Post on 17-Jul-2020
MICRO-LOAN ORGANIZATION “IMON” LLC
MICRO - CREDIT FUND “IMON”
FINANCIAL STATEMENTS IN ACCORDANCE WITH INTERNATIONAL FINANCIAL
REPORTING STANDARDS (IFRS) FOR THE YEAR ENDED DECEMBER 31, 2016
AND INDEPENDENT AUDITORS' REPORT
Original
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
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CONTENTS
___________________________________________________________________________________________
CONFIRMATION OF MANAGEMENT RESPONSIBILITY FOR THE FINANCIAL STATEMENTS ............ 3
INDEPENDENT AUDITORS' REPORT ................................................................................................................ 4
STATEMENT OF FINANCIAL POSITION .......................................................................................................... 6
STATEMENT OF COMPREHENSIVE INCOME ................................................................................................. 7
STATEMENT OF CASH FLOWS .......................................................................................................................... 8
STATEMENT OF CHANGES IN EQUITY ........................................................................................................... 9
NOTES TO THE FINANCIAL STATEMENTS .................................................................................................. 10
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
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STATEMENT OF MANAGEMENT RESPONSIBILITY FOR PREPARING AND APPROVING
FINANCIAL STATEMENTS, FOR THE YEAR ENDING ON DECEMBER 31, 2016
The following statement should be considered with a statement of auditor’s responsibility, which is
presented in the independent auditors’ report on page 4. This statement is prepared with a view of
distinguishing the respective responsibilities of the management and those of the independent
auditors in relation to the financial statements of Micro-Credit Fund “Imon” (hereafter called
“MCF”).
The management of the MCF is responsible for preparation of the financial statements that present
fairly the financial position, as of December 31, 2016, results of its operations, cash flows and
changes in equity for the year then ended in accordance with International Financial Reporting
Standards (“IFRS”).
In preparing the financial statements, management is responsible for:
selecting suitable accounting policies and applying them consistently;
making judgments and estimates that are reasonable and prudent;
stating whether IFRS have been followed, subject to any material departures disclosed and
explained in the financial statements; and
preparing the financial statements on a going concern basis, unless it is inappropriate to
presume that the MCF will continue in business for the foreseeable future.
Management, within its competencies, is also responsible for:
designing, implementing and maintaining an effective system of internal controls
throughout the MCF;
maintaining statutory accounting records in compliance with local legislation and
accounting standards in the respective jurisdictions in which the MCF operates;
taking steps to safeguard the assets of the MCF; and
detecting and preventing fraud and other irregularities.
The financial statements for the year ended on December 31, 2016 were approved
February 23, 2017.
On behalf of MCF “Imon”
__________________ ____________________
Pulotova Aziza Daler Davlatov
General Director Chief Accountant
INDEPENDENT AUDITOR’S REPORT
To the Shareholders and the Board of Directors of Micro-Credit Fund “Imon”.
Introduction
We have audited the separate financial statements of Limited Liability Company Micro-Credit
Fund “Imon” (the “Company”), without applying the consolidation of financial statements with its
subsidiary - Microcredit Deposit-Taking Organization “Imon International” and not taking into
consideration the investments in MDO “Imon International” under the equity method of
accounting. These financial statements comprise the statement of financial position as at December
31, 2016, and accoumpaning statement of comprehensive income, statement of changes in equity
and statement of cash flows for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management’s Responsibility for the Financial Statement
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with International Financial Reporting Standards. This responsibility includes:
designing, implementing and maintaining of the internal control relevant to the preparation and fair
presentation of the financial statements that are free from material misstatement, whether due to
fraud or error; selecting and applying appropriate accounting policies; and making accounting
estimates that are reasonable under the circumstances.
Auditors’ responsibility
Our responsibility is to express an opinion on the separate financial statements based on our audit.
We conducted our audit in accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance 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 auditors’ judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error.
Audit | Legal | Tax | Advisory www.crowehorwath.net Crowe Horwath International is a leading international organization of separate and independent accounting and consulting firms that may be licensed to use “Crowe Horwath” or “Horwath” in connection with the provision of accounting, auditing, tax, consulting or other professional services to their clients. Crowe Horwath International itself is a non-practicing entity, and does not provide professional services in its own right. Neither Crowe Horwath International nor any member is liable or responsible for the professional services performed by any other member.
Crowe Horwath - ACG Member Crowe Horwath International
45 MirzoTursunzoda street,
306 office, Business Center
“Poytaht ”, Dushanbe, Tajikistan
+ 992 (44) 640 41 41 Tel
+ 992 (44) 640 51 51 Tel
www.crowehorwath.net/tj
In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the separate financial statements present fairly, in all material respects, (or give a
true and fair view of) the financial position of the Company as at December 31, 2016, and its
financial performance and its cash flows for the year then ended in accordance with International
Financial Reporting Standards.
Rahimbek Akramov
Auditor / Managing Partner
LLC “Crowe Horwath ACG”
February 26, 2017
State license on auditing of the financial institutions in the
Republic of Tajikistan issued by the National Bank of Tajikistan,
number 0000064 on December 28, 2016
State license on performing general purpose audit activities in
Tajikistan under the number 000095 issued by the Ministry of
Finance of the Republic of Tajikistan on November 1, 2016
Qualification certificate of an auditor of the Republic of
Tajikistan, issued by the Ministry of Finance of the Republic of
Tajikistan, number 0000115 on December 4, 2013
Qualification certificate of an auditor of the Republic of
Tajikistan, issued by the National Bank of Tajikistan, number 58
on January 8, 2014
Audit | Legal | Tax | Advisory www.crowehorwath.net Crowe Horwath International is a leading international organization of separate and independent accounting and consulting firms that may be licensed to use “Crowe Horwath” or “Horwath” in connection with the provision of accounting, auditing, tax, consulting or other professional services to their clients. Crowe Horwath International itself is a non-practicing entity, and does not provide professional services in its own right. Neither Crowe Horwath International nor any member is liable or responsible for the professional services performed by any other member.
Crowe Horwath - ACG Member Crowe Horwath International
45 MirzoTursunzoda street,
306 office, Business Center
“Poytaht ”, Dushanbe, Tajikistan
+ 992 (44) 640 41 41 Tel
+ 992 (44) 640 51 51 Tel
www.crowehorwath.net/tj
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
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STATEMENT OF COMPREHENSIVE INCOME For the year ended December 31, 2016
Notes For the year ended
December 31, 2016
For the year ended
December 31, 2015
Interest Income 4.1 3 636 623 2 891 472 Interest Expense 4.1 - -
Net interest income 3 636 623 2 891 472 Expenses for bad debts
5.2 (1 729 203) (561 970)
Net income on commission fee and
services 1 907 420 2 329 502 Net income on operations with
foreign currencies
4.2 2 510 130 5 399 476 Other operating income 4.3 722 040 4 326 362 Operating expenses 4.4 (1 292 549) (1 265 932)
Profit (loss) before income tax 3 847 041 10 789 408
Corporate income tax 4.5 (1 076 283) (2 739 341)
Net profit (loss) for the period 2 770 758 8 050 067
On behalf of MCF “Imon”
__________________ ____________________
Pulotova Aziza Daler Davlatov
General Director Chief Accountant
The notes on pages 10-28 form an integral part of the financial statements. The Independent Auditors' Report is on pages 4-5.
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
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STATEMENT OF FINANCIAL POSITION
As of December 31, 2016
Notes For the year ended
December 31, 2016
For the year ended
December 31, 2015
ASSETS
Cash on hand 5.1 - 7 807
Funds in local banks 5.1 2 292 569 2 304 282
Placements with other banks 5.2 17 268 110 17 194 810
Loans to customers, net 5.3 10 528 528 11 931 971
Investment 5.4 48 384 985 48 384 985
Property, plant and equipment 5.5 308 063 186 677
Other assets 5.6 3 377 038 2 905 087
Deferred tax asset 4.5 1 557 -
Total assets
82 160 850 82 915 619
LIABILITIES
Accrued liabilities 5.7 1 071 397 2 781 021
Other liabilities
2 934
3239
Total liabilities
1 074 331 2 787 260
EQUITY
Retained earnings 5.8 31 662 251 23 901 807
General provision 5.9 46 653 510 48 210 072
Current year profit 5.8 2 770 758 8 019 480
Total of equity
81 086 519 80 131 359
Total of equity and liabilities
82 160 850 82 915 619
On behalf of MCF “Imon”
__________________ ____________________
Pulotova Aziza Daler Davlatov
General Director Chief Accountant
The notes on pages 10-28 form an integral part of the financial statements. The Independent Auditors' Report is on pages 4-5.
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
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CASH FLOWS STATEMENT For the year ended December 31, 2016
Notes
For the year ended
December 31, 2016
For the year ended
December 31, 2015
OPERATING ACTIVITY:
Received interest and commission 3 636 623 2 775 459
Paid interest and commission - (19 191 )
Foreign operations income 3 636 623 4 794 098
Other received income 720 040 4 007 833
Other operating expenses (1 245 266) (890 432)
Paid income tax (4 125 789) (1 552 807)
Operating activity cash flow before changes in
operating assets and liabilities: 9 114 960
Changes in operating assets and liabilities:
Net increase/ (decrease) in loans and advance - (3 300 254) Net increase/ (decrease) in funds from financial
institutions - (7 121 515)
Net increase/ (decrease) in other assets
Net increase/ (decrease) in other liabilities
Operating activity cash flow after changes in
operating assets and liabilities: 2 624 232 (10 421 769)
Net operating activity cash flow 2 624 232 (1 306 809)
INVESTMENT ACTIVITY:
Cash paid at purchase of PPE
Cash received at sale of PPE (168 670) (125 675)
Cash paid at purchase of securities
Dividends received - -
Net investment activity cash flow -
FINANCING ACTIVITY: (168 670) (125 675)
Proceeds from sale of treasury shares
Redemption of shares - 3 333 000
Paid dividends
Net financing activity cash flow - 3 333 000
Net changes in cash and cash equivalents (19 520) 1 900 516
Cash and cash equivalents as at year beginning 5.1; 5.2; 2 312 089 411 573
Cash and cash equivalents as at year end 5.1; 5.2; 2 292 569 2 312 089
On behalf of MCF “Imon”
__________________ ____________________
Pulotova Aziza Daler Davlatov
General Director Chief Accountant
The notes on pages 10-28 form an integral part of the financial statements. The Independent Auditors' Report is on pages 4-5.
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
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STATEMENT OF CHANGES IN EQUITY For the year ended December 31, 2016
Retained earnings General
provision
Total equity
Balance as of December 31, 2013 20 811 694 33 080 088 53 891 782 Profit and loss of previous years 15 315 245 33 080 088 48 395 333 Comprehensive income of year 2014 1 799 024 - 1 799 024 Profit last year 6 787 538 - 6 787 538
Balance as of December 31, 2014 23 901 807 33 080 088 56 981 895 Profit and loss of previous years 15 315 245 48 210 072 63 525 317 Comprehensive income of year 2015 8 019 480 - 8 019 480 Profit last year 8 586 562 - 8 586 562
Balance as of December 31, 2015 31 921 287 48 210 072 80 131 359 Profit and loss of previous years 15 315 245 46 653 510 61 968 755 Comprehensive income of year 2016 2 770 758 - 2 770 758 Profit last year 16 347 006 - 16 347 006
Balance as of December 31, 2016 34 433 009 46 653 510 81 086 519
On behalf of MCF “Imon”
__________________ ____________________
Pulotova Aziza Daler Davlatov
General Director Chief Accountant
The notes on pages 10-28 form an integral part of the financial statements. The Independent Auditors' Report is on pages 4-5.
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
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NOTES TO THE FINANCIAL STATEMENTS
NOTE 1. GENERAL INFORMATION
1. The main activities
MICRO-CREDIT FUND “IMON” (hereafter “MCF”), is a legal entity registered in accordance
with the legislation of the Republic of Tajikistan and carries out its activity according to the
Charter.
The MCF was registered as an International Micro Credit Fund of “Imon” in the Republic of
Tajikistan under No. 001-1442 dated on November 23, 2004. Further the International Micro
Credit Fund of “Imon” under the legislation of the Republic of Tajikistan “On the Micro Credit
Organizations” and by the decision of the Fund’s Shareholders’ Meeting (Minutes recorded on
July 17th
, 2012) was re-registered on State Tax Committee of the Khujand city of the Republic of
Tajikistan as Micro Credit Fund of “Imon” and was given Identification Number №5110002526
dated on July 23, 2012.
In accordance with changes and additions to relevant documents, the Micro Credit Fund has a
license obtained on December 14, 2012 given by the National Bank of Tajikistan on implementing
the following operations:
1. Issuing micro loans;
2. Conclusion of forward and SWAP operations;
The MCF doesn’t have any registered branches, however MCF has jointly controlled subsidiary –
LLC Microcredit Deposit-Taking Organization “Imon International”.
The MCF is located at the following address: township 17, house #2, Khujand, Tajikistan.
The Founders of the MCF are “National Association of Business Woman of Tajikistan Inc.” and
International Non-Commercial Organization Mercy Corps in the Republic of Tajikistan.
NOTE 2. BASIS OF FINANCIAL STATEMENTS PREPARATION
The financial statements have been prepared in accordance with International Financial Reporting
Standards (IFRSs) as issued by the International Accounting Standards Board (IASB).
The financial statements have been prepared on the historical cost basis.
2.1 Composition of financial statements
The financial statements of comprises of the following:
- Statement of financial position
- Statement of comprehensive income
- Statement of cash flows
- Statement of changes in equity
- Notes to the financial statements
The reporting period for the MCF is the calendar year. Significant items in the financial statements
are presented in detail; less significant items are aggregated.
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
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2.2 Reporting currency
The functional and presentation currency of the financial statements of the MCF is the national
currency - Tajik Somoni.
NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 Recognition and estimating of financial instruments Financial assets and financial liabilities are recognized to be in balance in case when the MCF is a
Party to a contract regarding a financial instrument. Financial assets and financial liabilities are
reflected using the accounting principles on the date of transaction. At first recognition the
financial instruments are reflected on the basis of fair value of the bargain including or excluding
their costs.
The MCF classifies its financial assets into categories: investments held to maturity, loans and
receivables. Management determines the classification of its financial assets at initial recognition.
Loans and receivables are non-derivative financial instruments with fixed or determinable
payments not quoted in an active market.
Borrowings are non-derivative financial liabilities with fixed or determinable payments that are not
quoted in an active market. They are initially recognized at fair value, net of operating costs
incurred and subsequently stated at amortized cost.
3.2 Cash and cash equivalents
Cash and cash equivalents comprise the available cash-on-hand and the balances in bank accounts.
3.3 Loan portfolio and provision for impairment
Initial recognition of issued loans, valued at actual cost, i.e. the fair value of given funds. Accounts
receivable is recognized as an asset at the moment of issuance of funds to customers.
Subsequently, loans are recorded in the amount of principal outstanding under the loan contract,
net of provision for impairment. If there is objective evidence of impairment of loans issued in the
result of events that occurred after the initial recognition of an asset, the MCF generates provision
for impairment, to cover losses on an individual basis. Calculation of the provision for impairment
is conducted on the basis of assets analysis exposed to credit risk. Provision for impairment
recognized in the financial statements only for losses that were incurred at the reporting date based
on objective evidence confirming that fact of impairment has occurred in the period after the initial
recognition. Recover a previously generated provision for impairment is recognized in the
statement of comprehensive income of the MCF.
The MCF practices issuing indexed loans – for those loans, the issuance and repayment is tied to
the currency exchange rate specified in the contract on the date of the transaction. Repayment
schedules for indexed loans are drawn in foreign currency. Payments on the principal amount,
interest and penalties on these loans are calculated in foreign currency at the exchange rate at the
date of issuance / repayment of principal, accrual of interest / penalties, and are reflected in the
national currency. The difference between the exchange rates at the time of issuance and at
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
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maturity is recognized as other income (expense) at the moment of actual extinction of obligation
by borrowers.
In accordance with the loan policy, loans, impossible to repayment are written off against
provision for impairment losses generated. Loans are written off only after taking all measures to
collect the debt and the necessary procedures to determine the amount of loss, as well as after
receipt of collateral.
In order to generate a provision for impairment the MCF uses the following classification of the
loan portfolio:
Arrears period Risk percentage for loans in national
currency
Loan classification
< 30 days 5% Substandard
30 to 60 days 30% Doubtful
60 to 180 days 75% Problem
> 180 days 100% Bad
3.4 Operating lease
Lease is classified as an operating lease if the significant part of risks and ownership rights are
reserved by the lessor. The MCF recognizes payments under the operating lease in the statement of
comprehensive income of the reporting period using the accrual method.
3.5 Property, Plant and Equipment (PPE)
The PPE are recognized as asset at cost of acquisition. After initial recognition, PPE are accounted
for less depreciation. For all PPE is used straight line method of depreciation. Subsequent costs are
capitalized in the carrying value of an asset, if there is an objective probability of obtaining
economic benefits associated with the run of the asset. All other costs are recognized in the
statement of comprehensive income in the corresponding period.
All PPE and Intangible assets depreciation is calculated using the Straight Line Depreciation
Method. The MCF has established the following rates used for depreciation calculation:
PPE category Depreciation rate (%)
Furniture and equipment 15-20
Transport 15
Office equipment 20
Intangible assets 10
3.6 Intangible assets
Intangible assets are identifiable non-monetary assets without physical form. Intangible assets
acquired separately are initially recognized at cost. After initial recognition, intangible assets are
carried at cost less accumulated depreciation and accumulated impairment losses.
3.7 Provisions
The MCF creates the reserve funds to cover losses related to the implementation of core activities,
and for other purposes covered by law.
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
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3.8 Pension obligations
In accordance with the laws of the Republic of Tajikistan pension contributions are withheld from
the MCF employees, and are transferred on the identification number of each employee in the
State Agency for Insurance and Pensions. There are no additional obligations on pensions of
employees.
3.9 Financial obligations
Borrowings are recognized initially at cost, which is the amount received less the costs incurred to
perform the operation. Subsequently, borrowings are stated at amortized cost and any difference
between received funds and the redemption value is recognized in the statement of comprehensive
income over the period of the borrowings as interest expense. Interest on received credits, loans,
are accrued on a monthly basis at a nominal rate of interest on the outstanding principal amount.
Current liabilities are recognized in the statement of financial position of the MCF as they occur -
staff salaries, the amount of accrued tax liabilities, accrued liabilities on the payment of operating
expenses, etc.
3.10 Grant funds
Grants are recognized in the financial statement of the MCF in case of reasonable certainty that the
MCF will comply with all conditions relating to the grant and that grant will be received. Grant
receipt as itself is not a decisive proof that the conditions associated with it are followed or will be
followed.
For grant funds accounting, the MCF uses the approach from the standpoint of revenue, according
to this approach the grant is recognized as income over one or more periods. In line with this
approach grants are recognized in statement of comprehensive income on a systematic basis over
the periods in which the MCF recognizes the costs of these grants that should be compensated as
expenses. Recognition of revenues and expenditures for grant funds is made after the approval of
the expenditure report by donor.
3.11 Recognition of income and expense
During its operating activity the MCF recognizes incomes and expenses based on the accrual basis
of accounting. The accrual basis of accounting assumes that incomes are recognized in the
accounting period in which they are earned, even if funds have not yet been received into the
MCF’s account. Also, expenses are reflected in that accounting period in which they have occurred
irrespective of, whether they are paid by the MCF in the given reporting period.
3.12 Taxation
The amount of income tax expense reflected in the statement of comprehensive income presents
the amount of current income tax calculated in accordance with tax legislation of the Republic of
Tajikistan and deferred income tax.
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
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Profit before income tax differs from a taxable income shown in the statement of comprehensive
income because taxable basis of income tax does not include non-deductible expenses. Current
income tax is calculated at tax rate of 24% for the 2016 and 24% for the 2015.
Deferred income tax is calculated by the method of balance between assets and liabilities in respect
of temporary differences between the tax bases of assets and liabilities and their carrying amounts
in accordance with financial reports. Deferred tax assets and liabilities are determined using tax
rates that are expected to be applied in the period when the asset is realized or the liability is
settled, based on tax rates set in this period or actually set as at reporting date.
Deferred tax assets are recognized to the extent that there is a probability of taxable income gain
and temporary differences can be used against it.
3.13 Foreign currency transactions
The MCF prepares and presents its financial reports in national currency.
Transactions in foreign currencies are initially recorded in the national currency at the official
exchange rate of National Bank of Tajikistan on the date of transaction. Exchange rate differences
between the contractual exchange rate of operations and the official rate of NBT on the date of
such transactions are included to the statement of comprehensive income as net gains from foreign
exchange.
Monetary assets and liabilities denominated in foreign currency are converted into national
currency at the official exchange rate of NBT set on the reporting date. Exchange differences
arising on the revaluation of assets and liabilities are recognized in the statement of comprehensive
income as net gains from foreign currency translation.
The exchange rates used in the preparation the MCF annual financial statements were as follows:
31.12.2016 31.12.2015
1 US Dollar 7,8762 6,9902
3.14 Equity
Equity of the MCF consists of share capital, retained earnings and provisions created in accordance
with applicable law.
4. NOTES TO THE STATEMENT OF COMPREHENSIVE INCOME
4.1 Income and expense
Interest and other income December 31,
2016
December 31,
2015
Interest income on loans 2 182 575 1 823 251
Interest income on term
placements 1 430 828 1 089 811
Other interest income 23 220 3 906
Total: 3 636 623 2 891 472
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
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Interest expense
December 31,
2016
December 31,
2015
Interest expense on borrowings - 25 496
Total: - 25 496
Net Interest Income 3 636 623 2 891 472
4.2 Gain (loss) from foreign currency transactions
December 31,
2016
December 31,
2015
Gain from foreign currency transactions 4 091 672 7 732 723
Loss from foreign currency transactions (1 581 542) (2 333 247)
Net gain (loss) from foreign currency
transactions: 2 510 130 5 399 476
4.3 Other operating income
December 31,
2016
December 31,
2015
Income from recovery of the cost of credit 707 206 318 526
Other income 14 834 4 007 836
Other income from adjustments of previous
year -
Total other Income: 722 040 4 326 362
4.4 Operating expenses
December 31, 2016 December 31, 2015
Amount Share (%) Amount Share (%)
Personnel expenses 504 715 39 458 789 34,02
Professional services fee 79 151 6,12 102 853 8,12
Training costs 50 600 3,91 - -
Taxes (except for income tax) 212 576 16,4 216 705 17,12
Вank service 9 499 0,73 19 191 1,52
Depreciation of assets 47 283 3,66 16 232 1,28
Rent 204 933 15,85 228 225 18,03
Fuel and vehicle maintenance expenses 25 470 1,97 11 152 0,88
Public utilities service 7 833 0,61 9 468 0,75
Travel and transportation expenses 2 156 0,17 86 745 6,85
Communication services 8 108 0,63 11 949 0,94
Stationary and other office supplies 5 798 0,45 6 052 0,48
Advertising 42 627 3,30 14 583 1,15
Entertainment expenses 65 460 5,06 46 858 3,70
Other expenses 26 341 2,04 37 132 5,15
Total: 1 292 549 100,00 1 265 932 100,00
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
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Personnel expenses
December 31,
2016
December 31,
2015
Staff salaries 493 469 387 169
Additional benefits 63 970 71 620
Social contributions 25% 126 176 114 697
Total: 683 617 573 486
4.5 Income tax
Income tax for the current period is calculated based on tax accounting in accordance with tax
legislation of the Republic of Tajikistan. As certain expenses are not deductible for tax purposes
and not considered as taxable deductions and due to the presence of non-taxable income, there are
permanent differences. Deferred tax reflects the net tax effects of temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used
for taxation purposes.
The MCF may recognize deferred tax asset resulting from unused tax losses (or credits), if there is
a high probability of future taxable profits and unused losses (and credits) can be set off against it.
December 31,
2016
December 31,
2015
Income before taxation 2 662 762 10 789 408 Tax at the rate for taxable income -24% 639 063 2 589 458
Tax effect from permanent differences 437 220 148 135
Income tax expenses 1 076 283 2 737 593
The tax effect of temporary differences 1 557 1 748
Current income tax 1 077 840 2 739 341
5. NOTES TO THE STATEMENT OF FINANCIAL POSITION
5.1 Cash and cash equivalents
December 31,
2016
December 31,
2015
Cash - national currency - 7 807 Cash in bank - national currency 1 559 740 1 058 044 Cash in bank - foreign currency 732 829 1 246 238
Total: 2 292 569 2 312 089
5.2 Funds in local banks
December 31, December 31,
2016 2015
CJSC MDO “Imon International”-
national currency 5 060 000 6 360 000 CJSC MDO “Imon International”-
foreign currency 3 150 480 2 796 080 CJSC “ The First Microfinance
Bank” -foreign currency - 2 097 060
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
17
CJSC “Tojprombank”- foreign
currency 393 810 349 510 OJSC “Eskhata Bank”- foreign
currency 8 663 820 5 592 160
Total foreign currency 12 208 110 10 834 810
Total: 17 268 110 17 194 810
5.3 Loan portfolio
As of December 31, 2016 the active loan portfolio of The MCF includes 166 loans, compared to
179 active loans at the beginning of the year.
December
31, 2016
December
31, 2015
Loan portfolio 11 860 038 12 302 007
Accrued interest 458 807 351 316 Provision for impairment (1 790 317) (721 352)
Total: 10 528 528 11 931 971
Loan portfolio by types:
December 31,
2016 Percentage
December 31,
2015 Percentage
Mortgages loans
3 672 833 30,97% 4 520 818 36,75%
Financial
lease (leasing) 3 194 144 26,93% 1 236 094 10,05%
Consumer loans
16 692 0,14% 264 994 2,15%
Productions 0 0% 1 173 475 9,54%
Agricultural
loans 0 0% 176 403 1,43%
Business 104 505 0,88% 513 191 4,17%
Construction 4 871 862 41,08% 4 417 032 35,90%
Total: 11 860 037 100% 12 302 007 100%
Accrued
interest 458 807
351 316
Provision for
impairment (1 790 317)
(721 352)
Total: 10 528 528 11 931 971
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
18
The annual percentage rate of the loan portfolio, we can see in the below table:
Annual percentage rate December 31,
2016
Annual percentage rate December 31,
2015
from 18% to 20% 3 194 147 from 12% to 18% 1 338 819
16% 121 199 from 20% to 28% 2 092 058
from 20% to 24% 8 544 691 from 32% to 36% 3 515 978
from 38% to 40% 5 355 153
Total: 11 860 037 12 302 007
Accrued interest 458 807 351 316 Provision for impairment (1 790 317) (721 352)
Total: 10 528 528 11 931 971
Loan portfolio classification comprises for 31 December 2016 as follows:
Loan portfolio classification Quantity Total
amount
Provision for
impairment Total (%)
Standard loans 106 6 353 355 - 6 353 355 46,54%
Loans in proceedings 4 657 604 (657604) 1 315 208 9,63%
Overdue loans 7 1 356 899 (1 132 712) 2 489 611 18,24%
Restructured loans 49 3 492 179 - 3 492 179 25,58%
Total: 166 11860037 (1790316) 13 650 353 100%
According to the above table, the ratio of standard loans to total loan portfolio is 46,54% the ratio
of loans in proceedings to total loan portfolio is 9,63% compared to 18,24 % of overdue loans,
comparing to Substandard loans are in amount of 18,24% and comparing to overdue loans 25,58 %.
Loan portfolio classification for 31 December 2015 comprises as follows:
Loan portfolio classification Quan
tity
Total
amount
Inter
est
Provision
for
impairme
nt
Total (%)
Standard loans 188 11 040 340 - (220 807) 10819 533 89,74%
Loans in proceedings 4 766 896 - (462 006) 304 890 6, 23%
Overdue loans 7 494 771 - (38 539) 456 232 4,03%
Total: 199 12 302 007 - (721 352) 11 580 655 100%
According to the above table, the ratio of standard loans to total loan portfolio is 89,74% the ratio
of loans in proceedings to total loan portfolio is 6,23% compared to 4,03 % of overdue loans.
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
19
Loan portfolio classification by risk groups is as follows:
December 31, 2016
Percent Amount
Provision for
impairment
Standard 53,57% 6 353 355 Substandard 5,54% 657 604 657 604 Doubtful 11,44% 1 356 899 1 356 899 Problem 29,44% 3 492 179
Total: 11 860 037 1 790 316
December 31, 2015
Percent Amount
Provision for
impairment
Standard 11 040 340 220 807 Substandard 5% 124379 6219 Doubtful 30% 22255 6676 Problem 75% - - Bad 100% 1 115 033 487 650
Total: 12 302 007 721 352
Collateral, generally accepted by the MCF are assets in the form of real estate (private houses,
apartments and houses), household goods, jewelry, equipment and vehicles. As of December 31,
2016, the total amount of secured loans in the active loan portfolio was 71,38% and unsecured
loans – 28,62%.
December 31, 2016
Amount Quantity Value of
collateral
Loans secured by real estate 8 465 152 92 15 961 596
Loans secured by financial lease (leasing) - - -
Loans secured by transport vehicles - - -
Loans secured by household equipment - - -
Loans secured by guarantees - - -
Loans secured by goods in turnover - - -
Unsecured loans 3 394 885 74
Total: 11 860 037 166 15 961 596
Accrued interest 458 807 Loan loss provision fund (1 790 317)
Total: 10 528 528
Collateral, generally accepted by the MCF are assets in the form of real estate (private houses,
apartments and houses), household goods, jewelry, equipment and vehicles. As of December 31,
2015, the total amount of secured loans in the active loan portfolio was 63,67% and unsecured
loans – 36,33%.
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
20
December 31, 2015
Amount Quantity Value of
collateral
Loans secured by real estate 5 439 947 88 17 697 336
Loans secured by financial lease (leasing) 2 392 783 15 2 392 783
Loans secured by transport vehicles - - -
Loans secured by household equipment - - -
Loans secured by guarantees - - -
Loans secured by goods in turnover - - -
Unsecured loans 4 469 277 96 -
Total: 12 302 007 199 20 090 119
Accrued interest 351 316 Loan loss provision fund (721 352)
Total: 11 931 971
Provision for impairment losses on loans is as follows:
Balance as of December 31, 2013 78 969
Expenses for provision for impairment losses 383 443
Recovery of the provision for impairment losses (58 33)
Balance as of December 31, 2014 456 579
Expenses for provision for impairment losses 583 299
Recovery of the provision for impairment losses (318 526)
Balance as of December 31, 2015 721 352
Expenses for provision for impairment losses 1 776 181
Recovery of the provision for impairment losses (707 216)
Balance as of December 31, 2016 1 790 317
Comparative table of the portfolio at risk is as follows:
Indicator Calculating formula
Calculated
rate in 2016
Calculated
rate in 2015
Riskiness of loan portfolio
Loan loss provision
fund/Total loan
portfolio 15,10% 5,86%
Level of loans repayment doubtfulness
Amount of bad
loans/Total loan
portfolio 16,99% 9,06%
5.4 Investments
MCF “Imon” is the main shareholder of LLC MDO “Imon International”. Its share in the capital of
MCF IMON is 48,38%, which equal to 48 384 985 Somoni for December 31 2016 and 48,38%,
which equal to 48 384 985 somoni for December 31 2015.
5.5 Property, Plant and Equipment (PPE)
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
21
PPE Furniture Vehicle Office equipment Total
Carrying amount as at December 31, 2013 26 336 67 964 94 300
Additions 10 219 10 219
Disposals 0
Carrying amount as at December 31, 2014 26 336 78 183 0 104 519
Additions 9 872 9 302 106 500 125 674
Disposals 865 460 1 325
Carrying amount as at December 31, 2015 35 343 87 025 106 500 228 868
Additions 51 257 117 413 168 670
Disposals 0
Carrying amount as at December 31, 2016 86 600 204 438 106 500 397 538
Accumulated depreciation as at December 31, 2013 1 367 11 103 12 470
Depreciation 3 950 9 998 13 948
Disposals of accumulated depreciation 0
Accumulated depreciation as at December 31, 2014 5 317 21 101 0 26 418
Depreciation 4 833 11 397 16 230
Disposals of accumulated depreciation 227 230 457
Accumulated depreciation as at December 31, 2015 9 923 32 268 0 42 191
Depreciation 7 594 23 715 15 975 47 284
Disposals of accumulated depreciation 0
Accumulated depreciation as at December 31, 2016 17 517 55 983 15 975 89 475
Net book value as at December 31, 2013 24 969 56 861 0 81 830
Net book value as at December 31, 2014 21 019 57 082 0 78 101
Net book value as at December 31, 2015 25 420 54 757 106 500 186 677
Net book value as at December 31, 2016 69 083 148 455 90 525 308 063
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
22
5.6 Other assets
Other assets Amount for
December 31,
2016
Amount for
December 31,
2015
Staff accounts receivables 28 280 9 066 Advances paid tax 2 295 031 1 946 827 Other assets 1 053 727 949 194
Total: 3 377 038 2 905 087
Other assets of MCF includes an amount receivable from Staff for 28 280 Somoni. The amount of
2 295 031 somoni is prepayment of taxes, and other assets in the amount of 1 053 727 somoni.
5.7 Other liabilities
December 31,
2016
December 31,
2015
Tax liabilities 1 071 397 2 781 021
Accounts payable – national currency 2 934 3 239
Total: 1 074 331 2 784 260
5.8 Retained earnings
Retained earnings as at December 31, 2013 15 315 245
Profit of 2014 year 1 799 024
Profit (loss) of previous years 6 787 538
Retained earnings as at December 31, 2014 23 901 807
Profit (loss) of previous years 15 315 245 Profit of 2015 year 8 019 480 Profit last year 8 586 562
Retained earnings as of December 31, 2015 31 921 287
Profit (loss) of previous years 15 315 245
Profit of 2016 year 2 770 758
Profit last year 16 347 006
Retained earnings as of December 31, 2016 34 433 009
5.9 General provision
MCF “Imon” has established general provision for it is future operations and for the end of the
Financial year 2016 it increased for the amount of 48 210 072 Somoni, in 31 December 2015 it
was 48 210 072 Somoni.
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
23
NOTE 6. RELATED PARTY TRANSACTIONS
The MCF had several related party transactions.
According to definition in IAS 24 “Related Party Disclosures” a party is related to an entity if:
(a) directly, or indirectly through one or more intermediaries, the party:
(i) controls, is controlled by, or is under common control with, the entity (this includes
parents,
subsidiaries and fellow subsidiaries);
(ii) has an interest in the entity that gives it significant influence over the entity; or
(iii)has joint control over the entity;
(b) the party is an associate (as defined in IAS 28 Investments in Associates) of the entity;
(c) the party is a joint venture in which the entity is a venture (see IAS 31 Interests in Joint
Ventures);
(d) the party is a member of the key management personnel of the entity or its parent;
(e) the party is a close member of the family of any individual referred to in (a) or (d);
(f) the party is an entity that is controlled, jointly controlled or significantly influenced by, or for
which
significant voting power in such entity resides with, directly or indirectly, any individual referred
to in (d)
or (e); or
(g) the party is a post-employment benefit plan for the benefit of employees of the entity, or of any
entity that
is a related party of the entity.
The information about the MCF related party transactions is as follows:
December 31, 2016 December 31, 2015
Amount % Amount %
Key management personnel compensation 3 521 0,92% 34856 53,02%
Balance of outstanding loans 191 575 1,62% 176 668 1,44%
Interest income 38 151 1,75% 11 810 0,40%
NOTE 7. EQUITY MANAGEMENT
Equity management of the MCF has the following objectives: compliance with capital
requirements established by the National Bank of Tajikistan, ensuring the going concern of the
MCF. In line with current practice, the legislation established capital adequacy normative.
Normative K1-1 is defined as the ratio of regulatory capital of a financial institution to risk-
weighted assets. This normative is set not less than 12%. The normative K1-2 is defined as the
ratio of regulatory capital of a financial institution to total assets. This normative is set not less
than 10%. Formats for reporting to the National Bank have not been established for MCF. The
table below shows the amount of capital based on the MCF reports. The share capital consists of
paid up capital, reserves generated from net profit and retained earnings, decreased by net
intangible assets.
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
24
Regulatory capital NBT
standard
December 31,
2016
December
31, 2015
Fixed capital 81 086 519 80 131 359
Supplementary capital - - Total regulatory capital 81 086 519 80 131 359
Normative К1-1 12% 38,76% 40,79 %
Normative К1-2 10% 37,54% 38,29 %
NOTE 8. EVENTS AFTER THE REPORTING PERIOD
The MCF Management considers that there are no significant liabilities that could have negative
material influence at the financial position and activity results of the MCF in foreseeable future.
NOTE 9. RISK MANAGEMENT
Risk management has a fundamental mean to the banking business and is a significant element of
the MCF’s activity.
The activity result of the MCF mostly depends on the quality of credit risk assessment methods
and their management. Risk is an estimation of potential losses that may be incurred by the MCF.
Bank Risk Management requires the existence of methodology of quantitative assessment, i.e. the
likelihood of undesired events occurrence and the value of associated losses.
Exposure to risks and their origins
The main risks inherent to the MCF are credit risk, liquidity risk, currency risk, interest rate risk
and operational risk.
The origins of risks are:
- Adverse conditions for contractors to perform obligations assumed;
- Adverse changes in market conditions;
- Inefficient of the MCF activity as a result of adverse external events.
Concentration of risk
Concentration of risk occurs when a number of counterparties are engaged in similar activities, or
their activities conducted in the same geographic region, or counterparties have similar economic
characteristics, and as a result of changes in economic, political and other conditions have similar
effects on the ability of these counterparties to fulfill contractual obligations.
Concentration of risk reflects the relative sensitivity of the MCF to changes in conditions that
affect a particular industry or geographic region.
Credit risk
Credit risk is the risk of financial loss occurring as a result of default on an obligation by the
borrower.
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
25
According to the Loan policy of the MCF there is a thorough analysis of the level of
creditworthiness of borrowers before deciding on a loan issuance for minimizing credit risk. For
loans of more than 12 000 TJS a member of the management team of the MCF is involved in this
analysis. In addition the MCF’s loan policy covers existence of collateral in the amount of 150% of
the loan amount in order to minimize credit risk. As collateral the MCF takes real estate, jewelry,
household goods, vehicles and goods in turnover, depending on the loan amount. According to
Loan policy the Loan committee of the MCF is a supreme authority to decide on a loan issuance,
review the conditions of the loan agreement, collateral, etc. and controlling unit for the loan
portfolio.
The MCF assesses the credit risk on an individual basis, that is, the risk of non-payment by the
borrower of principal and interest within the prescribed terms of the contract period. The MCF
does not evaluate credit risk on an aggregate loan portfolio basis that are not individually impaired.
Provision for impairment recognized in the financial statements only for losses that were incurred
at the reporting date based on objective evidence confirming that fact of impairment has occurred
in the period after the initial recognition. Because of differences in methodologies used amount of
incurred credit losses calculated for financial reporting, is usually less than the amount determined
on the basis of the expected loss model.
Despite the existence of approved policies and procedures for lending, the MCF does not always
follow the procedures prescribed in the ordinary course of business. It should be noted that there is
a weak monitoring of borrowers at the stage of loan issuance, as well as inappropriate control over
the active loans.
National Bank of Tajikistan established standards for credit risk management of micro loan
organizations. The volume of one micro loan to an individual shall not exceed the amount to
250 000 Somoni, and 350 000 Somoni for entities. The size of micro loans or micro loan limits
apply to the sum of all loans to an individuals or persons acting together in order to get a microloan
for sharing. In group lending limits on the size of micro loans applicable to the individual micro
loans of each member of the group, not to the entire group.
Maximal credit risk
In the following table there is a maximal value of credit risk on the financial assets and off-balance contingent liabilities. For the financial assets reflected in the balance accounts, the maximal value of credit risk equals to balance cost of these assets without setoff assets and liabilities and security.
December 31,
2016
December 31,
2015
Funds from other banks 2 292 596 19 499 092
Loans to customers 11 860 037 12 302 007 Investment 48 384 985 48 384 985
Accounts receivable 458 807 351 316
Concentration of credit risk
MCF doesn’t have any assets and liabilities outside of the Republic of Tajikistan.
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
26
Liquidity risk and interest rate risk
Liquidity risk is a risk of facing difficulties with receiving cash assets to pay off deposits and
liabilities relevant to financial instruments at the time of their payment period.
The MCF daily feels the need in free funds for settlement of current liabilities, loans payable and
other requirements on financial instruments paid in cash. The MCF performs liquidity management
in order to ensure the presence of cash in any time for making payments on liabilities relevant to
cash flows when the payment period comes.
The main tool the MCF uses to control liquidity is analysis of cash flows forecasts. Interest rate
risk management is done by means of balancing of maturity period of liabilities and assets of the
MCF. Perspective evaluation of interest rate risk for every instrument gives the opportunity to take
measures to minimize its influence on the MCF profit as reduction in income or direct losses can
lead to deterioration in capital adequacy ratio.
The table below shows the analysis of interest rate risk and liquidity risk of the MCF by maturity
date according to the contracts where the specified groups are divided on the basis of the paying
off period at the date of statement of financial position.
Up to 1
month
1-3
mo
nth
3month-
1year
1 year -
5 years
Overdue Undefined December
31, 2016
ASSETS
Loans to customers - - - - 11 860 037 (1 790 316) 10 069 721
Total interest bearing
assets - - - - 11 860 037 (1 790 316) 10 069 721
Cash - - - - - - -
Balance in other banks - - - 19 560 679 - - 19 560 679
Long term investments - - - - - 48 384 985 48 384 985
Fixed assets - - - 308 064 - - 308 064
Other assets - - 480 864 180 999 - 3 173 984 3 835 846
Total assets - - 480 864 20 049 741 11 860 037 49 768 653 82 159 295
LIABILITIES
Funds from financial
institutions - - - - - - -
Total interest bearing
liabilities - - - - - - -
Other borrowings - - - - - - -
Other liabilities - - - - - 1 180 771 1 180 771
Total liabilities - - - - - 1 180 771 1 180 771
Difference between assets
and liabilities - - 480 864 20 049 741 11 860 037 Difference between interest
bearing assets and
liabilities - - - - 11 860 037 Difference between interest
bearing assets and
liabilities, progressive total - - - - 11 860 037 Difference between interest
bearing assets and
liabilities, in percentage to
the total assets,
progressive total 0% 0% 0% 0% 14%
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
27
Up to 1
month
1-3
mo
nth
3month-
1year
1 year -
5 years
Overdue Undefined December
31, 2015
ASSETS
Loans to customers
8 196 993 4 105 014 (721 352) 11 580 655
Total interest bearing
assets 8 196 993 4 105 014 (721 352) 11 580 655
Cash 7807 7 807
Balance in other banks 19 449 092 19 449 092
Long term investments 48384985 48384985
Fixed assets 186677 186677
Other assets 351 316 2 905 087 3 256 403
Total assets 7807 351 316 27 832 762 4105 014 50 568 720 82 865 619
LIABILITIES
Funds from financial
institutions - - - - - - -
Total interest bearing
liabilities
Other borrowings 2 784 260 2784 260
Other liabilities - - - - - - 2784 260
Total liabilities 7807 - 351 316 27 832 762 4105 014 Difference between assets
and liabilities - - - 8 196 993 4 105 014 Difference between interest
bearing assets and
liabilities - - - 8 196 993 1 2302007 Difference between interest
bearing assets and
liabilities, progressive total - - - 9,89% 14,84% Difference between interest
bearing assets and
liabilities, in percentage to
the total assets,
progressive total - - - 15% 15,78%
Currency risk
The MCF assumes the risk associated with the effects of fluctuations in foreign exchange rates on
its financial position and cash flows. Since the MCF is not licensed for foreign operations and has
only for forward operations and SWAP, and borrowed funds denominated in foreign currency, the
MCF issues indexed loans, tied to the rate of US Dollar at the time of repayment of interest and
principal.
The below table states the analysis of currency risk level as of December 31, 2016:
MICRO CREDIT FUND “IMON” FINANCIAL STATEMENT WHICH IS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STATDARDS (IFRS) FOR THE YEAR ENDED ON DECEMBER 31, 2016 (in Tajik Somoni, unless otherwise indicated)
28
Assets TJS USD Total
Cash
Balance in other banks 6 619 740 12 940 939 19 560 679
Loans to customers, net 10 069 721 - 10 069 721
Long term investments 48 384 985 - 48 384 985
Fixed assets 308 064 - 308 064
Other assets 3 835 846 - 3 835 846
Total assets 69 218 356 12 940 939 82 159 295
Liabilities
Balance in other banks - - - Other liabilities 1 180 771 - 1 180 771
Total liabilities 1 180 771 - 1 180 771
Currency position 68 037 585 12 940 939
The below table states the analysis of currency risk level as of December 31, 2015:
Assets TJS USD Total
Cash 7 807 7 807
Balance in other banks 7 418 044 12 081 048 19 499 092
Loans to customers, net 11 931 971 - 11 931 971
Long term investments 48 384 985 - 48384985
Fixed assets 186 677 - 186677
Other assets 2 905 087 - 3 256 403
Total assets 70 834 571 12 081 048 82 915 619
Liabilities
Balance in other banks Other liabilities 2 784 260 - 2 784 260
Total liabilities 2784 260 - 2784 260
Currency position 68 050 311 12 081 048
The sensitivity analysis to currency risk
The table below presents the sensitivity of the MCF to increase and decrease of exchange rate of
US Dollar / Euro at 5% to TJS.
The sensitivity analysis includes only foreign currency amounts available at the end of the period
and the rates used for their conversion as at the end of the period have been modified by 5%
compared with the current.
December 31, 2016 December 31, 2015
Strengthen/weakness of US Dollar at 5% (647 047)\ 647 047 (604 052)\ 604 052