İllİk hesabat annual RepoRt

OPEN JOINT STOCK COMPANY AMRAHBANK JOINT STOCK BANK 

 

STATEMENT OF CASH FLOWS  

FOR THE YEAR ENDED 31 DECEMBER 2008 

(in Azerbaijan Manats) 

7 

 

 

 

Notes 

Year ended 

31 December 

2008 

 

Year ended 

31 December 

2007 

 

 

   

 

CASH FLOWS FROM OPERATING ACTIVITIES: 

 

   

 

Profit before income taxes  

 

4,053,511   

1,313,927 

Adjustments for: 

 

   

 

(Recovery of provision)/provision for impairment losses on 

interest bearing assets 

5, 23 

(445,763)   

2,415,929 

Recovery of provision for impairment losses on other 

transactions 

5 

-   

(206,870) 

Translation gain on foreign exchange operations 

6 

(313,461)   

(19,702) 

Depreciation and amortization expense 

8 

133,797   

105,468 

Change in interest accruals, net 

 

494,231 

 

(448,199) 

 

 

   

 

Cash flow from operating activities before changes in operating 

assets and liabilities 

 

3,922,315   

3,160,553 

(Increase)/decrease in operating assets: 

 

   

 

Minimum reserve deposit with the National Bank of the 

Republic of Azerbaijan 

 

182,205 

 

(651,765) 

Due from banks 

 

(1,158,507)   

458,326 

Loans to customers 

 

(1,315,686)   

(16,620,740) 

Other assets 

 

(206,545)   

(230,238) 

Increase/(decrease) in operating liabilities: 

 

   

 

Due to banks and other credit institutions 

 

(3,266,926)   

5,220,658 

Customer accounts 

 

5,451,857   

12,252,264 

Other liabilities 

 

120,912   

73,574 

 

 

   

 

Cash inflow from operating activities before income taxes 

 

3,729,625   

3,662,632 

 

 

   

 

Income tax paid 

 

(281,988)   

(415,815) 

 

 

   

 

Net cash inflow from operating activities 

 

3,447,637   

3,246,817 

 

 

   

 

CASH FLOWS FROM INVESTING ACTIVITIES: 

 

   

 

Purchase of property, equipment and intangible assets 

15, 16 

(7,082,685)   

(89,028) 

Purchase of investments available-for-sale 

14 

(5,562,993)   

- 

 

 

   

 

Net cash outflow from investing activities 

 

(12,645,678)   

(89,028) 

 

 

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OPEN JOINT STOCK COMPANY AMRAHBANK JOINT STOCK BANK 

STATEMENT OF CASH FLOWS (Continued) 

FOR THE YEAR ENDED 31 DECEMBER 2008 

(in Azerbaijan Manats) 

8

Notes

Year ended

31 December 

2008

Year ended 31 

December 

2007

CASH FLOWS FROM FINANCING ACTIVITIES:

Issue of ordinary share capital

20

3,141,100

2,900,000

Share premium

20

5,140,410

-

Dividends paid

20

(1,215,000)

(1,400,000)

Net cash inflow from financing activities

7,066,510

1,500,000

Effect of foreign exchange rate changes on cash and cash 

equivalents

(199,483)

(78,758)

NET (DECREASE)/INCREASE IN CASH AND CASH 

EQUIVALENTS

(2,331,014)

4,579,031

CASH AND CASH EQUIVALENTS, at the beginning of the year

11

7,509,299

2,930,268

CASH AND CASH EQUIVALENTS, at the end of the year

11

5,178,285

7,509,299

Interest received and paid by the Bank in cash during the year ended at 31 December 2008 amounted to 

AZN 9,340,228 and AZN 3,946,084, respectively. 

Interest received and paid by the Bank in cash during the year ended at 31 December 2007 amounted to 

AZN 5,327,648 and AZN 2,504,584, respectively. 

The notes on pages 9 to 55 form an integral part of these financial statements.  

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OPEN JOINT STOCK COMPANY AMRAHBANK JOINT STOCK BANK  

 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEAR ENDED 31 DECEMBER 2008  

(in Azerbaijan Manats) 

 

9 

 

1.  ORGANISATION 

 

Limited Liability Commercial Bank Amrahbank was established on 1 December 1993 in accordance 

with the establishment agreement and was registered by the National Bank of the Republic of 

Azerbaijan on 28 December 1993. On 14 July 2004, it changed its legal status and name from a 

Limited Liability Commercial Bank Amrahbank to Open Joint Stock Company Amrahbank Joint 

Stock Bank (the “Bank”). The address of its registered office is 10 Yusif Safarov Street, Baku, AZ 

1025, Azerbaijan. The Bank is regulated by the National Bank of the Republic of Azerbaijan (the 

“NBA”) and conducts its business under the general banking license number 171. The Bank’s 

principal business activities are commercial and retail banking operations. The Bank had 22 and 19 

branches in Azerbaijan as at 31 December 2008 and 2007, respectively. 

 

As at 31 December 2008 and 2007 the following individuals owned the share capital of the Bank: 

 

 

31 December 

2008 

Ownership 

interest, % 

 

31 December 

2007 

Ownership 

interest, % 

 

   

 

Ildirimzade Yunis Ali 

50.01   

78.99 

IIB Caspian Investment Company 

49.00   

- 

Ildirimzade Elza Abbas 

0.33   

7.78 

Ildirimzade Amrah Yunis 

0.33   

3.23 

Ildirimzade Khalid Yunis 

0.33   

3.22 

Ildirimzade Nazim Ali 

-   

6.78 

 

   

 

Total 

100.00   

100.00 

 

These financial statements were authorized for issue by the Management Board on 29 April 2009. 

 

 

2.  BASIS OF PRESENTATION 

 

Accounting basis 

 

These financial statements of the Bank have been prepared in accordance with International 

Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board 

(“IASB”) and Interpretations issued by the International Financial Reporting Interpretations 

Committee (“IFRIC”).  

 

These financial statements are presented in Azerbaijan Manats (“AZN”) unless otherwise indicated. 

These financial statements have been prepared under the historical cost convention. 

 

The Bank maintains its accounting records in accordance with Azerbaijan law. These financial 

statements have been prepared from the Azerbaijan statutory accounting records and have been 

adjusted to conform with IFRS. These adjustments include certain reclassifications to reflect the 

economic substance of underlying transactions including reclassifications of certain assets and 

liabilities, income and expenses to appropriate financial statement captions. 

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