Explore More: Annual Report 2018

EXPLORE
MORE
ANNUAL REPORT 2018
We live in a world where pocket-sized
devices have become the gateway
for limitless exploration and unbound
resources, something previously
unimaginable. Now knowledge, wisdom
and opportunities are just a few clicks
away, heralding a new horizon of
technological empowerment.
At Grameenphone, we help overcome

boundaries through digitalisation. Our
products’ platforms serve as a catalyst
to realising dreams. We believe in
continuous innovation and ensuring the
best customer experience in everything
we do.
INSIDE
WHAT’S Welcome to our
Annual Report 2018
This report aims to inform stakeholders about our financial and
non-financial performances in 2018. This includes a look at
how we create value over time and how our strategy addresses
the challenges, risks and opportunities Grameenphone faces in
a fast-changing world.
01 Overview 02 Business Performance

An introduction to our report with a snapshot of our An insight into our operation and how our strategy is
business, key events and achievements in 2018 delivered
02 How We Create Value 15 Our Performance 2018
05 Our Culture 16 Quarterly Business Highlights 2018
06 Our Ethical Conduct 18 Message from the Chair and the CEO
07 Our Strategy
08 Our Journey
04 Governance
09 Products & Services
Our framework for Corporate Governance, Management
10 Our Recognitions 2018 Team and the role and contribution of our Board
13 Corporate Information
28 The Shareholders
30 Organisational Structure
03 Sustainability 32 Directors’ Profile
Our sustainability efforts 38 Management Team Profile
20 Sustainability and Partnership to Reduce Inequalities 41 Corporate Governance in Grameenphone
22 Climate Change - Moving Towards Green 51 Internal Control over Financial Reporting (ICFR)
25 Human Resources Management 52 Enterprise Risk Management
55 Audit Committee Report
56 Nomination and Remuneration Committee Report
05 Financial Analysis
Our financial performance and statutory financial statements
with associated audit report and supporting notes 06 Additional Information
58 Six Years’ Financial Summary Corporate Information and Notice
60 Value Added Statement 2018 150 Useful Information for Shareholders
61 Contribution to the National Exchequer 154 Notice of the 22nd Annual General Meeting
63 Directors’ Report 155 Proxy Form and Attendance Slip
87 Management's Discussion and Analysis
93 Auditors’ Report & Audited Financial Statements
22 ND ANNUAL GENERAL MEETING View Our Annual Report 2018

OF GRAMEENPHONE LTD. Report Online Go green and help reduce
Place : International Convention City carbon footprints.
Bashundhara (ICCB), Hall-1 (Gulnaksha)
Joar Sahara, Khilkhet, Dhaka-1229 Visit: www.grameenphone.com
Time : 10:30 AM to view the online version of this
Date : 23 April 2019 Annual Report.
>See page 154 for AGM notice
Overview
HOW WE
Technological evolution has led us all to experience
an increasingly virtual life, connected to every
corner of the globe. The easy access and benefits of
connectivity are leaving an indelible mark on our lives.
CREATE VALUE Grameenphone believes that connected societies

are empowered societies. We focus not only on
connecting people and businesses but also creating
value for our customers, our investors, our people and
For Our Customers the communities in which we operate.
We have invested
BDT 347.4b We cover
since our inception
99.5%
BDT 34b of the Bangladeshi
population
in 2018 to rollout more than five
thousand 4G LTE sites, expanding 2G Our 3G population coverage is
and 3G coverage, capacity enhancement, the widest in Bangladesh at
as well as building higher IT readiness
95.2%
72.7 MILLION SUBSCRIBERS
5,000+
37.1 MILLION MOBILE DATA USERS
4G 4G Sites 20%+
data traffic on 4G
10.7m
4G Devices on the
Grameenphone network at the end of 2018
Digitising the Customer Journey
376,285
251 K MAU 3.38 million MAU 2.44 million MAU 1.49 million MAU
Superior
Retail
2
GP Lounges
UNIQUE RECHARGE
OUTLETS
Presence
* MAU- Monthly Average User
5.55 million Sub Base 1.85 million MAU 4.54 million MAU
for Customer
experience of
Digital Services 6,836
For Our Investors GP EXPRESS STORES
280%
OVER dividend
Best Telecom Brand in
Bangladesh 31,000
SHAREHOLDERS
Including Interim
Dividend 2018
BDT 28
awarded by
Bangladesh Brand Forum
Per Share
ACCOLADES
Last 5-years Best presented
Annual Report 2017
Total Shareholder by SAFA and ICAB
Return Best Corporate Governance
2
+129% Excellence award 2017

by ICSB
Grameenphone Ltd.
Annual Report 2018
* As of 31 December 2018
How We Create Value

Overview Business Performance Sustainability Governance Financial Analysis Additional Information
For Our Employees

Partnership with leading learning platforms to
provide employees with Company sponsored
One of the first app of its diverse eLearning library
kind for HR and admin
services offering over 15
services in one digital
platform
58+
Launched GPHRBot- a
telegram messenger BOT to
provide ‘one-stop-solution’
Average Hours per employee to all employee queries on
spent on e-learning
policies, benefits and HR
services on-the-GO!
Employees spent
10,500
Hours on Classroom
Learning
70+
Children accommodated
in Day Care Centre
For Our Society
Child online safety Sensitised over
directly educated more than 73,000

400,000 Teachers/Parents
Students
Social Media Campaign
Generated More than
We have contributed
in over 208 schools 10m Views
BDT 669.5b
to the National Exchequer
GP Accelerator Program We supported since our inception
To help and encourage early stage
social innovation and tech start-ups,
we have created a platform under GP
26 Over
start-ups
Accelerator program throughout the
program and
185,000
Nationwide students from 1,453 schools
5 Enrichment
participated across the country in
book reading program, of which
19,647 students were recognised
this year with over
Program and
BDT 2.98m Alor Pathshala More than
in cash grants
1.5m
3
BDT 14m+ books downloaded while over 1.35m

Grameenphone Ltd.
Annual Report 2018
non-financial support people visited alorpathshala.org
How We Create Value

Dreams that push the boundary of possibilities are the ones that end
up changing the world. Grameenphone commits itself to reducing
inequalities through technology. Making education based services the
catalyst, Grameenphone is determined to make positive changes in
how people learn and enlighten their communities.
OUR
CULTURE Our strategy spells out what we do; our behaviours explain
how we deliver; and our purpose is our reason for
existence. Being a part of or a partner to Grameenphone
means sharing our commitment and passion for these key
elements that shape our culture.
STRATEGY BEHAVIOURS
Internet Access Always Explore
Personalisation Create Together
Efficient operations Keep Promises
OUR PURPOSE
Digital positions Be Respectful
Connecting you to
what matters most.
Empowering societies.
Our purpose
Connecting you to what matters most | Empowering Societies
Connecting customers to what matters most has been the core of our business. Today internet connectivity impacts nearly every
part of our lives, and we believe in making it personalised and relevant for our customers. It’s about more than good business; it’s
empowering societies.
Our behaviours
We have four behaviours that guide the way we work:
We believe growth comes from learning We believe diverse teams find better
every day. We’re curious and we dare to solutions. We seek different perspectives,
challenge, test, fail fast and pivot. share, involve and help each other
Always Create
Explore succeed. Together
We believe that trust is key in all our We believe in the unique human ability to
relationships. We take ownership and pride understand what matters for people. We
Keep in delivering with precision and integrity. meet everyone at eye level, listen and
Be
Promises show that we care. Respectful
5
In addition to our purpose and behaviours, everyone working with or for Grameenphone is required to commit to, abide by and
Grameenphone Ltd.
Annual Report 2018
annually renew their signature on our Code of Conduct.
Our Culture
Overview
OUR The Code of Conduct is the foundation of our corporate culture
ETHICAL and sets out high standards of integrity on how we do business.

Our Code guides us through day-to-day dilemmas and is the
basis for how we behave as guardians of Grameenphone’s
CONDUCT integrity. It helps us to make informed decisions and explains

where to go for more information and guidance. The Code sets
four key principles that are the basis of our ethical culture and
define the core of our business conduct.
Our Principles
2018 HIGHLIGHTS
We play by the rules
We follow laws, regulations and our policies and, if in conflict,
we uphold the highest standard New Code of Conduct
The new Code of Conduct covers all
We are accountable for our actions possible compliance aspects and
We actively seek information, understand our responsibilities, provides proper guidance. It helps us
and recognise our wider impact on the societies in which we carry out our duties in an ethical and
operate responsible manner.
We are transparent and honest E-learning training module

We are open and truthful about our challenges A dilemma based compliance training
module was launched in November to
We speak up enhance our understanding of the Code
We ask questions when in doubt and raise concerns without of Conduct.
concern of retaliation
Ethics & Compliance Community
We successfully laid down the
foundations of a cross-company
community of compliance professionals
from different local and multinational
businesses operating in Bangladesh.
OUR OW
TH
EF
SIM FI
STRATEGY
P
CI
GR
EN
4
LI
CY
FIC
AND
ATI
ON
At Grameenphone, we are investing in Strategy
technologies to bring minds and ideas Pillars
W
together. While continuing to grow
LE
N
IN
IN I
B
A G NS S
TE
responsibly, we connect you to what M O
S
P
RES NE
SI
BU
matters most and empower Bangladesh.
GROWTH
1
We will continue to invest in our 4G network position
EFFICIENCY AND
SIMPLIFICATION 2
We are focused on managing our resources in a
to deliver superior network experience and activate smarter, more efficient way with a view to reducing
profitable growth from digital areas and scaling customer pain points. We do this by continuing to
business segments. Driving this is our rollout to enhance our digital tools such as MyGP, delivering
ensure coverage in new markets with a focus on a better customer experience and personalisation.
high-quality, consistent voice and data network We will also continue to optimise our network and IT
experience across Bangladesh, with increased focus assets, prioritise financial discipline, pursue process
on digital services made accessible through our simplification and streamline the way we work,
growing digital channels. creating value for our Shareholders.
RESPONSIBLE
BUSINESS 3
We will continue to contribute to the economic,
WINNING TEAM
4
Our people are key to our performance and success.
environmental and social development of We are determined to continue building an inclusive,
Bangladesh, acting with accountability and dynamic workplace that nurtures a learning,
transparency and reducing inequalities through our agile, collaborative and innovative culture. Each
presence and services. We drive the United Nations Grameenphone employee has already invested
Sustainable Development Goal (SDG) of reducing more than forty hours in identified key competency
inequality within Bangladesh, working with large areas. This is envisioned to continue in 2019 as we
numbers of children and parents. We also ensure continue developing digital competencies and
our supply chain ecosystem is driving quality and exercise the freedom to innovate to deliver on our
7
helping us grow responsibly. purpose to connect our customers to what matters

most to them.
Grameenphone Ltd.
Annual Report 2018
Our Strategy
Overview
OUR
JOURNEY
1997 2003
March 26
• A family of 1 million subscribers
The Journey began on the • Launched Prepaid Product with PSTN Connectivity
Independence Day of
Bangladesh
Family of 2 million subscribers
2004
under the Grameenphone umbrella
1998 2001
Launched Mobile to Mobile service
Launched WAP service
(without PSTN Access)
on small screen
• Launched djuice brand

2005
• Sharing our smiles with 5 million
subscribers
• Revolution in electronic recharge
1999 • Launched EDGE
Introduced first ever
• Voice SMS for the 1st time in
Pre-Paid products
Bangladesh
Catering to a massive • Introduced Pay For Me service

family of 20 million subscribers • Converted to a public limited company
2008 2007 2006
• Expanding horizons with 10 million subscribers
• Introduced new Grameenphone logo
• New era with classified sites
• Journey of Cellbazaar begins
• Bill Pay service added
2009
•Launched Grameenphone
branded handset & internet modem 2014
Soaring like an eagle with 50 million subscribers
•Successfully listed on the Stock 2015
Exchanges in Bangladesh •Launched EasyNet
•Launched Grameenphone KrishiSheba (27676)
2010 2013
Launched ‘MobiCash’ financial service Launched 3G services in Bangladesh
brand, Ekota for SME
2016
•More customer centricity • Launched GP Online Shop
• Introduced MyGP App
•Launched customer experience lab and • WowBox reached more than 6 million users
e-care solution • Revamped Healthline (789) service under the
•Swapped the entire network name “Tonic”
•Advancing towards the future with network swap • Rebranded financial services under the name
2011 2012 “GPAY”
Providing communication solutions
to 40 million subscribers
2017
•Celebrated 20 years of operation
•Introduced Digital Product Delivery
•Launched 4G Services in Bangladesh Platform (DPDP)
•Introduced New Number Series “013” in addition
to existing “017” Series
2018 •Launched operator agnostic marketplace
`Shoparu’
•Launched `MyPlan’, a complete Postpaid
8
•Reached the 70 million subscribers milestones solution

Grameenphone Ltd.
Annual Report 2018
Our Journey
PRODUCTS
& SERVICES
INTERNET GP STAR PROGRAM
● 2 Days Packs: 5MB, 2GB, 3GB (2GB+1GB4G) ● Attractive discounts in 1000+ best lifestyle outlets
● 3 Days Packs: 35MB, 250MB ● Weekly in all over Bangladesh ● STAR Iftar at Regions
Packs: 42MB, 85MB, 1GB, 1.5GB, 2.5GB, ● Free upgrade to 4G SIM for STARs
VALUE ADDED 4GB, 6GB (3GB+3GB4G), 10GB ● Partnership with digital service provider DEVICE
(5GB+5GB4G) ● Monthly Packs: 115MB, ● Priority in GPCs & recognition by call center ● GP Co-branded
SERVICES 555MB, 1GB, 1.5GB, 3GB, 3.5GB ● Discount on 4G Handsets Smartphone Campaign-
● Pay for Me ● SMS (2.5GB+1GB4G), 5GB, 5.5GB ● Recharge online for STAR status Phase V ● Joint
● Miss Call Alert (3.5GB+2GB4G), 6GB, 10GB, 12GB, Promotion- Samsung full
● Call Block ● MMS 18GB, 20GB, 30GB ● Social portfolio campaign
● Facebook ● Voice SMS Packs: Facebook Pack- 1 Day, 7 ● Samsung Flagship
● Voice Chat ● ICHCHHE TUNE Days, 28 Days, Viber Pack- Campaign- S9+
● Online Mobile Games 20MB, Whatsapp Pack- ● Huawei Flagship Campaign-
● Welcome Tune ● Music Radio 20MB, Video Packs- Daily P20 Pro ● GP Co-branded
● Video Store ● News Alert Heavy, Weekly Smartphone Campaign- Phase VI
● Audio-Video Content ● Job Alert ● Emergency Data ● Samsung Flagship Campaign-Note
● Sports Alert ● Health Tips Loan: 12MB, 30MB 9 ● Apple iPhone Flagship Campaign-
● Education Tips ● Matrimonial Service ● SC: 32MB, Xs and Xs Max ● Apple iPhone Campaign
● Religious Service ● Infotainment 35MB, 55MB, Xr ● Joint Promotion- Xiaomi full portfolio
● Entertainment Services 100MB campaign ● Joint Promotion- Symphony
● Downloadable Content Full portfolio campaign
FINANCIAL PREPAID
SERVICES ● Nishchinto
● GPAY wallet: Self wallet cash in ● Bondhu ● djuice
service through Source of Fund (SoF) ● Smile ● Village Phone
Payment solution for Utility Payment ● BPO ● GP Public Phone
Services ● Bill Pay ● Flexiload ● Business Solution ● Shofol
● Offer pack ● Train Ticketing ● Other ● Ekota ● Emergency Balance
Partner Bank Services ● Flexi-plan ● 1 Paisa offer
● Over the Counter: Agent banking
GPAY cash in other partner bank Minute Bundles ● Hourly
service minute pack
BUSINESS SOLUTIONS & IOT ROAMING

● Corporate Bulk SMS ● Outbound Roaming: Basic, Data,
● Audio Conferencing Service Standard, SMS, Economy SMS, Daily
● Voice Message Broadcast Unlimited Data, Weekly Unlimited
● Vehicle Tracking System Data, Monthly Unlimited Data, Daily
● Team Tracker Combo, Weekly Combo, Hajji
● Buddy Tracker Combo) ● Inbound Roaming
● Train Tracking (Basic, Data, SMS,
● M-Reporting Travelling Connect
● M2M Plans Loyalty Program),
● Smart Connect
ADJACENT BUSINESS POSTPAID DIGITAL SERVICES International
● Infrastructure Services*
● M-Centrex ● MyGP ● FlexiPlan SMS
● Xplore
● MyPlan ● GP Online Shop ● E-Retail
● Ekota ● Bioscope ● GP Music
● Flexi-plan ● WowBox ● WhiteBoard
● 1poisha offer ● Data Sponsorship ● Whatsapp Pack
● Minute Bundles ● Viber Pack ● EasyNet
● Business Solution ● Opera Gamebox ● GPAY ● Nirvoy
● Hourly minute packs ● GP Krishisheba ● Smart Farm
9
● Monthly Minute Pack ● Tonic ● Facebook Freebasic

Grameenphone Ltd.
Annual Report 2018
*In compliance with BTRC guidelines, Grameenphone is sharing its passive infrastructure with other licences under ‘Infrastructure Services’.
Products & Services

OUR
Grameenphone always strives to leave a
mark of excellence in any endeavour it
undertakes. The number of awards won in
RECOGNITIONS the prestigious occasion is yet another

proof of that. We are humbled by the
recognition and motivated to do even
2018 better in the future.
BEST PRESENTED ANNUAL REPORT/

CORPORATE GOVERNENCE AWARD
Won awards from the following institutions in recognition of
our transparency, accountability and compliance with local
and international standards.
SAFA (South Asian Federation

ICAB (The Institute of Chartered
of Accountants) Best Presented
Accountants of Bangladesh)
Annual Report Awards 2017
Best Presented Annual Report 2017
ICSB (Institute of Chartered Secretaries

of Bangladesh) National Award 2017
for Corporate Governance Excellence
BRAND/ADVERTISING AWARDS
Received top awards in the “Best Telecom Grameenphone and its 3 partner agencies Received Superbrands award,
Brand” and “Overall No. 4 Best Brand” for (Magnito Digital Ltd., Asiatic Mindshare Ltd., Bangladesh’s Choice 2018 from
acceptance among consumers. The awards & Asiatic Experiential Marketing Limited.) Superbrand Bangladesh as the top brand
were presented by Bangladesh Brand have won 11 awards in 16 categories in The in The Telecommunication category
Forum in partnership with the leading Digital Marketing Award 2018 organised by
brand research company Nielsen Bangladesh Brand Forum
Bangladesh
10
Best Brand Award Digital Marketing Award Superbrands Award

Grameenphone Ltd.
Annual Report 2018
Our Recognitions 2018

TECHNOLOGY AWARDS
GP Music received Grameenphone has Received Honorable Mention Received Honorable Mention in
the Champion been recognised as the in the category: the category:
Award in the “Fastest Mobile Network” Best Innovation in Product Best Technology Innovation at
Media & in Bangladesh by the Development at the the Bangladesh Innovation
Entertainment global leader in Bangladesh Innovation Award 2018 for its fuel sensing
category at the internet testing and Award 2018 for its dizital IoT solution that helps fleet
BASIS National ICT analysis Ookla, for livestock solutiion managers to save fuel cost by
Awards 2018 Q1–Q2 2018 tracking fuel usage, preventing
theft and receipt forgery
ICT Awards 2018 Speedtest Awards 2018 Bangladesh Innovation Award 2018 Bangladesh Innovation Award 2018
OTHER AWARDS
Received “Tax Card Honor Certificate” Won the award for Innovation in Won the Customer Award 2018,
from National Board of Revenue Corporate Social Responsibility practices among all Telenor business units for
(NBR) Bangladesh for highest payer of at the Bangladesh CSR Leadership driving excellence in the customer
Awards 2018. We were recognised for
income tax in telecommunication our innovative approach in designing experience dimension
sector for the year 2017-2018 and deploying sustainability initiatives
for the community
11
Highest Tax payer CSR Leadership Awards Customer Award

Grameenphone Ltd.
Annual Report 2018
Our Recognitions 2018

Taking the first step can often be the most daunting.
Grameenphone’s digital innovations and partnerships help
make it all the more worthwhile.
CORPORATE
INFORMATION
Company Name
Legal Form
Grameenphone Ltd.
A public listed company with limited liability. Incorporated as a private
limited company on October 10, 1996 and subsequently converted to
Company Registration No. a public limited company on June 25, 2007. Listed on the Dhaka and
C-31531 (652)/96
Chittagong Stock Exchanges on November 11, 2009.
Board of Directors Health, Safety, Security &

Chair
Environment Committee
Petter Boerre Furberg
Gunnar Johan Bertelsen (Chair)
Directors M Shahjahan
M Shahjahan Hasanur Rahman Rakib (Secretary)
Md. Ashraful Hassan
Haakon Bruaset Kjoel
Parveen Mahmud Management Team
Oivind Burdal
Witold Sitek Michael Patrick Foley, Chief Executive Officer
Gunnar Johan Bertelsen Yasir Azman, Deputy CEO and Chief Marketing Officer
Karl Erik Broten, Chief Financial Officer
Independent Directors
Rade Kovacevic, Chief Technology Officer
Prof. (Dr.) Jamilur Reza Choudhury
Syed Tanvir Husain, Chief Human Resources Officer
Dr. Salehuddin Ahmed
Ole Bjorn Sjulstad, Chief Corporate Affairs Officer
Mahmud Hossain, Chief Business Officer
Company Secretary Kazi Mahboob Hassan, Chief Strategy & Transformation Officer
S M Imdadul Haque
Head of Internal Audit & Investigation
Audit Committee Hasan Faisal
Dr. Salehuddin Ahmed (Chair)
M Shahjahan Head of Ethics & Compliance
Oivind Burdal
Ivan Georgiev Dimitrov
S M Imdadul Haque (Secretary)
Statutory Auditors
Nomination and Remuneration Committee
Prof. (Dr.) Jamilur Reza Choudhury (Chair) A Qasem & Co
Haakon Bruaset Kjoel Chartered Accountants
Md. Ashraful Hassan
S M Imdadul Haque (Secretary) Corporate Governance Compliance Auditors
ACNABIN
Treasury Committee Chartered Accountants
M Shahjahan (Chair)
Pal Stette Registered Office
13
Karl Erik Broten

GPHouse
S M Imdadul Haque (Secretary)
Bashundhara, Baridhara
Grameenphone Ltd.
Annual Report 2018
Dhaka-1229, Bangladesh
Corporate Information
LIVE
MORE
The essence to a happy life lies in health and fulfillment. The
convergence of health services on Grameenphone’s network
promotes a healthy lifestyle for all.
OUR
PERFORMANCE 2018
(billion BDT) 3.4% (billion BDT) 14.9% (billion BDT) 17.5%
132.8 57.4 55.6
Before Tax
Operating
Revenue
18 132.8 18 57.4 18 55.6
Profit
Profit
17 128.4 17 50.0 17 47.3
(billion BDT) 28.2% (BDT) 28.2% (BDT) 20.6%
35.2 26.04 31.38

Net Profit
Per Share
*NAV Per
After Tax
Earnings
18 35.2 18 26.04 18 31.38
Share
17 27.4 17 20.31 17 26.01
(BDT) 4.6% 21.0%
44.74 25.5
Per Share
**NOCF
18 44.74
21.1
17 42.78 Mobile Data
Revenue
*NAV- Net Asset Value; **NOCF- Net Operating Cash Flow
25.5
(billion BDT)
17 18
32.8%
Number of 69.2Mn 3.5Mn Smartphone 34.2% 24.8Mn

18.7Mn
Subscribers Users
72.7
(million)
11.5%
Consumer Business
8.6%
24.8
(million)
Smartphone count
to total subscriber 2017 2018
18.9%
Mobile Data 51.0%

Users* 37.1Mn
31.2Mn
37.1
15
Data users to total subscribers

* Subscribers having at least 150KB
(million) 2017 2018
Grameenphone Ltd.
Annual Report 2018
data usage during last 3 months.
Our Performance 2018

Business Performance
QUARTERLY BUSINESS
HIGHLIGHTS 2018
January February March April May June
Q1 Q2
l Challenging business environment due to

unprecedented rainfall and thunderstorms, along with
intense competition in the industry.
l On 19 February 2018, Grameenphone obtained l In the quarter, Bangladesh experienced 37% more
approval and became the first mobile operator to launch
rainfall with significantly more days of thunderstorm.
4G services in Bangladesh.
Storms led to 2.8 times increased incidents of grid power
unavailability of more than 8 hours. There were 24% higher
l Grameenphone acquired 2x5MHz 4G licence in the
commercial power outages in Grameenphone sites.
1800MHz frequency band, along with technology
neutrality, for its remaining spectrum holdings on 13 lWe experienced an adverse effect on voice due to
February 2018. Ramadan and World Cup.
l With the aim to provide the best 4G experience, l The industry continued to remain very competitive;
Grameenphone offered 4G SIM replacement with 1.5 GB however, Grameenphone was able to acquire quality
free data, along with free replacement for high value subscribers amid the competition, improving annualised
customers with the help of reinforced market machineries churn rates to 13.3%.
for faster replacement of 4G SIMs.
l The regulator adjusted the Pay Per Use limit to BDT 5
l 2 co-branded 4G smartphones were launched, offering from BDT 200, adversely affecting our data revenue.
the most affordable 4G handsets in the market. We introduced one of our CMP (Contextual Marketing
Platform) offers, providing high volume data with low
l We rolled out 691 sites by March focusing on seamless validity, such as 1GB for 12 Hours @ BDT 16, 2GB for 2 days
experience, bringing 43% of the total base under 4G @ BDT 42 and 6GB for 7 days @ BDT 199. We witnessed a
coverage. Modernisation & LTE launch started, reducing 7% growth in daily data users.
power consumption, enhancing capability for coverage l Due to aggressive competition, we saw APPMB (Average
expansion both in rural and urban areas.
Price Per Mega Byte) erosion quarter over quarter of 15.1%.
l Revised startup offer with 0.5 paisa on-net and 1 paisa l In this quarter, we rolled out over 3,000 4G sites along
off-net, strengthening voice proposition 1.5 GB offer at
with network modernisation of single RAN (Radio Access
BDT 104.
Network). We observed a 27% growth in data volume post
migration to 4G, along with an improvement on average
l Simplified and digitised all customer facing processes
data active days. We simultaneously reinforced our
to create value, with focus on self-service transformation
market machineries for faster replacement of 4G SIMs.
to increase uptake and reduce call center volume.
l We enriched our single self-care digital channel
for customers, MyGP, and provided access to all
Grameenphone services, offers, bonus and rewards.
16
We provided cross channel promotion of Bioscope

and WowBox, and also introduced contextual product
offering. This led to contribution in revenue and savings.
Grameenphone Ltd.
Annual Report 2018
Quarterly Business Highlights 2018

July August September October November December

Q3 Q4
l This was a challenging quarter in terms of competition

aggression and the number of regulatory directives
implemented.
l Some of the most notable regulatory directives l The regulator awarded tower sharing licence to four
implemented were the reduction of VAT on data, lowered firms, edotco, Summit, ISON and AB High Tech. The
from 15% to 5%. The regulator also unified floor tariff for companies were allowed till 20 October 2018 to form
on-net and off-net voice calls to BDT 0.45 per minute and their companies.
ceiling tariff set to BDT 2 per minute. Terminating operator
will get BDT 0.1 per minute and ICX (Inter Connection l We put extensive drive on hero voice product 350 min
Exchange) operator will continue to get BDT 0.04 per
@ BDT 199, and data product of 2GB @ BDT 38, leading
minute.
to a boost in revenue for the quarter. We revised our daily
and weekly packs to monthly packs in order to upgrade
l The introduction of the unified tariff led to aggressive
competition on data prices, contributed to significant customers.
growth in voice revenue along with growth in APPM
(Average Price Per Minute). l With continued network modernisation, we reached
over 5,000 4G sites at the end of the year, covering 54.6%
l We revised our voice portfolio to engage our customers, of our sub-base under 4G. 20% of our daily traffic is now
launching 135 Mins, 7 Days @ BDT 78 and 200 mins, 10 carried over the 4G network. In the quarter we rolled out
days @ BDT 113. We also launched a scratch card of 15 429 new 4G, 497 new 3G and 404 new 2G sites. At the
Mins, 12 Hours @ BDT 9, which received very positive
end of the year we reached 14,521 2G sites and 14,687 3G
response from the market.
sites.
l Grameenphone focused on system and process readiness
for MNP as well as staff training while the industry as a l We added 0.7 million new data subscribers in the
whole also geared up for MNP (Mobile Number Portability) quarter, amounting to 37.1 million data customers, 51% of
implementation from 01 October 2018. our total sub-base.
l During this quarter Grameenphone added 2.2 million l On 13 October 2018, Grameenphone launched its new
subscribers and reached 3.8 million 4G subscribers. number series, 013. Proving to be very popular in the
market, we acquired 2.9 million subscribers by the end of
l There was fierce competition in this quarter causing
the year.
APPMB erosion of 10.8% from the previous quarter,
despite growth in data revenue.
l We experienced an early winter effect in November.
l We reached 4 million unique 4G subscribers this With focus on basics and quality of execution, we
quarter, witnessing growth in 4G volume from conversion, were able to continue acquiring quality subscribers by
along with growth in 3G volume as well. We also increased providing lucrative offers to our retailers with a renewed
the number of replacement points and renewed our drive drive on 4G. We reached 6.3 million 4G SIM replacements
on 4G SIM replacement. at the end of the year.
17
l This quarter we witnessed the highest ever data revenue

of one day of BDT 112 million, observed on the day of Eid-
Grameenphone Ltd.
ul-Adha.
Annual Report 2018
Quarterly Business Highlights 2018

MESSAGE FROM
THE CHAIR AND THE CEO
Chief Executive Officer Chair

Michael Patrick Foley Petter Boerre Furberg
Dear Shareholders,
Despite the highly competitive, fast-paced and challenging market environment, Grameenphone has delivered another record
year of sound financial and operational performance and has sustained its subscriber base market leadership. We launched 4G
in Bangladesh in February 2018 followed by a rapid expansion of our coverage, ushering in a new era of digitalisation and the
promise of high-speed internet for our customers.
Grameenphone demonstrated commendable growth during the year driving strategic priorities with speed and agility. The
Company reported total revenue of BDT 132.8 billion for 2018, registering an annual growth of 3.4%. Data revenue grew by 21%
and voice revenue by 6.6%. As a result of the strong revenue performance and alongside operating cost efficiencies, operating
profit for the year 2018 increased by BDT 7.4 billion from last year. Profit before tax for 2018 also increased by BDT 8.3 billion from
last year, mainly due to higher EBITDA and lower foreign exchange loss, partly offset by higher tax and finance expenses.
18
Net profit margin for 2018 grew significantly to reach 26.5% compared to 21.4% last year. Net Profit After Tax in 2018 grew by
28.2% resulting from higher revenue and significant savings in operating expenses of BDT 3.0 billion. This resulted in higher
Grameenphone Ltd.
Annual Report 2018
Earnings Per Share (EPS) for the year 2018, which stood at BDT 26.04 compared to BDT 20.31 in 2017.
Message from the Chair and the CEO

Grameenphone recorded a healthy growth of its subscriber base and correspondingly of reported usage. The Company acquired
7.4 million new subscribers, an 11.3% YoY growth. Adding 5.9 million internet subscribers to its network, Grameenphone closed
the year with 37.1 million internet subscribers, which is 19.0% higher than that of the previous year. 51.0% of our total subscribers
are using internet services on the fastest internet network in the country.
One of the most important foundations upon which we deliver services to our customers is our network. In 2018, Grameenphone
made significant investment in new 4G technology, spectrum acquisition and network capacity building. The Company invested
BDT 34.0 billion to rollout more than five thousand 4G LTE sites, to expand 2G and 3G coverage, to effect capacity enhancement,
as well as to build higher IT readiness. In total the Company has invested BDT 347.4 billion in Bangladesh since inception. As one of
the largest contributors, Grameenphone contributed BDT 84.2 billion to the national exchequer in 2018 which represents about
63.4% of Grameenphone’s total revenue for the year. By the end of 2018, the total contribution to the state by Grameenphone
since inception reached BDT 669.5 billion.
To achieve high levels of customer satisfaction, Grameenphone has continuously enhanced its product portfolio, including digital
products and services, where innovation, relevance and simplicity are the cornerstones. We continued enhancing our digital self-
care apps portfolio. MyGP, the online self-care app, is the first app in the industry where users can design their own core product.
In 2018, a large number of regulatory directives were implemented, the most notable being the unified tariff for on and off net
calling, Mobile Number Portability (MNP) and reduction of VAT on data from 15% to 5%.
The nature of our business puts us in the heart of the digital revolution that is transforming enterprises and the daily lives of
our people. Focusing on innovation and collaboration, Grameenphone has been contributing to build and support a digital
ecosystems enabling the country to remain relevant in the digital world.
We believe that incredible things will happen when the power of our people is unleashed by fueling their aspirations with
corresponding opportunities. Keeping this in mind, the Company has been working closely with the local community of developers,
innovators and startups via the outside-in platform called GP Accelerator and inside-out window known as Whiteboard.
Grameenphone has also partnered with different stakeholders to reduce the price of internet-enabled devices and introduce
digital services.
Grameenphone’s journey to simplify digitalisation initiatives and offer relevant products and services has driven healthy financial
performance, which ultimately finds positively impacts shareholder returns. We are happy to announce that the Board of Directors
of Grameenphone Ltd. has recommended final dividend for the year 2018 in cash at the rate of 155% of the paid-up capital (i.e.
BDT 15.5 per share of BDT 10 each). With this, the total cash dividend stands at 280% of paid up capital, which represents 108%
of Profit After Tax for the year 2018 (including 125% interim cash dividend).
Grameenphone aims to bring together the realms of advanced digital connectivity and stay relevant to deliver a revolutionary
suite of products and services, which will in turn expand the scope for digitalisation in Bangladesh. We will continue to echo
responsible leadership behind every aspect of our strategies, commit to delivering superior network performance, and provide a
world-class customer experience. With the growth potential of the market and our focus on operational efficiency, simplification,
and driving value for our customers, we are optimistic in delivering profitable growth going forward.
There are many regulatory initiatives of significance currently in the discussion phase for implementation during 2019. Some
initiatives of note are the anticipated regulations on SMP (Significant Market Power), Tower Sharing Licencing, and Quality of
Service (QoS). We would like to reiterate our commitment to meaningful consultations between industry and government that
can enrich the industry service propositions further, which in-effect will facilitate the current economic growth momentum of the
country.
Finally, we would like to extend our appreciation to our Board for their continued guidance and active engagement, the
Government, regulators and shareholders for their co-operation and facilitation. We are humbled by the trust that our Customers
have placed on our network and services. We are always committed to maintaining high standards and delivering the best for our
Customers. We also extend our sincere thanks to our Management Team and our employees for their hard work and commitment.
We sincerely look forward to welcoming you at our 22nd Annual General Meeting (AGM).
27 January 2019
19
Grameenphone Ltd.
Annual Report 2018
Message from the Chair and the CEO

Sustainability
SUSTAINABILITY AND PARTNERSHIP TO

REDUCE INEQUALITIES
Empowering societies by connecting them to what matters most has always been
at the heart of what we do. Since its inception in 1997, Grameenphone has always
been upholding high ethical standards in its business while delivering on its social We are committed to UN
obligations. We are committed to UN Sustainable Development Goals (SDGs), with Sustainable Development
specific focus on Goal#10 – Reducing Inequalities. We want to enable societies to Goals (SDGs), with specific
unlock, and experience the benefits of the digital revolution and achieve their fullest focus on Goal#10 –
potential with connectivity. The sustainability agenda for Grameenphone is clearly Reducing Inequalities. We
defined by global directions, design digital solutions to empower society at large, want to enable societies
mitigate business risks and anchor our agenda within the framework of SDG#10. to unlock, and experience
Within that framework Grameenphone’s commitment to the society is to partner with the benefits of the digital
responsible and impactful social partners to reduce inequality and empower society revolution and achieve
within the field of expertise. Grameenphone is equally committed to maintaining their fullest potential with
responsible business practices throughout its entire supply chain, ensuring that its connectivity.
partners maintain the same standards.
Partnering to Promote Safer Digital Participation and Create Access to Quality Education
In line with Grameenphone’s Sustainability strategy, we aim to create opportunities for meaningful and safe digital
participation for everyone. At the core of that ambition lies the access to quality education, regardless of
gender, location and socio-economic background. The Child Online Safety initiative is all about
creating safe learning opportunities while simultaneously addressing both economic and
gender inequality. As the largest ISP in Bangladesh, we are working on creating a safer
online space to support the development of society and reduce inequalities. This
enables students from all communities to compete on a level playing field
with their counterparts in the urban areas as well as across the
world.
In 2018, our partnership with UNICEF, the globally

recognised child rights organisation and Telenor Group,
emerged as the biggest collaboration in Bangladesh in
the private development sector. The unique partnership
allowed us to reach more than 400,000 students and
sensitise 70,000 parents, guardians and teachers about
online safety. Additionally, the Child Helpline 1098 has been
expanded to work in parallel with the program to provide
support on Child Online Safety issues. To further strengthen our
commitment to this cause, our social advocacy campaign created
mass awareness on social media around safety and precaution
measures for children while using the internet. This campaign
reached more than 10 million people on social media.
2018 culminated with a panel discussion on Child Online Safety with

leading educationalists and public sector specialists to initiate more
dialogue around this critically important issue and to explore national
level safety measures. Grameenphone actively seeks opportunities where
technology can contribute to achieve the targets set for the country.
Supply Chain Sustainability

Grameenphone is vigilant about ensuring responsible business conduct across the entire Supply Chain. Grameenphone’s
20
Supplier Conduct Principles (SCP) are based on internationally recognised standards around human rights, health and safety,
labour rights, environment and anti-corruption. It is mandatory for all Grameenphone contracting parties to agree to these
principles. All suppliers and parties with a direct contractual relationship with Grameenphone must comply with our Supplier
Grameenphone Ltd.
Annual Report 2018
Sustainability and Partnership to Reduce Inequalities

Conduct Principles (SCP). An Agreement on Responsible Business Conduct (ABC) legally obliges the supplier to comply with the
SCP and certain requirements set out in the ABC agreement. All suppliers are required to extend the principles and cascade them
down in their own supply chain. Currently, 100% suppliers and partners have endorsed the agreement on responsible business
conduct.
Grameenphone conducts annual supply chain capacity building through on-site briefings, awareness sessions, workshops,
forums, process support, online portals and resource guides to ensure our suppliers and sub-suppliers follow the same continuous
improvement process. Capacity building is customised and caters to realistic practical situations and the actual need of the
suppliers, with a particular focus on awareness of Grameenphone Supplier Conduct Principles issues as well as specific activities
related to skill development (e.g. tower climbing). Topics generally include labour rights, health and safety, anti-corruption,
green initiatives, women empowerment and diversity. In 2018, Grameenphone conducted a total of 6,139 man-hours of supply
chain capacity building to promote responsible business practices at work.
To monitor compliance with the requirements on responsible business conduct, Grameenphone carries out
regular inspections and audits across its supply chain. In 2018, Grameenphone conducted 905 supply
chain inspections of which 90% were unannounced.
Going forward, inspections, audits, capacity building and long-term risk reduction
will remain a priority in Grameenphone’s responsible supply chain agenda.
Furthermore, Grameenphone will strive towards long-term risk reduction
through continually reinforcing the importance of supply chain
improvement.
Supporting the Book Reading Program

Grameenphone is committed to supporting SDG#10
by leveraging its connectivity to reduce inequalities
through scalable and sustainable initiatives. “Alor
Pathshala” (School of Enlightenment: www.alorpathshala.
org) is the first online book reading program launched by
Bishwo Shahitto Kendro (BSK) and Grameenphone, on 19
March 2014. Alor Pathsala enables students to enjoy local and
international classics. By the end of 2018, the site had more
than 1.5 million downloads and more than 1.3 million visitors.
Grameenphone has also supported the Book Reading Program
and recognised 19,647 voracious readers out of 185,678 students
from 1,453 schools.
Support for Distressed People

Grameenphone extended its support to victims during the cold wave in
January 2018 which impacted around 10,000 people in the northern and
southern districts of the country.
Bangladesh CSR Leadership Awards 2018

Grameenphone was awarded for “Innovation in Corporate Social Responsibility Practices” at the Bangladesh CSR Leadership
Awards 2018. We were recognised for our innovative approach in designing and deploying sustainability initiatives for the
community. The CSR Leadership Awards recognise corporate entities and individuals that have made a significant and positive
impact on the lives of people around them, through their involvement in corporate social responsibility programs that respect
communities, the environment and people. All of our sustainability projects such as the Child Online Safety and Supply Chain
Sustainability initiatives are based on a successful marriage between technology and innovation.
21
Grameenphone Ltd.
Annual Report 2018
Sustainability and Partnership to Reduce Inequalities

Sustainability
CLIMATE CHANGE
MOVING TOWARDS GREEN E
n Aw mplo
tio are yee
uc ne
Re d ss
CO 2
Grameenphone being a responsible corporate entity,
EXTERNAL
INTERNAL
CSR (Adaptation)
Green Company
is committed to a long-term sustainable approach Corporate
Climate
to caring for and safeguarding the environment Initiatives
and climate impact. In order to safeguard the MEASURES ss
environment, the Company conducts its business acy
Internal optimisation and ne
usi
voc

B
modernisation in network, en Ad
in such a way so as to prevent pollution and to IT and offices
Gre
Aggressive rollout of solar sites
minimise the adverse impact of its activities on the

 E-waste management
environment. Grameenphone continually improves  Employee awareness
its performance against targets associated with its

environmental aspects to comply with all applicable
environmental legislations. GOALS
MANAGEMENT  Reduce 30% CO2
intensity by 2017
In line with its sustainability journey, Grameenphone CONTROLS  Green Company
Environment
has taken a number of initiatives to reduce its carbon

Management
footprint through individual and collective efforts. System (EMS)
 Green champions
All the initiatives ensure CO2 reduction through  Business reviews
energy efficiency, increased use of solar energy over
fossil fuel, limiting the use of valuable resources,
reducing travel requirement for operations, as
well as creating greater environmental awareness
among employees and stakeholders.
5.5%
Total Energy Consumption
398.81
Others
GWh 4%
35.1%
2017 Vs 2018
377.98
GWh
Office Building
12%
Area wise
34,217
5,009
18 14,521 14,687
energy
17 18 consumption
in 2018 Networks
84%
Network Growth
1.9%
25,326
2018 vs 2017
17 12,994 12,332  Networks  Office Building  Others
 2G  3G  4G  Total 185,662
Total CO2 Emission
182,234 Tons
2017 Vs 2018
Tons
17 18
22
Grameenphone Ltd.
Annual Report 2018
Climate Change - Moving Towards Green

As a continuation of this environmental roadmap, in the year 2018, Grameenphone took the major initiatives listed below:
Green Initiatives
Electricity Generated From Solar Sites
Hybrid BTS
In 2018, Grameenphone has converted 70 Generator+Solar 18 7.43 GWh
to Commercial Power+Solar Hybrid Sites. The newly
introduced hybrid sites will provide additional savings of
280,000 litres of fuel which is around 378 tons of CO2
reduction per year. 17 6.74 GWh
E-waste Recycling
As of 31 December, 2018, more than 467 tons of e-waste
(GSM and microwave antennas and other electronic
accessories) has been recycled through our recycle
partner. The recycling is completed in Bangladesh and
abroad in accordance with ISO 14000, OSHAS 18000, and
R2 standards.
Battery Reuse & Recycling

Recycling and reuse of 100% used lead acid batteries has
been set as our internal KPI. So far we have recycled more
than 24,000 nos. of old batteries in 2018.
Sustainability is an integral part of our business strategy and we have embedded it into all our business processes. Our
Environmental Management System (EMS) policy was documented, implemented and communicated to all employees in 2010.
Since 2008, successful initiatives have helped Grameenphone reduce carbon intensity and consumption of valuable resources,
such as fuel, paper, and electricity.
23
Grameenphone Ltd.
Annual Report 2018
Climate Change - Moving Towards Green

ENJOY
MORE
The joy and freedom of doing what
you like, especially with your loved
ones is priceless. Grameenphone’s
entertainment services help make
the good times great.
HUMAN RESOURCES
MANAGEMENT
Grameenphone is not only the leader of the telecom industry, but also one of the most attractive
employers in the country. We develop and promote our employees, motivate talented youth and
attract experienced professionals. Achieving our strategic objectives and maintaining our growth
is closely related to creating an engaging work environment. In 2018, we have introduced several
new features and launched new products under digital HR portfolio.
Gamified Recruitment
Moving beyond conventional assessment tools, Grameenphone launched Talent Games, which tests candidates’ cognitive
abilities and leadership competencies through a gameplay of real-life business situations. Based on demonstrated behaviour
and aptitude during the game, a complete profile of the candidate is formed through Artificial Intelligence, which helps the
recruiters take more informed decisions to select the right candidate.
Telenor Youth Forum

Telenor Youth Forum is an initiative by Telenor in association
with the Nobel Peace Center to empower the youth to solve
problems of the society using technology. Grameenphone
provides the opportunity to bright minds of the country to
showcase their talent on a global platform. Workshops on
digital skills, presenting solutions and career grooming are
held in universities around the country followed by mentorship
and specialised workshops for the candidates shortlisted from
around 2,000 applications each year. In 2018, 2 winners BANGLADESH 2018
represented Bangladesh in the Global Rounds.
Next Business Leaders (NBL) program

The 6th batch of Next Business Leaders joined Grameenphone in 2018 after rigorous assessments where the top 16 were selected
from over 6,000 applicants. The management trainee program provides a fast-track career platform for fresh graduates where
they receive development interventions, mentorship and a 10-month rotational training from the very beginning that sets the
foundation to build them into leaders of the future.
Digital Ninja
In 2018, Grameenphone launched Digital Ninja which is a platform for
coders and developers to get involved with Grameenphone. It is based
on the principle of reducing the time and removing the barriers to
employment of resources in the corporate sector, particularly for those
with technical skillsets.
By creating a pre-assessed pool and completing several rounds of screening online, Digital Ninja aims at making the opportunities
accessible to a wider range of talents across Bangladesh. As the nature of employment is flexible, the incumbents can work on
multiple projects simultaneously. This leads to greater income prospects, reducing the need to look for freelancing opportunities
out of the country.
Digital Onboarding
Grameenphone believes that a strong employee experience begins from the very first day at work. New joiners take part in
exciting and interactive online inductions, market visits and interactions with the leadership team. There is a dedicated digital
25
platform where employees can access lessons, policies, information and reach out for queries.
Grameenphone Ltd.
Annual Report 2018
Human Resources Management

Sustainability
Learning and Development

At Grameenphone, we believe that an integral part of staying relevant in the 4th Industrial Revolution is making learning an
intrinsic way of work. 40 hours a year are dedicated for learning for every employee across all levels. The company sponsors
online courses from renowned platforms such as Coursera, Lynda and Udacity. Specialised certificate courses are designed in
partnership with INSEAD and foreign trainers. Grameenphone also hosts 'Learning Weeks' where veteran industry experts train
employees on practical application of latest concepts and technologies.
Digital Employee Experiences

As part of Digital Employee Experiences in Grameenphone,
over 15 employee services are offered through self-service
in an app called ‘OneGP’. Design-thinking and agile
methodology being its core way of work, this app removes
dependencies on multiple systems and has digitised
processes of Approval Management, Utility Services,
Business Trip, Health, Safety & Security and many more.
Going one step further, in early 2019, Grameenphone
launched an HR Bot as a one-stop solution for personal
queries on company policies, benefits and HR services,
allowing smoother employee experiences while maintaining
privacy, and optimising operational workload management.
Agile Workforce and Winning Teams

To match the dynamic market scenario, agility in way of
work continues to be a core focus for Grameenphone. The
aim is to encourage rapid experimentation with the right
collaborative measures. The framework supports matching
people's expertise with project requirements allowing faster
decision making and reduced time-to-market.
Grameenphone also fosters a culture that allows individuals

to bring along new ideas and perspectives and collaborate to
provide the best solutions for customers. From recruitment
to reward and performance management, the 4 behaviours
of Telenor- Be Respectful, Keep Promises, Create Together
and Always Explore- guide every action and decision in the
Company.
Safety and Security

Grameenphone focuses on continuous improvement of
health, safety and security to establish a safe and healthy work environment. Special emphasis is given on designing every
establishment and plant through adequate placement of safe, healthy & secure systems and procedures. With the ambition of
leading the industry in terms of Health, Safety & Security (HS&S), Grameenphone has aimed to be certified on ISO 45001:2018.
In the year 2018, extensive focus has been given to road traffic safety through training and awareness, proactive and reactive
monitoring and e-communication. Safety rules have been incorporated in policy and manual to reinforce road traffic safety.
The gym and recreation facilities aim at ensuring employee wellness and healthy work-life balance. Training on emergency
preparedness and evacuation drills are conducted at all circles. Risk mapping and assessment, vehicle inspections, background
verification for recruitment, hazard reporting and mitigation are some of the regular measures taken to uphold HS&S culture.
26
Grameenphone Ltd.
Annual Report 2018
Human Resources Management

Gender Diversity
Grameenphone is committed to attracting and developing more women leaders and experts across the company because we
believe that increased gender equality is a competitive advantage and creates shareholder value. There is a focused Gender
Diversity project with active and regular involvement from the senior management team that is playing the role to sensitise the
culture and strengthen the female pipeline, and to create a support system that builds women up for success.
The broad horizon of initiatives can be distilled into three distinct areas; Leadership Pipeline, Improvements in Culture and Building
Women for Success. In 2018, Grameenphone saw increased female representation in Higher Management roles, focused on
training initiatives, steps to prevent female attrition and focused on retention plan of critical resources. To tackle gaps in culture,
the business impact of diversity have been established in Grameenphone along with the introduction of a Leaders’ Toolkit that
the leaders can use to become more supportive.
In 2018, further work was also done to support Maternity leave period and mitigate crucial areas of distress during rejoining.
Alongside health insurance benefits, the scope of in-house day care facilities were also enhanced this year. To sensitise and
improve the overall working environment, a tailor made e-learning module ‘A Better Workplace of Everyone’ highlighting the
challenges women face in the workplace and how it can be solved was introduced for all Grameenphone employees.
27
Grameenphone Ltd.
Annual Report 2018
Human Resource Management

Governance
THE
SHAREHOLDERS
The shareholding structure comprises of mainly two sponsor shareholders, namely, Telenor Mobile Communications AS (55.80%)
and Grameen Telecom (34.20%). The rest 10.00% shareholding includes General Public (2.13%), Foreign (3.64%) and other
institutions (4.23%), as on 31 December 2018.
55.8% Telenor Mobile

Communications AS
34.2% Grameen Telecom
10% General Public &

Other Institutions
Telenor Mobile Communications AS (TMC)

TMC is an indirectly wholly-owned subsidiary of Telenor ASA. Telenor ASA is the leading Telecommunications Company of Norway
listed on the Oslo Stock Exchange. TMC owns 55.80% shares of Grameenphone Ltd. Telenor was founded in 1855 and builds on
over a 160 years of telecom experience from Norway. Through international expansion, today Telenor has mobile operations with
solid market positions in Scandinavia and Asia. Telenor had, as of 31 December 2018, 174 million mobile subscribers across its
footprint, as well as 2 million fixed broadband and 2 million TV customers in Scandinavia. In addition to Norway and Bangladesh,
Telenor owns mobile telephony companies in Sweden, Denmark, Thailand, Malaysia, Pakistan and Myanmar. Telenor uses the
expertise it has gained at its home and international markets for the development of emerging markets like Bangladesh.
As part of the conversion of Grameenphone from a private limited to a public limited company, Telenor Mobile Communications
AS transferred ten (10) shares each on 31 May 2007 to its three (3) affiliate organisations, namely Nye Telenor Mobile
Communications II AS, Norway; Telenor Asia Pte. Ltd., Singapore; and Nye Telenor Mobile Communications III AS, Norway.
Grameen Telecom (GTC)

Grameen Telecom, which owns 34.20% of the shares of Grameenphone Ltd., is a not-for-profit company in Bangladesh
established by Professor Muhammad Yunus, winner of the Nobel Peace Prize 2006.
GTC’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 the poor rural women, with access to modern information
and communication-based technologies.
28
Grameen Telecom, with its field network, administers the Village Phone Program, through which Grameenphone provides its
Grameenphone Ltd.
Annual Report 2018
services to the fast growing rural customers. Grameen Telecom trains the operators and handles all service-related issues.
The Shareholders
GTC has been acclaimed for its innovative Village Phone Program. GTC and its Chairman, Nobel Peace Prize laureate, Professor
Muhammad Yunus, have received several awards which include; First ITU World information Society Award in 2005; Petersburg
Prize for Use of the IT to improve Poor People’s Lives” in 2004; GSM Association Award for “GSM in Community Service” in 2000.
As part of the conversion of Grameenphone from a private limited to a public limited company, Grameen Telecom transferred one
(1) share each on 31 May 2007 to Grameen Kalyan and Grameen Shakti.
Top Twenty Shareholders as on 31 December 2018

Number of Ordinary
Sl. No. Name of Shareholders Percentage
Shares Held
1 Telenor Mobile Communications AS 753,407,724 55.80%
2 Grameen Telecom 461,766,409 34.20%
3 BBH A/C Matthews Asia Dividend Fund 16,109,639 1.19%
4 Grameen Bank Borrower's Investment Trust 11,037,221 0.82%
5 Government of Norway 8,637,674 0.64%
6 A K Khan & Company Ltd. 8,297,250 0.61%
7 ICB Unit Fund 4,895,493 0.36%
8 Investment Corporation of Bangladesh 3,663,322 0.27%
9 BBH A/C Japan Trustee Services Bank Ltd. as Trustee of SMTB Global 2,412,090 0.18%
Impact Mother Fund
10 Mellor Bank N.A. A/c Acadian Frontier Markets Equity Fund 1,748,370 0.13%
11 1st Bangladesh Fixed Income Fund 1,405,634 0.10%
12 Grameen One : Scheme Two 1,400,000 0.10%
13 Delta Life Insurance Co. Ltd. 1,281,781 0.09%
14 IDLC Investments Ltd. - Omnibus 1,262,632 0.09%
15 BBH (Lux) S.A. A/c Matthews Asia Funds- Asia Dividend Fund 1,237,373 0.09%
16 SSBT A/c Wellington Management Funds (Ireland) Public Limited 1,185,010 0.09%
Company- Wellington Global Impact Fund
17 JPMCB NA for JPM Lux A/C Schroder International Selection Fund 1,045,792 0.08%
18 Bangladesh Fund 1,037,500 0.08%
19 The Bank of New York Millon AF Pension Reserves Investment Trust Fund 923,521 0.07%
20 Pubali Bank Limited 915,075 0.07%
Total 1,283,669,510 95.06%
29
Grameenphone Ltd.
Annual Report 2018
The Shareholders
Governance
ORGANISATIONAL
STRUCTURE
BOARD
OF
DIRECTORS
Michael Patrick Foley S M Imdadul Haque

Chief Executive Officer Company Secretary
Yasir Azman
Rade Kovacevic
Deputy CEO &
Chief Technology Officer
Chief Marketing Officer
Karl Erik Broten Syed Tanvir Husain

Chief Financial Officer Chief Human Resources Officer
Kazi Mahboob Hassan

Ole Bjorn Sjulstad
Chief Strategy &
Chief Corporate Affairs Officer
Transformation Officer
Mahmud Hossain
Chief Business Officer
30
Grameenphone Ltd.
Annual Report 2018
* The information in this section is as on 30 January 2019
Organisational Structure
BOARD OF Our business is led by our Board of Directors
(‘the Board’). They bring years of experience
DIRECTORS with them. Their breadth of knowledge
guides our decisions and actions.
STANDING SITTING
From right to left From left to right
Parveen Mahmud Dr. Salehuddin Ahmed

Non-Executive Director Independent Director
Haakon Bruaset Kjoel Witold Sitek
Non-Executive Director Non-Executive Director
Petter Boerre Furberg M Shahjahan
Non-Executive Director and Chair Non-Executive Director
Gunnar Johan Bertelsen Md. Ashraful Hassan
Non-Executive Director Non-Executive Director
Prof. (Dr.) Jamilur Reza Choudhury Oivind Burdal
Independent Director Non-Executive Director
31
Grameenphone Ltd.
Annual Report 2018
Board of Director
Governance
DIRECTORS’
PROFILE Mr. Petter Boerre Furberg was appointed to the Board on 26 May 2017
and he is also the Chair of Grameenphone Board. Mr. Furberg is Executive
Vice President and Head of Emerging Asia Cluster, Telenor Group. He also
served as interim Chief Executive Officer (CEO) of Grameenphone during
November 2016 to May 2017. Before joining Grameenphone as the interim
CEO, he was the Senior Vice President Telenor Digital Businesses, based in
Bangkok. Prior to that, Mr. Furberg served as CEO of Telenor Myanmar for
three years. Since joining Telenor in 1998, he has held a number of executive
positions, including Chief Financial Officer and Chief Marketing Officer of
dtac, Thailand, and Head of Financial Services at Telenor Group. Mr. Furberg
holds a degree in Economics and Business Administration based on a four
year program from the Norwegian School of Economics and is a Certified
Petter Boerre Furberg European Financial Analyst (AFA/CEFA).
Non-Executive Chair
Date of Appointment | Nationality
26 May 2017 Norwegian
Committee Membership
None
Mr. M Shahjahan was appointed to the Board on 26 June 2006 and he is

also Chair of the Company’s Treasury Committee. He is the former Managing
Director of Grameen Bank. He acted as the Managing Director of Grameen
Bank from 14 August 2011 to 30 October 2014. Now, he is on retirement.
Earlier, he served as the Deputy Managing Director, the General Manager
and Head of the Accounts, Finance, Planning, Monitoring and Evaluation
Division, the Chief of the Audit Department, and the Zonal Manager of M Shahjahan
Grameen Bank. Mr. Shahjahan is a member of the Board of Directors of
several companies that work in the fields of health, education, agriculture, Non-Executive Director
welfare, renewable energy and telecommunications. He obtained a Bachelor Date of Appointment | Last Re-elected
of Commerce (Honours) degree in Accounting from the University of Dhaka 26 June 2006 19 April 2018
in 1976, as well as a Master’s degree in Accounting in 1977 and a Master’s Nationality Committee Membership
degree in Finance in 1981. He was awarded ICAB Medal (Silver) for passing Bangladeshi Audit Committee, Treasury Committee
the ‘C.A. Intermediate’ examination at the earliest eligible chance in 1981. HSSE Committee
Mr. Md. Ashraful Hassan was appointed to the Board on 20 January 2010.
He currently serves as Managing Director of Grameen Telecom and is
engaged in promoting and providing easy access to GSM cellular services
in rural Bangladesh. He also serves as Managing Director of Grameen
Distribution Ltd. and Grameen Shamogree. He has a profound knowledge
in sales channels and product sourcing. He keeps his own signature tune
in Grameen Distribution with a broad experience in the concept of business
development and supply chain management. He has extensive and
diversified knowledge in various industrial sectors, especially in the field
of textile focusing on resource efficient, and energy saving production.
He has wide exposure in industrial management, local & export market,
labour management, developing rural artists & artisan goods and so on. Mr.
Ashraf also acquired wide range of experience for different kinds of project
development and industrial setup. He has an extensive knowledge in the
field of construction engineering. He started his career in Grameen Bank in
1984. During his 15 year tenure with the Bank, he held various key positions,
Md. Ashraful Hassan including the Chief of Engineering section. He made notable contribution to
Non-Executive Director the infrastructural development of Grameen Bank. He serves as a member of
the Board of Directors of several enterprises that play commendable role in
32
Date of Appointment | Last Re-elected the fields of renewable energy, health care, food and nutrition, information
20 January 2010 20 April 2017 and communication technology, employment generation and so forth. He
Nationality Committee Membership holds Bachelor of Science degree in Engineering from Khulna University of
Grameenphone Ltd.
Annual Report 2018
Bangladeshi NRC Committee Engineering and Technology, Bangladesh.
Directors' Profile
Mr. Haakon Bruaset Kjoel was appointed to the Board on 14 September 2011.
He is Senior Vice President, Partner and External Relations Asia in Telenor
Group. Mr. Kjoel joined Telenor Group in 1995, beginning his career in the
domestic mobile operation in Norway. Since then, he has contributed to
Telenor Group’s growing international presence through his involvement in
Telenor’s international mobile operations where he played significant roles
in operational development, and merger and acquisition activities both in
Europe and Asia. For the last 18 years, he has been based in Asia, where
he has played a key role in the development of Telenor’s Group strategy
for Asia, and managing the Asia business environment including in the
areas of public affairs, government relations, strategic communications
and corporate responsibility. Mr Kjoel was Acting Executive Vice President
and Chief Corporate Affairs Officer for Telenor Group from July until October Haakon Bruaset Kjoel
2018, in addition to his global responsibility for the Telenor Group’s public Non-Executive Director
and regulatory affairs activities, a role he assumed in September 2016. He Date of Appointment | Last Re-elected
assumed his current role on 01 November 2018. Mr Kjoel holds a Master of 14 September 2011 19 April 2018
Business Administration degree (Executive) and studies in public relations Nationality Committee Membership
from BI Norwegian Business School in Oslo, Norway. Norwegian NRC Committee
Ms. Parveen Mahmud FCA was appointed to the Board on 17 October 2012.
Ms. Mahmud serves in various Boards, including as the Chairperson of Shasha
Denims Ltd., and MIDAS (Micro Industries Development Assistance and
Services). She was the Vice Chairperson, Underprivileged Children Education
Program (UCEP) and was the Chairperson of Acid Survivors Foundation. She is
Council member and Past President of the Institute of Chartered Accountants
of Bangladesh (ICAB). In her diversified professional career, Ms. Mahmud
worked in the development sector and was a practicing Chartered Accountant.
Ms. Mahmud started her career with BRAC, and was the Deputy Managing
Director of Palli Karma-Sahayak Foundation (PKSF). She was a partner of
ACNABIN, Chartered Accountants. She was the first female President of ICAB
for the year 2011 and also the first female Board member in the South Asian
Federation of Accountants (SAFA), the apex accounting professional body
Parveen Mahmud of the SAARC. She is the Chairperson, CA Female Forum, ICAB. She was the
member of National Advisory Panel for SME Development of Bangladesh and
Non-Executive Director
founding Board member of SME Foundation and Convener, SME Women’s
Date of Appointment | Last Re-elected
Forum. Ms. Mahmud is also a member of the International Chamber of
17 October 2012 19 April 2018
Commerce (ICC), Bangladesh. She is the Managing Director of Grameen
Nationality Committee Membership
Bangladeshi None Telecom Trust. She received “Women at Work -2017” Award from BASIS
and “Women of Inspiration Awards”-2017 from BOLD Bangladesh. She was
awarded Begum Rokeya Shining Personality Award 2006 for women empowerment by the Narikantha Foundation, Bangladesh.
Mr. Oivind Burdal was appointed to the Board on 18 May 2016. In 2004, he
joined the Legal Department of Telenor ASA where he has practiced and
held managerial positions in several areas. In August 2017, he was appointed
Vice President, Head of Legal in Telenor Asia (IHQ) Ltd. after having served
as Senior Vice President, Head of Legal in Telenor Myanmar Limited since
July 2015. After obtaining his law degree, in 1998, he joined Thommessen
Krefting Greve Lund, one of the major law firms in Norway, focusing on M&A
and TMT. Mr. Burdal obtained his Law degree (Cand. Jur.) from the University
of Oslo, Norway, his degree in Business Administration (Bedriftsokonom BI) Oivind Burdal
from BI Norwegian Business School Oslo, Norway and his masters’ degree Non-Executive Director
33
(LLM, Master of Corporate and Commercial Law) from London School of Date of Appointment | Nationality
Economics and Political Science in London, England. 18 May 2016 Norwegian
Grameenphone Ltd.
Annual Report 2018
Audit Committee
Directors' Profile
Governance
Prof. (Dr.) Jamilur Reza Choudhury was appointed to the Board on 15 June 2016
as an Independent Director and he is also Chair of the Company’s Nomination
and Remuneration Committee (NRC). He is one of the leading Engineers
and Academics in the country. He started his career in 1963 as a Lecturer in
Department of Civil Engineering at Bangladesh University of Engineering and
Technology (BUET) and was appointed as Professor in 1976. He was Head of
the Department (1978-79, 1981-83), Dean of the Faculty of Civil Engineering
at BUET (1983-85) and Director of Computer Centre at BUET (1982-92), the
largest computing facility in the country. He received his Ph.D. from University
of Southampton, UK, in 1968 and was awarded the Doctor of Engineering
(HonorisCausa) degree by University of Manchester, UK, in 2010. He has
been involved with planning, design and construction of some of the largest
Prof. (Dr.) Jamilur Reza Choudhury infrastructure projects in Bangladesh (ports, airports, buildings and bridges).
He was the President of Institution of Engineers, Bangladesh (1992-93). He
Independent Director was elected as Fellow of Institution of Civil Engineers, UK, in 1995. He was an
Date of Appointment | Nationality Adviser (Minister) to the Caretaker Government of Bangladesh in 1996 and
15 June 2016 Bangladeshi was in charge of the Ministry of Energy and Mineral Resources and Ministry
Committee Membership of Water Resources. He was Chairman of the Board of Bangladesh Shilpa
NRC Committee Bank (1996-98). He has headed a large number of Committees and Task
Forces formed by the Government to formulate ICT Policies and Plans (1997,
2001, 2007). He was the first Vice Chancellor of BRAC University (2001-10) and since 2012, he has been the Vice Chancellor of
University of Asia Pacific. The Government of Bangladesh appointed him as a National Professor in 2018.
Mr. Gunnar Johan Bertelsen was appointed to the Board on 11 June 2018.
Mr. Bertelsen is Vice President of Public and Regulatory Affairs Group
Asia, Telenor Group. Prior to that, Mr. Bertelsen served as CCAO of Telenor
Myanmar for five years. Since joining Telenor in 1997, he has held a number
of executive positions, including Managing Director Telenor Ireland Ltd, VP
Telenor Asia and Head of Regulatory dtac. Currently Board member of dtac,
Thailand and Thai Telco Holding, Thailand. Mr. Bertelsen holds a Master
Degree in Business Administration and A Dip Advanced Management from
University College Dublin Ireland.
Gunnar Johan Bertelsen

Non-Executive Director
11 June 2018 Norwegian
HSSE Committee
Dr. Salehuddin Ahmed was appointed to the Board on 12 December 2018 as an

Independent Director and he is also Chair of the Company’s Audit Committee.
He was appointed as the Governor of the Bangladesh Bank (Central Bank) on
May 2005, for a term of four years up to 30 April 2009. He started his career
as a lecturer in Economics at Dhaka University in 1970. Joining the erstwhile
Civil Service of Pakistan (CSP), he served in various capacities in the field of
administration of the Government of Bangladesh. He worked in the Centre on
Integrated Rural Development for Asia and the Pacific (CIRDAP), a regional
Independent Director inter-governmental organisation with its headquarters in Dhaka. Dr. Ahmed
Date of Appointment | Nationality was the Director General of Bangladesh Academy for Rural Development
12 December 2018 Bangladeshi (BARD), Cumilla and also Director General of the NGO Affairs Bureau of the
Committee Membership Office of the Prime Minister. During 1996-2005, Dr. Salehuddin Ahmed was
Audit Committee the Managing Director of Palli Karma Sahayak Foundation (PKSF), the apex
funding agency of micro credit operations in Bangladesh. He has authored several books, reports and journal articles which have
been published at home and abroad. He is on Governing Bodies of several Government and Non-Government agencies and
universities in Bangladesh. Dr. Ahmed was awarded Nawab Sir Salimullah Foundation Gold Medal for contributions in Economics
in 2006. He also received the Distinguished Alumni Award from McMaster University, Canada at the Convocation held in Hamilton,
34
Ontario, Canada in November 2006. Besides these, he was given several other awards by different bodies. Dr. Ahmed did his
Master Degrees in Economics from Dhaka University and McMaster University in 1969 and 1974 respectively and obtained his
Ph.D. in Economics from McMaster University, Canada in 1978. Presently, he is working as a Professor at BRAC Business School,
Grameenphone Ltd.
Annual Report 2018
BRAC University, Dhaka, Bangladesh.
Directors' Profile
Mr. Witold Sitek was appointed to the Board on 30 January 2018. Mr. Witold
Sitek joined Telenor in 2004. He is now Senior Vice President Customer
Strategy in Telenor ASA. Recently he has held positions in Telenor ASA as
SVP Transformation 2016-2018, SVP Technology Strategy 2014-2015, SVP
Technology 2011 - 2014 and CTO Nordic 2009 – 2010. He has been Board
Witold Sitek member in Telenor Norway, Telenor Sweden, Telenor Denmark, Telenor
Non-Executive Director Myanmar, Telenor Global Services and Telenor Shared Services, as well as
in Net4Mobility, a joint venture with Tele2 in Sweden. Before joining Telenor,
he was partner in Accenture within Communications and High Tech and
30 January 2018 Norwegian
responsible for Global Architecture and Core Technologies in Scandinavia.
He holds a Master of Science degree in Computer Science.
None
Companies (other than Grameenphone Ltd.) in which Grameenphone Directors hold directorship
and committee memberships:
Sl. No Name of Director Directorship Member of Board committees
1 Mr. Petter Boerre Furberg Total Access Communication PLC (’dtac’), Thailand Telenor Myanmar Limited,
Telenor Myanmar Limited, Myanmar Myanmar
Telenor Pakistan (Pvt.) Limited, Pakistan Audit Committee
Telenor Microfinance Bank Telenor Pakistan (Pvt.) Limited,
Telenor Health Pakistan
Digital Money Myanmar Ltd., Myanmar Audit Committee
2 Mr. M Shahjahan Grameen Telecom None
Grameen Shakti
Grameen Fund
Grameen Mothso O Poshu-Shampad Foundation
Grameen Kalyan
Grameen Fabrics & Fashions Ltd.
Grameen Credit Agricole Microfinance Foundation
Grameen Employment Services Limited (GES)
Grameen Knitwear Ltd.
Grameen Shikkha
Grameen Communications
Grameen Shakti Samajik Byabosa Ltd.
Grameen Shamogree
Grameen Capital Management
Grameen Healthcare Services
Grameen Solutions
Grameen Italia
Team Accessories Ltd.
Grameen Distribution
Samajik Health Science Institute and Research Center Limited
Grameen Krishi Foundation
Member of Board of Trustees
Nobel Laureate Trust
Grameen Telecom Trust
Grameen Healthcare Trust
3 Md. Ashraful Hassan Grameen Shakti None
Grameen Kalyan
Grameen Telecom
Grameen Solutions Ltd.
Grameen Distribution Ltd.
Grameen Veolia Water Ltd.
Grameen Danone Foods Ltd.
Grameen Fabrics and Fashions Ltd.
Grameen Health Care Services Ltd.
Grameen Employment Services Ltd.
35
Grameen Shakti Samajik Byabosa Ltd.

Samajik Health Science Institute and Research Center Limited
Member of Board of Trust
Grameenphone Ltd.
Annual Report 2018
Grameen Telecom Trust
Directors' Profile
Governance
Sl. No Name of Director Directorship Member of Board committees

4 Mr. Haakon Bruaset Kjoel Telenor Pakistan (Pvt.) Limited, Pakistan dtac, Thailand
Telenor Asia Pte Ltd., Singapore Nomination Committee
Telenor South Asia Investment Pte. Ltd., Singapore Remuneration Committee
Telenor South East Asia Investment Pte. Ltd., Corporate Governance
Singapore Committee
Digi.com, Berhad, Malaysia
Telenor GO Pte. Ltd., Singapore
Nomination Committee
Total Access Communication PLC (’dtac’), Thailand
Remuneration Committee
Telenor Asia (IHQ) Limited, Thailand Telenor Pakistan (Pvt.) Limited,
Telenor Myanmar Limited, Myanmar Pakistan
Digi Telecommunications Sdn Bhd, Malaysia Audit Committee
Digi.com Berhad, Malaysia Telenor Myanmar Limited,
Myanmar
Audit Committee
5 Ms. Parveen Mahmud Shasha Denims Ltd. Linde Bangladesh Ltd.
Shasha Textiles Ltd. Audit Committee
Shasha Spinning Ltd.
Shasha Apparels Ltd. BRAC International
Shasha Garments Ltd. Audit Committee
Shasha Millners & Textiles Ltd.
Saburo Indigo Ltd. BRAC
Linde Bangladesh Ltd. Audit Committee
MIDAS Financing Ltd. (MFL)
MIDAS
CAMPE
Palli Karma Sahayak Foundation (PKSF)
Audit Committee
BRAC (Association Member)
BRAC International
Manusher Jonno Foundation (MJF)
Campaign for Popular Education (CAMPE)
Rangpur Dinajpur Rural Services (RDRS)- Bangladesh
Ghashful
Grameen Danone Foods Ltd.
Grameen Krishi Foundation
Grameen Fisheries and Livestock Ltd.
Grameen Health Care Services Ltd.
Grameen Fabrics & Fashions Ltd.
Grameen Distribution Ltd.
Grameen Capital Management Ltd.
Grameen Shamogri Ltd.
Grameen Samajik Byabsha Ltd.
6 Mr. Oivind Burdal Telenor Pensjonskasse, Norway (Deputy Director) Telenor Myanmar Limited,
Telenor Pakistan Ltd., Pakistan Myanmar
Telenor Myanmar Ltd., Myanmar Audit Committee
Telenor Pakistan (Pvt.) Ltd.,

Pakistan
Audit Committee
7 Prof. (Dr.) Jamilur Reza Grameen Communications None
Choudhury
8 Mr. Gunnar Johan Total Access Communication PLC (’dtac’), Thailand Total Access Communication
Bertelsen Thai Telco Holding, Thailand PLC (’dtac’), Thailand
Remuneration Committee
Nomination Committee
36
9 Dr. Salehuddin Ahmed None None

10 Mr. Witold Sitek None None
Grameenphone Ltd.
Annual Report 2018
Directors' Profile
MANAGEMENT
TEAM
STANDING
SITTING
From right to left
From left to right
Ole Bjorn Sjulstad
Chief Corporate Affairs Officer Karl Erik Broten
Syed Tanvir Husain Chief Financial Officer
Chief Human Resources Officer Michael Patrick Foley
Mahmud Hossain Chief Executive Officer
Chief Business Officer Yasir Azman
Kazi Mahboob Hassan
37
Deputy CEO and Chief Marketing Officer

Chief Strategy and Transformation Officer
Rade Kovacevic
Grameenphone Ltd.
Annual Report 2018
Management Team
Governance
MANAGEMENT
TEAM PROFILE
Mr. Michael Patrick Foley was appointed as Chief Executive Officer (CEO)
effective from 26 May 2017. Before joining Grameenphone he was CEO of
Telenor Bulgaria. A Canadian by birth, he joined Telenor in 2014 as CEO
of Telenor Pakistan. He has more than 30 years of sales, marketing and
operational experience in the telecom, retail and gaming sectors from
both advanced and growth markets. He is a Graduate of McGill University in
Michael Patrick Foley Montreal with BA in Organisational Psychology.
Chief Executive Officer
Mr. Yasir Azman was appointed as Deputy Chief Executive Officer (DCEO)
effective from 26 May 2017. He also serves as Chief Marketing Officer (CMO)
from 15 June 2015. Mr. Azman is an experienced professional with vast
international experience in multiple countries and cultures. Before joining
as CMO Grameenphone, Mr. Azman served as Telenor Group’s Head of
Distribution & eBusiness and worked across all Telenor Operations. He has
also worked in Telenor India operations as EVP & Circle Business Head for
Orisssa and Karnataka circles during 2010-2012. In his previous tenure in
Grameenphone, Mr. Azman played a leading role to set up Grameenphone
sales and distribution organisation and to transform Grameenphone
distribution structure. As a CMO in Grameenphone, Azman has transformed
Grameenphone towards a high performing and a digital centric organisation.
Throughout his career, Mr. Azman has a proven track record as a leader of
transformation, change management and business development. He has an
MBA from Institute of Business Administration, Dhaka University, and also
attended several executive educational programs in the London Business
School and INSEAD, France. Yasir Azman
Deputy CEO & CMO
Mr. Karl Erik Broten was appointed as Chief Financial Officer (CFO) effective
from 01 September 2017. Prior to joining Grameenphone, he had served as
CFO of Telenor’s Malaysian operation Digi Telecommunication since May
2013. Earlier, he was CFO at Telenor Pakistan and Telenor Hungary (formerly,
Pannon GSM). With over 20 years of experience in Telenor Group, he has also
held leadership positions in Telenor Norway, Telenor Business Solutions and
in Telenor-owned operations in Russia, among others. Karl holds a degree
38
in Business Administration based on a four year program (Siviløkonom), and

major area of study in International Management from Agder University
Karl Erik Broten College, Norway.
Grameenphone Ltd.
Annual Report 2018
Chief Financial Officer
Management Team Profile

Mr. Syed Tanvir Husain was appointed as Chief Human Resources Officer
(CHRO) effective from 12 June 2018. His journey with Grameenphone started
as the Head of Leadership & People Development in mid-2013. He later went
on to lead the Center of Expertise and then Shared Services organisations
within People & Organisation Division. A pioneer in the Digitalisation of HR,
he is notable for building stronger stakeholder relationships and driving
agility across the organisation. Prior to Grameenphone, he held roles of the
Head of HR in Citibank N.A, and the CHRO in Airtel Bangladesh, where he led
the acquisition and merger with regard to employees with Warid Telecom. He
has also worked in the USA for KBR and Aramark. An MBA graduate from IBA,
University of Dhaka, Mr. Tanvir began his career as a management trainee
in BAT Bangladesh, where he created his legacy by initiating the gender
diversity drive, strengthening talent pipeline and by signing two Long Term
Agreements with the CBA in his 7.5 years tenure. Syed Tanvir Husain
Chief Human Resources Officer
Mr. Ole Bjorn Sjulstad was appointed as Chief Corporate Affairs (CCAO) effective
from 02 December 2018. He joined Telenor Asia Pte Ltd. Singapore, as Vice
President in 2000 and served as its Managing Director from 2002 till 2004.
After, relocation to Norway he served as Senior Vice President of Telenor, Asia
region, until April 2007. In 2007, he joined the Telenor CEE regional unit. He
led the representative office in Moscow for six years, followed by a two-year
posting as Chief Corporate Development Officer in Telenor Hungary. Before
Joining Grameenphone he was CEO of Telenor Bulgaria. In his more than 18
years of experience with Telenor Group he has served as a member in the
Board of Directors in Grameenphone (Bangladesh), Digi (Malaysia), UCOM
(Thailand), Telenor Bulgaria (Bulgaria) and Vimpelcom (now VEON). Prior
to joining Telenor Group, Mr. Sjulstad held various leadership and project
management positions within the Information and Telecommunications
sector, as well as Subsea Engineering & Production business relating to
the oil and gas industry. He has earned his Business Administration and
Mechanical Engineering degree from Kongsberg Ingeniorhogskole, Norway
in 1983. In addition, he has completed the Executive Development Program
Ole Bjorn Sjulstad at IMD, Switzerland, in 2008.
Chief Corporate Affairs Officer
Mr. Rade Kovacevic was appointed as Chief Technology Officer (CTO)

effective from 30 January 2018. Earlier, he was serving as the Interim CTO
in Grameenphone from 18 June 2017. Prior to joining Grameenphone,
Mr. Kovacevic was working as Head of IT Asia (acting), Technology & Services
of Telenor Group. Prior to that, he also worked as Head of Sourcing at
Telenor India. He has over 17 years of experience in the telecom industry,
39
working in different senior positions. Mr. Kovacevic has an MSc in Electronics

and Computer Science from University of Montenegro. Rade Kovacevic
Grameenphone Ltd.
Annual Report 2018

Governance
Mr. Mahmud Hossain was appointed Chief Business Officer (CBO) effective
from 24 October 2018. He previously served Grameenphone as Chief
Corporate Affairs Officer (CCAO) from 8 March 2010. He started his career
in 1990, when he joined the technical team of the erstwhile Hutchison BD
Telecom Ltd. He worked for Grameenphone in his first spell with the Company
as Additional General Manager at Technology Operations during 2000-
2001. In his incredibly long career, he also worked for few other telecom
operators before rejoining Grameenphone in August 2009. Mahmud
Hossain obtained his B.Sc. in Electrical & Electronic Engineering from
Bangladesh University of Engineering and Technology (BUET). He obtained
his MBA from the Institute of Business Administration (IBA), Bangladesh. He
also holds a Master’s (Telecom) degree from Concordia University, Canada.
Mahmud Hossain
Chief Business Officer
Mr. Kazi Mahboob Hassan was appointed as Chief Strategy and

Transformation Officer (CSTO) effective from 1 April 2018. Previously he had
been serving as Head of Transformation for the Company since February
2016. Prior to Grameenphone, he was a Senior Management Consultant at
Deloitte UK responsible for leading business transformation programs for
clients across a variety of sectors including Telecom, Oil & Gas, Consumer
Business and Financial Services. Prior to Deloitte, he held senior positions
in Finance and Marketing with IBM UK and BAT Bangladesh. He has an MBA
degree from University of Oxford, is a Fellow Chartered Certified Accountant
(FCCA) with professional accountancy body ACCA, UK and has a BBA degree
Kazi Mahboob Hassan
from University of Dhaka (IBA).
Chief Strategy and Transformation Officer
PROFILE OF COMPANY SECRETARY

Mr. S M Imdadul Haque was appointed as Company Secretary effective from
21 April 2017. Mr. Imdad joined Grameenphone on May 2004 and started
his journey with Internal Audit function. Then he moved to the Department
of Company Secretary on August 2006 and has been working there for
more than twelve (12) years. During his long tenure in the Department of
Company Secretary of such a big company like Grameenphone, he gathered
vast knowledge on Company Secretarial function, Corporate Governance,
Regulatory Management, Public Communications etc. Before joining
Grameenphone, he was associated with KPMG Rahman Rahman Huq,
Chartered Accountants during 1998 to 2004. Mr. Imdad holds a Master’s
degree in Commerce. He attended educational program at INSEAD and
S M Imdadul Haque training programs at different institutions.
Company Secretary
40
Grameenphone Ltd.
Annual Report 2018

CORPORATE GOVERNANCE
IN GRAMEENPHONE
The Board of Directors (the Board) recognises the importance of good corporate governance and
is committed to ensure the sustainability of the company’s business and operations by integrating
good governance ethics and business integrity into the strategies and operations of the company.
The Board believes these practices are key to continue delivering long-term shareholders’ value,
safeguard stakeholders' interest and maintain investors’ trust and confidence.
Corporate Governance Framework

Being a technology oriented business entity, Grameenphone emphasises on
transparency, accountability and compliance, which are the essence of corporate Board
Nomination
governance. Grameenphone’s high standards of corporate governance plays and
Remuneration
an important part towards the Company’s continued growth and success. The Committee
Company has always strived to maintain the highest standards of corporate

governance and business conduct so as to create and maintain sustainable
shareholders' value, safeguard stakeholders' interest and maintain investors’
trust and confidence. Ethical business practices go hand in hand with strong
Ch
er
ef
ff
ic
i
Ex
corporate governance, and we believe that running our businesses in an ethical e c u ti v e O
manner will create trust with the public and ultimately create shareholder value
for the Company. The Company, at the same time, expects acts of honesty and s
integrity from its Board of Directors, employees and suppliers.
Corporate Governance Practices

As part of its governance pursuits, Grameenphone is committed to ensuring the highest standards of governance designed
to protect the interests of all stakeholders while promoting integrity, transparency and accountability. The Board and the
Management Team also put their best efforts to comply with all the laws of the country and all internal regulations, policies and
procedures to make Grameenphone a thoroughly transparent Company.
The Board is of the view that throughout the year ended 31 December 2018, the Company has complied with the applicable
conditions set out in the Corporate Governance Code 2018 issued by the Bangladesh Securities and Exchange Commission (BSEC).
The Board continues to monitor and review the Company’s Corporate Governance practices and makes necessary changes at an
appropriate time. At Grameenphone, our actions are always governed by our values and principles, which are reinforced at all
levels within the Company to ensure sustainable success.
Board Matters
a) Role of the Board
The Directors of the Board are appointed by the Shareholders at the Annual General Meeting (AGM) and are accountable
to the Shareholders. The Board is responsible for ensuring that the business activities are soundly administered and
effectively controlled. The Directors keep themselves informed about the Company's financial position and ensure that its
activities, accounts and asset management are subject to adequate monitoring and control. The Board also ensures that
Grameenphone Policies & Procedures and Code of Conduct are understood, implemented and maintained at all levels and
the Company adheres to the generally accepted principles for good governance and effective control of Company activities.
b) Rules of Procedure for the Board

In addition to other regulatory guidelines, the Board has also adopted the ‘Rules of Procedure for the Board of Directors’
for ensuring better governance in the work and administration of the Board. The Board is also guided by a Delegation of
Authority that spells out the practices and processes in discharging its responsibilities.
c) Salient features of the Rules of Procedure for the Board
• Purpose • Division of work between the Board and CEO
41
• Matters reserved for the Board • Proceedings of Board Meetings

• Principal Roles and Responsibility of the Board • Conflict of Interest
• Specific focus areas • Chair’s Roles & Responsibilities
Grameenphone Ltd.
Annual Report 2018
Corporate Governance in Grameenphone

Governance
d) Key Features of our Board

• All Board Members are Non-Executive Directors;
• Separation of the roles of Chair of the Board and the CEO;
• No Independent Directors have served more than six (6) years;
• Chair of the Audit Committee and NRC Committee are Independent Directors; and
• Management do not sit on the Board.
e) Board Composition
As at the date of this Annual Report, the Grameenphone Board is comprised of ten (10) Directors, with eight (8) Non-
Executive Directors and two (2) Independent Directors. The Non-Executive Directors contribute diversified qualifications and
experience to the Company by expressing their views in an independent, constructive and informed manner, and actively
participating in Board and Committee meetings. The Directors provide independent judgment and advice on issues relating
to the Company’s strategies, policies, performance, accountability, resources, key appointments, standards of conduct,
conflicts of interests and management processes, with the shareholders’ interests being the utmost important factor. The
Company has also received from each Independent Director a confirmation annually of his/her independence taking into
account the independence guidelines set out in BSEC Corporate Governance Code.
f) Board Diversity
The Board recognises the importance of diversity in deliberations and decision-making and has established its efforts to
establish a diverse Board. We believe that our Board has optimum knowledge, composure and technical understanding
about the Company’s business, which, combined with its diversity of culture and background, stands as the perfect platform
to perform and deliver.
A list of Directors and their respective biographies are set out on pages 32 to 36 of this Annual Report.
Composition Gender Tenure

20%
Female Male Up to 3 years 60%
10% 90%
80% Over 3 years 40%
Non-Executive | Independent
g) Board Meetings
The Articles of Association (AoA) of the Company requires the Board to meet at least four (4) times in a year or when duly
called in writing by any Board member. The Board accordingly met fourteen (14) times during the year 2018. Dates for
Board Meetings in a year are decided in advance and notice of each Board Meeting is served in writing well ahead of the
meeting. The notice contains the detailed statement of business to be transacted at each meeting. The Board meets for both
scheduled meetings and on other occasions to deal with urgent and important matters that require attention.
A record of the Directors’ attendance at Board meetings during 2018 is set out on page 84 of this Annual Report.
h) The Chair and the Chief Executive Officer (CEO)

The Chair of the Board is a Non-Executive Director. The Chair and the CEO of Grameenphone are separate persons. The
roles of the Chair and Chief Executive Officer are clearly established, set out in writing and agreed by the Board to ensure
transparency and better governance. To that end, Grameenphone has also adopted ‘Rules of Procedure for Chief Executive
Officer’. The Chair leads the Board and is responsible for ensuring the effectiveness of the Board and its governance processes,
while the CEO is the authoritative head for day-to-day management in the Company. He acts to reasonably ensure that
Grameenphone operates its business as per the Articles of Association. Decisions are made by the Board and Shareholders,
as well as according to Grameenphone Policies and Procedures and applicable regulatory laws and legislations.
i) Delegation of authority
Responsibility or authority is assigned through the delegation of authority framework. The Board approves the Company’s
42
delegation of authority which ensures that delegated authority levels flow through the proper governance channels. The
delegation of authority framework for the Company is continuously reviewed and updated as circumstances change to
Grameenphone Ltd.
ensure relevance and applicability. Amendments to these documents are reviewed and approved by the Board.
Annual Report 2018

j) Code of Conduct
The Board adopted the Code of Conduct for the Chair of the Board, other Board members and Chief Executive Officer
of Grameenphone to support Company’s objectives, vision and values. This Code of Conduct is in compliance with the
requirement of the Corporate Governance Code 2018 of the Bangladesh Securities and Exchange Commission (BSEC). The
Code is available on the Company’s website at www.grameenphone.com.
k) Access to Information
The Board recognises that the decision-making process is highly dependent on the quality of information furnished. In
furtherance to this, every Director has access to all information within the Company. Throughout their tenure in office, the
Directors are continually updated on the Company’s business and the regulatory and industry specific environments in
which it operates. These updates are transmitted to them by way of written briefs and meetings with Senior Executives and,
where appropriate, external sources.
l) Evaluation of the Board

To establish and improve the operating effectiveness of the Board, the Board shall carry out an evaluation once a year of its
work, functions, performance as well as monitoring of internal control over financial reporting for the preparation of external
financial statements and the safeguarding of assets. The Board evaluation was performed in March 2018 and the result was
dealt by the Board at its Board Meeting in April 2018.
Board Committees
For better, quicker and furnished flow of information and thereby exercising effective governance, the Board has also constituted
four (4) sub-committees, viz: Audit Committee; Nomination and Remuneration Committee; Treasury Committee; and Health,
Safety, Security & Environment Committee and has delegated certain responsibilities to the Committees to assist the Board in
the discharge of its responsibilities. The role of Board Committees is to review and appraise in the respective areas and then to
advise and make recommendations to the Board. Each Committee operates in accordance with the Charter/Terms of Reference
(ToR) approved by the Board. The Board reviews the ToR of the Committees time to time. The Board appoints the members and
Chair of each Committee. A brief description of each Committee is presented below:
AUDIT COMMITTEE
1 Independent Director, and
2 Non-Executive Directors Key Objectives
Assist the Board in discharging its supervisory responsibility with respect to
CHAIR internal control, financial reporting, risk management, auditing matters, and
Dr. Salehuddin Ahmed monitoring compliance.
NOMINATION AND REMUNERATION COMMITTEE

1 Independent Director, and Key Objectives
2 Non-Executive Directors
Assist the Board broadly in formulation of policy with
THE BOARD OF CHAIR regard to determining qualifications, positive attributes,
GRAMEENPHONE Prof. (Dr.) Jamilur Reza experiences, remuneration mainly for Directors and Top
Choudhury Level Executives of the Company.
2 Independent Directors, and
8 Non-Executive Directors
TREASURY COMMITTEE
Key Objectives
To create value for Shareholders 1 Non-Executive Director
and to ensure the long-term 1 Group Treasury Member, and Key Objectives
success of the Company. 1 Management Team Member
Assist the Board in discharging its supervisory
CHAIR responsibility with respect to all significant financial
M Shahjahan matters which concern the Board.
HEALTH, SAFETY, SECURITY AND ENVIRONMENT COMMITTEE

2 Non- Executive Directors
Key Objectives
Assist the Board in discharging its supervisory
CHAIR
43
responsibility with respect to Health, Safety, Security

Gunnar Johan Bertelsen and Environment (HSSE) issues.
Grameenphone Ltd.
Annual Report 2018

Governance
a) Audit Committee
The Audit Committee was established in late 2008 as a sub-committee of the Board and has jurisdiction over all the
Company. The Audit Committee is comprised of two (2) Non-Executive Directors and one (1) Independent Director. The Chair
of the Committee is an Independent Director, as required under the BSEC Corporate Governance Code. The Chief Executive
Officer, the Chief Financial Officer, the Company Secretary and the Head of Internal Audit are permanent invitees to the Audit
Committee meetings.
The Audit Committee assists the Board in discharging its supervisory responsibilities with respect to internal control, financial
reporting, risk management, auditing matters and Grameenphone's processes of monitoring compliance with applicable
legal & regulatory requirements and the Code of Conduct. The Audit Committee Charter, as approved by the Board, defines
the purpose, authority, composition, meetings, duties and responsibilities of the Audit Committee.
The detailed activities of the Audit Committee during 2018 are given on page 55 of this Annual Report.
The Audit Committee met nine (9) times during the year 2018 and attendance of the Committee members in the meetings
was as follows:
Name Attendance Remarks

Dr. Salehuddin Ahmed 0/0 Effective from 12 December 2018
M Shahjahan 9/9
Oivind Burdal 7/8 Effective from 30 January 2018
Rokia Afzal Rahman 7/8 Term Expired on 5 December 2018
Tore Johnsen 1/1 Retired on 29 January 2018
b) Nomination and Remuneration Committee

The Nomination and Remuneration Committee (NRC) was established on 11 December 2018 as a sub-committee of the
Board in place of earlier Human Resources Committee. The NRC is comprised of two (2) Non-Executive Directors and one
(1) Independent Director. The Chair of the Committee is an Independent Director, as required under the BSEC Corporate
Governance Code. The Committee assists the Board broadly in formulation of policy with regard to determining qualifications,
positive attributes, experiences, remuneration mainly for directors and top level executives.
Since the NRC was constituted as a sub-committee of the Board on 11 December 2018, no meeting of NRC was held during
the reporting period. The detailed activities of the NRC during 2018 are given on page 56 of this Annual Report
c) Treasury Committee
This Committee consists of three (3) members who are appointed by the Grameenphone Board. All significant financial
matters which concern the Board are discussed in this committee meeting in detail. Upon endorsement of the Treasury
Committee, such issues are forwarded to the Board for their final review and approval.
The Treasury Committee met two (2) times during the year 2018 and attendance of the Committee members in the meetings
was as follows:
Name Attendance
M Shahjahan 2/2
Pal Stette 2/2
Karl Erik Broten 2/2
d) Health, Safety, Security and Environment Committee

This Committee consists of two (2) members who are appointed by the Grameenphone Board. The Committee meets
whenever necessary and supports the Board in fulfilling its legal and other obligations with respect to Health, Safety, Security
and Environment (HSSE) issues. The Committee also assists the Board in obtaining assurance that appropriate systems are in
place to mitigate HSSE risks in relation to the general environment, Company, employees, vendors, etc.
44
Grameenphone Ltd.
Annual Report 2018

The HSSE Committee met two (2) times during the year 2018 and attendance of the Committee members in the meeting
was as follows:
Name Attendance Remarks

Gunnar Johan Bertelsen 1/1 Effective from 11 June 2018
M Shahjahan 2/2
Hans Martin Hoegh Henrichsen 1/1 Retired on 10 June 2018
Company Secretary
To ensure effective assimilation and timely flow of information that is required by the Board and to maintain necessary liaison
with internal organs as well as external agencies, the Board has appointed a Company Secretary. The Corporate Governance
Code issued by the Bangladesh Securities and Exchange Commission (BSEC), also requires a listed Company to appoint Company
Secretary. In pursuance of the same, the Board of Directors has appointed the Company Secretary and defined his roles &
responsibilities. In Grameenphone, among other functions, the Company Secretary:
z Performs as the bridge between the Board, Management and Shareholders on strategic and statutory decisions and
directions.
z Acts as a quality assurance agent in all information streams towards the Shareholders and the Board.
z Is responsible for ensuring that appropriate Board procedures are followed and advises the Board on Corporate
Governance matters.
z Acts as the Disclosure Officer of the Company and monitors the compliance of the acts, rules, regulations, notifications,
guidelines, orders/directives, etc. issued by BSEC or Stock Exchange(s) applicable to the conduct of the business activities
of the Company so as to protect the interests of the investors and other stakeholders.
Management Team
The Management Team is the Executive Committee of Grameenphone. Headed by the CEO, the Management Team is responsible
for managing and running the affairs of the Company. All other key Managers across the Company are members of the Management
Team. The Management Team works to achieve the strategic goals & mission of the Company set by the Board of Directors. In
discharging its assigned responsibilities, the Management Team meets on a weekly basis to monitor the business performance
of the Company.
The Control Environment in Grameenphone

In implementing and ensuring good governance in Grameenphone, the Board and Management Team ensure the following:
a) Beyond Budgeting Management Model

Grameenphone employs a Beyond Budgeting Strategic Management model ensuring a more agile organisation which gives
the flexibility to adapt to dynamic business environments. Each year, the Company reviews its long term strategy which
ranges from 3 to 5 year plan; and sets annual and quarterly targets on key KPIs for the upcoming year. The quarterly targets
are subject to rigorous monitoring thereby ensuring a performance driven culture focused on attaining the targets and
steering the Company towards fulfilling its strategic ambitions.
Furthermore, every quarter, the Company also prepares a realistic rolling forecast for the next five quarters providing
management guidance on future direction for the organisation. The Company continually assesses performance, forecasts,
gap with yearly ambitions while also focusing on initiatives to minimise the gap between the targets (KPIs) and forecasts.
The corporate level initiatives are cascaded down to divisional as well as individual levels. The resource allocations are
dynamic and are based on the intended actions linked with the target and strategy. It aims to build a culture of freedom
through responsibility and thereby leading to increased responsiveness to surrounding changes.
b) Financial Reporting
Grameenphone has strong financial reporting procedures. Financial statements are prepared in accordance with International
Financial Reporting Standards (IFRS), the Companies Act 1994, the Bangladesh Securities and Exchange Commission Rules
1987 and other applicable financial reporting regulations. All the financial transactions are recorded in the Oracle Enterprise
45
Resource Planning (ERP) systems. Financial reports extracted from ERP are then used to produce the financial statements.
These financial statements, once prepared, are reviewed initially by Head of Reporting, Head of Financial Accounting and
Grameenphone Ltd.
Reporting, CFO and CEO respectively and then by the Board Audit Committee on a quarterly basis. In each quarter, the
Annual Report 2018

Governance
external auditors review the quarterly financial statements. The annual audit is conducted by the external auditors, who
are appointed by the Board of Directors followed by the Shareholders' approval at the Annual General Meeting. Details of
Internal Control over Financial Reporting are described on page 51 of the Annual Report.
c) Operational Excellence (OE)

In the pursuit of operational excellence, Grameenphone sustains a dual focus on cost-efficiency and Business transformation.
Within our framework, we ensure that all operational improvement initiatives are conceived and measured in terms of their
direct business contribution.
In 2018, Grameenphone brought additional focus on structural change to Modernise its way of doing business which has a
sustainable efficiency impact. Operational excellence now being run under ‘Office of Strategic Initiative’ department that
deals with both regular business operation excellence programs along with top strategic initiatives of Grameenphone related
to Business Model change and Transformation. This combines innovation and sustainability while targeting maximisation
of value. The Company follows a structured yet dynamic approach for smart spending; ensuring faster time to market,
enhancement of service quality with resource efficiency.
Operational Expenditure effectiveness, on Network Operation, Market spend, Capital Expenditure Efficiency, efficiency in
admin & other overhead spend, Business Process Efficiency, Smart Spend Management, Functional Cost benchmarking are
some of the corner stones of the scope of work. The concerted effort from these streams has enabled Grameenphone to
meet the business targets. The team works together with empowered cross functional teams to analyse and review the need
and expected outcome of spending in detail to ensure the priority of business needs and optimise results. Progress of the
milestones and efficiency are subject to assessment by Management and reflection in the financial results. The progress of
the efficiency initiatives are also reported to the Board of Directors and Management Team on a regular basis.
d) Business Reviews and Financial Reviews

Business reviews and financial reviews are conducted on a quarterly basis. The purpose of business reviews is to monitor
progress of strategic initiatives versus longer term strategic plans and objectives, whilst also taking into consideration the
changing market and regulatory environment. The purpose of the financial review is to monitor the financial performance
and position of the company versus its annual financial targets.
In addition to quarterly business and financial review, the CEO and CFO review financial results on a monthly basis to ensure
Grameenphone is on track to deliver its annual financial targets or to identify corrective action required, if and when required.
e) Management of Assets
Grameenphone, in its pursuit of best quality network for its subscribers, has been investing in cutting-edge telecom
technology since its inception. Transparency and accountability are ensured at all stages from acquisition to disposal
to protect the interest of Shareholders. Internationally accepted safety measures have been implemented and periodic
physical verification is undertaken on a test basis to safeguard the assets and to ensure accuracy and authenticity of the
reported number of assets. All the critical assets are adequately insured against industrial risks with local and international
insurance companies.
f) Statutory Audit and Certification

Auditing of the Company is governed by the Companies Act, 1994 and Bangladesh Securities and Exchange Commission Rules
1987 and conducted in accordance with International Standards on Auditing (ISA). As per these regulations, auditors are
appointed by Shareholders at each Annual General Meeting (AGM) and their remuneration is also fixed by the Shareholders
at the AGM. Appropriate structure is in place as per Corporate Governance best practices to ensure their independence.
Statutory auditors cannot be appointed for a consecutive period exceeding three years in compliance with the order of
Bangladesh Securities and Exchange Commission (BSEC). Statutory auditors are not engaged in non-audit services as this
may compromise auditor independence, unless otherwise required by the regulators. The Board Audit Committee reviews
the Financial Statements before submission to the Board of Directors for approval. Auditors also have access to the Board
Audit Committee and the Board for communication of any issues. In addition to the audit of annual financial statements, the
auditors also carry out audit of half-yearly financial statements of the Company.
Further, to ensure adequate regulatory discharge, a Compliance Certificate is obtained from licenced practicing professional
who certify that the Company has duly complied with all the regulatory requirements as stipulated by the Bangladesh
46
Securities and Exchange Commission (BSEC).
Moreover, for remittance of technical assistance fees and consultancy fees, auditors also certify payable amount and
Grameenphone Ltd.
Annual Report 2018
calculation for each remittance.

g) Internal Audit
Internal Audit supports the Company in achieving its objectives by bringing a systematic and disciplined approach to evaluate
and improve the effectiveness of its risk management, control and governance processes. In order to ensure organisational
independence of Internal Audit, the Head of Internal Audit reports functionally to the Board and its Audit Committee
and administratively to the Chief Executive Officer. Internal Audit activity is governed by the Internal Audit Charter, which
is approved by the Board. Grameenphone Internal Audit is empowered to carry out its assigned activities in all aspects
of the Company and have unrestricted access to any relevant information. Grameenphone Internal Audit department
discharges its assurance and consulting activities through management of three distinct audit streams: Core Business and
Digital, Governance and Third Parties, and IT & Cyber Security. Additionally, the team also performs quality assurance and
improvement program, aligned with the Institute of Internal Auditors’ Standards. A risk-based annual audit planning process
is in place, which takes into consideration the strategic imperatives and major business risks surrounding Grameenphone,
while considering pervasive audit needs. Grameenphone Internal Audit also works closely with Telenor Group Internal Audit
in sharing knowledge and resources to ensure achievement of internal audit deliverables and objectives.
h) Internal Control Over Financial Reporting (ICFR)

Preparing reliable financial information in accordance with applicable accounting standards and relevant laws and
regulations is a key responsibility of Grameenphone Management. Grameenphone has implemented necessary Internal
Controls to ensure that the financial statements prepared are free from material misstatement, whether due to fraud or
error, and the financial statements are compliant with International Financial Reporting Standards (IFRS), the Companies
Act 1994, the Bangladesh Securities and Exchange Rules 1987 and Corporate Governance Code 2018.
Grameenphone follows a risk-based approach for designing and implementing effective internal controls. The management
has also established appropriate accountability structure with defined roles and responsibilities for control performers,
control owners and process owners with overall responsibility lying with CEO and CFO. A dedicated internal control team is
also in place for conducting internal control related activities.
Because of its inherent limitations, any system of internal control over financial reporting, no matter how well designed,
may not prevent or detect misstatements due to the possibility that a control can be circumvented or overridden or that
misstatements due to error or fraud may occur that are not detected. Also, because of changes in conditions, internal control
effectiveness may vary over time.
Management assessed the effectiveness of the Company's internal control over financial reporting engaging an independent
audit firm, using the criteria established in Internal Control - Integrated Framework (2013) issued by the COSO and concluded
that the Company maintained effective internal control over financial reporting throughout the year ended 31 December
2018.
i) Related Party Transactions

The Board Audit Committee reviews all the related party agreements and payments before submission to the Board of
Directors for approval. Abiding by the laws, a Board Director, who has an interest in a transaction, discloses his interest in
such transaction and abstains from deliberations and voting on the relevant resolution in respect of the transactions at the
Board meetings. Details of significant related party transactions are disclosed in notes of the Financial Statements as per the
requirements of IAS 24 Related Party Disclosures.
j) Dividend Policy
The Board of Directors has established a dividend policy, which forms the basis for the proposals on dividend payments that
it makes to the Shareholders taking into consideration the business performance of the Company and its strategic initiatives.
The Board believes that it is in the best interest of Grameenphone to draw up a long-term and predictable dividend policy.
The objective of the policy is to allow the Shareholders to make informed investment decisions.
k) Enterprise Risk Management & Risk Mitigation

Risk Management at Grameenphone is concerned with earning competitive returns from the Company’s various business
initiatives at an acceptable risk level. It supports the Company’s competitiveness by developing a culture, practice and
structure that systematically recognises and addresses future opportunities whilst managing adverse effects (i.e. threats) by
recognising risks and responding appropriately to them. The Company follows well defined risk management manuals and
47
processes to mitigate enterprise level risks. This aspect is discussed more elaborately in the ‘Enterprise Risk Management’
section of the Annual Report on page 52.
Grameenphone Ltd.
Annual Report 2018

Governance
l) Revenue Assurance and Fraud Management

Revenue Assurance function is accountable to ensure the accuracy, completeness, integrity and timeliness of all revenue
related events, transactions and revenue driving primary cost components. Along with providing support to give assurance on
correct revenue recognition and reporting, this function also performs continuous monitoring to prevent revenue leakages.
The Fraud Management systems and processes are in place to ensure innovative and effective defense mechanisms to
prevent losses from internal/external service frauds.
m) Compliance with Rules & Regulations of the Country

In Grameenphone, we believe that compliance is the key towards a sustainable business. Therefore, being respectful and
compliant to the laws of the land is a priority for us in Grameenphone.
As the leaders of a compliant Company, the Management Team members of Grameenphone adopted strategies that assure
compliance with all legal and regulatory requirements. This ensures that good governance is properly cascaded throughout
the Company. Grameenphone is subject to close monitoring of the regulatory bodies that focus on transparency and
requires that Grameenphone provides accurate and periodic reporting of issues/events and certification where necessary.
In this context, Grameenphone regularly provides a complete set of financial statements and relevant documents to the
Bangladesh Securities and Exchange Commission (BSEC), Stock Exchanges, National Board of Revenue (NBR), Registrar
of Joint Stock Companies & Firms (RJSC), Bangladesh Telecommunication Regulatory Commission (BTRC), the Bangladesh
Investment Development Authority (BIDA) and all other relevant bodies and authorities. Further, in order to conduct day-to-
day business in a compliant manner, Grameenphone renders its best efforts to comply with the laws of the land.
n) Business Continuity and Crisis Management (BCCM)

Grameenphone continually strives to improve its Business Continuity Management (BCM) capabilities by identify potential
threats, its impact on business operation and takes necessary measures both in terms of process and infrastructure.
Grameenphone has a robust and protected network where its optical fibre transmission is protected by redundant links and
its switching centres are distributed. Moreover, due to increase vulnerability in fibre links, numbers of redundant path for
tertiary level protections have been introduced to secure fibre connectivity. We always incorporate new technologies and
utilise its advantages for increasing the network resilience. Recently we have upgraded core network to virtualised platform
and distributed it in two different seismic zones to have higher resilience in telecommunication services.
Bangladesh is prone to many natural calamities like thunderstorm, nor’wester storm, cyclone, heavy rainfall and flood etc.
Each and every year mobile operations are impacted during these disasters due to severe power crisis and transportation.
Having a capable organisation in circles, collaborations with partners and by proper infrastructure dimensioning
Grameenphone managed several crises throughout the year and took the advantage of quick recovery by utilising the
effective BCM processes in place. We also perform exercises for enhancing the Crisis Management capabilities in situation
like data breach and other areas where employee safety and security are in concern. This preparedness helps the Company
to also ensure uninterrupted telecommunication services under unforeseen circumstances, which is a very important tool
for managing disasters.
o) Supply Chain Sustainability

Supply Chain Sustainability is a part of business strategy of Grameenphone that strives for high labour standards and
continuous improvement in its own operations and throughout its entire supply chain. The focus of Grameenphone is to
ensure ethical and responsible business practices in its supply chain through structured risk based sustainability operations
that include supplier code endorsement, supply chain capacity building and periodic audits and inspections. All suppliers
and parties having a direct contractual relationship with Grameenphone must comply with Grameenphone's Supplier
Conduct Principles (SCP). In addition, all suppliers are obliged to extend the supplier requirements further down in their own
supply chain. Considering the local market context and long-term risk reduction, Grameenphone emphasises on Supply
Chain Capacity Building and enhancement of skills. Grameenphone believes that decent working conditions, respect for
human rights and the environment, as well as willingness to improve standards amongst our suppliers, is the only viable
route forward. Grameenphone also carries out systematic inspections and audits in order to monitor compliance with the
requirements on responsible business conduct. Any identified gaps are shared with the respective suppliers for the purpose
of development. Grameenphone believes supply chain sustainability is a journey to empower and reduce inequalities in the
supply chain.
48
Grameenphone Ltd.
Annual Report 2018

p) Ethics and Behaviour
i. Code of Conduct
Code of Conduct is a baseline and foundation for us. It is the basis for how we behave as guardians of Grameenphone’s
integrity. This year Grameenphone has adopted a new Code of Conduct approved by the Board of Directors. It promotes
four key principles and those are 1. We play by the rules; 2. We are accountable for our actions; 3. We are transparent
and honest; 4. We speak up. The four Code principles are designed to set clear expectations regarding our business
conduct and to help us deal with dilemmas and challenges we may face in our day to day work. The Code provides clear
rules and guidance, with further reference to relevant policy areas. It provides precise direction on conducting business
and interacting with the competitors, business partners and public officials. It also includes guidance on disclosure
of conflict of interest situations, maintaining confidentiality, information handling, privacy, human rights and labour
rights. The Code further emphasises on the duty to speak up whenever there is a potential breach of the legislation or
the Code itself. Grameenphone has a web-based reporting channel named “Integrity Hotline” that is operated by an
international independent company which is designed to protect the privacy of individuals who report a concern, and
individuals who are the subject of a reported concern.
In 2018, Grameenphone also conducted a mandatory e-learning course for all employees to enhance employee
knowledge to abstain from any kind of ethical misconduct. In addition all employees signed the new Code of Conduct
electronically. This process reminds the employees of their rights and obligations as personnel of Grameenphone.
ii. Restrictions on dealings in Grameenphone Shares by Insiders

The Company has established a detailed policy relating to trading in Grameenphone shares by Directors, Employees
and other Insiders. The securities laws also impose restrictions on similar transactions. All the Insiders are prohibited
from trading in Grameenphone shares, while in possession of unpublished price sensitive information in relation to the
Company during prescribed restricted trading periods.
iii. Supplier Conduct Principles

The Supplier Conduct Principles (SCP) outline the standards for ethical and business conduct expected from 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.
iv. Anti-Corruption Policy

Grameenphone has zero tolerance for any form of corruption. The company has a robust Anti-Corruption Policy that
applies to the Board of Directors, the management and all employees. As part of the anti-corruption programme, the
company conducts a mandatory yearly assessment of the external and internal corruption risks that might impact its
operations. Based on the assessment, Grameenphone implements a structured mitigation plan to prevent any exposure
to corruption including, bribery, facilitation of payments or trading in influence. The top management regularly
demonstrates a visible and active commitment to its ‘zero tolerance’ approach against corruption. Grameenphone
expects its business partners to meet its anti-corruption standards and exercises due care before engaging any of
them. The company organises regular compliance and anti-corruption awareness sessions for both internal and
external stakeholders.
q) Investor Relations (IR)

Grameenphone is one of the largest listed corporate entities in Bangladesh, and therefore places high importance to the
investment community both within and outside of the country. With the purpose of establishing the most effective two
way communication with financial markets and the Company, there is a dedicated Investor Relations function in practice in
Grameenphone Ltd.
The Investor Relations function aims to provide relevant and necessary information to the investment community in order
to enable them to make an informed judgement about the fair value of a company’s shares. IR as a specialised function
maintains close contact with both local and international investors, analysts, market experts and financial community on a
proactive basis. Through this, the relevant stakeholders are kept informed about the Company’s financial results, regulatory
landscape, growth opportunities and strategic ambitions, while objectively sharing the associated risk and reward profile.
49
Grameenphone Ltd.
Annual Report 2018

Governance
This also reflects Grameenphone’s commitment towards developing the Capital Market of the country by introducing global
best practices and ensuring transparency, accountability and compliance. Notable events that IR conducted during the
year were quarterly results release, analyst call conferences, foreign non-deal road shows, participation in frontier market
conferences.
r) Shareholders
i) Communications with Our Shareholders

We believe good Corporate Governance involves openness and trustful cooperation between all stakeholders involved
in the Company, including the owners of the Company – the Shareholders. We value the importance of effective
communication with our Shareholders and Investors. Information is communicated to the Shareholders regularly
through a number of forums and publications. The Company has adopted a detailed policy on information disclosure
and communication. In compliance with continuous disclosure requirements, the Company’s policy is that Shareholders
will be informed in a routine manner of all major developments that impact the business of the Company and also be
able to make informed decisions.
ii) Information Disclosure

In accordance with the disclosure requirements, the Company follows these three main forms of information disclosure:
•Continuous disclosure – which is its core disclosure and primary method of informing the market and Shareholders;
•Periodic disclosure – in the form of quarterly and yearly reporting of financial results and other issues; and
•Event based disclosure – as and when required, of administrative and corporate developments, usually through
stock exchanges and press releases.
All information provided to BSEC and Stock Exchanges are immediately made available to the Shareholders and the
market on the Company’s Investor Relations section of the website: www.grameenphone.com
iii) Annual General Meeting (AGM)

The General Meeting of the Shareholders is the supreme governing forum in Grameenphone. The Company recognises
the rights of Shareholders and the Shareholders' interests are primarily ensured through Grameenphone’s Annual
General Meeting (AGM). The Company also encourages shareholders’ active participation in AGM and other General
Meetings. The AGM provides a useful forum for our Shareholders to engage directly with Grameenphone’s Board of
Directors and Management. The Board Members and Statutory Auditors attend AGM to respond to the Shareholders’
queries on the result or any other aspect of the Company.
In order to encourage the participation of shareholders at its general meeting, we organised our 21st AGM at an easily
accessible location in Dhaka, Shareholders are allowed to vote via proxy if they are unable to attend the general
meetings. The Company will continue to explore leveraging on technology to facilitate shareholders’ participation and
enhance proceedings of General Meetings.
iv) Website
All financial results and key performance indicators as well as other relevant financial and non-financial data are posted
on the Investor Relations section of the Company’s website: www.grameenphone.com
v) Shareholders' Queries
Whilst the Company aims to provide sufficient information to Shareholders and Investors about the Company and its
activities, it also recognises that Shareholders may have specific queries relating to their shareholding. These queries may be
directed at +88 01711555888 or mailed to Grameenphone Share Office at [email protected]
Grameenphone believes in transparency and accountability to the society as a whole through establishment of an efficient and
effective Corporate Governance regime. The Company also believes that Corporate Governance is a journey and not a destination
and it needs to be continuously developed, nurtured and adapted to meet the varying needs of a modern business house as well
as the justified aspirations of our valued investors, other stakeholders and the society at large.
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Grameenphone Ltd.
Annual Report 2018

INTERNAL CONTROL OVER

FINANCIAL REPORTING (ICFR)
Establishing adequate internal control and ensuring effective control environment is high on Grameenphone management
agenda. Grameenphone has instituted Internal Control over Financial Reporting (ICFR) and established a monitoring mechanism
to ensure operational effectiveness of those controls. At Grameenphone, internal controls are specifically designed to address
the risks related to financial reporting. Internal controls over financial reporting are intended to provide reasonable assurance
that Grameenphone’s financial statements are not materially misstated and give true and fair view of transactions and financial
position of the company.
Grameenphone has adopted internal control model
RE NS
developed by the Committee of Sponsoring Organisations of
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O
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IN
I
AT
IA
RT
the Treadway Commission (COSO), which is widely recognised
PL
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OP
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as a definitive standard for measurement of effectiveness of
internal control system. Internal controls in Grameenphone CONTROL ENVIRONME
are part of Grameenphone’s overall corporate governance NT
structure and are very much embedded in the business
ENTITY LEVEL
RISK ASSESS
MENT
DIVISION
processes affecting the financial reporting.
CONTROL ACT
Grameenphone follows a risk-based approach for designing IVITIES
and implementing effective internal controls. Currently, the
INFORMATIO
entire financial reporting of Grameenphone encompasses 19 N&
COMMUNICA
inter-related processes. Risk assessment exercise is performed TION
for each of the processes on annual basis. As part of the risk MONITOR
assessment, each process is evaluated through probability ING
and impact matrix and categorised into a four-point ordinal
scale (Very High, High, Medium and Low). Internal controls
are designed and deployed to mitigate identified risks to an Figure 1: COSO Internal Control Framework
acceptable level.
N S
I Oeffectiveness
E R A T throughout G of controls is
Operating
Identify & Manage Adjust Financial O Pmonitored O R T I Nthe
P
R Econtrols
year. Effectiveness
E
C
Changes Reporting Risk
N
A
of the are tested in two different

LI
P
M
O
phases, i.e. Interim Testing and Year-end

C
Testing. An independent audit firm is engaged

01
MAR
AP
to test the effectiveness and adequacy of
B R
FE instituted controls.
Scoping & Risk
02
Assessment
MA
JAN
Grameenphone has a dedicated internal

Y
control team, accountable for conducting

Continuous
Year-end performance Risk activities related to internal controls over
DEC
JUN
Testing and Coverage

monitoring
financial reporting. The team is adequately
resourced and empowered to deliver its
V
responsibilities. ICFR team works independent

JU
NO
Interim
of but closely with Internal Audit and Telenor
04
Testing AU
Group ICFR team to ensure risks are identified,
T
OC G 03
SEP
reported and mitigated timely.
51
Control Implement &

Remediation Adjust Control
Grameenphone Ltd.
Annual Report 2018
Figure 2: ICFR Routine in Grameenphone
Internal Control Over Financial Reporting (ICFR)

Governance
ENTERPRISE RISK
MANAGEMENT
While operating in a dynamic industry and highly competitive market, Grameenphone is exposed to
a wide range of risks that may affect its business. The Company aims to earn competitive returns at
acceptable risk levels. Risk management is a continuous process and an integrated part of business
throughout the entity. All managers are required to assume responsibility for risk management
within their areas of responsibility and ensure that risk management is embedded in day-to-day
business processes. The Risk Management Forum established within the Company ensures active
participation from different functional areas to increase its effectiveness.
During the financial year under review, the significant risks in the Company’s business were reviewed, monitored and reported
through Risk Management Forum and mitigating measures were evaluated by the Board and Management on a regular basis.
This is to ensure that the Company’s risk management framework continues to effectively promote and enable the identification,
management and monitoring of risks across the organisation.
Below are the key risk areas identified at Grameenphone:
Financial Risk
Financial risk includes credit risks, liquidity risks, currency risks and interest rate risks. The company’s exposure to financial risks
is disclosed in detail under note 39 of the financial statements.
Regulatory Risk
Grameenphone’s operations are subject to requirements through sector specific laws, regulations and national licences.
Regulatory developments and regulatory uncertainty could affect the Company’s results and business prospects. The introduction
of, or increase in, sector specific taxes and levies may impact the business.
The Company depends on licences, access to spectrum and numbering resources in order to provide telecommunications services.
If the Company is not successful in acquiring spectrum licences or is required to pay higher rates than expected, this might impact
our business strategy. Further, unforeseen events may cause disruption in roll-out plans, resulting in risks of deterioration of
network quality. In a nutshell, every change in regulations will affect growth and sustainability of the company as well as the
industry either positively or negatively.
Transformation Risk
The introduction of new technologies and changing consumer behaviour open up new business models in the telecom sector,
leading to structural changes and new industry dynamics. Grameenphone has started embarking on a vital transformation
agenda to adapt accordingly. Failure to respond to the changed dynamics, and to drive a change agenda to meet mature and
developing demands in the marketplace, will impact the Company’s position in the value chain, service offerings and customer
relationships.
Grameenphone competes on several dimensions, e.g. product portfolio, price, network quality, network coverage, reliability,
sales, distribution and brand. The Company’s ability to differentiate through these dimensions largely impact the ability to attract
and retain customers and drive usage.
Further, revenue growth is partly dependent on the development and deployment of new products, services, technologies and
applications. If such new releases are not technically or commercially successful, or if limitations in existing or new services and
52
products affect the customer experience, Grameenphone’s ability to attract or retain customers may be impaired.
Grameenphone Ltd.
Annual Report 2018
Enterprise Risk Management

Operational Risk
The quality and reliability of Grameenphone’s telecommunications services depend on the stability of its network and the
networks of other service providers with which it interconnects. These networks are vulnerable to damage or service interruptions,
including interruptions or data breaches coming from targeted cyber-attacks. Repeated, prolonged or catastrophic network or
IT system failures could damage the Company’s reputation and ability to attract and retain subscribers. Grameenphone depends
on key suppliers and third-party providers for supply and maintenance of equipment and services. Problems that manifest in
relation to the supply chain may adversely affect the Company’s business and results of operations.
Grameenphone handles substantial volumes of confidential information. Loss, mismanagement or unauthorised disclosure of
such information, may adversely affect the Company’s business and reputation.
Political instability and violence including social unrest, terrorist attacks etc. may prevent the company from operating its
business effectively.
Safety, Sustainability and Compliance

Grameenphone strives for high standards and continuous improvement in its own operations and throughout the entire supply
chain to ensure responsible business conduct where there are risks for breach of internationally recognised standards related to
health and safety, human rights, labour rights, environment and anti-corruption. Engaging with and monitoring of suppliers to
ensure long term risk reduction is a priority.
The market in which Grameenphone operates, however, is an emerging economy with potentially complex and sensitive political
and social contexts. Risks such as corruption, human rights and other issues will continue to stay high on the Company’s agenda.
53
Grameenphone Ltd.
Annual Report 2018
Enterprise Risk Management

Our future generation, our children, are the key to a better
tomorrow. While technology is poised to be a boon, its
misuse can have dire consequences to the development of
young minds. Through its “Safer Internet” initiative
Grameenphone is proactively making the digital world safer
for the younger generation.
AUDIT COMMITTEE REPORT

The Audit Committee of Grameenphone, being one of its prime Board sub-committees, assists the Board in discharging its
governance responsibilities. A brief of the Audit Committee and its roles, responsibilities and functions are as under:
Composition and Meetings

The Audit Committee of Grameenphone comprises of two (2) Non-Executive Directors and one (1) Independent Director. All
members possess adequate qualifications as determined in the Corporate Governance Code promulgated by the Bangladesh
Securities and Exchange Commission (BSEC). The Committee includes:
1. Dr. Salehuddin Ahmed, Chair [effective from 12 December 2018]
2. Mr. M Shahjahan, Member
3. Mr. Oivind Burdal, Member [effective from 30 January 2018]
The Independent Director, Dr. Salehuddin Ahmed acts as Chair of the Committee. As per the regulatory guidelines, the Company
Secretary, Mr. S M Imdadul Haque acts as Secretary to the Committee. The Audit Committee, accordingly, performs in coherence
and ensures compliance with the Corporate Governance Code promulgated by the BSEC.
A total of nine (9) meetings were held during 2018. Mr. Md. Ashraful Hassan (Managing Director, Grameen Telecom) attended
the meetings as a special invitee. A record of the Members’ attendance at the Audit Committee meetings during 2018 is set out
on page 44 of this Annual Report. Permanent invitees to the meetings were the Chief Executive Officer (CEO), the Chief Financial
Officer (CFO), the Head of Internal Audit and the Company Secretary. Relevant heads of divisions and other members of the
Management and the internal audit team also attended the meetings on occasions, as required.
Major Responsibilities of the Audit Committee

The purpose, authority, composition, duties and responsibilities of the Audit Committee are delineated in its Charter. Some of the
major responsibilities of the Audit Committee are as follows:
• Review the annual, half-yearly and quarterly Financial Statements and other financial results, and upon its satisfaction of the
review, recommend the same to the Board for approval.
• Review the adequacy and effectiveness of financial reporting process, internal control system, risk management, auditing
matters, and the Company’s processes for monitoring compliance with laws and regulations and the Code of Conduct.
• Recommend appointment, termination and determination of audit fees for statutory auditors. Consider the scope of work, and
oversee and evaluate the works performed by statutory auditors. Review permitted non-audit services performed by statutory
auditors.
• Exercise its oversight of the work of Grameenphone Internal Audit. Review the effectiveness of internal audit functions
including performance, structure, adequacy of resources, and compliance with professional standards. Examine audit findings
and material weaknesses and monitor implementation of audit action plans.
• Exercise its oversight of the work of Grameenphone Ethics & Compliance. Review the Compliance Plan.
Major Activities of the Audit Committee during the reporting period

• Reviewed and recommended the quarterly and annual Financial Statements for the year ended 31 December 2018.
• Approved the Internal Audit Plan 2018 and its subsequent revision and monitored the progress.
• Discussed Internal Audit reports and findings and guided completion of annual audit plan.
• Monitored the status of implementation of audit action plans and provided guidance to ensure timely completion of action plans.
• Reviewed and recommended related party transactions for foreign remittance.
• Reviewed compliance of Code of Conduct of the Company.
• Reviewed Management Letter issued by the External Auditors in their presence.
• Considered and made recommendation to the Board on the appointment and remuneration of statutory auditors, A Qasem &
Co, Chartered Accountants.
• Reviewed and received report on the matters as per requirement from the Bangladesh Securities and Exchange Commission (BSEC).
• Reviewed other matters and incidents of significance as per Audit Committee Charter.
For and on behalf of the Board Audit Committee of Grameenphone Ltd.

Chair
55
Audit Committee
Grameenphone Ltd.
Annual Report 2018
27 January 2019
Audit Committee Report

Governance
NOMINATION AND
REMUNERATION
COMMITTEE REPORT
In compliance with the Corporate Governance Code 2018, the Board of Directors at its meeting held on 11 December 2018
constituted the Nomination and Remuneration Committee (“NRC”) to assist the Board broadly in formulation of policy with
regard to determining qualifications, positive attributes, experiences, remuneration mainly for directors and top level executives.
A brief of the NRC and its roles, responsibilities and functions are appended below:
Composition and Meetings

The NRC of Grameenphone comprises of three (3) members who will exclusively be Non-Executive Directors, including one (1)
Independent Director. The Committee includes:
1. Prof. (Dr.) Jamilur Reza Choudhury, Chair

2. Mr. Haakon Bruaset Kjoel, Member
3. Mr. Md. Ashraful Hassan, Member
The Independent Director, Prof. (Dr.) Jamilur Reza Choudhury acts as Chair of the Committee. As per regulatory guidelines, the
Company Secretary, Mr. S M Imdadul Haque acts as Secretary to the Committee. The NRC, accordingly, performs in coherence and
ensures compliance with the Corporate Governance Code promulgated by the Bangladesh Securities and Exchange Commission
(BSEC).
Permanent invitees to the meetings are the Chief Executive Officer (CEO), the Chief Human Resources Officer (CHRO), and the
Company Secretary. Relevant heads of divisions and other members of the Management team will also attend the meetings at
occasions, as required.
Major Responsibilities of NRC

The purpose, authority, composition, duties and responsibilities of the Nomination and Remuneration Committee are delineated
in its Charter. Some of the major responsibilities of the NRC are as follows:
• Recommend a policy on Board’s diversity taking into consideration age, gender, experience, education and nationality;
• Formulate the criteria for determining qualification and independence of Directors;
• Identify persons who are qualified to become Directors and in top level executives and recommend their appointment
and removal;
• Formulate the criteria for evaluation of performance of Independent Directors and the Board;
• Recommend a policy to the Board relating to the remuneration of the Directors, and top level executives;
• Assess that the level and composition of remuneration is reasonable and sufficient to attract, retain and motivate suitable
Directors to run the company successfully;
• Evaluate that remuneration to Directors and top level executives involves a balance between fixed and incentive pay reflecting
short and long-term performance objectives appropriate to the working of the company and its goals;
• Identify the company’s needs for employees at different levels and determine their selection, transfer or replacement and
promotion criteria;
• Recommend and review annually the Company’s human resources and training policies;
• Recommend the remuneration policy of the Company, particularly in relation to the yearly increment principle; and
• Recommend the Code of Conduct for the Chair of the Board, other Board Members and Chief Executive Officer of the Company.
56
Nomination, Election and Selection of Directors

The NRC is responsible to ensure that the procedures for appointing new Directors are transparent and rigorous. The Board places
great emphasis on ensuring its membership reflecting diversity in broader sense. A combination of age, gender, experience,
Grameenphone Ltd.
Annual Report 2018
Nomination and Remuneration Committee Report

ethnicity, educational background, nationality and other relevant personal attributes in the Board is important in providing a
range of perspectives, insights and challenges needed to support right decision making. Recruitment and selection processes
for Board members identify candidates with the most suitable skills, knowledge, experiences and personal values. Qualifications
stated explicitly in Grameenphone’s corporate governance promote the equitable and unbiased selection.
Evaluation of the Board

The NRC is responsible for ensuring the effectiveness of the Board. The Board shall carry out an evaluation once a year of its
work, functions, performance as well as monitoring of internal control over financial reporting for the preparation of external
financial statements and the safeguarding of assets. The evaluation process is led by the Chair of the Board and assisted by the
Company Secretary. Each Director is required to complete a confidential pre-set questionnaire. The evaluation includes a review
of the administration of the Board and its committees covering their operations, agenda, reports, and information produced for
consideration, and relationship with Management.
Top Level Executive Selection and Remuneration Policy

The performance of the Company depends upon the quality of its Directors and Top Level Executives. To prosper, the Company
must attract, motivate and retain highly skilled Directors and Executives.
The recruitment process for Top Level Executives shall be transparent, non-discriminatory, diversified and in alignment with the
Codes of Conduct. Recruitment standards shall support Grameenphone’s reputation as an attractive employer.
The objective of Grameenphone’s remuneration policy is to secure that reward for Top Level Executives shall contribute to
attracting, engaging and retaining the right employees to deliver sustainable value for shareholders in accordance with the
Grameenphone behaviour.
Remuneration for Board of Directors

Each Director shall receive reasonable remuneration from the Company for every meeting attended, plus travelling expenses
from and to usual place of residence and an allowance per day for the number of days spent attending, travelling to and returning
from Board meetings. The amounts will be determined by the Shareholders at the General Meeting.
Activities of the NRC during the reporting period

Since the NRC was constituted as a sub-committee of the Board on 11 December 2018, no meeting of NRC was held during the
reporting period.
For and on behalf of the Nomination and Remuneration Committee of Grameenphone Ltd.
Prof. (Dr.) Jamilur Reza Choudhury

Chair
Nomination and Remuneration Committee
27 January 2019
57
Grameenphone Ltd.
Annual Report 2018
Nomination and Remuneration Committee Report

Financial Analysis
SIX YEARS’
FINANCIAL SUMMARY
2018 2017 2016 2015 2014 2013
Financial Performance in million BDT
Revenue 132,832 128,436 114,862 104,754 102,663 96,624
Operating Profit 57,379 49,954 41,566 36,964 36,896 33,199
Profit before Tax 55,589 47,322 38,178 34,922 34,855 32,852
Net Profit after Tax 35,160 27,423 22,526 19,707 19,803 14,702
Financial Position in million BDT
Paid-up Capital 13,503 13,503 13,503 13,503 13,503 13,503
Shareholders' Equity 42,367 35,121 33,572 30,625 31,365 31,141
Total Assets 138,713 130,220 130,500 132,450 130,673 135,221
Total Liabilities 96,346 95,099 96,927 101,824 99,308 104,080
Current Assets 13,369 20,658 10,941 11,928 14,865 16,993
Current Liabilities 77,433 74,541 68,079 67,625 61,402 78,580
Non current Assets 125,345 109,562 119,558 120,522 115,808 118,227
Non current Liabilities 18,914 20,558 28,848 34,199 37,906 25,500
Cash Flows in million BDT
Net Cash generated from Operating Activities 60,413 57,771 46,152 38,791 31,255 37,081
Net Cash used in Investing Activities (30,200) (12,944) (19,839) (19,907) (20,069) (28,111)
Net Cash used in Financing Activities (36,699) (35,336) (27,553) (19,491) (10,972) (7,727)
Financial Ratios
Current Asset to Current Liability 0.17 0.28 0.16 0.18 0.24 0.22
Debt to Equity 0.43 0.56 0.81 1.12 1.08 0.80
Operating Profit Margin 43% 39% 36% 35% 36% 34%
Net Profit Margin 26% 21% 20% 19% 19% 15%
Return on Equity 91% 80% 70% 64% 63% 44%
Return on Assets 26% 21% 17% 15% 15% 12%
Ordinary Shares Information
Ordinary Shares Outstanding (in million) 1,350 1,350 1,350 1,350 1,350 1,350
Face Value per Share (BDT) 10 10 10 10 10 10
Cash Dividend on Paid up Capital1 280% 205% 175% 140% 160% 140%
Dividend payout1 108% 101% 105% 96% 109% 129%
Net Asset Value per Share (BDT)
2
31.38 26.01 24.86 22.68 23.23 23.06
Net Operating Cash Flow per Share3 (BDT) 44.74 42.78 34.18 28.73 23.15 27.46
Earnings Per Share (BDT)
3
26.04 20.31 16.68 14.59 14.67 10.89
*Gain/loss on disposal of property, plant and equipment has been included in operating profit
1
Including proposed dividend
2
Based on BDT 10 equivalent ordinary share outstanding at 31 December
58
3
Based on weighted average number of share of BDT 10 each
Grameenphone Ltd.
Annual Report 2018
Six Years’ Financial Summary

Revenue Operating Profit Net Profit After Tax

(million BDT) 3.4% (million BDT) 14.9% (million BDT) 28.2%
18 132,832 18 57,379 18 35,160
17 128,436 17 49,954 17 27,423
16 114,862 16 41,566 16 22,526
15 104,754 15 36,964 15 19,707
14 102,663 14 36,896 14 19,803
13 96,624 13 33,199 13 14,702
Capex Total Assets Total Equity

(million BDT) 134.1% (million BDT) 6.5% (million BDT) 20.6%
18 33,994 18 138,713 18 42,367
17 14,521 17 130,220 17 35,121
16 21,097 16 130,500 16 33,572
15 19,269 15 132,450 15 30,625
14 15,164 14 130,673 14 31,365
13 29,925 13 135,221 13 31,141
Net Operating Cash Net Asset Value Earnings Per Share

Flow Per Share (BDT) 4.6% Per Share (BDT) 20.6% (BDT) 28.2%
18 44.74 18 31.38 18 26.04
17 42.78 17 26.01 17 20.31
16 34.18 16 24.86 16 16.68
15 28.73 15 22.68 15 14.59
14 23.15 14 23.23 14 14.67
13 27.46 13 23.06 13 10.89
Return on Assets % Return on Equity % Subscriber ('000)

5.1 pp 10.9 pp 11.3%
18 26.1% 18 90.7% 18 72,732
17 21.0% 17 79.8% 17 65,327
16 17.1% 16 70.2% 16 57,954
15 15.0% 15 63.6% 15 56,679
14 14.9% 14 63.4% 14 51,504
13 11.7% 13 44.2% 13 47,110
Market Share % ARPU* AMPU**

1.4 pp (BDT) -5.6% (Minutes) -8.9%
18 46.3% 18 157 18 234
17 45.0% 17 167 17 256
16 45.8% 16 162 16 258
15 42.4% 15 155 15 244

59
14 42.8% 14 165 14 243
13 41.4% 13 176 13 249

Grameenphone Ltd.
Annual Report 2018
* ARPU - Average Revenue Per User ** AMPU - Average Minutes Per User
Six Years’ Financial Summary

Financial Analysis
VALUE ADDED
STATEMENT 2018 in '000 BDT
2018 % 2017 %
Value Added
Revenue 132,831,967 128,435,814
Other Income including Interest Income 567,730 683,662
Indirect Taxes 25,351,061 25,142,161
158,750,758 154,261,637
Less: Cost of Network and Services 36,731,123 39,484,865
Available for Distribution 122,019,635 100% 114,776,772 100%
Distributions
Employees 8,912,812 7.3% 8,063,884 7.0%
Government 53,544,495 43.9% 53,631,124 46.7%
Providers of Finance:
Financial institutions 2,073,919 1.7% 1,865,155 1.6%
Shareholders 34,949,231 28.6% 27,880,018 24.3%
99,480,457 81.5% 91,440,181 79.7%
Value Reinvested and Retained
Depreciation and Amortisation 22,539,178 18.5% 23,336,591 20.3%
Retained Profit - - - -
22,539,178 18.5% 23,336,591 20.3%
122,019,635 100% 114,776,772 100%
Distribution of Value Added
2018 2017
43.9% 46.7%
Government
28.6% Shareholders 24.3%
18.5% Depreciation & 20.3%

Amortisation
7.3% 7.0%
Employees
1.7% Financial 1.6%

Institutions
60
Grameenphone Ltd.
Annual Report 2018
Value Added Statement 2018

CONTRIBUTION
TO THE NATIONAL
EXCHEQUER
The collective contribution to the National Exchequer since inception up until December 2018 was BDT 669.5 billion, of which
BDT 84.2 billion was made in 2018. Out of total BDT 669.5 billion, BDT 600.4 billion was made on account of direct tax, VAT and
duties through National Board of Revenue (NBR) and Bangladesh Telecommunication Regulatory Commission (BTRC), including
BDT 33.9 billion on account of renewal of 2G licence and spectrum in 2011-13, purchase of additional spectrum in 2008, BDT 17.2
billion on account of 3G licence and spectrum fee for 10MHz in 2013-14, BDT 11.4 billion on account of 4G licence acquisition,
spectrum fee for 5MHz and 2G technology neutrality in 2018 and BDT 69.1 billion as indirect payments on account of local and
foreign staff income taxes, and withholding taxes on operating expenditure payments. Grameenphone has been recognised by
the National Board of Revenue as the largest corporate taxpayer in the Telecommunication sector, in 2015, 2016 and 2017.
Grameenphone has also generated direct and indirect employment for a large number of people over the years. As of 31 December
2018, the Company had 2,313 permanent full time employees, in addition to the many people who are directly and indirectly
dependent on Grameenphone for their livelihoods, working for the distributors, retailers, suppliers, vendors, contractors and
other business partners.
With the payment of taxes and the investment in the network, Grameenphone is making a significant contribution to the country’s
growth and development.
Year-wise Contribution to the National Exchequer as of 31 December 2018

84,229
69,076
62,667
61,836
59,289 58,915 58,584
51,130
36,017
31,718
28,704
24,405
15,397
10,405
6,774
4,366
2,792
1,646
10 344 165 365 629
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Withholding Taxes - 11 18 22 28 36 82 143 256 445 748 1,130 1,185 1,3 98 2,57 5 7,107 5,998 5,933 6,17 3 6,909 7,774 9,342 11,740
BTRC 10 34 32 75 213 57 5 712 650 1,168 1,239 2,523 4,766 8,7 94 7,166 4,30 8 18,63 7 19,866 24,983 14,179 7,300 7,904 8,545 20,284
NBR - 298 115 268 388 1,03 5 1,999 3,572 5,350 8,7 21 12,126 18,509 21,739 20,140 29,134 33,545 36,803 38,159 38,564 36,922 42,906 43,949 52,204
Total Payment 10 344 165 365 629 1,646 2,792 4,366 6,774 10,405 15,397 24,405 31,718 28,704 36,017 59 ,289 62,667 69,076 58,915 51,130 58,584 61,83 6 84,229
61
Figures in BDT million

Grameenphone Ltd.
Annual Report 2018
Contribution to the National Exchequer

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DIRECTORS'
REPORT
For the Year Ended 31 December 2018
Dear Shareholders,
On behalf of the Board of Directors and Management, I welcome you all to the 22nd Annual General
Meeting (AGM) of Grameenphone Ltd. We have the pleasure to place herewith the Directors’ Report and
the Auditor’s Report, together with the Audited Financial Statements of the Company, for the year ended
31 December 2018 for your valued consideration, approval and adoption.
2018: A year of Solidifying Market Leadership

In 2018, Grameenphone reached the 72 million subscribers milestone, a true testament of the trust the people of Bangladesh
have in the Company. Grameenphone was the first operator to launch a 4G network in 2018. This is a result of Grameenphone’s
determination to serve its customers in the best possible way, ushering in new avenues for empowering societies by building and
strengthening the country’s communication and connectivity with the rest of the world. Despite the fiercely competitive market,
Grameenphone continued to contribute to its iconic status in the Bangladesh communications industry.
Overall, the year was marked by significant changes in the industry. Among these, Grameenphone closed 2018 with 3.4%
year-on-year revenue growth over 2017. Strong drive in all segments of the business recorded consolidated revenue of
BDT 132.8 billion for 2018. In the same timeframe, Grameenphone earned a yearly average Daily Subscription & Traffic Revenue
of BDT 336.9 million, which is 7.0% up from that of 2017. The Company ended the year with 72.7 million subscribers, which
represents a 11.3% sub base growth from last year.
The year 2018 marks another milestone as Grameenphone introduced the new number series “013” in addition to existing “017”
series with same portfolio of products and the same quality of services that we are known for.
In the framework of significant investment in new 4G LTE technology, spectrum acquisition and network capacity enhancement,
data revenue continued its strong pace during the year to record 21.0% YoY growth. Rapid rollout of 4G data networks, fast
proliferating mobile applications along with affordable smartphones in the market enabled internet to enter the customers’
everyday lives in newer ways. With more than five thousand LTE sites, Grameenphone received the recognition of the fastest
internet network in the country by Ookla, the global leader in internet testing and ended the year with 37.1 million internet
subscribers. 2018 also resonates Grameenphone’s passion for driving its vision towards inclusive empowerment of communities
by leading the growth of technological services that are relevant and affordable to communities.
Telecommunication Industry Scenario

Bangladesh has made significant progress in growing its economy and improving the lives of its people in the last few years. The
country is now working to reach upper-middle-income country status by 2021- the year that marks the 50th anniversary of its
independence. It has been able to maintain a sustained economic growth rate of 7.86% in the last fiscal year.
Backed by this impressive economic growth, the Telecom sector of the country has made remarkable progress throughout 2018.
At the end of 2018, there were 88 million unique mobile subscribers in Bangladesh, making it the fifth largest mobile market in
Asia Pacific and ninth largest in the world. With subscribers owning on average 1.8 SIM cards, there were a total of 159 million
connections in 2018, representing connection penetration of 94.5%. The Data market has also seen significant growth of around
15% and the total mobile internet connections stood at 87 million. With 45.3% unique mobile internet subscriber, there is still
potential for further growth in data services. 2018 was an eventful year for the Telecom Industry in Bangladesh. A lot of initiatives
have been taken and implemented by the Government and from the Industry side as well. The Government was very keen to
63
introduce 4G service in Bangladesh and 4G licences were offered in the beginning of 2018. All the Mobile operators launched 4G
services in the 1st Quarter of 2018. At the end of the year, the 4G subscriber base reached 5.5 million, with 3G and 2G subscriber
base at 61 million and 89 million respectively. The Government released more spectrum through the auction process in the 900,
Grameenphone Ltd.
Annual Report 2018
Directors' Report
Financial Analysis
1800 and 2100 MHz band and the long expected Technology Neutrality was sold to operators across the spectrum band upon
payment of a one-time fee. Mobile Number Portability (MNP) was another agenda of Government that has been implemented in
the 4th quarter. The country has sent its own satellite into orbit. A test trial of 5G network was also run in 2018.
Telecom Regulatory Environment

Despite tremendous development in the Telecom and ICT sectors in 2018, the licencing regime in Bangladesh remains still
unpredictable and highly fragmented. Streamlining the regulations remains a challenge for the overall telecommunication
industry. The regulator has revised and introduced many directives sidestepping regulatory modernisation and licence unification.
The regulator has initiated consultations with the industry in many areas including Infrastructure Sharing (Active & Passive
Sharing), MVNO (Mobile Virtual Network Operator), ILDTS policy revision, TVAS licencing, Radiation guidelines, Tariff regulation,
National Frequency Allocation Plan, and QoS guidelines, to name a few.
In 2018, the regulator published a number of new regulations, directives and guidelines such as QoS guidelines, SMP Regulations,
TVAS guidelines, Tower Co. licencing guidelines. Additionally, a unified rate (i.e. no difference between on-net and of-net) for tariff
on voice and interconnections was introduced. The newly introduced Tower Co. licences, TVAS licences and plan for additional
IGW licence have created further unpredictability in the licencing regime. The BTRC Audits, guidelines on Service Quality and
Centralised Monitoring System pose significant risks for future demands or penalties on the industry.
The mobile sector is still being treated as a low-hanging fruit for revenue collection. Therefore, the Spectrum price in 2018
auction remained very high even though a long consultation process took place. As a result, only 33% of available spectrum
was sold from 900, 1800 and 2100 MHZ band. While BTRC introduced Technology Neutrality in the Spectrum Auctions, mobile
operators had to pay an additional fee for this feature. The Government earned around BDT 5,268.51 crore from the Spectrum
Auction and as Technology Neutrality fees. The Government may consider releasing more spectrum in the near future from the
unsold blocks or from other lower bands. Though Bangladesh has one of the lowest ARPU levels in the world, in 2018, BTRC
collected BDT 6,445.36 crore in non-tax revenue, up 58.49% from the previous fiscal year. The lion’s share of the income in 2018
came from Spectrum Auction in February, 2018 and launch of 4G by mobile operators. Mobile sector taxes, fees and Spectrum
prices are considered as quick source of revenue for the national exchequer.
Capital Market Overview 2018

The Bangladesh stock market witnessed a negative year in 2018 following good performances over the previous two years. Total
turnover decreased significantly by 36.9% from 2017. The fuel and power, textile and life insurance sectors were among the
sectors that posted the highest returns. In 2018, foreign turnover decreased by 13.8% from 2017, witnessing the lowest amount
of foreign turnover in the last three years.
On the Dhaka Stock Exchange (DSE), the broad and free float weighted index DSEX dropped by 13.75% driven by financial and
large-cap stocks. Daily average turnover value decreased by 37.45% compared to the preceding year.
Grameenphone share price dropped by 29.6%, closing at BDT 361.0 at year-end with a daily average turnover value of BDT 89.2
million (BDT 8.92 crore). During the year, the highest value of Grameenphone share price was BDT 513.1 and the lowest was BDT
350.6. Grameenphone market capitalisation on 26 December 2018 stood at BDT 487.46 billion (BDT 48,746 crore), representing
14.7% of the DSE’s total equity market capitalisation.
*Source: Dhaka Stock Exchange
Innovative Product & Services

Grameenphone continued its efforts to develop innovative, useful new products and services to meet customer needs. The core
strengths of Grameenphone’s products are simplicity and relevance. We offer the most relevant products to our customers and
the easiest way for them to manage their mobile needs. As a further boost, the Company continued its focus on digital self-care
apps. MyGP, the online self-care app, has taken digitising self-care to new heights and has been downloaded over 13 million
times. Our Digital lifestyle app, WowBox, has also crossed 14 million downloads. WowBox allows customers to enjoy telecom
products, lifestyle products and benefits, as well as to participate in trending discussions and activities. FlexiPlan; the first app in
the industry where users can design their own core product has crossed more than 12 million downloads already.
Since the inception of the industry, there were different voice tariffs for on-net & off-net calls. This voice regime was inherent
64
to Grameenphone’s valued subscriber base for the past 15 years. However, in 2018 there was a change to unified floor tariff,
executed overnight, where call rates were made equal for both on-net & off-net calls. The industry then saw the onset of Mobile
Number Portability (MNP) where customers could switch network carriers with their phone number unchanged. In data, there
Grameenphone Ltd.
Annual Report 2018
were statutory changes in Value Added Tax for data which affected the Company’s strong data sub base.
Directors' Report
Grameenphone continued to innovate and transform itself to strengthen its leadership as the best digital service provider in
Bangladesh, serving the escalating demand for data amongst customers. During the year, Grameenphone made significant
investment in new 4G technology and capacity building; capitalising on which, the Company recorded 37.1 million active
internet users, which is 51.0% of the total subscriber base, and is 19.0% higher from the number of active internet users in 2017.
Grameenphone’s journey to simplify digitalisation initiatives and offering relevant products and services have not only driven the
financial performance but also strengthened the brand equity.
Customer Experience
Grameenphone always strives to provide better customer experience, emphasising customer value and investing in enhanced
quality of services. Grameenphone continued to honour this commitment in 2018 and strove to achieve excellence. Simplifying
and digitising the customer facing processes, allowed the customers to enjoy simplified customer journey through self-service
over assisted channels. MyGP app, the fastest growing app with a consistent user base, fulfils customer’s day-to-day needs.
MyGP Enterprise, an automated service aggregator, has made enterprise clients’ lives faster and simpler. Throughout the year
Grameenphone continues to upgrade service quality by eliminating customer pain points and further simplifying the product
portfolio. All these activities have resulted in an industry-leading Net Promoter Score (NPS), along with increasing customer
satisfaction rates and the lowest complaint rates.
Technology towards a new era in 2018

In 2018, we launched our high-speed 4G LTE network. Data consumption has almost doubled since 2017 and 20%+ of our data
volume is now being carried on the 4G network. 7 million unique users latched onto 4G LTE, which has an average speed of ~10
Mbps.
Grameenphone acquired new spectrum, a 4G licence and Tech neutrality on existing spectra. It was the first to launch 10MHz
LTE immediately after licence was awarded by the regulator. By the end of 2018, Grameenphone rolled out ~ 5,009 LTE sites all
across the country which has led the rapid growth in data consumption.
Along with the above 4G numbers, 1400+ new 2G sites have been aired this year and 2300+ new 3G sites have been also
delivered ensuring the highest number of 3G sites across the country and the widest mobile broadband coverage.
Grameenphone users are now enjoying superior video streaming on the 4G network. This has helped us enhance our very own
video streaming service, Bioscope. Other digital services such as MyGP3.0, Tonic, Gpay, Flexiplan, GPMusic, Shoparu etc. are
also enriched with different features and capabilities. IT transformation and agile processes have helped in smooth service
operations and product delivery. The Information Security uplift program and cyber security awareness/initiatives were promoted
to employees and stakeholders.
In accordance with regulatory requirements, we had delivered Mobile Number Portability (MNP) and the Electronic Subscriber
Application Form (eSAF). We were also able to secure and introduce our new number series “013” this year.
We are moving many elements of our IT and Telecom infrastructure into virtual or cloud platforms that help reduce our physical
footprint and make the network future ready to cope with fast data growth, build network resilience and ensure faster time to
market for service incorporation and efficient operations. All our subscriber profiles and 50% of our data core have been migrated
to the cloud platform.
The whole telecom industry has faced a significantly higher number of fibre cuts than previous years, which has led to great
challenges in maintaining network availability. However, armed with strong surveillance and field teams, the Company has
managed to keep the network up and running amidst such severe challenges.
Altogether, 2018 had been a year of strong network growth and great technological advancement, in line with the business
success and the changing environment
GP Accelerator: A Major Enabler of Digital Growth

Empowering societies is what Grameenphone believes in and has been working to do over the last two decades in Bangladesh.
In this era of digitalisation, it is important for us to step up and be a part of, and a catalyst for, the inevitable change. In that light,
65
Grameenphone has been working closely with the local community of developers, innovators and startups outside through a
platform called ‘GP Accelerator’ and inside, through ‘Whiteboard’.
Grameenphone Ltd.
Annual Report 2018
Directors' Report
Financial Analysis
The GP Accelerator initiative is a structured approach to help early stage tech startups through a curriculum-based program
that provides seed funding, expert mentors, top-notch training, curated access to Grameenphone assets, investor access and
more. The GP Accelerator program, stepping into its third year, is now seen as a credible platform and a source of inspiration for
many as we have performed well in empowering the selected startups. The alumni of the program have been able to quadruple
the value of their companies in just six months with two of the portfolio companies already crossing the USD 5 million valuation
mark. Whiteboard, on the other hand, has been engaging and enabling the innovation community at large and providing
Grameenphone access to a huge league of talented coders, designers and ideators.
Staying Relevant with Sharpened Focus and Agility

Grameenphone is on a journey of becoming dynamic digital organisation with continuous innovation, collaboration, and agility.
We are continuously upskilling our existing resources and onboarding required skill sets to stay relevant in the market. The ICT
and Digital arena continues to be our focus area on our journey to becoming our customers’ preferred digital partner. The Agile
Way of Work has already been applied into Skitto, Shoparu, Bioscope and in different other projects. The Company also focuses
on digital employee experiences by introducing HR self-services.
We have introduced the “4 Behaviours” as part of our continuous cultural initiatives. Gender Diversity has been a top priority
agenda in 2018. We ensured female representation in majority of the divisional management teams, along with involving
promising females in Company’s critical projects. We have continued exploring the best fit operating models across the divisions
and we ended 2018 with a regular headcount of 2,313.
Grameenphone has seen one of its best performances in the year 2018. This has only been possible due to the capable and
engaged workforce driving clear targets towards achieving our vision of Empowering Societies.
Sustainability Initiatives toward Reducing Inequalities

Bangladesh has entered the digital era and we have just started to reap the benefits of digitalisation and connectivity. At
Grameenphone, we want to utilise the internet’s role in bridging the digital divide and enabling empowerment of our people.
Leveraging on our strength of connectivity, our services have introduced endless opportunities to communities. Our pledge is to
reduce inequalities by providing digital services that uplift the many, not just the few. Thus, Grameenphone’s vision of empowering
societies remains at the core of our Sustainability initiatives. In this light, our efforts continue toward sustainability, with focus on
Social Development Goals (UN SGS) and responsible business practices.
In 2018, our commitment continues to remain on reducing inequalities by providing a safe digital learning experience for our
young minds. In this endeavour, we have educated over 400,000 school children across the country through Online Safety
trainings and sensitised more than 70,000 parents, teachers and guardians. The Child Helpline 1098 services have been
expanded to provide counselling support for issues related to child online safety. Our social advocacy campaign on online safety
reached over 10 million viewers on social media. We have further strengthened our supply chain sustainability by ensuring 100%
supplier code endorsement, unannounced inspections and capacity building through training.
Moving toward Green

Grameenphone understands that its business has an impact on the environment and climate. This is why Grameenphone is
committed to a long-term sustainable approach to caring for and safeguarding the environment and its climate impact.
Grameenphone has been conducting its business in such a way so to prevent pollution, minimise, as far as is appropriate,
the adverse impact on the environment by its activities, continually improve its performance against targets associated with
its significant environmental aspects and comply with all applicable environmental legislation. The Company has taken a lot
of green initiatives to reduce its carbon footprint individually and collectively. Since 2008, successful initiatives have helped
Grameenphone reduce its carbon intensity and consumption of valuable resources, such as fuel, paper, and electricity. Detailed
information on the initiatives of the Company is provided in the Climate Change section of the Annual Report on page 22.
Health, Safety and Security

Grameenphone focuses on continuous improvement of Health, Safety and Security (HS&S) to establish a safe and healthy
work environment. Keeping “People First” in consideration, Grameenphone puts utmost priority on promoting a HS&S culture.
Special emphasis is given on designing each establishment and with adequate placement of safe, healthy & secure systems and
procedures. Routine risk assessment is conducted to identify workplace hazards, and control mechanisms are enforced as per
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international guidelines and best practices. Grameenphone aspires to lead in the HS&S area within the country through proactive
approach towards implementation of HS&S management systems. In order to drive this agenda, management commitment, line
management ownership and employee responsibility are the key contributing factors in embedding a strong HS&S culture in the
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Annual Report 2018
organisation.
Directors' Report
In the year 2018, extensive focus has been given to road traffic safety through training and awareness, proactive and reactive
monitoring, e-communication and campaigns. Safety rules have been incorporated in the policy and in relevant manuals to
reinforce road traffic safety. Proactive transport safety awareness is made prior to any business travel and vehicle movements
have been monitored. HS&S training and awareness have been carried out with special focus on managerial role-responsibilities
to encourage ownership. Apart from employees, in-house contractors too have participated in various training and awareness
sessions. Safety rules have been incorporated in local manual and Management Team members have engaged themselves in
campaigns. Circle HS&S awareness including training for high risk segments have been being carried out. Emergency evacuation
drills have been conducted in all circles. HS&S committee meetings have been conducted and the results have been shared in
the monthly business reviews. Risk mapping, risk assessment, vehicle inspection, background verification, hazard report and
mitigation have been carried out to uphold the HS&S culture.
Corporate Governance
Our goal has always been to enhance our corporate value, maintain our sustainable long-term development and generate greater
returns for our shareholders. In order to achieve the above objectives, the Board of Directors and Management of Grameenphone
are pledge bound to continue implementation of the highest standards of Corporate Governance in the Company through a
culture of accountability, transparency and well-understood policies and procedures. The Board of Directors of Grameenphone
has always played a pivotal role in meeting all stakeholders’ interests and is committed to upholding the same in future as well.
In line with the same, the Company has complied with the conditions as stipulated in the Corporate Governance Code issued on
03 June 2018 by BSEC. In this connection, the status of compliance has been annexed to this report as Annexure-I. Further, a
certificate of compliance from ACNABIN, Chartered Accountants, confirming compliance of conditions of Corporate Governance
Code, as stipulated under condition 9(i) of the BSEC Code is also annexed to this report as Annexure-VI.
Disclosure/Statements Pursuant to the Provisions of the BSEC’s Corporate Governance Code 2018
• Industry Outlook and Possible Future Developments

The mobile industry continues to transform the lifestyle of Bangladeshis. Societies become more connected, enabling
seamless interaction between all aspects of an individual’s digital life. Moreover, rapid expansion of mobile broadband and
falling smartphone prices accelerated rapid development of locally relevant digital content, which are vital to the progress of a
digital society. The mobile industry dynamic in Bangladesh has also changed significantly over the last decade. The emergence
of new digital services, convergence of technologies/IoT, increased financial inclusion, and falling smartphones prices have
resulted in a huge appetite for high speed data. The number of mobile internet users in Bangladesh has reached 86 million
and is increasing, which already accounts for half of the country’s population (median age 27 years).
Both the Government and the mobile telecom industry have exciting opportunities to unlock digital transformation for millions
of citizens. Grameenphone has already started enabling future products and operating models with successful launches of
new apps, digital services, personalised customer experience, IoT and M2M platforms to capitalise on their future potential.
Additionally to support the Digital Bangladesh vision, the Government commenced several schemes like National satellite
project, rural fibre access, electronic registration process, building national data center, ICT parks, and an early test launch of
5G service for promoting mobile broadband adoption and accelerating the information technology sector.
• Segment/Product Wise Performance

Grameenphone essentially provides similar products and services to customers across the country. Grameenphone reviews
revenue performance of different services which have been disclosed under notes to the Financial Statements.
Grameenphone posted BDT 132.8 billion of total revenue for the year 2018 with 3.4% increase compared to the previous year.
The growth in revenue was mainly driven by voice and data revenue partly offset by lower revenue from customer equipment
and VAS. In 2018, Grameenphone changed the business model for Handset and VAS from gross to net recognition of revenue.
Adjusting this effect for the year 2017, the normalised growth for revenue is 6.3%.
Voice revenue has increased by 6.6% from 2017 due to a 2.6% increase in outgoing minutes driven by promotional activities
and higher customer acquisition.
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Grameenphone Ltd.
Annual Report 2018
Directors' Report
Financial Analysis

+21.0% -8.6% -10.4% -33.5%
+6.6% 4,426 -92.2%
501 899
5,590 1,938
2,282
+3.4%
132,832
128,436
4,396
Revenue Growth
Voice Data Other Interconnection VAS and Customer
17 traffic Revenue SMS Equipment 18
Data revenue has increased by 21.0% from 2017 mainly driven by 18.9% growth in the number of data users and 82.9% growth
in data usage volume in 2018. This data growth was enabled through introduction of 4G network and coverage expansion by
adding 5,009 4G sites and effective campaigns in 2018.
Revenue from customer equipment mainly includes sale of mobile devices, i.e. handsets, branded internet modems and VTS.
Customer equipment revenue was lower mainly for net recognition of Handset revenue in 2018.
Other mobile revenue includes revenues mainly from telecom infrastructure sharing, commission from mobile financial
services etc.
Interconnection revenue is generated from the incoming traffic through the calls generated from outside Grameenphone
network. Interconnection revenue was lower in 2018 compared to 2017 following a decrease in incoming minutes from
international operators. Also, the new interconnection call termination rate introduced by BTRC led to the decrease in
interconnection revenue.
VAS and SMS includes Content service, SMS and MMS revenue. VAS and SMS revenue fell by 33.5% from 2017 mainly due to
net recognition of VAS revenue in 2018.
• Review on Operating Expense, Operating Profit Margin and Net Profit Margin
Operating expenses consist of cost of material and traffic charges, salaries and personnel cost, operation and maintenance,
sales, marketing and commission, revenue sharing, spectrum charges and licence fees, depreciation and amortisation expense,
and other expenses. Operating expense for 2018 was BDT 75.4 billion with 3.9% decrease compared to last year. The decrease
is mainly due to lower cost of material and traffic charges, other operating expenses, salaries and personnel cost, depreciation
and licence fees, and partly offset by higher operation and maintenance expense and sales, marketing and commissions cost.
57,379
35,160
49,954 27,423
38.9% 43.2% 26.5%

21.4%
17 18 17 18
 Operating Profit (Mn BDT) ― Operating Profit Margin  NPAT (Mn BDT) ― NPAT Margin
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As an effect of the higher revenue growth along with savings in operating expenses, operating profit for the year 2018 increased
by BDT 7.4 billion from last year. Profit before tax for 2018 also increased by BDT 8.3 billion from last year mainly because of
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Annual Report 2018
lower finance cost of BDT 842 million.
Directors' Report
Net profit margin for the year 2018 was 26.5% compared to 21.4% in previous year. Net profit after tax in 2018 increased by 28.2%
due to significant saving in operating expenses of BDT 3.0 billion and higher revenue growth in 2018. As a result, Earnings Per
Share (EPS) for the year 2018 stood at BDT 26.04 compared to BDT 20.31 of 2017.
• Risks & Concerns

Every business faces uncertainties or risks in its operating environment, which, if not managed and mitigated, would not only
disrupt the achievement of its strategic and operational objectives but may also cause losses that could result in financial and
reputational loss as well. As with other co-existing companies, Grameenphone’s business is also exposed to diverse risks that
arise both from internal as well as external fronts. Apart from uncertainties stemming from an unstable regulatory regime, the
Company has always been prepared for issues stemming from competing markets, operational issues, legal knots, interest
and exchange rate volatilities, and potential changes in policies at the national or global level. However, Grameenphone has
a befitting risk management policy and a periodic monitoring system to address the concerns and uncertainties that are likely
to hit the Company’s business activities, operations, liquidity and financial position for future performances. This aspect is
discussed in the “Enterprise Risk Management” section of the Annual Report on page 52.
• Directors’ Responsibilities for Financial Statements

The Board is responsible to present a true and fair view of the Company’s financial performance and position as a part of good
governance; and to that end the Directors confirm to the best of their knowledge that:
a. The Financial Statements, prepared by the Management of the Company, present fairly its state of affairs, the result of its
operations, cash flows and changes in equity;
b. Proper books of account of the Company have been maintained;
c. Appropriate accounting policies have been consistently applied in preparation of the Financial Statements and that the
accounting estimates are based on reasonable and prudent judgments;
d. International Financial Reporting Standards (IFRSs) have been followed in preparation of the Financial Statements and
any departure therefrom has been adequately disclosed;
e. The system of internal control is sound in design and has been effectively implemented and monitored; and
f. There is no doubt upon the Company’s ability to continue as a going concern.
• Declaration of the CEO and the CFO on Financial Statements

As required under BSEC’s Corporate Governance Code, the declaration by the Chief Executive Officer (CEO) and the Chief
Financial Officer (CFO) on Financial Statements 2018 to the Board as prescribed is annexed to this report as Annexure–IV on
page 86.
• Minority Interest
Grameenphone believes that good Corporate Governance involves open and trusting cooperation between all stakeholders
involved in the Company, including the owners of the Company – the Shareholders. The Board of Directors is committed to
ensuring the highest standards of governance designed to protect the interests of all stakeholders, including the rights of its
minority shareholders while promoting integrity, transparency and accountability. The Board of Directors shall at all times act
in a manner that will be in the best interest of the Company.
• Management’s Discussion and Analysis

Management’s Discussion and Analysis signed by the CEO presenting detailed analysis of the Company’s position and
operations along with a brief discussion of changes in the financial statements and other requirements of the Corporate
Governance Code is disclosed in Annexure-V of this report on page 87.
• Other Disclosure
n No items of income and expense are presented as ‘extraordinary gain or loss’ in the Financial Statements.
n All transactions with related parties have been made on a commercial basis. Details of related parties and related party
transactions have been disclosed in note 41 to the Financial Statements as per the requirements of relevant IFRS.
n The Grameenphone Initial Public Offering (IPO) was made in 2009 and the fund raised thereby has already been utilised
by 30 June 2010 as reported to the regulators. No further equity instrument has been issued since then.
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n The financial results of the Company have continued to improve since the IPO in 2009 as reflected in the yearly Financial
Statements.
No significant variations have occurred between quarterly and final financial performances of the Company during 2018.
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Annual Report 2018
Directors' Report
Financial Analysis
n No remuneration was given to the Directors of the Board apart from attendance fees in connection with Board and Board
Sub-Committee meetings. During the year 2018, attendance fees in connection with Board and Board Sub-Committee
meetings were BDT 1,325,562 (2017: BDT 1,296,122). However, payments to Foreign Directors, not remitted as yet, have
been provided for in the accounts of the relevant year.
n The key operating and financial data for the last five years have been disclosed under Financial Analysis section of this
Annual Report on page 58.
n Grameenphone has declared interim dividend and recommended final dividend for the year 2018.
n Grameenphone has not declared Bonus Share as Interim and Final Dividend in 2018.
n During 2018, a total of 14 (fourteen) Board meetings were held, which met the regulatory requirements in this respect.
The attendance records of the Directors are shown in Annexure-II to this report.
n Shareholding pattern of the Company as on 31 December 2018 is shown in Annexure-III of this report.
Annual Results and Allocations

The Directors take pleasure in reporting the financial results of the Company for the year ended 31 December 2018 and
recommended the appropriation as mentioned in the ‘Appropriation of Profit’ table below:
2018 2017
Profit available for Appropriation
Profit/ (Loss) after Tax 35,160 27,423
Other Comprehensive Income (Loss), Net of Tax (211) 457
Un-appropriated Profit brought Forward from Previous Year 13,762 12,213
Adjustment on Initial Application of IFRS 15 as at 1 January 2018 2,678 -
Total Amount available for Appropriation 51,389 40,093
Appropriation
Final Dividend Paid for Previous Year (13,503) (12,153)
Interim Dividend Paid for Current Year (16,879) (14,178)
Closing Retained Earnings at year end (before Proposed Final Dividend) 21,008 13,762
Proposed Final Dividend for the Year (2018: 155% cash and 2017: 100% cash) 20,930 13,503
Retained Earnings after Proposed Dividend 78 259
Contribution to the National Exchequer

Being one of the largest contributors to the National Exchequer for the last several consecutive years, the collective contribution
of Grameenphone from inception up to December 2018 was BDT 669.5 billion. During 2018 alone, the Company contributed BDT
84.2 billion to the national exchequer which represents about 63.4% of Grameenphone’s total revenue of 2018. Grameenphone
has paid BDT 20.9 billion corporate taxes during 2018.
Dividend
For the year ended 31 December 2018, the Board of Directors of the Company has paid an Interim Cash Dividend @ 125% of
the paid-up capital amounting to BDT 16,878,750,275 which was BDT 12.5 per share of BDT 10 each. Now, the Directors are
pleased to recommend a Final Cash Dividend @ 155% of the paid-up capital amounting to BDT 20,929,650,341 which is BDT
15.5 per share of BDT 10 each for the year 2018 out of the divisible profits of the Company for consideration and approval of the
Shareholders for distribution. Inclusive of the Interim Dividend of 125% paid already, this would make a cumulative total dividend
@ 280% of the paid-up capital of the Company which represents 108% of the Profit After Tax for the year 2018 amounting to BDT
37,808,400,616.
The above recommendation of dividend is as per the Board approved dividend policy.
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Grameenphone Ltd.
Annual Report 2018
Directors' Report
Board of Directors
The composition of the Board of Directors who held office during the year was as below:
1. Mr. M Shahjahan, Grameen Telecom, Director
2. Mr. Md. Ashraful Hassan, Grameen Telecom, Director
3. Mr. Haakon Bruaset Kjoel, Telenor Mobile Communications AS, Director
4. Ms. Parveen Mahmud, Grameen Telecom, Director
5. Mr. Oivind Burdal, Telenor Mobile Communications AS, Director
6. Prof. (Dr.) Jamilur Reza Choudhury, Independent Director
7. Mr. Petter Boerre Furberg, Telenor Mobile Communications AS, Director and Chair
8. Mr. Witold Sitek, Telenor Mobile Communications AS, Director [effective from 30 January 2018]
9. Mr. Gunnar Johan Bertelsen, Telenor Mobile Communications AS, Director [effective from 11 June 2018]
10. Dr. Salehuddin Ahmed, Independent Director [effective from 12 December 2018]
Changes in the Board and Appointment of New Independent Director

During the period under review, there were a number of changes in the Board. Mr. Witold Sitek joined the Board in January
2018 in place of Mr. Tore Johnsen and Mr. Gunnar Johan Bertelsen joined the Board in June 2018 in place of Mr. Hans Martin
Hoegh Henrichsen. In December 2018, one of our Independent Directors Ms. Rokia Afzal Rahman’s position fell vacant. The
Company was obliged to fill the vacancy within the regulatory timeline and, accordingly, Dr. Salehuddin Ahmed was appointed
as Independent Director, with effect from 12 December 2018. The said appointment will be approved by the Shareholder in
upcoming Annual General Meeting (AGM). The Board welcomes Mr. Witold Sitek, Mr. Gunnar Johan Bertelsen and Dr. Salehuddin
Ahmed to the Board and looks forward for their enriching contribution to the governance of the Company.
The Board of Directors would also like to take this opportunity to deeply thank and bid farewell to three esteemed Board members
for their invaluable contribution to the Board over the years and helping the Board discharge its governance responsibilities
towards the Company. The Board wishes them the very best for their futures.
Directors’ Appointment & Re-Appointment

With regard to the appointment, retirement and re-appointment of Directors, the Company is governed by its Articles of
Association, the Companies Act. 1994 and other related legislations. Accordingly, the following Directors of the Board will retire
at this Annual General Meeting. They are, however, eligible for re-appointment:
1. Mr. Petter Boerre Furberg
2. Mr. Md. Ashraful Hassan
3. Mr. Witold Sitek
Brief profiles of the Directors being proposed for re-appointment are given on page 32 of the Annual Report, which fulfill condition
1(5)(xxiv) of the Corporate Governance Code of BSEC.
Appointment of Auditors and Corporate Governance Compliance Auditor

As per the Companies Act 1994 and the Articles of Association of Grameenphone, the statutory auditors of the Company, A Qasem
& Co, Chartered Accountants, shall retire at this AGM. The Firm, being eligible, has offered their willingness to be re-appointed.
The Board recommends their re-appointment for the year 2018 and continuation till the next AGM at the existing fee of BDT 2.5
million plus VAT.
In compliance with the BSEC Corporate Governance Code, the Board appointed ACNABIN, Chartered Accountants as Compliance
Auditor of the Company at a fee of BDT 115,000 per year and the said appointment will be approved by the Shareholders in the
upcoming 22nd AGM.
Outlook 2019: Creating the Future

In the past few years, the world has witnessed a digital revolution that ushers in huge change at an accelerated speed. The
71
worldwide shift towards digitalisation will continue to transform the way people communicate, conduct business, socialise and
receive healthcare, education and other services. Anticipating these transformations, Grameenphone has strategically prepared
to meet the challenges of the future, today.
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Annual Report 2018
Directors' Report
Financial Analysis
By seizing the opportunities brought about by the digital economy, Grameenphone is well poised to lead Bangladesh into the
digital future where data is a powerful growth vehicle and a key focus area for telecommunication services. Pivoting around that,
Grameenphone’s outlook for the future includes emerging technologies, such as Internet of Things (IoT), Cloud Platform and
virtual business solutions, coming together to transform lives and enterprises as Bangladesh enters into 5G era.
In the coming days, the Company will focus on delivering smarter solutions, leaner business processes and more impactful
and meaningful experiences to its customers. Achieving growth and profitability in the challenging environment will remain a
top priority, and Grameenphone’s strategy for this is clear: to digitise the core and then to introduce relevant digital services
to its customers, taking leading positions in selected Business segment and adjacent ICT verticals, and stay unwavering in its
commitment to operational and financial discipline. To ensure a sustainable growth, Grameenphone will continue to invest to
build a stronger mobile ecosystem, in line with our commitment to the country’s economic growth and our trust in the Government
and people of the country.
Appreciations
The Board of Directors expresses on record its appreciation to the partners of Grameenphone, shareholders, suppliers, customers,
bankers, regulators, media and all other well-wishers for their support and patronage to bring the Company to this level. The
members of the management team have also shown unstinted commitment in performing their duties, for which we wish to
express our gratitude. We do not forget that it is the hard work and contribution of our wide array of staff and the service they
provide that has enabled Grameenphone to prosper and grow.
Grameenphone has gone far in its journey over 22 years. It has faced many adverse circumstances and proven its resilience. We
are confident that with the strengths and resources we possess, we can overcome any challenges ahead and go forward to play
an even greater role in the economy of the country and continue to create greater value for our Shareholders.
For and on behalf of the Board of Directors of Grameenphone Ltd.
Petter Boerre Furberg

Chair
27 January 2019
72
Grameenphone Ltd.
Annual Report 2018
Directors' Report
Annexure I
Status of compliance with the conditions imposed by the Commission’s Notification No.BSEC/CMRRCD/2006-158/207/
Admin/80, dated 3 June 2018 issued under section 2CC of the Securities and Exchange Ordinance, 1969:
(Report under Condition No. 9)
Compliance Status
Condition (“√” has been put in the
Title Remarks (If any)
No. appropriate column)
Complied Not Complied
1 Board of Directors (BoD)
1(1) Board’s Size There are 10 (Ten) members
√ in the Company Board
(number of Board members – minimum 5 and maximum 20)
1(2) Independent Directors
1(2)(a) At least one-fifth (1/5) of the total number of directors There are 2 (Two)
Independent Directors (ID)
shall be independent directors; any fraction shall be out of total 10 (Ten) Directors
√
considered to the next integer or whole number for
calculating number of independent director(s)
1(2)(b) Independent Director means a Director:
1(2)(b)(i) who either does not hold any share in the Company or The IDs have submitted
declarations about their
holds less than one percent (1%) shares of the total paid- √ compliances
up shares of the Company
1(2)(b)(ii) who is not a sponsor of the Company or is not connected -do-
with the Company’s any sponsor or director or nominated
director or shareholder of the Company or any of its
associates, sister concerns, subsidiaries and parents or
√
holding entities who holds one percent (1%) or more shares
of the total paid-up shares of the Company on the basis of
family relationship and his or her family members also shall
not hold above mentioned shares in the Company
1(2)(b)(iii) who has not been an executive of the Company in the -do-
√
immediately preceding 2 (two) financial years
1(2)(b)(iv) who does not have any other relationship, whether -do-
pecuniary or otherwise, with the Company or its subsidiary √
or associated companies
1(2)(b)(v) who is not a member or TREC (Trading Right Entitlement -do-
√
Certificate) holder, director or officer of any stock exchange
1(2)(b)(vi) who is not a shareholder, director excepting independent -do-
director or officer of any member or TREC holder of stock √
exchange or an intermediary of the capital market
1(2)(b)(vii) who is not a partner or an executive or was not a partner -do-
or an executive during the preceding 3 (three) years of the
concerned company’s statutory audit firm or audit firm √
engaged in internal audit services or audit firm conducting
special audit or professional certifying compliance of this Code
1(2)(b)(viii) who is not independent director in more than 5 (five) listed -do-
√
companies
1(2)(b)(ix) who has not been convicted by a court of competent -do-
jurisdiction as a defaulter in payment of any loan or any
√
advance to a bank or a Non-Bank Financial Institution
(NBFI) ; and
73
1(2)(b)(x) who has not been convicted for a criminal offence involving -do-
√
moral turpitude
Grameenphone Ltd.
Annual Report 2018
Directors' Report
Financial Analysis
Compliance Status
1(2)(c) The independent director(s) shall be appointed by the a) Prof. (Dr.) Jamilur Reza
Choudhury, in his 1st term,
Board and approved by the shareholders in the Annual already approved at AGM
General Meeting (AGM) √ b) The Board appointed
on 11 December 2018 to
be approved at the
upcoming 22nd AGM
1(2)(d) The post of independent director(s) cannot remain vacant The term of Ms. Rokia Afzal
Rahman, Independent
for more than 90 (ninety) days; and Director was expired on 05
December 2018. The Board
√ appointed Dr. Salehuddin
Ahmed as new Independent
Director on 11 December
2018
1(2)(e) The tenure of office of an independent director shall be for The IDs are in their regular
term of office
a period of 3 (three) years, which may be extended for 1 √
(one) tenure only
1(3) Qualification of Independent Director
1(3)(a) Independent director shall be a knowledgeable individual The qualification and
background of IDs justify
with integrity who is able to ensure compliance with their abilities as such
√
financial laws, regulatory requirements and corporate laws
and can make meaningful contribution to the business
1(3)(b) Independent director shall have following qualifications:
1(3)(b)(i) Business Leader who is or was a promoter or director of
an unlisted company having minimum paid-up capital of
Not
BDT 100 million or any listed company or a member of any
Applicable
national or international chamber of commerce or business
association; or
1(3)(b)(ii) Corporate Leader who is or was a top level executive not
lower than Chief Executive Officer or Managing Director
or Deputy Managing Director or Chief Financial Officer
or Head of Finance or Accounts or Company Secretary or Not
Head of Internal Audit and Compliance or Head of Legal Applicable
Service or a candidate with equivalent position of an
unlisted company having minimum paid-up capital of
BDT 100 million or of a listed company; or
1(3)(b)(iii) Former official of government or statutory or autonomous
or regulatory body in the position not below 5th Grade
of the national pay scale, who has at least educational √
background of bachelor degree in economics or commerce
or business or Law
1(3)(b)(iv) University Teacher who has educational background in
√
Economics or Commerce or Business Studies or Law
1(3)(b)(v) Professional who is or was an advocate practicing at least
in the High Court Division of Bangladesh Supreme Court
or a Chartered Accountant or Cost and Management
Not
Accountant or Chartered Financial Analyst or Chartered
Applicable
Certified Accountant or Certified Public Accountant or
Chartered Management Accountant or Chartered Secretary
or equivalent qualification
74
1(3)(c) The independent director shall have at least 10 (ten) years’

√
experiences in any field mentioned in clause (b)
Grameenphone Ltd.
Annual Report 2018
Directors' Report
Compliance Status
1(3)(d) In special cases, the above qualifications or experiences No such case in the reporting
None year
may be relaxed subject to prior approval of the Commission
1(4) Duality of Chair of the Board of Directors and Chief Executive Officer
1(4)(a) The positions of the Chair of the Board and the Chief The Chair and the CEO are
different individuals with
Executive Officer (CEO) of the Company shall be filled by √ clearly defined roles and
responsibilities
different individuals
1(4)(b) The Chief Executive Officer (CEO) of a listed company shall The CEO did not held the
√ same position in another
not hold the same position in another listed company listed company
1(4)(c) The Chair of the Board shall be elected from among the All Board members are non-
executive director. The Chair
non-executive directors of the company √ of the Board is non-executive
director
1(4)(d) The Board shall clearly define respective roles and The Board clearly defined
√ roles and responsibilities of
responsibilities of the Chair and the Chief Executive Officer the Chair and the CEO
1(4)(e) In the absence of the Chair of the Board, the remaining No such case in the reporting
year
members may elect one of themselves from non-executive
directors as Chair for that particular Board’s meeting; None
the reason of absence of the regular Chair shall be duly
recorded in the minutes
1(5) The Directors’ Report shall include the following additional statements
1(5)(i) Industry outlook and possible future developments in the Included in the Directors’
√ report on Page 67 of the
industry Annual Report
1(5)(ii) Segment-wise or product-wise performance Included in the Directors’

Annual Report
1(5)(iii) Risks and concerns including internal and external risk Included in the Directors’
report on Page 69 of the
factors, threat to sustainability and negative impact on √ Annual Report
environment, if any
1(5)(iv) Discussion on Cost of Goods sold, Gross Profit Margin and Included in the Directors’
Net Profit Margin, where applicable Annual Report
1(5)(v) Discussion on continuity of any extraordinary activities and Included in the Directors’
their implications (gain or loss) Annual Report
1(5)(vi) Detailed discussion on related party transactions along Included in the Directors’
with a statement showing amount, nature of related party, Annual Report
√
nature of transactions and basis of transactions of all
related party transactions
1(5)(vii) Statement of utilisation of proceeds raised through public Included in the Directors’
issues, rights issues and/or any other instruments Annual Report
1(5)(viii) Explanation if the financial results deteriorate after the Included in the Directors’
company goes for Initial Public Offering (IPO), Repeat Annual Report
√
Public Offering (RPO), Rights Share Offer, Direct Listing,
etc.
1(5)(ix) Explanation on any significant variance that occurs Included in the Directors’
between Quarterly Financial performances and Annual √ Annual Report
Financial Statements
1(5)(x) Statement of remuneration paid to the directors including Included in the Directors’
independent directors Annual Report
1(5)(xi) Statement that the financial statements prepared by Included in the Directors’
75

the management of the issuer company present fairly its Annual Report
√
state of affairs, the result of its operations, cash flows and
Grameenphone Ltd.
Annual Report 2018
changes in equity
Directors' Report
Financial Analysis
Compliance Status
1(5)(xii) Proper books of account of the issuer company have been Included in the Directors’
maintained Annual Report
1(5)(xiii) Appropriate accounting policies have been consistently Included in the Directors’
applied in preparation of the financial statements and that Annual Report
√
the accounting estimates are based on reasonable and
prudent judgment
1(5)(xiv) International Accounting Standards (IAS) or International Included in the Directors’
report on Page 69of the
Financial Reporting Standards (IFRS), as applicable in Annual Report
Bangladesh, have been followed in preparation of the √
financial statements and any departure there from has
been adequately disclosed
1(5)(xv) The system of internal control is sound in design and has Included in the Directors’
been effectively implemented and monitored Annual Report
1(5)(xvi) A statement that minority shareholders have been Included in the Directors’
protected from abusive actions by, or in the interest of, Annual Report
√
controlling shareholders acting either directly or indirectly
and have effective means of redress
1(5)(xvii) There is no significant doubt upon the issuer company’s Included in the Directors’
ability to continue as a going concern, if the issuer Annual Report
√
company is not considered to be a going concern, the fact
along with reasons there of shall be disclosed
1(5)(xviii) Explanation that significant deviations from the last Included in the Directors’
year’s operating results of the issuer company shall be √ Annual Report
highlighted and the reasons thereof shall be explained
1(5)(xix) Key operating and financial data of at least preceding five Given on Page 58 of the
Annual Report
(5) years shall be summarised
1(5)(xx) An explanation on the reasons if the issuer company has No such case in the reporting
None year
not declared dividend (cash or stock) for the year
1(5)(xxi) Board’s statement to the effect that no bonus share or Included in the Directors’
stock dividend has been or shall be declared as interim √ Annual Report
dividend
1(5)(xxii) The total number of Board meetings held during the year Included in the Directors’
and attendance by each director Annual Report
1(5)(xxiii) Pattern of shareholding and name wise details (disclosing aggregate number of shares):
1(5)(xxiii)(a) Parent or Subsidiary or Associated Companies and other Included in the Directors’
related parties Annual Report
1(5)(xxiii)(b) Directors, Chief Executive Officer, Company Secretary, Chief Included in the Directors’
Financial Officer, Head of Internal Audit and Compliance √ Annual Report
and their spouses and minor children
1(5)(xxiii)(c) Executives Included in the Directors’
Annual Report
1(5)(xxiii)(d) Shareholders holding ten percent (10%) or more voting Included in the Directors’
interest in the Company Annual Report
1(5)(xxiv) In case of the appointment/re-appointment of a director, disclose:

1(5)(xxiv)(a) A brief resume of the director √ Given on Page 32 of the
76
Annual Report
1(5)(xxiv)(b) Nature of his or her expertise in specific functional areas √ Given on Page 32 of the
Annual Report
Grameenphone Ltd.
Annual Report 2018
Directors' Report
Compliance Status
1(5)(xxiv)(c) Names of companies in which the person also holds the Given on Page 35 of the
Annual Report
directorship and the membership of committees of the √
Board;
1(5)(xxv) Management’s Discussion and Analysis signed by CEO presenting detailed analysis of the company’s
position and operations along with a brief discussion of changes in the financial statements, among
others, focusing on:
1(5)(xxv)(a) Accounting policies and estimation for preparation of Included in the
Management’s Discussion
financial statements √ and Analysis on Page 87 of
the Annual Report
1(5)(xxv)(b) Changes in accounting policies and estimation, if any, -do-

clearly describing the effect on financial performance
√
or results and financial position as well as cash flows in
absolute figure for such changes
1(5)(xxv)(c) Comparative analysis (including effects of inflation) of -do-
financial performance or results and financial position as
√
well as cash flows for current financial year with immediate
preceding five years explaining reasons thereof
1(5)(xxv)(d) Compare such financial performance or results and -do-
financial position as well as cash flows with the peer √
industry scenario
1(5)(xxv)(e) Briefly explain the financial and economic scenario of the -do-
√
country and the globe
1(5)(xxv)(f) Risks and concerns issues related to the financial -do-
statements, explaining such risk and concerns mitigation √
plan of the company; and
1(5)(xxv)(g) Future plan or projection or forecast for company’s -do-
operation, performance and financial position, with
√
justification thereof, i.e., actual position shall be explained
to the shareholders in the next AGM
1(5)(xxvi) Declaration or certification by the CEO and the CFO to the Given on Page 86 of the
√ Annual Report
Board as required under condition No. 3(3)
1(5)(xxvii) The report as well as certificate regarding compliance of Given on Page 92 of the
Annual Report
conditions of this Code as required under condition No. 9 √
shall be disclosed
1(6) Meetings of the Board of Directors
1(6) The Company shall conduct its Board meetings and record
the minutes of the meetings as well as keep required books
and records in line with the provisions of the relevant
Bangladesh Secretarial Standards (BSS) as adopted by the √
Institute of Chartered Secretaries of Bangladesh (ICSB),
in so far as those standards are not inconsistent with any
condition of this Code
1(7) Code of Conduct for the Chair, other Board members and Chief Executive Officer
1(7)(a) The Board shall lay down a code of conduct, based on the There is a written Code of
Conduct and the Chair, other
recommendation of the Nomination and Remuneration Board members & the CEO
are obliged to comply with
Committee (NRC) at condition No. 6, for the Chair of the √
77
Board, other board members and Chief Executive Officer of

the Company
Grameenphone Ltd.
Annual Report 2018
Directors' Report
Financial Analysis
Compliance Status
1(7)(b) The code of conduct as determined by the NRC shall be The Code of Conduct is
available on the website of
posted on the website of the Company including, among the Company
others, prudent conduct and behaviour; confidentiality;
conflict of interest; compliance with laws, rules and √
regulations; prohibition of insider trading; relationship with
environment, employees, customers and suppliers; and
independency
2 Governance of Board of Directors of Subsidiary Company
2(a) Provisions relating to the composition of the Board of Grameenphone does not
Not have any subsidiary Company
the holding company shall be made applicable to the Applicable as on reporting date
composition of the Board of the subsidiary company
2(b) At least 1 (one) independent director on the Board of the -do-
Not
holding company shall be a director on the Board of the Applicable
subsidiary company
2(c) The minutes of the Board meeting of the subsidiary -do-
Not
company shall be placed for review at the following Board Applicable
meeting of the holding company
2(d) The minutes of the respective Board meeting of the -do-
Not
holding company shall state that they have reviewed the Applicable
affairs of the subsidiary company also
2(e) The Audit Committee of the holding company shall -do-
Not
also review the financial statements, in particular the Applicable
investments made by the subsidiary company
3 Chief Executive Officer (CEO), Chief Financial Officer (CFO), Head of Internal Audit and Compliance (HIAC)
and Company Secretary (CS)
3(1) Appointment
3(1)(a) The Board shall appoint a Chief Executive Officer (CEO), The CEO, CFO, CS, Head of
Internal Audit and Head of
a Company Secretary (CS), a Chief Financial Officer (CFO) √ Ethics & Compliance have
been appointed by the Board
and a Head of Internal Audit and Compliance (HIAC)
3(1)(b) The positions of the Chief Executive Officer (CEO), Company The CEO, CFO, CS, Head of
Secretary (CS), Chief Financial Officer (CFO) and Head of Ethics & Compliance are
√ different individuals and their
Internal Audit and Compliance (HIAC) shall be filled by
roles and responsibilities are
different individuals separately defined
3(1)(c) The CEO, CS, CFO and HIAC of a listed company shall not The CEO, CFO, CS, Head of
hold any executive position in any other Company at the √ Ethics & Compliance do not
hold any executive position in
same time any other Company
3(1)(d) The Board shall clearly define respective roles, The roles and responsibilities
√ are separately defined
responsibilities and duties of the CFO, the HIAC and the CS
3(1)(e) The CEO, CS, CFO and HIAC shall not be removed from No such case in the reporting
year
their position without approval of the Board as well as
None
immediate dissemination to the Commission and stock
exchange(s)
3(2) Requirement to attend Board of Directors’ Meetings
The CEO, CS, CFO and HIAC of the company shall attend the The CEO, CFO, CS, Head of
Internal Audit and Head
meetings of the Board √ of Ethics & Compliance
attended in the Board
Meetings
78
3(3) Duties of Chief Executive Officer (CEO) and Chief Financial Officer (CFO)
3(3)(a) The CEO and CFO shall certify to the Board that they have The CEO and CFO have duly
certified to the Board
reviewed financial statements for the year and that to the √
Grameenphone Ltd.
Annual Report 2018
best of their knowledge and belief
Directors' Report
Compliance Status
3(3)(a)(i) these statements do not contain any materially untrue -do-
statement or omit any material fact or contain statements √
that might be misleading
3(3)(a)(ii) these statements together present a true and fair view of -do-
the company’s affairs and are in compliance with existing √
accounting standards and applicable laws
3(3)(b) The CEO and CFO shall also certify that there are, to the -do-
best of their knowledge and belief, no transactions entered
into by the company during the year which are fraudulent, √
illegal or in violation of the code of conduct for the
company’s Board or its members
3(3)(c) The certification of the CEO and CFO shall be disclosed in Given on Page 86 of the
√ Annual Report
the Annual Report
4 Board of Directors’ Committee
For ensuring good governance in the Company, the Board shall have at least following sub-committees:
4(i) Audit Committee The Board formed the Audit
√ Committee on 10 November
2008
4(ii) Nomination and Remuneration Committee √ The Board formed the NRC
on 11 December 2018
5 Audit Committee
5(1) Responsibility to the Board of Directors
5(1)(a) The Company shall have an Audit Committee as a sub- Audit Committee is
√ established as per BSEC
committee of the Board guidelines
5(1)(b) The Audit Committee shall assist the Board in ensuring The Audit Committee
discharges as per BSEC
that the financial statements reflect true and fair view of guidelines
√
the state of affairs of the company and in ensuring a good
monitoring system within the business
5(1)(c) The Audit Committee shall be responsible to the Board; the The duties of the Audit
Committee are clearly
duties of the Audit Committee shall be clearly set forth in defined in the Board
√ approved Audit Committee
writing Charter as per BSEC
guidelines
5(2) Constitution of the Audit Committee

5(2)(a) The Audit Committee shall be composed of at least 3 Audit Committee comprises
√ of 3 (three) members
(three) members
5(2)(b) The Board shall appoint members of the Audit Committee All members of the Audit
Committee are non-
who shall be non-executive directors of the company executive directors, out of
which one member is ID. All
excepting Chair of the Board and shall include at least 1 √ the members are appointed
by the Board. The Chair of the
(one) independent director Board is not the member of
the Audit Committee
5(2)(c) All members of the audit committee should be “financially The profiles of the members
given on page 32 of the
literate” and at least one (1) member shall have accounting Annual Report demonstrate
√ their capabilities as such
or related financial management background and ten (10)
years of such experience
5(2)(d) When the term of service of any Committee member The term of Ms. Rokia
Afzal Rahman expired on
expires or there is any circumstance causing any 05 December 2018 and
Committee member to be unable to hold office before the Board appointed Dr.
expiration of the term of service, thus making the number Salehuddin Ahmed in her
place on 11 December 2018
of the Committee members to be lower than the prescribed
√
number of three (3) persons, the Board shall appoint new
79
Committee member to fill up the vacancy immediately or

not later than one (1) month from the date of vacancy in
the Committee to ensure continuity of the performance of
Grameenphone Ltd.
Annual Report 2018
work of the Audit Committee
Directors' Report
Financial Analysis
Compliance Status
5(2)(e) The Company Secretary shall act as the secretary of the
√
Committee
5(2)(f) The quorum of the Audit Committee meeting shall not
√
constitute without at least one (1) independent director
5(3) Chair of the Audit Committee
5(3)(a) The Board shall select 1 (one) member of the Audit The Chair of the Audit
Committee is an Independent
Committee to be Chairperson of the Audit Committee, who √ Director
shall be an independent director
5(3)(b) In the absence of the Chairperson of the Audit Committee, The reason for the absence
of the Audit Committee Chair
the remaining members may elect one of themselves as was duly recorded in the
Minutes
Chairperson for that particular meeting, in that case there
shall be no problem of constituting a quorum as required √
under condition No. 5(4)(b) and the reason of absence
of the regular Chairperson shall be duly recorded in the
minutes
5(3)(c) Chair of the Audit Committee shall remain present in the The Chair of the Audit
Committee attended in the
Annual General Meeting (AGM) √ 21st AGM held on 19 April
2018
5(4) Meeting of the Audit Committee

5(4)(a) The Audit Committee shall conduct at least four (4) There were nine (9) meetings
√ held during the reporting
meetings in a financial year period
5(4)(b) The quorum of the meeting of the Audit Committee shall

be constituted in presence of either two members or two-
third of the members of the Audit Committee, whichever √
is higher, where presence of an independent director is a
must
5(5) Role of Audit Committee
5(5)(a) Oversee the financial reporting process The Audit Committee
√ performs as per BSEC’s
guidelines
5(5)(b) Monitor choice of accounting policies and principles √ -do-
5(5)(c) Monitor Internal Audit and Compliance process to ensure -do-

that it is adequately resourced, including approval of the
√
Internal Audit and Compliance Plan and review of the
Internal Audit and Compliance Report
5(5)(d) Oversee hiring and performance of external auditors √ -do-
5(5)(e) Hold meeting with the external or statutory auditors -do-

for review of the annual financial statements before √
submission to the Board for approval or adoption
5(5)(f) Review along with the management, the annual financial -do-
√
statements before submission to the Board for approval
5(5)(g) Review along with the management, the quarterly and half -do-
yearly financial statements before submission to the Board √
for approval
5(5)(h) Review the adequacy of internal audit function √ -do-
5(5)(i) Review the Management’s Discussion and Analysis before -do-

√
80
disclosing in the Annual Report

5(5)(j) Review statement of all related party transactions -do-
√
Grameenphone Ltd.
submitted by the management

Annual Report 2018
Directors' Report
Compliance Status
5(5)(k) Review Management Letters or Letter of Internal Control -do-
√
weakness issued by statutory auditors
5(5)(l) Oversee the determination of audit fees based on scope -do-
and magnitude, level of expertise deployed and time
√
required for effective audit and evaluate the performance
of external auditors
5(5)(m) Oversee whether the proceeds raised through Initial Public No IPO was made in the year
2018
Offering (IPO) or Repeat Public Offering (RPO) or Rights
Share Offer have been utilised as per the purposes stated None
in relevant offer document or prospectus approved by the
Commission
5(6) Reporting of the Audit Committee
5(6)(a)(i) The Audit Committee shall report on its activities to the
√
Board
5(6)(a)(ii)(a) Report on conflicts of interests None
5(6)(a)(ii)(b) Suspected or presumed fraud or irregularity or material

defect identified in the internal audit and compliance None
process or in the financial statements
5(6)(a)(ii)(c) Suspected infringement of laws, regulatory compliances
None
including securities related laws, rules and regulations; and
5(6)(a)(ii)(d) Any other matter which the Audit Committee deems
None
necessary shall be disclosed to the Board immediately
5(6)(b) Reporting to BSEC (if any, which has material impact on the
financial condition and results of operation, unreasonably None
ignored by the management)
5(7) Reporting to the Shareholders and General Investors of Activities of the Audit
Committee are reported on
Audit Committee Activities, which shall be signed by the page 55 of the Annual Report
√
Chair of the Audit Committee and disclosed in the Annual
Report
6 Nomination and Remuneration Committee (NRC)
6(1) Responsibility to the Board of Directors
6(1)(a) The company shall have a Nomination and Remuneration NRC is established as per
√ BSEC guidelines
Committee (NRC) as a sub-committee of the Board
6(1)(b) The NRC shall assist the Board in formulation of the The NRC discharges as per
given guidelines
nomination criteria or policy for determining qualifications,
positive attributes, experiences and independence of
√
directors and top level executive as well as a policy for
formal process of considering remuneration of directors,
top level executive
6(1)© The Terms of Reference (ToR) of the NRC shall be clearly The duties of the NRC are
clearly defined in the Board
set forth in writing covering the areas stated at the √ approved NRC Charter as per
BSEC’s guidelines
condition No. 6(5)(b)
6(2) Constitution of the NRC
6(2)(a) The Committee shall comprise of at least three (3) NRC comprises of three (3)
√ members, which includes
members including an independent director one ID
6(2)(b) All members of the Committee shall be non-executive All members of NRC are non-
81
√ executive directors
directors
Grameenphone Ltd.
Annual Report 2018
Directors' Report
Financial Analysis
Compliance Status
6(2)(c) Members of the Committee shall be nominated and All members of the NRC are
√ appointed by the Board
appointed by the Board
6(2)(d) The Board shall have authority to remove and appoint any
√
member of the Committee
6(2)(e) In case of death, resignation, disqualification, or removal No such case in the reporting
year
of any member of the Committee or in any other cases
of vacancies, the board shall fill the vacancy within one None
hundred eighty (180) days of such vacancy occurring in the
Committee
6(2)(f) The Chairperson of the Committee may appoint or co- No such case in the reporting
year
opt any external expert and/or member(s) of staff to the
Committee as advisor who shall be non-voting member, if
None
the Chairperson feels that advice or suggestion from such
external expert and/or member(s) of staff shall be required
or is valuable for the Committee
6(2)(g) The Company Secretary shall act as the secretary of the
√
Committee
6(2)(h) The quorum of the NRC meeting shall not constitute No such case in the reporting
√ year
without attendance of at least an Independent Director
6(2)(i) No member of the NRC shall receive, either directly No such case in the reporting
year
or indirectly, any remuneration for any advisory or
√
consultancy role or otherwise, other than Director’s fees or
honorarium from the company
6(3) Chair of the NRC
6(3)(a) The Board shall select 1 (one) member of the NRC to be The Chair of the NRC is an
Independent Director
Chair of the Committee, who shall be an independent √
director
6(3)(b) In the absence of the Chair of the NRC, the remaining No such case in the reporting
year
members may elect one of themselves as Chairperson
None
for that particular meeting, the reason of absence of the
regular Chairperson shall be duly recorded in the minutes
6(3)(c) The Chairperson of the NRC shall attend the annual No such case in the reporting
year. The NRC was formed on
general meeting (AGM) to answer the queries of the None 11 December 2018
shareholders
6(4) Meeting of the NRC
6(4)(a) The NRC shall conduct at least one meeting in a financial The Board formed NRC on
11 December 2018, thus no
year None meeting was held during the
reporting period
6(4)(b) The Chair of the NRC may convene any emergency meeting No such case in the reporting
None year
upon request by any member of the NRC
6(4)(c) The quorum of the meeting of the NRC shall be constituted
in presence of either two members or two third of the
members of the Committee, whichever is higher, where √
presence of an Independent Director is must as required
under condition No. 6(2)(h)
6(4)(d) The proceedings of each meeting of the NRC shall duly The Board formed NRC on
11 December 2018, thus, no
be recorded in the minutes and such minutes shall be None meeting was held during the
confirmed in the next meeting of the NRC reporting period
82
6(5)(a) NRC shall be independent and responsible or accountable The NRC performs as per
√ BSEC’s guidelines
to the Board and to the shareholders
Grameenphone Ltd.
Annual Report 2018
Directors' Report
Compliance Status
6(5) Role of the NRC
6(5)(b)(i)(a) The level and composition of remuneration is reasonable -do-
and sufficient to attract, retain and motivate suitable √
directors to run the company successfully
6(5)(b)(i)(b) The relationship of remuneration to performance is clear -do-
√
and meets appropriate performance benchmarks; and
6(5)(b)(i)(c) Remuneration to directors, top level executive involves a -do-
balance between fixed and incentive pay reflecting short
√
and long-term performance objectives appropriate to the
working of the company and its goals
6(5)(b)(ii) Devising a policy on Board’s diversity taking into -do-
consideration age, gender, experience, ethnicity, √
educational background and nationality
6(5)(b)(iii) Identifying persons who are qualified to become directors -do-
and who may be appointed in top level executive position
√
in accordance with the criteria laid down, and recommend
their appointment and removal to the Board
6(5)(b)(iv) Formulating the criteria for evaluation of performance of -do-
√
independent directors and the Board
6(5)(b)(v) Identifying the company’s needs for employees at -do-
different levels and determine their selection, transfer or √
replacement and promotion criteria
6(5)(b)(vi) Developing, recommending and reviewing annually the -do-
√
company’s human resources and training policies
6(5)(c) The Company shall disclose the nomination and Given on Page 56 of the
Annual Report
remuneration policy and the evaluation criteria and
√
activities of NRC during the year at a glance in its annual
report
7 External or Statutory Auditors
7(1)(i) Appraisal or valuation services or fairness opinions √ As declared by the Auditors
7(1)(ii) Financial information systems design and implementation √ -do-
7(1)(iii) Book-keeping or other services related to the accounting -do-

√
records or financial statements
7(1)(iv) Broker-dealer services √ -do-
7(1)(v) Actuarial services √ -do-
7(1)(vi) Internal audit services or special audit services √ -do-
7(1)(vii) Any service that the Audit Committee determines √ -do-
7(1)(viii) Audit or certification services on compliance of corporate -do-

√
governance as required under condition No. 9(1) ; and
7(1)(ix) Any other service that creates conflict of interest √ -do-
7(2) No partner or employees of the external audit firms -do-

shall possess any share of the company they audit at
least during the tenure of their audit assignment of that √
company; his or her family members also shall not hold any
shares in the said company
7(3) Representative of external or statutory auditors shall The representative of
external auditors attended
83
remain present in the Shareholders Meeting (Annual in the 21st AGM held on 19
√ April 2018
General Meeting or Extraordinary General Meeting) to
answer the queries of the shareholders
Grameenphone Ltd.
Annual Report 2018
Directors' Report
Financial Analysis
Compliance Status
8 Maintaining a website by the Company
8(1) The Company shall have an official website linked with the
√
website of the stock exchange
8(2) The Company shall keep the website functional from the
√
date of listing
8(3) The Company shall make available the detailed disclosures
on its website as required under the listing regulations of √
the concerned stock exchange(s)
9 Reporting and Compliance of Corporate Governance
9(1) Obtaining a certificate from a practicing Professional Given on page 92 of the
Annual Report
Accountant or Secretary (Chartered Accountant or Cost
and Management Accountant or Chartered Secretary)
other than its statutory auditors or audit firm on yearly √
basis regarding compliance of conditions of Corporate
Governance Code of the Commission and such certificate
shall be disclosed in the Annual Report.
9(2) The professional who will provide the certificate on The Board appointed
the Compliance Auditor
compliance of this Corporate Governance Code shall be on 11 December 2018
appointed by the shareholders in the annual general √ and their appointment
will be approved by the
meeting. Shareholders in the
upcoming AGM in 2019
9(3) Directors statement in the directors’ report whether the Detailed status of
compliance is given on page
Company has complied with these conditions or not 73 of the Annual Report in
√ the compliance schedule as
published with the Directors’
Report
Annexure II
Board Meeting and attendance during the year ended 31 December 2018
Number of
Name of Directors Board Member Since
meetings attended during 2018
Mr. M Shahjahan 26 June 2006 14/14
Mr. Md. Ashraful Hassan 20 January 2010 14/14
Mr. Haakon Bruaset Kjoel* 14 September 2011 12/14
Ms. Parveen Mahmud* 17 October 2012 11/14
Mr. Oivind Burdal* 18 May 2016 13/14
Prof. (Dr.) Jamilur Reza Choudhury* 15 June 2016 10/14
Mr. Petter Boerre Furberg 26 May 2017 14/14
Mr. Witold Sitek* 30 January 2018 10/11
Mr. Gunnar Johan Bertelsen* 11 June 2018 05/06
Dr. Salehuddin Ahmed 12 December 2018 00/00
Ms. Rokia Afzal Rahman* 6 December 2012 10/13
Mr. Tore Johnsen* 10 December 2013 03/03
Mr. Hans Martin Hoegh Henrichsen* 22 January 2014 08/08
* Mr. Tore Johnsen retired from the Board on 29 January 2018
84
* Mr. Hans Martin Hoegh Henrichsen retired from the Board on 10 June 2018
* The term of Ms. Rokia Afzal Rahman as Independent Director expired on 05 December 2018
*In compliance with the law, the Board granted leave of absence to the members who were unable to attend the Board meetings
Grameenphone Ltd.
Annual Report 2018
Directors' Report
Annexure-III
The Pattern of Shareholding as on 31 December 2018
Name of Shareholders Status Shares Held Percentage

i) Parent/Subsidiary/Associate Companies
Telenor Mobile Communications AS - 753,407,724 55.80%
Nye Telenor Mobile Communications II AS - 215 0.00%
Nye Telenor Mobile Communications III AS - 215 0.00%
Telenor Asia Pte. Ltd. - 215 0.00%
Grameen Telecom - 461,766,409 34.20%
Grameen Kalyan - 22 0.00%
Grameen Shakti - 22 0.00%
ii) Directors, Chief Executive Officer, Chief Financial Officer, Company Secretary, Head of Internal Audit, Head of Ethics
and Compliance and their spouses and minor children
Mr. Petter Boerre Furberg Chair - -
Mr. M Shahjahan Board Member - -
Mr. Md. Ashraful Hassan Board Member - -
Mr. Haakon Bruaset Kjoel Board Member - -
Ms. Parveen Mahmud Board Member - -
Mr. Oivind Burdal Board Member - -
Prof. (Dr.) Jamilur Reza Choudhury Board Member - -
Mr. Witold Sitek Board Member - -
Mr. Gunnar Johan Bertelsen Board Member - -
Dr. Salehuddin Ahmed Board Member - -
Mr. Michael Patrick Foley Chief Executive Officer - -
Mr. Karl Erik Broten Chief Financial Officer - -
Mr. S M Imdadul Haque Company Secretary - -
Mr. Hasan Faisal Head of Internal Audit & 195 0.00%
Investigation
Mr. Ivan Georgiev Dimitrov Head of Ethics and Compliance - -
iii) Executives (as explained in the BSEC’s Corporate Governance Code dated 03 June 2018)
Mr. Yasir Azman Deputy CEO & Chief Marketing 37,545 0.00%
Officer
Mr. Ole Bjorn Sjulstad Chief Corporate Affairs Officer - -
Mr. Rade Kovacevic Chief Technology Officer - -
Mr. Mahmud Hossain Chief Business Officer - -
Mr. Mustafa Alim Aolad Deputy Chief Financial Officer - -
iv) Shareholders holding ten percent or more voting interest
Telenor Mobile Communications AS - 753,407,724 55.80%
Grameen Telecom - 461,766,409 34.20%
85
Grameenphone Ltd.
Annual Report 2018
Directors' Report
Financial Analysis
Annexure –IV
DECLARATION BY THE CEO AND THE CFO

[As per condition No. 1(5)(xxvi) of Corporate Governance Code 2018]
The Board of Directors

Grameenphone Ltd.
Subject: Declaration on Financial Statements for the year ended on 31 December 2018.
Dear Sirs,
Pursuant to the condition No. 1(5)(xxvi) imposed vide the Commission’s Notification No. BSEC/CMRRCD/2006-158/207/
Admin/80 dated 03 June 2018 under section 2CC of the Securities and Exchange Ordinance, 1969, we do hereby declare that:
(1) The Financial Statements of Grameenphone Ltd. for the year ended on 31 December 2018 have been prepared in
compliance with International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS), as
applicable in Bangladesh and any departure there from has been adequately disclosed;
(2) The estimates and judgments related to the financial statements were made on a prudent and reasonable basis, in order for
the financial statements to reveal a true and fair view;
(3) The form and substance of transactions and the Company’s state of affairs have been reasonably and fairly presented in its
financial statements;
(4) To ensure above, the Company has taken proper and adequate care in installing a system of internal control and maintenance
of accounting records;
(5) Our internal auditors have conducted periodic audits to provide reasonable assurance that the established policies and
procedures of the Company were consistently followed; and
(6) The management’s use of the going concern basis of accounting in preparing the financial statements is appropriate and
there exists no material uncertainty related to events or conditions that may cast significant doubt on the Company’s ability
to continue as a going concern.
In this regard, we also certify that: -

(i) We have reviewed the financial statements for the year ended on 31 December 2018 and that to the best of our knowledge
and belief;
(a) these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
(b) these statements collectively present true and fair view of the Company’s affairs and are in compliance with existing
accounting standards and applicable laws; and
(ii) There are, to the best of knowledge and belief, no transactions entered into by the Company during the year which are
fraudulent, illegal or in violation of the code of conduct for the company’s Board of Directors or its members.
Sincerely yours,
(Michael Patrick Foley) (Karl Erik Broten)

Chief Executive Officer (CEO) Chief Financial Officer (CFO)
27 January 2019
86
Grameenphone Ltd.
Annual Report 2018
Directors' Report
Annexure –V
MANAGEMENT’S DISCUSSION AND ANALYSIS

As per condition no. 1 (5) (xxv) of the Corporate Governance Code 2018 issued by Bangladesh Securities and Exchange Commission,
the Management’s Discussion & Analysis are as follows:
2018 Key Highlights

In 2018, Grameenphone generated revenue of BDT 132.8 billion (2017: BDT 128.4 billion), representing growth of 3.4%, and
delivered net profit after tax of BDT 35.2 billion (2017: BDT 27.4 billion). Grameenphone ended the year with 72.7 million active
subscriptions registering a 11.3% growth compared to the previous year. During the year Grameenphone also acquired 5.9 million
internet users increasing the total internet user to 37.1 million at the end of 2018. Grameenphone invested BDT 12.7 billion
for 5MHz spectrum, 4G licence acquisition and 2G technology neutrality and another 21.3 billion for network coverage growth.
Currently we have 95.2% population coverage for 3G and another 5,009 4G enabled sites were also rolled out during 2018.
Strong revenue growth, along with continued focus on Operational Excellence, resulted in a 5.5% growth in EBITDA with a robust
margin of 60.5%.
2018 has been a tremendous year for Grameenphone with growth in voice and data supported by substantial savings in operating
expenses, simplified customer centric offers and services along with strengthening its data positioning through introduction of
4G and expansion of 3G and 4G coverage.
Customers and Average Revenue/Minutes per User (ARPU & AMPU)
Total Subscription (’000) ARPU & AMPU
72,732
65,327
56,679 57,954
258
256
249
51,504
244
243
47,110
234
46.3%
45.8% 45.0%
176
167
157
165
42.8% 42.4%
162
41.4% 155
13 14 15 16 17 18 13 13 14 14 15 15 16 16 17 17 18 18
 Subscription ▬ Market Share (%)  ARPU (BDT)  AMPU (Minutes)
On an annual basis, the subscription base increased by 7.4 million (2017: 7.4 million). The continued acquisition drive in the
market throughout the year resulted in a total subscription base of 72.7 million (2017: 65.3 million) and the subscription market
share stood at 46.3% at the end of the year.
In 2018, ARPU decreased by 5.6% to BDT 157 (2017: BDT 167), mainly due to decrease in average voice minutes per user by 8.9%
to 234 minutes (2017: 256 minutes). Lower revenue from VAS as a result of net revenue recognition also attributed to lower ARPU.
In 2018, higher subscription acquisition from the low usage segment continues to drive lower AMPU.
Revenue Performance
Revenue Composition
Total revenue reported in 2018 was BDT 132.8 billion (2017: BDT 128.4
billion), with 3.4% growth. This was mainly driven by growth in voice and 1.4%
0.1%
data revenue partly offset by revenue from customer equipment and VAS. 1.9%
1.7%
In 2018, Grameenphone changed the business model for Handset and

VAS from gross to net recognition of revenue. Adjusting this effect for the 2018 2017
year 2017, the normalised growth for revenue is 6.3%. 96.3%

98.5%
Revenue from mobile communication grew by 5.7% in 2018 to BDT 130.8
billion (2017: BDT 123.7 billion). The growth was mainly driven by Voice and  Mobile Communication  Customer Equipment  Other Revenue
Data partly offset by VAS and interconnection revenue compared to 2017.
Mobile Communication Revenue Composition
Data revenue increased by 21% in 2018 to BDT 25.5 billion (2017: BDT 5.8%
21.1 billion). At the end of 2018, Data revenue accounted for 19.5% (2017: 7.6%
17.0%) of mobile communication revenue. The growth in data revenue is

19.5%
17.0%
mainly driven by 18.9% increase in internet users and higher contribution 5.9%
2018 7.0%
2017
87
from 82.9% higher data volume usage. This was driven by rapid expansion
68.4%
of 4G enabled sites, along with our continued investment in 3G network 68.8%
coverage and increased smartphone penetration in our subscriber base,
Grameenphone Ltd.
Annual Report 2018
where Grameenphone sold 246,693 smartphones through 2018.  Voice traffic  Interconnection  Data  VAS and others
Management's Discussion and Analysis

Financial Analysis
Voice revenue experienced 6.6% increase in 2018 mainly due to 11.3% Data Revenue Contribution 19.2%
growth in subscription base. 16.4%
25.502
Grameenphone observed a decline in interconnection revenue in 2018 12.5%
21,076
compared to last year due to a decrease in incoming minutes from 8.1%
international operators and lower interconnection call termination rate 5.0% 14,400
3.3%
introduced by BTRC.
8,486
3,173 5,113
Cost and Margin Review

For the year 2018, total cost base of Grameenphone significantly 13 14 15 16 17 18
decreased by 3.9% to BDT 75.4 billion (2017: BDT 78.5 billion), mainly
due to lower cost of material and traffic charges, other operating  Data (Mn BDT) ▬ % of Total Revenue
expenses, salary and personnel cost, depreciation and partly offset by
higher operation, maintenance, sales, marketing and commission cost.
Like previous years, Grameenphone continued its focus on Operational EBITDA & EBITDA Margin 80,426
Excellence in 2018 which resulted in savings of BDT 4.3 billion. 76,230
The impact of revenue growth and efficient cost management resulted in 63,772
a 5.5% growth in EBITDA to BDT 80.4 billion (2017: BDT 76.2 billion) and 54,538 56,045 60.5%
49,039
with a robust EBITDA margin of 60.5% (2017: 59.2%). 55.3
59.2%
53.4%
53.0%
50.7%
Profit after Tax

Profit after Tax for 2018 stood at BDT 35.2 billion (2017: BDT 27.4 billion) 13 14 15 16 17 18
which increased by BDT 7.7 billion due to higher EBITDA and lower foreign
exchange loss, partly offset by higher tax and finance expense. Net profit  EBITDA (Mn BDT) ▬ EBITDA Margin
margin for 2018 stood at 26.5% (2017: 21.4%). * EBITDA before other items
Profit Before Tax, Profit After Tax and Depreciation & Amortisation
55,589
47,322
23,337 22,539
38,178
34,855
34,922
20,998
32,852
19,008
17,657
15,339
19,803
14,702
22,526
27,423
35,160
19,707
13 13 14 14 15 15 16 16 17 17 18 18
 Profit Before Tax (Mn BDT)  Profit After Tax (Mn BDT) ▬ Depreciation & Amortisation (Mn BDT)
Capex (Mn BDT)

Capital Expenditure (Capex) and Network Updates
33,994
In 2018, Grameenphone invested BDT 34.0 billion (2017: BDT 14.5

29,925
billion) with capex to sales at 25.6% (2017: 11.3%). The majority of the
investment was mainly related to acquisition of 4G licence, expansion
21,097
of 3G and 4G coverage along with additional 5 MHz spectrum and 2G

19,269
14,521
technology neutrality to support higher data and voice traffic and to drive
15,164
superior customer experience. Grameenphone rolled out 5,009 4G sites,

88
2,355 3G sites and 1,527 2G sites in 2018, increasing the 3G population

coverage to 95.2% (2017: 92.6%). With 14,521 sites across the country,
Grameenphone currently provides its telecommunication services
Grameenphone Ltd.
13 14 15 16 17 18
Annual Report 2018
covering 99.5% of the total population of the country.

Balance Sheet
Total asset base increased to BDT 138.7 billion (2017: BDT 130.2 billion) mainly for the increase in intangible assets (acquisition
of 5MHz spectrum, 4G licence and 2G technology neutrality) and recognition of contract cost as an impact of adopting IFRS 15.
This was partly offset by decrease in current assets from cash and cash equivalents.
Total liabilities increased slightly during 2018, mainly for the liability of spectrum acquisition partly offset by payments of 6th and
7th installment of long term loan from IFC.
Total equity increased to BDT 42.4 billion (2017: BDT 35.1 billion) due to increased profit. The net profit generated from operations
during the year 2018 was BDT 35.2 billion (2017: BDT 27.4 billion), partly offset by payment of final dividend for the year 2017
and interim dividend for the year 2018. There was also a favourable impact in retained earnings of BDT 2.6 billion from opening
balance adjustment on initial application of IFRS 15.
Other Disclosure/Statements Pursuant to the Provisions of the BSEC’s Corporate Governance Code 2018
Accounting policies and estimation for preparation of financial statements
The financial statements of Grameenphone have been prepared in accordance with International Financial Reporting Standards
(IFRS), the Companies Act 1994, the Securities and Exchange Rules 1987, relevant guidelines issued by the Bangladesh Securities
and Exchange Commission and other applicable laws in Bangladesh. Detail description of accounting policies and estimation
used for preparation of the financial statements of the Company are disclosed in the notes 2 to 3 of the financial statements.
Changes in accounting policies and estimation
The accounting policies applied are consistent with those applied in the previous financial year, except for the implementation of
new accounting standards as described in the notes 3.8, 3.13 and 3.18 of the financial statements.
Comparative analysis of financial performance, financial position and cash flows
Major areas of financial performance, financial position as well as cash flows (including effects of inflation) with immediate
preceding five years are as follows:
Reported numbers 2018 2017 2016 2015 2014 2013

Financial Performance (in million BDT)
Revenue 132,832 128,436 114,862 104,754 102,663 96,624
Financial Position (in million BDT)
Paid-up Capital 13,503 13,503 13,503 13,503 13,503 13,503
Total Assets 138,713 130,220 130,500 132,450 130,673 135,221
Total Liabilities 96,346 95,099 96,927 101.824 99,308 104,080
Current Assets 13,369 20,658 10,941 11,928 14,865 16,993
Cash Flows (in million BDT)
Net cash Generated from Operating Activities 60,411 57,771 46,152 38,791 31,255 37,081
Net cash used in Investing Activities (30,200) (12,944) (19,839) (19,907) (20,069) (28,111)
Net cash used in Financing Activities (36,698) (35,336) (27,553) (19,491) (10,972) (7,727)
Financial Ratios
Current Asset to Current Liability 0.17 0.28 0.16 0.18 0.24 0.22
Debt to Equity 0.43 0.56 0.81 1.12 1.08 0.80
Operating Profit Margin 43% 39% 36% 35% 36% 34%
89
Net Profit Margin 26% 21% 20% 19% 19% 15%

Return on Equity 91% 80% 70% 64% 63% 44%
Grameenphone Ltd.
Annual Report 2018
Return on Assets 26% 21% 17% 15% 15% 12%

Financial Analysis
Reported numbers 2018 2017 2016 2015 2014 2013

Ordinary Shares Information
Ordinary Shares Outstanding (in million) 1,350 1,350 1,350 1,350 1,350 1,350
Face Value per Share 10 10 10 10 10 10
Cash Dividend on Paid up Capital1 280% 205% 175% 140% 160% 140%
Dividend Payout1 108% 101% 105% 96% 109% 129%
Net Asset Value per Share2 31.38 26.01 24.86 22.68 23.23 23.06
Net Operating Cash Flow per Share3 44.74 42.78 34.18 28.73 23.15 27.46
Earnings Per Share3 26.04 20.31 16.68 14.59 14.67 10.89
*Gain/loss on disposal of property, plant and equipment has been included in operating profit.
1
Including proposed dividend
2
Based on BDT 10 equivalent ordinary share outstanding at 31 December.
3
Based on weighted average number of share of BDT 10 each.
Inflation Adjusted 2018 2017 2016 2015 2014 2013

Financial Performance (in million BDT) Base Year
Revenue 98,431 100,674 94,932 91,704 95,634 96,624
Financial Position (in million BDT)
Paid-up Capital 10,006 10,584 11,160 11,821 12,578 13,503
Total Assets 102,789 102,073 107,857 115,949 121,726 135,221
Total Liabilities 71,394 74,543 80,109 89,139 92,509 104,080
Current Assets 9,906 16,193 9,043 10,442 13,847 16,993
Cash Flows (in million BDT)
Net cash Generated from Operating Activities 44,766 45,284 38,144 33,958 29,115 37,081
Net cash used in Investing Activities (22,378) (10,146) (16,397) (17,427) (18,695) (28,111)
Net cash used in Financing Activities (27,194) (27,698) (22,773) (17,062) (10,220) (7,727)
Inflation Rate 5.78% 5.44% 5.92% 6.41% 7.35%

*Inflation Rate Source: Bangladesh Bureau of Statistics
*Since inflation rates are only available for fiscal years, they have been applied for the financial years
Comparison of financial performance, financial position and cash flows with the peer industry scenario
Grameenphone is the only listed entity in the telecommunication industry of Bangladesh. Information about financial performance,
financial position and cash flows of other major operators in the industry are not publicly available. Hence, comparative analysis
with the peer industry could not be presented.
Financial and economic scenario of Bangladesh and the globe
2018 saw the GDP growth reach a record high 7.86%1 riding on buoyant exports, robust agricultural output as well as boost from
the industrial sectors and strong domestic and external demand. Per capita income rose to USD 1,751 in FY 2017-18, up from USD
1,610 in FY 2016-172. The broad-based pick-up in economic activity continued in Q4 of FY 2017-183. This broadly matches the
trend in recent years, where the rate of growth has matched or exceeded adjacent economies. The macroeconomic fundamentals
remain strong with real GDP growth expected to continue4. On the supply side, the growth momentum received support from the
industry and the service sectors, while the agricultural sector also remained solid. The growth was aided by favourable financial
conditions and fiscal policy support, resulting in a pickup of both public and private investment as reflected in the strong growth
of investment related imports.
1
Bangladesh Bureau of Statistics
2
Planning Ministry, as reported in The Daily Star 18 September 2018
90
3
Bangladesh Bureau of Statistics, Grameenphone Strategy team analysis
4
Data Sources: Bangladesh Bureau of Statistics, UN Population Division, World Bank, Economist Intelligence Unit and Analysis Mason
Grameenphone Ltd.
Annual Report 2018

The country will continue its journey on the path to middle-income economy status along with implementation of the sustainable
development goals (SDGs). However, infrastructure, governance, and complexity of doing business remain as major challenges
to Bangladesh’s vast economic potentials. Strength of the Banking sector remains a concern through FY2019. Looking ahead,
delivery on broader development goals, pro-business policy reforms, accelerated resource mobilisation, expanded tax base,
improvements in infrastructure, and stabilised banking sector should help Bangladesh continue on a path of inclusive economic
growth and sustainable development.
Regionally, inflation performance followed a mixed trend in South Asia, with rates increasing marginally in India (4.9% Q4 FY
2017-18 from 4.3% in Q35) and significantly in Pakistan (5.2% from 3.2%6), while it fell in Sri Lanka (2.5% from 2.8%7). Commodity
prices in the global market continued its rising trend in Q4 of financial year 2017-18, driven by strong supply and demand side
activities in both emerging and advanced economies. While accelerated growth lifted demand, geopolitical tensions along
with other variables such as production cuts resulted in supply constraints, with oil being a prime example. The final quarter of
2018 was not good for equity markets globally. Investors have had to contend with rising US central bank interest rates, a sharp
slowdown in euro zone business confidence, weaker Chinese growth and rising geopolitical concerns (including Brexit, Italian
politics and the ongoing trade conflict between the US and China). On the plus side, over the quarter as a whole government
bonds at least lived up to their traditional role as the defensive part of a well balanced portfolio8.
Risks and Concerns related to the financial statements
Grameenphone has a structured process to identify Financial Statement risks and deploy mitigating controls to ensure Financial
Statement gives true and fair view of the events and transactions occurred during the period.
Grameenphone has integrated process to review the risks arising from transaction, process, people, external and regulatory
environment. Every year Financial Statement risks are reviewed involving control and process owners to identify risks effectively
so that Financial Statement assertions are met. Grameenphone follows a risk based approach where both standard and local
risks are covered. Standard Risk are those risks common to Telenor Group and Local risk are Grameenphone specific risks that
arises due to business process, people and the regulatory environment we operate in. Each risk is evaluated through probability
and impact matrix and categorised into a four point rating scale (Very High, High, Medium and Low).
Appropriate controls are designed and deployed to mitigate the identified risks to an acceptable level. ‘Risk coverage’ is
performed in subsequent years to enhance the control capabilities to ensure particular control is effective and efficient in
mitigating the risks. Risk mitigation status is monitored through review of control performance applying control testing method
(self-assessment and direct testing) twice a year (Interim and Year-end). Details of ICFR activity is described in the Internal
Control over Financial Reporting (ICFR) section of the Annual report on Page 51.
Future Plan of Grameenphone 2019
Continued focus on winning in voice, coupled with growth in data and digital services and robust personalisation capability in
2018, will establish strong foundations for Grameenphone in 2019 to pursue innovations amid customers’ evolving needs in their
digital life. We will continue our relentless focus to drive resilient performance and sustainable returns in 2019.
Key priorities in 2019 are to focus on coverage leadership, distribution and challenging red markets while leading 4G conversion
with surgical investments and ARPU drive. There will also be a special focus on scaling the business segment by building ICT
competency and winning in postpaid and IoT. Grameenphone will also continue to:
• Drive Business Simplification Program supported by institutionalising sustainable and efficient cost structure through
a strengthened Cost Office function.
• Build a winning team by ensuring relevance of key competencies, sharpening focus and implementing new way of work in
a changing and complex environment.
• Focus on long and short term advocacy as well as reputation and awareness building platforms to responsibly and proactively
manage the business environment.
Our persistent focus on products and service innovations, retail experience reforms, and digitisation of core business for future
growth will set the stage for us to capitalise on new growth opportunities in 2019.
Grameenphone aims to improve 2019 service revenue growth development and to sustain the strong EBITDA focus, leveraging
on sustainable growth, disciplined cost management and innovating on operational efficiencies.
Michael Patrick Foley

Chief Executive Officer
27 January 2019
91
5
CPD (2018): State of the Bangladesh Economy in FY2018 (First Reading)
6
Pakistan Bureau of Statistics
Grameenphone Ltd.
Annual Report 2018
7
Central Bank of Sri Lanka
8
J.P. Morgan Economic Research, J.P. Morgan Asset Management

BDBL Bhaban (Level-13) Telephone: (+88-02) 410 20030 to 35
12 Kawran Bazar Commercial Area Facsimile: (+88-02) 410 20036
Dhaka-1215, Bangladesh E-mail: [email protected]
Web: www.acnabin.com
Report to the Shareholders of

Grameenphone Ltd.
(As required under the BSEC Corporate Governance Guidelines)
We have examined the compliance status to the Corporate Governance Code by Grameenphone Ltd. for the year ended on 31
December 2018. This Code relates to the Notification No,BSEC/CMRRCD/2006-158/207/Admin/80 dated 3 June 2018 of the
Bangladesh Securities and Exchange Commission.
Such compliance with the Corporate Governance Code is the responsibility of the Company. Our examination was limited to
the procedures and implementation thereof as adopted by the Management in ensuring compliance to the conditions of the
Corporate Governance Code.
This is a scrutiny and verification and an independent audit on compliance of the conditions of the Corporate Governance Code
as well as the provisions of relevant Bangladesh Secretarial Standards (BSS) as adopted by the Institute of Chartered Secretaries
of Bangladesh (ICSB) in so far as those standards are not inconsistent with any condition of this Corporate Governance Code.
We state that we have obtained all the information and explanations, which we have required, and after due scrutiny and
verification thereof, we report that, in our opinion:
a) The Company has complied with the conditions of the Corporate Governance Code as stipulated in the above mentioned
Corporate Governance Code issued by the Commission;
b) The Company has complied with the provisions of the relevant Bangladesh Secretarial Standards (BSS) as adopted by
the Institute of Chartered Secretaries of Bangladesh (ICSB) as required by this Code;
c) Proper books and records have been kept by the Company as required under the Companies Act, 1994, the securities
laws and other relevant laws; and
d) The Governance of the Company is satisfactory.
This is also no endorsement about quality of contents in the Annual Report of the Company for 2018.
Abu Sayeed Mohammad Nayeem, FCA

Partner
ACNABIN
Chartered Accountants
27 January 2019
92
Grameenphone Ltd.
Annual Report 2018
Directors' Report
FINANCIAL
STATEMENTS
2018
Independent Auditor’s Report 94

Statement of Financial Position 98
Statement of Profit or Loss and 99
other Comprehensive Income
Statement of Changes in Equity 100
Statement of Cash Flows 101
Notes to the Financial Statements 102
Gulshan Pink City Phone : 880-2-8881824-6
Suites # 01-03, Level : 07, Plot # 15, Road # 103 Fax : 880-2-8881822
Gulshan Avenue, Dhaka -1212, Bangladesh E-mail : [email protected]
Independent Auditor’s Report

To the Shareholders of Grameenphone Ltd.
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Grameenphone Ltd. (the Company), which comprise the statement of financial
position as at 31 December 2018, and the statement of profit or loss and other comprehensive income, statement of changes
in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies and other explanatory information.
In our opinion, the accompanying financial statements give true and fair view, in all material respects, of the financial position of
the Company as at 31 December 2018, and of its financial performance and its cash flows for the year then ended in accordance
with International Financial Reporting Standards (IFRSs).
Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those
standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We
are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics
for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial
statements in Bangladesh, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the
IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of matter
We draw attention to Note 45 to the financial statements, where management explains the circumstances of claim from
Bangladesh Telecommunication Regulatory Commission (BTRC), claim from National Board of Revenue (NBR) for SIM tax on
replacement SIMs, the uncertainties of getting rebate of input VAT related to 2G licence renewal fee and claim from Large
Taxpayers Unit (LTU) – VAT based on assessment by office of the Comptroller and Auditor General (C&AG), interest claim on SIM
tax from NBR and management’s position on the same. Our opinion is not modified in respect of this matter.
Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the financial
statements for 2018. These matters were addressed in the context of the audit of the financial statements as a whole, and in
forming the auditor’s opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our
description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial statements section of
our report, including in relation to these matters.
Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material
misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address
the matters below, provide the basis for our audit opinion on the accompanying financial statements.
Appropriateness of revenue recognition and disclosures on the impact of the initial application of IFRS 15
Revenue of BDT 132.80 billion is recognised in the income statement of Grameenphone Ltd. This material item is subject to
considerable inherent risk due to the complexity of the systems necessary for properly recording and identifying revenue and
the impact of ever changing business, price and tariff models (including tariff structures, customer loyalty rewards, and bundled
subscription based products). Against this background, the proper application of the accounting standards is considered to be
complex and to a certain extent based on estimates and assumptions made by management.
In addition, the application of the new standard on revenue recognition, “International Financial Reporting Standard 15 –
Revenue from Contracts with Customers” (IFRS 15), will have a significant impact from the financial year 2018 onward, which has
been presented in the Note 3.18.2 to the financial statements for the financial year 2018. Grameenphone Ltd. has exercised the
option of initial application to recognise the cumulative effect of contract assets and the costs of obtaining contracts using the
modified approach. In view of the expected material impact and the complexity of the company wide implementation of the new
standard, the presentation of the actual impact was of particular importance for our audit.
94
How our audit addressed the key audit matter:

In light of the fact that the high degree of complexity and estimates and assumptions give rise to an increased risk of accounting
Grameenphone Ltd.
misstatements, we assessed the Company’s processes and controls for recognising revenue as part of our audit. Furthermore, in
Annual Report 2018
A member firm of Ernst & Young Global Limited

EY refers to the global organisation, and/or one or more of the independent
member firms of Ernst & Young Global Limited
order to mitigate the inherent risk in this audit area, our audit approach included testing of the controls and substantive audit
procedures, including:
• Assessing the environment of the measurement as well as other relevant systems supporting the accounting of revenue,
including the implemented controls of system changes.
• Assessing controls for IT-systems and procedures supporting revenue recognition.
• Assessing the invoicing and measurement systems up to entries in the general ledger.
• Examining customer invoices and receipts of payment on a test basis.
• Testing the revenue charging model against the regulatory guidelines on a sample basis.
Furthermore, we assessed the accounting effects of new business and price models. We assured ourselves of the appropriateness
of the systems, processes, and controls in place and that the estimates and assumptions made by management are sufficiently
documented and substantiated to ensure that revenue is properly recognised.
With regard to the impact of the initial application of IFRS 15 from the financial year 2018 onward, we assessed the impact
determined after the implementation of the new standard. Our audit approach included, among other items:
• Assessing the accounting estimates made for the different business models of the Company.
• Assessing the design of the processes set up to account for the transactions in accordance with the new standard.
• Reviewing and assessing management’s calculation which were used to adjust the opening balance of equity.
Claims, litigations and contingent liabilities

The Company is subject to a number of significant claims and litigations. The amounts of claims are significant and estimates of
the amounts of provisions or contingent liabilities are subject to significant management judgement. These claims and regulatory
matters are under further review of relevant regulatory committee and review of legal or arbitrational proceedings; and they are
uncertain in timing of resolutions and amount or consequences.
These claims and litigations matters were a key audit matter due to the amounts involved, potential consequences and the
inherent difficulty in assessing the outcome. The assessment of whether or not a liability should be recognised involves judgment
from management.

We have gained an understanding of the process of identification of claims, litigations and contingent liabilities and identified key
controls in the process. For selected controls we have performed tests of controls. Moreover, we have gained an understanding of
management’s decision process to disclose contingent matters in the financial statements.
Our procedures also included among others:

• Discussion of material legal cases with the Company’s Legal Department;
• Analysis of responses in legal letters independently obtained from the external legal counsels of the Company;
• Analysis of the minutes of meetings of the Board of Directors and the Board Audit Committee;
• Analysis of assessment of contingent liabilities and changes in provisions for claims and litigations which are updated on a
quarterly basis;
• Assess disclosures in the financial statements which are potentially of material contingent nature and their measurement.
Uncertain tax positions

The Company is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of
business, including indirect taxes and transaction related tax matters that could eventually require payments of taxes and
possible additional charges. The assessment of uncertainty and risk of one or more unfavourable outcomes involve judgement
from management.
These uncertain tax positions were a key audit matter because of the amounts involved and because of the uncertainty in
estimating the final outcome of these matters.
The Company records provisions for uncertain liabilities, including tax contingencies, when it is more likely than not that a liability
has been incurred, and the amount can be reliably estimated.

95
We have taken into consideration the complexity of accounting and tax issues, internal control; and gained an understanding
over the entity’s accounting for taxes and management’s process for assessing the effectiveness of internal control over the
significant income tax accounts and the related financial statement disclosures.
Grameenphone Ltd.
Annual Report 2018

EY refers to the global organisation, and/or one or more of the independent member firms of Ernst & Young Global Limited
Our procedures also included among others:
• Discussing with the management regarding tax matters, tax jurisdictions and tax communications;
• Identifying and testing relevant controls over tax accounts and financial statement disclosures;
• Analysis of responses in letters independently obtained from the tax consultant and external counsels of the Company on
various matters;
• Substantive procedures performed including vouching account reconciliations and tracing amounts to the appropriate
underlying support and trial balances; and
• Analysis of the accounting of the pre-tax effects of transactions and the tax technical application to specific transactions.
Other matters
The financial statements of Grameenphone Ltd. for the year ended 31 December 2017, were audited by another auditor who
expressed an unmodified opinion on those statements on 29 January 2018.
Other information included in the Company’s 2018 Annual Report

Other information consists of the information included in The Company’s 2018 Annual Report other than the financial statements
and our auditor’s report thereon. We obtained Director’s Report, Management Discussion and Analysis, Six years financial
information, and Corporate Governance report prior to the date of our auditor’s report, and we expect to obtain the remaining
reports of the Annual Report after the date of our auditor’s report. Management is responsible for the other information.
Our opinion on the financial statements does not cover the other information and we do not and will not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in
the audit or otherwise appears to be materially misstated. If, based on the work we have performed on the other information
obtained prior to the date of the auditor’s report, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs, the
Companies Act 1994, the Securities and Exchange Rules 1987 and other applicable laws and regulations and for such internal
control as management determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
•
96
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
Grameenphone Ltd.
Annual Report 2018
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements

In accordance with the Companies Act 1994 and the Securities and Exchange Rules 1987, we also report the following:
i) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the
purposes of our audit and made due verification thereof;
ii) in our opinion, proper books of account as required by law have been kept by the company so far as it appeared from our
examination of these books;
iii) the statement of financial position and statement of profit or loss and other comprehensive income dealt with by the report
are in agreement with the books of account and returns; and
iv) the expenditure incurred was for the purposes of the Company’s business.
A. Qasem & Co.

Dhaka, 27 January 2019
97
Grameenphone Ltd.
Annual Report 2018

Financial Analysis
Grameenphone Ltd.
Statement of financial position
As at 31 December 2018
31 December 2018 31 December 2017
Assets Notes BDT (000) BDT (000)
Non-current assets
Property, plant and equipment 4 69,775,619 70,483,407
Intangible assets 5 47,311,582 35,229,998
Contract cost 7 4,438,240 -
Other non-current assets 8 3,819,233 3,848,495
Total non-current assets 125,344,674 109,561,900
Current assets
Inventories 9 224,359 462,440
Trade receivables and others 10 7,212,047 7,781,236
Cash and cash equivalents 11 5,932,292 12,414,668
Total current assets 13,368,698 20,658,344
Total assets 138,713,372 130,220,244
Equity and liabilities

Shareholders’ equity
Share capital 13 13,503,000 13,503,000
Share premium 14 7,840,226 7,840,226
Capital reserve 15 14,446 14,446
Deposit from shareholders 16 1,880 1,880
Retained earnings 21,007,530 13,761,900
Total equity 42,367,082 35,121,452
Non-current liabilities
Finance lease obligation 17 4,708,977 4,930,194
Loans and borrowings 18 2,894,157 8,539,290
Deferred tax liabilities 19 6,032,336 6,238,396
Employee benefits 20 1,599,122 426,466
Other non-current liabilities 21 3,678,998 423,735
Total non-current liabilities 18,913,590 20,558,081
Current liabilities
Trade payables and others 22 26,393,337 24,225,379
Provisions 23 14,906,422 15,257,271
Loans and borrowings 18 5,759,145 5,679,626
Current tax liabilities 24 27,550,278 26,435,242
Other current liabilities 25 2,823,518 2,943,193
Total current liabilities 77,432,700 74,540,711
Total equity and liabilities 138,713,372 130,220,244
The annexed notes 1 to 46 form an integral part of these financial statements.
Director Director Chief Executive Officer Company Secretary
As per our report of same date.

98
A. Qasem & Co.

Grameenphone Ltd.
Annual Report 2018
Dhaka, 27 January 2019 Chartered Accountants
Auditor's Report & Audited Financial Statements

Grameenphone Ltd.
Statement of profit or loss and other comprehensive income
For the year ended 31 December 2018
2018 2017
Notes BDT (000) BDT (000)
Revenue 26 132,831,967 128,435,814
Cost of material and traffic charges 27 (7,329,552) (10,322,076)

Salaries and personnel cost 28 (8,561,724) (8,826,168)
Operation and maintenance 29 (5,584,552) (4,011,750)
Sales, marketing and commissions 30 (13,475,388) (11,256,660)
Revenue sharing, spectrum charges and licence fees 31 (9,570,806) (9,816,951)
Other operating (expenses)/income 32 (8,391,513) (10,911,229)
Depreciation and amortisation 33 (22,539,178) (23,336,591)
(75,452,713) (78,481,425)
Operating profit 57,379,254 49,954,389
Finance (expense)/income 34 (1,675,624) (1,467,214)

Foreign exchange (loss)/gain (114,432) (1,164,885)
(1,790,056) (2,632,099)
Profit before tax 55,589,198 47,322,290
Income tax expense 35 (20,429,314) (19,899,642)

Profit after tax 35,159,884 27,422,648
Other comprehensive income

Item that will not be reclassified subsequently to profit or loss
Remeasurement of defined benefit plan 20 (351,088) 762,284
Related taxes 140,435 (304,914)
(210,653) 457,370
Total comprehensive income for the year 34,949,231 27,880,018
Earnings per share

Basic earnings per share
(per value BDT 10 each in BDT) 36 26.04 20.31
The annexed notes 1 to 46 form an integral part of these financial statements.
Director Director Chief Executive Officer Company Secretary
As per our report of same date.
A. Qasem & Co.

99
Grameenphone Ltd.
Annual Report 2018
Dhaka, 27 January 2019

Annual Report 2018
Grameenphone Ltd. 100
Grameenphone Ltd.
Statement of changes in equity
Financial Analysis
for the year ended 31 December 2018
Share Share Capital Deposit from Retained

capital premium reserve shareholders earnings Total
BDT (000) BDT (000) BDT (000) BDT (000) BDT (000) BDT (000)
Balance as at 01 January 2017 13,503,000 7,840,226 14,446 1,880 12,212,732 33,572,284

Transactions with the equity holders:
Final dividend for 2016 - - - - (12,152,700) (12,152,700)
Interim dividend for 2017 - - - - (14,178,150) (14,178,150)

Total comprehensive income for 2017
Profit for the year - - - - 27,422,648 27,422,648
Other comprehensive income/(loss) - - - - 457,370 457,370
Balance as at 31 December 2017 13,503,000 7,840,226 14,446 1,880 13,761,900 35,121,452
Balance as at 01 January 2018 13,503,000 7,840,226 14,446 1,880 13,761,900 35,121,452
Adjustment on initial application of

IFRS 15 as at 01 January 2018 - - - - 2,678,149 2,678,149
Restated balance as at 01 January 2018 13,503,000 7,840,226 14,446 1,880 16,440,049 37,799,601
Transactions with the equity holders:

Final dividend for 2017 - - - - (13,503,000) (13,503,000)
Interim dividend for 2018 - - - - (16,878,750) (16,878,750)
Total comprehensive income for 2018

Profit for the year - - - - 35,159,884 35,159,884
Other comprehensive income/(loss) - - - - (210,653) (210,653)
Balance as at 31 December 2018 13,503,000 7,840,226 14,446 1,880 21,007,530 42,367,082
Grameenphone Ltd.
Statement of cash flows
For the year ended 31 December 2018
2018 2017
BDT (000) BDT (000)
Cash flows from operating activities
Cash receipts from customers 132,599,654 127,506,605
Payroll and other payments to employees (7,780,088) (8,581,995)

Payments to suppliers, contractors and others* (42,241,425) (44,993,252)
Interest received 398,295 397,940
Interest paid (1,690,713) (1,848,595)
Income tax paid (20,872,955) (14,709,416)
(72,186,886) (69,735,318)
Net cash generated from operating activities 60,412,768 57,771,287
Cash flows from investing activities
Payment for acquisition of property, plant and equipment and intangible assets (30,378,864) (13,086,584)
Proceeds from sale of property, plant and equipment 179,266 241,347
Investment in preference shares - (99,000)
Net cash used in investing activities (30,199,598) (12,944,237)
Cash flows from financing activities
Proceeds from/(Payment) of short-term bank loan - (2,688,200)

Payment of long-term loan (5,833,955) (5,653,890)
Payment of dividend (30,381,750) (26,330,850)
Payment of finance lease obligation (483,089) (663,359)
Net cash used in financing activities (36,698,794) (35,336,299)
Net change in cash and cash equivalents (6,485,624) 9,490,751
Cash and cash equivalents as at 01 January 12,414,668 2,911,860

Effect of exchange rate fluctuations on cash held* 3,248 12,057
Cash and cash equivalents as at 31 December (Note 11) 5,932,292 12,414,668
* Comparative figures have been rearranged to segregate the effect of exchange rate fluctuations on cash held in foreign currency denominated bank account.
101
Grameenphone Ltd.
Annual Report 2018

Financial Analysis
Grameenphone Ltd.
Notes to the financial statements
for the year ended 31 December 2018
1 Corporate information
Grameenphone Ltd. (hereinafter referred to as “Grameenphone”/”GP”/”the Company”) is a public limited company
incorporated in Bangladesh in 1996 under the Companies Act 1994 and has its registered address at GPHOUSE, Bashundhara,
Baridhara, Dhaka 1229. Grameenphone was initially registered as a private limited company and subsequently converted
into a public limited company on 25 June 2007. During November 2009, Grameenphone listed its shares with both Dhaka
and Chittagong Stock Exchanges. The immediate parent of Grameenphone is Telenor Mobile Communications AS and the
ultimate parent is Telenor ASA; both the companies are incorporated in Norway.
The Company is primarily involved in providing mobile telecommunication services (voice, data and other related services),
along with digital services in Bangladesh. The company also provides international roaming services through international
roaming agreements with various operators of different countries across the world.
2 Basis of preparation
These financial statements are individual financial statements of Grameenphone, and have been prepared in accordance
with International Financial Reporting Standards (IFRS), the Companies Act 1994, the Securities and Exchange Rules
1987, relevant guidelines issued by the Bangladesh Securities and Exchange Commission and other applicable laws in
Bangladesh. These individual financial statements present the financial position and performance of Grameenphone and
its investment in Accenture Communications Infrastructure Solutions Ltd. (ACISL) being accounted for under the equity
method in accordance with IAS 28 Investment in Associates and Joint Ventures.
In accordance with the requirements of IAS 36 Impairment of Assets, the carrying amount of investment in ACISL as at 31
October 2016 has been fully impaired and no further share of loss has been recognised in line with paragraph 39 of IAS 28
Investment in Associates and Joint Ventures. The assessment of recoverable amount from investment in associate remained
unchanged as at 31 December 2018. Hence, for understanding of Grameenphone’s stand-alone financial performance, a
separate statement of profit or loss and other comprehensive income is not necessary.
These financial statements have been prepared on going concern basis. Unless otherwise specifically mentioned, historical
cost principle has been followed for the purpose of these financial statements.
Authorisation for issue
These financial statements have been authorised for issue by the Board of Directors of the company on 27 January 2019.
2.1 Functional and presentation currency

Items included in these financial statements are measured using the currency of the primary economic environment in
which the company operates (‘the functional currency’). These financial statements are presented in Bangladesh Taka
(“BDT”) which is also the functional currency of the Company. The amounts in these financial statements have been
rounded off to the nearest BDT in thousand (BDT’000) except otherwise indicated. As a result of these rounding off, in
some instances the totals may not match the sum of individual balances.
2.2 Use of estimates and judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures including
the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
Judgements
102
In the process of applying the accounting policies, management has made the following judgements, which have the
most significant effect on the amounts recognised in the financial statements:
Grameenphone Ltd.
Annual Report 2018

1. The company has a lease agreement with Bangladesh Railway for Fibre Optic Network (FON) and
this lease has been treated as finance lease. For details, please see note 17 to these financial statements.
2. The company has significant influence over Accenture Communications Infrastructure Solutions Ltd. (ACISL).
3. The company has entered into lease agreements for base stations, switch locations and office space. After evaluation
of the terms and conditions of these agreements, the company has determined that it does not have substantial risks
and rewards related to the assets. For operating lease commitments, please see note 32.2 to these financial statements.
Estimates and assumptions

Key estimates and assumptions used in preparation of these financial statements are:
1. Applicable tax rate for Income Year 2018 will be declared by Finance Act 2019. For the purpose of these financial statements,
management has assumed that the existing corporate tax rate (40%) will be applicable for Income Year 2018 as well.
2. Appropriate financial and demographic assumptions have been used in consultation with a certified actuary to
measure defined benefit obligation as at 31 December 2018.
3. Key assumptions about the likelihood and magnitude of outflow of resources have been used to recognise and
measure provisions and contingencies.
4. Recoverable amount of Investment in Associate.
3 Significant accounting policies

Accounting policies set out below have been applied consistently to all years presented in these financial statements.
Comparative information has been rearranged wherever considered necessary to conform to the current year’s presentation.
3. 1 Current versus non-current classification

The company presents assets and liabilities in statement of financial position based on current/non-current classification.
An asset is current when it is:
i) expected to be realised or intended to be sold or consumed in normal operating cycle, or

ii) expected to be realised within twelve months after the reporting period, or
iii) held primarily for the purpose of trading, or
iv) cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months
after the reporting period.
All other assets are classified as non-current.
A liability is current when it is:
i) expected to be settled in normal operating cycle, or

ii) due to be settled within twelve months after the reporting period, or
iii) held primarily for the purpose of trading, or
iv) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
3.2 Offsetting
The company reports separately both assets and liabilities, and income and expenses, unless required by an applicable
accounting standard or offsetting reflects the substance of the transaction and such offsetting is permitted by applicable
accounting standard.
Cash receipts and payments on behalf of customers when the cash flows reflect the activities of the customer rather than
those of the entity and cash receipts and payments for items in which the turnover is quick, the amounts are large, and the
maturities are short, are presented net in the statement of cash flows.
103
3.3 Cash dividend to the equity holders

The company recognises a liability to pay cash dividend when the distribution is authorised and the distribution is no longer
at the discretion of the company. As per the corporate laws in Bangladesh, a distribution is authorised when it is approved
Grameenphone Ltd.
Annual Report 2018
by the shareholders. A corresponding amount is recognised directly in equity.

Financial Analysis
3.4 Cash and cash 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 the company in the
management of its short term commitments.
3.5 Property, plant and equipment
(a) Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment
losses, if any.
The cost of an item of property, plant and equipment comprises its purchase price, import duties and non-refundable
taxes, after deducting trade discount and rebates, and any costs directly attributable to bringing the asset to the location
and condition necessary for it to be capable of operating in the intended manner. Cost also includes initial estimate of the
costs of dismantling and removing the item and restoring the site on which it is located and capitalised borrowing costs.
The obligations for costs of dismantling and removing the item and restoring the site (generally called ‘asset retirement
obligation’) are recognised and measured in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.
When major parts of an item of property, plant and equipment have different useful lives, they are accounted for as
separate items (major components) of property, plant and equipment.
(b) Subsequent costs

The cost of replacing or upgradation of an item of property, plant and equipment is recognised in the carrying amount of
the item if it is probable that the future economic benefits embodied within the item will flow to the company and its cost
can be measured reliably. The carrying amount of the replaced component is derecognised. The costs of the day to day
servicing of property, plant and equipment are recognised in profit or loss as incurred.
(c) Depreciation
No depreciation is charged on land and capital work in progress (CWIP) as the land has unlimited useful life and CWIP has
not yet been placed in service.
Depreciation on other items of property, plant and equipment is recognised on a straight-line basis over the estimated
useful life of each item of property, plant and equipment. The range of estimated useful lives shown below depends on
sub-category of the assets under the broad category. Leased assets are depreciated over the shorter of the lease term
and their useful lives, unless it is reasonably certain that the company will obtain ownership by the end of the lease term.
Depreciation method, useful lives and residual values are reviewed at each year-end and adjusted if appropriate. The
estimated useful lives of the items of property, plant and equipment for the current and comparative periods are as follows:
2018 2017
Years Years
Own assets
Building 10 -50 10 -50
Base station - equipment 3-10 3-10
Base station - tower, fibre optic network and related assets 7- 30 7- 30
Transmission equipment 5-10 5-10
Computers and other IT equipment 3-4 3-4
Furniture and fixtures (including office equipment) 3-5 3-5
Vehicles 4 4
Leased asset
Fibre Optic Network (FON) 22.5 - 30 22.5 - 30
(d) Derecognition
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An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected
from its use or disposal. Any gain or loss on derecognition of an item of property, plant and equipment is determined as
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Annual Report 2018
the difference between the net disposal proceeds and the carrying amount of the asset and is recognised in profit or loss.

(e) Capital work in progress

Capital work in progress consists of unfinished work at sites and capital inventory. Spare parts expected to be used for
more than one year are treated as capital work in progress. In case of import of components, capital work in progress is
recognised when risks and rewards associated with such assets are transferred to the company.
(f) Capitalisation of borrowing costs

As per the requirements of IAS 23 Borrowing Costs, directly attributable borrowing costs are capitalised 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 sale. 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 recognised in profit or loss in the period in which they are incurred.
3.6 Intangible assets
(a) Recognition and measurement

Intangible assets that are acquired by the company and have finite useful lives are measured at cost less accumulated
amortisation and accumulated impairment loss, if any. Intangible assets are recognised when all the conditions for
recognition as per IAS 38 Intangible Assets are met. The cost of an intangible asset comprises its purchase price, import
duties and non-refundable taxes and any directly attributable cost of preparing the asset for its intended use.
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and
understanding, is recognised in the profit or loss as incurred.
Development activities involve a plan or design for the production of new and substantially improved products and
processes. Development expenditures, on an individual project, are recognised as an intangible asset when the company
can demonstrate all of the following:
(a) the technical feasibility of completing the intangible asset so that it will be available for use or sale;
(b) its intention to complete the intangible asset and use or sell it;
(c) its ability to use or sell the intangible asset;
(d) how the intangible asset will generate probable future economic benefits. Among other things, the entity can
demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or,
if it is to be used internally, the usefulness of the intangible asset;
(e) the availability of adequate technical, financial and other resources to complete the development and to use or sell
the intangible asset; and
(f) its ability to measure reliably the expenditure attributable to the intangible asset during its development.
Other development expenditures are recognised in profit or loss as incurred. Development costs previously recognised
as an expense are not recognised as an asset in a subsequent period. Following initial recognition of the development
expenditure as an asset, the cost model is applied requiring the asset to be carried at cost less any accumulated
amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and
the asset is placed in service. It is amortised over the period of expected future economic benefits. During the period of
development, the asset is tested for impairment annually.
Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is
reflected in profit or loss in the year in which the expenditure is incurred.
(b) Subsequent costs

Subsequent costs are capitalised only when they increase the future economic benefits embodied in the specific asset to
which they relate. All other costs are recognised in profit or loss as incurred.
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(c) Amortisation
Amortisation is recognised in profit or loss on a straight line basis over the estimated useful lives of intangible assets. The
estimated useful lives are as follows:
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Financial Analysis
2018 2017
Years Years
Software and others
Pulse Code Modulation (PCM) 5 5
Billing software 5 5
Other operational software 3-7 3-7
Network management software 7 7
Telecom licence and spectrum

Spectrum-2008 18 18
Telecom licence and spectrum -2011 15 15
3G licence and spectrum 15 15
4G licence and spectrum 15 N/A

Amortisation methods, useful lives and residual values are reviewed at each year-end and adjusted, if appropriate.
(d) Derecognition
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal.
Gains or losses arising from derecognition of intangible assets, measured as the difference between the net disposal
proceeds and the carrying amount of the assets, are recognised in profit or loss.
3.7 Investment in associate

An associate is an entity over which the investor has significant influence. Significant influence is the power to participate in
the financial and operating policy decisions of the investee, but is not to exercise control or joint control over those policies.
Investment in associate is accounted for using the equity method. Under the equity method, the investment in an associate
is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the investor’s share
of net assets of the associate since the acquisition date. The statement of profit or loss and other comprehensive income
reflects the investor’s share of the results of operations of the associate. Any change in other comprehensive income (OCI)
of the investee is presented as part of the investor’s OCI. In addition, when there has been a change recognised directly in
the equity of the associate, the investor recognises its share of any changes, when applicable, in the statement of changes
in equity. Unrealised gains and losses resulting from transactions between the investor and the associate are eliminated to
the extent of the interest in the associate.
Share of profit/loss of associate is not recognised in Grameenphone’s individual financial statements until it is realised
through dividend. Dividend income is recognised when Grameenphone’s right to receive payment is established.
3.8 Financial instruments

IFRS 9 sets out requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy
or sell non-financial items. This standard replaces IAS 39 Financial Instruments: Recognition and Measurement.
The details of new significant accounting policies and the nature and effect of the changes to previous accounting policies
are set out below.
Classification and measurement of financial assets and financial liabilities

IFRS 9 largely retains the existing requirements in IAS 39 for the classification and measurement of financial liabilities.
However, it eliminates the previous IAS 39 categories for financial assets of held to maturity, loans and receivables and
available for sale.
The adoption of IFRS 9 has not had a significant effect on Grameenphone’s accounting policies related to financial
liabilities. The impact of IFRS 9 on the classification and measurement of financial assets is set out below.
Under IFRS 9, on initial recognition, a financial asset is classified as measured at: amortised cost; Fair Value through Other
Comprehensive Income (FVOCI) – debt investment; Fair Value through Other Comprehensive Income (FVOCI) – equity
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investment; or Fair Value Through Profit or Loss (FVTPL). The classification of financial assets under IFRS 9 is generally
based on the business model in which a financial asset is managed and its contractual cash flow characteristics. Derivatives
embedded in contracts where the host is a financial asset in the scope of the standard are never separated. Instead, the
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Annual Report 2018
hybrid financial instrument as a whole is assessed for classification.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated
as at FVTPL:
a) it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
b) its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
a) it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets; and
b) its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the company may irrevocably elect to present
subsequent changes in the investment’s fair value in OCI. This election is made on an investment-by-investment basis.
All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL.
A financial asset (unless it is a trade receivable without a significant financing component that is initially measured at
the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly
attributable to its acquisition.
The following accounting policies apply to the subsequent measurement of financial assets.
Financial assets at FVTPL

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are
recognised in profit or loss.
Financial assets at amortised cost

These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is
reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit
or loss. Any gain or loss on derecognition is recognised in profit or loss. Trade receivables are classified as Financial assets
measured at amortised cost.
Debt investments at FVOCI

These assets are subsequently measured at fair value. Interest income calculated using the effective interest method,
foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are
recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.
Equity investments at FVOCI

These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the
dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in
OCI and are never reclassified to profit or loss.
Impairment of financial assets

IFRS 9 replaces the ‘incurred loss’ model in IAS 39 with an ‘expected credit loss’ (ECL) model. The new impairment
model applies to financial assets measured at amortised cost, contract assets and debt investments at FVOCI, but not to
investments in equity instruments.
The financial assets at amortised cost consist of trade receivables, cash and cash equivalents, and corporate debt securities.
Grameenphone measures loss allowances at an amount equal to ECL from trade receivables.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when
estimating ECLs, Grameenphone considers reasonable and supportable information that is relevant and available without
undue cost or effort. This includes both quantitative and qualitative information and analysis, based on Grameenphone’s
historical experience and informed credit assessment and including forward-looking information.
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Grameenphone considers a financial asset to be in default when the debtor is unlikely to pay its credit obligations to the
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company in full, without recourse by Grameenphone to actions such as realising security (if any is held).

Financial Analysis
Measurement of Expected Credit Losses (ECL)

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash
shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows
that the company expects to receive). ECLs are discounted at the effective interest rate of the financial asset.
At each reporting date, the company assesses whether financial assets carried at amortised cost and debt securities at
FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact
on the estimated future cash flows of the financial asset have occurred. Grameenphone uses Lifetime Expected Credit Loss
method for Trade receivables.
Presentation of impairment
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets.
For debt securities at FVOCI, the loss allowance is recognised in OCI, instead of reducing the carrying amount of the asset.
Impairment losses related to trade receivables and others, including contract assets, are presented separately in the notes
to the financial statement.
3.9 Inventories
Inventories consisting of scratch cards, SIM cards, mobile handsets, data cards and other devices are valued at lower of
cost and net realisable value. Cost of inventories include expenditure incurred in acquiring the inventories, production or
conversion costs and other costs incurred in bringing them to their existing location and condition. Cost of inventories is
determined by using the weighted average cost formula. Where necessary, allowance is provided for damaged, obsolete
and slow moving items to adjust the carrying amount of inventories to the lower of cost and net realisable value. Net
realisable value is based on estimated selling price in the ordinary course of business less the estimated costs of completion
and the estimated costs necessary to make the sale.
3.10 Employee benefits

The company maintains both defined contribution plan and defined benefit plan for its eligible permanent employees. The
eligibility is determined according to the terms and conditions set forth in the respective trust deeds and rules. Both of the
plans are funded and are recognised/approved under Income Tax Ordinance 1984.
(a) Defined contribution plan (provident fund)

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a
separate entity and has no legal or constructive obligation to pay further amounts. Obligations for contribution to defined
contribution plans are recognised as an employee benefit expense in profit or loss in the period during which related
services are rendered by employees. Advance contributions are recognised as an asset to the extent that a cash refund or
a reduction in future payment is available. Contributions to a defined contribution plan that are due more than 12 months
after the end of the period in which employees render the services are discounted to the present value.
Grameenphone has a separate recognised provident fund scheme. All permanent employees of Grameenphone contribute
10% of their basic salary to the provident fund and the company makes matching contributions.
The company recognises contribution to defined contribution plan as an expense when an employee has rendered related
services in exchange for such contribution. The legal and constructive obligation is limited to the amount Grameenphone
agrees to contribute to the fund.
(b) Defined benefit plan (gratuity)

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The employee gratuity
plan is considered as defined benefit plan as it meets the recognition criteria. The company’s obligation is to provide the
agreed benefits to current and former employees.
The net defined benefit liability (asset) in respect of a defined benefit plan is recognised in the statement of financial
position. The net defined benefit liability (asset) is made up of:
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i) the present value of defined benefit obligation; less

ii) the fair value of plan assets; adjusted for
iii) any effect of limiting a net defined benefit asset to the asset ceiling.
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Present value of defined benefit obligation is determined by professional actuary. Projected Unit Credit method is used
to measure the present value of defined benefit obligations and related current and past service cost by using mutually
compatible actuarial assumptions about demographic and financial variables.
Current service cost, past service cost and gain/loss on settlement and net interest on the net defined benefit liability
(asset) are recognised in profit or loss. Service cost and gain/loss on settlement are classified as personnel expense and
net interest on the net defined benefit liability (asset) is classified as financial expense.
Remeasurements of the net defined liability (asset) are recognised in other comprehensive income, comprising:
i) actuarial gains and losses;

ii) return on plan asset, excluding amounts included in net interest on the net defined benefit liability (asset); and
iii) any change in the effect of the asset ceiling excluding amounts included in net interest on the net defined benefit
liability (asset).
Relevant tax impacts of such remeasurements are also recognised under other comprehensive income.
(c) Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service
is provided. A provision is recognised for the amount of annual leave encashment based on the latest basic salary.
3.11 Income tax

Income tax expense comprises current and deferred taxes. Income tax expense is recognised in profit or loss except to the
extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
(a) Current tax

Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted or substantively
enacted at the reporting date, and any adjustment to tax payable in respect of previous periods. The tax rates used for the
reporting periods are as follows:
Year Tax rate

2018 40%
2017 40%
(b) Deferred tax

Deferred tax is recognised in compliance with IAS 12 Income Taxes, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purpose and amounts used for taxation purpose. Deferred
tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based
on the laws that have been enacted or substantively enacted by the date of statement of financial position. Deferred tax
assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they
relate to income taxes levied by the same tax authority on the same taxable entity.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which
the deductible temporary difference can be utilised. Deferred tax assets are reviewed at each year-end and are reduced to
the extent that it is no longer probable that the related tax benefit will be realised.
3.12 Accruals, provisions and contingencies
(a) Accruals
Accruals are liabilities to pay for goods or services that have been received or supplied but have not been paid, invoiced
or formally agreed with the supplier, including amounts due to employees. Accruals are reported as part of trade payables
and others.
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Financial Analysis
(b) Provisions
A provision is recognised in the statement of financial position when the company has a legal or constructive obligation
as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and
a reliable estimate can be made of the amount of the obligation. Provision is ordinarily measured at the best estimate of
the expenditure required to settle the present obligation at the reporting date. Where the company expects some or all
of a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is
virtually certain. The expense relating to any provision is presented in the income statement net of any reimbursement. If
the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where
appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage
of time is recognised as a finance cost.
Asset Retirement Obligations (ARO)

Asset Retirement Obligations (ARO) are recognised when there is a legal or constructive obligation as a result of past event
for dismantling and removing an item of property, plant and equipment and restoring the site on which the item is located
and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the
amount of obligation can be made. A corresponding amount equivalent to the provision is recognised as part of the cost
of the related property, plant and equipment. The amount recognised is the estimated expected cost of decommissioning,
discounted to its present value. Changes in the estimated timing of decommissioning or decommissioning cost estimates
are dealt with prospectively by recording an adjustment to the provision, and a corresponding adjustment to property,
plant and equipment. The company recognises ARO in respect of roof-top base station and office space. The periodic
unwinding of the discount is recognised in profit or loss as a finance cost as it occurs.
(c) Contingencies
A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company;
or a present obligation that arises from past events but is not recognised because it is not probable that an outflow of
resources embodying economic benefits will be required to settle the obligation; or the amount of the obligation cannot
be measured with sufficient reliability.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company. We
recognise any amount as an asset only if recovery of that amount is virtually certain.
Contingent liabilities and assets are not recognised in the statement of financial position of the company. These are
disclosed in the notes to the financial statements.
3.13 Revenue from contract with customers

Grameenphone has applied IFRS 15 using the cumulative effect method and therefore the comparative information has not
been restated and continues to be reported under IAS 18. Under IFRS 15, revenue is measured based on the consideration
specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises
revenue when it satisfies a performance obligation by transferring control over goods or services to a customer.
The company considers the terms of the contract and its customary business practices to determine the transaction price.
The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring
promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed
amounts, variable amounts, or both.
In the comparative period, revenue was measured at the fair value of the consideration received or receivable, net of
discounts and sales related taxes. Revenue was recognised when goods were delivered or services rendered, to the extent
it was probable that the economic benefits from the transactions would flow to the company and the revenue could be
reliably measured.
Nature of goods and services
The following is a description of the principal activities from which the company generates its revenue
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(a) Subscription and traffic fees

Revenues from subscription fees are recognised over the subscription period while revenues from voice and non-voice
services are recognised upon actual use. Consideration from the sale of prepaid cards to customers where services have
not been rendered at the reporting date is deferred until actual usage or when the cards expire or airtime balances are
forfeited.
(b) Connection fees

A connection fee received in the beginning is not considered a separate performance obligation as the connection or SIM
card is not a distinct goods or service that is delivered initially. Connection fees that are charged and not allocated to the
other elements of an arrangement are deferred and recognised over the periods in which the fees are expected to be
earned. The earning period is the average expected lifetime of the customer i.e. four years.
(c) Commission income

The Company recognises revenue in the amount of any fee or commission to which it expects to be entitled in exchange
for arranging for other parties to provide goods or services. The Company’s fee or commission might be the net amount of
consideration that it retains after paying the other party the consideration received in exchange for the goods or services
to be provided by that party.
(d) Customer equipment

The company recognises revenue when it satisfies a performance obligation by transferring a promised good (i.e. an asset)
to a customer. An asset is transferred when (or as) the customer obtains control of that asset. Control of an asset refers to
the ability to direct the use of, and obtain substantially all of the remaining benefits from, the asset.
(e) Discounts
Discounts are often provided in the form of cash discounts or free products and services delivered by the company or by
external parties. Discounts are recognised on a systematic basis over the period the discount is earned. Cash discounts or
free products and services given as part of sales transactions are recognised as a reduction of revenue. Free products or
services provided that are not related to sales transactions are recognised as expenses. Discounts are recognised when
they are earned and not when they are awarded i.e. at the same time when the underlying services are delivered to which
those discounts relate.
(f) Multiple element arrangements

Multiple element arrangements or bundled offers are sales arrangements that require the company to deliver more than
one product and/or perform more than one service, often over an extended period of time. The characteristics of such
arrangements mean that the company must determine if the different elements in a package can be separated from one
another - i.e. can be considered distinct performance obligations. The total contract price is then to be allocated to the
distinct performance obligations, and revenue is to be recognised in accordance with satisfaction of the performance
obligations.
The transaction price is allocated to separate performance obligations in a contract based on relative stand-alone selling
prices. The requirement to allocate revenue on a relative stand-alone selling price basis may result in similar goods and
services (e.g. a particular customer equipment or a particular service plan) being allocated different amounts of revenue
depending on how the products and service plans are bundled into the arrangement.
Stand-alone selling price for the equipment would be list-price when sold by the company on a stand-alone basis (not in a
bundle). If the company does not sell the equipment separately, the stand-alone selling price is to be estimated.
(g) Interest and dividend income

Interest income is accrued on a time proportion basis that reflects an effective yield on the financial asset. Dividend income
from an investment is recognised when the company’s rights to receive payment is established (declared by the Annual
General Meeting of the investee or otherwise).
Contract Costs
Contract costs are costs that are incremental to obtaining a contract with a customer or costs that are directly related to
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fulfilling a specified contract with a customer (fulfillment costs). Incremental costs of obtaining a contract with a customer
is recognised as an asset if the expectation is that the costs will be recoverable, except for incremental costs that would
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have been amortised in a year or less. These may be expensed as incurred.

Financial Analysis
Contract costs is capitalised as assets and amortised in a way that is consistent with the transfer of the related goods
and services. Customer acquisition costs for Grameenphone includes SIM cost, different commissions and other directly
attributable costs related to acquisition of customers.
Management expects that customer acquisition cost are recoverable. In the comparative period, such costs were
capitalised but to the extent of connection revenue earned. These costs are amortised over the average expected lifetime
of the customer i.e. four years.
Determination of agent and principal

The determination of whether the company is acting as a principal or as an agent in a transaction is based on an evaluation of
the substance of the transaction, the responsibility for providing the goods or services, setting prices, form of consideration
and exposure to credit risk. When another party is involved in providing goods or services to a customer, the entity shall
determine whether the nature of its promise is a performance obligation to provide the specified goods or services itself
(i.e. the entity is a principal) or to arrange for the other party to provide those goods or services (i.e. the entity is an agent).
Where the company acts as a principal, the revenues are recognised on a gross basis. This requires revenue to comprise
the gross value of the transaction billed to the customers, after trade discounts, with any related expenses charged as
operating costs. Where the company acts as an agent, the expenses are offset against the revenues and the resulting net
revenues represent the margins or commissions earned for providing services in the capacity of an agent.
Licence fees payable to Bangladesh Telecommunication Regulatory Commission (BTRC) that are calculated on the basis of
revenue share arrangements are not offset against the revenues. Instead, they are recognised as operating costs because
the company is considered to be the primary obligor.
3.14 Leases
The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement at
the inception date: whether fulfillment of the arrangement is dependent on the use of a specific asset or assets and the
arrangement conveys a right to use the asset, even if that right is not explicitly specified in an arrangement. Leases are
classified as finance leases whenever the terms of lease transfer substantially all the risk and rewards of ownership to the
lessee. All other leases are classified as operating leases.
(a) The company as lessee

Assets held under finance leases are initially recognised as asset of the company at their fair value at the inception of the
lease or, if lower, at the present value of minimum lease payments. The corresponding liability to the lessor is included in
the statement of financial position as a finance lease obligation.
Lease payments are apportioned between finance expenses and reduction of lease obligation so as to achieve a constant
rate of interest on the remaining balance of liability. Finance expenses are immediately recognised in profit or loss, unless
they are directly attributable to qualifying assets, in which case they are capitalised. Contingent rentals are recognised as
expenses in the period in which they incur.
Operating lease payments are recognised as an expense on straight line basis over the lease term, except where another
systemic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.
Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.
In the event that lease incentives are received to enter into operating leases, such incentives are recognised as liability.
The aggregate benefit of incentives is recognised as a reduction of rental expenses on a straight line basis, except where
another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are
consumed.
(b) The company as lessor

Amounts due from lessees under finance leases are recognised as receivables at the amount of company’s net investment
in the leases. Finance lease income is allocated to accounting period so as to reflect a constant periodic rate of return on
the company’s net investment outstanding in respect of the leases.
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Rental income from operating lease is recognised on straight line basis over the term of relevant lease. Initial direct costs
incurred in negotiating and arranging an operating lease are added to carrying amount of leased assets and recognised
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on a straight line basis over the lease term.

3.15 Foreign currency transactions

The financial statements are presented in BDT, which is company’s functional currency. Transactions in foreign currencies
are recorded in the books at the exchange rate prevailing on the date of the transaction. Monetary assets and liabilities in
foreign currencies at the date of statement of financial position are translated into BDT at the exchange rate prevailing at
that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are
translated using the exchange rate at the date when the fair value was determined. Exchange differences arising on the
settlement of monetary items or on translating monetary items at the end of the reporting period are recognised in profit
or loss as per IAS/BAS 21 The Effects of Changes in Foreign Exchange Rates.
3.16 Earnings per share

The company presents basic and diluted (when dilution is applicable) earnings per share (EPS) for its ordinary shares.
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the company by the weighted
average number of ordinary shares outstanding during the period, adjusted for the effect of change in number of shares for
bonus issue, share split and reverse split. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary
shareholders and the weighted average number of ordinary shares outstanding, for the effects of all dilutive potential
ordinary shares. However, dilution of EPS is not applicable for these financial statements as there was no dilutive potential
ordinary shares during the relevant periods.
3.17 Events after the reporting period

Amounts recognised in the financial statements are adjusted for events after the reporting period that provide evidence
of conditions that existed at the end of the reporting period. No adjustment is given in the financial statements for events
after the reporting period that are indicative of conditions that arose after the reporting period. Material non-adjusting
events are disclosed in the financial statements.
3.18 Changes in Significant accounting policies
3.18.1 IFRS 9 Financial Instruments
3.18.1.1 Nature and effect of changes

Changes in accounting policies resulting from the adoption of IFRS 9 have been applied using modified retrospective
method. The company has determined that the application of IFRS 9 at 1 January 2018 does not result in any material
adjustment.
3.18.2 IFRS 15 Revenue from Contracts with Customers
3.18.2.1 Nature and effect of changes
(a) IFRS 15 establishes a five-step model to account for revenue arising from contracts with customers.
Under IFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled
in exchange for transferring goods or services to a customer.
The new revenue standard superseded all current revenue related requirements under IFRS. Either a full retrospective
application or a modified retrospective application is required for annual periods beginning on or after 1 January 2018.
Grameenphone has adopted the new standard using the modified retrospective method.
Adoption of IFRS 15 does not have any significant impact in recognition of revenue for Grameenphone. However, customer
acquisition cost mainly in the form of SIM cost, different commissions and other directly attributable costs related to
acquisition of customers of BDT 4,171,201,397 which was expensed in earlier periods up until 31 December 2017 has now
been deferred and recognised as contract cost based on the average expected lifetime of the customer i.e. four years.
113
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Annual Report 2018

Financial Analysis
Below is the summary of the impact of transition to IFRS 15 on retained earnings.

01 January 2018
BDT (000)
Retained earnings
Deferment of customer acquisition cost 4,171,201
Deferred tax expense (1,493,052)
Net of tax impact 2,678,149
(b) The following table summarises the impact of adopting IFRS 15 on the Grameenphone’s statement of financial
position as at 31 December 2018 and its statement of profit or loss and other comprehensive income for the year then
ended for each of the line items affected. There is no impact of adopting IFRS 15 on Grameenphone’s statement of cash
flows for the year ended 31 December 2018.
Impact on the statement of financial position

As at 31 December 2018 in BDT (000)
Amounts
without
adoption of
As reported Adjustments IFRS 15
Assets
Non-current assets
Contact cost 4,438,240 (4,438,240) -
Total non-current assets 125,344,674 (4,438,240) 120,906,434
Current assets
Trade receivables and others 7,212,047 525,012 7,737,059
Total current assets 13,368,698 525,012 13,893,710
Total assets 138,713,372 (3,913,228) 134,800,144
Equity and liabilities

Shareholders’ equity
Retained earnings 21,007,530 (2,396,654) 18,610,876
Total equity 42,367,082 (2,396,654) 39,970,428
Non-current liabilities
Deferred tax liabilities 6,032,336 (774,857) 5,257,479
Total non-current liabilities 18,913,590 (774,857) 18,138,733
Current liabilities
Current tax liabilities 27,550,278 (741,718) 26,808,560
Total current liabilities 77,432,700 (741,718) 76,690,982
Total equity and liabilities 138,713,372 (3,913,229) 134,800,143
114
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Annual Report 2018

Impact on the statement of profit or loss and other comprehensive income

for the year ended 31 December 2018 in BDT (000)
Amounts
without
adoption of
As reported Adjustments IFRS 15
Revenue 132,831,967 - 132,831,967
Operating expenses
Cost of material and traffic charges (7,329,552) (67,486) (7,397,038)
Sales, marketing and commissions (13,475,388) 325,459 (13,149,929)
Operating profit 57,379,254 257,973 57,637,227
Profit before tax 55,589,198 257,973 55,847,171
Income tax expense (20,429,314) 23,522 (20,405,792)

Profit after tax 35,159,884 281,495 35,441,379
Total comprehensive income for the period 34,949,231 281,495 35,230,726
115
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Annual Report 2018

Annual Report 2018
4 Property, plant and equipment
Financial Analysis
31 December 2018
Cost Depreciation Carrying amount
As at Addition Disposal/ As at As at Charged Disposal/ As at As at
1 January during Adjustment 31 December 1 January during Adjustment 31 December 31 December
Name of assets 2018 the year during the year 2018 2018 the year during the year 2018 2018
BDT (000) BDT (000) BDT (000) BDT (000) BDT (000) BDT (000) BDT (000) BDT (000) BDT (000)

Land (Note 4.1) 807,050 - - 807,050 - - - - 807,050
Building 4,048,914 - - 4,048,914 1,402,979 200,227 - 1,603,206 2,445,708
Base station 116,956,345 14,890,134 (1,187,413) 130,659,066 75,382,593 10,792,294 (1,185,162) 84,989,725 45,669,341
Transmission equipment 35,336,436 1,985,469 - 37,321,905 26,996,781 4,183,425 - 31,180,206 6,141,699
Computers and other IT equipment 7,102,203 996,526 (133,157) 7,965,572 5,322,790 871,469 (132,820) 6,061,439 1,904,133
Furniture and fixtures (including office equipment) 2,883,275 197,359 (65,787) 3,014,847 2,425,491 211,273 (63,588) 2,573,176 441,671
Vehicles 1,984,308 164,503 (313,404) 1,835,407 1,226,291 201,980 (237,536) 1,190,735 644,672
169,118,531 18,233,991 (1,699,761) 185,652,761 112,756,925 16,460,668 (1,619,106) 127,598,487 58,054,274
Capital work in progress (Note 4.2) 8,984,311 16,145,019 (18,233,990) 6,895,340 - - - - 6,895,340
178,102,842 34,379,010 (19,933,751) 192,548,101 112,756,925 16,460,668 (1,619,106) 127,598,487 64,949,614
Fibre Optic Network under finance lease 10,136,149 248,833 - 10,384,982 4,998,659 560,318 - 5,558,977 4,826,005
188,238,991 34,627,843 (19,933,751) 202,933,083 117,755,584 17,020,986 (1,619,106) 133,157,464 69,775,619
4 Property, plant and equipment
31 December 2017
Overview
Cost Depreciation Carrying amount

Land (Note 4.1) 807,050 - - 807,050 - - - - 807,050

Building 4,050,657 - (1,743) 4,048,914 1,204,901 198,078 - 1,402,979 2,645,935
Base station 110,501,615 9,290,617 (2,835,887) 116,956,345 66,422,116 11,652,069 (2,691,591) 75,382,593 41,573,752
Transmission equipment 33,573,136 1,763,300 - 35,336,436 21,822,928 5,173,852 - 26,996,781 8,339,656
Computers and other IT equipment 6,440,528 722,620 (60,945) 7,102,203 4,536,567 843,947 (57,724) 5,322,790 1,779,413
Furniture and fixtures (including office equipment) 2,787,604 135,385 (39,714) 2,883,275 2,345,144 120,061 (39,714) 2,425,491 457,784
Sustainability
Vehicles 1,998,059 162,497 (176,247) 1,984,308 1,124,788 229,629 (128,125) 1,226,291 758,017
160,158,649 12,074,418 (3,114,536) 169,118,531 97,456,444 18,217,636 (2,917,155) 112,756,924 56,361,607
Capital work in progress (Note 4.2) 9,306,246 12,125,457 (12,447,392) 8,984,311 - - - - 8,984,311
169,464,895 24,199,875 (15,561,928) 178,102,842 97,456,444 18,217,636 (2,917,155) 112,756,924 65,345,917
Fibre Optic Network under finance lease 9,267,245 868,904 - 10,136,149 4,488,119 510,540 - 4,998,659 5,137,490
Governance
178,732,140 25,068,779 (15,561,928) 188,238,991 101,944,563 18,728,176 (2,917,155) 117,755,583 70,483,407

Financial Analysis
Additional Information

Annual Report 2018
Financial Analysis
4.1 Land
Land represents freehold land acquired for office premises and base stations.
4.2 Capital work in progress (CWIP)

This represents primarily the cost of network equipment under construction and capital inventory.
4.2.1 Capital work in progress - transferred

The amount of CWIP completed and transferred during the year to the corresponding items of property, plant and
equipment was as follows:
Name of assets
2018 2017
BDT (000) BDT (000)
Base station 14,890,134 9,290,617
Transmission equipment 1,985,469 1,763,300
Computers and other IT equipment 996,526 722,620
Furniture and fixtures 197,359 135,385
Vehicles 164,503 162,497
18,233,991 12,074,419
Total transfer of CWIP during 2018 does not include any capital inventory write off/adjustment (2017: BDT 372,973,680).
4.2.2 Capital work in progress - components

Capital work in progress as at 31 December 2018 included capital inventory of BDT 3,495,069,519 (2017: BDT
4,002,677,696) and work-in-progress of BDT 3,400,270,450 (2017: BDT 4,981,632,920).
118
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Annual Report 2018

5 Intangible assets
31 December 2018
Cost Amortisation Carrying amount
Overview

Software and others (Note 5.1) 9,417,585 828,150 - 10,245,735 8,057,799 866,755 - 8,924,554 1,321,181
Telecom licence and spectrum (Note 5.2) 53,049,258 17,137,808 - 70,187,066 19,842,102 4,651,438 - 24,493,540 45,693,526
62,466,843 17,965,958 - 80,432,801 27,899,901 5,518,193 - 33,418,094 47,014,707

Capital work in progress (Note 5.3) 663,056 17,599,777 (17,965,958) 296,875 - - - - 296,875
63,129,899 35,565,735 (17,965,958) 80,729,676 27,899,901 5,518,193 - 33,418,094 47,311,582
Sustainability
31 December 2017
Cost Amortisation Carrying amount
Governance
Software and others (Note 5.1) 8,352,333 1,065,252 - 9,417,585 6,969,481 1,088,318 - 8,057,799 1,359,786
Telecom licence and spectrum (Note 5.2) 53,049,258 - - 53,049,258 16,322,005 3,520,097 - 19,842,102 33,207,156
61,401,592 1,065,252 - 62,466,844 23,291,486 4,608,415 - 27,899,901 34,566,942
Capital work in progress (Note 5.3) 73,317 1,654,991 (1,065,252) 663,056 - - - - 663,056
61,474,908 2,720,244 (1,065,252) 63,129,900 23,291,486 4,608,415 - 27,899,901 35,229,998
Financial Analysis

Annual Report 2018
Financial Analysis
5.1 Software and others

Software includes business software and network management software. Business software includes mainly billing
software, oracle financial software, data mining software, campaign automation software etc.
5.2 Telecom licence and spectrum

The tenure of Mobile Cellular Licence and 14.6 MHz of spectrum acquired in 1996 expired on 10 November 2011. The
tenure of this 2G licence and spectrum was renewed for another 15 years on 7 August 2012 effective from 11 November
2011. This 2G licence and spectrum was recognised in accordance with IAS 38 Intangible Assets and was measured at the
cash equivalent price being the present value of the installments. The difference between total payment and the cash
equivalent price is recognised as finance cost over the period of payment.
Total cost of telecom licence and spectrum also includes cost of 7.4 MHz of spectrum acquired in 2008 for 18 years.
In 2013, Grameenphone, acquired 3G licence and related 10 MHz of spectrum for 15 years effective from 12 September 2013.
Grameenphone acquired 5 MHz spectrum in 1800 MHz band for 15 years at the spectrum auction held by Bangladesh
Telecommunications Regulatory Commission (BTRC) on 19 February 2018 and an approval for converting existing 22 MHz
2G spectrum to technology neutral spectrum for 8.75 years for BDT 12,849,500,000 and BDT 4,301,733,305 respectively.
Grameenphone also obtained 4G/LTE Cellular Mobile Phone Services Operator Licence effective from 19 February 2018
from BTRC for BDT 100,000,000. The above fees are subject to 5.001% VAT. 60% of the spectrum cost was paid at the time
of acquisition whilst the rest 40% is payable in equal four installments within the next 4 years. The above were recognised
as intangible assets in accordance with IAS 38 Intangible Assets and measured at the cash equivalent price being the
present value. The difference between total payment and the cash equivalent price is recognised as finance cost over the
period of payment.
5.3 Capital work in progress (CWIP)

CWIP includes cost of software in process of installation/implementation and also software under testing phase awaiting
users’ acceptance.
6 Investment in associate
Grameenphone disposed of 51% of its stake in its only subsidiary, Grameenphone IT Ltd. now known as ACISL on 1 September
2013 and retains significant influence over ACISL with its remaining 49% stake.
In accordance with the requirements of IAS 36 Impairment of Assets, the carrying amount of investment in ACISL as at 31
October 2016 was re-assessed for impairment considering the financial performance of ACISL for the period to 31 October
2016 and estimated the recoverable amount from the investment. Based on the assessment, the carrying amount of
investment in ACISL (BDT 486,828,493) has been fully impaired. The assessment of recoverable amount from investment
in associate remained unchanged as at 31 December 2018 and 31 December 2017.
7 Contract cost
As at As at
BDT (000) BDT (000)
Opening balance - -
Adjustment on initial application of IFRS 15 as at 1 January 2018 4,171,201 -
Reclassification of deferred costs related to connection revenue 859,145 -
Additions during the year 2,193,703 -
Amortisation during the year (2,785,809) -
4,438,240 -
120
This includes deferred customer acquisition cost mainly in the form of SIM cost, different commissions and other directly
Grameenphone Ltd.
Annual Report 2018
attributable costs related to acquisition of customers.

8 Other non-current assets

As at As at
BDT (000) BDT (000)
Input VAT claim (Note 8.1) 3,807,204 3,807,204

Security deposits for utility services and other investments 12,029 41,291
3,819,233 3,848,495
8.1 Input VAT claim

This represents input VAT claim against VAT already deposited at the time of 2G licence acquisition in accordance with
the order of the High Court referred to under note 45(c). Considering the fact that resolution of such issues in the regular
legal process often takes considerable amount of time, this amount has been classified as non-current asset.
9 Inventories
As at As at
BDT (000) BDT (000)
Handset, data card and other devices 89,437 323,169

SIM card 117,263 119,605
Scratch card 17,659 19,666
224,359 462,440
9.1 Movement of inventories Handset, data card

and other device SIM card Scratch card
BDT (000) BDT (000) BDT (000)
Balance as at 1 January 2017 (Gross) 521,360 143,933 62,304
Purchase during 2017 2,256,431 914,261 292,817
Issue during 2017 (2,384,541) (929,345) (335,422)
393,250 128,849 19,699
Adjustment/write-off (70,081) (9,244) (33)
Balance as at 31 December 2017 (Net) 323,169 119,605 19,666
Balance as at 1 January 2018 (Gross) 393,250 128,849 19,699

Purchase during 2018 74,300 437,131 143,976
Issue during 2018 (288,630) (436,906) (144,020)
178,920 129,074 19,655
Adjustment/write-off (89,482) (11,810) (1,995)
Balance as at 31 December 2018 (Net) 89,438 117,264 17,660
121
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Annual Report 2018

Financial Analysis
9.2 Number of inventories
As at As at
Units Units
Handset, data card and other device 59,958 65,497

SIM card 5,320,908 5,847,659
Scratch card 142,477,556 134,522,778
9.3 SIM card

SIM cards include SIMs for new connections and replacement SIMs. Both new connection and replacement SIM attract SIM
tax. Value added tax (VAT) and supplementary duty (SD) imposed on SIM cards are popularly known as SIM tax.
10 Trade receivables and others
As at As at
BDT (000) BDT (000)
Trade receivables
Trade receivables, gross (Note 39.1.2) 7,196,312 6,806,204
Impairment loss allowance (Note 39.1.3) (1,763,556) (1,718,669)
5,432,756 5,087,535
Other receivables
Receivables from employees 5,530 4,366
Other non-interest-bearing receivables 1,183,343 1,162,466
1,188,873 1,166,832
Other non-financial assets

Deferred costs related to connection revenue - 859,145
Prepaid expenses 590,418 667,724
590,418 1,526,869
Total trade receivables and other 7,212,047 7,781,236
10.1 Future minimum lease payments receivables

Future minimum lease payments receivables during non-cancellable period from operating leases are as follows:
As at As at
BDT (000) BDT (000)
(i) Not later than one year 1,359,588 733,650
(ii) Later than one year but not later than five years 404,632 521,529
1,764,220 1,255,179
122
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Annual Report 2018

11 Cash and cash equivalents
As at As at
BDT (000) BDT (000)
Cash in hand 6,898 9,961
Cash at bank 5,925,394 12,404,707
5,932,292 12,414,668
11.1 Restricted cash balance

Cash at bank as at 31 December 2018 includes BDT 25,893,574 (2017: BDT 18,982,159) equivalent to unused Mobicash
points in customer wallet and is therefore treated as restricted cash balance.
Additionally, Cash at bank as at 31 December 2018 includes BDT 111,272,241 (2017: BDT 102,840,174) equivalent to
dividend unclaimed amount and BDT 12,761,511 (2017: BDT 12,777,564) equivalent to unclaimed IPO subscription amount.
According to Articles of Association (AoA) of Grameenphone, if dividend has not been claimed for three years after passing
of either the resolution at a General Meeting declaring the dividend or the resolution of the Board of Directors providing
for payment for that dividend, the Board of Directors may invest the unclaimed dividend or use it in some other way for the
benefit of the Company until the dividend is claimed.
12 Net asset value per share

As at As at
BDT (000) BDT (000)
Net Asset (BDT) 42,367,082,000 35,121,452,490
Weighted average number of ordinary shares outstanding during the period 1,350,300,022 1,350,300,022
Net asset value per share (par value BDT 10 each) (BDT) 31.38 26.01
13 Share capital
As at As at
BDT (000) BDT (000)
Authorised:
4,000,000,000 ordinary shares of BDT 10 each 40,000,000 40,000,000

40,000,000 40,000,000
Issued, subscribed, called up and paid up:
1,350,300,022 ordinary shares of BDT 10 each 13,503,000 13,503,000

13,503,000 13,503,000
The company was initially registered with ordinary shares of BDT 43 each. These shares were subsequently converted into
BDT 10 shares through a 43:1 split at the 16th EGM (held on 15 July 2008) and 1:10 reverse split at the 19th EGM (held on 2
July 2009).
There has been no change in share capital during the current and comparative year.
123
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Annual Report 2018

Financial Analysis
13.1 Shareholding position
a) Percentage of shareholdings
Date of issue/
% of holding Value of shares (BDT) Transfer of Shares
As at As at As at As at
Name of shareholders 31 December 2018 31 December 2017 31 December 2018 31 December 2017
Telenor Mobile 55.8% 55.8% 7,534,077,240 7,534,077,240 10 October 1996
Communications AS, 24 September 1997
Norway 25 August 1998
7 December 1998
19 April 2004
21 October 2004
21 December 2004
31 May 2007
15 July 2008
02 July 2009
Nye Telenor Mobile 0.0% 0.0% 2,150 2,150 31 May 2007
Communications II AS, 15 July 2008
Norway
Nye Telenor Mobile 0.0% 0.0% 2,150 2,150 31 May 2007
Communications III AS, 15 July 2008
Norway
Telenor Asia Pte Ltd, 0.0% 0.0% 2,150 2,150 31 May 2007
Singapore 15 July 2008
Grameen Telecom, 34.2% 34.2% 4,617,664,090 4,617,664,090 10 October 1996
Bangladesh 24 September 1997
25 August 1998
7 December 1998
19 April 2004
21 October 2004
27 November 2004
31 May 2007
15 July 2008
02 July 2009
Grameen Kalyan, 0.0% 0.0% 220 220 31 May 2007
Bangladesh 15 July 2008
02 July 2009
Grameen Shakti, 0.0% 0.0% 220 220 31 May 2007
Bangladesh 15 July 2008
02 July 2009
General public, 10.0% 10.0% 1,351,252,000 1,351,252,000 28 October 2009
Grameenphone employees
and institutional
100% 100% 13,503,000,220 13,503,000,220
b) Classification of shareholders by range of number of shares held
No. of shareholders No. of shares

As at As at As at As at
Shareholding range 31 December 2018 31 December 2017 31 December 2018 31 December 2017
1-500 24,438 23,964 4,658,294 4,618,667
501-5,000 5,680 5,250 9,108,800 8,443,991
5,001-10,000 492 450 3,557,895 3,271,249
10,001-20,000 252 238 3,591,203 3,392,632
20,001-30,000 82 76 2,020,320 1,846,202
30,001-40,000 40 56 1,392,897 1,954,986
40,001-50,000 33 22 1,544,832 1,013,502
50,001-100,000 82 65 6,194,611 4,664,490
124
100,001-1,000,000 120 115 36,400,256 36,535,713

1,000,001-1,000,000,000 21 28 1,281,830,914 1,284,558,590
31,240 30,264 1,350,300,022 1,350,300,022
Grameenphone Ltd.
Annual Report 2018

14 Share premium
Total amount of BDT 8,384,003,437 was received as share premium in respect of shares issued to shareholders. Net issue
cost of BDT 543,777,495 was set off against share premium as per IAS 32 Financial Instruments: Presentation.
15 Capital reserve
In 1999, Grameenphone issued 5,086,779 preference shares of BDT 45.84 each, which were converted into ordinary shares
of BDT 43.00 each in 2004. The balance BDT 2.84 per share was transferred to capital reserve account. The conversion was
in accordance with provisions of Articles of Association of Grameenphone. This amount is not distributable as dividend as
per the Companies Act 1994.
16 Deposit from shareholders

Deposit from shareholders as at the statement of financial position date represents balance of the share money received
from Telenor Mobile Communications AS, Norway, which has not been used against issuance of shares.
17 Finance lease obligation

Grameenphone entered into a lease agreement with Bangladesh Railway (BR) in 1997 for the right to use the optical fibre
network along with its ancillary facilities. The lease was treated as operating lease until the end of 2004. Following an
amendment to the lease agreement in 2004, it has been reclassified as finance lease and has been treated as such since
1 January 2005. The lease agreement was further amended on 13 June 2007 with Guaranteed Annual Rental (GAR) being
revised and lease term being extended up to June 2027.
Obligation under finance lease was initially measured at an amount equal to the present value of minimum lease payments.
The effect of change in lease agreement in 2007 was accounted for as an adjustment of the leased asset and obligation
by the amount equal to the difference between the present value of revised minimum lease payments and the carrying
amount of lease obligation at that date. Grameenphone’s incremental borrowing rate, which was 15% at the inception of
the lease, was used to calculate the present value of minimum lease payments, as it was impracticable to determine the
implicit interest rate at that time.
Apart from the above, Grameenphone has obtained total 1,153.60 Km of fibre optic network (FON) from Summit
Communications Limited against a lease contract for 30 years. This lease has been treated as finance lease as per IAS 17
Leases. There was no lease obligation as of 31 December 2018 for this FON (2017: BDT Nil).
As at As at
BDT (000) BDT (000)
Finance lease obligation 4,931,494 5,413,283

Less: Current portion (Note 22) 222,517 483,089
4,708,977 4,930,194
Future minimum Present value of

lease payments Interest minimum lease payments
BDT (000) BDT (000) BDT (000)
Future minimum lease payments and their present
value as at 31 December 2018 were as follows:
(i) Not later than one year 950,539 728,022 222,517

(ii) Later than one year but not later than five years 4,098,301 2,428,805 1,669,496
(iii) Later than five years 3,977,763 938,282 3,039,481
9,026,603 4,095,108 4,931,494
Future minimum lease payments and their present

value as at 31 December 2017 were as follows:
(i) Not later than one year 1,238,775 755,686 483,089

125
(ii) Later than one year but not later than five years 3,977,763 2,646,899 1,330,864
(iii) Later than five years 5,047,540 1,448,210 3,599,330
10,264,078 4,850,794 5,413,283
Grameenphone Ltd.
Annual Report 2018

Financial Analysis
18 Loans and borrowings

Loans and borrowings include a long-term syndicated loan led by the International Finance Corporation (IFC) of USD 345
Million at 6-month-LIBOR + 3.5% interest rate. The full loan amount of USD 345 Million has been drawn down in multiple
tranches, the repayment of which is in 10 installments. The first seven installments have been repaid since October 2015
and current outstanding loan balance is USD 103.50 Million (2017: USD 172.50 Million). The final installment is scheduled
to be paid in April 2020. The syndicate members include IFC, DEG, FMO, Proparco, CDC and OFID. This financial liability has
been recognised at amortised cost as per IFRS 9 Financial Instruments: Recognition and Measurement.
Current portion of loans and borrowings include part of the above long-term syndicated loan falling due for repayment in
next 12 months and as at 31 December 2018 there was no short-term bank loan (2017: Nil).
19 Deferred tax liabilities

Deferred tax assets and liabilities have been recognised and measured in accordance with the provisions of IAS/BAS 12
Income Taxes. Related deferred tax (expense)/income have been disclosed in note 35. The components of deferred tax
assets and liabilities are given below:
Taxable/(deductible)
temporary
Carrying amount Tax base difference
BDT (000) BDT (000) BDT (000)
Property, plant and equipment (excluding land,
CWIP and leased assets) (Note 4) 57,247,222 39,078,610 18,168,612
Property, plant and equipment under finance lease (Note 4) 4,826,006 - 4,826,006
Difference for vehicle (Note 19.1) (157,147) - (157,147)
22,837,471
Telecom Licence, spectrum, software and others 47,014,707 43,256,103 3,758,604

Liabilities against Telecom Licence, spectrum, software and others (4,743,695) - (4,743,695)
Trade receivables (Note 10) (1,763,556) - (1,763,556)
Finance lease obligation including current portion (Note 17) (5,068,060) - (5,068,060)
Other current liabilities (profit sharing plan) (277,946) - (277,946)
Employee benefit plans (funded) (1,599,122) - (1,599,122)
Contract Acquisition Cost (deferred) 1,937,143 - 1,937,143
Net taxable temporary difference 15,080,839
Deferred tax liability @40% tax rate (Note 3.11) 6,032,336
Property, plant and equipment (excluding land,
CWIP and leased assets) (Note 4) 55,554,556 36,443,874 19,110,683
Property, plant and equipment under finance lease (Note 4) 5,137,490 - 5,137,490
Difference for vehicle (Note 19.1) (152,845) - (152,845)
24,095,328
Telecom licence, spectrum, software and others 34,566,942 35,271,271 (704,328)
Trade receivables (Note 10) 5,087,535 6,806,204 (1,718,670)
Finance lease obligation including current portion (Note 17) (5,413,283) - (5,413,283)
Other current liabilities (profit sharing plan) (236,591) - (236,591)
Employee benefit plans (funded) (426,466) - (426,466)
Net taxable temporary difference 15,595,990
Deferred tax liability @40% tax rate (Note 3.11) 6,238,396
19.1 Difference for vehicle

This represents the permanent difference related to sedan cars, not plying for hire, owned by Grameenphone. As per the
provisions of Income Tax Ordinance 1984, depreciation on such cars is allowed only up to certain limit of cost (currently
BDT 2.5 million per car) of such cars for tax purpose. Difference for vehicle represents the amount of depreciated cost
exceeding such limits.
19.2 Actuarial gain/loss from re-measurement of defined benefit obligations

126
Deferred tax liabilities as at 31 December 2018 includes net deferred tax asset of BDT 311,021,604 (2017: BDT 170,586,508)
for actuarial gain/loss from re-measurement of defined benefit obligations corresponding impact of which has been
recognised under other comprehensive income.
Grameenphone Ltd.
Annual Report 2018

20 Employee benefits
As at As at
BDT (000) BDT (000)
Amounts recognised in the statement of financial position
Defined benefit obligation (3,996,695) (3,598,814)
Fair value of plan assets 2,397,573 3,172,347
Net defined benefit obligation (1,599,122) (426,466)
Change in benefit obligation

Benefit obligation at end of prior year (3,598,814) (4,000,142)
Service cost (585,485) (285,354)
Interest expense (245,781) (265,560)
Benefit payments from plan assets 245,725 49,866
Benefit payments from employer - -
Settlement payments from plan assets 293,571 407,769
Remeasurements due to change in demographic assumptions 485 187,458
Remeasurements due to change in financial assumptions 113,634 566,007
Remeasurements due to experience adjustments (220,031) (258,858)
Defined benefit obligation at end of year (3,996,696) (3,598,814)
Change in fair value of plan assets

Fair value of plan assets at end of prior year 3,172,347 2,665,056
Interest income 196,365 184,254
Total employer contributions - -
(i) Employer contributions 40,000 512,994
(ii) Employer direct benefit payments - -
Benefit payments from plan assets (245,725) (49,866)
Benefit payments from employer - -
Settlement payments from plan assets (293,571) (407,769)
Remeasurements for return on assets (excluding interest income) (471,842) 267,677
Fair value of plan assets at end of year 2,397,574 3,172,347
Fair value of plan assets

Cash and cash equivalents 255,673 780,000
Debt instruments 2,141,900 2,392,347
Total 2,397,573 3,172,347
Components of Defined Benefit Cost (DBO)

Service cost 585,485 285,354
Interest expense on DBO 245,781 265,560
Interest (income) on plan assets (196,365) (184,254)
Defined benefit cost included in profit or loss 634,901 366,659
Remeasurements (recognised in other comprehensive income (OCI))

Due to change in demographic assumptions (485) (187,458)
Due to change in financial assumptions (113,634) (566,007)
Due to change in experience adjustments 220,031 258,858
(Return) on plan assets (excl. interest income) 471,842 (267,677)
Total remeasurements in OCI 577,754 (762,284)
Total defined benefit cost recognised in profit or loss and OCI 1,212,655 (395,625)
Net defined benefit liability (asset) reconciliation

Opening balance of net defined benefit liability (asset) 426,466 1,335,086
Defined benefit cost included in profit or loss 634,901 366,659
127
Total remeasurements included in OCI 577,754 (762,285)

Employer contributions (40,000) (512,994)
Employer direct benefit payments - -
Grameenphone Ltd.
Annual Report 2018
Net defined benefit liability (asset) as of end of year 1,599,122 426,466

Financial Analysis
As at As at
BDT (000) BDT (000)
Expected cash flows for following year
Expected employer contributions 250,000 350,000
Expected total benefit payments
Year 1 372,273 417,476
Year 2 408,991 340,788
Year 3 441,371 374,711
Year 4 469,849 404,500
Year 5 491,923 431,056
Next 5 years 2,848,047 2,503,270
As at As at
Significant actuarial assumptions
Discount rate in % 7.60% 7.25%
Future salary growth in % 8.5% 8.5%
Future turnover in %
Up to age 30 12.5% 12.0%
Age 31-45 10.0% 10.0%
Above 45 10.0% 10.0%
Expected average remaining working lives of employees 9 years 9 years
Sensitivity analysis
A change of 50 basis points in following significant assumptions would have increased/ (decreased) defined benefit
obligation of the company by the amounts shown below. This analysis assumes that all other variables, in particular interest
rates remain constant.
As at 31 December 2018 As at 31 December 2017

50 bp increase 50 bp decrease 50 bp increase 50 bp decrease
BDT (000) BDT (000) BDT (000) BDT (000)
Discount rate in % (153,236) 164,034 (138,872) 149,007

Future salary growth in % 152,306 (143,802) 138,204 (130,214)
Significant characteristics of plan
Plan sponsor : Grameenphone

Nature of benefits : Final salary defined benefit plan
Risks associated with the plan : Plan sponsor bears interest rate risks associated of the plan
Vesting criteria : 5 year of continuous service
Applicable salary : Last drawn monthly salary
Maximum limit of benefit paid : No upper limit on benefit
Basis of gratuity : Accrued benefit
Normal retirement age : 60 years
Benefit calculation : - Past service of 5 years to 5.5 years: 1 month applicable basic salary for each completed
years of service
- Up to 10 years : 1.5 month applicable basic salary for each completed years of service
- More than 10 years : 2 month applicable basic salary for each completed years of service

128
Grameenphone Ltd.
Annual Report 2018

21 Other non-current liabilities
As at As at
BDT (000) BDT (000)
Liability for spectrum acquisition 3,445,913 -

Asset retirement obligations (Note 21.1) 144,275 139,651
Other non-current liabilities 88,810 284,084
3,678,998 423,735
21.1 Asset retirement obligations (ARO)

Opening balance 139,651 124,157
Provision made during the year 4,624 19,442
144,275 143,599
Provision released during the year - (3,948)
Closing balance 144,275 139,651
Grameenphone recognises Asset Retirement Obligations (ARO) in respect of roof-top base stations and office space for any
constructive and/or legal obligations for dismantling, removal or restoration incurred by the company as a consequence of
installing or constructing the sites. ARO is measured at the present value of expected cash outflows required to settle such
obligations. Unwinding of the discount is charged as finance expense in the profit or loss.
22 Trade payables and others
Financial liabilities
Trade payables including liability for capital expenditure 12,450,949 11,293,719
Accrued expenses 6,274,734 5,122,408
Finance lease obligation 222,517 483,089
Indirect taxes 1,766,718 1,645,305
20,714,918 18,544,521
Other non-financial liabilities

Deferred connection revenue 581,943 953,712
Unearned revenue 5,096,476 4,727,146
5,678,419 5,680,858
Total trade payables and others 26,393,337 24,225,379
23 Provisions
A provision is a liability of uncertain timing or amount. Grameenphone takes provision for those items for which it has
obtained related goods or service but vendor is formally yet to bill it. The amount concerning provision is almost certain
to both parties and uncertainties exist regarding the timing of billing by vendor. Provisions includes provision for BTRC
revenue share, annual operating licence fee, office running, other operational expenses and capital expenditure.
24 Current tax liabilities

Movement of current tax liabilities is shown as under:
Opening balance 26,435,242 18,942,559

Provision made during the year including transactions for other comprehensive income 25,062,791 22,320,271
51,498,033 41,262,830
129
Paid during the year (incl. tax deducted at source) (20,872,955) (14,709,415)
Provision released during the year (3,074,800) (118,173)
Closing balance 27,550,278 26,435,242
Grameenphone Ltd.
Annual Report 2018

Financial Analysis
25 Other current liabilities
As at As at
BDT (000) BDT (000)
Accruals for profit sharing plan 277,946 236,591

Payable for bills pay receipts 541,580 694,199
Dividend unclaimed 111,272 102,840
Security deposits from subscribers and channel partners 491,614 455,709
Others 1,401,106 1,453,854
2,823,518 2,943,193
26 Revenue
The following is an analysis of revenue for the year: 2018 2017

BDT (000) BDT (000)
Revenue from contract with customers (Note 26.1) 131,192,070 126,700,355

Lease revenues 1,639,897 1,735,459
132,831,967 128,435,814
26.1 Disaggregation of revenue from contract with customers
Type of goods/services
Revenue from mobile communication (Note 26.2) 130,789,466 123,716,181
Revenue from customer equipment (Note 26.3) 193,589 2,475,132
Other revenues (Note 26.4) 209,015 509,042
131,192,070 126,700,355
Type of subscription
Prepaid 125,758,921 118,904,772
Contract 5,030,545 4,811,409
Other 402,604 2,984,174
131,192,070 126,700,355
Type of customer
Consumer 114,450,582 108,810,530
Business 16,741,488 17,889,825
131,192,070 126,700,355
26.2 Revenue from mobile communication

This includes revenue from voice and non-voice traffic, subscription and connection fee and interconnection revenue.
26.3 Revenue from customer equipment

This mainly includes revenue from sale of mobile handsets/devices and data cards.
26.4 Other revenues

This mainly includes revenue from commission and other income.
27 Cost of material and traffic charges
Traffic charges 6,054,085 5,599,981

Cost of materials and services 1,275,467 4,722,095
130
7,329,552 10,322,076
Traffic charges mainly include national and international interconnection cost.

Grameenphone Ltd.
Annual Report 2018
Cost of materials and services includes cost of SIM card, scratch card, devices and contents.

28 Salaries and personnel cost
28.1 Salaries and personnel cost includes salaries, bonuses, different employment benefits including provident, gratuity, profit
sharing (WPPF), employee share programme for employees, long term incentive programme for key personnel, training
and other related costs. Additionally, gratuity expense includes BDT 236,064,243 (2017: BDT 1,062,079,853) for voluntary
retirement of 53 (2017: 276) employees during the year. The WPPF expense for the year ended 2018 is BDT 2,779,459,909
(2017: BDT 2,361,754,805)
28.2 Number of employees
Total number of employees having annual salary of BDT 36,000 or above each was 2,313 as at 31 December 2018 and
2,397 as at 31 December 2017.
29 Operation and maintenance
2018 2017
BDT (000) BDT (000)
Service maintenance fee 3,716,495 2,588,980

Vehicle maintenance expense 169,201 298,131
Other operation and maintenance 1,698,856 1,124,639
5,584,552 4,011,750
Service maintenance fee includes costs related to operation and maintenance of serviceability of mobile communication network.
30 Sales, marketing and commissions
Sales, marketing and representation costs 2,011,874 344,021

Advertisement and promotional expenses 933,273 867,029
Commissions 10,530,241 10,045,610
13,475,388 11,256,660
Sales, marketing and representation costs include costs related to trade marketing and subscriber acquisition.
31 Revenue sharing, spectrum charges and licence fees
Grameenphone shares 5.5% of its revenue as ‘revenue sharing’ and 1.0% of its revenue as ‘contribution to social obligation
fund’ with BTRC as per licencing conditions. Licencing conditions also require Grameenphone to pay annual licence fee
and annual spectrum fee and charges.
32 Other operating expenses/(income)
Consultancy and professional services (Note 32.1) 899,690 2,191,038

Statutory audit fees 2,500 2,500
Rental expense for property, plant and equipment 3,246,071 3,323,749
Fuel and energy costs 3,565,373 2,885,095
Impairment loss on trade receivables (Note 32.3) 156,711 1,013,599
Rental and other income (169,435) (285,721)
(Gain)/loss on disposal of assets (98,609) 200,183
Others (Note 32.4) 789,212 1,580,786
8,391,513 10,911,229
32.1 Consultancy and professional services

131
This includes fees for accounting and legal services, technical and business consultancy, costs related to settlement of
contract and other professional services.
Grameenphone Ltd.
Annual Report 2018

Financial Analysis
32.2 Rental expense for property, plant and equipment

Rent includes location rent for base stations, mobile switching centres (switch), shared sites for base stations and other
locations. Future minimum lease payments during non-cancellable period for such locations are as follows:
2018 2017
BDT (000) BDT (000)
(i) Not later than one year 1,419,077 1,398,676

(ii) Later than one year but not later than five years 1,640,144 -
(iii) Later than five years 1,087,890 -
4,147,111 1,398,676
32.3 Impairment loss on trade receivables

Allowance for impairment of trade receivables during the year (Note 39.1.3) 189,529 1,043,747
Recovery of impaired trade receivables during the year (32,818) (30,148)
156,711 1,013,599
Allowance for impairment has been made as per policy of the company mentioned in Note 3.8
32.4 Others
This includes office supplies, printing and postage, travelling, subscriptions, meeting, insurance etc.
33 Depreciation and amortisation
Depreciation of property, plant and equipment 17,020,985 18,728,176

Amortisation of intangible assets 5,518,193 4,608,415
22,539,178 23,336,591
34 Finance expense/(income)
Interest income (398,295) (397,940)

Interest expense 1,899,932 1,637,392
Net interest cost on defined benefit obligation 49,415 81,306
Other finance expenses 124,572 146,456
1,675,624 1,467,214
35 Income tax expense
Current tax expense

Income tax expenses for the year (Note 3.11) 25,062,791 22,378,805
Provision released during the year (3,074,800) (118,173)
21,987,991 22,260,632
Deferred tax expense/(income)
Deferred tax expense/(income) relating to origination and
reversal of temporary differences (1,558,677) (2,360,990)
20,429,314 19,899,642
36 Earnings per share
2018 2017
BDT BDT
132
Profit for the year (in BDT) 35,159,884,215 27,422,648,473

Weighted average number of shares (Note 36.1) 1,350,300,022 1,350,300,022
Basic earnings per share (Note 3.16) ( in BDT) 26.04 20.31
Grameenphone Ltd.
Annual Report 2018

36.1 Weighted average number of ordinary shares
The weighted average number of ordinary shares outstanding during the year is the number of ordinary shares outstanding
at the beginning of the year, adjusted by the number of ordinary shares issued during the year multiplied by a time-
weighting factor. The time-weighting factor is the number of days that the shares are outstanding as a proportion of the
total number of days in the year.
36.2 Diluted earnings per share
No diluted earnings per share is required to be calculated for the years presented as Grameenphone has no dilutive
potential ordinary shares.
37 Reconciliation of net operating cash flow
2018 2017
BDT (000) BDT (000)
Profit after tax 35,159,884 27,422,648

Income tax expense 20,429,314 19,899,642
Profit before tax 55,589,198 47,322,290
Adjustment for:
Depreciation & Amortisation 22,539,178 23,336,591
(Gain)/Loss on Sale of Fixed Assets (98,609) 200,183
Finance (expense)/income, net 1,675,624 1,467,214
Other adjustments 242,757 797,609
79,948,148 73,123,887
Changes in:
Inventories 238,081 102,964
Trade receivables and others 569,189 (317,260)
Trade payables and others 2,293,247 (1,077,157)
Provisions (350,849) 983,215
Other current liabilities (119,675) 1,115,708
Cash generated from operating activities 82,578,141 73,931,357
Interest received 398,295 397,940
Interest paid (1,690,713) (1,848,595)
Income tax paid (20,872,955) (14,709,416)
Net cash generated from operating activities 60,412,768 57,771,287
38 Net operating cash flow per share

2018 2017
BDT BDT
Net operating cash flow (BDT) 60,412,767,851 57,771,287,228

Weighted average number of ordinary shares outstanding during the period 1,350,300,022 1,350,300,022
Net operating cash flow per share (par value BDT 10 each) (BDT) 44.74 42.78
133
Grameenphone Ltd.
Annual Report 2018

Financial Analysis
39 Financial risk management
Company’s financial risk management is governed by the Treasury Policy as approved by the Board of Directors. Company’s
principal financial assets include trade receivables and others, cash and short-term deposits that arise directly from its
operations. Company’s financial liabilities mainly include trade payables and others, finance lease obligation and loans
and borrowings. The main purpose of these financial liabilities is to finance the company’s operations. The company is
exposed to credit risk, liquidity risk and market risk in relation to its financial instruments.
39.1 Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to
discharge an obligation. Company’s exposure to credit risk primarily relates to trade receivables and balances with banks
including short and long term deposits.
Customer credit risk, where appropriate, is assessed by using qualitative and quantitative criteria. Outstanding trade
receivables are regularly monitored and appropriate impairment charge is considered as per company’s policy.
Credit risk relating to balances with banks is managed by the treasury department in accordance with company’s policy.
Minimising counterparty risk is given more importance to yield on investment in making investment decisions. Counterparty
limits are reviewed and approved by the Board of Directors.
39.1.1 Company’s maximum exposure to credit risk for the components of the statement of financial position is represented by
the carrying amounts as illustrated below:
As at As at
BDT (000) BDT (000)
Trade receivables 5,432,757 5,087,535

Other current receivables
Receivables on Employees - Non-Interest Bearing 5,530 4,366
Other non-interest-bearing receivables 1,183,343 1,162,466
1,188,873 1,166,832
Cash at bank 5,925,394 12,404,707
12,547,024 18,659,074
39.1.2 Trade receivables, gross
This included interconnection receivables of BDT 3,421,019,962 as at 31 December 2018 (2017: BDT 3,933,867,239).
The ageing of gross interconnection receivables as at the statement of financial position date was:
Not past due 1,426,591 1,873,714

0-30 days past due 84,882 105,118
31-60 days past due 130,538 93,520
61-90 days past due 26,218 16,738
91-180 days past due 67,230 61,994
181-365 days past due 46,470 274,309
over 365 days past due 1,639,091 1,508,474
3,421,020 3,933,867
134
Grameenphone Ltd.
Annual Report 2018

Other trade receivables (other than receivable from interconnection) as at 31 December 2018 was BDT 3,775,292,423
(2017: BDT 2,872,337,585 The ageing of other trade receivables as at the statement of financial position date was:
As at As at
BDT (000) BDT (000)
Not past due 788,038 1,235,127

0-30 days past due 1,968,223 969,906
31-60 days past due 229,882 134,581
61-90 days past due 97,177 79,869
91-180 days past due 158,100 131,537
181-365 days past due 208,166 193,687
over 365 days past due 325,706 127,631
3,775,292 2,872,338
Total not past due trade receivables (gross) as at 31 December 2018 includes receivables of BDT 907,023,719 (2017: BDT
1,307,850,541) from customers against whom receivables of BDT BDT1,701,944,793 (2017: BDT 1,509,119,354) became
over 365 days past due and provision for bad debt of BDT 1,489,213,132 (2017: BDT 1,471,401,591) provided against those
customers. However, as per BTRC guidelines we are obligated to provide services to the inter connection service providers.
39.1.3 Movements in the allowance for impairment of trade receivables during the year was as follows:
Opening balance 1,718,669 997,093

Net remeasurement of loss allowance 189,530 1,043,747
1,908,199 2,040,840
Amounts written off (144,643) (322,171)
Closing balance 1,763,556 1,718,669
39.1.4 Security against trade receivables
Good and secured 533,939 496,563

Good with personal security/unsecured 4,898,818 4,590,972
Impaired 1,763,555 1,718,669
Gross trade receivables 7,196,312 6,806,204
Impairment loss allowance (1,763,555) (1,718,669)
Trade receivables, net 5,432,757 5,087,535
39.1.5 The maximum exposure to credit risk for trade receivables as at the statement of financial position date by
geographic regions was:
Domestic 5,266,336 5,007,870

Asia 93,955 54,255
Europe 29,700 16,894
Australia 11,877 1,289
America 30,513 6,813
Africa 376 414
5,432,757 5,087,535
135
Grameenphone Ltd.
Annual Report 2018

Annual Report 2018
39.2 Liquidity risk
Liquidity risk is the risk that the company is unable to meet its financial obligations as they fall due. The company forecasts its cash flow requirements and ensures that it has
sufficient cash and cash equivalents and loan facilities to cover expected needs for liquidity during the next 12 months. The company maintains a balanced maturity profile of
Financial Analysis
debt obligations and in general minimises current excess cash.
The table below gives the maturity profile of the company’s financial liabilities based on contractual undiscounted payments.

Carrying Maturity Nominal Contractual 6 months 6-12 1-2 2-5 More than
amount date Interest rate Cash flows or less months years years 5 years
BDT (000) BDT (000) BDT (000) BDT (000) BDT (000) BDT (000) BDT (000)
Finance lease obligation 4,931,494 June 2027 15% 9,025,302 467,086 482,153 979,373 4,218,839 2,877,851
(including current portion)
Loans and borrowings - long-term 2,894,157 April 2020 6-month-LIBOR + 3.5% 2,973,938 - - 2,973,938 - -
Loans and borrowings - short-term

Foreign 5,759,145 October 2019 6-month-LIBOR + 3.5% 6,216,267 3,152,374 3,063,893 - - -
Local - - - - - - - - -
Trade payables and others

Trade payables 12,450,949 December 2019 N/A 12,450,950 5,845,654 6,605,296 - - -
including liability for capital expenditure
Accrued expenses 6,274,734 December 2019 N/A 6,274,734 2,611,951 3,662,783 - - -
Other current liabilities 2,823,518 December 2019 N/A 2,823,518 1,938,702 884,816 - - -
35,133,997 39,764,708 14,015,768 14,698,941 3,953,311 4,218,839 2,877,851
Carrying Maturity Nominal Contractual 6 months 6-12 1-2 2-5 More than
amount date Interest rate Cash flows or less months years years 5 years
BDT (000) BDT (000) BDT (000) BDT (000) BDT (000) BDT (000) BDT (000)
Overview
Finance lease obligation 5,413,283 June 2027 15% 10,264,078 452,019 786,756 949,239 1,988,881 6,087,183
(including current portion)
Loans and borrowings - long-term 8,539,290 April 2020 6-month-LIBOR + 3.5% 8,994,784 - - 6,069,094 2,925,689 -
Loans and borrowings - short-term

Foreign 5,679,626 October2018 6-month-LIBOR + 3.5% 6,358,585 3,215,578 3,143,006 - - -
Local - - - - - - - - -
Trade payables and others

Trade payables including liability for 11,293,719 December 2018 N/A 11,293,719 4,785,402 6,508,317 - - -
Sustainability
capital expenditure
Accrued expenses 5,122,408 December 2018 N/A 5,122,408 2,919,773 2,202,636 - - -
Other current liabilities 2,943,193 December 2018 N/A 2,943,193 2,943,193 - - - -

38,991,519 44,976,766 14,315,966 12,640,715 7,018,333 4,914,571 6,087,183
Governance
Financial Analysis

Annual Report 2018
Annual Report 2018
39.3 Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of
risk: currency risk, interest rate risk and other price risk.
Financial Analysis
a) Currency risk
Foreign currency risk is the risk of changes in the fair vale or future cash flows of an exposure due to changes in foreign exchange rates. The company’s exposure to foreign
currency risk relates primarily to the company’s operating activities (consultancy, roaming revenue and expense) and financing activities (borrowing in foreign currency). The
company is mainly exposed to changes in USD and NOK rates. The company’s exposure to foreign currency changes for other currencies is not material.
i) Exposure to currency risk

The company’s exposure to monetary assets and liabilities denominated in foreign currencies was as follows (BDT in thousand):
As at 31 December 2018 As at 31 December 2017

USD NOK GBP EUR JPY USD NOK GBP EUR JPY
Foreign currency denominated assets

Receivable from Telenor entities 242,930 - - - - 196,036 - - - -
Accounts receivable 311,378 - - - - 177,722 - - - -
Cash at bank 464,429 - - - - 287,349 - - - -
1,018,737 - - - - 661,106 - - - -
Foreign currency denominated liabilities
Loans and borrowings (8,653,301) - - - - (14,218,915) - - - -
Payable to other Telenor entities* (1,113,078) (3,460,100) - - - (1,573,605) (2,187,195) - (2) -
Trade payables and others (340,676) - - (47,476) (957) (351,527) - (9,695) (64,750) (924)
(10,107,055) (3,460,100) - (47,476) (957) (16,144,047) (2,187,195) (9,695) (64,752) (924)
Net exposure (9,088,318) (3,460,100) - (47,476) (957) (15,482,941) (2,187,195) (9,695) (64,752) (924)
* Payable to other Telenor entities represents payable for business service costs, consultancy fees etc. which are included mainly in trade payables and others.
The following significant exchange rates have been applied:
Exchange rate as at
BDT BDT
US Dollar (USD) 83.59 82.69
Norwegian Kroner (NOK) 9.65 10.08
Great Britain Pound (GBP) 106.44 111.93
EURO (EUR) 95.61 99.45
Japanese Yen (JPY) 0.76 0.73
Market risk (contd.)
ii) Foreign exchange rate sensitivity analysis for foreign currency expenditures
A change of 10 basis points (bp) in foreign currencies would have increased/(decreased) equity and profit or loss of the
company by the amounts shown below. This analysis assumes that all other variables, in particular interest rates remain
constant.
Profit or loss Equity

10 bp increase 10 bp decrease 10 bp increase 10 bp decrease
31 December 2018 BDT (000) BDT (000) BDT (000) BDT (000)
Expenditures denominated in USD (9,088) 9,088 (9,088) 9,088

Expenditures denominated in NOK (3,460) 3,460 (3,460) 3,460
Expenditures denominated in GBP - - - -
Expenditures denominated in EURO (47) 47 (47) 47
Expenditures denominated in JPY (1) 1 (1) 1
Exchange rate sensitivity (12,596) 12,596 (12,596) 12,596
31 December 2017
Expenditures denominated in USD (15,483) 15,483 (15,483) 15,483

Expenditures denominated in NOK (2,187) 2,187 (2,187) 2,187
Expenditures denominated in GBP (10) 10 (10) 10
Expenditures denominated in EURO (65) 65 (65) 65
Expenditures denominated in JPY (1) 1 (1) 1
Exchange rate sensitivity (17,746) 17,746 (17,746) 17,746
b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rate. Exposure to fair value movement relates to fixed rate instruments subject to fair value accounting
and exposure to cash flow fluctuation relates to variable rate instruments. The company is primarily exposed to cash flow
fluctuation arising from variable rate borrowings. The objective of interest rate risk management for Grameenphone is to
reduce financial cost and ensure predictability.
Profile
As at 31 December 2018, the interest rate profile of the company’s interest bearing financial instruments was:
Carrying amount
As at As at
BDT (000) BDT (000)
Floating rate instruments
Loans and borrowings 8,653,301 14,218,915
139
Grameenphone Ltd.
Annual Report 2018

Financial Analysis
Fair value of financial assets and liabilities of the company together with carrying amount shown in the statement of
financial position were as follows:
As at As at
BDT (000) BDT (000)
Financial assets
Financial assets at amortised cost

Trade receivables 5,432,756 5,087,535
Other receivables 1,188,873 1,166,832
Other financial liabilities

Finance lease obligation 4,931,494 5,413,283
Loans and borrowings - long-term 2,894,157 8,539,290
Liability for spectrum acquisition - long-term 3,445,913 -
Trade payables and others (except other non-financial liabilities) 20,714,918 18,544,521
Loans and borrowings - short-term 5,759,145 5,679,626
Other current liabilities 2,823,518 2,943,193
* The Company has not disclosed the fair values for financial instruments because their carrying amounts are a
reasonable approximation of fair value.
Interest rates used to determine amortised cost

The interest rates used to discount estimated cash flows, when applicable, were as follows:
2018 2017
Finance lease obligation 15.00% 15.00%
Liability for spectrum acquisition 8.50% -

Loans and borrowings
Foreign 6-month-LIBOR + 3.5% 6-month-LIBOR + 3.5%
Local - -
* Fair value of such instruments is not likely to be significantly different from the carrying amounts of such instruments.
40 Capital management
For the purpose of company’s capital management, capital includes issued capital, share premium and all other equity
reserves attributable to the equity holders of the company. The primary objective of company’s capital management is to
support long-term strategic ambitions of the company.
In order to maintain or adjust the capital structure, the company may adjust the amount of dividend, return capital to
shareholders, issue new shares or obtain long-term debt. Company has capital structure and dividend policy approved by
its Board of Directors.
There have been no breaches in the financial covenants of any interest-bearing loans and borrowings in the current year.
No changes have been made in the objectives, policies or processes for managing capital during the year ended 31 December
2018.
140
Grameenphone Ltd.
Annual Report 2018

41 Related party disclosures
During the year ended 31 December 2018, the company entered into a number of transactions with related parties in the normal course of business. The names of the significant
related parties, nature of these transactions [expenditures/(revenue)/, receivables/(payables) and dividend payments] and amounts are set out below in accordance with the
Overview
provisions of IAS 24 Related Party Disclosures. Nature of relationship and significance of the amounts have been considered in providing this disclosure.
41.1 Key management personnel compensation

2018 2017
BDT (000) BDT (000)
Short term employee benefits 681,048 552,806
Post employment benefits 58,682 58,122
Other long term benefits 27,339 18,893
767,069 629,821
Key management personnel compensation includes benefits for employees of the rank of Director and above. No remuneration is given to the Board of Directors apart from
attendance fees in connection with Board and Board Sub-Committee meetings. During the year 2018, attendance fees in connection with Board and Board Sub-Committee
meetings are BDT 1,325,562 (2017: BDT 1,296,122).
Sustainability
41.2 Debts due from and due to key management personnel

Attendance fees of Board of Directors which are not yet paid, includes BDT 4,458,119 as at 31 December 2018 (2017: BDT 3,729,456). Other than that no debts were due from
and due to key management personnel of the company.
Key management personnel of Grameenphone may use mobile communication services of Grameenphone. These services may be charged on the arm’s length basis after a
certain usage limit and trade receivables and others may include receivables for providing mobile communication services to them.
Governance
41.3 Other related party transactions during the year

2018 2017
Name of related parties Nature Nature of transactions BDT (000) BDT (000)
Telenor Mobile Communications AS Shareholder Dividend payment 16,951,674 14,691,451
Nye Telenor Mobile Communications II AS Shareholder Dividend payment 5 4
Nye Telenor Mobile Communications III AS Shareholder Dividend payment 5 4
Telenor Asia Pte. Ltd. Shareholder Dividend payment 5 4
Financial Analysis
Grameen Telecom Shareholder Dividend payment 10,389,744 9,004,445

Commission expense 187,144 190,755
Grameen Kalyan Shareholder Dividend payment 0.5 0.4
Grameen Shakti Shareholder Dividend payment 0.5 0.4
Accenture Communications Associate Purchase of IT service, equipments and softwares - 636,361
Infrastructure Solutions Ltd. Rental income and other income - (25,344)
Investment in preference shares - 99,000

Annual Report 2018
Annual Report 2018
2018 2017
Financial Analysis

Telenor ASA Telenor group entity Consultancy and professional service fee 1,075,449 684,252
IT support cost 103,337 301,343
Telenor Global Services AS Telenor group entity Consultancy and professional service fee 38,568 38,343
Telenor Global Shared Services AS Telenor group entity Consultancy and professional service fee 361,039 579,770

Telenor Go Pte Ltd. Telenor group entity Consultancy and professional service fee including
compensation of key management personnel where relevant 250,046 314,258
Telenor Digital AS Telenor group entity Consultancy and professional service fee 572,054 (99,136)
Telenor Health AS Telenor group entity Cost of service 30,619 42,399
Telenor Procurement Company Telenor group entity Cost of service 269,009 21,530
Telenor Norway Telenor group entity Roaming revenue net of discount (909) (482)
Roaming cost net of discount 10 216
Telenor Sweden Telenor group entity Roaming revenue net of discount (527) (249)
Telenor Denmark Telenor group entity Roaming revenue net of discount 934 264
Telenor Hungary Telenor group entity Roaming revenue net of discount (1) (22)
till 31 July 2018 Roaming cost net of discount 2 0.4
Telenor Serbia Telenor group entity Roaming revenue net of discount 122 82
till 31 July 2018 Roaming cost net of discount 1 3
Telenor Montenegro Telenor group entity Roaming revenue net of discount (2) (3)
till 31 July 2018 Roaming cost net of discount 1 0.01
Telenor Bulgaria Telenor group entity Roaming revenue net of discount (0.1) (1)
till 31 July 2018 Roaming cost net of discount 0.2 1
Telenor Pakistan Telenor group entity Roaming revenue net of discount (1) (4)
2018 2017
Telenor India Telenor group entity Roaming revenue net of discount - 21

Overview
Roaming cost net of discount - (61)
Telenor Myanmar Telenor group entity Roaming revenue net of discount (468) (102)
Roaming cost net of discount 32 (6)
Dtac Thailand Telenor group entity Roaming revenue net of discount (414) (166)
Roaming cost net of discount 1,388 724
Digi Malaysia Telenor group entity Roaming revenue net of discount (4,800) (5,970)
Roaming cost net of discount 341 2,019
SNT holdings Joint venture of Telenor group Revenue from mobile communication - (1,272)
till 30 June 2017
VEON Ltd. Associated companies of Telenor group Roaming revenue net of discount - (218)
Sustainability
till 7 April 2017 Roaming cost net of discount - 36
Telenor Norge AS Joint venture of Telenor group Consultancy and professional service fee 159,694 -
Tapad Incorporation Associated companies of Telenor group Consultancy and professional service fee 62,397 -
Telenor Southeast Asia Telenor group entity Technical and Support Maintenance Fees 63,758 -
Investment Limited
Governance
Telenor India Private Limited Telenor group entity Technical and Support Maintenance Fees 15,614 -
Grameen Distribution Related to Grameen Telecom Cost of products 300 734,076

through Grameen Telecom Trust
Grameen Solutions Limited Related to Grameen Telecom Software solution and maintenance 400 -
Financial Analysis
Snehasish Mahmud & Co. Associated entity of a member

of Board of Directors Consultancy and professional service fee 609 -

Annual Report 2018
Annual Report 2018
41.4 Receivables/(payables) with other related parties
As at As at
Financial Analysis
Grameen Telecom Shareholder Accounts receivable - 3,170

Accounts payable (15,758) (15,852)
Accenture Communications Associate Accounts receivable 6,360 26,149

Infrastructure Solutions Ltd. Accounts payable (6,360) (27,649)

Telenor ASA Telenor group entity Accounts receivable 11,371 -
Accounts payable (1,714,261) (2,102,569)
Telenor Consult AS Telenor group entity Accounts payable (2,089) (2,051)
Telenor Global Services AS Telenor group entity Accounts receivable 44,228 11,080
Telenor Global Shared Services AS Telenor group entity Accounts payable (1,499,612) (1,317,342)
Telenor Go Pte Ltd. Telenor group entity Accounts receivable 50,191 50,191
Telenor Digital AS Telenor group entity Accounts receivable 3,290 1,131

Accounts payable (572,054) -
Telenor Health AS Telenor group entity Accounts receivable 110,194 109,070

Telenor Procurement Company Telenor group entity Accounts payable (348,551) (21,530)
Telenor International Centre AS Telenor group entity Accounts receivable - 12,324
Telenor Norway Telenor group entity Accounts receivable 1,291 270

Accounts payable (9) (5)
Telenor Sweden Telenor group entity Accounts receivable 442 257

Telenor Denmark Telenor group entity Accounts receivable 319 62


Telenor Hungary Telenor group entity Accounts receivable - 28
till 31 July 2018 Accounts payable - (15,663)
As at As at
Telenor Serbia Telenor group entity Accounts receivable - 1
Overview
till 31 July 2018 Accounts payable - 0.2
Telenor Montenegro
Telenor group entity Accounts receivable - 3
till 31 July 2018 Accounts payable - (0.8)

Telenor Bulgaria Telenor group entity Accounts receivable - 0.1
till 31 July 2018 Accounts payable - (2)
Telenor Pakistan Telenor group entity Accounts receivable 1 0


Telenor India Telenor group entity Accounts receivable 3,616 3,616
Telenor Myanmar Telenor group entity Accounts receivable 5,959 59


Dtac Thailand Telenor group entity Accounts receivable 896 273
Sustainability

Digi Malaysia Telenor group entity Accounts receivable 9,139 4,387
Telenor Norge AS Telenor group entity Accounts payable (159,694) -
Telenor Southeast Asia Investment Limited Telenor group entity Accounts payable (63,758) -
Governance
Tapad Incorporation Telenor group entity Accounts payable (62,397) -

Telenor India Pvt Limited Telenor group entity Accounts payable (15,614) -
Grameen Distribution Related to Grameen Telecom Accounts payable (81) -

through Grameen Telecom Trust
Grameen Solutions Limited Related to Grameen Telecom Accounts payable (146) -

Snehasish Mahmud & Co. Associated entity of a member of Accounts payable (273) -
Financial Analysis
Board of Directors
41.5 Transactions with post-employment benefit plans, Workers’ Profit Participation Fund and Workers’ Welfare Fund
No other transaction incurred with defined benefit plan other than those disclosed in Note 20. During the year, BDT 487,102,883 (2017: BDT 516,587,186) was transferred to
defined contribution plan, BDT 2,223,567,927 (2017: BDT 1,892,725,485) was transferred to Workers’ Profit Participation Fund and BDT 277,945,991 (2017: 236,590,686)

was transferred to Workers’ Welfare Fund.
Annual Report 2018

Financial Analysis
42 Expense/expenditure and (revenue) in foreign currency during the year
2018 2017
BDT (000) BDT (000)
CIF value of imports
Telecommunication equipment 9,836,198 6,019,419
Expenditure in foreign currency

Consultancy fee 1,515,179 743,854
Consultancy fee - expatriate 250,046 314,258
Other fee (travel and training) 85,196 110,231
Technical know how 1,247,386 1,209,331
International roaming cost net of discount 37,450 48,522
Interest on foreign loan 687,374 852,166
Foreign earnings
Revenue net of discount from roaming partners (139,223) (101,661)
43 Short-term credit facilities available as at 31 December 2018
The company enjoys composite working capital facilities, including both funded and non-funded facilities from 11 banks
(2017: 18 banks). The non-funded facilities include Letters of Credit (LC), Shipping Guarantee, Letters of Guarantee and
Foreign Exchange Forward Contracts. The funded facilities include overdraft facility and short term loan. Import loans,
though funded in nature, have been incorporated under non-funded facilities given that they are availed solely for the
purpose of settlement of LC. The aggregate amount of arranged composite working capital facilities is BDT 41,118 million
(2017: BDT 38,016 million) of which non-funded limit is BDT 23,031 million (2017: BDT 21,714 million) and funded limit is
BDT 25,497 million (2017: BDT 24,202 million). The limits maintained with some banks are omnibus in nature.
As per the approval of the Board of Directors of Grameenphone, the total amount of short-term funded facilities is limited
to BDT 25,500 million (2017: BDT 25,500 million).
Security against short term credit facilities

The short-term credit facilities are unsecured and backed by standard charge documents as per terms and conditions set
by respective banks and financial institutions.
44 Commitments
As at As at
BDT (000) BDT (000)
Capital commitment (open purchase order) for Property, plant and equipment
3,485,181 3,381,325
Capital commitment (open purchase order) for intangible assets
228,923 67,683
The company as lessee has finance and operating lease commitments as disclosed in Note 17 and Note 32.2.
45 Contingencies
The company is currently involved in a number of legal proceedings, including inquiries from, or discussions with,
governmental authorities that are incidental to its operations. However, save as disclosed below, the company is not
currently involved in any legal proceedings which may have a significant effect on the financial position or profitability of
the company but for which any provision has not been recognised in these financial statements.
(a) BTRC audit

During 2011, BTRC carried out an information system audit of Grameenphone through BTRC’s appointed auditor and issued
a notice to Grameenphone on 3 October 2011 claiming an amount of BDT 30,341,108,581 as outstanding dues on various
categories. During and after the audit, Grameenphone clarified to both BTRC and their auditors that those observations
were framed on wrong basis. Thereafter, Grameenphone disagrees to the claim made by BTRC and responded to the letter
146
requesting BTRC to withdraw the notice. Subsequently, Grameenphone filed a Title Suit before the learned Judge Court,
Dhaka challenging the BTRC demand. In an Appeal arising out of the Title Suit, the Hon’ble High Court Division passed an
Grameenphone Ltd.
Annual Report 2018
order of status quo on the demand, which is effective till disposal of the matter at the Hon’ble High Court Division.

It is to be noted that in a separate Writ Petition filed by another audit firm challenging the auditor appointment process
of BTRC, the appointment of the said auditor by BTRC was declared illegal by the Hon’ble High Court Division for non-
compliance with the relevant procurement laws which was later on upheld by the Hon’ble Appellate Division. On 30
September 2018, BTRC filed an application for dismissal of the case without going into merit. The hearing of the application
has not taken place yet.
In 2015, BTRC appointed a new auditor through a fresh appointment process to conduct an information system audit on
Grameenphone since inception to 2014. As part of the audit process, BTRC appointed auditor shared a summary of the
draft audit observations for Grameenphone’s feedback on 11 December 2017. Grameenphone provided feedback clarifying
its position against the observations on 18 January 2018. Subsequently, on 26 August 2018, BTRC shared the full audit
report for Grameenphone’s feedback and Grameenphone responded to the same in September 2018.
(b) SIM tax on replacement SIMs

Large Taxpayers’ Unit (LTU)-VAT through a letter dated 16 May 2012 claimed SIM tax of BDT 15,804,391,570 including
interests of BDT 5,454,810,667 for all replacement SIMs issued during the period from July 2007 to December 2011 alleging
that Grameenphone evaded SIM tax by selling new connections in the name of replacement SIMs. The said demand was
made based on extrapolating the outcome of only 5 (five) randomly purchased SIMs by LTU-VAT. Grameenphone challenged
the demand by a Writ Petition before the Hon’ble High Court Division and the Hon’ble High Court Division on 6 June 2013
disposed of the Writ Petition directing the Commissioner, LTU-VAT to decide on this matter within 120 days and make no
demand in the meantime. Consequently a SIM Replacement Review Committee was constituted by the Commissioner. The
LTU-VAT authority in January 2014 finalised their observations without changing their earlier position significantly.
The mobile operators expressed their dissatisfaction over the findings and the way LTU-VAT members of the Review
Committee disregarded the spirit of the ‘Terms of Reference’ and agreed methodology as endorsed by BTRC in carrying
out the review.
Thereafter, the Commissioner, LTU-VAT issued an order dated 18 May 2015 purporting to dispose of the show cause notice
and finalise the demand at BDT 10,232,331,083 as SIM tax. The revised demand includes substantially all replacements
done by Grameenphone between July 2007 and December 2011.
At this juncture, Grameenphone filed an appeal before the Customs, Excise & VAT Appellate Tribunal under Section 42(1)
(Kha) of the VAT Act 1991 against the demand order. Even though Grameenphone believes that the claim against it is not
likely to be legally enforceable, 10% of the disputed amount had to be deposited at the time of appeal as part of the appeal
procedure prescribed by law. Since the claim is not likely to be legally enforceable, any payment related to this claim is
likely to be recoverable after the resolution of this issue. We considered the deposit as a contingent asset under IAS 37
Provisions, Contingent Liabilities and Contingent Assets.
On 5 June 2017, the VAT Appellate Tribunal dismissed the Appeals filed by Grameenphone and other mobile operators.
The judgment was communicated to Grameenphone on 18 July 2017. Subsequently on 19 July 2017, challenging the said
Judgment & Order of the Tribunal, Grameenphone filed a VAT Appeal before the Hon’ble High Court Division wherein the
Hon’ble High Court Division has stayed the operation of the Judgment & Order of the Tribunal. The Hon’ble High Court
Division fixed the appeal for hearing which will be concluded as per accommodation of the court.
Further, in July 2017 without conducting any investigation and based on the assumption that Grameenphone evaded SIM
tax by selling new connections in the name of replacement SIMs, LTU-VAT issued a show cause notice of BDT 3,789,537,820
to Grameenphone for the period July 2012 to June 2015. Grameenphone replied to the show cause notice stating, inter
alia, a similar claim relating to an earlier period of July 2007 to December 2011 is now pending for adjudication before
the Hon’ble High Court Division in an earlier filed VAT appeal. Subsequently, the Commissioner of LTU-VAT issued the final
demand for BDT 3,789,537,820. On 20 February 2018, Grameenphone filed appeal before the Customs, Excise and VAT
Appellate Tribunal against the demand upon depositing 10% of the demand as appeal fee and considered the deposit as a
contingent asset under IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
Subsequently during November 2017, the commissioner of LTU-VAT issued a separate show-cause notice for the similar
issue but for the period of January 2012 to June 2012 amounting BDT 823,342,916. As per provision of the VAT Act-1991,
LTU-VAT cannot claim any due beyond 5 years, hence the claim is time barred. Grameenphone replied to the show cause
notice accordingly. Subsequently LTU-VAT issued notice fixing hearing on 1 January 2019, on that date Grameenphone
sought time.
(c) VAT rebate on 2G licence renewal fee

Grameenphone was under legal obligation to deduct 15% VAT at source from the payments to any licencing authorities
including BTRC pursuant to insertion of Rule 18(Uma) in Value Added Tax Rules, 1991 which became effective from 1 July
2010. Since then Grameenphone complied with the same and BTRC accepted such deductions. However, the dispute arose
in 2011 at the time of Grameenphone’s 2G Licence Renewal when BTRC stipulated in Licence Renewal Guideline to make
147
the payment ‘without any deduction’. In 2011 mobile operators including Grameenphone challenged such stipulation in
separate Writ Petitions before the Hon’ble High Court Division wherein the Court allowed Grameenphone to exercise the
right to claim rebate of VAT. However, Grameenphone, BTRC and NBR filed separate Civil Petition for Leave to Appeals
Grameenphone Ltd.
Annual Report 2018
before the Hon’ble Appellate Division. The Appellate Division granted leave and accordingly Grameenphone filed Civil

Financial Analysis
Appeal.
It should be noted that after amendments in Value Added Tax Rules, 1991, in 2012 at the time of making payment for
2nd installment of 2G Spectrum Assignment Fee, Grameenphone exercised its right to claim rebate of VAT which was
subsequently cancelled by the LTU-VAT since BTRC, not being a VAT registered entity, could not provide legally required
VAT Challan i.e. Mushak-11. Grameenphone challenged such cancellation by another Writ Petition which is still pending
before the Hon’ble High Court Division.
100% of the Licence Renewal Fee has been capitalised based on the assumption that Grameenphone’s VAT exposure will
be nil. This assumption is based on the Hon’ble High Court’s verdict which allowed Grameenphone to exercise its right to
claim rebate against the VAT paid.
However, the lawsuit over the VAT rebate mechanism is still pending before the Appellate Division. If the Hon’ble Appellate
Division rules that Grameenphone would be required to pay VAT and would not be able to exercise the right to claim rebate
for this VAT, Grameenphone’s financial exposure on capitalised Licence Renewal Fee for this would increase by 15% (i.e.
BDT 4,876,800,000).
(d) Claim for VAT based on C&AG audit

Large Taxpayers’ Unit (LTU)-VAT on 14 May 2014 issued 8 demand-cum-show cause notices for a total amount of
BDT 16,597,269,891 referring to an audit report prepared by Local and Revenue Audit Directorate of Comptroller and
Auditor General (C&AG) office of Bangladesh. C&AG office made this audit report for the fiscal year 2010-11 and 2011-12.
Grameenphone disagreed to the findings of the audit report referred by LTU-VAT due to lack of jurisdiction of C&AG office
to conduct audit on the matters of private entity under the Constitution of Bangladesh. Moreover, improper procedures
were followed during the course of the assessment and relevant facts as well as legal provisions were misconstrued in
reaching the conclusion. Grameenphone challenged the notices by filing a Writ Petition before Hon’ble High Court Division
and the Hon’ble High Court Division on 15 December 2014 passed the judgment by making the rule absolute in favour of
Grameenphone and setting aside the demand notices.
Thereafter, NBR filed a Civil Petition for Leave to Appeal before the Hon’ble Appellate Division and on 5 March 2017 the
Hon’ble Appellate Division disposed of the said Civil Petition for Leave to Appeal. Subsequently in connection with the
demand-cum-show cause notices dated 14 May 2014 Grameenphone provided information and documentation to the VAT
authority which they have reviewed, which we believe should be to their satisfaction.
(e) Interest on SIM Tax during 24 August 2006 to 27 March 2007

NBR through a General Order dated 9 June 2005 fixed Tariff Value determining SIM Tax (Supplementary Duty and VAT)
on SIM Card at BDT 2,172.20. Challenging the legality of such imposition of SIM Tax one subscriber filed a Writ Petition
before the Hon’ble High Court Division and the Hon’ble High Court Division on 25 June 2005 by an interim order stayed
the operation of the General Order. Accordingly the mobile operators including Grameenphone could not collect SIM Tax
from the customers since the collection of SIM Tax was suspended. Subsequently, on 24 August 2006 Hon’ble High Court
Division passed judgment declaring the imposition of SIM Tax on SIM Card as illegal. Upon a Civil Petition filed by the NBR,
the judgment of the Hon’ble High Court Division was initially stayed by the Hon’ble Appellate Division on 27 March 2007
and finally on 1 August 2012 the Hon’ble Appellate Division reversed the judgment of Hon’ble High Court Division declaring
the imposition of SIM Tax as legal. NBR issued a demand notice after the judgment of the Hon’ble Appellate Division and
BDT 3,480,971,703 was paid by Grameenphone on 12 September 2012 on protest.
On 9 May 2016 Large Tax Payers’ Unit (LTU)-VAT issued a show cause notice on Grameenphone for interest amounting BDT
4,525,263,202 for the delay in payment of SIM Tax on sale of SIM during the period August 2006 to March 2007 for a period
of 65 months, i.e. the period between 1 April 2007 and the day before the date of the payment made by Grameenphone, i.e.
11 September 2012 during which the matter was pending before the Hon’ble Appellate Division for disposal. Subsequently,
NBR issued a demand notice on 22 June 2016 for the same amount which was challenged by Grameenphone through
filing an appeal before the Hon’ble Customs, Excise & VAT Appellate Tribunal. Even though Grameenphone believes that
the claim against Grameenphone is not likely to be legally enforceable, 10% of the disputed amount had to be deposited
at the time of filing such appeal as part of the appeal procedure prescribed by law. Since the claim is not likely to be
legally enforceable, any payment related to this claim is likely to be recoverable after the resolution of this issue. We have
considered the deposit as a contingent asset under IAS 37 Provisions, Contingent Liabilities and Contingent Assets. The
appeal was heard before the Hon’ble Customs, Excise and VAT Appellate Tribunal on 28 March 2017.
Thereafter, the appeal was re-heard before the Hon’ble Customs, Excise and VAT Appellate Tribunal on 3 April 2018.
Upon re-hearing, the Customs, Excise and VAT Appellate Tribunal upheld the demand of the Commissioner, LTU-VAT and
issued its judgment on 11 April 2018. Subsequently, Grameenphone filed a VAT Appeal before Hon’ble High Court Division,
challenging the said judgment of the Tribunal on 31 May 2018. On 10 July 2018, High Court Division stayed the judgment of
the Tribunal till disposal of the VAT Appeal.
148
As per direction of the Hon’ble High Court Division Grameenphone has submitted the relevant documents. The Hon’ble
High Court Division fixed the appeal for hearing which will be heard as per accommodation of the court.
Grameenphone Ltd.
Annual Report 2018

(f) Interest for delayed payment of Guaranteed Annual Rent to Bangladesh Railway
There is a dispute regarding payment of VAT (whether inclusive or exclusive) on the Guaranteed Annual Rent (GAR)
paid to Bangladesh Railway (BR) to use its Fibre Optic Network (FON) under an Agreement dated 17 September 1997.
Grameenphone made payment to BR after deduction of VAT from the GAR following inclusive method. In 2008, BR
requested Grameenphone to pay the amounts deducted as VAT otherwise threatened to disconnect the FON connection.
Grameenphone filed a Writ Petition before the Hon’ble High Court Division (HCD) and HCD disposed of the Writ directing
Grameenphone to pay VAT following exclusive method i.e. to be grossed up on top of GAR which was later on upheld by
the Hon’ble Appellate Division (AD). BR issued a demand letter of BDT 319,670,457. Grameenphone paid the demanded
amount on 10 January 2018 without prejudice to its right to file Review Petition before the AD and subject to adjustment,
if any, as per the decision of the Review.
On 27 February 2018, BR made an additional demand of BDT 1,316,513,243 as interest for delayed payment of deducted
GAR following the provisions of the agreement between Grameenphone and BR. Management’s assessment based on
external counsel’s guidance is that interest should not apply during the period when the matter was sub-judice and BR’s
demand for principal amount was stayed by the Order of the Court. Pursuant to the said demand letter, on 24 May 2018,
Grameenphone sent a letter to BR for resolution of the dispute by stating its legal position. Thereafter, BR refused the
proposal for amicable resolution on 29 July 2018.
Now Grameenphone is assessing the merit of the claim and exploring appropriate step in this regard.
46 Other disclosures
46.1 Segment information

Grameenphone essentially provides similar products and services to customers across the country and its products
and services essentially have similar risk profile. Grameenphone’s business is not organised in product or geographical
components and its operating result is reviewed as a whole by its management. Hence, segment information is not relevant.
46.2 Events after the reporting period

The Board of Directors of Grameenphone Ltd. at its 202nd meeting held on 27 January 2019 recommended a final cash
dividend amounting to BDT 20,929,650,341 being 155% of the paid-up capital (i.e. BDT 15.50 per share) for the year 2018.
Total cash dividend including this final cash dividend stands at 280% of the paid-up capital (i.e. BDT 28.00 per share)
for the year 2018. These dividends are subject to final approval by the shareholders at the forthcoming annual general
meeting of the company.
46.3 Accounting standards issued but not yet effective

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Grameenphone’s
financial statements are disclosed below. Grameenphone intends to adopt these, if applicable, when they become effective.
(a) IFRS 16 Leases

IFRS 16 replaces existing leases guidance, including IAS 17 Leases, IFRIC 4 Determining whether an arrangement contains a
Lease, SIC-15 Operating Leases – Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form
of a Lease. The standard is effective for annual periods beginning on or after 1 January 2019. Early adoption is permitted for
entities that apply IFRS 15 at or before the date of initial application of IFRS 16; however, Grameenphone has not yet early
adopted the new or amended standards in preparing these financial statements.
IFRS 16 introduces a single, on-balance sheet lease accounting model for lessees. A lessee recognises a right-of-use asset
representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments.
There are recognition exemptions for short-term leases and leases of low-value items. Lessor accounting remains similar
to the current standard – i.e. lessors continue to classify leases as finance or operating leases.
The most significant impact identified is that Grameenphone will recognise new assets and liabilities for its operating
leases of site sharing contract, BTS sites, GPC/office space, house rent etc.
In addition, the nature of expenses related to those leases will now change as IFRS 16 replaces the straight-line operating
lease expense with a depreciation charge for right-of-use assets and interest expense on lease liabilities. No impact is
there on Grameenphone’s existing finance leases; where these will be reclassified as right-of-use asset.
As a lessee, Grameenphone can either apply the standard using a retrospective approach or modified retrospective
approach with optional practical expedients. Grameenphone will apply the election consistently to all of its leases.
Grameenphone will apply IFRS 16 initially on 1 January 2019, using the modified retrospective approach. Therefore, the
cumulative effect of adopting IFRS 16 will be recognised as an adjustment to the opening balance of retained earnings or
right of use assets, as the case may be, at 1 January 2019, with no restatement of comparative information. When applying
149
the modified retrospective approach to leases previously classified as operating leases under IAS 17, Grameenphone may
elect, on a lease-by-lease basis, to apply a number of practical expedients on transition.
Grameenphone Ltd.
Annual Report 2018
Grameenphone is currently assessing the impact of initially applying the standard on the elements of financial statements.

USEFUL INFORMATION FOR

SHAREHOLDERS
1. General
Authorised Capital : BDT 40,000,000,000
Issued and Fully Paid-up Capital : BDT 13,503,000,220
Class of Shares : Ordinary Shares of BDT 10.00 each
Voting Rights : One vote per Ordinary Share
2. Stock Exchange Listing

The Ordinary Shares of the Company are listed on the Dhaka and Chittagong Stock Exchanges. Company trading code is [GP].
3. 3. Distribution Schedule of the Shares as on December 31, 2018
Range of Number of Total Number

Percentage
Shareholdings Shareholders of Shares
001 to 500 24,438 4,658,294 0.34%
501 to 5,000 5,680 9,108,800 0.67%
5,001 to 10,000 492 3,557,895 0.26%
10,001 to 20,000 252 3,591,203 0.27%
20,001 to 30,000 82 2,020,320 0.15%
30,001 to 40,000 40 1,392,897 0.10%
40,001 to 50,000 33 1,544,832 0.11%
50,001 to 100,000 82 6,194,611 0.46%
100,001 to 1,000,000 120 36,400,256 2.70%
1,000,001 to 1,000,000,000 21 1,281,830,914 94.93%
Total 31,240 1,350,300,022 100%
4. Dividend
Dividend Per Par Value Per

For the Year Dividend Rate Dividend Type
Share (BDT) Share (BDT)
155% (Proposed Final Dividend) 15.50 10.00 Cash
2018
125 % (Interim Dividend) 12.50 10.00 Cash
100% (Final Dividend) 10.00 10.00 Cash
2017
105% (Interim Dividend) 10.50 10.00 Cash
2016
2015
2014
150
Grameenphone Ltd.
Annual Report 2018
Useful Information for Shareholders

5. Credit Rating
The Company’s credit rating was reaffirmed by Credit Rating Agency of Bangladesh Ltd. (CRAB) on 23 April 2018 and is
valid up to 30 April 2019.
Long Term Short Term

AAA ST-1
6. Associate Company
Name of the Company Holding Activity
Accenture Communications Infrastructure Solutions Ltd. 49% IT Company
(Formerly known as Grameenphone IT Ltd.)
7. Grameenphone Share Performance at Stock Exchanges

I. Monthly high, low and close share price and volume of the Company’s Shares traded at Dhaka Stock Exchange (DSE)
and Chittagong Stock Exchange (CSE) during the year 2018:
DSE CSE
Month High Low Close Volume High Low Close Volume
(BDT) (BDT) (BDT) (No.) (BDT) (BDT) (BDT) (No.)
January 513.10 468.80 502.40 7464617 511.9 460.0 501.5 648,672
February 511.90 466.30 478.70 4231505 512.8 460.0 479.2 2,093,710
March 492.00 460.30 462.00 2984159 491.5 460.1 461.9 1,702,719
April 498.00 464.90 469.60 4616145 496.0 468.1 471.7 926,737
May 470.00 412.70 414.80 4250431 471.0 415.0 416.4 213,275
June 415.20 373.30 388.90 7343440 420.0 374.0 387.5 1,082,327
July 405.70 374.30 390.20 4888778 404.6 375.3 390.7 390,394
August 393.90 350.60 386.60 3043678 395.0 350.0 386.3 133,025
September 390.80 353.10 370.40 3105543 390.0 355.0 368.2 1,685,732
October 387.00 357.80 379.80 4136396 382.9 360.4 379.7 76,695
November 390.00 352.30 362.70 2529956 380.1 357.6 362.8 71,359
December 382.00 353.80 367.30 1939240 366.3 356.3 366.3 45,015
Total shares traded during the year 50,533,888 9,069,660
II. Quarterly high-low price history of the Company’s share traded at Dhaka Stock Exchange (DSE) and Chittagong Stock
Exchange (CSE) during the year 2018 and 2017:
DSE CSE
2018 2017 2018 2017
Period
High Low High Low High Low High Low
(BDT) (BDT) (BDT) (BDT) (BDT) (BDT) (BDT) (BDT)
Quarter 1 513.10 460.30 334.5 281.5 512.8 460.0 333.9 282.0
Quarter 2 498.00 373.30 352.9 325.2 496.0 374.0 351.0 325.0
Quarter 3 405.70 350.60 435.0 335.0 404.6 350.0 444.0 345.0
Quarter 4 390.00 352.30 506.9 408.0 382.9 356.3 506.0 408.0
III. Grameenphone Share Price Trend Year wise traded at Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange
during the year 2018 and 2017
DSE CSE
2018 2017 2018 2017
151
Highest Price (BDT) 513.10 506.9 512.8 506.0

Lowest Price (BDT) 350.60 281.5 350.0 282.0
Grameenphone Ltd.
Annual Report 2018

IV. Grameenphone Share Performance in DSE: 2014 – 2018
Stand alone performance 2014-2018
500 2014 2015 2016 2017 2018

3.0
400 2.5
Shares Traded
GP Price
300 2.0
1.5
200
1.0
100
0.5
0 0.0
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
No of Shares Traded (Mn) Closing Price (BDT) Average Price (BDT)

120 10%
110 Relative performance 2018

8%
% of DSE Turnover
Rebased Scale
100
6%
90
80 4%
70
2%
60
50 0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
GP Turnover as % of DSE GP(Adjusted & Rebased) DSEX (Rebased) DS30 (Rebased)

Adjusted Price: Average of High, Low & Closing Price; Rebase: Adjustment to 100
8. Financial Calendar 2019
FY 2018 Results 1Q 2019 Results 3Q 2019 Results

Announcement Announcement Announcement
Jan Apr Apr Jul Oct

2019 2019 2019 2019 2019
22nd Annual 1H 2019 Results

General Meeting Announcements
* Subject to change, please check www.grameenphone.com/about/investor-relations for latest updates
9. Company Website
Anyone can get information regarding Company’s activities, products & services or can view Annual Report 2018 at
www.grameenphone.com
10. Investor Relations

Institutional investors, security analysts and other members of the professional financial community requiring additional
financial information can visit the Investor Relations section of the Company website: www.grameenphone.com
152
11. Shareholder Services

If you have any queries relating to your shareholding and dividend, please contact at +88 01711555888 or mail to
Grameenphone Ltd.
Annual Report 2018
Grameenphone Share Office at [email protected]

GLIMPSE OF 22ND
ANNUAL GENERAL
MEETING
Additional
Information
Grameenphone Ltd.
Registered Office: GPHouse, Bashundhara, Baridhara, Dhaka-1229
Share Office: Cemex Shimul Trishna Trade Center (3rd Floor), Ka-86/1, Progoti Shoroni, Kuril Bishwaroad, Dhaka-1229
Notice of the 22nd Annual General Meeting

Notice is hereby given that the 22nd Annual General Meeting of Grameenphone Ltd. will be held on Tuesday, 23 April 2019 at
10:30 am at International Convention City, Bashundhara (ICCB), Hall-1 (Gulnaksha), Joar Sahara, Khilkhet, Dhaka-1229 to
transact the following businesses:
AGENDA
1. Consideration and adoption of the Directors’ Report and the Audited Financial Statements of the Company for the year
ended 31 December 2018 together with the Auditors’ Report thereon.
2. Declaration of Dividend for the year ended 31 December 2018 as recommended by the Board of Directors.
3. Election/Re-election of Directors.
4. Appointment of Statutory Auditors and Corporate Governance Compliance Auditor and fixation of their remuneration.
By order of the Board of Directors

Sd/-
S M Imdadul Haque
Company Secretary
27 March 2019
Notes:
l Members whose names appeared on the Members/Depository Register as on “Record Date” i.e. 17 February 2019 are
eligible to attend the 22nd Annual General Meeting (AGM) and receive dividend.
l A Member entitled to attend and vote at the AGM may appoint a Proxy to attend and vote in his/her stead.
l The “Proxy Form”, duly filled and stamped at BDT 20 must be deposited at the Company’s Share Office located at
Cemex Shimul Trishna Trade Center (3rd Floor), Ka-86/1, Progoti Shoroni, Kuril Bishwaroad, Dhaka-1229 no later than 72 hours
before commencement of the AGM.
l Members/Proxies are requested to record their entry in the AGM well in time on 23 April 2019. The registration counter will
open at 9:30 am on the AGM date.
l Pursuant to the Bangladesh Securities and Exchange Commission (BSEC) Notification No. BSEC/CMRRCD/2006-158/208/
Admin/81 dated 20 June 2018, the Company plans to send the Annual Report 2019 in soft form to the email addresses
of the Members available in their Beneficial 0wner (BO) accounts maintained with the Depository. Members are
requested to update their email addresses through their respective Depository Participant (DP). However, printed copy
of the Annual Report 2018 of the Company will be sent to the Members to their mailing addresses available in their BO
accounts maintained with the Depository. The soft copy of the Annual Report 2018 will also be available in the Company
website at: www.grameenphone.com
l In case of non-receipt of Annual Report 2018 of the Company sent through courier, Members may collect the same from
the Company’s Share Office within 22 April 2019.
l Members are requested to submit to the Company’s Share Office on or before 04 April 2019, their written option to
receive dividend. In case of non-submission of such option within the stipulated time, the dividend will be paid off as deemed
appropriate by the Company.
l Grameenphone is concerned about the environment and utilises natural resources in a sustainable way. We request the
members to update their email address and contact number (mobile/fixed phone) with their respective Depository
Participant (DP) for quicker and easier communication. Such cooperation will help conserve paper and minimise the
impact on the environment.
154
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Grameenphone Ltd.
Annual Report 2018
Notice of the 22nd Annual General Meeting

Grameenphone Ltd.
Proxy Form
I/We................................................………………………………………………………………………of………………………………………………………………………...………...........…………
………………….....................................................................................................……………… being Member of Grameenphone Ltd. do hereby appoint
Mr./Ms. ……………………………………...…………....................…………………………………… of ……………………………………....……………....................………………………………
as my/our PROXY to attend and vote on my/our behalf at the 22nd Annual General Meeting of the Company to be held on
Tuesday, 23 April 2019 at 10:30 am at International Convention City, Bashundhara (ICCB), Hall-1 (Gulnaksha), Joar Sahara,
Khilkhet, Dhaka-1229 and at any adjournment thereof.
Signed this ...................................................... day of ...................................................... 2019
………………………………………………….. …………………………………………..
Signature of the Member(s) Signature of the PROXY
Number of Shares held ................................. Revenue

Stamp
BO ID No. BDT 20
Notes:
• The Proxy Form, duly filled and stamped, must be deposited at the Company’s Share Office located at Cemex Shimul Trishna
Trade Center (3rd Floor), Ka-86/1, Progoti Shoroni, Kuril Bishwaroad, Dhaka-1229 no later than 72 hours before
commencement of the AGM.
• Signature of the Member(s) must be in accordance with the Specimen Signature recorded with the Company.
Signature Verified by
………………………………......………………………………
Authorised Signatory of the Company
Grameenphone Ltd.
Attendance Slip
I/We do hereby record my/our attendance at 22nd Annual General Meeting of the Company to be held on Tuesday day, 23 April
2019 at 10:30 am at International Convention City, Bashundhara (ICCB), Hall-1 (Gulnaksha), Joar Sahara, Khilkhet, Dhaka-1229.
Name of the Member/Proxy

(in Block Letter)
BO ID No.
Signature Verified by
………………………………………………….…….. ………………………………......………………………………
Signature of the Member/Proxy Authorised Signatory of the Company
Note: Please present this Attendance Slip at the registration counter on the AGM date.
DISCLAIMER
This report contains statements regarding the
future in connection with Grameenphone’s growth
initiatives, profit levels, outlook strategies and
objectives. All statements regarding the future
are subject to inherent risks and uncertainties,
and many factor may lead to actual profits and
developments deviating substantially from what
has been expressed or implied in such statements.
Keep up to date with us
Follow us on Facebook
facebook.com/Grameenphone
Follow us on Twitter
twitter.com/grameenphone
Visit our Linkedin Company profile

linkedin.com/company/grameenphone-ltd
Visit our YouTube channel

youtube.com/user/grameenphone
www.grameenphone.com
Here you will find downloadable PDFs of:
• Annual Report 2018
• Proxy Form
• Notice of 22nd AGM
Grameenphone Ltd.
GPHouse
Bashundhara, Baridhara, Dhaka-1229, Bangladesh
Tel: +880-2-9882990, +88 01799882990
Fax: +880-2-9882970
Website: www.grameenphone.com
Grameenphone wants to contribute to meet climate challenges and aims to reduce the consumption of
resources and overall impact on the environment. In an effort to minimize paper consumption, we limit the
scope of the printed annual report within regulatory requirement. Grameenphone’s website provides
extensive information about the Company and its current activities: www.grameenphone.com

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EXPLORE

At Grameenphone, we help overcome

01 Overview 02 Business Performance

22 ND ANNUAL GENERAL MEETING View Our Annual Report 2018

CREATE VALUE Grameenphone believes that connected societies

+129% Excellence award 2017

How We Create Value

For Our Employees

Child online safety Sensitised over

directly educated more than 73,000

BDT 14m+ books downloaded while over 1.35m

non-financial support people visited alorpathshala.org

How We Create Value

annually renew their signature on our Code of Conduct.

OUR The Code of Conduct is the foundation of our corporate culture

ETHICAL and sets out high standards of integrity on how we do business.

CONDUCT integrity. It helps us to make informed decisions and explains

We are transparent and honest E-learning training module

helping us grow responsibly. purpose to connect our customers to what matters

• Launched djuice brand

Catering to a massive • Introduced Pay For Me service

•Reached the 70 million subscribers milestones solution

BUSINESS SOLUTIONS & IOT ROAMING

● Monthly Minute Pack ● Tonic ● Facebook Freebasic

Products & Services

RECOGNITIONS the prestigious occasion is yet another

2018 better in the future.

BEST PRESENTED ANNUAL REPORT/

SAFA (South Asian Federation

ICSB (Institute of Chartered Secretaries

Best Brand Award Digital Marketing Award Superbrands Award

Our Recognitions 2018

Highest Tax payer CSR Leadership Awards Customer Award

Our Recognitions 2018

Board of Directors Health, Safety, Security &

Karl Erik Broten

132.8 57.4 55.6

18 132.8 18 57.4 18 55.6

(billion BDT) 28.2% (BDT) 28.2% (BDT) 20.6%

35.2 26.04 31.38

18 35.2 18 26.04 18 31.38

(BDT) 4.6% 21.0%

Number of 69.2Mn 3.5Mn Smartphone 34.2% 24.8Mn

Mobile Data 51.0%

Data users to total subscribers

data usage during last 3 months.

Our Performance 2018

l Challenging business environment due to

We provided cross channel promotion of Bioscope

Quarterly Business Highlights 2018

July August September October November December

l This was a challenging quarter in terms of competition

l This quarter we witnessed the highest ever data revenue

Quarterly Business Highlights 2018

Chief Executive Officer Chair

Message from the Chair and the CEO

Message from the Chair and the CEO

SUSTAINABILITY AND PARTNERSHIP TO

In 2018, our partnership with UNICEF, the globally

2018 culminated with a panel discussion on Child Online Safety with

Supply Chain Sustainability

Sustainability and Partnership to Reduce Inequalities

Supporting the Book Reading Program

Support for Distressed People

Bangladesh CSR Leadership Awards 2018

Sustainability and Partnership to Reduce Inequalities

Grameenphone being a responsible corporate entity,

its performance against targets associated with its

17 12,994 12,332  Networks  Office Building  Others

Climate Change - Moving Towards Green

Battery Reuse & Recycling

Climate Change - Moving Towards Green

Telenor Youth Forum

Next Business Leaders (NBL) program

Human Resources Management

Learning and Development