İllİk hesabat annual RepoRt
Yüklə 2,74 Mb. Pdf görüntüsü
|
- Bu səhifədəki naviqasiya:
- OPEN JOINT STOCK COMPANY AMRAHBANK JOINT STOCK BANK NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2008
- Ordinary shares Total authorized, issued and paid-in share capital
- 31 December 2008 128,207
- 21. COMMITMENTS AND CONTINGENCIES
- 31 December 2008 Nominal amount 31 December 2007 Nominal amount
- Capital commitments
- Taxation
OPEN JOINT STOCK COMPANY AMRAHBANK JOINT STOCK BANK NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2008 (in Azerbaijan Manats) 35
The movements in capital during the years ended 31 December 2008 and 2007 were as follows: Ordinary shares Total authorized, issued and paid-in share capital
31 December 2006 67,796
Issue of shares 29,000
31 December 2007 96,796
Issue of shares 31,411
31 December 2008 128,207
In June 2008 IIB Caspian Investments Limited, a subsidiary of the International Investment Bank of Bahrain, became a 49% shareholder of the Bank (purchase contract dated 18 July 2007). Accordingly, the Bank issued 31,411 ordinary shares of AZN 100 each, at a price of AZN 263.65 per share to IIB Caspian Investments Limited (and the existing shareholders of the Bank transferred 31,411 ordinary shares of AZN 100 each to IIB Caspian Investments Limited). As a result in 2008 share capital of the Bank increased from AZN 9,679,600 to AZN 12,820,700. Share premium amounted to AZN 5,140,410 represents an excess of contributions received from IIB Caspian Investments Limited over the nominal value of shares issued.
In 2008 and 2007 the Bank declared and fully paid dividends of AZN 1,215,000 and AZN 1,400,000 on ordinary shares for the financial results of 2007 and 2006 financial years, respectively.
In the normal course of business the Bank is a party to financial instruments with off-balance sheet risk in order to meet the needs of its customers. These instruments, involving varying degrees of credit risk, are not reflected in the balance sheet.
The Bank’s maximum exposure to credit loss under contingent liabilities and commitments to extend credit, in the event of non-performance by the other party where all counterclaims, collateral or security prove valueless, is represented by the contractual amounts of those instruments.
The Bank uses the same credit control and management policies in undertaking off-balance sheet commitments as it does for on-balance operations. OPEN JOINT STOCK COMPANY AMRAHBANK JOINT STOCK BANK NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2008 (in Azerbaijan Manats) 36
As at 31 December 2008 and 2007 the nominal or contract amounts were: 31 December 2008 Nominal amount 31 December 2007 Nominal amount
Contingent liabilities and credit commitments
Commitments on loans and unused credit lines 121,547 384,380
Guarantees issued and similar commitments -
511,585 Total contingent liabilities and credit commitments 121,547 895,965
Extension of loans to customers within credit line limits is approved by the Bank on a case-by-case basis and depends on borrowers’ financial performance, debt service and other conditions. As at 31 December 2008 and 2007 such unused credit lines come to AZN 121,547 and AZN 384,380, respectively.
December 2008.
are received from customers and counterparties. Management is of the opinion that no material unaccrued losses will be incurred and accordingly no provision has been made in these financial statements.
varying interpretations and amendments. In addition, as management’s interpretation of tax legislation may differ from that of the tax authorities, transactions may be challenged by the tax authorities, and as a result the Bank may be assessed additional taxes, penalties and interest. The Bank believes that it has already made all tax payments, and therefore no allowance has been made in the financial statements. Tax years remain open to review by the tax authorities for three years. Operating environment - The Bank’s principal business activities are within the Republic of Azerbaijan. Laws and regulations affecting the business environment in the Republic of Azerbaijan are subject to rapid changes and the Bank’s assets and operations might worsen in case of negative changes in the political and business environment. Recent volatility in global financial markets and its effects on Azerbaijan - In recent months a number of major economies around the world have experienced volatile capital and credit markets. A number of major global financial institutions have either been placed into bankruptcy, taken over by other financial institutions and/or supported by government funding. Notwithstanding any potential economic stabilisation measures that may be put into place by the Azerbaijan Government, as a consequence of this turmoil in capital and credit markets there exists, as at the date these financial statements are authorised for issue, globally and in Azerbaijan, economic uncertainties surrounding the continual availability, and cost, of credit both for the entity and its counterparties globally and in Azerbaijan. These economic uncertainties may continue in the foreseeable future which could to some degree have an impact on the Bank’s profitability and recoverability of the assets at their carrying amount.
Yüklə 2,74 Mb. Dostları ilə paylaş:
|