The auditor has issued a qualified opinion, along with an emphasis of matter, on the audited financial statements of Power Grid Bangladesh PLC for the year ended 30 June 2025, citing departures from accounting standards, weak asset verification and concerns over receivables and loan accounting.
A qualified opinion means the auditor did not reject the entire set of accounts but raised reservations over specific items where accuracy and compliance could not be assured.
In the audit report, the auditor said the company capitalised Tk4,715.33 crore in unrealised foreign exchange losses up to 30 June 2025, including Tk1,439.36 crore added to capital work-in-progress during the year.
“This capitalisation of foreign exchange loss is not in accordance with International Accounting Standard 21 (The Effects of Changes in Foreign Exchange Rates),” the auditor said, noting that such exchange differences should be recognised in profit or loss in the period in which they arise.
The auditor also raised concerns over property, plant and equipment, reported at Tk27,436.76 crore, as the company has never carried out any impairment test, which is required under International Accounting Standard 36 (Impairment of Assets).
Land was shown at Tk1,410.22 crore, including Tk16.44 crore added during the year, but the auditor said legal ownership and valuation could not be fully verified due to the absence of no-objection certificates and completed mutation for land transferred from the Bangladesh Power Development Board.
“As a result, we could not confirm the ownership and completeness of the lands owned by the company as on 30 June 2025,” the auditor said.
Accounts and other receivables stood at Tk1,115.63 crore, including amounts due from the Bangladesh Power Development Board, Palli Bidyut Samities, Dhaka Power Distribution Company, Dhaka Electric Supply Company, West Zone Power Distribution Company, Northern Electricity Supply Company and Optical Power Ground Wire operations.
The audit report said disputed receivables from the Bangladesh Power Development Board and Palli Bidyut Samities amounted to Tk170.75 crore, adding that “the company is very unlikely to recover the amounts in full,” while no provision was recognised against those balances.
The auditor also flagged an assigned loan of Tk359.92 crore from the Dhaka Power Distribution Company, previously known as Dhaka Electric Supply Authority, shown in the accounts, saying no supporting documents were available to verify the loan balance.
It further noted that the Dhaka Power Distribution Company’s audited financial statements for 2024–25 did not recognise any receivable from Power Grid Bangladesh, while details on the loan’s sanctioned amount, repayment schedule and overdue position were not provided.
Interest payable on term loans was reported at Tk7,933.32 crore, but the auditor said interest expense on foreign currency loans of closed projects was understated by Tk206.41 crore due to errors in calculation and presentation.
“This indicates that interest expense and interest payable on foreign currency loans of closed projects are understated in the financial statements,” the auditor said.
The audit report also highlighted weaknesses in loan repayment practices, noting that revised repayment schedules prepared after the grace period were not approved under the subsidiary loan agreements and were often not followed.
As a result, interest payments for delayed periods were not made in line with approved schedules, the auditor added.
