Un-audited interim condensed financial statements

as at and for the six month period ended 30 June 2024

British American Tobacco Bangladesh Company Limited
Statement of financial position 30 June 31 December
In thousands of BDT Notes 2024 2023

Assets

Non-current assets
Property, plant and equipment 4 36,861,573 36,860,089
Right of use (ROU) assets 5.1 3,414,720 3,251,843
Total non-current assets 40,276,293 40,111,932
Current assets
Inventories 6 67,193,321 31,810,969
Trade and other receivables 7 5,159,319 11,904,577
Advances, deposits and prepayments 8 4,514,398 7,660,044
Investment asset 9 - 2,937,131
Cash and cash equivalents 10 2,742,636 9,440,371
Total current assets 79,609,674 63,753,092
Total assets 119,885,967 103,865,024

Equity and liabilities

Equity
Share capital 11 5,400,000 5,400,000
Capital reserve 12 64,896 64,896
Retained earnings 52,026,905 48,172,592
Total equity attributable to owners of the Company 57,491,801 53,637,488

Non-current liabilities
Net defined benefit plans 162,445 150,302
Deferred tax 13 6,440,828 6,314,612
Lease liabilities 5.2 3,514,247 3,351,011
Total non-current liabilities 10,117,520 9,815,925

Current liabilities
Bank Overdraft 1,435,819 -
Borrowings under supplier financing arrangement 15,870,735 3,737,605
Trade and other payables 14 20,516,030 18,470,667
Unclaimed Dividend 93,152 2,820,957
Lease liabilities 5.2 540,936 451,061
Current tax liabilities 15 13,704,301 13,257,905
Provisions 115,673 1,673,416
Total current liabilities 52,276,646 40,411,611
Total liabilities 62,394,166 50,227,536
Total equity and liabilities 119,885,967 103,865,024

The notes on pages 5 to 19 are an integral part of these financial statements.

Wael Sabra Monisha Abraham

Chairman Managing Director

Syed Afzal Hossain

Company Secretary

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 01
British American Tobacco Bangladesh Company Limited
Statement of profit or loss and other comprehensive income
For the six-month period and quarter ended 30 June 2024
1 January 2024 to 1 January 2023 to 1 April 2024 to 1 April 2023 to
In thousands of BDT Notes 30 June 2024 30 June 2023 30 June 2024 30 June 2023

Gross revenue 223,397,656 212,295,348 129,322,953 113,299,149

Supplementary duty and VAT (174,540,381) (163,092,082) (100,411,464) (86,779,939)
Net revenue from contracts with customers 16 48,857,275 49,203,266 28,911,489 26,519,210

Cost of sales (25,218,025) (24,240,060) (15,060,296) (13,151,074)

Gross profit 23,639,250 24,963,206 13,851,193 13,368,135

Operating expenses (3,839,951) (4,824,570) (2,653,267) (2,762,649)

Operating profit 19,799,299 20,138,636 11,197,926 10,605,486

Net finance income/(expenses) 17 (446,533) (222,315) (411,713) (151,772)

Non-operating income/(expenses) 50,226 14,597 11,000 7,937
Profit before contribution to WPPF 19,402,992 19,930,918 10,797,213 10,461,652

Contribution to WPPF (970,150) (996,546) (539,861) (523,083)

Profit before tax 18,432,842 18,934,372 10,257,352 9,938,569

Current tax 18 (9,052,583) (9,464,303) (4,869,600) (5,019,727)

Deferred tax 18 (126,088) 27,560 (266,533) 16,258
Income tax expense (9,178,671) (9,436,743) (5,136,133) (5,003,468)
Profit for the period 9,254,171 9,497,629 5,121,219 4,935,100

Other comprehensive income

Other comprehensive income that will not be reclassified to

profit or loss in subsequent periods (net of tax):
Remeasurement gain/(loss) on defined benefit plans 19 271 (4,763) 271 (4,762)
Deferred tax impact on defined benefit plans 19 (129) 2,262 (129) 2,262
Other comprehensive loss for the year, net of tax 142 (2,500) 142 (2,500)
Total comprehensive income for the year, net of tax 9,254,313 9,495,129 5,121,361 4,932,601

In BDT
Earnings per share 20 17.14 17.59 9.48 9.14

The notes on pages 5 to 19 are an integral part of these financial statements.

Wael Sabra Monisha Abraham

Chairman Managing Director

Syed Afzal Hossain

Company Secretary

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 02
British American Tobacco Bangladesh Company Limited
Statement of changes in equity
For the six-month period ended 30 June 2024

Attributable to owners of the Company

Share Capital Retained Total
In thousands of BDT capital reserve earnings equity

Balance at 1 January 2023 5,400,000 64,896 35,718,708 41,183,604

Profit for the period - - 9,497,629 9,497,629

Other comprehensive income for the year - - (2,500) (2,500)
Total comprehensive income for the period - - 9,495,129 9,495,129

Transactions with owners of the Company

Contributions and distributions
Final cash dividend 2022 - - (5,400,000) (5,400,000)
Total transactions with owners of the Company - - (5,400,000) (5,400,000)
Balance at 30 June 2023 5,400,000 64,896 39,813,837 45,278,733

Balance at 1 January 2024 5,400,000 64,896 48,172,592 53,637,488

Profit for the period - - 9,254,171 9,254,171

Other comprehensive income for the year - - 142 142
Total comprehensive income for the period - - 9,254,313 9,254,313

Transactions with owners of the Company

Contributions and distributions
Final Cash Dividend 2023 - - (5,400,000) (5,400,000)
Total transactions with owners of the Company - - (5,400,000) (5,400,000)

Balance at 30 June 2024 5,400,000 64,896 52,026,905 57,491,801

The notes on pages 5 to 19 are an integral part of these financial statements.

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 03
British American Tobacco Bangladesh Company Limited
Statement of cash flows
For the six-month period ended 30 June
In thousands of BDT 2024 2023

Operating activities
Collection from distributors, leaf export and others 233,058,745 202,960,141
Payment for costs and expenses (40,940,496) (34,705,611)
Supplementary duty and VAT paid (194,539,980) (161,300,937)
Cash generated from operating activities (2,421,731) 6,953,593

Income tax paid (8,606,187) (7,544,915)

Interest received/(paid) (242,555) (73,928)
Net cash flows from operating activities (11,270,473) (665,250)

Investing activities
Purchase of property, plant and equipment (1,518,415) (1,433,342)
Proceeds from sale of property, plant and equipment 32,140 79
Net cash flows used in investing activities (1,486,275) (1,433,263)

Financing activities
Bank overdraft 1,435,819 1,612,356
Borrowings under supplier financing arrangement 12,133,131 -
Lease movement 577,775 (37,228)
Dividend paid (8,127,806) (2,853,475)
Net cash flows from/(used in) financing activities 6,018,919 (1,278,347)

Net increase/(decrease) in cash and cash equivalents (6,737,829) (3,376,860)

Cash and cash equivalents at 1 January 9,440,371 4,912,340

Effect of exchange rate fluctuations on cash held 40,094 74,578
Cash and cash equivalents at 30 June 2,742,636 1,610,058

The notes on pages 5 to 19 are an integral part of these financial statements.

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 04
British American Tobacco Bangladesh Company Limited
Notes to the financial statements

1 Corporate information

1.1 Company profile

British American Tobacco Bangladesh Company Limited (the "Company" or "BATB") is a public limited
company incorporated in Bangladesh and its shares are quoted on the Dhaka and Chittagong Stock
Exchanges. The address of the Company's registered office is New D.O.H.S. Road, Mohakhali, Dhaka-1206,
Bangladesh.

The immediate parent company of BATB is Raleigh Investment Co. Ltd., UK and the ultimate parent company
of BATB is B.A.T plc, UK.

1.2 Nature of business

The Company manufactures tobacco products and market brands including Benson & Hedges, John Player
Gold Leaf, Capstan, Star, Royals, Lucky Strike, Derby, Pilot and Hollywood. The Company has its head office
in Dhaka and the cigarette factories in Dhaka and Savar, a green leaf threshing plant in Kushtia, a green leaf
redrying plant in Manikganj and a number of leaf and sales offices throughout the country.

2 Basis of preparation

2.1 Statement of compliance

The financial statements have been prepared in accordance with the International Financial Reporting
Standards (IFRS), the Companies Act 1994, the Securities and Exchange Rules 2020 and other applicable
laws and regulations in Bangladesh. Cash flows from operating activities are prepared under direct method as
prescribed by the Securities and Exchange Rules 2020.

The financial statements have been prepared on a historical cost basis, except for financial assets and
contingent considerations that have been measured at fair value where applicable. The financial statements
provide comparative information in respect of the previous period and have been prepared on a going concern
basis.

The condensed interim financial statements should be read in conjunction with the British American
Tobacco Company Bangladesh Limited's annual statutory financial statements as at 31 December 2023.

2.2 Date of authorisation

The financial statements were authorised for issue by the Board of Directors on 22 Aug 2024 for publication.

3 Functional and presentation currency

These financial statements are presented in Bangladesh Taka (BDT), which is both functional and
presentational currency of the Company. The amounts in these financial statements have been rounded off to
the nearest thousand BDT (000) unless otherwise indicated. Because of such rounding off, in some instances
the total may not match the sum of individual balances.

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 05
Notes to the financial statements (continued)

4 Property, plant and equipment

Assets under
Freehold Freehold Furniture and Laboratory Leasehold Office Plant and construction
In thousands of BDT building land fixtures IT equipment equipment building equipment machinery Vehicles (AUC) Total

Cost

Balance as at 1 January 2023 5,577,484 1,526,496 560,215 539,588 487,518 1,174,327 1,320,156 32,359,995 1,498,233 6,421,193 51,465,205
Additions 286,815 81,160 113,946 113,844 25,296 5,229 169,242 555,485 133,029 3,091,119 4,575,165
Disposals/transfers - - (1,112) (549) - (8,715) (6,348) - - (1,221,449) (1,238,173)
Balance as at 31 December 2023 5,864,299 1,607,656 673,049 652,883 512,814 1,170,841 1,483,050 32,915,480 1,631,262 8,290,863 54,802,197

Balance as at 1 January 2024 5,864,299 1,607,656 673,049 652,883 512,814 1,170,841 1,483,050 32,915,480 1,631,262 8,290,863 54,802,197
Additions 1,003,884 233,746 187,087 107,705 34,616 - 147,042 4,872,853 - 582,658 7,169,591
Disposals/transfers - - - (76,311) - - - - (77,329) (5,896,993) (6,050,633)
Balance as at 30 June 2024 6,868,183 1,841,402 860,136 684,277 547,430 1,170,841 1,630,092 37,788,333 1,553,933 2,976,528 55,921,155

Accumulated depreciation
Balance as at 1 January 2023 526,341 - 351,885 359,362 262,599 334,646 946,970 12,011,958 883,442 - 15,677,203
Depreciation for the year 125,150 - 60,664 103,857 38,031 58,867 152,469 1,525,357 212,465 - 2,276,860
Disposals/transfers - - (1,112) (549) - (4,996) (5,298) - - - (11,955)
Balance as at 31 December 2023 651,491 - 411,437 462,670 300,630 388,517 1,094,141 13,537,315 1,095,907 - 17,942,108

Balance as at 1 January 2024 651,491 - 411,437 462,670 300,630 388,517 1,094,141 13,537,315 1,095,907 - 17,942,108
Depreciation for the year 69,696 - 38,998 59,267 19,297 29,119 79,834 888,285 85,908 1,270,404
Disposals/transfers - - - (76,311) - - - - (76,619) (152,930)
Balance as at 30 June 2024 721,187 - 450,435 445,626 319,927 417,636 1,173,975 14,425,600 1,105,196 - 19,059,582
721,187 - 450,435 445,626 319,927 417,636 1,173,974 14,425,600 1,105,196 - 19,059,582
Net book value 0.00 - (0.00) (0.05) (0.22) (0.03) (0.10) (0.12) 0.01 - (0.51)

As at 31 December 2023 5,212,808 1,607,656 261,612 190,213 212,184 782,324 388,909 19,378,165 535,355 8,290,863 36,860,089
As at 30 June 2024 6,146,996 1,841,402 409,701 238,651 227,503 753,205 456,117 23,362,733 448,737 2,976,528 36,861,573

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 06
Notes to the financial statements (continued)

5 Schedule of leases

The Company has leases for warehouse, forklift, office, equipments and rented apartment which have been capitalised and
accounted for in accordance with IFRS 16: Leases . Information related to right-of-use asset and lease liability are depicted
below:

5.1 ROU assets

Rented
In thousands of BDT apartment Forklift Office Warehouse Equipments Total

Cost

Balance as at 1 January 2023 77,860 356,996 193,170 3,587,901 - 4,215,927

Additions/modifications 37,406 23,032 23,391 968,194 75,936 1,127,959
Disposals (68,534) - (3,918) (82,753) - (155,205)
Balance as at 31 December 2023 46,732 380,028 212,643 4,473,342 75,936 5,188,681

Balance as at 1 January 2024 46,732 380,028 212,643 4,473,342 75,936 5,188,681

Additions/modifications 43,702 1,502 156,112 327,327 - 528,643
Disposals - (56,630) (8,688) (347,096) - (412,414)
Balance as at 30 June 2024 90,434 324,900 360,067 4,453,573 75,936 5,304,910

Accumulated depreciation
Balance as at 1 January 2023 57,017 82,705 71,555 1,213,883 - 1,425,160
Depreciation for the year 24,431 59,944 25,998 550,409 6,101 666,883
Disposals/modifications (68,534) - (3,918) (82,753) - (155,205)
Balance as at 31 December 2023 12,914 142,649 93,635 1,681,539 6,101 1,936,838

Balance as at 1 January 2024 12,914 142,649 93,635 1,681,539 6,101 1,936,838

Depreciation for the year 14,013 29,570 20,094 295,360 6,727 365,764
Disposals/modifications - (56,630) (8,688) (347,094) - (412,412)
Balance as at 30 June 2024 26,927 115,589 105,041 1,629,805 12,828 1,890,190

Net book value

As at 31 December 2023 33,818 237,379 119,008 2,791,803 69,835 3,251,843

As at 30 June 2024 63,507 209,311 255,026 2,823,768 63,108 3,414,720

5.2 Lease liabilities

30 June 31 December
In thousands of BDT 2024 2023

Non-current
Lease liabilities 4,766,049 4,645,187
Interest liabilities (1,251,802) (1,294,176)
3,514,247 3,351,011

Current
Lease liabilities 921,594 809,808
Interest liabilities (380,658) (358,747)
540,936 451,061

Total lease liabilities 4,055,183 3,802,072

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 07
Notes to the financial statements (continued)

6 Inventories
30 June 31 December
In thousands of BDT Note 2024 2023

Inventories in hand 6.1 65,942,649 30,811,558

Inventories in transit 6.2 1,250,672 999,411
67,193,321 31,810,969

6.1 Inventories in hand

30 June 31 December
In thousands of BDT 2024 2023

Leaf 25,987,252 12,130,853

Wrapping materials 2,369,570 3,127,406
Work in process 130,276 169,319
Finished goods 35,964,277 13,939,372
Cost of finished goods 4,121,323 3,831,189
VAT, Supplementary Duty and HDS* on finished goods 31,842,954 10,108,183
Consumable stores 1,491,274 1,444,608
65,942,649 30,811,558

*Health development surcharge

6.2 Inventories in transit

30 June 31 December
In thousands of BDT 2024 2023

Leaf 130,471 46,666

Wrapping materials 860,371 800,472
Consumable stores 259,830 152,273
1,250,672 999,411

7 Trade and other receivables

30 June 31 December
In thousands of BDT 2024 2023

Trade receivables 4,571,562 11,384,901

Expected credit loss (4,572) (11,440)
Net trade receivables 4,566,990 11,373,461
Intercompany receivables 393,806 249,896
Sundry receivables 198,523 281,220
5,159,319 11,904,577

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 08
8 Advances, deposits and prepayments
30 June 31 December
In thousands of BDT Note 2024 2023

Advances
Advance to suppliers 3,444,155 4,798,948
Supplementary duty and VAT 946,730 2,681,902
Advance to employees 46,603 33,221
4,437,488 7,514,071

Security deposit - -
- -

Prepayments
Insurance 76,910 145,973
76,910 145,973
4,514,398 7,660,044

9 Investment asset
30 June 31 December
In thousands of BDT 2024 2023

91-Day Treasury Bill - 2,937,131

- 2,937,131

10 Cash and cash equivalents

30 June 31 December
In thousands of BDT 2024 2023

Cash in hand 6 6
6 6

Cash at bank
Dividend account 10.1 92,528 70,359
Foreign currency accounts 242,325 536,077
Current accounts 2,307,476 2,195,062
Fixed deposit receipt (FDR) - Local - 300,000
Short term deposit (STD) 100,301 6,338,867
2,742,630 9,440,365
2,742,636 9,440,371

All the above balances are held with scheduled and nationalised banks. Interest bearing accounts under
cash at bank earns interest at floating rates based on daily bank deposit rates.

10.1 Restricted cash balance

Dividend account is used only to pay dividends to the shareholders. The balance of this account moves with
dividend transactions only.

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 09
10.2 Banking facility arrangements

Short term running funded facilities available with the banks amount to BDT 17,016 million. Facilities are
renewable on annual basis.

10.3 Reconciliation of net operating cash flow

For the period ended 30 June
In thousands of BDT 2024 2023

Profit after tax 9,254,171 9,497,629

Adjustment for:
Depreciation and impairment 1,636,167 1,428,664
(Gain)/loss of sale of assets (31,430) 4,691
Other adjustments 9,585,111 9,584,477
20,444,019 20,515,463

Changes in:
(Increase)/decrease in inventories (35,382,352) (9,238,159)
(Increase)/decrease in trade receivables and others 9,682,388 (9,277,869)
(Increase)/decrease in advances, deposits and prepayments 2,334,452 4,777,245
Increase/(decrease) in trade payables and others 2,045,363 1,665,121
Increase/(decrease) in net defined benefit plans 12,142 40,216
Increase/(decrease) in provisions (1,557,742) (1,528,424)
Income tax and interest payments (8,848,742) (7,618,843)
Net cash generated from operating activities (11,270,473) (665,250)

11 Share capital
30 June 31 December
In thousands of BDT 2024 2023

Authorised:
60,000,000 ordinary shares of BDT 10 each 600,000,000 600,000,000
480,000,000 ordinary shares of BDT 10 each 4,800,000,000 4,800,000,000
5,400,000,000 5,400,000,000

Issued, subscribed and fully paid up:

Issued for cash:
3 ordinary shares of BDT 10 each 30 30

Issued for consideration other than cash:

59,999,997 ordinary shares of BDT 10 each 599,999,970 599,999,970
120,000,000 bonus shares of BDT 10 each 1,200,000,000 1,200,000,000
360,000,000 bonus shares of BDT 10 each 3,600,000,000 3,600,000,000
5,400,000,000 5,400,000,000

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 10
Notes to the financial statements (continued)

11.1 Shareholding position

30 June 2024 31 December 2023

Name of shareholder No. of shares Value (BDT) Percentage No. of shares Value (BDT) Percentage

Raleigh Investment Co. Ltd., UK 393,708,222 3,937,082,220 72.91% 393,708,222 3,937,082,220 72.91%
Investment Corporation of Bangladesh 30,360,253 303,602,530 5.62% 30,552,217 305,522,170 5.66%
Sadharan Bima Corporation 15,285,423 152,854,230 2.83% 15,285,423 152,854,230 2.83%
Bangladesh Development Bank Limited 1,808,863 18,088,630 0.33% 1,807,863 18,078,630 0.33%
Government of Bangladesh 3,481,416 34,814,160 0.64% 3,481,416 34,814,160 0.64%
Others 95,355,823 953,558,230 17.67% 95,164,859 951,648,590 17.63%
540,000,000 5,400,000,000 100% 540,000,000 5,400,000,000 100%

11.2 Share distribution schedule

A distribution schedule of the shares at the reporting date is given below following the requirement of listing regulations:

30 June 2024 31 December 2023

Number of Total number Percentage Number of Total number Percentage
Shareholder's range shareholders of shares of holding shareholders of shares of holding
Less than 501 shares 62,329 6,446,834 1.19% 73,988 6,983,195 1.29%
501 to 5,000 shares 11,216 16,811,866 3.11% 10,671 15,895,851 2.94%
5,001 to 10,000 shares 838 5,976,215 1.11% 745 5,338,328 0.99%
10,001 to 20,000 shares 371 5,237,892 0.97% 339 4,781,630 0.89%
20,001 to 30,000 shares 128 3,130,324 0.58% 106 2,591,621 0.48%
30,001 to 40,000 shares 49 1,706,234 0.32% 46 1,575,921 0.29%
40,001 to 50,000 shares 40 1,818,792 0.34% 49 2,218,939 0.41%
50,001 to 100,000 shares 91 6,472,492 1.20% 86 6,031,269 1.12%
100,001 to 1,000,000 shares 93 23,413,742 4.34% 86 22,548,967 4.18%
Over 1,000,000 shares 18 468,985,609 86.84% 14 472,034,279 87.41%
75,173 540,000,000 100% 86,130 540,000,000 100%

12 Capital reserve

Capital reserve represents non-remittable reserve of BDT 64.9 million which is 90% of the cumulative post tax profit on disposal of property, plant and equipment
as historically defined and directed by Bangladesh Bank. The requirement to create such special reserve on profit from sale of property, plant and equipment has
been withdrawn since 1993.

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 11
Notes to the financial statements (continued)

13 Deferred tax

13.1 Deferred tax asset

Taxable/
Carrying (deductible)
amount at temporary
In thousands of BDT reporting date Tax base difference

30 June 2024
Provision for inventories (103,807) - (103,807)
Provision for gratuity (162,445) - (162,445)
Net temporary difference (266,252) - (266,252)

Applicable tax rate 47.5%

Deferred tax asset (126,470)

Taxable/
Carrying (deductible)
amount at temporary
In thousands of BDT reporting date Tax base difference

31 December 2023
Provision for inventories (91,444) - (91,444)
Provision for gratuity (150,303) - (150,303)
Net temporary difference (241,747) - (241,747)

Applicable tax rate 47.5%

Deferred tax Asset (114,830)

13.2 Deferred tax liabilities

Taxable/
Carrying (deductible)
amount at temporary
In thousands of BDT reporting date Tax base difference

30 June 2024
Property, plant and equipment excluding land. 31,807,998 17,341,646 14,466,352
Net, right of use assets (640,463) - (640,463)
Net temporary difference 31,167,535 17,341,646 13,825,889

Applicable tax rate 47.5%

Deferred tax liabilities 6,567,298

Taxable/
Carrying (deductible)
amount at temporary
In thousands of BDT reporting date Tax base difference

31 December 2023
Property, plant and equipment excluding land. 26,684,601 12,598,705 14,085,896
Net, right of use assets (550,230) - (550,230)
Net temporary difference 26,134,371 12,598,705 13,535,666

Applicable tax rate 47.5%

Deferred tax liabilities 6,429,441

13.3 Deferred tax liabilities, net

30 June 31 December
In thousands of BDT 2024 2023

Deferred tax asset (126,470) (114,830)

Deferred tax liabilities / (asset) (ROU Assets) (304,220) (261,359)
Deferred tax liabilities (other than ROU assets) 6,871,518 6,690,801
Net deferred tax liabilities 6,440,828 6,314,612

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 12
14 Trade and other payables
30 June 31 December
In thousands of BDT 2024 2023

Trade payables 7,244,882 7,287,006

Intercompany payables 10,011,706 9,465,667
Workers' Profit Participation Fund (WPPF) 1,023,453 54,290
Wages and other benefits 628,860 751,999
Accrued expenses 433,108 489,824
Sundry payables 1,174,021 421,881
20,516,030 18,470,667

15 Current tax liabilities

30 June 31 December
In thousands of BDT 2024 2023

Opening Balance 13,257,905 10,391,270

Provision made during the year 9,052,583 17,754,032
22,310,488 28,145,302
Advance payment of corporate tax (8,606,187) (14,887,397)
Closing Balance 13,704,301 13,257,905

16 Revenue from contracts with customers

Set out below is the disaggregation of the Company’s revenue from contracts with customers:

For the period ended 30 June

In thousands of BDT 2024 2023

Quantity in million sticks 38,234 39,108

Gross revenue from domestic sale 221,566,461 210,299,118

Supplementary duty and VAT (174,540,381) (163,092,082)
Revenue from domestic sale, net 47,026,080 47,207,037

Quantity in million sticks 1,355 -

Gross revenue from finished goods export 1,554,729 -

Revenue from export of finished goods, net 1,554,729 -

Quantity in million kgs 0.94 4.97

Gross revenue from tobacco leaf export 276,466 1,996,229

Revenue from leaf export, net 276,466 1,996,229

Total revenue from contracts with customers, net 48,857,275 49,203,266

17 Net finance income/(expenses)

For the period ended 30 June
In thousands of BDT 2024 2023

Finance income 72,978 36,389

Finance costs
Debt and borrowing (315,533) (110,317)
Lease liabilities (203,978) (148,387)
(446,533) (222,315)

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 13
Notes to the financial statements (continued)

18 Income tax expenses

For the period ended 30 June
In thousands of BDT 2024 2023

Current income tax:

Current income tax charge 9,052,583 9,464,303

Deferred tax:
Deferred tax (income)/expense relating to origination and reversal of
temporary differences
126,088 (27,560)
Income tax expense reported in the statement of profit or loss 9,178,671 9,436,743

18.1 Reconciliation of effective tax rate

For the period ended 30 June
In thousands of BDT 2024 2023

Profit before tax 18,432,842 18,934,372

Current tax expense 49.11% 9,052,583 49.98% 9,464,303
Deferred tax expense 0.68% 126,088 -0.15% (27,560)
Total tax expense 49.80% 9,178,671 49.84% 9,436,743

Expected income tax using applicable tax rate 47.50% 8,755,600 47.50% 8,993,827
Prior year adjustment 0.00% - 0.00% -
Tax on non deductible expenses 1.61% 296,983 2.48% 470,476
Effective current tax 49.11% 9,052,583 49.98% 9,464,303
Effective deferred tax 0.68% 126,088 -0.15% (27,560)
49.80% 9,178,671 49.84% 9,436,743

19 Other comprehensive income

For the period ended 30 June

In thousands of BDT 2024 2023

Actuarial gain/(loss) on defined benefit plans - Gratuity fund 798 (4,237)

Actuarial gain/(loss) on defined benefit plans - Pension fund (527) (525)
271 (4,763)
Less: deferred tax on actuarial gain/(loss) on defined benefit plans @ 47.5% (129) 2,262
Net actuarial gain/(loss) on defined benefit plans charged to OCI 142 (2,500)

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 14
20 Earnings per share

20.1 Basic earnings per share

Earnings Per Share (EPS) is calculated in accordance with the International Accounting Standard (IAS) 33: Earnings Per Share .
The composition of EPS is given below:

For the period ended 30 June

In thousands of BDT 2024 2023

Total profit attributable to shareholders 9,254,171 9,497,629

Weighted average number of shares outstanding 540,000 540,000
Earning per share in BDT 17.14 17.59

The weighted average number of ordinary shares outstanding during the period is the number of ordinary shares outstanding at the
beginning of the year, adjusted by the number of ordinary shares issued during the period 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.
The weighted average number of shares is calculated by assuming that the shares have always been in issue. This means that
they have been issued at the start of the year presented as the comparative figures.

20.2 Diluted earnings per share

No diluted earnings per share is required to be calculated for the year as there was no scope for dilution during the year.

21 Net operating cash flows per share (NOCFPS)

For the period ended 30 June
In thousands of BDT 2024 2023

Net cash flow from operating activities (11,270,473) (665,250)

Weighted average number of shares outstanding 540,000 540,000
Net operating cash flows per share in BDT (20.87) (1.23)

22 Net asset value (NAV) per share

30 June 31 December
In thousands of BDT 2024 2023

Net asset value 57,491,801 53,637,488

Weighted average number of shares outstanding 540,000 540,000
NAV per share in BDT 106.47 99.33

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 15
Notes to the financial statements (continued)

23 Related party disclosures

The Company carried out a number of transactions with related parties in the normal course of business on arms length basis. The name of these
related parties, nature of transactions and their total value have been set in accordance with the provisions of IAS 24: Related party disclosures .

Transaction values Balance outstanding

30 June 30 June 30 June 31 December
In thousands of BDT Relationship 2024 2023 2024 2023
Income

a. Leaf, Cigarette export and sale of goods

BAT (GLP) Limited BAT Group company 79,275 1,589,258 (18,138) 593
BAT (Singapore) PTE LTD BAT Group company - - - 11,602
British American Tobacco ME DMCC BAT Group company 1,554,729 - 243,352 -
1,634,004 1,589,258 225,214 12,195

b. Other fee
Other fee received/to be received from:

BAT Holdings Limited BAT Group company - 15,477 - 9,960

BAT INVESTMENTS LTD BAT Group company 75,898 21,802 75,898 9,030
BAT PT. Export Leaf Indonesia, Malang BAT Group company - - - 835
BAT Japan BAT Group company - - - 10,256
British American Tobacco Exports Ltd BAT Group company 1,162 - 1,162 302
BASS GSD Ltd BAT Group company - - - 1,450
BAT Global Travel Retail Limited BAT Group company - 722 - -
BAT DENMARK A/S (HOP A/S) BAT Group company - - 1,480 1,480
British American Tobacco Taiwan BAT Group company - - 1,599 1,599
British-American Tobacco (Singapore) BAT Group company - 7,735 12,259 38,043
British American Tobacco (PNG) Ltd BAT Group company - 950 1,944 1,944
BAT Co. (HK) Ltd BAT Group company - 212 2,266 2,266
BAT AsPac Service Centre Sdn Bhd BAT Group company - 1,554 - -
British American Tobacco ME DMCC BAT Group company - - 3,239 3,239
Nicoventures Trading Limited BAT Group company 2,680 - 2,680 2,739
PT Bentoel Internasional Investama BAT Group company - 6,906 - -
RAI Services Company BAT Group company - - - 3,923
British American Tobacco Kenya Ltd BAT Group company 32,588 354 32,588 1,507
PAKISTAN TOBACCO CO LTD BAT Group company - - 2,884 2,884
Ceylon Tobacco Company PLC BAT Group company - - 600 600
112,328 55,711 138,599 92,057

Total related party income and balance

1,746,332 1,644,969 363,813 104,252
receivables

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 16
Transaction values Balance outstanding
30 June 30 June 30 June 31 December
In thousands of BDT Relationship 2024 2023 2024 2023
Expenses

c. Procurement of services
Procurement of information technology, products and other services:

BASS GSD Limited BAT Group company 94,446 156,892 (98,349) (5,037)
BRITISH AMERICAN TOBACCO AUSTRALIA BAT Group company - - (9,455) (9,455)
BAT Holdings Limited BAT Group company 3,435 - - -
BAT AsPac Service Centre Sdn Bhd* BAT Group company 138,979 141,547 (32,465) 106,514
BAT GSD (KL) Sdn Bhd BAT Group company - - (3,151) (3,151)
BAT Investments LTD BAT Group company 687 - 314,885 (39,480)
BAT PT. Export Leaf Indonesia, Malang BAT Group company - - (10,962) (10,962)
PAKISTAN TOBACCO CO LTD (PTCL) BAT Group company - - (415) (415)
Prerona Foundation Social Foundation 7,446 - (20) -
Agami Limited Prerona Controlled Entity 314,498 - (11,983) 16,530
British American Tobacco Tutun BAT Group company - - (47,053) (47,053)
BAT (GLP) Limited BAT Group company - - (103) (103)
British American Tobacco Exports Ltd BAT Group company - - 20,397 (9,188)
Ceylon Tobacco Company PLC BAT Group company 2,449 (2,449) -
Nicoventures Trading Limited BAT Group company 440 (348) -
British American Tobacco Western Europe BAT Group company - 7,918 - -
BAT KOREA MANUFACTURING LTD BAT Group company - - (10,870) (10,870)
BAT (Singapore) PTE LTD BAT Group company - - (1,788) (1,788)
Souza Cruz Ltda. BAT Group company - - (1,817) (1,817)
BAT Japan BAT Group company - - (10,094) (10,094)
562,380 306,357 93,960 (26,369)

d. Purchase of leaf & goods

Purchase of leaf and wrapping materials from:

BAT Singapore (Private) limited BAT Group company - 18,925 182,949 1,758
BAT (GLP) Limited BAT Group company 51,260 46,723 (8,346) 19,466
BAT PT. Export Leaf Indonesia, Malang BAT Group company - 29,563 - (61,609)
British American Tobacco Western Europe BAT Group company - 1,112 - -
British American Tobacco Exports Ltd BAT Group company 95,529 - (96,641) (1,112)
British American Tobacco South BAT Group company - 34,512 - -
British American Tobacco Kenya Ltd BAT Group company - 17,596 - -
146,789 148,431 77,962 (41,497)

e. Royalty
Royalty paid/payable to:

BAT Holdings Limited BAT Group company 381,013 512,839 (4,566,109) (4,181,661)
381,013 512,839 (4,566,109) (4,181,661)

f. Technical and assistance fee

Payment of fees for technical and assistance
support services to:

BAT Investments Ltd BAT Group company 352,933 738,936 (5,319,823) (4,964,771)
352,933 738,936 (5,319,823) (4,964,771)

g. Donations
Charitable contributions made to:

Prerona Foundation Social Foundation 39,050 - 53,123 -

39,050 - 53,123 -

h. Purchase of equipment
Purchase of equipment from:

BRITISH AMERICAN TOBACCO CHILE BAT Group company - - (69) (69)

BAT PT. Export Leaf Indonesia, Malang BAT Group company - - (3,332) (3,332)
British American Tobacco Kenya Ltd BAT Group company - - (166) (166)
BAT Nigeria Ltd BAT Group company - - (516) (516)
BAT Romania Investment BAT Group company - - (1,093) (1,093)
British American Tobacco Tutun BAT Group company 67,295 - (68,281) (986)
BAT (Singapore) PTE LTD BAT Group company 70,247 - (169,305) (99,058)
BAT KOREA MANUFACTURING LTD BAT Group company 2,126 - (2,126) -
British American Tobacco South BAT Group company 36,320 (3,541)
BAT SWITZERLAND SA BAT Group company 30,682 - (30,682) -
British American Tobacco Mexico BAT Group company - - (181) (181)
BAT GERMANY GMBH BAT Group company - - (327) (327)
206,670 - (279,619) (105,728)
Total related party expenses and outstanding balances 1,688,835 1,706,562 (9,940,506) (9,320,026)

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 17
Notes to the financial statements (continued)

24 Commitments

Capital expenditure
30 June 31 December
In thousands of BDT 2024 2023

Authorised but not provided for 2,708,208 3,391,097

Letter of credit
30 June 31 December
In thousands of BDT 2024 2023

Citibank, N.A. 1,513,586 1,482,229

Commercial Bank of Ceylon PLC 355,200 123,930
The Hongkong and Shanghai Banking Corporation Limited 154,272 182,206
Eastern Bank Ltd. 825,874 -
Standard Chartered Bank 3,464,521 6,381,911
6,313,453 8,170,276

25 Contingencies

Contingent liabilities of the Company that relate to bank guarantee to third parties as listed below:

30 June 31 December
In thousands of BDT 2024 2023

Bank Guarantee
Standard Chartered Bank 240,386 262,621
Commercial Bank of Ceylon PLC - -
Eastern Bank Ltd. 29,303 29,303
Citibank, N.A. 2,000 2,000
271,689 293,924

25.1 Litigation

The Company has various claims and legal actions arising in the ordinary course of business.
Management believes that there is a strong defence against each of these claims and legal actions and
is not expected to have a material impact on Company’s financial statements. Such claims and legal
actions include the following:

a) In January 2019, a competitor filed a writ petition against Government and NBR by which it initially
challenged the failure of Government to implement the closing budget speech of the Hon’ble Finance
Minister dated 27 June 2018 and reserving low segment for local brands. Thereafter, the competitor
instead challenged the exclusion of protection given to local brands of cigarette manufactured by local
manufacturers and sought a direction to continue the protection so granted to the local manufacturers
of cigarettes in pursuance of a 2017 Special Order. The competitor further challenged the legality of a
2018 Special Order of NBR through which the said protection was revoked. BATB was initially not a
party to the writ petition, subsequently it became a party through an addition of party application.
Upon hearing on multiple occasions, the High Court (HC) passed judgment in the matter on 21
September 2020. By holding the prospective portion of the 2018 Special Order legal, the court did not
allow the discriminatory regime to continue. However, by holding illegal the retrospective portion of the
2018 Special Order, the Court revived the discriminatory regime for only one year, that is from 01
June 2017 to 06 June 2018 and held that any shortfall of revenue under the 2017 Special Order may
be recovered from any party or manufacturer during the period of 01 June 2017 to 06 June 2018.

Subsequently, the LTU-VAT issued a Show Cause Notice dated 24 September 2020 following the
High Court judgment claiming unpaid VAT & SD of BDT 24,371 million from 01 June 2017 to 06 June
2018. BATB appealed against the HC Judgment before the Appellate Division and obtained an order
of stay. Since High Court judgment is stayed, the LTU proceeding shall also be deemed to have been
stayed.

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 18
b) LTU-VAT issued show-cause notice to BATB in March 2020 claiming BDT 2054 crore as unpaid VAT
& SD for allegedly producing 18 bn more cigarettes than declared, using an undisclosed purchase of
local leaf based on a 2016 Annual Report and VAT – 1 discrepancy. BATB participated in the LTU-
VAT hearing and claim was withdrawn post full inquiry on 19 August 2021. However, NBR started re-
investigating the matter on 14 August 2023 and informed BATB to attend a hearing post the 2 year
time bar. As per the law, NBR does not have the authority to examine the records of any proceedings
after expiry of two years from the date of decision or order.

Instead of attending hearing, BATB filed a writ petition challenging re-investigation based on time bar.
Rule was issued, which means, the HC found prime facie merit in BATB’s position that NBR’s
decision to call BATB for re-investigation beyond time bar was illegal. Court, however, did not stay
NBR proceedings but directed NBR not to call BATB for re-investigation. Thereafter, through a letter
dated 21.09.2023, NBR cancelled the Order dated 19.08.2021 passed by LTU-VAT Commissioner
(through which the claim was withdrawn) and directed LTU-VAT to recover BDT 2054 crore as unpaid
VAT & SD. Challenging the NBR’s letter dated 21.09.2023, BATB filed another writ petition. The High
Court, having found prima facie merit in our case, was pleased to issue a Rule, that is, a show cause
as to why the NBR’s letter dated 21.09.2023 shall not be declared to have been issued without lawful
authority. Thereafter, LTU made a demand of BDT 2054 crore as unpaid VAT & SD. In response,
BATB filed an application before High Court to stay the demand. High Court mentioned that it will
consider stay application during final hearing. The matter is currently pending before the High Court
for final hearing.

26 Significant deviations

Earning per share (EPS) decreased from same period last year driven by lower leaf export. Net operating
cash flow per share (NOCFPS) decreased from same period last year due to higher excise and tax
payments.

27 Events after reporting period

There are no other events identified after the date of the statement of financial position which require
adjustment or disclosure in the accompanying financial statements.

Un-audited interim condensed financial statements as at and for the six month period ended 30 June 2024 19