KPCL Corporate Disclosure — 15 May 2014

(Qualified Opinion): The auditor of the company has given the following qualified opinion paragraph in the audit report of the company for the year ended on 31 December 2013: Basis of qualified opinion: Khulna Power Company Unit II has adjusted all exchange differences shown in Note 2.1 arising on outstanding foreign currency loans against the property, plant and equipment for which such foreign currency borrowing took place in accordance with Schedule XI of the Companies Act 1994. This treatment is not in accordance with BAS 21: The Effects of Changes in Foreign Exchange Rates, which requires all exchange differences arising from foreign exchange transactions to be recognised in the statement of comprehensive income. (cont.-1)