Blue Nile Masheq Bank Annual Report

Transcription

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2 216 Blue Nile Masheq Bank Annual Report TABLE OF CONTENTS COMPANY OVERVIEW The Board of directores. The Executive Management The Bank network and agencies The ATM network & wetern union network FINANCIAL STATEMENT The Financial indicators of BNMB performance (for the year 216). The auditor s reports and financial statemenrts. Explanatory notes about the financial statement. The sharea supervisory authority report. There are two types of people who will tell you that you cannot make a difference in this world: those who are afraid to try and those who are afraid you will succeed. Ray Goforth

3 4 The Blue Nile Mashreg Bank 5 The Strategy of the Bank Public Limited Company: Phone: (83)76449 The bank operates in accordance with a license issued by the central bank of Sudan on 1\1\23 permitting Date of Establishment : 1\1\1983 P.O.Box :984 The practicing of all types of banking activities in accordance with the prevailing regulations and Guidance of the central bank. Paid up capital : SDG 177 million Fax : (83) Khartoum alnujomy Street bnmbsudan@bluemahreg.com SWIFT CODE: BLNISDKH Website: Mission Strengthen the performance culture among the Bank s Employees and supported them by an appropriate stimulus packages and programs for the development and continuous training, in addition to a clear connection between the actual performance and stated objectives. Services provided by the bank Current account in different currencies. Acceptance and the management of deposits. Management and finance of investment portfolio, finance to individuals, institution, and microfinance. Foreign trade finance. Domestic and international remittances. We are aware of our responsibility in contributing in socioeconomic development practically boosting the Basic infrastructures and services sector. Committed to the implementation of sharea principles in all our transactions and banking operations. Committed to the ethics and standards of our profession. Believe in the role of qualified and well trained staff and making use of IT as a basis of success. Providing full and distinctive banking services, to make our bank the best choice for the local and international Customer s, to attract local and foreign deposits, and to provide finance in accordance with Islamic Modes of finance in order to maximize shareholders equity and satisfy customers.

4 6 Board of Directors Mr. Mohamed Ismail Mohamed Chairman Mr.Abdul Bagi Abdullah Hassan Director Mr.Abdulazeim Mohamed Khair Director Dr. Hamid Hussein Mohamed Director Dr. Ahmed Elsheikh Mohamed Director Mr.Tarig Mohamad M. Fagiri Director Mr. Sharf Aldin ABdelrahman Company Secretary Executive Management Essam Osman Mahgoub Chief Executive Officer Dr. Mahmoud Hassan Deputy CEO Mr. SharafAl Din Abdul Rahman Manager Admin & Financial Affairs Department Mr. Abdul Karim Ibrahim Taha Manager Credit Marketing Department Mrs.Kawther El Sunni Manager Internal Audit Department Mrs.Nour Abdelrahman International Relations Manager Mr. Mohammad Badawi Elbadri Manager Information Technology Department Mr. Mohamed Elfatih Elzain ICT Division Head Mr. Salah Aldin Mohamed Khair The Legal Advisor Mr. Muasim osman Manager Admin Division Mr. Ammar Ahmed Manager Human Resources Division Mr. Ali Osman Manager Financial Affairs Division Mrs. Noura Mohamed Suliman Manager Risks Department 7

5 8 9 The Branches and Agencies 1. Head Office & Main Branch, at Elnagoumi Street / Khartoum Main Switch for All Branches: 15 Tel: Tel: FAX: El Fasher Branch, El Fasher Tel: Ext Private Banking Branch, Serving UN Organisations, NGOs and Oil Companies Baladia Street /Khartoum Tel: Ext El Obied Branch, Elobied Tel: Ext Al Saggana Branch, at Hurria Street AL Saggana / Khartoum Industrial Area Tel: Ext Omdurman Branch, Almorada Omdurman Tel: Ext Khartoum North Branch, Baladia Street Khartoum North Tel: Ext PortSudan Branch, at PortSudan Tel: Ext Gari Free Zone Branch, Garri Free Zone Tel: Ext Tuti Island Branch, Tutti Tel: Ext El Genina Branch, El Genina Tel: Ext Souk Libya Branch, Omdurman Tel: Ext Kassala Branch, Kassala Tel: Ext Kosti Branch, Kosti Tel: Ext Gaddarif Branch, Gaddarif Tel: Ext Damazine Branch, Damazine Tel: Ext Kadugli Branch, Kadugli Tel: Ext Ed Dain Branch Under, Ed Dain Tel: Ext Zalinge Branch Under, Zalinge Tel: Ext 37

6 1 Automated Teller Machine (ATM) 11 Booth Network Khartoum 1. AAAID Building Booth, Baladia Street Khartoum Head Office, Elnajumi Street 2. World Food Program Building Booth, Arkawit Khartoum Private Banking Branch, Baladia Street 3. PetroEnergy Booth, Almugran Area Khartoum AAAID Building, Baladia Street World Food Program Building, Arkawit CNPC Petro Energy Building, Al Mogran FAO Building, Baladia street Emmarat Branch, Street 15 Emmarat WHO Building, Nile Street UNCHR Building, Khartoum 2 Petrola station, Industrial Zone Al Horia Street Petrola station, Islamic Center Alnasr Housing Complex Al sagana Branch, Al Horia Street Petrola station, Alghalli Bahri Khartoum North Branch, Al Mazad Street Petrola Station, Al Safia, Al Moona Street Omdurman Omdurman Branch, Almorada Petrola Station, Hamd Alniel Petrola Station, Bait Almal Alzaim Al Alzhare Street Petrola Station, Althawra 3 Al Wadi Street Petrola Station, Al Hatana States Al Fasher Branch Kassala Branch Al Obid Branch Portsudan Branch 4. GNPOC Building Booth GNPOC Building Mogran 5. UN World Health Organization Building 6. Food and Agriculture Organization, Area Khartoum 7. UN Refugee Agency, Khartoum 2 The Western Union Network It s aboard quality agent s network linked with each other by computers network system. It transfers money in a safe and careful way. It is a comfortable and fast service and it has about 31 agents in 2 countries. Millions of people trust western union transferring and receiving money in all parts of the world.

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8 14 AUDITORS S REPORT Blue Nile Mashreg Bank Report on the Financial Statements 15 that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the We have audited the accompanying financial statements of Blue Nile Mashreg amounts and disclosures in the financial statements. The procedures selected Bank, which comprise the financial position as at 31st December 215, income depend on the auditor s judgement, including the assessment of the risks statement, statement of changes in equity and statement of cash flows for the of material misstatement of the financial statements, whether due to fraud financial year then ended, and summary of significant accounting policies and or error. In making those risk assessments, the auditor considers internal other explanatory notes. control relevant to the entity s preparation and fair presentation of the financial statements in order to obtain audit procedures that are appropriate Managements Responsibilities for the Financial Statements: in the circumstances, but not for the purpose of expressing an opinion on the These financial statements are the responsibility of the Bank s management. effectiveness of the entity s internal control. An audit also includes evaluating The management is responsible for the preparation and fair presentation of the appropriateness of accounting policies used and the reasonableness of these financial statements in accordance with the Islamic Sharia a rules and accounting estimates made by management, as well as evaluating the overall regulations, and the standards set forth by the Central Bank of Sudan and its presentation of the financial statements related laws. The management responsibility includes, designing, implementing and maintaining internal control relevant to the preparation and fair In Our opinion the financial statements give a true and fair view of the state of presentation of financial statements that are free from material misstatement, the Bank s affairs as at 31st December, 216 and of its financial performance for whether due to fraud or error; the management responsibility also includes the year then ended, in compliance with Islamic Sharia s rules, as prescribed by selecting and applying appropriate accounting policies; and making accounting the Shari a Supervisory Board, Bank of Sudan and AAQIF Accounting & Auditing estimates that are reasonable in the circumstances. Standards. Auditor s Responsibility: Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Islamic Banks Standards on Auditing and in the light of the prevailing Sudanese laws. Those standards require KHARTOUM : 6. 3, 217

9 16 Financial Statement As At 1 3st. December 216 Notes 216 SDG 17 Income Statement for The Year Ended 31st. December SDG Assets: Notes 216 SDG 215 SDG 7,775,724 2,26,916 Income: Cash and cash equivalents 5 82,481,394 74,662,59 Deferred sales Sales receivable 6 96,65,315 67,977,122 Investment securities revenues 17 85,21,766 85,962,843 Investments 7 1,531,57,292 1,541,227,666 Other investment income ,653,425 I3,432,44 Longterm investments 8 71,93,991 33,78, ,639, ,422,163 Other assets 9 54,544,568 4,84,67 less: Branches under construction 1 26,543,49 28,95,73 Net fixed assets ,577,218 13,74,853 (48,842,725) (31,424,48) 2,744,712,827 2,581,2,726 Return on owners of unristricted investment accounts Bank's share of Investment Income as (Mudarib) and owner of the fund 166,797,19 159,997, ,937, ,868,84 21,558, ,561, ,766,395 53,17,676 assets Labilities, Unrestricted investment accounts and Owners' equity: Add : Liabilities: Revenues from banking services Current accounts and savings accounts 12 1,81,823,232 1,233,37,136 Accounts payable 13 3,745,496 28,46,952 Other liabilities ,62, ,766,824 1,29,189,692 1,414,264, ,619,514 39,761,615 1,825,89,26 1,85,26, ,764, ,43,44 Legal reserve 137,1,579 11,661, 167 Foreign Currency reserves 47, 119, ,8,575 43,469, ,93, ,744,712,827 2,581,2,726 liabilities Unrestricted investment accounts unrestricted Investment accounts Owners' Equity Paid Up Capital 15 Retained earnings 16 owners equity liabilities and unrestricted Investment accounts & owners' equity Contra Accounts Letters of Credit Latters of Guarantee 1,398,88 5,362,1 4,22,576 5,362,1 5,619,456 The attached notes (1) to (23) form an Integral part of these financial statements Mohammed Ismail Mohammed Chairman Abdel Azim Mohammed Mohammed Director Isam Osman Mahgoub Saad Chief Executive Officer 19 Foreign currency reevaluation of revenue gains Other revenues 2 income Less :Staff cost 21 29,952,873 34,516,91 General and administrative expenses 22 43,586,94 36,21,684 6,681,61 5,69,527 Finance provision 961,629 1,413,823 Fines Bank of Sudan 133, 13,5 expenses 81, ,836,435 Net income Before zakat and taxation 473,45, ,334,241 Provision for Zakat (14,532,79) (13,579,49) Provision for tax (15,424,99) (9,457,119) 353,494,12 321, Depreciation less: Net Profit for the Year The attached notes (1) to (23) form an Integral part of these financial statements Mohammed Ismail Mohammed Chairman Abdel Azim Mohammed Mohammed Director Isam Osman Mahgoub Saad Chief Executive Officer

10 Isam Osman Mahgoub Saad Chief Executive Officer Abdel Azim Mohammed Mohammed Director Mohammed Ismail Mohammed Chairman The attached notes (1) to (23) form an Integral part of these financial statements 776,174,199 43,469,628 74,662,59 11,661,167 82,481, ,43,44 Cash and cash equivalents at the end of the year Balance at ,887,59 (36,265,58) 74,662,59 Cash and cash equivalents at beginning of year (3,224,55) 36,265,58 61,818,885 Transferred to paid up capital Increase (decrease) In Cash and Cash Equivalents (32, 129,87) 161,858,65 (28,152,697) 32, 129,87 Net cash flows from financing activities (18,181,447) Transferred (to) reserves (12,97,37) 321,298,73 Increase (decrease) in other assets 321,298,73 (24,48,693) ( 1,281,962) Increase (decrease) in credit balances and banks Net Profit (47, 119,723) (144,999,92) Increase in foreign currency valuation reserve (144,999,92) (32,129,87) (35,349,412) Transfer to legal reserve (36,265,58) Dividends (52,721,34) 599,876,46 Transfer to capital 322,566, 79 (76,64,64) 69,531,36 (75,574,223) 27,777,896 Retained earnings Balance at ,241,43 918,93,621 (151,213,94) 438,8,575 Net increase (decrease) in current accounts 47,119,723 15,846,721 Net increase in unrestricted investment account 137,1,579 96,15,174 Cash Flows From Financing: 296,764,744 (542,49, 738) Balance at (95,448,12) (52, 721,34) Net cash flows from (used In) Investing activities (51,523,535) (38,427,526) 52,721,34 Purchase of fixed assets Transferred to paid up capital 28,458 (35,349,412) 262,95 Sale of fixed assets (32,55,275) 35,349,412 (38,852,725) Increase in longterm investments Transferred (to) reserves 1,41,341 (47,119,723) (28,88,193) 47,119,723 Net increase ( decrease) in deferred sales receivables (46,17,727) Increase (decrease) in investments 9,657,374 Cash Flows From Investing: Reserves of foreign Currencies Rating 377,48, ,494,12 437,419,72 Net cash flows from operations 353,494, 12 (34,28) (18,85) Profit on sale of assets 31,424,48 48,842,725 Return on unrestricted investment accounts Net profit (85,7,97) (21,764,698) (91,536, 162) (21, 764,698) Tax and zakat paid 9,457,119 15,424,99 Provision for tax Dividends 13,579,49 776,174,199 14,532,79 43,469,628 Provision for Zakat 5,69,527 11,661,167 6,681,61 244,43,44 Depreciation of fixed assets Net Income adjusted by: Balance at ,298,73 Net income Legal Reserve 353,494,12 Cash Flows From Operations: Paid Up Capital 215 SDG 216 SDG Returned Earnings (GainLoss) Reserves of foreign Currencies Rating Statement of Cash Flows for The Year Ended 31st. December Statement of Changes in Equity for the year ended 31st. December,

11 2 21 A Complementary Notes to Financial Statements for the year ended 31st. December, 216 A Complementary Notes to Financial Statements for the year ended 31st. December, Foundation and the nature of the activity :Blue Nile Mashreq 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 1983.Capital of Mashreq 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. The Bank has a subsidiary company named Nile & Mashreq for Financial Services Co. The Bank acquired 6% percent of its equity shares; also the Bank acquired 4 % of equity shares of another company named Nile & Mashreq for Investment Co. which now has not any activity. 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 futures 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 commitments» with proof of the difference between the equivalent of naughty contract swap under «debit balances and other assets» or item payables and other obligations, so as unrealized profit I losses in the relevance to history contract swap, and balances are consume over the life of contract swap plus I or discount from the item «proceed on loans and bank balances» in the income statement, while gains (losses) resulting from the execution of acontract 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 is this the difference 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,evaluated at fair value at that date using a return price agreed upon, in those contracts and the 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 are turned 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 distributions dividends that relating thereto, and 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, incluing the government financial investments by nonmanaged invesment 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. 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 Sharia 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 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 23 Currency of Entry and Presentation Financial statements are presented in Sudanese Pounds currency which represents the enrollment of the bank. 2.4 Use of Estimates and Assumptions The preparation of financial statements requires the use of estimates and assumptions 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.

12 22 23 A Complementary Notes to Financial Statements for the year ended 31st. December, 216 A Complementary Notes to Financial Statements for the year ended 31st. December, 216 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 docments in the history of the evaluation, assessment and prove the statement of income differentials. The Bank discloses separately the assets in which have invested the money of owners of unrestricted accounts, and the money shared it with them, and its owned money. The investments divided into a partial which represent the current deposits, plus excess of capital ( 7 % ) & a total which reprsent investment deposit ( 3%) as shown in note Supporting of Owners of Unrestricted Accounts:The Bank does not supports the owners of unrestricted invesment accounts. 35 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 foreign currency exchange rate, and the differences will 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 relvant item within the limits already loaded on the statements of income accordance to the previous financial periods. 36 Evaluation of the Financial Investments Held to Maturity Bonds that purchased as a first issue will be evaluated at the rvised cost which represent the nominal value plus premium or excluding the release discount depending on the circumstances, the consumption of premium I 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 valuation of the 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 add it 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. 37 Evaluation of Financial 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 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. 38 Provision for Loan and Contingent Liabilities:The formation for loans and obligations of crossalone configurtion, in addition to thepercentage of the public of the risks calclated 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 administration experience and detailed studies for loan balances and contingent liabilities, Loans will be terminated in case of the futility of the actions taen the collection procedures according to the deduction against the provision, which is added to the proceeds of loans previously written off. 39 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. 31 Cash and Cash Equivalents:For the purposes of cash flows statement preparation, cash and cash equivalents for example: cash balances and balances in Cetral 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 includes.

13 24 A Complementary Notes to Financial Statements for the year ended 31st. December, 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 2.5% 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. 312 Investment & Finance Risk Provission :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, and according to directions & instructions of Bank of Sudan. There are two provisions for doubtful & bad debt, the first one is general which represent I% of portfolio and the second is private which depend on the percentage of debt (2% to I % ), the provision is evaluated every three months, there are movements between the two provisions, the amount of SDG 961,629 was added to the finance provision in year 216. The Bank is not writing off any bad debt in the year 216, the amount of SDG 1 2, was written off in year Sales Receivables and Deferred Installments: It is recorded in the time of their occurrence in real terms. 314 Processing Zakat and Taxes:The Bank is obligated to pay Zakat and taxes according to memos issued by the Zakat Chamber and the Office of Tax in Sudan. 315 Employees Benefits: Benefits of the personnel services determined by the Bank 316 Sharia Supervisory Board: Activity of the Bank is subject to the supervision of the Sharia Supervisory Board. There are no any transactions discrepant with Islamic Sharia & there is no any deposit outsidesudan. 317 The basis of profits distribution between owners equity and owners of unrestricted :investment accounts The Bank distributes monthly profits to owners equity and owners of unrestricted investment accounts, the payments will be in advance for the restricted & unrestricted deposit,7% for the owners of investment deposit & 3 % for the bank, from finance profits. 25 A Complementary Notes to Financial Statements for the year ended 31st. December, 216 (4) Financial Instruments and Related Risk Management (4/1) Financial Instruments (A) Financial instruments Financial instruments for the bank are financial assets and labilities, 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 due 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 the notes to the financial statements, the fair values of financial instruments are fundamentally different from their book values do not differ in the history of financial position. (C) Deferred Contracts :The Bank does not enter into futures 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. (4/2) 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.

14 13,74,853 2,779,346 21,31, ,715 74,96 5,346,76 9,74,736 8,242,51 161,577,218 1,683,467 51,256,784 1,96,143 1,216,158 8,393,776 6,362,154 9,74,736 Balance at Net book value as at Net book value as at ,138,559 3,844,433 2,878, ,921 4,754,345 9,872,92 Disposals 4,833,215 (46,944) (37,165} (75,621} ( 116,258) Additions (177,9) 1,1,638 73, ,417 59, ,43 162,924 Depreciation of year 25,13 5,67,423 1,511,633 58, , ,181 1,959,576 1,911, ,38 4,521,742 7,865,85 3,537,793 Balance at Depreciation: 1,268,39 2,259,432 2,864, ,715,777 5,527,9 54,135,337 2,916,64 5,97,53 18,265,868 9,74,736 11,195,369 Balance at (651,44) (37,165) (75,621) (116,258) Disposals (422,) 38,427, ,122 3,913,376 1,197,476 82,286 2,273,766 2,733,5 5,38,778 23,221,961 1,755,753 5,225,838 16,18,36 8,883,869 9,74,736 Balance at Cost : Additions 15,939,295 Computers Software Cars (D) The Risk of Net Assets & Liabilities in Foreign Currency :The Bank follow all directions & instructions issued from Bank of Sudan which related to assets and liabilities management in foreign currency, and the Bank earns profit from these transactions, the amount of SDG 25,561,56 in year 215 which represent foreign currency reevaluation revenue gains transferred to currency revaluation reserve in year 216 to meet the risk of net assets & liabilities in foreign currency. Land (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. (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. Examples include: Preparing credit studies on customers and banks before dealing with them and determining credit risk rates related thereto, 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. Furniture & Office Computers Generators Buildings Equips. A Complementary Notes to Financial Statements for the year ended 31st. December, Schedule of Depreciation of fixed assets for the year ended 31st December

15 9,783,989 (Bad) Provision for doubtful debts () Profits under collection Sales receivable ther investments 375,817,5 15,124,9 39, 941,95 1,98,622,771 Shahama Instruments of Liquidity Management Fund securities investments Securities 77,68,821 other investments 47,838,33 167,546,55 6,482,1 161,64,45 33,291,78 33,291,78 286,99, ,37, 77,68,821 16,382, ,225,514 Partial Profits under collection (Normal) Provision for doubtful debts () (Bad) Provision for doubtful debts () other investments Speculation 38,97,425 24,672,72 14,234,723 96,65,315 (32,114,351) (26,571) (1,251,177) 82,242,341 47,449,73 Grand 442,241 55,12,122 49,56,464 5,541,658 Partial 13,775,53 1,531,57, ,488,5 21,67, 536,881,5 973,81,792 (25,9,41) (2,17,377) (1,783,23) 1,1,972,62 956,364,724 54,67,878 Grand 1,267,488, ,838,4 17,285,6 368,552,8 881,649, ,649, ,432,297 7,217,482 Partial 12,39,116 1,385, ,872,44 96,459,6 4,321,4 92,138,2 22,412,444 22,412,444 22,858,74 17,554, Note to the financial statement at 31th. December ,569,639 Mogawala (Normal) Provision for doubtful debts () 33,214,35 Murabaha receivables ,481,394 74,662,59 Investments (7) ljara Partial ,38,99 Foreigners correspondents Sales Receivable (6): 4, Cash reserve with the bank of sudan 58,373,447 6,778,92 Cash reserve with the bank of sudan foreign 162,465,344 12,377,45 155,383, ,878, 199 Cash reserve with the bank of sudan local Bank of sudan current accountforeign 114,448, ,758,583 Bank of sudan current accountlocal 15,325,536 2,233,537 Cash in handforeign , SDG 88,75, SDG Cash in handlocal Cash and Cash Equivalents (5) : Note to the financial statement at 31th. December 216 1,541,227, ,298, 21,67, 46,691, 1,58,929,666 (3,96,64) ( 1,359,655) (11, ) 1,12,62,223 1,14,29,371 87,771,852 Grand 67,977,122 (585,965) ( ) (43,424) 61,95,58 6,927,72 Grand 28 29

16 3 216 SDG 215 SDG Longterm Investments: (8) Juba Investment Company SDG 215 SDG Current Accounts and Savings Accounts: (12) Local current deposits 679,371,858 75,53,55 1, 1, Local savings deposits 7,13,412 5,37,273 Banking Services Company 376, ,991 Foreign current deposits 378,788,53 55,412,594 Nile and Mashreq Financial Services Company 15, 15, Foreign savings deposits 1,75,869 1,1,363 Nile and Mashreq Investment Services Company 4, 4, Import foreign accounts 13,762,993 14,693,476 Blue Nile Bank Free Zone 71,3, 32,15,25 Export foreign accounts 1,694,47 1,19,88 71,93,991 33,78,266 1,81,823,232 1,233,37,136 4,226,965 3,356, ,31 437,517 Adjustment Seraj system 2,638, 182 Blue Nile Co., ltd. Accounts Payable : (13) Other Assets: (9) Margins of letters of credit Accrued revenue 39,62,869 34,442,1 Prepayments 1,719, ,553 Staff Loans 4,221,994 3,812,583 stationery inventory 133,572 4,466 Certified checks 17,73,921 2,182,961 Incoming transfers (Western Union) 329, 172 1,45,317 Social insurance 53,529 2,636 Unpaid dues 1,929,99 471, , ,687 Stamps Duty 22,3 1,69,389 Incentive for buying & selling foreign currencies 8,838,465 ATMs Surplus 39,54 28, ,568 4,84,67 148,77 317,582 24,72 Checking head & Branch Medical insurance Margins of letters of guarantee Return of export administrative Commission of Banking Services Company Branches under Construction: (1) 831,593 ATM adjustment 1,823, ,624 Kadogli 1,488,195 Personal income tax & free professions 1,53,11 1,796,43 Zalinge 964,513 3,745,496 28,46,952 Alsjana 17,61,223 I, 193,52 797,67 11,428,745 11,263,567 5,35, , 175, 181,13 181,13 Provision for tax 137,47,388 11,3,42 Aldyaeen 1,1,999 Provision for zakat 14,532,79 13,579,49 Al ahfad 5, 5, Contributing to Guarantee Bank Deposits Fund 3,38,887 3,184,152 Gedaref 13,958,833 3,851,411 Other provisions 2,427,96 3,685,125 Riyadh 793,253 13, Provision for bonus 8, 174,629 1,17,773 6,26,13 17, Unallocated profit 12,646 75,756 45, 177,62, ,766,824 26,543,49 28,95,73 Al Damazune Port Sudan Kassala Nyala Kosti Laybia Other Liabilities : (14) Provision for after service benefits Provision of certified auditors

17 SDG 215 SDG Capital: (15) Authorized: Blue Nile Bank (27 million), the value of stock shares 1.87 per SDG Blue Nile Bank (27 million), the value of stock shares 1.87 per SDG Paid up Capital: SDG 215 SDG Transfers commission 11,522,787 1,169,78 Letters' of credit commission 351,32,9 34,422,516 Letters of guarantee commission 253, ,386 Proceed of A TMs Services 45, ,346 Commission of customs collection 225, ,627 Checks collect commission 256, ,296 2,242,339 1,188,25 365,937, ,868, Means of communication 237, ,621 Sale of fixed assets profits 18,85 34,28 Miscellaneous 216,22 41,88 473, ,349 Salaries and wages 9,894,18 1,261,45 Revenues From Banking Services: (19) 54,9, 54,9, 296,764, ,43,44 Ledger Fees Balance at 1/1 43,469, ,566,79 Other Income : (2) Less: dividends (21,764,698) (144,999.92) Less: Transferred to capital (52,721,34) (36,265,58) Less : Foreign currency valuation reserve (47,119,723) 119,863, ,31, ,494, ,298,73 473,357, ,599,435 Less: transferred to reserves (35,349,412) (32,129,87) Retained earnings 438,8,575 43,469,628 Uniform allowance 1,698,77 2,186,854 Medical exps 2,53,571 2,687,26 Proceed of Shahama 83,24,143 83,26,861 After service benefits 869,59 3,319,95 Proceed of Liquidity Fund 2, 186,623 2,71,982 1,53,692 1,221,96 85,21,766 85,962,843 Staff Fund 56,64 58,482 Training 656,85 219,828 9,623,579 11,27,285 Grants and IncentivesMarriage 9,774,168 9,67,873 85,145 86, , ,387 Speculation profits 112,944,71 92,138, ,653,425 13,432,44 Vacation allowance 1,675,845 2,159,167 Travelling allowance 1,599,223 2,327,719 29,952,873 34,516,91 158,697,724 shares, value per share 1.87 SDG 13,54,494 shares, value per share 1.87 SDG Retained earnings: (16) Add: year profit Investment Securities: (17) Other Investment Income : (18) Ijara profit Longterm investment profits Insurance The Human Factor Cost : (21) Social insurance Overtime Special grants

18 SDG SDG General and Administrative Expenses : (22) 216 SDG 215 SDG Transactions with related parties : (23) Travelling & transportation exps. 2,236,76 1,116,465 Audit fees 175, 175, The type of relationship Maintenance and repairs 3,33,85 3,38,569 Insurance 814, ,79 Office supplies and computer expenses 2,118,169 1,17,87 Maintenance of vehicles 2,26,973 1,217,56 Meg Agricultural Company,Majority shares held by chairman Meg Exchange Company,Majority shares held by chairman Subscriptions 858,74 1,269,14 Hospitality and gratuities 58, ,46 Other 83, ,48 Water Electricity 66, ,19 Rent & rates 2,327,82 1,747,275 Commissions paid 517, ,893 Advertisment exps. 352,36 171,158 Telex, telephone and the Internet 1,886,988 1,78,15 Consulting & legal fees 127, ,95 Generator exps. 35, ,32 Management remuneration (Board of Directors' fees) 18,225,46 16,2,125 Commissions paid to Bank of Sudan 27,577 4,51 Automated Teller Machines exps. 863,253 51,26 Income tax 537, ,46 Guarding exps. 989, ,45 Contribute to Investment Deposit Guarantee Fund 3,38,887 3,184,152 Annual fee 331,984 89,68 Writtenoff debt 12,161 Administrative Expenses 43,586,94 36,21,684 Finance volume Balance as at 31/Dec Type of Transaction 71,3 15,559,563 Mudaraba 22, 22, Letter of Guarantee 93,3 15,779,563