Condensed Consolidated

Interim Financial Statements as at and for the

Quarter ended 31 March 2011
(Un-audited)

Grameenphone Ltd.
Condensed Consolidated Statement of Financial Position
as at 31 March 2011
Assets

Notes

Non current assets

Property, plant and equipment, net
Intangible assets, net
Long term deposits
Current assets
Inventories
Deferred cost of connection revenue
Accounts receivable, net
Other receivables
Advances, deposits and prepayments
Short term investment
Cash and cash equivalents

As at
31 March 2011
Taka

As at
31 December 2010
Taka

4
5

70,029,218,275
6,708,090,348
12,656,194
76,749,964,817

71,696,092,118
6,991,416,098
12,594,949
78,700,103,165

583,904,436
467,798,350
5,864,284,408
1,015,627,376
1,568,340,829
2,156,249,371
26,620,104,672
38,276,309,442
115,026,274,259

834,355,326
484,842,481
5,247,945,772
928,020,269
1,621,637,839
2,753,729,110
18,931,502,552
30,802,033,349
109,502,136,514

13,503,000,220
7,840,225,942
14,446,452
1,880,178
2,139,729,365
27,400,022,775
50 899 304 932
50,899,304,932

13,503,000,220
7,840,225,942
14,446,452
1,880,178
2,139,729,365
24,532,545,482
48 031 827 639
48,031,827,639

289

268

446,574,936
5,019,805,838
10,089,767,067
179,246,157
15,735,393,998

444,639,879
5,019,805,838
11,201,083,512
162,876,392
16,828,405,621

11,485,342,280
4,470,215,887
1,924,796,852
2,691,832,447
17,673,815,451
173,908,297
54,659,905
574,695,337
9,342,308,584
48,391,575,040
115,026,274,259

10,183,877,792
4,814,490,250
2,248,977,889
2,451,869,531
15,738,404,448
155,699,144
38,263,621
581,904,397
8,428,415,914
44,641,902,986
109,502,136,514

7
8
9
10

Total assets
Equity and Liabilities
Shareholders' equity
Share capital
Share premium
Capital reserve
Deposit from shareholders
General reserve
Retained earnings

Non controlling interest

Non current liabilities
Deposit from agents and subscribers
Finance lease obligation
Deferred tax liabilities
Long term provisions

11

Current liabilities
Accounts payable
Payable to government and autonomous bodies
Unearned revenue
VAT payable
Income tax provision
Accrued interest
Other liabilities
Deferred connection revenue
Provision for expenses

12
13

14

15

Total equity and liabilities

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

Sd/-

Sd/-

_________________
Tore Johnsen
Chief Executive Officer

__________________________
Raihan Shamsi
Deputy Chief Executive Officer &
Chief Financial Officer

Dhaka, 30 April, 2011

Grameenphone Ltd.
Condensed Consolidated Statement of Comprehensive Income
for the quarter ended 31 March 2011
Quarter ended
31 March 2011

Quarter ended
31 March 2010

Taka

Taka

16

20,671,798,291

17,041,538,870

17

(4,358,391,377)
(1,504,053,484)
(3,654,442,465)
(9,516,887,326)
11,154,910,965

(3,358,012,292)
(1,125,388,547)
(3,725,415,328)
(8,208,816,167)
8,832,722,703

Notes

Revenue
Cost of network operations:
Direct cost of network revenue
Network operation and maintenance expenses
Depreciation and amortisation
Gross profit
Other income, net

15,004,257

Operating expenses:
General and administrative expenses
Selling and distribution expenses
Depreciation and amortisation

18

Operating profit

11,617,670

(2,251,145,685)
(2,686,940,943)
(355,970,377)
(5,294,057,005)
5,875,858,217

(1,900,897,607)
(1,232,252,070)
(374,754,208)
(3,507,903,885)
5,336,436,488

Finance income/(expense), net

Foreign exchange gain/(loss)
Gain/(loss) on disposal of property, plant and equipment
Profit before income tax

19

374,757,284
(294,262,464)
235,114
5,956,588,151

128,081,467
107,768,829
9,283,128
5,581,569,912

Income tax expenses

Profit for the quarter

20

(3,089,110,837)
2,867,477,314

(2,424,245,464)
3,157,324,448

Other comprehensive income

Total comprehensive income for the quarter

2,867,477,314

3,157,324,448

Total comprehensive income attributable to:

Owners of the company
Non controlling interest

2,867,477,293
21

3,157,324,477
(29)

Earnings per share:

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

21

2.12

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

Sd/__________________________
Raihan Shamsi
Deputy Chief Executive Officer &
Chief Financial Officer

Sd/_________________
Tore Johnsen
Chief Executive Officer

Dhaka, 30 April, 2011

2.34

Grameenphone Ltd.
Condensed Consolidated Statement of Changes in Equity
for the quarter ended 31 March 2011

Share
capital
Taka
Balance as at 1 January 2010

Share
premium
Taka

13,503,000,220

Capital
reserve
Taka

7,840,225,942

14,446,452

Deposit
from
shareholders
Taka
1,880,178

General
reserve
Taka

Retained
earnings
Taka

2,139,729,365

Non-controlling
interest
Taka

26,655,044,251

Total
Taka
50,154,326,408

Transactions with the shareholders:

Issuance of share of Grameenphone IT Ltd.

100

100

Total comprehensive income for the quarter

ended 31 March 2010
Profit for the quarter
Other comprehensive income

3,157,324,477

(29)
-

3,157,324,448
-

Balance as at 31 March 2010

13,503,000,220

7,840,225,942

14,446,452

1,880,178

2,139,729,365

29,812,368,728

71

53,311,650,956

Balance as at 1 January 2011

13,503,000,220

7,840,225,942

14,446,452

1,880,178

2,139,729,365

24,532,545,482

268

48,031,827,907

21

2,867,477,314

Total comprehensive income for the quarter

ended 31 March 2011
Profit for the quarter

Other comprehensive income

Balance as at 31 March 2011

13,503,000,220

7,840,225,942

14,446,452

1,880,178

2,139,729,365

2,867,477,293

27,400,022,775

289

50,899,305,221

Grameenphone Ltd.
Condensed Consolidated Statement of Cash Flows
for the quarter ended 31 March 2011
Quarter ended
31 March 2011
Taka

Quarter ended
31 March 2010
Taka

19,717,870,401

16,896,096,153

(1,464,649,812)
(7,221,342,295)
503,872,045
(482,411,370)
(2,265,016,279)
(10,929,547,711)
8,788,322,690

(1,375,195,676)
(6,032,384,839)
254,479,902
(75,381,661)
(2,332,481,411)
(9,560,963,685)
7,335,132,468

(1,681,601,820)
5,466,122
(11,431,133)
(61,245)
597,479,739
(1,090,148,337)

(1,565,524,251)
31,059,155
(93,773,266)
(58,187)
(1,628,296,549)

(8,921,116)
(651,117)
(9,572,233)

(117,648,000)
100
(77,535,709)
(195,183,609)

Cash flows from operating activities:

Cash receipts from performance of services/sales
Payroll and other payments to employees
Payment to suppliers, contractors and others
Net finance income received
Finance costs paid
Income tax paid
Net cash flow from operating activities
Cash flows from investing activities:
Payment for acquisition of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payment for acquisition of intangible assets
Investment in long term deposits
Short term investments
Net cash used in investing activities
Cash flows from financing activities:
Payment of long term borrowings
Payment of dividend
Proceeds from issue of shares to non controlling interest
Amount refunded to IPO share applicants
Net cash used in financing activities
Net changes in cash and cash equivalents

7,688,602,120

5,511,652,310

Cash and cash equivalents at beginning

Cash and cash equivalents at closing

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

14,101,313,087
19,612,965,397

Grameenphone Ltd.
Notes to the condensed consolidated financial statements
as at and for the quarter ended 31 March 2011
1.

Reporting entity

1.1

Company profile
Grameenphone Ltd (hereinafter referred to as "GP"/"Grameenphone"/"the company"/"the parent company")
is a public limited company incorporated in Bangladesh in 1996 under the Companies Act 1994 with its
registered address at Celebration Point, Road 113/A, Gulshan, Dhaka, Bangladesh. In July 2010, the
registered office of the company was shifted to GPHOUSE, Bashundhara, Baridhara, Dhaka 1229. GP was
initially registered as a private limited company and subsequently converted into a public limited company
on 25 June 2007. During November 2009, GP listed its shares with both Dhaka and Chittagong Stock
Exchanges. In 2010, Grameenphone formed a wholly owned subsidiary namely Grameenphone IT Ltd
(hereinafter referred to as "GPIT"/ "the subsidiary company"), to provide IT services to itself and also to
external customers. GPIT launched its commercial operation from 1 April 2010.
These consolidated financial statements comprise the company and its subsidiary, Grameenphone IT Ltd
(together referred to as "the group").

1.2

Nature of business
The group is primarily involved in providing mobile telecommunication services (voice, data and other
related services) and IT related services in Bangladesh. Grameenphone obtained its radio system operating
licence from the Ministry of Posts and Telecommunications (MOPT), Government of Bangladesh,
commencing from 11 November 1996 and launched commercial operation on 26 March 1997.
Telecommunication network of the company covers all divisional towns and districts of the country. The
company also provides international roaming services through international roaming agreements with
various operators of different countries across the world.

2.

Basis of preparation
These condensed consolidated financial statements have been prepared in accordance with International
Accounting Standard/Bangladesh Accounting Standard (IAS/BAS) 34: Interim Financial Reporting and
relevant guidelines issued by the Securities and Exchange Commission, Bangladesh and should be read in
conjunction with the consolidated financial statements as at and for the year ended 31 December 2010 of the
group, the period for which the last full annual financial statements were prepared.

3.

Accounting policies
The same accounting policies, presentation and methods of computation have been followed in these
condensed consolidated financial statements as were applied in the preparation of the consolidated financial
statements of the group as at and for the year ended 31 December 2010.

Property, plant and equipment, net

Cost

Name of assets

Addition
during
the quarter
Taka

As at
31 March
2011
Taka

As at
1 January
2011
Taka

Depreciation
Disposal/
Charged
Adjustment
during the
during
the quarter
the quarter
Taka
Taka

Carrying amount
As at
31 March
2011
Taka

As at
31 March
2011
Taka

As at
31 December
2010
Taka

Freehold assets

127,709,029,019

11,406,482,376

(19,366,370,043)

119,749,141,352

65,642,723,849

3,622,663,623

(9,678,199,729)

59,587,187,743

60,161,953,609

62,066,305,170

Capital work in progress

4,139,246,427
131,848,275,446

11,659,743,339
23,066,225,715

(11,339,769,832)
(30,706,139,875)

4,459,219,934
124,208,361,286

65,642,723,849

3,622,663,623

(9,678,199,729)

59,587,187,743

4,459,219,934
64,621,173,543

4,139,246,428
66,205,551,598

7,678,321,508
139,526,596,954

23,066,225,715

(30,706,139,875)

7,678,321,508
131,886,682,794

2,187,780,988
67,830,504,837

82,495,788
3,705,159,411

(9,678,199,729)

2,270,276,776
61,857,464,519

5,408,044,732
70,029,218,275

5,490,540,520
71,696,092,118

Fibre Optic Network

under finance lease

As at
1 January
2011
Taka

Disposal/
Adjustment
during
the quarter
Taka

Intangible assets, net

Cost

Name of assets

As at
1 January
2011
Taka

Addition
during
the quarter
Taka

Freehold assets

10,931,511,847

1,118,589

Capital work in progress

349,560,499
11,281,072,346

20,615,457
21,734,046

Disposal/
Adjustment
during
the quarter
Taka

As at
31 March
2011
Taka
-

(1,118,589)
(1,118,589)

As at
1 January
2011
Taka

Depreciation
Disposal/
Charged
Adjustment
during the
during
the quarter
the quarter
Taka
Taka

Carrying amount
As at
31 March
2011
Taka

As at
31 March
2011
Taka

As at
31 December
2010
Taka

10,932,630,436

4,288,344,023

305,253,432

4,593,597,455

6,339,032,981

6,643,167,823

369,057,367
11,301,687,803

4,288,344,023

305,253,432

4,593,597,455

369,057,367
6,708,090,348

348,248,275
6,991,416,098

As at

Inventories

Handset, data card and other device

SIM card
Scratch card

4,877,394,453
180,435,548
153,522,463
22,995,771
13,597,537
5,247,945,772

237,547,388
428,123,981
187,281,548
162,674,459
1,015,627,376

156,269,520
428,123,981
182,467,922
161,158,846
928,020,269

417,867,834
203,273,730
947,199,265
1,568,340,829

458,566,739
188,441,730
974,629,370
1,621,637,839

4,079,895
26,616,024,777
26,620,104,672

3,737,483
18,927,765,069
18,931,502,552

34,240,498,875
(5,412,592,970)
28,827,905,905
35%
10,089,767,067

37,521,403,533
(5,518,307,785)
32,003,095,748
35%
11,201,083,512

2,434,116,291
8,850,776,296
200,449,693
11,485,342,280

2,246,290,076
7,622,500,562
315,087,154
10,183,877,792

Advances, deposits and prepayments

Advances
Deposits
Prepayments

10

5,342,487,608
165,888,786
314,443,214
27,088,750
14,376,050
5,864,284,408

Other receivables
Accrued interest
Receivable from Ericsson
Receivable from other Telenor entities
Receivable from other external parties

31 December 2010
Taka
133,374,666
633,598,995
67,381,665
834,355,326

Accounts receivable, net

Receivables for mobile service-interconnection
Receivables for mobile service-post paid and others
Receivables for infrastructure sharing
Receivables for sub lease of fibre optic network
Other receivables for non-mobile service

As at

31 March 2011
Taka
197,481,831
347,854,815
38,567,790
583,904,436

Cash and cash equivalents

Cash in hand
Cash at bank

11 Deferred tax liabilities

Taxable temporary differences
Deductible temporary differences
Tax rate
Deferred tax liability

12 Accounts payable
Liability for capital expenditure
Payable for expenses
Payable for other expenses

13 Payable to government and autonomous bodies

Bangladesh Telecommunication Regulatory Commission (BTRC)

Frequency and spectrum charges
Revenue sharing
Supplementary duty on SIM payable to NBR
Share of sub-lease rent payable to Bangladesh Railway
Payable for Bills Pay receipt

As at

As at

31 March 2011
Taka

31 December 2010
Taka

199,199,476
1,260,924,626
1,460,124,102
2,747,972,881
4,920,058
257,198,846
4,470,215,887

226,000,964
1,388,092,365
1,614,093,329
2,869,736,536
10,908,544
319,751,841
4,814,490,250

15,738,404,448
4,200,427,282
19,938,831,730
(2,265,016,279)
17,673,815,451

12,228,778,445
12,512,235,175
24,741,013,620
(9,002,609,172)
15,738,404,448

7,051,014
66,874,664
1,791,540,457
2,096,761,879
30,707,467
66,417,164
782,669,149
498,832,253
1,129,631,042
2,150,965,122
714,542,913
6,315,460
9,342,308,584

8,705,560
81,454,862
1,302,937,127
2,046,458,804
26,643,930
62,799,455
776,568,213
703,940,472
711,382,083
1,953,597,498
749,139,910
4,788,000
8,428,415,914

14 Income tax provision

Opening balance
Provision made during the period/year
Paid during the period/year (including tax deducted at source)
Closing balance

15 Provision for expenses

International roaming services
Commission and other operational expenses
Cost of SIM card, scratch card, handsets etc.
Personnel expenses
Employee provident fund
Training and travelling expenses
Sales and promotional expenses
Consultancy and professional fees
Network operations and maintenance
Capital expenditure
Office and general expenses
Lease rent to Power Grid Company of Bangladesh Ltd.

16

Revenue
Quarter ended
31 March 2011
Taka
Traffic revenue
Subscription revenue
Connection revenue
Roaming revenue
Interconnection revenue
Other operating revenue
Other non- mobile revenue

17

915,111,473
803,920,650
49,976,572
175,874,967
1,071,674,586
1,303,895,045
37,938,084
4,358,391,377

936,017,168
299,576,809
47,679,884
175,847,385
888,970,426
1,006,871,227
3,049,393
3,358,012,292

2,130,084,507
325,002,568
231,853,868
2,686,940,943

925,946,795
170,953,045
135,352,230
1,232,252,070

Finance income/(expense), net

Interest on long term loans
Finance charge - lease
Interest on ARO
Other finance charges
Finance income

20

14,353,817,738
162,642,997
75,733,680
103,427,080
1,618,343,951
639,751,727
87,821,697
17,041,538,870

Selling and distribution expenses

Sales, marketing and representation costs
Advertisements
Business development and promotional expenses

19

16,816,454,685
152,381,682
65,907,789
130,864,913
1,990,718,103
890,117,760
625,353,359
20,671,798,291

Direct cost of network revenue

Cost of interconnection
Cost of SIM card, scratch card, handset etc.
International roaming cost
Licence fees and spectrum charges
Revenue sharing with BTRC
Dealers' and agents' commission
Revenue sharing with content providers and others

18

Quarter ended
31 March 2010
Taka

(193,669,221)
(4,094,984)
(13,702,730)
(211,466,935)
586,224,219
374,757,284

(2,702,529)
(192,012,041)
(4,016,747)
(13,789,680)
(212,520,997)
340,602,464
128,081,467

4,200,427,282
(1,111,316,445)
3,089,110,837

3,203,918,239
(779,672,775)
2,424,245,464

Income tax expenses

Current tax expenses
Deferred tax expenses

10

21

Earnings per share

Quarter ended
31 March 2011

Quarter ended
31 March 2010

Profit attributable to the ordinary shareholders (Taka)

2,867,477,293

3,157,324,477

Weighted average number of ordinary shares

outstanding during the period

1,350,300,022

1,350,300,022

2.12

2.34

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

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

22

Other disclosures

22.1 Related party disclosures

Except for the regular transactions, there was no significant related party transaction during the quarter ended 31 March
2011.
22.2 Capital commitments
There was no significant change in the commitments made by the company during the quarter ended 31 March 2011.
22.3 Events after the reporting period
The shareholders of the company, in its 14th AGM held on 19 April 2011, approved Tk. 16,203,600,264 as total
dividend for 2010, including the interim dividend Tk. 4,726,050,077.
Except for the above, there was no event after the reporting period that requires either disclosure of or adjustment to the
financial statements.

11