

Diluted Net Tangible Assets Value Per Share:

The Company in its Extra Ordinary General Meeting held on October 24, 2007 decided to split up its shares from Tk. 500 each to Tk. 100 each and the diluted paid-up capital of the company stands as follows:-

Sl. No.

Particulars No. of Shares Paid-up Capital (in Tk.)

Remarks

1 Splitting of the original value of shares as on 30th June 2007 from Tk. 500 each to Tk. 100 each.


2 Issuance of Bonus shares from Revenue Reserve.


3 Conversion of unpaid ADP Local Currency Loan of Tk. 186,58,16,200 into 186,58,162 Shares of Tk. 100 each.

1,86,58,162 186,58,16,200 Approved in principle by Finance Division, Ministry of Finance vide Memorandum No. Aj/A¢h/j¢ex/¢aa¡p/CL¤C¢V/2007/619, dt. 20.03.08 but final approval is needed after completion of share off-loading by TGTDCL. In this regard company’s resolution is taken vide circulation No. –74 dt. 07.04.2008

Total 856,46,912 856,46,91,200 Considering the above events- The Diluted Net Tangible Assets Value Per Share stands at Tk. (9,720,164,913÷ 85,646,912) = Tk. 113.49

Dhaka, Dated: 28.04.2008

Sd/- Khan Wahab Shafique Rahman & Co. Chartered Accountants

M. Ownership of the Company’s Securities:

Sl. No. Name of Owners of Security Position in the company No. Of Shares Amount in Taka

1. Jalal Ahmed Shareholder & Director 5 500.00

2. C. M. Yousuf Hossain Shareholder 5 500.00

3. Major Md Muqtadir Ali (Retd.) Shareholder & Director 5 500.00

4. Md. Mukbul-E-Elahi Shareholder 5 500.00

5. Md. Mahbubur Rahman Shareholder 5 500.00

6. Golam Mostafa Talukder Shareholder 5 500.00

7. Sahidul Abedin Shareholder 5 500.00

8. Petrobangla Shareholder 85,646,877 8,564,687,700.00

Total 85,646,912 8,564,691,200.00 ` Number of shares owned by the top ten salaried officers, directors and all other officers:

No share is owned by any salaried officers.

35

N. Description of Securities Outstanding or Being Offered: Dividend, voting and preemption rights of the shares outstanding or being offered:

The share capital of the company is divided into ordinary shares carrying equal rights to vote and receive dividend in terms of the relevant provisions of the Companies Act, 1994 and the Articles of Association of the company. Shareholders shall have the usual voting right in person or by proxy in connection with, among others, election of Directors & Auditors and other usual agenda of General Meeting – Ordinary or Extra Ordinary. On a show of hand every shareholder present and every duly authorized representative of a

shareholder present at a General Meeting shall have one vote and on a poll every shareholder present in person or by proxy shall have one vote for every share held by him/her.

In case of any additional issue of shares for raising further capital, the existing shareholders shall be entitled to Right Issue of shares in terms of the guidelines issued by the SEC from time to time.

Conversion and liquidation rights of any preferred stock outstanding or being offered:

If the company at any time issues convertible preference shares or Debenture or Bond with the consent of SEC, such holders of securities shall be entitled to convert such securities into ordinary shares if it is so determined by the company.

Subject to the provisions of the Companies Act, 1994, Articles of Association of the Company and other relevant Rules in force, the shares, if any, of the company are freely transferable, the company shall not charge any fee for registering transfer of shares. No transfer shall be made to firms, minors or persons of unsound mental health.

Payment of dividends to common or preferred stockholders:

a) The profit of the company, subject to any special right relating thereto created or authorized to be created by the Memorandum of Association subject to the provision of the Articles of Association, shall be divisible among the members in proportion to the capital paid up on the shares held by them respectively.

b) No higher dividend shall be declared than is recommended by the Directors, but the Company in its General Meeting may declare a

smaller dividend. The declaration of Directors as to the amount of net profit of the company shall be conclusive.

c) No dividend shall be payable except out of profits of the company or any other undistributed profits. Dividends shall not carry interest as against the Company.

d) The Directors may, from time to time, pay the members such interim dividend as in their judgments the financial position of the

company may justify.

e) A transfer of shares shall not pass the right to any dividend declared thereon before the registration of transfer. Others material rights of common or preferred stockholders:

The Shareholders shall have the right to receive all periodical reports and statements, audited as well as un-audited, published by the company from time to time. The Directors shall present the financial statements as required under the Law and International Accounting Standards. Financial Statements will be prepared in accordance with International Accounting Standards, consistently applied throughout the subsequent periods and present with the objective of providing maximum disclosure as per law and International Accounting Standard to the shareholders regarding the Financial and operational position of the company.

In case of any declaration of stock dividend by issue of bonus shares, all shareholders shall be entitled to it in proportion to their shareholdings on the date of book closure/ record date for the purpose.

The shareholders holding not less than 10% of the issued/fully paid up capital of the company shall have the right to requisition Extra-ordinary General Meeting of the Company as provided under Section 84 of the Companies Act, 1994.

O. Debt Securities: Terms and conditions of debt securities that the company may have issued or to be issued: The Company did not issue any debt securities and has no plan to issue any debt securities within next six months.

36

P. Financial Statement Requirements:

TITAS GAS TRANSMISSION & DISTRIBUTION CO. LTD.

AUDITORS REPORT TO THE SHAREHOLDERS We have audited the accompanying Balance Sheet of TITAS GAS TRANSMISSION & DISTRIBUTION CO. LTD. (a company of Petrobangla) as at 30th June, 2007 and the related Income Statement and the Cash Flow Statement for the year then ended together with the Notes of accounts thereto. RESPECTIVE RESPONSIBILITIES OF MANAGEMENT AND AUDITORS: The preparation of these financial statements is the responsibility of the company’s management. Our responsibilities to express an independent opinion, based on our audit, on these financial statements. BASIS OF OPINION: We conducted our audit in accordance with Bangladesh Standards on Auditing (BAS). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Financial Statements are free from material misstatement. An audit includes examining, on a test basis, of evidence supporting the amounts and disclosures of the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our Audit revealed the followings:

1. The carrying value (Net of depreciation) of fixed assets as shown on balance sheet was Tk. 118,879.46 lac. Since physical inventory of immovable assets as of 30.06.2007 was not carried out, the physical existence of those assets remained unconfirmed of Balance Sheet date. However, we have been informed by the management that physical inventory of moveable assets has been conducted at year end and duly reconciled. But in regard to immoveable assets, it is the company’s policy to conduct full inventory in every 5 years interval which will be due on 2008-2009 as informed to us.

2. As disclosed in Note # 20 of notes to the accounts that trade debtors includes outstanding debts of Tk. 36,394 lac being unrealized over the years despite reportedly best efforts for recovery by the management. The said outstanding debts includes due from Govt./Semi Govt. organization to the tune of Tk. 855 lac. Besides due from Govt. /Semi Govt. organization, net unrealized or doubtful of recovery debt comes to Tk. 35,539 lac against which provision for bad debts was made to the extent Tk. 26,443.66 being 72.66% of doubtful debts. We opine that provision for bad debts is inadequate in consideration of doubtful debts. 3. As disclosed in Note # 8 in regard to Pension fund in the Balance sheet, there has not been actual provision in the financial statements calculating actual liability as per BAS – 19.

OPINION:

Except for the matters as stated in the preceding paragraphs 1 to 3 together with their effects on the financial statements, we report that the financial statements referred to above prepared in accordance with the Bangladesh Accounting Standards give a true and fair view of the state of the Company’s affairs as of 30th June, 2007 and of the results of its operations and its cash flows for the year then ended comply with the applicable sections of the Companies Act 1994 and other applicable laws and regulations. We also report that:

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and made due verification thereof;

(b) In our opinion, proper books of accounts as required by law have been kept by the company, so far as it appeared from our examination of

those books;

(c) The Company’s Balance Sheet and Income Statement and its Cash Flow Statement dealt with by this report are in agreement with the books of accounts; and

(d) The expenditure incurred was for the purposes of the Company’s business.

Dhaka, December 2, 2007 Sd/- Khan Wahab Shafique Rahman & Co.

Chartered Accountants

SOURCES OF FUNDS : Notes 2006-2007 2005-2006

1. CAPITAL AND RESERVES 9,720,164,913 8,006,848,776 a) Share capital 3 2,388,807,500 1,507,324,000 b) Deposits for Share 3 655,879 881,483,800 c) Capital reserves 4 754,693,866 754,693,866 d) Revenue reserves 5 6,576,007,668 4,863,347,110

2. LONG-TERM BORROWINGS 4,587,705,354 5,041,037,612a) Unsecured loans - local sources 6 1,565,449,251 1,787,224,251b) Unsecured loans - foreign sources 7 3,022,256,103 3,253,813,361

3. OTHER LONG-TERM LIABILITIES 9,719,941,283 7,691,597,311a) Pension fund 8 498,906,548 462,112,762b) Gratuity 9 9,272,754 7,443,621c) Leave pay 10 132,217,109 120,300,919d) General provident fund 11 195,513,650 184,942,813e) Customers' & Contractors' security deposits 12 8,884,031,222 6,916,797,197

4. TOTAL CAPITAL EMPLOYED ( 1+2+3 ) 24,027,811,550 20,739,483,700

APPLICATION OF FUNDS :5. FIXED ASSETS 11,890,902,102 12,040,206,890

a) Fixed assets (at cost- less accum. depreciation) 13 11,887,946,176 10,692,063,282b) Capital work-in-progress 14 2,955,926 1,348,143,608

6. INVESTMENTS AND OTHER ASSETS 9,400,777,788 7,284,630,117a) Long-term bank deposits 15 4,056,613,013 3,093,980,894b) Loan to employees 16 842,960,541 836,032,492c) Encashable securities of Customers' & Contractors 17 4,501,204,234 3,354,616,731

7. CURRENT ASSETS 16,818,303,481 14,740,331,177a) Inventories of stores and other materials 18 1,322,130,082 682,840,234b) Advances, deposits and prepayments 19 258,128,324 268,609,465c) Trade debtors(Debtors less provision for bad & doubtful debts) 20 13,821,574,255 13,287,761,576d) Cash and bank balances (Including cash in transit) 21 1,177,354,378 279,500,514e) Other current assets 22 239,116,442 221,619,388

8. CURRENT LIABILITIES ( 8i + 8ii ) 14,082,171,821 13,325,684,485 i) GROUP COMPANY ACCOUNTS 11,685,746,875 11,297,058,288

a) Payable for Gas purchase & transmission 23 10,697,758,839 9,757,566,253 b) Payable for PDF & BAPEX margin 24 1,086,328,904 1,432,958,695 c) Group current accounts 25 (98,340,867) 106,533,339

ii) OTHER LIABILITIES 2,396,424,945 2,028,626,197a) Creditors and accruals 26 1,383,839,658 1,015,375,872b) Workers' Profit Participation Fund 27 222,315,797 165,397,061c) Current portion of long-term loans 28 790,269,491 847,853,264

9. NET CURRENT ASSETS ( 7- 8 ) 2,736,131,661 1,414,646,693

10. NET ASSETS ( 5+6+9 ) 24,027,811,550 20,739,483,700

(Figures in Taka)

BALANCE SHEET AS AT 30TH JUN. 2007

TITAS GAS TRANSMISSION AND DISTRIBUTION COMPANY LTD.(A COMPANY OF PETROBANGLA)105, KAZI NAZRUL ISLAM AVENUEKAWRAN BAZAR C/A, DHAKA-1215.

Sd/-M. ZAHIRUL ALAM, FCADIRECTOR (FINANCE)

Sd/-ENGR. MD. ABDULLAHMANAGING DIRECTOR

Sd/-MAJOR MD. MUQTADIR ALI (RETD.)

DIRECTOR37

Notes 2006-2007 2005-2006

1. SALES 38,957,171,618 34,539,725,659 a) Gas sales revenue 29 38,407,717,238 34,080,054,079b) Other operational income 30 549,454,380 459,671,580

2. COST OF SALES (2i + 2ii) 35,184,220,639 31,578,954,074 i) PURCHASE COST 33,171,175,342 29,795,493,907 a) Gas purchases 31 27,023,986,956 23,852,484,529 b) BAPEX margin 32 288,732,900 305,059,055 c) Gas transmission charge 33 2,583,833,948 2,192,626,425 d) Price Deficit Fund charge 34 3,274,621,538 3,445,323,899

ii) ADMINISTRATIVE & OTHER COST 2,013,045,297 1,783,460,167 a) Personnel costs 35 683,134,793 577,350,601 b) Professional services 35 15,446,510 12,674,634 c) Promotional costs 35 8,269,330 7,173,229 d) Power costs 35 23,081,938 20,180,324 e) Communication costs 35 5,230,576 4,669,430 f) Transport costs 35 65,323,359 56,068,182 g) Occupancy costs 35 40,869,481 31,035,058 h) Administrative costs 35 29,796,063 27,302,506 i) Miscellaneous costs 35 22,741,117 12,463,793 j) Transmission & distribution costs 35 40,524,927 62,924,418 k) Financial charges 35 6,382,116 1,053,436 l) Bad & doubtful debts 35 317,335,521 315,713,039 m) Depreciation 35 697,886,566 619,851,516 n) Petrobangla Service Charge 36 57,023,000 35,000,000

3. OPERATING PROFIT (1-2) 3,772,950,979 2,960,771,586 4. OTHER INCOME (NON-OPERATIONAL) 37 245,090,197 283,458,157 5. TOTAL INCOME (3+4) 4,018,041,176 3,244,229,742

6. FINANCIAL COSTS (122,355,199) 50,020,086 Interest cost 38 180,508,000 200,817,000 Less: Interest income 39 302,863,199 150,796,914

7. NET PROFIT BEFORE CONTRIBUTION TO 'WPPF' (5-6) 4,140,396,375 3,194,209,656 8. WORKERS' PARTICIPATION IN PROFITS 40 197,161,732 152,105,222 9. NET PROFIT BEFORE TAXATION (7-8) 3,943,234,643 3,042,104,435 10. PROVISION FOR TAXATION 1,367,993,729 978,066,040 11. NET PROFIT FOR THE YEAR AFTER TAXATION (9-10) 2,575,240,914 2,064,038,395

12. APPROPRIATION ACCOUNT 4,820,671,926 3,487,105,888 a) Profits brought forward from previous year 4,800,698,283 3,489,967,769b) Prior years' adjustments 41 19,973,643 (2,861,882)

13. TOTAL PROFITS BROUGHT FORWARD (11+12) 7,395,912,840 5,551,144,283 14. INTERIM DIVIDEND 42 (882,554,000) (750,446,000)

15. BALANCE TRANSFERRED TO BALANCE SHEET(13-14) 6,513,358,840 4,800,698,283

(Figures in Taka)

TITAS GAS TRANSMISSION AND DISTRIBUTION COMPANY LTD.(A COMPANY OF PETROBANGLA)105, KAZI NAZRUL ISLAM AVENUEKAWRAN BAZAR C/A, DHAKA-1215.

INCOME STATEMENT FOR THE YEAR ENDED 30TH JUN. 2007

Sd/-M. ZAHIRUL ALAM, FCADIRECTOR (FINANCE)

Sd/-ENGR. MD. ABDULLAHMANAGING DIRECTOR

Sd/-MAJOR MD. MUQTADIR ALI (RETD.)

DIRECTOR38

(Figures in Lakh Taka)CASH FLOWS FROM OPERATING ACTIVITIES:Net profit before Interest & Taxation 41,237.43 Adjustment for : .

Depreciation 6,978.86 Provision for bad debts 3,173.35

Increase in stores (6,392.90) Decrease in advance, deposits & prepayments 104.81 Increase in creditors for gas purchase 9,401.92 Decrease in creditors for Price Deficit Fund charge (2,814.60) Decrease in BAPEX charge (651.69) Increase in other liabilities 1,293.37 Increase in Inter-company accounts (2,048.74) Increase in gratuity 18.29 Increase in Workers’ Profit Participation Fund 569.79 Increase in accounts receivable (8,511.48) Interest paid (1,805.08) Income tax paid (10,970.38) Net cash from operating activities (11,654.48)

CASH FLOWS FROM FINANCING ACTIVITIES :Share capital 6.56 Proceeds from long-term loan 447.47 Payment of long-term loan (4,845.66) Dividend paid (8,825.54) Net cash from financing activities (13,217.17)

CASH FLOWS FROM INVESTING ACTIVITIES:Fixed deposit (9,626.32) Security received from customers 8,206.47 Increase in other assets (174.97) Acquisition of fixed assets & WIP (6,196.80) Increase in employees' loan (69.28) Increase in pension fund 367.94 Increase in provident fund 105.71 Net cash from investing activities (7,387.25) Net Increase in cash & cash equivalents 8,978.53 Cash & cash equivalents at beginning of the year 2,795.01 Cash & cash equivalents at end of the year 11,773.54

TITAS GAS TRANSMISSION AND DISTRIBUTION COMPANY LIMITED105, Kazi Nazrul Islam Avenue, Kawran Bazar , Dhaka-1215

CASH FLOW STATEMENTFor the year ended 30th June 2007

39

1.00 ACCOUNTING POLICIES :

1.01 Introduction

1.02 Accounting convention

1.03 Foreign currencies

1.04 Interest on loans

1.05 Amortization of ERF

1.06 Provision for Bad & Doubtful Debts

TITAS GAS TRANSMISSION AND DISTRIBUTION COMPANY LIMITED (A company of Petrobangla)

NOTES TO ACCOUNTS

Titas Gas Transmission & Distribution Company Limited (TGTDCL) was established in the year 1964 withthe aim and objective to transmit natural gas from the gas fields to different areas and to distribute thesame to the consumers in power, fertilizer, industrial, commercial, seasonal and domestic categories of itsfranchise area viz. B.Baria, greater Dhaka & Mymenshingh districts. After construction of the 58 miles longoriginal 14" dia gas transmission pipeline from B. Baria to Demra the Company started its commercialactivities in April 1968 supplying gas to Siddirgonj Power Station, the first gas consumer. Thereafter theCompany constructed different distribution lines in phases towrads Dhaka City area, Ghorashal andAshugonj for gas supply to the customers in all categories. Till the liberation of the country in 1971TGTDCL had been able to supply gas to two power stations, one fertilizer factory and about 2,000customers in other categories. After liberation of the country the Company has been Nationalized underthe Presidential Order No. 27/1972 and its overall activities has been placed under the supervision andcontrol of Bangladesh Oil, Gas & Mineral Corporation (Petrobangla). Subsequently the Company'sBoard was vested with full autonomy and exercise all financial powers as per Company's Act-1994 videthe government gazette notification no. weR¡vLm (cÖvmD-2)/M¨vm-2/2002 (Ask -2) 787 dated 5 November, 2002.TGTDCL since its inception has been developing day by day and at present it has a gas pipeline networkof about 10,293.42 km including the addition of 619.13 km during 2006-07 and a total customer base ofabout 1,239,900 nos. including the addition of 77,514 nos. during 2006-07. The total customers include 10power stations of PDB, 15 private power stations and 4 fertilizer factories in the bulk category.

The financial statements of the company placed in the foregoing pages are prepared using the historicalcost convention and on a going concern basis in accordance with Generally Accepted AccountingPrinciples (GAAP) as per Companies Act. 1994 and International Accounting Standards (IAS) as adoptedby the Institute of Chartered Accountants of Bangladesh.

Foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Monetaryassets and liabilities denominated in foreign currencies are translated at the rate of exchange prevailed onthe closing date and the resulting exchange gains and losses are recognized in the assets procured underthe principal foreign currencies.

Interest on loans that is directly attributable to the cost of development projects is capitalized as part of thedevelopment expenditure. All other interest is recognized in the Income Statement in the period in which itis incurred.

Exchange Rate Fluctuation (ERF) on foreign loans for 2006-07 has been added to the assets procuredwith the principal loans received as per petrobangla order no. 11.31.02/1000 dated 22/02/2001. Accordingto the order, the entire loss or gains due to ERF of a year will have to be added to or deducted from theassets procured with the foreign currency loan proceeds as per Company's act 1994.

Provision for Bad & Doubtful Debts @ 2% on non-bulk sales of the Company was provided since financialyear 1991-92 following the directives of the Petrobangla and the Board decision taken in its 277thmeeting. Subsequently the Board in its 519th meeting held on 04-01-2006 decided that provision @ upto3% against Bad & Doubtful Debts be provided on Accounts Receivable of non-bulk customers from thefinancial year 2004-05. Accordingly provision @ 3% was provided on Accounts Receivable during thefinancial year 2006-07.

40

1.07 Fixed assets

The fixed assets are stated at cost less accumulated depreciation up to the period.

1.08 Depreciation

Class of assets Rate of depreciationFreehold concrete & brick structure 2.50%Gas transmission pipelines 3.33%Gas distribution pipelines 5.00%Gas transmission & distribution plant 5.00%Consumer metering including CMS 10.00%Vehicles 20.00%Furniture & Fixtures 10.00%Office Equipments 15.00%Construction Equipments 20.00%Other assets 2.50 to 30.00%

1.09 Long-term loans

1.10 Other long-term liabilities

a) Security deposits of customers:

b) Pension fund:

c) Contributory provident fund:

d) Gratuity:

Depreciation has been charged on straight line method. Depreciation is charged on assets as periodicalbasis which acquired within first 03 quarters of the year and no depreciation is charged for assets acquiredin the last quarter of the year. No depreciation has been charged on Land and Land Development.Depreciation rates for the principal categories of assets are as follows:

Current portion of the long-term loans i.e. loans repayable during the next financial year has been shownas current liability in the Balance Sheet and the remaining balances are shown under long-term liabilities.

Deposits by the customers as security against gas connection as required under gas supply contracts areshown as long-term liabilities. Such deposits do not earn interest and are not repayable till gas supply tothe customers continues.

The company has created a pension scheme for its employees. This fund represents accumulated amountof company's contribution and interest earned thereon less payments made to the ex-employees enjoyingpension benefits. No actual estimate of the future liability to pay pensions has been carried out.

The Company also operates a contributory provident fund for its 44 employees who have opted not to jointhe pension scheme.

The company also operates an 'end of service facility' for gratuity to those employees who have opted forthe contributory provident fund.

41

1.11 Inventories

1.12 Trade debtors

Trade debtors are valued at their realisable value less provision for bad & doubtful debts.

1.13 Revenue reserves

1.14 Capital reserve

1.15 Price Deficit Fund (PDF)

1.16 Income

1.17 Expenditure

1.18 Corporate taxation

1.19 Re-arrangement of figure

1.20 The notes and schedules attached hereto form an integral part of the financial statements.

Inventories consist of about 12,000 items and are valued at weighted average cost. Stores in transit arevalued at actual cost incurred thereon up to the closing date.

Revenue reserves include only the amounts which are potentially distributable to the shareholders.

Capital reserve consists of Grants, Company's share of Hydrocarbon Development Fund (HDF) and ageneral reserve. Deposits for shares are converted into paid-up capital as and when shares are issued.Under a government order the HDF has been made out of sales revenue @ 2.50% on end users pricebasis up to November 1998 for future development expenditure of the company and other group operatingcompanies engaged in gas transmission, distribution and production. Contribution to this fund has beendiscontinued from 01.12.1998.

Price Deficit Fund (PDF) has been created with effect from 1st December 1998 as per order no. 15-1(Gas)/92(Vol.-2)/330 dated 29.08.1999 of the Ministry of Energy & Mineral Resources with a view tocover the possible deficit, if arises, in payment of gas bills in foreign exchange against cost of gaspurchased from International Oil Companies (IOC) under Production Sharing Contract. Accordinglyprovision has been made for payable towards the fund on 98% National gas and 100% IOC gaspurchases as per Petrobangla order no. 11.02.26/Ka/360, dated 05-06-2000.

The Company's main source of income is the revenue on sale of gas to different categories of consumersat prices set by the Government. Sales revenues are valued on accrual basis.

All known expenditure have been accounted for in the final accounts irrespective of whether the same ispaid or not up to the closing date.

Corporate income tax payable on profits is determined and provided for as per existing tax rules andregulations.

Figures representing last year's balance are re-arranged for consistency and in line with PetrobanglaGroup's Corporate Accounting Manual.

42

2.00 Financial Statement Analysis : Figures in Million Taka30th June'07 30th June'06

Internal cash generation 3,453.64 2.01 a) Debt service ratio = = = 3.31 : 1 2.89 : 1

(as per standard principle) Debt service requirement 1043.36 3.31

Internal cash generation :Net profit after tax 2575.24Depreciation 697.89Interest charged on ADP, ADB & OECF loan 180.51Total 3,453.64

Debt service requirement :ADP loan (principal) 298.33 ADB & OECF loan (principal) 549.52 Interest charged on ADP, ADB & OECF loan 180.51 IDC capitalised 15.00 Total 1043.36

Internal cash generation 3,494.21 b) Debt service ratio = = = 3.35 : 1 2.58 : 1

(as per ADB guideline) Debt service requirement 1043.36 3.35

Internal cash generation :Net profit after tax 2615.81Depreciation 697.89Interest charged on ADP, ADB & OECF loan 180.51Total 3,494.21

Debt service requirement :ADP loan (principal) 298.33 ADB & OECF loan (principal) 549.52 Interest charged on ADP, ADB & OECF loan 180.51 IDC capitalised 15.00 Total 1043.36

2.02 a) Debt equity ratio :(as per standard principle) Long term Loans 4,587.71

= 34 : 66 44 : 56Long term Loans + Equity 13,561.31 0.34

Equity :Share capital 2,388.81 Capital reserve 754.69 Less: HDF 745.91

8.78 Revenue reserve 6,576.01 Total 8,973.60

Long-term loans :Local loan 1,565.45 Foreign loan 3,022.26 Total 4,587.71

Total long-term loan & equity 13,561.31

43

b) Debt equity ratio :(as per ADB guideline) Long term Loans 4,587.71

= 34 : 66 45 : 55Long term Loans + Equity 13,601.88 0.34

Equity :Share capital 2,388.81 Capital reserve 754.69 Less: HDF 745.91

8.78Revenue reserve 6,616.58 Total 9,014.17

Long-term loans :Local loan 1,565.45 Foreign loan 3,022.26 Total 4,587.71

Total long-term loan & equity 13,601.88

Net profit after tax + Interest on Loan x 100 2,755.75 2.03 a) Rate of return on fixed assets = = = 24.41% 22.12%

(as per standard principle) Average net fixed assets 11,290.0124.41

Average net fixed assets :Fixed assets of 2006-07 11,887.95 Fixed assets of 2005-06 10,692.06

22,580.01

22,580.01 Average net fixed assets = = 11,290.01

2

Net profit after tax 2,575.24 Interest charged on ADP, ADB & OECF loan 180.51

2,755.75

Net profit after tax + Interest on loan -Translation gain on foreign currency loan x 100b) Rate of return on fixed assets =

(as per ADB guideline) Average net fixed assets24.34% 25.39%

Average net fixed assets : 24.34 Fixed assets of 2006-07 11,958.94 Fixed assets of 2005-06 10,433.04

22,391.98

22,391.98 Average net fixed assets = = 11,195.99

2

2,725.33 =

11,195.99

Net profit after tax 2,615.81 Interest charged on ADP, ADB & OECF loan 180.51 Translation Gain on foreign currency loan (70.99)

2,725.33

44

2.04 Debtors in months :(Based on 3 preceding months' sales) 4.01 Months 4.42 Months

Sales for Apr. 2007 3,384.22 4.01

Sales for May. 2007 3,546.65 Sales for Jun. 2007 3,403.76

10,334.63

Avg. of 3 preceding months sales = 3,444.88

S. Debtors (net of provision for bad & doubtful debts)Debtors in months' sales =

Average monthly sales

13,821.57 =

3,444.88

2.05 Average accounts payable against gas purchase(Based on 3 preceding months' payable) 3.97 Months 4.32 Months

Payable for Apr. 2007 2,893.16 3.97

Payable for May. 2007 3,059.59 Payable for Jun. 2007 2,944.41

8,897.16

Avg. of 3 preceding months' payable = 2,965.72

Total accounts payableAccounts payable in months' purchase =

Average monthly payable

11,784.08 =

2,965.72

Current assets 16,818.302.06 Current ratio = = = 1.19 : 1 1.11 : 1

Current liabilities 14,082.17 1.19

Cash assets 14,998.922.07 Liquidity ratio = = = 1.07 : 1 1.02 : 1

Current liabilities 14,082.171.07

Cash assets : Cash in hand 0.24 Cash at bank & in transit 1,177.11 Trade Debtors(Less Prov. for bad & doubtful debts) 13,821.57

14,998.92

45

Net profit before tax x 100 3,943.23 2.08 Return on capital employed = = = 20.94% 18.18%

Total capital employed 18,832.19

Total capital employed :Total capital employed 24,027.81 Less -Liability for pension fund 498.91 Liability for GPF 195.51 Non-cash security 4,501.20

5,195.62 Net total capital employed 18,832.19

Net profit before tax x 100 3,943.23 2.09 Return on sales = = = 10.12% 8.81%

Total sales revenue 38,957.1710.12

Total sales revenueGas sales revenue 38,407.72 Add : Other operational income 549.45

38,957.17

Net profit before tax 3,943.232.10 Net profit before tax per employee = =

Average no. of employees 2,575

= Tk.1.53 Million Tk.1.19 Million1.53

Total sales revenue 38,957.172.11 Sales per employee = = = Tk.15.13 Million Tk.13.50 Million

Average no. of employees 2,575 15.13

Total sales revenueGas sales revenue 38,407.72Add : Other operational income 549.45

38,957.17

46

3. Share capital :a)

b) Deposit for Share :Movement of Deposits for Share money received during the year against development projects are as under :

BBARGP Project TNG Project DCF Project TotalOpening balance 351,239,800 53,700,000 476,544,000 881,483,800 760,097,800 Add: Received during the year - - 16,946,000 16,946,000 121,386,000 Total 351,239,800 53,700,000 493,490,000 898,429,800 881,483,800 Less : Return of unutilized ADP to GoB - - 16,290,421 16,290,421 - Less : Transferred to Share Capital 351,239,800 53,700,000 476,543,700 881,483,500 - Closing balance - - 655,879 655,879 881,483,800

4. Capital reserves are as shown below :

Opening balance 745,909,726 3,175,912 5,608,228 754,693,866 754,693,866 Add: Addition during the year - - - - - Total 745,909,726 3,175,912 5,608,228 754,693,866 754,693,866 Less : Transfer during the year - - - - - Closing balance 745,909,726 3,175,912 5,608,228 754,693,866 754,693,866

5. Revenue reserves are as follows :

2006-07Description General Appropriation Total 2005-06

reserve accountOpening balance 62,648,827 4,800,698,283 4,863,347,110 3,552,616,597 Add: Increase* - 2,595,214,557 2,595,214,557 2,061,176,513 Less: Decrease ** - 882,554,000 882,554,000 750,446,000 Closing balance 62,648,827 6,513,358,840 6,576,007,667 4,863,347,110

*Increase represents Net profit for the year after tax plus Prior years' adjustments**Decrease represents the contribution to National Exchequer as Interim Dividend

6. Local unsecured ADP loans are :

Projects 2006-07 2005-06Bangabandhu Bridge approach road Pipeline Project 596,484,200 657,558,200 Belabo -Norshindi gas connection pipeline project 6,862,010 12,771,010 RMS for AES Meghnaghat 450 MW Power Station Project 90,241,500 101,536,500 Third Natural Gas Development project 871,861,542 1,015,358,541 Total 1,565,449,251 1,787,224,251

Details have been shown in Schedule - 24.

Movement of the outstanding local loans(ADP) during the year is as follows

Description 2006-07 2005-06Opening balance 1,787,224,251 2,006,288,751 Add : Received during the year - - Total 1,787,224,251 2,006,288,751 Less :Transferred to current part 221,775,000 219,064,500 Less : Return of unutilized loan to GOB - - Closing balance 1,565,449,251 1,787,224,251

The authorized share capital amounts to Tk. 3,500,000,000 divided into 7,000,000 ordinary shares of Tk.500 each. The issued, subscribed andpaid up share capital amounts to Tk.2,388,807,500 divided into 4,777,615 ordinary shares of Tk. 500 each up to 30-06-2007.

Description

Description

2005-06

NOTES TO THE FINANCIAL STATEMENTS

2006-07

2006-07

Hydrocarbon Dev. Fund

Other Capital Reserve Grants Total 2005-06

* The total amount has been utilized in different development project upto 30.06.2007.

*

47

7. Foreign unsecured loans inclusive of exchange rate fluctuation are as follows :

Loan Project 2006-07 2005-06ADB loan no. 714 BAN (SF) 50,818,843 62,229,353 ADB loan no. 868 BAN (SF) Brahamaputra Basin Project 299,258,173 328,217,827 ADB loan no. 1293 BAN (SF) 1,470,047,686 1,629,107,023 ADB loan no. 1943 Dhaka Clean Fuel Project 566,792,219 522,144,000.00 OECF loan no. BD, C - 18 635,339,182 712,115,158 Total 3,022,256,103 3,253,813,361


Movement of the outstanding foreign loans & ERF during the year is as follows

2006-07Principal ERF Total

Opening balance 2,480,058,534 773,754,827 3,253,813,361 2,792,914,646 Add: Additions during the year 44,748,219 (70,998,250) (26,250,031) 283,561,688 Add: Adjustments (100,000) 101,482,105 101,382,105 497,607,000 Total 2,524,706,753 804,238,681 3,328,945,434 3,574,083,334 Less: Transferred to current part 278,972,024 27,717,307 306,689,332 320,269,973 Closing balance 2,245,734,729 776,521,374 3,022,256,103 3,253,813,361

8. The movement of pension fund during the year is as follows :

Description 2006-07 2005-06Opening balance 462,112,762 469,099,730 Add: Company's contribution during the year 48,090,317 51,260,737 Add: Return on investment 56,286,868 22,897,016 Add: Adjustment - 35,350 Total 566,489,947 543,292,834 Less: Payment made during the year 67,583,399 81,180,072 Closing balance 498,906,548 462,112,762

9. The movement of gratuity during the year is as follows :

Description 2006-07 2005-06Opening balance 7,443,621 5,813,087 Add: Additions during the year 3,303,533 2,700,571 Total 10,747,154 8,513,658 Less: Payment made during the year 1,474,400 1,070,037 Closing balance 9,272,754 7,443,621

10. The movement of leave pay during the year is as follows :

Description 2006-07 2005-06Opening balance 120,300,919 107,219,422 Add: Additions during the year 19,598,294 19,033,163 Total 139,899,213 126,252,585 Less: Payment made during the year 7,682,104 5,951,666 Closing balance 132,217,109 120,300,919

11. The movement of general provident fund during the year is as follows :

Description 2006-07 2005-06Opening balance 184,942,813 171,040,979 Add: Contribution during the year 26,847,026 26,758,857 Add: Return on investment 2,676,139 533,245 Total 214,465,977 198,333,081 Less: Payment during the year 18,952,326 13,390,268 Closing balance 195,513,650 184,942,813

Second Natural Gas Development Project

2005-06

Third Natural Gas Development Project

Third Natural Gas Development Project

Description

48

12. Security deposits from customers are as follows :

a) Cash security deposit :Customers category 2006-07 2005-06Domestic 1,383,004,497 1,223,440,905 Commercial 379,424,264 311,169,222 Industrial 1,979,153,125 1,587,062,048 Captive Power 441,660,216 327,891,698 Feed gas for CNG 92,735,323 52,499,356 Seasonal 257,993 257,993 Power (Private) 106,591,570 59,859,244 Total 4,382,826,988 3,562,180,466


b) Non-cash security deposit :Description 2006-07 2005-06Pratirakhya Sanchya Patra from contractors 1,641,000 1,766,000 Pratirakhya Sanchya Patra from Ind.customers. 32,594,040 36,160,590 Bank Guarantee from Ind.customers 4,448,408,151 3,301,011,398 Lien FDR from industrial customers 18,561,043 15,678,743 Total 4,501,204,234 3,354,616,731 Total (a+b) 8,884,031,222 6,916,797,197


13. Fixed assets :

14. Capital work-in-progress is made up as follows :

2006-07 2005-06Third Natural Gas Development project - 35,879,841 Bangabandhu Bridge approach road gas pipeline project - 459,551,695 Dhaka Clean Fuel Project - 852,712,073 Greater Titas Franchise Area, Phase - 3 2,929,025 - Network Expansion / Reformation Project 26,901 - Total 2,955,926 1,348,143,608


15. Long-term bank deposits and investments are as follows :

PSP FDR ICB Unit Cert. TotalDepreciation fund - 250,000,000 - 250,000,000 100,000,000 Customers' Security - 3,150,658,500 - 3,150,658,500 2,400,558,500 Contractors' Security (BG / Pay Order) - 570,640 - 570,640 - General provident fund 100,500,000 39,028,200 2,759,394 142,287,594 126,759,394 Contributory provident fund - 16,000,000 - 16,000,000 14,000,000 Pension fund - 494,696,279 2,400,000 497,096,279 452,663,000 Total 100,500,000 3,950,953,619 5,159,394 4,056,613,013 3,093,980,894


Summary of the cost of fixed assets, their depreciation and net book value as at 30th June 2007 is given at annexure - 01(Page no 22 ).

2006-07

Projects Total cost

Description 2005-06

49

16. Long-term loans to employees are as follows :

Loans 2006-07 2005-06Land purchase and house building loan 1,003,013,603 913,741,603 Motor Cycle loan 264,504,163 256,991,381 Computer loan 18,369,657 16,318,537 Interest receivable from LP & HB loan 258,749,772 239,292,878 Interest receivable from Computer loan 917,139 2,676,987 Interest receivable from motor cycle loan 38,075,258 35,658,038 Total (a) 1,583,629,592 1,464,679,424 Less - Loans recovery : Motor cycle loans-Officer 43,756,203 35,770,551 Motor cycle loans-Staff 143,356,454 122,045,545 LP & HB loan-Officer 206,396,250 176,116,714 LP & HB loan-Staff 331,317,959 280,440,058 Computer Loan -Officer 15,842,185 14,274,064 Total (b) 740,669,051 628,646,932 Loans receivable(a-b) 842,960,541 836,032,492


The movement of loans to employees during the year is as follows

LP/HB loan Principal & Intt.

MC loan Principal & Intt.

Computer loan Principal & Intt. Total

Opening balance 696,477,709 134,833,322 4,721,460 836,032,492 828,796,687 Add : Additions during the year 125,442,458 13,956,157 1,090,203 140,488,818 137,523,837 Total Loan 821,920,168 148,789,479 5,811,663 976,521,310 966,320,523 Less : Realised during the year 97,871,001 33,322,715 2,367,053 133,560,769 130,288,032 Closing balance 724,049,166 115,466,764 3,444,610 842,960,541 836,032,492

17. Encashable securities deposited by contractors and industrial customers are as follows :

Description 2006-07 2005-06Pratirakhya Sanchya Patra from contractors 1,641,000 1,766,000 Pratirakhya Sanchya Patra from Ind.customers. 32,594,040 36,160,590 Bank Guarantee from Ind.customers 4,448,408,151 3,301,011,398 Lien FDR from industrial customers 18,561,043 15,678,743 Total 4,501,204,234 3,354,616,731


Note :

18. Inventories of stores and other materials are as stated below :

Description 2006-07 2005-06Stock of stores 1,322,130,082 682,840,234

Tk.18,47,100.00 has been issued by the concerned authority and received by the Company. Issuance of duplicate PSP's for Tk.70,000 stillremains under process with the concerned authority. So, it appears that actual stolen / missing PSP's amounts to Tk.18,66,850.00 . In thisconnection Case No. 51/99 has been filed with Tejgaon P.S. C.I.D. submitted Charge Sheet to C.M.M. Dhaka against Mr. ABM Shafiul Azam on08/03/2005. Accordingly a criminal case No. 38/05 has been filed at the Court of 4th Addll. Asstt. District Judge, Dhaka, presently case no. 96/2007in the court of Dhaka Divisional Sub Judge. The next date of hearing of the case is 29/11/2007 for recording the statement of wittnesses. On theother hand Money Suit No. 110/2005 has been filed against Mr. ABM Shafiul Azam & Mr. Mohammad Ali. Next hearing date of the case has beenfixed on 10/01/2008 for ex-parte hearing. After settlement of the case by the honourable court necessary steps will be taken accordingly. TheCompany has made a provision for Tk. 47,35,498.00 to reform principal and interest against stolen PSP as per approval given by the Board of

The above mentioned Security deposits include a sum of Tk. 37,83,950.00 consisting of Contractors' security of Tk. 1,75,000.00 and Customers'security of Tk. 36,08,950.00 both in the form of PSP which were found missing / stolen in 1999. Proper Book adjustment of the amounts would bemade thereof upon finalisation of investigation of the case filed with the law enforcing authority. It may be mentioned here that concerned twoemployees have been dismissed from the services of the Company after departmental investigation. On the other hand, it has been reported by theissuing authorities that, out of total Tk. 37,83,950.00 PSP's of Tk. 19,17,100.00 could not be encashed by the fraud(s). The Company requestedthe issuing authorities to stop payment of the uncashed ones and to issue duplicate PSP's for the same. Accordingly duplicate

Description

2006-07

2005-06

50

19. Advances, deposits and prepayments comprise of the followings :

Description Schedule No. 2006-07 2005-06Advances:TA/DA Advance 10 29,045 68,226 General Advance 10 12,452,362 14,789,378 Bonus Advance 10 228,665,527 195,808,993 Advance against OT & DA 10 1,559 19,143 Employee Income Tax advance payment 7 4,131,994 (2,675,461)

Total advances 245,280,487 208,010,278 Deposits:Deposited to PDB 07 26,400 26,400 Deposited to T & T Board 07 156,000 156,000 Deposit with BSMMU (PG Hospital, Dhaka) 07 1,000,000 1,000,000 Others Security Deposit (Road cutting security) 07 6,623,734 53,715,280

Total deposits 7,806,134 54,897,680 Prepayments:Insurance Premium 07 5,041,702 4,589,460 Prepayments- others 07 - 1,112,046

Total prepayments 5,041,702 5,701,506 Total 258,128,324 268,609,465

20. Trade debtors :

Type of customers 2006-07 2005-06Power (PDB) 3,849,073,342 2,982,137,813 Power (Private) 1,009,949,614 1,275,599,160 Fertilizer 1,029,067,157 831,400,167 Industrial 5,286,033,351 5,036,347,434 Captive Power 1,616,965,197 1,543,435,525 Feed Gas for CNG 127,586,904 92,550,277 Domestic 3,119,044,018 3,425,025,425 Commercial 381,001,856 381,065,773 Seasonal 47,219,372 47,231,036 Total 16,465,940,809 15,614,792,609 Less : Provision for bad and doubtful debts 2,644,366,554 2,327,031,033 Net trade accounts receivable 13,821,574,255 13,287,761,576


Aging of trade debtors are as follows :(Figures in Lakh Taka)

Power (PDB) 855 312 37,323 38,491 Power (Private) 163 - 9,938 10,101 Fertilizer 29 2 10,260 10,291 Industrial 19,629 5,139 28,092 52,860 Captive Power 874 110 15,186 16,170 Feed Gas for CNG 11 - 1,265 1,276 Domestic 12,429 1,916 16,846 31,190 Commercial 1,932 315 1,563 3,810 Seasonal 472 - - 472 Total trade debtors 36,394 7,793 120,472 164,659

Sector-wise trade debtors are as follows : In Lakh Taka Government 1,707 Government colonies 3,895 Semi-govt. customer (BCIC, PDB & other Corporations) 51,699 Private (Including Tk. 5,855.21 lakh from customers under injunction) 77,693 Disconnected (Including Tk. 15,353.02 lakh from coustmers under litigation) 29,665 Total 164,659

Total

It represents receivable against gas bills from all category of customers and is stated below together with aging analysis and provision for bad anddoubtful debts against each year.

Debtors category Upto 2004-05 2005-06 2006-07

51

21. Cash and bank balances & cash in transit are as follows :

Description Schedule No. 2006-07 2005-06Cash in hand 05 240,421 120,201 Cash at bank 05 (1,613,514,315) (1,673,278,775) Cash at bank(Bill collection Bank A/c) 04 2,790,071,522 1,952,147,339 Imprest fund 05 556,750 511,750 Total 1,177,354,378 279,500,514

22. Other current assets comprise the following amounts :

Description Schedule no. 2006-07 2005-06Interest receivable on investment of GPF 09 142,265,903 72,787,212 Receivable from income tax authority 09 32,733,286 32,733,286 Payroll suspense accounts 18 68,413,514 67,786,686 Receivable from ex-employees 10 282,947 423,724 Other debtors 10 4,956,649 8,429,437 Work-in-progress (Jobs for third parties) 06 (17,231,258) 31,763,644 Compensation receivable from Mohakhali Flyover authority 7,695,400 7,695,400 Total 239,116,442 221,619,388

23. Liabilities for gas purchases and transmission charges are as follows :

a ) Liability for gas purchases :

Outstanding payable thereof as compared to previous year is as follows

Description 2006-07 2005-06Opening balance 8,956,721,847 9,731,112,766 Add: payable for the year 27,034,393,944 23,957,180,014 Adjustments 217,610 (95,723,571) Total 35,991,333,400 33,592,569,209 Less: paid during the year 26,333,974,807 24,635,847,362 Closing balance 9,657,358,593 8,956,721,847


Company-wise break-up is as follows :Name of company 2006-07 2005-06Bangladesh Gas Fields Company Ltd. 4,401,080,188 5,751,511,331 Sylhet Gas Fields Ltd. 168,778,338 392,517,317 Jalalabad Gas Field (Occidental) & Tallu through BOGMC 4,862,691,287 2,429,117,663 Bangladesh Petroleum Exploration & Production Co. Ltd 224,808,779 383,575,537 Total 9,657,358,593 8,956,721,847

b) Liability for transmission charges :

Description 2006-07 2005-06Opening balance 800,844,407 989,283,208 Add: payable for the year 2,583,833,948 2,192,626,425 Total 3,384,678,355 3,181,909,633 Less: paid during the year 2,344,278,109 2,381,065,226 Closing balance 1,040,400,246 800,844,407


Company-wise break-up is as follows :Name of company 2006-07 2005-06Bakhrabad Gas Systems Ltd. 1,279,102 1,279,102 Gas Transmission Company Ltd. 1,039,121,144 799,565,305 Total 1,040,400,246 800,844,407 Total liabilities for gas pur. and trans. (a+b) 10,697,758,839 9,757,566,253

It represents the amount payable to the gas producing companies against their share of margin (uniform well head price @ Tk. 0.25/CM ) andGovt. Margin (55% of end users' price deducting 2% against losses on National Gas) on total gas purchase volume.

It represents outstanding gas transmission charges @ 0.32/CM payable to Gas Transmission Company Ltd. (GTCL) for gas transmitted to TitasSystem through its Gas Pipeline. Outstanding payable thereof as compared to previous year is as follows :

52

24. BAPEX margin and PDF are as shown below :

a) Movement of liability for BAPEX margin :Description 2006-07 2005-06Opening balance 177,007,197 368,890,375 Add: payable for the year 288,732,900 305,059,055 Total 465,740,098 673,949,430 Less: paid during the year 353,902,496 496,942,235 Closing balance 111,837,602 177,007,196

b) Movement of liability for Price Deficit Fund(PDF):Description 2006-07 2005-06Opening balance 1,255,951,499 651,914,496 Add: payable for the year 3,275,746,664 3,446,509,451 Adjustments - 34,682 Total 4,531,698,163 4,098,458,629 Less: paid during the year 3,557,206,861 2,842,507,130 Closing balance 974,491,303 1,255,951,499 Total liabilities for BAPEX & PDF (a+b) 1,086,328,904 1,432,958,695


25. Group current accounts are as follows (Debit) / Credit :

Name of company 2006-07 2005-06Bakhrabad Gas Systems Ltd. (9,217,946) (6,478,665) Bangladesh Gas Fields Company Ltd. (23,214) 11,182 Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) 201,735,531 246,107,395 Bangladesh Petroleum Exploration & Production Co. Ltd (1,320,482) 47,396 Barapukuria Coal Mines Current a/c (149,994,000) - Gas Transmission Company Ltd. (119,281,466) (118,282,729) Jalalabad Gas T & D Systems Ltd. (8,105,392) (4,031,385) Madhayapara Hard Rock project - current a/c (405,181) (447,199) Pashchimanchol Gas Co. Ltd. (12,178,780) (10,873,871) Rupantarita Prakritik Gas Co. Ltd. 181,531 248,777 Sylhet Gas Fields Ltd. 176,300 146,900 Inter-co. payroll a/cs 92,234 85,539 Total (98,340,867) 106,533,339


26.Creditors and accruals are stated as below :

Description Schedule No. 2006-07 2005-06*Income tax payable 990,856,628 706,585,436 Accruals and provisions 20 318,313,675 252,468,053 Creditors 16 80,617,650 67,020,685 Temporary accounts for A/P creditors 17 (10,954,158) (95,595,388) Payroll suspense accounts 18 5,005,863 6,948,426 Interest on ADP, ADB & OECF Loans 25 - 77,948,661 Total 1,383,839,658 1,015,375,872

* Income tax payable :Schedule No. 2006-07 2005-06

Corporate tax advance payments 07 2,997,329,674 2,997,329,674 Income tax deducted at source 07 5,900,427,166 4,803,388,867 Total (a) 8,897,756,840 7,800,718,541

Tax equalization provision 23 8,432,244,304 7,440,862,502 Income tax provision for 2006-07 as per Income Statement 1,367,993,729 978,066,040 Prov. for surcharge payable on income tax 23 88,375,435 88,375,435 Total (b) 9,888,613,468 8,507,303,977

Income tax payable( b - a ) 990,856,628 706,585,436

53

27. Movement of Workers' Profit Participation Fund is shown below :

Description 2006-07 2005-06Opening balance 165,397,061 126,382,888 Add : Payable for the year 197,161,732 152,105,222 Add : Deduction from final bill 1,800 - Add : Prior years' adjustments 1,664,470 (228,951) Total 364,225,063 278,259,159 Less : Paid during the year 141,909,266 112,862,098 Closing balance 222,315,797 165,397,061

28. Current portion of long-term loans is as follows :

Description 2006-07 2005-06Principal payable on local (ADP) loan 355,810,764 298,333,764 Principal payable on foreign (ADB & OECF) loan 340,605,052 173,043,697 ERF payable on foreign loan 93,853,675 376,475,803 Total 790,269,491 847,853,264


Movement of current portion of long-term loans is shown below

Local (Principal)

Foreign (Principal) Foreign (ERF) Total

Opening balance 298,333,764 173,043,697 376,475,803 847,853,264 796,788,967 Add : Addition for the year 221,775,000 278,972,024 27,717,307 528,464,332 539,334,473 Adjustments - 61,633,028 (163,115,132) - - Total payable 520,108,764 513,648,749 241,077,978 1,376,317,595 1,336,123,440 Less: Paid during the year 164,298,000 173,043,697 147,224,303 484,566,000 488,270,177 Closing balance 355,810,764 340,605,052 93,853,675 790,269,491 847,853,264

Description2006-07

2005-06

54

29. Gas sales to end customers are as follows :

Volume(CM) Taka Volume(CM) TakaPower (PDB) 2,946,389,693 7,690,069,287 2,929,794,922 7,646,755,089 Power (Private) 1,902,474,836 5,190,735,135 1,824,903,196 4,878,780,709 Fertilizer 1,431,789,539 3,239,370,586 1,379,187,091 3,089,424,809 Industrial 1,814,022,279 9,542,019,629 1,509,665,987 7,824,724,645 Captive Power 1,504,110,640 5,494,380,472 1,150,427,991 4,242,922,015 Feed Gas for CNG 253,928,270 625,615,737 154,498,374 381,080,277 Domestic 1,250,789,468 5,758,729,048 1,122,076,324 5,241,680,160 Commercial 100,596,413 866,797,344 93,962,687 774,686,375 Total 11,204,101,138 38,407,717,238 10,164,516,572 34,080,054,079


30. Other operational income is made up of the following amounts :

Type of income 2006-07 2005-06Meter rent 107,322,722 95,315,657 Connection & reconnection charges 63,450,394 59,068,484 Late payment penalties 378,681,264 305,287,440 Total 549,454,380 459,671,580


31. Gas purchase :

Gas Volume Total cost Well-head cost

Operational gas use

Operationalgas use Net Throughput Cost of

PurchaseNet gas

purchase Net cost

(CM) (Taka) (CM) (Taka) (CM) (Taka) (CM) (Taka)1 2 3 4 5 6(2-4) 7 (3-5) 8 9

Power (PDB) 3,113,081,356 5,626,476,987 3,944,903 7,122,550 3,109,136,453 5,619,354,438 3,133,950,479 5,530,568,661 Power (Private) 2,008,911,755 3,771,264,953 969,873 1,753,021 2,007,941,882 3,769,511,932 1,951,816,768 3,515,815,408 Fertilizer 1,512,989,709 2,373,388,688 512,815 804,331 1,512,476,894 2,372,584,357 1,475,092,197 2,268,898,967 Industrial 1,915,418,475 6,407,298,695 127,993 439,118 1,915,290,482 6,406,859,577 1,614,203,852 5,283,312,098 Captive Power 1,587,849,335 3,831,692,339 - - 1,587,849,335 3,831,692,339 1,229,911,851 2,928,749,317 Feed Gas for CNG 267,828,599 465,130,609 - - 267,828,599 465,130,609 165,054,233 279,338,116 Domestic 1,321,064,623 4,001,850,649 82,898 253,401 1,320,981,725 4,001,597,248 1,200,028,225 3,534,135,373 Commercial 106,237,382 557,291,023 6,527 34,566 106,230,855 557,256,457 100,511,029 511,666,590 Total 11,833,381,234 27,034,393,944 5,645,009 10,406,988 11,827,736,225 27,023,986,956 10,870,568,634 23,852,484,529

31/a. Unaccounted gas :

Quantity (CM)a) Gas purchase volume 11,833,381,234 b) Less : Own use of gas 5,645,009 c) Net Throughput (a-b) 11,827,736,225

Gas utilizedd) Gas sales volume 11,204,101,138 e) Condensate equivalent 1,977,646 f) Total gas utilized (d+e) 11,206,078,784 g) Unaccounted Gas (c-f) 621,657,441 h) Unaccounted Gas % (g / c) 5.26%

2006-07 2005-06

Gas purchase volume and well-head price during the year were 11,833.38 MMCM and Tk. 27,034,393,944 respectively asshown below :

2006-07 2005-06

Type of user

Gas purchase category

The unaccounted gas (UFG) during the year was 621.66 MMCM or 5.26% of total gas purchase which was caused due to less estimation of gas consumption by unmetereddomestic consumers, pipeline leakages, line pack, fraudulent use, metering error and loss sustained at the time of gas connection, disconnection, re-connection and killing ofrisers etc. The unaccounted gas is arrived at in the following manner :

55

32. BAPEX margin :

2005-06NG sales (CM) Margin rate Amount (Taka) Amount (Taka)

Power 1,812,537,013 0.048 87,001,777 101,841,326 Power (Private) 1,168,497,061 0.048 56,087,859 63,385,297 Fertilizer 886,156,888 0.048 42,535,531 47,918,270 Industrial 1,118,118,727 0.048 53,669,699 52,367,051 Captive Power 925,996,102 0.048 44,447,813 39,912,235 Feed Gas for CNG 154,629,909 0.048 7,422,236 5,342,879 Domestic 774,291,789 0.048 37,166,006 38,987,723 Commercial 62,226,456 0.048 2,986,870 3,267,770 Total 6,902,453,945 - 331,317,789 353,022,551 Less : a) Gas sales to Malwali Masjid 210,708 0.048 10,114 9,767 b) Gas sales to Jalalabad Gas T & D Systems Ltd. 817,589 0.048 39,244 35,459 c) Fertiliser 886,156,888 0.048 42,535,531 47,918,270 Total 6,015,268,760 288,732,900 305,059,055

33. Transmission charges :

Quantity (CM) Taka Quantity (CM) TakaGas Transmission Company Ltd. 8,074,481,087 2,583,833,948 6,851,957,578 2,192,626,425

34. Price Deficit Fund (PDF):

Gas purchase (CM)

Gas purchase (CM) x 98% PDF rate PDF amount

(Tk.)Quantity

(CM)Amount (Taka)

2 3 4 5 (3 x 4) 6 7{4x(6x98%)} 8(5-7)Power 1,918,545,968 1,880,175,049 0.317 596,015,490 2,449,839 761,067 595,254,423 Power(Private) 1,125,864,492 1,103,347,202 0.317 349,761,063 597,456 185,606 349,575,457 Power(Captive rate) 97,920,551 95,962,140 0.456 43,758,736 - - 43,758,736 Power(Industrial rate) 11,727,185 11,492,641 0.766 8,803,363 - - 8,803,363 Fertilizer 937,468,229 918,718,864 0.268 246,216,656 318,121 83,551 246,133,104 Indusrtrial 1,181,834,346 1,158,197,659 0.766 887,179,407 74,782 56,137 887,123,270 Captive Power 978,523,232 958,952,767 0.456 437,282,462 - - 437,282,462 Feed gas for CNG 163,271,765 160,006,330 0.324 51,842,051 - - 51,842,051 Domestic 818,576,698 802,205,164 0.709 568,763,461 48,583 33,756 568,729,705 Commercial 65,779,646 64,464,053 1.336 86,123,975 3,825 5,008 86,118,967

TOTAL 7,299,512,112 7,153,521,870 - 3,275,746,664 3,492,606 1,125,126 3,274,621,538

35. Administrative and other costs including depreciation are as shown below :

Type of costs Schedule No. 2006-07 2005-06

Direct costs:Personnel costs 31 683,134,793 577,350,601 Professional services 32 15,446,510 12,674,634 Promotional costs 33 8,269,330 7,173,229 Power costs 34 23,081,938 20,180,324 Communication costs 35 5,230,576 4,669,430 Transport costs 36 65,323,359 56,068,182 Occupancy costs 37 40,869,481 31,035,058 Administrative costs 40 29,796,063 27,302,506 Miscellaneous costs 41 22,741,117 12,463,793 Transmission & Distribution Costs 29 40,524,927 62,924,418 Financial charges 39 6,382,116 1,053,436 Bad & doubtful debts 39 317,335,521 315,713,039 Sub total (Total direct costs) 1,258,135,731 1,128,608,650 Add: Depreciation of fixed assets 697,886,566 619,851,516 Grand total 1,956,022,297 1,748,460,167

It represents the contribution to Bangladesh Petroleum Exploration & Production Company Ltd. (BAPEX) @ 0.048/CM on National gas sales excepting sales to MalwaliMasjid, Kakrail, Dhaka, Jalalabad Gas Transmission & Distribution Systems Ltd. and fertilizer factories . Calculation of BAPEX margin is given below :

2006-07

It represents gas transmission charges payable to Gas Transmission Co. Ltd.(GTCL) @ Tk. 0.32/CM for gas transmitted through GTCL gas pipeline to TGTDCL system.Transmission charge of GTCL for the year is as follows :

2006-07 2005-06

Customers' type

Name of company

1

Price Deficit Fund (PDF) has been created to cover the possible deficit in payment of gas bills in foreign exchange against cost of gas purchased from International OilCompanies (IOC). Calculation of PDF on National Gas purchase is given below :

Customers' TypeOperational use Net PDF

amount

56

36. Petrobangla service charges :It represents Petrobangla service charge for the year Tk.57,023,000.

37. Other income (Non-operational) comprises the following:

Type of income 2006-07 2005-06Profit on sale of stores 45,872,098 112,735,935 Profit on disposal of fixed assets 597,766 2,044,581 Sale of condensate 42,483,565 28,611,812 House rent income & recoveries 240,000 240,000 Office rent income & recoveries 1,010,100 926,850 Other penalties & fines received 33,502,936 39,961,931 Income from consultancy services 1,169,499 106,576 Transport income 259,548 394,050 Miscellaneous income 103,228,176 89,271,343 Sale of bill books & applications form 175,470 200,199 Sale of tender document 1,903,653 1,466,000 Demurrage income - 131,251 Other rental income 59,789 147,707 Testing charges to suppliers 4,088,394 3,045,236 Enlistment & renewal fees 580,500 1,191,100 Other Liquidated damage 5,939,226 630,568 Gas connection & commission fees 3,951,809 2,353,018 Sale of scrap 27,668 - Total 245,090,197 283,458,157


38. The interest cost on loans is made up as follows :

Type of loan 2006-07 2005-06Foreign loans (ADB & OECF) 100,368,000 111,762,000 Local loans (ADP) 80,140,000 89,055,000 Total 180,508,000 200,817,000


39. The interest income is made up as follows :

Type of income 2006-07 2005-06Interest on L.P & HB loan 28,572,997 25,832,365 Interest on Motor Cycle loan 5,416,157 7,130,919 Interest on Copmuter loan 250,203 291,645 Interest on bank deposits (FDR) 208,843,705 62,011,786 Interest on bank deposits (STD) 59,780,137 55,530,199 Total 302,863,199 150,796,914


40. WPPF :A statutory transfer to the Workers' Profit Participation fund is made on the basis of 5% of the net profits before corporate taxation.

41. Prior years' adjustment is made up as follows :

Description 2006-07 2005-06Gas sales (decreased) / Increased 2,371,229 (198,112) Expenditure decreased / (increased) 30,423,581 (2,727,622) Income increased / (decreased) 2,159,066 (1,882,227) Income tax (increased) / decreased (13,315,762) 1,717,129 WPPF (increased) / decreased (1,664,470) 228,951 Total 19,973,643 (2,861,882)

42. Interim Dividend :

A sum of Tk. 882,554,000 was paid during the year as Interim Dividend as per instruction of Petrobangla.

57

Summaries of the cost of fixed assets, their depreciation and net book value as at 30 Jun. 2007 are as follows :

DepreciationAccumulated dep.

as on 01-07-06Adjustments

during the yearCharged

during the yearAccumulated dep.as on 30-06-2007

1 2 3 4 5 6 7 8 (5+6+7) 9 10 11 12 (9+10+11) 13 (8-12)1 Land : - 1a Freehold land 01-001 Nil 458,961,718.63 - 458,961,718.63 - - - 458,961,718.63 2 Buildings : - 2a Freehold concrete/brick structures 01-010 2.5% 510,074,830.05 2,815,048.27 512,889,878.32 169,262,359.14 12,805,486.15 182,067,845.29 330,822,033.03 2b Sheds and temporary structures 01-012 10% 12,337,845.16 2,081,627.87 14,419,473.03 5,268,582.91 896,675.30 6,165,258.21 8,254,214.82 2c Walls and storeyards 01-014 5% 139,062,868.70 5,652,675.23 144,715,543.93 57,300,689.34 6,555,011.66 63,855,701.00 80,859,842.93 2d Other constructions 01-019 2.5% 64,800,675.81 1,457,147.37 66,257,823.18 14,287,758.47 1,647,356.53 15,935,115.00 50,322,708.18

Total 726,276,219.72 - 12,006,498.74 738,282,718.46 246,119,389.86 - 21,904,529.64 268,023,919.50 470,258,798.96 3 Furniture & fixtures :3a Furniture & fixtures 01-020 10% 26,130,206.19 (10,000.00) 2,825,672.27 28,945,878.46 15,696,044.40 (1,000.00) 1,805,860.98 17,500,905.38 11,444,973.08 3b Domestic appliances 01-022 15% 17,171,374.43 (22,000.00) 1,455,187.50 18,604,561.93 14,002,880.32 (4,950.00) 862,211.80 14,860,142.12 3,744,419.81

Total 43,301,580.62 (32,000.00) 4,280,859.77 47,550,440.39 29,698,924.72 (5,950.00) 2,668,072.78 32,361,047.50 15,189,392.89 4 Office equipments :4a Office equipments 01-030 15% 12,243,539.73 - 62,000.00 12,305,539.73 11,758,409.36 145,750.00 11,904,159.36 401,380.37 4b Telecoms and computer equipments 01-032 15% 386,248,891.83 (14,999.00) 3,746,324.20 389,980,217.03 225,043,639.65 (10,687.50) 46,889,785.20 271,922,737.35 118,057,479.68

Total 398,492,431.56 (14,999.00) 3,808,324.20 402,285,756.76 236,802,049.01 (10,687.50) 47,035,535.20 283,826,896.71 118,458,860.05 5 Other equipments :5a Radiography and G & G equipments 01-040 30% 3,404,460.95 - - 3,404,460.95 3,404,415.95 3,404,415.95 45.00 5b Workshop equipments 01-042 15% 13,369,360.74 - 13,369,360.74 13,369,219.74 13,369,219.74 141.00 5c Electrical installations 01-044 15% 25,347,791.34 1,890,730.00 27,238,521.34 17,810,139.41 2,148,508.72 19,958,648.13 7,279,873.21 5d Construction equipments 01-046 20% 365,642.53 - 365,642.53 365,619.53 365,619.53 23.00 5e Other equipment 01-049 15% 29,746,255.00 171,240.00 29,917,495.00 24,173,210.80 2,331,108.00 26,504,318.80 3,413,176.20

Total 72,233,510.56 - 2,061,970.00 74,295,480.56 59,122,605.43 - 4,479,616.72 63,602,222.15 10,693,258.41 6 Transmission & distribution lines :6a Transmission lines 01-070 3.33% 5,468,010,755.35 (31,653,982.13) 422,499,014.57 5,858,855,787.79 1,527,757,813.37 (2,108,155.00) 181,030,883.21 1,706,680,541.58 4,152,175,246.21 6b Distribution lines 01-073 5% 5,542,434,083.19 - 1,309,127,506.60 6,851,561,589.79 2,251,503,629.04 213,367,109.65 2,464,870,738.69 4,386,690,851.10 6c Transmission & distribution plant 01-075 5% 2,697,774,600.76 21,613,689.42 2,719,388,290.18 920,022,127.67 121,859,130.58 1,041,881,258.25 1,677,507,031.93 6d Consumer metering 01-079 10% 922,497,605.25 121,641,496.37 1,044,139,101.62 391,732,934.72 92,249,762.27 483,982,696.99 560,156,404.63

Total 14,630,717,044.55 (31,653,982.13) 1,874,881,706.96 16,473,944,769.38 5,091,016,504.80 (2,108,155.00) 608,506,885.71 5,697,415,235.51 10,776,529,533.87 7 Water services :7a Tubewells and ponds 01-100 10% 15,553,190.31 204,693.00 15,757,883.31 11,784,412.50 1,062,566.41 12,846,978.91 2,910,904.40 7b Water pumps 01-103 20% 535,663.15 - 535,663.15 491,002.28 9,877.00 500,879.28 34,783.87 7c Water pipeline and tanks 01-105 10% 3,927,438.93 3,927,438.93 2,675,615.63 303,857.19 2,979,472.82 947,966.11

Total 20,016,292.39 - 204,693.00 20,220,985.39 14,951,030.41 - 1,376,300.60 16,327,331.01 3,893,654.38 8 Vehicles :8a Light vehicles 01-110 20% 192,537,136.67 (2,347,492.88) 26,101,600.00 216,291,243.79 172,956,351.07 (2,347,488.88) 11,728,829.00 182,337,691.19 33,953,552.60 8b Heavy vehicles 01-115 20% 15,406,409.35 - 15,406,409.35 15,406,390.35 15,406,390.35 19.00

Total 207,943,546.02 (2,347,492.88) 26,101,600.00 231,697,653.14 188,362,741.42 (2,347,488.88) 11,728,829.00 197,744,081.54 33,953,571.60 9 Other assets :9a Loose tools 01-152 25% 413,992.45 - 413,992.45 413,991.45 - - 413,991.45 1.00 9b Marine crafts 01-157 20% - - - - - - 9c Unclassified assets 01-159 10% 1,525,866.05 - 1,525,866.05 1,331,683.55 186,796.00 1,518,479.55 7,386.50

Total 1,939,858.50 - - 1,939,858.50 1,745,675.00 - 186,796.00 1,932,471.00 7,387.50

Grand-Total 16,559,882,202.55 (34,048,474.01) 1,923,345,652.67 18,449,179,381.21 5,867,818,920.65 (4,472,281.38) 697,886,565.65 6,561,233,204.92 11,887,946,176.29

TITAS GAS TRANSMISSION & DISTRIBUTION COMPANY LTD.105, Kazi Nazrul Islam Avenue, Dhaka - 1215.

(A Company of Petrobangla)

Adjustments during the year

Additions during the year Value as on 30-06-2007

SCHEDULE OF FIXED ASSETS AS ON 30-06-2007.

Name of assets Account Code No.

Rate of depreciation

Value as on 01-07-06

Net book value as on 30-06-2007

SL. No.

58

2006-07 2005-06FIXED ASSETS AT COST : SCHEDULE NO.-01

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT)01 001 Freehold land 458,961,718.63 458,961,718.63 01 010 Freehold concrete/brick structures 512,889,878.32 510,074,830.05 01 012 Sheds and temporary structures 14,419,473.03 12,337,845.16 01 014 Walls and storeyards 144,715,543.93 139,062,868.70 01 019 Other constructions 66,257,823.18 64,800,675.81 01 020 Furniture and fixtures 28,945,878.46 26,130,206.19 01 022 Domestic appliances 18,604,561.93 17,171,374.43 01 030 Office equipments 12,305,539.73 12,243,539.73 01 032 Telecoms and computer equipments 389,980,217.03 386,248,891.83 01 040 Radiography and G & G equipments 3,404,460.95 3,404,460.95 01 042 Workshop equipments 13,369,360.74 13,369,360.74 01 044 Electrical installations 27,238,521.34 25,347,791.34 01 046 Construction equipments 365,642.53 365,642.53 01 049 Other equipment 29,917,495.00 29,746,255.00 01 070 Transmission lines 5,858,855,787.79 5,468,010,755.35 01 073 Distribution lines 6,851,561,589.79 5,542,434,083.19 01 075 Transmission and distribution plants 2,719,388,290.18 2,697,774,600.76 01 079 Consumer metering 1,044,139,101.62 922,497,605.25 01 100 Tubewells and ponds 15,757,883.31 15,553,190.31 01 103 Water pumps 535,663.15 535,663.15 01 105 Water pipelines and tanks 3,927,438.93 3,927,438.93 01 110 Light vehicles 216,291,243.79 192,537,136.67 01 115 Heavy vehicles 15,406,409.35 15,406,409.35 01 152 Loose tools 413,992.45 413,992.45 01 159 Unclassified assets 1,525,866.05 1,525,866.05

Total 18,449,179,381.21 16,559,882,202.55

ACCUMULATED DEPRECIATION OF FIXED ASSETS: SCHEDULE NO.-02

ACCOUNT CODE DESCRIPTION CREDIT/ (DEBIT) CREDIT/ (DEBIT)02 010 Freehold concrete/brick structures 182,067,845.29 169,262,359.14 02 012 Sheds and temporary structures 6,165,258.21 5,268,582.91 02 014 Walls and storeyards 63,855,701.00 57,300,689.34 02 019 Other constructions 15,935,115.00 14,287,758.47 02 020 Furniture and fixtures 17,500,905.38 15,696,044.40 02 022 Domestic appliances 14,860,142.12 14,002,880.32 02 030 Office equipments 11,904,159.36 11,758,409.36 02 032 Telecoms and computer equipments 271,922,737.35 225,043,639.65 02 040 Radiography and G & G equipments 3,404,415.95 3,404,415.95 02 042 Workshop equipments 13,369,219.74 13,369,219.74 02 044 Electrical installations 19,958,648.13 17,810,139.41 02 046 Construction equipments 365,619.53 365,619.53 02 049 Other equipment 26,504,318.80 24,173,210.80 02 070 Transmission lines 1,706,680,541.58 1,527,757,813.37 02 073 Distribution lines 2,464,870,738.69 2,251,503,629.04 02 075 Transmission and distribution plant 1,041,881,258.25 920,022,127.67 02 079 Consumer metering 483,982,696.99 391,732,934.72 02 100 Tubewells and ponds 12,846,978.91 11,784,412.50 02 103 Water pumps 500,879.28 491,002.28 02 105 Water pipelines and tanks 2,979,472.82 2,675,615.63

59

2006-07 2005-0602 110 Light vehicles 182,337,691.19 172,956,351.07 02 115 Heavy vehicles 15,406,390.35 15,406,390.35 02 152 Loose tools 413,991.45 413,991.45 02 159 Unclassified assets 1,518,479.55 1,331,683.55

Total 6,561,233,204.92 5,867,818,920.65

CAPITAL WORK-IN-PROGRESS: SCHEDULE NO.-03

ACCOUNT CODE DESCRIPTION PROJECT DEBIT/ (CREDIT) DEBIT/ (CREDIT)05 703(305) Rights of Way Third Natural Gas Development Project - 26,111,071.00 05 703(319) Rights of Way Dhaka Clean Fuel Project - 50,691,775.25 05 705(319) Environmental Expenses Dhaka Clean Fuel Project - 179,582.10 05 710(301) Civil construction ( permanent) Greater Titas Franchise Area (Phase-3) 2,929,024.70 - 05 730(319) Construction materials Dhaka Clean Fuel Project - 3,500.00 05 751(305) Pipeline Third Natural Gas Development Project - 5,661,063.33 05 751(312) Pipeline Bangabandhu Bridge App. road Gas P.Line - 461,811,244.92 05 751(319) Pipeline Dhaka Clean Fuel Project - 795,734,315.23 05 751(321) Pipeline Network Expansion / Reformation Project 26,901.00 - 05 757(319) Customers' CMS & DRS Dhaka Clean Fuel Project - 972,450.00 05 759(319) Erection, Installation & Commissioning Dhaka Clean Fuel Project - 4,669,784.95 05 766(319) Office supplies Dhaka Clean Fuel Project - 90,900.00 05 773(319) Training- Local Currency Dhaka Clean Fuel Project - 841,018.00 05 775(312) Other costs Bangabandhu Bridge App. road Gas P.Line - 99,600.00 05 775(319) Other costs Dhaka Clean Fuel Project - 11,901.00 05 911(319) Overhead During Construction Dhaka Clean Fuel Project - 400,882.00 05 980(305) Misc. income during construction Third Natural Gas Development Project - 4,107,706.60 05 980(312) Misc. income during construction Bangabandhu Bridge App. road Gas P.Line - (2,359,150.00) 05 980(319) Misc. income during construction Dhaka Clean Fuel Project - (884,035.90)

2,955,925.70 1,348,143,608.48 GAS BILL COLLECTION BANK ACCOUNTS: SCHEDULE NO.-04

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 10 001 Janata Bank, BIDC Br. (Outstation collection a/c, STD-36000389) 48,616,408.62 27,246,160.06 10 003 Janata Bank- Brahmanbaria (STD-15) 3,195,743.75 2,508,710.74 10 004 Janata Bank- Norshingdi (CD-2693) 4,728,616.62 7,384,236.27 10 005 Janata Bank- Bhairab Bazar (STD-06) 8,455,857.73 5,044,381.05 10 006 Janata Bank- Narayanganj (STD-16) 147,681,063.56 106,486,362.88 10 007 Janata Bank- Ashuganj (STD-05) - 2,597,804.89 10 008 Janata Bank- Savar (STD-03) 19,902,595.46 7,594,437.62 10 009 Janata Bank- Tongi (STD-10) 14,298,085.00 14,539,878.00 10 010 Janata Bank- Tangail (STD-52) 4,895,718.43 3,907,968.51 10 011 Janata Bank- Zinjira (STD-02) 15,091,899.02 8,548,696.46 10 014 Janata Bank- Charpara, Mymenshingh (STD-12) - 3,182,417.80 10 015 Janata Bank- Kishoreganj (STD-45) 4,322,105.16 2,560,902.90 10 016 Janata Bank- Sherpur (STD-35) 1,701,174.56 1,574,685.13 10 023 Janata Bank- Munshiganj (STD-21) 7,657,279.23 7,424,879.94 10 024 Janata Bank- C.K.Ghosh road, Mymenshingh (STD-18) - 2,678,252.00 10 025 Janata Bank- Ladies' Br.-Mymenshingh (STD-23) - 2,228,544.00 10 026 Janata Bank- ReadyCash(STD-315) - 145,497.00 10 027 Southeast - Aganagar(Std ..13100000039) 3,656,388.00 -

10 029 Agrani Bank- Karatia (STD-12) 53,410.00 - 10 032 IFIC Bank- Mirpur(STD- 2736000186) 12,041,478.00 -

60

2006-07 2005-0610 033 IFIC Bank- Gulshan (STD-023001449) 268,826.00 - 10 034 IFIC Bank- Lalmatia (STD- 2536000493) 407,561.00 - 10 035 IFIC Bank- Shantinagar (STD- 36000462) 178,306.00 - 10 036 IFIC Bank- Muktarpur (STD- 1536000124) 15,345,662.49 - 10 037 National Bank - Norsindi (36000603) 5,389,077.98 - 10 038 Dhaka Bank- Fantacy Kingdom (STD-213150194) 16,052,769.08 - 10 039 Rupali Bank- Hatkhola (STD-03/2007) 39,307,408.19 - 10 040 EXIM Bank, Mawna Chowrasta, Valuka(STD-2013100000155) 11,614,346.20 - 10 041 The City Bank -Imamganj (31001168) 6,500.00 - 10 042 Al Arafa Bank -Madhabdi 36000485 5,859,919.80 - 10 043 Dhaka Bank- Board Bazar(STD- 21915024) 39,586,028.79 - 10 045 NCCBL- Madhobdi (STD- 04000321) 616,375.62 - 10 046 Krishi Bank, Monohardi (STD-247) 621,905.57 - 10 047 Dutch Bangla Bank- Gazipur (STD- 138120176) 38,034,813.65 - 10 048 Social Investment Bank- Fatulla(STD- 136-224) 11,126,397.83 - 10 049 City Bank- Madhobdi (STD-31001144) 1,045,358.73 -

10 050 Sonali Bank- (Outstation collection a/c, STD-160636000142) 2,300.35 1,465,543.15 10 051 Sonali Bank- (Ind. gas bill collection a/c, STD-160636000084) 18,842.40 426,916.51 10 052 Mutual Trust Bank- Mugrapara ,Sonargaon (STD- 0320000097) 16,359,494.34 - 10 053 Sonali Bank-Manikganj (STD-11) 1,529,114.02 5,028,404.74 10 054 Sonali Bank-Dhamrai (STD-01) - 1,680,232.81 10 055 Sonali Bank- Mirjapur (STD-24) 8,888,929.31 8,321,905.29 10 056 Sonali Bank- Shibaloy, Manikganj (STD-13) 2,674,448.17 1,435,652.53 10 057 Sonali Bank- Jamalpur (STD-12) 645,104.59 611,891.33 10 059 Sonali Bank- Dilkusha (Ind.) (STD-84) 18,842.40 4,357,662.79 10 060 Sonali Bank- Saydabad (Ind.) (STD-01) 51,444,954.70 50,945,238.69 10 061 Sonali Bank- Lalmatia (Ind.) (STD-368) 3,947,416.43 4,440,607.94 10 062 Sonali Bank- Begum Rokeya Sarani (Ind.) (STD-02) 9,904,960.40 2,351,324.95 10 063 Sonali Bank- Registration Complex (Ind.)(STD-01) 4,040,576.46 14,337,838.61 10 065 Sonali Bank- Jamalpur Ladies' Br.(STD-11) 1,706,521.31 1,912,102.02 10 066 Sonali Bank- Ghoradia, Norshingdi (STD-01) 2,850,166.45 1,494,685.31

10 069 Bangladesh Commerce Bank, Tanbazar (STD 0320000325) 12,625,390.06 - 10 070 Rupali Bank - Bhairab (STD-1910) 996,074.18 -

10 071 Agrani Bank- Sath Masjid (CD-33006861) 482,305.00 456,714.00 10 072 Agrani Bank- Dhanmondi (CD-109130) 15,587.00 44,490.00 10 073 Dhaka Bank- Konabri (STD-22015061) 2,037,566.28 - 10 074 Dhaka Bank- Madhobdi (STD-2631501236) 6,385,995.27 - 10 100 Agrani Bank- Gajipur (STD-07) 5,794,468.76 2,316,768.51 10 101 Agrani Bank- Town Br.-Savar (STD-02) 3,636,614.96 10,346,642.22 10 102 Pubali Bank- Bhairab Bazar (STD-02) 1,150,640.15 778,262.68 10 103 Agrani Bank- Jamuna Fertilizer Factory(STD-02) 221,825.65 216,616.86 10 105 Oriental Bank Ltd.- Norshingdi(STD-36000425) - 4,876,744.11 10 151 Bangladesh Krishi Bank- Local Office (Com.) (STD-24) - 10,545,510.63 10 153 Bangladesh Krishi Bank- Darirampur (STD-02) 908,660.28 883,499.13 10 160 IFIC Bank- Ghorashal (STD-08) 44,472,514.89 11,842,643.53 10 161 IFIC Bank -Madhobdi, Narshindi (STD-001836000014) 5,095,137.54 5,697,827.08 10 162 IFIC Bank- Konabari Br. (STD-05) 54,864,493.36 35,088,966.41 10 163 Prime Bank -Uttara Barnch (STD-31000119) 2,781,830.65 2,092,005.08 10 164 IFIC Bank ,Mymenshingh (STD-0265) 3,637,226.88 6,215,546.76 10 165 Bangladesh Krishi Bank-Sonargoan (STD-025) 2,847,244.46 5,152,217.24 10 166 Prime Bank, Modhobdi - Norshingdi(STD-31000584) 3,632,331.85 16,570,711.97 10 167 Basic Bank Ltd. - Norshingdi(STD-04000212) 7,563,059.56 3,580,901.05

61

2006-07 2005-06 10 168 Social Investment Bank Ltd. - N.Gonj(STD-45) 182,400,254.13 100,939,385.89 10 169 Social Investment Bank Ltd. - Kernigonj(STD-03) 16,351,114.80 6,431,016.83 10 170 Bangladesh Krishi Bank -Netrokona (STD-05) 1,554,534.19 2,104,494.29 10 171 Bangladesh Krishi Bank- Valuka(STD-05) 7,137,843.00 900,248.20 10 172 Bangladesh Krishi Bank- Goforgaon (STD-03) 6,274,833.98 2,696,390.09 10 173 UCBL- Brahman Baria (STD-31000223) 3,527,998.92 2,161,358.16 10 174 UCBL- Bhulta, Naryangonj (STD-31000051) 20,773,227.95 33,255,657.37 10 175 IFIC Bank Ltd.- B.Baria(STD-36000311) 2,871,299.94 1,691,144.84 10 176 UCBL- Mymensingh(STD-31000697) 3,687,523.82 4,127,389.38 10 177 UCBL- Madhobdi (STD-80) 20,155,945.14 7,630,263.41 10 178 UCBL- Tangail (STD-31000174) 59,591,965.07 33,808,190.17 10 179 UCBL- Pagla- N. Gonj (STD-31000046) 26,361,843.77 19,076,951.79 10 180 UCBL- Tongi (STD-31000034) 84,906,512.23 69,852,213.67 10 181 UCBL -Norshingdi (STD-31000153) 22,570,255.95 11,965,072.67 10 182 UCBL- K.B.(Com.) (STD-31000011) 5,135.77 5,135.77 10 183 UCBL- Local Office (STD-000236000995) - 650,000.00 10 184 UCBL -Nayabazar (Com.) (STD-3100078) 90,006.10 3,614,178.93 10 185 UCBL- Elephant Road (Com.) (STD-1836000526) 4,550,544.59 3,989,019.67 10 186 UCBL- Mohammadpur (Com.) (STD-18) 10,513,102.51 8,341,519.83 10 187 UCBL-Mirpur (Com.) (STD-16) 15,108,685.69 6,981,410.79 10 188 UCBL- Gulshan (Com.) (STD-31000133) 4,312,379.11 3,392,871.96 10 189 UCBL - Malibag (Com.) (STD-31000116) 14,515,109.03 9,442,819.38 10 190 UCBL - Foreign Trade Br.,(STD-007336000362) 10,498,568.09 10,483,255.23 10 191 National Bank Limited- Savar (STD-05) 129,820,048.66 111,186,968.07 10 192 AB Bank -Board Bazar, Tongi (STD-36000048) 33,671,570.04 48,421,729.41 10 193 AB Bank - Narayan gonj, (STD-40083600446) 126,401,867.43 99,258,312.17 10 194 Prime Bank -Savar (STD-31000094) 115,464,049.53 98,248,643.53 10 195 EXIM Bank-Gazipur (STD-31000038) 215,717,447.12 107,308,812.17 10 196 UCBL- Mohakhali (STD-31000153) 4,630,773.76 6,896,516.44 10 197 UCBL- Mirpur (STD-05) 21,343,376.36 4,909,284.68 10 198 National Bank Limited- Gazipur (STD-04) 15,737,253.37 19,939,686.57 10 199 Dutch-Bangla Bank - Babur Hat, Narshindi (STD-43001279) 25,978,439.37 25,138,392.44 10 203 Dhaka Bank, Islampur (STD-35000507) 953,984.08 390,265.90 10 208 NCCBL - Mogbazar Br. (STD-04000820) 318,697.00 492,797.50 10 209 NCCBL - Malibag Br. (STD-04000320) 20,562,953.23 21,586,925.04 10 210 NCCBL - Gulshan (STD-0010335019) 3,416,193.64 -

10 211 NCCBL - Jatrabari (STD-4000137) 313,075.55 11,000,733.93 10 212 NCCBL- Dhanmondi Br. (STD-4000047) 3,186,930.67 3,028,733.36 10 213 NCCBL - Babu Bazar (STD-4000778) - 649,828.00 10 221 Oriental Bank - VIP Road (STD-13600001501) - 103.58 10 222 Oriental Bank-Gulshan (STD-002513600000607) - 5,333,070.38 10 224 Oriental Bank - Mirpur road branch (STD-0764) 11,785.00 80,644.00 10 225 Oriental Bank - Islampur (STD-360003888) - 7,172.00 10 226 Oriental Bank - Babu Bazar (STD-36000709) - 17,242.00 10 227 Oriental Bank - Nababpur (STD-36000172) - 232.44 10 228 Oriental Bank-KB (STD-0024136000000310) 4,875.77 - 10 229 Oriental Bank - IDB Bhaban,Agargaon (STD-36000252) 77,321.00 2,182,205.54 10 232 BSRS - Motijheel (STD-09) 3,196,197.00 76,268.00 10 233 AB Bank, Sonargaon br. (STD-400836000636) 15,298,053.34 25,673,868.39 10 234 Rupali Bank, Pallobi (STD-017) 8,368,507.27 9,114,625.29 10 235 AB Bank Begum Rokeya Sharoni (STD-068) 13,691,259.23 10,991,744.50 10 236 EXIM Bank, Shimrail br. Narayanganj (STD-31000158) 4,951,385.87 6,494,736.58

62

2006-07 2005-06 10 237 Dutch-Bangla Bank - Mirpur (STD-14400000024) 2,821,899.45 2,453,473.00 10 238 Dutch-Bangla Bank - Mohakhali (STD-011414400000142) 634,325.57 804,644.65 10 239 Dutch-Bangla Bank - Uttara(STD-011714400000105) 4,272,272.57 3,332,468.73 10 240 Arab-Bangladesh Bank- Chandra(STD-36000089) 25,620,317.26 16,709,517.28 10 243 Agrani Bank - Jatrabari(CD-093233010843) 15,156,439.00 17,204,966.24 10 260 Agrani Bank - Shyamoli(CD-200006724) - 25,830.00 10 261 Agrani Bank - Green Road(STD-33013766) 1,360,258.00 - 10 263 Agrani Bank - Mohakhali(STD-33005037) 1,219,104.00 839,476.00 10 264 Agrani Bank - Badda(200011812) 4,311,200.00 3,730,701.00 10 269 Agrani Bank - New Eskaton (CD-385033006042) 83,396.00 102,684.00 10 270 Agrani Bank - Bashabo(STD-33005091) 1,671,314.00 1,567,773.00 10 274 Agrani Bank - Savar(STD-20346) 1,912,478.00 1,532,672.49 10 275 Pubali Bank- Naya Paltan(STD-25) 255,478.00 201,266.00 10 276 Pubali Bank- Asad Avenue (CD-1838) 3,120,396.00 5,828,150.00 10 277 Pubali Bank- Mohammadpur (CD-1813) 16,588.00 33,524.00 10 278 Pubali Bank- Sath Masjid (CD-1307) 828,874.00 952,629.00 10 279 Pubali Bank- Sonargaon Road(CD-306290118727) 2,491,614.00 1,150,698.78 10 280 Pubali Bank- Elephant Road (STD-35) 386,051.70 201,014.00 10 285 Pubali Bank- Zia International Airport(CD-1142) 98,089.00 835,621.00 10 287 Pubali Bank- Banani(CD-1351) 109,673.00 777,395.98 10 288 Pubali Bank- Shewrapara, Mirpur(STD-44) 1,851,051.00 1,567,784.00 10 290 Pubali Bank- Bashabo(CD-2893) 2,115,985.50 3,793,196.50 10 292 Pubali Bank- Goran(CD-1353) 4,088,581.00 3,449,465.00 10 293 Pubali Bank- Rampura(CD-1960) 5,696,169.00 4,535,780.00 10 294 Eastern bank Ltd -Sonargaon road - 2,800.00 10 305 Social Investment Ltd.-Uttara(STD-002413600000019) 19,146,000.47 18,971,281.37 10 306 Social Investment Ltd.-Mirpur(STD-002613600000037) 32,938,370.14 13,400,967.95 10 307 Bangladesh Krishi Bank- Jurain(STD-20) 4,647,552.00 3,121,756.00 10 309 Bangladesh Krishi Bank- Kernigonj(CD-527) 12,347,571.91 16,728,105.40 10 311 Bangladesh Commerce Bank-Dilkusha (STD- 16) 791,134.00 531,957.00 10 312 Bangladesh Commerce Bank-Dholikhal(STD-0011032000116) 2,671.00 1,163,050.00 10 313 Bangladesh Commerce Bank-Moulavi Bazar (STD-20) 43.00 11,152.00 10 318 Bangladesh Commerce Bank-Green Road(STD-19) 2,443,085.00 3,972,021.25 10 319 Bangladesh Commerce Bank-Zigatola (STD-41) 4,301,685.00 24,981,797.63 10 320 Bangladesh Commerce Bank- Gulshan(STD-13) 2,327,924.00 1,902,857.50 10 322 Bangladesh Commerce Bank- Mirpur(CD-379) 40,502,550.00 14,910,712.90 10 324 Bangladesh Commerce Bank- Khilgaon(STD-10) 21,864,238.67 23,469,167.84 10 326 City Bank Ltd. - Kawran Bazar (STD-145571003100925) - 13,348.00 10 327 City Bank Ltd. - Gulshan(STD-1305710031001740) 18,324,456.44 12,202,178.00 10 332 Rupali Bank- Mohammadpur Ladies' branch (STD- 30-1801-2) 16,807,794.74 24,155,345.71 10 343 Arab-Bangladesh Bank- Mirpur(STD-401536000323) 7,430,810.00 14,670,290.00 10 344 Exim Bank Ltd. -Simrail, N.Gonj(STD-31000238) 41,737,826.74 60,445,774.18 10 345 UCBL- Mohakhali (STD-31000257) 30,163,630.85 11,984,853.47 10 346 UCBL- Zinzira (STD-31000167) 2,793,129.71 6,006,271.64 10 347 UCBL- Naryan Gonj (STD-31001205) 6,294,252.02 7,438,389.44 10 348 UCBL- Principal branch (STD- 31002321) 26,554,464.78 22,194,003.08 10 349 UCBL- Mirpur (STD-31000335) 48,311,936.66 22,133,677.02 10 351 HSBC- Dhaka(STD-001138627067) - 10,615,319.59 10 352 Janata Bank - Valuka (STD - 07) 3,471,077.29 38,647,517.10 10 353 One Bank Ltd.- Ganak Bari (STD-31000078) 15,565,284.52 14,369,665.11 10 356 Prime Bank- Pragati Sharani(STD-31000059) 4,817,291.92 3,715,020.66

63

2006-07 2005-06 10 357 Prime Bank- Pragati Sharani(STD-31000060) 2,515,138.44 5,205,604.75 10 358 IFIC Bank - Narshindi (STD- 1036000211) 17,149,152.24 1,807,515.07 10 360 South East Ltd.- New Elephant Road (STD- 13100000178) 29,374.09 44.00 10 362 South East Ltd.- Dhanmondi (13100000778) 5,300,019.83 5,037,128.38 10 363 National Bank- Joydevpur (STD-08) 125,343.00 125,343.00 10 364 South East Ltd.- Agargaon(STD-13100000063) 2,250,424.00 - 10 365 South East Ltd.- Banani (STD-13100000104) 505,935.54 71,491.04 10 366 South East Ltd.- Uttara (STD-13100000194) 13,082.00 14,338.00 10 368 Arab Bangladesh Bank - Zinzira (STD -36000119) 18,768,698.04 7,763,483.75 10 369 Prime Bank Progati Saroni (STD 31000103) 30,757,997.11 18,749,308.70 10 370 Prime Bank Progati Saroni (STD 31000115) 12,741,031.05 8,026,748.29 10 371 HSBC Banking Corp. (STD-001138627068) 1,195,991.42 2,632,656.70 10 372 Social Investment Bank-Mirpur (STD-136-164) - 604,753.36 10 373 Rupali Bank, Trishal(STD-014) 93,588.42 11,969.72 10 374 Rupali Bank, Choto Bazar Mymensingh(STD-34/01) 291,452.97 139,383.99 10 376 Dutch Bangla Bank- Banani (STD-103120497) Dom. Pre paid card sales 2,699,388.15 918,407.72 10 377 Rupali Bank, Netrokona(STD-34/02) 2,293,468.79 967,172.50 10 378 Rupali Bank, Kishoregoaj(STD-45) 10,091,994.07 3,212,256.81 10 379 Rupali Bank, Station Road,Mymensingh(STD-54) 444,587.05 326,918.00 10 380 Rupali Bank, Swadeshi Bazar,Mymensingh(STD-09) 258,433.48 233,806.36 10 381 Rupali Bank, Khaghdahar,Mymensingh(STD-34/02) 1,082,129.86 154,215.18 10 382 Rupali Bank, Muktagacha, Mymensingh (STD-12) 1,386,922.91 1,009,068.76 10 383 Easturn bank Ltd - Principal Br.(STD-1011041352) 19,223,549.71 12,727,494.41 10 384 City Bank Ltd.-Posta Br.(STD-31000457) 2,234,217.68 25,360.00 10 385 City Bank Ltd.-Rikabi Bazar, Munshigonj (STD-31000296) 5,469,281.09 4,631,554.64 10 386 First Security Bank - Gulshan Br.(STD-13100000123) 4,639,126.87 2,295,801.00 10 387 Pubali Bank Ltd,Sharisha Bari,Jamalpur(STD-07) 517,543.00 92,135.00 10 388 The Oriental Bank Ltd. IDB Bhaban(STD-36000715) - 67,498.00 10 389 One Bank Ltd.- Gulshan (STD-5093905018) 583,828.13 - 10 391 Rupali Bank Ltd, Hatkhola (STD-02) 4,754,726.21 2,558,494.67 11 392 UCBL-Nawabpur(STD-31000899) 2,456,876.12 - 10 393 Dhaka Bank - N.Gonj(2311501480) 20,776,509.54 2,072,588.52 10 394 Bangladesh Commerce Bank - Dhamrai ((STD-06) 31,967,078.56 5,964,869.87 10 395 City Bank Ltd. Manikgonj(STD-31000984) 25,403,003.35 15,679,000.25 10 396 IFIC-Dhanmondi(STD-0636001305) 54,965.00 - 10 397 Exim Bank Ltd. -Mawna,Gazipur(STD-1310000012-6)) 33,577,353.59 21,863,021.65 10 398 Janata Bank - B.B Copporate,Sonargaon(STD-5536000361) 24,228,074.20 -

10 399 Prime Bank - Simrail(STD-31000126I 723,642.59 - 10 400 Prime Bank - Shimrail (31000138) 32,719,994.28 - 10 402 Premier Bank, New Elephant Road (STD-11413100000141) 387,575.91 -

10 405 Rupali Bank, Jaydevpur (STD-24) 839,242.19 628,476.71 Total 2,790,071,521.64 1,952,147,338.70

CASH AND BANK ACCOUNTS : SCHEDULE NO.-05

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 11 054 Bangladesh Krishi Bank- Narayanganj (STD-10) 38,040,968.56 25,397,806.52 11 055 Bangladesh Krishi Bank- Airport Road, Dhaka (STD-35) 931,400.12 467,081.12 11 060 Dhaka Bank Ltd.- Local office (STD-35000101) (67,467,880.47) 1,135,243.84 11 092 IFIC Bank, Kawran Bazar Br.(STD-23) (77,520,679.66) (63,740,280.99) 11 095 IFIC Bank, Mymensingh (STD-273) 1,148,498.13 5,377,068.28

64

2006-07 2005-06 11 150 National Credit & Commerce Bank, Kawran Bazar (STD-400024) (5,731,658.61) (24,707,629.71) 11 203 Sonali Bank, Customs House Br. Chittagong (CD-346) (178,804,271.49) (167,806,648.33) 11 401 Agrani Bank, Local office(STD-46) 408.00 408.00 11 405 Agrani Bank, WASA Br.(STD-43) (3,562,467.40) (30,177,545.29) 11 411 Agrani Bank, Shantinagor Br.(STD-14) 2,577,976.60 2,118,747.23 11 454 Oriental Bank, Kawranbazar (STD-50001) 24,941,210.04 20,438,863.90 11 470 Arab Bangladesh Bank, Kawranbazar (STD-794) (181,950,532.47) (195,235,545.12) 11 471 Arab Bangladesh Bank,Motijheel (STD-944) 3,512.18 4,012.18 11 473 Arab Bangladesh Bank, Narayanganj (STD-36000089) 250,472.04 4,752,851.62 11 496 Bangladesh Krishi Bank,Local office (STD-24) (38,685,972.93) (24,073,582.50) 11 510 City Bank, Kawranbazar (STD-8) (39,342,452.96) (24,660,596.60) 11 561 Janata Bank, BIDC Br.(STD-13) (212,685,902.74) (341,097,797.61) 11 562 Janata Bank, BIDC Br.(STD-80 ) 102,833,640.17 69,667,603.64 11 563 Janata Bank, Sarulia.(STD-01 ) 2,749,488.42 1,567,365.87 11 564 Janata Bank, BIDC Br.(STD-109) 1,600,191.95 205,845.63 11 565 Janata Bank, Kawranbazar Br. (STD-18) 2,949,801.87 796,768.87 11 566 Janata Bank, Local Office (STD-202) 13,543,294.15 13,129,012.15 11 578 Janata Bank, Local Office (STD-1324) 23,709.00 23,709.00 11 579 Janata Bank, Kawran Bazar(Benevolent Fund) (STD-25) 7,552,772.47 6,018,841.33 11 604 National Bank, Kawranbazar (STD-14) (145,581,162.90) (119,192,771.88) 11 606 National Bank, Gazipur (STD-06) 3,611,480.73 3,062,697.14 11 630 Prime Bank, Kawranbazar (STD-31000164) (195,330,825.38) (149,706,806.18) 11 643 Pubali Bank,Kawran Bazar,Corporate Branch (STD-19) (19,362,207.27) (15,195,232.09) 11 662 Rupali Bank, Local Office (STD-66) 9,133.67 9,133.67 11 663 Rupali Bank, TCB Br.(STD-7) (26,058,066.70) (30,126,074.47) 11 702 Sonali Bank ,Dilkusha(STD-12) 6,749,158.88 (6,547,781.13) 11 719 Sonali Bank, Kawranbazar (STD-13) (32,030,502.14) (51,104,004.22) 11 720 Sonali Bank, Kawranbazar-GPF (STD-16) 31,327.74 68,955.56 11 721 Sonali Bank, Kawranbazar-Pension Fund(STD-17) 16,400,051.36 1,451,551.67 11 725 Sonali Bank ,KawranBazar-CPF(STD-022) 3,216,386.16 1,798,997.15 11 727 Sonali Bank ,Sonargaon Hotel (Bangabandhu Bridge project) (STD-36000255) 54,672.40 53,942.40

11 729 Sonali Bank ,Sonargaon Hotel - Dhaka Clean Fuel Project(STD-36000296) 12,852,234.30 53,756,098.13

11 749 Dutch-Bangla Bank, Kawran Bazar (STD-43000053) (64,333,566.84) (26,111,231.39)

11 751 BSRS- Kawran Bazar (STD- 02) 1,215,531.68 1,138,894.34

11 752 HSBC- Dhaka (CD-001-138627-011)) 9,895,235.62 (55,139,658.42)

11 761 UCBL-Kawranbazar Br. (STD- 17/6) 18,728,209.18 374,174.13

11 772 UCBL- Principal Branch (STD-31000995) 3,726,927.16 2,654,525.66

11 774 UCBL- Kawranbazar Br. (STD-01) (574,966,967.65) (564,805,695.99)

11 777 UCBL- Kawranbazar, (STD-259) 3,262,127.40 905,778.45

11 780 UCBL- Kawranbazar, (STD-31000365)- Pension Fund 4,602,958.52 12,982,256.92

11 781 UCBL- Kawranbazar, (STD-31000353)- General Prov. Fund 1,603,136.37 5,609,293.02

11 782 South East Bank- Kawranbazar(STD-13100000191) (7,562,722.47) 874,646.62

11 783 Eastern Bank Ltd.- Sonargoan Road Br. (STD- 105104312) (14,760,603.62) (9,398,050.00)

11 784 One Bank KB(STD-125081157008) (14,481,946.06) (11,829,928.66)

11 796 Uttara Bank ,Kawranbazar (STD-9) 1,600,160.12 1,535,911.12

11 981 Cash in Hand 240,421.05 120,200.77

11 982 Imprest Fund 556,750.40 511,750.40 Total (1,612,717,143.32) (1,672,646,824.25)

WORK-IN-PROGRESS(Jobs for 3rd Parties) : SCHEDULE NO.-06

65

2006-07 2005-06ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT)

12 203 M/S Rasel Steel Mills(Shif.of MTL) - (400,000.00) 12 209 Rural Power Company Limited 25,817,283.20 25,817,283.20

12 216 Const.of gas pipeline at BSCIC area-Tangail - 909,137.73 12 226 Const.of gas pipeline at Nikunja (South) (2,386,444.54) (5,594,415.89) 12 227 Const.of 80MW Gas Turbine Power Station- Tongi - 25,035,351.63 12 228 Replacement of existing pipeline at Kanchpur Meghnaghat Road - (682,358.70) 12 229 Replacement of Valve Pit - Ashugonj - 463,917.98 12 230 - (2,105,357.12) 12 231 Construction Of Culvert/Casing of 14" Gas Trans. Pipeline at Bhairabbazar - (95,580.40)

12 232 - (10,872,015.00)

12 233 - 21,061.00

12 234 789,801.32 7,541,147.52

12 235 (3,139,534.21) (3,139,534.21) 12 236 Construction of Gas distribution network at Dhamrai BSCIC Industrial area (2,517,853.12) (5,134,993.35)

12 237(794,511.00) -

12 239 Supply and connection of Gas at Purbachal New Town Project (35,000,000.00) - Total (17,231,258.35) 31,763,644.39

DEPOSITS AND PREPAYMENTS : SCHEDULE NO.-07

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 17 020 Deposit with Power Development Board 26,400.00 26,400.00 17 023 Deposit with T&T Board 156,000.00 156,000.00 17 025 Deposit with BSMMU(PG Hospital), Dhaka 1,000,000.00 1,000,000.00 17 099 Other security deposits (Road cutting security) 6,623,734.46 53,715,279.96 17 160 Employees income tax -advance payments 4,131,993.99 (2,675,461.41) 17 170 Corporate tax-advance payments 2,997,329,674.31 2,997,329,674.31 17 171 Income tax deducted at source 5,900,427,165.81 4,803,388,866.57 17 501 Prepayments-insurance 5,041,702.00 4,589,460.00 17 599 Prepayments-others - 1,112,046.47

Total 8,914,736,670.57 7,858,642,265.90

INVENTORIES : SCHEDULE NO.-08

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 19 001 Stores control a/c 1,322,130,082.22 682,840,233.99

Total 1,322,130,082.22 682,840,233.99

RECEIVABLES: SCHEDULE NO.-09

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 21 910 Interest receivable on investment of GPF 142,265,903.00 72,787,211.80 21 950 Other accrued receivables(from income tax authority) 32,733,286.00 32,733,286.00

Total 174,999,189.00 105,520,497.80

TEMPORARY A/CS FOR AR DEBTORS: SCHEDULE NO.-10

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT)

Consultancy Service for Shahabazpur-Bhola Gas Trans. Pipeline of BAPEX

Construction & Instalation of new Pipeline replacing the old pipeline at 3rd discharge channel crossing of Ashuganj Power StationConstruction & Instalation of Gas Distribution Pipeline at fire service & civil difencestation complex, GoforgaonShifting of gas Distribution pipeline from the area of 6th Bangladesh -China MoitreeSetu project at MuktarpurShifting of gas Distribution pipeline from the Flyover under construction over the railcrossing at Tongi -Kaligonj-Ghorashal road

Construction of steel casing for 4" gas distribution pipeline at the approach road of the bridge under construction over the Brahmaputra.

66

2006-07 2005-06 22 002 Other debtors 4,956,649.49 8,429,436.58 22 202 Advances against TA/DA 29,045.12 68,225.76 22 203 Advances for expenses and purchases (General advance) 12,452,361.66 14,789,378.25 22 208 Advances against bonus 228,665,527.18 195,808,993.18 22 231 Recoverable from ex-employees 282,947.00 423,723.73 27 091 Advance against overtime on dearness allowance 1,559.10 19,142.71

Total 246,388,089.55 219,538,900.21

TRADE DEBTORS: SCHEDULE NO.-11

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 22 304 Sundry debtors (Power)-PDB 3,849,073,341.80 2,982,137,812.88 22 305 Sundry debtors (Fertilizer) 1,029,067,156.60 831,400,166.85 22 317 Sundry debtors (Power)- Private 1,009,949,614.04 1,275,599,160.25

Sundry debtors (Domestic- Metered) : 22 301(101) Metro-1/ Zone-1 22,486,334.31 16,377,103.07 22 301(102) Metro-1/ Zone-2 13,012,254.42 19,113,157.83 22 301(105) Metro-3/ Zone-3 15,151,127.65 14,637,167.56 22 301(103) Metro-2/ Zone-4 37,309,587.55 40,085,015.66 22 301(106) Metro-3/ Zone-5 4,136,423.08 3,902,266.82 22 301(104) Metro-2/ Zone-6 22,311,097.00 19,712,851.23 22 301(107) Narayanganj 242,768,289.10 205,314,698.95 22 301(108) Dhamrai 16,708.99 18,860.42 22 301(109) Ashuganj 859,481.57 1,480,456.96 22 301(110) Bhairabbazar 186,269.37 136,256.98 22 301(111) Norshingdi 42,551,070.45 46,613,608.30 22 301(112) Munshiganj 826,182.20 329,223.71 23 301(112) Zinzira 21,896.64 83,155.81 22 301(114) Tongi 724,464.59 695,856.03 22 301(115) Joydevpur 15,661,604.85 9,999,170.13 22 301(116) Tangail 7,797,030.72 8,976,758.21 22 301(117) Savar 5,205,321.35 4,481,279.32 22 301(118) Manikganj 1,087,190.72 1,629,780.30 22 301(119) Sherpur 154,203.36 76,786.69 22 301(120) Netrokona 183,287.85 204,263.47 22 301(121) Kishoreganj 280,261.86 287,090.05 22 301(122) Jamalpur 990,457.17 944,363.91 22 301(123) Goforgaon 11,047.23 17,812.70 22 301(124) Valuka 1,226,679.72 1,053,058.89 22 301(125) Mymensingh 2,959,677.37 3,959,461.10 22 301(126) Sonargaon 7,029,455.51 8,930,538.34 22 301(127) Brahmanbaria 1,606,003.28 1,200,402.51 22 301(129) Trishal 16,942.14 - 22 301(131) Shambhuganj 34,438.10 5,412.94 22 301(132) Muktagacha 31,689.82 - 22 301(133) Sharishabari 961.57 -

Sub-total 446,637,439.54 410,265,857.89 .Sundry debtors (Commercial) :

22 302(101) Metro-1/ Zone-1 58,315,980.65 64,118,491.19 22 302(102) Metro-1/ Zone-2 43,612,557.86 44,533,068.46 22 302(105) Metro-3/ Zone-3 40,346,871.63 40,487,677.48 22 302(103) Metro-2/ Zone-4 52,387,167.40 51,210,658.73

67

2006-07 2005-06 22 302(106) Metro-3/ Zone-5 26,984,662.85 28,314,121.33 22 302(104) Metro-2/ Zone-6 43,223,072.24 33,378,666.95 22 302(107) Narayanganj 53,303,642.01 52,305,711.54 22 302(108) Dhamrai 677,230.51 685,568.43 22 302(109) Ashuganj 1,208,923.12 1,150,088.62 22 302(110) Bhairabbazar 5,532,986.72 6,046,038.59 22 302(111) Norshingdi 5,321,190.76 12,815,337.37 22 302(112) Munshiganj 700,647.14 839,225.14 22 302(113) Zinzira 6,474,657.81 5,065,803.40 22 302(114) Tongi 5,443,059.34 5,694,345.16 22 302(115) Joydevpur 5,748,238.50 4,954,743.88 22 302(116) Tangail 2,159,648.90 2,176,037.00 22 302(117) Savar 6,240,225.89 4,767,429.38 22 302(118) Manikganj 4,892,975.99 5,358,368.24 22 302(119) Sherpur 399,429.19 656,727.75 22 302(120) Netrokona 588,777.12 594,255.63 22 302(121) Kishoreganj 1,356,474.79 1,384,415.07 22 302(122) Jamalpur 734,243.03 789,423.23 22 302(123) Goforgaon 133,858.58 262,684.23 22 302(124) Valuka 70,274.78 4,083.85 22 302(125) Mymensingh 3,561,363.61 3,132,897.06 22 302(126) Sonargaon 7,116,865.72 5,344,643.23 22 302(127) Brahmanbaria 4,184,437.13 4,822,798.65 22 302(129) Trishal 118,369.70 137,841.39 22 302(132) Muktagacha 150,339.50 34,621.72 22 302(133) Sharishabari 13,683.43 -

Sub-total 381,001,855.90 381,065,772.70

Sundry Debtors (Industrial) : 22 303(101) Metro-1/ Zone-1 681,576,469.92 653,474,334.05 22 303(102) Metro-1/ Zone-2 6,637,358.38 2,890,651.79 22 303(105) Metro-3/ Zone-3 114,440,816.36 110,114,597.67 22 303(103) Metro-2/ Zone-4 260,201,045.91 262,514,106.33 22 303(106) Metro-3/ Zone-5 58,433,638.23 56,620,416.31 22 303(104) Metro-2/ Zone-6 8,718,060.85 14,399,006.65 22 303(107) Narayanganj 1,526,306,853.53 1,538,672,669.89 22 303(108) Dhamrai 4,467,356.93 2,683,625.18 22 303(110) Bhairabbazar 15,816,490.48 8,227,603.02 22 303(111) Norshingdi 290,582,713.17 288,081,876.41 22 303(112) Munshiganj 35,050,333.72 38,722,016.65 22 303(113) Zinzira 19,104,565.50 23,545,195.69 22 303(114) Tongi 244,831,174.68 237,923,039.59 22 303(115) Joydevpur 548,616,025.44 436,315,289.82 22 303(116) Tangail 28,109,655.44 22,473,589.97 22 303(117) Savar 397,144,215.59 335,812,850.04 22 303(118) Manikganj 13,961,794.05 20,991,294.63 22 303(121) Kishorganj 2,719,244.53 - 22 303(124) Valuka 50,448,772.46 50,635,919.69 22 303(125) Mymensingh 3,251,914.14 1,592,949.42 22 303(126) Sonargaon 934,458,973.82 890,562,773.98 22 303(127) Brahmanbaria 41,155,877.41 40,093,627.50

68

2006-07 2005-06Sub-total 5,286,033,350.54 5,036,347,434.28

Sundry debtors (Domestic- Unmetered) :22 306(101) Metro-1/ Zone-1 325,299,721.86 357,779,900.53 22 306(102) Metro-1/ Zone-2 172,622,765.83 196,944,539.20 22 306(105) Metro-3/ Zone-3 292,380,324.69 330,947,090.21 22 306(103) Metro-2/ Zone-4 190,408,140.36 213,730,299.27 22 306(106) Metro-3/ Zone-5 203,701,101.62 302,898,942.77 22 306(104) Metro-2/ Zone-6 235,560,744.11 256,526,638.80

22 306(107) Narayanganj 252,591,610.92 280,624,398.46 22 306(108) Dhamrai 6,154,719.96 7,551,791.36 22 306(109) Ashuganj 2,287,516.08 2,313,360.06 22 306(110) Bhairabbazar 9,846,613.54 9,832,328.31 22 306(111) Norshingdi 36,129,511.95 46,999,436.13 22 306(112) Munshiganj 4,559,562.11 4,584,592.55 22 306(113) Zinzira 46,088,687.11 62,356,766.50 22 306(114) Tongi 27,637,619.01 45,018,445.95 22 306(115) Joydevpur 38,556,019.53 40,578,211.01 22 306(116) Tangail 19,728,812.25 27,216,024.35 22 306(117) Savar 45,273,423.73 38,601,029.76 22 306(118) Manikganj 4,036,115.07 8,969,290.24 22 306(119) Sherpur 2,457,992.05 1,971,425.38 22 306(120) Netrokona 3,570,061.33 3,820,339.83 22 306(121) Kishoreganj 4,134,791.00 5,986,471.00 22 306(122) Jamalpur 2,406,274.12 4,116,303.64 22 306(123) Goforgaon 1,201,429.00 1,626,065.00 22 306(124) Valuka 1,565,800.23 1,416,201.00 22 306(125) Mymensingh 11,123,906.39 19,963,256.76 22 306(126) Sonargaon 93,127,787.95 89,098,630.72 22 306(127) Brahmanbaria 23,323,459.80 32,292,380.89 22 306(129) Trishal 235,455.31 664,470.00 22 306(131) Shambhuganj 239,931.00 6,131.00 22 306(132) Muktagacha 509,514.00 340,336.00 22 306(133) Shorishabari 198,977.00 107,827.00

Sub-total 2,056,958,388.91 2,394,882,923.68

Sundry debtors (Captive Power) : 22 307(101) Metro-1/ Zone-1 19,785,222.24 20,741,152.83 22 307(102) Metro-1/ Zone-2 2,707,630.43 2,500,675.92 22 307(105) Metro-3/ Zone-3 1,805,983.39 1,264,256.44 22 307(103) Metro-2/ Zone-4 16,397,306.89 14,963,490.10 22 307(106) Metro-3/ Zone-5 2,135,266.65 1,882,394.10 22 307(104) Metro-2/ Zone-6 173,188.82 380,032.65 22 307(107) Narayanganj 360,288,377.29 360,343,022.46 22 307(108) Dhamrai 4,608,178.04 217,896.32 22 307(111) Norshingdi 80,133,243.36 66,541,252.97 22 307(112) Munshiganj 15,738,176.78 10,532,852.41 22 307(113) Zinzira 11,192,720.13 11,382,024.13 22 307(114) Tongi 29,202,143.08 28,613,179.23 22 307(115) Joydevpur 411,801,636.15 371,331,205.96 22 307(116) Tangail 36,038,093.75 34,027,321.53 22 307(117) Savar 244,232,785.39 286,953,179.53 22 307(118) Manikganj 18,458,518.97 18,333,931.43 22 307(121) Kishoreganj 4,592,185.61 - 22 307(124) Valuka 104,134,933.21 96,572,341.01

69

2006-07 2005-0622 307(126) Sonargaon 251,509,725.68 215,153,478.64 22 307(127) Brahmanbaria 149,994.69 158,701.33 22 307(131) Shambhuganj 1,879,886.07 1,543,135.82

Sub-total 1,616,965,196.62 1,543,435,524.81

Sundry debtors (Feed Gas for CNG) : 22 308(101) Metro-1/ Zone-1 15,643,646.79 11,032,357.64 22 308(102) Metro-1/ Zone-2 13,530,626.19 13,365,416.53 22 308(105) Metro-3/ Zone-3 6,295,450.92 4,107,140.72 22 308(103) Metro-2/ Zone-4 28,661,992.17 24,353,069.96 22 308(106) Metro-3/ Zone-5 19,939,126.57 18,694,219.59 22 308(104) Metro-2/ Zone-6 7,478,732.66 6,033,428.03 22 308(107) Narayanganj 2,301,497.11 1,928,401.29 22 308(110) Bhairabbazar 327,411.38 - 22 308(111) Norshingdi 1,094,003.97 - 22 308(114) Tongi 4,186,603.50 3,362,283.78 22 308(115) Joydevpur 9,670,157.16 4,548,512.80 22 308(117) Savar 15,524,018.90 5,125,446.27 22 308(126) Sonargaon 2,933,636.25 -

Sub-total 127,586,903.57 92,550,276.61

Sundry debtors (Seasonal ind.) : 22 311(106) Metro-3/ Zone-5 6,086,299.04 6,086,299.04 22 311(107) Narayanganj 483,271.81 483,271.81 22 311(111) Norshingdi 3,700,422.32 3,700,422.32 22 311(115) Joydevpur 3,999,042.70 3,999,042.70 21 311(126) Sonargaon 31,076,625.74 31,076,625.74 22 311(127) Brahmanbaria 1,873,710.16 1,885,374.52

Sub-total 47,219,371.77 47,231,036.13

Sundry debtors (Govt. Colony, Domestic- Unmetered) : 22 318(101) Metro-1/ Zone-1 - 744,746.90 22 318(101) Metro-1/ Zone-2 55,963,125.94 64,146,408.07 22 318(105) Metro-3/ Zone-3 163,556,080.92 172,806,085.80 22 318(103) Metro-2/ Zone-4 186,992,260.43 184,689,095.00 22 318(106) Metro-3/ Zone-5 70,242,137.30 71,901,193.24 22 318(104) Metro-2/ Zone-6 100,456,159.49 87,865,007.56 22 318(107) Narayanganj 7,503,144.39 - 22 318(108) Dhamrai 535,441.93 296,800.00 21 318(110) Bhairabbazar 1,239,793.99 1,363,941.88 21 318(111) Norshingdi 943,543.02 842,067.00 21 318(112) Munshiganj 1,015,104.62 1,305,032.64 22 318(113) Zinzira 986,715.19 1,273,685.38 22 318(114) Tongi 383,736.60 479,298.85 22 318(115) Joydevpur 5,543,137.84 17,952,225.65 22 318(116) Tangail 7,351,895.46 6,584,006.64 22 318(117) Savar 3,069,822.61 5,046,905.16 22 318(118) Manikganj 1,185,398.02 532,080.00 22 318(119) Sherpur 372,300.44 141,460.23 22 318(120) Netrokona 68,186.55 65,847.53 22 318(121) Kishoreganj 523,196.30 453,243.58 22 318(122) Jamalpur 1,260,359.84 1,176,649.51 22 318(123) Goforgaon 124,800.00 - 22 318(124) Valuka 9,600.00 - 22 318(125) Mymensingh 1,005,462.08 - 22 318(127) Brahmanbaria 4,883,316.98 210,062.00 22 318(132) Muktagacha 232,670.00 - 22 318(133) Shorishabari 800.00 800.00

Sub-total 615,448,189.94 619,876,642.62

70

2006-07 2005-06

Grand total 16,465,940,809.23 15,614,792,608.70

21 099 Less- Provision for bad & doubtful debts 2,644,366,553.90 2,327,031,033.00 Net sundry debtors 13,821,574,255.33 13,287,761,575.70

BANK DEPOSITS (FDR) : SCHEDULE NO.-12

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 25 001 FDR account-pension fund 494,696,278.82 450,263,000.00 25 002 FDR account-GPF 139,528,199.97 124,000,000.00 25 003 FDR account-ICB unit certificate( Pens. fund) 2,400,000.00 2,400,000.00 25 004 FDR account-ICB unit certificate (GPF) 2,759,394.00 2,759,394.00

25 006 FDR account-Contributory Prov.Fund (CPF) 16,000,000.00 14,000,000.00 25 007 FDR account- Contractors' BG / Pay Order 570,640.00 -

25 050 FDR account-Depreciation fund 250,000,000.00 100,000,000.00 25 051 FDR account-Customers' security deposit 3,150,658,500.00 2,400,558,500.00

Total 4,056,613,012.79 3,093,980,894.00

OTHER ASSETS: SCHEDULE NO.-13

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT)Loans to personnel:

27 001 Land Purchase / House building loans 1,003,013,602.63 913,741,603.33 27 002 Interest receivable on land purchase / house building loan 258,749,772.45 239,292,878.12 27 004 Motor Cycle Loans 264,504,162.86 256,991,380.65 27 005 Interest receivable on motor cycle loan 38,075,258.20 35,658,037.57 27 012 Computer Loans 18,369,656.50 16,318,537.02 27 013 Interest receivable on computer loan 917,139.11 2,676,986.92

Less -Loans recovery:35 005 Motor Cycle Loans recovery-Officer (43,756,203.23) (35,770,551.23) 35 006 Motor Cycle Loans recovery-Staff (143,356,453.86) (122,045,544.63) 35 013 Computer Loans recovery-Officer (15,842,185.25) (14,274,063.96) 35 020 House building loans recovery-Officer (206,396,249.73) (176,116,714.21) 35 021 House building loans recovery-Staff (331,317,958.86) (280,440,057.83)

Total 842,960,540.82 836,032,491.75 740,669,050.93

ENCASHABLE SECURITIES: SCHEDULE NO.-14

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 27 102 Encashable securities from industrial customers (PSP) 32,594,040.00 36,160,590.00 27 103 Encashable securities from industrial customers (BG) 4,448,408,151.35 3,301,011,397.72 27 105 Encashable securities from contractors(PSP) 1,641,000.00 1,766,000.00 27 107 Encashable securities from industrial customers (Lien FDR) 18,561,043.00 15,678,743.00

Total 4,501,204,234.35 3,354,616,730.72 6,084,835,385.20

GROUP CURRENT ACCOUNTS : SCHEDULE NO.-15

ACCOUNT CODE DESCRIPTION (DEBIT) / CREDIT (DEBIT) / CREDITGas purchases & tansmission :

31 001 Payable for gas purchase- BGFCL 4,401,080,188.08 5,751,511,330.52 31 006 Payable for gas purchase- SGFL 168,778,338.37 392,517,316.71 31 009 Payable for gas purchase- Occi.& Tallu 4,862,691,287.23 2,429,117,662.71

31 010 Payable for gas purchase- BAPEX 224,808,779.42 383,575,536.77 31 081 Payable for line rent to BGSL 1,279,101.50 1,279,101.50 31 084 Payable for transmission charges to GTCL 1,039,121,144.04 799,565,305.16

10,697,758,838.64 9,757,566,253.37 Transfers of payroll deductions:

31 401 Co.contribution to Prov. Fund-other group co's 25,847.00 31,767.00

71

2006-07 2005-06 31 402 Cont. to Prov. Fund for deputationists-other group co's 30,127.00 27,907.00 31 403 Cont. Provident Fund -loan realisation a/c for deputationists(other group co's) 10,138.94 12,358.94 31 422 Benevolent fund for deputationists- other group co's 1,768.38 1,378.38 31 430 Motor cycle loans (deputationists)- other group co's 1,666.00 1,666.00 31 440 House building loan (deputationists)- other Group Co's 4,709.33 4,709.33 31 490 Employees' contribution to GPF(deputationist)-other group co's 17,977.00 5,752.00

a) 92,233.65 85,538.65 PDF & BAPEX margin accounts:

31 510 Price Deficit Fund (PDF) 974,491,301.72 1,255,951,498.35 31 550 BAPEX margin a/c - Exploration Charge 5,926,462.75 71,096,058.05 31 551 BAPEX margin - DSL 105,911,139.05 105,911,139.05

1,086,328,903.52 1,432,958,695.45 Inter -group a/cs:

31 801 Bakhrabad Gas Systems Ltd. -current a/c (9,217,946.38) (6,478,664.63) 31 803 Bangladesh Petroleum Exploration & Production Co. Ltd.- current a/c (1,320,482.44) 47,395.56 31 805 Bangladesh Gas Fields Co. Ltd. -current a/c (23,214.41) 11,181.89 31 807 Gas Transmission Co. Ltd.- current a/c (119,281,465.83) (118,282,729.20) 31 809 Jalalabad Gas T & D Systems Ltd.- current a/c (8,105,392.27) (4,031,385.12) 31 811 Rupantarita Prakritik Gas Co. Ltd.- current a/c 181,530.74 248,776.64 31 813 Sylhet Gas Fields Limited- current a/c 176,300.00 146,900.00 31 820 Bangladesh Oil,Gas & Mineral Corporation- current a/c (Petrobangla) 201,735,530.74 246,107,394.97 31 830 Pashchimanchol Gas Co. Ltd. (12,178,779.61) (10,873,871.30) 31 850 Madhypara Hard Rock Current a/c (405,180.88) - 31 851 Barapukuria Coal Mines Current a/c (149,994,000.00) (447,198.56)

b) (98,433,100.34) 106,447,800.25 (a+b) (98,340,866.69) 106,533,338.90

Total 11,685,746,875.47 11,297,058,287.72

CREDITORS: SCHEDULE NO.-16

ACCOUNT CODE DESCRIPTION CREDIT/ (DEBIT) CREDIT/ (DEBIT) 33 511 Pension payable - 1,969,987.90 33 906 Deposits from customers for work 45,265,626.97 29,606,389.77 33 907 Deposits from approved house line contractors 33,971,804.82 33,993,347.22 33 950 VAT deducted from contractors & suppliers bills 1,350,218.17 1,420,959.72 57 101 Security deposits from employees 30,000.00 30,000.00

Total 80,617,649.96 67,020,684.61 105,741,714.75

TEMPORARY A/CS FOR AP CREDITOR: SCHEDULE NO.-17

ACCOUNT CODE DESCRIPTION CREDIT/ (DEBIT) CREDIT/ (DEBIT) 34 002 Income tax deducted from contractors' & suppliers' bills 340,440.13 449,295.58 34 008 Sundry creditors control a/c 7,463,091.56 9,385,730.30 34 009 Foreign purchase control a/c (221,141,911.93) (207,342,135.16) 34 010 Foreign purchase control a/c (ADB loans) - 31,239,640.23 34 011 Contractors' ledger control a/c 4,357,660.80 (52,781,733.55) 34 013 Other creditors 1,347,534.56 3,873,066.74 34 020 Amount withheld -M/s Larsen & Tubro 4,354,440.00 4,354,440.00 34 103 Government tax( 10% on adverts) 790,941.31 672,135.22 34 104 DFP commission(2% deposit with Bangladesh Bank) 311,273.11 303,232.62 34 431 Employees' subscription to own staff union - 11,640.10 34 457 Subscription to Titas Officers' Association 9,280.68 8,705.68 34 463 Employees benevolent fund loan 20,168.53 20,168.53 34 465 Engineers' association subscription 3,760.00 10,150.32

72

2006-07 2005-06 34 466 Diploma engineers' association subscription 9,920.00 11,720.00 34 471 Benevolent fund loan(deputatuionists) -out side 1,373.00 1,373.00 34 503 Employees' benevolent fund 7,819,184.74 6,288,068.17 34 915 Co's. contribution to provident fund-own employees 7,444,500.24 5,903,114.86 34 920 Employees subscription to provident fund 8,589,624.93 7,025,679.53 34 930 Special Provident Fund 1,031,650.98 667,371.06 34 932 Contributory provident fund-deput.(own personnel) 3,860.00 3,860.00 34 935 Accrued interest on GPF investment 142,265,903.00 72,787,211.80 34 950 Interest received on GPF loan 24,023,146.83 21,511,877.20

Total (10,954,157.53) (95,595,387.77)

PAYROLL SUSPENSE ACCOUNTS: SCHEDULE NO.-18

ACCOUNT CODE DESCRIPTION CREDIT/ (DEBIT) CREDIT/ (DEBIT)Other assets:

35 001 Payroll suspense-officers (554,880.40) (472,968.86) 35 036 General Prov. Fund loan repayment suspense (67,773,534.09) (67,140,816.69) 35 076 Subscription to retired employees (85,100.00) (172,900.00)

(68,413,514.49) (67,786,685.55) Other liabilities:

35 002 Payroll suspense-staff 225,260.89 1,085,034.92 35 032 Cont. Prov. Fund loan repayment suspense-officer 1,067,294.37 1,079,659.55 35 033 Cont. Prov. Fund loan repayment suspense-staff 195,362.26 115,902.46 35 035 Interest of Provident Fund loan -Staff - 1,470,142.07 35 072 Donation for medical assistance 34,840.00 - 35 073 Subscription to disaster fund-officers' payroll suspense 255,557.55 255,557.55 35 075 Donation to deceased employees families-payroll suspense 3,206,967.96 2,911,537.37 35 096 Deduction for revenue stamp 20,580.00 30,592.00

Total 5,005,863.03 6,948,425.92 Grand Total (63,407,651.46) (60,838,259.63)

(677,261,399.47) LOAN REPAYMENTS (CURRENT PART): SCHEDULE NO.-19

ACCOUNT CODE DESCRIPTION CREDIT/ (DEBIT) CREDIT/ (DEBIT) 37 010 ERF on Foreign Loan(Current Part) 93,853,674.58 376,475,803.21 37 011 Loan repayment-Foreign loan( principal) 340,605,052.14 173,043,696.57 37 012 Loan repayment-ADP loan( principal) 355,810,763.84 298,333,763.84

Total 790,269,490.56 847,853,263.62

ACCRUALS & PROVISIONS : SCHEDULE NO.-20

ACCOUNT CODE DESCRIPTION CREDIT/ (DEBIT) CREDIT/ (DEBIT) 42 002 Provision for audit fees 645,727.22 485,727.22

42 006 Liability for Stolen PSP 3,795,244.00 - 42 503 Provision for bonus 252,269,487.47 213,827,177.47 42 599 Other accrued charges 20,161,002.52 16,167,944.75 42 600 Liabilities for goods & services 41,442,213.38 21,987,203.83

Total 318,313,674.59 252,468,053.27 450,530,783.44

CAPITAL RESERVES: SCHEDULE NO.-21

73

2006-07 2005-06ACCOUNT CODE DESCRIPTION CREDIT/ (DEBIT) CREDIT/ (DEBIT)

46 501 Foreign Grant (DFID-ODA) 5,608,228.08 5,608,228.08 46 601 Capital Gains Realised 3,175,912.23 3,175,912.23 46 801 Hydrocarbon Development Fund 745,909,725.95 745,909,725.95

Total 754,693,866.26 754,693,866.26 755,349,745.49

REVENUE RESERVES: SCHEDULE NO.-22

ACCOUNT CODE DESCRIPTION CREDIT/ (DEBIT) CREDIT/ (DEBIT) 47 001 General reserves 62,648,827.34 62,648,827.34 47 800 Unappropriated surplus 4,820,671,926.19 3,487,105,887.75

Total 4,883,320,753.53 3,549,754,715.09

TAX EQUALIZATION PROVISION: SCHEDULE NO.-23

ACCOUNT CODE DESCRIPTION CREDIT/ (DEBIT) CREDIT/ (DEBIT) 53 001 Tax Equalization Provision 8,432,244,304.25 7,440,862,502.43 53 002 Provision for surcharge payable on income tax 88,375,434.54 88,375,434.54

Total 8,520,619,738.79 7,529,237,936.97

LONG-TERM BORROWINGS : SCHEDULE NO.-24

ACCOUNT CODE DESCRIPTION CREDIT/ (DEBIT) CREDIT/ (DEBIT)ADP Loans-Principal(Local) :

54 040 ADP loan Third Natural Gas Development Project 871,861,541.66 1,015,358,541.66 54 041 ADP loan Bangabandhu Bridge approach road 596,484,200.00 657,558,200.00 54 042 ADP loan AES-Meghnaghat 450MW Power Station 90,241,500.00 101,536,500.00 54 090 ADP loan Belabo-Norshingdi gas connection pipeline 6,862,009.65 12,771,009.65

Total ADP Loan 1,565,449,251.31 1,787,224,251.31

ADB & OECF Loans-Principal(Foreign) : 54 202 ADB loan no 714 BAN(SF) - 41,289,103.88 54 215 ADB loan no 868 BAN(SF) 144,451,667.94 216,684,973.94 54 245 ADB loan no 1293 BAN(SF) 1,165,157,307.80 1,271,080,653.96 54 246 ADB loan no 1943 (DCF Project) 566,792,219.00 522,144,000.00 54 667 OECF loan no BDC-18 369,333,534.42 428,859,802.67

Total Foreign Loan 2,245,734,729.16 2,480,058,534.45

Prov.-Loss on translation of ERF: 54 990 Provision for ERF-ADB loan-714 50,818,843.37 20,940,249.60 54 991 Provision for ERF-ADBloan-1293 304,890,378.24 358,026,368.81 54 992 Provision for ERF-ADB Loan 868 154,806,504.71 111,532,853.21 54 993 Provision for ERF-OECF BDC 18 266,005,647.38 283,255,355.09

776,521,373.70 773,754,826.71 Total Foreign Loan & ERF 3,022,256,102.86 3,253,813,361.16 Grand-total (Foreign & Local) 4,587,705,354.17 5,041,037,612.47

INTEREST ON LOANS: SCHEDULE NO.-25

ACCOUNT CODE DESCRIPTION CREDIT/ (DEBIT) CREDIT/ (DEBIT) 54 802 Interest on local (ADP) Loan - 26,966,700.99 54 803 Interest on foreign (ADB & OECF) Loan - 50,981,959.77

74

2006-07 2005-06Total - 77,948,660.76

4,587,705,354.17 CUSTOMER SECURITY DEPOSITS (NON -CASH): SCHEDULE NO.-26

ACCOUNT CODE DESCRIPTION CREDIT/ (DEBIT) CREDIT/ (DEBIT) 55 950 Non-cash security deposits(industrial customers)-PSP 32,594,040.00 36,160,590.00 55 951 Non-cash security deposits(industrial customers)-BG 4,448,408,151.35 3,301,011,397.72 55 994 Non-cash security deposits from industrial customers (Lien FDR) 18,561,043.00 15,678,743.00

Sub- total 4,499,563,234.35 3,352,850,730.72

55 992 Non-cash security deposits(approved house line contractors')-PSP 1,641,000.00 1,766,000.00 Sub- total 1,641,000.00 1,766,000.00 Grand total 4,501,204,234.35 3,354,616,730.72

CUSTOMER SECURITY DEPOSITS (CASH) : SCHEDULE NO.-27

ACCOUNT CODE DESCRIPTION CREDIT/ (DEBIT) CREDIT/ (DEBIT)Cash security deposits(Domestic) :

55 101(101) Metro-1/ Zone-1 132,714,032.50 120,640,089.53 55 101(102) Metro-1/ Zone-2 82,148,490.92 76,964,763.10 55 101(105) Metro-3/ Zone-3 170,394,780.96 156,022,272.96 55 101(103) Metro-2/ Zone-4 240,385,390.63 211,232,252.63 55 101(106) Metro-3/ Zone-5 151,573,708.37 137,493,023.37 55 101(104) Metro-2/ Zone-6 177,697,035.87 166,032,314.87 55 101(107) Narayanganj 81,712,802.50 72,103,479.03 55 101(108) Dhamrai 4,544,017.80 3,865,290.10 55 101(109) Ashuganj 3,136,140.00 2,829,938.00 55 101(110) Bhairabbazar 6,370,090.28 5,761,334.78 55 101(111) Norshingdi 24,950,576.66 21,903,889.65 55 101(112) Munshiganj 9,643,010.13 7,299,612.13 55 101(113) Zinzira 36,512,691.18 32,355,518.18 55 101(114) Tongi 37,144,473.15 32,034,376.15 55 101(115) Joydevpur 56,822,380.55 41,978,478.48 55 101(116) Tangail 17,462,172.33 15,593,389.33 55 101(117) Savar 52,301,777.86 38,085,826.86 55 101(118) Manikganj 5,608,029.95 4,816,294.45 55 101(119) Sherpur 3,076,915.80 2,658,805.80 55 101(120) Netrokona 4,202,437.00 3,563,057.00 55 101(121) Kishoreganj 6,713,233.18 5,658,197.18 55 101(122) Jamalpur 6,455,856.07 5,789,072.07 55 101(123) Goforgaon 1,548,079.00 1,426,090.00 55 101(124) Valuka 4,583,790.74 2,818,871.00 55 101(125) Mymensingh 25,840,771.44 23,031,519.44 55 101(126) Sonargaon 20,461,574.59 15,018,356.59 55 101(127) Brahmanbaria 16,780,205.19 14,837,493.12 55 101(129) Trishal 440,619.00 335,519.00

55 101(131) Shambhuganj 76,800.00 76,800.00 55 101(132) Muktagacha 1,264,321.00 956,980.11 55 101(133) Shorishabari 438,292.00 258,000.00

Sub-total 1,383,004,496.65 1,223,440,904.91

Cash security deposits(Commercial) :

75

2006-07 2005-06 55 102(101) Metro-1/ Zone-1 34,785,378.09 27,416,291.52 55 102(102) Metro-1/ Zone-2 47,784,297.95 41,443,897.23 55 102(105) Metro-3/ Zone-3 54,802,631.39 47,260,741.69 55 102(103) Metro-2/ Zone-4 71,484,372.71 57,100,675.36 55 102(106) Metro-3/ Zone-5 34,876,322.40 29,215,766.20 55 102(104) Metro-2/ Zone-6 25,010,463.28 21,715,744.01 55 102(107) Narayanganj 35,727,765.30 31,445,662.95 55 102(108) Dhamrai 1,177,338.77 968,727.33 55 102(109) Ashuganj 1,890,337.13 1,335,444.24 55 102(110) Bhairabbazar 3,568,829.10 3,118,857.97 55 102(111) Norshingdi 9,494,625.72 4,782,090.82 55 102(112) Munshiganj 1,279,688.84 1,173,794.24 55 102(113) Zinzira 11,183,779.03 6,628,078.08 55 102(114) Tongi 9,201,014.55 6,800,313.33 55 102(115) Joydevpur 7,104,434.93 5,730,330.23 55 102(116) Tangail 2,542,697.00 1,760,842.00 55 102(117) Savar 7,080,816.54 6,516,815.43 55 102(118) Manikganj 2,202,286.00 2,100,351.00 55 102(119) Sherpur 754,208.54 728,742.57 55 102(120) Netrokona 925,934.81 936,125.00 55 102(121) Kishoreganj 2,162,023.41 1,735,461.41 55 102(122) Jamalpur 822,548.33 699,178.14 55 102(123) Goforgaon 91,700.00 123,440.00 55 102(124) Valuka 451,300.00 258,690.00 55 102(125) Mymensingh 5,561,739.64 4,801,664.64 55 102(126) Sonargaon 2,600,838.15 1,985,291.60 55 102(127) Brahmanbaria 4,272,967.48 3,059,224.35 55 102(129) Trishal 193,393.81 126,393.81 55 102(132) Muktagacha 355,148.99 200,587.00 55 102(133) Sharishabari 35,382.00 -

Sub-total 379,424,263.89 311,169,222.15

Cash security deposits(Industrial) : 55 103(101) Metro-1/ Zone-1 121,227,743.88 103,426,511.26 55 103(102) Metro-1/ Zone-2 7,534,494.30 6,061,370.42 55 103(105) Metro-3/ Zone-3 19,212,670.23 17,494,730.60 55 103(103) Metro-2/ Zone-4 76,768,722.63 63,286,278.81 55 103(106) Metro-3/ Zone-5 40,835,085.53 38,110,104.11 55 103(104) Metro-2/ Zone-6 8,080,950.90 7,372,653.62 55 103(107) Narayanganj 357,086,278.79 306,889,047.50 55 103(108) Dhamrai 7,999,342.00 2,341,128.00 55 103(110) Bhairabbazar 4,181,220.47 2,600,217.47 55 103(111) Norshingdi 126,037,270.80 106,581,935.07 55 103(112) Munshiganj 11,395,589.85 8,050,551.45 55 103(113) Zinzira 21,171,604.84 14,643,978.84 55 103(114) Tongi 100,825,902.68 74,861,915.82 55 103(115) Joydevpur 476,202,066.74 342,274,363.95 55 103(116) Tangail 30,997,269.83 28,087,861.83 55 103(117) Savar 249,635,710.03 223,704,724.38 55 103(118) Manikganj 28,527,061.40 22,809,981.40 55 103(121) Kishoreganj 6,385,200.00 - 55 103(124) Valuka 42,859,153.89 16,693,914.89 55 103(125) Mymensingh 2,221,500.00 2,110,500.00

76

2006-07 2005-06 55 103(126) Sonargaon 236,809,916.63 197,198,093.48 55 103(127) Brahmanbaria 2,510,419.10 - 55 103(133) Shorishabari 647,950.00 -

Sub-total 1,979,153,124.52 1,584,599,862.90

Cash security deposits(Seasonal industries) : 55 105(107) Narayanganj 43,983.94 43,983.94 55 105(111) Norshingdi 6,367.33 6,367.33 55 105(115) Joydevpur 81,883.90 81,883.90 55 105(127) Brahmanbaria 125,757.77 125,757.77

Sub-total 257,992.94 257,992.94

Cash security deposits(Captive Power): 55 106(101) Metro-1/ Zone-1 27,837,666.00 13,656,591.00 55 106(102) Metro-1/ Zone-2 727,034.00 727,034.00 55 106(105) Metro-3/ Zone-3 3,714,101.20 2,990,351.20

55 106(103) Metro-2/ Zone-4 17,565,254.49 7,739,479.49 55 106(106) Metro-3/ Zone-5 2,221,450.00 1,565,550.00 55 106(104) Metro-2/ Zone-6 561,680.00 323,340.00 56 106(108) Dhamrai 5,633,965.00 - 55 106(112) Munshiganj 6,157,594.00 201,229.00 55 106(113) Zinzira 3,291,279.00 3,291,279.00 55 106(114) Tongi 32,991,044.00 21,713,278.00 55 106(115) Joydevpur 105,837,359.99 105,712,016.99 54 106(116) Tangail 14,742,522.00 5,722,169.00 55 106(117) Savar 137,772,218.15 96,792,611.15 55 106(118) Manikganj 5,953,471.03 3,530,071.03

55 106(124) Valuka 50,363,456.18 53,922,998.18 55 106(126) Sonargaon 23,552,613.00 - 55 106(127) Brahmanbaria 931,008.00 1,812,000.00 55 106(131) Shambhuganj 1,806,500.00 8,191,700.00

441,660,216.04 327,891,698.04

Cash security deposits (Feed gas for CNG) :55 107(101) Metro-1/ Zone-1 17,325,927.70 7,939,177.00 55 107(102) Metro-1/ Zone-2 1,398,250.00 760,650.00

55 107(105) Metro-3/ Zone-3 3,060,583.00 2,182,384.00 55 107(103) Metro-2/ Zone-4 22,856,752.62 21,188,580.62 55 107(106) Metro-3/ Zone-5 18,644,860.75 9,788,800.00 55 107(104) Metro-2/ Zone-6 2,545,060.74 1,650,221.00 55 107(107) Narayanganj 1,015.49 1,015.49 55 107(114) Tongi 3,970,985.00 1,307,735.00 55 107(115) Joydevpur 4,456,500.00 1,194,735.00 55 107(116) Tangail 602,320.00 - 55 107(117) Savar 13,301,533.00 4,949,523.00 55 107(118) Manikganj 1,200,200.00 - 55 107(126) Sonargaon 2,921,335.00 1,536,535.00 55 107(127) Brahmanbaria 450,000.00 -

92,735,323.30 52,499,356.11

55 109 Security Deposit- Power Private 106,591,570.44 59,859,243.60 Sub-totalGrand total 4,382,826,987.78 3,559,718,280.65

703,722,952.21

77

2006-07 2005-06

GAS PURCHASES : SCHEDULE NO.-28

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 68 001 Gas Purchases (BGFCL + SGFL) 14,242,189,852.66 15,151,946,013.87 68 051 IOC gas purchases-via BOGMC(Occi. & Tallu) 11,929,706,461.92 7,761,201,421.09

68 052 Gas Purchase from BAPEX 852,090,641.05 939,337,093.76 68 101 Transmission charges- (GTCL) 2,583,833,947.84 2,192,626,424.96

Total 29,607,820,903.47 26,045,110,953.68

TRANSMISSION & DISTRIBUTION COSTS: SCHEDULE NO.-29

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 70 001 Emergency repairs-transmission lines 100,337.12 14,763.00 70 002 Repair & maint.-cathodic protection(transmission lines) 93,620.00 1,132,493.16 70 003 Repair & maint. - transmission - consumables 1,913,129.67 291,078.00 70 004 Repair & maint.-transmission lines 738,516.68 3,212,480.19

70 010 Testing charges- Transmission lines 189,942.95 - 70 103 Emergency repairs-transmission plant 1,372,626.39 2,031,834.77

70 105 Consumables - Transmission Plant - 377,694.78 70 120 Testing charges- Transmission plant 2,606.17 - 70 160 Repair & maint.-transmission plant 2,548,541.61 9,210,437.11 70 301 Repair & maint.-bulk distribution lines 1,069,230.00 - 70 303 Emergency repairs-bulk distribution lines 211,043.09 646,010.49 70 304 Repair & maint. - Cathodic Protection 187,583.50 1,500.00 70 320 Testing Charges - bulk distribution lines - 49,348.79 70 360 Repair & maint. -regulating & metering stations(bulk supply lines) 1,055,905.86 1,127,204.00 70 501 Repair & maint.-other distribution lines 6,706,535.51 6,159,669.35 70 503 Emergency repairs-other distribution lines 2,698,941.84 4,831,619.45 70 504 Repair & maint. -Cathodic Protection- Distribution Lines 8,000.00 47,029.74

70 520 Testing Charges - Other distribution lines 51,399.00 183,759.04

70 530 Repair & maint.- domestic regulators (other distribution lines) 293,892.91 -

70 535 RMS sealing expenses(other distribution lines) 1,128,063.25 973,573.63

70 550 Repair & maint. -CGS,TBS and DRS (other distribution lines) 3,877,024.11 19,359,600.09

70 560 Repair & maint.-regulating & metering stations (other distribution lines) 1,984,883.09 532,347.12

70 840 Repair & maint.-machinery,equipment & tools 16,009.44 69,287.27

70 850 Workshop consumables 188,769.00 156,965.20

70 860 Repair & maint.-fabrication workshop 96,475.00 24,600.00

70 870 Repair & maint.-testing & control workshop 127,535.51 53,253.42

70 901 Repair & maint.-Telecommunications services 2,947,885.00 4,589,680.00

70 921 Repair & maint.-Electrical equipments 22,981.00 40,472.79

70 925 Repair & maint.- Others 176,603.99 -

70 926 Loose tools 137,984.00 96,810.00 70 950 Pipeline insurance 267,221.00 261,633.00 70 970 Disconnection & reduction of system loss 8,760,982.49 6,152,437.00 70 971 Publicity for reduction of system loss 451,474.24 612,585.55 70 972 Operational advertisements 1,099,183.53 684,251.34

Total 40,524,926.95 62,924,418.28

SERVICE CHARGES: SCHEDULE NO.-30

78

2006-07 2005-06ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT)

79 001 Petrobangla service charge 57,023,000.00 35,000,000.00 79 101 Exploration charges(BAPEX Margin) 288,732,900.48 305,059,055.04

Total 345,755,900.48 340,059,055.04

PERSONNEL COSTS : SCHEDULE NO.-31

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 80 001 Officers' salaries 115,261,592.78 111,691,446.99 80 002 Staff salaries 133,899,736.55 126,776,466.02 80 003 Officers' Dearness Allowance - 33,820.57 80 004 Staff dearness allowance - 15,518.78 80 005 Employees' income tax 7,243,022.41 9,635,062.60 80 010 Staff overtime 49,634,319.11 34,747,178.43 80 020 Incentive bonus(annual)-officers 17,607,545.00 17,764,303.00 80 021 Incentive bonus(annual)-staff 20,834,765.00 19,693,723.48 80 022 Festival bonus-officers 19,158,528.70 12,408,390.50 80 023 Festival bonus-staff 21,303,070.00 13,624,874.00 80 031 Directors' fees & expenses 228,113.00 259,678.00 80 035 Other honourarium 237,650.00 158,650.00 80 053 Conveyance allowance-officers 174,486.29 189,791.84 80 054 Conveyance staff-staff 1,087,030.42 912,493.83 80 066 Gas subsidy(allowance)-Officers 5,132,961.47 5,085,461.34 80 067 Gas subsidy(allowance)-staff 11,025,107.60 11,236,622.85 80 070 Meal allowance - staff 6,112,940.00 5,820,300.00 80 072 Night allowance 61,185.00 83,060.00 80 085 Washing allowance-officers 901,288.76 902,795.13 80 086 Washing allowance-staff 2,099,319.83 2,149,239.49 80 089 Other allowances- staff (Tiffin) 1,612,219.38 1,812,453.99 80 090 Wages of casual labour 4,466,421.98 4,732,987.11 80 202 House rent allowance-officers 54,028,709.17 29,493,098.74 80 203 House rent allowance-staff 62,767,502.86 34,976,680.48 80 205 Fixed house rent allowance (Ceiling) 618,000.00 618,000.00 80 210 Gardener, servant, sweeper & security guard allowance 220,132.26 189,279.99 80 221 Electricity (ceiling) 413,368.22 321,127.29 80 225 Residential telephone 694,380.60 521,512.76 80 229 Water & Sewerage allowance 61,651.43 41,793.33 80 301 Company's contribution to Pension Fund 47,919,030.92 45,972,872.72 80 302 Company's contribution to Provident Fund 615,007.40 565,126.00 80 320 Group insurance premiums 4,422,875.93 4,548,554.60 80 329 Gratuity- staff 1,120,295.00 955,461.70 80 330 Gratuity- officers 791,758.00 1,109,389.00 80 370 Liveries and uniforms-officers 6,040,078.62 5,732,153.26 80 371 Liveries and uniforms-staff 11,977,324.50 13,294,088.50 80 401 Medical expenses 18,717,989.54 12,821,054.39 80 410 Employees tea expenses 3,063,404.00 3,433,467.00 80 411 Lunch subsidy for officers 1,160,989.00 1,097,929.00 80 431 Scholarship & stipends scheme 947,100.00 267,050.00 80 450 Staff hospitalisation expenses 147,510.00 24,005.00 80 460 Games, sports & outings 1,397,000.00 1,165,000.00 80 495 Other employee welfare & amenities 245,000.00 110,000.00 80 501 Leave pay 19,493,255.07 16,982,930.32 80 510 Recreation leave -staff 10,457,915.00 9,831,210.00 80 550 Leave fare assistance-officer 12,500,730.00 10,941,335.00 80 601 Training & education-Local 1,279,550.00 1,067,200.00 80 610 Training & education-Foreign 290,000.00 - 80 801 Recruitment expenses 3,496,534.00 1,508,871.00 80 880 Other transfer expenses 166,397.75 27,093.00

79

2006-07 2005-06Total 683,134,792.55 577,350,601.03

PROFESSIONAL SERVICES : SCHEDULE NO.-32

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 81 101 External audit fees 160,000.00 140,000.00 81 201 Tax consultants' fees 148,000.00 90,500.00 81 401 Legal expenses 12,354,112.10 11,182,149.50

81 501 Fees against gas bill collection 1,373,697.80 347,274.66 81 901 Other advisors and consultants-local 1,410,700.00 914,710.00

Total 15,446,509.90 12,674,634.16

PROMOTIONAL COSTS: SCHEDULE NO.-33

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 82 001 Entertainment-MD's office 13,500.00 - 82 003 Entertainment-(Ceiling) 95,499.99 76,160.18 82 005 Other entertainment-local 540,843.00 745,086.00 82 101 Publication of technical brochures & periodicals - 7,940.00 82 102 Seminars & Exhibitions 888,208.41 870,909.00 82 103 Promotional films 12,047.00 144,408.00 82 105 Advertising-press 166,000.00 247,406.28 82 199 Other Promotional Costs 35,000.00 - 82 201 Special customer services 6,518,231.60 5,081,319.84

Total 8,269,330.00 7,173,229.30

POWER COSTS: SCHEDULE NO.-34

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 83 001 Gas -business (Operational use) 11,532,113.63 10,427,704.26 83 010 Electricity-business 8,899,584.88 8,142,554.62 83 015 Electricity-domestic 661,131.82 677,600.31 83 025 Fuel Oil -Domestic 8,536.50 - 83 030 Other fuel-business - 545.00 83 040 Repair & maintanance-electrical utilities & equipments 1,980,571.00 931,920.13

Total 23,081,937.83 20,180,324.32

COMMUNICATION COSTS : SCHEDULE NO.-35

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 84 002 Telephone expenses 4,176,312.73 3,307,456.45 84 003 Fax expenses 134,678.00 255,531.60 84 006 Postage expenses 467,860.25 735,737.40 84 010 Network services 451,724.75 370,704.25

Total 5,230,575.73 4,669,429.70

TRANSPORT COSTS: SCHEDULE NO.-36

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 85 003 POL for transport vehicles 16,944,097.41 15,268,349.17 85 010 Vehicle insurance 3,972,509.00 3,794,968.60 85 020 Vehicle taxes and licenses 1,183,581.00 915,410.00 85 090 Repair & maintanance-passenger vehicles 4,356,350.28 3,852,687.37 85 091 Repair & maintanance-heavy vehicles & equipment 20,020.48 101,758.32 85 093 Vehicle consumable spares 4,892,581.04 3,202,053.15 85 095 Vehicle conversion cost 676,158.00 352,618.00

80

2006-07 2005-06 85 101 Officers' traveling - local 5,976,375.35 5,894,842.80 85 102 Staff traveling - local 5,374,458.54 5,076,222.20 85 121 Transport hire for disconnection team 4,960,109.63 2,833,772.00 85 123 Other transport hire 16,910,688.52 14,529,101.00 85 130 Handling & caring condensate 56,430.00 246,399.00

Total 65,323,359.25 56,068,181.61

OCCUPANCY COSTS : SCHEDULE NO.-37

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 86 001 Office rent 14,061,450.00 12,594,653.80 86 011 Soft furnishings 10,000.00 33,401.50 86 012 Non-capitalised furniture & fittings - 146,280.00 86 013 Non-capitalised equipment & appliances 282,811.00 197,400.00 86 014 Crockeries and cutleries 4,700.00 53,786.00 86 015 Linen & soft furnishings 20,500.00 - 86 021 Repair & maintanance - office buildings 3,847,950.54 2,067,589.87 86 022 Repair & maintanance - residential buildings 984,745.14 466,039.42 86 023 Repair & maintanance - Stores 19,597.22 2,834.82 86 025 Repair & maintanance - office furniture & fixtures 676,963.00 573,646.50 86 027 Repair & maintanance - office equipment 118,057.00 91,490.00 86 029 R & M-Land,Roads & Right of Way 365,374.30 61,059.00 86 030 Electrical & electronic consumables 1,065,457.95 709,272.65 86 031 Other Consumable - 39,324.20 86 071 Fire fighting equipment non-capitalized 80,170.00 4,800.00 86 072 Fire fighting consumables 48,230.00 97,365.00 86 082 General security 14,669,651.67 9,919,988.29 86 091 Rates and taxes (including Excise Duty) 1,590,514.32 1,696,144.32 86 092 Water and sewerage 2,162,594.64 1,949,144.78 86 093 Gardening 393,229.00 326,862.00 86 094 Office cleaning 467,485.67 3,975.44

Total 40,869,481.45 31,035,057.59

FINANCIAL COST (INTEREST ON LOANS): SCHEDULE NO.-38

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 87 001 Interest on local (ADP) loans 80,140,000.00 89,055,000.00 87 401 Interest on foreign(ADB & OECF) loans 100,368,000.00 111,762,000.00

Total 180,508,000.00 200,817,000.00

FINANCIAL CHARGES: SCHEDULE NO.-39

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 87 901 Bank charges and commission 1,646,617.88 1,053,436.20 87 950 Bad & doubtful debts 317,335,520.90 315,713,039.06 87 951 Loss on Stolen PSP 4,735,498.00 -

Total 323,717,636.78 316,766,475.26 504,225,636.78

ADMINISTRATIVE COSTS: SCHEDULE NO.-40

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 88 001 Office stationery & printing 11,731,411.00 8,984,563.00 88 002 Drawing office stationary & Printing 193,115.10 120,065.00

81

2006-07 2005-06 88 003 Newspapers,books & periodicals -general 844,642.00 812,316.02 88 004 Books & periodicals -technical 75,000.00 - 88 005 Revenue stamp expenses 10,537,177.91 9,046,841.19 88 007 Other office consumables 344,147.62 293,329.00 88 501 Computer bureau charges 15,648.00 1,850.00 88 510 Computer software maintenance - 34,500.00 88 511 Computer equipment maintenance 1,753,885.00 2,513,324.36 88 520 Computer stationery-general 1,466,264.00 1,000,172.14 88 601 Fire,cyclone & theft insurance 554,480.00 959,593.38 88 603 Personal & fidelity insurance 51,824.00 49,898.00 88 920 Advertisement-tenders 1,331,500.69 2,341,141.71 88 950 Board expenses 417,508.00 348,943.00 88 952 AGM Expenses 362,565.00 675,094.00 88 953 Annual Report Printing 116,895.00 120,875.00

Total 29,796,063.32 27,302,505.80

MISCELLANEOUS COSTS: SCHEDULE NO.-41

ACCOUNT CODE DESCRIPTION DEBIT/ (CREDIT) DEBIT/ (CREDIT) 89 003 Land & land development tax 15,332,404.60 6,128,018.27 89 004 Licence & Other Fees 10,000.00 10,000.00 89 901 Donations & contributions 2,645,973.01 2,230,197.67 89 905 School operating expenses 4,000,000.00 3,000,000.00 89 920 Stores handling charges 274,757.54 564,886.60 89 950 Repair & Maint.- Other fixed assets - 56,380.00 89 999 Miscellaneous expenses 477,982.33 474,310.69

Total 22,741,117.48 12,463,793.23

MISCELLANEOUS INCOME (OPERATIONAL): SCHEDULE NO.-42

ACCOUNT CODE DESCRIPTION CREDIT/ (DEBIT) CREDIT/ (DEBIT) 91 201 Meter rent-power 30,920,534.92 30,898,189.92 91 207 Meter rent-fertilizer 2,845,984.80 2,845,984.80 91 208 Meter rent- (Captive power) 14,145,240.00 7,948,733.00 91 209 Meter rent- (Feed Gas - CNG) 1,992,720.00 1,652,580.00 91 210 Meter rent- Industrial 34,947,975.00 33,653,337.96 91 220 Meter rent- Commercial 8,421,843.00 8,282,413.00 91 221 Meter rent- Dom. Com. 2,735,390.00 2,655,792.00 91 250 Meter rent-domestic 1,896,905.06 1,778,626.00 91 260 Service charges -Power (private) 9,416,129.03 5,600,000.00 91 301 Connection charges-Power 15,000.00 216,800.00 91 310 Connection charges-industrial 19,947,254.67 15,632,842.08 91 320 Connection charges-commercial 758,015.00 330,830.00 91 350 Connection charges-domestic metered 210,400.00 50,950.00 91 360 Connection charges-domestic unmetered 34,813,281.21 37,947,871.45 91 602 Re-connection charge- Industry 1,745,672.19 1,703,162.19 91 608 Re-connection charge- Captive Power 40,000.00 - 91 620 Re-connection charge- Commercial 1,787,062.00 867,677.94 91 650 Re-connection charge- Domestic (Non-metered) 4,133,708.88 2,318,350.00

82

2006-07 2005-06 97 001 Late payment penalties-industrial 240,303,849.72 202,458,849.63 97 002 Late payment penalties-commercial 14,956,283.18 17,417,153.73 97 003 Late payment penalties-seasonal 69,085.05 - 97 004 Late payment penalties-domestic unmetered 51,601,791.16 33,363,450.64 97 005 Late payment penalties- (Captive power) 63,983,422.57 47,279,304.70 97 006 Late payment penalties- (Feed Gas - CNG) 3,892,638.55 3,790,040.75 97 007 Late payment penalties- Domestic-rated com. 333,257.94 785,352.25 97 008 Late payment penalties- (Power Private) 3,540,936.21 193,288.32

Total 549,454,380.14 459,671,580.36

GAS SALES : SCHEDULE NO.-43

ACCOUNT CODE DESCRIPTION CREDIT/ (DEBIT) CREDIT/ (DEBIT) 91 001 Gas sales (Power) -PDB 7,690,069,287.00 7,646,755,089.42 91 007 Gas Sales (Fertilizer) 3,239,370,585.92 3,089,424,808.96 91 010 Gas sales (Power-private) 5,190,735,135.14 4,878,780,709.10

Gas sales (Industrial) : 91 002(101) Metro-1/ Zone-1 752,945,236.02 646,407,766.90 91 002(102) Metro-1/ Zone-2 22,115,561.49 19,236,779.74 91 002(105) Metro-3/ Zone-3 64,579,600.35 64,499,658.58 91 002(103) Metro-2/ Zone-4 295,739,663.91 277,658,970.32 91 002(106) Metro-3/ Zone-5 184,498,790.59 173,539,837.29 91 002(104) Metro-2/ Zone-6 31,088,939.81 32,786,251.13 91 002(107) Narayanganj 1,519,767,533.31 1,272,461,926.45 91 002(108) Dhamrai 11,704,141.82 7,222,292.52 91 002(110) Bhairabbazar 24,331,339.08 12,265,855.28 91 002(111) Norshingdi 606,186,392.93 573,991,694.70 91 002(112) Munshiganj 34,283,985.04 28,420,168.60 91 002(113) Zinzira 56,147,804.60 56,201,619.30 91 002(114) Tongi 573,232,649.38 438,044,576.74 91 002(115) Joydevpur 2,000,124,701.37 1,471,307,241.41 91 002(116) Tangail 94,262,565.16 64,266,378.69 91 002(117) Savar 1,468,114,076.93 1,230,539,570.02 91 002(118) Manikganj 93,268,872.07 82,661,468.87 91 002(121) Kishoreganj 5,022,419.94 - 91 002(124) Valuka 169,278,164.13 115,023,451.90 91 002(125) Mymensingh 5,134,051.94 3,787,807.82 91 002(126) Sonargaon 1,509,607,773.85 1,242,232,748.74 91 002(127) Brahmanbaria 20,585,365.46 12,168,579.56

Sub-total 9,542,019,629.18 7,824,724,644.56

Gas sales (Captive Power) : 91 008(101) Metro-1/ Zone-1 85,333,795.48 69,971,447.36 91 008(102) Metro-1/ Zone-2 5,119,284.62 5,171,221.59 91 008(105) Metro-3/ Zone-3 19,826,069.93 9,573,868.13 91 008(103) Metro-2/ Zone-4 61,392,410.10 47,097,669.87 91 008(106) Metro-3/ Zone-5 12,551,918.66 9,541,746.46 91 008(104) Metro-2/ Zone-6 1,796,103.10 880,618.08 91 008(107) Narayanganj 461,922,242.35 342,830,965.39 91 008(108) Dhamrai 7,517,002.95 708,949.45 91 008(111) Norshingdi 304,992,248.50 222,842,412.79 91 008(112) Munshiganj 12,091,798.92 3,596,558.41

83

2006-07 2005-06 91 008(113) Zinzira 44,709,781.71 48,854,298.84 91 008(114) Tongi 196,777,042.78 154,191,977.74 91 008(115) Joydevpur 1,497,650,262.57 1,143,347,301.86 91 008(116) Tangail 229,593,884.17 184,515,356.97 91 008(117) Savar 894,328,246.67 698,831,655.63 91 008(118) Manikganj 141,120,407.47 119,739,744.02 91 008(121) Kishoreganj 8,382,491.94 - 91 008(124) Valuka 425,125,707.25 331,074,024.69 91 008(126) Sonargaon 1,063,355,754.05 829,293,130.70 91 008(127) Brahmanbaria 1,740,385.07 4,748,475.12 91 008(131) Shambhuganj 19,053,633.34 16,110,591.95

Sub-total 5,494,380,471.63 4,242,922,015.05

Gas sales (Feed Gas for CNG) : 91 009(101) Metro-1/ Zone-1 93,243,097.48 47,305,162.69 91 009(102) Metro-1/ Zone-2 23,646,377.51 22,321,625.40 91 009(105) Metro-3/ Zone-3 29,321,141.94 22,186,480.83 91 009(103) Metro-2/ Zone-4 194,897,415.16 135,671,571.96 91 009(106) Metro-3/ Zone-5 113,996,880.27 79,922,334.41 91 009(104) Metro-2/ Zone-6 35,774,151.01 26,210,461.55 91 009(107) Narayanganj 13,059,803.98 9,757,359.42 91 009(110) Bhairab Bazar 325,957.38 - 91 009(111) Norsinghdi 1,091,095.97 - 91 009(114) Tongi 17,089,927.94 12,160,124.11 91 009(115) Joydevpur 30,830,546.83 11,738,920.38 91 009(117) Savar 59,293,364.20 13,806,236.37 91 009(126) Sonargaon 13,045,977.43 -

Sub-total 625,615,737.10 381,080,277.12

Gas sales (Commercial) : 91 020(101) Metro-1/ Zone-1 78,326,345.61 63,275,297.28 91 020(102) Metro-1/ Zone-2 116,305,107.58 115,660,389.21 91 020(105) Metro-3/ Zone-3 112,039,261.39 106,165,281.55 91 020(103) Metro-2/ Zone-4 150,129,031.45 140,236,666.30 91 020(106) Metro-3/ Zone-5 86,233,259.75 78,747,866.00 91 020(104) Metro-2/ Zone-6 79,500,117.03 66,882,439.65 91 020(107) Narayanganj 60,331,533.58 53,246,635.38 91 020(108) Dhamrai 2,867,492.77 2,152,351.84 91 020(109) Ashuganj 3,917,352.38 3,587,626.04 91 020(110) Bhairabbazar 12,604,248.58 12,196,177.54 91 020(111) Norshingdi 14,404,867.28 13,173,825.51 91 020(112) Munshiganj 2,610,153.07 3,045,642.98 91 020(113) Zinzira 20,381,878.33 12,803,861.66 91 020(114) Tongi 21,187,783.38 16,390,099.05 91 020(115) Joydevpur 18,910,967.90 15,199,394.65 91 020(116) Tangail 6,722,174.65 5,692,902.23 91 020(117) Savar 21,277,886.00 15,734,430.27 91 020(118) Manikganj 7,533,210.91 6,282,814.58 91 020(119) Sherpur 2,217,947.99 2,140,001.28 91 020(120) Netrokona 2,785,132.74 2,487,843.18 91 020(121) Kishoreganj 5,054,763.13 3,965,383.30 91 020(122) Jamalpur 2,369,906.68 2,089,646.02 91 020(123) Goforgaon 403,051.63 418,737.15 91 020(124) Valuka 907,155.23 652,204.80 91 020(125) Mymensingh 13,674,939.13 11,957,209.86

84

2006-07 2005-06 91 020(126) Sonargaon 9,353,321.74 7,353,901.23 91 020(127) Brahmanbaria 12,195,316.91 11,766,299.90 91 020(129) Trishal 474,854.46 293,834.76 91 020(130) Madhobpur (sales to Jalalabad Gas) 957,241.83 859,732.55 91 020(132) Muktagacha 1,107,449.44 227,878.92 91 020(133) Shorishabari 13,591.43 -

Sub-total 866,797,343.98 774,686,374.67

Gas sales (Domestic-unmetered) : 91 050(101) Metro-1/ Zone-1 595,921,878.78 539,757,804.00 91 050(102) Metro-1/ Zone-2 334,712,662.00 347,149,441.00 91 050(105) Metro-3/ Zone-3 690,449,772.00 675,230,283.00 91 050(103) Metro-2/ Zone-4 861,913,965.00 739,277,015.00 91 050(106) Metro-3/ Zone-5 561,426,044.86 533,866,865.00 91 050(104) Metro-2/ Zone-6 707,878,933.00 645,631,544.20 91 050(107) Narayanganj 333,738,250.00 326,895,272.00 91 050(108) Dhamrai 17,369,950.00 17,210,410.00 91 050(109) Ashuganj 10,246,425.84 8,810,000.00 91 050(110) Bhairabbazar 31,085,668.09 26,090,831.62 91 050(111) Norshingdi 104,243,341.10 86,619,115.00 91 050(112) Munshiganj 28,115,700.00 23,863,300.00 91 050(113) Zinzira 142,893,284.00 126,495,927.00 91 050(114) Tongi 150,832,483.72 131,348,452.61 91 050(115) Joydevpur 125,783,855.66 123,871,241.70 91 050(116) Tangail 62,484,550.00 61,827,555.29 91 050(117) Savar 163,072,340.77 138,751,200.00 91 050(118) Manikganj 18,502,700.00 18,229,750.00 91 050(119) Sherpur 10,890,379.67 9,967,153.00 91 050(120) Netrokona 15,607,869.06 13,303,254.35 91 050(121) Kishoreganj 24,873,715.77 21,407,763.63 91 050(122) Jamalpur 19,764,219.00 18,541,177.00 91 050(123) Goforgaon 6,575,305.00 4,693,736.00 91 050(124) Valuka 9,484,487.84 5,653,549.00 91 050(125) Mymensingh 93,450,458.00 86,314,695.00 91 050(126) Sonargaon 92,861,000.00 80,385,250.15 91 050(127) Brahmanbaria 75,113,019.75 69,902,450.00 91 050(129) Trishal 1,166,185.86 1,061,850.00 91 050(131) Shambhuganj 344,200.00 49,331.00 91 050(132) Muktagacha 3,804,997.09 1,303,002.00 91 050(133) Shorishabari 1,297,374.00 395,323.00

Sub-total 5,295,905,015.86 4,883,904,541.55 Gas sales (Govt. Colony, Domestic- Unmetered) :

91 051(101) Metro-1/ Zone-1 1,066,800.00 988,950.00 91 051(102) Metro-1/ Zone-2 25,691,162.00 24,720,000.00 91 051(105) Metro-3/ Zone-3 17,381,318.00 17,029,827.00 91 051(103) Metro-2/ Zone-4 51,168,000.00 51,012,000.00 91 051(106) Metro-3/ Zone-5 24,079,972.00 15,665,000.00 91 051(104) Metro-2/ Zone-6 29,137,782.03 27,848,000.00 91 051(107) Narayanganj 2,518,058.00 - 91 051(108) Dhamrai 453,200.00 296,800.00 91 051(110) Bhairabbazar 186,000.00 180,900.00 91 051(111) Norshingdi - 189,600.00 91 051(113) Zinzira 195,600.00 169,200.00 91 051(114) Tongi 408,600.00 408,600.00 91 051(115) Joydevpur 15,650,517.41 9,186,780.22

85

2006-07 2005-0691 051(116) Tangail 1,860,444.71 1,860,444.71 91 051(117) Savar 1,850,000.00 1,861,230.00 91 051(118) Manikganj 2,147,100.00 766,800.00 91 051(119) Sherpur 574,067.00 27,600.00 91 051(120) Netrokona 108,300.01 108,578.60 91 051(121) Kishoreganj 403,299.00 297,715.00 91 051(122) Jamalpur 1,183,254.00 1,150,793.00 91 051(123) Goforgaon 124,800.00 - 91 051(124) Valuka 9,600.00 - 91 051(125) Mymensingh 859,200.00 - 91 051(127) Brahmanbaria 1,584,134.35 804,000.00 91 051(132) Muktagacha 232,670.00 - 91 051(133) Shorishabari 4,800.00 3,200.00

Sub-total 178,878,678.51 154,576,018.53 Gas sales (Domestic-metered) :

91 060(101) Metro-1/ Zone-1 11,097,199.95 5,091,321.62 92 060(102) Metro-1/ Zone-2 24,030,340.86 24,976,275.47 91 060(105) Metro-3/ Zone-3 15,662,886.57 16,138,025.09 91 060(103) Metro-2/ Zone-4 32,671,185.52 26,760,480.22 91 060(106) Metro-3/ Zone-5 4,711,147.95 3,920,694.22 91 060(104) Metro-2/ Zone-6 14,477,974.87 13,710,337.08 91 060(107) Narayanganj 41,678,375.24 4,986,361.80 91 060(108) Dhamrai 88,047.47 77,633.13 91 060(109) Ashuganj 9,777,261.87 8,935,702.08 91 060(110) Bhairabbazar 466,858.11 405,911.11 91 060(111) Norshingdi 23,912,199.17 23,206,702.95 91 060(112) Munshiganj 478,846.74 444,820.28 92 060(113) Zinzira 167,450.93 112,284.30 91 060(114) Tongi 1,583,197.81 1,500,668.79 91 060(115) Joydevpur 49,046,108.38 22,560,254.89 91 060(116) Tangail 5,922,172.29 4,916,023.87 91 060(117) Savar 17,706,166.27 16,358,553.13 91 060(118) Manikganj 1,024,296.71 950,820.42 91 060(119) Sherpur 366,799.70 235,597.01 91 060(120) Netrokona 617,559.68 608,378.96 91 060(121) Kishoreganj 938,922.06 787,563.12 91 060(122) Jamalpur 3,598,162.05 3,686,711.21 91 060(123) Goforgaon 14,517.43 13,197.47 91 060(124) Valuka 3,908,762.49 2,883,678.41 91 060(125) Mymensingh 8,132,933.23 7,874,487.29 91 060(126) Sonargaon 4,774,834.21 5,359,401.22 91 060(127) Brahmanbaria 2,585,841.47 2,181,527.15 91 060(129) Trishal 11,300.49 8,319.04 91 060(130) Madhobpur (sales to Jalalabad Gas) 2,489,085.51 2,216,268.76 91 060(131) Shambhuganj 140,199.41 - 91 060(132) Muktagacha 156,203.98 - 91 060(133) Sorishabari 915.57 -

Sub-total 282,237,753.99 200,908,000.09

91 070 Gas Sales(Domestic,Prepaid Meter) 1,707,600.00 2,291,600.00 Grand-total 38,407,717,238.31 34,080,054,079.05

86

2006-07 2005-06INTEREST INCOME : SCHEDULE NO.-44

ACCOUNT CODE DESCRIPTION CREDIT/ (DEBIT) CREDIT/ (DEBIT) 95 002 Interest income on bank deposits (STD) 59,780,137.10 55,530,199.25 95 003 Interest income on bank deposits (FDR) 208,843,705.06 62,011,785.58 95 201 Interest on land purchase & house building loans 28,572,997.27 25,832,365.11 95 202 Interest on motor cycle loan 5,416,156.99 7,130,919.26 95 204 Interest on Computer loan 250,203.07 291,645.14

Total 302,863,199.49 150,796,914.34

MISCELLANEOUS INCOME (NON-OPERATIONAL) : SCHEDULE NO.-45

ACCOUNT CODE DESCRIPTION CREDIT/ (DEBIT) CREDIT/ (DEBIT) 97 009 Other penalties & fines received 33,502,935.72 39,961,931.39 97 010 Sale of bill books & application forms 175,470.07 200,199.00 97 050 Income from Consultancy Service 1,169,498.83 106,576.20 97 070 Testing charges to suppliers 4,088,394.40 3,045,236.37 97 080 Transport income 259,548.00 394,050.00 97 501 Profit & loss on disposal of fixed assets 597,766.00 2,044,580.75 97 510 Profit & loss from sale of stores 45,872,097.89 112,735,934.53 97 550 Sale of Scrap 27,668.00 - 97 802 Sale of tender documents 1,903,653.00 1,466,000.00 97 901 Enlistment & renewal fees 580,500.00 1,191,100.00 97 921 Demurrage income - 131,250.56 97 922 Other Liquidated Damage 5,939,226.31 630,568.02 97 940 Other rental income 59,788.80 147,707.00 97 990 Miscellaneous income 103,228,175.65 89,271,343.27 86 009 House rent income & recoveries 240,000.00 240,000.00 86 010 Office rent income & recoveries 1,010,100.00 926,850.00 92 020 Sale of gas condensate 42,483,565.14 28,611,811.65

94 101 Gas connection commission fees 3,951,808.79 2,353,017.85 Total 245,090,196.60 283,458,156.59

456,677,457.48

87

88

Titas Gas Transmission & Distribution Co. Ltd.

Statement of Changes in Equity For the year ended 30 June 2007

(Amount in Taka)

Particular Share Capital Deposits for Share Capital Reserves Revenue Reverse Total Balance as on 01 July 2006 150,73,24,000 88,14,83,800 75,46,93,866 486,33,47,110 800,68,48,776 Addition during the year - 6,55,579 - - 6,55,579 Issue of Share 88,14,83,500 (88,14,83,500) - - - Net Profit for the year - - - 257,52,40,914 257,52,40,914 Prior years' adjustments - - - 1,99,73,644 1,99,73,644 Dividend paid during the year - - - (88,25,54,000) (88,25,54,000) Balance as on 30 June 2007 238,88,07,500 6,55,879 75,46,93,866 657,60,07,668 972,01,64,913

This is also to certify that:

The Company in its Extra Ordinary General Meeting held on October 24, 2007 decided to reduce the denomination of its share from Tk. 500 each to Tk. 100 each. Considering this, as on 30.06.2007 the number of paid-up shares of the Company stands at 2,38,88,075. Subsequently, the Company raised its paid-up capital from Tk. 238,88,07,500 to Tk. 856,46,91,200 by the following way:

Sl. No. Particulars No. of Shares

Paid-up Capital (in Tk.) Remarks

1. Issuance of Bonus Shares from Revenue Reserve


2. Conversion of unpaid ADP Local Currency Loan of Tk. 186,58,16,200 into 186,58,162 Shares of Tk.100 each.


Total 856,46,912 856,46,91,200

Sd/- Dhaka, Dated : .06.2008


Titas Gas Transmission & Distribution Co. Ltd.

Certificate of Net Fixed Assets per Share

(Amount in Taka) Particulars 30 June 2007 30 June 2006 30 June 2005 30 June 2004 30 June 2003

Fixed Assets (at cost less depreciation)

1,188,79,46,176 1,069,20,63,282 978,92,35,953 907,60,83,019 877,73,57,483

Capital Work-in-Progress 29,55,926 134,81,43,608 136,44,46,255 129,78,64,523 7,29,73,250 Total 1,189,09,02,102 1,204,02,06,890 1,115,36,82,208 1,037,39,47,542 885,03,30,733 No. of Shares 47,77,615 30,14,648 30,14,648 30,14,648 30,14,648

Net Fixed Assets per Share 2,489 3,994 3,700 3,441 2,936

Sd/- Dhaka, Dated : 28.04.2008


(Figures in Taka)PARTICULARS 30 June 2007 30 June 2006 30 June 2005 30 June 2004 30 June 2003SOURCES OF FUNDS :

1. CAPITAL AND RESERVES 9,720,164,913 8,006,848,776 6,574,732,263 5,254,309,752 4,540,119,839 a) Share capital 2,388,807,500 1,507,324,000 1,507,324,000 1,507,324,000 1,507,324,000 b) Deposits for Share 655,879 881,483,800 760,097,800 257,797,800 - c) Capital reserves 754,693,866 754,693,866 754,693,866 754,693,866 754,693,866 d) Revenue reserves 6,576,007,668 4,863,347,110 3,552,616,597 2,734,494,086 2,278,101,973

2. LONG-TERM BORROWINGS 4,587,705,354 5,041,037,612 4,799,203,397 4,938,806,004 4,659,575,428

3. OTHER LONG-TERM LIABILITIES 9,719,941,283 7,691,597,312 6,407,514,626 5,395,943,762 4,587,608,255

4. TOTAL CAPITAL EMPLOYED ( 1+2+3 ) 24,027,811,550 20,739,483,700 17,781,450,286 15,589,059,518 13,787,303,522

APPLICATION OF FUNDS :5. FIXED ASSETS 11,890,902,102 12,040,206,890 11,153,682,208 10,373,947,542 8,850,330,733

a) Fixed assets (at cost- less accum. depreciation) 11,887,946,176 10,692,063,282 9,789,235,953 9,076,083,019 8,777,357,483 b) Capital work-in-progress 2,955,926 1,348,143,608 1,364,446,255 1,297,864,523 72,973,250

6. INVESTMENTS AND OTHER ASSETS 9,400,777,788 7,284,630,117 4,951,748,722 3,714,211,165 3,212,279,587

7. CURRENT ASSETS 16,818,303,481 14,740,331,177 16,098,059,520 14,712,946,309 13,824,970,053

8. CURRENT LIABILITIES 14,082,171,821 13,325,684,484 14,422,040,164 13,212,045,498 12,100,276,851

9. NET CURRENT ASSETS ( 7-8 ) 2,736,131,661 1,414,646,693 1,676,019,356 1,500,900,811 1,724,693,202

10. NET ASSETS ( 5+6+9 ) 24,027,811,550 20,739,483,700 17,781,450,286 15,589,059,518 13,787,303,522

(Figures in Taka)PARTICULARS 30 June 2007 30 June 2006 30 June 2005 30 June 2004 30 June 2003

1 INCOME FROM GAS SALES ACTIVITIES 38,957,171,618 34,539,725,659 30,306,440,814 26,712,347,671 24,222,436,057

2 COST OF SALES (2i + 2ii) 35,184,220,639 31,578,954,072 27,778,844,976 24,649,718,090 22,136,961,042 i) PURCHASE COST 33,171,175,342 29,795,493,908 26,176,396,748 23,162,529,298 20,763,061,137 ii) ADMINISTRATIVE & OTHER COST 2,013,045,297 1,783,460,164 1,602,448,228 1,487,188,792 1,373,899,905

3 OPERATING PROFIT (1-2) 3,772,950,979 2,960,771,587 2,527,595,838 2,062,629,581 2,085,475,015 4 OTHER INCOME (NON-OPERATIONAL) 245,090,197 283,458,157 111,838,405 157,618,111 156,677,630 5 TOTAL INCOME (3+4) 4,018,041,176 3,244,229,744 2,639,434,243 2,220,247,692 2,242,152,645

6 FINANCIAL COSTS (122,355,199) 50,020,086 127,359,777 158,365,217 157,652,348

7 NET PROFIT BEFORE CONTRIBUTION TO 'WPPF' (5-6) 4,140,396,375 3,194,209,658 2,512,074,466 2,061,882,475 2,084,500,297 8 WORKERS' PARTICIPATION IN PROFITS 197,161,732 152,105,222 119,622,594 98,184,880 99,261,919 9 NET PROFIT BEFORE TAXATION (7- 8) 3,943,234,643 3,042,104,436 2,392,451,872 1,963,697,595 1,985,238,378

10 PROVISION FOR TAXATION 1,367,993,729 978,066,040 897,169,452 834,731,938 830,568,416 11 NET PROFIT FOR THE YEAR AFTER TAXATION (9-10) 2,575,240,914 2,064,038,396 1,495,282,420 1,128,965,657 1,154,669,962

12 APPROPRIATION ACCOUNT 4,820,671,926 3,487,105,887 2,676,586,349 2,229,543,600 1,637,407,183 a) Profits brought forward from previous year 4,800,698,283 3,489,967,769 2,671,845,257 2,215,453,145 1,632,164,874 b) Prior years' adjustments 19,973,643 (2,861,882) 4,741,092 14,090,455 5,242,309

13 TOTAL PROFITS BROUGHT FORWARD (11+12) 7,395,912,840 5,551,144,283 4,171,868,769 3,358,509,257 2,792,077,145 14 INTERIM DIVIDEND (882,554,000) (750,446,000) (681,901,000) (686,664,000) (576,624,000)

15 BALANCE TRANSFERRED TO BALANCE SHEET(13-14) 6,513,358,840 4,800,698,283 3,489,967,769 2,671,845,257 2,215,453,145

The Company declared dividends for the last five years based on paid up capital as under:(Figures in Taka)

PARTICULARS 30 June 2007 30 June 2006 30 June 2005 30 June 2004 30 June 2003Paid up capital 2,388,807,500 1,507,324,000 1,507,324,000 1,507,324,000 1,507,324,000 DIVIDEND 882,554,000 750,446,000 681,901,000 686,664,000 576,624,000

Percentage oif Dividend 36.95% 49.79% 45.24% 45.56% 38.25%

C) Dividend :

Auditors’ Report under section 135(1) and paragraph 24(1) of part-II of Schedule-III of the Companies Act, 1994:

We, as the auditors having examined the Financial Statements of Titas Gas T&D Co. Ltd. for the year ended 30 June 2003, 2004, 2005, 2006 and 2007 and in pursuance of section 135(1) and paragraph 24(1) of Part-II of the Third Schedule of the Company Act, 1994 Report That:A) The statement of assets and liabilities of the company are as under:

B) The statement of operationg result of the company are as under:

89

D) The statement of cash flows of the company are as under:(figures in lakh taka)

Particulars 30 June 2007 30 June 2006 30 June 2005 30 June 2004 30 June 2003CASH FLOW FROM OPERATING ACTIVITIESNet profit before interest & Taxation 41,237.43 32,429.21 26,097.65 22,529.24 22,731.18 71,358.07 Depreciation 6,978.86 6,198.53 5,646.34 5,382.69 4,770.99 15,800.02 Provision for bad debts 3,173.35 3,157.13 3,120.96 2,622.54 2,296.11 8,039.61 Decrease in stores(Increase) (6,392.90) 4,851.02 (3,345.21) 3,247.64 753.45 655.88 Decrease in advance,deposits & Prepayments(Increase) 104.81 73.99 (757.28) (213.45) (238.14) (1,208.87) Increase In creditiors for gas purchase(Decrease) 9,401.92 (9,628.29) 7,986.94 4,061.83 (2,646.33) 9,402.44 Increase in creditors for Price Deficit Fund charge(Decrease) (2,814.60) 6,040.36 1,235.10 61.62 313.77 1,610.49 Increase in BAPEX charge(Decrease) (651.69) (1,918.83) (4,073.20) (8.42) 2,103.90 (1,977.72) Increase in other liabilities(Decrease) 1,293.37 (2,907.97) 2,304.61 4,038.23 (7.50) 6,335.34 Increase in Inter-company accounts (2,048.74) 944.91 200.35 304.05 1,820.69 2,325.09 Increase in gratuity(Decrease) 18.29 16.30 19.75 1.66 1.43 22.84 Increase in pension fund 367.94 (69.76) 243.63 229.42 266.95 740.00 Increase in provident fund(Decrease) 105.71 139.04 70.91 (16.45) (10.16) 44.30 Increase in Workers Profit Participation fund(Decrease) 569.79 390.14 (6.32) 143.61 422.44 559.73 Decrease in accounts receivable(Increase) (8,511.48) (1,621.16) (21,271.31) (18,783.58) (5,393.67) (45,448.56) Interest paid (1,805.08) (2,008.17) (1,428.53) (2,903.06) (2,874.15) (7,205.74) Income tax paid (10,970.38) (9,667.46) (7,367.63) (6,141.96) (5,971.18) (19,480.77) Net Cash from operating activities (11,180.83) (6,010.22) (17,420.89) (7,973.63) (4,391.40) (29,785.92) CASH FLOWS FROM FINANCING ACTIVITIES - Share capital 6.56 1213.86 5,023.00 2,577.98 1,701.54 9,302.52 Proceeds from long-term loan 447.47 245.37 2,268.61 7,369.81 10,137.54 19,775.96 Payment of long-term loan (4,845.66) (4,882.69) (4,213.56) (5,197.90) (7,161.09) (16,572.55) Dividend paid (8,825.54) (7,504.46) (6,819.16) (6,866.64) (5,766.24) (19,452.04) Net cash from financing activities (13,217.17) (10,927.92) (3,741.11) (2,116.75) (1,088.25) (6,946.11) CASH FLOW FROM INVESTING ACTIVITIES - Fixed deposit (9,626.32) (16,726.55) (7,144.16) (459.90) (260.20) (7,864.26) Security received from customers 8,206.47 6,094.65 4,306.11 3,730.49 3,721.74 11,758.34 Decrease in other assets(Increase) (174.97) 285.20 116.54 (105.95) (74.68) (64.09) Acquisition of fixed assets & WIP (6,196.80) (12,473.51) (10,675.01) (19,461.38) (17,849.36) (47,985.75) Increase in employees loan (69.28) (72.35) 175.71 (495.17) (859.07) (1,178.53) Net cash from investing activities (7,860.90) (22,892.56) (13,220.81) (16,791.91) (15,321.57) (45,334.29) Net increase in cash & cash equivalents 8,978.53 (7,401.49) (8,285.16) (4,353.05) 1,929.96 (10,708.25) Cash & cash equivalents at beginning of the year 2,795.01 10,196.50 18,481.66 22,834.71 20,904.75 62,221.12 Cash & cash equivalents at end of the year 11,773.54 2,795.01 10,196.50 18,481.66 22,834.71 51,512.87

Sd/-Dhaka, Dated : 28.04.2008. Khan Wahab Shafique Rahman & Co.

Chartered Accountants

TITAS GAS TRANSMISSION & DISTRIBUTION CO.LTD.Cash flow statement

90

91

Auditors Certificate regarding calculation of EPS and other Ratios as per Direct Listing Rules-2006: We have examined the following earning per share (EPS) and analysed the other ratios of Titas Gas T&D Co. Ltd. for the years ended 30 June 2003, 2004, 2005, 2006 and 2007, which have been produced by the management of the company to us. The preparation of the EPS and other ratio analysis is the responsibility of the Company's management. These are prepared based on the audited financial statements of the Company. Our responsibility is to review them and certify as to whether they have been properly prepared using acceptable principles on the basis of financial statements for the years ended 30 June 2003, 2004, 2005, 2006 and 2007.

Based on our review, we certify that the company has properly prepared the EPS and ratio analysis using acceptable principles on the basis of financial statements for the years ended 30 June 2003, 2004, 2005, 2006 and 2007.

Item 2007 2006 2005 2004 2003 A) Liquidity Ratio: 1 Current Ratio 1.19 1.11 1.12 1.11 1.14 2 Quick Ratio 1.07 1.02 1.00 1.02 1.02 B) Operating Ratio: 3 Accounts Receivable Turnover Ratio 4.01 4.42 4.99 5.05 4.74 4 Asset Turnover Ratio 3.23 3.19 3.06 2.90 2.72 C) Profitability Ratio: 5 Gross Margin Ratio 0.15 0.14 0.14 0.13 0.14 6 Operating Income Ratio 0.10 0.09 0.08 0.08 0.09 7 Net Income Ratio (Before Tax) 0.10 0.09 0.08 0.08 0.09 8 Return on Assets Ratio 0.24 0.22 0.18 0.16 0.17 9 Return on Equity 0.21 0.18 0.17 0.15 0.17 10 Earning per Share 539 685 496 374 383 D) Solvency Ratio: 11 Time Interest Earned Ratio (Based on profit

before Interest, WPPF and Tax) 22.3 16.2 12.2 7.7 7.8

12 Debt Equity Ratio 0.52 0.81 0.50 0.54 0.55 13 Prov. for Bad Debt Ratio (Prov. for Bad &

Doubtful Debts/Total Receivables) 0.03 0.029 0.03 0.027 0.027

As on 30-06-2007 the paid-up capital of the Company was Tk. 238,88,07,500.00 divided into 47,77,615 ordinary shares of Tk. 500 each. The Company in its Extra Ordinary General Meeting held on October 24, 2007 decided to split up its shares from Tk. 500 each to Tk. 100 each and the diluted paid-up capital of the Company stands as-

Sl No Particulars No. of

Shares Paid-up Capital

(in Tk.) Remarks 1 Splitting of the original value of

Shares as on 30th June, 2007 from Tk. 500 each to Tk. 100 each.


2 Issuance of Bonus Shares from Revenue Reserve


3 Conversion of unpaid ADP Local Currency Loan of Tk. 186,58,16,200 into 186,58,162 Shares of Tk.100 each.


Total 856,46,912 856,46,91,200

Considering the above events-

The Diluted Earning Per Share Stands at (Tk.257,52,40,914 ÷ 8,56,46,912 Shares)=Tk. 30.07 as on 30th June, 2007.

Sd/- Dhaka, Dated: 28.04.2008


CRAB Ratings OIL & GAS

92

TITAS GAS TRANSMISSION AND DISTRIBUTION COMPANY LIMITED

Present Rating Long Term : AA3

Date of Rating : 9th March 2008

Validity : 6 Month Analyst:

Enam Al Quddus

2005-06 2006-07

Revenue (Mil TK) 34,539.73 38,957.17

Operating Profit (Mil TK) 2,960.77 3,772.95

Profit after Tax (Mil TK) 2,064.04 2,575.24

ROE 28.31% 29.05%

ROA 6.23% 7.14%

Gross Profit Margin 13.74% 14.85%

Operating Profit Margin 8.57% 9.68%

Market Share of 4 Natural Gas Distribution Companies as on June 2007

(on the basis of gas sales in mmcm)

74%

3%18% 5%

Titas Gas Paschimanchal Gas Bakhrabad Gas Jalalabad Gas

1.0 RATIONALE

Credit Rating Agency of Bangladesh Limited (CRAB) has assigned “AA3” (pronounced Double A Three) rating in the Long Term and “ST-2” rating in the Short Term to Titas Gas Transmission & Distribution Company Limited (TGTDCL). The rating takes into account TGTDCL’s position as the leading natural gas utility of the country, its strategic importance as the biggest supplier of natural gas to power plants (PDB and others) and its key franchise area of greater Dhaka region. Rating reflects regulatory protection Ratings of regulated/state controlled utility companies factor in the protection that regulation provides. We believe that regulators (Government of Bangladesh) will generally ensure that TGTDCL, which provides an essential service, remain financially solvent. Rating of TGTDCL strongly factor in the exclusive nature of its service territory, which is the greater Dhaka, greater Mymensingh and Brahmanbaria districts. Presently, it has approx. 74% market share with a customer base comprising 26 power plants (PDB and private sector), 4 fertilizer co., 3,956 industrial, 9,410 commercial and 1.2 million domestic connections. There is a huge potential demand for power and natural gas in its franchise area. Strategic and commercial importance of this region and TGTDCL’s role in the smooth functioning of economic activity is also factored in the rating analysis.


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Regulated rates form core base of earnings and cash flow Rates for gas sales and distribution margins are set by Ministry of Power, Energy and Mineral Resources. These rates and margins are revised time to time. CRAB believes that whatever methodology is used, rates are designed to cover costs and allow the opportunity to earn a regulated rate of return. Regulated rates are positive to a company’s creditworthiness, in that they ensure a certain level of earnings which are moderate but predictable. High levels of system loss reduce potential revenue earnings The level of system loss in recent years (5-7% per annum) is very high. Lost revenue on unaccounted for gas is estimated to be TK 2,131 million in 2006-07. CRAB believes that although system loss cannot be totally eliminated, it can be minimized to a more acceptable level. Revenue Collection has improved as a result of increased disconnection and litigation Increased disconnection effort and litigation over arrears has resulted in improved receivables performance. Steps have been taken to reduce receivables of the Govt/semi-Govt. customers and to bring down the receivables of the private sector customers to 3 months of average bill. Other issues Regulated rates and lack of competition provide a level of certainty in expected revenues, margins, and returns. This is a major reason why many financial ratios have limited usefulness for this analysis. 2.0 INDUSTRY AND REGULATORY OVERVIEW 2.1 Organizational Structure of the Sector The natural gas sector in Bangladesh can be divided into four distinct segments i.e. exploration, production, transmission & distribution. This sector is dominated by Bangladesh Oil, Gas & Mineral Corporation (Petrobangla), a sector corporation which has presence in all the four segments. Transmission and distribution of natural gas (downstream segment) is entirely controlled by Petrobangla. Exploration and production (upstream segment) is made up of International Oil Companies (IOCs) along with Petrobangla. Overall regulatory function is provided by the Energy and Mineral Resources Division of the Ministry of Power, Energy and Mineral Resources (MPEMR). Bangladesh Energy Regulatory Commission (BERC) has recently been formed to regulate the oil, gas and power sectors. However, the BERC is still in the process of being staffed up and needs further institutional strengthening to perform its tasks more effectively.


94

Figure 1: Bangladesh Natural Gas Industry Structure 2.2 Physical Gas Market Current Gas Demand Scenario Total gas consumption in Bangladesh in 2006-07 amounted to 562 BCF1. The key gas consumers in Bangladesh are the power, fertiliser and non-bulk consumers. Power Sector: The Bangladesh Power Development Board (PDB), the Bangladesh Rural Electrification Board (REB) and the independent power producers (IPPs) are the major players who generate and supply electricity to the national grid. In addition to electricity supplied to the grid, there is also substantial off grid small power generation located in industrial and commercial sectors. In the year 2006-07, the power sector accounted for about 57% of total gas consumed in Bangladesh. Fertiliser Sector: There are seven urea-ammonia plants that consume natural gas for manufacturing urea. Of these seven plants, six are owned and operated by the Bangladesh Chemical Industries Corporation (BCIC) and manufacture urea for the domestic market. The seventh plant, a joint venture plant owned and operated by the Karnaphuli Fertilizer Company Limited (KAFCO) at Chittagong, exports output that is not consumed in the domestic market. In the year 2006-07, the fertiliser sector accounted for about 13% of total gas consumed in Bangladesh. Non-bulk Sector: The non-bulk sector comprises industrial, captive, commercial, seasonal, domestic, tea estate, and CNG categories. In the year 2006-07, the non-bulk sector accounted for about 31% of total gas consumed in Bangladesh.

1 Source: Petrobangla


95

Gas Consumption in Bangladesh in 2006-07

44%

13%13%

16%

11% 3%Power

Fertilizer

Captive Power

Industrial

Domestic

Others

Figure 2: Category wise Gas Consumption2

Natural Gas is supplied to end-users by four distribution companies, all of which are fully owned and controlled by Petrobangla: 1. Titas Gas Transmission and Distribution Company Limited (TGTDCL) 2. Bakhrabad Gas Systems Limited (BGSL) 3. Jalalabad Gas Transmission and Distribution Systems Limited (JGTDSL) 4. Paschimanchal Gas Company Limited (PGCL) Recently, Rupantarito Prakritik Gas Company Limited (RPGCL), another Petrobangla company, has commenced CNG supply in Bangladesh.

Market Share of 4 Natural Gas Distribution Utilities (on the basis of gas sales in mmcm)

TGTDCL11204.1

74%

PGCL498.46

3%

BGCL2785.55

18%

JGTDCL705.761

5%

Figure 3: Market Share of Gas Distribution Companies in 2006-073

2 Source: Petrobangla 3 Source: Titas Gas T&D Co. Ltd


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Table 1: Number of users of gas distribution companies as on October 20074

Power Fertilizer Industrial Commercial Other* Domestic Total

TGTDCL 26 4 3,956 9,410 681 1,254,277 1,268,354

BGSL 5 3 989 40,139 154 403,777 408,968

JGTDSL 3 1 45 908 134 109,672 110,763

PGCL 3 - 48 191 15 32,212 32,471

Total 37 8 5,038 14,548 984 1,799,938 1,820,556 * includes Feed Gas for CNG, seasonal, Captive Power etc. All the four gas distribution companies have their exclusive franchise areas. At present, TGTDCL dominates the sector with a market share of approx. 72%. Its franchise area is the mid-eastern region of Bangladesh i.e. greater Mymensingh, greater Dhaka and brahmanbaria districts. It is followed by BGSL with a market share of 19%, whose franchise area is the greater Chittagong, greater Noakhali and greater comilla region (excluding brahmanbaria). BGSL is followed by JGTDCL and PGCL whose respective franchise areas are greater sylhet district and northwestern part of the country. Current Gas Transmission Scenario The gas transmission function in Bangladesh is carried out by the Gas Transmission Company Limited (GTCL) and partly by TGTDCL. From the point of view of creating an efficient gas market structure, the separation of the gas transmission function from the gas distribution function is a very positive development. In this respect, Bangladesh is ahead of gas markets like Thailand and India, where the transmission and distribution functions continue to be bundled together. Some key issues relating to current gas transmission in Bangladesh are: ⇒ A shortage of producing gas fields in the south of Bangladesh – these would be

strategic for regional supply support, and to minimize transmission capex required in future.

⇒ The relationship between GTCL and other state companies / parties is not on the basis of stand-alone commerciality.

⇒ Given high prospect of new discoveries in off-shore regions, the transmission system needs to be developed to accommodate flexibility and the potential diversification of future supply sources.

Current Gas Supply Scenario Three Petrobangla Companies and four International Oil Companies (IOCs) currently supply gas to the domestic market in Bangladesh. Petrobangla dominate production with a 64% share of total gas production. The gas market was extremely tight until early 2005. It was only when the Unocal operated Moulavi Bazar gas field started supplying gas to the domestic grid in March 2005 that demand shortages were addressed.

4 Source: Petrobangla MIS October 2007


97

0

100

200

300

400

500

600

in BCF

1992-93

1994-95

1996-97

1998-99

2000-01

2002-03

2004-05

2006-07

year

Annual Natural Gas Production

Figure 4: Natural Gas Production Trend5

Table 2: Company and Field wise Natural Gas Production6

Production of Natural Gas in 2006-07 by Fields

Company Field in BCF

TITAS 156.73

BAKHRABAD 12.42

HABIGANJ 95.04

NARSHINGDI 9.19

BGFCL

MEGHNA 0.57

SYLHET 3.494

KAILASHTILA 30.94

RASHIDPUR 25.087 SGFL

BEANIBAZAR 5.752

SALDANADI 4.719 BAPEX

FENCHUGANJ 14.43

Subtotal Petrobangla 358.372

CAIRN SANGU 39.839

MOULOVIBAZAR 38.14

JALALABAD 70.59 CHEVRON

BIBIYANA 30.88

NICO FENI 4.365

TULLOW BANGORA 19.89

Subtotal IOC 203.704

Total 562.076

5 Source: Petrobangla 6 Source: Petrobangla


98

Gas Supply Issues Some key issues relating to current gas supply in Bangladesh are: ⇒ Uneconomic pricing of gas undermines the financial strength of Bangladesh’s

upstream companies ⇒ A lack of exploration drilling by both state owned companies and IOCs in the

recent past ⇒ Uncertain level of gas reserves on key existing fields such as Titas and Habiganj

exposing the market to significant levels of risk ⇒ Demand driven production operations and a short term philosophy with regard to

operation and maintenance at state owned fields 3.0 BACK GROUND AND BUSINESS 3.1 Fact Sheet Name of the company Titas Gas Transmission & Distribution Company Limited

Sector Oil and Gas

Constitution Public Limited Company

Registered Office Titas Gas Bhaban, 105 Kazi Nazrul Islam Avenue, Kawran Bazar, Dhaka.

Date of Incorporation 20 November, 1964

Chief Executive Officer Engr. Md. Abdullah

Auditors Khan Wahab Shafique Rahman & Co.

Business year 01 July – 30 June

Authorized TK 20,000.00 Million Share Capital (as on 31st October 2007) Issued and paid up TK 6,698.87 Million

Shareholding Pattern 100% owned by Bangladesh Oil, Gas & Mineral Corporation (Petrobangla), which is fully owned by Government of Bangladesh

3.2 Historical Background Titas Gas T & D Co. Ltd. (TGTDCL) was formed in November 1964 as a joint Stock Company (Under the Company’s Act 1913) with an authorized capital of Taka 17.8 million only. Ninety percent of the shares were subscribed by the then central Government of Pakistan and remaining ten percent by the Pakistan Shell Oil Company. As of last audited accounts (30th June 2007), authorized and paid-up capital of TGTDCL was TK 3,500 million and TK 2,388.81 million respectively. In an EGM held on 24th October 2007 TGTDCL Board decided to increase authorized capital to TK 20,000 million and paid-up capital to TK 6,698.875 million by issuing bonus shares amounting TK 4,310.06 million. The mission of this company was to transmit and distribute natural gas to the Dhaka city, the then provincial capital of Pakistan, from the discovered gas field called “Titas” located on the bank of the River Titas, within the close vicinity of the present Brahmanbaria district of Bangladesh.


99

The basic objective of the Company was to construct, own and operate natural gas transmission & distribution facilities in the mid-eastern region of Bangladesh i.e. greater Comilla, Mymensingh and Dhaka district with the right of purchasing, transmission, distribution, sales and disposal of natural gas within the jurisdiction of the three greater districts. In March 26, 1972, Government has formed “Bangladesh Oil, Gas & Mineral Corporation (BOGMC) under the Presidential Executive Order and TGTDCL has become an enterprise of BOGMC. TGTDCL’s 90% share capital of the Govt. of Pakistan naturally vested to the Govt. of the People’s Republic of Bangladesh and the rest 10% share capital of Pakistan Shell Oil Company was transferred to the newly formed Bangladesh Shell Oil Company. During 1975, under the nationalization program, Govt. has bought back 10% share of Shell Oil Co. and Titas Gas T&D Co. Ltd. has become a 100% Government owned Company. Meanwhile, during August 1974, Bangladesh Oil & Gas Corporation (Petrobangla) and during October 1975, Ministry of Energy & Mineral Resources had been formed. TGTDCL has been placed under the administrative control of the newly formed ministry along with Petrobangla and its companies. 3.3 Corporate Governance TGTDCL is fully owned by Bangladesh Oil, Gas & Minerals Corporation (Petrobangla). All the nine member of board of directors are nominated by GoB. Observations on corporate governance of TGTDCL are as follows:

Table 3: Board of Directors of TGTDCL

Name Designation

Mr. Mohammad Mohsin, Chairman Secretary, Energy & Mineral Resources Division

Mr. M. Mokhlesur Rahman Chairman, BCIC

Mr. Jalal Ahmed Chairman, Petrobangla

Mr. Md. Showkat Ali Chairman, PDB

Major M. Moktadir Ali (Retd) Director (PSC), Petrobangla

Mr. Abdul Hafiz Chowdhury Vice President, MCCI & Partner, Rahman Rahman Haq

Mr. M. Hossain Khaled President, DCCI

Mr. Mohammad Humayun Kabir P.S. to Special Assistant, Energy & Mineral Resources Division

Engr. M. Abdullah Managing Director

The Board of Directors comprises representatives from MPEMR, Petrobangla, PDB, BCIC and private sector. The major responsibilities of the Board include reviewing the ongoing activities, formulating business policies and strategies, providing general guidelines to the management, and approving specific proposals. All the Directors of the Board are Non-Executive Directors except the Managing Director. TGTDCL has held sixteen board meetings last year. The Board does not have any sub committee. 3.4 Accounting Quality The financial statements appear to contain the relevant mandatory disclosures under the regulatory framework, including compliance with the provisions of BAS. The annual financial statements have been audited by reputed Chartered Accountants


100

Firms. Auditors’ report for the period between 2003-04 to 2006-07 reveal that there are a few unresolved issues regarding the financial statements prepared by the company management. Some of the audit objections are highlighted below: 1. Carrying amount of fixed assets as at balance sheet date was TK 11,887.94

million. Since physical inventory of immovable assets as of 30.06.07 was not carried out, the physical existence of these assets remained unconfirmed on balance sheet date. However, the management informed that physical inventory of movable assets has been conducted at year end and duly reconciled. But, in regard to immovable assets, it is the company’s policy to conduct full inventory in every 5 years interval which will be due on 2008-09.

2. Trade debtors include outstanding debts of TK 3,639.40 million which is unrealised over the years despite reportedly best efforts for recovery by management. The said outstanding debts include due from Govt. /Semi Govt. organisations to the tune of TK 85.50 million. Out of net unrealised or doubtful of recovery debts of TK 3,553.90, provision were made to the extent of TK 2,644.36 million or 72.66% of doubtful debt. Provision seems to be inadequate in consideration of doubtful debt.

3. Regarding Pension Fund in the Balance Sheet, there has not been actual provision in the financial statements calculating actual liability as per BAS-19.

Finance Division is headed by a qualified chartered accountant. There is an Internal Audit Department which is under direct supervision of the Managing Director. The department is headed by a Deputy General Manager for the purpose of conducting internal audit and monitoring the conformity of the company activities with the stated policy and guidelines. Separate external audits are conducted by GoB, lending agencies and external auditors. 4.0 MANAGEMENT AND SYSTEMS Management of TGTDCL is led by its Managing Director, Engr. M. Abdullah. TGTDCL’s number of permanent employees as on 30 June 2007 are 2,566 (832 officers and 1,734 staffs) against approved number of 3,622 (1,176 officers and 2,446 staffs). As per the approved organogram, TGTDCL has 14 divisions along with Audit dept. and Board of investment cell which are MD’s direct report. 14 functional divisions are 1) Corporate Division 2) Administration Division 3) Planning & Development Division 4) General Services Division 5) Operations Division 6) Engineering Services Division 7) Finance Division 8) Vigilance Division 9) Metro Dhaka Marketing Division (North) 10) Metro Dhaka Marketing Division (South) 11) Regional Marketing Division (Narayangonj) 12) Regional Marketing Division (Mymensingh) 13) Regional Marketing Division (Gazipur) 14) Metro Dhaka Revenue Division. The company operates from its own head office complex at Titas Bhaban, Kawranbazar C/A, which is in the centrally located business area of Dhaka City. The office is fully furnished with all modern office facilities and logistics. The office is also equipped with security system with telephone, Fax as well as electronic mail. 4.1 Distribution Network The gas supply area of the Company has been gradually extended to areas of Greater Dhaka, Greater Mymensingh and Brahmanbaria which includes Dhaka


101

Metropolitan city & suburbs, Tongi, Joydevpur, Gazipur, Mirzapur, Tangail, Savar, Dhamrai, Manikaganj, Aricha, Narayanganj, Sonargaon, Rupganj, Araihazar, Jinjira, Keraniganj, Munshiganj, Mirkadim, Brahmanbaria, Bhairab Bazar, Ashuganj, Narsingdi, Ghorashal, Madhabdi, Sreepur, Mymensingh, Netrokona, Jamalpur, Sherpur, Kishoreganj, Tarakandi, Bhaluka, Trishal & Gaffergaon. Presently, Titas system is receiving gas from Titas, Habiganj, Narsingdi & Bakhrabad Gas Fields under Bangladesh Gas Fields Co. Ltd. and from Rashidpur, Kailashtila, Beanibazar Gas Fields under Sylhet Gas Fields Co. Ltd., Bangura Gas Field of Tullow and Jalalabad Gas Field of Chevron. The Company own and operate 613.11 Km of Transmission pipelines (6”DN thru’ 24” DN) and 9,680.31 Km of Distribution & Service lines (3/4”DN thru’ 12”DN) as of June 2007. 5.0 KEY OPERATIONAL UPDATES 5.1 Gas Sales

Annual Gas Sales

0

2000

4000

6000

8000

10000

12000

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

year

mmcm

Figure 5: Gas Sales Trend of TGTDCL7

Annual gas sales of TGTDCL have grown steadily up to 2000-01. After a slight drop in 2001-02, gas sales have moved to a higher growth curve in the next few years. CAGR for 1991-92 to 2000-01 was 7.40%. But CAGR for the 2001-02 to 2006-07 was 12.52%. However, given the uncertainty of finding new gas fields, growth rate is expected to remain moderate in the short to near term.

7 Source: Titas Gas T&D Co. Ltd


102

Category w ise gas sales

0

1000

2000

3000

4000

5000

6000

2002-03 2003-04 2004-05 2005-06 2006-07

year

mmcm

Pow er

Fertilizer

Industrial

Captive Pow er

Domestic

Others

Figure 6: Category wise Gas Sales8

Power plants (PDB, IPP, SPP and captive power) remain the largest users of TGTDCL’s gas. In fact, share of electricity generation out of all customer categories has increased from 50% in 2003-04 to 57% in 2006-07. Share of fertilizer, industrial and domestic use remain mostly same over the last few years. 5.2 Customer Connection

Table 4: Category wise customer connection9

Power Fertilizer Industry Commercial Other* Domestic Total

June 2005 19 4 3,172 8,254 511 1,029,772 1,041,732

June 2006 19 4 3,438 8,680 554 1,097,478 1,110,175

June 2007 26 4 3,874 9,232 665 1,226,153 1,239,954

* includes Feed Gas for CNG, seasonal, Captive Power etc. TGTDCL’s customer connection has been growing steadily in most of the customer segments. As per the annual budget for 2007-08, new connections are projected for industrial, commercial and domestic segments.

8, 9 Source: Titas Gas T&D Co. Ltd


103

5.3 Pipe Line Construction

Pipe Line Construction

0

2000

4000

6000

8000

10000

12000

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

year

KM

During the Year Cumulative

Figure 7: Pipe Line Construction trend The Company own and operate 10,293 KM of transmission and distribution line as of June 2007. As per the budget, a further 909 km. of pipelines is expected to be constructed in 2007-08. 5.4 System Loss System Loss or unaccounted for Gas, defined as the difference between volume of gas purchased and sold in given period is still very high. However, in recent years, system loss as percentage of total gas purchase has decreased significantly. Trend of system loss in percentage for the last three years (2004-05, 2005-06, 2006-07) and July ‘07-Dec ‘07 may be mentioned.

2004-05 7.04%

2005-06 6.47%

2006-07 5.26%

July ‘07-Dec ‘07 3.80%

Fraudulent use is considered to be the major reason for system loss. Other reasons for system loss are less estimation of gas consumption by unmetered domestic consumers, pipeline leakages, line pack, metering error and loss sustained at the time of gas connection, disconnection, reconnection and killing of risers etc.


104

0

100

200

300

400

500

600

700

800

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

year

mm

cm

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

System Loss in mmcm System Loss %

Figure 8: System Loss Trend

Table 5: Cost of unaccounted for gas

2002-03 2003-04 2004-05 2005-06 2006-07

Volume of unaccounted for gas in mmcm 508 656 693 704 622

Weighted average cost/CM (in Tk) 2.50 2.50 2.67 2.74 2.80

Cost of unaccounted gas (in million Tk) 1,270.03 1,639.16 1,849.52 1,930.16 1,742

Weighted average sales price/CM (in Tk) 3.06 3.11 3.28 3.35 3.43

Loss of revenue on unaccounted gas (in million Tk)

1,556.38 2,007.13 2,274.67 2,361.07 2,131

6.0 FINANCIAL UPDATE 6.1 Receivables Management

Table 6: Historical performance of trade receivables (In million Taka)

2002-03 2003-04 2004-05 2005-06 2006-07

Power (PDB) 1,645 2,421 3,364 2,982 3,850

Power (Private) 709 784 778 1,275 1,010

Fertilizer 657 613 907 831 1,029

Industrial 4,042 4,656 5,133 5,036 5,286

Captive Power 1,037 1,204 1,435 1,543 1,616

Feed Gas for CNG 19 45 68 92 127

Domestic 2,873 3,131 3,323 3,425 3,119

Commercial 389 416 397 381 381

Seasonal 76 55 47 47 47

Gross trade receivables 11,447 13,325 15,452 15,612 16,465

Less: Provision for bad and doubtful debts 1,437 1,700 2,011 2,327 2,644

Net trade receivables 10,010 11,625 13,441 13,285 13,821

Receivables Turnover in months 4.97 4.93 5.03 4.70 4.23


105

0

4000

8000

12000

16000

20000

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

year

milli

on ta

ka

0%

4%

8%

12%

16%

20%

Gross trade recievables Net trade recievable

Provision for bad & doubtful debt %

Figure 9: Trade Receivables Trend Trade receivables have been growing in the last five years with the growth of sales revenue. Present provisioning policy of the company for bad or doubtful debt is to make a provision of 3% of non-bulk receivables as at the balance sheet date. However, total maintained provision is still just 16% of gross receivables. This seems inadequate considering that 22% of all receivables are at least three years old.

Table 7: Aging of trade debtors as on 30th June 2007 (In million Taka) Debtors Category Up to 2004-05 2005-06 2006-07 Total %

Power (PDB) 86 31 3,732 3,849 23%

Power (Private) 16 - 994 1,010 6%

Fertilizer 3 0 1,026 1,029 6%

Industrial 1,963 514 2,809 5,286 32%

Captive Power 87 11 1,519 1,617 10%

Feed Gas for CNG 1 - 127 128 1%

Domestic 1,243 192 1,685 3,119 19%

Commercial 193 32 156 381 2%

Seasonal 47 - - 47 0%

Total 3,639 779 12,047 16,466 100%

% 22% 5% 73% 100%

Table 8: Sector wise trade debtors as on 30th June 2007

(In million Taka) Government 171

Government Colonies 389

Semi-govt. customers (BCIC, PDB other Corporations) 5,170

Private (including TK 585.52 million from customers under injunction) 7,769

Disconnected (including TK 1,535.30 million from customers under litigation) 2,966

Total 16,465

A break down of trade receivables by major customer categories shows that industrial customers are the biggest trade debtors of the company. Receivables from


106

this category amounted to TK 5,286 million as on 30 June 2007, which was 32% of all receivables (1.63 months equivalent of total sales). This category is followed by PDB with receivables of TK 3,849 million or 23% of all receivables. Domestic or residential categories had 19% share with TK 3,119 million receivables. However, a three year aging analysis shows that most of arrears of PDB are within the last financial year. But for industrial category, 37% of receivables are at least three years old. For domestic category, approx. 40% of arrears are at least three years old. Increased disconnection effort and litigation over arrears has resulted in improved receivables performance. Steps have been taken to reduce receivables of the Govt/semi-Govt. customers and to bring down the receivables of the private sector customers to 3 months of average bill. 2002-03 2003-04 2004-05 2005-06 2006 - 07

Receivables Turnover 2.46 2.47 2.42 2.58 2.87

Receivables Turnover in months 4.97 4.93 5.03 4.70 4.23

Analysis of receivables turnover shows RTM (Receivables Turnover in months) has improved significantly in the last few years. Starting from 149 days equivalent of 5 months in 2002-03, RTM has decreased to 4.23 months in 2006-07. 6.2 Profitability & Earnings

Table 9: Gas Price Distribution

Effective from 01.01.2005

Petrobangla Margin @ 45%

Customer Category

End user

prices*

GoB margin @ 55%

Price deficit fund

margin

BAPEX margin

Wellhead margin

Transmission

margin

Distribution

margin Total

Power 2.61 1.436 0.317 0.048 0.250 0.320 0.240 1.175

Fertilizer 2.24 1.232 0.268 - 0.250 0.320 0.170 1.008

Captive Power 3.73 2.052 0.456 0.048 0.250 0.320 0.606 1.680

Industrial 5.23 2.877 0.766 0.048 0.250 0.320 0.970 2.354

Tea estate 5.23 2.877 0.766 0.048 0.250 0.320 0.970 2.354

Commercial 8.23 4.527 1.366 0.048 0.250 0.320 1.750 3.734

Seasonal 8.23 4.527 1.366 0.048 0.250 0.320 1.750 3.734 Feed Gas for CNG

2.47 1.359 0.324 0.048 0.250 0.320 0.170 1.112

Domestic 4.59 2.525 0.709 0.048 0.250 0.320 0.740 2.067

*Taka per cubic meter (CM) The above gas price distribution matrix is used from determining margins for each of the parties involved in the gas supply value chain. Under the present formula, GoB keeps 55% margin out of each taka received from end users. The rest 45% is distributed among different Petrobangla organizations. Distribution margin (to be retained by TGTDCL) for different customer categories ranges from 6.8% to 21%.


107

Table 10: Profitability Ratios

2002-03 2003-04 2004-05 2005-06 2006 - 07

ROE* 26.86% 23.05% 25.28% 28.31% 29.05%

ROA 4.51% 4.13% 4.90% 6.23% 7.14%

Gross Profit Margin 14.28% 13.29% 13.63% 13.74% 14.85%

Operating Profit Margin 8.61% 7.72% 8.34% 8.57% 9.68%

Net Profit Margin 4.77% 4.23% 4.93% 5.98% 6.61%

* ROE = Return on Equity (net profit after tax / Capital and Reserves) Profitability ratios of TGTDCL are showing increasing trend over the last five years of operations. Both ROCE and ROA have increased steadily as a result of increased revenue and net profit without substantial increase in new investment. Profit margins improved or remained stable reflecting government regulation on almost all of the income and expenditure items. Going forward, CRAB expects similar trend to continue in the near to mid term. Only a fraction of total revenue is retained by TGTDCL as distribution margin. This margin varies with customer categories. As a result, the following operating and net profit margin is calculated based on distribution margin retained by TGTDCL (assumed as 15%). 2002-03 2003-04 2004-05 2005-06 2006 - 07

Operating Profit Margin 57% 51% 56% 57% 65%

Net Profit Margin 32% 28% 33% 40% 44%

Table 11: Activity Ratios

2002-03 2003-04 2004-05 2005-06 2006 - 07

Fixed Asset Turnover 2.68 2.78 2.82 2.98 3.26

Payable Turnover 2.22 2.42 2.64 3.01 3.39

Payable Turnover in days 164 151 138 121 108

Fixed asset turnover has gradually improved as a result of increased sales revenue with stable fixed asset. Similarly, payable turnover has also showed an increasing trend. 6.3 Leverage TGTDCL has two types of long term loans in its book. a) Unsecured local currency loans received from Annual Development Program (ADP) of GoB through different projects. These loans had been received at different periods with the earliest loans received during 1973-74 and latest received during 2004-05. Tenure of these loans ranges from 11 to 24 years. Outstanding balance of local currency loans stood at TK 1,921.26 million as on 30 June 2007. b) Unsecured foreign currency loans received from Asian Development Bank and OECF, Japan for different projects. Tenure of these loans ranges from 10 to 12 years. Outstanding balance of FC loans (including exchange rate fluctuation) stood at TK 3,456.71 million. Debt-Equity Ratio is calculated by the following formula: Long term borrowing / (Long term borrowing + capital and reserve)


108

2002-03 2003-04 2004-05 2005-06 2006 - 07

Debt-Equity Ratio 51:49 48:52 42:58 39:61 32:68

Debt-equity ratio of TGTDCL has been improving steadily as a result of repayment of existing loan (both GoB and foreign loan) as well as absence of fresh large borrowings in recent years. 6.4 Coverage of Fixed Obligations: DSCR CRAB relies on debt service coverage ratio (DSCR) as the prime quantitative measure of a company’s financial strength. The DSCR is the ratio of cash from operations (CFO) to principal and interest obligations. DSCR of the last five years is shown below: 2002-03 2003-04 2004-05 2005-06 2006 - 07

DSCR 2.09 2.13 1.74 4.12 6.22

The following DSCR projection is prepared by TGTDCL management on the basis of the following assumptions: a) Gas purchase volume is assumed to increase by 5% from 2007-08 onward. b) System loss is assumed to be 2%. c) All incomes excluding gas sales and all expenditures excluding gas purchase are

assumed to increase by 5% annually. d) Interest rate is assumed @ 8% for GoB loans and @ 8% for foreign loans.

2007-08 2008-09 2009-10 2010-11 2011-12

DSCR 2.13 2.65 4.41 6.96 9.54

Most of the assumptions regarding DSCR projection seem to be realistic. CRAB places emphasis on the minimum projected DSCR (2.13:2007-08) as it will be stressed in case of any future revenue/expense volatility. CRAB draws comfort from the fact that conservative assumptions have been made regarding increase in accounts receivables, repayment of long term loans etc. CRAB believes that lower but more consistent (with higher certainty) level of cash flow increases credit profile. 6.5 Liquidity

2002-03 2003-04 2004-05 2005-06 2006 - 07

Current Ratio 1.14 1.11 1.12 1.11 1.19

Current ratios seem to be above the satisfactory level of above 1 in the last several years. However, accounts receivables’ share in current assets (last five years average: 81%) is still high.


109

ANNEXURE I CORPORATE INFORMATION Date of Incorporation: 20 November, 1964 Board of Directors

Mr. Mohammad Mohsin, Chairman Secretary, Energy & Mineral Resources Division

Mr. M. Mokhlesur Rahman Chairman, BCIC

Mr. Jalal Ahmed Chairman, Petrobangla

Mr. Md. Showkat Ali Chairman, PDB

Major M. Moktadir Ali (Retd) Director (PSC), Petrobangla

Mr. Abdul Hafiz Chowdhury Vice President, MCCI & Partner, Rahman Rahman Haq

Mr. M. Hossain Khaled President, DCCI

Mr. Mohammad Humayun Kabir P.S. to Special Assistant, Energy & Mineral Resources Division

Engr. M. Abdullah Managing Director

Auditors: Khan Wahab Shafique Rahman & Co., Chartered Accountant Management: Engr. Md. Abdullah, P.Engg. Managing Director

Engr. M Aminur Rahman Director (Operation)

Engr. Md. Mahbubul Alam General Manager, (Investment Board)

Engr. Khurshidul Hasan General Manager (General Services)

Mr. M Zahirul Alam, F.C.A Director (Finance)

Engr. Foad Ul Islam General Manager (Planning & Development)

Engr. Md. Khalid Hasan General Manager (Vigilance)

Mr. S M Faruk General Manager (Administration)

Mr. Khalequzzaman Faruk General Manager /Secretary (Corporate Division), In charge

Ms. Minara Begum General Manager (Metro Revenue), In charge

Engr. Md. Ashab Uddin General Manager (Regional Marketing Division, Gazipur), In charge

Engr. Nizamuddin Sarker General Manager (Metro Dhaka Marketing Division, North), In charge

Engr. SM Nazrul Islam General Manager (Regional Marketing Division, Narayangong), In charge

Engr. Amir Ahmed General Manager (Engg. Services Division), Additional charge

Engr. Mojibul Hoque General Manager (Metro Dhaka Marketing Division, South), Additional charge

Engr. Shahinur Alam General Manager (Regional Marketing Division, Mymensingh), Additional charge


110

ANNEXURE II Balance Sheet

Sources of funds: 2003-04 2004-05 2005-06 2006-07

1. CAPITAL & RESERVES

Share capital 1,507.32 1,507.32 1,507.32 2,388.81

Deposits for share 257.80 760.10 881.48 0.66

Capital reserves 754.69 754.69 754.69 754.69

Revenue reserves 2,734.49 3,552.62 4,863.35 6,576.01

Total 5,254.31 6,574.73 8,006.85 9,720.16

2. LONG TERM BORROWINGS

Unsecured loans - local sources 2,006.59 2,006.29 1,787.22 1,565.45

Unsecured loans - foreign sources 2,932.22 2,792.91 3,253.81 3,022.26

Total 4,938.81 4,799.20 5,041.04 4,587.71

3. OTHER LONG TERM LIABILITIES

Pension fund 444.74 469.10 462.11 498.91

Gratuity 3.84 5.81 7.44 9.27

Leave pay 100.38 107.22 120.30 132.22

General provident fund 163.95 171.04 184.94 195.51

Customers' & contractors' security deposits 4,683.04 5,654.34 6,916.80 8,884.03

Total 5,395.94 6,407.51 7,691.60 9,719.94

4. TOTAL CAPITAL EMPLOYED (1+2+3) 15,589.06 17,781.45 20,739.48 24,027.81

Application Of Funds:

5. FIXED ASSETS

Fixed assets (at cost less accumulated depreciation) 9,076.08 9,789.24 10,692.06 11,887.95

Capital work-in-progress 1,297.86 1,364.45 1,348.14 2.96

Total 10,373.95 11,153.68 12,040.21 11,890.90

6. INVESTMENTS & OTHER ASSETS

Long-term bank deposits 706.91 1,421.33 3,093.98 4,056.61

Loans to employees 846.37 828.80 836.03 842.96

Encashable securities of customers' & contractors' 2,160.93 2,701.63 3,354.62 4,501.20

Total 3,714.21 4,951.75 7,284.63 9,400.78

7. CURRENT ASSETS

Inventories of stores & other materials 833.42 1,167.94 682.84 1,322.13

Advances, deposits & prepayments 200.28 276.01 268.61 258.13

Trade debtors 11,626.32 13,441.36 13,287.76 13,821.57

Cash & bank balances (including cash in transit) 1,848.17 1,019.65 279.50 1,177.35

Other current assets 204.75 193.10 221.62 239.12

Total 14,712.95 16,098.06 14,740.33 16,818.30

8. CURRENT LIABILITIES (8i+8ii) 13,212.05 14,422.04 13,325.68 14,082.17

i) Group company accounts:

Payable for gas purchase & transmission 9,921.70 10,720.40 9,757.57 10,697.76

Payable for PDF & BAPEX margin 1,304.62 1,020.80 1,432.96 1,086.33

Group current accounts (7.99) 12.04 106.53 (98.34)

Total 11,218.32 11,753.24 11,297.06 11,685.75

ii) Other liabilities:


111

Creditors & accruals 1,292.28 1,745.63 1,015.38 1,383.84

Workers profit participation fund 126.61 126.38 165.40 222.32

Current portion of long term loans 574.82 796.79 847.85 790.27

Total 1,993.72 2,668.80 2,028.63 2,396.42

9. NET CURRENT ASSETS (7-8) 1,500.90 1,676.02 1,414.65 2,736.13

10. NET ASSETS (5+6+9) 15,589.06 17,781.45 20,739.48 24,027.81

INCOME STATEMENT

1. SALES 2003-04 2004-05 2005-06 2006-07

Gas sales revenue 26,350.54 29,913.65 34,080.05 38,407.72

Other operational income 361.81 392.79 459.67 549.45

Total 26,712.35 30,306.44 34,539.73 38,957.17

COST OF SALES (2i+2ii) 24,649.72 27,778.84 31,578.95 35,184.22

i) Purchase Cost:

Gas purchases 18,308.39 20,832.94 23,852.48 27,023.99

BAPEX margin 529.74 369.41 305.06 288.73

Gas transmission charge 1,281.46 1,743.56 2,192.63 2,583.83

Price deficit fund charge 3,042.94 3,230.48 3,445.32 3,274.62

Total 23,162.53 26,176.40 29,795.49 33,171.18

ii) Administrative & Other Cost:

Personnel costs 459.34 485.77 577.35 683.13

Professional services 13.36 12.75 12.67 15.45

Promotional costs 6.58 5.87 7.17 8.27

Power costs 21.98 22.12 20.18 23.08

Communication costs 3.67 4.14 4.67 5.23

Transport costs 56.86 53.68 56.07 65.32

Occupancy costs 30.91 34.02 31.04 40.87

Administrative costs 24.08 26.13 27.30 29.80

Miscellaneous costs 9.29 9.45 12.46 22.74

Transmission & distribution costs 25.60 38.00 62.92 40.52

Financial charges 3.98 1.30 1.05 6.38

Bad & doubtful debts 262.25 312.10 315.71 317.34

Depreciation 538.27 564.63 619.85 697.89

Petrobangla service charge 31.02 32.47 35.00 57.02

Total 1,487.19 1,602.45 1,783.46 2,013.05

3. OPERATING PROFIT (1-2) 2,062.63 2,527.60 2,960.77 3,772.95

4. OTHER INCOME (NON-OPERATIONAL) 157.62 111.84 283.46 245.09

5. TOTAL INCOME (3+4) 2,220.25 2,639.43 3,244.23 4,018.04

6. FINANCIAL COSTS

Interest cost 289.23 217.31 200.82 180.51

Less: interest income 130.86 89.95 150.80 302.86

Total 158.37 127.36 50.02 (122.36)

7. NET PROFIT BEFORE CONTRIBUTION TO WPPF (5-6) 2,061.88 2,512.07 3,194.21 4,140.40

8. WORKERS' PARTICIPATION IN PROFITS 98.18 119.62 152.11 197.16

9. NET PROFIT BEFORE TAXATION (7-8) 1,963.70 2,392.45 3,042.10 3,943.23

10. PROVISION FOR TAXATION 834.73 897.17 978.07 1,367.99

11. NET PROFIT FOR THE YEAR AFTER TAXATION (9-10) 1,128.97 1,495.28 2,064.04 2,575.24


112

ENTITY RATING SCALE: CORPORATE

Scale Definition

AAA

Triple A (Highest Safety)

Excellent financials, healthy and sustainable franchises, first rate operating environment, and exceptionally strong capacity for timely payment of financial commitments. Risk factors are negligible. Adverse circumstances are not likely to affect the timely payment of principal and interest as per terms.

AA1, AA2, AA3 Double A

(High Safety)

Strong financials, healthy and sustainable franchises, first rate operating environment with strong capacity for timely payment of financial commitments with low likeliness to be adversely affected by foreseeable events.

A1, A2, A3 Single A

(Adequate Safety)

Good financials, healthy and sustainable franchises, first rate operating environment, good capacity for timely payment of financial commitments, having low likeliness to be adversely affected by foreseeable events.

BBB1, BBB2, BBB3 Triple B

(Reasonable Safety)

Reasonable financials, defensible business franchises and stable operating environment, capacity for timely payment of financial commitments having moderate likeliness to be adversely affected by foreseeable events.

BB1, BB2, BB3 Double B

(Below Average Safety)

Nearly average financials, weak business franchises, and/or unstable operating environment. Capacity for timely payment of financial commitments having high likeliness to be adversely affected by foreseeable events.

B1, B2, B3 Single B

(Risk Prone)

Weak financials, weak business franchises, and/or unstable operating environment. Capacity for continued payment is contingent upon a sustained, favourable business and economic environment.

C

(Extremely Speculative)

Very weak financial strength, performance limited by one or more negative factors. Capacity for continued payment is dependent on external support and/or contingent upon a sustained, favourable business and economic environment.

D

(Default)

Extremely poor intrinsic financial strength, requiring periodic outside support or suggesting an eventual need for outside assistance, performance limited by one or more negative factors. Default is a real possibility.

* 1,2,3 refers respectively to - above average, average, and below average positions in the group Disclaimer Clause: Information used herein is obtained from sources believed to be accurate and reliable. However, CRAB does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Rating is an opinion on credit quality only and is not a recommendation to buy or sell any securities. All rights of this report are reserved by CRAB. Contents may be used by news media and researchers with due acknowledgement and credit to CRAB.

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