gracious the most merciful allah has permitted trade and ... report2.pdf · annual report 2015 1 in...

Annual Report 2015 1

In the Name of Allah The most Gracious The most Merciful

Holly Quran The Caw (275)

Allah has permitted trade and forbidden usury.

(275)

Annual Report 20152

COTENTS

Subject pageInformation about the Bank 3Vision 4Strategies & Objectives 5Board of directors members 7Shari’a supervisory board 8Executive management of the bank 9Head office & branches 10Correspondent banksChairman statement 12General manager statement 16Financial Indicator 18Shari’a supervisory board report 20Auditors report 21Balance sheet as at 31st., December, 2015 22Income statement for the year ended 31st., December, 2015 23Cash flow statement for the year ended 31st., December, 2015 24Statement of changes in owner’s equity 25Notes of the financial statements 26


about the Bank

Establishment 2006Commenced operation 4/May/2008Authorized share capital 100 Million DollarPaid Up Capital 100 Million DollarTel + 249 187 051000 + 249 183 741531Fax + 249 183 741517 + 249 183 741523P.o Box 424 Khartoum - SudanWeb Site: www.aljazeerabank.com.sdEmail [email protected] Code GSJBSDKH

Annual Report 20154

1. Eminent Sharia is our approach.2. Customers’ Satisfaction is our aim.3. Dealing with credibility and pioneering is our trend.4. Keeping up development and professional performance

is our method. 5. Profitability growth for Shareholders is our goal.6. Spirit of one team is our standard.7. Interaction with community requirements is our

commitment.

A comprehensive bank having an advanced position among the list of Banks in Sudan, and pioneer in providing diversity of products and quality of investing and commercial services.

Vision

Our Values


1. We Provide banking services, products and investments to the largest number of customers.

2. To Adhere to the highest international standards in respect of corporate governance & class supervision

3. To take pert in the economic development and infrastructure in Sudan as a whole & Al Jazeera State, which is a strategic partner and a shareholder of the bank, in particular.

4. To Promote the investment relations and trade exchange between Arabic and Islamic countries, and to make use of the available resources therein with specific emphasis on the investment and trade operations between Republic of Sudan and the Hashemite kingdom of Jordan.

Objectives

1. Achieve the highest returns for the bank’s owners, investors deposits and partners.

2. Lead the way in the diverse areas of commercial and investment banking business.

3. To benefit from the enormous investment opportunities enjoyed by Sudan.

4. Contributing in the construction development in the public and private sectors.

5. To work towards the promotion of the investment and commercial exchange between the Arab and Islamic countries in general and between Sudan and Jordan in particular.

6. To work towards fulfilling the ambitions and expectations of the monetary authorities, clients and staff.

Strategies

Annual Report 20156

Mr. Aamir Abdalwahab Alallawi

General Manager

H.E. Ayman Al Majali

Chairman

H.E. Ali M. Osman Yassin

Vice Chairman


Name Title AddressH/E Ayman Hazza’a Barakat Almajali Chairman Jordan

H/E Ali Mohamed Osman Yassin Vice chairman Sudan

Mr. Michael Faig Ibrahim Elsaigh Member Jordan

H/E Dr. Mohamed Jawad Fuad Hadeed Member Jordan

Mr. Hatim Abdalhai Yahia Abdulkareem Zaloum Member Jordan

Mr. Ahmed Osman Ahmed Member Sudan

Mr. Akram Abdulatif Hassan Gurab Member Jordan

Dr. Hamid Abdulghani Mohamed Gabr Member Jordan

Mr. Mohamed Khair Alzubair/Banking Expert Member Sudan

Ms. Muna Altayeb Mohamed Altayeb Board secretary Sudan

Board of Directors Members

Annual Report 20158

Sheikh/ Ibrahim Ahmaed Al Sheikh Eldareer PresidentProfessor/ Mohamed Elhassan Birema MemberProfessor/ Abd Alla Alzubair Abdu Alrahman Member

Shari’a Supervisory Board

Legal Auditor

Saif Aldeen & coCertified Accountants Financial Consultant

Office of HonoredAli Mohamed Osman Yassin

Legal Advisor


Mr. Thimer Qadri TawfigExecutive manager for Information Tech.

EMAD ISSA KHALEEL manager for Corporate Finance

Dr. Suleiman H. Al-kharabshehExecutive manager for precision and internal audit

Mrs. Muna M. SalihExecutive manager for Banking

Operations Dept.

Mrs. Aayad S. HaggarExecutive manager for Treasury

and investment Dept.

Mr. El sir AlKhider A.BashabAssistant General Manager for risk

Dr. Osama Mohamed Ali TambalDeputy General Manager.

Executive Management

Dr. Muna Eltayeb M. EltayebBOARD Secretary & Head of Legal Dept.

Annual Report 201510

1. Aljazeera Tower - Head Quarter & Main BranchAfrica Street - Aljazeera Tower Fax: 00249 183741525 Tel: 00249 187051000

2. Wad Madani- Aljazeera StateAlsuq Alkabeir - West Central bank of Sudan building Fax: 00249 5118832169 Tel:00249 187051244

3. Alsuk Alshabi - OmdurmanNorthern Alsinaat police station Alsinaat St.Fax: 00249 187560500 Tel: 00249 187051222

4. Alsaggana -KhartoumAlsaggana - Alnus St.Fax: 00249183 466213 Tel:00249 187051333

5. Bahri - Khartoum NorthKhartoum North Industrial Area -Facing Custom BuildingFax: . 00249 185345202 Tel:00249 187051266

6.Port Sudan- Port SudanFacing Red Sea UniversityFax: 00249311833232 Tel: 00249 187051255

7. Alsuk Almahali - KhartoumAlsuk Almahali - East of Alfouad specialize HospitalFax: 00249 183 403049 Tel: 00249 187 051277

8. Saad Geshrah Khartoum North Suk Saad geshraa- west of Atyar Alkadro St.Fax: 00249187 051288 Tel:00249 185 331177

9.Suk Libya -OmdurmanSuk Libya -Omdurman- west of Sudan ServicesOffice TEL+249 187 051233

10. Altaif -KhartoumBashir alnifidi st. th.west Jarash Hospital Fax: 00249 183 730000 Tel:00249 187 051300

11. Algadarif - Algadarif stateAlsuq Alkabeir - thous Central bank of Sudan building Fax: 00 249 441 844166 Tel:00249 187 051313

12. Alkalala -Khartoumsuq Alkalala - oppsite Police StationTel: Fax: 00249 183 722220 Tel:00249 187 051322

Head Office & Branches


Head Office & Branches

13. Alamrat -KhartoumMoh.najeeb St.Crossing 41 st.KhartoumTel: Fax: 00249 183 779900 Tel:00249 187 051344

14. 15.Alobied - Alobied StateAlsouq - Opposite the Justice BuildingTel: 00249 187 051355

15. 16.Almina Albary- KhartoumWest Land Port and South of Khartoum state Water StoresTel: 00249 187 051366

1. Aljazeera Tower - Head Quarter & Main BranchAfrica Street - Aljazeera Tower Fax: 00249 183741525 Tel: 00249 187051000P.O. BOX 424 Khartoum - SudanEmail: [email protected] side : www.aljazeerabank.com.sd

Soon after

Almawrada branch

Omdurman Central Station branch


Chairman Statement

In the Name of Allah, the Most Gracious, the Most Merciful

Chairman of the Board of Directors’ SpeechDear Brothers and Shareholders

On behalf of me and my colleagues the members of the Board of Directors, I would like to thank you very much for accepting the invitation and participating in the seventh annual meeting of the shareholders of Al Jazeera Sudanese Jordanian Bank which is dedicated to discussion of the Bank’s financial statements for the year ending on December 31, 2015. I submit to you the report of the Board of Directors along with the External Auditor’s Report and the report of the Sharia Supervisory Authority.

Brothers and Shareholders

The year 2015 has witnessed slowdown in the world’s economic growth which amounted 3.1 percent, 0.3 points lower than the growth rate of 2014, while the world economic activity is expected to accelerate slightly during 2016 and reach 3.4 percent. Various factors caused the world economic downturn including: the oil and primary commodities’ prices decline, political instability, slowdown of capital flows to emerging markets, and financial market volatility. There is a need for structural reform in many economies to increase productivity and ease production bottlenecks.

At the local level, Sudan continued to suffer during 2015 from the proliferation of the economic crisis resulted from the South Sudan secession. Despite of all programs and government efforts, economic hardship continued and directly affected all business sectors especially with the impacts of the economic, financial and banking sanctions imposed by America on Sudan since 1997, in addition to the shortage in foreign exchange and instability in the exchange rate of the Sudanese Pound to other currencies.

Dear Shareholders

Concerning the performance of your bank – Al Jazeera Sudanese Jordanian Bank- during 2015, and as shown in Board of Directors’ report submitted to you, prayers be to Allah, the Bank managed to achieve good and sustainable growth rates in all businesses of the Bank. The net after tax and Zakat profits in 2015 reached 75.2 million SDG increasing by 25.5 million SDG from 2014 level with a growth rate of 50 percent. This is due to the increase in the operations’ income and income from main activities included in the finance and investment portfolios.


On the operations cost side, it increased by 24 percent reaching 62 million SDG compared to 50 million SDG last year. The total operations cost to revenue ratio has reached 40 percent in 2015 compared to 44 percent in 2014.

The total assets of the Bank at the end of 2015 touched 1,394 million SDG increasing by 29.6 percent from its last year’s level, the customers’ deposits in 2015 amounted 8,478 million SDG increasing by 251 million SDG growing by 42 percent. In addition, the net financing portfolio jumped to 430 million SDG in 2015 compared to 348 million SDG in 2014 growing by 24 percent.

The total equity at the end of 2015 amounted 346.2 million SDG compared to 285.2 million SDG at the end of 2014 with a growth rate of 21.4 percent. In addition to that the Bank maintained an excellent capital adequacy ratio of 35 percent in 2015 compared to the minimum required ratio by the supervisory authority which is 8 percent. The Bank is classified satisfactory according to the Central Bank of Sudan assessment indicators. The Bank also achieved a return on assets of 4.9 percent while its return on equity reached 20 percent and the share profit was 0.38 SDG.

Dear Shareholders

In line with the plan to develop the Bank’s branches network, as we promised last year to exert efforts to established permanent branches in strategic locations and improve its image and furniture to suit the Bank’s reputation, these efforts resulted in the launching the new headquarter where we meet today. It is a distinctive architectural masterpiece that reflects the Bank’s development. The efforts also resulted in construction of Al Obaied branch in a piece of land owned by the bank and was started to operate on May 2015 to provide excellent services to the public. The Dry Port branch was also opened on October 2015. At the beginning of this year 2016, the Bank moved to the new headquarter at the same time main branch of Al Jazeera Tower was opened and the total number of the branches reached 16. The Bank also purchased a valuable piece of land in Port Sudan in addition to other piece in Omdurman market; the construction of these locations was included in 2016’s plan and budget.

Dear Shareholders

Under the current challenging global and local operation environment, it is very difficult to predict the political surroundings and consequences both domestically and globally, therefore we will continue our conservative policies in our operations. The Bank will continue to enhance its position in the Sudanese banking market and provide innovative solutions and services to its clients, thus we are confident that we will do the best during the coming years.

Dear Shareholders

Because of the excellent performance of the Bank in 2015, the Board of Directors


recommends distribution of 28 percent dividends equivalent to 57 million SDG and distribution of a 3.5 percent of free shares, which is 3,405,751 shares with a nominal value of 2,053 SDG for each share in the Bank’s capital.

Finally, on behalf of the members of the Board of Directors, I would like to thank the customers of the Bank for their continuous support and trust. Thanks are also due to the shareholders for their unlimited support, and to the staff and the management of the Bank for their sincere efforts exerted during 2015 and their commitment to achieve distinction. The Board of Directors also thanks the Central Bank of Sudan’s staff and the Capital Market Authorities and the Bank’s Sharia Supervisory Authority and external auditor for their efforts and guidance to the Bank.

Salamu Aleikum Wa Rahmat Allah

Ayman EL-Majali

Chairman, Board of Directors


The Bank invest in a strong structure & distinctive competencies with respect to information technology so as to provide the best services to its customers.

The Bank participated in supporting the national economy by financing the infrastructure and the various

economic sectors.

With regard to Individuals, the Bank introduced various funding programs such a

Emaar

Yashfien Wasaiel Ibdaa

Arzaq Flah


Prayer and peace be upon his messengers Prophet Mohamed and his family andcompanions.

Thanks to Allah, the Bank has continued its development and growth and sustained its excellent performance in various fields of work; this success, thanks to Allah, was achieved by unlimited efforts exerted by senior management and the entire Bank’s staff in different positions. Simple procedures and well trained staff as well as management system and adoption of modern technologies has contributed to the results achieved during the fiscal year ended on December 31st 2015 with a growth rate exceeded the planned levels. These results can be shown as follows:

On the Financial Side:

The Bank’s financial statements showed sustainable growth in the performances,analyzing the most important indicators revels the following:

yy The growth in equity was 22 percent.yy The growth in revenue was 40 percent and the growth in profits was 45 percent.yy An increase in total assets by 29 percent was achieved.yy Operational efficiency has increased by 33 percent.yy The Bank has the lowest non-performing loan ratio compared to all Sudanese

banks; the ratio has not exceeded 0.01 percent.yy The Bank was classified as “satisfactory” according to the evaluation indicators

issued by the Central Bank of Sudan.

On the management side:

The strength of the Bank revels in its ability to deliver special financial solutions that satisfies customer’s demand. We believe in diversity in customers’ needs and desires, therefore, we aimed to understand the nature of our clients’ businesses and their financial needs. Our objective is to satisfy our customers who are the base of the Banks success. We aim to attract the maximum number of clients, to increase the Bank’s market share and to strengthening its competitiveness. Hence, we developed our programs and technology to cope with all the development as well as introducing short messages services (SMS) and electronic tariff collection while the internet and mobile bank services will be launched during the year 2016 by the will of Allah.

To sustain the service quality that the Bank realized and despite of the limited and identical banking service all over the World the Bank’s policies aim to innovate and modernize its services. The financial policy of the Bank aimed at availing resources to develop the existing services and introduce new services that strengthen its competitiveness (Rayih Balak – “relax” program, a modern mechanism to expand credit to a large number of low income clients. Six other services have also been introduced: Eimar, Falah, Yashfeen, Arzag, Ebdaa, and Wasael). The most important mechanism followed by the Bank was focusing on accuracy, timely services and continues efforts to introduce services that satisfy the customers’ needs and ambitious. We have services submitted for approval and others under consideration

General Manager’s Speech


which will be introduced soon by the will of Allah (financing education, tourism andinstallment sales etc.).

Regarding the geographical spread and the expansion of the Bank’s branches network; an expansion policy will be adopted to increase the Bank’s service delivery in all of locations and branches play an important role here. This policy aims to achieve basic coverage and presence in the main locations in Khartoum as well as in the states and main cities (Medani, Port Sudan, Gedarif etc.). In a very short period, the number of the Bank’s branches reached 16. During this year, Al-Obaid branch in North Kordofan State and The Dry Port branch in Khartoum were launched and additional branches will be planned after the preliminary stage of the targeted areas and on based some criteria key among them is economic feasibility, the possibility of market outreach and increasing the market share, growth and making profit by each branch alone. We hope that the Bank covers all the country soon.

After the accomplishment and moving to the main office in Aljazeera Tower, the Bank will establish additional distribution channels to support its branches in the same area, the number of ATMs as efficient mean of spread will be raised, currently the Bank has 20 ATMs in its branches and 17…. and 3 external locations, we hope to expand to well-studied and feasible locations inside and out of Khartoum.

To improve the performance and to cope with the developments the operation regulations and working systems was developed. On the organizational structure, the bank’s the monitoring unit was developed and separated from the local finance and was put under the senior management also the engineering and administrative units were separated and considered a unit and added to the installment sales unit and branches and upgraded to directorate.

On the human resource side, the system was developed and activated which helped in improving the performance, a proposal for the staff vacations was also approved to exclude the vacations from the net working days, and the management has also supported the administrative structure of the Bank and recruited highly qualified staff with expertise in all professional levels to enhance operational efficiency. And in the area of training and performance improvement the Bank participated in 256 workshops, training events and conferences in which 199 members of the staff participated. The Bank implemented 80 percent of its plan including participation in training events inside and outside the country.

Finally, I would like to thank the Board of Directors and the Shareholders and all the institutions contributed to this success on top of which the Central Bank of Sudan. Thanks indeed to our brothers in the executive management who exerted extensive efforts to enhance the performance, working as one team inspired by the loyalty to the Bank which enabled them to achieve this success. I wish them all the success in the future.

Aamir Abdulwahab Al-Alawi

General Manager


Financial Indicator (2011-2015) : Millions SDG

Total Assets Millions SDG

Total revenue MillionsSDG

Net sales receivables Millions SDG

1.084.1

849.3

707.4

415.3

2011201220132014

114.6

80.8

49.4

32.9

2011201220132014

348٫4

268٫6

154٫1

47٫8

2011201220132014

1.394.4

2015

156٫2

2015

429٫8

2015


current and saving Millions SDG

Total owners› equity Millions SDG

Current Accounts Millions SDG

64٫6

39٫5

19٫512٫8

2011201220132014

2011201220132014

285٫2259٫8

227٫2

172.7

2011201220132014

596٫7

452٫7

349٫1

173٫6

94٫1

2015

346٫2

2015

847٫7


Shari’a Supervisory Board Report

Report of the Sharia Supervisory Board to the General Assembly of Shareholders of Al-Jazeera Sudanese Jordanian Bank for the fiscal year - January 1st to December 31st

2015

Praise be to Allah and all blessings and peace to our Master Mohamed, his family,companions, and those who follow them.

Following the regulatory standard of financial institutions No. (1) of the Sharia Supervisory Board issued by the Council of Islamic Financial Institutions Accounting and Auditing (Bahrain), the Sharia Supervisory Board submits the following report to the Shareholders’annual Meeting:

1- The Sharia Supervisory Board has reviewed all the investment contracts submitted to itand advised all necessary corrections in the contracts. 2- The Board has reviewed the balance sheet for the year ending at 31/12/2015 and the income statement of the year ending at December 31st, 2015, the notes related to these financial statements and to the external auditor’s report, in addition the Board has listened to clarification of the Bank’smanagement for what is reported in the financial statements and remarked on it as in its minutes. 3- The management is responsible for the Bank’s compliance with Islamic Sharia Principles, while the Supervisory Board is responsible for offering an independent opinion based onits review of the Bank’s operations and reporting to your meeting.

4- The Board has monitored the operations of the Bank during 2015 and pleased to decidethe following:

A- All the contracts and operations accomplished by the Bank during the year ending atDecember 31st, 2015 and reviewed by the Board were compliant with the Sharia principles. B- The profits and loss sharing of investment accounts was in compliance with what isagreed on by the Board and according to Sharia principles.c- The Board insured that illegal earnings were spent in honorable activities.

5- The Zakat: The Zakat was calculated according to the Sharia principles and Zakat Chamber’s guidance.Shari׳a Supervisory Board decides, as the bank transactions executed during the year to the provisions of Islamic law and its principles. Our thanks go to the management of the bank for their cooperation and calling for God to bless their efforts and increase them of His bounty..

The Sharia Supervisory Board

Shaikh Ibrahim Ahmed El Shaikh El Darir HeadProf. Abd Alla Alzubair Abdu Alrahman Member Dr. Abd Alla Alzubair Abdu Alrahman Member

الرئا�صـــة ـ �صــارع الزبير با�صــا مع تقاطــــع �صــارع الق�صر ـ هاتف : 000 051 187 249 + فاك�س: 517 741 183 249 +

الفرع الرئي�س: هاتف: 107 051 187 249 + ، فاك�س: 213 741 183 249 + فرع اأمــــدرمــان: هاتف: 222 051 187 249 + ، فاك�س: 500 560 187 249 +

فرع ال�صــجانة: هاتف: 333 051 187 249 + ، فاك�س: 213 466 183 249 + فرع بحـــــــــــري: هاتف: 266 051 187 249 + ، فاك�س: 213 466 183 249 +

فرع ودمــدنــي: هاتف: 244 051 187 249 + ، فاك�س: 169 832 511 249 + فرع بورت�صودان: هاتف: 255 051 187 249 + ، فاك�س: 232 833 311 249 +


Statement of Financial Position As of December, 31, 2015

Description Note 2015 2014ASSETSCash & Cash Eqivalent 3 271,953,390 247,238,189SWAP Deposit with CBOS 4 96,450,000 94,549,500Sales Receivables 5 429,843,346 348,397,909Investments 6 185,363,149 119,806,578Investments (Capital Conribution) 7 7,112,700 7,112,700Other Investments 8 225,627,884 138,000,000Sundry Debtors 9 2,436,778 2,657,248Other Assets 10 19,451,148 11,502,231Formation Expenses 11 2,836,236 3,995,931Fixed Assets Under Construction 12 58,514,906 32,469,891Net Fixed Assets 13 94,893,429 78,386,162

1,394,482,966 1,084,116,339 LIABILITIES, UNRESTRICTED INVESTMENTSACCOUNTS AND OWNER›S EQUITYLIABILITIESCurrent Accounts & Saving Accounts 14 605,195,981 452,506,228Sundry Creditors 15 68,232,132 86,755,735Other Liabilities 16 46,887,743 30,225,744Total Liabilities 720,315,856 569,487,707Unrestricted Investment Accounts 17 242,665,563 144,223,777SWAP Deposit with CBOS 85,224,000 85,224,000Total Liabilities & Unrestricted Investment Accts 1,048,205,419 798,935,484OWNER›S EQUITYPaid up Capital 18 198,340,191 168,084,908Statutery Reserve 20,989,822 13,470,538SWAP Revaluation Reserve 19 58,076,849 56,176,348Retained Earings 20 68,815,361 47,449,061Total Owner;s Equity 346,222,223 285,180,855

Total Liabilities , Unrestricted Investment Accts & Owner›s Equity 1,394,427,642 1,084,116,339

Contra Accounts 21 120,204,503 53,064,987The Attached notes from an integral part of these Financial Statements

Ayman Hazzaa Almajali Ali Mohamed Osman Yasin Amir Allawi Chairman Deputy Chairman General Manager


Income Statement For the year ended, December, 31, 2015

Description Notes 2015 2014RevenueIncome Deffered Sales 22 90,798,131 74,475,564.00Income from Investments (Shahama) 40,230,730 15,560,182.00Income Bank Own Investments 23 15,436,514 10,159,036.00

146,465,375 100,194,782.00LessReturn on Unrestricted investments (23,374,631) (13,236,209.00)

Bank Shere in Income as Mudareb & Fundowner 123,090,744 86,958,573.00AddIncome from Banking Services 24 27,650,763 24,037,344.00Other Income 25 4,747,222 3,106,294.00Income from Capitalized 1,046,050 753,344.00Revenue from Foreign Currency Translation (289,428) (223,483.00)

33,154,607 27,673,499.00Total Income 156,245,351 114,632,072.00ExpensesHuman Resources Cost 26 33,370,147 28,375,360.00General Adminstrative Expenses 27 22,592,645 16,292,782.00Depreciation 4,362,064 3,435,328.00Amortization 1,159,694 1,159,753.00CBOS Penalty 48,000 7,000.00Provision for Finance Risks 625,218 730,485.00Total Expenditure 62,157,768 50,000,708.00Net Profit Before Zakat & Tax 94,087,583 64,631,364.00LessProvision fro Zakat 3,436,218 2,949,462.00Provision for Business Profit Tax 15,458,522 12,074,793.00Net Income 75,192,843 49,607,109.00

Earning Per share (SDG) 0.38 0.3

The attached notes form an integral part of these Financial statements



Statement OF Cash Flows FOR the year ended, December, 31, 2015

Description 2015 2014Cash Flows From Operaion ActivitiesNet Income 75,249,167 49,607,109AddDepreciatin 4,343,610 3,435,328Amortization 1,159,694 1,159,752Previous Year Adjustments (924,334) (415,480) Cash flows from operation before changing in wcapital 79,828,137 53,786,709net (Increase) Decrease in sales receivables (81,445,437) (79,768,487)Decrease/increase in sundry debtors 220,470 165,222decrease/increase in sundry Creditors (18,523,603) 52,033,214decrease/increase in other liabilities 16,661,999 13,369,218net increase (decrease) in unrestricted investment 98,441,786 18,520,258increase/decrease in other assets (7,948,917) (920,799)net increase (decrease) in current accounts 152,689,753 125,544,465

160,096,051 128,943,091Net Cash Flows from Operating Activities 239,924,188 182,729,800cash flows from (used in) invesing Activitiesdecrease (increase) in investments (65,556,571) (72,000,000)decrease (increase) in short term investments (87,627,884) 4,454,888Purchase of fixed assets (20,886,523) (7,381,674)Sales of fixed assets 34,648 1,243,422fixed assets under construction (26,045,015) (7,647,633)

cash flows from (used in) invesing Activities (200,081,345) (81,330,997)Cash Flows From Financing ActivitiesSales of fixed assets 30,255,283 0cash Dividands (45,382,925) (29,414,859)Net cash flows provided by Financing activities (15,127,642) (29,414,859)increase /decrease in cash & cash eqivalent 24,715,201 71,983,944cash & cash eqivalent at beginning of year 247,238,189 175,254,245cash & cash eqivalent at the end of year 271,953,390 247,238,189


The Attached notes from an integral part of these Financial Statements



Descriptions Paid upcapital

StatuteryReserve

Diff ofexchange Retained

Totalreserve earnings

Balance as at 1-1-2014 168,084,908 8,509,827 51,037,350 32,217,521 259,849,606

net income 44,646,398 44,646,398

cash destribution 2013 (29,414,858) (29,414,858)

SWAP diff reserve 5,139,000 5,139,000

Statutery Reserve 4,960,711 4,960,711Balance as at 31-12-2014 168,084,908 13,470,538 56,176,350 47,449,061 285,180,857net income 75,192,843 75,192,843Cash destribution 2014 (45,382,925) (45,382,925)Tax for 2014 (924,334) (924,334)SWAP diff reserve 1,900,499 1,900,499Statutery Reserve 7,519,284 (7,519,284) 0Free Shares 30,255,283 30,255,283balance as at 31-12-2015 198,340,191 20,989,822 58,076,849 68,815,361 346,222,223

Statement of changes in Owners› Equity For the year ended 31/12/2015


Notes to the financial statements

as at 31/12/ 2015

1/ Status and operation:Aljazeera Sudanese Jordanian bank was established in august 2006 under the company’s ordinance

1925 registration certificate no .28581 in accordance with central bank of Sudan license no .11/2008.

To rend commercial ,financial ,agricultural and business consultancy services and etc .all banking activities ,

And to apply bank financial resources in accordance with the Islamic models of finance.

2/ Significant accounting policies:The financial statements has been prepared under the historical cost convention in accordance with

Central bank of Sudan directors, accounting and auditing standards and accounting and auditing organization of Islamic financial institution (AAOIFI).

2-1/ Revenue Recognition :-Deferred sales receivable profits are recognized on settlement.-The bank commission is recognized as revenue when rendering bank service.-the earning purchase is recognized when reported by general meeting of shareholder of the company .- Interest received from foreign correspondents is kept in a separate account and disposed off according to sharia board fatwa .2-2/Fixed Assets: Fixed assets are valued at cost less accumulated depreciation ,routine repairs and maintenance are treated as expenses when incurred .

Depreciation has been charged to write off assets value over their estimated useful lives on an annual basis using the straight line method applying rates ranging between (2.5 to 30%).

Addition during the year depreciated at 50% of the relevant cost irrespective of the date of acquisition.

2-3/Foreign currency translation :

a- Transaction in foreign currency are recorded at exchange ruling rate at the date they take place any differences are treated in the profit and loss account.

b- Assets and liabilities in foreign currencies at balance sheet date are translated to Sudanese pounds at the exchange ruling rate at that date and any differences in exchange are treated in the profit and loss account.


2-4/ Capitalized expenditure :Amortization within ten years.

2-5/Investment s:

Short term investment is recorded at its actual value and revalued at the date of financial Statement at the fair value .difference in value will be located to profit and loss account.

2-6/Return on investment deposits :

1- The return on investment deposits is calculated on the basis agreed upon by the bank Management and the Islamic sharia board.

2- It is considered that all investment deposits are completely used in the bank invest-ment Operations before the bank start to use its own resources .

3- The owners of the investment deposits share in all revenues from bank’s investment Operations except revenues from banking services and other revenues.

2-7/Provision for doubtful debts:

The provision for doubtful debts is to be charged according to the central bank of Su-dan instructions.


Note No (3) Cash & Cash Eqivalent 2015 2014Cash Acc Local 37,008,792 16,546,493Cash Acc Foreign 7,212,722 5,874,700CBOS Current Acc Local 60,437,488 88,088,567CBOS Current Acc Foreign 36,824,624 32,785,097CBOS Statutory Reserve Local 93,051,950 64,495,799CBOS statutory Reserve Foreign 9,675,195 5,658,466Correspondants 27,742,619 33,789,067

271,953,390 247,238,189Note (4) SWAP Deposit with CBOS 2015 2014

96,450,000 94,549,500Note (5) Sales Receivables 2015 2,014Murabaha 402,699,649 351,545,269Ejarah 82,585,124 42,539,181Mukawala 25,225,247 39,232,940

510,510,020 433,317,390Profit Sales Receivables (75,531,901) (80,575,995)Provision for doubtful recevables (5,099,267) (4,323,920)Provision for bad recevables (35,506) (19,566)

429,843,346 348,397,909Note (6) Investments 2015 2014Musharaka 29,250,000 2,250,000Mudaraba 12,000,000Less Provision for doubtful debts (412,500) (22,500)Net Musharaka 40,837,500 2,227,500 Bank Notes 2015 2014Bank Notes 138,282,934 110,529,550.00Other Types of Receivables 2015 2014Portfolio 5,670,017 5,979,845Merchandise 629,398 1,682,452Less Provision for douptful debts (56,700) (636,351)Total 6,242,715 7,025,946Total Investments 185,363,149 119,782,996

Notes to the Accounts


Note (8) Other Investments 2015 2014

Finance Investment Bank Deposit 86,000,000 35,000,000Al Baraka Bank Deposit 35,000,000 26,000,000Faisal Islamic Bank Deposit 35,000,000 0Al Rowad Bank Deposit 10,000,000 10,000,000Sudanese Frensh Bank Deposit 30,000,000 20,000,000Bank of Khartoum Deposit 0 20,000,000Investment Portfolio 0 15,000,000Lequidity Management Fund 29,627,884 12,000,000

225,627,884 138,000,000Note (9) Other Debtors 2015 2014Althagib Company - CBOS 2,436,778 2,657,248

Note (10) Other Assets 2015 2014Accrued Income 14,678,901 6,078,322Payment in Advance 2,410,078 1,161,544Staff Loan 1,649,194 1,413,916Stock of Statioary 710,676 760,824Local fund for Foreign Curr - CBOS 0 2,055,828Fageery Carton Factory ( Diff of Exchange) 2,299 31,797

19,451,148 11,502,231Note (11) Capitalized Expenditure 2015 2014Balance as as !-1-2014 11,086,581 11,086,581Amortization (8,250,345) (7,090,650)

2,836,236 3,995,931Note (12) Fixed Assets under Construction 2015 2014Office Furniture 463,088 39,780Cost of Computer Software 4,802,813 590,232HQ Building & Obied Branch Building 43,760,380 31,381,239ATM Machine 0 458,640Electrical Machinary 6,778,375Furniture 1,420,000Photo & Persentation Tools 1,290,250 0

58,514,906 32,469,891



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Note (14) Current & Saving Accounts 2015 2014Current Deposits Local 497,997,312 386,526,270Current Deposits Foreign 50,725,974 28,092,830Saving Deposit Local 52,939,831 35,451,102Saving Deposit Foreign 3,532,864 2,436,026

605,195,981 452,506,228Note (15) Accounts Payables 2015 2014Bills Payables Local 25,194,719 13,020,503Bills Payables Foreign 181,294 105,580Exports Accounts 1,112,089 9,734,930Exports Accounts for Drugs 0 2,119,536Import 1,579,620Margin on L/Cs 3,352,855 8,995,078Margin on L/Gs 1,933,421 495,311Accrued Expenses 1,745,530 855,607Capital Of Musharaka 21,677 0capital Of Mudaraba 1,776,620Cost of Software and Tools 118,174Ushan Company - CBOS 20,374,921 24,518,3712013 Profit Contributions 9,772,912 25,386,949Blue nile Bank Deposit under adjustment 146,460 177,708ATM Liability Under Adjustment 856,991 542,774Customer›s Transfer under Adjustment 138,073 651,564Teller Insurance 44,950 33,650

68,232,132 86,755,735Note (16) Other Liabilities 2015 2014Provision for Zakat 2014 2,949,462 2,949,462provision for Zakat 2015 3,436,218 0Provision for Tax 2014 1,074,793 12,074,793Provision for tax 2015 15,402,198 0 Provision for After service penefit 24,340 60,462Audit Fees 108,000 97,881Provision for Invester Deposits 12,892,732 5,743,5882013 Board of Director Incentive 0 1,369,5582012 Workers Bonus 11,000,000 7,930,000

46,887,743 30,225,744



Note (17) Equity of unrestricted Invstments A/cs. 2025 2014Deposit for 3 month 57,754,012 27,558,866deposit for 6 month 3,548,658 883,354Deposits for Year 181,362,893 115,781,557

242,665,563 144,223,777Note (18) Capital 2015 2014Authorized Capital (100,000,000 USD) 205,333,333 205,333,333Paid Up Capital (82,664,708 USD) 168,084,908 168,084,908Free Shares 30,255,283 0

198,340,191 168,084,908Note (19) Revaluation Reserve 2015 2014Balance of swap deposit CBOS 56,108,089 50,969,088Balance of swap deposit CBOS-2014 1,900,500 5,139,000Sahres foreign ecxchange diference 68,260 68,260

58,076,849 56,176,348Note (20) Retained Earnings 2015 2014Balance as at 1-1-2015 47,449,061 32,217,521 Capitalized/Dividands (45,382,925) (29,414,858)Tax 2013 (924,334) 0Retained Earnings 1,141,802 2,802,663Current year Profit 75,192,843 44,646,398

76,334,645 47,449,061Note (21) Contra Accounts 2015 2014Letter of Guarantee 1,799,153 8,895,660Letter of Credit 25,320,379 2,979,475Cheque Under Collection 1,084,971 1,189,852Restricted Investment Deposit (Note 22 A) 92,000,000 40,000,000

120,204,503 53,064,987Note (21 A ) Restricted investment account 2015 2014Beginning Balance 40,000,000 40,000,000Addition 52,000,000 0Withdrawls 0 0Balance end of Year 92,000,000 40,000,000Bank Profit 2,028,165 2,105,511




Note (22) Income Of Deffered Salaes 2015 2014

Murabaha 69,969,738 59,234,637Ejara 9,177,114 0Moqawala 9,027,782 7,998,389Musharaka 2,299,218 0Others 324,278 7,242,538

90,798,131 74,475,564 Note (23) Bank›s income from its owninvestment 2015 2014

Sudanese French Bank Deposit 4,516,049 400,000Faisal Islamic Bank deposit 1,129,244 32,874Financial investment Bank Deposit 5,165,300 9,726,162Alrwad Bank Deposit 1,000,000Bank of Khartoum Deposit 680,547Baraka Bank Deposit 2,945,374Total 15,436,514 10,159,036Note (24) Income from banking services 2015 2014Commission on transfers 328,215 241,991Commission on L/Cs & Collections 20,784,404 19,888,960Commission on L/Gs 1,363,991 223,144Commission on ATM & swift 319,329 276,195Commission on ledger fees 3,045,747 2,735,035Foreign exchange profit 1,809,077 672,019Total 27,650,763 24,037,344Note (25) Other Revenues 2015 2014Madani Branch building Rent 383,684 182,445income from disposal of fixed assets 30,427 213,183insurance commission 657,370 879,677commission on solvancy certificate 683,590 44,681 income from legal 66,664 41,235commission on RD chq & counter chq 1,255,166 113,306commission on acc statements 28,553 22,270safe security 20,850 11,450commission on Files open 999,904other commission & income 1,620,918 598,143Total 4,747,222 3,106,294


Note(26) Human Resources Cost 2015 2014Salaries 11,453,390 9,496,726Travelling Tikits 8,222,766 1,922,599Annual Periodicity allowance 454,591 5,101,648Workers Bonus 5,986,987 5,243,838Social Insurance 2,577,853 2,232,199After services benefit 145,169 117,414Medical 952,182 841,077Training 611,448 294,135Overtime 816,645 539,332Contracter›s travelling tikits 536,963 936,777Contacters House Allownce 828,510 808,643Contracter Taxation 783,643 840,972Total 33,370,147 28,375,360Note (27) General Adminstrative Expenses 2015 2014Fixed assets & cash insurance 262,587 355,069Stationary 330,998 219,198Printing 155,724 68,677Electricity & Water 665,115 505,705Rent 2,405,849 2,137,068Magazine & journals 19,913 18,982Portage & Packing 83,450 58,205Security Exps 907,745 673,460Cleaning 540,991 346,642Postage & Phone 652,497 503,349Entertainment 485,360 303,433Other Expenses 19,158 31,279Consultancy Exps 1,030,398 703,717Donations 200,000 199,519Advertizing Exps 1,990,212 1,090,229Travelling 348,785 264,793Clearing exps 80,062 56,794Board of Director Exps 685,438 1,171,156Board of Director remuneration 5,788,597 2,930,000Bank deposit guarantee fund 1,373,717 894,653subcription of financial organizations 342,122 311,435cash sorting exps 107,937 95,128



Commission paid to CBOS 69,294 15,669Audit Fees 150,000 150,000Audit Fees Tax 25,500 25,500Local service fees 135,717 85,750Repair & Maintenance 493,112 425,316Operating & transport exps 541,634 466,088ATM & Computer Maintenance exps 2,583,915 2,008,230Commission paid to correspondent 72,015 162,312Bad Debts 20,518stamp students support 24,285 15,426Total 22,592,645 16,292,782

Note (28) Related Parties TransactionsDescription Total Finaance Balance Type

Deputy chairman Co investors 6,233,334 1,499,687 MurabahaDeputy chairman Co investors 12,000,000 12,000,000 MudarabaBoard of Directors Co investors 3,133,961 3,018,004 MurabahaBoard of Directors Co investors 11,093,900 6,552,911 MurabahaBoard of Directors Co investors 1,973,189 468,766 EjarraBoard of Directors Co investors 27,871,911 14,358,247 MugawalaTotal 62,306,295 37,897,615



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