ANNUAL REPORT BLUE NILE MASHREG BANK. 31st DEC. Audited Financial Statements. BNMB Tower, El Nagoumi Street, Khartoum, Sudan.

Transcription

1 ANNUAL REPORT 31st DEC 215 BLUE NILE MASHREG BANK Audited Financial Statements

2 Ph: Fax: AUDITORS REPORT Blue Nile Mashreg Bank: Report On The Financial Statements We have Audited the accompanying financial statements of Blue Nile Mashreg Bank, which comprise the financial position as at 31st December 215, income statement, of changes in equity, and statements of cash flows for the financial year then ended including summary significant accounting policies with the explanatory notes. Managements Responsibilities For The Financial Statements These financial statements are the Responsibility for the Bank s Management. The management is responsible for the preparation and fair presentation of these financial statements in accordance with the Islamic Shari a Rules and Regulations, and the standards set forth by the Central Bank of Sudan and its related laws. The Management responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free form material misstatement, whether due to fraud or error; Management responsibility also includes selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor`s Responsibility Our Responsibility is to express and opinion on these financial statements based on our audit. We conducted our audit in accordance s with Islamic Bank Standard on Auditing and in the light of the prevailing Sudanese laws. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free form material misstatement. An audit involves performing procedures to obtain audit evidence about amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgement, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor consider internal control relevant to the entity s preparation and fair presentation of the financial statement in order to obtain audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. In Our opinion the financial statement give a true and fair view of the state of the Bank s affairs as at 31st December, 215 and of its financial performance for the year then ended, in compliance with Islamic Sharia a rules, as prescribed by the Sharia a Supervisory Board, Bank of Sudan and AAOIFI Accounting & Auditing Standards. Mustafa M. S. Bayoumi BS C, F.C.C.A, S.C.C.A P.O.Box : 2988 Khartoum Republic of Sudan Tel: (83) Fax : (83) mustafa_salim@hotmail.com Date: 22/3/

3 Ph: Fax: Financial Statement As At 31st December, 215 Particulars Assets Cash & Cash Equivalents Sales Receivable Investments Long Term Investments Other Assets Branches Under Construction Net Fixed Assets Assets Liabilities, Unrestricted Investment Accounts And Owners Equity Liabilities Current Accounts and Savings Accounts Accounts Payable Other Liabilities Liabilities Unrestricted Investment Accounts Liabilities and Unrestricted Investment Accounts Owners Equity Paidup Capital Legal Reserve Retained Earnings Owners Equity Liabilities And Unrestricted Investment Accounts & Owners Equity Contra Accounts Letters of Credit Letters of Guarantee Notes (5) (6) (7) (8) (9) (1) (11) (12) (13) (14) (15) (16) 215 SDG 214 SDG 74,662,59 743,887,59 6,26,542 7,436,883 1,63,178,246 1,143,7,519 33,78, ,991 4,84,67 3,695,22 28,95,73 19,33,841 13,74,853 84,488,275 2,581,2,726 2,29,49,59 1,233,37, ,795,732 28,46,952 58,58, ,766, ,188,778 1,414,264,912 1,86,43,131 39,761, ,49,413 1,85,26,527 1,429,533, ,43,44 27,777,896 11,661,167 69,531,36 43,469, ,566,79 776,174, ,876,46 2,581,2,726 2,29,49,59 1,398,88 14,328,93 4,22,576 2,131,21 5,619,456 16,46,113 Mohammad Ismail Mohammad Chairman Abdel Bagi Abdalla Hassan Director Isam Osman Mahgoub Saad General Manager 3

4 Ph: Fax: Income Statement For The Year Ended December 31st, 215 Particulars Income Deferred Sales Investment Securities Revenues Other Investment Income Less: Return on Owners of Unrestricted Investment Accounts Bank s Share of Investment Income as (Mudarib) and Owner of the Fund Plus: Revenues from Banking Services Foreign Currency ReEvaluation of Revenue Gains Other Revenues Income Less Staff Cost General and Administrative Expenses Depreciation Finance Provision Fines Bank of Sudan Expenses Notes (17) (18) (19) (2) (21) (22) 215 SDG 214 SDG 1,83,265 1,87,94 85,962,843 47,273,243 14,376,55 93,376,57 191,422, ,457,69 (31,424,48) (2,678,3) 159,997, ,779, ,523, ,996,958 25,561,56 9,375,64 1,88,322 2,274,789 53,17, ,426,498 34,516,91 36,61,83 36,21,684 28,77,373 5,69,527 4,57,632 1,413,823 13,5 11, 77,836,435 69,269,835 Net Income after Zakat and Taxation Less Provision for Zakat Provision for Tax Net Income after Zakat and Taxation Less Legal Reserve Net Profit for the Year 425,334,241 (13,579,49) (9,457,119) 321,298,73 (32,129,87) 289,168,266 29,781,599 (12,343,473) (66,546,283) 211,891,843 (21,189,184) 19,72,659 Mohammad Ismail Mohammad Chairman Abdel Bagi Abdalla Hassan Director Isam Osman Mahgoub Saad General Manager 4

5 Ph: Fax: Statement Of Cash Flows For The Year Ended December 31st, 215 Particulars Cash Flows From Operations Net Income Net Income Adjusted by Depreciation of Fixed Assets Provision of Zakat Provision for Tax Tax and Zakat Paid Return on Unrestricted Investment Accounts Profit on Sale of Assets Net Cash Flows From Operations Notes (1) 215 SDG 214 SDG 289,168,266 19,72,659 5,69,527 4,57,632 13,579,49 12,343,473 9,457,119 66,546,283 (85,7,97) (24,925,955) 31,424,48 2,678,3 (34,28) 16,9 345,278,316 27,21,14 Cash Flows From Investing Increase (Decrease) in Investments Net Increase ( Decrease) in Deferred Sales Receivables Increase in LongTerm Investments Sale of Fixed Assets Purchase of Fixed Assets Net Cash Flows from (Used In) Investing Activities Cash Flows From Financing Net Increase in Unrestricted Investment Account Net Increase (Decrease) in Current Accounts Retained Earnings Transfer to Capital Transfer to Legal Reserve Increase (Decrease) in Credit Balances and Banks Increase (Decrease) in other Assets Net Cash Flows from Financing Activities Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year (2) (3) (46,17,727) 1,41,341 (32,55,275) 28,458 (51,523,535) (542,49,738) 15,846, ,241,43 (44,474,797) (36,265,58) (32,129,87) (24,48,693) (18,181,447) 193,987,872 (3,224,55) 743,887,59 24,72,342 (42,579,37) 918 (29,6,56) (46,936,13) 9,299,58 97,346,196 (122,187,815) (3,652,741) (21,189,184) (61,674,491) 13,968,32 (34,9,675) 188,994, ,892,733 Cash and Cash Equivalents at the end of the Year 74,662,59 743,887,59 Mohammad Ismail Mohammad Chairman Abdel Bagi Abdalla Hassan Director Isam Osman Mahgoub Saad General Manager 5

6 Ph: Fax: Statement Of Changes In Equity For The Year Ended 31st December, 215 Particulars Paid Up Capital SDG Legal Reserve Returned Earnings ( Gain / Loss) SDG SDG SDG Balance at ,777,896 69,531,36 322,566,79 599,876,46 Dividends 144,999,92 144,999,92 Net profit 321,298,73 321,298,73 Transferred (from) reserves Transfered to) reserves 32,129,87 32,129,87 Transferred to paid up capital 36,265,58 36,265,58 Balance at ,43,44 11,661,167 43,469, ,174,199 Balance at ,125,155 48,342, ,74,687 51,172,18 Dividends 122,187, ,187,815 Net profit 211,891, ,891,843 Transferred (from) reserves Transferred (to) reserves 21,189,184 21,189,184 Transferred to paid up capital 3,652,741 3,652,741 Balance at ,777,896 69,531,36 322,566,79 599,876,46 Mohammad Ismail Mohammad Chairman Abdel Bagi Abdalla Hassan Director Isam Osman Mahgoub Saad General Manager 6

7 Ph: Fax: BLUE NILE MASHREG BANK Complementary Notes To Financial Statements For The Year Ended December 31St, 215 the Accounting and Auditing Organization for Islamic Financial Institutions standards. 2.2 The Financial Statements are Prepared on a Historical Cost Basis. The financial statements were approved by the Board of Directors. 2.3 Currency of Entry and Presentation Financial statements are presented in Sudanese Pounds currency which represents the enrollment of the bank. 1 / Foundation and the Nature of the Activity Blue Nile Mashreg Bank was established in October 23 Due to the merger of Mashreq Bank, Khartoum branch which was founded in 1979 into Blue Nile Bank, which was established in Capital of Mashreg Bank authorized and paid up was $ 1 million,( Ten Million U.S. Dollar) and the authorized capital of Blue Nile Bank was $ 2 million, ( Twenty Million U.S. Dollar) and paid up capital was $ 17,114, at the date of merger. The Bank operates under the Bank of Sudan license, dated 1/1/23,to doing all banking activities in accordance with the laws and guidelines of Bank of Sudan. 2 / Basis of Preparation of Financial Statements 2.1 The financial statements have been prepared in accordance with the provisions and principles of Islamic Law as determined by the Shari a Supervisory Board of the Bank, and in accordance with the standards issued by the Bank of Sudan and in consistent with accounting standards issued by 2.4 Use of Estimates and Assumptions The preparation of financial statements requires the use of estimates and assumptions which affect the value of assets and contingent liabilities at the date of the financial statements, as well as the revenues and expenses during the fiscal year. And despite the fact that these estimates are prepared in accordance with the best information available to the administration about the current events And circumstances, but the final result may differ from these estimates. 3 / Important Accounting Policies 3.1 Transactions in Foreign Currencies The registration of foreign operations by Sudanese Pound according to prevailing prices at the time they occur, the assets and liabilities in foreign currency monetary, transferred to Sudanese Pound at the date of preparation of financial statements on the basis of the prevailing price at that date, which was 2,44 Sudanese Pounds for one US Dollar, and the differences resulting from those operations transferred to the income statement for the year. It is evaluated the balances of outstanding exchange contracts at the end of the financial period, if any, at fair value at that date using the future prices for the remaining periods to maturity dates of those contracts, and the different valuation recorded in the income statement within the profit (loss) item from foreign currency transactions. Swap currency contracts are recognized in the history of the relevance under contingent liabilities and commit 7

8 Ph: Fax: ments with proof of the difference between the equivalent of naughty contract swap under debit balances and other assets or item payable and other obligations, so as unrealized profit / losses in the relevance to history contract swap, and balances are consume over the life of contract swap plus / or discount from the item proceed on loans and bank balances in the income statement, while gains (losses) resulting from the execution of a contract swap in the income statement under profit ( losses) from foreign currency transactions. The value of the premium paid for the options of foreign exchange contracts recorded on debit balances and other assets and the balance of the premium to be settled in the income statement in accordance with of the outcome of the evaluation of options contracts at their fair value on profit (loss) from foreign currency transactions. For option contracts purchased, to cover options contract sold to clients to cover the risks related to the nature of their activity. The difference between the premium paid for the option contract of the buyer and the premium received for option contract are recognized as in the date issuance of the contract, in the item credit balances and other obligations and this is the difference that will be settled in the income Statement item profit (loss) from foreign currency transactions, according to the accrual basis. 3.2 Swap Contracts Interest Rate The balances of interest rate swap contracts existing at the end of the financial period, will be evaluated at fair value at that date using a return price agreed upon, those contracts and their fair valuation differences will recorded in the income statement. 3.3 Revenue Recognition Revenue recognized on an accrual basis with the exception of nonperforming loans that in turn is recognized as revenue when the uncertainty of the recovery of the value of such proceeds or principal indebtedness, and revenue of stocks & documents of investment are recognized. At the declaration of distribution dividends that relate to the return of banking services are recognized in the date of the transaction. 3.4 Evaluation of the Financial held for Trading The financial evaluation of investments held for trading, including the government financial investments by nonmanaged investment funds and documents that are not issued by banks and insurance companies acquired for trading at the end of the financial Period at fair value, which represents the market price of the knowledge, reputation and prove the statement of income differentials. The financial evaluation of investments held for trading, which lost one of the conditions classified as securities. For trading at carrying amounts, with decreasing this value in the event of any reduction according to the objective and comprehensive study of the most recent financial statements issued by the company, proving valuation differences in the income statement. The evaluation of assessment and documentation of investment funds issued by the bank, insurance companies must be at the fair value, which represents the recoverable value of these documents in the history of the evaluation, assessment and prove the statement of income differentials. 3.5 Evaluation of Available Investments for Sales Available financial investments for sale are carried at the cost or fair value, whichever is less for each investment unit taking into account the changing differences in foreigncurrency exchange rate, and the differences will 8

9 Ph: Fax: be loaded on the income statement at the evaluation of other financial investments differences item, and in the event of an increase it will be added to the relevant item within the limits already loaded on the statements of income accordance to the previous financial periods. 3.6 Evaluation of the Financial Investments Held to Maturity Bonds that are purchased as a first issue will be evaluated at the revised cost which represent the nominal value plus premium or excluding the release discount depending on the circumstances. The consumption of premium / discount version will be done according to the Fixed installment and consumption will be included in the return of treasury bills and bonds item at the list of Income, And follow the same method for the valuation of purchased bonds from the stock market at a value less or more than the nominal with decreasing the cost of revenue for the period prior to the date of purchase. In the event of a deterioration in the fair value compared to the book value for each bond the value will be adjusted on the same book or statement and added to the income statement on evaluate other financial investments differences item, in the event of an increase in the fair value it will be added to the income statement in the same item, and according to the extent already loaded on the income statements for the previous financial periods. 3.7 Evaluation of Financial Investment held to Maturity (Continued) The adjustment of the bond book value will be done in foreign currency according to the evaluation result of the exchange rate at the valuation date, differences will be inserted on the income statement on earnings (loss) from foreign currency transactions item the evaluation of the investment documents, which the Bank is required to keep to the date of the end of the Fund as the originator bank of the Fund will be done at the cost, and in case of a decrease in recoverable amount of these documents cost the difference will be loaded to the income statement in differences assess other financial investments item, and in the event of a rise it will be added to the same item within the limits of what already loaded on the income statements for the previous financial year. 3.8 Provision for Loan and Contingent Liabilities The formation for loans and obligations of crossalone configuration, in addition to the percentage of the public of the risks calculated from the total loans and other contingent liabilities excluding from them covered balances deposits and bank bails issued by creditworthy foreign banks in light of the administration and detailed studies for loan balances and contingent liabilities. Loans will be terminated in case of the futility of the actions taken in the collection procedures according to the deduction against the provision, which is added to the proceeds of loans previously written off. 3.9 Contingent Liabilities and Commitments Contingent liabilities in which the Bank is a party in addition to commitments for exchange contracts, currency exchange, interest rate and other outside financial position under contingent liabilities and commitments item do not represent actual assets or liabilities at the balance sheet date. 3.1 Cash and Cash Equivalents For the purposes of cash flows statement preparation, cash and cash equivalents for example : cash balances and balances in Central Bank of Sudan and current account balances in other banks, as well as treasury bills balances that mature within three months from the date of acquisition we included Depreciation and Consumption The depreciation of fixed assets will be done according to the straight line method using the appropriate amortization rates which determined based on the estimated useful lives of each asset, and calculated from the date of the start of the actual use and fixed assets will appear in the net value after deducting the accumulated depreciation. The following are the depreciation rates used: Building Construction 5% Furniture and equipment 1% Vehicles 15% Computers 33.33% The improvements and renovations expenses for the rented bank branches will be depreciated over the estimated useful life or the lease term, whichever is less Investment Risk Provision Investment risk provision is made after studying surrounding circumstances for each conversion process according to conditions, principles and rules set by the Bank of Sudan Sales Receivables and Deferred Installments It is recorded in the time of their occurrence in real terms. 9

10 Ph: Fax: Processing Zakat and Taxes Bank is obligated to pay Zakat and taxes according to memos issued by the Zakat Chamber and the Office of Tax in Sudan Employees Benefits Benefits of the personnel services, will be determined by the Bank Shari a Supervisory Board Activity of the Bank is subject to the supervision of the Shari a Supervisory Board. 1

11 Ph: Fax: (4) Financial Instruments and Related Risk Management 4.1 Financial Instruments A Financial instruments Financial instruments for the bank are financial assets and liabilities, including financial assets, cash balances and current accounts and deposits with banks and financial investments and loans to customers include financial liabilities. Customer deposits and dues to banks, and longterm loans and financial instruments also include rights and commitments included under contingent liabilities and commitments. And it includes a note (3) of the notes to the financial statements of accounting policies in respect of recognition and measurement of the key financial instruments and their related income and expenses. B The Fair Value of Financial Instruments Based on the methods used to evaluate the assets and liabilities of the bank and received notes to the financial statements, the fair values of financial instruments are fundamentally different from their book values and do not differ in the history of financial position. C Deferred Contracts The Bank does not enter into future contracts unless to meet the necessary requirements of the foreign currency or the requirements of its customers to meet the obligations in foreign currencies arising from transactions through the Bank, all of which are characterized as shortterm operations. 11

12 Ph: Fax: Risks Associated With Financial Instruments Management A Interest Rate Risk Exposed to certain financial instruments values fluctuate due to changes in interest rates by the Bank and the several measures that would reduce this risk raised to a minimum. Examples include: Linking the interest rate on borrowing with the rate of return on lending. Prevailing discount rates of different currencies when determining interest rates. B Credit Risk Loans to customers and banks and financial investments in the form of bonds, as well as current account balances and deposits with banks and the rights and obligations of third parties are considered as financial assets exposed to credit risk of the inability of the parties to repay part or all of its dues on the due dates of financial assets. The Bank adopted several measures, including reducing the credit risk to a minimum. Obtain sufficient guarantees to reduce the risks that arise in the case that the customer or the size of Banks, The followup study, Journal of customers and banks in order to assess the financial and credit positions and estimate the required provisions for nonperforming assets. The distribution of a portfolio of loans and balances with banks on the different sectors in order to avoid the concentration of risk. C The Risk of Fluctuations in Foreign currency Exchange Rate Due to the dealing in a number of foreign currencies, according to the nature of bank activity, it may put the bank at risk of fluctuations in foreign currency exchange rates. And for the purposes of reducing that risk to a minimum, the bank will take into account the balance in the foreign currency positions in accordance with instructions issued by the Central Bank of Sudan in this regard. Examples include: Preparing credit studies on customers and banks before dealing with them and determining credit risk rates related thereto, 12

13 Ph: Fax: Schedule Of Depreciation Of Fixed Assets For The Year Ended December 31st, 215 Fixed Assets (11) Particulars Cost Balance at Additions Disposals Balance at Depreciation Balance at 1/1215 Depreciation of Year Additions Disposals Balance at Net Book Value as at ,858,576 34,846,16 SDG SDG SDG SDG SDG SDG SDG SDG 9,74,736 9,74,736 Furniture & Land Cars Office Equips Computers Generators Buildings 8,31,269 1,45, (552,4) 8,883,869 2,61,14 1,137,374 15,375 (35,97) 3,537,793 5,346,76 12,28,218 3,828,142 16,18,36 6,61,81 1,518,99 285,86 7,865,85 8,242,51 4,297, ,284 5,225,837 3,766,58 641, ,914 4,521,745 74,92 1,462, ,9 1,755, , ,677 14, ,39 987,714 14,696,33 8,525,631 23,221,961 1,437,61 367,48 16,57 1,911,588 21,31,373 Computers Software 3,341,36 1,697,418 5,38,778 1,2,411 1,2,48 254,614 2,259,433 2,779,345 99,968,16 51,523,535 (552,4) 15,939,295 15,479,885 4,89,549 88,978 (35,97) 2,864,442 13,74,853 L Net Book Value as at ,858,577 5,43,257 6,219,14 531, ,133 13,258,722 2,338,952 84,488,

14 Ph: Fax: Notes To The Financial Statements As At December 31st, 215 Cash & Cash Equivalents (5) 215 SDG 214 SDG Cash in HandLocal 31,874,985 47,359,179 Cash in HandForeign 15,325,536 18,369,894 Bank of Sudan Current Account Local 185,758,583 13,76,695 Bank of Sudan s Current Account Foreign 162,465,344 79,876,223 Cash Reserve with the Bank of Sudan Local 155,383,464 85,61,449 Cash Reserve with the Bank of Sudan Foreign 58,373,447 64,192,675 Cash Reserve with Bank of Sudan 442, ,875 Foreigners Correspondents 131,38,99 254,842,69 74,662,59 743,887,59 Sales Receivable (6) Partial 215 Grand Partial 214 Grand Murabaha Receivables 5,541,658 1,385,414 6,927,72 7,975,424 5,316,949 13,292,373 Salam (Normal) Provision for Doubtful Debts() 43,424 1,12 (Bad) Provision for Doubtful Debts () 271, ,358 Profits Under Collection 585,965 4,811,12 Sales Receivable 5,541,658 1,385,414 6,26,542 7,975,424 5,316,949 7,436,883 7 Investments Musharaka 14,95,132 22,357,699 37,262,831 (Normal) Provision for Doubtful Debts () 372,828 (Bad) Provision for Doubtful Debts () Musharaka 14,95,132 22,357,699 36,89,3 Other Investment Suspense Letter of Credits 192, , ,46 Ijara 7,217,482 17,554,37 87,771,852 79,682,952 48,121, ,84,92 Mogawala 49,56,464 12,39,116 61,95,58 7,855,387 5,236,925 13,92,312 Mudaraba 811,432,297 22,858,74 1,14,29, ,149,154 31,432,77 753,981,924 Commercial Securities Purchased 95,493 63,662 1,59,155 Other Investments 931,21, ,82,56 1,164,12,83 54,785,83 355,523, ,79,717 (Normal) Provision for Doubtful Debts () 11,676,298 9,37,298 (Bad) Provision for Doubtful Debts () 1,359,655 3,783,592 Profits Under Collection 3,96,64 38,486,38 Other Investments 931,21, ,82,56 1,12,88,246 54,785,83 355,523, ,69,519 Securities Shahama 368,552,8 92,138,2 46,691, 119,2,4 178,8,6 298,1, Instruments of Liquidity Management 17,285,6 4,321,4 21,67, Securities 385,838,4 96,459,6 482,298, 119,2,4 178,8,6 298,1, Investments 1,317,48, ,262,16 1,63,178, ,724, ,324,487 1,143,7,

15 Ph: Fax: Notes To The Financial Statements As At December 31st, 215 Particulars Notes 215 SDG 214 SDG LongTerm Investments Juba Investment Company Blue Nile Co., Ltd. Banking Services Company Nile and Orient Financial Services Company Blue Nile Bank Free Zone Other Assets Accrued Revenue Prepayments Staff Loans Stationery Inventory Incoming Transfers (Western Union) Medical Insurance Branches Under Construction Cars Parking (H.Q.) Obied Sajana Port Sudan Kassala Nyala Private Branch Al Ahfad Gedaref Riyadh Kosti Current Accounts and Savings Accounts Local Current Deposits Local Savings Deposits Foreign Current Deposits Foreign Savings Deposits Import Foreign Accounts Export Foreign Accounts (8) (9) (1) (12) 25 1, 776,991 15, 32,15,25 33,78,266 34,442,1 555,553 3,812,583 4,466 1,45, ,687 4,84,67 17,61, ,67 5,35, ,13 5, 3,851,411 13, 17, 28,95,73 75,53,55 5,37,273 55,412,594 1,1,363 14,693,476 1,19,88 1,233,37, , 376,966 15, 527,991 26,371,838 1,353,231 2,142,172 4, ,295 3,695,22 2,246,922 6,61,543 9,52, ,125 1,4, ,13 13, 19,33, ,589,33 2,754, ,581,46 615,78 13,688,986 1,566, ,795,

16 Ph: Fax: Notes To The Financial Statements As Of December 31st, 215 Particulars Accounts Payable Margins of Letters of Credit Margins of Letters of Guarantee Other Certified Checks Social Insurance Unpaid Dues Stamps Duty Atms Surplus Return of Export Administrative Reporters Restrictions Commission of Banking Services Company ATM Adjustment Personal Income Tax & Free Professions Other Liabilities Provision for after Service Benefits Provision of Certified Auditors Provision for Tax Provision for Zakat Contributing to Guarantee Bank Deposits Fund Other Provisions Provision for Bonus Unallocated Profit Capital Authorized Blue Nile Bank (15 Million), The Value Of Stock Shares 1.87 Per SDG Blue Nile Bank (27 Million), The Value Of Stock Shares 1.87 Per SDG Notes (13) (14) (15) 215 SDG 214 SDG 3,356,931 15,158, , ,94 2,182,961 3,292,331 53,529 7, , ,6 1,69, ,441 28,43 18,65 148,77 134,658 9,43,231 24,72 169, ,624 53,125 1,796,43 1,49,26 28,46,952 58,58,621 11,263,567 1,92,92 175, 55,386 11,3,42 89,297,658 13,579,49 15,255,723 3,184,152 2,515,645 3,685,125 2,153,93 1,17,773 7,989,534 75, ,766, ,188,778 54,9, 54,9, Paid Up Capital 59,999,986 Shares, Value Per Share 1.87 SDG 111,111,174 Shares, Value Per Share 1.87 SDG 244,43,44 27,777,

17 Ph: Fax: Notes To The Financial Statements As At December 31st, 215 Particulars Retained Earnings Balance At 1/1 Less: Dividends Less: Transferred to Capital Plus: Year Profit Less: Transferred to Reserves Retained Earnings Investment Securities Proceed of Shahama Proceed of Liquidity Fund Other Investment Income Ijara Profit LongTerm Investment Profits Mudaraba Profits Mogawala Profits Revenues From Banking Services Transfers Commission Correspondents Commission Letters of Credit Commission Letters of Guarantee Commission Checks Collect Commission Ledger Fees Other Income Commission Received on Insurance Commission Received on Telecommunication Sale of Fixed Assets Profits Proceed of ATMS Services Profit on Postage Commission of Cash Withdrawal Miscellaneous Commission of Customs Collection Notes (16) (17) (18) (19) (2) 215 SDG 214 SDG 322,566,79 284,74, ,999,92 122,187,815 36,265,58 3,652, ,31, ,864, ,298,73 211,891, ,599, ,755,974 32,129,87 21,189,184 43,469, ,566,79 83,26,861 47,273,243 2,71,982 85,962,843 47,273,243 11,27,285 1,912,943 86,873 79,895 92,138,246 82,383, ,651 14,376,55 93,376,57 1,169,78 11,147,523 14,484 34,422, ,29, , , ,296 92,275 1,188,25 1,631, ,523, ,996, ,15 297, ,31 34,28 183,346 27,767 1,656,697 41,88 161,627 1,88,322 2,274,

18 Ph: Fax: Notes To The Financial Statements As At December 31st, 215 Particulars The Human Factor Cost Salaries and Wages Uniform Allowance Medical Exps. After Service Benefits Social Insurance Staff Fund Staff Training & Seminars Grants and IncentivesMarriage Overtime Special Grants Meal Allowance Vacation Allowance Travelling Allowance General and Administrative Expenses Travelling & Transportation Exps. Audit Fees Maintenance and Repairs Insurance Office Supplies and Computer Expenses Maintenance of Vehicles Subscriptions Hospitality and Gratuities Other Water Electricity Rent & Rates Commissions Paid Advertisement Exps. Telex, Telephone And The Internet Consulting & Legal Fees Generator Exps. Management Remuneration (Board of Directors Fees) Commissions Paid to Bank of Sudan Automated Teller Machines Exps. Income Tax Zakat Securities Exps. Notes (21) (22) 215 SDG 214 SDG 1,261,45 8,981,199 2,186,854 1,67,19 2,687,26 2,246,62 3,319,95 3,153,459 1,221,96 959,16 58, , ,51 9,67,873 15,263, , , ,86 2,159,167 2,231,186 2,327,719 1,12,954 34,516,91 36,61,83 1,116,465 1,71, , 2, 3,38,569 1,397,75 873,79 67,175 1,17,87 1,816,487 1,217,56 1,142,421 1,269,14 71, ,46 398, ,48 23, ,19 463,463 1,747,275 1,238, , ,56 171,158 74,11 1,78,15 1,145, ,95 189, ,32 146,13 16,2,125 11,153,197 4,51 2,316 51,26 662, ,46 411, ,45 31,9 18

19 Ph: Fax: Notes To The Financial Statements As At December 31st, 215 Contribute to Investment Deposit Guarantee Fund Annual Fee Banks Transfers Fees Losses From Sale of Assets WrittenOff Debt Administrative Expenses 3,184,152 89,68 12,161 36,21,684 2,515,645 1,442,87 448, ,2 28,77,373 Particulars Transactions With Related Parties (23) 215 SDG 214 SDG The Type Of Relationship Finance Volume Balance As At 31/Dec. Type Of Transaction M.I.G Agricultural Company Majority Shares Held by Chairman 15,559,563 5,186,521 Mudaraba M.I.G Exchange Company Majority Shares Held by Chairman 22, 22, Letter of 15,779,563 5,46,521 Guarantee 19

20 BNMB Tower, El Nagoumi Street, Khartoum, Sudan Fax: