In the Name of GOD
SINA BANK
Annual Report 2015 - 2016 Table of Contents
Financial Highlights 4 Message of the Board of Directors 5 Introducing the Board of Directors 6 Introducing the Executive Board 7 Organisational Chart 8
CHAPTER I - Introduction 9 Background 10 Objectives 10 Vision 10 Mission Statement 10 Strategies 11 Regulatory Environment 12 Specialist Committees & Workgroups 12 Our Capital 13 Prizes, Distinctions & Accomplishments 16 Sina Bank Listed in the Stock Exchange 19 Composition of Shareholders 20 Our Future Plans 20 CHAPTER II - Performance 21 Operational Performance 22 Human Resources 22 Branch Network 22 International Banking & Foreign Exchange Services 23 Anti-Money Laundering Department 24 Information Technology 27 Risk Management 29 Regulation Compliance Department 32 Financial Performance 34 Main Financial Items 34 Balance of Deposits 35 Islamic Banking Principles 36 Balance of Loans 38 Revenues 39 Interest Paid to Depositors 40 Ratios 41 Capital Adequacy Ratio 42 Our Investments 42
CHAPTER III - Independent Auditor’s Reports & Financial 43 Statements Sina Bank Financial Highlights
Total Revenues Total Assets
35,000,000 180,000,000
30,000,000 160,000,000 140,000,000 25,000,000 120,000,000 20,000,000 100,000,000
15,000,000 80,000,000 million IRR
million IRR 60,000,000 10,000,000 40,000,000 5,000,000 20,000,000 0 0 2014-15 2015-16 2014-15 2015-16
Balance of Loans Total Shareholders’ Equity (IRR & Foreign Currency) 140,000,000 16,000,000
120,000,000 14,000,000 12,000,000 100,000,000 10,000,000 80,000,000 8,000,000 60,000,000
million IRR million IRR 6,000,000 40,000,000 4,000,000 20,000,000 2,000,000 0 0 2014-15 2015-16 2014-15 2015-16
Balance of Deposits Registered Capital (IRR & Foreign Currency) 160,000,000 12,000,000 140,000,000 10,000,000 120,000,000 8,000,000 100,000,000
80,000,000 6,000,000 million IRR
million IRR 60,000,000 4,000,000 40,000,000 2,000,000 20,000,000
0 0 2014-15 2015-16 2014-15 2015-16
The rate of exchange was $1/IRR 30,240 at the end of the reported period. The Bank’s fiscal year ends on March 19th. Annual Report 2015 - 2016 Message of the Board of Directors
With over 31 years of invaluable experience Since the lifting of sanction against Iran’s and thanks to its profound knowledge of the Financial sector, Sina Bank has made several Iranian financial market, the ability to make measures to boost its international operations, sound policies Sina Bank has demonstrated a including being linked to SWIFT and installing high degree of success in penetrating the a wide scale infrastructure, required for market and achieving sustained growth. carrying our international operations; expanding regional and European relations, During the reporting financial period, Sina human resource training etc. As a result, Sina Bank also demonstrated a remarkable Bank now offers a wide range of foreign financial and operational performance. Total currency and Forex services. In expanding revenues increased from IRR 27,189 billion our European relations, we have been reaching IRR 30,813 billion, whilst operating successful in obtaining a license to open a profits enjoyed a rise from IRR 5,848 billion in branch in Munich – Germany through contract 2014-15, to reach IRR 6,210 billion in the agreement with the internationally reputable following year. Total assets also grew from auditing firm such as KPMG, which is IRR 148,998 billion to IRR 169,134 billion. On expected to be inaugurated by 2017. We also the operational side, we successfully intend to open a branch in Muscat –Oman in increased deposits from IRR 130,085 billion the near future. in 2014-15 to IRR 149,745 billion in the following year. We also have boosted our Referring to fulfilling our corporate social lending from IRR 115,885 billion in 2014-15 to responsibilities, we have focused on granting IRR 136,246 billion during the year under special loans to the needy people and on review. financing job creating projects in Iran’s less developed regions. As a result of our performance we have been able to distribute EPS according to forecasts To conclude, I am confident that we shall and to achieve high returns for our continue to demonstrate strong performance shareholders hence, earning their trust and in the future and as a result, we shall further satisfaction of our shareholders. And thanks increase our market share by relying on the to our highly experienced and dedicated loyalty of our clients, the trust of our personnel, we continue to offer our clients a shareholders and the support of our expert wide of high quality banking products and and dedicated colleagues. services, achieving customer loyalty.
Other accomplishments during the reporting Board of Directors financial period include: being recognised as Iran s top bank in anti-money laundering measures; being granted a bonus from the Central Bank of the Islamic Republic of Iran (CBI) for being the most law-abiding Iranian bank, enabling us to reduce our statutory deposit held at CBI from 13% to 11% obtaining top ranking in terms of e-banking security, achieving more than required capital adequacy ratio as well as ranking fifth among top commercial Islamic banks in terms of asset returns. Sina Bank Introducing the Board of Directors
Dr. Mohammad Mokhber Chairman
Mohammad Reza Pishrow Vice-Chairman & Managing Director
Dr. Seyed Mohammad Badr Tale’ Board Member
Dr. Hamid Reza Fartouk Zadeh Board Member Annual Report 2015 - 2016 Introducing the Executive Board
Mohammad Reza Pishrow Managing Director
Ghorban Daniali Vice Managing Director
Mohammad Reza Saroukhani Investment & International Affairs Deputy
Gholam Abbas Nematollahi Credit & Loan Supervision Deputy
Ali Dehghan Menshadi Branches & Human Resource Deputy
Masoud Pashmchi Information Technology & Communication Network Deputy Sina Bank Organisational Chart
Board of Directors
Supreme Audit Supreme Risk Committee Committee
Compliance Committee
Managing Director
Vice Managing Director
Internal Audit Regulations Complianc Department
Inspection Risk Department
Legal Managing Director’s Management Office
Security Public Relations
Advisors Anti-Money Laundering Department
Planning, Credit & Information Investment & Branches & Human Technology & Network Financial & Support International Affairs Resources Deputy Supervision Deputy Communications Deputy Deputy Deputy
Investment & Branches & Information Budget & General Marketing Credit Technology Assemblies Affairs Accounting
Network & Foreign Human Supervision & Branches Operations Operations Resources & Collection of Accounting & Training Loans Support Treasury
Projects, Systems Planning & Development Support Research Security CHAPTER I Introduction Sina Bank Background Objectives Sina Bank was established in 1985. From its Maximise profitability. humble beginnings, Sina Bank has greatly Increase market share. expanded the network of its clients, branches Focus on customer requirements and to and well trained personnel and has achieve customer satisfaction. successfuly penetrated Iran’s ever growing Optimise human resource productivity. competitive market. This display of vast Further elevate our position in the expansion reflects the considerable success international arena. Sina Bank has already earned. The Boost our competitiveness via enhancing consequences of such an outstanding past, our current position in electronic banking. result in both potential for the future and the inevitable growth Sina Bank will gain. Vision Become an advanced, innovative, effective and customer oriented bank. Take advantage of the latest technologies, human resources capable of innovating new banking products and services. Become a pioneering bank in terms of offering banking services with an object e of creating additional wealth for beneficiaries. Become a more credible bank within the Middle East and Western Asia.
Mission Statement Our mission is to offer a wide variety of high quality banking products and services which comply with global standards (having taken advantage of the latest technologies). Our mission is also to maximise profitability for our shareholders, to pay a special attention towards ourhuman resources and teamwork and finally, to make a positive contribution to Iran’s economic growth and development. Annual Report 2015 - 2016 Strategies To offer a competitive and different basket of products and services. To further expand the scope of international banking operations. To further develop our human resources. To enhance our credit rating and collections system. To further develop our electronic banking and boost its security. To boost the potentials of services. To further develop corporate and exclusive banking services. Sina Bank Regulatory Environment Sina Bank complies with the following rules and regulations:
The Banking & Monetary Act of 1972 and its amendments The Usury-Free Banking Operations Act of 1983-84 Ratifications of the Monetary & Credit Council of the Central Bank of the Islamic Republic of Iran (CBI) Credit, Monetary & Regulatory Policies of CBI Circulars of the Central Bank of the CBI on departments’ regulations, licences and regulating the banks The Easing of Granting Financial Loans Act Cheque Law Tax Laws Commercial Code Regulations of the Securities & Exchange Organisation Registration & Municipality Laws Articles of Association of Sina Bank Other laws and regulations (including penal and civil codes) Specialist Committees & Workgroups The main committees and workgroups of Sina Bank are stated below:
Transactions Committee Credit Committees (Branches, Regional, Central and Supreme) Anti-Money Laundering Supreme Committee Audit Supreme Committee Security Supreme Committee Collections of Unrecoverable Claims Committee Recruitment Committee Selection Committee Jobs Classification Committee Employee Committee Committee (special circumstances) Training Committee Disciplinary Committee Operational Risk Management Committee Market Risk Management Committee Compliance Management Committee Corporate Governance Committee Publicity Committee Investment & Portfolio Management Committee Repossessions Committee Loan Interest & Claims Calculation Revision Committee Real Estate & Investment in the Bank’s Building Projects Committee BSC Committee Donators Committee of School Builders Marketing Processes Reengineering Committee Circulars Committee Task Group Committee Security Expert Committee Annual Report 2015 - 2016
Main workgroups are as follows: International Banking Development Workgroup Branch Optimum Location Selection Workgroup Ebanking Development & Security Enhancement Workgroup Compatibility & Market Development Workgroup
Our Capital We commenced our operations with an initial capital of IRR10,000 million, which we have increased on several occasions since that time. Today, our capital has increased to IRR10,000,000 million.
The following line chart demonstrates our capital increase trend since 1999.
Capital Increase Trend
12,000,000
10,000,000
8,000,000
6,000,000 million IRR
4,000,000
2,000,000
0 1999 2001 2006 2007 2009 2010 2011 2012 2015 Sina Bank
Sina Bank Headquarters Annual Report 2015 - 2016 Sina Bank Prizes, Distinctions & Accomplishments Due to our outstanding performance, we have been awarded a number of prizes and distinctions from various bodies and government authorities in the recent years. Some of our achievements during the period under review are stated below: As a result of our successful efforts in complying CBI’s regulations in information transparency, Sina Bank was rewarded a bonus, where 2% of its statutory deposits held by the CBI was released. Being recognised as Iran’s top bank in terms of transparency (based on the Parliamentary Research Centre report). Being included among Iran’s top 100 companies and rising up by 4 places to 49. Being recognised by the Banker as one of the top 3 Islamic Banks, throughout the Islamic world. Obtaining the Satisfaction Award in the Fifth National Customer Satisfaction Conference. Obtaining top ranking among Iranian banks in combating money laundering (based on the latest statistics released by FIU). Being commended in the Third National Iranian Banks Festival. Continuing our efforts towards social betterment and charitable measures such as donating ambulances and constructing schools. Obtaining fourth rank at the National Productivity Festival in terms of sales and process effectiveness. Obtaining the Fourth National ITC Quality Award. Reported to the president of Iran by CBI, for laying the infrastructure for electronic banking. Being commended as the Successful Bank at the Third National Festival of Iran Bank. Being recognised as Iran’s top bank for offering the most secure internet banking. Being awarded the National Merited Brand Prize for customer satisfaction, environment and quality. The Managers’ Supreme Prize in Banking Industry being awarded to the Managing Director of Sina Bank at ITEC’s Seventh Conference. Obtaining a commendation and Superior Industry Prize in line with Iran’s 2026 Vision Statement. Obtaining second ranking from the CBI for its performance in the Shetab Network (inter- banking network). Being awarded the Capability Prize at the fourth round of National IT Management Prize. Being recognised among Iran’s top 50 TSE listed companies via the Industrial Management Organisation.
Award from the National Endurance National Iranian Financial Conference Management Prize Annual Report 2015 - 2016
Letter of Commendation Best Managers’ Prize in from the National Banking Industry - Awarded Endurance Product & at the ITEC Conference Services Conference
Public Relations Innovation & Knowledge Prize - Awarded at the 15th Conference of Heads & Iranian National Financial Managers of the Most Management Award Prominent Iranian Companies & Organisations
14th National Technology National Anti-Money Laundering Management & Innovation Prize - Awarded at the 15th Prize - Awarded by IRAMIT Conference of Heads & Managers of Most Prominent Iranian Companies & Organisations Sina Bank
Top Iranian Bank Recognised by TOPEX
Certificate of Research, Badge of Customer Training & Consulting from Satisfaction from the the Industrial Management Consumer Protection Fraction Organisation of the Iranian Parliament
Certificate of National Quality from the Ministry of Communications & Information Technology (ICTINQA).
Top Industry Award
National Brand Award for Customer Satisfaction, Environment & Quality - Awarded at the Nationwide Conference on National Worthiness National Endurance Award
Recognised as being among the top 100 Iranian companies Annual Report 2015 - 2016 Sina Bank Listed in the Stock Exchange With a capital of IRR1,500,000 million, Sina Bank was listed in the Tehran Stock Exchange (TSE) as of 25 September 2007. Each floated share was priced at IRR1,213 with a total market value of IRR1,819,500 million. Being listed in the TSE was followed by several advantages including tax exemptions, information transparency as well as easier means of acquiring funding. Since that time, Sina Bank has on several occasions increased its capital reaching IRR10,000,000 million.
The following chart outlines the Bank’s market value increase trend since 2008.
Market Value
20 18 16 14 12 10 8 billion IRR 6 4 2 0 22.11.2011 22.11.2010 26.03.2011 23.07.2011 21.11.2012 20.04.2008 23.08.2008 27.12.2008 22.04.2009 23.08.2009 22.12.2009 21.04.2010 23.08.2010 24.03.2012 28.07.2012 25.03.2013 22.10.2014 21.02.2015 25.03.2015 22.06.2015 23.09.2015 22.12.2015 24.02.2016 29.02.2016 14.03.2016 19.03.2016
During the reporting financial period, over 2.5 million shares of Sina Bank, worth IRR3,996 billion were traded. Furthermore, the shares of Sina Bank demonstrated returns of 36.7% during the same period. Sina Bank Composition of Shareholders The following pie chart demonstrates the composition of our major shareholders:
13.9% Others 6.6% Sina Investment & Financial Holding Co. 6.7% 63.1% Oil Pension Fund Mostazafan Investment Co. Foundation
9.7% Alavi Foundation Institute
Our Future Plans Some of our main plans for the upcoming Our overall plans for the long run are stated year are as follows: below:
Launching the BSC project throughout the Penetrating new markets. Bank. Introducing new products and services. Implementing the “Auditing & Internal Expanding the scope of measures in Controls” project as means to support response to our corporate social corporate governance. responsibilities. Implementing the “Customers’ Classification Expanding our sales markets and diversifying Project” which classifies the Bank’s sales techniques. customers into corporate, commercial and small scale categories. Implementing new credit packages. Continuing our efforts towards fulfilling social responsibilities. Revising the “Employee Jobs Classification” project. CHAPTER II Performance Sina Bank Operational Performance
Human Resources Recruitment: At Sina Bank only the best and most proficient are selected as our senior staff. With a wide range of expertise, this senior staff then go on to pass on their invaluable experience to the young and eager personnel who display a considerable amount of talent and capacity to learn, offering remarkable potential for the future. The bank currently employs 2,424 personnel. The following pie chart outlines information on the composition of our human resources based on academic qualifications.
Human Resources by Academic Qualifications 16% 11% High School Diploma & Masters’ Degree Below & Above
73% Technician & Bachelors’ Degree
Human Resource Development: In addition to training to our newly recruited personnel, we implement a constant training program for the duration of service, in order to ensure that our staff remain up-to-date with the latest banking procedure and practices and to guarantee their development.
Branch Network Sina Bank currently has 257 branches and 19 kiosks operating throughout Iran. Annual Report 2015 - 2016 International Banking & Foreign Exchange Services As a response to the rising demand for Forex services, since the lifting of sanctions against Iran’s financial sector, we have activated 64 branches providing Forex services. Indeed, since the lifting of the mentioned sanctions, we have intensified our international banking operations by establishing new links with correspondent banks and using SWIFT whilst providing our clients with a wide range of foreign currency services, including opening L/Gs, L/Cs, offering foreign currency loans, etc.
Furthermore, we have taken new measures to further expand into foreign markets. During the reporting financial period, we successfully obtained a license to setup a branch in Munich – Germany, which is expected to be inaugurated in 2017. We are also planning to open a branch in Muscat – Oman in the near future. Sina Bank Anti-Money Laundering Department
The principal function of the Anti-Money Laundering Department is to ensure the adequate implementation of rules, regulations, requirements and guidelines set forth by related bodies. The of the Anti-Money Laundering Department also aims at ensuring that the Bank’s operations and procedures correspond with the monetary and banking laws and regulations and playing a supervisory role in order to further improve the Bank’s current position in reference with Combating Financing Terrorism (CFT).
Sina Bank has decided to revise and to strengthen its Anti-Money Laundering Department, which also complies with international standards. The most important of such standards are Basel and Kouso The main reason for this revision is that Sina Bank expects to boost its global operations, following the lifting of sanctions against Iran financial sector. This was part of its nuclear deal with the permanent members of the United Nations. The main anti- money laundering (AML) measures taken by the Bank during the reporting period consist of two categories;
1. Measures Relating to External Bodies
Financial Information Unit All banks and other financial institutions are required by law, to cooperate with the High Council on Anti-Money Laundering & Financial Information Unit, which are the highest authorities in reference with combating money laundering. Hence, Sina Bank has made numerous measures in response to the requests of the Financial Information Unit. These measures are stated below: Replying to all 624 enquiries of the Financial Information Unit in time. Preparing large cash transaction reports (LCTR) on customers who make cash deposits in excess of the permissible limit of IRR150 million or USD10 thousand or its equivalent in other currencies, on a monthly basis (1,468 cases in total). Reporting 2 suspicious cases to the Financial Data Unit confidentially. Annual Report 2015 - 2016
Providing the Financial Information Unit with receivers of basic services on a monthly basis. Carrying out the aforementioned measures and duties within the Financial Information Unit’s Project Management Software. Ringing up-to-date, the reports on suspicious persons. Providing annual AML reports to the Financial Information Unit. Taking part in periodical AML meetings.
Anti-Money Laundering Department of the Central Bank of the Islamic Republic of Iran (CBI) Replying to the enquiries of the above department in the shortest possible time. Providing monthly statistics on accounts and customers to the CBI. Constantly supervising the implementation of CBI’s AML policies.
International Department Assessing the AML questioners received from corresponding banks abroad and complying them with the regulations and circulars as set forth by the CBI. Assessing and approving the questioners of future corresponding banks, filed in via the Sina Bank’s International Department. Sina Bank
Measures Relating to other Internal Cooperation of Anti-Money Laundering Departments Management of Sina Bank with Iran’s Organising AML courses (based on the Competent Legal Authorities training CBI standards) in order to raise Towards a more effective implementation of the awareness of the Bank’s employees in the rules and regulations, the Anti-Money this regard. Laundering Management team of Sina Bank Raising the AML awareness of the general maintains continuous ongoing cooperation public via publishing brochures and with various regulatory authorities and circulars. organizations, such as the CBI, the FIU, Answering to the queries of employees Economic Offences Police, Justice, Supreme regarding AML and advising on methods of Audit Court, Iran General Inspection identification and reporting on suspicious Organization, and so on. The cooperation is cases. established through the following initiatives: Supervising over the implementation of Periodical reporting of transactions AML polices throughout the Bank, ensuring exceeding the designated threshold, of compliance with instructions of CBI and Periodical STR, Information Unit. Submission of official lists of information Introducing the branches and executive of customers receiving basic services, units of the Bank via AML portal. Replying to enquiries by the above Cooperating with the Audit Management in authorities, carrying out branch inspections. Attending training meetings held by the Cooperating with the Methods & Organisation relevant organizations, Department in preparing internal circulars Reporting of annual performance to and instructions and ensuring of their competent bodies, compliance with CBI circulars. Reporting of case performance whenever ordered by competent authorities. Training of employees For the purpose of implementing the laws In conclusion, with regards the adopted and guidelines laid down by the CBI as well transparent policies as well as the procedures as to reduce the risk of money laundering and announced directives, we hope that we and terrorism financing, Sina Bank has have laid down significant measures and trained all its employees with regards the initiated actions to reduce the risk of money guidelines set forth by the Central Bank. laundering and financing terrorism in the Upon their recruitment, all the employees institution. Through these measures, we can are required to attend the training courses to clarify the financial relationships and improve finalize their employment. Such trainings relations between Sina Bank and its include familiarization with the directive; customers, shareholders, and brokers. rules and regulations; Anti-money laundering practices; KYC; security factors in the National ID card, ID card and Iranian and foreign passports; and other relevant inquiries. Training programs are designed in such a manner as to provide the employees with sufficient and reasonable knowledge of the importance of such information, and the procedures of implementing the policies and KYC. The said programs are held on an ongoing basis to ensure that the relevant employees periodically receive the required trainings. Moreover, the said training records are integrated into the trained personnel’s employment records.
Annual Report 2015 - 2016 Information Technology In order to maintain our current market share and to ensure of future growth and development, we constantly look for means to further diversify our services, especially in the field of information technology. Hence, we currently provide 86 different types of IT related services. The following charts show that such services have been widely supported the general public in the previous three years.
ATM
700
600
500
400
number 300
200
100
0 2013-14 2014-15 2015-16
POS
80,000
60,000
40,000 number
20,000
0 2013-14 2014-15 2015-16 Sina Bank
Debit Cards
3,500,000
3,000,000
2,500,000
2,000,000
number 1,500,000
1,000,000
500,000
0 2013-14 2014-15 2015-16
E-Banking Users
400,000
300,000
200,000 persons
100,000
0 2013-14 2014-15 2015-16
During the reporting financial period, the total number of smart cards issued reached 5.5 million, an increase of 20% compared to the previous year. Total number of e-banking users also increased from over 3.6 million to 3.9 million, a rise of 7%.
In addition, our main area of concern as far as electronic banking is concerned, is data security. Having recognised the challenges by the acceleration of technological change and the increasingly sophisticated nature of cyber threats, we constantly take measures to strengthen our security efforts. Hence, considering cyber security on our priority lists, we carry out periodical penetration testing as a means for identifying and eliminating vulnerabilities and provide constant training to staff in this regard. Annual Report 2015 - 2016 Risk Management The most important areas of concern for all main reasons for the occurrence of liquidity banks are capital adequacy and risk. risk are stated below: However, since the business of banking is risky business by nature, risk management Withdrawal of deposits. is without doubt, the most important point of Transferring non-cash assets into cash concern which affects all banking activities. assets. Investment volume. At Sina Bank, our risk management Asset liability gap. processes entail identifying, measuring and Our policies in reference with managing managing risks. In this regard, the plans and liquidity risk are outlined below: policies of the Risk Management Department of Sina Bank are stated below: Preventing loss resulting from liquidity shortages via enforcing effective liquidity Installing the Enterprise Risk Management management. (ERM) system. Identifying the sources of incoming and Managing identified risks independently outgoing cash and the liquidity on which the and comprehensively. Bank has short-term control. Contributing towards policies in reference Responding to unforeseen events that with identifying various risks that Sina affect the Bank’s balance sheet items. Bank is exposed to. Increasing the variety of debts as means to Classifying the extent of risk severity using reduce liquidity risk. a customer rating system. Identifying the optimum amount of liquidity Making efforts towards complying with the required in order to attain the most suitable requirements of the Basell Committee and amount of liquidity. the CBI in order to prevent compliance risks. Identifying, measuring and managing The Bank uses two methods to manage its various financial and nonfinancial risks. liquidity risk: Contributing to the implementation of corporate governance throughout the Asset-liability Gap Analysis Bank. Here, liquidity gap occurs as result of maturity Organising various risk management mismatches. If liquidity gap is negative, then training courses for the Bank’s employees the Bank requires more liquidity. The smaller on all levels. the gap (more negative), the bigger the risk shall be. In the case of Sina Bank, At Sina Bank, we classify risks according to accumulated gap of under one month and up recommendations of the Basel Committee in to three months amounted to IRR10,316 four categories: liquidity, credit, market and billion and IRR2,244 billion respectively, operation. Having constantly measured such reflecting of the fact that the Bank has risks, the Risk Management Supreme sufficient coverage against liquidity crisis. Committee then reports and makes proposals to the Board of Directors for approval. Liquidity at risk (LAR) Liquidity at risk (LAR) reviews (with 95% We tackle the aforementioned risks in the certainty) indicate that maximum liquidity following manner: surplus which the Bank may come across, amounts to IRR485 billion and minimum 1. Liquidity Risk liquidity deficit which the Sina Bank may Liquidity risk represents a bank’s inability to encounter amounts to IRR1,288 billion. provide liquidity to settle its dues, meet its Based on the Bank’s experiences in the obligations and to increase its assets. The previous year, one may assume that the Sina Bank
Bank’s excess precautionary liquidity (approximately 1% of total resources) amounting to IRR1,500 billion is sufficient coverage to withstand any liquidity crisis. This also indicates that the Bank has adopted a suitable method for managing its liquidity risk.
2. Credit Risk Since financial loans constitute a major portion of the Sina Bank’s portfolio of assets, credit risk is undoubtedly the most important kind of risk to which the Bank is exposed. Credit risk occurs when the banks’ customers fail to fulfil their commitments on loans in time (ie. late or non-payment of part or all of loans, due to such reasons as the absence of repayment ability or the presence of limits and constraints for clearing funds) and any loss inflicting on the bank as a result.
Our policies in minimising credit risk are stated below:
Managing resource allocation. Improving existing processes. Increasing credit service variety (as a means to enhance customer satisfaction, boost profitability and reduce claims).
Effective customer identification and credit rating, followed by obtaining adequate collaterals have led to a considerable reduction of non-performing loans. Our credit risk during the reporting financial period amounted to IRR116 billion, for which we allocated IRR9 billion as coverage. Furthermore, total non-performing loans to total loans ratio was 7.84% during the reporting period, demonstrating an improvement compared to the 8% in the previous year.
3. Market Risk Market risk or value at risk (VaR) encompasses the risk of financial loss resulting from asset value, interest rate, market price and liquidity fluctuations. Market risk is composed of various other risks such as interest, forex, current (market factors), price fluctuations as well stock market. Our policies on managing and minimising the market risk are as follows: Annual Report 2015 - 2016
Constantly measuring economic factors. 4. Operational Risk Forecasting variables which affect market Operational risk is defined as the risk of loss risk. resulting from failed or inadequate internal Proposing improved models in boosting the processes, human and systems error, breach variety of portfolio (based on risk/return of security, or from external events such as assessments). satellite systems. Our policies in minimising Managing the foreign currency and shares operational risk are outlined below: portfolio, in view of the Bank’s base capital. Managing operations and services. Reviewing the performance of branches and units and reporting the results to higher We measure our market risk with the aid of authorities of the Bank. value at risk (VaR). Our stock market portfolio, Making recommendation regarding which has been measured using the Variance adjustments in improving the performance & Covariance Model, currently stands at of units. 2.91% and our investment value at risk Planning to improve internal controls. stands at IR94,494 million. Installing AML software.
Foreign currency portfolio is also exposed to Basel II Accord recommends 3 main comparatively little risk. Net foreign currency approaches in measuring operational risk. position to base capital ratios for different These include: currencies were 2.91% (USD), 2.15% (EUR), 1.32% (BRP) and 1.32% (CNY). Our foreign Basic Indication Approach (BIA) currency VaR equalled IRR5,772 million, all The Standardised Approach (TSA) of which comply with the guidelines as set Advanced Measurement Approach (AMA) forth by the CBI. Although at Sina Bank, we mainly use the BIA to monitor our market risk, we also use the operational risk matrix in order to measure human resource risks. Our operational risk (capital required to cover operational risk to base capital ratio) stands at 6.14%. Sina Bank Regulation Compliance Department Sina Bank along with the organisational values and principles and consideration of laws and regulations governing banking industry has given a special attention to compliance section and in the second half of the year 1395 (since October 2016), has embarked on the establishment of Regulation Compliance Department. Coordinating effective execution of bank policies, programs and guidelines to pertaining laws and regulations especially Central Bank circulars, spanning compliance culture and reducing compliance risk are among the purposes made for the creation of RCD and expansion of compliance function in all units of the bank.
Premier Actions Carried Out in 2016 Formulation of bank compliance policies and its endorsement by the Compliance Committee and the board of directors Holding compliance committee sessions and report of obtained decisions in the board of directors Formulation of RCD duty descriptions in cooperation with design and plan management and its endorsement in executive board Formulation of RCD duty procedures and its endorsement Coordination of circulars and regulations codified by the Bank with those of circulars dispatched by central bank and submission of the required report to senior management /Compliance Committee Carrying out necessary actions and preparations of KPMG intended documentations to establish an overseas branch Association and cooperation with other bank committees such as circular and operational risk committees Preparation of educational documentations regarding the content of compliance and its presentation to other bank colleagues for the purpose of raising awareness and developing the culture of compliance Annual Report 2015 - 2016
The Outlines and Pending Activities of the Year 2017 Annual revision of the bank compliance policies and submission of its report to compliance committee Coordination of bank circulars and guidelines to those of the Central Bank’s dispatched ones and submission of the required report to senior management/ compliance committee Increasing the domain authority of RCD for the purpose of adjusting the business units’ operations, reviewing the significant bank reports and submitting the required reports to reduce compliance risk Adjusting bank products and its new services to laws and regulations Preparing lists of regulations, circulars and the Bank’s served ground rules and also presenting them to all units Doing necessary actions and preparation s of KPMG intended documentations to establish an overseas branch Holding educational courses regarding compliance and observing regulations and circulars during the courses for all bank clerks Preparing necessary educational documentations for the colleagues in order to get published in the Bank’s journal for the purpose of developing compliance culture Sina Bank Financial Performance Main Financial Items
2013-14 2014-15 2015-16
Profit & Loss Items:
Total Revenues 23,597,383 27,189,017 30,812,658
Paid to Depositors (IRR & Foreign Currency) 16,045,528 21,382,433 24,630,683
Administrative & General Expenses 1,693,990 2,289,779 2,953,115
Depreciation Expenses 127,382 136,852 151,539
Bank’s Operations Department Expenses (Administrative, 1,821,372 2,426,631 3,104,654 General, Personnel, Advertisement & Depreciation Expenses)
Profit before Tax 5,166,494 2,571,020 2,431,449
Net Profit (after Tax) 4,838,109 2,351,471 2,269,012
EPS* 4,122,000 2,000,000 226,901*
Balance Sheet Items:
Balance of Granted Facilities (after deduction of Provision) 63,203,605 86,682,205 101,808,334
Balance of Deposits (Dues from Other Banks) 28,311,103 24,943,069 29,533,721
Balance of Dues from Central Bank of Iran (Statutory Deposit) 10,071,266 16,029,905 13,828,617
Balance of Deposits (Demand, Term & Other) 93,945,075 126,490,601 141,793,308
Balance of Debt to Banks (Other Deposits) 12,288,034 3,594,394 7,952,276
Total Assets 122,979,973 148,997,678 169,134,175
Total Shareholders’ Equity 11,889,952 13,755,214 14,179,478
Registered Capital 6,000,000 6,000,000 10,000,000
Working Capital Increase 0 3,844,748 0
Capital Adequacy Ratio (Percent) 10.5 14.2 12.5
EPS Items:
Actual Earnings per Share (EPS) at the Date of Approval of the 807 235 227 Report – IRR Cash Dividend per Share (DPS) at the Date of Approval of the 687 200 23* Report * – IRR
* Board of Directors Proposal Annual Report 2015 - 2016
Balance of Deposits The balance of deposits stood at IRR149,745 billion at the close of the Iranian fiscal year 1393 (March 2015), experiencing a 15% growth compared to the previous year.
Deposits
160,000
140,000
120,000
100,000
80,000
billion IRR 60,000
40,000
20,000
0 2013-14 2014-15 2015-16 Sina Bank Islamic Banking Principles
Since the most basic element defining Islamic 1) Participation Contracts finance requires a proper comprehension of and distinguishing between usury and profit, Under these types of contracts, banks provide Iranian banks have adjusted their operations the whole or a part of the funding required by according to Usury-Free Banking Act of 1983. its customers for a specific economic activity. Thus, Iranian banks lend their resources from The profit that results from such economic the following sources: activity is shared between the bank and the customer in accordance with the terms of the relative contract. These contracts consist of the following: Interest-Free Accounts
These are current and saving accounts, with the exception that they earn no interest. Saving a. Musharekat-e-Madani (Civil Partnership) accounts offer incentives to depositors (up to 4%), including one or several of the following: Under civil partnership contracts a bank funds prizes and bonuses in cash or in kind (usually a customer for a specific economic activity. run using a lottery) an exception from or a The customer co-invests in cash or in kind and discount on the payments of commissions and the profit is shared. fees, and priority in the use of banking loans.
b.Mushareket-e-Hoghoughi (Legal Term Deposits Partnership)
Banks are authorized to render various types In legal partnership, the banks provide a part of investment services, ranging from short- of the capital for a new company or buy shares term (6 months) to long-term (5 years) deposits. of such company. These contracts are feasible Although banks can use their capital plus in the fields of manufacturing, trade and service interest-free accounts, priority is given to industries. investment deposits. They can also use a combination of their own and depositors’ resources to grant loans to customers. Iranian c. Muzarabah (Trade Contracts) banks guarantee the principal and an interim return to the owners of the term deposits. Under Muzarabah, contracts, one party (the bank) provides funds and the other party (the customer) who uses the funds for trading. On the lending side, Iranian banking laws and Customers can be both legal entities or natural regulations separate banking products into two persons. Usage of funds is limited to the field categories: firstly, participation contracts and of trade. secondly, constant profit contracts. Annual Report 2015 - 2016
d. Muzara’ah d. Jealeh (Service Contracts) Under Muzara’ah contracts, one party (the This refers to the obligation of a person (the bank) hands over to the other party (the customer) to pay a certain sum or fee in return customer) a farmland for a specific duration of for a certain favour according to the contract. time. The customer works on the land and the Acting as an agent or as a contracting party if relative proceeds are shared. needed, a bank may arrange a Jealeh for the purpose of providing the loans required to e. Musaqhat develop a business. Under Mosaghat contracts, the owner of trees in a garden (the bank) maintains an irrigation e. Tanzeel (Discounting) contract with an agent (the customer) and In this case, banks can discount drafts and /or relative proceeds are shared. various types of commercial notes.
2) Constant Profit Contracts Finally, banks are also allowed to allocate Here, the bank provides the whole or a part of some of their own resources to make direct the financing required by its customers for a investments. specific venture. Unlike the participation contracts, the bank’s profit is already fixed at f. Murabaha the signing of the contract and before the Under the terms of Murabaha a bank fulfills the commencement of the activity. role of a supplier and informs of the applicant of the finished cost or of any given assets or a.Foroush-e-Aghsati (Credit Sale) services. Then having added a percentage to Credit Sale is a contract whereby one party the finished cost as profit, the bank sells the (the bank) delivers goods to the other party assets or services to the applicant. Method of (the customer) at pre-set price. The price is payment may be in the form of cash or by amortized, totally and/ or partially, on predicted instalments. maturity dates through equal or unequal instalments. g. Istisna’a This kind of contract is designed to serve the b. Ejareh-Besharte-Tamlik (Hire Purchase) manufacturing sector, where a product is In this particular type of leasing contract, it is manufactured, converted or transformed. agreed that the lessee, if complying with the Under the term of Istisna’a, product terms of the contract will obtain the ownership specifications as well as time of delivery are of the leased property upon the completion of defined. the contract. c. Salaf (Future Contracts) A Forward Sale is a contract whereby the bank purchases goods produced by the customer, paying the price in cash, and receives the goods in future.
Sina Bank Balance of Loans The balance of total loans granted by March 2016 amounted to IRR136,246 million, enjoying a growth of 17.6% in comparison with the similar period in the previous year.
Balance of Loans
140,000
130,000
120,000
110,000
100,000 billion IRR
90,000
80,000
0 2013-14 2014-15 2015-16 Annual Report 2015 - 2016 Revenues
Our revenues during the reporting fiscal period reached IRR30,813 billion, which enjoyed a growth of 13% compared to the previous year. A considerable portion (IRR27,950 billion) of this is related to operational income, that is interest earned from granted loans.
The following line charts show that constant increasing trend of Sina Bank’s revenues in the previous three years.
Total Revenues
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000 million IRR 10,000,000
5,000,000
0 2013-14 2014-15 2015-16
Loans & Deposits Revenues
30,000,000
25,000,000
20,000,000
15,000,000 million IRR 10,000,000
5,000,000
0 2013-14 2014-15 2015-16 Sina Bank Interest Paid to Depositors As deposits enjoyed a growth during the reporting period, so did the payment of interest. During this period, interest payments to depositors amounted to IRR24,631 billion, a 15% increase compared to the previous year. It is noteworthy that interest paid accounts for 87% of the Bank’s total expenses.
The following charts outline Sina Bank’s expenses, interest paid and interest paid on deposits to total expenses ratio in the previous three years.
Total Expenses of the Bank
30,000,000
25,000,000
20,000,000
15,000,000 million IRR 10,000,000
5,000,000
0 2013-14 2014-15 2015-16
Interest Paid to Depositors (IRR & Foreign Currency)
30,000,000
25,000,000
20,000,000
15,000,000 million IRR 10,000,000
5,000,000
0 2013-14 2014-15 2015-16 Annual Report 2015 - 2016 Ratios
2013-14 2014-15 2015-16
Profitability (Amounts in IRR, Ratios & Growth Rates in Percent)
Growth Rate of Total Revenues of the Bank (Percent) 42.1 15.2 13.3
Growth Rate of Net Profit (Percent) 86.3 -51.4 -4
ROA (Net Profit to Average Total Assets) – Percent 4.45 1.73 1.43
ROE (Net Profit to Average Shareholders’ Equity) – Percent 47.0 18.3 16.2
Actual Earnings per Share (EPS) at the Date of Approval of the 807 235 227 Report – IRR Cash Dividend per Share (DPS) at the Date of Approval of the 687 200 23 * Report – IRR Operating Efficiency (Amounts in IRR, Ratios & Growth Rates in Percent)
Balance of Facilities to Balance of Total Deposits (Percent) 88 88 90
Balance of Facilities to Total Assets (Percent) 76 75 78
Per Capital (Average) of Balance of Deposits in each Branch 340,555 444,207 546,544 (Million IRR) Per Capital (Average) of Balance of Facilities of each Branch 297,395 391,274 486,105 (Million IRR)
Total Revenues to Average Assets Ratio (Percent) 21.7 20 19.4
Bank’s Operations Department Expenses (Administrative, General, Personnel & Depreciation Expenses) to Average Assets 1.68 1.78 1.95 Ratio (Percent)
Facilities & Deposits Revenue to Total Assets Ratio (Percent) 74.9 86 90
Operational Risk (Percent):
Capital Adequacy Ratio (Percent) 10.5 14.2 12.5
Leverage Ratios (Percent):
Liability Ratio (Average Balance of Liabilities to Average Balance 90.5 90.6 91.2 of Assets) – Percent
* Board of Directors’ Proposal Sina Bank Capital Adequacy Ratio Our capital adequacy ratio (CaR) currently stands at 12.5%, which is well over the recommendations of the Basel II Committee’s minimum 8% and the requirements of the CBI. The following chart outlines our CaR trend in the previous three years.
Capital Adequacy Ratio
16.0% 14.0% 12.0% 10.0% 8.0%
Percent 6.0% 4.0% 2.0% 0.0% 0 2013-14 2014-15 2015-16
Our Investments In order to maximise our asset returns, we have invested in the Tehran Stock Exchange (TSE). Our short-term investments in 54 TSE listed companies amount to IRR3,179,393 million (IRR1,904,357 million in the previous year). These companies operate in 21 different fields of activity.
During the reporting financial period, Sina Bank enjoyed returns in the amount of IRR349,097 million or 21.92% (20.2% in the previous year) investment returns. CHAPTER III Independent Auditor’s Reports & Financial Statements Sina Bank
Ministry of Economic Affairs & Finance Audit Organisation Independent Auditor’s Report To the Annual General Assembly of Sina Bank (Public Joint Stock Company)
Introduction 1- We have audited the accompanying consolidated financial statements of the Group & Sina Bank (Public Joint Stock Company) which comprise the balance sheets as at 20 March 2015 and profit & loss statements and cash flow statements for the year then ended with explanatory notes 1 to 57.
Board of Directors’ Responsibility for the Financial Statements 2- According to the sample financial statements attached in circular number 94/343723 dated 4 February 2016, of the Central Bank of the Islamic Republic of Iran (CBI), the Board of Directors is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Iranian Accounting Standards, and for such internal control, as management determines, is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Responsibility of the Auditor & Legal Inspector 3- Our responsibility is to express an opinion on these financial statements based on our audit conducted in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the 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 risks of material misstatements of the financial statements, whether Dues 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 inthe circumstances, but not for the purpose 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 board of directors, 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 basis for our qualified audit opinion. Annual Report 2015 - 2016
In addition to performing the duties of a legal inspector, we are responsible for reporting any non-compliance to the Commercial Code as amended, the Articles of Association of the Bank, monetary and banking, usury-free banking legislation, to the General Assembly of the shareholders.
Basis for Qualified Opinion 4- As stated in explanatory notes 51 and 52, due to the lack of sufficient information in reference with the Bank’s risks, it is not possible for us to ensure that appropriate criteria in this regard has been selected for use.
Qualified Opinion 5- In our opinion, with the exception of possible impacts of paragraph 4, the above financial statements present fairly in all material aspects, the financial position of the Group and Sina Bank (Public Joint Stock Company) as at 4 February 2016, and its financial performance and its cash flows for the year then ended in accordance with Iranian financial reporting standards.
Emphasis on Important Issues 6- This report has been prepared according to accounting standards issued on 19 July 2016. In addition, this report is, in accordance with the CBI regulations, an integral part of the report to the General Assembly of the shareholders. Our opinion has not been qualified as a result of the contents of this paragraph.
7- As described in explanatory note 8-1, during the first quarter of 2012, IRR434 billion was withdrawn from Sina Bank statutory deposits by CBI as exchange rate difference which was recorded as CBI’s dues. Although the Bank objected to the mentioned withdrawal obtaining any refund and settlement is pendent upon a special foreign currency audit to be carried out by the CBI; the result of which was not conclusive by the reporting date. Our opinion is not qualified due to the contents of this paragraph.
8- According to explanatory notes 20-1-2 and 20-1-3, amount of IRR507 billion in corporation tax for the 2013-14 and 2014-15 periods in excess of paid amount or provision in the accounts, has been claimed. The Bank has filed an appeal against this claim which has not been conclusive as yet. In addition, sufficient provision for corporation tax for the reporting fiscal Sina Bank
period has not been recorded in the accounts. Determining the final tax amount is pendent upon assessments and the final verdict of tax authorities. Our opinion has not been qualified as a result of contents of this paragraph.
9- As stated in explanatory notes 21 and 45, based on the provision of guideline for scale and means of obtaining membership fees in the Deposits Guarantee Fund (ratification number H48367 T/100998 dated 1392/05/02 (24.07.2013) and its amendment in accordance with ratification number H49837 T/150501 dated 1393/12/10 (01.03.2015) of the cabinet, annual membership fees amount to 0.25 of average daily balance of all deposits throughout the previous fiscal year, less statutory deposits and up to the limit of the Fund’s guarantee (IRR10 billion). In this regard, although the membership fee for the previous fiscal period has not been announced via the Fund as yet, the amount of IRR227 billion as a portion of the annual membership fees has been allocated for payment or as provision in the accounts. Our opinion has not been qualified due to the contents of this paragraph.
Report on Other Legal and Regulatory Requirements of Sina Bank Report on Other Duties of the Legal Inspector
10- Instances of noncompliance with legal requirements of the Commercial Code as amended and provisions of Bank’s Articles of Association are as follows:
10-1- Provisions of Article 10 of the Articles of Association concerning acquiring maximum 10% of the Bank’s shares via each shareholder.
10-2- Provisions of Article 58 of the Articles of Association which refer to having 7 board members as opposed to the current 5 members.
10-3- The Bank follow ups for performing the duties, ratified in Shareholder’s Ordinary General Assembly session held on 21 July 2015 regarding the cases included in paragraph 12 of this report, as well as pursuits in collecting outstanding claims and reducing them and obtaining approval of Iranian Privatisation Organisation (IPO), in relation with transferring the Qom Power Plant shares, have not been finalised. Annual Report 2015 - 2016
11- The items which do not comply with the regulations of monetary and banking act along with its executive guidelines and the related circulars and approvals of the Central Bank of the Islamic Republic of Iran have been submitted to the CBI separately.
12- As stated in explanatory notes 9-8, the Bank’s balance of loans in the amount of IRR16,504 billion has been granted to the Mostazafan Foundation’s subsidiaries and affiliated companies, are mainly overdue and outstanding. It is necessary for the Bank to reconsider granting such loans in order to optimise its use of liquidity and to reduce the volume of such facilities.
13- As indicated in explanatory note 16-2, dormant and prior years’ items in the amount of IRR1,252 billion are mainly related to Tabnak, Elham Tabriz, Jame Jam Maragheh, Sahand Maragheh and Ati Shahr projects, which had not been settled by the date of this report.
14- With the exception of interest down payment to depositors which exceeded the final interest payment by IRR959 billion (relating to CBI’s circular number 126331 dated 9 March 2009 and its subsequent amendments) as stated in investment deposits report, we did not encounter any significant noncompliance with the mentioned circular.
15 - We have reviewed the transactions as stated in the explanatory note 53-1 of the financial statements carried out during the reporting fiscal year, which we have been informed of, by the Board of Directors as all the transactions liable to Article 129 of the Commercial Code as Amended. The mentioned transactions have taken place in compliance with the mentioned article which refers to obtaining a permit from the Board of Directors the beneficiary director not taking part in the voting process. In addition, with the exception of clause 12 of this report, we have not encountered any event where the aforementioned transactions have not taken place under ordinary trading conditions and within the ordinary operations processes of the Bank.
16- We received the Board of Directors’ report regarding company’s activity and general condition referred by Article 232 of the Commercial Code as Amended that was prepared for the presentation to the General Assembly. Having reviewed this report, we have encountered no evidence pointing to any significant discrepancy between the report and the presented documents. Sina Bank
Report on Other Legal & Regulatory Duties of the Auditor & Independent Inspector 17 - The following instances relating to rules and regulations as set forth via the Securities & Exchange Organisation during the reporting fiscal period, have not been complied:
17-1- The provisions of clauses 4 to 6 of Article 7 of the Executive Guideline of Companies’ Information Disclosure referring to audited interim (6 month), annual and future financial statements and consolidated financial statements of the Bank and its subsidiary companies within the permitted time span.
17-2- The provisions of Articles 10 and 13 of the executive instruction for information disclosure which refer to forwarding the minutes of Ordinary General Assembly held on 21.07.2015 to the companies registration authority maximum 10 days after the date of holding assembly and prompt disclosure of changing the composition of the Board of Directors and the Managing Director.
17-3- Provisions of Article 10 of Admission Instruction of the Securities & Exchange Organisation in Tehran in reference with floating shares by 10%.
18- In executing Article 33 of Combating Money Laundering Executive Instruction by the auditors, compliance with the said act and its related executive instructions we have has been reviewed by this institution in accordance with the framework of checklists as notified by the related authority and accounting standards. In this regard, with the exception of non-compliance with article 9 of payment systems i.e. not issuing nameless cards for non-customers and note 4 of means of identifying foreign customers of credit institutions manual which refers to not issuing electronic cards for foreign nationals, we did not encounter any significant event leading to breach of the mentioned regulations.
2 September 2016
Audit Organisation
Gholam Hossein Hajforoush Mohammad Nouri Hossain Abadi Annual Report 2015 - 2016
Sina Bank Consolidated Balance Sheet As at 19 March 2016
2016.03.19 (Restated) 2015.03.20 Assets Note (IRR Million) (IRR Million) Cash 7 29,078,883 24,985,677 Dues from Banks and Other Credit Institutes 8 1,265,872 700,140 Facilities to and Dues from Non-Governmental Entities 9 101,808,334 86,682,205 Investment in Stock Exchange and Other Securities 10 10,484,480 7,235,561 Dues from Affiliated Companies 11 1,940,607 3,575,797 Other Accounts Receivable 12 1,011,939 747,336 Fixed Tangible Assets 13 1,904,175 2,291,259 Intangible Assets 14 2,692,647 2,460,567 Statutory Deposit held with Central Bank of Iran 15 13,828,617 16,029,905 Other Assets 16 4,880,566 4,266,562 Total Assets 168,896,120 148,975,009 Customers’ Commitments on L/Cs 48-1 173,165 1,247,476 Customers’ Commitments on L/Gs 48-2 9,171,566 6,936,119 Customers’ Other Commitments 48-3 3,785,052 3,872,010 Managed Funds Counterpart & Similar Items 48-4 103,383 69,170 Memorandum Accounts 48-5 344,258,340 275,149,604
2016.03.19 (Restated) 2015.03.20 Liabilities & Equity Note (IRR Million) (IRR Million) Liabilities: Dues to Banks and Other Credit Institutes 17 1,439,771 1,315,062 Customers’ Deposits 18 9,817,821 6,996,382 Dividend Payable 19 29,583 45,766 Corporation Tax Provision 20 666,810 968,808 Reserves & Other Liabilities 21 1,836,803 1,553,051 Provision for Staff Termination Benefits 22 587,925 451,720 Total Liabilities 14,378,713 11,330,789 Investment Deposits Equity: Term Investment Deposits 23 138,284,454 121,584,648 Payable Profit of Term Investment Deposits 24 2,206,467 2,246,662 Total Equity of Investment Deposits 140,490,921 123,831,310 Total Liabilities & Equity of Investment Deposits 154,869,634 135,162,099 Equity: Share Capital 25 10,000,000 6,000,000 On-going Capital Increase 26 0 3,844,748 Capital for Subsidiaries from Re-evaluation 27 26,000 26,000 Parent Company Shares in Subsidiaries 28 (244,367) (28,979) Minority Interest 29 99 0 Legal Reserve 30 2,467,745 2,152,808 Retained Earnings 1,777,009 1,818,333 Total Equity 14,026,486 13,812,910 Total Liabilities and Equity of Shareholders’ 168,896,120 148,975,009 Bank Commitments on L/Cs 48-1 173,165 1,247,476 Bank Commitments on L/Gs 48-2 9,171,566 6,936,119 Other Bank Commitments 48-3 3,785,052 3,872,010 Managed Funds & Similar Items 48-4 103,383 69,170 Memorandum Accounts Counterpart 48-5 344,258,340 275,149,604
The enclosed explanatory notes form an integral part of the financial statements. Sina Bank
Sina Bank Consolidated Profit and Loss Statement Fiscal Year Ended 19 March 2016
(Restated) 2015-16 Note 2014-15 (Million IRR) (Million IRR) Income from Granted Facilities & 31 27,954,640 23,784,032 Deposits Interest Expense of Deposits 36 (24,589,251) (21,351,089) Net Income from Facilities & 3,365,389 2,432,943 Deposits Commission Income 37 1,782,441 1,062,844
Commission Expense 38 (1,038,554) (240,083)
Net Commission Income 743,887 822,761
Net Investment Income 32 1,204,284 1,495,303 Net Income of Transactions & Forex 39 110,613 (61,133) Transactions Net Income of Rendering Services 40 87,492 192,677
1,402,389 1,626,847
Total Operating Income 5,511,665 4,882,551
Other Income 41 361,724 805,587
General & Administrative Expenses 42 (2,971,265) (2,303,579)
Doubtful Debt Expenses 43 (331,484) (569,232)
Depreciation Expenses 44 (152,408) (138,088)
Other Expenses 0 (73,025)
(3,093,433) (2,278,337)
Profit before Income Tax 2,418,232 2,604,214
Income Tax 20 (176,715) (235,561)
Net Profit 2,241,517 2,368,653
Earnings Per Share (IRR) 50 Weighted Average of Base Profit of 224 237 each (Share) IRR
Since the components of comprehensive income statement are restricted to fiscal year profit and loss, the statement is not presented.
The enclosed explanatory notes form an integral part of the financial statements Sina Bank Consolidated Statement of Changes in Shareholders’ Equity Fiscal Year Ended 19 March 2016
2015-16 Capital of Shares of the Subsidiary Parent Total Companies Minority Note Capital Flowing Capital Legal Reserve Retained Profit Company held Shareholders’ from Interest with Subsidiary Equity Revaluation Companies Surplus Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR
Balance at 20 March 2016 25 6,000,000 3,844,748 26,000 2,152,808 0 2,024,842 (28,979) 14,019,419
Net Profit 0 0 0 0 0 2,241,517 0 2,241,517
Increase during the Year 0 155,252 0 314,937 0 0 (215,388) 254,801
Prior Years’ Adjustments 45 0 0 0 0 0 (206,509) 0 (206,509)
Total 6,000,000 4,000,000 26,000 2,467,745 0 4,059,850 (244,367) 16,309,228
Capital Increase
Registered Capital Increase 26 4,000,000 (4,000,000) 0 0 0 0 0 0
Distribution & Allocation
Legal Reserve 30 0 0 0 0 (314,937) 0 (314,937)
Minority Interest 29 0 0 0 0 99 0 0 99
Ratified Dividend 19 0 0 0 0 0 (1,967,904) 0 (1,967,904)
Total 4,000,000 (4,000,000) 0 0 99 (2,282,841) 0 (2,282,742)
Balance at 19 March 2016 10,000,000 0 26,000 2,467,745 99 1,777,009 (244,367) 14,026,486 Sina Bank Consolidated Statement of Changes in Shareholders’ Equity Fiscal Year Ended 19 March 2016
Continued 2015-16 Capital of Shares of the Subsidiary Parent Total Flowing Companies Retained Company held Capital Legal Reserve Shareholders’ Capital from Profit with Note Equity Revaluation Subsidiary Surplus Companies Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR
Balance at 21 March 2014 25 6,000,000 0 0 1,789,144 4,142,301 0 11,931,445
Net Profit 2,368,653 0 2,368,653
Prior Years’ Adjustments 45 (206,957) 0 (206,957)
Other Comprehensive Profit ( Loss) after Tax
Surplus of Assets Revaluation 26,000 26,000
Total 6,000,000 0 26,000 1,789,144 6,303,997 14,119,141
Capital Increase
Not Registered Capital Increase 0 3,844,748 0 0 0 0 3,844,748 Shares of the Parent Company held with Subsidiary Companies Purchasing Shares of the Parent Company 0 0 0 0 0 (28,979) (28,979)
Distribution & Allocation
Legal Reserve 30 0 0 0 363,664 (363,664) 0
Ratified Dividend 19 0 0 0 0 (4,122,000) (4,122,000)
Total 0 3,844,748 0 363,664 (4,485,664) (28,979) (306,231)
Balance at 20March 2016 6,000,000 3,844,748 26,000 2,152,808 1,818,333 (28,979) 13,812,910 Annual Report 2015 - 2016
Sina Bank Consolidated Statement of Cash Flows Fiscal Year Ended 19 March 2016
(Restated) 2015-16 Note 2014-15 (Million IRR) (Million IRR) Operating Activities Net Cash Inflow (Outflow) from 46 5,561,481 (2,075,907) Operating Activities Profit paid for Financing
Dividend paid 19 (759,791) (4,072,566) Net Cash Outflow from Profit paid for (759,791) (4,072,566) Financing Income Tax
Income Tax paid (611,393) (337,621)
Investing Activities
Funds Paid for Fixed Tangible Assets 13 (115,967) (295,329) Funds earned from Sales of Fixed 13,455 8,957 Tangible Assets Funds Paid for Intangible Assets 14 (39,691) (118,121) Funds Earned from Sales of 18,331 3,528 Intangible Assets Net Cash Inflow (Outflow) from (123,872) (400,965) Investing Activities Net Cash Inflow (Outflow) prior to 4,066,425 (6,887,059) Financing Activities Financing Activities
Capital Increase in Cash 155,351 3,844,748 Funds Paid for Purchasing Shares of the Parent Company by Subsidiary (215,388) (28,979) Company Net Cash Inflow (Outflow) from (60,037) 3,815,769 Financing Activities Net Increase (Decrease) in Cash 4,006,388 (3,071,290) Cash balance at the Beginning of the 24,985,677 28,164,334 Year Realized Foreign Exchange 86,818 (107,367) Difference Cash balance at the End of the Year 29,078,883 24,985,677
Non-Cash Transactions 47 3,228,666 1,902,388
The enclosed explanatory notes form an integral part of the financial statements Sina Bank
Sina Bank Balance Sheet As at 19 March 2016
(Restated) 2016.03.19 Assets Note 2015.03.20 (IRR Million) (IRR Million) Cash 7 29,077,517 24,984,861 Dues from Banks and Other Credit Institutes 8 1,265,872 700,140 Loans to and Dues from Non-Governmental Entities 9 101,808,334 86,682,205 Investment in Stock Exchange and Other Securities 10 10,945,002 7,529,335 Dues from Affiliated & Subsidiary Companies 11 2,799,216 4,173,190 Other Accounts Receivable 12 645,512 516,271 Fixed Tangible Assets 13 1,849,617 2,238,023 Intangible Assets 14 2,692,322 2,460,273 Statutory Deposit with Central Bank of Iran 15 13,828,617 16,029,905 Other Assets 16 4,222,166 3,683,475 Total Assets 169,134,175 148,997,678 Customers’ Commitments on L/Cs 48-1 173,165 1,247,476 Customers’ Commitments on L/Gs 48-2 9,171,566 6,936,119 Customers’ Other Commitments 48-3 3,785,052 3,872,010 Managed Funds Counterpart & Similar Items 48-4 103,383 69,170 Memorandum Accounts 48-5 344,258,340 275,149,604
(Restated) 2016.03.19 Liabilities & Equity Note 2015.03.20 (IRR Million) (IRR Million) Liabilities: Dues to Banks and Other Credit Institutes 17 1,439,771 1,315,062 Demand Deposits 18 9,768,895 7,013,755 Dividend Payable 19 29,583 45,766 Income Tax Provision 20 651,751 952,706 Reserves & Other Liabilities 21 1,737,676 1,463,269 Provision for Staff Termination Benefits 22 582,391 446,953 Total Liabilities 14,210,067 11,237,511 Investment Deposits Equity: Term Investment Deposits 23 138,536,918 121,756,178 Payable Profit of Term Investment Deposits 24 2,207,712 2,248,775 Total Equity of Investment Deposits 140,744,630 124,004,953 Total Liabilities & Equity of Investment Deposits 154,954,697 135,242,464 Equity: Share Capital 25 10,000,000 6,000,000 On-going Capital Increase 26 0 3,844,748 Legal Reserve 30 2,421,339 2,112,331 Retained Earnings 1,758,139 1,798,135 Total Equity 14,179,478 13,755,214 Total Liabilities and Equity of Shareholders’ 169,134,175 148,997,678 Bank Commitments on L/Cs 48-1 173,165 1,247,476 Bank Commitments on L/Gs 48-2 9,171,566 6,936,119 Other Bank Commitments 48-3 3,785,052 3,872,010 Managed Funds & Similar Items 48-4 103,383 69,170 Memorandum Accounts Counterpart 48-5 344,258,340 275,149,604
The enclosed explanatory notes form an integral part of the financial statements Annual Report 2015 - 2016
Sina Bank Statement of Investment Deposits Performance Fiscal Year Ended 19 March 2016
(Restated) 2015-16 Note 2014-15 (Million IRR) (Million IRR) Joint Income:
Income from Granted Facilities 31-1 22,202,470 17,509,491
Income from Deposits 31-2 5,099,427 5,959,075
Net Profit (Loss) of Investments 32 1,186,811 1,322,357
Total Joint Income 28,488,708 24,790,923
Bank’s Quota from Joint Income 33-1 (1,649,979) (2,070,027) Depositors Quota from Joint Income 26,838,729 22,720,896 before deduction of Attorney Fee Attorney Fee 34 (3,342,972) (2,689,433)
Depositors Quota from Joint Income 23,495,757 20,031,463 Bonus of Legal Reserve of 33-3 147,710 119,268 Investment Deposits Final Allocated Interest to Investment 23,643,467 20,150,731 Deposits On account Interest to Investment 35 (24,603,060) (21,340,534) Deposits Difference of Payable Interest (Surplus of Paid Interest) to (959,593) (1,189,803) Depositors
The enclosed explanatory notes form an integral part of the financial statements Sina Bank
Sina Bank Profit and Loss Statement Fiscal Year Ended 19 March 2016
(Restated) 2015-16 Note 2014-15 (Million IRR) (Million IRR) Profit from Granted Facilities & 31 27,949,802 23,784,032 Deposits Interest Expense of Deposits 36 (24,630,683) (21,382,433) Net Income from Facilities & 3,319,119 2,401,599 Deposits Commission Income 37 1,012,717 1,022,691
Commission Expense 38 (314,388) (239,701)
Net Commission Income 698,329 782,990
Net Investment Income 32 1,377,550 1,649,521 Net Profit (Loss) of Transactions & 39 111,134 (60,979) Forex Transactions 1,488,684 1,588,542
Total Operating Income 5,506,132 4,773,131
Other Income 41 361,455 793,752
General & Administrative Expenses 42 (2,953,115) (2,289,779)
Doubtful Debt Expenses 43 (331,484) (569,232)
Depreciation Expenses 44 (151,539) (136,852)
(3,074,683) (2,202,111)
Profit (Loss) before Income Tax 2,431,449 2,571,020
Income Tax 20 (162,437) (219,549)
Net Profit 2,269,012 2,351,471
Earnings Per Share (IRR) 50
Weighted Average EPS (Share) IRR 262 235
Since the components of comprehensive income statement are restricted to fiscal year profit and loss, the statement is not presented.
The enclosed explanatory notes form an integral part of the financial statements Sina Bank Statement of Changes in Shareholders’ Equity Fiscal Year Ended 19 March 2016
2015-16 Flowing Total Retained Note Capital Capital Legal Reserve Shareholders’ Profit Increase Equity Million IRR Million IRR Million IRR Million IRR Million IRR
Balance at 20 March 2015 25 6,000,000 3,844,748 2,112,331 2,007,092 13,964,171
Net Profit 0 0 0 2,269,012 2,269,012
Increase during the Year 0 155,252 0 0 155,252
Prior Years ’Adjustments 45 0 0 0 (208,957) (208,957)
Total 6,000,000 4,000,000 2,112,331 4,067,147 16,179,478
Capital Increase
Registered Capital Increase 26 4,000,000 (4,000,000) 0 0 0
Distribution & Allocation
Legal Reserve 30 0 0 309,008 (309,008) 0
Ratified Dividend 19 0 0 0 (2,000,000) (2,000,000)
Total 4,000,000 (4,000,000) 309,008 (2,309,008) (2,000,000)
Balance at19 March2016 10,000,000 0 2,421,339 1,758,139 14,179,478 Sina Bank Statement of Changes in Shareholders’ Equity Fiscal Year Ended 19 March 2016 Continued 2015-16 Flowing Total Retained Note Capital Capital Legal Reserve Shareholders’ Profit Increase Equity Million IRR Million IRR Million IRR Million IRR Million IRR
Balance on 21 March 2014 25 6,000,000 0 1,759,610 4,130,342 11,889,952
Net Profit 0 0 0 2,351,471 2,351,471
Prior Years’ Adjustments 45 0 0 0 (208,957) (208,957)
Total 6,000,000 0 1,759,610 6,272,856 14,032,466
Capital Increase
Registered Capital Increase 0 3,844,748 0 0 3,844,748
Distribution & Allocation
Legal Reserve 30 0 0 352,721 (352,721) 0
Ratified Dividend 19 0 0 0 (4,122,000) (4,122,000)
Total 0 3,844,748 352,721 (4,474,721) (277,252)
Balance at March 2015 6,000,000 3,844,748 2,112,331 1,798,135 13,755,214 Annual Report 2015 - 2016
Sina Bank Statement of Cash Flows Fiscal Year Ended 19 March 2016
(Restated) 2015-16 Note 2014-15 (Million IRR) (Million IRR) Operating Activities Net Cash Inflow (Outflow) from 46 5,327,972 (2,089,444) Operating Activities Profit paid for Financing
Dividend paid (759,791) (4,072,566) Net Cash Outflow from Interest paid (759,791) (4,072,566) for Financing Income Tax
Income Tax paid (594,683) (326,300)
Investing Activities
Funds Paid for Fixed Tangible Assets (114,797) (303,235) Funds earned from Sales of Fixed 13,050 9,717 Tangible Assets Funds Paid for Intangible Assets (39,555) (80,610) Funds Earned from Sales of 18,331 3,528 Intangible Assets Net Cash Inflow (Outflow) from (122,971) (370,600) Investing Activities Net Cash Inflow (Outflow) prior to 3,850,527 (6,858,910) Financing Activities Financing Activities
Capital Increase in Cash 155,252 3,844,748 Net Cash Inflow (Outflow) from 155,252 3,844,748 Financing Activities Net Increase (Decrease) in Cash 4,005,779 (3,014,162) Cash balance at the Beginning of the 24,984,861 28,108,236 Year Realized Foreign Exchange 86,876 (107,213) Difference Cash balance at the End of the Year 29,077,517 24,986,861
Non-Cash Transactions 47 3,228,666 1,902,388
The enclosed explanatory notes form an integral part of the financial statements Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 1- History & Main Activities
1-1 History Sina Bank (public company) was established under the name of Bonyad Credit & Finance Institute on 29 May 1985 and registered as no. 2904 under article 8 of Tehran Non-Commercial Institutes By-law. Islamic Revolution Mostazafan Foundation is the bank’s final step. The company’s name has changed to Sina Bank (public joint stock company) under extraordinary general meeting approval dated 1 Jan 2009 and certificate no. 87/135049 dated 18 March 2009 issued by Central Bank of the Islamic Republic of Iran (CBI). The Bank was registered as 439th company on secondary board of Tehran Stock Exchange on 10 Sep 2007. The Bank’s headquarters is located in No. 187 Ostad Motahhari Ave. Tehran.
1-2 Main Activities According to article 3 of the Article of Association, Sina Bank (public joint stock company) is active in monetary, financial and banking operations permitted in the framework of national monetary and banking regulations, usury-free banking operations law, money and credit council approvals, CBI circulars and instructions and other related regulations.
1-3 Number of Branches The number of branches at the end of the year is as follows:
2015-16 2014-15 Branches in Tehran province 62 61 Branches in other provinces 193 192 Branches in Free Zones 2 2 257 255
1-4 Employment The average number of staff during the year is as follows:
2015-16 2014-15 Head office and regional offices 716 728 Branches in Tehran province 407 381 Branches in other provinces 1,291 1,243 Branches in Free Zones 10 11 2,424 2,363 Employees of subsidiary companies 75 63 2,499 2,426
In addition, the number of employees of the services and logistics contractor (Sina Yaran Co.) on staff level and some of branch supervisions in Tehran by 19 March 2016 was 351 in total (number of employees by the end of the Iranian calender year 1393 - 20 March 2015) was 356.
2- Basis for Preparing Financial Statements With the exception of explanatory note 3-2-4, the Bank’s financial statements are mainly prepared based on historical cost. Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 2-1 Basis for Consolidation
2-1-1 Consolidated financial statements are the composition of financial statements items for Sina Bank (public company) and its subsidiaries subject to consolidation including Tosee Sina Co. - joint stock- (registered on 27 Oct 2007), Sarrafi Sina Co. (Sina Exchange Co.) – joint stock-(registered on 5 Aug 2012) and Sina Bank Exclusive Market-Making Fund (registered on 3 Aug 2015) following the elimination of inter-company transactions and outstanding balances and adjustments for any unrealised intergroup gains and losses. The subsidiaries’ fiscal year ends on 21st of March.
2-1-2 The subsidiaries acquired during the period and the subsidiaries sold have their operation results from the date of effective transfer to and from the Parent Company entered in the consolidated profit and loss statement.
2-1-3 The Parent Company’s shares bought by the subsidiaries are reflected in consolidated balance sheet as equity reducer under “The Parent Company’s Shares in Possession of the Subsidiaries”.
2-1-4 The Sina Information Technology Development Company was registered on 1394/11/07 (27.01.2016) under registration number 486334. This company has not had any turnover and is currently inactive.
3- Operational Monetary & Reporting Unit Financial items have been measured based on the currency of the Bank’s main location of economic activity, which is the Iranian Rial (IRR). For a better understanding, these items have been reflected as million IRR, except for instances where they have specifically been referred to in the financial statements and explanatory notes.
4- Use of Judgments & Estimations In preparing the financial statements, the Bank’s management has made judgments, estimations and assumptions. The actual results may be different to the estimates. These estimations and assumptions are based on historical records and the management constantly compares them with actual events and makes revisions in this regard. The main areas where the management uses judgements and estimations are outlined below:
4-1- Provision for general and administrative expenses
5- Basis for Measuring & Changes in Accounting Procedures The basis for measuring and changing the mentioned accounting procedures has been explained in note 6. These procedures which are practiced throughout all reported periods, have been presented in the financial statements.
6- Summary of Accounting Procedures
6-1 Investments Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 6-1-1- Method of Evaluation Long-term investments are evaluated based on cost price, following deduction of any decline in accumulated value of each investment and currency marketable investments at least cost price and net sales value and other current investments are evaluated at least cost price and net sales value of each investment in the following manner:
Group Bank
Evaluation method of long-term investments: Investment in the subsidiary Subject to consolidation Cost (less provision of each investment) subject to consolidation Investment in affiliated Equity method Cost (less provision of each investment) companies Cost (less provision of Other long-term investments Cost (less provision of each investment) investment)
Current investments:
Lower of cost And Net Realisable Lower of cost And Net Realisable Value of Marketable Investment Value of Total Investments Total Investments Lower of cost And Net Realisable Lower of cost And Net Realisable Value of Other current investments Value of Every Single Investment Every Single Investment
6-1-2- Income from investments in the shares of subsidiary and affiliated companies are recognised at the time of approval of dividends via the general assemblies of shareholders of investee companies (up to the approval date of the financial statements). Income from other long-term and current investments are recognised at the time of approval of dividends via the general assemblies of shareholders of investee companies (up to the balance sheet date).
Group Bank
Income Recognition Method:
On approval of profit by the investee’s Investment in subsidiary Subject to consolidation general meeting of shareholders (until subject to consolidation financial statements approval date) On approval of profit by the investee’s Investment in affiliated Equity method general meeting of shareholders (until companies financial statement approval date) At the time of profit approval by On approval of profit by the investee’s Other long-term & current investee’s general meeting of general meeting of shareholders (until investments shareholders (until balance sheet balance sheet date) date)
6-2 Tangible Fixed Assets
6-2-1 Tangible fixed assets, except land and building (note 3-2-4) are recorded in the accounts on a cost basis. Any expenditure incurred for improvements and major repairs of a fixed asset that lead to a significant extension of its useful life or to a material improvement inits performance quality is capitalized and subsequently depreciated over the remainder of the asset’s useful life. Maintenance and minor repairs costs are expensed as incurred and reported as part of the period’s profit and loss account. Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 6-2-2 Depreciation on tangible fixed assets is based on the depreciation chart of Section 151 of Direct Taxation Act using rates and methods as follows:
Asset Depreciation Rate Depreciation Method Buildings 7% Declining Utility Equipment 10% and 12% on 15 Years Declining & Straight Line Motor Vehicles 25%, 30% and 35% Declining Machinery & Tools 25% and 100% Declining Computer Hardware 3, 5 and 10 Years Straight Line Telecommunication and Electronic 3 and 10 Years Straight Line Equipment POS & ATM 5 Years Straight Line Office Furniture & Systems 10 Years Straight Line
6-2-3 Fixed assets that are acquired and operationalized during any given month will be accounted for, and depreciated as of the start of the next calendar month. In cases where a depreciable fixed asset remains utilized due to, for example, closure of operations or for other reasons, depreciation for the mentioned periods is accounted for at 30 percent.
6-2-4 To use exemption mentioned in Budget Act 2011 about assets revaluation and under applicable instruction item B clause 78 Budget Act 2011 using Ministry of Justice official experts views and under board of directors’ approval, “land and building” item from tangible fixed assets and “goodwill” item from intangible assets were revalued and approved and excess amount of IRR2,000 billion was recognised in the accounts and registered and was approved by the extraordinary general assembly dated 2012.07.18 after passing legal proceedings and obtaining necessary certificates, this was registered in the Bank’s capital account. Itwas registered in Companies Registration General Office on 19 October 2012.
6-3 Intangible Assets All intangible assets except goodwill (note 11-1) are reflected in the accounts on the cost basis. Goodwill is not subject to any amortization and value decrease test is carried out at the end of each fiscal year and provision would be considered, if necessary. Administrative and operational software are amortized using the straight-line method over a five-year period.
6-4 Income Recognition on Loans, Commissions and Late Payment Penalties Based on ratification 1044 dated 16 July 2005 of Money & Credit Council and according to CBI’s Circular MB/772 dated 18 July 2005, income recognition of the Bank is based on commitment method. In addition, based on CBI guideline number 94/258020 dated 30.11.2015 no provision has been recongised for doubtful commitment income. Based on the mentioned method, the Bank’s income are as follows:
Type of Income Method of Identification Profit from Granted Facilities, Commission from Based on CBI Guideline Number 94/258020 Dated Gharz-al-Hassaneh Facilities & Late Payment Penalties 30.11.2015 Late Payment Penalties Date of Issuance of L/Gs Commission on Issued L/Gs At the Time of Offering Services Commission on Other Banking Services At the Time of Offering Services Commission on Gharz-al-Hassaneh Facilities Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 6-5 Basis for Determination of Depositor’s Share of Income from Joint Activities In compliance with the requirements promulgated in Iran’s Act on Usury-free Banking Operations of 30 August 1983 and its operational guidelines and also CBI Circular MB/2823 dated 24 February 2007 and its subsequent amendments, shared income, joint uses of resources and depositor’s profit share are calculated from shared income.
6-6- Classifying Granted Facilities Granted facilities are estimated according to the “instruction for classifying Credit Institutions’ assets” approved by Credit and Monetary Council (subject of CBI’s circular No. MB/2823 dated 24 February 2007) with respect to the factors such as time of deferred payment, customer financial status and its relevant industry or activity which is categorized as follows:
1. Current debts (maximum up to 2 months from the maturity date and/or payment stop) 2. Overdue debts (between 2 and 6 months from the maturity date and/or payment stop) 3. Outstanding debts (between 6 and 18 months from the maturity date and/or payment stop) 4. Doubtful debts (over 18 months from the maturity date and/or payment stop) The management has made no judgment out of the framework of the above circular about financial statements.
6-7- Doubtful Debts Provision Doubtful debts provision is calculated according to “the method of calculating Credit Institutions debts provision Instruction” approved by Credit and Monetary Council (subject of CBI’s circular No. 91/21270 dated 19 April 2012) and reflected in the accounts.
1. General reserve: equal to 1.5% total balance of granted facilities at the end of each year except the ones for which specific provision is taken. 2. Specific reserve: based on the granted facilities balance which is the subject of overdue, outstanding and doubtful debts, after deducting value updated collaterals and implementing determined indices, calculated as follows:
Class Index
Overdue 10%
Outstanding 20%
Doubtful debts (with regard to evaluation of customer’s ability for payment) 50% to 100%
3. For doubtful debts whose maturities surpass 5 years, specific provision equal to 100% within the next 5 years is considered. The management has made no judgment out of the framework of the above circular about financial statements.
6-8- Personnel Work Termination Benefits Provision Personnel work termination benefits provision is calculated and taken into consideration in accounts on the last amount of fixed salary and permanent benefits per annum basis.
6-9- Foreign Exchange Conversion Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 6-9-1- Domestic Accounts Foreign currency monetary items with official rate or free market rate and non-monetary items which are recorded at cost based on F/X are converted on balance sheet date and official rate or free market rate on dealing date. Differences resulted from foreign currency monetary items settlement or conversion are recognized as income or expenses and reported in profit & loss statement. F/X official rates as at balance sheet date are as follows:
Bank- Official
IRR
USD 30,240
CAD 23,085
EUR 33,935
GBP 43,089
AED 8,234
CNY 4,655
RUB 439
INR 453
TRY 10,551
KRY 25,761
6-9-2- The Bank has no accounts resulted from foreign operations.
7-Cash
Group Bank
2015-16 2014-15 2015-16 2014-15
IRR Million IRR Million IRR Million IRR Million
Cash (IRR) 7-1 599,433 656,698 599,433 656,698
Cash (F/X) 7-2 210,801 85,371 210,085 85,234 Items in Transit- 150 0 150 0 IRR Sight Deposit with 7-3 76,620 18,029 76,620 18,029 CBI (Unrestricted) Deposits with Other Banks & 7-4 28,191,879 24,225,579 28,191,229 24,224,900 Credit Institutes (Unrestricted) 29,078,883 24,985,677 29,077,517 24,984,861 Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 7-1- Cash with bank’s branches (IRR & F/X) is recounted at the end of year, cash with IRR branch ATMs is insured up to IRR 1,470 billion. Working cash with treasury & branches is insured by Sina Insurance Co. up to IRR 2,026 billion against hazards resulted from robbery and fire.
7-2- F/X cash balance includes USD 5,440,940, EUR 1,319,380, GBP 17,182, AED 56,212, CAD 1,100, AUD 3,250, and AZN 861.
7-3- Sight deposit with CBI (unrestricted)
2015-16 2014-15
IRR Million IRR Million
Sight Deposit with CBI - IRR (unrestricted) 75,025 17,295
Sight Deposit with CBI – F/X (unrestricted) 1,595 734
76,620 18,029
F/X sight deposit with CBI include EUR 46,993
7-4- Deposits with Other Banks and Credit Institutions (unrestricted)
Group Bank 2015-16 2014-15 2015-16 2014-15 IRR Million IRR Million IRR Million IRR Million Sight Deposits with Other Domestic Banks and Credit 116,719 174,728 116,563 174,571 Institutions - IRR (unrestricted) Sight Deposits with Other Domestic Banks and Credit 7-4-1 497,932 218,113 497,438 217,645 Institutions – F/X (unrestricted) Term Deposits with Other Domestic Banks and Credit 7-4-4 27,172,103 22,487,418 27,172,103 22,487,364 Institutions - IRR (unrestricted) Term Deposits with Other Domestic Banks and Credit 7-4-3 3,024 2,799 3,024 2,799 Institutions – F/X (unrestricted) Sight Deposits with Foreign 7-4-2 402,101 1,342,521 402,101 1,342,521 Banks – F/X (Unrestricted) 28,191,879 24,225,579 28,191,229 24,224,900
7-4-1- Sight deposits with other domestic banks and credit institutions – F/X (unrestricted) include GBP 43,993, USD 404,509, RUB 5,978,187, OMR 66,042, INR 3,524,779, CHY 3,429, KRY 146,755,347, TRY 9,598,906, EUR 10,868,629.
7-4-2- Sight deposits with foreign banks – F/X (Unrestricted) include GBP 10,260, AED 20,053,305, CHY 17,551,616 and EUR 4,562,773. Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 7-4-3- Term deposits with other domestic banks and credit institutions – F/X (unrestricted) include USD 100,000.
7-4-4- The above amount include 2 time deposits and 20 short-term deposits with domestic banks.
7-5- The balance with banks which has a withdrawal restriction is classified in Dues from Banks
8- Dues from Banks and Credit Institutions
2015-16 2014-15 IRR Million IRR Million Dues from CBI 8-1 433,958 433,958 Dues from Other Banks & Credit Institutions 8-2 831,914 266,182 Total 1,265,872 700,140
8-1- Dues from CBI, i.e. IRR 433,958 million, withdrawn from deposits with CBI according to notice dated 5 March 2012 under the title of F/X rate difference for the approval no. 47698T/ M/90-34030 dated 8 Jan 2012 of F/X Affairs Task Force Five-Member Board and based on CBI’s order dated 1 March 2012. Protest was lodged with the letters 103/6 dated 28 March 2012 and 69822 dated 14 Nov 2012 sent to CBI. Regarding CBI’s letter no. 94/51320 dated 23 May 2015 on special F/X audit of this bank for years 2011/2012 and 2012/2013, a contract was signed with Audit Organization, requesting the investigation and reporting. No report has been submitted to the Bank up to this date.
8-2- Dues from Other Banks & Credit Institutions
2015-16 2014-15
IRR Million IRR Million
Paying Cheques Issued by Other Banks 17,156 158,704
Net Interbank Transactions 8-2-1 684,532 0 Interest Receivable from Facilities & Interbank 8-2-2 130,226 107,478 Deposits 831,914 266,182
8-2-1- The balance is related to customers’ interbank cheques in clearing house (CBI- CHAKAVAK) which are cleared on the next day.
8-2-2- The balance is related to profit receivable from deposits with banks and profit receivable from facilities granted to banks (interbank overnight) according to contract. Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
9- Granted Facilities & Dues from Non-Governmental Entities
2015-16 2014-15 Late Interest & Civil Payment Outstanding Doubtful Principal Commission Partnership Next Year’s Penalty Interest & Total Debts Net Net Balance Receivable Joint Interest Receivable Commission Provision Balance Account Balance IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million
Credit Sales 907,276 22,744 36,200 0 (494,918) (15,690) 455,612 (98,203) 357,409 213,144 Jealeh 1,548,711 30,547 86,442 0 (1,284,418) (17,703) 363,579 (140,262) 223,317 939,774 (Service Contracts) Lease to Own 23,545 6,399 9,498 0 (3) (6,384) 33,055 (32,638) 417 12,394 (Hire Purchase) Muzarebeh 60,316 6,196 30,211 0 0 (6,196) 90,527 (58,099) 32,428 46,651
Civil Partnership 99,628,170 6,431,050 1,087,634 (1,755,949) 0 (1,576,988) 103,813,917 (2,761,881) 101,052,036 81,825,031 Other Granted 48,696 261 4,033 0 0 (239) 52,751 (21,811) 30,940 47,268 Loans Granted Facilities 10,681 216 3,329 0 0 0 14,226 0 14,226 2,251,478 (F/X) Debtors for Paid 20,321 0 0 0 0 0 20,321 (12,041) 8,280 62,535 L/Gs Debtors for Paid 85,888 0 0 0 0 0 85,888 0 85,888 1,280,466 Credit Cards Customers’ Debt for Settled 3,393 0 0 0 0 0 3,393 0 3,393 3,464 Facilities 102,336,997 6,497,413 1,257,347 (1,755,949) (1,779,339) (1,623,200) 104,933,269 (3,124,935) 101,808,334 86,682,205 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 9-1- Classification of granted facilities and due from non-governmental persons based on instruction approved by Money & Credit Council (subject of explanatory note 6-6) is as follows:
2015-16 Current Overdue Outstanding Doubtful Total Credit Sales 824,242 3,029 61,780 61,479 950,530 Jealeh 1,330,109 3,818 183,235 130,835 1,647,997 (Service Contracts) Lease to Own 31 0 12,649 20,378 33,058 (Hire Purchase) Muzarebeh 0 0 34,289 56,238 90,527 Civil Partnership 99,562,882 1,626,097 2,616,681 3,387,406 107,193,066 Other Granted 25,839 1 17,081 9,830 52,751 Loans (IRR) Granted Facilities 14,226 0 0 0 14,226 (F/X) Debtors for Paid 18,042 0 1,115 1,164 20,321 L/Gs Debtors for Paid 85,888 0 0 0 85,888 Credit Cards Customers’ Debt for Settled 0 0 3,393 0 3,393 Facilities 101,861,259 1,632,945 2,930,223 3,667,330 110,091,757 Less Next Year’s (1,779,339) 0 0 0 (1,779,339) Interest Outstanding Interest & (1,623,200) 0 (1,623,200) Commission Civil Partnership (1,755,949) 0 0 0 (1,755,949) Joint Account Net Granted Facilities before 96,702,771 1,632,945 2,930,223 3,667,330 104,933,269 deducting Doubtful Debts Provision Doubtful Debts (1,446,721) (14,663) (7,443) (11,798) (1,480,625) General Provision Doubtful Debts 0 (33,589) (78,276) (1,532,445) (1,644,310) Specific Provision 95,256,050 1,584,693 2,844,504 2,123,087 101,808,334
9-1-1- The applicants’ requested facilities have been paid with respect to their field of activity in framework of contracts such as Jealeh, credit sales, lease to own, civil partnership, Mozarebeh and other facilities and loans paid from managed funds. Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 9-1-2- F/X granted facilities include EUR 419,212 paid to Bonyad Mostazafan (Board of Directors Member and shareholder) which is conversed by official F/X rate. F/X facilities reduction during the fiscal period is due to cash settlement of Bonyad facilities and part of profit share of 2014-15.
9-1-3- When granting facilities to the applicants and with respect to facilities settlement schedule, the minimum expected interest of each one of facilities and dividing the interest into each year while reflecting in financial books in heading “Next Years’ Interest” is calculated and each installment interest share is systematically reflected in guaranteed interest account at the end of each month.
9-1-4- With respect to bank’s type of activity and facility payment, the possibility of turning facilities into bad debts is always unavoidable. Therefore, based on the method mentioned in (note 6-6) accounting procedures highlights, the required provision i.e. IRR 3,124,935 million has been reflected in the accounts at the end of fiscal period.
9-1-5- Bank takes credible securities such as cheques, promissory notes and mortgage bond against facilities granted to applicants and repossesses the bonds or prosecutes other securities with respect to internal standards and bylaws, in case of default by the customer.
9-1-6- Balance of granted facilities to affiliated persons is IRR 18,613,960 million (note 53).
9-2- Doubtful debts provision turnover is as follows:
2015-16 2014-15 General Specific General Specific Total Total Provision Provision Provision Provision IRR million IRR million IRR million IRR million IRR million IRR million Balance at the Beginning of 1,210,410 1,583,041 2,793,451 936,103 1,288,116 2,224,219 Year Current Year’s 270,215 61,269 331,484 274,307 294,925 569,232 Provision Balance at the 1,480,625 1,644,310 3,124,935 1,210,410 1,583,041 2,793,451 End of Year
9-3- F/X Granted facilities segregated by resources paid
2015-16 2014-15 IRR million IRR million Internal Resources 14,226 2,251,478 14,226 2,251,478
Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 9-4- Granted Facilities & Dues from Non-Governmental Persons in terms of Maturity & Interest Rates
2015-16 2014-15
24% and 21% to 18% to 15% to 12% to 12% and Total Total higher 24% 21% 18% 15% lower IRR IRR IRR IRR IRR IRR IRR IRR million million million million million million million million 2015/16 and 11,671,065 4,171,870 17,521 15,933 43,829 29,077 15,949,295 11,026,293 before
2016/17 6,519,448 43,340,315 246,092 108,738 139,143 20,944 50,374,680 43,434,086
2017/18 8,975,698 2,433,765 140,930 35,856 317,880 36,302 11,940,431 7,499,272
2018/19 4,143,124 7,865,000 293,016 219,794 414,126 54,332 12,989,392 12,792,620
2019/20 and 8,904,364 9,404,750 33,908 11,734 171,306 311,897 18,837,959 16,405,792 after
40,213,699 67,215,700 731,467 392,055 1,086,284 452,552 110,091,757 91,158,063
13 March 2015 83,805,416 4,502,243 688,671 520,332 1,371,047 270,354 91,158,063
9-5- F/X Granted Facilities segregated by Securities Type
2015/16 2014/15
IRR million IRR million
Deposits 13,540,865 19,765,133
Participation Bond & Shares 6,798,359 4,137,678
Enforcible Contracts 87,267 14,586
Land, Building & Machineries 12,880,209 12,805,493
Cheques & Promissory Notes 76,709,755 54,373,227
Others 75,302 61,946
110,091,757 91,158,063 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
9-6- Granted Facilities & Dues from Non-Governmental Entities Turnover
Customers’ Other IRR Debtors for Lease to Civil F/X Granted Debtors for Debt for Credit Sales Jealeh Mozarebeh Granted Paid Credit Total Own Partnership Facilities Paid L/Gs Settled Facilities Cards Facilities IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million Principal Balance as at 20 March 2015 296,124 1,054,013 33,011 91,065 80,191,663 53,530 2,230,381 64,757 1,280,466 3,464 85,298,474 Granted during the year 626,020 5,899,010 3,764 2,380 39,263,672 2,734,431 933,645 72,193 2,651,671 1,110 52,187,896 Collected during the year (509,786) (6,688,730) (13,233) (33,129) (19,827,165) (2,739,265) (3,153,345) (116,629) (3,846,249) (1,181) (36,928,712) Balance as at 20 March 2016 412,358 264,293 23,542 60,316 99,628,170 48,696 10,681 20,321 85,888 3,393 100,557,658
Interest Balance as at 20 March 2015 26,852 33,127 7,433 6,778 4,065,851 292 36,849 0 0 0 4,177,182 Granted during the year 194,821 417,163 2,855 32,815 9,885,081 4,116 72,184 0 0 0 10,609,035 Collected during the year (178,419) (351,004) (775) (9,382) (9,765,185) (353) (105,488) 0 0 0 (10,410,606) Balance as at 20 March 2016 43,254 99,286 9,513 30,211 4,185,747 4,055 3,545 0 0 0 4,375,611
Doubtful Debts Provision Balance as at 20 March 2015 (109,832) (147,366) (28,050) (51,192) (2,432,483) (6,554) (15,752) (2,222) 0 0 (2,793,451) Increase (decrease) during 11,629 7,104 (4,588) (6,907) (329,398) (15,257) 15,752 (9,819) (331,484) the year Bad Debt 0 0 0 0 0 0 0 0 0 0 0 Balance as at 20 March 2016 (98,203) (140,262) (32,638) (58,099) (2,761,881) (21,811) 0 (12,041) 0 0 (3,124,935)
Net Granted Facilities Balance as at 20 March 2015 213,144 939,774 12,394 46,651 81,825,031 47,268 2,251,478 62,535 1,280,466 3,464 86,682,205 Balance as at 20 March 2016 357,409 223,317 417 32,428 101,052,036 30,940 14,226 8,280 85,888 3,393 101,808,334
Interest include interest plus late payment penalty Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
9-6-1- Granted Facilities & Dues from Non-Governmental Entities Interest Turnover
Other IRR Civil F/X Granted Credit Sales Jealeh Lease to Own Mozarebeh Granted Partnership Facilities Total Facilities Granted Facilities Interest Receivable Balance as at 20 March 2015 17,186 23,593 5,071 4,417 2,644,190 258 31,621 2,726,336 Increased during the year 20,591 10,900 1,270 6,965 8,762,493 672 6,092 8,808,983 Collected during the year (30,723) (21,649) (6,326) (11,382) (8,308,570) (908) (37,497) (8,417,055) Balance as at 20 March 2016 7,054 12,844 15 0 3,098,113 22 216 3,118,264
Granted Facilities Late Payment Penalty Receivable Balance as at 20 March 2015 9,666 9,534 2,362 2,361 1,421,661 34 5,228 1,450,846 Increased during the year 41,184 83,807 9,322 31,755 1,811,671 4,056 3,434 1,985,229 Collected during the year (14,650) (6,899) (2,186) (3,905) (2,145,698) (57) (5,333) (2,178,728) Balance as at 20 March 2016 36,200 86,442 9,498 30,211 1,087,634 4,033 3,329 1,257,347
Granted Facilities Interest Balance as at 20 March 2015 26,852 33,127 7,433 6,778 4,065,851 292 36,849 4,177,182 Balance as at 20 March 2016 43,254 99,286 9,513 30,211 4,185,747 4,055 3,545 4,375,611
9-7- Granted Facilities & Dues from Non-Governmental Persons segregated by Customer Type
2014-15 2015-16
Doubtful Debts Doubtful Debts Gross Amount Net Amount Gross Amount Net Amount Provision Provision
IRR million IRR million IRR million IRR million IRR million IRR million
Natural Persons 43,184,761 (1,283,145) 41,901,616 37,623,345 (1,263,683) 36,359,662
Legal Persons 61,748,508 (1,841,790) 59,906,718 51,852,311 (1,529,768) 50,322,543
104,933,269 (3,124,935) 101,808,334 89,475,656 (2,793,451) 86,682,205 Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
9-8- Granted Facilities to Subsidiaries & Affiliated Companies are as follows:
2015/16 2014/15 Doubtful Interest Current Non-Current Debts Total Total Rate Provision Percent IRR million IRR million IRR million IRR million IRR million Bonyad Mostazafan 8 14,226 0 0 14,226 2,267,230 Enghelab Eslami Vanak Park Co. 26 0 13,376 (233) 13,143 22,743 Behnoosh Iran Co. 26 280,044 30,087 (4,236) 305,895 0 Gilan Sabz Cement Co. 27 237,547 165,784 (3,739) 399,592 187,214 Tochal Cable Car Co. 24 44,996 15,815 (687) 60,124 0 Sina Financial & 28 425,574 0 (6,401) 419,173 837,521 Investment Parent Co. Ghand Shirvan Co. 22 20,000 2,218 (301) 21,917 0 Iran Tire Co. 27 138,000 82,834 (3,144) 217,690 153,894 Neopan Khalkhal Co. 24 6,000 710 (92) 6,618 0 Protein Gostar Sina Co. 27 50,000 6,157 (752) 55,405 0 Sina Port & Marine Services Development 27 301,453 115,746 (4,544) 412,655 99,833 Co. Behran Oil Co. 27.5 863,439 88,551 (13,129) 938,861 628,293 Bonyad Railway Co. 27.5 68,416 12,832 (1,040) 80,208 157,271 Saba Southwest Power 27.5 1,350,304 1,074,658 (32,559) 2,392,403 2,460,431 Generation Co. Tehran-North Freeway 26.5 4,830,224 34,936 (72,977) 4,792,183 5,212,677 Co. Pak Bi Co. 24 7,718 792 (116) 8,394 0 Behgozin Stockbroker 27 60,000 1,085 (915) 60,170 0 Co. Zamzam Tehran Co. 26 50,000 6,157 (752) 55,405 0 Zamzam Azarbaijan Co. 27 11,765 1,416 (183) 12,998 0 Pak Pasteurized Dairy 28 246,053 26,086 (3,748) 268,391 212,704 Co. Zamzam East Tehran 24 93,511 10,718 (1,439) 102,790 0 Co. Ati Saz Co. 24 0 43,081 (842) 42,239 70,172 Khavar Housing Co. 28 38,590 1,664 (592) 39,662 41,284 South Kish Kaveh Steel 24.5 3,482,486 1,050,868 (62,541) 4,470,813 1,778,232 Co. Zakhireh va Taamin Co. (Sina Comprehensive 24 45,787 5,186 (690) 50,283 58,201 Leasing) Ghiyam Isfahan Co. 26 5,000 616 (76) 5,540 0 Other Companies - 3,410,594 8,450 (51,862) 3,367,182 2,089,315 16,081,727 2,799,823 (267,590) 18,613,960 16,277,015
The above balances have been disclosed in compliance with CBI’s letter no. 94/387918 dated 15 March 2016 without taking late payment penalty into account. Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
10- Investment in Shares & Other Securities
Group Bank
2015-16 2014-15 2015-16 2014-15 Long- Long- Long- Long- Current Total Current Total Current Total Current Total term term term term IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR Million Million Million Million Million Million Million Million Million Million Million Million Current Investment in 10-1 3,267,850 0 2,267,850 1,922,705 0 1,922,705 3,179,393 0 3,179,393 1,783,979 0 1,783,979 Short-term Shares in Market Investment in 10-2 0 6,907,151 6,907,151 0 5,132,886 5,132,886 0 7,469,551 7,469,551 0 5,565,386 5,565,386 Other Shares Investment in 10-3 0 309,479 309,479 0 179,970 179,970 0 296,058 296,058 0 179,970 179,970 Other Securities 3,267,850 7,296,630 10,484,480 1,922,705 5,312,856 7,235,561 3,179,393 7,765,609 10,945,002 1,783,979 5,745,356 7,539,335
10-1- Investment in Short-term Shares in Market Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
10-1-1- Current Investment in Short-term Shares in Market is as follows:
Group Bank 2015-16 2014-15 2015-16 2014-15 Number of Investment Net Sales Net Sales Number of Investment Net Sales Net Sales Cost Cost Cost Cost Shares Percent Value Value Shares Percent Value Value % IRR Million IRR Million IRR Million IRR Million % IRR Million IRR Million IRR Million IRR Million Shares of Listed Companies Sina Port & Marine 16,891,888 10 719,274 558,036 0 0 16,891,888 10 719,274 558,026 0 0 Services Development Ertebatat Sayyar 4,433,792 0.11 141,263 169,160 504,773 488,541 4,433,792 0.11 141,263 169,160 504,773 488,541 (Hamrah Avval) Parsian Insurance 161,683,133 8.08 197,493 440,587 192,232 319,956 161,683,133 8.08 197,493 440,587 191,492 319,140 Persian Gulf 13,848,418 0.03 110,479 76,900 110,479 72,206 13,848,418 0.03 110,479 76,900 110,479 72,206 Petrochemicals Tehran Cement 18,592,337 1.06 93,521 42,428 103,747 54,018 18,592,337 1.06 93,521 42,428 103,747 54,018 Pasargad Bank 45,612,068 0.09 80,884 58,930 74,333 66,571 44,652,068 0.09 79,354 57,690 69,540 60,641 Iran Khodro 71,861,634 0.47 272,304 333,725 79,506 82,471 71,861,634 0.47 272,304 333,725 68,627 70,606 National Development 5,379,222 0.12 10,114 7,789 67,184 79,273 5,379,222 0.12 10,114 7,789 6,743 6,659 Investment Melli Mes 12,039,617 0.02 40,700 22,728 79,462 50,142 9,190,004 0.02 27,389 16,018 66,151 41,573 Behran Oil 5,141,546 0.20 64,445 53,950 73,708 73,176 4,087,802 0.20 52,079 42,893 62,514 60,966 Mellat Bank 31,528,166 0.08 72,632 73,713 52,914 52,985 31,528,166 0.08 72,632 73,713 45,427 44,967 Alborz Darou 6,321,808 1.40 44,997 94,966 42,889 52,648 6,321,808 1.40 44,997 94,966 42,889 52,648 Shazand 3,339,994 0.07 23,810 12,288 37,352 22,791 3,339,994 0.07 23,810 12,288 31,999 17,405 Petrochemicals Kish Credit Card 12,787,451 0.98 43,646 42,390 32,979 16,607 12,787,451 0.98 43,646 42,390 26,504 12,719 Mines and Metals Development 13,457,589 0.06 35,771 19,137 26,276 17,339 13,457,589 0.06 35,771 19,137 26,276 17,339 Investment Shiraz Petrochemicals 5,162,988 0.10 25,358 15,533 25,358 17,046 5,162,988 0.10 25,358 15,533 25,358 17,046 Iran Khodro Investment 7,458,114 0.50 30,699 40,162 25,280 16,080 7,458,114 0.50 30,699 40,162 25,280 16,080 Development Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Group Bank 2015-16 2014-15 2015-16 2014-15 Number of Investment Net Sales Net Sales Number of Investment Net Sales Net Sales Cost Cost Cost Cost Shares Percent Value Value Shares Percent Value Value % IRR Million IRR Million IRR Million IRR Million % IRR Million IRR Million IRR Million IRR Million MAPNA 4,935,991 0.05 48,309 47,010 23,373 21,618 4,935,991 0.05 48,309 47,010 19,781 17,240 Ghadir Investment 9,257,764 0.02 27,356 21,515 18,862 12,632 9,257,764 0.02 27,356 21,515 18,862 12,633 Alborz Investment 65,774,461 2.53 313,904 322,426 0 0 65,774,461 2.53 313,904 322,426 0 0 Iran Alloy Steel 6,627,865 0.16 21,975 9,736 18,489 6,719 6,627,865 0.16 21,975 9,736 18,489 6,719 Iran Tractor Sazi 20,831,199 1.16 49,483 42,267 17,725 15,624 20,831,199 1.16 49,483 42,267 17,725 15,624 Magsal Agriculture & 1,576,492 5.25 26,972 46,024 5,958 35,588 1,576,492 5.25 26,972 46,024 5,958 35,588 Animal Husbandry Other Companies 634,298 668,085 386,035 250,808 573,048 565,359 310,892 255,958 3,129,687 3,219,485 1,998,914 1,824,839 3,041,230 3,097,752 1,799,506 1,696,315 Shares of Companies listed as Over-the- Counter Iranian Petrochemical 26,335,374 0.13 47,299 44,112 38,011 32,739 26,335,374 0.13 47,299 44,112 38,011 32,739 Jam Petrochemical 7,582,620 0.08 79,100 70,526 48,904 42,345 7,582,620 0.08 79,100 70,526 36,561 30,210 Zagros Petrochemical 0 0.00 0 0 16,993 7,307 0 0.00 0 0 16,993 7,307 Bank Dey 5,560,000 0.09 9,389 9,702 3,994 3,780 5,560,000 0.09 9,389 9,702 3,994 3,780 Shahed Construction & 1,166,666 0.09 2,375 3,145 3,676 2,239 1,166,666 0.09 2,375 3,145 3,676 2,239 Development Pasargad Oil 0 0.00 0 0 3,672 2,174 0 0.00 0 0 3,672 2,174 Asia Golden Mine 0 0.00 0 0 1,944 1,462 0 0.00 0 0 1,944 1,462 138,163 127,485 117,194 92,046 138,163 127,485 104,851 79,911 Total 3,267,850 3,346,970 2,116,108 1,916,885 3,179,393 3,225,237 1,904,257 1,776,226 Plus (less) Cost Adjustment 0 0 (193,403) 0 0 0 (120,378) 0 3,267,850 3,346,970 1,922,705 1,916,885 3,179,393 3,225,237 1,783,979 1,776,226 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
10-2- Long-term Investment in Other Stocks
Group Bank
2015-16 2014-15 2015-16 2014-15 Number of Percentage of Number of Percentage of Cost Cost Cost Cost Shares Investment Shares Investment % IRR Million IRR Million % IRR Million IRR Million
Tosee Etemad Mobin Co. 1,100,000,000 10 6,228,412 4,917,867 500,000,000 10 6,228,412 4,917,867 Tosee Sina Co. (Private Joint Stock) – 426,000,000 100 0 0 426,000,000 100 400,000 400,000 Subsidiary Sarrafi Sina Co. (Private Joint Stock) – 50,000,000 100 0 0 50,000,000 100 50,000 50,000 Subsidiary Sina Gharz-al-hassanah Fund (not 50,000,000 100 0 50,000 50,000,000 100 0 50,000 established)- Subsidiary Fan Ava Card- Over-the-Counter 60,000,000 20 143,746 143,746 7,856,000 20 143,746 143,746 Sina Bank Market making-specific Investment Fund (Private Joint Stock) 100 0 0 100 129,900 0 – Subsidiary Padash Sarmayeh Sabet Investment 99 500,000 0 99 500,000 0 Fund Tochal Cable Car 13,720 0 13,720 0 Qom Electricity Generation Management 4,000 880 880 4,000 880 880 Co. Card Payment Electronic Network Co. 4,482,500 2,893 2,893 4,482,500 2,893 2,893 (Shaparak) Qeshm Steel Development Co. 50,000,000 10 17,500 17,500 4,482,500 0 0
6,907,151 5,132,886 7,469,551 5,565,386 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 10-2-1- Investment in Tosee Etemad Mobin Co. (owner of 50%+1% of Iran Telecommunication Co. shares) is due to purchase of 10% of the company’s shares.
2015-16 2014-15
IRR Million IRR Million
Investment in Tosee Etemad Mobin Co. 9,414,274 9,414,274
Debt for Investment in Tosee Etemad Mobin Co. (3,185,862) (4,496,407)
Net Investment in Etemad Mobin Co. 6,228,412 4,917,867
10-2-2- The Bank has invested in 100% of Tosee Sina Co.’s shares. The company has been established in 27 Oct 2007 to manage owned properties and investment in real estates, trading the shares of listed companies, using banks’ financial credit facilities and performing all operations which are authorized based on articles of association.
10-2-3- The Bank has invested in 100% of Tosee Sina Co.’s shares for the amount IRR 50,000 million. The company has started working from 19 Nov 2012 according to CBI’s permission no. 217876 dated 7 Nov 2012.
10-2-4- The Bank has purchased 20% of Fan Ava Card Co.’s shares presented as over-the- counter in 16 Sep 2013 at base rate.
10-2-5- The Bank has purchased 8% of Qom Power Generation Management Co.’s shares (recruiting human resources for Qom Compound Cycle Power Plant) under Bonyad Companies Group according to contract no. 90/2/2235 dated 13 June 2011 from Privatization Organization.
10-2-6- Investment in Qeshm Steel Development Co. include 35% amount paid from 10% of initial investment in newly established company by Tosee Sina subsidiary. Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
10-3- Investment in Other Securities is as follows:
Group Bank Maturity Interest Maturity Isusers Type Interest Rate 2015-16 2014-15 Type 2015-16 2014-15 Date Rate Date % IRR Million IRR Million % IRR Million IRR Million
Public Companies Ministry of Economies- Participatory 20 28.10.2017 169,970 169,970 Participatory 20 28.10.2017 169,970 169,970 Government’s Housing Projects Ministry of Roads and Urbanization- Building & Transportation Participatory 25.5 13.03.2018 0 10,000 Participatory 25.5 13.03.2018 0 10,000 Development Islamic Treasury Bond Treasury 25 11.11.2016 126,088 0 Treasury 25 11.11.2016 126,088 0
Sina Leasing Participatory 20 16.06.2016 8,216 0 0 0
Shiraz Municipality Participatory 21 23.01.2019 5,205 0 0 0
309,479 179,970 296,058 179,970 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 11- Dues from Subsidiaries & Affiliated Companies
Group Bank 2015-16 2014-15 2015-16 2014-15
Balance Balance Balance Balance
IRR Million IRR Million IRR Million IRR Million
Dues from Subsidiaries
Tosee Sina Co. 11-1 0 0 732,469 567,391
Sarrafi Sina Co. 11-2 0 0 105,061 30,002
Padash Sarmayeh Sabet Investment Fund 11-3 0 0 21,079 0
0 0 858,609 597,393
Dues from Affiliated Companies
Mostazafan Foundation 11-4 1,099 1,375,311 1,099 1,375,311
Bahran Oil Co. 11-5 1,832,529 2,199,034 1,832,529 2,199,034
Qom Power Generation Management Co. 600 840 600 840
Beh Gozin Stock Brokerage Co. 11-6 106,019 0 106,019 0
Sakhteman National Co. 360 612 360 612
1,940,607 3,575,797 1,940,607 3,575,797
1,940,607 3,575,797 2,799,216 4,173,190 Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 11-1- Dues from Tosee Sina Co. are mostly related to the company’s profit of 2013/14, 2014/15 and 2015/16 and shares purchase for IRR million 131,000 and 150,000 and 110,000 and 318,469 respectively. The company is increasing his capital for IRR million 541,000.
11-2- Dues from Tosee Sina Co. are related to the company’s profit of 2014/15 and 2015/16 and other in-between accounts for IRR million 47,918 and 105,000 and 9, out of which IRR million 22,866 has been collected up to this date.
11-3- Dues from Padash Sarmayeh Sabet Investment Fund are related to EPS of 2015/16 period.
11-4- Dues from Bonyad Mostazafan for IRR million 1,099 are related to in-between account balances and decrease during fiscal period is related to collection from acquiring Sina Port & Marine Services Development Co.’s shares.
11-5- Dues from Behran Oil Co. is for 86 units in Eram project sold till 20 March 2016 which will be collected through 6 installments in 3 years, of which one installment collected by far.
11-6- Dues from Beh Gozin Stock Brokerage Co. for IRR million 106,019 are related to balance of trading listed companies’ shares for bank.
11-7- Dues from subsidiaries and affiliated companies based on in-between transactions are as follows:
Group
2015-16 2014-15 Subsidiaries & Purchase of Services Received Affiliated Paid On Dividend Balance Assets & Sale On Total Companies Account Receivable Investments (Purchase) Account IRR IRR IRR IRR IRR IRR IRR Million Million Million Million Million Million Million Bonyad Mostazafan 1,375,311 (1,375,000) 788 0 0 0 1,099 Enghelab Eslami
Behran Oil Co. 2,199,034 0 0 (366,505) 0 0 1,832,529
Qom Power Generation 840 0 0 (240) 0 0 600 Management Co. Beh Gozin Stock 0 0 106,019 0 0 0 106,019 Brokerage Co. Sakhteman 612 0 0 (252) 0 0 360 National Co.
3,575,797 (1,375,000) 106,807 (366,997) 0 0 1,940,607 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Bank
2015-16 2014-15 Subsidiaries & Purchase of Services Received Affiliated Paid On Dividend Balance Assets & Sale On Total Companies Account Receivable Investments (Purchase) Account IRR IRR IRR IRR IRR IRR IRR Million Million Million Million Million Million Million
Tosee Sina Co. 567,391 55,352 (20,274) (30,000) 50,000 110,000 732,469
Sarrafi Sina Co. 30,002 0 59 (30,000) 0 105,000 105,061
Padash Sarmayeh Sabet 0 0 0 0 0 21,079 21,079 Investment Fund Bonyad Mostazafan 1,375,311 (1,375,000) 788 0 0 0 1,099 Enghelab Eslami
Behran Oil Co. 2,199,034 0 0 (366,505) 0 0 1,832,529
Qom Power Generation 840 0 0 (240) 0 0 600 Management Co. Beh Gozin Stock 0 0 106,019 0 0 0 106,019 Brokerage Co. Sakhteman 612 0 0 (252) 0 0 360 National Co.
4,173,190 (1,319,648) 86,592 (426,997) 50,000 236,079 2,799,216
Group
2013-14 2014-15 Subsidiaries & Purchase of Services Received Affiliated Paid On Dividend Balance Assets & Sale On Total Companies Account Receivable Investments (Purchase) Account IRR IRR IRR IRR IRR IRR IRR Million Million Million Million Million Million Million Bonyad Mostazafan (1,452) 1,375,000 1,763 0 0 0 1,375,311 Enghelab Eslami
Behran Oil Co. 2,244,503 0 0 (45,469) 0 0 2,199,034
Saba Power & 18,640 0 0 (18,640) 0 0 0 Energy Co. Qom Power Generation 0 0 0 0 0 840 840 Management Co. Beh Gozin Stock 0 0 1,753,098 (1,753,098) 0 0 0 Brokerage Co. Sakhteman 0 0 612 0 0 0 612 National Co.
2,261,691 1,375,000 1,755,473 (1,817,207) 0 840 3,575,797 Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Bank
2013-14 2014-15 Subsidiaries & Purchase of Services Received Affiliated Paid On Dividend Balance Assets & Sale On Total Companies Account Receivable Investments (Purchase) Account IRR IRR IRR IRR IRR IRR IRR Million Million Million Million Million Million Million
Tosee Sina Co. 513,545 38,392 (4,546) (130,000) 0 150,000 567,391
Sarrafi Sina Co. 2,102 0 (2,100) (156,000) 156,000 30,000 30,002
Bonyad Mostazafan (1,452) 1,375,000 1,763 0 0 0 1,375,311 Enghelab Eslami
Behran Oil Co. 2,244,503 0 0 (45,469) 0 0 2,199,034
Saba Power & 18,640 0 0 (18,640) 0 0 0 Energy Co. Qom Power Generation 0 0 0 0 0 840 840 Management Co. Beh Gozin Stock 0 0 1,753,098 (1,753,098) 0 0 0 Brokerage Co. Sakhteman 0 0 612 0 0 0 612 National Co.
2,777,338 1,413,392 1,748,827 (2,103,207) 156,000 180,840 4,173,190 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
12- Other Accounts Receivable
Group Bank
2015-16 2014-15 2015-16 2014-15 Doubtful Doubtful Due Balance Debts Net Net Due Balance Debts Net Net Provision Provision IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million
Dividend Receivable 12-1 171,241 0 171,241 94,863 171,241 0 171,241 86,268
Documents Receivable 12-2 187,654 0 187,654 109,719 15,977 0 15,977 0 Dues from Customer for 158,235 0 158,235 140,919 119,229 0 119,229 140,919 Eram & Mahestan Projects Advances 12-3 111,134 0 111,134 111,372 90,197 0 90,197 91,784
Dues from Staff 12-4 102,789 0 102,789 98,212 102,339 0 102,339 97,838 Due from Persons & Other 12-5 61,933 0 61,933 94,950 22,614 0 22,614 19,427 Companies Interim Debtors 12-6 120,469 (20,980) 99,489 68,749 120,469 (20,980) 99,489 68,749
Others 12-7 119,464 0 119,464 28,552 24,426 0 24,426 11,286
1,032,919 (20,980) 1,011,939 747,336 666,492 (20,980) 645,512 516,271
Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 12-1- Balance of Dividend Receivable except for Profit of Subsidiaries & Affiliated Companies:
Group Bank 2015/16 2014/15 2015/16 2014/15 IRR Million IRR Million IRR Million IRR Million Listed & Over-the-counter Companies Sina Port & Marine Services 67,200 0 67,200 0 Development Co. Fan Ava Card 26,220 0 26,220 0 Tehran Cement 21,649 16,088 21,649 16,088 Parsian Insurance 15,933 20,280 15,933 20,237 Magsal Agriculture & Animal 4,702 1,800 4,702 1,800 Husbandry Tosee Melli Investment Co. 3,240 4,124 3,240 4,124 Alborz Darou 1,581 4,500 1,581 4,500 Persian Gulf Petrochemicals 3,433 6,866 3,433 6,866 Ghadir Investment 3,703 4,410 3,703 4,410 Others 23,580 36,795 23,580 28,243 171,241 94,863 171,241 86,268
12-2- Documents receivable from customers are mostly for upfront sale of Sinaye Azadi and Tabriz Official Commercial Complex and Shahrzad Residential Complex.
12-3- Advances include the following:
Group Bank 2015/16 2014/15 2015/16 2014/15 IRR Million IRR Million IRR Million IRR Million Advertisements 55,433 57,013 55,433 57,013 Fan Ava Card Co.- Hiring 17,014 22,540 17,014 22,540 Card Reader Print & Office Supplies 5,692 1,254 5,692 1,254 Advances Counseling Fees 1,396 3,943 1,396 3,943 Network Equipments 1,667 3,431 1,667 3,431 Asanbar Karan Arshian Co. 12,612 0 0 0 Other Advances 17,320 23,191 8,995 3,603 111,134 111,372 90,197 91,784 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 12-4- Dues from staff mostly include IRR 11,680 million for current portion and IRR 90,659 million for long-term portion.
12-5- Dues from other companies mostly include IRR 20,012 million from Mr. Khosro Azadpour for Vaeen estate in Shahriar and IRR 17,864 million for upfront sale contract of Rasht & Tabriz projects and IRR 12,562 million for F/X transactions from Tahmasebi & Partners General Participatory and IRR 8,578 million for share from sale of Jam-e-jam Maragheh Atisaaz project and IRR 147 million from Iran Insurance Co.
12-6- Sundry debtors balance is as follows:
2015/16 2014/15 Items related to Facilities IRR Million IRR Million
Dues for Owned Estates 75,740 45,964
Deceased Customers Loan Balance 1,265 380
77,005 46,344
Items unrelated to Facilities
Debtors for Assets Purchase (Through Bidding) 2,190 2,183
Debtors for Grafts 20,294 20,222
22,484 22,405
99,489 68,749
12-6-1- Financial abuse for IRR 36,620 million (net IRR 20,222 million) include unauthorized withdrawal and abuse mostly related to Behbahan, Zahedan Central, Marand, Ahmadabad Abadan, Modarres Kermanshah and Taleqani Boulevard Sari branches. Legal actions to retrieve through legal authorities are in process.
12-7- Other items mostly include IRR 9,619 million for participation bond profit receivable and IRR 2,223 million due to municipality for Kalej branch estate change and IRR 1,780 million Tehran University debt for North Kargar estate and IRR 1,408 million for on-account payment to Samen Etebar Asr Co. for Isfahan site and the rest is dues of sundry debtors of branches, central office and other companies. Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
13- Tangible Fixed Assets
Group Rented Assets Orders & Capital Land Building Equipment Machineries Vehicle s Furniture Estates Under Capital Items at Total Renovation Completion Prepayments Warehouse IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million Cost Balance as at 20 March 2014 816,776 613,577 27,797 1,466 12,447 652,284 53,321 62,628 261,955 14,271 2,516,522 Increased during Fiscal Year 8,340 15,496 2,802 107 1,590 85,931 11,655 37,695 170,816 20,417 354,849 Sold (632) (634) 0 0 (127) (26,086) 0 0 0 0 (27,479) Transfers & Other Changes (32,207) 18,984 0 0 196 37,314 0 (23,201) (23,847) (24,342) (47,103) Balance as at 19 March 2015 792,277 647,423 30,599 1,573 14,106 749,443 64,976 77,122 408,924 10,346 2,796,789 Increased during Fiscal Year 4,334 44,051 648 832 1,972 28,981 124 0 14,964 20,061 115,967 Sold (3,427) (813) 0 0 (1,398) (5,825) 0 0 0 0 (11,463) Transfers & Other Changes 8,421 52,997 0 29 0 24,119 (1) (74,270) (355,001) (17,672) (361,378) Balance as at 19 March 2016 801,605 743,658 31,247 2,434 14,680 796,718 65,099 2,852 68,887 12,735 2,539,915
Accumulated Depreciation Balance as at 20 March 2014 0 67,209 9,873 412 6,412 276,857 39,645 400,408 The Year’s Depreciation 0 37,394 2,342 235 1,783 71,302 9,286 122,342 Sold 0 0 (103) 0 (121) (16,996) 0 (17,220) Balance as at 19 March 2015 0 104,603 12,112 647 8,074 331,163 48,931 505,530 The Year’s Depreciation 0 40,527 2,401 295 1,774 82,623 8,484 136,104 Sold 0 (248) 0 0 (935) (4,446) 0 (5,629) Transfers & Other Changes 0 0 0 0 (252) (13) 0 (265) Balance as at 19 March 2016 0 144,882 14,513 942 8,661 409,327 57,415 0 0 0 635,740
Book Value At 20 March 2014 816,776 546,368 17,924 1,054 6,035 375,427 13,676 62,628 261,955 14,271 2,116,114 At 19 March 2015 792,277 542,820 18,487 926 6,032 418,280 16,045 77,122 408,924 10,346 2,291,259 At 19 March 2016 801,605 598,776 16,734 1,492 6,019 387,391 7,684 2,852 68,887 12,735 1,904,175 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Bank Rented Assets Orders & Capital Land Building Equipment Vehicle s Furniture Estates Under Capital Items at Total Renovation Completion Prepayments Warehouse IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million Cost Balance as at 20 March 2014 770,164 611,703 27,797 10,572 649,024 57,487 64,435 258,845 14,271 2,464,298 Increased during Fiscal Year 8,340 15,170 2,802 660 85,534 8,850 34,843 173,668 20,417 350,284 Sold (632) (634) 0 (127) (26,086) 0 0 0 0 (27,479) Transfers & Other Changes (32,207) 17,939 0 0 37,306 0 (22,156) (23,597) (24,334) (47,049) Balance as at 19 March 2015 745,665 644,178 30,599 11,105 745,778 66,337 77,122 408,916 10,354 2,740,054 Increased during Fiscal Year 4,334 44,051 648 1,766 28,849 124 0 14,964 20,061 114,797 Sold (3,427) (813) 0 (1,071) (5,825) 0 0 0 0 (11,136) Transfers & Other Changes 8,421 52,997 0 0 23,882 (1) (77,122) (353,303) (17,672) (362,798) Balance as at 19 March 2016 754,993 740,413 31,247 11,800 792,684 66,460 0 70,577 12,743 2,480,917
Accumulated Depreciation Balance as at 20 March 2014 0 67,005 9,873 5,410 276,103 39,645 398,036 The Year’s Depreciation 0 37,225 2,342 1,382 70,973 9,286 121,208 Sold 0 (103) 0 (121) (16,989) 0 (17,213) Transfers & Other Changes 0 0 0 0 0 0 0 Balance as at 19 March 2015 0 104,127 12,215 6,671 330,087 48,931 502,031 The Year’s Depreciation 0 40,326 2,401 1,423 82,264 8,484 134,898 Sold 0 (248) 0 (935) (4,446) 0 (5,629) Balance as at 19 March 2016 0 144,205 14,616 7,159 407,905 57,415 0 0 0 631,300
Book Value At 20 March 2014 770,164 544,698 17,924 5,162 372,921 17,842 64,435 258,845 14,271 2,066,262 At 19 March 2015 745,665 540,051 18,384 4,434 415,691 17,406 77,122 408,916 10,354 2,238,023 At 19 March 2016 754,993 596,208 16,631 4,641 384,779 9,045 0 70,577 12,743 1,849,617 Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 13-1- Bank’s fixed tangible assets are insured against potential hazards from fire, flood and earthquake up to IRR 1,169 billion.
13-2- Additions and land transfers include purchasing Imam Khomeini branch estate in Gonbad, Azadegan branch estate in Orumiyeh, Darvazeh Tehran branch in Tabriz and Sarv sq. branch.
13-3- During-period additions of building include purchasing Khouzestan Supervision and East Tehran estates, Kouhsangi branch in Mashad, Shahriyar branch in Tabriz, Imam Khomeini branch in Gonbad, Shahrdari,branch in Boroujerd, Darvazeh Tehran branch in Tabriz, Sarv sq. branch, Shams Abad branch in Isfahan, Azadegan branch in Oroumiyeh, Old Bazaar branch in Langaroud, Africa Boulevard estate.
13-4- Vehicles additions include purchasing 5 Peugeot Pars for Central Office.
13-5- Official furniture additions mostly include purchasing 51 money counter machine, 8 ATMs, 167 computer sets, 6 sets of emergency power, 50 sets of monitors, 149 CCTV, official tools and etc and furniture deduction includes worn-out properties and furniture.
13-6- Orders & Capital Prepayments are as follows:
Balance at Balance at the Additions Adjustments Transfers the End of Beginning Note Year of Year IRR Million IRR Million IRR Million IRR Million IRR Million Land & Building & 13-6-1 364,367 577 (282,196) (40,830) 41,918 Goodwill Branch Establishment & 13-6-2 34,115 5,252 (6,217) (15,014) 18,136 Renovation Official Equipment 13-6-3 10,434 6,565 (3,824) (5,222) 7,953 & Furniture Vehicles 13-6-4 0 2,570 0 0 2,570
408,916 14,964 (292,237) (61,066) 70,577
13-6-1- Prepayment for Land, Building and Goodwill is as follows:
2015-16 2014-15
IRR Million IRR Million
Eram Project 41,714 41,742
Other (Branches) 204 322,625
41,918 364,367 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 13-6-2- Prepayment for Branch Establishment & Renovation is as follows:
2015-16 2014-15
IRR Million IRR Million
Maragheh Branch 12,406 12,055
Kazeroon Branch 2,200 0
Imam Street Branch in Ardebil 1,891 3,045
Others (Branches) 1,639 19,015
18,136 34,115
13-6-3- Prepayment for Official Equipment & Furniture is as follows:
2015-16 2014-15
IRR Million IRR Million
Khadamat Informatic Co. – Purchasing ATMs 1,314 3,129
Baztab Alborz Co. – Purchasing Batteries 950 0
Radandish Co. – Purchasing Servers 826 0
Pishro Information Systems Co. – Purchasing DAE 745 0
Sadeghi Trade Co. – Purchasing Monitoring System 719 0
Light Bird Parse Co. – Purchasing Computers 594 0
Mabna Card Aria Co. – Purchasing Sorter 589 0
Tamni Gostaresh Naji Co. – Purchasing PC 369 0
Ghasr Viona Co. – Purchasing 2 VTM cabins 360 0
Others 1,487 7,305
7,953 10,434
13-6-4- Prepayment for Vehicles is as follows:
2015-16 2014-15
IRR Million IRR Million
Auto Naab- Purchasing 3 Autos 2,550 0
Others 20 0
2,570 0 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
14- Intangible Assets
Group Bank Business Royalty of Business Royalty of Place Software Using General Total Place Software Using General Total Goodwill Services Goodwill Services IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million Cost Balance as at 20 March 2014 2,302,798 101,217 9,371 2,413,386 2,302,798 100,605 9,361 2,412,764 Increased during Fiscal Year 63,588 16,427 595 80,610 63,588 16,427 595 80,610 Sold (760) 0 (55) (815) (760) 0 (55) (815) Transfers & Other Changes 35,926 1,436 202 37,564 35,926 1,436 204 37,566 Balance as at 19 March 2015 2,401,552 119,080 10,113 2,530,745 2,401,552 118,468 10,105 2,530,125 Balance as at 20 March 2015 2,401,552 119,080 10,113 2,530,745 2,401,552 118,468 10,105 2,530,125 Increased during Fiscal Year 24,706 12,612 2,373 39,691 24,706 12,476 2,373 39,555 Sold (13,078) 0 0 (13,078) (13,078) 0 0 (13,078) Transfers & Other Changes 220,795 1,040 414 222,249 220,795 1,145 414 222,354 Balance as at 19 March 2016 2,633,975 132,732 12,900 2,779,607 2,633,975 132,089 12,892 2,778,956
Accumulated Depreciation Balance as at 20 March 2014 0 54,432 54,432 0 54,208 54,208 The Year’s Depreciation 0 15,746 15,746 0 15,644 15,644 Balance as at 19 March 2015 0 70,178 0 70,178 0 69,852 0 69,852 Balance as at 20 March 2015 0 70,178 70,178 0 69,852 69,852 The Year’s Depreciation 0 16,782 16,782 0 16,782 16,782 Balance as at 19 March 2016 0 86,960 0 86,960 0 86,634 0 86,634
Book Value At 20 March 2014 2,302,798 46,785 9,371 2,358,954 2,302,798 46,397 9,361 2,358,556 Balance as at 19 March 2015 2,401,552 48,902 10,113 2,460,567 2,401,552 48,616 10,105 2,460,273 Balance as at 19 March 2016 2,633,975 45,772 12,900 2,692,647 2,633,975 45,455 12,892 2,692,322 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 14-1- Goodwill Additions are mostly for Gilan Supervision and Sana’at Sq. branch, Africa Boulevard branch, Jomhouri branch, Bousar Bridge branch in Rasht, Shahriyar branch in Tabriz, Sarv Sq. branch and Darvazeh Tehran branch in Tabriz.
15- Statutory Deposit
2015-16 2014-15
IRR Million IRR Million
Statutory Deposit – Deposits of Main Land Branches 13,812,191 16,009,951
Statutory Deposit – Deposits of Free Zone Branches 16,426 19,954
13,828,617 16,029,905
15-1- Statutory deposit with CBI is calculated in execution of article 14, item 3 of Banking Monetary Act based on rates specified by Money & Credit Council and approved by CBI.
16- Other Assets
Group Bank
2015-16 2014-15 2015-16 2014-15
IRR Million IRR Million IRR Million IRR Million Customers’ Dues 0 19,176 0 19,176 for D/P L/Cs (IRR) Owned Collaterals & Projects in 16-1 4,777,160 4,188,565 4,118,760 3,605,478 Process Deposit for Leased 84,344 43,828 84,344 43,828 Buildings Stamp Duty 2,485 2,297 2,485 2,297
Inventory 16,512 12,631 16,512 12,631 Other (IRANCELL 65 65 65 65 Phone line) 4,880,566 4,266,562 4,222,166 3,683,475
16-1- The above mostly includes land, building and projects in process which have been taken as collaterals against facilities granted to customers. Due to customers’ default, the Bank has repossessed the properties. Meanwhile, the residential and official buildings have been insured up to IRR 4,152 billion. In addition, owned collaterals and projects in process and up for sale are as follows: Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
16-1-1- Owned Collaterals and Projects in Process are as follows:
Group Bank Sale/ Sale/ Owned during Transferred Owned during Transferred Nature 2014-15 2015-16 2014-15 2015-16 the Period during the the Period during the Period Period IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million Movable Furniture 0 1,007 0 1,007 0 1,007 0 1,007 Equipment 0 160 0 160 0 160 0 160 Goods 0 247 0 247 0 247 0 247 Vehicles 0 125 0 125 0 125 0 125 Shares 0 33 0 33 0 33 0 33 Total 0 1,572 0 1,572 0 1,572 0 1,572 Immovable Residential 1,351,704 441,415 (325,751) 1,467,368 1,351,704 441,415 (325,751) 1,467,368 Commercial/Official 222,296 310,920 (51,071) 482,145 222,296 310,920 (51,071) 482,145 Factory 2,285 121 0 2,406 2,285 121 0 2,406 Land 15,522 38,208 (292) 53,438 15,522 38,208 (292) 53,438 Other Immovable Properties 32,684 38 0 32,722 32,684 38 0 32,722 Projects in Process (16-1-2) 2,608,518 170,606 (9,674) 2,769,450 2,025,431 85,619 0 2,111,050 Total 4,233,009 961,308 (386,788) 4,807,529 3,649,922 876,321 (377,114) 4,149,129 Total 4,233,009 962,880 (386,788) 4,809,101 3,649,922 877,893 (377,114) 4,150,701 Funds Received from Persons for (44,444) (31,941) (44,444) (31,941) Owned Properties Net Owned Collaterals and Projects in 4,188,565 4,777,160 3,605,478 4,118,760 Process
16-1-2- Profit (loss) arising from selling owned collaterals is reflected in Profit & Loss Statement and disclosed in note No. 41 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 16-2- Owned and in-process projects are as follows:
Group Bank 2015-16 2014-15 2015-16 2014-15 IRR Million IRR Million IRR Million IRR Million Bam Tehran (Ready for Sale 16-2-1 43,345 41,939 43,345 41,939 100% Complete) Vaeen Shahriar (Ready for Sale 16-2-2 577,738 533,636 578,117 528,780 100% Complete) Tabnak (in Process of Building 16-2-3 824,257 821,015 824,257 821,109 38% Complete) Elham Tabriz (Land- in Process 16-2-4 248,895 248,895 248,895 248,895 of taking Building License) Jam-e-jam Maraghe (in Process 16-2-5 108,127 108,127 108,127 108,127 of Building 80% Complete) Ati Shahr (in Process of Building 16-2-6 58,703 58,703 58,703 58,703 80% Complete) Farmaniyeh Residential Apartment (Ready for Sale 85% 16-2-10 30,558 0 30,558 0 Complete) Sahand Maraghe (Land- in Process of taking Construction 16-2-7 12,168 12,037 12,168 12,037 License) Eram Trade Complex located in phase 5 Shahrake Ghods 16-2-8 30,603 30,353 30,495 30,654 (99/72% Complete) Mahestan Complex (21 Trade Units) (Ready for Sale 100% 16-2-9 176,385 175,187 176,385 175,187 Complete) Shariati Residential Project 125,130 94,818 0 0 (Shahrzad) Sinaye Tabriz, Rasht and Sari 41,915 29,831 0 0 Projects Azadi Street Land (Transferred to 491,626 453,977 0 0 Tosee Sina) 2,769,450 2,608,518 2,111,050 2,025,431
16-2-1- Bam Tehran Complex with 1,478 square meter useful foundation include 11 residential units located in Paknejad street, Saadat Abad Ave, Tehran with 100% physical progress.
16-2-2- Vaeen Shahriar Complex with 25,621 square meter include 167 commercial units and 104 official units located in Vaeen, Shahriar, Tehran with 100% physical progress.
16-2-3- Tabnak Project in a 7,516 square meter land with 27,023 square meter useful foundation located in Moghaddas Ardabili Street, Tehran is being built with cooperation of Bonyad Mostazafan Enghelab Eslami with 38% completion. Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 16-2-4- Elham Tabriz Project in a 9,200 square meter land located in Valiasr street, Tabriz is in the process of taking construction license.
16-2-5- Jam-e-jam Maraghe Project with 13,200 square meter useful foundation is located in Jam-e-Jam Street, Maraghe with 80% physical progress.
16-2-6- Ati Shahr Project with 5,809 square meter useful foundation (22 residential units) is located in Vardavard with 80% physical progress.
16-2-7- Sahand Maraghe Project in a 5,000 square meter land in Madar Sq., Maraghe is in the process of taking construction license.
16-2-8- Eram Trade Complex with 99,72% progress has all 222 units being bank’s share sold up to 19 March 2014 and delivered to buyers up to date of this report. Balance at the end of year is for cost of remainder 0.28%.
16-2-9- Mahestan Trade Complex with 752 square meter useful foundation include 26 commercial unit located in Mahestan Street, Shahrake Ghods, Tehran with100% physical progress.
16-2-10- Farmaniyeh residential complex with 470 square meter useful foundation include 2 residential units located in Sarvan Saeedi Street, Farmaniyeh with 85% physical progress.
17- Dues to Banks & Other Credit Institutions
2015-16 2014-15 IRR Million IRR Million CBI SHAPARAK Commission Payable 33,524 0 Facilities Received (IRR) 0 1,220,292 Interest Payable 0 35,304 33,524 1,255,596 Domestic Banks & Credit Institutions Sight Deposits of Domestic Banks (F/X) 17-1 145 32,698 Sight Deposits of Domestic Banks (IRR) 2 497 Interest Payable to Banks (IRR) 1,406,100 481 Interest Payable to Banks (F/X) 0 4,169 Net Transactions between Banks 0 21,621 1,406,247 59,466 1,439,771 1,315,062
17-1- Sight deposits of F/X domestic banks include EUR 4,286. Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 18- Customers’ Deposits
Group Bank 2015-16 2014-15 2015-16 2014-15 IRR Million IRR Million IRR Million IRR Million Individual Customers Sight Deposits 18-1 4,772,621 3,983,495 4,772,621 4,000,868 Saving Deposits 18-2 233,332 0 233,332 0 Other Deposits & Advances 18-3 557,713 181,215 557,713 181,215 5,563,666 4,164,710 5,563,666 4,182,083 Legal Customers Sight Deposits and the Likes 18-1 3,373,897 1,003,910 3,324,971 1,003,910 Saving Deposits and the Likes 18-2 10,111 0 10,111 0 Other Deposits & Advances 18-3 870,147 1,827,762 870,147 1,827,762 4,254,155 2,831,672 4,205,229 2,831,672 9,817,821 6,996,382 9,768,895 7,013,755
18-1- Sight Deposits
Group Bank 2015-16 2014-15 2015-16 2014-15 IRR Million IRR Million IRR Million IRR Million Current Gharz-al-Hassanah 5,592,472 3,263,265 5,592,478 3,263,469 Deposits (IRR) Current Gharz-al-Hassanah 18-1-1 412,194 206,648 363,262 223,817 Deposits (F/X) All Kinds of Sold Bank Cheques 514,374 379,143 514,374 379,143 Sundry Creditors (IRR) 18-1-2 1,445,258 1,065,198 1,445,258 1,065,198 Sundry Creditors (F/X) 18-1-3 90,721 832 90,721 832 Unused Managed Funds 28,243 15,841 28,243 15,841 Unclaimed Balance (IRR) 63,256 56,478 63,256 56,478 8,146,518 4,987,405 8,097,592 5,004,778
18-1-1- F/X current Gharz-al-Hassaneh deposit includes USD 4,993,243, EUR 1,372,052, GBP 6,954, TRY 7,481,506, CHY 438,332 and AED 11,007,596.
18-1-2- IRR sundry creditors mostly include coupon cards & gift cards.
18-1-3- F/X sundry creditors include USD 4,720, EUR 126 and AED 11,000,000. Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 18-2- Saving Deposits
Bank 2015-16 2014-15 IRR Million IRR Million Saving Gharz-al-Hassaneh deposit – IRR 243,443 0 243,443 0
18-3- Other Deposits & Advances
2015-16 2014-15 IRR Million IRR Million Cash Deposit for Guarantees - IRR 793,110 586,414 Cash Deposit for Guarantees – F/X 18-3-1 6,610 4,260 Advances Received of L/Cs – IRR 23,669 110,334 Advances Received of L/Cs – F/X 18-3-2 44,664 1,122,573 Deposits to Guarantee Loans Commitments 559,807 185,396 Total 1,427,860 2,008,977
18-3-1- Cash Deposit for Guarantees – F/X include EUR 190,616 and GBP 3,293.
18-3-2- Advances Received of L/Cs – F/X include EUR 921,245, KRW 126,738,546, INR 3,225,600 and CHY 1,863,747.
19- Dividends Payable
Dividend Balance at Balance at Ratified Paid EPS 20 March 20 March Dividend during 2015 2016 2015-16 IRR IRR Million IRR Million IRR Million IRR Million Before the Year Ended 20 2,845 (50) 2,795 March 2011 Year Ended 19 March 2012 427 1,380,000 1,212 (61) 1,151 Year Ended 19 March 2013 432 1,650,000 3,521 (333) 3,188 Year Ended 19 March 2014 687 4,122,000 38,188 (30,931) 7,257 Year Ended 19 March 2015 235 2,000,000 0 (1,984,808) 15,192 Total 45,766 (2,016,183) 29,583 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 20- Corporate Tax Provision
Group Bank 2015-16 2014-15 2015-16 2014-15 IRR Million IRR Million IRR Million IRR Million Balance at the Beginning of 971,240 910,218 955,138 905,638 Year Corporate Tax Provision of 176,715 235,561 162,437 219,549 the Year Prior Years Corporate Tax 130,248 163,082 128,859 156,251 Correction Paid during the Year (611,393) (337,621) (594,683) (326,300) 666,810 971,240 651,751 955,138 Tax Advances 0 (2,432) 0 (2,432) Balance at the end of the 666,810 968,808 651,751 952,706 Year
20-1- Income tax is settled for the years prior to 2012-13. The summary of tax payable for years between 2012-13 and 2014-15 is as follows:
2014-15 2015-16 - IRR Million IRR Recognition Million
Fiscal Tax Year Stated Taxable Provision Profit Income balance (Loss) Provision Stated Assessed Definite Paid Balance
2012-13 2,180,961 393,434 220,071 414,687 0 87,168 327,519 327,519 Books 2013-14 5,168,222 1,510,435 328,385 759,428 0 376,566 108,070 408,070 Books 2014-15 2,571,020 410,465 219,549 584,755 0 298,570 53,725 219,549 Books Not 2015-16 2,431,449 0 162,437 0 0 0 162,437 0 investigated 651,751 955,138 Tax Advances 0 (2,432) 651,751 952,706
20-1-1- For corporate tax during 2012-2013, provision was made in the accounts based on stated profit and including related exemptions. According to Tax Auditing Report, taxable income and incurred tax were determined IRR 1359 billion and 306 billion respectively. According to the assessment form, taxable income and incurred tax were determined IRR 1836 billion and 415 billion respectively. The bank lodged a protest against taxable income and book tax in Council of First Instance and called for investigation in Tax Arbitration Board.
20-1-2- For corporate tax during 2013-2014, provision was made in the accounts based on stated profit and including related exemptions. According to Tax Auditing Report, taxable income and incurred tax were determined IRR 2,154 billion and 484 billion respectively. According to the assessment form, taxable income and incurred tax were determined IRR 2,761 billion and 759 billion respectively. The bank lodged a protest against taxable income and book tax in Tax Dispute Settling Board. The Board has not had a meeting up to the date of this report. Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 20-1-3- For corporate tax during 2014-2015, provision was made in the accounts based on stated profit and including related exemptions. According to Tax Auditing Report, taxable income and incurred tax were determined IRR 2,171 billion and 488 billion respectively. According to the assessment form, taxable income and incurred tax were determined IRR 2,290 billion and 585 billion respectively. The bank lodged a protest against taxable income and book tax in Tax Arbitration Board. The Board has not issued a verdict up to the date of this report.
20-1-4- For corporate tax during reported fiscal period, required provision was made in the accounts based on stated profit and including related exemptions.
21- Provisions & Other Liabilities
Group Bank 2015-16 2014-15 2015-16 2014-15 IRR Million IRR Million IRR Million IRR Million Facilities Received from National 21-1 552,494 0 552,494 0 Development Fund Notes Payable 21-2 19,497 69,648 18,368 69,648 Dues from acceptance of L/Cs 21-3 313,507 335,072 313,507 335,072 (F/X) Privatization Organization (Notes 21-4 244,066 244,066 244,066 244,066 Payable) Payable Withholding Taxes 20,726 12,629 20,118 12,191 Good performance Deposit 15,807 32,245 12,524 17,822 Other dues from companies and 21-5 220,381 181,215 134,008 109,122 persons Dues from acceptance of L/Cs 0 25,873 0 25,873 (IRR) Legal Expenses 7,529 5,862 7,409 5,742 Provision for unpaid incurred 21-6 91,082 160,969 88,876 151,624 expenses Membership Fee Payable to 100,000 206,957 100,000 206,957 Deposits Guarantee Fund Premium Payable 82,698 50,479 77,292 48,611 Utilities 19,998 15,454 19,998 15,454 Other Creditors 21-7 149,018 212,582 149,016 221,087 1,836,803 1,553,051 1,737,676 1,463,269
21-1- The above heading is due to National Development Fund for granting facilities according to rules of the fund. In 2015/16, two facilities i.e. credit sales were granted to Behran Oil Co. & Pakan Plast Kar Co. out of the above fund’s credits with the rate of 14%.
21-2- The amount mostly includes IRR 17,437 million notes payable (cheques) to Mahestan Co. for purchasing -1 floor (supermarket) and IRR 931 million for renting the space for 36 ATMs at subway stations of Tehran Urban Railway Development Co. Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 21-3- Dues from acceptance of L/Cs (F/X) include EUR 7,386,796, CHY 8,218,507, INR 280,700, TRY 1,741,274, and OMR 66,042.
21-4- Notes payable (cheques) to Privatization Organization for purchasing Qom Power Plant are as follows:
2015-16 2014-15
IRR Million IRR Million
Privatization Organization 256,520 256,520
Financial Expenses Transferrable to Future Periods (12,454) (12,454)
244,066 244,066
21-5- It mostly includes IRR 60,582 million for advances received for sales of Sinaye Azadi and Shahrzad Project, IRR 25,000 million for municipal charges of Tabnak Project, IRR 29,580 million due to Sina Insurance Co., IRR 25,710 million paid to Asalouyeh Power Generation Companies and Iran Power Plant Investment Co. and KVC Co. for their shareholders’ dividends, IRR 19,538 million due to Behgozin Stock Brokerage, IRR 18,930 million for advances from customers of Eram Tehran Project And Jam-e-Jam Maraghe Project, IRR 9,479 million for due to Mahestan Construction Co., IRR 8,578 million for due to Atisaz Construction Co. for share from Jam-e-Jam Maraghe Project sale, IRR 5,164 million due to Brokerage Companies, IRR 5,403 million due to Sinayaran Co., IRR 2,856 million due to the broker for Mina Glass Co. and Zamzam Iran Co. remittance and remainder due to other companies under contract.
21-6- Provision for unpaid incurred expenses mostly include merit pay payable to staff and other current expenses up to 19 March 2016.
21-7- Other creditors for IRR 149,018 million mostly include provision for general official expenses for IRR 130,127 million (personnel payments, computer services fee and etc.) and IRR 7,165 million for underprivileged areas subsidies (Bonyad Alavi) and the rest relates to branches intermediate account which will be settled next day.
22- Provision for Employees’ Work Termination Benefits
Group Bank
2015-16 2014-15 2015-16 2014-15
IRR Million IRR Million IRR Million IRR Million Balance at the Beginning of 451,720 317,038 446,953 313,778 Year Paid during the Year (8,868) (13,453) (7,170) (12,796)
Provision during the Year 145,073 148,135 142,608 145,971
Balance at the End of Year 587,925 451,720 582,391 446,953 Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 23- Term Investment Deposit
Group Bank 2015-16 2014-15 2015-16 2014-15 IRR Million IRR Million IRR Million IRR Million Long-term Investment 23-1 95,035,402 104,686,288 95,248,875 104,805,665 Deposits Short-term Investment 23-1 36,397,616 14,286,234 36,436,607 14,338,387 Deposits Special Short-term Investment 23-1 338,931 332,794 338,931 332,794 Deposits Investment Deposits Received 23-1 6,512,505 2,279,332 6,512,505 2,279,332 from Banks 138,284,454 121,584,648 138,536,918 121,756,178
Interest rate paid to term deposits has been maximum 20%.
23-1- Term Investment Deposit Detailed by IRR & F/X
Group 2015-16 2014-15 IRR F/X Total IRR F/X Total IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million Short-term Investment 42,698,441 211,680 42,910,121 15,690,017 875,549 16,565,566 Deposits Special Short-term Investment Deposits: Three Month 210,961 0 210,961 0 0 0 Six Month 99,362 0 99,362 332,794 0 332,794 Nine Month 28,608 0 28,608 0 0 0 Long-term Investment Deposits: Deposit 0 0 0 4,575 0 4,575 Certificate One year 53,847,468 1,560 53,849,028 22,999,920 1,444 23,001,364 Two year 28,807,741 0 28,807,741 68,818,737 0 68,818,737 Three year 22,856 0 22,856 53,536 0 53,536 Four year 16,980 0 16,980 24,574 0 24,574 Five year 12,338,797 0 12,338,797 12,783,502 0 12,783,502 138,071,214 213,240 138,284,454 120,707,655 876,993 121,584,648 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Bank
2015-16 2014-15
IRR F/X Total IRR F/X Total
IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million Short-term Investment 42,737,432 211,680 42,949,112 15,742,170 875,549 16,617,719 Deposits Special Short-term Investment Deposits: Three Month 210,961 0 210,961 0 0
Six Month 99,362 0 99,362 332,794 0 332,794
Nine Month 28,608 0 28,608 0 0 0 Long-term Investment Deposits: Deposit 0 0 0 14,575 0 14,575 Certificate One year 54,060,941 1,560 54,062,501 23,109,297 1,444 23,110,741
Two year 28,807,741 0 28,807,741 68,818,737 0 68,818,737
Three year 22,856 0 22,856 53,536 0 53,536
Four year 16,980 0 16,980 24,574 0 24,574
Five year 12,338,797 0 12,338,797 12,783,502 0 12,783,502
138,323,678 213,240 138,536,918 120,879,185 876,993 121,756,178
* One year deposit increase is due to more-than-one-year deposits ban according to circular 93/96593 dated 2 July 2014. More-than-one-year deposits balance is related to prior years. F/X one-year deposit includes USD 7,051,600. Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
23-2- Long-term Investment Deposit Detailed by Maturity Date & Interest Rate
2015-16 2014-15 Higher than 19% to 22% 16% to 19% 13% to 16% 10% to 13% 10% and lower Total Total 22% IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million Past Due Date 0 0 0 0 42,737,432 213,240 42,950,672 16,620,056 2015/16 0 4,904 116 20 338,931 1,749 345,720 49,027,802 2016/17 219,405 74,347,008 8,399,482 733,121 0 7,594 83,706,610 48,284,482 2017/18 438,733 4,631,849 10,826 0 0 46 5,081,454 4,434,127 2018/19 195,628 2,084,909 4,769 0 0 47 2,285,353 2,596,757 2019/20 and after 12,339 137,567 0 4,017,194 0 9 4,167,109 792,954 866,105 81,206,237 8,415,193 4,750,335 43,076,363 222,685 138,536,918 121,756,178 20 March 2015 28,268,653 72,961,098 1,827,631 1,746,480 16,074,963 877,353 121,756,178
23-3- IRR Investment Deposits Turnover
Deposits Balance at 20 Deposits Balance at 20 Placed during March 2015 Repayments March 2016 the Year IRR Million IRR Million IRR Million IRR Million Long-term Deposits: Deposit Certificate 14,575 220 (14,795) 0 One year 23,109,297 134,578,351 (103,626,707) 54,060,941 Two year 68,818,737 74,653,791 (114,664,787) 28,807,741 Three year 53,536 30,579 (61,259) 22,856 Four year 24,574 9,143 (16,737) 16,980 Five year 12,783,502 0 (444,705) 12,338,797 Short-term Deposits Daily-paid Short-term Deposits 15,742,170 677,050,194 (650,054,932) 42,737,432 Special Short-term Deposits 332,794 526,250 (520,113) 338,931 120,879,185 886,848,528 (869,404,035) 138,323,678 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 24- Term Investment Deposits Interest Payable
Group Difference On- between Interest Balance at Account Balance at Actual & Paid 20 March Interest 20 March On- during the 2015 during the 2016 Account Year Year Interest IRR Million IRR Million IRR Million IRR Million IRR Million
Short-term Deposits 77,161 3,305,910 0 (3,238,813) 144,258
Special Short-term Deposits 5,681 41,946 0 (44,630) 2,997
One year Deposits 272,607 7,489,496 0 (7,131,769) 630,334
Two year Deposits 717,652 11,347,013 0 (11,751,842) 312,823
Three year Deposits 3,434 7,120 0 (9,102) 1,452
Four year Deposits 1,950 4,225 0 (5,045) 1,130
Five year Deposits 1,168,177 2,127,115 0 (2,183,508) 1,111,784
F/X Deposits 0 264,480 0 (262,791) 1,689
2,246,662 24,589,251 0 (24,629,446) 2,206,467
Bank Difference On- between Interest Balance at Account Balance at Actual & Paid 20 March Interest 20 March On- during the 2015 during the 2016 Account Year Year Interest IRR Million IRR Million IRR Million IRR Million IRR Million Short-term Deposits 77,161 3,583,492 0 (3,516,395) 144,258 Special Short-term Deposits 5,681 41,946 0 (44,630) 2,997 One year Deposits 274,571 7,490,203 0 (7,133,195) 631,579 Two year Deposits 717,652 11,347,013 0 (11,751,842) 312,823 Three year Deposits 3,434 7,120 0 (9,102) 1,452 Four year Deposits 1,950 4,225 0 (5,045) 1,130 Five year Deposits 1,168,177 2,127,115 0 (2,183,508) 1,111,784 Certificates of Deposit 149 1,946 0 (2,095) 0 F/X Deposits 0 27,623 0 (25,934) 1,689 2,248,775 24,630,683 0 (24,671,746) 2,207,712 Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 The above title will be settled mostly at the beginning of next month in terms of type of investment deposit and its maturity date. Meanwhile, F/X long-term deposits interest payable include USD 55,849.
25- Capital The charter capital of the bank (parent Company) was IRR 10 billion (including 10 million shares with the nominal value of IRR1000) at the time of establishment which has been increased in several stages to IRR 10,000 billion (including 10 billion shares with the nominal value of IRR1000 each share) at the end of fiscal year leading to 20 March 2016:
Capital Current Capital Capital Increase Capital Increase Capital Increase Source Increase Date Amount Amount Percentage IRR Million IRR Million 18.09.1999 200 20,000 30,000 Matured Claim 15.04.2001 133 40,000 70,000 Matured Claim 31.10.2006 614 430,000 500,000 Matured Claim & Cash 22.12.2007 200 1,000,000 1,500,000 Matured Claim & Cash 04.07.2009 33 500,000 2,000,000 Matured Claim & Cash 13.12.2010 50 1,000,000 3,000,000 Matured Claim & Cash 18.10.2011 33 1,000,000 4,000,000 Matured Claim & Cash 17.10.2012 50 2,000,000 6,000,000 Assets Revaluation Surplus 19.07.2015 67 4,000,000 10,000,000 Matured Claim& Cash
25-1- Shareholders’ composition as at date of balance sheet is as follows:
2015-16 2014-15 Shares Shares No. of Shares No. of Shares Percentage Percentage One Percent and Above Bonyad Mostazafan 6,308,502,858 63.1 3,811,465,716 63.5 Enghelab Eslami Bonyad Alavi Institute 973,458,410 9.7 584,075,046 9.7 Oil Pension Fund Investment 669,000,000 6.7 564,100,000 9.4 Co. Sina Financial & Investment 658,991,665 6.6 528,461,649 8.8 Parent Co. Others (below %1) Legal Entities (147 1,028,587,222 10.3 279,009,935 4.7 Shareholders) Real Entities (6,990 361,459,845 3.6 232,887,654 3.9 Shareholders) 10,000,000,000 100 6,000,000,000 100 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 26- Working Capital Increase Based on Shareholders’ Extraordinary General Assembly approval dated 24/11/2014 regarding capital increase from IRR 6,000 billion to IRR 20,000 billion in three stages, it was decided to have the capital increased, at first stage, from IRR 6,000 billion to IRR 10,000 billion from matured dues and existing shareholders’ capital share. The assembly also assigned the capital increase of IRR 10,000 billion to IRR 20,000 billion to board of directors. Registering first-stage capital increase took place in July 2015.
27- Capital of Subsidiaries from Revaluation Surplus As documented in board of directors’ minute no. 140 dated 17/03/2014, Tose’e Sina Co. (subsidiary) had its central office premises revalued by official expert during 2013-14 and the difference i.e. IRR 26 billion has been classified as Owner’s Equity under the title “capital of subsidiaries from revaluation”. Parent company’s asset revaluation was carried out in 2011-12. (Note 6-2-4).
28- Parent Company’s Shares with Subsidiary The above heading is for purchase of 161,465,245 shares of Bank Sina by Tose’e Sina Co. and Bank Sina Market Making Specific Investment Fund (subsidiaries) through Tehran Stock Exchange at the cost of IRR 244,367 million.
29- Minority Interest The above heading is for ownership share of Behgozin Stockbroker Co. in Sina BANK Market Making Specific Investment Fund for IRR 99 million.
30- Statutory Reserve
Group Bank
2013-14 2014-15 2013-14 2014-15
IRR Million IRR Million IRR Million IRR Million Balance at the beginning of 2,152,808 1,789,144 2,112,331 1,759,610 the year Transfer from Allocable Profit 314,937 363,664 309,008 352,721 Balance at the end of the 2,467,745 2,152,808 2,421,339 2,112,331 year
30-1- According to contents of item A article 33 in Banking Monetary Act and article 51 in Bank’s Articles of Association, equivalent of 15% net interest each year is considered as legal reserve after deducting prior years’ incurred losses. Taking statutory reserve into account until reaching up the Bank’s capital is compulsory and after that, it’s optional. Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
31- Income from Granted Facilities & Deposits
Group Bank 2015-16 2014-15 2015-16 2014-15 Joint Non-Joint Total Joint Non-Joint Total Joint Non-Joint Total Joint Non-Joint Total IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million Income from Granted 31-1 22,202,470 492,639 22,695,109 17,509,491 184,411 17,693,902 22,202,470 492,639 22,695,109 17,509,491 184,411 17,693,902 Facilities Income from 31-2 5,251,975 7,556 5,259,531 6,078,343 11,787 6,090,130 5,247,137 7,556 5,254,693 6,078,343 11,787 6,090,130 Deposits Total Income from Granted Facilities & 27,454,445 500,195 27,954,640 23,587,834 196,198 23,784,032 27,449,607 500,195 27,949,802 23,587,834 196,198 23,784,032 Deposits
31-1- Income from Granted Facilities
Bank – 2015-16 Bank – 2014-15 IRR F/X (Non- IRR F/X (Non- Total Total Joint Non-Joint Total Joint) Joint Non-Joint Total Joint) IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million Credit Sales 57,715 0 57,715 0 57,715 151,989 0 151,989 0 151,989 Jealeh (Service Contracts) 191,847 0 191,847 0 191,847 148,301 0 148,301 0 148,301 Lease to Own (Hire Purchase) 138 0 138 0 138 1,252 0 1,252 0 1,252 Muzarebeh 2 0 2 0 2 149 0 149 0 149 Civil Partnership 19,253,435 98,787 19,352,222 0 19,352,222 14,221,851 0 14,221,851 0 14,221,851 Salaf 0 0 0 0 0 0 0 0 0 0 Other Facilities 2,100 0 2,100 0 2,100 0 0 0 0 0 Late Payment Penalty 2,697,233 542 2,697,775 386,740 3,084,515 2,985,949 0 2,985,949 184,411 3,170,360 Late Payment Penalty for Paid L/ 0 6,570 6,570 0 6,570 0 0 0 0 0 Gs’ Debtors 22,202,470 105,899 22,308,369 386,740 22,695,109 17,509,491 0 17,509,491 184,411 17,693,902 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
31-2- Income from Deposits
Group 2015-16 2014-15
IRR F/X IRR F/X Total Total Joint Non-Joint Total (Non-Joint) Joint Non-Joint Total (Non-Joint) IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million Income from Deposits Term Deposits Interest with Banks 5,056,869 0 5,056,869 1,562 5,058,431 5,759,676 0 5,759,676 5,510 5,765,186 Interest for Participation Bond, SOKUK 47,396 0 47,396 0 47,396 199,399 0 199,399 0 199,399 and Deposit Certificate 5,104,265 0 5,104,265 1,562 5,105,827 5,959,075 0 5,959,075 5,510 5,964,585 Legal Deposit Bonus (Depositors and 147,710 5,994 153,704 0 153,704 119,268 6,277 125,545 0 125,545 Bank’s Share) 5,251,975 5,994 5,257,969 1,562 5,259,531 6,078,343 6,277 6,084,620 5,510 6,090,130
Bank 2015-16 2014-15 IRR F/X IRR F/X Total Total Joint Non-Joint Total (Non-Joint) Joint Non-Joint Total (Non-Joint) IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million Income from Deposits Term Deposits Interest with Banks 5,056,869 0 5,056,869 1,562 5,058,431 5,759,676 0 5,759,676 5,510 5,765,186 Interest for Participation Bond, SOKUK 42,558 0 42,558 0 42,558 199,399 0 199,399 0 199,399 and Deposit Certificate 5,099,427 0 5,099,427 1,562 5,100,989 5,959,075 0 5,959,075 5,510 5,964,585 Legal Deposit Bonus (Depositors and 147,710 5,994 153,704 0 153,704 119,268 6,277 125,545 0 125,545 Bank’s Share) 5,247,137 5,994 5,253,131 1,562 5,254,693 6,078,343 6,277 6,084,620 5,510 6,090,130 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
32- Net Investment Profit (Loss)
Group Bank
2015-16 2014-15 2015-16 2014-15 Non- Non- Non- Non- Joint Total Joint Total Joint Total Joint Total Joint Joint Joint Joint IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR Million Million Million Million Million Million Million Million Million Million Million Million Companies’ Dividend 32-1 888,361 190,739 1,079,100 1,100,857 327,164 1,428,021 1,096,797 190,739 1,287,536 1,262,783 327,164 1,589,947 Profit (Loss) from Selling 32-2 51,955 0 51,955 67,282 0 67,282 90,014 0 90,014 59,574 0 59,574 Companies’ Shares Total Realized Profit (Loss) 940,316 190,739 1,131,055 1,168,139 327,164 1,495,303 1,186,811 190,739 1,377,550 1,322,357 327,164 1,649,521 from Investments
Profit (Loss) from Investment Value Increase (Decrease) Net Profit (Loss) from Investment Value Increase 73,229 0 73,229 0 0 0 0 0 0 0 0 0 (Decrease) Net Investment Profit (Loss) 1,013,545 190,739 1,204,284 1,168,139 327,164 1,495,303 1,186,811 190,739 1,377,550 1,322,357 327,164 1,649,521 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
32-1- Companies’ dividends are detailed as follows:
Group Bank 2015-16 2014-15 2015-16 2014-15 Joint Non-Joint Total Joint Non-Joint Total Joint Non-Joint Total Joint Non-Joint Total IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million Tose’e Sina Co. – Subsidiary 0 0 0 0 0 0 110,000 0 110,000 127,000 0 127,000 Sarrafi Sina Co. – Subsidiary 0 0 0 0 0 0 105,000 0 105,000 72,918 0 72,918 Tose’e Etemad Mobin Co. 239,261 190,739 430,000 322,836 327,164 650,000 229,261 190,739 430,000 322,836 327,164 650,000 Qom Power Generation Management Co. 600 0 600 840 0 840 600 0 600 840 0 840 Fan Ava Card Co. 26,800 0 26,800 1,479 0 1,479 26,800 0 26,800 1,479 0 1,479 Padash Sarmayeh Sabet Investment Fund Profit 21,079 0 21,079 0 0 0 21,079 0 21,079 0 0 0 Construction Projects 1,252 0 1,252 152,898 0 152,898 1,252 0 1,252 152,898 0 152,898 Profit from Bargh va Energy Peyvand Gostar 330,627 0 330,627 273,600 0 273,600 330,627 0 330,627 273,600 0 273,600 Pars Co. Sale Profit from Other Investments 3,095 0 3,095 3,445 0 3,445 3,095 0 3,095 3,445 0 3,445 Long-term Investments Dividends 622,714 190,739 813,453 755,098 327,164 1,082,262 837,714 190,739 1,028,453 955,016 327,164 1,282,180
Hamrah Avval 85,692 0 85,692 89,814 0 89,814 85,692 0 85,692 89,814 0 89,814 Sina Port & Marine Services Development 0 0 0 0 0 0 0 0 0 0 0 0 Parsian Insurance 31,941 0 31,941 55,423 0 55,423 31,866 0 31,866 55,308 0 55,308 Iran National Development Investment (Bank 31,851 0 31,851 17,815 0 17,815 31,851 0 31,851 15,648 0 15,648 Melli) Tehran Cement 9,075 0 9,075 16,088 0 16,088 9,075 0 9,075 16,088 0 16,088 Alborz Darou 8,429 0 8,429 6,673 0 6,673 8,429 0 8,429 6,673 0 6,673 Behran Oil 8,382 0 8,382 10,863 0 10,863 7,184 0 7,184 8,814 0 8,814 Mobin Petrochemicals 6,714 0 6,714 0 0 0 6,714 0 6,714 0 0 0 Jam Petrochemicals 7,909 0 7,909 8,964 0 8,964 6,484 0 6,484 6,020 0 6,020 Bank Pasargad 6,435 0 6,435 7,341 0 7,341 6,275 0 6,275 6,701 0 6,701 Magsal Agriculture & Animal Husbandry 5,062 0 5,062 5,457 0 5,457 5,062 0 5,062 5,457 0 5,457 Mines & Metals Development Investment 4,448 0 4,448 5,033 0 5,033 4,448 0 4,448 3,658 0 3,658 Ghadir Investment 3,703 0 3,703 2,462 0 2,462 3,703 0 3,703 2,462 0 2,462 Shiraz Petrochemicals 3,615 0 3,615 5,883 0 5,883 3,615 0 3,615 5,883 0 5,883 Persian Gulf Petrochemicals 3,433 0 3,433 6,866 0 6,866 3,433 0 3,433 6,866 0 6,866 Other (42 Companies) 48,958 0 48,958 107,077 0 107,077 45,252 0 45,252 78,375 0 78,375 Short-term Investments Dividends 265,647 0 265,647 345,759 0 345,759 259,083 0 259,083 307,767 0 307,767 Companies’ Dividends 888,361 190,739 1,079,100 1,100,857 327,164 1,438,021 1,096,797 190,739 1,287,536 1,262,783 327,164 1,589,947 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
32-2- Profit (Loss) from selling shares is as follows:
Group Bank 2015-16 2014-15 2015-16 2014-15 No. of Profit Profit No. of Profit Profit Sale Cost Sale Cost Shares (Loss) (Loss) Shares (Loss) (Loss) Shares IRR Million IRR Million IRR Million IRR Million Shares IRR Million IRR Million IRR Million IRR Million Profit (Loss) from Selling Shares – IRR (Joint) Hamrah Avval 11,406,815 432,612 363,510 69,102 431 11,406,815 432,612 363,510 69,102 431 Iran Khodro 49,460,691 200,661 160,354 40,307 (1,600) 45,710,691 190,927 149,476 41,451 (1,600) Magsal Agriculture & Animal Husbandry 1,455,250 40,918 24,898 16,020 258 1,455,250 40,918 24,898 16,020 258 Rayan Saipa Leasing 33,617,542 96,026 83,124 12,902 5,751 20,674,977 57,805 46,186 11,619 604 Rana Investment 9,000,000 24,199 12,988 11,211 0 9,000,000 24,199 12,988 11,211 0 Mobin Petrochemicals 41,370,000 165,680 154,177 11,503 0 20,650,000 81,846 71,128 10,718 0 MAPNA 10,480,000 98,251 91,275 6,976 0 4,240,000 39,757 34,614 5,143 0 Azarab 3,889,582 20,057 16,685 3,372 0 3,889,582 20,057 16,685 3,372 0 Jam Petrochemicals 4,564,759 45,174 42,105 3,069 0 4,564,759 45,174 42,105 3,069 0 Mellat Bank 36,951,138 86,877 82,134 4,743 0 26,332,634 62,496 59,758 2,738 0 Shomal Drilling 3,620,836 14,704 12,999 1,705 17,165 3,620,836 14,704 12,999 1,705 1 Bank Tejarat 18,207,382 22,083 20,490 1,593 6,021 18,207,382 22,083 20,490 1,593 (1,293) National Development Investment 10,192,251 26,049 24,556 1,493 3,442 10,192,251 26,049 24,556 1,493 695 Bank Saderat Iran 35,606,946 37,629 36,885 744 (31) 25,606,946 26,584 25,531 1,053 (31) Behran Oil 1,238,012 16,460 16,195 265 4,108 1,028,260 13,638 13,400 238 0 Zamiad 11,927,000 23,676 23,465 211 0 11,927,000 23,676 23,465 211 0 Other (number of companies) 341,209 474,470 (133,261) 31,737 110,798 201,520 (90,722) 60,509 1,692,265 1,640,310 51,955 67,282 1,233,323 1,143,309 90,014 59,574 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 33- Bank Resources Quota from Joint Income Bank Resources quota from joint income are calculated in the following manner:
33-1- Bank Resources Quota from Joint Income
Ratio of Bank Resources to Bank Resources Quota from Joint Income Total Consumptions (33-2) Joint Income Percent IRR Million IRR Million
5.79% 28,488,708 1,649,979
33-2- Distribution of Joint Resources & Consumptions among Depositors & Bank
2015-16 2014-15 Explanations Description IRR Million IRR Million Average of Joint 118,282,979 104,226,306 Average of 52 Weeks Consumptions (33-2-1) Average of Investment Deposits Balance 126,194,772 107,577,339 Average of 52 Weeks (33-2-2) Less Investment (14,762,379) (12,053,865) Average of 52 Weeks Deposits Legal Deposit Investment Deposits Free 111,432,393 95,523,474 Resources Bank Resources Quota from Joint Consumption 6,850,586 8,702,832 (Investment Deposits Free Resources Surplus)
33-2-1- Average of Joint Consumptions
2015-16 2014-15 Amount Amount Joint Consumptions Items (Average) (Average) IRR Million IRR Million
Net Consumption related to Facilities 87,161,982 72,481,394
Net Consumption related to Participation Bond 171,220 772,462
Net Consumption related to Deposit with Other Banks 19,461,455 23,223,691
Net Consumption related to Investments 11,488,322 7,748,759
Total Consumption related to Joint Operations 118,282,979 104,226,306
Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 33-2-2- Average of Investment Deposits
2015-16 2014-15 Amount Amount Investment Deposit (Average) (Average) IRR Million IRR Million
One year 36,805,557 12,515,700
Two year 51,682,635 59,215,796
Three year 36,213 93,821
Four year 21,341 27,253
Five year 10,266,728 15,968,881
Short-term Deposits 24,014,090 13,759,125
Banks & Other Credit Institutions’ Term Deposits 1,979,517 4,515,454
Special Short-term Deposits 1,388,691 1,481,309
Average of Investment Deposits 126,194,772 107,577,339
33-3- Bonus for investment deposits statutory deposits are as follows:
2015-16 2014-15 Description IRR Million IRR Million
Average of Investment Deposits Legal Deposit 14,762,379 12,053,865
Bonus for Statutory Deposit (with rate 1% of Resources Average) 147,710 119,268
34- Lawyers’ Fee Bank’s lawyers’ fee for fiscal year 2015/16 has been calculated based on minute no. 596 dated 7 July 2015 and announced 3%. Average depositors’ free resources × Lawyers’ fee rate= Lawyers’ fees (IRR million) 111,432,393 × 3%= 3,342,972 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 35- On-account Interest on Investment Deposits
Group Bank 2015-16 2014-15 2015-16 2014-15 IRR Million IRR Million IRR Million IRR Million Short-term 3,305,910 1,481,919 3,319,012 1,503,246 Special short-term 41,946 223,840 41,946 223,840 Long-term Deposits: One year 7,461,873 2,607,982 7,490,203 2,607,982 Two year 11,347,013 12,669,188 11,347,013 12,679,205 Three year 7,120 17,415 7,120 17,415 Four year 4,225 5,338 4,225 5,338 Five year 2,127,115 3,265,436 2,127,115 3,265,436 Deposit Certificate 1,946 413 1,946 413 Profit paid to Term Deposits of Banks & Other Credit 264,480 1,037,659 264,480 1,037,659 Institutions 24,561,628 21,309,190 24,603,060 21,340,534
36- Expenses of Deposits Interest
Group Bank 2015-16 2014-15 2015-16 2014-15 IRR Million IRR Million IRR Million IRR Million IRR Investment Deposits 24,561,628 21,309,190 24,603,060 21,340,534 Interest F/X Deposits Interest 27,623 41,899 27,623 41,899 24,589,251 21,351,089 24,630,683 21,382,433
37- Commission Income
Group Bank 2015-16 2014-15 2015-16 2014-15 IRR Million IRR Million IRR Million IRR Million Issued Guarantees 162,021 126,974 162,021 126,974 Collection of Cheques 119,478 72,837 119,478 72,837 Opened L/Cs 2,187 3,468 2,187 3,468 Supervision & Investigation of 171,704 155,390 171,704 155,390 Clients’ Credit Files SHETAB Transactions 307,822 262,522 307,822 262,522 F/X Operations 775,225 45,174 5,501 5,021 Credit Card Subscription 167,962 326,759 167,962 326,759 Other Services 76,042 69,720 76,042 69,720 1,782,441 1,062,844 1,012,717 1,022,691 Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 38- Commission Expenses
Group Bank
2015-16 2014-15 2015-16 2014-15
IRR Million IRR Million IRR Million IRR Million Expenses of Facilities 1 547 1 547 Received from Banks Commission Paid for Banking 8,149 3,720 8,107 3,720 Services Commission Paid for 272,756 235,434 272,756 235,434 SHETAB Commission Paid for F/X 724,124 382 0 0 Payment Orders (38-1) POS Commission 33,524 0 33,524 0 (SHAPARAK) 1,038,554 240,083 314,388 239,701
38-1- Commission paid for F/X payment orders is related to Sina Sarrafi
39- Net Profit (Loss) of F/X Transactions
Group Bank
2015-16 2014-15 2015-16 2014-15
IRR Million IRR Million IRR Million IRR Million Profit (Loss) from F/X 86,818 (107,367) 86,876 (107,213) Conversion Profit (Loss) from F/X Sell & 23,795 46,234 24,258 46,234 Buy 110,613 (61,133) 111,134 (60,979) Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 40- Net Profit (Loss) from Services
Group
2015-16 2014-15
IRR Million IRR Million
Income from Sale of Estates – Tose’e Sina 158,212 392,044
Cost of Sold Estates - Tose’e Sina (94,058) (231,392)
64,154 160,652
Income from Sale of F/X and Coins – Sarrafi Sina 9,153,594 5,023,140
Cost of Sold F/X and Coins - Sarrafi Sina (9,130,928) (4,991,315)
22,666 31,825
Income from Services 672 293
Cost of Services 0 (93)
672 200
Net Profit (Loss) from Services 87,492 192,677
41- Other Income
Group Bank
2015-16 2014-15 2015-16 2014-15
IRR Million IRR Million IRR Million IRR Million Profit from Sale of Tangible & Intangible 41-1 13,125 13,482 12,795 1,459 Fixed Assets Income from Owned 41-2 39,754 42,057 39,754 42,057 Estates Profit from Sale of 41-3 284,551 627,416 284,551 627,416 Owned Estates Other Income & Miscellaneous 24,294 122,632 24,355 122,820 Expenses 361,724 805,587 361,455 793,752 Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 41-1- Profit from Sale of Fixed Income is as follows:
Group 2015-16 2014-15 Cost Book Value Sale Amount Profit (Loss) Profit (Loss) IRR Million IRR Million IRR Million IRR Million IRR Million Land 3,427 3,427 5,000 1,573 1,687 Building 813 565 5,550 4,985 13,884 Furniture 5,825 1,379 1,016 (363) 111 Vehicles 1,398 212 1,889 1,677 (4,208) Goodwill 13,078 13,078 18,331 5,253 2,008 24,541 18,661 31,786 13,125 13,482
Bank 2015-16 2014-15 Cost Book Value Sale Amount Profit (Loss) Profit (Loss) IRR Million IRR Million IRR Million IRR Million IRR Million Land 3,427 3,427 5,000 1,573 1,687 Building 813 565 5,550 4,985 1,861 Furniture 5,825 1,379 1,016 (363) 111 Vehicles 1,071 136 1,483 1,347 (4,208) Goodwill 13,078 13,078 18,331 5,253 2,008 24,214 18,585 31,380 12,795 1,459
Sale of Assets mostly relates to selling Tose’e Saderat estate in Rasht and Pirouzi branch estate in Tehran.
41-2- IRR 39,754 million related to opportunity cost and current value of owned estates which would be transferred to bank in case of customers’ default. In case of owner agreement on returning updated value of owned estates from the time of owning till rescission in former owner’s name, it will be calculated and received and the estate will be returned to initial owner. Turnover of the above account is as follows:
Bank 2015-16 2014-15 IRR Million IRR Million Current Value of Owned Estates 73,770 106,865 Cost of Estates at time of Ownership (34,016) (64,808) Profit from Returning Estates (Rescission) 39,754 42,057 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 41-3- The above amount is related to sale of Kamraniyeh estate (Mohammmad Ali Maleki) for IRR 217,325 million.
42- General & Administrative Expenses
Group Bank
2015-16 2014-15 2015/16 2014-15
IRR Million IRR Million IRR Million IRR Million
Personnel Expenses 42-1 1,800,070 1,446,404 1,786,103 1,435,426 Administrative 42-2 1,171,195 857,175 1,167,012 854,353 Expenses 2,971,265 2,303,579 2,953,115 2,289,779
42-1- Personnel expenses are detailed as follows:
Group Bank
2015-16 2014-15 2015-16 2014-15
IRR Million IRR Million IRR Million IRR Million
Salary 336,630 279,616 325,289 270,463
Overtime 109,040 110,573 109,040 110,573
Expertise Allowance 174,332 149,238 174,332 149,238 Children, Spouse, Residence and Groceries 26,576 22,863 26,576 22,759 Allowance Employer’s Premium Share 142,221 118,317 142,005 118,140
New Year Allowance 92,224 77,664 92,224 76,253
Remuneration, Efficiency and Expertise 284,283 234,184 284,283 234,184
Bonus (Daheh Fajr, Banking Day) 414,750 235,518 412,660 235,518
Personnel Service Redemption 149,513 168,788 149,321 168,654
Personnel Other Expenses 70,501 49,643 70,373 49,644
1,800,070 1,446,404 1,786,103 1,435,426 Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 42-2- Administrative expenses are detailed as follows:
Group Bank
2015-16 2014-15 2015-16 2014-15
IRR Million IRR Million IRR Million IRR Million
Print & Stationary 7,686 9,785 7,077 9,316
Counsellors’ Fee 29,238 16,649 27,231 15,687
Advertisement 119,911 93,437 119,565 93,072
Rent & Charges 59,449 47,785 59,449 47,785
Administrative Consumables 19,470 19,648 19,254 19,521 Properties, Furniture and Building Repair & 47,951 40,544 47,722 40,470 Maintenance Telecommunications 11,017 9,231 10,992 9,231 (Telephone, Fax, Post) Utilities 38,704 32,752 38,610 32,683
Missions 43,176 12,730 43,176 12,730 Rent for Satellite Band Width 121,750 19,116 121,750 19,116 & TDM Data Lines Buildings Renovation Taxes 4,545 5,441 4,375 5,441
Properties & Funds Insurance 10,737 7,595 10,737 7,595 Fee for Computer Support Services & Mechanized 66,386 82,218 66,386 82,218 Systems Welfare & Sports 9,310 11,821 9,310 11,821
Personnel Saving Fund 16,715 13,815 16,715 13,815 ATMs & Electronic Payment Systems Repair & 277,980 209,897 277,980 209,897 Maintenance Network Leadership and 13,257 11,425 13,257 11,425 Maintenance (Data Center) Fee for Services Personnel & 175,430 117,088 175,240 117,020 Contractors Board of Directors’ Bonus 2,500 2,900 2,500 2,500 Other (including Daily Food, 95,983 93,298 95,686 93,010 Pantry and Training) 1,171,195 857,175 1,167,012 854,353 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 43- Doubtful Debts Expenses
2014-15 2015-16
IRR Million IRR Million
General Doubtful Debts Expenses 270,215 274,307
Specific Doubtful Debts Expenses 61,269 294,925
331,484 569,232
44- Depreciation Expenses
Group Bank
2015-16 2014-15 2015-16 2014-15
IRR Million IRR Million IRR Million IRR Million Depreciation of Fixed 135,521 122,342 134,757 121,208 Tangible Assets Depreciation of Intangible 16,887 15,746 16,782 15,644 Assets 152,408 138,088 151,539 136,852
45- Prior Years’ Adjustments
Group Bank
2015-16 2015-16
IRR Million IRR Million Adjustment of 2014/15 Membership Fee for Deposits 45-1 (206,957) (206,957) Guarantee Fund Prior Years’ Corporate Tax Correction (725) 0
Correction of Vaeen Project Expenses in Shahriar 1,173 0
Tose’e Sina Co. Dividend - Subsidiary 0 23,000
Sarrafi Sina Co. Dividend - Subsidiary 0 (25,000)
(206,509) (208,957)
45-1- Membership fee for deposits guarantee fund subject of by-law no. H49837 T/150501 dated 1 March 2015 approved by the cabinet, calculated based on average of 2013-14 deposits and paid to the order of the fund as 2014-15 membership fee. Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 45-2- To present a fair view of financial position and operations results, some comparative items classification has been changed in comparative financial statements as follows. That’s the reason why comparative items are not, somehow, in accordance with financial statements presented in previous fiscal year:
Bank Balance Based on Restatement & Classification Change Balance Based on Last Year Current Year Title of Account Financial Debt Credit Comparative Statements Figures IRR Million IRR Million IRR Million IRR Million Cash 741,932 24,242,929 0 24,984,861 Dues from CBI 16,481,892 0 16,481,892 0 Dues from Banks & Other Credit 24,491,082 433,958 24,224,900 700,140 Institutions Other Accounts & Receivables 6,690,707 0 6,174,436 516,271 Fixed Tangible Assets 2,220,617 17,406 30,558 2,207,465 Other Assets 3,681,705 49,734 17,406 3,714,033 Dues from Subsidiaries &Affiliated 0 6,153,260 0 6,153,260 Companies Legal Deposit 0 16,029,905 0 16,029,905 Dues to CBI 1,255,596 1,255,596 0 0 Due to Banks & Other Credit 2,338,798 2,279,332 1,255,596 1,315,062 Institutions Sight Deposits 5,176,187 5,176,187 0 0 Other Deposits and Advances 1,837,568 1,837,568 0 0 Reserves and Other Liabilities 3,505,087 2,248,775 206,957 1,463,269 Customers’ Deposits 0 0 7,013,755 7,013,755 Term investment Deposits 119,476,846 0 2,279,332 121,756,178 Interest of Term Investment Deposits 0 0 2,248,775 2,248,775 Payable Accumulated Profit 2,007,092 208,957 0 1,798,135 Interest & Late Payment Penalty of 17,509,491 17,509,491 0 0 Granted Facilities Profit from Investments and Deposits- 7,406,210 7,406,210 0 0 On-account Interest of Investment 21,340,534 0 21,340,534 0 Deposits Interest & Late Payment Penalty of 184,411 184,411 0 0 Non-Joint Activities Other Income 1,127,193 333,441 0 793,752 General & Administrative Expenses 2,426,631 0 136,852 2,289,779 Financial Expenses 547 0 547 0 Other Expenses 281,053 0 281,053 0 Income from Granted Facilities & 0 0 23,784,032 23,784,032 Deposits Expenses from Deposits Interest 0 21,382,433 0 21,382,433 Commission Expenses 0 239,701 0 239,701 Net Profit (Loss) from Investment 0 0 1,649,521 1,649,521 Depreciation Expenses 0 136,852 0 136,852 107,126,146 107,126,146 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
46- Profit before Income Tax Reconciliation Statement Profit before Income Tax Reconciliation Statement with net cash flow resulting from operational activities is as follows:
Group Bank 2015-16 2014-15 2015-16 2014-15 IRR Million IRR Million IRR Million IRR Million Profit Before Income Tax 2,418,232 2,604,214 2,431,449 2,571,020 Depreciation Expense 152,408 138,088 151,539 136,852 Net Increase (Decrease) in Provision for Work Termination Benefits of 136,205 134,682 135,438 133,175 Personnel Sales Profit (Loss) of Tangible Fixed & Intangible Assets (13,125) 1,459 (12,795) 1,459 Net Profit (Loss) of F/X Cash Conversion (86,818) 107,213 (86,876) 107,213 Others (2,192,232) 0 (2,224,727) 0 414,670 2,985,656 394,028 2,949,719 Net Increase (Decrease) of Operating Liabilities: Dues to Banks & Other Credit Institutions 124,709 (10,318,350) 124,709 (10,233,210) Customers’ Deposits 2,821,439 562,496 2,755,140 (572,547) Dividend Payable (16,183) 24,717 (16,183) 24,717 Operating Portion of Provisions & Other Liabilities 283,752 (397,936) 274,407 (558,709) Term Investment Deposits 16,699,806 32,442,854 16,780,740 33,597,412 Interest of Term Investment Deposits Payable (40,195) 442,804 (41,063) 444,917 19,873,328 22,756,585 19,877,750 22,702,580 Net Increase (Decrease) of Operating Assets: Dues from Banks & Other Credit Institutions (565,732) 1,456,185 (565,732) 1,431,468 Granted Facilities & Dues from Non - government Officials (13,869,737) (21,498,530) (13,869,737) (21,498,530) Investments in Shares & Other Bonds (3,248,919) (288,693) (3,415,668) (288,693) Dues from Subsidiaries & Affiliated Companies 1,635,190 (560,593) 1,373,974 (642,887) Other Accounts Receivable (264,603) (266,444) (129,240) (141,010) Legal Deposit 2,201,288 (5,506,639) 2,201,288 (5,506,639) Operating portion of other assets (614,004) (1,153,434) (538,691) (1,095,452) (14,726,517) (27,818,148) (14,943,806) (27,741,743) Net cash inflow (outflow) from operating activities 5,561,481 (2,075,907) 5,327,972 (2,089,444) Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
47- Non-cash Transactions Main Non-cash Transactions during the year are as follows:
2015-16 2014-15 IRR Million IRR Million Owning Assets in Return of Granted Facilities (47-1) 792,274 1,104,738 Buying and Assignment of Building in Return of Tax Debt 0 147,650
Settling Part of Bonyad’s F/X Facilities by 2014/15 Profit Share 1,256,392 0
Acquiring Investment of in Return of Settling Bonyad’s Due by Selling Tabnak 750,000 0 Acquiring Investment of Tose’e EtemadMobin Co. in Return of Dividend Receivable 430,000 650,000 3,228,666 1,902,388
47-1- The Bank has owned the following assets during the reported fiscal year.
Debt Amount at Expert Value of the time of Owned Asset Type of Asset Owned Type of Customer Relationship Ownership IRR Million IRR Million Furniture Irrelevant Customer 1,007 1,007 Equipments Irrelevant Customer 160 160 Goods Irrelevant Customer 247 247 Vehicles Irrelevant Customer 125 125 Shares Irrelevant Customer 33 33 Residential Irrelevant Customer 441,415 1,038,377 Commercial/Official Irrelevant Customer 311,079 421,439 Land Irrelevant Customer 38,208 27,000 792,274 1,488,388 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
48- Off-balance Sheet Items
48-1- Commitments for L/Cs
48-1-1- Position of Bank’s Commitments for F/X L/Cs is as follows:
Effect of Rate Fluctuations Balance at the beginning of Year Opened during the Year Settled (Cancelled) during the Year Balance at the End of Year during the Period Principal IRR Principal IRR Principal IRR IRR Principal IRR No. No. No. No. Amount Equivalent Amount Equivalent Amount Equivalent Equivalent Amount Equivalent
IRR Million IRR Million IRR Million IRR Million IRR Million
Sight
EUR 9 1,743,747 52,585 4 3,493,463 118,550 10 2,166,393 73,517 6,590 3 3,070,818 104,208
KRW 8 2,441,962,437 61,213 6 772,165,120 19,892 11 2,791,665,737 71,916 1,695 3 422,461,820 10,884
CHY 7 239,894,745 1,084,084 32 44,825,703 208,664 34 239,786,375 1,262,732 197 5 6,490,437 30,213
INR 6 20,289,837 9,110 2 21,199,968 9,603 7 30,737,805 13,924 81 1 10,752,000 4,870
1,206,992 356,709 1,422,089 8,563 150,175
Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 48-1-2- Bank’s Commitment for IRR L/Cs is as follows:
2015-16 2014-15 IRR Million IRR Million Balance at the Beginning of Year 40,484 0 Opened during the Year 46,230 102,986 Settled (cancelled) during the Year (63,724) (62,502) Balance at the End of Year 22,990 40,484
48-2- Bank’s Commitments for L/Gs issued
48-2-1- Position of the Bank’s commitments for foreign currency L/Gs is as follows:
2015-16 2014-15 Principal IRR Principal IRR amount Equivalent amount Equivalent IRR Million IRR Million EUR 190,616 6,468 141,282 4,260 GBP 3,293 142 0 0 6,610 4,260
48-2-2- Bank’s commitments for IRR L/Gs are:
2015-16 2014-15 IRR Million IRR Million Commitments for L/Gs Issued 9,164,956 6,931,859
48-3- Other clients’ commitments are as follows:
2015-16 2014-15 IRR Million IRR Million Commitments for Participation Bond Guarantee and 48-3 3,000,000 3,000,000 Other Similar Bonds Commitments for Credit Cards 766,738 777,709 Commitments for Signed Contracts 18,314 94,301 3,785,052 3,872,010
48-3-1- Commitments for participation bond guarantee are for guarantee of original participation bond of Gole Gohar Industrial Mineral Co.
48-4- Managed funds and similar items are as follows:
2015-16 2014-15 IRR Million IRR Million Granted Facilities from Managed Funds 60,948 53,329 Unused managed funds 42,435 15,841 103,383 69,170 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
48-5- Memorandum Accounts
2015-16 2014-15 IRR Million IRR Million Long-term Deposit 28,401,606 23,947,695 Securities & Shares 249,569,687 188,883,311 Land, Building and Machinery 58,912,675 52,905,400 Cheques & Promissory notes 882,356 861,377 Others 6,492,016 8,551,821 344,258,340 275,149,604
49- Capital Commitments & Contingent Liabilities
49-1- Capital commitments resulted from contracts signed and approved by the Board of Directors at balance sheet date are as follows:
IRR Million Building (Buying Farmaniyeh Estate) 13,659 Computers Purchase 4,662 18,321
49-2- The Bank has no contingent liabilities on the date of balance sheet
50- Earnings per Share
50-1- Earnings per Share Earnings per Share are the result of ordinary shareholders’ earnings divided to weighted average of ordinary shares with shareholders. Weighted average of ordinary shares equals 8,673,972,603 shares.
51- Description of Bank’s Risks Bank is exposed to following risks: - Credit Risk - Liquidity Risk - Market Risk - Operational Risk Risk Management’s Programs and Policies: Establishing Risk Management Comprehensive Approach (ERM) Independent integrated supervision and control on acknowledged risks Helping policies formulation considering limits of risks acknowledgment Determining risk weights of assets using customers’ credit rating system An attempt to be more in compliance with Basel and CBI laws to prevent compliance risks Recognition, measurement and control over financial and non-financial risks Helping Corporate Governance implementation in bank Holding various training courses on risk management for all personnel Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 51-1- The following diagram shows relationship between different sections of business and main risks confronting each section.
Credit Risk Low Market Risk Low Retail Banking Liquidity Risk Low Operational Risk Low
Board of Directors
Supreme Audit Supreme Risk Committee Committee
Compliance Committee
Managing Director
Vice Managing Director Regulations Internal Audit Compliance Department
Inspection Risk Department
Legal Managing Director’s Management Office
Security Public Relations
Anti-Money Advisors Laundering Department
Planning, Investment Information Technology & Branches & Human Credit & Supervision Financial & Support & International Affairs Network Communications Resources Deputy Deputy Deputy Deputy Deputy
Investment & Branches & Information Budget & General Assemblies Marketing Credit Technology Affairs Accounting
Network & Foreign Supervision & Branches Human Resources Operations Operations Collection of Accounting & & Training Support Loans Treasury
Projects, Systems Planning & Development Support Research Security Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 51-2- Credit Risk
51-2-1- Definition Credit risk is defined as possibility of default in granted facilities principal and interest and loss resulting from transactions in terms of goods quality, transaction items, and confidence between transaction parties. Credit risk is triggered when a party may not be able or may not be willing to fulfil his or her obligations. The effect of this risk is assessed by cash replacement cost resulting from party’s default.
51-2-2- Credit Policies Policy of the Bank’s credit section is based on resources allotment management, process optimization and credit services diversification and is adopted in line with customer satisfaction, profitability and dues reduction and is advised to mentioned units in form of circulars and instructions issued.
51-2-3- Credit Risk Management Executive Units After approval by Credit Risk Management Committee in Credit Risk Supreme Committee, it is the most important Credit Risk Management Executive Unit in which Risk & Compliance Department is a member. Risk & Compliance Department is obliged to provide Credit Risk Management reports in different periods of time and is to follow Committee’s approvals as Credit Risk Committee Secretary. Credit Management Units is obliged to execute credit approvals of Credit Risk Committee & Credit Risk High Committee.
51-2-4- Scope of Authority of Different Organizational Levels for Approving Facilities and Commitments Branches Credit Committee (president, vice president, Credit Section) – based on branch rate from IRR 200 million to IRR 10 billion Area Credit Committee (Area President, Area Vice-president and Area Credit Section and one of branch presidents) – based on area rating from IRR 2 billion to IRR 45 billion Center Credit Committee (Credit vice president, Branches & Areas Affairs Manager, Credit Manager) up to IRR 45 billion limit with any kind of securities Credit High Committee (lower than IRR 50 billion) – (managing director, Credit Vice President, Credit President), guarantees up to IRR 500 billion. Board of Directors, higher than IRR 50 billion (and cases which need inquiry and board of directors’ approval as recognized by managing director and Credit High Committee)
51-2-5- Credit Risk Reduction Methods A real and legal customers’ rating system in bank may reduce credit risk because the system promotes the exactness and speed of assessing credits and evaluates all the real and legal customers based on credit rate.
51-2-6- Customer’s Creditworthy Process Filling application forms by applicants in full and checking documents which should be in compliance with contents of form Documents presented by applicants which are related to financial statements, assets and etc. In cases when the amount of granted facilities exceed the authority given to branch credit unit, it should be investigated by the credit unit based on documents taken and posted to Area Credit Committee. Customers’ Creditworthy is done considering competence, conditions, capital, and securities. Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 51-3- Analysis of Credit Quality of Granted Facilities and Investments based on Assets Classes
Granted Facilities to Granted Facilities to Commitments for L/ Banks Customers Gs& L/Cs 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 IRR IRR IRR IRR IRR IRR Million Million Million Million Million Million Current 0 0 96,702,771 80,464,763 173,165 1,247,476 Overdue 0 0 1,632,945 510,936 0 0 Outstanding 0 0 2,930,223 2,697,301 0 0 Doubtful 0 0 3,667,330 3,822,586 0 0 Total Gross Amount 0 0 104,933,269 87,495,586 173,165 1,247,476 Doubtful Debts 0 0 (3,124,935) (2,793,451) 0 0 Provision Net Book Amount 0 0 101,808,334 84,702,135 173,165 1,247,476
51-3-1- Credit Quality of Participation Bonds and the like
Credit Quality Analysis 2015-16 2014-15 IRR Million IRR Million Governmental Bonds & Government’s Guilt-edged Securities Islamic Guild-edged Securities 126,088 0 126,088 0 Public Companies’ Bonds Ministry of Economic Affairs and Finance – Government’s 169,970 169,970 Transformational & Civil Projects Ministry of Roads & Urban Development – Transportation 0 10,000 Development 169,970 179,970 296,058 179,970
51-3-2- Method of Non-Current Facilities Management Bank policies for owning assets are consistent with CBI circulars and instructions. To collect non-current dues, bank acts on loans contracts and mortgage note through registration and legal offices and attempts to cooperate with economic activists to settle their outstanding debts according to debt collection circulars and by-laws, avoiding coercive measures as much as possible. Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 51-3-3- Owned Assets Balance
2015-16 2014-15 Description IRR Million IRR Million
Movable Assets 1,572 0
Residential Buildings 1,467,368 1,351,704
Commercial/Official Buildings 482,145 222,296
Factories 2,406 2,285
Land 53,438 15,522
Other Immovable Properties (Garden, Parking Lot) 32,722 32,684
Half-built Construction Projects 2,111,050 2,025,431
4,150,701 3,649,922
51-3-4- Capital Required for Covering Credit Risk Capital required for covering credit risk of bank’s assets is presented as described in followi g table.
51-3-4-1- Table showing calculations of capital required for covering credit risk
The table shows capital consumption for covering credit risks with aim of achieving capital adequacy 8%. (Risk Amount × 8% = Capital Allotted
2015-16 Asset Type IRR Million % IRR Million IRR Million Due from Other Banks and 30,343,389 20 6,068,678 485,494 Other Credit Institutions Non-Governmental 296,058 100 296,058 23,685 Participation Bonds Investment in Shares 10,648,944 100 10,648,944 851,916 Accounts Receivable 3,444,728 100 3,444,728 275,578 Lease to Own and Mortgage 22,190,495 50 11,095,248 887,620 Other Granted Facilities & 79,617,839 100 79,617,839 6,369,427 Dues Other Assets 4,222,166 100 4,222,166 337,773 Guarantee of Non- Governmental Participation 3,000,000 50 750,000 60,000 Bond Commitments for L/Gs Issued 9,171,566 20 366,863 29,349 Commitments for L/Cs Issued 173,165 20 6,927 554 Total 163,108,350 116,517,451 9,321,396 Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 51-4- Liquidity Risk
51-4-1- Definition Liquidity Risk is defined as risk arising from loss of liquidity required for covering short-term commitments and unexpected cash outflow in bank. The reasons for liquidity risk to appear in banks are: 1- Deposits exit 2- Transformability of non-cash assets to cash assets 3- Volume of Investments 4- Assets & Liabilities temporal gap
51-4-2- Liquidity Risk Management Policies Preventing loss arising from liquidity inadequacy through effective liquidity management Determining the main resources of cash inflow and outflow and specifying the liquidities over which bank has short-term control. Response to unpredicted fluctuations of bank’s balance sheet Diversification of bank’s liabilities in order to mitigate liquidity risk Determining optimum amount of liquidity in order to keep suitable liquidity reserve
51-4-3- Liquidity Risk Management Executive Units With respect to Risk Management High Committee’s approval, Liquidity Risk Management Subcommittee formed. Meanwhile, Risk & Compliance Department is tasked with providing reports related to liquidity risk, preparing periodic reports which are given to managing director, board of directors and Risk High Committee.
51-4-4- Liquidity Risk Measurement Method (including Principles and Assumptions) Liquidity gap modelling based on facilities and deposits ladder-like maturity date. This method predicts liquidity flow based on future time intervals.
51-4-5-Liquidity Risk Monitoring and Control Mechanisms Liquidity Risk Subcommittee is formed to monitor bank’s liquidity on a monthly basis with cooperation of Accounting Dept., Branches Budget and Accounting and Treasury.
51-5- Liquidity Provisions The below table shows bank’s liquidity provisions composition:
Description 2015-16 2014-15
Sight Deposit with CBI (unrestricted) 76,620 18,029
Cash Balance - IRR 599,433 656,698
Cash Balance – F/X 210,085 85,234
Funds in Transit – IRR 150 0
Funds in Transit – F/X 0 0
Deposits with Other Banks & Credit Institutions (unrestricted) 28,191,229 24,224,900
Current Investment in Short-term Market 3,179,393 1,783,979
Investment in Other Securities 296,058 179,970
32,476,348 26,930,781 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 51-5-1- Liquidity Ratios
Beginning of Period End of the Year Average Period Cash & Semi-Cash Assets to Total Assets 21.8% 22.7% 23.7%
Cash & Semi-Cash Assets to Total Deposits 25.7% 26.8% 28.0%
Facilities to Total Deposits 67.0% 68.2% 69.5%
Facilities to One-Year and Over Deposits 80.8% 92.7% 104.5%
Escape Deposits to Total Deposits* 15.4% 24.0% 32.5%
- Cash & Semi-Cash include cash, participatory bond and the like which have active cash deal market. Escape deposits include deposits with no contractual maturity such as current and saving Gharz-al-Hassanah deposits
51-6- Counter-Crisis Plan (Liquidity Adequacy Stress Test)
Liquidity Shock in Total Deposits Fiscal Year Shock Level 10% 20% 30%
Pre-shock Liquidity Ratio 0.62% 0.62% 0.62% 2015-16 Post-shock Liquidity Ratio -10.42% -24.23% -41.97%
Pre-shock Liquidity Ratio 0.59% 0.59% 0.59% 2014-15 Post-shock Liquidity Ratio -10.46% -24.27% -42.02%
Liquidity Shock in Short-term Deposits Fiscal Year Shock Level 10% 20% 30%
Pre-shock Liquidity Ratio 1.90% 1.90% 1.90% 2015-16 Post-shock Liquidity Ratio -8.99% -22.62% -40.14%
Pre-shock Liquidity Ratio 3.81% 3.81% 3.81% 2014-15 Post-shock Liquidity Ratio -6.88% -20.24% -37.42%
Regarding IRR 28,191,229 million our deposits with other banks, in case of a shock, bank encounters no problem in terms of liquidity. Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 51-7- Market Risk
51-7-1- Definition Market Risk is defined as possibility of risks and loss arising from transactions, prices and conversion rates in market. The cases related to Market Risk management in banks include:
1- Interest Rate Risk 2- Risk arising from transactions such as shares 3- F/X Rate Risk 4- Adjustment Risk or Risks resulted from Rates Adjustment 5- Current Risk or Risk arising from Market Factors
51-7-2- Market Risk Management Executives Units With respect to Risk Management High Committee’s approval, Market Risk Management Subcommittee formed.
51-7-3- Market Risk Measurement Method Market risk is measured using Value at Risk (VaR) method.
51-7-4- Analysing the value at risk for investing in shares and other investments with market With respect to Value at Risk method and resulting probable change percentage at market value, the amount of value at risk for investing in shares and other investments with market price has been provided in below table:
2015-16 2014-15
Investment Type Probable Probable Effect on Effect on Change in Change in Profit & Loss Profit & Loss Market Price Market Price % IRR Million % IRR Million Investment in Marketable Shares (-2.91 & +2.91) 94,494 (-2.87 & +2.87) 54,655
The above risk amount, at worst 3.9%, has been effective on 2015/16 profit.
51-7-5- With respect to Value at Risk method and resulting probable change percentage at F/X rate, the amount of value at risk for investing in shares and other investments with market price has been provided in below table:
2015/16 2014-15 Probable Probable Effect on Effect on Currency Change in Change in Profit & Loss Profit & Loss Market Price Market Price % IRR Million % IRR Million
USD (-2.91 & +2.91) 47 (-0.12 & +0.12) 414
EUR (-2.15 & +2.15) 5,244 (-1.31 & +1.31) 12,581
GBP (-1.32 & +1.32) 33 (-0.96 & +0.96) 23
CHY (-1.32 & +1.32) 449 (-0.53 & +0.53) 217 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 51-7-6- Capital Required to Cover Market Risk
Total Shares Risk F/X Risk Provision Measurement Provision for Provision for Method Capital for Value at Risk Required Value at Risk Required Market Risk Capital Capital IRR Million IRR Million IRR Million IRR Million IRR Million Historical Simulation Model 94,494 298,816 5,772 18,252 317,068
51-8- Operational Risk This section describes explanatory qualitative items related to operational risk in the manner to cover the following titles fully.
51-8-1- Definition Operational risk is defined as losses resulted from security and control failure, human resources, contracts and facilities mistakes and possible losses and risks arising from lack of knowledge or correctness of information, communications, process transformation and satellite systems.
51-8-2- Operational Risk Management Executives Units With respect to Risk Management High Committee’s approval to form Operational Risk Management Subcommittee, all operational risks are controlled by the committee whose approvals are as follows:
In 2015/16, three meetings were held by Operational Risk Management Committee with approvals, the most important of which are:
1. Report on identification and measuring operational risks related to Credit, Financial, Treasury, Human Resources and IT Units was analyzed in terms of “Processes and Methods”, “Intraorganizational activities”, “vocational disorders and system deficiencies” and “events related to out of organization”. 2. To improve processes and customers’ verification methods, preparing customers’ rating software was supposed to be investigated in Credit Unit and Risk Management High Committee offered the suggestion to Board of Directors. To mitigate operational risk related to keeping credit collaterals and documents, a suitable archive for Credit Unit should be approved. 3. To cover operational risks spotted in HR Unit, a schedule for omitting or mitigating the risks should be formulated and necessary permissions have to be taken from Board of directors as required.
51-8-3- Measures Preventing Intentional and Unintentional Human Errors In this regard, measures have been taken to formulate necessary processes preventing intentional and unintentional errors.
51-8-4- Counter Crisis Preparations In this regard, Risk and Compliance Department program is based on analysis of potential scenarios based on critical conditions and taking suitable decisions in Risk Management High Committee meetings according to related subjects. Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 51-8-5- Operational Risk Measurement Method Bank calculates operational risk using original index method but investigates extent of intensity and probability for HR risk or system breakdown using operational risk matrix ad hoc.
51-8-6- Operational Risk Control and Monitoring Mechanisms The most important controlling mechanism to monitor operational risk in bank is to formulate and update processes related to current activities and possible errors which are potentially liable to operational risks.
51-8-7- Capital Required for Covering Operational Risk Since bank’s financial statements are prepared based on Basel I standards, no capital is considered for measuring operational risk. The capital may not be calculable if CBI requires for implementation of Basel II, III using Original Index or Standard Method.
13,195,000 15,000,000
8,613,000 10,000,000
5,000,000 717,082 809,913
0 20 March 2015 20 March 2016
20 March 2015 20 March 2016 Capital Required for Covering Operational Risk 717,082 809,913,045
Capital 8,613,000 13,195,000
Ratio of Capital Required for Covering Operational Risk to Capital
20 March 2016 20 March 2016
8.33% 6.14% Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 51-9- Risk Management Supreme Committee In 2015/16, eleven meetings of Risk Management High Committee were held, the most important approvals of which are:
1. Reviewing Bank’s facilities and outstanding debts was emphasized in different classifications according to retail and large facilities for better control of credit risks. 2. Establishing committees which would be subdivision of Risk Management High Committee including subordinated committees of operational risk management, liquidity risk management, credit risk management, market risk management and compliance management were approved according to CBI’s regulations and principles. The approval led to forming of above committees. 3. With regard to Bank’s senior management approach concerning risk management, accurate recognition of Basel I,II,III rules and regulations and position of Bank Sina as segregated by each one of risks among the other banks was emphasized and a report was prepared and presented in this regard. 4. With regard to importance of money cost in Bank, its calculation method was reviewed in an individual meeting in the presence of Total Accounting & Budget Management and it was determined to be calculated only within the framework provided by CBI. 5. To avoid the risks of non- performing commitments by banks which are receiver of interbank deposits, the liquidity limits for granting interbank deposits were determined by presence of related managements. 6. With regard to the point that bank is exposed to the credit risk which is the most important risk and recognition of credit customers is, thus, highly important in granting facilities, the subject of credit customers’ classification and ranking was emphasized using appropriate software at all branches. 7. Risk Management Supreme Committee approach is implementation of Basel II rules and regulations; hence in this relation the recognition of required infrastructures and possibilities was emphasized to reach the mentioned aim. 8. Following the preparation of credit risk reports in Risk and Compliance Unit and presenting them to Risk Management Supreme Committee, the necessity of compiling bank’s credit risk policy based on the CBI’s rules and regulations and Basel II was emphasized by Credit Deputy. In this ground, providing credit packages specific to different groups and determining credit limits segregated by real, legal and etc. sectors are being considered. Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 51-10- Capital Management
51-10-1- Capital Bank’s capital as at end of fiscal year leading to 20 March 2016 is as follows:
2015-16 2014-15
IRR Million IRR Million
A) Core Capital Capital after Deduction of Capital Obtained from Revaluation 8,000,000 4,000,000 Surplus Working Capital Increase 0 3,844,748
Legal Reserve 2,421,339 2,112,331
Retained Earnings 1,758,139 1,798,135
12,179,478 11,755,214
B) Supplementary Capital
Dues and Investments General Provision 1,480,625 1,210,410
Fixed Assets Revaluation Surplus 2,000,000 2,000,000
3,480,625 3,210,410
Capital before Deduction 15,660,103 14,965,624
C) Deductions from Capital
Investments in Other Banks & Credit Institutions (215,390) (135,071)
Base Capital 15,444,713 14,830,553
Bank’s base capital and capital adequacy ratio in 2014/15 were approved by CBI in 19 September 2015. Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
51-10-2- Total Risk-Weighted Assets at the end of fiscal year leading to 19 March 2016 are as follows:
2015-16 2014-15 Risk-Weighted Risk-Weighted Description Assets and Assets and Risk Factor Assets and Risk Factor Assets and Commitments Commitments Commitments Commitments IRR Million % IRR Million IRR Million % IRR Million Cash 809,668 0 0 741,932 0 0 Statutory Deposit 13,828,617 0 0 16,029,905 0 0 Dues from CBI 510,578 0 0 451,987 0 0 Dues from Banks and Other Institutions 29,023,143 20 5,804,629 24,491,082 20 4,898,216 Public Participation Bonds 169,970 0 0 179,970 0 0 Private Participation Bond 126,088 100 126,088 0 100 0 Investment in Shares 10,648,944 100 10,648,944 7,349,365 100 7,349,365 Accounts Receivable 3,444,728 100 3,444,728 4,689,461 100 4,689,461 Loans and Lease to Own and Mortgage 22,190,495 50 11,095,248 18,036,089 50 9,018,045 Facilities paid to Ministries, Public Companies and Institutes and BonyadMostazafanEnghelabEslami and 514,226 0 0 2,258,876 0 0 subsidiaries Other Loans and Granted Facilities and Dues 79,103,613 100 79,103,613 66,387,240 100 66,387,240 Net Fixed Assets and Goodwill 4,541,939 100 4,541,939 4,698,296 100 4,698,296 Other Assets 4,222,166 100 4,222,166 3,683,475 100 3,683,475 Commitments for L/Gs Issued (liable to 20% 9,171,566 20 1,834,313 6,936,119 20 1,387,224 conversion factor) Commitments for L/Cs Issued (liable to 20% 173,165 20 34,633 1,247,476 20 249,495 conversion factor) Private Section Participation Bond Guarantee(liable to 3,000,000 50 1,500,000 3,000,000 50 1,500,000 50% conversion factor) Commitments for Contracts Signed 18,314 50 9,157 94,301 50 47,151 Commitments for Other Commitments 766,738 100 766,738 777,709 100 777,709 123,132,195 104,685,676
Total Risk-Weighted Assets and Commitments Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 51-10-3- Capital Adequacy Ratio Bank’s Capital Adequacy Ratio as at end of fiscal year leading to 20 March 2016 is as follows:
2015-16 2014-15
IRR Million IRR Million
Base Capital 15,444,713 14,830,553 Total Risk-Weighted Assets and Commitments 123,132,195 104,685,676
Capital Adequacy Ratio – Percent 12.5% 14.2%
51-10-4- Degree of Leverage Degree of leverage is total assets divided to equity. Bank’s degree of leverage at the end of fiscal year leading to 19 March 2016 is as follows.
2015-16 2014-15
IRR Million IRR Million
Total Assets 169,134,175 148,997,678
Total Equity 14,179,478 13,755,214
Degree of Leverage 11.9 10.8 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 52-Operational Sections
52-1- Basis for Sections Categorization In this section, bank expresses its basis for reporting including different business sections such as retail banking, corporate banking and etc.
52-2- Information about Reportable Operational Sections Information related to each of reportable sections is presented in following table. Profit before tax is used as criteria for section’s performance.
Corporate Retail Banking Total Banking Description IRR Million IRR Million IRR Million
Income from Granted Facilities and Deposits 27,949,802 0 27,949,802
Deposits Interest Expenses (24,630,683) 0 (24,630,683) Total Income from Granted Facilities and 3,319,119 0 3,319,119 Deposits
Income from Commissions 1,012,717 0 1,012,717
Commissions Expenses (314,388) 0 (314,388)
Total Income from Commissions 698,329 0 698,329
Net Profit (Loss) from Investments 1,377,550 0 1,377,550
Net Profit (Loss) from F/X Transactions 111,134 0 111,134
Other Operational Income 361,455 0 361,455 Direct Expenses ascribable to Operational (331,484) 0 (331,484) Sections Each Section Profit before not-ascribable 1,518,655 0 1,518,655 General Expenses
General Expenses not Ascribable to Sections (3,104,654)
Profit before Tax 2,431,449 Sina Bank
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016 52-3- Geographical Concentration of Main Items in Assets, Liabilities and Income In presenting geographical information, main items in assets are reported based on location and liabilities and income are reported based on residence of bank’s counterpart at geographical areas.
2015-16
Iran Iraq UAE Turkey Others Total IRR IRR IRR IRR IRR Million IRR Million Million Million Million Million Assets
Cash 29,077,517 0 0 0 0 29,077,517 Dues from Banks & Other Credit 1,265,872 0 0 0 0 1,265,872 Institutions Granted Facilities and Dues from 101,808,334 0 0 0 0 101,808,334 Non-Governmental Persons Investment in Shares and Other 10,945,002 0 0 0 0 10,945,002 Securities Dues from Subsidiaries and 2,799,216 0 0 0 0 2,799,216 Affiliated Companies Other Accounts Receivable 645,512 0 0 0 0 645,512
Fixed Tangible Assets 1,849,617 0 0 0 0 1,849,617
Intangible Assets 2,692,322 0 0 0 0 2,692,322
Legal Deposit 13,828,617 0 0 0 0 13,828,617
Other Assets 4,222,166 0 0 0 0 4,222,166
Total 169,134,175 0 0 0 0 169,134,175
Liabilities Dues to Banks and Other Credit (1,439,771) 0 0 0 0 (1,439,771) Institutions Customers’ Deposits (9,768,895) 0 0 0 0 (9,768,895)
Dividend Payable (29,583) 0 0 0 0 (29,583)
Corporate Tax Provision (651,751) 0 0 0 0 (651,751)
Provisions and Other Liabilities (1,737,676) 0 0 0 0 (1,737,676) Provision for Staff Work (582,391) 0 0 0 0 (582,391) Termination Benefits Term Investment Deposit (138,536,918) 0 0 0 0 (138,536,918) Interest Payable to Term (2,207,712) 0 0 0 0 (2,207,712) Investment Deposit Total (154,954,697) 0 0 0 0 (154,954,697)
Income 30,812,658 0 0 0 0 30,812,658 Annual Report 2015 - 2016
Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
2014-15
Iran Iraq UAE Turkey Other Total IRR IRR IRR IRR IRR Million IRR Million Million Million Million Million Assets
Cash 24,984,861 0 0 0 0 24,984,861 Dues from Banks & Other Credit 700,140 0 0 0 0 700,140 Institutions Granted Facilities and Dues from 86,682,205 0 0 0 0 86,682,205 Non-Governmental Persons Investment in Shares and Other 7,529,335 0 0 0 0 7,529,335 Securities Dues from Subsidiaries and 4,173,190 0 0 0 0 4,173,190 Affiliated Companies Other Accounts Receivable 516,271 0 0 0 0 516,271
Fixed Tangible Assets 2,238,023 0 0 0 0 2,238,023
Intangible Assets 2,460,273 0 0 0 0 2,460,273
Legal Deposit 16,029,905 0 0 0 0 16,029,905
Other Assets 3,683,475 0 0 0 0 3,683,475
Total 148,997,678 0 0 0 0 148,997,678
Liabilities Dues to Banks and Other Credit (1,315,062) 0 0 0 0 (1,315,062) Institutions Customers’ Deposits (7,013,755) 0 0 0 0 (7,013,755)
Dividend Payable (45,766) 0 0 0 0 (45,766)
Corporate Tax Provision (952,706) 0 0 0 0 (952,706)
Provisions and Other Liabilities (1,463,269) 0 0 0 0 (1,463,269) Provision for Staff Work (446,953) 0 0 0 0 (446,953) Termination Benefits Term Investment Deposit (121,756,178) 0 0 0 0 (121,756,178) Interest Payable to Term (2,248,775) 0 0 0 0 (2,248,775) Investment Deposit Total (135,242,464) 0 0 0 0 (135,242,464)
Income 27,249,996 0 0 0 0 27,249,996 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
53- Transactions with Affiliated Persons
53-1- Transactions with Affiliated Persons during the year is as follows:
2015-16 2014-15 Gross Profit Gross Profit Is it liable to Transaction Debt Balance Transaction Debt Balance Type of Subject of article 129 of (Loss) of (Loss) of Affiliated Party Pricing Method Amount 19 March 2016 Amount 19 March 2016 Affiliation Transaction Commercial Transaction Transaction Law IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million Policymakers (1,371,144) (245,749) (1,730,013) (818,064) (138,929) (1,175,857) Attracting Deposits (according to Bank’s BonyadMostazafanEnghelabEslami Shareholder Granting Facilities Yes bylaws and 0 3,329 14,226 0 184,411 2,267,230 In-between Account regulations) including Board of Directors 1,375,000 67,200 1,099 1,375,000 568,429 1,375,311 (198,101) (5,868) (237,641) 0 (7,073) (42,541) Policymakers Attracting Deposits (according to Bank’s Joint 1,360,000 2,740 938,861 950,000 101,135 628,292 Behran Oil Company Granting Facilities Yes bylaws and Shareholder In-between Account regulations) including 0 366,505 1,832,529 0 0 2,400,000 Board of Directors (6,332) (690) (9,061) 0 0 0 Policymakers 0 0 2,109,733 0 0 1,779,105 Attracting Deposits (according to Bank’s Joint Saba Central Power Generation Co. Granting Facilities Yes bylaws and 330,628 0 0 0 0 0 Shareholder In-between Account regulations) including Board of Directors (8,224) (162) (8,464) 0 (84) (240) Policymakers 107,812 6,270 50,283 53,906 10,395 58,201 Attracting Deposits (according to Bank’s Joint Jame’e Sina Leasing Co. Granting Facilities Yes bylaws and 0 0 0 0 0 0 Shareholder In-between Account regulations) including Board of Directors (155,470) (44,925) (375,300) (213,581) (7,505) (219,830) Policymakers 4,830,223 326,321 4,792,183 8,677,462 1,369,816 5,212,677 Attracting Deposits (according to Bank’s Joint Tehran-Shomal Freeway Building Co. Granting Facilities Yes bylaws and 0 0 0 0 0 0 Shareholder In-between Account regulations) including Board of Directors (25) (2) (74) 0 (99) (49) Policymakers 0 10,820 217,690 0 22,328 153,893 Attracting Deposits (according to Bank’s Joint Iran Tire Manufacturing Co. Granting Facilities Yes bylaws and 0 0 0 0 0 0 Shareholder In-between Account regulations) including Board of Directors (38,458) (66) (39,628) 0 0 (1,171) Policymakers 446,000 2,357 305,895 0 2,916 0 Attracting Deposits (according to Bank’s Joint Behnoosh Iran Co. Granting Facilities Yes bylaws and 0 0 0 0 0 0 Shareholder In-between Account regulations) including Board of Directors (32,902) (976) (37,805) 0 (2,258) (4,904) Policymakers 0 0 0 0 166,662 0 Attracting Deposits (according to Bank’s Joint Mahestan Construction Co. Granting Facilities Yes bylaws and 26,916 0 (26,916) 1,107,960 0 (8,538) Shareholder In-between Account regulations) including Board of Directors 0 0 (66) 0 0 (66) Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
2015-16 2014-15 Gross Profit Gross Profit Is it subject to Transaction Debt Balance Transaction Debt Balance Type of Subject of article 129 of (Loss) of (Loss) of Affiliated Party Pricing Method Amount 19 March 2016 Amount 19 March 2016 Affiliation Transaction Commercial Transaction Transaction Code? IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million Policymakers 241,950 10,881 399,592 165,000 28,014 187,213 Attracting Deposits (according to Bank’s Joint Gilan Sabz Cement Industry Co. Granting Facilities Yes bylaws and Shareholder In-between Account regulations) including 0 0 0 0 0 0 Board of Directors Policymakers 0 (10) (676) 0 (174) (676) Attracting Deposits (according to Bank’s Joint Tolid MaskanKhavar Co. Granting Facilities Yes bylaws and 0 7,015 39,662 115,770 15,174 41,283 Shareholder In-between Account regulations) including Board of Director 0 0 0 0 0 0 (15,832) (126) (26,297) 0 0 (10,465) Policymakers Attracting Deposits (according to Bank’s Joint 60,000 976 60,170 120,000 7,620 0 Behgozin Stock Brokerage Co. Granting Facilities Yes bylaws and Shareholder In-between Account regulations) including 106,019 0 86,481 0 0 0 Board of Director (4,278) (964) (13,033) (6,757) (210) (8,755) Policymakers 0 140,530 419,173 2,256,466 309,424 837,521 Attracting Deposits (according to Bank’s Sina Financial & Investment Parent Shareholder Granting Facilities Yes bylaws and 0 0 0 0 0 0 Co. In-between Account regulations) including Board of Director 0 (3) (663) 0 (20) (663) Policymakers 0 0 0 0 14,814 0 Attracting Deposits (according to Bank’s Joint Glucozan Co. Granting Facilities Yes bylaws and 0 0 0 0 0 0 Shareholder In-between Account regulations) including Board of Director (63,585) (13,406) (126,349) (5,000) (16,253) (63,264) Policymakers 0 605 80,208 60,000 27,693 157,270 Attracting Deposits (according to Bank’s Joint Bonyad Eastern Railway Co. Granting Facilities Yes bylaws and 0 0 0 0 0 0 Shareholder In-between Account regulations) including Board of Director (4,571) (30) (8,814) 0 (446) (4,243) Policymakers 0 0 0 936,675 570,038 0 Attracting Deposits (according to Bank’s Saba Energy & Electricity Joint Granting Facilities Yes bylaws and 0 0 0 0 0 0 Development and Generation Co. Shareholder In-between Account regulations) including Board of Director (2,111) (654) (3,746) 0 (101,635) (1,637) Policymakers 3,482,485 221,216 4,335,359 2,200,000 138,893 1,824,076 Attracting Deposits (according to Bank’s Foolad Kaveh Joint Granting Facilities Yes bylaws and 0 0 0 0 0 0 Jonoob Kish Co. Shareholder In-between Account regulations) including Board of Director (1,142,492) (143,936) (1,790,111) (237,740) (104,038) (656,149) Policymakers 2,175,892 155,835 4,850,925 1,916,748 218,342 2,929,289 Attracting Deposits (according to Bank’s Joint Other Affiliated Persons Granting Facilities Yes bylaws and Shareholder In-between Account regulations) including 201,925 0 201,925 202,417 0 202,417 Board of Director Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
54- Retained Earnings at the End of Year Allocating Retained Earnings at the end of year is subject to Shareholders’ Ordinary General Assembly approval:
Amount Statutory Duty IRR Million Dividing at least 10% of 2015/16 net profit according to article 90 Commercial Code asAmended 226,901 Board of Directors’ Suggestion Dividend Proposed by Board of Directors 226,901
55- Facilities & Commitments Information of Related Persons Facilities & Commitments Information of Related Persons according to CBI circular no. 94/241742 dated 16 November 2015 is as follows:
Net Securities Commitments Shares or Balance (After Company Affiliation Type/ Total Net Capital Net implementing (holding) Counter Party Managerial Total Shares Facilities & No. Ownership Type of Contract Facilities risk (Related Legal Company Position/Shares Cost Commitments of Related Balance conversion Type Value person) Ownership Balance Person factors and deducting cash deposit) Cheque& Long- IRR and F/X 1 Bonyad Mostazafan Enghelab Eslami 63.1 Shareholder 0 1,250,366 16,794 1,267,160 term Deposit & 3,729,131 Facilities and L/G Collateral 2 Sina Financial & Investment Parent Co. 8.3 Shareholder Civil Partnership 0 388,405 0 388,405 Cheque& Shares 2,234,489 Affiliated 3 Tose’e Sina Co. 100 L/G 400,000 0 72 72 Long-term Deposit 400 Company (Direct) Affiliated 4 Sarrafi Sina Co. 100 50,000 0 0 0 Company (Direct) Cheque and Shares and Sina Bank Tose’e Etemad Mobin Affiliated 5 10 Civil Partnership 0 1,173,277 0 1,173,277 Securities and 2,385,633 Co. Company (Direct) Cash Deposit and Collateral Cheque and Affiliated L/G & Civil 6 Fan Ava Card Co. 20 88,511 0 10,800 99,311 Promissory Note 258,850 Company (Direct) Partnership and Cash Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
56- Large Facilities & Commitments Information Large facilities and commitments information according to approval 166 in Money & Credit Council’s meeting dated 29 Oct 2013 (CBI’s Circular no. 92/242553 dated 7 Nov 2013) is as follows:
Board of Directors’ Large Facilities & Commitments Balance Approval Net Facilities – IRR Commitments Common Total Facilities/ Type of National Million – IRR Million No. Beneficiary Customer Shares Commitments Relationship Code/ID Value Group Net Cost plus Shares Net Granting Date – IRR No. Date Non- – IRR Cost (Common Current Gross Net (3) Million Current Million Beneficiary (1) (2) Group)
1 Controlled Kayhan Tabadol Co. 10101832217 351,005 168,054 0 0 0 24.07.2013 1,976,226 - -
2 Controlled Kayhan Tabadol Co. 10101832217 117,561 77,541 0 0 0 24.07.2013 692,622 - -
3 Controlled Iran Sakhteman Investment 10101660410 226,971 0 0 0 0 21.01.2016 671,850 608 19.01.2016 Sadr 1,778,885 HashemiNejad 4 Controlled Nosaziva Sakhteman Tehran 10101683349 117,648 0 0 0 0 21.01.2016 349,225 608 19.01.2016
5 Controlled Tamin Maskan Javanan 10102172273 117,823 0 0 0 0 21.01.2016 349,442 608 19.01.2016
6 Controlled Stratus Contract Work International 10100790677 400,860 201,422 0 0 0 24.07.2013 1,947,986 - - Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Board of Directors’ Large Facilities & Commitments Balance Approval Net Facilities – IRR Commitments Common Total Facilities/ Type of National Million – IRR Million No. Beneficiary Customer Shares Commitments Relationship Code/ID Value Group Net Cost plus Shares Net Granting Date – IRR No. Date Non- – IRR Cost (Common Current Gross Net (3) Million Current Million Beneficiary (1) (2) Group) 7 Controlled Golrang Pakhsh Co. 10102095853 54,603 0 0 0 0 01.11.2015 71,610 600 08.09.2015 8 Controlled Golrang Pakhsh Co. 10102095853 53,945 0 0 0 0 21.11.2015 221,700 600 08.09.2015 9 Controlled Pakshoo Industrial Group 10100578556 73,682 0 0 0 0 31.12.2015 205,400 607 06.01.2016 10 Controlled Pakshoo Industrial Group 10100578556 0 0 3,268 2,288 0 15.02.2016 2,710 600 08.09.2015 Ariyan Kimia Tak Hygienic 11 Controlled 10102335460 19,381 0 0 0 0 21.11.2015 26,117 600 08.09.2015 Pharmaceutical Co. Ariyan Kimia Tak Hygienic 12 Controlled 10102335460 33,005 0 0 0 0 03.02.2016 120,422 607 06.01.2016 Pharmaceutical Co. Ariyan Kimia Tak Hygienic 13 Controlled 10102335460 101,326 0 0 0 0 27.02.2016 290,500 607 06.01.2016 Pharmaceutical Co. 14 Controlled GolPakhshAvval Co. 10102096548 54,044 0 0 0 0 18.11.2015 146,700 600 08.09.2015 15 Controlled GolPakhshAvval Co. 10102096548 106,181 0 0 0 0 17.12.2015 293,300 600 08.09.2015 16 Controlled Tian Gas Steel Industrial Co. 10102876174 0 0 1,185 1,066 0 27.11.2014 1,281 553 20.02.2014 17 Controlled Tian Gas Steel Industrial Co. 10102876174 0 0 3,877 3,489 0 08.06.2015 4,200 591 05.05.2015
18 Golrang Controlled Tian Gas Steel Industrial Co. 10102876174 0 0 2,118 1,906 0 16.11.2015 20,502 600 08.09.2015 19 Controlled Tian Gas Steel Industrial Co. 10102876174 10,048 0 0 0 0 12.03.2016 13,950 607 06.01.2016 20 Controlled Tian Gas Steel Industrial Co. 10102876174 10,048 0 0 0 0 17.03.2016 44,250 607 06.01.2016 21 Controlled Marinasan Cellulose Industrial Co. 10103513206 0 0 20,000 16,000 0 09.08.2015 23,200 591 05.05.2015 22 Controlled Marinasan Cellulose Industrial Co. 10103513206 79,685 0 0 0 0 16.12.2015 220,250 600 08.09.2015 23 Controlled Marinasan Cellulose Industrial Co. 10103513206 53,090 0 0 0 0 17.12.2015 146,700 600 08.09.2015 24 Controlled Marinasan Cellulose Industrial Co. 10103513206 30,671 0 0 0 0 15.02.2016 88,140 607 06.01.2016 25 Controlled Golbarg Baharan Agro-industry 10102586210 21,525 0 0 0 0 25.11.2015 28,800 600 08.09.2015 26 Controlled Golbarg Baharan Agro-industry 10102586210 53,781 0 0 0 0 26.11.2015 312,000 600 08.09.2015 27 Controlled Golbarg Baharan Agro-industry 10102586210 103,222 0 0 0 0 31.01.2016 245,520 607 06.01.2016 28 Controlled GolbargBaharan Agro-industry 10102586210 10,178 0 0 0 0 22.02.2016 14,360 607 06.01.2016 29 Controlled Dalin Mehr Co. 10102995618 20,133 0 0 0 0 09.03.2016 58,200 607 06.01.2016 30 Controlled Salamat PakhshHasti 10320467584 43,577 0 0 0 0 05.11.2015 117,324 600 08.09.2015 31 Controlled Master Foodeh Food Industry 10320517860 51,118 0 0 0 0 15.02.2016 145,400 607 06.01.2016 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Board of Directors’ Large Facilities & Commitments Balance Approval Net Facilities – IRR Commitments Total Facilities/ Common Type of National Million – IRR Million Commitments No. Beneficiary Customer Shares Relationship Code/ID plus Shares Value Group Net Cost Net Granting Date Cost – IRR No. Date Non- – IRR Current Gross Net (3) (Common Million Current Million (1) Beneficiary (2) Group) 32 Controlled Master Foodeh Food Industry 10320517860 10,066 0 0 0 0 09.03.2016 14,040 607 06.01.2016 33 Controlled Master Foodeh Food Industry 10320517860 40,096 0 0 0 0 16.03.2016 115,800 607 06.01.2016 34 Controlled Kourosh Food Industry 10320554400 53,781 0 0 0 0 26.11.2015 147,000 600 08.09.2015 35 Controlled Vionasan Hygienic Industries Co. 10103458293 20,181 0 0 0 0 05.03.2016 57,900 607 06.01.2016 36 Controlled Vionasan Hygienic Industries Co. 10103458293 40,289 0 0 0 0 08.03.2016 115,800 607 06.01.2016 1,985,510 37 Controlled Vionasan Hygienic Industries Co. 10103458293 50,121 0 0 0 0 16.03.2016 146,720 607 06.01.2016 38 Controlled Arian Cellulose Sana’at Co. 10103726185 20,447 0 0 0 0 15.02.2016 58,200 607 06.01.2016 39 Controlled Arian Cellulose Sana’at Co. 10103726185 20,217 0 0 0 0 02.03.2016 57,960 607 06.01.2016 40 Controlled Pakan Plastkar Co. 10103147590 55,008 0 0 0 0 28.06.2015 139,215 591 05.05.2015 41 Golrang Controlled Pakan Plastkar Co. 10103147590 21,749 0 0 0 0 08.11.2015 92,280 600 08.09.2015 42 Controlled Arian Salamat Sina Co. 10104090275 10,999 0 0 0 0 20.10.2015 29,340 600 08.09.2015 43 Controlled Arian SalamatSina Co. 10104090275 10,441 0 0 0 0 13.01.2016 89,340 607 06.01.2016 44 Controlled Arian Salamat Sina Co. 10104090275 10,441 0 0 0 0 13.01.2016 14,340 607 06.01.2016 45 Controlled Arian Salamat Sina Co. 10104090275 10,368 0 0 0 0 24.01.2016 14,340 607 06.01.2016 46 Controlled Arian Salamat Sina Co. 10104090275 10,263 0 0 0 0 09.02.2016 14,040 607 06.01.2016 47 Controlled Arian Salamat Sina Co. 10104090275 10,263 0 0 0 0 09.02.2016 14,040 607 06.01.2016 48 Controlled Arian Salamat Sina Co. 10104090275 25,641 0 0 0 0 10.02.2016 72,636 607 06.01.2016 Sarasari Golrang Tarabar 49 Controlled 10320865404 0 0 2,000 1,800 0 06.03.2016 8,360 600 08.09.2015 Transportation Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Board of Directors’ Large Facilities & Commitments Balance Approval Net Facilities – IRR Commitments Total Common Million – IRR Million Facilities/ Type of National No. Beneficiary Customer Shares Commitments Relationship Code/ID Value Group Net Cost plus Shares Net Granting Date – IRR No. Date Non- – IRR Cost Current Gross Net (3) Million Current Million (Common (1) (2) Beneficiary Group) SarasariGolrangTarabar 50 Controlled 10320865404 40,434 0 0 0 0 02.03.2016 116,210 607 06.01.2016 Transportation 51 Controlled Varian Farmad Co. 10104021070 0 0 1,950 1,755 0 24.04.2014 4,212 553 20.02.2014 52 Controlled Varian Farmad Co. 10104021070 10,060 0 0 0 0 10.03.2016 29,040 607 06.03.2016 53 Controlled PadidehShimi Jam Co. 10320156936 80,193 0 0 0 0 16.03.2016 234,200 - 06.03.2016 54 Controlled Irandar Co. 10100307570 22,078 0 0 0 0 14.10.2015 58,680 600 08.09.2015 55 Controlled Irandar Co. 10100307570 30,769 0 0 0 0 10.02.2016 43,010 607 06.03.2016 56 Controlled Irandar Co. 10100307570 20,121 0 0 0 0 10.03.2016 102,200 607 06.03.2016 57 Controlled FaranShimiToyserkan 10820019485 11,098 0 0 0 0 05.10.2015 51,840 600 08.09.2015 58 Controlled FaranShimiToyserkan 10820019485 16,647 0 0 0 0 05.10.2015 21,510 600 08.09.2015 59 Controlled FaranShimiToyserkan 10820019485 10,947 0 0 0 0 28.10.2015 36,840 600 08.09.2015 60 Controlled FaranShimiToyserkan 10820019485 5,473 0 0 0 0 28.10.2015 7,170 600 08.09.2015 61 Controlled FaranShimiToyserkan 10820019485 80,145 0 0 0 0 17.03.2016 235,000 607 06.01.2016 62 Controlled Arian LianPakhsh 10103919133 22,288 0 0 0 0 28.09.2015 28,680 600 08.09.2015 63 Controlled Arian LianPakhsh 10103919133 20,229 0 0 0 0 01.03.2016 103,200 607 06.01.2016 64 Controlled Arian LianPakhsh 10103919133 50,301 0 0 0 0 10.03.2016 220,320 607 06.01.2016 65 Controlled Arian TejaratShargh 10102560555 0 0 889 800 0 18.08.2015 1,049 591 05.05.2015 66 Controlled Arian TejaratShargh 10102560555 0 0 988 889 0 30.01.2016 1,166 600 08.09.2015 67 Controlled Arian TejaratShargh 10102560555 0 0 287 258 0 18.05.2016 311 591 05.05.2015 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Board of Directors’ Large Facilities & Commitments Balance Approval Net Facilities – IRR Commitments Total Facilities/ Common Type of National Million – IRR Million Commitments No. Beneficiary Customer Shares Relationship Code/ID plus Shares Value Group Net Cost Net Granting Date Cost – IRR No. Date Non- – IRR Current Gross Net (3) (Common Million Current Million (1) Beneficiary (2) Group) 68 Controlled Arian Tejarat Shargh 10102560555 0 0 356 320 0 09.06.2015 384 591 05.05.2015 69 Controlled Arian Tejarat Shargh 10102560555 0 0 395 355 0 12.01.2016 467 600 08.09.2015 70 Controlled Padideh Shimi Gharb Co. 10320850044 25,060 0 0 0 0 16.03.2016 73,400 607 06.01.2016 71 Controlled Arian Tejarat Mana Co. 10320794166 10,084 0 0 0 0 06.03.2016 29,052 607 06.01.2016 Golrang Controlled 72 Padideh Shimi Gharn Co. 10320217477 54,011 0 0 0 0 19.11.2015 146,700 600 08.09.2015
73 Controlled Padideh Shimi Gharn Co. 10320217477 67,094 0 0 0 0 31.01.2016 189,400 607 06.01.2016 74 Controlled Padideh Shimi Gharn Co. 10320217477 25,526 0 0 0 0 17.02.2016 72,640 607 06.01.2016 75 Controlled Foolad Zarand Iranian 10103754436 643,435 22,984 0 0 0 04.02.2015 777,000 580 19.01.2015 76 Controlled Foolad Zarand Iranian 10103754436 222,093 0 0 0 0 04.10.2015 850,000 595 24.06.2015 77 Pasargad Controlled Foolad Sirjan Iranian Co. 10104088225 497,223 11,678 0 0 0 18.02.2015 1,894,427 777,000 580 19.01.2015 78 Controlled Foolad Sirjan Iranian Co. 10104088225 219,726 0 0 0 0 22.10.2015 810,000 595 24.06.2015 79 Controlled Pars Arian Investment 10102347321 277,388 0 0 0 0 06.10.2015 336,000 601 29.09.2015 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Board of Directors’ Large Facilities & Commitments Balance Approval Net Facilities – IRR Commitments Total Facilities/ Common Type of National Million – IRR Million Commitments No. Beneficiary Customer Shares Relationship Code/ID plus Shares Value Group Net Cost Net Granting Date Cost – IRR No. Date Non- – IRR Current Gross Net (3) (Common Million Current Million (1) Beneficiary (2) Group) Darou Pakhsh Pharmaceutical 80 Controlled 10101725563 24,189 43 0 0 0 04.05.2015 130,000 583 25.02.2015 Chemical Co. Darou Pakhsh Pharmaceutical 81 Controlled 10101725563 79,137 102 0 0 0 06.02.2015 83,550 583 25.02.2015 Chemical Co. Darou Pakhsh Veterinary Drugs 82 Controlled 10200110859 35,464 0 0 0 0 27.02.2016 50,660 608 19.01.2016 Distribution Co. 83 Controlled AbouReyhan Pharmaceutical Co. 10100402567 118,702 0 0 0 0 20.12.2015 404,440 591 05.02.2015 84 Controlled Abou Reyhan Pharmaceutical Co. 10100402567 116,492 0 0 0 0 19.01.2016 391,440 591 05.02.2015 85 Controlled Pars Darou Co. 10100336986 166,940 0 0 0 0 17.02.2016 834,715 591 05.02.2015 86 Controlled Pars Darou Co. 10100336986 280,850 0 0 0 0 06.03.2016 1,003,965 591 05.02.2015 87 Controlled Razak Laboratories Co. 10860385410 5,758 0 0 0 0 25.03.2015 70,000 579 30.12.2014 88 Controlled Razak Laboratories Co. 10860385410 5,713 0 0 0 0 04.04.2015 70,000 579 30.12.2014 89 Controlled Razak Laboratories Co. 10860385410 5,646 0 0 0 0 22.04.2015 20,000 579 30.12.2014 90 Darou Pakhsh Controlled Razak Laboratories Co. 10860385410 17,027 0 0 0 0 29.04.2015 105,000 579 30.12.2014 Pharmaceutical 91 Group Controlled Razak Laboratories Co. 10860385410 16,762 0 0 0 0 20.05.2015 105,000 579 30.12.2014 92 Controlled Razak Laboratories Co. 10860385410 16,588 0 0 0 0 31.05.2015 76,000 579 30.12.2014 93 Controlled Razak Laboratories Co. 10860385410 16,373 0 0 0 0 20.05.2015 76,000 579 30.12.2014 94 Controlled Razak Laboratories Co. 10860385410 17,778 0 0 0 0 13.07.2015 79,000 579 30.12.2014 95 Controlled Razak Laboratories Co. 10860385410 26,166 0 0 0 0 31.08.2015 91,950 579 30.12.2014 96 Controlled Razak Laboratories Co. 10860385410 8,154 0 0 0 0 16.09.2015 28,820 579 30.12.2014 97 Controlled Razak Laboratories Co. 10860385410 50,839 0 0 0 0 12.10.2015 68,900 579 30.12.2014 98 Controlled Razak Laboratories Co. 10860385410 41,623 0 0 0 0 27.10.2015 57,300 579 30.12.2014 99 Controlled Razak Laboratories Co. 10860385410 34,820 0 0 0 0 07.11.2015 48,000 579 30.12.2014 100 Controlled Razak Laboratories Co. 10860385410 24,906 0 0 0 0 15.11.2015 34,450 579 30.12.2014 101 Controlled Razak Laboratories Co. 10860385410 22,533 0 0 0 0 30.11.2015 31,350 579 30.12.2014 102 Controlled Razak Laboratories Co. 10860385410 41,513 0 0 0 0 13.12.2015 58,350 579 30.12.2014 103 Controlled Razak Laboratories Co. 10860385410 79,192 0 0 0 0 26.12.2015 112,050 605 08.12.2015 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Board of Directors’ Large Facilities & Commitments Balance Approval Net Facilities – IRR Commitments Total Million – IRR Million Facilities/ Common Type of National Commitments No. Beneficiary Customer Shares Relationship Code/ID plus Shares Value Group Net Cost Net Granting Date Cost – IRR No. Date Non- – IRR Current Gross Net (3) (Common Million Current Million (1) Beneficiary (2) Group) 3,124,493
Darou Pakhsh 104 Pharmaceutical Controlled Razak Laboratories Co. 10860385410 58,038 0 0 0 0 27.12.2015 82,250 605 08.12.2015 Group 105 Controlled Razak Laboratories Co. 10860385410 52,663 0 0 0 0 30.12.2015 74,700 605 08.12.2015 106 Controlled Razak Laboratories Co. 10860385410 35,408 0 0 0 0 17.01.2016 51,100 605 08.12.2015 107 Controlled Razak Laboratories Co. 10860385410 45,331 0 0 0 0 03.02.2016 66,600 605 08.12.2015 108 Controlled Razak Laboratories Co. 10860385410 45,769 0 0 0 0 23.02.2016 67,250 605 08.12.2015 109 Controlled Razak Laboratories Co. 10860385410 0 0 5 4 0 18.03.2015 1,150 554 04.03.2014 110 Controlled Razak Laboratories Co. 10860385410 0 0 8,137 5,696 0 18.10.2015 7,000 554 04.03.2014 111 Controlled Razak Laboratories Co. 10860385410 0 0 16,263 11,384 0 18.10.2015 14,000 554 04.03.2014 112 Controlled Razak Laboratories Co. 10860385410 0 0 4,871 3,410 0 10.09.2015 4,150 554 04.03.2014 113 Controlled Razak Laboratories Co. 10860385410 40,362 0 0 0 0 05.03.2016 60,000 605 08.12.2015 114 Controlled Farabi Pharmaceutical Co. 10260279270 17,003 0 0 0 0 25.04.2015 553,600 591 05.05.2015 115 Controlled Farabi Pharmaceutical Co. 10260279270 18,651 0 0 0 0 12.05.2015 115,000 591 05.05.2015 116 Controlled Farabi Pharmaceutical Co. 10260279270 21,997 0 0 0 0 08.06.2015 98,800 591 05.05.2015 117 Controlled Farabi Pharmaceutical Co. 10260279270 18,202 0 0 0 0 05.07.2015 57,000 591 05.05.2015 118 Controlled Rah Avard Ta’amin Pharmaceutical 10102745549 3,567 0 0 0 0 07.09.2015 12,530 579 30.12.2015 119 Controlled Rah Avard Ta’amin Pharmaceutical 10102745549 3,567 0 0 0 0 07.09.2015 12,530 579 30.12.2015 120 Controlled Rah Avard Ta’amin Pharmaceutical 10102745549 3,565 0 0 0 0 08.09.2015 12,530 579 30.12.2015 121 Controlled Rah Avard Ta’amin Pharmaceutical 10102745549 3,565 0 0 0 0 08.09.2015 12,530 579 30.12.2015 122 Controlled Rah Avard Ta’amin Pharmaceutical 10102745549 7,056 0 0 0 0 24.10.2015 3,124,493 11,400 579 30.12.2015 123 Controlled Rah Avard Ta’amin Pharmaceutical 10102745549 7,056 0 0 0 0 24.10.2015 11,400 579 30.12.2015 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Board of Directors’ Large Facilities & Commitments Balance Approval Net Facilities – IRR Commitments Total Million – IRR Million Facilities/ Common Type of National Commitments No. Beneficiary Customer Shares Relationship Code/ID plus Shares Value Group Net Cost Net Granting Date Cost – IRR No. Date Non- – IRR Current Gross Net (3) (Common Million Current Million (1) Beneficiary (2) Group) 3,124,493 124 Controlled Rah Avard Ta’amin Pharmaceutical 10102745549 7,056 0 0 0 0 24.10.2015 11,400 579 30.12.2015 125 Controlled Rah Avard Ta’amin Pharmaceutical 10102745549 6,350 0 0 0 0 24.10.2015 10,300 579 30.12.2015 126 Controlled Rah Avard Ta’amin Pharmaceutical 10102745549 5,460 0 0 0 0 01.11.2015 6,750 579 30.12.2015 127 Controlled Rah Avard Ta’amin Pharmaceutical 10102745549 8,615 0 0 0 0 24.11.2015 11,943 579 30.12.2015 128 Controlled Rah Avard Ta’amin Pharmaceutical 10102745549 14,644 0 0 0 0 10.01.2016 18,900 606 22.12.2015 129 Controlled Rah AvardTa’amin Pharmaceutical 10102745549 14,635 0 0 0 0 11.01.2016 18,900 606 22.12.2015 130 Controlled Rah Avard Ta’amin Pharmaceutical 10102745549 10,078 0 0 0 0 07.03.2016 13,350 606 22.12.2015 131 Controlled Caspian Ta’amin Pharmaceutical Co. 10100929813 3,850 6 0 0 0 19.03.2014 55,500 565 01.07.2014 132 Controlled Caspian Ta’amin Pharmaceutical Co. 10100929813 53,917 0 0 0 0 26.08.2015 145,000 598 29.07.2015 133 Controlled Caspian Ta’amin Pharmaceutical Co. 10100929813 102,125 15 0 0 0 17.02.2016 145,000 598 29.07.2015 134 Controlled Caspian Ta’amin Pharmaceutical Co. 10100929813 35,332 0 0 0 0 05.03.2016 49,950 598 29.07.2015 Zagros Farmad Pars Pharmaceutical 135 Controlled 10740034217 1,925 78 0 0 0 26.01.2015 23,200 578 16.12.2014 Co. Zagros Farmad Pars Pharmaceutical 136 Controlled 10740034217 963 33 0 0 0 03.02.2014 11,552 578 16.12.2014 Co. Zagros Farmad Pars Pharmaceutical 137 Controlled 10740034217 9,624 145 0 0 0 10.03.2014 57,800 578 16.12.2014 Co. Zagros Farmad Pars Pharmaceutical 138 Controlled 10740034217 19,027 203 0 0 0 07.05.2015 57,800 591 05.05.2015 Co. Zagros Farmad Pars Pharmaceutical 139 Controlled 10740034217 18,937 109 0 0 0 21.05.2015 57,800 591 05.05.2015 Co. Zagros Farmad Pars Pharmaceutical 140 Controlled 10740034217 13,911 73 0 0 0 10.06.2015 37,100 591 05.05.2015 Co. Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Board of Directors’ Large Facilities & Commitments Balance Approval Net Facilities – IRR Commitments Total Common Million – IRR Million Facilities/ Type of National No. Beneficiary Customer Shares Commitments Relationship Code/ID Value Group Net Cost plus Shares Net Granting Date – IRR No. Date Non- – IRR Cost Current Gross Net (3) Million Current Million (Common (1) (2) Beneficiary Group) 141 Controlled Zagros Farmad Pars Pharmaceutical Co. 10740034217 11,559 50 0 0 0 17.06.2015 31,000 591 05.05.2015 142 Controlled Zagros Farmad Pars Pharmaceutical Co. 10740034217 5,010 26 0 0 0 11.07.2015 12,800 591 05.05.2015 143 Controlled Zagros Farmad Pars Pharmaceutical Co. 10740034217 19,156 101 0 0 0 09.08.2015 36,700 591 05.05.2015 144 Controlled Zagros Farmad Pars Pharmaceutical Co. 10740034217 6,352 19 0 0 0 19.08.2015 12,300 591 05.05.2015 145 Controlled Zagros Farmad Pars Pharmaceutical Co. 10740034217 65,315 381 0 0 0 02.09.2015 110,300 591 05.05.2015 146 Controlled Zagros Farmad Pars Pharmaceutical Co. 10740034217 21,684 97 0 0 0 10.09.2015 36,800 591 05.05.2015 147 Controlled Zagros Farmad Pars Pharmaceutical Co. 10740034217 68,560 468 0 0 0 27.10.2015 98,200 591 05.05.2015 148 Controlled Zagros Farmad Pars Pharmaceutical Co. 10740034217 18,825 116 0 0 0 30.11.2015 23,900 591 05.05.2015 149 Controlled Zagros Farmad Pars Pharmaceutical Co. 10740034217 18,815 113 0 0 0 01.12.2015 23,900 591 05.05.2015 150 Controlled Zagros Farmad Pars Pharmaceutical Co. 10740034217 18,815 113 0 0 0 01.12.2015 23,900 591 05.05.2015 151 Controlled Zagros Farmad Pars Pharmaceutical Co. 10740034217 14,076 73 0 0 06.12.2015 17,950 591 05.05.2015 152 Controlled Zagros Farmad Pars Pharmaceutical Co. 10740034217 18,644 50 0 0 0 19.12.2015 23,900 591 05.05.2015 153 Darou Pakhsh Controlled Zagros Farmad Pars Pharmaceutical Co. 10740034217 31,336 151 0 0 0 07.01.2016 35,700 591 05.05.2015 Pharmaceutical 154 Group Controlled Zagros Farmad Pars Pharmaceutical Co. 10740034217 20,827 79 0 0 0 13.01.2016 624,800 591 05.05.2015 155 Controlled Zagros Farmad Pars Pharmaceutical Co. 10740034217 25,126 0 0 0 0 13.03.2016 29,100 591 05.05.2015 156 Controlled Darou Pakhsh Factories 10101823437 63,077 0 0 0 0 02.01.2016 81,200 596 07.07.2015 157 Controlled Darou Pakhsh Factories 10101823437 91,479 0 0 0 0 24.02.2016 121,000 596 07.07.2015 158 Controlled Darou Pakhsh Factories 10101823437 60,398 0 0 0 0 09.03.2016 80,720 596 07.07.2015 159 Controlled Darou Pakhsh Factories 10101823437 100,663 0 0 0 0 09.03.2016 134,520 596 07.07.2015 160 Controlled Darou Pakhsh Factories 10101823437 30,199 0 0 0 0 09.03.2016 40,360 596 07.07.2015 161 Controlled Darou Pakhsh Factories 10101823437 18,623 0 0 0 0 09.03.2016 26,760 596 07.07.2015 162 Controlled Darou Pakhsh Factories 10101823437 40,121 0 0 0 0 15.03.2016 53,810 596 07.07.2015 163 Controlled Exir Pharmaceutical 10100999659 -3,655 0 0 0 0 20.09.2015 209,000 592 19.05.2015 164 Controlled Exir Pharmaceutical 10100999659 102,301 0 0 0 0 14.02.2016 135,000 592 19.05.2015 165 Controlled Exir Pharmaceutical 10100999659 126,301 0 0 0 0 25.02.2016 167,940 592 19.05.2015 166 Controlled Exir Pharmaceutical 10100999659 155,581 0 0 0 0 17.03.2016 209,530 592 19.05.2015 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Board of Directors’ Large Facilities & Commitments Balance Approval Net Facilities – IRR Commitments Total Common Million – IRR Million Facilities/ Type of National No. Beneficiary Customer Shares Commitments Relationship Code/ID Value Group Net Cost plus Shares Net Granting Date – IRR No. Date Non- – IRR Cost Current Gross Net (3) Million Current Million (Common (1) (2) Beneficiary Group) 167 Controlled Iran Telecommunication Co. 10103647290 0 0 120,000 120,000 3,703 26.12.2015 193,895 - - 168 Controlled Tose’e Etemad Mobin Co. 10104078410 153,551 0 0 0 6,228,413 13.02.2016 475,633 606 22.12.2015 169 Iran Controlled Tose’e Etemad Mobin Co. 10104078410 1,019,726 0 0 0 19.02.2016 1,910,000 611 01.03.2016 9,303,088 Telecommunication West Azerbaijan Province 170 Controlled 10220144470 20,386 4 0 0 0 16.02.2016 43,700 - - Telecommunication 171 Controlled Shahriar Mahestan Co. 10103045588 1,795,585 57,720 0 0 0 17.03.2015 5,674,108 580 19.01.2015 172 Independent Foolad Mobarakeh Isfahan Co. 10260289464 378,997 0 0 0 15,497 15.11.2015 501,500 581 31.01.2015 173 Foolad Ownership Foolad Mobarakeh Isfahan Co. 10260289464 529,589 696 0 0 19.12.2015 695,000 581 31.01.2015 Mobarakeh 2,515,990 174 Isfahan Co. Ownership Foolad Mobarakeh Isfahan Co. 10260289464 527,288 0 0 0 28.12.2015 695,000 581 31.01.2015 175 Ownership FooladMobarakeh Isfahan Co. 10260289464 1,064,923 0 0 0 27.02.2016 1,444,500 609 02.02.2016 176 Ownership Shiraz Petrochemical Co. 10530010025 1,004,822 0 0 0 25,358 12.03.2016 1,371,100 604 24.11.2015 Ghadir Investment 2,921,076 25.02.2015 177 Independent Ghadir Investment 10101306234 1,598,947 0 0 0 27,356 29.04.2015 4,095,750 583 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Board of Directors’ Large Facilities & Commitments Balance Approval Net Facilities – IRR Commitments Total Common Million – IRR Million Facilities/ Type of National No. Beneficiary Customer Commitments Relationship Code/ID Shares Value Group Net Granting plus Shares Net Cost – IRR – IRR No. Date Non- Date Cost Current Gross Net (3) Million Million Current (Common (1) (2) Beneficiary Group) 178 Ghadir Investment Independent Ghadir Investment 10101306234 264,593 0 0 0 04.01.2016 666,871 604 24.11.2015 179 Ownership Pakhsh Razi Co. 10100984191 4,813 36 0 0 0 11.03.2015 60,000 576 19.11.2014 180 Ownership Pakhsh Razi Co. 10100984191 19,118 80 0 0 0 08.04.2015 120,000 576 19.11.2014 181 Ownership Pakhsh Razi Co. 10100984191 28,648 203 0 0 0 22.04.2015 120,000 576 19.11.2014 182 Ownership Pakhsh Razi Co. 10100984191 28,545 152 0 0 0 29.04.2015 120,000 576 19.11.2014 183 Ownership Pakhsh Razi Co. 10100984191 8,475 2 0 0 0 19.05.2015 36,000 576 19.11.2014 184 Ownership Pakhsh Razi Co. 10100984191 22,238 67 0 0 0 02.06.2015 76,000 576 19.11.2014 185 Ownership Pakhsh Razi Co. 10100984191 25,993 66 0 0 0 06.07.2015 85,200 576 19.11.2014 186 Ownership Pakhsh Razi Co. 10100984191 22,597 80 0 0 0 10.08.2015 110,800 576 19.11.2014 187 Ownership Pakhsh Razi Co. 10100984191 100,759 0 0 0 0 08.03.2016 126,000 607 06.01.2016 188 Ownership Osveh Pharmaceutical Co. 10861651780 18,870 0 0 0 0 26.08.2015 45,250 596 07.07.2015 189 Ownership Osveh Pharmaceutical Co. 10861651780 46,799 0 0 0 0 26.08.2015 135,750 596 07.07.2015 190 Ownership Osveh Pharmaceutical Co. 10861651780 15,901 0 0 0 0 20.09.2015 38,700 596 07.07.2015 191 Ownership Osveh Pharmaceutical Co. 10861651780 31,802 0 0 0 0 20.09.2015 77,200 596 07.07.2015 192 Ownership Osveh Pharmaceutical Co. 10861651780 41,734 0 0 0 0 15.11.2015 77,100 596 07.07.2015
193 ShafaDarou Ownership Osveh Pharmaceutical Co. 10861651780 76,511 0 0 0 0 15.11.2015 141,500 596 07.07.2015 Investment 194 Ownership Osveh Pharmaceutical Co. 10861651780 89,820 0 0 0 0 24.12.2015 155,000 596 07.07.2015 195 Ownership Osveh Pharmaceutical Co. 10861651780 25,365 0 0 0 0 31.12.2015 28,220 596 07.07.2015 196 Ownership Osveh Pharmaceutical Co. 10861651780 90,797 0 0 0 0 06.03.2016 112,100 596 07.07.2015 197 Ownership Osveh Pharmaceutical Co. 10861651780 17,401 0 0 0 0 28.07.2015 49,220 596 07.07.2015 Kimi Darou Industrial Public Joint 198 Ownership 10861834398 12,188 5 0 0 0 20.04.2015 80,000 582 04.02.2015 Stock Co. Kimi Darou Industrial Public Joint 199 Ownership 10861824398 18,159 0 0 0 0 26.08.2015 85,052 582 04.02.2015 Stock Co. Kimi Darou Industrial Public Joint 200 Ownership 10861824398 7,120 1 0 0 0 22.09.2015 17,710 582 04.02.2015 Stock Co. Kimi Darou Industrial Public Joint 201 Ownership 10861824398 10,799 1 0 0 0 21.10.2015 30,400 582 04.02.2015 Stock Co. Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Board of Directors’ Large Facilities & Commitments Balance Approval Net Facilities – IRR Commitments Total Common Million – IRR Million Facilities/ Type of National No. Beneficiary Customer Commitments Relationship Code/ID Shares Value Group Net Granting plus Shares Net Cost – IRR – IRR No. Date Non- Date Cost Current Gross Net (3) Million Million Current (Common (1) (2) Beneficiary Group) Kimi Darou Industrial Public Joint 202 Ownership 10861824398 11,044 3 0 0 0 18.11.2015 1,414,621 19,250 582 04.02.2015 Stock Co. Kimi Darou Industrial Public Joint 203 Ownership 10861824398 12,423 14 0 0 0 21.12.2015 19,175 582 04.02.2015 Stock Co. Kimi Darou Industrial Public Joint 204 Ownership 10861824398 17,130 47 0 0 0 19.01.2016 22,475 582 04.02.2015 Stock Co. Kimi Darou Industrial Public Joint 205 Ownership 10861824398 25,649 25 0 0 0 09.02.2016 31,750 610 16.02.2016 Stock Co. Kimi Darou Industrial Public Joint 206 Ownership 10861824398 37,117 0 0 0 0 15.03.2016 47,700 610 16.02.2016 Stock Co. 207 Ownership Ramopharmin Co. 10100502354 27,609 0 0 0 0 02.06.2015 413,480 592 19.05.2015 208 Ownership Ramopharmin Co. 10100502354 17,578 0 0 0 0 22.10.2015 21,410 592 19.05.2015 209 Ownership Ramopharmin Co. 10100502354 53,532 0 0 0 0 20.01.2016 74,370 592 19.05.2015 210 Ownership Ramopharmin Co. 10100502354 44,408 0 0 0 0 28.01.2016 62,294 592 19.05.2015 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Board of Directors’ Large Facilities & Commitments Balance Approval Net Facilities – IRR Commitments Total Facilities/ Common Type of National Million – IRR Million Commitments No. Beneficiary Customer Relationship Code/ID Shares plus Shares Value Group Net Granting Net Cost – IRR Cost – IRR No. Date Non- Date Current Gross Net (3) Million (Common Million Current (1) Beneficiary (2) Group) 211 Ownership Ramopharmin Co. 10100502354 6,641 0 0 0 0 16.02.2016 9,390 592 19.05.2015 212 Ownership Ramopharmin Co. 10100502354 31,413 0 0 0 0 14.03.2016 45,130 592 19.05.2015 Jabber-ibn-Hayyan Pharmaceutical 213 Ownership 10100339921 4,812 185 0 0 3,878 29.01.2015 58,000 566 22.07.2014 Co. Jabber-ibn-Hayyan Pharmaceutical 214 Ownership 10100339921 2,214 58 0 0 14.02.2015 29,000 566 22.07.2014 Co. Jabber-ibn-Hayyan Pharmaceutical 215 Ownership 10100339921 2,888 41 0 0 0 17.03.2015 21,000 566 22.07.2014 Co. Jabber-ibn-Hayyan Pharmaceutical 216 Ownership 10100339921 4,962 161 0 0 22.04.2015 28,000 566 22.07.2014 Co. Jabber-ibn-Hayyan Pharmaceutical 217 Ownership 10100339921 6,058 137 0 0 05.05.2015 30,600 566 22.07.2014 Co. Jabber-ibn-Hayyan Pharmaceutical 218 Ownership 10100339921 8,331 93 0 0 18.06.2015 40,900 566 22.07.2014 Co. Shafa Darou Jabber-ibn-Hayyan Pharmaceutical 219 Ownership 10100339921 3,276 65 0 0 20.06.2015 28,800 566 22.07.2014 Investment Co. Jabber-ibn-Hayyan Pharmaceutical 220 Ownership 10100339921 1,447 26 0 0 09.07.2015 8,595 566 22.07.2014 Co. Jabber-ibn-Hayyan Pharmaceutical 221 Ownership 10100339921 95,108 375 0 0 15.09.2015 148,750 599 18.08.2015 Co. Jabber-ibn-Hayyan Pharmaceutical 222 Ownership 10100339921 9,728 34 0 0 16.09.2015 17,345 599 18.08.2015 Co. Jabber-ibn-Hayyan Pharmaceutical 223 Ownership 10100339921 8,914 51 0 0 30.09.2015 14,250 599 18.08.2015 Co. Jabber-ibn-Hayyan Pharmaceutical 224 Ownership 10100339921 77,349 0 0 0 05.11.2015 121,300 599 18.08.2015 Co. Jabber-ibn-Hayyan Pharmaceutical 225 Ownership 10100339921 47,038 0 0 0 06.12.2015 65,000 599 18.08.2015 Co. Jabber-ibn-Hayyan Pharmaceutical 226 Ownership 10100339921 77,614 0 0 0 27.01.2016 108,330 599 18.08.2015 Co. Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Board of Directors’ Large Facilities & Commitments Balance Approval Net Facilities – IRR Commitments Total Facilities/ Common Type of National Million – IRR Million Commitments No. Beneficiary Customer Relationship Code/ID Shares plus Shares Value Group Net Granting Net Cost – IRR Cost – IRR No. Date Non- Date Current Gross Net (3) Million (Common Million Current (1) Beneficiary (2) Group) 227 Ownership Tose’e Energy Tadbir Group Co. 10103669614 480,773 0. 0 0 0 07.12.2015 675,000 601 29.09.2015 228 Ownership Tose’e Haffari Tadbir Co. 10320816650 324,263 0 0 0 0 18.11.2015 447,608 602 19.10.2015 229 Ownership Tose’e Haffari Tadbir Co. 10320816650 212,099 0 0 0 0 19.12.2015 298,563 602 19.10.2015 230 Controlled Pars Oil Co. 10100302746 0 0 38 34 0 30.06.2015 41 566 22.07.2014 231 Controlled Pars Oil Co. 10100302746 0 0 2,017 1,815 0 07.01.2015 2,179 566 22.07.2014 232 Controlled Pars Oil Co. 10100302746 0 0 3,070 2,763 0 31.01.2015 3,316 566 22.07.2014 233 Controlled Pars Oil Co. 10100302746 0 0 1,200 1,080 0 02.03.2013 1,296 490 31.05.2011 234 Controlled Pars Oil Co. 10100302746 0 0 2,058 1,852 0 07.01.2015 2,223 566 22.07.2014 235 Controlled Pars Oil Co. 10100302746 0 0 1,535 1,382 0 31.01.2015 1,658 566 22.07.2014 236 Tose’e Energy Controlled Pars Oil Co. 10100302746 0 0 723 651 0 25.05.2015 781 566 22.07.2014 Tadbir (Setad 237 Ejraee Farman Controlled Pars Oil Co. 10100302746 0 0 883 795 0 05.04.2015 954 566 22.07.2014 Hazrat Imam 238 Holding) Controlled Pars Oil Co. 10100302746 0 0 1,874 1,687 0 11.04.2015 2,025 566 22.07.2014 239 Controlled Pars Oil Co. 10100302746 0 0 588 529 0 29.04.2015 635 566 22.07.2014 240 Controlled Pars Oil Co. 10100302746 0 0 785 706 0 29.04.2015 848 566 22.07.2014 241 Controlled Pars Oil Co. 10100302746 0 0 395 356 0 29.04.2015 426 566 22.07.2014 1,431,504 242 Controlled Pars Oil Co. 10100302746 0 0 859 772 0 29.04.2015 928 566 22.07.2014 243 Controlled Pars Oil Co. 10100302746 0 0 19,688 13,782 0 14.02.2015 16,000 598 29.07.2015 244 Controlled Pars Oil Co. 10100302746 0 0 7,793 5,455 0 29.02.2016 6,234 598 29.07.2015 245 Controlled Pars Oil Co. 10100302746 0 0 1,321 1,321 0 02.06.2015 57,000 566 22.07.2014 246 Controlled Pars Oil Co. 10100302746 200,723 0 0 0 0 14.03.2016 267,000 598 29.07.2015 247 Controlled Pars Oil Co. 10100302746 200,482 0 0 0 0 16.03.2016 267,000 598 29.07.2015 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Board of Directors’ Large Facilities & Commitments Balance Approval Net Facilities Common Commitments – IRR Million Total Facilities/ Type of National – IRR Commitments No. Beneficiary Customer Shares Value Relationship Code/ID Million Granting plus Shares Group Cost – IRR – IRR No. Date Net Date Cost (Common Net Million Million Non- Beneficiary Current Gross Net (3) Current Group) (1) (2) 248 Ownership Pakhsh Alborz Co. 10100664423 6,487 98 0 0 0 01.03.2015 82,000 576 19.11.2014 249 Ownership Pakhsh Alborz Co. 10100664423 18,239 320 0 0 0 10.03.2015 120,000 576 19.11.2014 250 Ownership Pakhsh Alborz Co. 10100664423 27,388 211 0 0 0 15.04.2015 120,000 576 19.11.2014 251 Ownership Pakhsh Alborz Co. 10100664423 27,778 160 0 0 0 26.04.2015 120,000 576 19.11.2014 252 Ownership Pakhsh Alborz Co. 10100664423 72,430 525 0 0 0 10.05.2015 240,000 576 19.11.2014 253 Ownership Pakhsh Alborz Co. 10100664423 65,779 275 0 0 0 24.06.2015 208,750 576 19.11.2014 254 Ownership Pakhsh Alborz Co. 10100664423 91,937 575 0 0 0 05.09.2015 194,400 576 19.11.2014 255 Ownership Pakhsh Alborz Co. 10100664423 258,220 3,566 0 0 0 30.11.2015 424,300 576 19.11.2014 256 Ownership Pakhsh Alborz Co. 10100664423 594,660 0 0 0 0 28.01.2016 777,750 608 19.01.2016 257 Ownership KBC 10861220664 0 0 43,500 39,150 0 01.03.2016 46,980 606 22.12.2015 258 Ownership KBC 10861220664 0 0 3,960 3,564 0 01.03.2016 4,277 606 22.12.2015 259 Ownership KBC 10861220664 253,586 0 0 0 0 03.03.2016 561,235 606 22.12.2015 260 Ownership KBC 10861220664 70,211 0 0 0 0 15.03.2016 98,916 606 22.12.2015 261 Ownership Barekat Pharmaceutical Co. 10320275643 253,392 0 0 0 0 07.04.2015 297,210 585 15.03.2015 262 Ownership Barekat Pharmaceutical Co. 10320275643 100,663 0 0 0 0 09.03.2016 2,304,000 585 15.03.2015 263 Ownership Barekat Pharmaceutical Co. 10320275643 100,241 0 0 0 0 16.03.2016 134,000 585 15.03.2015 Barekat 264 Pharmaceutical Ownership Sobhan Oncology Pharmaceutical Co. 10102350203 63,827 0 0 0 0 14.12.2015 186,000 602 17.04.2015 (Setad Ejraee 265 Ownership Sobhan Darou Co. 10102402553 31,211 0 0 0 0 23.09.2015 61,300 599 18.08.2015 Farman Hazrat 266 Imam Holding) Ownership Sobhan Darou Co. 10102402553 18,664 0 0 0 0 28.09.2015 37,700 599 18.08.2015 267 Ownership Sobhan Darou Co. 10102402553 30,789 0 0 0 0 13.10.2015 61,300 599 18.08.2015 2,678,073 268 Ownership Sobhan Darou Co. 10102402553 21,111 0 0 0 0 29.10.2015 36,900 599 18.08.2015 269 Ownership Sobhan Darou Co. 10102402553 20,939 0 0 0 0 10.11.2015 36,950 599 18.08.2015 270 Ownership Sobhan Darou Co. 10102402553 47,044 0 0 0 0 28.11.2015 73,500 599 18.08.2015 271 Ownership Sobhan Darou Co. 10102402553 23,283 0 0 0 0 13.02.2015 38,700 599 18.08.2015 272 Ownership Sobhan Darou Co. 10102402553 43,172 0 0 0 0 27.12.2015 61,500 599 18.08.2015 273 Ownership Sobhan Darou Co. 10102402553 42,967 0 0 0 0 03.01.2016 61,500 599 18.08.2015 274 Ownership Sobhan Darou Co. 10102402553 23,898 0 0 0 0 13.01.2016 34,520 599 18.08.2015 Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Board of Directors’ Large Facilities & Commitments Balance Approval Net Facilities Common Commitments – IRR Million Total Facilities/ Type of National – IRR Commitments No. Beneficiary Customer Shares Value Relationship Code/ID Million Granting plus Shares Group Cost – IRR – IRR No. Date Net Date Cost (Common Net Million Million Non- Beneficiary Current Gross Net (3) Current Group) (1) (2) 275 Ownership Sobhan Darou Co. 10102402553 34,023 0 0 0 0 18.01.2016 49,600 599 18.08.2015 276 Ownership Sobhan Darou Co. 10102402553 50,862 0 0 0 0 24.02.2016 601,000 599 18.08.2015 277 Ownership Sobhan Darou Co. 10102402553 55,382 0 0 0 0 09.03.2016 66,950 599 18.08.2015 278 Ownership Iran Darou Co. 10100394490 50,362 0 0 0 0 08.03.2016 71,700 599 18.08.2015 279 Ownership Tolid Darou Pharmaceutical Co. 10102901102 3,044 4 0 0 0 22.07.2015 27,230 567 05.08.2014 280 Ownership Tolid Darou Pharmaceutical Co. 10102901102 54,110 0 0 0 0 16.11.2015 139,400 602 20.10.2015 281 Ownership Tolid Darou Pharmaceutical Co. 10102901102 52,466 0 0 0 0 05.01.2016 139,431 602 20.10.2015 282 Ownership Tolid Darou Pharmaceutical Co. 10102901102 46,036 0 0 0 0 14.02.2016 126,100 602 20.10.2015 283 Ownership Tolid Darou Pharmaceutical Co. 10102901102 3,699 2 0 0 0 22.07.2015 32,740 567 05.08.2014 Alborz Balk Pharmaceutical Raw 284 Ownership 10102247441 0 5,894 0 0 0 09.02.2015 70,000 581 31.01.2015 Material Manufacturing Co. Sina Bank Notes to the Financial Statements Fiscal Year Ended 19 March 2016
Board of Directors’ Large Facilities & Commitments Balance Approval Net Facilities – IRR Commitments Total Common Million – IRR Million Facilities/ Type of National No. Beneficiary Customer Commitments Relationship Code/ID Shares Value Group Net Granting plus Shares Net Cost – IRR – IRR No. Date Non- Date Cost Current Gross Net (3) Million Million Current (Common (1) (2) Beneficiary Group) 285 Ownership Mojtama Jahan FooladSirjan Co. 10630161649 1,702,150 0 0 0 0 16.02.2016 2,126,600 607 06.01.2016 286 Ownership Petro Omid Asia Co. 10320170885 842,723 0 0 0 0 30.11.2015 4,142,230 582 25.02.2015 Omid Investment 2,568,415 Gohar Omran Sirjan Cooperative 287 Ownership 10860530016 0 23,542 0 0 0 02.07.2015 52,000 592 19.05.2015 Co. Ta’amin Barghva Ab Iran Contract 288 Controlled 10100660789 0 0 6,862 6,176 0 23.12.2015 7,000 - - Work Joint Stock Co. (Tabiran) Ta’amin BarghvaAb Iran Contract 289 Controlled 10100660789 0 0 2,784 2,506 0 21.05.2015 6,150 - - Work Joint Stock Co. (Tabiran) Ta’amin Barghva Ab Iran Contract 290 Controlled 10100660789 0 0 10,786 9,707 0 08.10.2014 23,365 - - Work Joint Stock Co. (Tabiran) 2,185,872 Ta’amin BarghvaAb Iran Contract 291 Controlled 10100660789 0 0 2,194 1,975 0 14.10.2015 5,340 - - Saba Power & Work Joint Stock Co. (Tabiran) Energy Industry Ta’amin Barghva Ab Iran Contract 292 (Bonyad Holding) Controlled 10100660789 0 0 275 247 0 14.10.2015 678 - - Work Joint Stock Co. (Tabiran) Ta’amin Barghva Ab Iran Contract 293 Controlled 10100660789 0 0 7,404 6,664 0 15.02.2016 11,810 - - Work Joint Stock Co. (Tabiran) Ta’amin Barghva Ab Iran Contract 294 Controlled 10100660789 0 0 21,222 19,850 0 18.12.2014 40,250 - - Work Joint Stock Co. (Tabiran) Ta’amin Bargh va Ab Iran Contract 295 Controlled 10320777461 1,569,455 822,948 0 0 0 18.03.2015 2,987,403 573 30.09.2014 Work Joint Stock Co. (Tabiran) Controlled 296 Tolid Nirooye Jonoob Gharb Saba 10103057702 0 0 552 552 0 23.07.2015 663 - -
Gostaresh Sanaye Ma’adani Kaveh 297 Independent 10102363443 399,337 255 0 0 0 07.11.2015 1,119,000 - - Pars Co. Controlled 298 GilanSabz Cement Industry Co 10101529281 0 0 95 85 0 04.10.2015 103 - -
Controlled Fanavaran Samik Engineering and 299 10861569320 0 0 150,000 135,000 0 28.09.2010 4,829,955 230,000 474 28.09.2010 Management Kaveh Pars Mining Industries Controlled 300 Foolad Kaveh Jonoob Kish 10861569320 0 0 113,000 101,700 0 12.12.2010 322,040 474 28.09.2010 Development Controlled 301 Foolad Kaveh Jonoob Kish 10861569320 3,144,555 363,961 0 0 0 30.04.2015 4,885,550 607 06.01.2016
Controlled 302 Foolad Kaveh Jonoob Kish 10861569320 598,236 0 0 0 0 01.06.2015 1,119,068 607 06.01.2016
30,408,315 1,767,087 38,631,908 71,990,161
57- Events after the Date of Balance Sheet There has been no event after the date of balance sheet up to the date of financial statements approval which requires adjustment.