Power-System Development Company Ltd.

Statement of Financial Position

As at 30th June 2020

2020 2019
Notes
Taka Taka
Assets
Non current assets
Property, plant and equipment 3 38,888,405 45,360,984
Current assets
Accounts receivable 4 30,525,689 28,797,820
Advance, deposits & prepayments 5 103,303,531 75,717,620
Advance income tax 5.01 - -
Cash and cash equivalents 6 75,466,185 18,199,576
209,295,405 122,715,016
Total assets 248,183,810 168,076,000

Equity
Share capital 7 10,000,000 10,000,000
Retained earnings 8 195,859,786 141,738,018
205,859,786 151,738,018
Current liabilities
Accrual and provision 9 9,787,377 9,433,718
Income tax provision 10 285,221 43,146
Term loan 11 32,251,425 6,861,118
42,324,023 16,337,982

Total equity and liabilities 248,183,810 168,076,000

These financial statements should be read in conjunction with the annexed notes.

Director Managing Director

 Power-System Development Company Ltd.
Statement of Comprehensive Income
For the year ended on 30th June, 2020

2020 2019
Notes
Particulars Taka Taka

Fees & charges 12 680,679,245 616,304,971

Operating expense 13 (451,584,086) (411,653,679)
Gross profit 229,095,160 204,651,292
General and administration overheads 14 (139,515,354) (126,477,920)
Operating profit 89,579,805 78,173,372
Others income 15 968,300 172,584
Income from business 90,548,105 78,345,956
Finance cost 16 (3,182,000) (1,119,300)
Profit before tax 86,397,805 77,054,072
Income tax expense (32,276,037) (29,467,608)
Income tax expense for previous year - -
Net profit after tax 54,121,768 47,586,464

Director Managing Director

 Power-System Development Company Ltd.
Statement of Changes in Equity
For the year ended on 30th June, 2020

Share money
Particulars Share capital Retained earning Total
deposit

Balance as on 01 July 2018 10,000,000 29,719,319 - 94,194,700

Net profit after tax for the period - 47,586,464 - 47,586,464
Dividend paid - - - -
Balance as at 30th June, 2019 10,000,000 77,305,782 - 141,781,163

Balance as on 01 July 2019 10,000,000 77,305,782 - 141,781,163

Net profit after tax for the period - 54,121,768 - 54,121,768
Dividend paid - - - -
Balance as at 30th June, 2020 10,000,000 131,427,551 - 195,902,932

Accounts Manager Director Managing Director

 Power-System Development Company Ltd.
Cash Flow Statement
For the year ended on 30th June, 2020

2020 2019
Taka Taka
Cash flows from operating activities:
Net profit before tax 86,397,805 77,054,072
Depreciation 9,472,578 11,062,998
Operating profit before changes in working capital 95,870,383 88,117,070
Changes in working capital
(Increase)/ decrease in trade and other debtors (1,727,869) (27,160,560)
Increase/(decrease) in Advance, Deposit & Prepayment (27,585,911) (43,773,085)
Increase/ (decrease) in current liabilities 353,659 11,974,866
Increase/ (decrease) in Term loan 25,390,307 6,861,118
Increase/ (decrease) Income tax provision - (43,146)
(3,569,814) (52,140,807)
Cash generated from operating activities 92,300,570 35,976,263
Income tax paid (32,033,962) (29,467,608)
Net cash (used)/ generated in operating activities 60,266,608 6,508,655

Cash flows from investing activities

Acquisition of fixed assets 3,000,000 36,168,524
Disposal of fixed assets - -
Net cash used in investing activities (3,000,000) (36,168,524)
Cash flows from financing activities
Increase/ (decrease) in long term loan - (6,861,117)
Increase/ (decrease) in Share money deposit - -
Increase/ (decrease) in Paid up Capital - -
Net cash flow form financing activities - (6,861,117)
Net increase/(decrease) of cash and cash equivalents 57,266,608 (36,520,986)
cash and cash equivalent at the beginning of the year 18,199,577 54,720,563
Cash and cash equivalent at the end of the year 75,466,184 18,199,577

Managing Director Director Accounts Officer

 Power-System Development Company Ltd.
Notes to the Financial Statements
for the year ended on 30th June, 2020
1 Status and activity of the company
1.1 Background of the Company
Power System Development Company Ltd. is a private limited company incorporated under
Bangladesh Companies Act 1994 on 3rd December 2014 bearing registration no. C-119663/14.
The registered office of the company is situated at Dhaka, Bangladesh.
1.2 Nature of Business
The company plans to carry on the business of contractors, designers, planners, consultants,
architects, engineers, building contractors, electrical contractors and mechanical engineers and
dealers in an exports and imports of lime, cement, timber, steel, stone, paints and all sorts of
building materials, fixtures & fittings.

2 Summary of significant accounting policies

2.01 Basis and convention of accounting

These financial statements have been prepared on going concern basis under historical cost
convention in accordance with the Bangladesh Financial Reporting Standards (BFRS) and
Bangladesh Accounting Standards (BAS), the Companies Act 1994 and other applicable laws
and regulations in Bangladesh as applicable.
2.02 Property, plant and equipment

Tangible fixed assets have been stated at cost as reduced by accumulated depreciation. Fixed
assets costing less than Taka 1,000 are recognized as expenditure irrespective of their useful
lives.
2.03 Depreciation

Depreciation is provided on all fixed assets, at various rates on a reducing balance method
over their estimated useful lives. Depreciation on additions to fixed assets are charged for the
full year in the year of acquisition while no depreciation is charged in the year of
retirement/disposal, Property, plant and equipment
Rates of Depreciation
Name of Fixed Assets
(%)
Mixture Machine 20%
Furniture & Fixtures 10%
Computer 20%
Fire Extinguishers 20%
Vibration Machine 20%
Water pump 20%
Bricks breaking Machine 20%
Welding Machine 20%
Steel shutter 20%
2.04 Accounts receivable

Accounts receivable, which generally have within 90 days terms, are recognized and carried at
original invoiced amount.

2.05 Revenue recognition

Revenue is recognized net of discounts when the products are delivered and accepted by the
customer. In few cases the Company is used to sale on credit in most of the cases the products
are sold in cash at their different sales outlet in Dhaka and elsewhere. In case of credit sales the
revenue so recognized are recovered within 30 to 45 days.

2.06 Inventories

Inventories are valued at lower of cost and net realizable value. Inventories comprise of raw
materials, goods in transit, work-in-process, finished goods.

2.07 Intercompany Payables

Intercompany payables are usually settled on 60 days terms and are carried at cost.

2.08 Tax Rate

The company's applicable tax rate is 32.5% on the net earnings

2.06 Foreign currency transactions

a) Foreign currency transactions have been converted into Bangladesh Taka at the prevailing
rate on the date of transaction.
b) The imported plant & equipment has been converted at historical rates.

2.07 General

(i) Figures appearing in the financial statements have been

(ii) Previous year figures have been rearranged, whenever considered necessary to
conform to the current year's presentation.
 2020 2019
Taka Taka
3 Property, plant and equipment
Cost
Balance as at 1 July 65,244,946 29,076,422
Add: Addition during the period 3,000,000 36,168,524
68,244,946 65,244,946
Less: Adjustment/disposal during the year - -
Balance as at 30 June 68,244,946 65,244,946

Accumulated depreciation
Balance as at 1 July 19,883,963 8,820,965
Add: Charged during the year 9,472,578 11,062,998
29,356,541 19,883,963
Less: Adjustment/disposal during the year - -
Balance as at 30 June 29,356,541 19,883,963
Written down value as at 30 June 38,888,405 45,360,983
The details of property, plant and equipment are shown in Annexure - A
4 Account receivables 30,525,689 28,797,820

5 Advance, deposits and prepayments:

Advance for site expenses 64,270,563 57,901,408
Bank guarantee 39,032,968 17,816,212
Advance income tax 5.01 -
103,303,531 75,717,620
5.01 Advance income tax
Opening balance - 465,079
AIT deducted at supply stage 27,304,837 25,694,144
AIT deducted on import stage 4,630,495 3,291,127
AIT on bank interest 98,630 17,258
32,033,962 29,467,608
Adjust with income tax (32,033,962) (29,467,608)
- -
6 Cash and cash equivalents
Cash in hand 288,455 531,205
FDR 46,984,421 4,730,596
Cash at bank 6.01 28,193,309 12,937,775
75,466,185 18,199,576
6.01 Cash at bank
Prime Bank Limited 8,707,793 12,937,775
Eastern Bank Ltd. 19,485,516
28,193,309 12,937,775
 2020 2019
Taka Taka
7 Share Capital
Authorized capital
1,000,000 ordinary shares of TK.10/- each 10,000,000 10,000,000

Issued ,subscribed and paid up capital

1,000,000 ordinary shares of TK.10/- each are fully paid up. Details of the shares held by the shareholders are
as under:
No. of shares Amount in taka
Name of Shareholders Established in
2020 2019 2020 2019
Md. Gias Uddin Bangladeshi 400,000 600,000 4,000,000 6,000,000
Kazi Umme
Bangladeshi 300,000 3,000,000
Kulsum
Mr. Arif Mahmood Bangladeshi - 200,000 - 2,000,000
A. S. M Seraj Uddullah Bangladeshi - 200,000 - 2,000,000
Lalina Akter Bangladeshi 100,000 - 1,000,000 -
S.M Nasim Uddin Sumon Bangladeshi 100,000 - 1,000,000 -
Ishtiaque Ahmed Bangladeshi 100,000 - 1,000,000 -
1,000,000 1,000,000 10,000,000 10,000,000

8 Retained earnings
Opening balance 141,738,018 94,194,700
Profit during the year 54,121,768 47,543,318
195,859,786 141,738,018

9 Accrual expenses
Salary expense 3,660,092 3,588,325
Wages 4,949,951 4,852,893
Other project expense payable 666,203 653,140
Utilities 219,667 215,360
Withholding VAT payable 65,840 -
Withholding Tax payable 35,625
Audit & Legal fee 150,000 100,000
Office Rent 40,000 24,000
9,787,377 9,433,718
10 Provision for tax
Opening balance 43,146 -
Add: Tax charged on profits @ 35% 32,276,037 29,510,754
32,319,183 29,510,754
Less: Adjust with AIT (32,033,962) (29,467,608)
285,221 43,146

11 Fees & Charges

Term Loan 32,251,425 6,861,118

12 Fees & Charges

Sales 680,679,245 616,304,971
 2020 2019
Taka Taka

13 Cost on construction and Installation expenses

Construction & other materials 222,927,129 203,215,250
Imported machinary 92,609,907 84,421,064
Labor & wages 81,033,853 73,868,599
Machine hire expenses 2,245,939 2,047,346
Fuel & power 26,142,471 23,830,876
Site preparation expenses 13,989,433 12,752,446
Temporary office room & labor shade 12,635,354 11,518,098
451,584,086 411,653,679
14 General and administrative overheads
Salary & allowances 114,385,316 101,405,422
Office rent 324,864 288,000
Printing & stationery 243,232 215,631
Travelling & conveyance 6,807,791 6,164,049
Entertainment 535,980 475,160
Bank and LC charges 3,419,494 3,031,466
LC Commission 2,964,539 2,628,137
Licenses & Renewals 352,568 312,560
Audit & Legal fees 112,800 100,000
Utilities 447,647 396,850
VAT expense 448,546 397,647
Depreciation 9,472,578 11,062,998
139,515,354 126,477,920
15 Income from others source
Bank interest 968,300 172,584
968,300 172,584
16 Finance Cost
Interest Bank Loan 3,182,000 1,119,300
 Annexure - A
Power-System Development Company Ltd.
Schedule of Property, plant and equipment
As at 30th June, 2020
Amounts in Taka
COST DEPRECIATION
Written
Additions Disposal Rate Balance as on Adjustments Balance as on Down Value
Particulars Balance as on Balance as on Charges for
during the during (%) 1st July, during the 30th June, as on 30th
1st July, 2019 30th June 2020 the year
year the year 2019 year 2020 June 2020

Mixture Machine 869,457 265,870 - 1,135,327 20% 349,016 157,262 - 506,278 629,049
Furniture & Fixtures 2,538,121 - 2,538,121 10% 541,935 199,619 - 741,553 1,796,568
Computer & printer 543,090 75,300 - 618,390 20% 244,402 74,798 - 319,200 299,190
Fire Extinguishers 1,236,160 - 1,236,160 20% 508,179 145,596 - 653,775 582,385
Electrical Test Equipment 48,509,730 1,936,965 - 50,446,695 20% 14,191,836 7,250,972 - 21,442,808 29,003,887
Vibration Machine 45,750 - 45,750 20% 22,326 4,685 - 27,011 18,739
Water pump 810,658 - 810,658 20% 328,404 96,451 - 424,854 385,804
Bricks breaking Machine 75,000 - 75,000 20% 44,280 6,144 - 50,424 24,576
Steel shutter 10,616,980 721,865 - 11,338,845 20% 3,653,585 1,537,052 - 5,190,637 6,148,208
Total for 2020 65,244,946 3,000,000 - 68,244,946 19,883,963 9,472,578 - 29,356,541 38,888,405
Total for 2019 29,076,422 36,168,524 - 65,244,946 8,820,965 11,062,998 - 19,883,963 45,360,984