In the Name of Allah The most Gracious The most Merciful ... · Allah has permitted trade and...

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Allah has permitted trade and forbidden usury.

(275)

In the Name of Allah The most Gracious The most Merciful

Holly Quran The Caw (275)

2 Annual Report 2012

COTENTS

Subject page Vision 3Objectives & Strategies 4Information about the Bank 5Board of directors members 7Shari’a supervisory board 8Executive management of the bank 9Head office & branches 10Correspondent banks 11General manager statement 12Chairman statement 17Financial Indicator 20Shari’a supervisory board report 22Auditors report 23Balance sheet as at 31st., December, 2012 24Income statement for the year ended 31st., December, 2012 25Cash flow statement for the year ended 31st., December, 2012 26Statement of changes in owner’s equity 27Notes of the financial statements 28

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

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

commitment.

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

Our Values


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

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

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

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

Objectives

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

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

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

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

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

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

Strategies

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About the Bank

Establishment 2006Commenced operation 4/May/2008

Authorized share capital 100 Million Dollar

Paid Up Capital 75 Million Dollar

Tel + 249 187 051000 + 249 183 741531

Fax + 249 183 741517 + 249 183 741523

P.o Box 424 Khartoum - Sudan

Web Site: www.aljazeerabank.com.sd

Email [email protected]

Swift Code GSJBSDKH


Vice Chairman

General Manager

Chairman

H.E. Ayman Al Majali

H.E. Ali M. Osman Yassin

Mr. Aamir Abdalwahab Alallawi

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

H/E Ali Mohamed Osman Yassin Vice chairman Sudan

Mr. Michael Faig Ibrahim Elsaigh Member Jordan

Mr. Alsidieg Altayeb Ali Mohmed (Jazeera State) Member Sudan

Mr. Hatim Abdalhai Yahia Abdulkareem Zaloum Member Jordan

Mr. Akram Abdulatif Hassan Gurab Member Jordan

Dr. Hamid Abdulghani Mohamed Gabr Member Jordan

H/E Dr. Mohamed Jawad Fuad Hadeed Member Jordan

Mr. Mohamed Ahmed Khairy Abdulkareem (Giad) Member Sudan

Mr. Hashim Khalafalla Mirghani (S.I.I.A) Member Sudan

Mr. Aamir Abdalwahab Alallawi G. Manager Jordan

Dr. Muna Altayeb Mohamed Altayeb Board secretary Sudan

Board of Directors


Sheikh/ Ibrahim Eldareer PresidentProfessor Ibrahim Ahmed Osman MemberProfessor Mohamed Elhassan Birema Member

Mohamed Suliman Haggar & Co.Certified Accountants Financial Consultant

Office of HonoredAli Mohamed Osman Yassin

Shari’a Supervisory Board

Legal Auditor

Legal Advisor

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Mr. Tareq M. Nazmi AlsadiqAssistant General Manager for Retail & Mgt

Mr. Thimer Qadri TawfigExecutive manager for Information Tech.

Mr. Osama Mohamed Ali TambalDeputy General Manager.

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

Mr. Majed A. Awad AbusairAssistant General Manager

for local finance

Mrs. Muna M. SalihExecutive manager for Banking Operations

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

internal audit

Mrs. Aayad S. HaggarExecutive manager for Treasury

and investment Dept

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

Executive Management


1. Head Quarter & Main BranchAl Zubair Pasha Street off Al qaser StreetFax: 00249 183741525 Tel: 00249 187051000P.O. BOX 424 Khartoum - SudanEmail: [email protected] side : www.aljazeerabank.com.sd

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

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

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

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

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

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

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

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

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

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

12. Alkalakla & Al AmaratSoon

Head Office & Branches

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شبكة المراسلين اإلقليميين والدوليين

Banks Correspondents

Correspondent City Country

Middle East & Africa

1 Jordan Commercial Bank Amman Jordan

2 Byblos Bank S.A.L Beirut Beirut Lebanon

3 Bank of Beirut Beirut Lebanon

4 Libyan Foreign Bank Tripoli Libya

5 National Bank Of Egypt Cairo Egypt

6 National Commercial Bank Jeddah KSA

Gulf Area

7 Mashreq Bank Dubai UAE

8 Abu Dhabi Islamic Bank Abu Dhabi UAE

9 Al Masraf Arab Bank for Investment & Foreign Trade Abu Dhabi UAE

10 The Arab Investment Co. Taic Manama K.B

11 ALUBAF Arab International Bank Manama K.B

Europe

12 Commerz Bank - Frankfurt Frankfort Germany

13 British Arab Commercial Bank London U.K

14 UBAI Arab Italian Bank Roma Italy

15 Banque De Commerce et de placement Geneva Switzerland

16 Jordan International Bank London U .K


In the Name of Allah, the Most Gracious, the Most MercifulPraise belongs to God, Nurturer and Sustainer of all worlds and Prayers and Peace be upon the Noblest (Sharif) of all Messengers, our leader Mohammed and all his Family and Companions.

Al Jazeera Sudanese Jordanian Bank is an upshot of a successful Sudanese-Jordanian partnership that reflects the continuous development in cooperation relations between the two sisterly countries at all levels. As you may know, the year 2012 witnessed great economic changes which imposed enormous challenges at the level of the banking sector but Thanks to God, the Bank managed to diminish the intensity of the negative economic changes and was consequently able to overcome the difficulties and make use of all investment opportunities available, the fact the reflected positively on the Bank performance indicators which in turn helped in the growth of profitability indicator.

Due to the vast development in our banking works, we were able to overcome the effects of the local economic field. Our distinguished performance during the year 2012 proved that our strategy which we arranged to implement during the last years is eminent. The positive results confirmed that the Bank is ongoing with providing rewarding returns for his Shareholders while still maintaining the highest quality standards which our customers are used to get and which became part and parcel of the Bank philosophy and its economic vision.

We had to cope with the economic change and banking development in the country in which we made a success through the balance between bringing up-to-date and modernization in covering the market needs. This great success and progress were accomplished due to our success in building the capacity of our employees through continuous training and qualifying, together with our certain keenness to study the risks which could result from the different activities (funding, operational, money liquidity, and marketing). We persisted in keeping the risks within the minimum limit through preparing sound studies, activating follow up and internal monitoring systems and preparing periodic reports.

Hereunder, we have the administrative analysis of the functional fields of work as detailed below:

Information Technology Field: Within the strategy of continuous development and the long term targets, the Bank carried on with enhancing its competitive capabilities to work on the perfection of the banking performance and increasing the market share by hiring (ITS) company to update the technical systems in the Bank. The Company is highly qualified in the technical field and banking systems and solutions. In the year 2012, the second phase of our banking system (Phase II) related to Islamic Finance Modes and all financing operations are currently fixed and in the system and not manually as it used to be. The import and export system (IMEX) and the international trade system are also introduced in addition to updating the infrastructure of systems and equipments for work.

In the field of Development and Retail: The Bank has expanded in finance with its two sectors (companies and individuals), which witnessed a successful introduction of many products and

Statement of the General Manger


services in conformity with the regulations of Islmaic Sharia. Consequently, finance constitutes a huge burden in the investment activity of the Bank while its revenues turned out to be of a relatively significant value from the total revenues of the Bank. We succeeded in providing distinguished services and products pioneer in job market through our optimum care in improving the services and our meticulousness in designing the new products which enabled us to expand the customers’ base during the year 2012 despite the high competition in the market.

In the field of Banking Relations: We had several meetings with the administrations of the local banks and correspondents to attract the savings of Immigrants and making use banking facilities through enhancing the credits with convenient margins and enlarging the banking exchange. We also succeeded in attracting a significant number of customers dealing with export, which had a positive impact in supporting the resources of the Bank with regard to foreign currency besides, supporting the revenues of banking operations which have remarkably improved compared to the previous year. To complete the implementation of Bank procedures regarding the centralization of work to enable the Branches to take care of marketing activities and customer services, working procedures of centralized documented credits and levying were prepared at the Central Banking Operations Department which is currently under implementation.

In the field of Human Resources and Training: Regarding the human resource, a number of workshops, symposiums, training and developmental programs were held in town and abroad. Its total reached (30) programs in which (108) employee participated. The percentage of training to the total of employees reached (70%) which is high. This emphasizes the Bank concern about the progress of its human cadre. Qualified cadres were also attracted to work according to the Bank plan of 2013.

In the field of engineering and administrative: Regarding the improvement of working environment and to attain customers’ expectations, aspirations and needs, (Souq Libya) Branch was renovated and work has started in renovating (Alsouq Almahalli) Branch. Within the plans of geographical propagation to implement our expanding strategy in areas expected to have high economical growth, we opened Taif Branch in Khartoum State, and Gedarif Branch in Gedarif State. The network of the ATM machines was also expanded by adding developed technical services (withdrawal from ATM machines from the car) to the Bank customers in the main areas.

In the field of community service: To activate the principle of the social responsibility and to implement our policy which targets the support of social and humanitarian activities, we provided a tangible support to Khartoum and Gedarif States, to a number of organizations, corporations, to social, humanitarian, educational and training activities during the year 2012 whose total reached more than SDG 1.4 million.

Finally, I have the pleasure to convey deep thanks and appreciation to the Governor of the Central Bank of Sudan with its different departments for providing the favorable and convenient atmosphere which participated in the progress of the economy and helped in the improvement of the performance of the banking sector in the country.

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I would also like to convey deep gratefulness and gratitude to his Excellency, Chairman of the Board of Directors and its respectful members for their continuous support and encouragement. We also convey our thanks to the Executive Administration Team and all the employees in the Bank for working with the spirit team and for their exhaustive efforts in realizing the strategic and financial targets of the Bank throughout the last five years.

Then, allow us to put before your hands the annual report for the year 2012, which includes the summary of the Bank performance and its main activities through the last year consisting of the following:

• The Speech of the Chairman of the Board of Directors of the Bank• Analysis of the administrative activities of the Bank performance during the year 2012:

-- In the field of Information Technology.-- In the field of Development and Retail.-- In the field of Banking relations.-- In the field of Human Resources and Training.-- In the field of Engineering and Administrative.-- In the field of Community Service.

• The report of the Sharia Supervisory Committee.• The report of the Legal Auditor.• The final Statements of the financial year 2012.

And by God, Success and Rightness are Granted , , , , ,

Amir Abdelwahab Al’IllawiGeneral Manager


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

With regard to Individuals, the Bank introduced various funding programs such as (housing , auto, elite and Rayyih Balak “feel relax”).

As for the vulnerable sector, the bank implemented microfinance programs to fund different productivity projects.”

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Praise belongs to God, Nurturer and Sustainer of all worlds and Prayers and Peace be upon God’s Truthful Messenger, his Family and Companions with lots of greetings till the Hereafter.Then..

Honorable Shareholders..I would like to welcome you all in the fourth Annual General Meeting of the Shareholders of Al Jazeera Sudanese Jordanian Bank. On behalf of the members of the Board of Directors, I have the pleasure to present to you the Bank annual report which includes the financial statements and its details for the year ending in 31/12/2012 beside the two other reports of the External Auditor and the Sharia Supervisory Committee.

Ladies and Gentlemen..Sudan had great economic problems during the last three years. The year 2012 was the most difficult and complicated period during which Sudan economy was in a state of weakness and stagnancy which was obvious from the deterioration of the exchange rate of the Sudanese Pound against the foreign currencies with more than 120% drop, the increase of inflation rates was extra-ordinary high and the increase in prices of commodities and services was enormous. Moreover, the decline in the volume of the foreign investment and the restrictions imposed by the International Funding Channels on Sudan due to the economic sanctions.

Despite these circumstances and its impact on the gross demand on banking activities,

Al Jazeera Bank carried on last year with the enhancement of its competitive position, its distinguished performance and development in all its financial indicators which reflected a more added value to the Shareholders. Hence, the Bank was capable of maintaining the level of its profitability and its banking activities.

The total assets of the Bank augmented to SDG 704.4 million in 31/12/2012 with a growth percentage rate of 70% compared to the previous year. Last year was characterized with a progressive improvement in the Finance and Investment Portfolio which augmented to SDG 252, 7 million with a growth rate percentage of 72%. The Deposits Base increased with a record percentage that reached 102% compared to last year and in addition to 349 million SDG. The gross operating revenues reached the amount of SDG 49.4 million with an increased percentage of 50% compared to the previous year whereas the net income after deducting the tax and Zakat reached SDG 17.3 million with a growth percentage of 39% compared to last year. The Total Shareholders’ Equity augmented to SDG 227, 2 million with a growth percentage of 32% compared to the previous year. The percentage of the Return on Equity reached about 8% by the end of 2012.

Ladies and Gentlemen..During the last year, the Bank managed to realize many achievements the most important of which are the expansion of the Customers’ Base, launching several banking products which found a wide satisfaction from the Bank Customers besides the permanence in the policy of expansion and propagation through the opening of three new branches and expanding the network of the ATMs. The Bank went on with the operations of continuous development to its human resources, communication channels, the main mechanisms of work and the technological systems according to the latest developments and data in modern banking industry.

Chairman Statement


Due to its successful strategy and preserved policy, the Finance Portfolio continued to score distinguished performance with regard to the quality and durability of its assets. The Bank continued to record a rate of minimal percentage less than 0, 06% which is considered the best among all the banks in Sudan. The Bank enjoys as well, an excellent balance sheet as the rate of the capital adequacy ratio is 28% which reflects specifically the sound policy in risks management which Al Jazeera Bank is following. With respect of the commitment towards the social responsibility, the Bank carried on with its inputs and efforts during the last year, in playing its role in serving the Sudanese Society and reserved no effort in supporting many social, charitable, sportive and humanitarian activities and will continue N Shaaa Allah in the expansion of exercising this role without tiredness and weariness once we are convinced with the importance of maintaining the social structure of the Sudanese Community, its descent values and deep-rooted patrimony.

Ladies and Gentlemen..When anticipating the year 2013, the Board of Directors is looking towards the future positively and optimistically with hope. We are all confident that it is important to keep on this success which we have started to see its outcome.. and we would be keen to carry on with our successful strategy by working hard to improve the financial status of the Bank, develop and diversify the revenues base, expand the network of the branches and improve its products, update the customer service and strengthen the relation with them, provide the retailing operation by buying more than one product to one customer and decrease the risks through optimum use of the available resources.

As part of our main projects in 2013, we are trying to own a ready building for the bank headquarter which satisfies the requirements of banking. The Board of Directors is currently looking at several options among which, exchanging one of the lands owned by the Bank with a finishing building of ten floors at the stage of last touches. When this project is completed, the Bank will have a better working environment to provide distinguished services to the customers, attain the highest functionality and environmental competence and to utilize the latest technical systems besides emphasizing the identity of the Bank.

Ladies and Gentlemen..The data of the Khartoum Stock Exchange Market shows that the shares of Al Jazeera Sudanese Jordanian Bank which were recording limited fluctuation in daily use, started to rise from SDG 2,3 at the end of the year 2011 to SDG 5,4 at the end of the year 2012. The percentage of augmentation of the share reached about 134%. Besides, the profit of the share of Al Jazeera Bank reached 10% at the end of the year 2012 compared with 7% at the end of the year 2011. The proposal of distributing the profits of the year 2012 as free shares which is presented before you comes within the special strategy of the Bank to support the Capital Base and the rights of property the fact that would enhance the capacity of the Bank to expand the scope of its works, increase the volume of its activities, boost up its competitive capabilities and empower it to confront the future challenges.

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Ladies and Gentlemen..Finally, I would like to convey my thanks and appreciation to all the Shareholders of the Bank for their trust and full support to the Bank throughout its victorious progress. I also appreciate the great efforts and full commitment made by the Executive Administration including managers, employees and workers for the continuous improvement of the works of the Bank and its activities.Our sincere regards and deep appreciation are conveyed to the Central Bank of Sudan for their continuous initiatives and support. Greetings, thanks and appreciation are conveyed as well to our respectful customers and our correspondents from the banks and financial institutions all over.We should also thank our virtuous scholars, Head and Members of the Sharia Supervisory for their blessed efforts and serious attempts in improving our exercising of banking business in accordance with the Islamic Sharia.. Gratitude is also conveyed to the External Auditor and members of his team for the efforts they made in planning and preparing the auditing in a timely manner of efficiency and professionalism. Thanks should also go to the Registrar General of Companies to the Republic of Sudan, and representatives of Khartoum Stock Exchange.

Alsalamu Alaykum wa Rahmatu Allah Ta’ala wa Barakatu , , ,

Ayman Hazzaa Barakat ElmajaliChairman of the Board of Directors


154

349

48

174

10

131

11

42

707

415364

230149

3

9

2012

2012

2012

2011

2011

2011

2010

2010

2010

2009

2009

2009

2008

2008

2008

Total Assets (2008-2012)Millions SDG

Net sales receivables (2008-2012)Millions SDG

Total deposits (2008-2012)Millions SDG

Financial Indicator

(2008-2012) : Millions SDG

21

49

3331

22

227

173158

145136

9

2012

2012

2011

2011

2010

2010

2009

2009

2008

2008

Total owners› equity (2008-2012)Millions SDG

Total revenue (2008-2012)Millions SDG


In the Name of Allah, the Most Gracious, the Most MercifulPraise be to Allah and all blessings and peace to our Master Mohamed,

his family, companions, and those who follow them.

Report of the Shari’a Supervisory Board to the General Assembly of Shareholders for the period from 1/1/ 2012 to 31/12/2012

Following the regulatory standard No. (1) for the Shari’a Supervisory Board issued by the Organization of Islamic Financial Institutions Accounting and Auditing (Bahrain), the Shari’a Supervisory Board submits the following report to the Shareholders’ annual Meeting:1- The Shari’a Supervisory Board has reviewed all the investment contracts submitted to it and

advised all necessary corrections in the contracts.2- The Board has reviewed the balance sheet and the income statement of the year ending

at 31/12/2012, and the notes related to these financial statements, in addition the Board has listened to clarification of the Bank’s management for what is reported in the financial statements and remarked on it. According to its minutes.

3- The management is responsible for the Bank’s compliance with Islamic Shari’s Principles, while the Supervisory Board is responsible for offering an independent opinion based on its review of the Bank’s operations and reporting to the meeting.

4- The Board has monitored the operations of the Bank during 2011 and decided the following:A- All the contracts and operations made by the Bank during the year ending at 31/12/2012

and submitted to the Board were compliant with the Shari’a principles.B- The profit sharing of investment accounts was in accordance with what is agreed on by the

Board and according to Shari’a principles.c- The Board insured that illegal earnings were spent in honorable activities.5- The Board as it asserts that the compliance of the entire Bank’s activities with the Shari’a

laws falls on the Bank’s management, it declare that all the transactions made by the Bank during the year are not against Islamic Shari’a, this limited to what was submitted to the Board, the reviewed transactions, the remarks made and the response of the management to its comments.

The Shari’a Supervisory Board

Shaikh Ibrahim Ahmed El Shaikh El Darir HeadProf. Mohamed El Hassan Braimer Ibrahim MemberDr. Ibrahim Ahmed Osman Khaleel Member

Shari’a SupervisoryBoard Report

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To: Members.Al Jazeera Sudanese Jordanian BankWe have audited the accompanying Financial Statements of Al Jazeera Sudanese Jordanian Bank from page 2 to 12 which comprise the statement of financial position as at December 31, 2012, and the statement of comprehensive income, statement of cash flows and statement of changes in equity for the year then ended.

Bank Management’s Responsibility:Management is responsible for the preparation and fair presentation of these financial statements in accor-dance with the Accounting Standards Of Accounting & Auditing Organization For Islamic Financial Institutions (AAOIFI), 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; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the cir-cumstances.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit.We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

Our audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depended on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we considered internal controls relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the bank’s circumstances, but not for the purpose of expressing an opinion on the effectiveness of bank’s internal control. Our audit also included 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.

OpinionIn our opinion, the financial statements give a true and fair view of the financial position of Al Jazeera Suda-nese Jordanian Bank at December 31,2012, and of the results of its operations and its cash flows and changes in equity for the financial year then ended in accordance with the Shari’a Rules and Principles as determined by the Shari’s Board of Al Jazeera Sudanese Jordanian Bank and the accounting standards of AAOIFI and com-ply with the Companies’ Ordinance 1925 and the Banking Business (Organization) Act 1991.

Mohamed Suliman Abdalla Haggar FCCA Partner

Mohamed Suliman Haggar & Co. Date: 17/3/2013

Auditors’ Report

حممد �شليمان حجار و�شركاهحما�سبون ومراجعون قانونيون

م�شت�شارون ماليون

MOHAMED SULIMAN HAGGAR & CO.CERTIFIED ACCOUNTANTS FINANCIAL CONSULTANT

املقر/�شقة رقم »4« الطابق ال�شاد�س - عمارة املبارك - �شارع احلرية

�س.ب: 3328 - اخلرطوم - ال�شودان

العنوان التلغرايف: حا�شبون اخلرطوم

تلفون: 784639 فاك�س: 776851

FLAT - 4 - 6TH FLOOR - ELMUBARAK BUILDING - HURRIA ST.P.O. BOX: 11256 KHARTOUM - SUDANPh: 784639 - Fax: 776851E-mail:[email protected] www.hasibeen.web.com


Assets: Note 2012 2011 SDG SDGCash & cash equivalent (3) 178.605.292 78.818.250SWAP Deposit with CBOS (4) 89.751.000 41.323.500Sales receivables (5) 154.146.801 47.753.668Investments (6) 98.622.892 99.182.906Participations (7) 9.255.388 7.914.681Other Investments (8) 86.500.000 63.240.394Other debtors (9) 14.370.569 11.235Other assets (10) 11.478.794 12.439.540Capitalized expenditure (11) 6.082.180 6.978.139Fixed assets under construction (12) 176.355 1.207.859Fixed assets (net book value) (13) 58.457.749 56.395.433Total assets 707.447.020 415.265.605

Liabilities, unrestricted investments accounts and owners equity:- Liabilities:-Current accounts & saving accounts (14) 260.146.525 148.853.370Payables (15) 89.422.391 31.877.899Other liabilities (16) 6.955.865 2.358.910Total liabilities 356.524.781 183.090.179Unrestricted investment accounts (17) 88.925.954 24.704.059Central Bank of Sudan Deposit 34.804.500 34.804.500Total liabilities & unrestricted investment A/C’s 480.255.235 242.598.738

Owners’ equity:Paid up capital (18) 154.206.338 154.206.338 Legal reserve 5.191.034 3.619.853Revaluation deposit reserve with bank of Sudan (19) 51.377.850 2.950.350Retained earnings (20) 16.416.563 11.890.326Total owner’s equity 227.191.785 172.666.867

Total liabilities, unrestricted investment accounts and owners’ equity

707.447.020 415.265.605

Contra accounts (21) 123.349.258 96.740.973

The attached notes form an integral part of these statements

Ayman Hazzaa Almajali Amir Allawi Chairman General Manager

Financial Position As At 31 Dec 2012

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Statement of Income

For the year ended 31 Dec 2012

Income: Note 2012 2011 SDG SDGDeferred sales 13.604.297 4.994.651Investments 13.706.143 16.417.905Total income from investment & finance 27.310.440 21.412.556Less:-Return on unrestricted investments 4.336.742 4.001.789 Bank’s share in income from investment (as a mudarib &as fund owner)

22.973.698 17.410.767

Add:-Bank’s income from its own investment other revenues (22) 7.447.287 3.392.611Revenue from banking services (23) 15.521.393 11.588.295Other revenues (24) 1.307.348 499.472Income from capitalized (25) 618.589 -Revaluation of foreign currency 1.538.987 -Total bank revenue 49.407.302 32.891.145Less:-Human resource cost (26) 15.220.966 9.997.431Administrative and general expenses (27) 9.043.571 6.341.690Depreciation 2.811.548 2.316.744Amortization 1.082.585 1.068.123Provision for doubtful debts 1.466.478 360.428Total expenses 29.625.148 20.084.416Net income (loss) before Zakah & tax 19.782.154 12.806.729Less:-Provision for Zakah 1.379.255 136.349Provision for business income tax 1.152.103 223.840Net income (loss) after Zakah & tax for the year 17.250.796 12.446.540Less:-Legal reserve 1.571.181 1.244.654Net income 15.679.615 11.201.886Return share Pounds 10




Statement of Cash Flows

For the year ended 31 Dec 2012

Cash flows from operations: 2012 2011 SDG SDG Net income (loss) 15.679.615 11.201.886Net cash provided by operating activities:-

Depreciation 2.811.548 2.316.744Pre-operating exp. (895.959) -Provision for doubtful accounts 1.466.478 360.428Provision for Zakah 1.379.255 136.349Provision for taxes 1.152.103 223.840Zakah & tax paid (360.189) -Return on unrestricted investment A/C’s (4.336.742) 4.001.789Purchase of fixed assets (5.007.824) (35.258.638)Sale of fixed assets 133.960 -

Asset under construction (1.031.504) -Increase in legal reserve 1.571.181 1.244.654Increase in capital A/C - 206.338Revaluation deposit reserve 48.427.500 2.950.350Prior year adjustment - (1.326.828)Net cash flows provided by operations 60.989.422 (13.943.088)Net (Increase) decrease in sales receivables (106.393.133) (38.088.590)Decrease (Increase) in investments (24.040.299) 20.172.593Net cash flows from (used in) investing activities (130.433.432) (17.915.997)Cash flows from financing activities:-Net increase (Decrease) in unrestricted investment 68.775.916 (16.000.092)Net increase (Decrease) in current accounts 111.293.155 54.836.027Distributed profit (11.153.378) -Increase (Decrease) in credit balances 62.141.447 (6.483.492)Increase (decrease) in other assets (13.398.588) (2.049.072)Net cash flows provided by financing activities 217.658.552 30.303.371Increase (Decrease) in cash & cash equivalent 148.214.542 (1.555.714)Cash and cash equivalent at beginning of year 120.141.750 80.373.964Cash and cash equivalent at end of year 268.356.292 78.818.250



27

Stat

emen

t o

f ch

ang

es in

ow

ner

’s e

qu

ity

Year

en

ded

31/

12/ 2

012

Des

crip

tion

Paid

up

capi

tal

Rese

rves

Ret

aine

dea

rnin

gsTo

tal

Lega

l res

erve

Rev

alua

tion

rese

rve

Bala

nce

as a

t 1/1

/201

114

3.68

2.00

02.

375.

199

-12

.333

.268

158.

390.

467

Prio

r yea

r adj

ustm

ent

--

-(1

.326

.828

)(1

.326

.828

)

Net

inco

me

--

-12

.446

.540

12.4

46.5

40

Tran

sfer

to re

serv

es-

1.24

4.65

4-

(1.2

44.6

54)

-

Exch

ange

of r

eser

ve-

-2.

950.

350

-2.

950.

350

Issu

e of

sha

re20

6.33

8-

--

206.

338

Capi

taliz

ed p

rofit

10.3

18.0

00-

-(1

0.31

8.00

0)-

Bala

nce

as a

t 31/

12/2

011

154.

206.

338

3.61

9.85

32.

950.

350

11.8

90.3

2617

2.66

6.86

7

Net

inco

me

--

-15

.679

.615

15.6

79.6

15

Dis

trib

uted

pro

fit-

--

(11.

153.

378)

(11.

153.

378)

Exch

ange

of r

eser

ve-

-48

.427

.500

-48

.427

.500

Lega

l res

erve

s-

1.57

1.18

1-

-1.

571.

181

Bala

nce

as a

t 31/

12/2

012

154.

206.

338

5.19

1.03

451

.377

.850

16.4

16.5

6322

7.19

1.78

5

The

atta

ched

not

es fo

rm a

n in

tegr

al p

art o

f the

se s

tate

men

ts

Ay

man

Haz

zaa

Alm

ajal

i

A

mir

Alla

wi

C

hairm

an

G

ener

al M

anag

er


1/ Status and operations:Aljazeera Sudanese Jordanian Bank was established in August 2006 under the company’s ordinance 1925 Registration Certificate No.28581 In accordance with Bank of Sudan License No 11/2008.To rend commercial, financial agricultural & business consultancy services and etc. all banking activities, and to apply bank financial resources in accordance with the Islamic models of finance.

2/Significant accounting policies:The financial statements have been prepared under the historical cost convention in accordance with Bank of Sudan directors, Accounting and Auditing Standards & the Organization of Islamic Financial Institutions (AAOIFI).

2-1/ Revenue recognition: - Deferred sales receivable profits are recognized on settlement.

- The bank commission is recognized as revenue when rendering bank service.

- The earning purchase is recognized when reported by general meeting of share holder of the company.

- Interest received from foreign correspondents is kept in a separate a/c and disposed of according to Shari’a board fatwa.

2-2/ Fixed assets:Fixed assets are valued at cost less accumulated depreciation. Routine repairs and maintenance are treated as expenses when incurred.

Depreciation has been charged to write off assets value over their estimated useful lives on an annual basis using the straight line method applying rates ranging between (2,5 – 30%).

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

2-3/ Foreign currency translation:1/Transactions in foreign currency are recorded at exchange ruling rates at the date

they take place any differences are treated in the profit and loss A/C.

2/Assets and liabilities in foreign currencies at balance sheet date are translated to Sudanese pounds at the exchange ruling rate at that date and any differences in exchange are treated in the profit and loss a/c.

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

Notes to the financial

statements as at 31/12/2012

29

2-5/Investment:Short term investment is recorded at its actual value and revalued at the date of financial statement at the fair value. Difference in value will be a located to profit & loss a/c.

2-6/Return on investment deposits:1/The return on investment deposits is calculated on the basis agreed upon by the

bank management and the Islamic Shari’a board.

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

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

2-7/Provision for doubtful debts:The provision for doubtful debts is to be charges according to the bank of Sudan instructions.


3/Cash and cash equivalents: 2012 2011 SDG SDG

Local currency 12.022.200 3.608.649

Foreign currency 3.558.709 792.522

Central Bank of Sudan current accounts (local) 24.744.397 34.173.187

Central Bank of Sudan current accounts (foreign) 9.723.756 6.691.296

Central Bank of Sudan statutory reserve (local) 43.770.734 16.058.000

Central Bank of Sudan statutory reserve (foreign) 10.546.078 1.213.200

Correspondent 74.239.418 16.281.396

178.605.292 78.818.250

4/ SWAP deposit with CBOS:- 2012 2011

Exchange agreement between the Central Bank of Sudan and Jordanian Bank amounts 15 million dollars

89.751.000 41.323.500

5/Sales receivables:-

Self financed

Jointly financed

2012SDG

Self financed

Jointly financed

2011 SDG

Sales receivable 79.245.810 118.868.716 198.114.526 22.670.874 34.006.312 56.677.186

(- )Profit sales receivable. - - (41.981.894) - - (8.258.287)

(-) Provision for doubtful receivable (bad)

- - (1.980.469) - - (650.032)

(-) Provision for doubtful receivable (normal)

- - (5.362) - - (15.199)

Net sales receivable 79.245.810 118.868.716 154.146.801 22.670.874 34.006.312 47.753.6686/ Investments:-

Musharakat(-) Provision for doubtful debts

2.837.758(28.378)

4.256.638(42.566)

7.094.396(70.944)

320.000-

480.000-

800.000-

Net Musharakat 2.809.380 4.214.072 7.023.452 320.000 480.000 800.000

Investment Securities 25.878.721 38.818.082 64.696.803 10.850.480 16.275.720 27.126.200

(-) Provision for doubtful debts - - - - - -

Total Investments Securities 25.878.721 38.818.082 64.696.803 10.850.480 16.275.720 27.126.200

Portfolios 2.997.364 4.496.046 7.493.410 23.763.422 35.645.134 59.408.556

Inventories 7.793.664 11.690.497 19.484.161 4.739.260 7.108.890 11.848.150

Provisions for doubtful debts (29.974) (44.960) (74.934) - - -

Total 10.761.054 16.141.583 26.902.637 28.502.682 42.754.024 71.256.706

Total Investments 39.449.155 59.173.737 98.622.892 39.673.162 59.509.744 99.182.906



31



7/Participations: - 2012 2011 SDG SDG

GZ company share 9.246 27.704

Trading building - Madani 2.133.442 754.027

Com-Arab Igara 7.112.700 7.112.700

Sudanese Jordanian investment company - 20.250

9.255.388 7.914.6818/Other Investments:-

Albaraka Bank deposit 6.000.000 -

Tadamon Islamic Bank deposit - 990.102

Finance Investment Bank deposit 30.500.000 15.000.000

Fiasal Islamic Bank deposit 50.000.000 47.000.000

Omdurman National Bank deposit - 250.292

86.500.000 63.240.3949/ Other debtors:-

Khartoum trading debts - 10.965

Share holders debts - 270

Sugar /L/c with Bank of Sudan 14.370.569 -

14.370.569 11.23510/ Other assets:-

Accrued revenues 8.933.550 11.165.582

Prepaid exp 1.752.361 1.029.991

Staff loans 425.938 163.543

Stock of stationary 166.253 80.424

Debtors under settlement 200.692 -

11.478.794 12.439.54011/ Capitalized expenditure:-

Balance at 1/1 10.726.468 10.966.726

Additions 194.911 -

Disposals (8.285) (240.258)

(-) Amortization (4.830.914) (3.748.329)

Net capitalized expenditure 6.082.180 6.978.13912/ Fixed assets under construction:-

Cost of computer soft ware 176.355 576.030

Cost of an Iris Scan system - 558.709

Assets for Almanagle agency - 73.120

176.355 1.207.859


Notes to the Financial Statements

Fixed Assets and Depreciation as at 31/12/2012

13/ Fixed assets:-

Particu

larsLan

dM

oto

r Veh

iclesO

ffice

furn

iture’s

Co

mp

uter

Equ

ipm

ents

Bu

ildin

gs

Deco

rTo

tal

Co

st:-B

alance 1/1/2012

46.248.5211.535.659

2.041.9715.823.056

2.074.646501.352

5.080.39863.305.603

Ad

ditio

ns

2.264-

594.3943.281.362

219.070-

910.7345.007.824

Disp

osals

-213.355

5.487-

--

-218.842

Balan

ce 3

1/1

2/2

01

24

6.2

50

.78

51

.32

2.3

04

2.6

30

.87

89

.10

4.4

18

2.2

93

.71

65

01

.35

25

.99

1.1

32

68

.09

4.5

85

Depreciation:-

Rate

-15%

10%20%

25%2.5%

10%

Balan

ce 1/1/2012-

488.816713.202

3.379.332848.554

43.8681.436.398

6.910.170

Dep

. On

year-

222.348269.946

1.087.321294.801

12.534508.040

2.394.990

Dep

. add

ition

s-

-48.905

310.73411.382

-45.537

416.558

Dep

. disp

osals

-82.284

2.598-

--

-84.882

Balan

ce 3

1/1

2/2

01

2-

62

8.8

80

1.0

29

.45

64

.77

7.3

87

1.1

54

.73

75

6.4

02

1.9

89

.97

49

.63

6.8

36

Net b

oo

k value

at 31

/12

/20

12

46

.25

0.7

85

69

3.4

24

1.6

01

.42

24

.32

7.0

31

1.1

38

.97

94

44

.95

04

.00

1.1

58

58

.45

7.7

49

Net b

oo

k value

at 31

/12

/20

11

46

.24

8.5

21

1.0

46

.84

31

.32

8.7

69

2.4

43

.72

41

.22

6.0

92

45

7.4

84

3.6

44

.00

05

6.3

95

.43

3

33

14/Current and saving accounts:- 2012 2011 SDG SDG

Current deposit (local) 229.898.159 133.833.596

Current deposit (foreign) 18.761.181 8.465.209

Saving deposit (local) 11.462.791 6.551.737

Saving deposit (foreign) 24.394 2.828

260.146.525 148.853.37015/ Payables:-

Bills payable (local) 18.335.249 2.961.125

Bills payable (foreign) - 302.055

Export accounts 19.327.922 5.673.572

Margin on L/Cs 50.220.156 19.584.878

Margin on L/Gs - 214.562

Accrual expenses 656.371 69.141

Charity fund 873 -

Document under collection - 2.295.524

Metal closed insurance 22.750 13.000

Central Bank of Sudan (Export incentive A/C) - 563.887

Transfer under collection 614.670 111.384

ATM of demand claims 244.400 88.771

89.422.391 31.877.89916/ Other liabilities:-

Provision for Zakat 1.379.255 136.349

Provision for business income tax 1.152.103 223.840

Provision for post service benefits 29.853 99.787

Provision for audit fees 58.400 103.500

Provision for last chairman - 250.000

Bonus 2.000.000 -

Contribution in the deposit guarantee fund - 336.612

Provision for unrestricted investments 2.336.254 1.197.857

Provision for doubtful debts - 10.965

6.955.865 2.358.91017/ Equity of unrestricted investments A/C’s:-

Deposit investment (local currency) 87.280.604 24.560.858

Deposit investment (foreign currency) 1.645.350 143.201

88.925.954 24.704.059




االيضاحات على القوائم المالية18/ Share capital:- 2012 2011 SDG SDG

Authorized share capital 100,000,000$ ordinary shares of 1$ each 100.000.000 100.000.000

Paid up capital:-

Paid up capital 154.206.338 154.206.33819/ Revaluation swap deposit reserve:-

Balance in 1/1/2012 2.882.091 2.882.091

Balance of swap deposit with C.B.S at 31/12/2012 48.427.499 -

Foreign exchange for share 68.260 68.260

51.377.850 2.950.35120/ Retained earnings:-

Balance b/f 1/1 736.948 688.440

Retained earnings 15.679.615 11.201.886

16.416.563 11.890.32621/ Contra accounts:-

Letters of credit 120.697.510 95.396.410

Letters of guarantee 1.208.385 366.394

Cheques under collection 1.443.363 978.169

123.349.258 96.740.97322/ Bank’s income from own investment:-

Tadamon Islamic Bank deposit 40.048 513.641

Omdurman National Bank deposit 370.488 1.277.959

Sudanese Islamic Bank deposit 369.865 1.151.539

Bank of Khartoum deposit 59.911 449.472

Fiasal Islamic Bank deposit 4.201.370 -

Finance investment bank deposit 2.405.605 -

7.447.287 3.392.611



35

23/ Revenue from banking services:- 2012 2011 SDG SDG

Commission on transfers 114.099 18.799

Commission on letters of credit 10.202.642 8.878.321

Commission on letters of guarantee 60.775 64.451

Commission on ATM & swift 139.968 -

Commission on ledger fees 1.239.234 673.542

Foreign exchange profit 3.764.675 1.953.182

15.521.393 11.588.29524/ Other revenues:-

Rent Madani branch building 37.887 -

Income from sale of fixed assets 126.489 -

Insurance commission 485.000 499.472

Income from legal 51.258 -

Certificate of financial ability 58.500 -

Comm. from return cheques & counter cheques 7.457 -

Safe security 14.050 -

Income from statement & certificate 43.853

Income from finance & applications services 482.854

1.307.348 499.47225/ Income from capitalized share:-

Income from Arabic company for Igara 618.589 -

26/ Human resource cost:-

Principle salaries 6.165.212 4.569.297

Annual periodicity allowance 594.969 358.783

Transport allowance 1.967.953 1.422.733

Taxes 522.868 247.184

Terminal benefit 31.374 67.570

Medical Exp. 339.067 217.047

Social insurance 1.409.131 996.467

Post service benefits 3.938.684 1.906.210

Training Exp. 165.985 109.215

Overtime 85.723 102.925

15.220.966 9.997.431




27/ General administrative expenses:-

Insurance of assets 115.635 70.379

Stationary 112.123 68.856

Printed 57.369 41.543

Water & electricity 396.428 339.687

Rents & rates 1.365.716 1.141.034

Magazines & newspapers 13.127 11.890

Portage & packing 18.700 7.125

Security exp. 386.663 323.657

Cleaning exp. 236.791 180.032

Post, telex & telephone 356.646 286.889

Entertainment exp. 146.761 88.461

Other 4.529 4.743

Consultancy exp. 322.527 213.189

Donations 167.585 47.144

Advertising exp. 494.606 509.186

Transportation & loading 170.308 160.202

Clearing exp. 34.084 19.446

Board of director exp. 1.000.000 -

Deposits Security fund 336.612 509609

Board of directors and other board committee expenses 804.022 1.021.817

Subscriptions of financial organizations 231.709 220.477

Cash sorting exp. 33.927 17.403

Commission paid to Central Bank 52.519 37.642

Audit fees 120.000 90.000

Audit fees tax (VAT) 20.400 13.500

Local service fees 22.149 11.500

Repairs & maintenance 278.623 160.909

Operating & transport exp. 189.174 115.125

ATM & computer exp. 1.101.021 572.897

Stamp student support 9.680 3.863

Commissions paid to correspondent 18.604 46.209

Custom dues of the former director/ general - 250.000

IPO expenses - 148.068

Bad debts 34.741 -

9.043.571 6.341.690



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