Information Document - Dhaka Stock Exchange

3.11 Borrowing costBorrowing costs are recognised as expenses in the period in which they are incurred unlesscapitalisation of such is allowed as an alternative under Bangladesh Accounting Standard23 Borrowing Costs .3.12 Provision for taxNo provision for tax has been made in the accounts as the company is entitled to taxexemption for a period of 15 years with effect from commencement of commercialproduction, vide SRO no. 114-Law/99 dated 26 May 1999 issued by Government ofBangladesh, under private sector power generation policy.3.13 Deferred taxAs there is considerable uncertainty with regard to the taxation of such companies afterthe expiry of the tax exemption period, management feels it is not possible to make areasonable estimate of deferred tax assets/liabilities at this stage.3.14 Employee benefit schemesA defined benefit plan is a post-employment benefit plan other than a definedcontribution plan. The company operates an unfunded gratuity scheme, which is a definedbenefit scheme, a provision in respect of which is made periodically covering allpermanent employees by applying period of employment to latest basic salary. Althoughno valuation was done to quantify actuarial liabilities as per Bangladesh AccountingStandard 19 Employee Benefits for the year ended 31 December 2009, such valuation foronly 9 employees is not likely to yield a result significantly different from the currentprovision.The company maintains a provident fund for all local employees, recognised by theNational Board of Revenue, Bangladesh. This is a defined contribution scheme as perBangladesh Accounting Standard 19 Employee Benefits.The company has also a policy of earned leave encashment. Under this policy, anemployee is allowed twenty one days earned leave for each completed twelve months ofcontinuous service with a maximum accumulation of one hundred and five days.