DESCO STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2007 Amonunt (Taka) OPERATING REVENUE Energy

Sales (Net of Vat) Other Operating Revenue Total Revenue from Operation COST OF ENERGY SALES Energy Purchase (including wheeling charge) Operating Expenses Depreciation (Operating) Gross Margin COST & EXPENDITURE Administrative Expenses Employee Expenses Bad Debts Provision Depreciation (Non Operating) Operating Profit NON OPERATING INCOME/(EXPENSE) Interest Income Interest Expenses Exchange Fluctuation (Loss) Appreciation / (diminution) in value of Investment Gain on sale of Investment Miscellaneous Income Non Operating Income (Net) Net Profit before Tax INCOME TAX Current Tax Provision Deferred Tax Provision Net Profit after Tax Retained Earnings at 01 July 2006 GOB Equity Priors year's adjustment Cash Dividend paid Retained Earnings at 30 June 2007 Vertical Horizontal Analysis Analysis 14.96% 260.03% 16.70% 12.66% 395.94% 20.50% 19.55% 7.44% 26.22% 35.27% -14.57% 44.28% 31.47% 2.80% #DIV/0! 68.04% -102.72% #DIV/0! #DIV/0! 139.72% -94.34% 44.25% 50.00% 104.57% 86.10% 22.87% 16.10% -98.21% -116.44% #DIV/0! 16.58%

7,219,587,714 97.81% 161,691,524 2.19% 7,381,279,238 100.00% 4,946,360,677 393,778,258 442,201,454 5,782,340,389 1,598,938,849 73,721,100 206,076,932 9,573,967 27,364,536 316,736,535 1,282,202,314 247,105,883 -283,783,491 5,657,843 0 0 9,895,780 -21,123,985 1,261,078,329 -150,000,000 -400,000,000 -550,000,000 711,078,329 3,249,973,094 6,000,000 76,116,003 -254,238,800 3,788,928,626 67.01% 5.33% 5.99% 78.34% 21.66% 1.00% 2.79% 0.13% 0.37% 4.29% 17.37% 3.35% 3.84% 0.08% 0.00% 0.00% 0.13% 0.29% 17.08% 2.03% 5.42% 7.45% 9.63% 44.03% 0.08% 1.03% 3.44% 51.33%

Worksheet-01: Horizontal and Vertical Analysis of Statement of Income and Retained Earnings (2006-2007)

Examination of the Statement of Income and Retained Earnings (2006-2007) shows the following1. Net Energy Sales increased 14.96% in 2007. We can attribute this to the increasing demand for Electricity in both local and global market. 2. Other Operating Revenue increased 260.03% in 2007. However, Other Operating Revenue provides only 2.19% of total operating revenue. So, its effect is largely ignorable. 3. Total Operating Revenue increased 16.07% in 2007. The increase in revenue means that DESCO had a positive growth in 2007. 4. Cost of energy sales increased 19.55% in 2007. This increase is larger than the increase in Total Operating Revenue. So, we can interpret that the percentage increase in production cost was larger than the percentage increase in sales price. 5. Gross Margin increased 7.44% in 2007. This can be attributed to the fact Cost of Energy Sales is only 78.34% of Total Revenue from operations. So, even though that the percentage increase in production cost was higher than the percentage increase in sales, DESCO nonetheless had a positive growth in Gross Margin. 6. Operating Cost and Expenditure increased 31.47% in 2007. This means that the costs that are not directly related to production increased substantially. 7. Interest Income was 247,105,883 tk. But, as there was no Interest Income in 2006, Horizontal Analysis failed to provide a reasonable result. 8. Non Operating Profit (Net) shows the difference between Total Non Operating Income and Total Non Operating Expense. As it decreased by 94.34% in 2007, we can interpret that the increase in Total Non Operating Income was substantially larger than the increase in Total Operating Expense. 9. Net Profit before Tax increased 44.25% in 2007. This is largely due to the fact that Interest Income was 247,105,883 tk in 2007, compared to no interest in 2006. 10. Income Tax rose by 86.10% in 2007. This had a negative effect on the percentage increase in Net Profit after Tax. 11. Net Profit after Tax increased 22.87% in 2007. However, it was only 9.63% of the Total Operating Revenue. 12. Cash Dividend Paid was 254,238,800 tk. But as no dividend was paid in 2006, Horizontal Analysis failed to provide a reasonable result.

DESCO STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2008 Vertical Analysis 98.08% 1.92% 100.00% 66.94% 3.22% 5.44% 75.60% 24.40% 0.91% 2.97% 1.08% 0.37% 5.34% 19.07% 5.76% 2.78% 0.49% 0.00% 0.00% 0.01% 3.48% 22.55% 5.68% 5.99% 11.66% 10.89% 41.23% 0.24% 0.26% 3.46% 48.65% Horizontal Analysis 24.84% 9.29% 24.50% 24.36% -24.86% 12.96% 20.14% 40.26% 13.70% 32.62% 934.98% 25.26% 54.85% 36.65% 114.15% -9.94% 701.93% #DIV/0! #DIV/0! -88.25% -1615.56% 64.33% 247.67% 37.50% 94.82% 40.75% 16.58% 275.00% -131.12% 25.00% 18.00%

Amonunt (Taka) OPERATING REVENUE Energy Sales (Net of Vat) Other Operating Revenue Total Revenue from Operation COST OF ENERGY SALES Energy Purchase (including wheeling charge) Operating Expenses Depreciation (Operating) Gross Margin COST & EXPENDITURE Administrative Expenses Employee Expenses Bad Debts Provision Depreciation (Non Operating) Operating Profit NON OPERATING INCOME/(EXPENSE) Interest Income Interest Expenses Exchange Fluctuation (Loss) Appreciation / (diminution) in value of Investment Gain on sale of Investment Miscellaneous Income Non Operating Income (Net) Net Profit before Tax INCOME TAX Current Tax Provision Deferred Tax Provision Net Profit after Tax Retained Earnings at 01 July 2007 GOB Equity Priors year's adjustment Cash Dividend paid Retained Earnings at 30 June 2008 9,012,673,170 176,713,518 9,189,386,688 6,151,294,250 295,901,248 499,524,522 6,946,720,020 2,242,666,668 83,821,167 273,295,215 99,088,395 34,277,342 490,482,119 1,752,184,549 529,177,699 -255,564,990 45,371,936 0 0 1,162,371 320,147,016 2,072,331,565 -521,500,000 -550,000,000 -1,071,500,000 1,000,831,565 3,788,928,627 22,500,000 -23,686,532 -317,798,500 4,470,775,160

Worksheet-02: Horizontal and Vertical Analysis of Statement of Income and Retained Earnings (2007-2008)

Examination of the Statement of Income and Retained Earnings (2007-2008) shows the following1. Net Energy Sales increased 24.84% in 2008. We can attribute this to the increasing demand for Electricity in both local and global market. 2. Other Operating Revenue increased 9.29% in 2008. However, Other Operating Revenue provides only 1.92% of total operating revenue. So, its effect is largely ignorable. 3. Total Operating Revenue increased 24.50% in 2008. The increase in revenue means that DESCO had a positive growth in 2008. 4. Cost of energy sales increased 20.14% in 2008. This increase is smaller than the increase in Total Operating Revenue. So, we can interpret that the percentage increase in production cost was smaller than the percentage increase in sales price. 5. Gross Margin increased 40.26% in 2008. This percentage increase in gross margin is substantially larger than 2007s percentage increase of 7.44%. So, we can interpret that DESCO managed to sale at a larger profit in 2008. 6. Operating Cost and Expenditure increased 54.85% in 2008. This means that the costs that are not directly related to production increased substantially. 7. Interest Income Increased 114.15% in 2008 but Interest Expense decreased by 9.94%. As a
result, Non Operating Income was substantially larger than Non Operating Expense.

8. Non Operating Income (Net) was 320,147,016 tk in 2008. As, this result was negative in 2007,
horizontal analysis has failed to provide a reasonable result.

9. Net Profit before Tax increased 64.33% in 2008. This can be attributed to the increase in Non Operating Income (Net). 10. Income Tax rose by 94.82% in 2008. This had a negative effect on the percentage increase in Net Profit after Tax. 11. Net Profit after Tax increased 40.75% in 2008. This means that DESCO did better financially in 2008 than it did in 2007. Net Profit after tax was 10.89% of the Total Operating Revenue, a better percentage than 2007s ratio of 9.63%. 12. Cash Dividend Paid increased 25.00% in 2008. This is a positive indication of DESCOs
profitability in 2008.

DESCO STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2009 Vertical Analysis 97.95% 2.05% 100.00% 71.14% 2.24% 5.18% 78.56% 21.44% 1.05% 3.34% 0.11% 0.37% 4.87% 16.57% 6.66% 1.70% 0.11% 0.06% 0.00% 0.03% 4.82% 21.40% 5.33% 0.00% 5.33% 16.07% 44.69% 2.88% 12.72% 3.18% 73.17% Horizontal Analysis 8.73% 16.13% 8.87% 15.71% -24.37% 3.79% 13.14% -4.35% 25.08% 22.36% -88.88% 6.97% -0.73% -5.37% 25.90% -33.56% -123.32% #DIV/0! #DIV/0! 121.75% 50.77% 3.30% 2.30% -100.00% -50.21% 60.60% 18.00% 1178.67% -5471.80% 0.00% 63.74%

Amonunt (Taka) OPERATING REVENUE Energy Sales (Net of Vat) Other Operating Revenue Total Revenue from Operation COST OF ENERGY SALES Energy Purchase (including wheeling charge) Operating Expenses Depreciation (Operating) Gross Margin COST & EXPENDITURE Administrative Expenses Employee Expenses Bad Debts Provision Depreciation (Non Operating) Operating Profit NON OPERATING INCOME/(EXPENSE) Interest Income Interest Expenses Exchange Fluctuation (Loss) Appreciation / (diminution) in value of Investment Gain on sale of Investment Miscellaneous Income Non Operating Income (Net) Net Profit before Tax INCOME TAX Current Tax Provision Deferred Tax Provision Net Profit after Tax Retained Earnings at 01 July 2008 GOB Equity Priors year's adjustment Cash Dividend paid Retained Earnings at 30 June 2009 9,799,615,712 205,225,995 10,004,841,707 7,117,531,238 223,793,553 518,475,544 7,859,800,335 2,145,041,372 104,840,703 334,395,921 11,015,698 36,666,370 486,918,692 1,658,122,680 666,222,788 -169,794,396 -10,580,118 -5,738,807 0 2,577,507 482,686,974 2,140,809,654 -533,472,132 0 -533,472,132 1,607,337,522 4,470,775,160 287,700,000 1,272,392,915 -317,798,500 7,320,407,097

Worksheet-03: Horizontal and Vertical Analysis of Statement of Income and Retained Earnings (2008-2009)

Examination of the Statement of Income and Retained Earnings (2008-2009) shows the following1. Net Energy Sales increased 8.73% in 2009. While this increase in itself is positive, but it is smaller compared to 2008s percentage increase of 24.84%. So, we can interpret that while
DESCO had a positive growth in 2009, its growth was slower compared to the growth in 2008.

2. Other Operating Revenue increased 16.13% in 2009. However, Other Operating Revenue provides only 2.05% of total operating revenue. So, its effect is largely ignorable. 3. Total Operating Revenue increased 8.87% in 2009. The increase in revenue means that DESCO had a positive growth in 2009, but it was considerably smaller than 2008s growth of
24.50%.

4. Cost of energy sales increased 13.14% in 2009. This increase is larger than the increase in Total Operating Revenue. So, we can interpret that the percentage increase in production cost was larger than the percentage increase in sales price. 5. Gross Margin decreased 4.35% in 2009. This decrease resulted in DESCO having less operating profit in 2009 compared to the operating profit in 2008. 6. Operating Cost and Expenditure decreased 0.73% in 2009. This means that the costs that are not directly related to production decreased slightly. 7. Interest Income Increased 25.90% in 2009 but Interest Expense decreased 33.56%. As a result,
Non Operating Income was substantially larger than Non Operating Expense.

8. Non Operating Income (Net) increased 50.77% in 2009. This had a positive effect on Net Profit
before Tax.

9. Net Profit before Tax increased 3.30% in 2009. While this is only a slight increase, it still managed to provide a positive result after the percentage decrease in gross margin. 10. Income Tax fell by 50.21% in 2009. We can attribute this to the smaller profit percentage of DESCO in 2009. This had a positive effect on the percentage increase in Net Profit after Tax. 11. Net Profit after Tax increased 60.60% in 2009. This means that DESCO did better financially in 2009 than it did in 2008. Net Profit after tax was 16.07% of the Total Operating Revenue, a better percentage than 2008s ratio of 10.89%.
12. Cash Dividend Paid in 2009 was exactly the same of that paid in 2008. As Net Income after Tax was larger than 2008, we can interpret that DESCO wanted to increase its Retained Earnings by a larger amount.

DESCO STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2010 Amonunt (Taka) OPERATING REVENUE Energy Sales (Net of Vat) Other Operating Revenue Total Revenue from Operation COST OF ENERGY SALES Energy Purchase (including wheeling charge) Operating Expenses Depreciation (Operating) Gross Margin COST & EXPENDITURE Administrative Expenses Employee Expenses Bad Debts Provision Depreciation (Non Operating) Operating Profit NON OPERATING INCOME/(EXPENSE) Interest Income Interest Expenses Exchange Fluctuation (Loss) Appreciation / (diminution) in value of Investment Gain on sale of Investment Miscellaneous Income Non Operating Income (Net) Net Profit before Tax INCOME TAX Current Tax Provision Deferred Tax Provision Net Profit after Tax Retained Earnings at 01 July 2009 GOB Equity Priors year's adjustment Cash Dividend paid Retained Earnings at 30 June 2010 Vertical Horizontal Analysis Analysis 10.32% -13.16% 9.84% 10.23% 9.02% 9.31% 10.13% 8.75% 20.33% 85.12% 9.00% 12.77% 64.00% -7.47% 30.90% 30.28% 204.28% -200.00% #DIV/0! 1.00% 29.90% 0.96% -72.06% #DIV/0! -30.16% 11.29% 63.74% -100.00% -101.23% 5.00% 19.66%

10,810,974,226 98.38% 178,217,188 1.62% 10,989,191,414 100.00% 7,845,646,912 243,981,218 566,749,957 8,656,378,087 2,332,813,327 126,159,977 619,018,529 12,007,263 41,347,127 798,532,896 1,534,280,431 872,083,490 -221,200,045 -32,193,487 5,738,807 0 2,603,285 627,032,050 2,161,312,481 -149,037,371 -223,544,475 -372,581,846 1,788,730,635 7,320,407,097 0 -15,593,672 -333,688,425 8,759,855,635 71.39% 2.22% 5.16% 78.77% 21.23% 1.15% 5.63% 0.11% 0.38% 7.27% 13.96% 7.94% 2.01% 0.29% 0.05% 0.00% 0.02% 5.71% 19.67% 1.36% 2.03% 3.39% 16.28% 66.61% 0.00% 0.14% 3.04% 79.71%

Worksheet-04: Horizontal and Vertical Analysis of Statement of Income and Retained Earnings (2009-2010)

Examination of the Statement of Income and Retained Earnings (2009-2010) shows the following1. Net Energy Sales increased 10.32% in 2010. This increase is slightly larger than 2009s increase
of 8.73%. So, we can interpret that DESCO had a more success in 2010 compared to 2009 in terms of revenue.

2. Other Operating Revenue decreased 13.16% in 2010. However, Other Operating Revenue provides only 1.62% of total operating revenue. So, its effect is largely ignorable. 3. Total Operating Revenue increased 9.84% in 2010. The increase in revenue means that DESCO had a positive growth in 2010. This growth is also slightly larger than 2009s growth of 8.87%. 4. Cost of energy sales increased 8.75% in 2010. This increase is smaller than the increase in Total Operating Revenue. So, we can interpret that the percentage increase in production cost was smaller than the percentage increase in sales price. 5. Gross Margin increased 8.75% in 2010. This increase means that DESCO had more operating profit in 2010 compared to its operating profit in 2009. 6. Operating Cost and Expenditure increased 64.00% in 2010. This means that the costs that are not directly related to production increased significantly. 7. Operating profit decreased 7.47% in 2010. This means DESCO had less efficiency in running its operation in 2010 compared to that of 2009. 8. Non Operating Income (Net) increased 29.90% in 2010. This had a positive effect on Net Profit
before Tax.

9. Net Profit before Tax increased 0.96% in 2010. While this is only a slight increase, it is less than that of 2009. 10. Income Tax fell by 30.16% in 2010. This had a positive effect on the percentage increase in Net Profit after Tax. 11. Net Profit after Tax increased 11.29% in 2010. This is significantly smaller compared to the 60.60% increase it had in 2009. This is a negative indication of DESCOs profitability. 12. Cash Dividend Paid increased 5.00% in 2010. As the percentage increase in Net Income after
Tax was slightly larger than that of 2009, we can interpret that DESCO wanted to increase its Retained Earnings by a larger amount.

DESCO STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2011 Amonunt (Taka) OPERATING REVENUE Energy Sales (Net of Vat) Other Operating Revenue Total Revenue from Operation COST OF ENERGY SALES Energy Purchase (including wheeling charge) Operating Expenses Depreciation (Operating) Gross Margin COST & EXPENDITURE Administrative Expenses Employee Expenses Bad Debts Provision Depreciation (Non Operating) Operating Profit NON OPERATING INCOME/(EXPENSE) Interest Income Interest Expenses Exchange Fluctuation (Loss) Appreciation / (diminution) in value of Investment Gain on sale of Investment Miscellaneous Income Non Operating Income (Net) Net Profit before Tax INCOME TAX Current Tax Provision Deferred Tax Provision Net Profit after Tax Retained Earnings at 01 July 2010 GOB Equity Priors year's adjustment Cash Dividend paid Retained Earnings at 30 June 2011 Vertical Horizontal Analysis Analysis 13.69% 3.71% 13.53% 12.19% -10.72% 16.38% 11.82% 19.87% 28.07% -7.11% 9.55% 9.65% -0.43% 30.44% -10.43% 25.61% 1503.94% -100.00% 0.00% -50.19% -96.92% -6.51% 236.36% -81.68% 45.54% -17.35% 19.66% #DIV/0! 404.04% -28.00% 13.24%

12,290,781,425 98.52% 184,827,800 1.48% 12,475,609,225 100.00% 8,801,828,794 217,830,914 659,587,005 9,679,246,713 2,796,362,512 161,576,317 575,014,500 13,154,539 45,337,476 795,082,832 2,001,279,680 781,098,894 -277,851,267 -516,364,173 0 31,136,600 1,296,793 19,316,847 2,020,596,527 -501,296,533 -40,961,421 -542,257,954 1,478,338,573 8,759,855,635 0 -78,598,146 -240,255,666 9,919,340,396 70.55% 1.75% 5.29% 77.59% 22.41% 1.30% 4.61% 0.11% 0.36% 6.37% 16.04% 6.26% 2.23% 4.14% 0.00% 0.25% 0.01% 0.15% 16.20% 4.02% 0.33% 4.35% 11.85% 70.22% 0.00% 0.63% 1.93% 79.51%

Worksheet-05: Horizontal and Vertical Analysis of Statement of Income and Retained Earnings (2010-2011)

Examination of the Statement of Income and Retained Earnings (2010-2011) shows the following1. Net Energy Sales increased 13.69% in 2011. This increase is larger than 2009s increase of
10.32%. So, we can interpret that DESCO had a more success in 2011 compared to 2010 in terms of revenue.

2. Other Operating Revenue increased 3.71% in 2011. However, Other Operating Revenue provides only 1.48% of total operating revenue. So, its effect is largely ignorable. 3. Total Operating Revenue increased 13.53% in 2011. The increase in revenue means that DESCO had a positive growth in 2011. This growth is also slightly larger than 2010s growth of 9.84%. 4. Cost of energy sales increased 11.82% in 2011. This increase is smaller than the increase in Total Operating Revenue. So, we can interpret that the percentage increase in production cost was smaller than the percentage increase in sales price. 5. Gross Margin increased 19.87% in 2011. This increase means that DESCO had substantially more operating profit in 2010 compared to its operating profit in 2010. 6. Operating Cost and Expenditure decreased 0.43% in 2011. This means that the costs that are not directly related to production decreased slightly. 7. Operating profit increased 30.44% in 2011. This means DESCO had far efficiency in running its operation in 2011 compared to that of 2010. 8. Non Operating Income (Net) decreased 96.92% in 2011. We can attribute this to the large
amount of loss due to Exchange Fluctuation. This had a negative effect on Net Profit before Tax.

9. Net Profit before Tax decreased 6.51% in 2011. This is far less compared to that of 2010. 10. Income Tax fell by 17.35% in 2011. This had a positive effect on the percentage increase in Net Profit after Tax. 11. Net Profit after Tax decreased 17.35% in 2011. In the last 5 years, DESCO suffered the worst decline in its growth in 2011. This is a negative indication of DESCOs profitability.
12. Cash Dividend Paid decreased 28.00% in 2011. We can attribute this to DESCOs decline in Net Profit growth. This is a very negative indication for the average shareholders.

DESCO STATEMENT OF COMPREHENSIVE INCOME TREND ANALYSIS 2007 OPERATING REVENUE Energy Sales (Net of Vat) Other Operating Revenue Total Revenue from Operation COST OF ENERGY SALES Energy Purchase (including wheeling charge) Operating Expenses Depreciation (Operating) Gross Margin COST & EXPENDITURE Administrative Expenses Employee Expenses Bad Debts Provision Depreciation (Non Operating) Operating Profit NON OPERATING INCOME/(EXPENSE) Interest Income Interest Expenses Exchange Fluctuation (Loss) Appreciation / (diminution) in value of Investment Gain on sale of Investment Miscellaneous Income Non Operating Income (Net) Net Profit before Tax INCOME TAX Current Tax Provision Deferred Tax Provision Net Profit after Tax Retained Earnings at 01 July GOB Equity Priors year's adjustment Cash Dividend paid Retained Earnings at 30 June 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 2008 124.84% 109.29% 124.50% 124.36% 75.14% 112.96% 120.14% 140.26% 2009 135.74% 126.92% 135.54% 143.89% 56.83% 117.25% 135.93% 134.15% 142.21% 162.27% 115.06% 133.99% 153.73% 129.32% 2010 149.75% 110.22% 148.88% 158.61% 61.96% 128.17% 149.70% 145.90% 171.13% 300.38% 125.42% 151.10% 252.11% 119.66% 2011 170.24% 114.31% 169.02% 177.95% 55.32% 149.16% 167.39% 174.89% 219.17% 279.03% 137.40% 165.68% 251.02% 156.08%

100.00% 113.70% 100.00% 132.62% 100.00% 1034.98% 100.00% 125.26% 100.00% 154.85% 100.00% 136.65%

100.00% 214.15% 269.61% 352.92% 316.10% 100.00% 90.06% 59.83% 77.95% 97.91% 100.00% 801.93% -187.00% -569.01% -9126.52% #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 100.00% 11.75% 26.05% 26.31% 13.10% 100.00% -1515.56% -2285.02% -2968.34% -91.45% 100.00% 164.33% 169.76% 171.39% 160.23% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 347.67% 355.65% 137.50% 0.00% 194.82% 96.99% 140.75% 226.04% 116.58% 137.56% 375.00% 4795.00% -31.12% 1671.65% 125.00% 125.00% 118.00% 193.21% 99.36% 55.89% 67.74% 251.55% 225.25% 0.00% -20.49% 131.25% 231.20% 334.20% 10.24% 98.59% 207.90% 269.54% 0.00% -103.26% 94.50% 261.80%

Worksheet-06: Trend Analysis of Statement of Income and Retained Earnings (2007-2011)

We selected 2007 as the base year. Examination of the Statement of Income and Retained Earnings (2007-2011) shows the following1. Energy Sales has steadily increased all 5 years. We can attribute this to the increasing demand for electricity in both local and global market. As the population increases, the Energy sales are expected to grow even larger in the next 5 years. 2. As Energy Sales is the major source of operating income for DESCO, Total Revenue from Operation has also increased steadily. The same is expected for the next 5 years. 3. Cost of Energy Sales increased in every year except 2009. This discrepancy may have occurred due the global recession. We can generally assume, that the cost of energy sales will continue to increase in the next 5 years under normal circumstances. 4. Operating Cost & Expenditure has also increased substantially in the 5 years. We can assume that the next 5 years will have even larger amount of Operating Cost & Expenditure due to the increase in administrative expenses and employee salaries. 5. Operating profit has both increased and decreased in the past 5 years. DESCO should try to find the cause for this fluctuation and redesign is operation structure if necessary. 6. Interest Income has increased substantially in the past 5 years. This is a positive indication of DESCOs profitability. Although interest income decreased in 2011 compared to 2010, we can interpret that it will continue to increase under normal circumstances. 7. Trend Analysis has failed to provide a reasonable result for Non Operating Income (Net) because the base year had a negative number. 8. Net Profit before Tax has mostly increased in the past 5 years. We can predict that it will continue to increase the next 5 years as well. 9. Net Profit after Tax has increased substantially from 2007 to 2010. But it has decreased in 2011. We predict that as energy sales are increasing, DESCO should rebound from this decline in the future years. 10. Cash Dividends paid has increased from 2007 to 2010, but it has decreased in 2011. This is largely due to the decline in Net Profit growth in 2011. If DESCO manages to rebound from its decline in net profit, Cash Dividends should grow as well.

DESCO STATEMENT OF FINANCIAL POSITION 30 JUNE 2007 Amonunt (Taka) APPLICATION OF FUND Non Current Assets Property, Plant & Equipment Capital Work -in- Progress Investment in Shares Current Assets Stores and Spares Accounts Receivable Advances & Deposits Advance Income Tax Cash and Bank Balances Current Liabilities Accounts Payable Creditors for Goods/Works Creditors for Other Finance Creditors for Expenses Current Maturity of Long Term Loans Accrued Interest on Loans Provision for Income Tax Net Current Assets SOURCES OF FUND Capital & Reserves Share Capital Share Money Deposit GOB Equity Proposed Dividend Retained earnings Equity Long Term Liabilities Loan from ADB/GOB Deferred Tax Liability Due to DESA (for assets taken over) Consumer Security Deposits Vertical Analysis Horizontal Analysis

6,919,299,969 68,146,338 0 6,987,446,307 916,718,318 1,876,732,950 106,318,194 87,949,401 5,667,737,073 8,655,455,936 1,271,910,501 21,199,975 413,509,773 81,076,031 172,387,673 1,040,511,410 260,749,184 3,261,344,547 5,394,111,389 12,381,557,696

55.88% 0.55% 0.00% 56.43% 7.40% 15.16% 0.86% 0.71% 45.78% 69.91% 10.27% 0.17% 3.34% 0.65% 1.39% 8.40% 2.11% 26.34% 43.57% 100.00%

27.40% -88.35% #DIV/0! 16.14% -34.15% -15.43% -77.45% 29.36% 71.67% 16.15% -3.24% -89.42% 79.35% 154.27% 64.78% 25.68% 135.44% 15.63% 16.47% 16.29%

1,271,194,000 75,000,000 1,241,940,000 317,798,500 882,996,127 3,788,928,627 3,422,286,180 1,058,542,769 3,666,534,532 445,265,589 8,592,629,070 12,381,557,697

10.27% 0.61% 10.03% 2.57% 7.13% 30.60% 27.64% 8.55% 29.61% 3.60% 69.40% 100.00%

0.00% 0.00% 0.49% 25.00% 113.49% 16.58% -3.23% 60.74% 27.69% 34.52% 16.15% 16.29%

Worksheet-07: Vertical and Horizontal Analysis of Statement of Financial Position (30 June 2007)

Examination of the Statement of Financial Position (30 June 2007) shows the following1. Non Current Assets increased 16.14% in 2007. 2. Non Current Assets were 56.43% of Total Assets in 2007. 3. Current Assets increased 16.15% in 2007. 4. Current Liabilities increased 15.63% in 2007. 5. DESCO deducted its Current Liabilities from its current Assets. Net Current Assets were 43.57% of Total Assets in 2007. 6. Total Assets increased 16.29% in 2007. 7. Share Capital remained the same in 2007. 8. Retained Earnings increased 113.49% in 2007. This means that DESCO distributed very little of its Net Profit to shareholders as dividends in 2007. 9. Equity increased 16.58% in 2007. 10. Equity was 30.60% of Total Assets in 2007. 11. Long-term Liabilities increased 16.15% in 2007. 12. Long-term Liabilities was 69.40% of Total Assets in 2007.

DESCO STATEMENT OF FINANCIAL POSITION 30 JUNE 2008 Amonunt (Taka) APPLICATION OF FUND Non Current Assets Property, Plant & Equipment Capital Work -in- Progress Investment in Shares Current Assets Stores and Spares Accounts Receivable Advances & Deposits Advance Income Tax Cash and Bank Balances Current Liabilities Accounts Payable Creditors for Goods/Works Creditors for Other Finance Creditors for Expenses Current Maturity of Long Term Loans Accrued Interest on Loans Provision for Income Tax Net Current Assets SOURCES OF FUND Capital & Reserves Share Capital Share Money Deposit GOB Equity Proposed Dividend Retained earnings Equity Long Term Liabilities Loan from ADB/GOB Deferred Tax Liability Due to DESA (for assets taken over) Consumer Security Deposits Vertical Analysis Horizontal Analysis

7,235,269,951 51,695,861 29,131,000 7,316,096,812 774,928,506 1,827,843,956 239,853,243 134,898,928 7,548,645,032 10,526,169,665 1,351,935,827 20,174,859 511,497,336 61,803,929 253,860,247 1,116,597,987 762,950,546 4,078,820,731 6,447,348,934 13,763,445,746

52.57% 0.38% 0.21% 53.16% 5.63% 13.28% 1.74% 0.98% 54.85% 76.48% 9.82% 0.15% 3.72% 0.45% 1.84% 8.11% 5.54% 29.64% 46.84% 100.00%

4.57% -24.14% #DIV/0! 4.70% -15.47% -2.61% 125.60% 53.38% 33.19% 21.61% 6.29% -4.84% 23.70% -23.77% 47.26% 7.31% 192.60% 25.07% 19.53% 11.16%

1,271,194,000 75,000,000 1,264,440,000 381,358,200 1,478,782,960 4,470,775,160 3,061,150,839 1,608,542,768 4,039,671,539 583,305,439 9,292,670,585 13,763,445,745

9.24% 0.54% 9.19% 2.77% 10.74% 32.48% 22.24% 11.69% 29.35% 4.24% 67.52% 100.00%

0.00% 0.00% 1.81% 20.00% 67.47% 18.00% -10.55% 51.96% 10.18% 31.00% 8.15% 11.16%

Worksheet-08: Vertical and Horizontal Analysis of Statement of Financial Position (30 June 2008)

Examination of the Statement of Financial Position (30 June 2008) shows the following1. Non Current Assets increased 4.70% in 2008. 2. Non Current Assets were 53.16% of Total Assets in 2008. 3. Current Assets increased 21.61% in 2008. 4. Current Liabilities increased 25.07% in 2008. 5. DESCO deducted its Current Liabilities from its current Assets. Net Current Assets were 46.84% of Total Assets in 2008. 6. Total Assets increased 11.16% in 2008. 7. Share Capital remained the same in 2008. 8. Retained Earnings increased 67.47% in 2008. This means that DESCO distributed very little of its Net Profit to shareholders as dividends. 9. Equity increased 18.00% in 2008. 10. Equity was 32.48% of Total Assets in 2008. 11. Long-term Liabilities increased 8.15% in 2008. 12. Long-term Liabilities were 67.52% of Total Assets in 2008.

DESCO STATEMENT OF FINANCIAL POSITION 30 JUNE 2009 Amonunt (Taka) APPLICATION OF FUND Non Current Assets Property, Plant & Equipment Capital Work -in- Progress Investment in Shares Current Assets Stores and Spares Accounts Receivable Advances & Deposits Advance Income Tax Cash and Bank Balances Current Liabilities Accounts Payable Creditors for Goods/Works Creditors for Other Finance Creditors for Expenses Current Maturity of Long Term Loans Accrued Interest on Loans Provision for Income Tax Net Current Assets SOURCES OF FUND Capital & Reserves Share Capital Share Money Deposit GOB Equity Proposed Dividend Retained earnings Equity Long Term Liabilities Loan from ADB/GOB Deferred Tax Liability Due to DESA (for assets taken over) Consumer Security Deposits Vertical Analysis Horizontal Analysis

7,293,090,558 50,442,120 23,392,193 7,366,924,871 4,840,363,451 2,130,059,408 204,155,440 386,901,394 8,491,302,150 16,052,781,843 1,631,201,600 1,081,397,673 714,182,281 78,605,476 254,502,284 488,677,181 718,119,385 4,966,685,880 11,086,095,963 18,453,020,834

39.52% 0.27% 0.13% 39.92% 26.23% 11.54% 1.11% 2.10% 46.02% 86.99% 8.84% 5.86% 3.87% 0.43% 1.38% 2.65% 3.89% 26.92% 60.08% 100.00%

0.80% -2.43% -19.70% 0.69% 524.62% 16.53% -14.88% 186.81% 12.49% 52.50% 20.66% 5260.13% 39.63% 27.19% 0.25% -56.24% -5.88% 21.77% 71.95% 34.07%

1,334,753,700 75,000,000 1,552,140,000 600,639,165 3,757,874,232 7,320,407,097 5,368,637,037 990,291,231 4,039,671,539 734,013,930 11,132,613,737 18,453,020,834

7.23% 0.41% 8.41% 3.25% 20.36% 39.67% 29.09% 5.37% 21.89% 3.98% 60.33% 100.00%

5.00% 0.00% 22.75% 57.50% 154.12% 63.74% 75.38% -38.44% 0.00% 25.84% 19.80% 34.07%

Worksheet-09: Vertical and Horizontal Analysis of Statement of Financial Position (30 June 2009)

Examination of the Statement of Financial Position (30 June 2009) shows the following1. Non Current Assets increased 0.69% in 2009. 2. Non Current Assets were 39.92% of Total Assets in 2009. 3. Current Assets increased 52.50% in 2009. 4. Current Liabilities increased 21.77% in 2009. 5. DESCO deducted its Current Liabilities from its current Assets. Net Current Assets were 60.08% of Total Assets in 2009. 6. Total Assets increased 34.07% in 2009. 7. Share Capital increased 5.00% in 2009. 8. Retained Earnings increased 154.12% in 2009. This means that DESCO distributed very little of its Net Profit to shareholders as dividends. 9. Equity increased 63.74% in 2009. 10. Equity was 39.67% of Total Assets in 2009. 11. Long-term Liabilities increased 19.80% in 2009. 12. Long-term Liabilities were 60.33% of Total Assets in 2009.

DESCO STATEMENT OF FINANCIAL POSITION 30 JUNE 2010 Amonunt (Taka) APPLICATION OF FUND Non Current Assets Property, Plant & Equipment Capital Work -in- Progress Investment in Shares Current Assets Stores and Spares Accounts Receivable Advances & Deposits Advance Income Tax Cash and Bank Balances Current Liabilities Accounts Payable Creditors for Goods/Works Creditors for Other Finance Creditors for Expenses Current Maturity of Long Term Loans Accrued Interest on Loans Provision for Income Tax Net Current Assets SOURCES OF FUND Capital & Reserves Share Capital Share Money Deposit GOB Equity Proposed Dividend Retained earnings Equity Long Term Liabilities Loan from ADB/GOB Deferred Tax Liability Due to DESA (for assets taken over) Consumer Security Deposits Vertical Analysis Horizontal Analysis

8,440,892,392 335,313,744 29,131,000 8,805,337,136 4,671,791,624 2,375,140,475 134,659,063 438,322,022 9,668,541,622 17,288,454,806 1,865,308,079 1,028,992,195 747,920,808 79,095,756 257,279,761 359,487,193 405,311,657 4,743,395,449 12,545,059,357 21,350,396,493

39.54% 1.57% 0.14% 41.24% 21.88% 11.12% 0.63% 2.05% 45.29% 80.97% 8.74% 4.82% 3.50% 0.37% 1.21% 1.68% 1.90% 22.22% 58.76% 100.00%

15.74% 564.75% 24.53% 19.53% -3.48% 11.51% -34.04% 13.29% 13.86% 7.70% 14.35% -4.85% 4.72% 0.62% 1.09% -26.44% -43.56% -4.50% 13.16% 15.70%

1,601,704,440 75,000,000 1,552,140,000 0 5,531,011,195 8,759,855,635 6,482,508,563 1,213,835,706 4,039,671,539 854,525,049 12,590,540,857 21,350,396,492

7.50% 0.35% 7.27% 0.00% 25.91% 41.03% 30.36% 5.69% 18.92% 4.00% 58.97% 100.00%

20.00% 0.00% 0.00% -100.00% 47.18% 19.66% 20.75% 22.57% 0.00% 16.42% 13.10% 15.70%

Worksheet-10: Vertical and Horizontal Analysis of Statement of Financial Position (30 June 2010)

Examination of the Statement of Financial Position (30 June 2010) shows the following1. Non Current Assets increased 19.53% in 2010. 2. Non Current Assets were 41.24% of Total Assets in 2010. 3. Current Assets increased 7.70% in 2010. 4. Current Liabilities decreased 4.50% in 2010. 5. DESCO deducted its Current Liabilities from its current Assets. Net Current Assets were 58.76% of Total Assets in 2010. 6. Total Assets increased 15.70% in 2010. 7. Share Capital increased 20.00% in 2010. 8. Retained Earnings increased 47.18% in 2010. This means that DESCO distributed little of its Net Profit to shareholders as dividends. 9. Equity increased 19.66% in 2010. 10. Equity was 41.03% of Total Assets in 2010. 11. Long-term Liabilities increased 13.10% in 2010. 12. Long-term Liabilities were 58.97% of Total Assets in 2010.

DESCO STATEMENT OF FINANCIAL POSITION 30 JUNE 2011 Amonunt (Taka) APPLICATION OF FUND Non Current Assets Property, Plant & Equipment Capital Work -in- Progress Investment in Shares Current Assets Stores and Spares Accounts Receivable Advances & Deposits Advance Income Tax Cash and Bank Balances Current Liabilities Accounts Payable Creditors for Goods/Works Creditors for Other Finance Creditors for Expenses Current Maturity of Long Term Loans Accrued Interest on Loans Provision for Income Tax Net Current Assets SOURCES OF FUND Capital & Reserves Share Capital Share Money Deposit GOB Equity Proposed Dividend Retained earnings Equity Long Term Liabilities Loan from ADB/GOB Deferred Tax Liability Due to DESA (for assets taken over) Consumer Security Deposits Vertical Analysis Horizontal Analysis

8,352,974,008 1,312,565,899 1,000 9,665,540,907 4,026,231,885 2,703,257,156 130,770,356 399,469,804 12,383,737,339 19,643,466,540 2,103,174,342 832,341,678 1,146,976,859 119,945,956 363,406,475 516,632,143 544,799,496 5,627,276,949 14,016,189,591 23,681,730,498

35.27% 5.54% 0.00% 40.81% 17.00% 11.41% 0.55% 1.69% 52.29% 82.95% 8.88% 3.51% 4.84% 0.51% 1.53% 2.18% 2.30% 23.76% 59.19% 100.00%

-1.04% 291.44% -100.00% 9.77% -13.82% 13.81% -2.89% -8.86% 28.08% 13.62% 12.75% -19.11% 53.36% 51.65% 41.25% 43.71% 34.41% 18.63% 11.73% 10.92%

2,082,215,772 75,000,000 1,552,140,000 0 6,209,984,623 9,919,340,395 7,516,987,500 1,254,797,127 4,039,671,539 950,933,940 13,762,390,106 23,681,730,501

8.79% 0.32% 6.55% 0.00% 26.22% 41.89% 31.74% 5.30% 17.06% 4.02% 58.11% 100.00%

30.00% 0.00% 0.00% #DIV/0! 12.28% 13.24% 15.96% 3.37% 0.00% 11.28% 9.31% 10.92%

Worksheet-11: Vertical and Horizontal Analysis of Statement of Financial Position (30 June 2011)

Examination of the Statement of Financial Position (30 June 2011) shows the following1. Non Current Assets increased 9.77% in 2011. 2. Non Current Assets were 40.81% of Total Assets in 2011. 3. Current Assets increased 13.62% in 2011. 4. Current Liabilities decreased 18.63% in 2011. 5. DESCO deducted its Current Liabilities from its current Assets. Net Current Assets were 59.19% of Total Assets in 2011. 6. Total Assets increased 10.92% in 2011. 7. Share Capital increased 30.00% in 2011. 8. Retained Earnings increased 12.28% in 2011. This means that DESCO distributed most of its Net Profit to shareholders as dividends. 9. Equity increased 13.24% in 2011. 10. Equity was 41.89% of Total Assets in 2011. 11. Long-term Liabilities increased 9.31% in 2011. 12. Long-term Liabilities were 58.11% of Total Assets in 2011.

DESCO STATEMENT OF FINANCIAL POSITION TREND ANALYSIS 2007 APPLICATION OF FUND Non Current Assets Property, Plant & Equipment Capital Work -in- Progress Investment in Shares Current Assets Stores and Spares Accounts Receivable Advances & Deposits Advance Income Tax Cash and Bank Balances Current Liabilities Accounts Payable Creditors for Goods/Works Creditors for Other Finance Creditors for Expenses Current Maturity of Long Term Loans Accrued Interest on Loans Provision for Income Tax Net Current Assets SOURCES OF FUND Capital & Reserves Share Capital Share Money Deposit GOB Equity Proposed Dividend Retained earnings Equity Long Term Liabilities Loan from ADB/GOB Deferred Tax Liability Due to DESA (for assets taken over) Consumer Security Deposits 2008 2009 2010 2011

100.00% 104.57% 105.40% 121.99% 120.72% 100.00% 75.86% 74.02% 492.05% 1926.10% #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 100.00% 104.70% 105.43% 126.02% 138.33% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 84.53% 97.39% 225.60% 153.38% 133.19% 121.61% 528.01% 113.50% 192.02% 439.91% 149.82% 185.46% 509.62% 126.56% 126.66% 498.38% 170.59% 199.74% 439.20% 144.04% 123.00% 454.20% 218.50% 226.95%

106.29% 128.25% 146.65% 165.36% 95.16% 5100.94% 4853.74% 3926.14% 123.70% 172.71% 180.87% 277.38% 76.23% 96.95% 97.56% 147.94% 147.26% 147.63% 149.24% 210.81% 107.31% 46.97% 34.55% 49.65% 292.60% 275.41% 155.44% 208.94% 125.07% 152.29% 145.44% 172.54% 119.53% 205.52% 232.57% 259.84% 111.16% 149.04% 172.44% 191.27%

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

100.00% 100.00% 101.81% 120.00% 167.47% 118.00% 89.45% 151.96% 110.18% 131.00% 108.15% 111.16%

105.00% 100.00% 124.98% 189.00% 425.58% 193.21% 156.87% 93.55% 110.18% 164.85% 129.56% 149.04%

126.00% 100.00% 124.98% 0.00% 626.39% 231.20% 189.42% 114.67% 110.18% 191.91% 146.53% 172.44%

163.80% 100.00% 124.98% 0.00% 703.29% 261.80% 219.65% 118.54% 110.18% 213.57% 160.17% 191.27%

Worksheet-12: Trend Analysis of Statement of Financial Position (2007-2011)

We considered 2007 as the base year for our Trend Analysis. Examination of the Statement of Financial Position (2007-2011) shows the following1. Non Current Assets have steadily increased in the last 5 years. Under normal circumstances, It should continue to increase in the next 5 years. 2. Trend Analysis has failed to provide reasonable results for Investment in Shares. This is due to the fact that there was no Investment in Shares in the base year of 2007. 3. Current Assets have increased substantially in the last 5 years. This is a positive indication for DESCOs liquidity. 4. Current Liabilities increased as well but at lesser pace than Current Assets. So, liquidity should not be a problem for DESCO when it has to provide payment for short-term loans. 5. DESCO deducted its Current Liabilities from its current Assets in all 5 years to determine Net Current Assets. Net Current Assets has increased every year substantially. While this ensures that DESCO is capable of handling its short-term payments, it may not be properly utilizing its current assets to earn profit. 6. Total Assets have steadily increased in the last 5 years. We interpret that this is due do DESCOs growth as a company. Under Normal Circumstances, DESCO should continue to grow and increase its Total Assets. 7. Share Capital was same for 2007 and 2008, but then it began to increase. We can assume that DESCO will want to increase its share capital even more in the future. 8. Retained Earnings has increased in large amounts every year. While this is positive in proving DESCOs solvency, DESCO might not be fully utilizing its resources to earn profit. 9. Total Equity has increased every year. This is mostly due to the increase in Retained Earnings. In the past 5 years, DESCO provided very little of its Net Profit to its Shareholders as Cash Dividends and instead increased its retained earnings. While this ensures DESCOs solvency for the future, shareholders may be discouraged to buy its shares. 10. Long-term Liabilities has increased every year as well. This should not be a major concern for DESCOs solvency because the increase in Equity is considerably larger.