ADN Telecom Limited

ADN Telecom Limited

Ha lf Yea rly Fi na ncia I Statements ( U n-a ud ited)

For the period ended 31 December 2020

ADN TELECOM LIMITEDSTATEMENT OF FINANCIAL POS]TION (UN.AUDITED)

ParticularsASSETSNon-Current AssetsProperty, Plant and Equipmentlntangible Assetslnvestment in Associates

Current Assetslnvestment in FDRTrade and Other ReceivablesAdvance, Deposits and PrepaymentsCash and Cash Equivalents

TotalAssets

EQUITY AND LIABILITIESGapital& ReservesShare CapitalShare PremiumRetained Earnings

LIABILITIESNon-Current LiabilitiesLease LiabilitiesDeferred Tax Liability

Current LiabilitiesCurrent Portion of Lease LiabilitiesShort Term LoanAccrued ExpensesDividend PayableProvision for Workers' Participation and Welfare FundTrade and Other PayablesProvision for Tax Liability

Total Equity and Liabilities

Net Asset Value (NAV) Per Share (Restated)

AS AT DECEMBER 31.2020

Notes

4.005.006.00

7.008.009.0010.00

1 ,1 50,948,305 1 ,143,0 41 ,677l-1 J 3 8 s ? 6, e ? e I [1-rJi- 5 e 6, ? o7lI tot,sse ll 77sls6

|

| 11,669,774 ll 11,669,774 |

181,721,96051,800,000

451,225,923330,980,801347,715

1,090,589,60370,000,000

434,397,359197,192,642388,999,602

J 332,9fl rc- J,233'931-@-

J,132,9f3e9_

28.00 _24.W_

J,233,931_&g_

25.27

1 to 32 form an integral part of these financial statements.

1,614,291,429 1,633,531,883

ii,ffi l:ii-tri;l[ii.%jjru]186,685,208 183,458,293

1333 ffiilffiil14.0015.0016.00

17.0018.0019.00

29,315,99143,091,236

121,823,34596,977,49912,426,391

214,276,12713,7

416,641,10231 ,1 4'1 ,65337,077,068

100,486,263

7,786,474208,829,837

31,319,807

lI- Ir")I-Managin! Director

"n,",,ffi}f;**

Dhaka, 28 January 2021

ccpV*coffipat* Secretary

ADN TELECOM LIMITEDSTATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UN.AUDITED)

FOR THE PERIOD OF JULY 01. 2O2O TO DECEMBER 31. 2O2O

Particulars

Net RevenueCost of Goods Sold & ServicesGross Profit

Operating ExpensesAdministrative ExpensesDistribution and Marketing ExpensesTotal Operating ExpensesOperating Profit

Other Non-Operating lncomeFinancial Expenses

Provision for Workers' Profit Participation andWelfare FundShare of profiU(loss) of associatesProfit before lncome TaxProvision for TaxCurent TaxDeferred TaxTotal Provision for TaxNet Profit After TaxOther Comprehensive lncomeTotal Comprehensive lncome

Basic Earnings Per Share (EPS) (Restated)

Diluted Earnings Per Share (EPS) (Restated)

17.006.00

27 -01

27.02

1 lo 32 form an integral part of these financial statements.

l Notes l

I ll oec'zozo ll oec'zotg ll oec'zozo ll oec'zorg I

20.00 T56J-j-6071 il [5ft-j-661-j-3.r0 I f-z?1,02, s611rcr s-CJ 88s04 I

21.00 | (s+s,sza,rs+)ll (soa,a+0,+az)l | (rog,azz,gtz)l I ettrsa,ttql223,541,277 208,261,483 10',1,154,444 97,430,331

22.ool-tzr-irza.rs1$5-e)-ln6qMA;dZd).lre,/f,?n\f Gr-i-I6-4.l23.00 | (so,sts,r+o)ll (ot,zrs,oat)ll Qt,azt,eot)ll (zg,ttz,zzz)l

(125,106,799) (130,559,056) (56,873,627) (63,770,386)98,434,478 77,702,427 44,280,817 33,659,945

24.ool-3,831^6-vlEz,?r-?f t-szdp-qa1fr TJelI25.00 | (+,azz,aar)ll (5,457,023)ll (2,640,5e8)ll (2,420,e0e)l

97,438,254 75,708,201 42,560,307 33,216,197

(4,639,917) (3,605,152) (2,026,681) (1,581,724)

_92,798,337_ _J2,103,049_ _19,533,629_ _31,634,47 3_

lTg5618-4rets[o8\| 381 ,894 | | 1 ,440,816 |

(2,554,2941 (2,713,312137,979,3-32 28,921,1_61

__J!_J 37_e 45_ ___57 37 5 J 8!_ __37 e!9 3n_ _28 9Z_J91_

1.20 0.89 0.59 0.45

1.20 0.89 0.59 0.45

W U*,,lrr L-Managing Director

26.0026.00

"n,",.,,ffif;n"",


(11,834,378 (1 1,350,870)

2

a-a-

ADN TELECOM LIMITEDSTATEMENT OF CHANGES IN EQUITY (UN.AUDITED)

FOR THE PERIOD ENDED 31 DECEMBER 2O2O

The annexed Notes from 1 to 32 form an integral part of these financial statements.

Chairman

Chief Fi

I-:,

:Dhaka, 28 January 2021

il,-.' Ir.1].ManaginglDirector

@qnancialOfficer

Amount in BDT

ParticularsOrdinary Share

CapitalShare

PremiumRetainedEarnings

Total

Balance as at 1 July 2019

Addition during the period

Adjustment during the period

Net Profit after tax

448,600,000

197,916,660

83,005,464

372,083,340

(29,500,000)

411,842,173

57,375,184

943,447,637

570,000,000

(29,s00,000)

57,375,184

Balance as at 31 December 2019 646,516,660 425,588,804 469,217,357 1,541,322,821

Balance as at 1 July 2O2O

Dividend declared

Net Profit after tax

646,516,660 413,704,659 573,310,564

(96,977,499)

77,737,045

1,633,531,883

(96,977,499)

77,737,045

Balance as at 31 December 2020 646,516,660 413,704,659 554,070,110 1,614,291,429

Cy4"ii:**_corya-ni-s"V"trry

Particulars Notes

Cash Flow from Operating ActivitiesCash Received from CustomersCash Paid to Suppliers & OthersPaid for Operating ExpensesCash generated from OperationsFinance Expenses Paidlncome Tax PaidNet Gash FIow from Operating Activities

Gash Flow from lnvesting ActivitiesAcquisition of Property, Plant & Equipments and lntangibleAssetsFDR Encashmentlnvestment in FDRNet Cash FIow from /(used) for lnvesting Activities

Cash Flow from Financing ActivitiesRepayment of Long Term BorrowingProceeds from issuance of share capitalProceeds from issuance of share capital-PremiumRepayment of Short Term BorrowingReceipt of Short Term BorrowingPayment for IPO ExpensesRepayment to Lease FinanceReceived from Lease FinanceNet Cash Flow from/ (used) for Financing Activities

Net Cash lncrease/(Decrease) during the periodOpening Cash and Cash EquivalentsClosing Cash and Cash Equivalents

Net Operating Cash Flow per share (Restated)

7.00

10.00

29

(20,e84,;40)21,371,418

(21,737,564)

(21,350,985)

(41,294,366)388,999,602

_347_J19236

0.39

(2e,79,166,660

134,583,340(9,864,700)48,333,258

(29,500,000)(1,122,758)4,800,000

197,107,243

168,916,80841,303,724

_219,229,5u

0.37

1 to 32 form an integral part of these financial statements.

MMchi"r Fffi officer


ADN TELECOM LIMITEDSTATEMENT OF CASH FLOWS (UN.AUDITED)FOR THE PERIOD ENDED 31 DECEMBER. 2O2O

30.00

(63,038,624)

20,000,0001,800,000

(44,838,6241

J-["- h,t] ,Managirlg Director

(52,374,237)

(52,374,2371

550,280,810(292,805,641)

702,08329,773,086(4,867,845)

24,905,241

536,402,115(348,149,496)150,676,1 1037,576,509(4,944,268)

24,183,802

Director

ry"W'-"conffinflsecretary

4

i

ADN Telecom LimitedNotes to the Financial Statements (Un-audited)

For the vear ended December 31. 2020

1.00 Companv and its activities

a) Gompanv Profile:ADN Telecom Limited (formerly Advanced Data Networks System Limited) was incorporated on 22 September,

2003 Vide registration # C-50557 (552)12003 as a Private Limited Company by shares under The Companies

Act, 1g94. The company was converted into a Public Limited Company on 25 July, 2U2. fhe company has

been listed with both the Dhaka and Chittagong Stock Exchanges on December 2019.

The registered office of the company is located at Red Crescent Concord Tower ( 1 9th Floor), 1 7 Mohakhali C/A,

Dhaka- 1212, Bangladesh.

b) Nature of Business:ADN Telecom Ltd. is the prime service provider for domestic and international connectivity services and

solutions duly authorized by the Bangladesh Telecommunication Regulatory Commission (BTRC). The principal

activities of the company are providing seamless, secured data & internet connectivity to various grades of

customers using fiber, satellite and wireless solutions since 2003.

ADN Telecom is a first tier Telecom service provider as well as an lT Enable Service provider. lt's range ofproducts allow it to deliver service to mostly corporate, B2B, government, financial institutions, etc. There are

future plans to expand coverage to include B2C products and services.

c) Leoal Comoliance:The financial statements have been prepared and the disclosures of information made in accordance with the

requirements of The Companies Act 1994, lnternational Accounting Standards (lAS) and lnternational Financial

Reporting Standards (IFRS).

d) Compliance with lnternational Financial Reportins Standards:

1

IAS 2IAS 7IAS 8

IAS 10

IAS 12

IAS 16

IAS 17IAS 19

IAS 20

IAS 21

IAS 23IAS 24IAS 26IAS 27IAS 28IAS 31IAS 32IAS 33tAS 34 -

IAS 36IAS 37IAS 38IAS 39IAS 40IAS 41

IFRS 1

IFRS 2IFRS 3IFRS 4IFRS 5

Presentation of FinanciallnventoryStatement of Cash FlowsAccounting Policies, Changes in Accountlng Estimates and ErrorsEvents after the Reporting Periodlncome TaxesProperty, Plant and EquipmentLeasesEmployee BenefitsAccounting for Government Grants and Disclosure of Government Assistance

Effects of Changes in Foreign Exchange RatesCosts

Party Disclosuresand Reporting by Retirement Benefit Plans

Financial Statementsin Associates and Joint Ventures

in Joint VenturesInstruments: Presentationper Share

lnterim Financial Reportinglmpairment of AssetsProvisions, Contingent Liabilities and Contingent Assets

lntangible AssetsFinancial lnstruments: Recognition and Measurement

lnvestment Property

First Time AdoptionShare Based PaymentBusiness Combinationslnsurance ContractsNon-Cunent Assets Held for Sale and Discontinued Operations

CompliedCompliedCompliedCompliedCompliedCompliedComplied

N/AComplied

N/A

CompliedCompliedComplied

N/AN/A

CompliedN/A

CompliedCompliedCompliedCompliedCompliedCompliedComplied

N/AN/AN/AN/ANiAN/AN/A

5

IFRS 6IFRS 7IFRS 8

IFRS 1O

IFRS 11

IFRS 12

IFRS 13

IFRS 14IFRS 15

IFRS 16

Exploration for and Evaluation of Mineral Resourceslnstruments : DisclosuresSegments

Financial StatementsArrangements

of lnterests in Other EntitiesValue Measurement

Deferral Accounts

N/AComplied

N/AN/AN/A

CompliedComplied

N/AComplied

2.01

from contracts with customers

Siqnificant Accountinq Policies and Basis of PreparationThe accounting policies set out below, which comply with lnternational Financial Reporting Standards (lFRSs),have been applied consistently to all periods presented in these financial statements, and have been appliedconsistently by the company.

Statement of Compliance:These financial statements of ADN Telecom Limited have been prepared on a going concern basis underhistorical cost convention in accordance with lnternational Financial Reporting Standards (lFRSs).Thedisclosures of information are made in accordance with the requirements of the Companies Act 1994, theSecurities and Exchange Rules 1987 and the financial statements have been prepared in accordance withlnternational Accounting Standard (lAS) -1 using the accrual basis of accounting. ln the preparation of thesefinancial statements, management used available information to make judgments, estimate and assumption thataffect the application of accounting policies and the reported amounts of assets and liabilities, income and

expenses. Actual results may differ from those estimates.

Going Concern:The Company has adequate resources to continue in operation for foreseeable future and hence, the financialstatements have been prepared on going concern basis. As per management assessment there are no materialuncertainties related to events or conditions which may cast significant doubt upon the Company's ability tocontinue as a going concern. lt is to be mentioned that, license from BTRC is being regularly renewed by themsince 2003 and ADN Telecom Limited has already got the renewed ISP,VSAT and IPTSP license from BTRC indue time. lt is expected that BTRC will continue the renewal of license in future.

Functional and Presentation Currencv:Items included in these financial statements are measured using the currency of the primary economicenvironment in which the company operates ('the functional curency'). These financial statements arepresented in Bangladesh Taka (Taka/Tk./BDT) which is also the functional currency of the company. Theamounts in these financial statements have been rounded off to the nearest Taka.

Reportins Period:These financial statements cover half year starting from July 01,2020 to December 31,2020.

Comparative lnformation and Rearranqement thereof:Comparative information has been disclosed in respect of the period for all numerical information in the financialstatements and also the narrative and descriptive information where it is relevant for understanding of thecunent yea/s financial statements. Figures for prior period have been re-arranged, wherever considerednecessary, to ensure better comparability with current period.

Risk and uncertaintv for use of estimates and Judgments:The preparation of financial statements in conformity with lntemational Financial Reporting Standards (lFRSs)requires management to make judgments, estimates and assumptions that affect the applicable of accountingpolicies and the reported amounts of assets, liabilities, income and expenses, and disclosure requirements forcontingent assets and liabilities during and at the date of the financial statements. Actual result may differ fromthese estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions ofaccounting estimates are recognized in the period in which the estimate is revised in any future years affected as

required by IAS 8: 'Accounting Policies, Changes in Accounting Estimates and Errors."

Materialitv and Aqqresation:Each material item considered by management as significant has been presented separately in financial

statements. No amount has been set off unless the ADN Telecom Ltd. has a legal right to set off the amounts

and intends to settle on net basis. lncome and expenses are presented on a net basis only when permitted by

the relevant accounting standards.

2.04

2.05

2.07

2.02

2.03

2.06

2.08 Gonsistencv:ln accordance with IFRS framework for the presentation of financial statements together with IAS-1 and IAS-8'

ADN Telecom Limited discloses its information consistently from one period to the next. Where selecting and

applying new accounting policies, changes in accounting policies, correction of errors, the amount involved are

accounted for and disclosed retrospectively in accordance with the requirement of IAS-8. However, for changes

in the accounting estimates the related amount is recognized prospectively in the current period and in the next

period or periods.

2.09 Foreign Currencv Transactions and Translations:al Foreion currencv transactions:

Oay enO eatances in foreign currencies are converted into respective functional currencies at the

rate of exchange ruling at the date of transactions as per IAS 21 'The Effects of Changes in Foreign Exchange

Rates'. Effects of Exchange rate differences (rates at which transactions were initially recorded and the rate

prevailing on the reporting iate/date of settlements) applied on the monetary assets or liabilities of the Company

are recorded in the Statement of Profit or Loss and Other Comprehensive lncome'

hl Foreion currencv translations:. Assets and liabilities hive been presented into Taka (which is functional currency of the Company) using year

end spot rate of exchange of the Company and incomes and expenses are translated using spot rate of

exchange. The foreign currency translation difference is a net result of exchange difference of year end standard

mid rate and monthly average of standard mid rate arising from translation of functional currency to presentation

curency.

2 {0 Statement of Cash Flows:IAS 1 requires tnat a cornpt"te set of financial statement requires preparation of statement of cash flows' The

statement of cash flows is prepared as it provides information about cash flows of the enterprise which is useful

in providing users of financial statements with the information about ability of the enterprise to generate cash

and utilization of those cash.Statement of cash flows has been prepared under the direct method for the year end, classified by operating,

investing and financing activities as prescribed in paragraph 10 and 18(a) of IAS 7 Statement of Cash Flows.

As per Chr"" No. S (i) (e) of Notification No. BSEC/CMRRCDl2O06-1581208/Admin/81, Dated: 20 June 2018. A

reconciliation of Net Cash Flow from Operating Activities between Direct method and lndirect method is shown

in Note:30.00.

2.11 Statement of Changes in Equitv:The Statement of Changes in Equity reflects information about the increase or decrease in net assets or wealth.

The statement also shows item-wise movement along with the description of changes from the end of last year

to the end of current Year.

2,12 Propertv. Plant and EquiPment:al Recoonition and measurement:,|npur@PlantandEquipment,,,thecostofanitemofproperty,plantandequipmentis

recognized as an asset if, and only if it is probable that future economic benefits associated with the item will

flow to the entity, and the cost of the item can be measured reliably.

property, plant & Equipment have been accounted for at cost less accumulated depreciation. Cost includes

expenditure that is directly attributable to the acquisition of the items.

Subsequent costs of enhancement of existing assets are recognized as a separate asset, only when it isprobabie that future economic benefits associated with the item will flow to the company and the cost of such

items can be measured reliably. All other expenditures are charged to the Statement of Profit or Loss and Other

Comprehensive lncome in the financial year which they are incuned'

b) Assets Obtained under Lease Aqreements:IFRS i6: "Leases, has come into force on 1 January 2019, ADN Telecom Limited applied IFRS 16 its financial

statements using modified retrospective approach where the company measured the lease liability at the present

value of the remaining lease payments, discounted it using the incremental borrowing rate at the date of initial

application, and recog-nized a right-of-use asset at the date of initial application on a lease by lease basis. Due to

applying modified retrospective effect, prior year results have not been restated.

Right-of-use assets (ROU)

The ADN Telecom iirit"O recognizes right-of-use assets at the date of initial application of IFRS 16. The ROU

asset is initially measured at cost at the amount of the lease liability plus any initial direct costs incurred by the

lessee and depreciated using the straight line methods from the commencement date (from the beginning of

July 201g) to the earlier of the end of the useful life of the right of use asset or the end of the lease term. The

ROU assets are presented under Property, Plant and Equipment (note 4).

Lease Liability at the commencement date of lease, the ADN Telecom Limited recognizes lease liabilitiesmeasured at the present value of the lease payments to be made over the lease term using incrementalborrowing rate at the date of initial application. Lease liability is measured by increasing the carrying amount toreflect interest on the lease liability, reducing the carrying amount to reflect the lease payments.

Short-term lease and leases of low value assets:The ADN Telecom Limited has elected not to recognize ROU assets and lease liabilities for leases of low value

assets less than valuing of BDT 240,000 and short term lease, i.e. for which the lease term ends within 12

months of the date of initial application. The ADN Telecom Limited recognizes lease payments associated with

these leases as an expense.

The impact of the new standard on lessees' financial statements are:

- An increase in recognized assets and liabilities;- More lease expenses recognized in early periods of lease, and less in the later periods of a lease;- A shift in lease expense classification from rental expenses to interest expense and depreciationAs per IFRS 16: "Leases", summary of lease related information is provided in the table below:

c) Depreciation:No depreciation is charged on land as the land has unlimited useful life. Depreciation on assets is calculated

using the Reducing Balance Method to allocate the cost amount over their estimated useful lives. ln respect ofaddition of Property, Plant & Equipment, depreciation is charged from the date of use. No depreciation is

charged in the month of disposal.

Depreciation is charged using the following rates on the Property, Plant & Equipment except ROU assets, ROU

assets depreciation is calculated on straight line basis:

Assets Gateqorv 2020-2021 2019'2020Land and Land Development O% 0%Radio Link, lnfrastructure & Backbone EquipmentsData CentreFiber Equipment & AccessoriesComputer & AccessoriesOffice EquipmentsOpticalFiberFurniture & FittingsIPTSP & Video Conference EquipmentMotor Vehicle 20o/o 20o/o

Support Equipment 5o/o 5o/o

Gain or Loss on Disposal:An item of property, plant and equipment is derecognized upon disposal or when no future economic benefitsare expected from its use or disposal. Any gain or loss on derecognition of an item of property, plant and

equipment is determined as the difference between the net disposal proceeds and the carrying amount of the

asset and is recognized as profit or loss. However, No disposal occuned during the year.

Compliance of VAT and TAX:ADN Telecom Limited complies all rules and regulations of lT-1984 and VAT and supplementaryAct, 2012foraddition of all Property, Plant and Equipment

Capitalization of Borrowins Gosts:As per the requirements of IAS 23: "Borrowing Costs", directly attributable borrowing costs are capitalized during

construction period for all qualifying assets. A qualifying asset is an asset that necessarily takes a substantial

period of time to get ready for its intended use or sdle. The borrowing costs that are directly attributable to the

acquisition, construction or production of a qualifying asset are those borrowing costs that would have been

avoided if the expenditure on the qualifying asset had not been made. All other borrowing costs are recognized

as profit or loss in the period in which they are incurred.

5%5%5o/o

30o/o

5%5%5%

30o/o

20o/o 20%30o/o 30%10% 10%20% 20o/o

d)

e)

8

2.13 lntansible Assets:lntangible assets (lAS - 38 Para -8) that are acquired by the Company such as computer software and havefinite useful lives are measured at cost less accumulated amortization and accumulated impairment losses, ifany.Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the

specific asset to which it relates.lntangible assets are amortized on a reducing balance method and charged in statement of profit or loss and

other comprehensive income.Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted ifappropriate.

2.14 lmpairment of Assets:a) Non-derivative financial assetsFinancial assets not classified as at fair value through profit or loss, are assessed at each reporting date todetermine whether there is objective evidence that it is impaired. A financial asset is impaired if objective

evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event. had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

b) Non-financial assetsThe carrying amount of the non-financial assets, other than inventories are reviewed at each reporting date to

determine whether there is any indication of impairment. lf any such indication exists then the assets'recoverable amounts are estimated. For intangible assets that have indefinite lives, recoverable amount is

estimated at each reporting date. An impairment loss is recognized if the carrying amount of an asset or its cashgenerating unit (CGU) exceeds its estimated recoverable amount.

2.15 lnvestment in Associates:As per IAS-28: "lnvestments in Associates and Joint Ventures" this investment is required to be treated as

lnvestment in Associate using Equity Accounting Method. Under Equity Accounting the carrying value of the

lnvestment is equal to cost plus any profit eamed after acquisition.

2.16 Trade and Other Receivables:Accounts Receivable represent the amounts due from subscribers and other parties for services. Accounts

Receivable are measured at the original invoice amount. Accounts Receivables are stated net of allowance fordoubtful debts. Other receivables comprise other non-trade receivables and interest receivables. Other

receivables are stated net of provision for doubtful debts, if any.

2.17 Advance. Deposit & Prepavments:Advances are initially measured at cost. After initial recognition, advance are carried at cost less deduction,adjustment or charges to other account heads. Deposits are measured at payment value. Prepayments are

initially measured at cost. After initial recognition prepayments are canied at cost less charges to Statement ofProfit or Loss and Other Comprehensive lncome.

2.18 Gash & Gash Equivalents:Cash and cash equivalents comprise cash balances and call deposits with maturity of three months or less from

the date of acquisition that are subject to an insignificant risk of changes in their fair value, and are used by thecompany in the management of its short term commitments.

2.19 Provisions. Continsent Liabilities and Continqent Assets:The preparation of financial statements in conformity with IAS-37: "Provision, Contingent Liabilities and

Contingent Assets", requires management to make estimates and assumptions that affect the reported amounts

of revenues ahd expenses, assets and liabilities, and the disclosure requirements for contingent assets and

liabilities during and at the date of the financial statements. Due to the inherent uncertainty involved in making

estimates, actual result reported could differ from those estimates. All provisions are recognized by making the

best estimate of the amounts.

2.20 Trade & Other Pavables:Trade & other payables for goods and services received have been accounted for those goods and services for

which no payment has been made. Payables are not interest bearing and are stated at their normal value.

2.21 Financial lnstrumentsNon-derivative financial instruments comprise accounts and other receivables, cash and cash equivalents,

borrowings and other payables are shown at transaction cost.

9

Emplovee Benefits:(a) Provident Fund:The company operates a contributory provident fund for its permanent employees, which is funded by

contribution partly from the employee and partly from the company at predetermined rates. This contribution is

invested separately from the company's assets. lt is administered by a Board of Trustees.

(b) Group Insurance Benefit:The permanent employees of the company are covered under a Group Term Health lnsurance Scheme.

Premium of which is being charged to Statement of Profit or Loss and Other Comprehensive lncome. All regular

employees are entitled to the benefits of the Group term insurance coverage from the date of joining.

(c) Gratuitv Benefit:The permanent employees of the company are covered under a gratuity benefit scheme. The expense of which

is being charged to Statement of Profit or Loss and Other Comprehensive lncome. Every confirmed regular

employee serving the company for continuous period of five years from the date of joining is entitled to receivegratuity to one basic pay, which the employee has drawn last, for every year of service.

(d) Workers' Profit Participation Fund:The company has rnade a provision for Workers' Profit Participation Fund (WPPF) for the period ended 31

December 2020. The Company provides 5% of its net profit before tax after charging such expense as Workers'

Profit Participation Fund in accordance with Bangladesh Labour Act 2006 as amended 2013.

lncome Tax Expenses:lncome Tax Expenses comprise cunent and defened taxes. Income tax expense is recognized in the Statement

of Profit or Loss and Other Comprehensive lncome except to the extent it relates to items recognized directly in

equity, in which case it is recognized in equity.

a) Current Tax:Current Tax is the tax payable on the taxable income for the year, using tax rates as applicable for the respective

concern year as per lncome Tax Ordinance (lTO) 1984, and any adjustment to tax payable in respect ofprevious years.Current Tax has been calculated on the basis of add and back of some inadmissible and admissible expenses

respectively as per ITO 1984.The tax rate used for the reporting period (Except revenue earned from export service) is as follows:

Year: Tax rate:2020-2021 25o/o

2019-2020 250hservice is 12.50% as per The Sixth Schedule- (Part A, ParaThe tax rate used for revenue earned from export

28), tTO 1984.

b) Deferred Tax:Defered tax is recognized in accordance with the provision of IAS-12. Deferred tax arises due to temporary

difference deductible or taxable for the events of transactions recognized in the statement of comprehensiveincome. A temporary difference is the difference between the tax base of an asset or liability and its carrying

amounV reported amount in the financial statement. Deferred tax asset or liability is the amount of income taxpayable or recoverable in future period(s) recognized in the current period. The deferred tax asseU income orliability/ expense does not create a legal liability/ recoverability to and from the income tax authority. This is

recognized for book purpose as equalization item presented in the financial statements to show the retained

earnings as a consistent reflection of the business events. The nature and amount of a change as deferred taxin an accounting estimate that has an effect in the current period or is expected to have an effect in futureperiods.

2.24 Capita! / Sharbholder's Equitv:a) Authorized Capital:

Authorized capital is the maximum amount of share capital that the Company is authorized by its Memorandum

and Articles of Association to issue to shareholders.

b) Paid-up Capital:Paid-up Capital represents total amount of shareholders capital that has been paid in full by the ordinary

shareholders. Holders of ordinary shares are entitled to receive dividends as declared from time to time and are

entitled to vote at shareholder's meetings. ln the event of a winding-up of the company, ordinary shareholders

rank after all other shareholders and creditors and are fully entitled to any residual proceeds of liquidation.

10

2.22

2.23

c) Share Premium:The share premium represents the excess amount received by the Company from its shareholders over thenominal/par value of its share.

d) Retained Earninqs:

The surplus amount after appropriation of profit is kept in Retained Earnings.

3.00 Revenue Recoqnition. Measurement and PresentationRevenues are recognized when goods are delivered or services rendered, to the extent that it is probable that

the economic benefits from the transactions will flow to the company and the revenues can be reliably

measured. Revenues are measured at the fair value of the consideration received or receivable, net of discounts

and sales related taxes. These taxes are regarded as collected on behalf of the authorities.

Revenue from rendering services include the following:

1. lnternet Service2. Dala Service-IPVPN-lT Support & Service3. lP Telephony Service4. Telehouse & Hosting

. 5. Digital Business-lT Support & Service6. Project Sales7. Multiprotocol Label Switching (MPLS)-IT Support & Service8. lnternational Private Leased Circuit (IPLC)-IT Support & Service

Company provides these services to the client on a monthly basis, and it is charged to the clients as prepaid orpostpaid basis. The company recognizes revenue on the following basis:a. The company recognizes service as revenue when invoice is raised at the beginning of the month for prepaid

customers and at the end of the month for the post paid customers.b. lnterest income on bank deposits and short-term investments is recognized on receipt or accrual basis.

c. All other income is recognized on receipt or due basis.d. As per lncome Tax Ordinance 1984. Sixth Schedule Part-A, Para-28, the company enjoyed export sercive forMPLS and IPLC services.

3.01 Earninss Per Share (EPS):

The Company calculates Earnings Per Share (EPS) in accordance with IAS 33 "Earnings Per Share" which has

been shown on the face of Statement of Profit or Loss and Other Comprehensive Income. Earnings per share(EPS) has been calculated by dividing the net profit after tax by the total number of ordinary shares outstandingat the end of the period. Details are shown in note 27 lo the financial statements.

a) Basic Earninqs per Share:Basic EPS is calculated by dividing profit or loss attributable to ordinary equity holders of the entity (the

numerator) by the weighted average number of ordinary shares outstanding (the denominator) during the period.

b) Diluted Earninqs per Share:Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the totalnumber of ordinary shares outstanding for the effects of all dilutive potential ordinary shares.

3.02 Related Partv Disclosure:Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party orexercise significant influence over the other party in making financial and operating decisions. Parties are also

considered to be related if they are subject to common control or common significant influence. Related party

transaction is a transfer of resources, services, or obligations between related parties, regardless of whether aprice is charged as per IAS 24'Related Party Disclosures', BSEC guidelines.

3.03 Components of Financial Statements:a) Statement of Financial Positionb) Statement of Profit or Loss and Other Comprehensive lncomec) Statement of Changes in Equityd) Statement of Cash Flows; ande) Notes, comprising a summary of significant accounting policies and other explanatory information.

1.1

3.04 Other Regulatorv Compliances:The company is also required to comply with the following major legal provisions in addition to The Companies

Act 1994 and other applicable laws and regulations but not limited to:i) The lncome Tax Ordinance & Rules, 1984ii) The Value Added Tax Act 2012 & Rules, 2016.iii) Bangladesh Telecommunication Regulatory Commission Act, 2001

iv) The Customs Act, 1969v) Bangladesh LabourAct,2006 (Amended in 2013)vi) Bangladesh Labour Rules, 2015vii) The Bangladesh Securities and Exchange Commission Act, 1993.

viii) The Securitis and Exchange Ordinance, 1969

ix) The Securities and Exchange Rules, 1987

x) DSE & CSE Listing Regulationxi) Corporate Governance Code of BSEC.

3.05 Events after the reportinq periodAs per IAS -10: "Events after the Reporting Period" are those events favorable and unfavorable, that occurbetween the end of the reporting year and the date when the Financial Statements are authorized for issue. Two

types of event can be identified:*Those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after

the reporting period); and*Those that are indicative of conditions that arose after the reporting period (non-adjusting events after the

reporting period).

3.06 Reconciliation of Books and Accounts:Books of account in regard to Parties (in Bangladesh and outside Bangladesh) as well as Bank are reconciled at

regular intervals to keep the unreconciled balances within non-material level.

t2

4.00

Notes

Prooertv. Plant & Equipment:The details break-up is made up as follows:

, PlantRight of Use of Assets (ROU) 4.o2

Details of Property, Plant & Equipment are shown in "Annexure- A"

Freehold Propertv. Plant & Equipment:The details break-up is made up as follows:

DevelopmentRadio Link, lnfrastructure & Backbone EquipmentsData CentreFiber EquipmentComputer & Computer EquiPmentsOffice EquipmentOptical FiberFurniture & FittingsIPTSP & Video Conference EquipmentMotor VehicleSupport EquipmentTotal Freehold Property, Plant & Equipment

Amount

31-12-2020 ll rO-00-zOzo

1,073,642 -- 1@J$,3?468,413,33364,934,650+

1,138,576,979 1,130,s96,707

4.01

485,804,1443,794,994

175,373,77314,513,34019,364,81435,104,45316,794,89014,586,32413,383,853

---548-rcF46-478,294,762

3,632,717176,070,054

15,484,96818,699,46234,933,50713,819,71215,817,09714,803,915

235,750,635---1,0?3,642 '.t,oazlas,stt

4.02

5.00

Right of Use of Assets (ROU)

The details break-up is made up as follows:ParticularsROU Assets 64,934,650 68,413'333

Total Right of Use of Assets (ROU) 64,934,650 68'413'333

lntangible AssetsrThe details break-up is made up as follows:

Particulars/01,553 ---7

Details of lntangible Assets are shown in "Ann.exure- B"

6.00 lnvestment in Associates:

The movement of the investment is as below:Particulars 11'669,774 10,775,589

SoftwareTotal

ADN lntemational Gateway LimitedTotal

6.01.1 MvTel Limited:The movement is as below:

701,553 775,196

---------.---_=-i-11,66s,774 'nl5?:?33

_____J1_,66e111_ _____11,66e111_

11,669,774 11,669,774

---sj6,27s

--------:-9,242,211 9,265,275

_ 23,0649,242,2',11 9,242,211

-

Add: Addition during the Period

Add: Share of profit of AssociatesClosing Balance

The details break-up is made up as follows:

Particularsii e'242'211

6.02 2,427,563

Add: Addition during the Period

Less: Share of loss of AssociatesClosing Balance

ADN Telecom Limited holds 32yo shares of My Tel Limited. As per IAS 28 this investment is required to be treated as

lnvestment in Associate using Equity Accounting Method. Under Equity Accounting the carrying value of the lnvestment in

My Tel Ltd. is equal to cost plus any profit earned or loss incuned after acquisition.

13

6.02 ADN lnternational GatetvqltllqilglUThe movement is as below:

Particulars M,s63 ----T3lc.:l,T

2,427,563 1,510,314

--------:- 917,2+92,427,563 2,427,563

--

ADN Telecom Limited acquired 40% shares of ADN lnternational Gateway Limited. As per IAS 28 this investment is

required to be treated as lnvestment in Associate using Equity Accounting Method. Under Equity Accounting the carrying

value of the lnvestment in ADN lnternational Gateway Limited is equal to cost plus any profit earned after acquisition.

Date of Date ofName of the Bank . - .ED.R fig.-- . !s?qe-- Matgrilv --Eastem Bank Ltd 7 41'440'000 40'000,000

Eastern Bank Ltd 1045450448034 5-Jul-20 4-Jan-21 10,360,000 10,000,000

Prime Finance Ltd TDR-10698/20 9-Mar-20 20'000'999T^+-r 51.800,000 70,000,000

-:

Trade and Other Receivables:The details break-up is made up as below:

ParticularsTrade Receivables 328,688'210 312'796'916

fff;neceivaures -ffi--+3if3ffiAdvance. Deposits and Prepavments:This is made up as follows:

ParticularsAdvance 296,356,663 168'069'209

Deposits =l!'9^?!^'!29. --WT^.-r 330,980,801 197,192,642::All the above Advance, Deposits & Prepayments are considered secured by the management.

10,00 Cash and Cash Equivalents:The details break-up is made up as follows:

346,271,692 387,899,247

9.00

Opening BalanceAdd: Additions during the Period

Add: Share of profit of associatesGlosing Balance

7.00 lnvestment in FDRThe details break-up is made up as follows:

8.00

Cash at BankTotal

11.00 Share CaPital:

Authorized Capital:200,000,000 -Ordinary Shares of Tk. 10 eachTotal

11.01 tssued. Subscribed. and Paid'up Capital:64,651 ,666 Ordinary Shares of Tk. 10 eachTotal

11.02 The Detail Shareholdinq positions are as follows:

Asif Mahmood'Md. Moinul lslamMd. MahfuzAli SohelSavoy lce Cream Factory Ltd.

Vanguard AML BD Finance Mutual Fund One

Henry HiltonMd.Abu Yousof ZakariaMohammad Ali SarkerMamonoor RashidSub-Tota!Other than Sponsors and Directors 11 .02.1

Total

347,715,236 388,999,602

--Z poo poo.ooo --2-o6-o-iio,oo6l2,000,000,000 2,000,000,000:

--- 646"5Tq660 -- 6465rc-660 I646,516,660 646,516,660

19.18o/o 124,000,00010.07o/o 65,100,0001}.07o/o 65,100,0002.08Yo 13,450,0002.060/o 13,333,3400.19o/o 1,240,0002.640/o 17,050,000

19.18%10.07o/o

10.07o/o2.08%2.06Yo0. 1 97o2.640/o

2.640/o2.640/o

-sl56f-48.44o/o100%

't 24,000,00065,100,00065,100,00013,450,00013,333,340

1,240,00017,050,00017,050,00017,050,000

333,373,3403',t3,143,320646,516,660

2.640/o

2.640/o

17,050,00017,050,000

51.56% 333,373,34048.44o/o 313,143,320ffi

Name of Shareholders Notes31-12-2020 30-06-2020

%otHoldins

Amount in Taka!" ot

HoldinqAmount in Taka

and Directors:

11.02.1

ADN Technologies LimitedADN Telecom Ltd. Employees PFAnita KhanAhmad RashidB&BEnterpriseLtd.City Bank Capital Resources LimitedDigicon Technologies LimitedErshad Securities Ltd.GSP Finance Company (Bangladesh) Ltd.Humayun BokhteyarKazi Faruq KaderKazi Md. DeenKazi Shafiqul lslamKh. Moinul Ahsan ShamimKhilfat Jahan JohairaKhwaja Equity Services Ltd.KJS Enterprise LimitedMd. Azizul HoqueMd. Hossain MiahMd. lsmail HossainMd. Monirul HoqueMizanur RahmanParloivay Holdings Ltd.Parkway Securities Ltd.Pradip Kumar DeyRaisuddin Ahmed KhanSaifullah Abdullah SolenkhiSaika SultanaSEAF Bangladesh Ventures LLC.SEAF Bangladesh Ventures Ltd.Shafika SalamSharmin RahmanTareque Muhammud Aminul lslamWaliur RahmanZannatul MahmudaGeneral PublicTotal

0.460/o 2,960,0000.310/o 2,000,0000.31Yo 2,000,0000.93%0.620/o

0.46%

0.62%0.15%0.08%

6,000,0004,000,0003,000,000

0.46%0.31o/o

0.31%0.93%0.62%0.460/o2.9900.93%0.31%1.08o/o

0.08%0.31%0.15o/o

0.540/o0.31o/o

0.470/o0.460/o

0.250/o0.15%0.08%0.15o/o

0.15o/o

0.08o/o

0.310/o0.31o/o0.19o/o

0.15o/o0.05%0.15o/o1.99o/o

1.99%0.15o/o

0.08%0.620/o

0.150/o

0.08%

2,000,0002,000,0006,000,0004,000,0003,000,000

19,333,3406,000,0002,000,0007,000,000

500,0002,000,0001,000,0003,508,3402,000,0003,020,0003,000,0001,600,0001,000,000

500,0001,000,0001,000,000

500,0002,000,0002,000,0001,240,0001,000,000

340,0001,000,000

12,858,32012,866,660

1,000,000500,000

4,000,0001,000,000

500,000

2.99o/o 19,333,3400.93% 6,000,0000.31o/o 2,000,0001.08Yo 7,000,0000.08% 500,0000.31Yo 2,000,0000.15%0.54o/o

0.310/o

0.470/o

0A6%0.25o/o

0.150/o

0.08%0.15o/o 1,000,0000.15%0.08%0.31o/o

0.31o/o

Q.19o/o

0.15%0.05%0.15%1.99o/o 12,858,3201.99Yo 12,866,6600.150/o 1,000,0000.08o/o 500,000

1,000,0003,508,3402,000,0003,020,0003,000,0001,600,0001,000,000

500,000

'1,000,000

500,0002,000,0002,000,0001,240,0001,000,000

340,0001,000,000

4,000,0001,000,000

500,00030.6't% '197,916,660 30.61% 197,916,66048.U% 313,143,320 48.M% 313,143,320

12.00 Share Premium:The details break-up is made up as follows:

Parliculars ---Epo5/64Add: Received during the period

Less: Adjstment during the periodClosing Balance

13.00 RetainedEarninqs:The details break-up is made up as follows:

- 372,083,342

- 4i5704^659 4s5.ogs^so6

413,704,659 413,704,659

(96,977,499)77 ,737 ,045 161 ,468,391

554,070,1 1 0 s73,310,564

ParticularsOpening Balance 573,310,564 411,842,173Dividend Declared for the year 2019-2020Add: Profit during the periodClosing Balan'ce

Lease Liabilites:The movement is as follows:ParticularsOpening BalanceAdd: During the periodAdd: lnterest charged during the period

Less: Paid during the periodGlosing Balance

71,025,30716,187,9953,723,908

90,937,209

___104W4,800,0007,585,632

117,157,848

14.0121 ,737,564 46,132,541

15

69,199,645 71,025,307

14.00

14,01 The details break-up is made up as follows:ParticularsPayment Less than 1 YearPayment above 1 to 5 YearsTotal

15.00 ShortTerm Loan:The details break-up is made up as follows:

The C\ty Bank L\d. NC# 8331361323S01 , Gu\shan BrandnEastern Bank Ltd. Bank A/C 1 042040369502 Gulshan Branch

16.00 Accrued Expenses:The details break-up is made up as follows:

Particulars

39,883,654 39,883,65469,199,645 71,025,307

29,315,991 31 J41 S53

Particulars

4,12$,8't129,018,287

4,12S,8'11

43,091,236 37 ,077 ,068

Salary & AllowancesDireclor Remuneration

. Bandwidth and Fiber RentIPTSP lnterconnection ChargesOvertime, Holiday Allowance & ConveyanceProvision for RentProvision for Bad debtsVehicle ExpensesMobile BillProvision for GratuityProvision for Consultancy FeeUtility ExpensesTotal

17.00 Provision for Workers' Profit Participation and Welfare Fund:The movement is as follows:

ParticularsOpening BalanceAdd: Provided during the period

Less: Disbursement during the periodClosing BalanceAs per Bangladesh Labor Act 2006 as amended in 2013, the amount is computed

18.00 Trade and Other Pavables:The details break-up is made up as follows:

--@-rlezm765-

19,808,360

46,845,4882,201,123

740,212531,833

4,568,O771 ,157,000

494,23644,399,934

1,O77,082

21,192,139179,000

16,876,5211,662,5652,647,257

656,4783,303,7941,353,600

543,1 9349,375,668

616,0002,080,048

-5Jo-ilTg+7,786,474

7,786,4744,639,917

12,426,391 1s,79s,668

12,426,391 7,786,474

@@

Particulars -@@Other PayablesTotal

33,465,488 50,225,615

_____41 ?ryln_ _____208,82s,837_

.:

19.00 Provision for Tax Liabilitv:The details break-up is made up as follows:

ParticularsCurrent TaxDeferred TaxTotal

19.01 Provision for Current Tax:The movement is as follows:

Particulars

1

___1q9f94,591- -rrrlr'eOe-143,574,640174,894,447

31,3 --M@Balance

Add: Provision made during the period

Less: Adjustment & Paid during the period

Glosing Balance

19.02 Provision for Deferred Tax:The details break-up is made up as follows:

Particulars

11,834,378 15,992,19?

- 43,1s4,186 44,215,118

flW -l6mo6'sz6Balance

Add: Provision made during the period

Less: Provision realized during the period

Glosing Balance

19.02.1 Galculation of Deferred Tax:The details break-up is made up as follows:

Particulars

19.02.1

CarryingAmount as per

Financial

Carrying Amountas per TaxAuthority

TimingDifference

3,226,913146,801,553 163,806,526

- 20,231,886

-146,801,553 143,574,640

Property, Plant & EquiPment

As on 31 December.2020Property, Plant & EquiPmentTaxable TemPorary DifferenceApplicable Tax RateDefened Tax Expenses for the period 01 July to 31 December 2020

Deferred Tax has been calculated on taxable temporary differences

considered to calculation of defened tax.

Reconciliation of Deferred Tax Provision durinq the period:

Defened Tax Liability as on 30 June, 2020

Deferred Tax ExPenses/(Gain )

Deferred Tax Liability as on 30 December, 2020

only as per Prudent Concept. ROU Assets is not

143,574,640'

1,062,183,374

1,073,642,328

487,884,808

486,436,108

574,298,566

19.02

12.907,654

Notes

161,790,431 154,650,354

_l9zoq94l_ ___9q,6_al-€z!_

01 Octto 31 ll 01 Octto 31

oec'2020 ll Dec'2019

'tu0,73s-s-o-f ---1d176tr62.396.277 46,513,58677,892,41 76,888,392

___n1M 361_ ____3lq!_AqE94_

-_@fr{---@4,16112,738,141 12,3s3,68431,699,828 31,598,3385,493,678 42,721,579

21,070,400 19,783,548

20.00 Net Revenue:The details break-up is made up as follows:

Local ServiceslT Support & ServicesTotal

21.00 CostofGoods Sold & Services:The details break-up is made up as follows:

ParticularsBandwidth Costlnfrastructure, Optical Fiber & Network Equipment CostSalary & AllowancesCost of Project SalesFiber Lease RentlP Telephony lnter Connectivity ExpensesBTRC Charges on EquipmentBTRC License FeesConsumable ltemsEntertainmentFire and Burglary lnsurance ExpensesPOP Expenses and RentIPTSP Revenue Sharing with BTRCEquipment Repair & MaintenanceTelephone, Fax, Mobile & CourierTravelling & ConveyanceVehicle ExpensesUtilitiesDigital Business CostDepreciationTotal

Director RemunerationGroup Life lnsurance PremiumHR ConsultancyProfessional & Technical FeesTelephone, Fax, Mobile & CourierOffice MaintenanceTravelling and ConveyanceEntertainment ExpensesIPO ExpensesMedical ExpensesPrinting & StationeryNewspaper, Books & JournalsLicense & Regulatory FeeOffice RentRepairs & MaintenanceVehicle ExpensesTraining & Development ExpensesUtility ExpensesAGM ExpensesAmortization ExpensesDepreciationTotal

Advertisement ExpenseBusiness Promotion ExpensesTravelling and ConveyanceEntertainment ExpensePrinting & StationeryTelephone, Fax, Mobile & CourierVehicle ExpensesTender Participation ExpensesBad Debts Collection ChargesBad DebtsTotal

129,122,66718,852,11266,832,81912,176,66438,736,689

2,596,940

443,6704,509,865

60,097414,000

5,041,169312,345

1,425,1982,299,058

215,2004,971,6146,177,1604,064,664

[email protected],107,26667,296,85648,228,39936.672.488

2,403,0891 39,148

1,267,8752,014,569

68,823403,219

1 6,796,352490,069

1,215,7681,852,731

,$06,061

4,664,3574,391,2368,945,018

1,391 ,371

443,6703,628,278

8,687

1,734,253144,094

1,048,4681,188,046

73,0862,621,1473,348,4712,885,735

521,3351 39,1 48

1,267 ,875717 ,344

zt ,o tc

s,684,S0;242,074811 ,671

1 ,1 26,559276,353

2,442,8422,025,8447,325,352


Particulars Notes

-fr1443F1,200,00012,346 34,710

1,925,000288,750

1,119,1862,588,916

735,265714,623

2,440,055616,997881,725

72,6601 89,866

298,666182.484896,1 58371,2061 66,043

768,069253,451

20,0501 63,1 98

600,00012,346

1,925,0001 16,000282,740

1,386,557304,780351,128148,620s38,455s95,330

37,90211,998

3,373,891580,834

1,464,856257,347

2,099,999236,23837,950Annexure-B

Annexure-A

2,141,353 4,983,5971 1,300,003 12,225,327

876,042 2,722,31948,236 260,85655,625 415,886

6,684,532775,203 437,633

3,109,682 3,845,238379,663 102,200

4,187,721 1,805,681236,238 323,00075,900 34,884

635,1 761,994,874

---mI56735 - ---7456Id5101,025 3,711,095

3,631,096 4,575,332641,513 2,001,91234,578 133,70222,193 355,386

255,187 318,125229,684 1,125,95069,609 32,625

544.283

----21, -9 - -29112,42-

92,735 62,36133,998 34,946

1,264,283 569,820

-----50315J!4q- -----01,EL1031-

Annexure-A 45,276,203 30,370,375 24,892,689 15,487,445

---14:L5egJt4- ---308J40*487- --159.U2,9!!- ----217-Z58iB-

-21,ss-155572f--1o14o,2uzte,a'tq

388,1 10875,917

3,557,112499,662366,390

83,2001,293,974

456,39234,226

413,311

835,0086,1 33,067

131 ,4354,355,985

323,00073,644

525,4751 ,1 15,543

23.00@The details break-up is made up as follows:

Particulars --365865-

9,782J49 3,165,352 3,987,321 1,555,959

-_--24JU,659- -09314.025- -i5,45J20---34058i!-01-

18

01 Jul to 31 ll 01 Jul to 31

Notes24.00@


Particulars ---a@ ------7NT -----Tfr7]drlntereston FDR '1,383'114

--------------j- 190'577

rotal 3.831'657 =' -----3'@J9!- ------320.0!E- ----1'91'151-2s.00 E!E!s!c!_Erp9!s€i


Particularsi --rl-55,&00-

01 Jul to 31 ll 0t Jut to slDec'2020 ll Dec'2019

3,723,906 8'10,865843,966 699,113

(39,963) (512,755)

-____!g_&1_ -____3A57-823 _

Ol Octto3l ll Ot octtostDed2020

---12s,6-s1-----1sDFfT2,052,159 448,408

463,362lnterest on Finance LeaseBank Service Charges

Exchange (Gain/LossTotal

26,00 Income Tax Expenses:The details break-up is made up as follows:

Deferred Tax Expenses/(lncome)Total

26.01 @!sDn-@csc!!-EProfit before taxAdd: lnadmissible ExpensesLess: Admissible Expenses-Tax Depreciation & EntertainmentProfit before corporate TaxProvision for current tax (a)

Particulars

4,867,845 5,969,778 2,641,202(603) (491,655)

__2849,!99_ _____2@-349_

Particulars ---11350.g-io-- ---r,e-36J-81------41il1F(381 ,894) (1 ,440,816)19.02 3,226,913 3,376,995 (381,894) (1,440,816)

-----15r06L292- ----l!J21355- -J'554A4-

---2J13312-92,798,337 72,103,04955.533,075 50,936,565(48,774,053) (58,78s,475)99,557,360 64,254,139

40,533,626 31,634,47329,089,319 37,945,480(16,738,342\ (48,537,870)52,884,604 21,042,083

Tax

1i,834,318 1'1,350,870 2,936,187 4,154,128

(a) Computation of Current Tax for the period of 01 July 2020 to 31 December 2020:

lncome apportion as perpercentage of Revenue Rate

Export lncomelT Support & ServicesLocal lncome

27.00 EamDd,erSIaIe-GegL27.01 @


Weighted Average Number of Ordinary SharesOutstanding during the PeriodBasic Earnings Per Share (EPS) (Restated)

Total number of Exlsting share

47,630,324 7250% 5,953,79028,404,685 0.00%23,522,351 25.00% 5,880,588

__-ffi56il- @-

Particularsi ----dw{ ---E5'i533.--@7d1-

27.03 64,651,666 64,651,666 64,651,6664.89 0.59 0.45

27.02 Diluted Earninq oerShare (Restated):The details break-up is made up as follows:

Particularsi [email protected]

Diluted Eaming Per Share (Restated)

EPS has been calculated as per IAS 33.

27.03 Total Number of Ordinarv Shares as on 30 June' 2020:The following calculation is for the denominator of the EPS calculation.

Particulars Shares in lssueiTotal 64.651'666 64'651,666 64'651,666 ..== 64.651.666

27.04 Total Number of Ordinarv Shares as on 31 December. 2020:The following calculation for the denominator of the EPS calculation.

Number ofDays

Total

2S.00The details break-up is made up as follows:

Particulars

Particulars Outstgl-ding Shar-ei !l ls-s.y-e

64,651,66664,651,66664,651,66664,651,666

-----64-451,006- ----!4o5LOOC- --o4-AsLOOO-

----i4-O5Lo6L

646,51 6,660 --*646516,666- --Z6s-6-866- ---676s15F60

64,651,666 64,651,666------------Tfr----------0:60-

----52575 ----NfireT64,651,666 64,651,666

-----------030- -----------T75-

Number of Weighted Average Number of Shares

Number of Weighted Average Number of Shares

Share CapitalShare PremiumRetained earningsNet Asset Value (NAV)

Total number of Existing shareNet Asset Value Per Share (NAV) (Restated)

413,704,659 425,588,804 413,704,659 413,704,659554,070,110 469,217,357 554,070,110 M0,296,196:+-1,6M,291,4n 1,s41,322,821 1,614,291,429 1,s00,s17,s15

64,65'l ,666 64,651,666 64,651 ,666

-nflT8tw64,651,666

19

27.04

01 Jul to 31 01 Ju! to 31

Dec'2020 Dec'2019

29.00 Net Operatinq Cash Flow per share (Restated):The details break-up is made up as follows:

Notes

NotesParticularsNet Cash Flow from Operating ActivitiesTotal number of Existing shareNet Operating Cash Flow per share (Restated)

24,905,241 24,183,80264,651,666 64,651,666

0.39 0.37

Reconcitiation of Cash Flow from Operating Activities throqh lndirect Method:

As per Clause No. 5 (2) (e) of Notification No. BSEC/CMRRCD/2006-158/208/Admin/81, Dated: 20

June 2018: A Reconciliation of Net operating cash flow under lndirect Method is provided below:

ParticularsCash flow from Operating Activities:As per direct method

As per indirect method:Profit after lncome taxAdd: Non Gash itemDepreciation ChargesAmortization of lntengible assetsProvision for Workers' Profit Participation Fund (WPPF)lncome Tax Provisionlnterest lncomeDecrease/lncrease in Trade and Other Receivableslncrease in Advance, Deposits and PrepaymentsDecrease/lncrease in Trade and Other Payableslncrease in Accrued Expenseslncome Tax PaidNet Gash FIow from Operating Activities

Amount in BDT

57,375,184

33,535,72775,900

3,605,15211,350,870(3,462,797)(7,755,016)

(15,501,342)(75,023,649)28,432,212

24,905,241 24,183,802

77,737,045

55,058,35273,644

4,639,91715,061,292(3,831,657)

(16,828,564)(133,788,159)

5,446,29021,337,082

31.00 Additional Disclosures:i. last period ((July'2019 to December'2O19) OTC Revenue under Export service but this year no

such Revenue incurred. So Export service revenue decreased and cost of project sales also

decreased.

ii. lmplemetation of IFRS-16, POP and Office Rent is treated as ROU Assets oposite on Lease

liability. Charged on depreciation and interest respectfully on it. So POP expense and Rent, Office

rent decreased, on the other side Depreciation and lnterest of Finance lease expense increased.

iii. Management has introduced pick & drop service in this COVID 19 pandemic situation

considering employees health & safety. There are required to rental car to continue the pick & drop

service and Vehicle expense is increased.

iv. Due to COVID 19 pandemic situation considering employees health & safety. Office maintenance

expense increased for hand sanitizer, musk and others health & satfety equipments.

v. Director Remuneration payment has stop from July 2020"

vi. ln this period tax authority has changed depreciation rate of some assets items. That's why thisperiod deferred tax figure shown positive.

20

32.00 Related Partv Disclosures:During the year the Company carried out a number of transactions with related parties in the normal course of business and on an

arm's length basis. The name of related parties, nature of transactions, their total value and closing balances have been set out inaccordance with the provisions of IAS 24 "Related Party Disclosure":

SLName of

Company/PartyRelationship

Nature ofTransaction

Ref.Note

Balance ason 01.07.2020

Total Transaction FY Balance as on31j2.2020Addition

PaymenUAdiustment

1

Tech ValleyNetworks Ltd"

3oncern underlommon'nanaqement

EquipmentPurchase

9 7,575,057 65,881,089 1,520,153 71,935,993

Sub-Total 7,575,057 65,881,089 1,520.153 71.935,993

2

ADN TechnologiesLtd

3oncern under]ommonTanagement

Advance forand orrrchase

I 12,506,655 12,506,655

lntercompanyLoan

B 19,898,350 19,898,350

Cost Sharing 8 269,245 269,245

lnterestReceivable

8 726,631 892,972 1,619,603

Sub-Total 33,400,881 892,972 34,293,853

JMy Tel Ltd

3oncern underlommonTranagement

lntercompanyLoan

6 14,457,409 14,457,409

lnvestment lnShare

6 9,288,339 9,288,339

Sub-Total 23.745.748 23,745,748

4ADN lnternationalGateway

3oncern under]ommonnanagement

ServicePurchase

I 14,856,869 14,856,869

SecurityDeposit

I 2,246,533 2,246,533

lnvestment lnShare

6 2,427,563 2,427,563

frade Payable 18 12,505,368 11.617.392 32.351.151 (8.228.391

Sub-Total 32,036,333 11.617.392 32.351,151 11,302,574

5lnGen TechnologyLtd"

Ooncern under30mmon.I.lanagement

lntercompanyLoan

8 23,750,000 23,750,000

Cost.Sharing B 13,858,879 13.8s8,879

lnterestReceivable

8 5,473,366 1,065,822 6,539,188

Total 43,082,245 1,065,822 44.148.067

6ADN EduservicesLtd.

Ooncern under30mmon'nanagement

lntercompanyLoan

9 31,480,000 31,480,000

Cost Sharinq 9 7,242,362 2,031,803 9,274,164lnterestReceivable

8 7,442,815 1,489,749 8,932,564

Sub-Total 46,165.177 3,521,552 49,686,728

Grand Total 186,005.441 82,978,827 33,871,304 235,1 1 2.963

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