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1. 1
BUS 101
Introduction to Business
Submitted To:
Term paper on
GrameenPhone
Submitted By:
Name ID
Sec:
Submission Date:
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2. 2
Chapter 1: Introduction
Page Number
 History 1
 GrameenPhone profile
 Shareholder Profiles
Chapter 2: Management Structure
 Ownership Structure
 Management Profile
 Management Organogram
 Management Profile
 Vision
 Mission
 Values
 Numbers of employees
 Geographic locations
Chapter 3: Ethical Policies
 Code of Conduct
 Restrictions on Dealings in GP Shares by Insiders
 Supplier Conduct Principles
Chapter 4: Human Resource Policy
 Main Objective
 Recruitment
 GP Recruitment process
 Appraisal
 Promotion
 Job satisfactions
 Employee benefits
 Employee Motivation
 Employee Safety & Health
 Festival Bonus
Chapter 5: Financial Standing
 Balance sheet of GP (Last 5 years)
 5 years financial report
 Statement of Comprehensive Income
 Cash Flow Statement
 Financial assets
 Financial liabilities
 Revenue

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Acknowledgement
First of all we would like to thank our honorable faculty for giving us such an opportunity. We
are pleased to get this opportunity that we can demonstrate our idea or concept.
Summary
This term paper is on GRAMEENPHONE which is the leading telecommunication services
provider in the country with more than 46.04 million subscribers. Grameenphone has been
recognized for building a quality network with the widest coverage across the country while
offering innovative products and services and committed after sales service.Grameenphone was
the first company to introduce GSM technology in Bangladesh. It commercially launches 3G
service recently.
Chapter 1
Introduction:
GRAMEENPHONE is a dynamic and leading countrywide GSM communication solutions
provider. It is a joint venture company between Telenor(55.8%) and Grameen Telecom(34.2%).
Grameenphone Ltd., the largest telecommunications service provider in Bangladesh, received its
operating license in November 1996 and started its service from March 26, 1997. Now, after
15years of successful operations, Grameenphone is the largest mobile phone service provider in
Bangladesh, with more than 46.04 million subscribers as of September 2013.
In this research, we want to know the customer perception, satisfaction of the service quality of
GRAMEENPHONE.
History:
Grameen Phone (GP) started operations in 1997. In 2012, GP offered 69,439,400 ordinary shares
at BDT 10 (US$. 014) each, in addition to a BDT 60 (US$ 0.871 premium, totaling BDT 4.86 bn
(US$ 70.lSmn) & got Listed on OSE & CSE.
 Net profit after Taxes
Chapter 6: Conclusion
Reference

4. 4
Quickly after its inception in 1997, GP established itself as the leading mobile operator in the
country by providing superior coverage and better network quality perception than its
competitors.
In the last 4 years, market dominance of GP has slowly eroded through intense competition,
falling from 63% in 2005 to about 44% (September 2012).
GP's ARU has teen constantly declining, as mobile voice tariffs continue to fall and as greater
numbers of subscribers come from lower income groups. From USD 5.4 in Q1'07, the ARPU has
come down to USD 3.03 in 03'10 (02 2010 USD 3.47).
GP was the first mobile operator to introduce prepaid mobile connections in Bangladesh in 1999.
Apart from internet services through EDGE, Crameenphone is also the only medium through
which Cell Bazaar operates a service where people can buy and sell products through a mobile. It
also operates a telemedicine service called Health line, It provides a host of other VAS services
including ringtones, welcome tunes, SMS-MMS, instant messaging, sports-news updates, stock
market updates, electronic ticketing service etc. OP plans to introduce mobile banking services in
the country once the regulations are in place. If we want to make a chronology then it may look
like this:
November 28, 1996: Grameenphone Ltd. received cellular license by the Ministry of Posts and
Telecommunications of Bangladesh.
March 26, 1997: Grameenphone launched its service on the Independence Day of Bangladesh.
June 1998: Grameenphone started its services in Chittagong, the second largest city and the port
city of Bangladesh. Cell to cell coverage between Dhaka-Chittagong was established.
1999: Grameenphone started its service in Khulna, the industrial city of Bangladesh. Also cell to
cell coverage between Dhaka and Khulna brought a number of other districts under coverage.
2000: Grameenphone started its services in Rajshahi, the education city of Bangladesh. Service
also started in Sylhet and Barisal and thus all six divisional headquarters got the cellular network
coverage for the first time Bangladesh.
August 2003: Grameenphone's subscribes base has become more than one million.
Grameenphone became the first operator in the country to reach the million subscribers.
November 2005: Grameenphone registered more than 5 million subscribers.

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November 5, 2006: Grameenphone crosses the 10 million subscriber mark after almost ten years
of operation.
September 20, 2007: Grameenphone reaches 15 million subscribers mark.
June 2008: Grameenphone reaches 20 million subscribers landmark.
January 2013: Grameenphone Successfully Deploys Oracle Communications Network Resource
Management Solution to Transform Inventory Operations.
September 8, 2013: Grameenphone gets 10MHz spectrum for 3G service
October 8, 2013: Grameenphone commercially launches 3G service
GrameenPhone profile:
The company has so far invested more than BDT 15,260 crore to build the network infrastructure
since its inception in 1997. Grameenphone is also one the largest taxpayers in the country,
having contributed more than BDT 16,600 crore in direct and indirect taxes to the Government
Exchequer over the years. Since its inception in March 1997, Grameenphone has built the largest
cellular network in the country with over 12,000 base stations in more than 6000 locations.
Presently, nearly 98 percent of the country’s population is within the coverage area of the
Grameenphone network. Grameenphone was also the first operator to introduce the pre-paid
service in September 1999. Grameenphone commercially launches 3G service in 2013. It
established the first 24-hour CallCenter, introduced value-added services such as VMS, SMS,
fax and data transmission services, international roaming service, WAP, SMS-based push-pull
services, 3G, personal ring back tone and many other products and services. The entire
Grameenphone network is also EDGE/3G enabled, allowing access to high-speed Internet and
data services from anywhere within the coverage area. There are currently nearly 4 million
EDGE/3G users in the Grameenphone network. Grameenphone nearly doubled its subscriber
base during the initial years while the growth was much faster during the later years. It ended the
inaugural year with 18,000 customers, 30,000 by the end of 1998, 60, 000 in 1999, 193,000
in 2000, 471,000 in 2001, 775,000 in 2002, 1.16 million in 2003, 2.4 million in 2004, 5.5 million
in 2005, 11.3 million in 2006, 16.5 million in 2007, 20 million in 2008,IN 2009 with 23.26
million customers, 29.97 million in 2010, that increased to 36.5 million in 2011, 40.20 million in
2012 and in the current year it is 44 million.From the very beginning, Grameenphone placed

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emphasis on providing good after-sales services. In recent years, the focus has been to provide
after-sales within a short distance from where the customers live. There are now more than 700
GP Service Desks across the country covering nearly all upazilas of 64 districts. In addition,
there are 81Grameenphone Centers in all the divisional cities and they remain open from 8am-
7pm every day including all holidays. GP has generated direct and indirect employment for a
large number of people over the years. The company presently has more than 5000 full and
temporary employees. Another 150,000 people are directly dependent on Grameenphone for
their livelihood, working for the Grameenphone dealers, retailers, scratch card outlets, suppliers,
vendors, contractors and others. In addition, the Village Phone Program, also started in 1997,
provides a good income-earning opportunity to more than 210,000 mostly women Village Phone
operators living in rural areas. The Village Phone Program is a unique initiative to provide
universal access to telecommunications service in remote, rural areas. Administered by Grameen
Telecom Corporation, it enables rural people who normally cannot afford to own a telephone to
avail the service while providing the VP operators an opportunity to earn a living. The Village
Phone initiative was given the “GSM in the Community” award at the global GSM Congress
held in Cannes, France in February 2000. Grameenphone was also adjudged the Best Joint
Venture Enterprise of the Year at the Bangladesh Business Awards in 2002. Grameenphone was
presented with the GSM Association’s Global Mobile Award for ‘Best use of Mobile for Social
and Economic Development’ at the 3GSM World Congress held in Singapore, in October 2006,
for its Community Information Center (CIC) project, and for its HealthLine Service project at the
3GSM World Congress held in Barcelona, Spain, in February 2007. Grameenphone considers its
employees to be one of its most important assets. GP has an extensive employee benefit scheme
in place including Gratuity, Provident Fund, Group Insurance, Family Health Insurance,
Transportation Facility, Day Care Centre, Children’s Education Support, Higher Education
Support for employees, in-house medical support and other initiatives. Name, Location and
Organizational History: The full name of the company is GrameenPhone Limited. It is a private
limited company. The Head office situated at Bashundhara R/A in Dhaka. The Ministry of post
and Telecommunication of the Government of Bangladesh offered GrameenPhone a nationwide
digital cellular license on November 28, 1996. GrameenPhone launched its services in
Bangladesh on 26 March 1997, the Independence Day of Bangladesh. The service of the

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company has spread in all over Bangladesh and in foreign countries through 300 international
roaming partner operators.
Shareholder Profiles:
Telenor-Ownership: 55.80%million mobile subscribers worldwide World's seventh largest
mobile service provider in terms of subscribers Have operations in 13 countries Strong
subscription growth, particularly in Asian operations Named the sector leader in mobile
telecommunications by the Dow Jones Sustainability Indexes (in which year).Revenues 2009:
USD 17.15 bn Workforce 2009: 40000Listed on the Oslo Stock Exchange and headquartered in
Norway Telenor AS is the leading telecommunications company of Norway listed on the Oslo
Stock Exchange with a market capitalization of USD 9.0 bn as of November 12, 2008.In addition
to Norway and Bangladesh, Telenor has interests in mobile telephony companies in Sweden,
Denmark, Hungary Russia, Ukraine,Montenegro, Thailand, Malaysia. Pakistan and Serbia with
more than 150 million mobile subscribers worldwide as of September 30, 2008
Grameen Telecom-Ownership: 34.2%
Grameen Telecom is a nonprofit company affiliated with Noble award winning Grameen
BankOperates "Village Phone" program to over 297,079 (Q2. 2010) rural.
Head quartered in Dhaka, Bangladesh. Grameen Telecom ("GTC') is a not-for-profit company in
Bangladesh, working in collaboration with Grameen Bank, winner of the Noble Peace Prize in
2006, along with Professor Muhammad Yunus.
GE's mandate is to provide, easy access to GSM cellular services in rural Bangladesh and create
new opportunities for income generation through self-employment by providing villagers, mostly
poor, rural women, with access to modern information and communication-based technologies.

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Chapter 2
Management Structure:
Ownership Structure:
The shareholders of Grameenphone contribute their unique, in-depth experience in both
telecommunications and development.
It is a joint venture enterprise between Telenor (55.8%), the largest telecommunications service
provider in Norway with mobile phone operations in 12 other countries, and Grameen Telecom
Corporation (34.2% ), a non-profit sister concern of the internationally acclaimed micro-credit
pioneer Grameen Bank. The other 10% shares belong to general retail and institutional
investors.
The technological know-how and managerial expertise of Telenor has been instrumental in
setting up such aninternational standard mobile phone operation in Bangladesh. Being one of the
pioneers in developing the GSM service in Europe, Telenor has also helped to transfer this
knowledge to the local employees over the year.

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Management Organogram:

10. 10
Management Profile:
Quazi Mohammad Shahed
CHRO
Joing Date:
November1, 2011
Allan Bonke
CMO
Joining Date:
August 5, 2012
ArnfinnGroven
CPO
Joining Date:
January 19, 2009
KaziMonirulKabir
CCO
Joining Date:
September 1, 2009
Mahmud Hossain
CCAO
Joining Date:
March 8, 2010
Mr. FridtjofRusten
CFO
Joining Date:
May 1, 2012
Tanveer Mohammad
CTO
Joining Date:
July 1, 2010
VivekSood
CEO
Joining Date:
7 January, 2012

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GrameenPhone Ltd. has approximately 6000 employees working at different levels of
organizational hierarchy. There are 9 functional departments engaged in managing these
employees‐ with the aim to meet organizational objectives. GrameenPhone follows a mix of
centralized and decentralized decision making process‐where the top management mainly takes
all the strategic decisions while the functional managers have flexibility to take decisions by
themselves on a day to day basis. At GrameenPhone the Managing Director is assisted by 9
Senior Executives who are heading different departments in the strategic decision making
process. The departmental names of GrameenPhone are given below:
Corporate Affairs Division
Customer Service Division
Finance Division
Human Resource Division
Information Technology Division
Internal Audit Division
Internal Control Office Division
Marketing Division
Public Relation Division
Sales Division
Network Division
GrameenPhone follows a 3‐layer management philosophy in Bangladesh. These are Directors,
Managers and Officers. The CEO is the top most authority of all the levels. Directors are the
departmental heads that are responsible for the activities of their departments. Managers have the
authority next to directors. These two layers represent the management level of GrameenPhone.
Officers are the next persons to stand in the hierarchy list. They are the typical mid‐level
employees of GrameenPhone’s organizational hierarchy. These officers are responsible for
managing the operational activities and operating level employees.

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Vision:
We’re here to help (This vision crystallizes customer focus as the cornerstone of everything
they do: helping customers get the full benefit of communications in their daily life.
Its official slogan
“Go Beyond…”
Mission:
The vision will be achieved by
Connecting Bangladesh with ease and care
Being user-friendly
Providing value for money
Providing simple and timely connections
Having a right and understandable process.
Values:
Make it Easy; Keep Promises, Be Inspiring, and Be Respectful
We're practical. We don't over complicate things. Everything we produce should be easy to
understand and use. No waste. No jargon. Because we never forget we're trying to make
customers' lives easier.

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For our customers, making it easy will be addressing some very fundamental customer needs.
They need simplicity. Solutions and services that are easy to buy, easy to use and are built to
meet their needs.Solutions and services that work well.Everything we set out to do should work,
or if you don't get it, we're here to help. We're about delivery, not over promising - actions not
words. For our customers, this will mean they can build trust in us. The solution or service
works - if not, we are there to make it work. They need us to deliver on time, to expected levels
of quality, and at a fair price. They need us to be strong on action, not on fine words! For
employees everywhere, this means... We follow through. We never launch something new before
it works as it should work. We arrive on time and we deliver on time. We commit to concrete,
realistic promises to our customers - and deliver on our promises
We are creative. We strive to bring energy into the things we do. Everything we produce should
look good, modern and fresh. We are passionate about our business and customers. For our
customers, this will mean they will want to engage with us, will appreciate our innovative and
modern approach, will appreciate our future proofed solutions and services, and will
acknowledge our category leadership. For Telenor employees everywhere, this means... that we
live up to the challenge and inspire our colleagues and customers ' walk the talk! We must call
for creativity at every level, show care, energy and passion. Be fresh and direct, and demonstrate
a can-do attitude.
We acknowledge and respect local cultures. We do not impose one formula worldwide. We want
to be a part of local communities wherever we operate. Webelieve loyalty has to be earned. For
our customers, this will mean each of them can expect to be treated like an individual. Each of
them will feel valued, understood and listened to, and their needs acted upon.

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Numbers of employees:
GrameenPhone has a total of 5000 employees along with many students and other interns who
work at GP’s call centers.
Geographic locations:
The Head office situated at Basundhara R/A in Dhaka. A Grameen phone center (GPC) provides
as a “one stop solution” for customers, with all telecommunication products and services under a
single roof. A GrameenPhone center also sells phone from dealers like Nokia, Samsung,
Motorola, Sagem. 3G modem and accessories such chargers and headphones are also sold at
GPCs.There are 76 GPCs and they are strategically located at all major locations of the country
is operated by GP. Most of the newly opened GPCs are franchised outlets are in non-
metropolitan areas.
The GPCs also provide the flexi-load service without charging extra for small denominations
unlike many retailers in the country.Thus making the GPCs and ideal place for many service.
Every once a while, the GPCs tie up with handset manufactures and start a nationwide marketing
scheme by selling the specific vendors products at a price lower than the markets or in bundle
with a GP connection loaded with free minutes.
Chapter 3
Ethical policies:
 Codes of Conduct
GP has adopted Code of Conduct (“Code”) approved by the Board of Directors, which reflects
GP’s core values, integrity, respect, trust and openness. It provides clear direction on conducting
business, interacting with the community, government, business partners and general workplace
behavior. It also includes guidance on disclosure of conflict of interest situations, maintaining

15. 15
confidentiality and disclosure of information, good international practices and internal control
and the duty to report where there is a breach against the Code. The Codes are properly
communicated to all the employees including its Board members and others acting on behalf,
who are strictly required to abide by it. All of them have certified in writing that they have read
and understood the Codes.
 Restrictions on dealings in GP Shares by Insiders
The Company has established a detailed policy relating to trading of GP shares by Directors,
Employees and other Insiders. The securities laws also impose restrictions on similar
transactions. All the Insiders are prohibited from trading in the GP shares, while in possession of
unpublished price sensitive information in relation to the Company during prescribed restricted
trading period. Directors and Employees are also required to notify their intention to trade in the
GP shares prior to initiating the same.
 Supplier Conduct Principles
The Supplier Conduct Principles (“SCP”) outline the standards for ethical and business conduct
expected for suppliers and contractors in their relationship with the Company. The SCP are
binding on the Company’s suppliers through the confirmation and signing of the Agreement on
Responsible Business Conduct to ensure high standards of business ethics amongst all suppliers
of the Company.

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Chapter 4
Human Resource policy:
Main Objective:
Within the direction from the CEO of GrameenPhone, the Head of HR shall ensure that the HR
function within GrameenPhone at all times is aligned with and supports the realization of
GrameenPhone’s business objectives. The Head of HR shall optimize the human resources in
GrameenPhone through individual performance management and organizational development, as
well as nurturing a culture supporting the realization of the vision and values. In order to achieve
this, leadership excellence is a key focus area for HR.
The units in HR Division include:
HR Operations
Recruitment & Selection
HR Development;
Health safety & environment
Expatriate and travel support
Recruitment:
Recruitment and selection refers to the chain and sequence of activities pertaining to recruitment
and selection of employable candidates and job seekers for an organization. Every enterprise,
business, start-up and entrepreneurial firm has some well-defined employment and recruitment
policies and hiring procedures. The human resources department of large organizations,
businesses, government offices and multilateral organizations are generally vested with the
responsibilities of employee recruitment and selection
Recruitment involves the utilization of organizational practices to influence the number and
types of individuals who are willing to apply for job vacancies (Rynes, 1991; Rynes& Cable,
2003). Recruitment can focus on the internal labor market (i.e., pursuing staff already employed
by the organization) or the external labor market (i.e., pursuing applicants from outside the

17. 17
organization). Internal candidates can be recruited through internal job postings, word-of-mouth,
or internship programs."
GP Recruitment process:
•
Promotions:
Grameenphone Ltd provides ample opportunities growth. Promotion is based both on seniority
and performance. The performance of each employee is reviewed every 6 months and the
employee’s worth in the company depends on that. The employee’s designation in the first two
years is completely time dependent. However, the employees at the same level can be paid more
or less depending on his performance. After the initial two years, the growth of the employee in

18. 18
the company is mostly dependent on his performance. Grameenphone Ltd believes
in performance rather than age. People with potential should be at the top rather than being stuck
at the bottom because of the lack of seniority. Grameenphone Ltd thinks it is both fair and good
for the company as a whole Grameenphone Ltd arranges various training programs in job related
subjects for the development of its employees. This is usually arranged when the employee is not
involved in any active project. This helps to utilize the free time and also comes in the best
interest of the company and the employee. Grameenphone Ltd also encourages its employees to
appear invidious professional certification exams, which the company also pays for. The talent
sourcing activities begin with effective human resource planning. This planning is aligned with
the business need forecast, overall organizational growth matrix, structure and direction and is
done in yearly basis R& EB (The Resourcing & employee branding) department coordinates and
evaluates people planning process that eventually approved by board considering the factors:-
 Potential/ expected workload and expertise requirements.
 Optimum and effective utilization of the HRM for the entire company, both current and
future requirements.
 Possibilities for greater efficiency through reorganization and automation (use of tools
&facilities) and making necessary adjustment.
 Employee turnover/employee mobility.
 New business initiatives and project s that require new competence and
additionalresources.
 Government legislationHuman resources planning, budgeting and necessary approvals
should be taken in the beginningof the year to ensure timely co-ordination and
implementation.
Job satisfactions:
Employee benefits
The company maintains both defined contribution plan and defined benefit plan for its eligible
permanent employees.

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1. Defined contribution plan (provident fund)
The company contributes 10% of basic salary of all eligible permanent employees to a provident
fund (defined contribution plan) constituted under an irrevocable trust, while the employees also
contribute an equal amount to the fund as per the rules of the trust deed. The company recognizes
contribution to defined contribution plan as an expense when an employee has rendered services
in exchange for such contribution. The legal and constructive obligation is limited to the amount
it agrees to contribute to the fund.
2. Defined benefit plan (gratuity)
The company provides retirement benefit in the form of gratuity payments determined by
reference to employees' earnings and years of service to each eligible employees at the time of
retirement/separation. Gratuity obligation at the reporting date is measured on the basis of
actuary valuation.
3. Short term employee benefits
Short term employee benefits include salary, bonuses, leave encashment. Obligations for such
benefits are measured on an undiscounted basis and are expensed as the related service is
provided.
EmployeeMotivation:
Performance Bonuses: Performance bonuses are given on the basis of performance in a given
year. This happens after the yearly appraisal. The reviewer (usually the immediate boss) notes
down the performance of the employee on a given set of characteristics and sends it to the MD.
The MD then takes the decision on the performance bonus. However, all decisions regarding
performance bonuses by the MD needs to be approved by the board of governors.
Profit Sharing: The most significant employee benefit offered by Grameenphone Ltd is profit
sharing. The profit sharing takes place once a year, July. Only the senior employees who are
around two or more years get 20% share of the profit earned. Out of this 20% profit, 75% is
distributed in terms of seniority and designation and the rest 25% is distributed on performance
in that period.
Yearly Picnic/Tours: Grameenphone Ltd bears the expense of one tour/picnic per year for each
employee. The company covers all transport, hotel and food expenses. This usually refreshes the
employees a lot and makes room for them to interact and know each other better.

20. 20
Reward: This reward system does not have any fixed criteria. This is basically an additional
reward system, which provides financial incentives to employees for extraordinary performance
in any area of their job.
Services Benefit: Grameenphone Ltd. has a number of service benefits which is typically not
found in other companies. Among the benefits, there are flexible working hour; one can start
their office on 8am in the morning and leave by 4pm. Another one is providing transport or
transport bills while attending a client meeting.
Festival Bonus:
The company started payment of festival bonus to the management staff from the year 2000.
There will be disbursement of an amount equal to one month’s basic salary of the employee on
two designated festivals. Management staffs those are in the employment of the company for at
least three months after their confirmation on the date of the festival will be eligible for the
festival bonus like Eid-ul-Fitr, Eid-ul-Azha, Durga Puja, Christmas, BuddhaPurnima. All
employees of the company, irrespective of their religion, will draw one festival bonus during the
time of Eid-ul-Fitr. The other Festival Bonus will be given to the Muslim employees during the
time of Eid-ul-Azha. Employees other than Muslim will receive the other bonus according to
their festival mentioned above.
Festival Bonus is disbursed in cash and is paid two weeks prior to the festival date.
EmployeeSafety&Health:
For employee safety and health the company gives medical benefit for all permanent staff.In case
of hospitalization of the staff, spouse or any dependent child, in any recognized hospital or clinic,
the company will reimburse 50% of the hospitalization charges, which will include bed/cabin
rent, doctor’s fees and laboratory tests & medicine required during the period of hospitalization.
All other charges will be borne by the staff.In case of surgery, the company will reimburse 75%
of the total operation charges comprising of surgeons fee, anesthetist’s fee &O.T. charges and

21. 21
cost of medicine related to the surgery.Prior approval from the head of the business is necessary
before hospitalization or surgery. The name of the patient and the name of the hospital/clinic
need to be stated while taking the approval.Department heads will approve advance against
surgery for staff on a case-to-case basis.Expenses for delivery under caesarean section will be
reimbursed as per clause.
Chapter 5
Financial Standing
Grameenphone has strong financial reporting procedures in line with the requirements of
International Financial Reporting Standard (IFRS), Bangladesh Accounting Standard (BAS)
and other related local legislations
Balance sheet of GP (Last 5 years)
Currency in millions of
BD tk as of :
Dec 31
2009
Restated
BDT
Dec 31
2010
Restated
BDT
Dec 31
2011
Restated
BDT
Dec 31
2012
Restated
BDT
Total cash and short
term investment
7O20.7 14601.3 21625.2 30458.6
Total receivables 4892.6 5459.4 6176.0 8541.6
Total current assets 14429.8 21518.7 31830.0 41254.0
Net property plant and
equipment
85553.9 89288.0 71896.1 64515.0
Long term investments 4.5 -- -- --

22. 22
Other intangibles 8193.6 7681.1 6496.5 5428.3
Other long term assets 12.7 11.6 12.5 12.3
Total assets 108194.5 139154.5 109512.1 145864.0
Liabilities and equities
Total current liabilities 50231.0 31285.1 44661.9 36542.1
Total liabilities 80666.3 53008.2 61470.3 75846.3
Total common equity 27588.2 50158.3 48031.8 55862.6
Total equity 27588.2 50158.3 48031.8 55862.6
Total liabilities and
equity
108194.5 109162.5 109502.1 109858.1

23. 23
5 years financial report

24. 24
Statement of Comprehensive Income

25. 25
Cash Flow Statement

26. 26
Financial assets
Financial assets of the company include cash and cash equivalents, accounts receivable and other
receivables and deposits. The company initially recognizes receivables on the date they are
originated. All other financial assets are recognized initially on the date at which the company
becomes a party to the contractual provisions of the transaction. The company derecognizes a
financial asset when the contractual rights or probabilities of receiving the cash flows from the
asset expire or it transfers the rights to receive the contractual cash flows on the financial asset in
a transaction in which substantially all the risks and rewards of ownership of the financial asset
are transferred.
Total Assets
 Total asset base decreased marginally by BDT 60 crore between 2010 and 2011 mainly due
to higher depreciation of fixed assets compared to yearly addition and swapping of network
equipments with lower book value.
 Cash balance decreased due to payment of final dividend for the year 2010, interim dividend
for the year 2011 and the first installment of renewal fees for 2G License and spectrum.
 Capital expenditure during 2011 was BDT 1,296 crore compared to BDT 846 crore of 2010,
which was mainly spent for network modernization.
Financial liabilities
The group initially recognizes financial liabilities on the transaction date at which the group
becomes a party to the contractual provisions of the liability. The group derecognizes a financial
liability when its contractual obligations are discharged or cancelled or expired. Financial
liabilities are recognized initially at fair value less any directly attributable transaction costs.
Subsequent to initial recognition, these financial liabilities are measured at amortized cost using
the effective interest method. Financial liabilities include finance lease obligation, trade and
other payables, short-term bank loan, payable to government and autonomous bodies, deposits
from agents and subscribers, VAT payables, accrued interests and other payables.

27. 27
Total Liabilities
 Total liabilities increased by BDT 1,089 crore during the year mainly on account of payables
against income tax and capital expenditures.
 The increase was partly offset by settlement of long term borrowings obligation and reduced
deferred tax liabilities.
Revenue
 Increment of 19% (BDT 1,433 crore) in total revenue was driven by traffic revenue from
subscription growth and revenue from wholesale business.
 Impressive 24% growth in data revenues against 100% increase in active users was
mainly driven by low-cost mini-pack internet packages.
 New price plan ‘Spondon’ for time-conscious users and segmented micro campaigns
designed as per users’ need has given a good uplift in revenue.
 Stronger distribution network in the deep rural areas has given easy access to affordable
telecommunication services to rural subscribers
Net profit after Taxes
 Net profit margin increased to 21% from 14% of 2010, which was driven by BDT 819 corer
increment in profit in 2011 compared to last year.
 Increase in profit after tax for the year 2011 compared to 2010 was mainly driven by revenue
growth and lower depreciation expenses, which was partly offset by higher income taxes and
losses on foreign exchange during the year.
As a result, EPS for 2011 increased to BDT 13.99 from BDT 7.93 of 2010

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