CONTENTS
01 CATEGORY ONE Subtitel and description
02 CATEGORY TWO Subtitel and description
03 CATEGORY THREE Subtitel and description
04 CATEGORY FOUR Subtitel and description
05 CATEGORY FIVE Subtitel and description
06 CATEGORY SIX Subtitel and description
07 CATEGORY SEVEN Subtitel and description
08 CATEGORY EIGHT Subtitel and description
Bank Pasargad CONSOLIDATED FINANCIAL STATEMENT
CEO MESSAGE
“In the Name of God, the Compassionate, the Merciful” “All we have achieved are His Blessings”
Dear Shareholders, Welcome to Bank Pasargad 2012/2013 Annual Report.
It is my pleasure and privilege to present the aerational performance of Bank Pasargad to esteemed shareholders. Bank Pasargad financial statements and capital structure strengthen loyalty and advocacy of shareholders toward pre-defined strategic goals. aIRR27,258 bln to IRR30,000bln, which definitely, enabled us to become one of the largest commeragad also has been ranked 257 over the top 1000 banks by 2013 Banker Magazine. This definitely shows the outstanding international position of Bank Pasargad as well as local fabulous outlook.
Privatization policy in banking sector in recent years, has formed precise competitive growth and brought serious challenges for Iranian banking industry. In this manner, Bank Pasargad was intended to achieve a market share of more than 20% from the well-established state-owned and private banks through its aggressive strategies, more efficient, modernized and well-equipped branches, as well as, introducing new products and services.
Since 2005, when the bank was first established, various strategies to increase market share have been implemented through development of supply chain management, comparative benchmarking, observing EFQM requirements, and comprehensive customer relationship management.
Bank Pasargad’s vision is to achieve the first rank among the Middle East banks and a proper place among the top 500 global companies. Our mission is adding value to stakeholders; relying on efficient, professional and creative human capital, rich fundamental values and organization culture, inspiring stakeholders’ needs, green banking and social responsibility. Bank Pasargad has reached the belief of “Customer is the essence of the bank” from the common motto of “Customer is right” to warrant sustainable national and international development of the Bank Pasargad and to have an effective contribution to the economic growth of the country. Indeed, domestic and world challenges in 2012/2013 have made Bank Pasargad stronger and more resilient in providing broad financial services in 297 branches with 24/7 online banking facilities.
Bank Pasargad is improving human capital structure, marketing and risk management systems continuously, and establishing efficient investment management systems and expanding internal and external networks. Revenue structure diversification and promoting innovative banking and financial services, products and processes with emphasis on investment banking, retail banking, corporate banking, and private banking are the grand strategies of Bank Pasargad.
The main objective of “Time to Takeoff” throughout the financial year 2012/2013, delivered high- quality experience to customers, consistent ascending performance and adorable memory of comprehensive success for Bank Pasargad. It is my honor to present the annual report of Bank Pasargad’s performance and board of directors’ report approved by legal inspector and independent auditor on the single and consolidated financial statements. Last but not least, I would like to thank the intelligent board members with deep professional wisdom and knowledge along with young talented colleagues for their enormous efforts, which resolutely delivered sustainable value for our esteemed shareholders and clients.
Majid Ghassemi BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Time to Takeoff:
After the year of “Time to Enhance Productivity” in financial year 2011/2012, efficiency improvement of the Bank Pasargad financial performance was much emphasized by board of directors, therefore year 2012/2103 named as “Time to Takeoff”. Despite the national economic situation and international sanctions, Bank Pasargad’s net profit has increased.
Illustratively, operating expense and total assets, witnessed the gradual profit increase and such wonderful performance. In a more disaggregated level, Bank Pasargad has improved its efficiency respective to the choice of outputs and significant global banking indicators. Within this backdrop, Bank Pasargad has decided to take off the Bank Pasargad’s fabulous financial position last year after the year of efficient productivity.
The bank capital has increased 10% to IRR 30,000bln as first step in such an enormous takeoff in banking history. Net profit, meanwhile, increased 34.67% from IRR 9,836bln to IRR 13,246bln and shareholder equity increased 25.23% to IRR 48,109bln comparing with last year. The most significant banking productivity indicators, such as deposits and granted facilities have increased 33.85% and 27.28%, respectively.
These increases improved the share of Bank Pasargad to 4.94% of total deposits and 4.25% of total facilities granted in Iranian banking system respectively. Total revenue reached to IRR 44.443bln from IRR 32.370bln which shows 37.29% increase. IRR 221.808bln. Total assets increased 33.93% to IRR 297.063bln reflecting the steady growth capital and revenues and also contingent cruise after takeoff towards Pasargad’s strategic goals.
Total direct and indirect investments of Bank Pasargad increased by 5.88% to IRR 11,927bln. Capital adequacy ratio reached 22.32% and liquidity ratio (deposits to total assets ratio) became 77.09%, which all showed significant improvement in efficiency indicators. Earnings per share also increased significantly to IRR 441.55.
8 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Iranian Economy and Banking Network at a Glance
The year 1391 has been named as the year of national production, Iranian labor and capital support by the supreme leader with the aim of national unity and solidarity, increasing self-sufficiency and supporting national production in order to fight with aggravation of sanctions. In this year, Iran’s economy was faced with major difficulties and challenges. Aggravation of western sanctions against Iran in the form of sanction on purchase of crude oil, central bank and private banks of the country made problems for bank customers in opening L/Cs on imports. Reduction in the amount of Iran’s oil sales as the most important sources of foreign currency income, and limitation of transferring foreign exchange, made difficulties in importing materials and equipment. Foreign currency market volatilities Foreign exchange trade center formed in October 2012 at ministry of industry, mine and commerce, to provide the foreign currency needed for import and finally the center was transferred to central bank in March 2013. Insufficient foreign currency supply (inflow) due to sanctions, oil exports reduction, allocation of foreign currency with transactional rate, individual motivations to buy foreign currency as a means of storing value and increasing precautionary demand for foreign currency were the main factors creating foreign currency market volatility in 2012/13. Stock market After Rial depreciation in first 6 months of the year, in second half, stock market situation was improved due to exchange rate appreciation and its positive impact (improvement expectations) on petrochemical producing companies, exporting metal components and also global increase of copper and steel rate; of course this increase was mainly related to nonfinancial companies.
Inflation rate In 5th development plan, the average economic growth rate was determined to be 8% during the plan, unemployment rate 7% and share of productivity increase to become one third of expected economic growth. But, in spite of the determined target in 5th development plan, the above mentioned challenges were resulted in not realizing the economic growth rate in this year, as envisaged in the plan. Meantime, increase in foreign exchange rate and its effects on prices of goods and services and importing most of the goods with market rates instead of central bank reference exchange rate, were some of the causes of high inflation rate in year 2012/13. The inflation rate was about 30.5% in the year.
Central Bank Policy Package Following high foreign currency and gold markets fluctuations, due to low return on deposits and high inflation rate Money and Credit Council approved a new policy package in Feb. 2012. The package gave freedom to banks to determine rate of return on investment deposits to mitigate fluctuations and provide a competitive environment for the banks. Despite economic slowdown in 2012/2013, the NPL ratio of banks decreased due to better risk management, in particular through effective credit scoring.
9 Bank Pasargad OVERVIEW
BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Financial highlights
Key performance measures (Milion IRR) 2012/2013 2011/2012 2010/2011 Performance for years 2007 to 2012 consolidated Bank consolidated Bank consolidated Bank
Total Income 53,389,543 44,443,056 43,058,523 32,370,948 37,153,442 24,807,338 Profit Before Tax 14,625,910 14,189,140 9,954,774 10,159,820 6,515,330 6,309,425 Net Profit 12,220,702 13,246,568 9,040,795 9,836,079 5,921,381 6,064,496
Financial position for years 2010 to 2013: Credit Facilities Granted* 164,356,377 174,789,226 128,979,079 137,326,879 102,824,313 109,593,714 Deposit Received 222,136,605 229,035,676 168,844,509 171,112,476 139,367,406 142,147,511 Due from CBI 28,544,993 28,544,993 20,851,525 20,851,525 16,107,889 16,107,889 Total Assets 317,288,236 297,063,626 232,174,764 221,808,446 186,404,137 179,227,880 Total Liabilities 264,697,542 248,953,891 191,694,100 183,391,948 152,779,854 147,840,477 Share Capital 30,000,000 30,000,000 27,258,000 27,258,000 23,100,000 23,100,000 Total shareholders’ Equity 52,590,694 48,109,735 40,480,664 38,416,498 33,574,283 31,387,403 Capital Adequacy Ratio - 22.32% - 23.12% - 23.92%
Rate of Return: Return on Assets (ROA) 4.45% 5.11% 4.32% 4.91% 3.81% 4.02% Return on Equity (ROE) 26.26% 29.66% 25.20% 27.10% 26.48% 27.73%
share capital Number of share at Annual General Meeting (Million Shares) 30,000 30,000 27,258 27,258 23,100 23,100 Earnings per Share (EPS) (in IRR) 407.36 441.55 331.67 360.85 256.45 262.53 Dividend Per share (DPS) )in IRR) - ? - 230 - 180 Share Price at Report Confirmation Date (in IRR) - 1,570 - 1,855 - 2,189 Book Value Per Share (in IRR) 1,753 1,603 1,485 1,409 1,453 1,358 P/E Ratio - 3.55 - 5.14 - 8.33
Other Details Number of Human Capital 12,586 3,396 8,795 3,251 4,706 2,981 Number of branches - 297 - 296 - 268
* Credit Facilities Granted = Gross Facilities Granted – Upcoming Profit
12 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Bank Pasargad introduction & corporate governance
Board of directors with pictures
In accordance with the minutes of Extra Ordinary General Meeting of shareholders, dated November, 22, 2011, Bank Pasargad’s Executive and Alternate Board Members, whose eligibilities are approved by the Central Bank of the Islamic Republic of Iran, are as follows:
Board of Directors: No. Name Title 1 Mr. Seyed kazem Mirvalad Chairman of The Board 2 Dr. Majid Ghassemi Vice Chairman and Managing Director 3 Mr. Ahmad Vadidar Executive Board Member 4 Mr. Zabihollah Khazaei Executive Board Member 5 Mr. Kamran Ekhtiar Executive Board Member 6 Mr. Mostafa Beheshti Rouy Executive Board Member 7 Dr. Davoud Mojtahed Non-Executive Board Member 8 Pars Aryan Investment (PLC) Alternate Board Member 9 Mr. Ali Akbar Amin Tafreshi Alternate Board Member
Executive Board Members:
No. Name Title 1 Dr. Majid Ghassemi Chairman 2 Mr. Ahmad Vadidar Board Member 3 Mr. Zabihollah Khazaei Board Member 4 Mr. Kamran Ekhtiar Board Member 5 Mr. Mostafa Beheshti Rouy Board Member 6 Mr. Gholam Hossein Vahidnia Board Member 7 Mr. Mohammadreza Hajian Board Member
History
In accordance with the Bank Pasargad Article of Association, banking services and operations should be in compliance with the rules and regulations legislated by Central bank of Islamic Republic of Iran (CBI). Bank Pasargad was established in accordance with Legal Acts Regulating the Establishment of private banks in I.R.I, and was registered under No. 254300 with The Tehran Companies Registrar Office on September 4th, 2005. The central Bank of Islamic Republic of Iran issued the Banking Operation license No-2849 on September 13th, 2005. The Head Office is located at: No. 430, West Mirdamad Blvd, Tehran 19697-74511, Iran.
13 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Shareholders
Major shareholders as at March, 20, 2013
Shareholders No. of shares % Ownership Pars Aryan Investment Co. 4,309,242,690 14.36 Saman Majd Investment Co. 1,497,881,862 4.99 Tamin Atieh Co. 1,477,986,086 4.93 Kharazmi Investment Co. 1,316,591,759 4.39 Hamyari Kowsar Investment Institute. 1,172,161,868 3.91 Sam Group Co. 1,126,073,702 3.75 Milad Gostar Noavaran Co. 1,108,561,097 3.69 Employees’ Pension, Disability, and Bank staff Saving Fund 1,024,767,925 3.41 Bineshpazhooh Iranian Co. 776,379,140 2.59 Mohamad Hadi Nik La’al Fard 762,465,439 2.54 Sahab Omid Iranian Co. 688,770,388 2.30 Hamghadam Trade Co. 673,926,291 2.25 Omid Tamin Atiyah and Refah Institute 599,130,529 2.00 Setareh Mansoubi 487,563,021 1.63 Effat Arzaani 306,117,904 1.02 Other 12,672,380,299 42.24 Total 30,000,000,000 100
Bank ownership, ranked by real and legal entities
No. of shareholders Share ownership Type of entities % of total number No. of Shares % from total
Real 99.38 47,933 5,485,068,672 18.28
Legal 0.62 301 24,514,931,328 81.72
Total 100 48,234 30,000,000,000 100
14 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Strategic Direction
Vision: • Achieving the first rank among the Middle East banks • Achieving a proper place among the top global 500 companies.
Mission: Our mission is adding value to stakeholders; relying on efficient, professional and creative human capital, rich fundamental values and organization culture, inspiring stakeholders’ needs, green banking and social responsibility. Bank Pasargad has reached the belief of “Customer is the essence of the bank” from the common motto of “Customer is right” to warrant sustainable national and international development of the bank Pasargad and to have an effective contribution to the economic growth of the country.
Key fundamental values: • Adherence to Islamic values • Honesty, Trustworthiness, and Secrecy • allegiance to the bank • meritocracy • Customers’ and stakeholders’ respect • Innovative solution finding • Team working and participating in decision making • Commitment to excellency • Creativity and innovation • Agility and flexibility • Empowering & Promoting the organizational knowledge using global knowledge • Patience and openness to criticism • Consciences and responsiveness • Adherence to Corporate social responsibility • Discipline • Committing to law and complying with national and international standards
Long term objectives: 1. Achieving the proper place in international banking and financial industry 2. Achieving the first rank in the Iranian banking market share. 3. Increasing revenue 4. Adding value to shareholders and other stakeholders
Grand strategies: 1. Improving human capital, marketing and risk management systems 2. Establishing and improving investment management systems 3. Expanding internal and external networks 4. Diversifying revenue structure and providing innovative banking and financial services, products and processes (with emphasis on investment banking, retail banking, corporate banking and private banking)
Bank’s Governing Rules and Regulations
Most important Governing laws and regulations on bank activities are: A. Monetary and Banking Law (Approved in 1972), and its amendments. B. Usury-Free banking Law (Approved in 1984) C. Annual Monetary Financial and Supervisory Policies of CBI D. Money and Credit Council Approvals E. Circulars from the CBI F. Iranian commercial code
15 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
G. Tax law H. Securities market act of the Islamic Republic of Iran I. Bank Pasargad’s Articles of Association
Committees
Professional committees are as follows: A. Audit committee B. Risk Management Committee C. Human capital Committee D. Human Capital Development committee E. Credit Committee F. Marketing and Development Committee G. Anti-Money Laundering Committee H. Ethics committee I. Strategic Management Committee
Legal Inspector and Independent Auditor
According to the Ordinary Annual General Meeting dated May, 9, 2012, the following were appointed as Bank Pasargad’s legal Inspector and Independent Auditor and Alternate Legal Inspectors: Legal Inspector and Independent Auditor: Dash & Co Auditing Institute. Alternate Inspector: Mokhtar & Co Auditing Institute.
16 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Operational and financial review
Summary of Bank financial statements for the years 2007-2013
Summary of Bank financial position for years 2007 to 2013 is presented in the following table:
Assets 2012/2013 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008
Cash 758,098 1,111,280 1,136,986 670,381 747,873 238,968
Due from CBI 28,544,993 20,851,525 16,107,889 12,538,333 12,376,842 7,722,966
Due from other Banks & Credit institutions 51,487,727 35,654,974 27,764,235 13,062,755 6,548,311 3,242,514
Participation Papers 11,864,471 5,825,718 8,345,318 9,366,229 1,947,545 49,875
Credit Facilities Granted 174,789,226 137,326,879 109,593,714 76,048,630 64,016,462 39,767,517
Investments 11,927,019 11,264,646 4,368,344 2,901,510 2,529,259 2,270,198
Tangible and Intangible Fixed Assets 8,814,295 5,786,595 3,886,215 3,535,219 2,841,476 1,986,913
Other Accounts Receivable 6,253,924 1,699,059 6,692,046 3,992,848 2,775,615 1,161,497
Other Assets 2,623,873 2,287,770 1,533,133 517,022 1,241,673 524,572
Total Assets 297,063,626 221,808,446 179,227,880 122,632,927 95,025,056 56,965,020
Liabilities
Due to CBI 4,470,314 6,097,161 2,958,943 2,089,250 2,313,914 1,142,991
Demand Deposits 17,418,558 8,985,693 9,563,852 4,928,493 3,613,347 4,350,329
Saving Deposits 3,713,887 2,847,463 1,639,356 921,720 368,237 167,845
Term Deposits 194,370,304 144,461,548 123,515,749 96,751,649 73,664,316 41,885,475
Other Deposits 13,532,927 14,817,772 7,428,554 4,521,562 3,115,965 1,351,325
Tax payable 2,042,571 3,120,935 380,003 499,582 123,439 76,774
Liabilities & Other Provisions 13,405,330 3,061,376 2,354,020 566,959 1,695,912 893,790
Total Liabilities 248,953,891 183,391,948 147,740,477 110,279,215 84,895,130 49,868,529
Shareholders’ Equity
Share Capital 30,000,000 27,258,000 23,100,000 7,700,000 7,000,000 5,250,000
Statutory Reserve 5,618,030 3,631,045 2,155,633 1,245,958 740,130 388,326
Discretionary Reserve 1,872,676 1,210,348 718,544 415,320 246,710 129,442
Retained Earning 10,619,029 6,317,105 5,413,226 2,992,434 2,143,086 1,328,723
Total Shareholders’ Equity 48,109,735 38,416,498 31,387,403 12,353,712 10,129,926 7,096,491
Total Liabilities & Shareholders’ Equity 297,063,626 221,808,446 179,227,880 122,632,927 95,025,056 56,965,020
17 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Income Statement The Summary of Bank’s Statement of profit and loss and other comprehensive income for the years 2007 to 2013, is presented in the following table:
Joint Income 2012/2013 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008
Income on Credit Facilities Granted 32,063,460 24,137,335 18,129,651 16,089,314 10,561,420 4,459,643
Income on Participation Papers 2,142,369 1,314,946 1,804,560 1,130,492 292,086 504,244
Income on Investments & Deposits 4,950,576 3,773,061 2,529,301 1,125,210 688,050 299,357
Gross Joint Income 39,156,405 29,225,342 22,463,512 18,345,016 11,541,556 5,263,244
On-account Payment to Depositors from (24,818,983) (18,909,391) (14,905,468) (13,037,811) (8,720,065) (4,169,858) joint Income
On-account Return Surplus (Deficit) Paid (63,106) (168,940) 613,722 426,186 to Depositors
Bank’s Share of Joint Income 14,274,316 10,147,011 6,944,322 4,881,019 2,821,491 1,093,386
Non-Joint Income
Income on Investment & Deposits 31,721 61,245 59,214 1,678 30,036 647,630
Commission Income 4,843,655 2,335,786 1,909,980 1,389,124 1,247,904 236,563
Other Income 411,275 748,575 374,632 241,912 144,301 572,845
Total Non-Joint Income 5,286,651 3,145,606 2,343,826 1,632,714 1,422,241 1,457,038
Total Income 19,560,967 13,292,617 9,288,148 6,513,733 4,243,732 2,550,424
Less: Expense
Personnel Expense (1,331,097) (982,354) (732,352) (580,679) (355,477) (179,261)
General & Administrative Expense (1,400,299) (1,172,404) (840,510) (612,693) (447,910) (232,615)
Doubtful Debts Expense (1,847,631) (775,944) (1,157,903) (1,643,800) (900,380) (446,851)
Finance Cost (792,800) (202,095) (247,957) (128,306) (93,841) (12,027)
Total Expense (5,371,827) (3,132,797) (2,978,722) (2,965,478) (1,797,608) (870,754)
Profit Before Tax 14,189,140 10,159,820 6,309,426 3,548,255 2,446,124 1,679,670
Less: Tax (942,572) (323,741) (244,930) (176,068) (100,764) (53,675)
Net Profit 13,246,568 9,836,079 6,064,496 3,372,187 2,345,360 1,625,995
Earnings per share (EPS) 441.55 360.85 262.53 437.95 335.05 309.71
18 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Indicators and trends
Financial indicators
Capital Paid-up capital trend Bank Pasargad’s initial capital was IRR 3500bln in 2005, thereafter increased to IRR 7700bln in different phases. Subsequently capital increased to IRR 23100bln with 200% growth in 2010/2011, which was the largest public subscription issue, ever occurred in Iranian economic history. In 2011, initial capital increased 18% to IRR 27,258bln and in 2012 it reached to IRR 30,000bln The Bank capital changes are shown in the following table:
Items 2012/2013 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008 Share Capital (billion IRR) 30,000 27,258 23,100 7,700 7,000 5,250 Growth 10% 18% 200% 10% 33.33% 50%
Capital Adequacy Ratio (CAR) According to the Central Bank of Islamic Republic of Iran’s (CBI) regulations and financial standards, capital adequacy ratio is a key indicator. Adequate capital is one of the factors in preserving health of banking system. To ensure the business stability, banks and credit institution are required to keep an appropriate balance between capital and risk-weighted assets. Capital adequacy ratio is calculated by dividing the base capital (tier I) by total risk-weighted assets. As the CBI’s regulation, a capital adequacy ratio is required to be of at least 8%. Bank Pasargad’s capital adequacy ratio and base capital (tier I) are shown in the following table.
(billion IRR)
Capital Adequacy Description 2012/2013 2011/2012 2010/2011 Share Capital 30,000 27,258 23,100 Statutory Reserve 5,618 3,631 2,156 Discretionary Reserves 1,873 1,210 719 Retained Earning 10,619 6,317 5,525 Total Tier I Capital 48,110 38,416 31,500 General Provision for Doubtful Debt 5,151 3,213 2,438 Less: Excess of 1.25% of Risk Weighted Assets )2,302( (1,017) (704) Total Complementary Capital (Tier II Capital) 2,849 2,196 1,734 Total Base Capital 50,863 40,612 33,234 Total Risk Weighted Assets 227,929 175,650 138,719 Capital Adequacy Ratio 22.32% 23.12% 23.92%
Capital Adequacy Trend (billion IRR) 2012/2013 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008 Total Risk Weighted Assets 227,929 175,650 138,719 84,285 69,308 42,306 Total Base Capital 50,863 40,612 33,183 13,407 10,996 7,624 Capital Adequacy Ratio 22.32% 23.12% 23.92% 15.91% 15.87% 18.02%
19 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Shareholders’ Equity Total Shareholders’ Equity increased by 25.23% from IRR 38,416 billion in 2012 to IRR 48,110 billion in 2013.
(billion IRR) 2012/2013 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008 Shareholders’ Equity 48,109,735 38,416,498 31,387,403 12,353,712 10,129,926 7,096,491 Growth rate 25.23% 31.31% 154,07% 21.95% 42.75% 63.59%
Deposits
Bank’s total deposits increased by 33.85% from IRR 171,112bln in 2012, to IRR 229,036bln by the end of 2013. Term deposits increased 34.55% compared to last year which was 84.86% of total deposits.
Items Percentage 2012/2013 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008 (billion IRR) Demand Deposits 7.61% 17,418,558 8,985,693 9,563,852 4,928,493 3,613,347 4,350,329 Saving Deposits 1.67% 3,713,887 2,847,463 1,639,356 921,720 368,237 167,845 Term Deposits 84.86% 194,370,304 144,461,548 123,515,749 96,751,649 73,664,316 41,885,475 Other Deposits 5.91% 13,532,927 14,817,772 7,428,554 4,521,562 3,115,965 1,351,325 Total Deposits 100% 229,035,676 171,112,476 142,147,511 107,123,424 80,761,865 47,754,974
Growth 33.85% 20.38% 32.70% 32.64% 69.12% 185.69%
Bank Pasargad’s Deposits in compare with the Iranian Banking Industry
(billion IRR) 2012/2013 2011/2012 2010/2011 Bank Pasargad’s Deposits 229,036 171,112 142,148 Banking System Deposits 4,634,524 3,866,988 3,187,671 Share of Bank Pasargad’s Deposits 4.94% 4.42% 4.46%
Facilities Granted
Total net credit facilities Granted increased by 27.28% from IRR 137,327bln in 2012 to IRR 174,789bln in 2013.
(billion IRR) 2012/2013 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008 Credit Facilities Granted 174,789,226 137,326,879 109,593,714 76,048,630 64,016,462 39,767,517 Growth 27.28% 25.31% 44.11% 18.80% 60.98% 252.71%
20 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Bank Pasargad Facilities granted in compare with Iranian Banking Industry
(billion IRR) 2012/2013 2011/2012 2010/2011 Bank Pasargad Facilities 174,789 137,327 109,594 Banking System Facilities 4,112,945 3,803,718 3,177,895 Share of Bank Parasgad Facilities Granted 4.25% 3.61% 3.45%
% of % of % of % of % of 2012/2013 2011/2012 2010/2011 2009/2010 2008/2009 total total total total total
Current 172,552,538 94.25 135,614,684 94.34 108,176,733 93.37 72,396,658 89.78 62,272,785 94.06
Overdue Debt 2,207,606 1.21 1,459,937 1.02 1,026,788 0.89 1,507,808 1.87 1,589,165 2.40
Bad Debt 4,549,011 2.48 3,441,500 2.39 2,647,614 2.29 4,833,968 5.99 1,780,043 2.69
Doubtful Debt 3,767,743 2.06 3,234,682 2.25 4,012,991 3.46 1,903,415 2.36 561,556 0.85
Total Gross 183,076,898 100 143,750,803 100 115,864,126 100 80,641,849 100 66,203,549 100 Facilities
Provisions 6,943,194 3.79 5,095,562 3.54 4,319,619 3.73 3,161,715 3.92 1,517,915 2.29
International and foreign exchange activities
Despite changes in foreign exchange rate and economic sanctions, international foreign exchange activities of Bank Pasargad have increased considerably in 2012/2013. Regarding increase in number of branches, services can be provided more widely to public. Different types of foreign exchange services include: • Opening documentary letters of credit. • Documentary collections. • Advising and negotiating of export documentary credit. • Issuance of FX guarantees. • Trade finance and project financing. • Opening and maintaining individual and corporate FX accounts. • Currency exchange and trade. • Inward and outward payment orders and foreign exchange transfer.
A summary of foreign exchange services provided by Bank Pasargad is depicted in the following table:
Description 2012/2013 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008 Sight L/Cs 5,758,854 3,318,582 941,266 255,505 628,933 387,438 Term L/Cs 699,743 2,025,648 1,897,313 684,065 500,817 240,738 Refinance L/Cs 1,727 518,632 964,604 272,665 393,760 311,854 Total Import L/Cs 6,460,324 5,862,862 3,803,183 1,212,235 1,523,510 940,030 Import Documentary Bills of Exchange 1,363,044 806,643 73,771 86,486 97,696 36,985 Internal L/Cs (million IRR) 3,378 5,596 3,169 1,682 2,853 1,695 Hard Currency Guarantees 92,874 241,747 282,000 242,000 86,712 26,250 Inward Hard Currency Payment Orders 1,335,687 1,070,479 1,173,059 1,195,609 626,737 77,542 Outward Hard Currency Payment Orders 3,256,592 1,603,033 1,994,749 831,784 240,252 37,094
21 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Investments
Total Investments increased by 5.88% from IRR 11,265 billion in 2012 to IRR 11,927 billion in 2013.
Investments
(billion IRR) 2012/2013 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008 Investments 11,927,019 11,264,646 4,368,344 2,901,510 2,529,259 2,270,198 Growth rate 5.88% 157.87% 50.55% 14.72% 11.41% 43.61%
Assets
Bank’s Total Assets increased by 33.93% from IRR 221,808 billion in 2012 to IRR 297,064 billion in 2013.
(billion IRR) 2012/2013 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008 Total Assets 297,063,626 221,808,446 179,227,880 122,632,927 95,025,056 56,965,020 Growth rate 33.93% 23.76% 46.15% 29.05% 66.81% 158.06%
Incomes
Bank’s Total Income increased by 37.29% from IRR 32,371 billion in 2012 to IRR 44,113 billion in 2013.
Incomes
(billion IRR) 2012/2013 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008 Gross Income 44,443,056 32,370,948 24,807,338 19,977,730 12,963,797 6,720,282 Growth rate 37.29% 30.49% 24.17% 54.10% 92.91% 214.03%
Net profit
Bank’s Total Net Profit increased by 34.67% from IRR 9,836 billion in 2012 to IRR 13,247 billion in 2013.
(billion IRR) 2012/2013 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008 Net Profit 13,246,568 9,836,079 6,064,496 3,372,187 2,345,360 1,625,995 Growth rate 34.67% 62.19% 79.84% 43.78% 44.24% 103.59%
22 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Operational Indicators
Human Capital
As part of our strategic objectives, special attention is paid to the employment of highly qualified efficient human capital in 2013 the same as previous years and with regards to the bank’s network. Considering HC growth, required arrangements is done for the promotion in different positions. The table below depicts the Bank’s invaluable HC, for headquarter and the branches separately according to their qualifications.
Human Capital Distribution in Branches and Headquarter
2012/2013 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008 Education HQ Branches HQ Branches HQ Branches HQ Branches HQ Branches HQ Branches
Post-Graduate 86 277 79 222 64 117 52 85 44 38 37 22
Graduate 339 2,331 304 2,239 289 2,052 234 1,864 213 1,650 143 1,154
College Degree 93 270 93 295 89 313 84 311 77 290 71 221
Total 518 2,878 476 2,756 442 2,482 370 2,260 334 1,978 251 1,397
Total 3,396 3,232 2,924 2,630 2,312 1,648
Percentage 15 85 15 85 15 85 14 86 14 86 15 85
Human Capital (According to Gender, Qualifications, and work experience)
Post Graduate Graduate College Degree Work Experience Male Female Male Female Male Female 0-9 Years 153 170 1,198 1,315 53 2 10-19 Years 5 0 4 2 5 0 20-29 Years 1 0 3 0 2 0 More than 30 years 29 5 136 12 271 30 Total 188 175 1,341 1,329 331 32 Total (Male & Female) 363 2,670 363 Percentage 5.54 5.15 39.49 39.13 9.75 0.94
23 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Financial Group Human capital
Human capital employed in Pasargad Financial Group (Including some of the Bank Pasargad’s subsidiaries and affiliates) by financial year 2012/2013 is shown in the table below:
No. Company Total 1 Bank Pasargad 3396 2 Arzesh Afarinan Pasargad Co. 12 3 Iranian Reinsurance Co. 16 4 Pasargad Insurance Co. (regarding branches) 5,060 5 Bank Pasargad Electronic Payment Co. 260 6 Tamin Atieh Co. 11 7 Pasargad Property Development Co. 23 8 Pasargad Exchange Co. 11 9 Pasargad Aryan Co. 698 10 Bank Pasargad Financial Services and Investment Co. 9 11 Hashtom Urban Construction Co. 12 12 Pars Aryan Investment Co. 20 13 Pasargad Aryan ICT Co. 802 14 Bank Pasargad Brokerage Co. 57 15 Pasargad Leasing Co. 13 16 Bank Pasargad Machinery and Equipment Leasing Co. 56 17 Mabnaye Khavar Miyaneh Co. 5 18 Pasargad Research and Management & Human Capital Development Institute 8 19 Middle East Mines and Mineral Holding Co. (MIDHCO) 1,934 20 Others 183
Total 12,586
Branches
The table below shows the number of Bank Pasargad’s branches since its inauguration:
Year 2012/2013 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008 No. of Branches 297 296 268 233 202 150
The table and the diagram shows that Bank Pasargad has been quite successful in expanding its network of branches countrywide and providing the means of customer access in the short time since its establishment. Because of CBI’s restrictive policies, Bank Pasargad’s number of branches has increased from 296 in 2012 to 297 in 2013.
24 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
E-Banking services
Virtual Banking
Bank Pasargad is the first bank which introduced virtual banking in Iran to provide easier customers access to online banking services. Such system allows customers to conduct financial transactions and have access to variety of online banking services worldwide. Available services are as follows:
• Deposit services: - Opening various kinds of short-term, long-term, future-saving and Qarz-ol-hasaneh (Interest Free) accounts. - Destination changes and per diem interest - Transfer of funds
• Card services: - Gift card Requests - ATM card and Gift card requests - Add/Remove minor account to/from cards - Settlement and Block card requests
• Cheque services: - Cheque Book Request - Inter-Bank cheque request - Bank cheque request - Setting a Block order to cheques
• Credit facilities services: - List of Facilities - Installment payment request
• Foreign Exchange Services - Deposit details - Providing balance of payments and transactions - Translated bank account statement request
Pasargad’s secured Payment
Bank Pasargad’s secured payment system is to provide customers with online trading while having all the advantage of an ordinary purchase. In this system, bank intermediates financial transactions for the buyer and seller more securely. While purchasing, the amount will be remitted to an intermediate account with Bank Pasargad instead of the seller’s account. When the goods are delivered and the purchaser confirms the completion of the purchase process, the fund will be transferred to the seller’s account.
25 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Advantage of pasargad’s Secured Payment
Advantages for Purchaser Ordinary Online Pasargad’s Secure Remittent Remittent Making Sure that the delivered good(s) are the same as ordered û ü On-time delivery û ü Banking Cards Management û ü Necessity to insert address for each purchase û ü Cancellation option in case of the other party’s failure û ü Impossibility of cancellation for no reason û ü Instant Payment ü ü Sales Management û ü Compensation for the losses caused by the other party’s failure û ü Cancellation option in case of other party’s failure ü ü Impossibility of cancellation for no reason û ü
Mobile Banking
Easy access to banking services is a necessity nowadays. Considering extensive use of communications networks such as, mobile phones, Bank Pasargad provides valuable services including mobile banking system.
Mobile Banking system facilities are as follows: • Presenting account balance for all Interbank Information Transfer Network Cards • Transferring funds from Pasargad cards to all other Interbank Information Transfer Network cards • Bill Payments • Providing conducted transactions report
ATM, POS & PIN PAD
To increase customer satisfaction and in order to facilitate access to banking services, Bank Pasargad has issued various cards, as well as extensive installation of ATMs, POSs, and PIN PADs. All Bank Pasargad branches are equipped with ATMs. Bank Pasargad has also issued intelligent cards for more secure, easier access to ATM, POS, and PIN PAD.
E-Banking Services
2012/2013 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008
POS 155,081 128,911 80,609 80,635 63,954 22,667 ATM 692 631 414 307 227 119 Debit Card 2,464,736 1,795,308 1,267,066 947,291 587,377 189,523 Credit Card 66,208 49,144 34,115 34,193 14,393 3,623 Advanced Paid Cards (Gift 4,650,405 3,864,658 1,648,619 601,546 461,225 165,246 Cards & Voucher Cards) On-line Banking Services 385,142 261,425 162,850 109,596 31,014 9,675 Telephone Banking Service 294,589 212,796 192,300 156,814 67,625 40,791
26 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Bank successful transactions in accordance with type of terminal
Number of transactions 2012/2013 2011/2012 2010/2011 2009/2010 ATM 86,927,570 64,758,570 35,886,262 21,932,771 POS 123,581,440 67,525,237 32,194,220 13,638,392 PIN PAD 2,634,615 1,122,251 1,097,983 704,656 On-line Banking Services 103,708,155 33,946,570 8,727,229 2,064,655 Total 316,851,780 167,352,628 77,905,694 38,340,474
Number of each type of terminal
Year ATM POS PIN PAD Electronic Shop 2008/2009 227 63,954 190 1 2009/2010 307 80,653 218 60 2010/2011 414 80,609 261 324 2011/2012 631 128,911 303 862 2012/2013 692 155,081 311 1,259
Terminals average transactions in month
Year ATM POS PIN PAD 2009/2010 6,769 15.4 281 2010/2011 7,932 34 381 2011/2012 10,478 57 331 2012/2013 11,042 72 710
Number of cards and their transactions
Year Debit Card Credit Card Pre-Paid Card Total Number of Transactions Transactions to Cards 2008/2009 587,377 14,393 461,225 1,062,995 16,982,030 15.9 2009/2010 947,291 34,193 601,546 1,583,030 28,063,260 17.7 2010/2011 1,267,066 34,115 1,648,619 2,949,800 56,590,063 19.1 2011/2012 1,795,308 49,144 3,864,658 5,709,110 129,116,602 22.6 2012/2013 2,464,736 66,208 4,650,405 7,181,349 230,814,773 32.1
27 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Measures Taken On Annual General Meeting Duties According to the ordinary Annual General meeting dated 2012/5/9, Dividend per Share (DPS) was IRR 230 that IRR 130 is paid to the shareholders and IRR 100 is assigned to capital raise from IRR 27,258bln to IRR 30,000bln.
Approval of Financial Statements Financial statements provided by The Board of Directors were audited by Dash & Co. and the report will be presented to the General Meeting. Shareholder’s General Meeting is requested to approve The Board of Director’s report along with the financial statements including balance sheet, income statement, and cash-flow statement (for the fiscal year ended March, 20th, 2013) provided by the auditors and independent Inspector for the implementation of the Article 116 of IRI Commercial Code Amendment, approved in March 1969.
Approval of the Transactions Subject to Article 129 of the IRI Commercial Code All transactions subject to Article 129 of the Iranian Commercial Code mentioned in financial statements ‘enclose are in compliance with the regulations of the announced legal inspector and performed as bank’s routine activities. The Board requests the shareholders General Meeting to approve all the transactions subject to Article 129.
Legal Inspector Election General Meeting is requested to announce the Legal Inspector for the upcoming year, considering that one year period for the former Legal Inspector is over.
Wide-circulation Newspaper General Meeting’s members are requested to decide on the wide- circulation Newspaper to be used as Bank’s newspaper.
The Board of Director Attendance Fee and Gratuity for 2013-2014 The Board of Director Attendance Fee for each meeting in 2013/2014 and also the Board of Directors’ Bonus for the year 2012/2013 will be decided by the General Meeting.
The Board of Director suggestion for Dividend per Share The Board of Director suggestion for DPS is as following table:
Million IRR Per Share
Net Consolidated Profit 12,220,702 407.36 Net Bank Profit 13,246,568 441.55 Statutory Reserve 1,986,985 66.23 Discretionary Reserve 662,329 22.07 Transferable Profit to Retained Earnings (From Current Profit) 10,597,254 353.24 Proposed Dividend ? ?
Sincerely, Board
28 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
29 Bank Pasargad Of Excellence System
BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Regarding the organizational culture of Bank Pasargad as the most important competitive advantage of the bank in banking industry and also its high similarities with EFQM (European Foundation of Quality Management) fundamental concept, deployment of business excellence system has been planned and targeted to improve and strengthen different operational aspects. This system was accepted as a “balanced development platform” for the bank which resulted in many achievements as follows:
• The National Trophy of Business Productivity and Excellence Award Achieving the 4star certificate in the first participation in National Productivity and Excellence Award evaluation in 2011 wondered all academic, economic and industry elites. Furthermore, the bank could achieve the Crystal Trophy in 2012, which resulted in determination of organizational improvement projects in order to maintain and promote the strength points of bank.
• Top ranking in National Productivity Prize As long as international awards, Bank Pasargad evaluates itself nationally in academic and technical productivity related and credible assessments such as Productivity of Human Capital, Capital and also process efficiency comparing to other banks. In year 2012/2013, Bank Pasargad was ranked as the first bank in the 2nd national productivity 1404 award among other Iranian banks and one of the two organizations with the best 5-year productivity trend. Also in first season of 2013, Bank Pasargad achieved the first place in the 4th National Productivity Festival, which was held under supervision of Iran’s Chamber of Commerce, Industries, Mines and agriculture.
• Ranked as one of the Most Admired Knowledge Enterprise (MAKE Award, Asia) MAKE evaluation pattern is the most credible global pattern in knowledge-oriented management in the world since 1998 and pioneer global organizations such as General Electric, Microsoft, Apple, Shell, Google, Toyota, World bank and etc., assess their performances with MAKE pattern. The Secretariat of MAKE award was firstly established In Iran in 2010 and from 2011 it started the international evaluations of Iranian organizations in knowledge management, innovation and intellectual capital. In 2011 evaluation, Bank Pasargad was ranked among the top five knowledgeable Iran’s organizations and in 2012 as one of the top three organizations.
• Ranked as a Clean Bank Bank Pasargad as a 3rd millennium bank took many measures and did different activities to raise its administrative health. The indicators of Bank Pasargad success are results and feedbacks of different technical departments, specially high satisfaction of colleagues, delight and interest of customers and shareholders of the bank, special Bank Pasargad organizational culture, the innovation and creativity rate and organizational improvement in different fields, establishment of learning. Regarding the multi-side executed programs in this field, Bank Pasargad participated in administrative health prize in 2012. With the systematic view to the subject, this prize identifies and introduces those who have proper performance in the aspects of leadership, operational processes, infrastructures, designing the trustful processes of administrative health, encouraging innovation and learning and continuous control of results. Bank Pasargad was the only bank, which was introduced as clean and green in administrative health, which is the highest level of the prize.
32 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Other awards
International Level • Bank of the year of Islamic Republic of Iran, The Banker Magazine • The Superior Bank of Iran, World Finance Magazine • Ranked among 15 top World Islamic banking and financial institutes, The Banker Magazine • ISO 10014 Certificate in customer satisfaction field, ACS company in England • Ranked 9th among world movers and first mover in the Middle East in capital growth index, The Banker Magazine • European Chevalier medal to Bank Pasargad’s CEO because of innovative management, INNOVA institution • International Innovation Diamond (first grade) Medal and Certificate (IUI5002) for virtual banking, International Union of invention & Industrial innovation • Approved employer trainee development certificate in Platinum level, The Association of Chartered Certified Accountants
National Level • Ranked in top 10 fast-mover companies in Iran from 2008 till now, Industrial Management Institute (IMI) • 18th among 100 superior Iran Companies, Industrial Management Institute (IMI) • Superior bank in national productivity gift 1404 • Trophy of Environment Supporter, Tehran university environment Research center • Industry Champion and Fast Mover in Market in banking field, 8th Iran Industry Champions Festival • Silver trophy of Iran’s National Financial Management • ISO10015 Certificate of Training Management System, IMQ Academy • Iran’s National Financial Management Gift • 2nd rank of Dr. Nourbakhsh Festival on Virtual banking and also Appreciation certificate from Central bank of Iran • Selection of CEO of Bank Pasargad as Everlasting People of Banking Industry of Iran • Selecting Bank as health lover, Ministry of Health and Medical Education • Introducing Bank Pasargad as the superior E-Banking service provider in Iran Technology Festival
Risk Management
The risk steering committee was established in 2007 and subcommittees of credit, liquidity, operational and market risks were established in order to provide the issues for approval in the mentioned committee and to manage risks. According to CBI’s notification and Basel II requirements, the capital adequacy ratio is determined to be at least 8%, which it is 23.32% for Bank Pasargad in March 2013. This is an indicator of proper performance and approach to Basel III requirements. Currently, our Bank is planning and designing the Integrated Enterprise Risk Management (ERM) platform at macro and micro levels regarding the internationally accepted models, based on knowledge and experience of other world and Iranian banks according to Basel and COSO standards. The reports extracted from ERM will facilitate decision making by risk committees. As steps taken, we can mention the comprehensive revising and updating credit scoring process for evaluating customer risk rating.
33 Bank Pasargad Subsidiaries & Affiliates
BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Short introduction of companied
Middle East Mines and Mineral Holding Company (MIDHCO)
The company was first established in 2007 with initial capital of IRR 1000billion, it was listed in Iran OTC in 2012, and its latest paid-up capital is IRR8440 billion. The goals of company are development of mining industry and mining Entrepreneurship, strengthening the private sector. For achieving its vision of outstanding participation in mining and industrial mining in Middle East and having world class, company establishes and participates in different projects such as following:
• Sirjan Iron Concentrate Plant • Sirjan Iron Ore Concentrate plant-Expansion • Sirjan Iron Ore Pelletizing Plant • Bardsir Making Plant • Bardsir Steel Making Plant • FESICO FeSiO2 Production Plant • Zarand Iron Ore Concentrate Plant • Zarand Iron Ore Concentrate Plant- Expansion • Zarand Iron Ore Concentrate Pelletizing Plant • Pabdana Coal Washing Plant • Zarand Coke Making Plant • Zarand Steel Making Plant • Butia Iron Ore Pelletizing Plant • Kerman DR & Steel Making Plant • TPA BIO-LEACH/SX/EW Plant • TPA Copper Tube Plant
MIDHCO programs in 2013 are: • Exploitation of Bardsir, Zarand coke, Hamadan Ferro silicium • Production of 2.8 million ton Iron Ore Concentrate, Coke, Direct Reduced Iron (Sponge Iron),coal washing • Implementation of project according to scheduled program • Gaining Profit IRR 2100billion • Publishing participation paper up to IRR 5000 billion • Raising of capital from IRR8400 billion to IRR16800 billion • Developing and implementing management system in MIDHCO and all subsidiaries • Designing, implementing and monitoring program improvements • Implementing Organizational excellence model (based on EFQM) in MIDCO & subsidiaries
36 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
MIDHCO Subsidiaries • Zarand Iranian Steel Co. • Sirjan Iranian Steel Co. • Butia Iranian Steel Co. • Babak Iranian Copper Co. • Ferosilis Gharb Pars Co. • Middle East Meyare Sanat Engineering Co. • Middle East Shining Sun Commercial Co. • MANA Iranian Industrial Development & Renovation Co. (MANA) • GMI Projects Hamburg GmbH • Middle East Karavaran Sanat Co. • Pabdana Coal Processing Co.
Pasargad Aryan ICT Company (FANAP)
Pasargad Aryan ICT Co. (FANAP) was established in 2006 in order to provide the ICT needs of Pasargad group. Besides special attention to maintain quality level & sustainability of services provided for bank and Pasargad financial group, FANAP goal is to be the superior company information technology (ICT) field. The company in line with customer-oriented policies with young creative and innovative colleagues in accordance with complete value chain of communication & information technology in order to create value for customers.
FANAP activities: • Comprehensive solution for financial industry • Solution for processing Transaction • ICT industry general contractor • ICT industry’s investment
FANAP Company increased its capital from IRR 5.1 billion to IRR220 billion from profits since its establishment for developing current business and investing in new activities (this will be continued). One of the most important achievements of FANAP is changing its market share from just Pasargadian market to current situation earning more than %85 of its income from non-Pasargadian Financial group). According to IMI 100 ranking, in the 15th conference held by the Industrial Management Institute of Iran, which ranks the first top 100 superior Iranian companies, FANAP has been ranked 293. It is the 4th in IT field based on revenue. One of the most important tasks of FANAP is presenting effective pattern in business environment among IT & Knowledge Based Companies.
37 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Pasargad Insurance Company
Pasargad Insurance Co. was established in 2006, with IRR 450 billion initial capital. With two steps raise of capital, the current paid-capital of Pasargad Insurance Co. is IRR 630 billion. Also the extraordinary general meeting of this year approved raise of capital. Company’s area of activity includes direct insurance operation, accepting reinsurance and technical reserve regarding Iran’s Central Insurance company rules. Company’s total income from Insured premium was IRR 3394 billion and its market share was 2.5 % of market in 2012. In the first national conference of health, Insurance &bank held by Medical Council, the Company achieved Hippocrates Award due to significant impact on country’s health promotion.
Iranian Reinsurances Company
Iranian Reinsurances Co. was established as the first Iranian private reinsurance company on March 2010, under license of Iran’s Central Insurance and securities & Exchange Organization with participation of Pasargad financial group. Company’s capital is IRR 1535 billion, 69% of which has been paid by December of 2012.
Area activities of Company: • Accept reinsurances in all fields of domestic and international markets based on license issued by Central Insurance of Iran; • Establishing, participating or managing domestic and international reinsurance funds; Obtaining reinsurance coverage in relation with obligations of accepted insurance; • Investing from capital Reserves, technical and legal reserves and other company’s finan- cial resource; • Providing side services in reinsurance field;
Bank Pasargad Machinery and Equipment Leasing Company
The company was established with main objective of financing the machinery and equipment purchases and leases. Company obtained license from Central Bank of Iran for granting facility for machinery and equipment lessors. Its activities are as following: • Petrochemical, Gas and Oil • Hospital and Medical equipment • Mine and industry equipment • Contractor • transportation (Air, Rail, Sea, Ground) • Automobile • telecommunication and computer equipment
38 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Pasargad Leasing Company
Pasargad House Leasing company was established in 2005 in the Name of “Investment and Leasing of Capital National Market Development” with initial capital IRR 2 billion by individuals. The major share of company’s capital was purchased by Bank Pasargad and now its latest capital is IRR500 billion. Its Area of activity is purchasing different goods. Company grants facilities in framework of Islamic contract and just as Installment contract.
Area of activities of company: • granting facility for purchasing administrative units • granting facility for purchasing commercial units • granting facility for purchasing Residential Units and offices for engineer and doctors • granting facility for buying building material
The most important achievements of leasing Co. in 2012 are: • development in granting facility activities especially in construction sector • Completion of Nahid and Danesh projects • Increasing revenue from discount of sales • IRR 303 billion operational profit in 2012
Pasargad Arzesh Afarinan Company
Pasargad Arzesh Afarinan was established in 2005. The Company’s capital is more than IRR 2000 billion. Company is active in building and mine, financial service and energy sectors. Company’s investments are more than IRR 4195 billion in 2012.
Mabnaye Khavar Miyaneh Company
Company was established in 2005 in Companies Registration Office and Industrial Property. Initial capital of the company was IRR 300 Billion and now the current registered capital is IRR 1400 billion.
Area activities of company: • Investing, participating, developing, Completing, Reconstructing, launching different in- dustrial projects. • Investing in different sections of economic , manufacturing and commerce, domestically or internationally • Establishing Khavar Miyaneh Mining and Industry Holding Co. (MIDHCO) • Investing in other precious and rare metals
39 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Pasargad Energy Development Company
With the aim of investing in energy and related industries, it was established in 2008. The main activity of company generally is in energy field especially in Hydrocarbon industry. The main mission of company is obtaining outstanding market share in petrochemical and energy section. The company is investing in different fields, domestically and internationally such as: • Power plants and producing electricity • New Energies • Facilities related to the transmission and distribution of energy • Presenting professional services in energy section
Bank Pasargad E-Payment Company
As one of the Pasargad financial group companies, it was first established in 2005.
Main goals of bank Pasargad E-Payment Company: • Issuance of different card Issuance (debit, credit, gift, shopping , … cards) • POS terminal • payment gateway services • virtual system • monitoring and implementation of WAN and LAN • implementation of different projects in relation with card industry
Pasargad Exchange Company
The Company was established in Companies Registration Office and Industrial Property in 2009. Company has started its activities since 2010. Company’s area of activity includes currency exchange operations in cash or payment orders under Iran central bank’s rules and regulations.
Bank Pasargad Brokerage Company
The Company was established with IRR 50 billion registered and paid up capital in 2006. Company has lots of branches in Tehran, Isfahan, Qazvin and Zanjan. Company’s main office is in Arak. Company is operating in field of buying and selling securities and its right issue in stock exchange of listed companies.
40 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Hashtom Urban Construction Company
The Company was established in Companies Registration Office. Company’s Area of activity: • Investing and participation in construction projects • Investing and participation in Renovation and refurbishment of old texture around Imam Reza shrine in Mashhad
Completed and under construction building projects: • Elahie Project • Danesh Project • Residential and commercial project.
Pasargad Property Development Company
Company was established in Companies Registration Office and Tehran Industrial Property in 2007. Company’s main office is in Tehran. As an activity of a company, we can mention independent or shared Investments in construction projects.
Ariayan Arzeshpardaz Investing Consulting Company (AAICCO)
The Company was established with IRR 11 billion in Companies Registration Office and Industrial Property in 2011, for presenting effective and optimum services and managing financial affairs of legal entities and individuals. Currently, the Company’s capital is IRR22billion. AAICCO is one of the movers and independent units in collecting, analyzing and disclosing of company’s basic information, industry and financial market.
Pasargad Research and management & Human Capital Development Institute
Pasargad research and management and human capital development institute was established as an educational and research center in field of management and human capital development of bank Pasargad’s in 2010.
Main tasks and priorities of institute: • educating Bank pasargad’s employees at different levels • holding different seminars • research activities • holding international courses • holding masters courses for bank young managers and experts by international universi- ties such as Nice and Grenoble • holding financial and accounting International professional courses • establishing Khatam University
41 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
The institute established a comprehensive graduate and post-graduate university levels. In the first half of year 2012-2013, the institute has started to operate in Accounting field in bachelor level and accounting, financial engineering, industrial engineering, teaching English at master level.
42 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
43 Bank Pasargad Report of the Independent Auditor
Report of the Independent Auditor
To the Annual General Meeting Bank Pasargad (PLC)
Report on the financial statements 1. We have audited the Pasargad financial group and Bank Pasargad (PLC) financial state- ments which comprise the consolidated and bank statement of financial position as at march 20, 2013, statement of profit and loss, comprehensive statement of profit and loss and statement of cash flows for the year ended in mentioned date and explana- tory notes (1) to (61) thereto.
Management responsibility for the financial statements 2. Management is responsible for the preparations and fair presentation of these finan- cial statements in accordance with (Iranian) accounting standards. This responsibil- ity includes designing, implementing and maintaining internal control relevant to the preparations and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s responsibility 3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with (Iranian) standards on auditing. Those standards require that we comply with ethical requirement and plan and per- form the audit to obtain reasonable, but not absolute, assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the 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 financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our audit opinion. Also this institute is responsible to report to the Ordinary General Meeting the necessary cases and cases of non-compliance with requirement of Revised Commercial Act and contents of the Bank’s Article of Association and the Monetary and Banking Regulations of I.R.R., as well as, doing duties of legal inspector. Bases of qualified opinion 4. As described in note 30 of the financial statements, the tax assessed for the years 2009 to 2011 by Iranian NationalTax Administration exceed the provision made in the accounts; meanwhile bank’s corporate tax for the reported fiscal year is calculated on self-assessed bases. In such circumstances, the tax provision deficit in accounts is apparent, and the exact amount of final tax is subject to the final ruling of the tax au- thorities.
5. As described in note 9 of the financial statements regarding the contents of Notes 4-14 and 4-15 Significant Accounting Policies, adequacy of provisions for the portion of the balance of facilities granted and L/Cs’ debtors is dependent to the assumption of effectiveness of the measures taken, which include “extension and renewal of con- tracts” and “reduction of credit risk” (according to necessary credit scoring parameters of clients receiving facilities and providing its necessities). In such circumstances, the cover of any probable risk of bank’s assets has not been established for this institute.
Qualified opinion 6. In our opinion, with the exception of the provisions in paragraphs 4 and 5, the financial statements referred to above, present fairly, in all material respects, the financial posi- tion of Bank Pasargad (PLC) and its group as at March 20, 2013, and the results of its operations and those of the group and its cash flows and those of the groups for the year then ended in accordance with (Iranian) Accounting Standards.
Emphasis on certain content 7. As described in note 2-6 of the financial statements, bank’s follow up about refund of IRR 1,452 billion CBI withdrawal from bank’s accounts as the exchange rate difference at the end of the previous financial year is in progress yet, meanwhile the CBI an- nounced amount of overdraft penalty has not been reflected in bank’s accounts.
8. As described in note 9 and 27 of the financial statements regarding the content of Notes 4-18 Significant Accounting Policies, conditions of CBI instruction No. 60/1038 dated 2/21/2013 on procedures of fulfilling the previous foreign exchange commit- ments are not fully complied.
Our opinion has not been qualified regarding paragraphs 7 and 8. Other explanatory paragraphs 9. The financial statements of the year ended march 19, 2011 were audited with another audit institute which expressed unqualified opinion on mentioned financial statements in report dated April 28, 2012.
Report on other legal and regulatory requirements Report on other legal Inspector duties 10. Despite the efforts of the Board in order to comply with the provisions of Article 240 of the Revised Commercial Code, the amount of dividend payable from profits of IRR146 billion over the past few years has not been claimed.
11. Transactions in Note 61 of the financial statements have been studied, as all transac- tions covered by Article 129 of the Revised Commercial Code, which had dealt during the reported fiscal year and have been announced by the board. The mentioned trans- actions have complied with legal formalities in mentioned article about the permission of the board of directors without the beneficiary manager’s votes. Furthermore, in our opinion, mentioned transactions were based on specific relationships among group’s companies, so final confirmation is subject to annual ordinary general meeting quali- fication.
12. Board report about the activities and position of the company for submitting to the ordinary general meeting, subject of Article 232 of the Revised Commercial Code, has been studied. According to our investigation, we are not attracted to matters of con- tradictory information contained in the report with the documents provided by the board.
Report on other auditor’s legal and regulatory responsibilities Cases of non-compliance with banking regulations and circulars 13. Circulars No. 1345/MB year 2001, 2823/MB year 2006, 183/MB year 2007 (credit insti- tutions’ investment instructions) 87/126331 year 2008, 88/7038 year 2009, 89/173772 year 2010, 90/56920 year 2011, 60/1034 year 2012 and operating instructions of mon- etary and banking operations in free trade-Industrial zones of IRI approved by Money and Credit Council in year 2000, procedures of doubtful debt provision of credit institu- tions approved by CBI in year 2011 and clause 3 of article 17 of the policy-regulatory package dated 1/25/2012 and criteria contained in clause 1 of article 186 of the direct tax law, have not been fully complied.
Cases of non-compliance with the requirements of Securities and Exchange Organization (SEO) 14. SEO requirements about adoption of Bank article of association with the SEO accepted one, full disclosure of Bank financial statement in accordance with the accepted fi- nancial statements and provision of article 3 to 7 at executive instruction about infor- mation disclosure. We draw the ordinary general meeting attention to the content of provisions of this report about compliance of article 17 at relevant instructions in SEO with subject of DPS forecast and also regarding article 18 at mentioned instruction and requirement of article 240 of Revised Commercial Act.
Requirements of Anti-Money Laundering Act 15. In implementing the provisions of Article 33 of the executive instruction of Anti-Money Laundering Act, we have assessed the compliance with the mentioned law and rel- evant executive regulations and instructions, within the framework of list notified by relevant reference and also auditing standards. Our attention is not attracted to- ma terial cases of non-compliance with the requirements of the law in the scope of our investigation (production and revision of some of relevant softwares and forms are in progress). BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012 744 (1,500) 106,232 287,077 167,716 6,097,161 8,975,071 2,814,029 2,004,151 9,167,993 1,790,285 3,228,976 2,753,329 3,631,045 1,210,348 4,751,077 3,631,694 1,120,859 11,336,462 27,258,000 36,848,970 40,480,664 50,553,757 25,039,992 142,965,618 191,694,100 232,174,764 m.IRR (Restated) March 19, 2012 (Restated) March 745 (3,001) 258,112 690,321 158,135 3,011,757 4,470,314 3,700,360 9,006,381 5,974,029 2,307,354 3,513,233 5,618,030 1,872,676 9,513,379 5,589,610 17,416,254 25,690,915 30,000,000 47,001,084 52,590,694 45,032,654 28,821,322 12,810,624 188,500,377 264,697,542 317,288,236 m.IRR March20, 2013 March20, 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Note 55-1 55-2 55-3 55-4 Demand Deposits Saving Deposits Other Deposits Advances Received Payable Tax Corporate Return Payable to Deposits Dividends Payable Provision for Employees Retirement Benefits EQUITY: SHAREHOLDERS’ Share Capital Statutory Reserve Discretionary Reserve Retained Earnings Unrealized gain/(loss) (Parent) EQUITY SHAREHOLDERS’ TOTAL INTEREST MINORITY EQUITY SHAREHOLDERS’ TOTAL LIABILITIES AND TOTAL EQUITY SHAREHOLDERS’ ITEMS: OFF-BALANCE SHEET Commitments for L/Cs Commitments for L/Cs Other Commitments LIABILITIES: Due to CBI Deposits Term Accounts and Notes Payable Accounts Payable and Provisions Other Facilities Received LIABILITIES TOTAL Managed Funds Commitments 744 264,000 497,989 627,007 105,933 BANK PASARGAD (PLC.) BANK PASARGAD 1,320,960 5,825,718 4,937,594 1,367,266 3,539,989 4,577,985 6,383,684 4,614,413 1,120,859 20,851,525 35,654,974 12,626,648 50,553,757 25,039,992 128,979,079 232,174,764 m.IRR (Restated) March 19, 2012 (Restated) March 745 882,713 168,277 345,253 142,554 5,611,555 1,390,794 5,787,195 8,045,248 4,601,310 6,276,781 5,198,679 11,864,471 28,544,993 51,487,727 22,584,309 45,032,654 28,821,322 12,810,624 164,356,377 317,288,236 m.IRR March 20, 2013 March 5 6 7 8 9 11 10 12 13 14 15 16 17 18 19 20 Note 55-1 55-2 55-3 55-4 Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013 Ended March Year Financial The for Flows of Cash Statement Consolidate ASSETS: ASSETS TOTAL ITEMS: OFF-BALANCE SHEET Commitments for L/Cs Commitments for L/Gs Other Commitments Managed Funds Cash Due from CBI Due from other Banks and Credit Institutions Participation Papers Credit Facilities Granted Accounts and Notes Receivable Accounts Receivable Other Inventories Prepayments and Orders Lease Receivables Associates Investments in Subsidiaries and Other Investments Assets Fixed Tangible Assets Intangible Assets Other Consolidated Goodwill
50 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
Note 2013/2012 (Restated) 2012/2011 INCOME: m.IRR m.IRR Income on Credit Facilities Granted 38 30,000,929 22,614,373 Income on Investments and Deposits 39 7,539,284 5,457,540 Sale’s and Service’s Income 40 10,031,614 11,642,664 Commission Income 41 4,975,775 2,428,808 Foreign Exchange Transactions - Net Gain 42 8,572 517,184 Other Income 43 833,369 397,954 Total Income 53,389,543 43,058,523 Expenses: Depositor’s Share of Income 44 (24,554,316) (18,839,712) Cost of Goods and Services Sold 46 (8,617,353) (10,707,306) Personnel Expense 47 (1,621,462) (1,176,788) General and Administrative Expense 48 (1,197,683) (938,635) Doubtful Debts Expense 49 (1,689,547) (780,832) Finance cost 50 (1,061,078) (442,353) Net Other Income (Expense) 51 (22,194) (218,123) Total Expense (38,763,633) (33,103,749) Profit Before Tax 14,625,910 9,954,774 Tax (1,068,099) (412,739) Net Profit 13,557,811 9,542,035 Minority Interest (1,337,109) (501,240)
Earning Per Share (Based on Number of Shares Outstanding at Balance Sheet Date million shares after tax)
Earning Per Share-IRR. 407.36 331.67 Number of Shares Outstanding at Balance Sheet Date-million Shares 30,000 27,258 Earning Per Share-IRR. (Based on Weighted Average Number of Shares Outstanding
During the Year after tax) Earning Per Share-IRR. 428.65 346.66 Weighted Average Number of Shares Outstanding During the Year-million shares 28,510 26,080
Movements of Consolidated Retained Earnings Net Profit 13,557,811 9,542,035 Retained Earnings at the beginning of the year 8,209,665 5,592,128 Prior Periods Adjustments (2,842,834) (3,714,405) Retained Earnings Available for Allocation 18,924,642 11,419,758 Less: Profit Allocation Declared Dividends (6,310,796) (4,162,831) Statutory Reserve (1,986,985) (1,398,293) Discretionary Reserve (662,329) (491,803) Capital Raise (16,200) - Total Profit Allocated During the year (8,976,310) (6,052,927) Retained Earnings at the End of the Year 9,948,332 5,366,831 Minority Interest in Retained Earnings 434,953 615,754
BANK PASARGAD (P.L.C) COMPREHENSIVE CONSOLIDATED STATEMENT OF PROFT AND LOSS FOR YEAR ENDED MARCH 20,2013
2013/2012 (Restated) 2012/2011 m.IRR m.IRR Net Profit 13,557,811 9,542,035 Unrealized Loss (3,056) (1,500) Comprehensive profit 13,554,755 9,540,535 Prior Periods Adjustments (2,842,834) (3,720,462) Total Recognized Comprehensive profit (from last year 10,711,921 5,820,073 report) Minority Interest 1,306,582 461,807
51 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
Note March20, 2013 (Restated) March 19, 2012 m.IRR m.IRR OPERATING ACTIVITIES: Net Cash In-flow (Out-flow) from Operating Activities 52 20,849,925 22,808,763
RETURN ON INVESTMENTS AND SERVICING OF FINANCE:
Dividends Received 193,400 168,211
Dividends Paid (4,241,063) (224,840) Finance Cost (337,564) (868,070) Net Cash In-flow (Out-flow) from Return on Investments and Servicing (4,385,227) (924,699) of Finance
TAXATION: Corporate Taxes Paid (1,989,721) (337,355)
INVESTING ACTIVITIES: Proceeds from Sale/(Payments for Acquisition) of (584,049) (8,862,501) Investments & Participation Payments for Purchase of Tangible Fixed Assets (12,065,342) (5,332,794) Proceeds from Sale/(Payment for Acquisition) of 1,927,299 907,799 Investments Payments for Acquisition of Intangible Assets (5,483) (304,101) Proceeds from Sale of Fixed Assets 1,820,750 102,560 Net Cash In-flow (Out-flow) from Investing Activities (8,906,825) (13,489,037) Net Cash In-flow (Out-flow) before Financing Activities 5,568,152 8,057,672
FINANCING ACTIVITIES: Receipts from Capital Raise 579,202 921,562 Receipt of Facilities 4,521,308 6,990,841 Net Cash In-flow (Out-flow) from Financing Activities 5,100,510 7,912,403
Foreign Currency Fluctuations 8,572 517,027
Net Increase (Decrease) in Cash 10,677,234 16,487,102
Cash at the Beginning of the Year 18,352,534 1,865,432
Cash at the End of the Year 29,029,768 18,352,534
52 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012 744 118,660 118,660 152,217 6,097,161 8,985,693 2,847,463 2,790,499 3,120,935 2,753,329 3,631,045 1,210,348 6,317,105 1,120,859 12,064,443 27,258,000 38,416,498 50,553,757 25,039,992 m.IRR 144,461,548 183,391,948 221,808,446 (Restated) March 19, 2012 March 745 146,035 179,048 4,470,314 3,713,887 2,042,571 3,513,442 5,618,030 1,872,676 17,418,558 10,019,485 13,080,247 30,000,000 10,619,029 48,109,735 43,786,654 28,216,566 12,376,594 194,370,304 248,953,891 297,063,626 m.IRR March 20, 2013 March 21 22 23 24 25 27 30 31 32 33 34 35 36 55-1 55-2 55-3 55-4 Note LIABILITIES: TOTAL LIABILITIES TOTAL EQUITY: SHAREHOLDERS’ Share Capital Statutory Reserve Discretionary Reserve Retained Earnings EQUITY SHAREHOLDERS’ TOTAL Due to CBI Demand Deposits Saving Deposits Deposits Term Other Deposits Accounts Payable and Provisions Other Payable Tax Corporate Return on Deposits Payable Dividends Payable Provision for Employees Retirement Benefits EQUITY AND SHAREHOLDERS’ LIABILITIES TOTAL ITEMS: OFF-BALANCE SHEET Commitments for L/Cs Commitments for L/Gs Other Commitments Managed Funds BANK PASARGAD (PLC.) BANK PASARGAD 744 1,111,280 1,111,280 5,825,718 1,699,059 4,250,786 1,535,809 2,287,770 1,120,859 11,264,646 11,264,646 20,851,525 35,654,974 50,553,757 25,039,992 m.IRR 137,326,879 221,808,446 (Restated) March 19, 2012 March
745 758,098 6,253,924 6,800,029 2,014,266 2,623,873 11,864,471 11,864,471 11,927,019 28,544,993 51,487,727 43,786,654 28,216,566 12,376,594 m.IRR 174,789,226 297,063,626 March 20, 2013 March Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013 Ended March Year Financial The for Flows of Cash Statement Consolidate 5 6 7 8 9 11 17 18 19 55-1 55-2 55-3 55-4 Note 15, 16 ASSETS: Cash Due from CBI Due from other Banks and Credit Financial Institutions Participation Papers Credit Facilities Granted Accounts Receivable Other Investments Assets Fixed Tangible Assets Intangible Assets Other ASSETS TOTAL OFF-BALANCE SHEET ITEMS: Commitments for L/Cs Commitments for L/Gs Other Commitments Managed Funds Commitments
53 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
Note 2013/2012 Restated 2012/2011 JOINT INCOME: m.IRR m.IRR Income on Credit Facilities Granted 38 32,063,460 24,137,335 Income on Investments and Deposits 39 7,092,945 5,088,007 Gross Joint Income 39,156,405 29,225,342 On-Account Payment to Depositors 44 (24,882,089) (19,078,331) Bank’s Share of Joint Income 14,274,316 10,147,011
Non-Joint Income Income on Investments and Deposits 39 31,721 61,245 Commission Income 41 4,843,655 2,335,786 Foreign Exchange Transaction Gain (Loss) 42 8,572 517,184 Other Income 43 402,703 231,391 5,286,651 3,145,606 TOTAL INCOME 19,560,967 13,292,617
EXPENSE General and Administrative Expense 47-48 (2,731,396) (2,154,758) Doubtful Debts Expense 49 (1,847,631) (775,944) Finance Cost 50 (792,800) (202,095) TOTAL EXPENSE (5,371,827) (3,132,797) Profit before Tax 14,189,140 10,159,820 Tax (942,572) (323,741) Net Profit 13,246,568 9,836,079
Earning Per Share Information Earning Per Share-IRR. (Based on Number of Shares Outstanding at Balance Sheet 441.50 360.85 Date - million shares) Number of Shares Outstanding at Balance Sheet Date 30,000 27,258 Earning Per Share-IRR. (Based on Weighted Average Number of Shares Outstanding 464.62 377.15 During the Year) Weighted Average Number of Shares Outstanding During the Year - million shares 28,510 26,080
Movements of Retained Earnings Net Profit 13,246,568 9,836,079 Retained Earnings at the Beginning of the year 9,114,299 5,525,117 Prior Periods Adjustments (Mainly Prior Years Taxes) (2,797,194) (2,909,086) Earnings available for Allocation 19,563,673 12,452,110
Less: Profit Allocation Declared Dividends (6,279,130) (4,167,790) Statutory Reserve (1,986,985) (1,475,412) Discretionary Reserve (662,329) (491,803) Capital Raise (16,200) Approved payable profit (8,944,644) (6,135,005) Retained Earnings Available for Distribution at the End of the Year 10,619,029 6,317,105
54 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
Note March20, 2013 (Restated) March 19, 2012 OPERATING ACTIVITIES: m.IRR m.IRR Net Cash In-flow (Out-flow) from Operating Activities 53 18,526,628 12,985,026
RETURN ON INVESTMENTS AND SERVICING OF FINANCE: Dividends Received 690,020 513,300 Dividends Paid (4,138,713) (14,315)
Net Cash In-flow (Out-flow) from Return on (3,448,693) 498,985 Investments and Servicing of Finance
TAXATION: Corporate Taxes Paid (2,020,936) (267,887)
INVESTING ACTIVITIES: Payments for Acquisition of Investments (593,044) (2,086,466)
Payments for Purchase of Fixed Assets (2,747,574) (1,887,256)
Payments for Acquisition of Intangible Assets (494,780) (225,947) Proceeds from Sale of Investments 444,845 11,905 Net Cash In-flow (Out-flow) from Investing Activities (3,390,553) (4,187,764) Net Cash In-Flow (out-Flow) before Financing Activities 9,666,446 9,028,360
FINANCING ACTIVITIES: Receipts from Subscription of Share Capital 579,202 921,562 Net Cash In-flow (Out-flow) from Financing Activities 10,245,646 9,949,922 Foreign Currency Fluctuations 8,572 517,183 Net Increase (Decrease) in Cash 10,254,218 10,467,105 Cash at the Beginning of the Year 18,142,854 7,675,750 Cash at the End of the Year 28,397,072 18,142,855 Non-Cash Transactions 54 4,596,140 8,056,438
55 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
1- BANK’S ACTIVITIES
1-1- Background: Bank Pasargad was established in accordance with the establishment law of private banks of Iran, and was registered under No-254300 with the Tehran Companies Registrar Office on September 4, 2005. The Central Bank of the Islamic Republic of Iran (CBI) issued The Banking Operation License No-2849 on September 13, 2005.
The head office is located at: No. 430, Mirdamad Blvd., Tehran 19697-74511, Iran
1-2- Activities: Bank Pasargad offers all kinds of banking products and services; core business includes commercial, retail, and wholesale banking. All banking activities are performed in accordance and in compliance with the regulatory laws, set by CBI.
1-3- Number of employees: Number of employees working for the Bank and the Group were as follows at Year End:
Group Bank 2013/2012 2012/2011 2013/2012 2012/2011
Number of Number of Number of Number of Employees Employees Employees Employees
Headquarters 518 476 518 476 Tehran Branches 1,816 1,702 1,816 1,702 Other Cities Branches 1,057 1,054 1,057 1,054 Employees in Training 5 19 5 19 Affiliate Companies 3,324 2,457 - - Total 6,720 5,708 3,396 3,251
1-4- Branches: The Bank’s number of branches were as follows at year end:
Bank 2013/2012 2012/2011 Tehran branches 192 192 Other cities’ branches 103 102 Free zone branches 2 2 Total 297 296
56 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
2- BASIS FOR PREPARATION OF FINANCIAL STATEMENTS
The Bank’s financial statements are prepared on historical cost basis; revenues and expenses are recorded on accrual basis and in certain circumstances current values are used as well.
3- BASIS FOR CONSOLIDATION
3-1- Consolidated financial statements have been prepared based on summation of financial statements of the bank and its relevant subsidiaries after elimination of the effects of intercompany transactions and profit or losses thereto.
3-2- As for subsidiaries acquired during the year, results of operations of such subsidiaries are reflected in the consolidated financial statements from date of acquisition of full-effective control and for subsidiaries sold during the year, results of operation up to date of sold would be duly reflected in the consolidation.
3-3- Fiscal year of two subsidiaries namely, Pasargad Arian Construction Co. and Pasargad Mass-Construction Development Co. end of November; however, their financial statements have been consolidated with those of the bank in the same bases using interim information with required post balance sheet date adjustments.
4- SIGNIFICANT ACCOUNTING POLICIES
4-1- Inventories: Inventories of raw material and goods are valued at “lower of cost and net sale value” of each item. If net realizable value is less than the cost, required provisions are reflected in the accounts. Cost of inventories are calculated using weighted average method.
4-2- Investments: In group Consolidated Account In Parent Company Account LONG-TERM INVESTMENTS Valuation: Investments in Subsidiaries Eligible for Consolidation method Cost method (less provision for permanent consolidation decrease in value of investment) Long-term Investment in Affiliates Equity Method Cost method (less provision for permanent decrease in value of investment) Other Long-Term Investments Cost Method Cost method (less provision for permanent decrease in value of investment) SHORT-TERM INVESTMENTS Marketable investment Lower of cost or net realizable value Lower of cost or NRV value of portfolio investment portfolio Other Short-Term Investments Lower of cost or NRV for each Lower of cost or NRV value of each investment investment item item Revenue Recognition: Investment in Subsidiaries Eligible for Consolidation upon approval of dividend by investee’s AGM (up to authorization of financial statements) Investment in associate Equity method upon approval of dividend by investee’s AGM (up to authorization of financial statements) Other long- term & short-term investments Cost Method upon approval of dividend by investee’s AGM (up to the balance sheet date) Pasargad Financial Group: The group of companies related to Bank Pasargad are categorized as “Pasargad Financial Group” irrespective of subsidiary or associate of the Bank.
57 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
4-3- Recognition of Revenue in the Parent Company In accordance with paragraph 62 of the Bank Pasargad Article of Association, income from banking activities and financial facilities granted, is recorded on accrual basis. Income from banking services is realized when received. Income from investment in subsidiaries and affiliated companies is realized when declared by the investee (up to the date of authorization of financial statements). Differences arising from fluctuation in exchange rates, are recorded as revenue or loss of the period incurred.
4-4- Income from Installments Sales in Subsidiaries Income from installment sales in subsidiaries is recognized in installments. Installments’ include the principal investment plus return and, in some cases, an insurance premium.
4-5- Revenue on Lease Arrangements Revenue from capital lease arrangements is realized in installments, based on rental payments. Lease payments include investment in principal and returns earned.
4-6- Recognition of Late Payment Penalty Income In subsidiaries, late payment charges are calculated on the basis of rates stipulated in leasing contracts. However, to comply with the principle of conservatism, additional penalty charges are realized when received.
4-7- Revenues arising from lease arrangements in subsidiaries Leased properties are reflected at cost less accumulated depreciation. Depreciation is calculated on the basis of the lease net investment (in installment payments of lease) as per the related contract from the date of first installment payment using the following methods: A- Future value of investment is calculated on the basis of the rate stipulated in the lease agreement starting from date of payment up to the first installment as “Capital”. B- Using the rate stipulated in the lease agreement, the implied return on capital is calculated at the inception of lease is calculated and any remaining differences will the depreciated along with installments. C- Investment in the beginning of each installment, comprises lease capital less any depreciation calculated up-to that date. D- Total depreciation expense comprises sum of annual deprecation of the assets. Maintenance and repair expenses, if any, shall be borne by the lessee.
4-8- Recognition of Projects Income (subsidiaries) In accordance with accounting standard No.29 income from construction projects is calculated on the basis of projects’ percentage of completion. Construction costs include all expenditures related directly or indirectly to the project or allocated to it. Revenue is realized when sales are finalized, at least 20 percent of the price is received, construction activities are started and net proceeds from the project are reasonably measured .
4-9- Revenues from Insurance contracts ( subsidiaries ) • Income from non-life insurance policies: Considering reserves provided for losses and unearned premium, net insurance premiums for non-life insurance are realized as income from insurance policies over the policy period and over loss acceptance period (for Re-insurance Agreements). • Income from life insurance policies: Revenue from life insurance policies is realized when received and after deducting of policies returned. • Reserves for contingent insurance losses are provided in the accounts, in accordance with the by-laws prescribed by the “High Council of Insurance” and the modifications thereto as well as other obligations imposed on insurance companies.
58 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
4-10- Fixed Assets
4-10-1- Tangible fixed assets are recorded at historical cost. Expenditures enhancing useful life, capacity or quality of such assets are capitalized and depreciated. General repair and maintenance charges are recorded as expense when incurred.
4-10-2- Fixed assets are depreciated in accordance with the rules stipulated in Article 151 of the Direct Taxation Act, using the following rates and methods.
Fixed Assets Dep. Rate Dep. Method Buildings 7%, 8%, 10% Reducing balance Installations 20% Reducing balance Motor Vehicles 25 % & 30% Reducing balance Computer Hardware 3 Years Straight line Communication Equipment 10 Years Straight line Furniture & Fixtures 10 Years Straight line ATM POS Machines 3 Years Straight line
4-10-3- Fixed assets acquired during the month are depreciated starting from the following month. In cases which assets are not deployed after its readiness due to working halt or other reasons, depreciation is calculated on 30% above mentioned rate.
4-11- Intangible Assets In accordance with regulations set by CBI, no amortization is assumed for lease-hold premium paid for branch sites, offices, and land by the Bank. Software are amortized over three years using the straight-line method. No amortization is calculated for other intangible assets.
4-12- Realization of Income from Credit Facilities, Fines and Commissions In accordance with banking regulations, income from banking activities and credit facilities granted are recorded on accrual basis are as follows:
Type of Income Basis for Recognition of Income Based on time period, balance of facilities granted and minimum expected Income from facilities granted income. Based on time period, amount of delayed payments and charge rates foreseen Late payment charges in the contract on accrual basis. Commission on L/Gs When L/G is issued
Other banking services commissions When services are rendered.
4-13- Basis for Calculating the Depositors’ Share of the Bank’s Joint Income: In accordance with the usury-free banking law and related regulations, income arising from facilities granted, income from investment in stocks and income from participation papers are considered as “Joint Income”; it is divided on the basis of investment capital contributed (by depositors and the Bank).
59 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
4-14- Classification of Granted Facilities: Financial facilities are classified based on rules established by the Money and Credit Council of CBI and on the basis of time delayed payment, financial status of customer and customer’s industry, with the following categories: Current: Maximum 2 months overdue; customer is in good financial position and industry has acceptable prospect Over-due: 2 to 6 month over-due; customer is in good financial position and industry has limited growth Bad Debt: 6 to 18 months over-due; customer is not in good financial position and industry faces major limitations Doubtful Debt: More than 18 months over-due; customer does not have an acceptable financial position
4-15- Provision for Doubtful Accounts: Allowance is provided for doubtful accounts, based on the Money and Credit Council of CBI, as follows:
• General provision, equal to 1.5 percent of facilities balance except overdue, deferred and doubtful accounts in which allowance for special impairment loss is provided. • Over due category 10% • Bad Debt category 20% • Doubtful debt category (Based on customers capabilities) 50% to 100% • Doubtful debt category more than five years over-due 100%
4-16- Provision for Termination Pay A provision, equivalent to one month salary for each full year of service, is provided in the accounts to cover employees’ termination pay.
4-17- Financial Expenses Financial expenses are recognized as expense in the period incurred, except charges directly related to acquiring an asset.
4-18- Foreign Exchange Transaction Monetary assets and liabilities in foreign currencies are converted into IRR Reference exchange rate prevailing at balance sheet date; any differences arising from exchange rate fluctuations are recorded as Foreign Exchange Translation gain or loss of the period.
4-19- Goodwill in Consolidated Financial Statements Goodwill arising from application of the purchase method in preparing consolidated financial statements is amortized over a 20 year period.
60 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
5- CASH Balance of cash includes: Group Bank Not 2013/2012 2012/2011 2013/2012 2012/2011 m.IRR m.IRR m.IRR m.IRR Cash in Hand 5-1 640,996 748,959 637,172 746,054 Notes in Foreign Currencies 226,343 407,230 120,926 365,226 Other 500,431 159,931 - - Petty Cash 23,024 4,840 - - Total Cash 1,390,794 1,320,960 758,098 1,111,280
6- DUE FROM CBI Amounts due from CBI includes the following items receivable by the parent company.
Not 2013/2012 2012/2011 m.IRR m.IRR Statutory Deposit 6-1 24,194,922 17,448,585 Statutory Deposit Reward 208,320 169,395 Foreign Currency Demand Deposits with CBI 2,689,669 1,781,463 Other 6-2 1,452,082 1,452,082 Total 28,544,993 20,851,525
6-1- Statutory deposit with CBI is computed on the basis of Paragraph (3) of Article 14 of the Monetary and Banking Law of Iran, and in accordance with the provisions imposed by the Money and Credit Council, as follows: 20-March-2013 19-March-2012 Reserve Reserve Requirement Requirement Ratio % m.IRR Ratio % m.IRR Short-term Deposits 15.5 9,874,534 15.5 7,172,918 Demand Deposits 17 4,030,830 17 1,757,206 Saving Deposits 10 46,983 10 31,956 Two to Three Years Term Deposits 11 1,665,206 11 1,133,234 Four Years Term Deposits 10 16,649 10 27,745 Five Years Term Deposits 10 7,966,275 10 6,805,336 L/G Deposits 17 339,392 17 263,957 L/C Advances 17 25,551 17 21,986 Free-zone Deposits 10 229,502 10 234,247 Total 24,194,922 17,448,585
61 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
7- DUE FROM OTHER BANKS AND FINANCIAL INSTITUTIONS
Amounts due from CBI includes the following items receivable by the parent company.
Not 2013 2012 m.IRR m.IRR Deposits with Local Banks (IRR.) 7-1 15,894,068 14,451,630 Long Term Deposits with Foreign Banks (foreign currencies) 7-2 2,275,523 1,195,827 Demand Deposits with Banks (Foreign Currencies) 7-2 27,630,710 17,016,764 Cheque in Clearing House 5,687,426 2,990,753 Total 51,487,727 35,654,974
7-1- Deposits with local banks (IRR)
March 20, 2013 - m.IRR March 19, 2012 - m.IRR
Demand Term Demand Term Total Total Deposits Deposits Deposits Deposits Ghavamin Bank - - - - 15,001 15,001 Mehr Finance and Credit Institute - 2,217,585 2,217,585 - 2,387,275 2,387,275 Samen Finance and Credit Institute - 133,095 133,095 - 1,525,891 1,525,891 Mellat Bank 218 596,017 596,235 171 1,202,535 1,202,706 Sina Bank - 900,202 900,202 - 1,200,003 1,200,003 Melli Bank 2,835 201,914 204,749 1,912 80,294 82,206 Saderat Bank 3,253 4,198,016 4,201,269 5,553 2,079,212 2,084,765 Tejarat Bank 1,435 2,292,829 2,294,264 5,886 1,935,301 1,941,187 Sarmayeh Bank - 903,509 903,509 - 303,619 303,619 Tose'e Finance and Credit Institute - - - - 400,000 400,000 Keshavarzi Bank - 55,120 55,120 - 155,082 155,082 Sepah Bank 255 983,672 983,927 1,034 435,498 436,532 Maskan Bank 63 92,425 92,488 - 38,631 38,631 Bank of Industry and Mine - 9,480 9,480 - 8,843 8,843 Refah Kargaran Bank 5 132,567 132,572 - 565,608 565,608 Tose'e Ta'avon Bank - 455 455 - - - Shahr Bank - 849,465 849,465 - 17,463 17,463 Tourism Bank - 1,150,000 1,150,000 - 1,150,000 1,150,000 Karsazan Ayandeh Credit Union - 18,393 18,393 - 135,817 135,817 Samen-Alhojaj Credit Union - 59,373 59,373 - - - Molalmovahedin Credit Union - - - - 300,000 300,000 Bank Day - 826,328 826,328 - 500,000 500,000 Eghtesad Novin Bank - 10,673 10,673 - - - Ansar Bank - 254,680 254,680 - - - Other 200 6 206 254 747 1,001 Total 8,264 15,885,804 15,894,068 14,810 14,436,820 14,451,630
62 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012 Books Bank's 1,698,217 2,275,523 2,275,523 (m.IRR) Based on 25,932,493 27,630,710 29,906,233 Total Rates (m.IRR) 1,698,217 2,275,523 2,275,523 Based on Exchange Reference 25,932,493 27,630,710 29,906,233 - - m.IRR 6,653,860 6,653,860 6,653,860 - - INR Indian Rupee 23,423,706,574 23,423,706,574 23,423,706,574 - - - m.IRR 363,221 363,221 363,221 - - RUR Ruble Russian 883,482,865 883,482,865 883,482,865 - - 6,770 m.IRR 2,523,265 2,530,035 2,530,035 - - SKW Won 615,584,124 South Korean 114,801,415,292 114,801,415,292 115,416,999,416 115,416,999,416 115,416,999,416 115,416,999,416 - - - m.IRR 6,007,599 6,007,599 6,007,599 - - - CNY 2,323,089,046 2,323,089,046 2,323,089,046 Chinese Yuan Chinese - m.IRR 608,056 608,056 1,011,450 1,011,450 1,011,450 1,619,506 - TYL Lira Turkish Turkish 80,573,303 80,573,303 150,000,000 150,000,000 230,573,303 - - - 1,118 1,118 1,118 1,118 1,118 m.IRR - - - SWK Krona 588,785 588,785 588,785 Swedish - - - 92 92 92 m.IRR - - - CHF BANK PASARGAD (PLC.) BANK PASARGAD 7,097 7,097 7,097 Franc Swiss 12,275 m.IRR 484,994 497,269 433,680 433,680 930,949 AED UAE Dirham 3,679,614 145,381,865 149,061,479 130,000,000 130,000,000 279,061,479 - - 35,780 m.IRR 555,808 591,588 591,588 - - JPY 276,401,538 4,031,066,091 4,307,467,629 4,307,467,629 Japanese Yen Japanese - - 1,668 18,620 20,288 20,288 m.IRR - - Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013 Ended March Year Financial The for Flows of Cash Statement Consolidate GBP UK 90,121 Pound 1,005,840 1,095,961 1,095,961 294,712 830,393 830,393 m.IRR 9,599,105 9,893,817 10,724,210 EUR Euro 18,632,653 52,500,000 52,500,000 434,253,453 452,886,106 505,386,106 - - 4 m.IRR 463,763 463,767 463,767 - - USD 348 US Dollar 37,827,320 37,827,668 37,827,668 7-2- Foreign Exchange Deposits, segregated based on type of currency, deposit and bank (local or foreign), were as follows at balance sheet date: sheet balance at follows as were foreign), or (local bank and deposit currency, of type on based segregated Deposits, Exchange Foreign 7-2- Investments Demand Deposits (Foreign Currencies): Demand Deposits with Local Banks (Foreign Currencies) Demand Deposits with Foreign Banks (Foreign Currencies) Total Demand Deposits with Banks (Foreign Currencies) Term Term Deposits: Long-term Deposits with Foreign Banks (Foreign Currencies) Total Long-term Deposits Total
63 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
8- PARTICIPATION PAPERS
The balance of this account includes the following items receivable by the parent company:
20-March-13 19-March-12 m.IRR m.IRR Participation Papers Purchased from Other Banks 2,621,286 3,210,350 Participation Papers of Development Plans 7,871,835 347,450 Other Paper 1,371,350 2,267,918 11,864,471 5,825,718
20-March-13 Provisional Nominal Repayment rate of return Amount Issue Date Date (Percentage) (m.IRR) Ministry of Energy 3/10/2009 2/12/16 20 2,008,760 Siah Bisheh Dam and Pumping Energy Plant 24/7/2010 7/24/14 20 40,000 Deposit Certificate 20/2/2012 2/18/14 20 1,371,350 Mashhad Municipality 20/2/2010 3/6/15 20 1,628,640 Government Civil Plans 11/22/09 8/22/16 20 2,992,705 Government Civil Plans 3/10/10 5/5/13 8 790,850 South Pars Gas Expansion 6/11/2010 10/6/16 20 992,646 CBI 13/10/2012 12/16/13 20 839,520 Iranian Offshore Oil Company (IOOC) 7/1/2013 1/7/17 20 1,200,000 Total 11,864,471
9- CREDIT FACILITIES GRANTED 9-1- Facilities granted were as follows at balance sheet date:
Group Bank 2013 2012 2013 2012 m.IRR m.IRR m.IRR m.IRR Total facilities 172,537,974 135,271,269 183,076,898 143,750,803 Less: Deferred income (1,396,487) (1,196,628) (1,344,478) (1,328,362) General Provision for Doubtful Debts (4,992,863) (3,212,612) (5,150,947) (3,212,612) Special Provision for Doubtful Debts (1,792,247) (1,882,950) (1,792,247) (1,882,950) Total 164,356,377 128,979,079 174,789,226 137,326,879
64 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
9-1-1- Balance of bank facilities granted includes the following at balance sheet date: 20-March-13 19-March-12 Deferred Provision Balance Balance interest for bad debt Net (Net) m.IRR m.IRR m.IRR m.IRR Credit Facilities (IRR) 172,057,152 (1,344,478) (6,522,178) 164,190,496 128,258,523 Qarz-ol-hassaneh(interest-free loan) 2,428,848 (92,795) 2,336,053 2,860,407 Debtors-L/Cs 8,071,589 (308,380) 7,763,209 5,722,503 Debtors-L/Gs 519,309 (19,841) 499,468 485,446 Total 183,076,898 (1,344,478) (6,943,194) 174,789,226 137,326,879
9-1-2- The following facilities, categorized in conformity with directives of the Money and Credit Council of CBI as follows: 2013 m.IRR Current 172,552,538 Over-due Debt 2,207,606 Bad Debt 4,549,011 Doubtful Debt 3,767,743 Total 183,076,898 Less: Deferred Income (1,344,478) Provision for Doubtful Accounts (General) (5,150,947) Provision for Doubtful Accounts (Special) (1,792,247) Total 174,789,226
9-1-3- The balance of facilities granted, categorized based on maturity date and rate of return, is as follows:
20-March-13 Higher than 12% and 24% 21-24 % 18-21 % 15-18 % 12-15 % lower Total m.IRR m.IRR m.IRR m.IRR m.IRR m.IRR m.IRR Over-due Debt 7,252,078 3,003,897 - 329 161 267,896 10,524,361 20/3/2014 96,575,897 18,917,654 10,779,778 433,671 738,534 25,723,553 153,169,087 19/3/2015 6,236,951 1,897,392 18,218 590,671 77,741 49,237 8,870,210 20/3/2016 3,157,766 353,769 349,626 54,193 163,754 9,864 4,088,972 After 20/3/2016 1,591,541 1,019,748 627,623 136,755 225,079 2,823,522 6,424,268 114,814,233 25,192,460 11,775,245 1,215,619 1,205,269 28,874,072 183,076,898
65 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
9-1-4- The balance of facilities granted by the Bank, categorized based on collateral, is as follows:
2013 Restated 2012 m.IRR m.IRR Facilities Granted for Pledged Land and Building 32,353,553 59,354,514 Facilities Granted for Pledged Shares of Stock 3,405,638 6,620,383 Facilities Granted for Pledged Checks 147,261,713 77,722,228 Facilities Granted for Pledged Participation Papers 55,994 53,678 Total 183,076,898 143,750,803
66 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012 - 3,566 47,335 519,309 8,071,589 2,428,848 1,534,255 1,882,280 m.IRR 20,314,744 181,732,420 146,930,494 March 2013 March - Balance 4,103 868,484 503,459 5,934,841 2,966,483 1,969,550 2,827,231 m.IRR 19,914,645 142,422,441 107,433,645 Mach 2012 ------(290) (9,889) m.IRR (320,950) (1,344,478) (1,013,349) March 2013 March - - - - - 315 1,308 33,631 54,121 974,969 885,594 m.IRR Received ------Income from Facilities Income from m.IRR (10,828) Granted (990,714) (217,876) (762,010) ------(605) (33,631) m.IRR (849,594) (444,532) Mach 2012 (1,328,362) - 3,856 57,224 519,309 m.IRR 8,071,589 2,428,848 2,547,604 2,203,230 20,314,744 March 2013 March 183,076,898 146,930,494 BANK PASARGAD (PLC.) BANK PASARGAD (2,350) (14,097) m.IRR (1,321,404) (2,667,524) (1,073,588) Received (11,790,335) (12,645,209) (396,006,680) (105,949,086) (518,693,668) (1,050,163,941)
1,498 71,321 419,289 802,048 2,683,375 m.IRR 12,107,574 10,721,802 Granted Facilities Amounts Principal 398,143,428 106,349,184 558,190,516 1,089,490,035 - Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013 Ended March Year Financial The for Flows of Cash Statement Consolidate 4,708 902,115 902,115 503,459 m.IRR 5,934,841 2,966,483 2,819,144 3,271,763 19,914,645 Mach 2012 143,750,803 107,433,645 Turn of Facilities Granted: Turn L/C's Total Factoring Murabahah Mudarabah Zeman Musharakah Qard Al-Hasanah Qard Installment Sales Contracts Ju'alah Lease arrangements 9-1-5- of facilities granted by the parent (in framework Islamic banking contracts) were as follows during year: Turn
67 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
10- ACCOUNTS AND NOTES RECEIVABLE
Balance of this account is the amounts receivable by subsidiaries as follows: Group 2013 2012 m.IRR m.IRR Trade Accounts and Notes 1,999,769 2,162,655 Receivables from Insured and Representatives 224,494 229,034 Insurers’ Share of Technical Reserves 997,601 566,630 Receivables from Insurers and Reinsurers 119,806 47,239 Receivable from Subsidiaries 312,796 211,146 Dividends Receivable 21,943 6,395 Receivable from Others 2,110,786 1,714,495 Total 5,787,195 4,937,594
11- OTHER ACCOUNTS AND NOTES RECEIVABLE
Balance of this account is comprised of the following: Group Bank 2013 2012 2013 2012 Other Accounts Receivable m.IRR m.IRR m.IRR m.IRR Notes Receivable 11-1 7,473,113 1,056,318 5,103,936 1,246,580 Other Temporary Receivables 255,018 219,832 177,942 186,377 Total 317,117 91,116 972,046 266,102 8,045,248 1,367,266 6,253,924 1,699,059
11-1- Balance of other accounts receivable for the bank are as follows:
Bank 2013 2012 m.IRR m.IRR Saman Sakht Arian Co. 85,337 - Modaberan Sakht Arian 23,373 - Other Firms and Real Persons 62,823 8,293 Income on Participation Papers and Deposits 581,042 176,230 Dividend Income from Listed Companies 111,685 18,810 Daily Return Paid on Participation Papers 2,508,610 - Other Legal Entities and Companies 1,731,066 1,043,247 Total 5,103,936 1,246,580
68 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
12- INVENTORIES
Balance of this account includes inventories held by subsidiaries as follows: Group 2013 2012 m.IRR m.IRR Inventory of Properties and Building Projects 4,150,498 3,261,027 Inventory of Goods and Parts 351,586 226,108 Inventory of Cards 9,611 13,142 Our Goods on Consignment 89,615 39,712 Total 4,601,310 3,539,989 * Inventories are insured against fire, flood and earthquake loss.
13- PREPAYMENTS AND ORDERS
Balance of this account represents orders and prepayments by the subsidiaries are as follows: Group 2013 2012 m.IRR m.IRR Foreign orders purchase 72,708 1,051 Prepayment for purchase of goods and services 411,346 79,666 Sumptuary prepayment 2,386 459 Other prepayment 396,273 182,824 Total 882,713 264,000
14- Capital Leases
The amount reflected as lease on the balance sheet is comprised of capital leases of Machinery LeasingCo. (subsidiary of the Bank). Group 2013 2012 m.IRR m.IRR Investment in Capital Leases at the Beginning of the Year 1,632,899 1,680,013 Additions During the Year 35,487 430,747 Reductions During the Year (500,849) (477,861) Net Investment in Capital Leases 1,167,537 1,632,899 Capital Lease Payments Received, Beginning of the Year (1,134,910) (1,051,640) Capital Lease Payments Received During the Year (352,828) (557,567) Reduction of Capital Leases for Contracts Fully Paid 488,478 474,297 Capital Lease Amortization (999,260) (1,134,910) Capital Leases at the End of the Year 168,277 497,989
69 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
15- INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES
Long-term investments include the following: Group Bank 2013 Restated 2012 2013 2012 m.IRR m.IRR m.IRR m.IRR Pasargad Insurance Co. - - 126,000 126,000 Mabnaye Khavar Miyaneh Co. - - 695,012 616,099 Bank Pasargad E-Payment Co. - - 60,000 60,000 Bank Pasargad Brokerage Co. - - 34,300 24,500 Pasargad Aryan ICT Co. - - 98,980 49,000 Tamin Atiyeh Co. 65 6,316 - - Pasargad Investment Financial Services Co. - - - 20 Bank Pasargad Machinery and Equipment Leasing Co. - - 28,915 18,115 MIDHCO - - 1,655,398 1,041,117 Pasargad Mass Construction Development Co. - - - 2,500 Pasargad Energy Development Co. 47,200 253,520 - 126,520 Saman Sakht Aryan Co. - - 4,099,400 4,099,400 Pasargad Arzesh Afarinan Co. - - 1,959,905 1,959,905 Modaberane Sakht Aryan Co. - - 1,590,000 1,590,000 Pasargad Leasing Co. - - 335,000 335,000 Hashtom Urban Construction Co. - - - 201,000 Iranian Rahbord Sarmayeh Co. - 98 - - Pasargad Noandish Technology Development Co. - 2,000 - - Pasargad International Energy Co. 1,000 1,000 - - Pasargad Exchange Co. - - 56,000 35,000 Arian Engineering System Construction Management Co. - 98,610 - 18,810 Iranian Reinsurance Co. 221,167 190,489 41,400 41,400 Iran Cultural Heritage & Touring Investment Co. 18,999 20,000 - - Pey Pisheh Co. 1,850 1,850 - - Ayande Negar Commercial Co. 2 2 - - Pasargad Andisheh Negar Trade Development Co. 2 2 - - Pasargad Tadbirgaran 2 2 - - Pasargad Group Trade Development Co. 18,480 18,480 - - Pasargad Pars Heritage Co. 4,270 2,660 - - Pasargad Technology Innovation Co. - 3,375 - - Pasargad Research and Management & Human Capital - 12,700 20,400 12,400 Development Institute Arzesh Pardaz Aryan Investment Consulting Co. - 4,180 - 2,200 Banking Research and Studies Institute 2,200 2,200 - - Pardis Shakhes Data Processing Co. 16 16 - - Sepehr Energy Dynamic Development Co. - 9,507 - - Aryan Pasargad Mutual Fund 30,000 - 30,000 - Total 345,253 627,007 10,830,710 10,358,986
70 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
15-1- Consolidated subsidiaries and affiliates are as follows:
Percentage of Ownership Country Group Bank Main Activity Saman Sakht Aryan Co. Iran 99.97 99.90 Civil works Pasargad Arzesh Afarinan Co. Iran 98.00 98.00 Economical, technical, financial and credit services Modaberane Sakht Aryan Co. Iran 99.79 45.00 Participation and investment in construction material production companies Pasargad Leasing Co. Iran 68.47 67.00 Building leasing Hashtom Urban Construction Co. Iran 83.95 0.00 Civil works Bank Pasargad E-Payment Co. Iran 66.86 60.00 Electronic banking services Bank Pasargad Brokerage Co. Iran 62.72 49.00 Stock market brokerage Pasargad Investment Financial Services Co. Iran 58.78 0.00 Valuation services Pasargad Aryan ICT Co. Iran 49.00 49.00 IT and communications Mabnaye Khavar Miyaneh Co. Iran 62.89 43.84 Investment and mining Pasargad Mass Construction Development Co. Iran 59.71 0.00 Investment in building projects Bank Pasargad Machinery and Equipment Leasing Co. Iran 70.03 18.00 Industrial machinery leasing Iranian Modaberan Tejarat Iranian Co. Iran 97.99 0.00 Economical, technical, financial and credit services Aryan Pasargad Construction Management Co. Iran 68.08 0.00 Civil works Pasargad Aryan Technical Support Co. Iran 95.06 0.00 Technical support services Nazm Avaran Shayesteh Co. Iran 97.99 0.00 Economical, technical, financial and credit services Pasargad Exchange Co. Iran 84.70 70.00 Currency exchange MIDHCO Iran 49.56 19.68 Investment in companies, civil works, and building factories Pasargad Poyan Energy Industrial Development Co. Iran 64.48 - Power production projects Pasargad Taban Energy Industrial Development Co. Iran 55.14 - Consulting advisory in power plant projects Iranian Rahbord Sarmayeh Co. Iran 61.63 - Investment in construction and trade projects Pasargad Research and Management & Human Capital Iran 55 40 Technical and educational Development Institute consultation Iranian Saman Tejarat Tadbir Co. Iran 99.97 - Production & purchase & sale& import &export trading commodity Pasargad Insurance Co. Iran 25.22 20 Insurance services
1- Subsidiaries consolidated comprise Datamkish Co., Qeshm Pasargad Aryan Co., Fanavar Kara Danesh Pajohan Co., and Attic Intelligent Technology Development Co., Mandegar Persian Afzar Co., Rashed System Electronic Co., Pasargad Technology Innovation Co., Derik Iranian Development Co., Datis Aryan Qeshm Co. 2- Subsidiaries consolidated include Iranian Mana Industries Renovation and construction Development Co., Middle East Shining Sun Co., Zarand Iranian Steel Co., Sirjan Steel Co., Middle East Industrial standard Engineering Co., Ferosilis Gharb Pars Co., Abyek Mana Construction Development, Karavaran Industry , Pabdana Coal Processing Co, Samangan Transportation Iranian Co, Middle East Shining Sun Brokerage. 3- Although Group’s interest in Pasargad Insurance is less than 50%, due to the parent Co.’s control, the said company is also consolidated; There are no other companies requiring equity method for accounting in investment.
71 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
16- OTHER INVESTMENTS
Other investments by the bank and the group are comprised of the following:
Group Bank
2013 2012 2013 2012 m.IRR m.IRR m.IRR m.IRR Investment in Listed Companies 4,354,308 3,101,285 991,666 926,005 Provision for Loss on Value of Investments - (42,307) - (42,307) Participation and Investment in Properties and 435,367 334,358 - - Projects Participation Papers and Deposit Certificates 259,917 338,924 - - Investment in Non-listed Companies 542,493 626,330 104,643 21,962 Other Participations 19,470 219,395 - - Total 5,611,555 4,577,985 1,096,309 905,660
16-1- INVESTMENTS BY THE PARENT Direct investment by the Bank in subsidiaries and associate companies as well as investments in shares of listed stocks were as follows:
Note 2013 2012 m.IRR m.IRR Direct Investment in Financial Group Companies 15 10,830,710 10,358,986 Other Investments 16 1,096,309 905,660 Total 11,927,019 11,264,646
72 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012 4,952 4,946 5,684 24,450 802,547 291,789 196,129 106,393 2012 m.IRR 1,297,709 1,064,204 3,798,803 Restated 12,626,648 8,827,845 March 19, March 4,680 4,660 5,263 29,542 49,623 10,998 BOOK VALUE BOOK 978,807 404,461 2013 1,688,568 3,410,356 m.IRR 22,584,309 233,754 March 20, March 19,173,953 - - 1,187,195 6,489 1,582 5,143 March March m.IRR 37,547 43,914 58,238 19,2012 262,226 624,677 147,379 1,187,195 (544) (991) (4,257) (2,359) (8,165) ------(14) Other m.IRR (8,165) Adjustments ------(20,275) (29,861) Sold (76) m.IRR (1,287) (8,223) (29,861) Acc. Dep. of Fixed Assets 384 814 9,873 3,768 1,985 82,049 46,055 27,269 - - 135,485 307,682 ACCUMULATED DEPRECIATION ACCUMULATED Dep. m.IRR 307,682 the Year Charges of 6,863 1,198 4,329 28,294 40,146 39,206 - - 200,452 490,183 106,868 917,539 917,539 2012 m.IRR March 20, March 6,242 67,089 43,621 17,487 10,406 197,002 291,992 2013 1,688,568 1,246,006 1,029,138 4,597,551 m.IRR BANK PASARGAD (PLC.) BANK PASARGAD 19,173,953 23,771,504 March 20, March (78) (718) 1,900 73,413 10,398 (1,375) - - 103,689 174,850 (12,379) (929,785) (754,935) m.IRR Adjustments Movements & - - - (8,204) COST Sold (42) (125) (129,300) m.IRR (2,358) (2,794) (11,765) (1,829,860) (154,588) (1,675,272) Fixed Assets 393 7,447 2,942 Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013 Ended March Year Financial The for Flows of Cash Statement Consolidate 15,258 10,903 88,779 325,651 243,048 261,739 148,816 1,104,976 m.IRR 11,949,448 11,949,448 13,054,424 Additions 3,300 52,674 45,097 12,912 10,013 2013 111,956 111,956 765,541 144,543 m.IRR 1,297,708 1,028,569 3,472,313 9,829,562 13,301,875 March 20, March 17- TANGIBLE FIXED ASSETS FIXED TANGIBLE 17- Land Buildings Vehicles Investments Computer Hardware Office Furniture and Fixtures Equipment Installations Assets on Consignment Machinery and Equipment Assets Under Construction and Prepayments Total Total Tangible fixed assets are fully insured against earthquake, fire, and flood. Tangible 17-1- Movement of Fixed Assets and accumulated depreciation of the Group were as follows: were of the Group Assets and accumulated depreciation 17-1- Movement of Fixed
73 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
4,951 10,290 865,210 439,220 200,184 150,674 361,148 475,032 409,977 March March m.IRR 20, 2011 Restated 1,300,381 1,661,529 1,704,248 2,589,257 4,250,786
4,680 BOOK VALUE BOOK 13,504 950,677 446,181 286,827 165,519 465,850 416,956 173,206 m.IRR March 19, 2012 1,401,538 1,867,388 4,342,479 4,932,641 6,800,029
- - - - - 11,507 11,507 38,941 198,394 237,335 578,239 124,998 714,744 952,079 952,079 March March m.IRR 20, 2011 (950) (531) 4,973 ------(4,973) (4,243) (5,724) (5,724) (5,724) Other m.IRR Adjustments ------Sold m.IRR Acc. Dep. of Fixed Assets Fixed 3,768 4,220 42,465 46,233 37,316 - - - - - 110,562 110,562 152,098 198,331 198,331 m.IRR of the Year ACCUMULATED DEPRECIATION ACCUMULATED Dep. Charges 7,818 - - - - - 40,146 91,925 150,956 191,102 468,627 568,370 759,472 759,472 2012 m.IRR March 19, March
25,011 25,011 43,621 950,677 644,575 865,066 290,517 416,956 173,206 March m.IRR 19, 2012 1,638,873 1,180,594 2,819,467 4,342,479 4,932,641 7,752,108 (6) (668) (1,279) (5,339) (7,286) (12,379) (16,135) (23,421) (462,026) (572,168) (439,532) BANK PASARGAD (PLC.) BANK PASARGAD m.IRR (3,750) (1,473,726) (1,497,147) Adjustments Movements & ------Sold COST Fixed Assets m.IRR 7,571 98,217 10,903 54,405 53,257 163,525 197,534 258,362 421,887 403,950 202,761 m.IRR 3,817,110 3,817,110 3,210,399 4,238,997 Additions
45,097 18,108 668,811 668,811 865,210 590,176 242,599 929,518 475,032 409,977 March m.IRR 20, 2011 1,491,483 2,421,001 1,704,248 2,589,257 5,010,258 Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013 Ended March Year Financial The for Flows of Cash Statement Consolidate 17-2-1 17-2-2 NOTE 17-2-1-1 17-2-1-3 17-2-1-2 17-2-2-1 17-2-2-2 17-2-2-3 17-2-3-2 17-2-3-1 17-2-3-3
17-2- Movements of Fixed Assets and provision for depreciation of the Bank during the year were as follows: were of the Bank during year depreciation for Assets and provision 17-2- Movements of Fixed A-FixedAssets: Land Leasehold Improvements Buildings TOTAL Assets: B-Movable Computer Hardware Vehicles Furniture and Fixtures Assets Movable Total Total Assets Under Construction Acquisition Property Prepayments Project and Reconstruction Prepayments Total Total Grand All fixed assets are under full insurance coverage.
74 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
17-2-1- Fixed assets are categorized as follows: March 20, 2013 March 19, 2012 m.IRR m.IRR Land 950,677 856,210 Buildings 644,575 590,176 Leasehold Improvements 43,621 45,097 Total 1,638,873 1,491,483
17-2-1-1- Million IRR 94,467 increase in land relates to acquisition of Estakhr Av.,Yasooj, Apadana and Ahvaz lands. 17-2-1-2- MillionIRR 54,399 increase in buildings relates to the Estakhr Av.,Yasooj, Apadana and Ahvaz buildings. 17-2-1-3- Million IRR 1,476 relate to decrease of Leasehold Improvements in Ahvaz, Jomhori,Shiraz,Mashhad and Sardar Jangal.
17-2-2- Movable Assets are categorized as follows:
March 20, 2013 March 19, 2012 m.IRR m.IRR Computer equipment 865,066 668,811 Vehicles 25,011 18,108 Furniture and Fixtures 290,517 242,599 Total 1,180,594 929,518
17-2-2-1- Million IRR 196,255 increase relates to purchase of Computer Equipment. 17-2-2-2- Million IRR 6,903 increase relates to purchase of Vehicles . 17-2-2-3- Million IRR 47,918 increase relates to purchase of Desk, Chair, Refrigerator and other office equipment.
17-2-3- Detail of assets under construction and prepayments are as follows:
Note 2013 2012 m.IRR m.IRR
Assets under Construction 17-2-3-1 416,956 475,032 Prepayment for Acquisition of Properties 17-2-3-2 4,342,479 1,704,248 Prepayment for Projects and Reconstructions 17-2-3-3 173,206 409,977 Total 4,932,641 2,589,257
17-2-3-1- Million IRR 58,076 decrease relate to transfer of Bank’s projects in the process of completion to fixed assets account. 17-2-3-2- Million IRR 2,638,231 increase relate to acquisition of new property. 17-2-3-3- Million IRR 236,771 relate to payments made to contractors for renovating and constructing of Bank’s projects.
75 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
17-3- Ratio of Bank’s assets’ book value to shareholders’ equity is as follows: Bank March 20, 2013 Restated March 19, 2012 m.IRR m.IRR Assets’ Book Value 6,800,029 4,250,786 Intangible assets 2,014,266 1,535,809 Confiscated Collateral Assets 671,279 232,216 Total 9,485,574 6,018,811 Shareholders’ Equity 48,109,735 38,416,498 Less: Retained Earnings (10,619,029) (6,317,105) Total 37,490,706 32,099,393 Assets’ Book Value to Shareholders’ Equity Ratio 25.3% 18.8%
18- INTANGIBLE ASSETS
Balance of this account includes the following: Group Bank 2013 2012 2013 2012 m.IRR m.IRR m.IRR m.IRR Goodwill Premiums 5,656,935 6,198,607 1,976,014 1,491,028 Computer Software 164,493 29,479 18,077 26,833 License 455,353 155,598 20,175 17,948 Total 6,276,781 6,383,684 2,014,266 1,535,809
Investment 19- OTHER ASSETS
Balance of this account includes: Group Bank 2013 2012 2013 2012 m.IRR m.IRR m.IRR m.IRR Long-term Notes Receivable 464,232 46,312 - - Deposits on Leased Premises 23,473 35,095 22,443 35,095 Confiscated collateral Assets 1,828,411 1,355,835 1,776,929 1,355,835 Net Properties 1,448,458 1,656,399 - - Prepaid Lease 9,589 10,416 9,589 10,416 Stamps 6,997 5,174 6,997 5,174 Prepaid Expenses 201,220 212,391 238,497 213,391 Long-term Portion of Employees Loans 66,237 71,511 - - Net of Software 6,948 7,992 - - Financial Charges Related to Acquisition of Property 422,975 135,216 - - Gold Coin Inventory 2,845 5,313 2,845 5,313 Customer’s Long Term Payables 37,197 400,401 - - Other 680,097 672,358 566,573 662,546 Total 5,198,679 4,614,413 2,623,873 2,287,770
76 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
20- CONSOLIDATION GOODWILL
Goodwill calculated for consolidation had the following changes during the year:
Group
2013 2012
m.IRR m.IRR
Balance at the Beginning of the Year 113,257 31,480
Goodwill Acquired During the Year 50,871 85,185
Goodwill Adjustments - (3,408)
Less: Amortization
Accumulated Amortization at the Beginning of the Year (7,324) (2,975)
Amortization for the Current Year (14,250) (4,519)
Amortization Adjustments 170
Accumulated Amortization at the End of the Year - (7,324)
Balance at the End of the Year 142,554 105,933
21- DUE TO CBI
Amounts due to CBI represent the Bank’s liability as follows:
Note 2013 2012 m.IRR m.IRR Term Deposits (Foreign Currencies) 2-1 3,841,673 4,827,471 Inter-bank Balance 162,311 769,173 Deposit with CBI 466,330 500,517 Total 4,470,314 6,097,161
21-1- Foreign exchange term deposits with the central Bank include one month and six month deposits.
22- DEMAND DEPOSITS
Balance of this account is as follows: Group Bank 2013 2012 2013 2012 m.IRR m.IRR m.IRR m.IRR Bank cheques Issued 8,955,978 4,984,460 8,955,978 4,984,460 Current Account Deposited 8,168,053 3,868,139 8,170,357 3,878,761 Bank Draft 290,586 122,095 290,586 122,095 Unused Managed Funds 1,637 377 1,637 377 Total 17,416,254 8,975,071 17,418,558 8,985,693
77 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
23- SAVING DEPOSITS
The balance of this account is as follows:
Group Bank 2013 2013 2013 2012 Total Total IRR Deposits Foreign Currency Total Total m.IRR m.IRR m.IRR m.IRR m.IRR m.IRR Saving Deposits 3,700,360 2,814,029 1,267,090 2,446,797 3,713,887 2,847,463 Total 3,700,360 2,814,029 1,267,090 2,446,797 3,713,887 2,847,463
24- TERM DEPOSITS
The balance of this account includes the following:
Group Bank 2013 2012 2013 2012 IRR Deposits Foreign Currency Total Total Not m.IRR m.IRR m.IRR m.IRR m.IRR m.IRR Short-term deposits 65,439,236 44,508,190 69,584,503 - 69,584,503 45,031,843 Special short-term deposits 24-1 3,131,734 2,297,287 988,588 2,143,146 3,131,734 2,297,287 Long-Term Investment Deposits 24-2 119,929,407 96,160,141 119,236,954 2,417,113 121,654,067 97,132,418 Total 188,500,377 142,965,618 189,810,045 4,560,259 194,370,304 144,461,548
24-1- Short-term deposits are as the follows:
Group Bank 2013 2012 2013 2012 IRR Deposits Foreign Currency Total Total m.IRR m.IRR m.IRR m.IRR m.IRR m.IRR One month deposits 13,986 554,963 - 13,986 13,986 554,963 Three month deposits 1,863,489 276,265 599,726 1,263,763 1,863,489 276,265 Four month deposits 300 300 300 - 300 300 Six month deposits 1,142,589 1,390,883 277,623 864,966 1,142,589 1,390,883
Nine month deposits 111,370 74,876 110,939 431 111,370 74,876
Total 3,131,734 2,297,287 988,588 2,143,146 3,131,734 2,297,287
78 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
24-2- Term deposits are reflected in the following table:
Group Bank 2013 2012 2013 2012 Total Total IRR Deposits Foreign Currency Total Total m.IRR m.IRR m.IRR m.IRR m.IRR m.IRR One-year deposits 7,007,623 8,022,875 4,942,051 2,413,309 7,355,360 8,212,029 Two-year deposits 219,972 366,078 240,768 3,804 244,572 390,878 Three-year deposits 326,060 473,033 326,060 - 326,060 473,033 Four-year deposits 191,946 314,081 191,946 - 191,946 314,081
Five-year deposits 95,485,976 76,479,234 96,838,299 - 96,838,299 77,237,557
General certificate of deposits 16,697,830 10,504,840 16,697,830 - 16,697,830 10,504,840
Total 119,929,407 96,160,141 119,236,954 2,417,113 121,654,067 97,132,418
25- OTHER DEPOSITS
Balance of this account are as follow:
Group Bank 2013 2012 2013 2012 Total Total IRR Deposits Foreign Currency Total Total m.IRR m.IRR m.IRR m.IRR m.IRR m.IRR Cash Deposits for L/Gs 1,167,542 968,511 2,082,029 98,617 2,180,646 1,696,492 Advances Received on L/Cs 7,777,627 10,128,052 175,237 7,602,390 7,777,627 10,128,052 Other 61,212 239,899 - 61,212 61,212 239,899
Total 9,006,381 11,336,462 2,257,266 7,762,219 10,019,485 12,064,443
26- ACCOUNTS AND NOTES PAYABLE
Balance of this account are as follow:
Group
2013 2012
m.IRR m.IRR
Accounts Payable 1,633,133 1,909,618
Notes Payable 1,378,624 94,533
Total 3,011,757 2,004,151
79 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
27- OTHER ACCOUNT PAYABLE AND PROVISIONS
Balance of this account comprises of the following: Group Bank 2013 2012 2013 2012 m.IRR m.IRR m.IRR m.IRR Participation Papers Issued by Subsidiaries 3,539,172 3,998,668 - - Other Creditors 3,018,483 607,242 1,202,783 511,357 Temporary Creditors - Individuals 16,723 737,111 16,723 710,630 Issued Checks Held by Individuals 258,413 664,818 186,441 624,195 Insurance Premiums' Provision 2,246,552 1,102,872 - - Other Accounts Payable 3,113,566 246,523 - - Special Deposit Card Creditors 506,664 299,633 506,664 299,633 Deferred Damage Provision 393,990 222,874 - - Good Performance Retention 561,147 263,524 34,831 29,496 Withheld Tax 162,838 76,896 12,372 10,508 Temporary Creditors-Branches' Virtual Card Deposit 7,224 60,470 7,224 60,470 Provision for Payable Expenses 219,295 81,322 - - Other Technical Reserves 122,472 62,801 - - Social Security Organization 62,825 32,358 9,583 7,787 Temporary Creditors Subscribers' Bill Payments 9,785 - 9,785 - Prospective Years' Insurance Premiums 15,201 14,764 - - Other documents Payable 342,287 159,438 - - Income on Certificate of Deposit 244,694 85,613 244,694 85,613 Foreign Currency Temporary Creditors 133,687 2,203 133,687 2,203 CBI Participation Papers - Principal and Income 2,626,646 - 2,626,646 - Exchange Account Creditors - 194,126 - 194,126 Files Under Negotiation - 173,500 - 173,500 Temporary Creditors-Draft documents 8,088,814 - 8,088,814 - Income Advances Received on Inter-bank Deposit - 80,981 - 80,981 Other Provisions 437 256 - - Total 25,690,915 9,167,993 13,080,247 2,790,499
28- FACILITIES RECEIVED
Balance of this account is comprised of received made by subsidiaries as follows:
2013 2012
m.IRR m.IRR Facilities Received 6,337,090 2,238,551 Deferred Income (543,331) (448,266) Deferred Fine 180,270 Total 5,974,029 1,790,285
80 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
29- ADVANCES RECEIVED
Balance of this account is comprised of advances received by subsidiaries as follows:
2013 2012
m.IRR m.IRR Advances Received by Subsidiaries 29 150 Advances Received by Other Companies 690,292 106,082 Total 690,321 106,232
30- CORPORATE TAXES PAYABLE
Balance of this account includes the following: Group Bank Restated Restated 2012/2013 2011/2012 2012/2013 2011/2012 m.IRR m.IRR m.IRR m.IRR Balance at the Beginning of the Year 3,228,976 381,566 3,120,935 380,003 Tax Provisions till 22/3/2010 77,056 2,862,684 - 2,797,194 Performance Tax During Period 1,068,099 412,739 942,572 323,741 Taxes Paid During the Year (2,032,060) (401,214) (2,020,936) (380,003) Prepaid Taxes (34,717) (26,799) - - Total 2,307,354 3,228,976 2,042,571 3,120,935
Based on the audited financial statements of subsidiaries, there are no underfunding or other tax issues at these companies.
81 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012 Method of Assessment of Assessment Method Assessment made /objected to Assessment made /objected to Assessment made /objected to Assessment made /objected to Assessment made /objected to Assessment made /objected to Assessment made /objected to Investigation of books- Final tax notice issued- Investigation of books- Final tax notice issued- Investigation of books- Final tax notice issued- Investigation of books- Final tax notice issued- Investigation of books- Final tax notice issued- Investigation of books- Final tax notice issued- Investigation of books- Final tax notice issued- _ _ 469,120 978,074 328,000 323,741 1,022,000 3,120,935 20, 2013 Provision Provision Restated, March Restated, March 328,000 772,000 942,571 _ _ _ 2,042,571 19, 2012 Provision Provision Restated, March Restated, March Total _ Paid 522,794 425,889 494,269 323,741 1,177,846 177847 are paid.
_ _ _ 522,794 Notice 1,177,846 1,069,310 Final Tax Final Tax BANK PASARGAD (PLC.) BANK PASARGAD Taxes 355,596 860,145 932,522 _ 2,641,951 2,199,166 Notice Tax Assessment Tax 53,674 924,571 100,763 176,068 244,931 323,741
Self-Assessed
Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013 Ended March Year Financial The for Flows of Cash Statement Consolidate 214,696 403,051 704,271 979,722 1,618,705 4,712,860 Self Assessed Taxable Income Taxable 1,679,670 2,446,123 3,548,255 6,309,426 Income 10,159,820 14,189,140 Self-Assessed Based on the final tax notice received for year 2009, taxes and penalties of m.IRR 1 and the tax file has been referred to a taxation settlement tribunal is not yet finalized. The Bank has protested the tax assessment for year 2011, tax assessment notice for the year 2012 has been received by Bank, however Bank sent a protest against assessment. A and penalties assessed by authorities for year 2008 has been paid during the current period in amount of m.IRR 522,794 respectively. Taxes Based on the final tax notice received for year 2010, taxes and penalties of m.IRR 955,977 are paid. for the year ended march 20, 2013 were calculated on self-assessed basis with due consideration of tax exemptions. Taxes Year March 2011 March 2008 March 2009 March 2010 March 2012 March 2013 30-1-1- 30-1-2- 30-1-3- The Bank has protested the said assessments to high taxation council. 30-1-4- 30-1-5- 30-1-7- 30-1- Bank corporate taxation position is as follows:
82 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
31- RETURN ON DEPOSITS PAYABLE
The balance of this account includes the following: Bank
Balance Period’s Balance March 20, On-account Paid During March 19, 2013 Return the Period 2012 m.IRR m.IRR m.IRR m.IRR Short-term Deposits 140,361 3,916,361 3,851,426 205,296 Special Short-term Deposits 33,866 226,594 245,600 14,860 One-year Deposits 156,958 1,060,115 1,136,556 80,517 Two-year Deposits 21,192 54,750 60,947 14,995 Three Year Deposits 26,014 73,690 81,803 17,901 Four-year Deposits 102,693 55,559 135,956 22,296 Five-year Deposits 2,193,261 17,118,564 16,154,248 3,157,577 Certificates of Special Investment Deposit 78,984 2,376,456 2,455,440 - Total 2,753,329 24,882,089 24,121,976 3,513,442
32- DIVIDENDS PAYABLE
Balance of this account is comprised of dividends declared but not yet paid as follows: Group Bank March 20, 2013 March 20, 2012 March 20, 2013 March 19, 2012 Not m.IRR m.IRR m.IRR m.IRR Dividends Paid 32-1 158,135 161,896 146,035 152,217 Related Subsidiaries - 125,181 - Total 158,135 287,077 146,035 152,217
32-1- Payments of dividends payable for the Bank in the past six years is as follows:
Bank
Declared Dividends Paid Prior Dividend Paid Balance at March Dividends Paid Balance at Fiscal Year Ended Dividends to March 20, 2011 During 2011 20, 2011 During the Period March 19, 2012 m.IRR m.IRR m.IRR m.IRR m.IRR m.IRR 20-Esfand-06 122,500 118,463 339 3,698 178 3,520 20-Esfand-07 612,500 606,118 319 6,064 396 5,668 19-Esfand-08 1,050,000 1,048,381 79 1,540 65 1,475 19-Esfand-09 1,540,000 1,515,552 3,762 20,686 3,089 17,597 20-Esfand-10 2,310,000 2,309,973 27 - - 20-Esfand-11 4,158,000 - 4,037,771 120,229 31,781 88,448 19-Esfand-12 6,269,340 - - - 6,240,013 29,327 Total 16,062,340 5,598,487 4,042,297 152,217 6,275,522 146,035
83 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
33- PROVISION FOR EMPLOYEES RETIREMENT BENEFITS
Changes of account during the period were as follows:
Group Bank 2012/2013 2011/2012 2012/2013 2011/2012 m.IRR m.IRR m.IRR m.IRR
Opening Balance 167,716 107,401 118,660 75,299
Paid During the Year (9,929) (7,891) (5,472) (1,646)
Provision Accrued During the Year 100,325 68,206 65,860 45,007
Balance at the End of the Year 258,112 167,716 179,048 118,660
34- SHARE CAPITAL
Changes of account during the period were as follows:
Group Bank 2012/2013 2011/2012 2012/2013 2011/2012
m.IRR m.IRR m.IRR m.IRR
Opening Balance 167,716 107,401 118,660 75,299
Paid During the Year (9,929) (7,891) (5,472) (1,646)
Provision Accrued During the Year 100,325 68,206 65,860 45,007
Balance at the End of the Year 258,112 167,716 179,048 118,660
34-1- The bank started with m.IRR 3,500,000 (3,500,000,000 shares at IRR 1,000 per share) of capital initially, and increased it to m.IRR 30,000,000 (30,000,,000 shares at IRR 1,000 per share) in five steps by March 19, 2013 as follows:
Date of Increase in Increase in IRR Amount of New Shareholder’s Capital Source of Contribution Shareholders’ Increase in Capital Equity Amount (Percentage) Equity m.IRR m.IRR Receivables from shareholders and cash 23/10/2007 50 1,750,000 5,250,000 contributions Receivables from shareholders and cash 14/07/2008 33 1,750,000 7,000,000 contributions 9/11/09 10 700,000 7,700,000 Receivables from shareholders 21/11/2010 200 15,400,000 23,100,000 Cash contributions Receivables from shareholders and cash 23/03/2011 18 4,158,000 27,258,000 contributions Receivables from shareholders and cash 20/03/2012 10 2,742,000 30,000,000 contributions
84 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
34-2- Major shareholders and their respective shares at balance sheet date were as follows:
19-Mar-13 March 19, 2012
No. of shares Percentage No. of shares Percentage
Pars Aryan Investment Company 4,309,242,690 14.36 4,310,680,770 15.81
Kharazmi Investment Company 1,316,591,759 4.39 1,389,605,357 5.1
Hamyarye Kowsar 1,172,161,868 3.91 1,065,865,367 3.91
Saman Majd Investment Company 1,497,881,862 4.99 1,360,975,463 4.99
Milad Gostar Noavaran Co. 1,108,561,097 3.70 1,007,238,616 3.7
Sahab Omid Iranian Co. 688,770,388 2.30 625,816,776 2.3
Banks Pension Fund 1,024,767,925 3.42 725,423,217 2.66
Refah and Tamin Atiye Omid Institute 599,130,529 2.00 544,370,000 2 Pasargad Financial Group’s Workers Future 1,477,986,086 4.93 953,319,046 3.5 Financial Security Investment Co. Sam Group Company 1,126,073,702 3.75 1,023,150,568 3.75
Binesh Pazhooh Iranian Co. 776,379,140 2.59 705,418,088 2.59
Mr. Mohammad Hadi NikLaal Fard 762,465,439 2.54 415,741,764 1.53
Hamghadam Co. 673,926,291 2.25 612,329,430 2.25
Ms. Setareh Mansoobi 487,563,021 1.63 415,741,764 1.53
Ms. Effat Arzani 306,117,904 1.02 259,911,663 0.95
Other Shareholders (below one percent) 12,672,380,299 42.24 11,842,412,111 43.45
Total 30,000,000 100.00 27,258,000,000 100
Number of Shareholders:
March 19, 2013 March19, 2012
Individuals 47,933 46,864
Corporate entities 301 295
Total 48,234 47,159
85 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
34-3- 16,883,500 shares of the Bank have been allocated to Khatam University.
34-4- Bank’s capital adequacy ratio, which is calculated by dividing the basic capital to risk-weighted assets, must be at least 8% in accordance to CBI rules. The Bank’s adequacy ratio is as follows: 2012/2013 2011/2012 Not m.IRR m.IRR Paid-up Capital 34 30,000,000 27,258,000 Statutory Reserve-balance Sheet 35 5,618,030 3,631,045 Other Reserves 36 1,872,676 1,210,348 Retained Earnings 10,619,029 6,317,105 Total Shareholders’ Equity 48,109,735 38,416,498 General Provision for Doubtful Debts and Investments 5,150,947 3,212,612 Less: Amounts in Excess of 1.25 Percent of Risk Weighted Assets (2,301,833) (1,016,982) 2,849,114 2,195,630 Investments in Other Banks or Credit Institutions (96,031) Basic Capital 50,862,818 40,612,128 Total Risk-weighted Assets 34-4-1 227,929,100 175,650,435 1.25% of Risk-weighted Assets 2,849,114 2,195,630 Capital Adequacy Ratio 22.32% 23.12%
34-4-1- Risk-weighted assets are as follows:
2013 2012 Risk Risk Note Assets Co-efficient Weighted assets Assets Co-efficient Weighted assets m.IRR % m.IRR m.IRR % m.IRR Cash 5 758,098 0 - 1,111,280 0 - Due from CBI 6 28,544,993 0 - 20,851,525 0 - Due from Other Banks and Financial Institutions 7 51,487,727 20 10,297,545 35,654,974 20 7,130,995 Participation Papers 8 11,864,471 0 - 5,825,718 0 -
Investments 15, 16 11,927,019 100 11,927,019 11,264,646 100 11,264,646 Other Accounts Receivable 13 6,253,924 100 6,253,924 1,699,059 100 1,699,059 Loans and Facilities 9 32,353,553 50 16,176,777 30,574,985 50 15,287,493 Other Loans 9 142,435,673 100 142,435,673 106,751,894 100 106,751,894 Tangible and Intangible Assets 17, 18 8,814,295 100 8,814,295 5,786,595 100 5,786,595 Other Assets 19 2,623,873 100 2,623,873 2,287,770 100 2,287,770 Commitments for Contracts 55-3 12,376,594 50 6,188,297 1,120,859 50 560,430 Commitments for L/Gs 55-2 26,035,920 20 5,207,184 23,343,500 20 4,668,700 Commitments for L/Cs 55-1 36,009,027 50 18,004,514 40,425,705 50 20,212,853 Total Assets Weighted Based on Their Risk 371,485,167 227,929,100 286,698,510 175,650,435
86 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
BANK PASARGAD (PLC.) Consolidate Statement of Cash Flows for The Financial Year Ended March 19, 2013
35- STATUTORY RESERVE
In accordance with Article 63, paragraph B of the Bank’s articles of association and relevant regulations, 15% of the Bank’s net profit, not exceeding the Bank’s capital, is allocated to statutory reserves. For subsidiaries, according to amendment to articles 140 and 238 to the commercial code dated 1968, 5% of the subsidiary’s net profit, up to 10% of shareholders’ equity, must be allocated to the statutory reserve; allocation in excess of 10% is at subsidiaries’ discretion. Statutory reserve is not transferable to capital, and at dissolution is not allocable to shareholders.
Bank
2013 2012
m.IRR m.IRR Opening Balance 3,631,045 2,155,633 Reserves Allocated from Net Profit 1,986,985 1,475,412 Balance at the End of the Year 5,618,030 3,631,045
36-DISCRETIONARY RESERVE
In accordance with Article 63 of the Bank’s articles of association, 5% of the year’s net profit is allocated to discretionary reserves. Discretionary reserve belongs entirely to the parent company.
Bank
2013 2012
m.IRR m.IRR Opening Balance 1,210,348 718,544 Reserve Added During the Period 662,328 491,804 Balance at the End of the Year 1,872,676 1,210,348
37-MINORITY INTEREST
Minority interest in subsidiaries is calculated as follows:
Bank
2013 2012
m.IRR m.IRR Share in Capital 5,021,807 2,926,398 Share in Reserves 130,036 84,778 Share in Retained Earnings 434,953 615,754 Unrealised loss (3,056) (1,499) Assets’ Fair Market Value and Book Value Differences (for Subsidiaries) 5,870 6,263 Total 5,589,610 3,631,694
87 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
38- INCOME FROM CREDIT FACILITIES GRANTED
Income from credit facilities includes the following: Group Bank Restated Restated 2012/2013 2011/2012 2012/2013 2011/2012 Income From m.IRR m.IRR m.IRR m.IRR Musharaka 23,633,810 16,560,855 25,576,872 17,752,989 Installment sales 79,314 104,315 43,268 85,137 Mudaraba 5,099,697 4,389,630 5,099,737 4,409,652 Ju’alah 183,408 160,619 336,536 446,400 Financial Leases 8,846 15,170 499 4,690 Late Payment Charges 994,330 1,383,784 1,005,024 1,438,467 Murabahah 1,524 - 1,524 - Total 30,000,929 22,614,373 32,063,460 24,137,335
39- INCOME ON INVESTMENTS AND DEPOSITS
Income on investments during the period is reflected in the following: Group Bank Restated Restated 2012/2013 2011/2012 2012/2013 2011/2012 m.IRR m.IRR m.IRR m.IRR Income from Sales of Investments 1,645,549 910,456 1,285,532 717,364 Gain (Loss) on Change in Value of Securities 43,125 111,176 42,306 - Income from Deposits with Iranian Banks 3,628,579 3,052,860 3,622,738 3,055,697 Income from Participation Papers 2,177,938 1,320,303 2,142,369 1,314,946 Other 12,372 691 - - 7,507,563 5,395,486 7,092,945 5,088,007 Income from Group’s Deposits 31,721 62,054 31,721 61,245 Total 7,539,284 5,457,540 7,124,666 5,149,252
88 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
40- SALES AND SERVICES REVENUE
Balance of this account consists of sale of goods and rendering of services by subsidiaries.
Bank 2013 Restated 2012 m.IRR m.IRR Sale of Foreign Currencies 2,885,660 7,866,117 Income from Installment Sales and Capital Leases 667,644 582,716 Sale of Computer Hardware and Software 1,603,355 594,095 Sale of Properties 849,140 475,326 Sale of Petrochemical, Oil and Steel Raw Materials and Products - 102 Sale of Cards and Technical Support 5,412 10,860 Income from Services 4,020,333 2,112,754 Income from Participation Papers 70 694 Total 10,031,614 11,642,664
41- COMMISSION INCOME
Commissions are reflected in the following:
Group Bank Restated Restated 2012/2013 2011/2012 2012/2013 2011/2012 m.IRR m.IRR m.IRR m.IRR Fees and Commissions for Issuance of L/Cs 3,281,616 1,051,782 3,281,616 1,051,782 Fees and Commissions for Issuance of L/Gs 469,828 405,003 472,638 406,461 Fees and Commissions - Facilities 253,636 515,513 253,636 517,492 Fees and Commissions for Issuance of Credit Cards 302,987 332,809 166,631 233,369 Fees for Electronic Banking Services 553,665 68,271 553,665 68,271 Fees for Foreign Exchange Transactions 60,842 24,068 60,842 24,068 Other Commissions and Fees 53,201 30,222 54,627 33,203 Fees for Share Transactions - 1,140 - 1,140 Total 4,975,775 2,428,808 4,843,655 2,335,786
42- FOREIGN EXCHANGE TRANSACTIONS - NET GAIN
Net result of foreign exchange transactions during the period is reflected in Bank’s income and is as follows:
2013 2012 m.IRR m.IRR Gain on Foreign Exchange Translation 8,572 517,184
89 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
43- OTHER INCOME
Balance of this account includes the following:
Group Bank
2012/2013 2011/2012 2012/2013 2011/2012 m.IRR m.IRR m.IRR m.IRR Gain on Sales of Fixed Assets 20,751 - 10,811 - Income from Collateral Assessment 2,238 2,883 3,360 4,027 Income from Collateral Insurance 13,234 11,970 13,234 12,030 Income from Review of Credit Applications 360,208 209,017 364,256 211,390 Income from Sales Growth Commission 208,020 2,219 - - Income from Brokerage Services - 60,972 - - Participation in Insurer's Income 13,562 11,957 - - Rental Income 2,483 2,165 - - Miscellaneous 212,873 96,771 11,042 3,944 Total 833,369 397,954 402,703 231,391
44- DEPOSITOR’S PROVISIONAL SHARE OF INCOME
Balance of this account includes the following:
Group Bank Restated Restated 2012/2013 2011/2012 2012/2013 2011/2012 m.IRR m.IRR m.IRR m.IRR Short-term Deposits 3,808,004 2,536,807 3,916,361 2,641,151 Special Short-term Deposits 226,594 219,982 226,594 219,982 One-year Deposits 1,050,412 1,582,794 1,060,115 1,588,969 Two-year Deposits 54,750 71,581 54,750 71,581 Three-year Deposits 73,690 89,661 73,690 89,661 Four-year Deposits 55,559 64,433 55,559 64,433 Five-year Deposits 16,908,921 13,902,992 17,118,564 14,031,092 Certificate of Deposits 2,376,386 371,462 2,376,456 371,462 Total 24,554,316 18,839,712 24,882,089 19,078,331
90 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
45- UNDER (OVER) ON-ACCOUNT PAYMENT TO DEPOSITORS
Depositors share of income, derived from joint resources with the Bank, is calculated on the basis of directives of CBI. Granted facilities, investments, participation papers, investment deposits and statutory deposits have been calculated based on the average of the year’s 52 weeks.
2013 2012 m.IRR m.IRR Facilities Granted 156,412,916 119,070,755 Investments & Deposits with other Banks 28,799,758 29,932,462 Participation Papers 10,794,063 8,040,026 196,006,737 157,043,243
Less: Net Resources of Depositors: Total Deposits 163,870,078 135,486,790 Statutory Deposit (19,323,640) (16,579,093) Net Resources of Depositors 144,546,438 118,907,697 Bank’s Resources 51,460,299 38,135,546 Total Joint Income 38,948,085 29,225,342
Depositors Share of Income and Bonus on Statutory Deposits 28,915,735 22,296,561 Bank’s Fees (4,096,752) (3,387,170) Income Payable to Depositors 24,818,983 18,909,391 Payments On-account to Depositors from Joint Income (24,882,089) (19,078,331) Under (over) Payment to Depositors 63,106 168,940
46- COST OF GOODS AND SERVICES SOLD
Balance of this account includes cost of goods sold and services rendered by the subsidiaries.
Group 2013/2012 Restated 2012/2011 m.IRR m.IRR Cost of Services Rendered 3,351,177 1,829,625 Cost of Foreign Currencies Sold 2,734,876 7,769,733 Cost of Computer Hardware and Software 1,449,459 595,021 Cost of Installment Sales and Capital Leases 408,353 72,009 Cost of Properties and Assets Sold 673,488 438,017 2,901 ـ Other Costs Total 8,617,353 10,707,306
91 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
47- PERSONNEL EXPENSES
Balance of this account is comprised of the following:
Group Bank 2013/2012 Restated 2012/2011 2013/2012 2012/2011 m.IRR m.IRR m.IRR m.IRR Salaries 528,806 405,215 366,480 304,335 Bonuses 287,616 221,662 244,572 192,806 Commuting Allowance 94,353 73,763 92,111 71,960 Over-time 128,720 104,665 116,952 96,521 Social Security and Insurance 125,678 97,084 101,862 81,959 Termination Allowance 81,519 56,738 65,861 45,006 Mission Assignments Allowance 20,202 15,546 17,767 13,406 Other 354,568 202,115 325,492 176,361 Total 1,621,462 1,176,788 1,331,097 982,354
48- GENERAL AND ADMINISTRATIVE EXPENSES
General & Administrative expenses during the year include the following: Group Bank 2013/2012 Restated 2012/2011 2013/2012 2012/2011 m.IRR m.IRR m.IRR m.IRR Depreciation 246,167 236,453 214,654 212,824 Advertisement 186,675 143,811 170,748 128,262 Rent 89,713 70,976 86,184 75,172 Pantry and Entertainment 54,754 19,606 42,734 12,660 Tele-communications 48,111 35,344 41,871 30,746 Consulting 23,643 31,717 30,364 27,753 Repair and maintenance of buildings 48,447 41,072 46,035 39,934 Office Supplies 83,548 54,239 62,957 43,832 Insurance 69,300 17,364 68,057 115,847 Other Expenses 347,325 288,053 636,695 485,374 Total 1,197,683 938,635 1,400,299 1,172,404
92 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
49- DOUBTFUL DEBTS
Doubtful Debts expense was calculated as follows:
Group Bank 2013/2012 Restated 2012/2011 2013/2012 2012/2011 Note m.IRR m.IRR m.IRR m.IRR General Provision for Doubtful Debts 49-1 1,780,249 774,445 1,938,333 774,445 Special Provision for Doubtful Debts 49-2 (90,702) 6,387 (90,702) 1,499 Total 1,689,547 780,832 1,847,631 775,944
49-1- General provision for Doubtful Debts for year ended 20 March 2013 was calculated as follows: 2012/2013 m.IRR Balance of Facilities Granted at March 20, 2013 183,076,898 Less: Balance of Facilities for which Special Provision is Provided (10,524,360) Applicable Balance Used for Calculation of General Provision 172,552,538 General Provision for Doubtful Debts 1,938,333
49-2- Special provision for Doubtful Debts was calculated as follow:
20 March 2013 Past due Deferred Doubtful Total m.IRR m.IRR m.IRR m.IRR
Balance on 20 March, 2013 (End of Period) 2,207,606 4,549,011 3,767,743 10,524,360 Less : Special Provision for Facilities, Taking into Consideration, (141,663) (546,516) (1,104,069) (1,792,248) Collaterals and the Calculation Basis Coefficient at End Period Special Provision for Facilities (Beginning of the Period) 153,314 497,646 1,231,990 1,882,950 Provision for Doubtful Debts (11,651) 48,870 (127,921) (90,702)
93 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
50- FINANCE COST
Balance of this account is comprised of the following:
Group Bank 2013/2012 Restated 2012/2011 2013/2012 2012/2011 m.IRR m.IRR m.IRR m.IRR Foreign Exchange Deposits Expense 265,996 153,251 265,996 153,251 Fees Paid "Inter-bank Information Transfer 499,760 23,142 499,760 23,142 Network" Banking Services fees 56,284 13,769 13,035 10,683 Fees Paid to Brokers 14,009 13,344 14,009 15,019 Finance Cost of Facilities Received from 337,564 322,156 - - Other Banks Fees for Review of Applications 315 1,521 - - Allocated to Qualified Projects (112,850) (84,830) - - Total 1,061,078 442,353 792,800 202,095
51- NET OTHER INCOME (EXPENSE)
Net Other Income (Expenses) are related to subsidiaries as Following:
Group 2013 Restated 2012 m.IRR m.IRR Net Non-operating Income (Expense) 1,045,397 238,969 Net Operating Income (Expense) (150,161) (38,958) Insurance Premiums Technical Reserve (917,430) (418,134) Total (22,194) (218,123)
94 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
52- RECONCILIATION OF PROFIT BEFORE TAX WITH CASH- FLOW FROM OPERATING ACTIVITIES-GROUP
Group 2013/2012 Restated 2012/2011 m.IRR m.IRR Profit before tax 14,625,910 9,954,774 Depreciation 383,447 243,161 Gain Reversed Impairment of Investments and Ventures (43,125) 3,458 Doubtful Debts Expenses 1,689,547 775,943 Dividends (Loss) (193,400) (19,356) Gain/Loss on Sale of Investments (1,645,545) (13,210) Gain/Loss on Sale of Fixed Assets (20,751) 29 Increase in Provision for Termination of Employment 90,396 60,229 251,997 533,071 Net Increase (Decrease) in Operational liabilities Due to Central Bank of Iran (1,626,847) 3,138,218 Demand Deposits 8,441,183 (578,159) Saving Deposits 886,331 1,208,107 Term Deposits 45,534,759 20,945,654 Other deposits (2,330,081) 7,234,354 Provisions and other liabilities 16,525,921 707,048 Operational Advances Received 584,089 34,543 Operational Accounts Payable 1,007,606 (1,535,925) Return Payable to Depositors 759,904 154,864 69,782,865 31,308,704 Net (Increase) Decrease in Operational assets Due from Central Bank of Iran and Statuary Reserve (7,693,468) (4,756,897) Due from Other Banks (5,225,353) 2,615,333 Facilities Granted to non-public sector (37,066,845) (28,823,530) Participation Paper (6,038,753) 2,519,600 Other Assets (990,662) 15,494,313 Accounts Receivable (849,601) (4,226,003) Prepayments and Orders (618,713) (46,836) Capital Lease Income 329,712 130,384 Inventories (1,067,378) (406,102) Other Accounts Receivable (4,589,786) (1,488,048) (63,810,847) (18,987,786) Net Cash Inflow (outflow) from Operating Activities 20,849,925 22,808,763
95 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
53- RECONCILIATION OF PROFIT BEFORE TAX WITH CASH FLOWS FROM OPERATING ACTIVITIES-BANK
Group 2012 Restated 2011 m.IRR m.IRR Profit before Tax 14,189,140 10,159,820 Depreciation 214,654 212,824 (Gain) Loss reversed impairment of investments (42,306) (5,153) Doubtful Debts Expenses 1,847,631 775,943 Dividend Received on Investments (1,220,060) (715,622) (Gain) Loss on Sale of investments (65,472) 3,412 Net (Gain) from Currency Exchange Transactions (8,572) (517,183) Employee Retirement Benefits 60,388 45,006 Net Cash Inflow from Operation 786,263 (200,773)
Net Increase (Decrease) in Operating Liabilities: Amounts due to Central Bank of Iran (1,626,847) 3,138,218 Demand Deposits 8,432,865 (578,159) Saving Deposits 866,424 1,208,107 Term Deposits 49,908,756 20,945,799 Other Deposits (2,044,958) 7,234,354 Provisions and Other Liabilities 10,289,748 546,645 Return Payable to Depositors 760,113 154,864 66,586,101 32,649,828
Net (Increase) Decrease in Operating Assets: Statutory Deposit and Other Due from CBI (7,963,468) (4,756,897) Amounts due from Other Banks and Financial Institutions (5,225,353) 2,615,333 Facilities Granted and Other Amounts due from Non- Public Sector (39,309,978) (28,509,108) Participation Papers (6,038,753) 2,519,600 Other Assets (742,499) (1,654,836) Other Accounts Receivable (4,024,825) 162,059 Net Increase in Operating Assets 63,034,876 (29,623,849) Net Cash Inflow from Operating Activities 18,526,628 12,985,026
96 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
54- NON-CASH TRANSACTIONS
Major non-cash transactions during the year were as follows:
Bank 2013/2012 2012/2011 m.IRR m.IRR
Collateral Acquisition 2,043,145 - MIDHCO Capital Raise 385,796 - Pasargad machinery and equipment leasing Capital Raise 10,800 - Pasargad Bank Brokerage House Capital Raise 9,800 - Bank Pasargad Capital Raise 2,146,599 3,236,438 Saman Sakht Aryan and Modaberan Sakht Aryan’s Capital Raise - 4,820,000 4,596,140 8,056,438
55- OFF BALANCE SHEET ITEMS
Off balance sheet items of the bank consist of the following items:
55-1- Commitments on Letters of Credits:
March 20, 2013 Restated March 19, 2012 m.IRR m.IRR Bank Commitments on L/Cs (IRR) 1,186,527 1,021,302 Bank Commitments on L/Cs (Foreign Currencies) 42,600,127 49,532,455 Total 43,786,654 50,553,757
55-2- Commitments on Letters of Guarantee:
Bank Commitments on L/Gs (IRR) 20,610,315 16,838,224 Bank Commitments on L/Gs (Foreign Currencies) 7,606,251 8,201,768 Total 28,216,566 25,039,992
55-3- Other Commitments
Commitments on Musharakah and Mudaraba 1,458,918 97,771 Commitments on Credit Cards 812,084 1,023,088 Commitments on Certificate of Deposit 10,105,592 - Total 12,376,594 1,120,859
55-4 Managed funds commitments were as follows:
Managed Funds-unused portion 745 744 Total 745 744
97 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
56- NET INCREASE (DECREASE) IN CASH
Net increase in cash reflected in the statement of cash flows was as follows:
Group Bank Restated Net Increase Restated Net Increase 2013 2012 (Decrease) 2013 2012 (Decrease) m.IRR m.IRR m.IRR m.IRR m.IRR m.IRR Cash in Hand 5 1,390,794 1,320,960 69,834 758,098 1,111,280 (353,182)
Demand Deposits with Local Banks * 7-2 1,698,217 2,660,375 (962,158) 1,698,217 2,660,375 (962,158) Demand Deposits with Foreign Banks* 7-2 25,932,493 14,356,389 11,576,104 25,932,493 14,356,389 11,576,104 Demand Deposits with Local Banks(IRR) 7-1 8,264 14,810 (6,546) 8,264 14,810 (6,546) Total 29,029,768 18,352,534 10,677,234 28,397,072 18,142,854 10,254,218 * Foreign Currencies
57- CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS
The Bank has the following capital commitments at balance sheet date: Bank 2013 m.IRR Commitment to Pay the Remaining Cost for 28 Branches of Pasargad Bank 691,915 Commitment for Participation in 31% Shares of Iranian Reinsurance Company 18,600 Total 710,515
58- POST BALANCE SHEET DATE EVENTS
There has been no major events after balance sheet date requiring adjustments in the accounts or disclosure thereto.
59- RETAINED EARNINGS-YEAR-END
Allocation of retained earnings, ending balance available for distribution, would be made at year-end upon decisions of the shareholder’s Annual General Meeting. Statutory Requirements: Group 2012 m.IRR Allocation of at Least 10% of Allocable Profit in Accordance with Article 90 of the Commercial Law 1,059,725
98 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
99 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
61 - RELATED PARTY TRANSACTIONS Bank’s transactions with related parties A-Transaction subject to Article 129 of the commercial code
Collateral Balance Related Amount Settlement Relationship Transaction Type of Amount Controlling Party Receivable Party Period Guarantee m.IRR (Payable) m.IRR Rate Bank Pasargad’s share of Dividends paid One year 27.25% in 2012 3,100
Settlement at Debt Cheques Shareholder 3,100 659,100 MIDHCO and Board ME Mabna Co. 728,097 Member Ordinary Granting Facilities documents 906,898 659,100
Settlement of One year Facilities 824,298 Bank Pasargad’s share of Dividends paid 25% in 2011 78,913
Ordinary Granting facilities Mabnaye documents Shareholder 531,900 31.9 Khavar and Board Pasargad Bank 31,939 Miyaneh Settlement of Member Cheques Co. Facilities 900,000 47,972
(on account )Payment
for capital raise 78,913 Bank share of declared dividend in 2010 100,500 24% and Ordinary Granting facilities One year Pasargad Shareholder 870,000 13% documents 806,611 Settlement of Leasing and Board Pasargad Bank 747,265 Co. Member Facilities 1,018,000 Forgiveness of facility
penalties 17
Settlement of debt 100,500
Dividends declared Cheque 10,800 1,040,078
Bank ordinary Granting facilities Pasargad documents 757,000 434,250 Machinery Shareholder and and Board Arzesh Afarinan 707,000 (on account )Payment Equipment Member Leasing for capital raise Co. 10,800 Settlement of Facilities 743,000
100 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Collateral Balance Related Amount Settlement Relationship Transaction Type of Amount Controlling Party Receivable Party Period Guarantee m.IRR (Payable) m.IRR Rate
(for the rest of )Bank share of declared Bank Pasargad 714,120 dividend in 2010 205,585
Pasargad Ordinary Shareholder Granting facilities Arzesh Documents and Board 610,235 593,511 Afarinan Member Co. Settlement of 6 months Cheque Facilities 203,400 756,085
Forgiveness of facility
penalties 191
Bank share of declared dividend in 2011 73,500
prepayment for
computer’s equipment 97,128 24% Granting facilities Six Months Cheque 704,720 13% 548,362
Ordinary Settlement of Pasargad Documents Shareholder Facilities 728,220 160,529 Aryan and Board Pasargad Bank 411,842 ICT Co. Forgiveness of Member (FANAP) Facility penalties 512
Issued LGs 230,773
Settlement of LGs 57,956 Settlement of
prepayments 18,383 Bills issued and the settlement of part of debt from bills 272,510
Bank share of
declared dividend Shareholder in 2011 and Board Member 30,961 78,561 Pasargad settlement of On-
Insurance account payment Co. 50,000
On-account
settlement 50,000
payment of part of
dividend 12,384
101 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Collateral Balance Related Amount Settlement Relationship Transaction Type of Amount Controlling Party Receivable Party Period Guarantee m.IRR (Payable) m.IRR Rate Bank share of declared dividend Cheque in 2011 1,980 30,000
Granting facilities 22,040 Bank Shareholder Pasargad Settlement of and Board Pasargad Bank 22,105 E-Payments Facilities Member 2,500 Co. Ordinary On-account P.O.S Documents 35,500 30,000
On-account
Settlement 40,794 Bank share of declared dividend in 42,000 Pasargad 2010 Exchange Shareholder Pasargad Bank 0 Co. Settlement of debt 45,913
Bank share of declared dividend in 2011 13,965
On-account capital
raise 9,800 Bank Settlement of issued Shareholder Pasargad guarantees and Board 603,269 Pasargad Bank 2,173 Brokerage Settlement of Member Co. Facilities 3,708,350
Issued LGs 607,889
Granting facilities
3,651,350 Settlement of Cost of acquisition and Modaberan Shareholder 42,024 reconstruction of Sakht and Board Pasargad Bank 23,373 properties Aryan Co. member Settlement of
Facilities 569,890 Cost of acquisition Saman Shareholder and reconstruction of Sakht Board properties 76,042 Pasargad Bank 85,345 Aryan Co. Member Settlement of
Facilities 749,320
102 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Collateral Balance Related Amount Settlement Relationship Transaction Type of Amount Controlling Party Receivable Party Period Guarantee m.IRR (Payable) m.IRR Rate 327,009 Ordinary Granting facilities 6 months 21.5% Pars Aryan Documents Board 821,641 Investment Pasargad Bank 386,569 Member Co. Settlement of facilities Cheques 577,776 1,059,924
On-account payment 13,000
Pasargad Shareholder Research and Board and Member On-account settlement 10,000 Pasargad Bank 3,000
Bank’s share of declared dividend paid 7,500 in 2011 Shareholder Iranian and Board Payment of a portion Member of the commitment 7,500 for offering of the said company’s
consolidated subsidiaries Transaction with
related party
Collateral
Related Relationship Transaction Party Amount Amount Balance Settlement Receivable m.IRR Period Rate Type m.IRR Controlling Party (Payable)
supplying Human Capital 164 Pasargad Pasargad Shareholder Providing Insurance International Trade 264 Energy Services 135 Co. pre-selling of administrative apartments 66,050
103 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Collateral Balance Related Amount Settlement Relationship Transaction Type of Amount Controlling Party Receivable Party Period Guarantee m.IRR (Payable) m.IRR Rate
exchange of securities 97,585
selling of shares of Pasargad company and staff 2,401 Financial resign Group’s Mutual Board (68) Tamin Member selling of Future 2,469 Maskan Guaranty Co.
selling of securities 142
Collateral Related Relationship Transaction Party Amount Amount Balance Settlement Type of Receivable m.IRR Period Rate guarantee m.IRR Controlling Party (Payable)
Current payments for
Bokharest property 15,532 Pars Aryan Board Investment Armaghan 102 (10,728) Member Co.
exchange of securities 14,306
exchange of securities Shareholder 45,440 Iranian and Board 84,347 Member providing of insurance
services and dividend 91,771
104 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Collateral Balance Related Amount Settlement Relationship Transaction Type of Amount Controlling Party Receivable Party Period Guarantee m.IRR (Payable) m.IRR Rate
Current payments for 62 Hamila project
Allocation of Qarz ol 753 hasaneh
selling of Future 4,548 Guaranty
Managed funds 6,398
Tamin Mutual Board 16,753 Atieh Co. Member selling of shares 440
dividend received 1,444
pre-selling of Mirdamad
administrative apartments 1,000
Providing Insurance services 189
prepayment shares 2,979 payments made for construction of Imam 1,034 Arian Ali project Board Engineering Pasargad leasing 13,917 Member System rent & Installment 597 facilities of material
purchasing of Pasargad administrative 1,169 Pars Mutual Board equipment 1,271 Heritage Member Co. providing of insurance 57 services
purchasing of Dargah Mutual Board administrative 7,000 (11.6475) Zamen Member equipment
purchasing of Irancell 1,950 Hasin transaction fee Mutual Board Qeshm Member Creative purchasing of card 4,591 (644) and software
105 Bank Pasargad BOARD OF CHIEF EXECUTIVE OFFICERS Annual Report 2011 2012
Collateral Balance Related Amount Settlement Relationship Transaction Type of Amount Controlling Party Receivable Party Period Guarantee m.IRR (Payable) m.IRR Rate
Shareholder & DATX Mutual Board on-account payment 3,965 (3,965) Member
selling od pre-paid ETICK Pars Shareholder 10,479 9,498 card
Shareholder & Nozhan Mutual Board on-account payment 257 257 Sanat Member
Shareholder & Qazvin Participation in Mutual Board 18,687 (11,014) Civil and Qazvin Booali Project Member
B)-OTHER RELATED PARTIES
related party Providing of services 400 200
Mobin Mutual Board Selling of shares of 901,480 Investment Member MIDHCO
3rd close to CEO Millennium or related to Commission payment 5,732 Hamyaran CEO Co
106 Bank Pasargad