Consolidated Financial Statements and Independent Auditor's Report
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Consolidated Financial Statements and Independent Auditor's Report “Hayastan” All Armenian Fund December 31, 2015 “Hayastan” All Armenian Fund Consolidated financial statements December 31, 2015 Contents Page Independent auditor’s report 1 Consolidated statement of financial position 3 Consolidated statement of comprehensive income 4 Consolidated statement of changes in net assets 5 Consolidated statement of cash flows 6 Notes to the consolidated financial statements 7 “Hayastan” All Armenian Fund Consolidated financial statements December 31, 2015 “Hayastan” All Armenian Fund Members of the Board of Trustees as of December 31, 2015 1. Serzh Sargsyan RA President, President of the Board of Trustees 2. Robert Kocharyan RA Ex-president 3. Bako Sahakyan NKR President 4. Arkadi Ghukassyan NKR Ex-president, Vice President of the Board of Trustees 5. Gagik Harutiunyan Vice President of the Board of Trustees, Chairman of RA Constitutional Court 6. Galust Sahakyan Speaker of RA National Assembly 7. Hovik Abrahamyan RA Prime Minister 8. Eduard Nalbandyan RA Minister of Foreign Affairs 9. Arayik Harutyunyan NKR Prime Minister 10. Arthur Djavadyan Chairman of RA Central Bank 11. Gagik Khachatryan RA Minister of Finance 12. Hranush Hakobyan RA Minister of Diaspora 13. H.H. Garegin II Catholicos of All Armenians 14. H.H. Aram I Catholicos of the Great House of Cilicia 15. Nerses Petros XIX Tarmouni Catholicos Patriarch of the Armenian Catholic Church 16. Very Rev. Mkrtich Melkonian Representative of the Armenian Evangelical Church 17. Mike Kharapian Representative of the Armenian Ramgavar Azadagan Party 18. Vagharsh Ehramdjian Representative of the Armenian Revolutionary Federation 19. Aram Maleyan Representative of the S.D. Hunchakian Party 20. Hirair Hovnanian President of the Armenian Assembly of America 21. Berge Setrakian President of the Armenian General Benevolent Union 22. Viki Marashlyan Representative of the Armenian Relief Society 23. Arsen Ghazaryan President of the Union of Manufacturers and Businessmen (Employers) of Armenia 24. Jerry Manoukian President of Armenian Medical International Committee 25. Charles Aznavour France 26. Albert Boyajian United States of America 27. Vartan Gregorian United States of America 28. Eduardo Eurnekian Argentina 29. Bedros Terzian France 30. Dikran Izmirlian Switzerland 31. Samvel Karapetyan Russia 32. Mark Geragos United States of America 33. Kabriel Ghenberdji Syria 34. Vatche Manoukian Great Britain 35. Albert Boghossian Switzerland 36. Diruhi Burmayan Brazil 37. Eduardo Seferian Argentina Control committee 38. Ara Aslan France 39. Gagik Khachatryan Minister of Finance of the Republic of Armenia Independent auditor’s report ¶ñ³Ýà ÂáñÝÃáÝ ö´À ÐÐ, ù. ºñ»õ³Ý 0012 ì³Õ³ñßÛ³Ý 8/1 Ð. + 374 10 260 964 ü.+ 374 10 260 961 Grant Thornton CJSC 8/1 Vagharshyan str. 0012 Yerevan, Armenia T + 374 10 260 964 F + 374 10 260 961 www.grantthornton.am To the Board of Trustees of “Hayastan” All Armenian Fund We have audited the accompanying consolidated financial statements of “Hayastan” All Armenian Fund and its subsidiary, which comprise the consolidated statement of financial position as of December 31, 2015, and the consolidated statement of comprehensive income, consolidated statement of changes in net assets and consolidated statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. ²áõ¹Çï, гñÏ»ñ, ÊáñÑñ¹³ïíáõÃÛáõÝ Audit, Tax, Advisory ¶ñ³Ýà ÂáñÝÃáÝ ÆÝûñÝ»ßÝÉÇ ³Ý¹³Ù Member of Grant Thornton International Ltd An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design 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 consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements give a true and fair view of the financial position of “Hayastan” All Armenian Fund and its subsidiaries as of December 31, 2015, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. May 5, 2016 Gagik Gyulbudaghyan Emil Vassilyan, FCCA Managing Partner Engagement Partner ²áõ¹Çï, гñÏ»ñ, ÊáñÑñ¹³ïíáõÃÛáõÝ Audit, Tax, Advisory ¶ñ³Ýà ÂáñÝÃáÝ ÆÝûñÝ»ßÝÉÇ ³Ý¹³Ù Member of Grant Thornton International Ltd “Hayastan” All Armenian Fund 3 Consolidated financial statements December 31, 2015 Consolidated statement of financial position In thousand drams As of As of December 31, December 31, Note 2015 2014 (restated) Assets Non-current assets Property and equipment 4 2,629,135 245,946 Intangible assets 375 679 Deferred income tax assets 10 - 5,166 Minimum profit tax prepayement 10,666 10,666 2,640,176 262,457 Current assets Inventories 5 961,537 292,416 Accounts receivable and advances 6 1,808,603 554,890 Current income tax assets - 4,826 Term deposits 7 303,372 1,134,730 Cash and bank balances 8 758,504 758,287 3,832,016 2,745,149 Total assets 6,472,192 3,007,606 Liabilities and net assets Non-current liabilities Loans and borrowings 9 3,889 28,554 Deferred income tax liabilities 10 83,813 - Grants related to assets 11 2,062,567 183,354 2,150,269 211,908 Current liabilities Accounts payable 12 1,167,994 1,365,356 Loans and borrowings 9 7,230 15,107 Deferred income 13 3,839,624 2,269,284 5,014,848 3,649,747 Net assets (692,925) (854,049) Total liabilities and net assets 6,472,192 3,007,606 The consolidated financial statements were approved on May 5, 2016 by: Ara Vardanyan Kristine Mkrtchyan Executive Director Chief Accountant The consolidated statement of financial position is to be read in conjunction with the notes to and forming part of the consolidated financial statements set out on pages 8 to 45. “Hayastan” All Armenian Fund 4 Consolidated financial statements December 31, 2015 Consolidated statement of comprehensive income In thousand drams Year ended Year ended December 31, December 31, Note 2015 2014 (restated) Contribution income 14 8,572,595 7,808,471 Other income 70,305 93,789 Operating expenses 15 (8,567,685) (7,654,781) Administrative expenses 16 (400,759) (383,618) Other expenses (10,339) (151,561) Results from operating activities (335,883) (287,700) Finance income 17 53,585 50,688 Finance expense 17 (1,640) (6,134) Other financial items 18 16,162 139,899 Result before taxes (267,776) (103,247) Income tax expense/(recovery) 19 14,596 (11,433) Result for the year (253,180) (114,680) Other comprehensive income Items that will not be reclassified subsequently to result Increase in revaluation reserve 517,879 - Income tax expense in other comprehensive income (103,575) 414,304 - Total comprehensive result for the year 161,124 (114,680) The consolidated statement of comprehensive income is to be read in conjunction with the notes to and forming part of the consolidated financial statements set out on pages 8 to 45. “Hayastan” All Armenian Fund 5 Consolidated financial statements December 31, 2015 Consolidated statement of changes in net assets In thousand drams Revaluation Accumulated reserve loss Total as of January 1, 2014 - (739,369) (739,369) Result for the year - (114,680) (114,680) Total comprehensive result for the year - (114,680) (114,680) as of December 31, 2014 (restated) - (854,049) (854,049) Result for the year - (253,180) (253,180) Other comprehensive result for the year 414,304 - 414,304 Total comprehensive result for the year 414,304 (253,180) 161,124 as of December 31, 2015 414,304 (1,107,229) (692,925) The consolidated statement of changes in net assets is to be read in conjunction with the notes to and forming part of the consolidated financial statements set out on pages 8 to 45. “Hayastan” All Armenian Fund 6 Consolidated financial statements December 31, 2015 Consolidated statement of cash flows In thousand drams Year ended Year ended December 31, December 31,