CENTRAL BANK OF SEYCHELLES

Transcription

1 FINANCIAL STATEMENTS YEA ENDED DECEMBE 31, 2005

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3 Profit and Loss Account For the Year ended December 31, 2005 Notes Interest income 13 74,811,200 88,215,182 Interest expense 14 (34,427,378) (33,686,813) Net interest income 40,383,822 54,528,369 Other income 15 6,328,814 10,544,798 Other operating expenses 16 (17,297,981) (14,518,692) Profit before taxation 29,414,655 50,554,475 Taxation Net profit before appropriation 29,414,655 50,554,475 Transfer to General eserve Transfer to Government Consolidated Fund 7 29,414,655 50,554,475 The notes on pages 92 to 99 form an integral part of these financial statements. Auditors report on page

4 1. ACCOUNTING POLICIES The principal accounting policies adopted by the Central Bank are as follows: (a) Form of presentation The financial statements have been prepared in accordance with the legislation governing the Bank s operations - the Central Bank of Seychelles Act, All section references quoted refer to the latter Act. (b) (c) Basis of accounting The financial statements have been prepared under the historical cost convention modified where appropriate to include the valuation of certain assets. Foreign Securities Foreign securities other than treasury bills are stated at market value. (d) Seychelles Government securities Seychelles Government securities other than treasury bills are stated on the following bases: Treasury Bonds at nominal value Other securities at cost (e) Treasury bills Treasury bills, both foreign and local, are stated at cost plus accrued discount. (f) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is calculated to write off the cost of property, plant and equipment on a straight line basis over the estimated useful lives of the assets concerned. On this basis the rates of depreciation used are: Office Building Office Furniture and Equipment Office Machines Motor Vehicles - 1½% p.a. - 10% p.a. - 20% p.a. - 20% p.a

5 1. ACCOUNTING POLICIES (CONT D) (g) Income recognition Interest income and similar income are recognised on an accruals basis. Commissions on foreign exchange dealings are recognised based on the dates of transactions. (h) Foreign currencies Transactions denominated in foreign currencies are translated into rupees and recorded at the rates of exchange ruling at the date of the transaction. Balances in foreign currencies are translated into rupees at the exchange rates ruling on the balance sheet date. Net exchange differences arising on translation at the balance sheet date are dealt within the evaluation eserve Account in accordance with Section 28 of the Central Bank of Seychelles Act The exchange rate of the Seychelles rupee during the year and at year end is determined, in accordance with Section 26(1), by the Board of Directors of the Central Bank, and having due regards to the obligations that Seychelles has assumed in accordance with the provisions of any international monetary agreement to which it is a party or to which it has adhered. The following rates of exchange were applied at December 31, S.D.. 1 = US$ 1 = = J.P Yen 1 = CHF 1 = EUO 1 = ZA 1 = TANSTE TO GOVENMENT CONSOLIDATED FUND Transfer to the Consolidated Fund has been carried out in accordance with section 16(3), and section 28 (4) of the CBS Act SHAE CAPITAL Authorised 10,000,000 10,000,000 Paid up 1,000,000 1,000,

6 4. ESEVES evaluation General eserve eserves Account Total Total Brought forward 20,000,000 31,650,560 51,650, ,369,589 Transfer from profit P & L account Gain on revaluation - 42,671,503 42,671,503 1,405,905 20,000,000 74,322,063 94,322, ,775,494 Transfers to Government Consolidated Fund - (11,754,032) (11,754,032) (55,124,934) Carried forward 20,000,000 62,568,031 82,568,031 51,650,560 (a) (b) General reserve The general reserve has been established and maintained in accordance with section 16(1). evaluation reserve account The revaluation reserve account has been maintained during the year in accordance with section 28. Gains and losses arising from changes in the valuation of the Bank s assets and liabilities denominated in foreign currencies and other units of accounts as a result of alterations of parity of the Seychelles rupee have been credited or charged to this account in accordance with section CUENCY IN CICULATION Coins sold for numismatic purposes, with a face value of approximately 16,142,952 at December 31, 2005 ( ,132,442), have been excluded from currency in circulation since it is unlikely that such coins will be presented at any time for redemption. 6. DEPOSITS Government and Government related bodies 62,408,120 8,149,517 Banks 248,173, ,183,626 Pipeline Deposit Accounts (repayable on demand) 498,358, ,460,463 Other 20,660,272 8,257,428 Special 959, , ,560, ,992,

7 PAYABLE TO CONSOLIDATED GOVENMENT FUND Transfer from Profit and Loss Account 29,414,655 50,554,475 Transfer to evaluation eserves Account 11,754,032 10,724,934 Transfer from Special eserve Account - 44,400,000 41,168, ,679, OTHE LIABILITIES External borrowings account (Note 8(a)) 394,378, ,021,515 Other liabilities - 7,985, ,378, ,007,385 (a) External borrowings account External borrowings account is made up as follows: Mauritius Commercial Bank - 40,150,000 S.I.M.B.C. Nouvobanq (2005: NIL 2004 US$ 5,313,618) - 29,224,898 Bank of Tokyo (Euro 15,221,859) (Note 8(a)(i)) 99,141,487 - Bank of Tokyo Mitsubishi Ltd Syndicated Euro Loan (2005: Euro 45,329, : Euro 57,030,932) (Note 8 (a) (ii)) 295,236, ,646, ,378, ,021,515 (i) The loan is repayable over 5 years as from March 12, The interest rate is at LIBO % -95 -

8 8. OTHE LIABILITIES (CONT D) (ii) Bank of Tokyo Mitsubishi Ltd Syndicated USD loan This loan is secured over receipts from Indian Ocean Tuna, and is payable as follows: Tranche A: monthly instalments of Euro 559,625 in the first year monthly instalments of Euro 661,376 in the second year monthly instalments of Euro 814,000 in the third year Interest rate on Tranche A is LIBO % Tranche B: monthly instalments of Euro 339,167 in the first three years monthly instalments of Euro 1,187,085 in the fourth and fifth years Interest rate on Tranche B is LIBO + 3.5% 9. EXTENAL ESEVES Balances held abroad 308,640, ,784,785 Holdings of special drawing rights 6,587 6, ,647, ,791, SEYCHELLES GOVENMENT SECUITIES Year estructuring Bond 1,340,800,000 - Government of Seychelles 0% treasury bonds - 84,000,000 Other balances - 28,034 1,340,800,000 84,028, ADVANCES AND OTHE ACCOUNTS Advances to Government - 1,316,596,617 Other accounts 28,745, ,749,879 28,745,031 1,444,346,

9 12. POPETY, PLANT AND EQUIPMENT COST Building Office Furniture & Fittings Equipment Vehicle Total At January 1, ,939,932 2,430,671 4,122, ,535 31,941,335 Additions 29,747 91, , , ,129 Disposals (130,232) (130,232) At December 31, ,969,679 2,522,650 4,234, ,320 32,304,232 DEPECIATION At January 1, ,516,371 1,806,262 3,350, ,308 11,817,098 Charge for the year 374, , ,335 85,880 1,025,925 Disposal adjustment (84,651) (84,651) At December 31, ,890,916 1,958,427 3,763, ,537 12,758,372 NET BOOK VALUE At December 31, ,078, , , ,783 19,545,860 At December 31, ,423, , , ,227 20,124,

10 INTEEST INCOME Interest on foreign deposits with other banks 6,109,742 3,382,946 Interest on loans and advances to Government 2,436,604 83,841,141 Interest on Seychelles Government Securities 59,246,848 85,253 Others 7,018, ,842 74,811,200 88,215, INTEEST EXPENSE Interest on deposits 8,154,912 6,979,930 Interest on loans 26,272,466 26,667,886 Other interest expense - 38,997 34,427,378 33,686, OTHE INCOME Profit arising from dealing in foreign currencies 4,901,392 5,839,382 (Loss) / Gain on exchange (1,719,107) 2,940,691 Other miscellaneous income 3,146,529 1,764,725 6,328,814 10,544, OPEATING EXPENSES Depreciation charge 1,017,243 1,076,366 Other operating expenses 16,280,738 13,442,326 17,297,981 14,518, TAXATION The Central Bank of Seychelles is exempted from taxation under Section

11 18. CAPITAL COMMITMENTS Expenditure approved by the Board and contracted for amounted to 4.52 million at year end (2004: 3,500,254). 19. FOEIGN CUENCY SITUATION As at December 31, 2005, the Central Bank had a net external foreign liability amounting to 85,737,312 (2004: 306,229,758; 2003: 324,149,941) made up as follows: External assets 308,640, ,791, ,159,545 External liabilities (394,378,162) (494,021,515) (693,309,486) (85,737,312) (306,229,758) (324,149,941) 20. CONTINGENCIES At December 31, 2005, the Bank had given guarantees amounting to 44,000,000 (USD$8.0 million)(2004: 261,250,000 (USD 47.5 million)) to third parties