IN THE NAME OF GOD · the Producer Price Index in 1396 increased 10.5 percent compared to the previous year. Since Producer Price Index is leading indicator, it can be concluded that

IN THE NAME OF GOD

2017 - 2018Annual Report

Management Report

Financial Highlights

Message from CEO

Iranian Economy in 1396 (2017/18)

Bank Profile

Strategic Direction

Business Model

Organization Chart

Investment Portfolio

Social Responsibilities

Awards & Achievements

Corporate Governance

Board Memebers

Internal Controls

Risk Management

Anti-money laundering

Committees

Bank’s Governing Rules & Regulations

Outcomes

Financial Summary

Operational Summary

Independent Auditor's Report

Financial Statements & Notes

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CONTENTS

Managem

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Independent Auditor's R

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M A N A G E M E N T R E P O R T


BANK PASARGAD Annual Report 2017-201806

MANAGEMENT REPORT

Dividend per Share (DPS)2015/16 2016/17 2017/18

Total Income2015/16 2016/17 2017/18

Return on Assets (ROA)2015/16 2016/17 2017/18

Total Equity

Credit Facilities Paid2015/16 2016/17 2017/18

Capital Share2015/16 2016/17 2017/18

Net Profit2015/16 2016/17 2017/18

Return on Equity (ROE)2014/15 2015/16 2016/17

Total Liabilities2015/16 2016/17 2017/18

Risk Weighted Assets2015/16 2016/17 2017/18

Earnings per Share (EPS)2015/16 2016/17 2017/18

Profit Before Tax2015/16 2016/17 2017/18

Capital Adequacy 2015/16 2016/17 2017/18

Total Assets2015/16 2016/17 2017/18

Deposits Received2015/16 2016/17 2017/18

Related to the bank’s shares

For the Year

Ratios

At the End of the Year

46.44

12,136,101 m 93,009,666 m

116,125,277 m

61,827,118 m

11,633,839 m

88,650,410 m (6,498,210) m

2,340,624 m

160

0

50,400,000 m

50,400,000 m

50,400,000 m0

(128.93)

(6,498,210) m

2,340,624 m

15.85% 2.31 % 16.84 %

5.17%

3.82 % 0.31 %

0

3.86 %

0

561,481,151 m

423,049,252 m

74,396,132 m

343,217,757 m

487,085,019 m

457,661,857 m

59,494,290 m

464,389,460 m

589,183,411 m

590,405,060 m

790,350,567 m

978, 190,596 m

1,368,738,097 m

649,899,350 m

852,177,685 m

497,622,670 m

646,589,465 m

Financial Highlights

230.83

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08 BANK PASARGAD Annual Report 2017-2018 Management Report

"All we have achieved are His Blessings"

Dear fellow shareholders

The spirit, energy and professionalism of my colleagues from across Bank

Pasargad have given me the ability to face challenges, and confidence in our future, both as Bank CEO and as a shareholder. While there is still work to be done, bank performed fairly well in the financial year 2017/18 despite challenging market conditions, and the Group is benefiting from the balance that the diversity of product and business mix, gives us.

Although Bank Pasargad share capital amount remained constant this year with IRR 50,400 bn, we maintained our position as one of the largest commercial banks in Islamic Republic of Iran. Bank staff in more than 12 years of service with honesty and passion achieved great results. We stood 166th among Top 500 Banking Brands worldwide which indicates a good

progress comparing to last year position. Being awarded as the best bank in Iran for Excellence in 3 consecutive years by Euromoney, Bank of the year of Islamic Republic of Iran for 6 consecutive years and best Islamic Iranian bank for 5 years by Banker, Iran Most Admired Knowledge Leader by MAKE is just a small part of our achievements.

Although economic growth rate declined sharply from 12.5 percent last year to 3.7 percent, our financial results for 2017/18 show the progress we have made. The group reported IRR 4,527bn consolidated net profit, which indicates a good growth comparing to last year results despite tough and sometimes unfair competition in Iranian banking network. Total assets of bank have also grown by 31% and reached IRR 852,178bn. In the same period, credit facilities were up 27% to reach IRR 589,183 billion while deposits stood at 646,589 billion, with 30% growth.

Our performance represents the movement towards Bank Pasargad vision which is to

Message from CEO

Our performance represents the movement towards Bank Pasargad vision which is to be the Middle East’s leading bank and be ranked among the world’s top 500 corporations.

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be the Middle East’s leading bank and be ranked among the world’s top 500 corporations. Bank mission is also to add value to stakeholders; relying on efficient, professional and creative human capital, rich fundamental values and organization culture, inspiring stakeholders' needs, green banking and social responsi-bility which shows our honest dedication to sustainable growth.

Bank Pasargad is committed to its social responsibility and to integrate sound environ-mental, social and governance practices into our day-to-day business activities. In this respect, strengthening digital infrastructures and developing clients' culture, more than 90 percent of Bank transactions are electronic.

Looking ahead

In the year ahead although economic predictions do not look favorable, we have some special plans to increase our non-joint income and move forward to our long term goal

as achieving IRR 40,000bn by the year 1400 (2022). We will focus on trade finance as Bank Pasargad has still access to SWIFT and maintains good relationship with corre-spondent banks despite unfair sanctions against Iranian banking system.We have also planned to increase our share in deposit and credit facilities domestic market, while planning to establish our first foreign branch in India to utilize better the opportunity of trade finance in one of the important Iran trade partner. Meanwhile, we continue our efforts in developing new business models, investing on Fintechs and start-ups and more innovative services to enhance our clients' digital experience. Our corporate banking department will try to meet corporate client needs by developing more specific packages. We aim to keep our high customer satisfaction level as to remain a "customer-fo-cused" bank fully compliant with bank’s motto "Customer is the essence of the bank". In closing, I would like to

express my gratitude to our shareholders for their trust, to appreciate our customers for their loyalty and support, to thank all board members and management team for their enormous efforts and to thank our great team of “bankers” for their responsible commitment and dedication to the bank.

Majid Ghasemi

10

I ranian Economy in 1396 ( 2017 / 2018 )

The Year 1396 was the first year of Iran’s sixth 5 year Development Plan. This plan is based on general policies such as, rapid and sustainable economic growth and employment, average growth of 8% during the plan, the continuous improvement of business environment and strengthening competitiveness.

Following a strong rebound in economic growth as result of JCPOA agreement (12.5 percent in 1395), economic growth rate declined sharply to 3.7 percent in 1396. Non-oil GDP growth was 4.6 percent due to positive growth in value added of construction sector.

The oil sector’s value added growth rate started decelerating in 1396 as oil sector’s value added has considerable share in GDP.

Also because of single digit Inflation rate, real deposit profit was positive, therefore for supporting internal (home) producers and granting credit facilities with lower rate, the Central Bank of Iran decreased the deposits rates. This reduction along with US threats in withdrawing from JCPOA, affected Iran's exchange market.

Exchange market experienced volatility and nominal exchange rate increased in the winter of 1396. In order to control exchange rate, the CBI increased its injection of foreign currencies into the market. Moreover, the Central Bank allowed banks to issue one-year Rial-denominated certificates of deposits (CDs) at 20% and foreign exchange-denominated CDs, and to pre sell gold coins with six to 12-month maturities.

In 1396, average inflation rate was 9.9 percent at the end of year 1396. On average, the Producer Price Index in 1396 increased 10.5 percent compared to the previous year. Since Producer Price Index is leading indicator, it can be concluded that the inflation rate will be expected to increase in 1397.

Furthermore, unemployment rate was 12.1 in the year 1396 and this rate remained high for both youth and women.

The situation in 1397 will depend mainly on government and CBI policies and the US position in JCPOA. Realization of higher economic growth, as envisaged in the Plan, needs stable economic situation and higher investment in the economy.

BANK PASARGAD Annual Report 2017-2018 Management Report


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Bank Prof i le

Bank Pasargad is a full-service commercial bank with a network of 327 branches in all 31 Iranian provinces. The bank focused on 3 principal business segments: Retail, Private and Corporate banking. Bank Pasargad was registered under No. 254300 at the Tehran Companies’ Registrar Office on September 4th, 2005.

The Central Bank of the Islamic Republic of Iran (CBI) issued the banking operation license No-2849 on September 13, 2005 in favor of Bank Pasargad.In accordance to Bank Pasargad Articles of Association, all the bank’s services and operations are in compliance with the related rules and regulations.

Bank Pasargad headquarter is located at: No. 430, West Mirdamad Blvd., Tehran, 74511-19697, Iran. The Bank has 56,509 share-holders composed of individual and institutional investors. Major shareholders of the bank as of March 20, 2018 were as follows:

Shareholders Shares

Type Number % of total Number % of total

Individual investors 56,149 99.36 10,815,783,085 21.46

Corporate investors 360 0.64 39,584,216,915 78.54

Total 56,509 100.00 50,400,000,000 100.00

Type Number of shares Ownership %

Pars Aryan Investment Co. 4,982,729,973 9.89

Nikandishan Soroush Fajr Co. 2,412,208,950 4.79

Hoordadrayan Co. 2,336,111,933 4.64

Sam Group Co. 1,891,803,816 3.75

Kharazmi Investment Co. 1,864,676,185 3.70

Milad Gostar Noavaran Co. 1,862,382,641 3.69

Tamin Atiyeh Co. 1,467,181,430 2.91

Daneshgostaran Atisaz Pouya 1,427,514,649 2.82

Saba Investment development and management Co. 1,420,000,000 2.82

Ms. Setareh Mansoobi 1,304,436,038 2.59

Binesh Pazhooh Iranian Co. 1,304,316,955 2.59

Salin Investment Consulting Co. 1,282,225,669 2.54

Mr. Mohammad Hadi Nik La’al Fard 1,280,941,936 2.54

Sahab Omid Iranian Co. 1,157,134,251 2.30

Hamghadam Trade Co. 1,132,196,168 2.25

Refah and Tamin Atiye Omid Institute 949,022,757 1.88

Koosar Hamyari Institute 824,236,265 1.64

Bareghe Omid Iranian Co. 524,958,123 1.04

Nazmavaran Pouyaye Iranian Co. 509,905,490 1.01

Other 20,466,016,771 40.60

Total 50,400,000,000 100.00

Bank Pasargad's ownership amongst individual and corporate investors:


Vision StatementWe aspire to be the Middle East’s leading bank and be ranked among the world’s top 500 corporations driven by five core philosophies and principles:

Customer is the essence of the bank / We shall always remain a fully customer-focused bank and consider our clients to be our biggest asset. We promise to serve all people regardless of their faith, color or nationality based on our moral and human beliefs. We pledge to be the best bank for our customers, assisting them to grow both domestically and internationally, enabling businesses to thrive and helping people to accomplish their dreams and achieve their aspirations.Add value to our stakeholders / We aim to realize high returns and further prosperity for our stakeholders by assuring a continuous and sustainable long-term growth for the bank. Innovation and evolution / We strive to continuously innovate our products and services based on the most advanced technologies and relentlessly evolve and raise the bar with respect to the increasingly sophisticated financial needs of our retail and institutional clients. Protect the environment / We remain committed to fulfilling our social responsibilities and confront social concerns by trusting our rich corporate culture, fundamental values and beliefs.Create positive economic impact in our communities / We are conscious and proud of our Iranian roots while remaining devoted to a global perspective. We are committed to playing an active role in the growth of the Iranian national economy and contributing to the advancement of every community in which we are present.

Achieving 40.000 billion RLS profit in 2022Achieving proper place in international banking and financial industryAchieving the first rank in deposit market share among Iranian banksIncreasing revenueAdding value to shareholders and other stakeholders

Strategic Direction

Our primary objective is to be the best provider of financial services for our customers while realizing high returns and further prosperity for our stakeholders by assuring a continuous and sustainable long-term growth for the bank.

Mission Statement Long-Term Goals


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Core Values and Beliefs Our values guide us in every decision we make and are the foundation for everything we do:

Ethics / Our commitment to high ethical standards, Islamic virtues, legal compliance and fairness is reflected in all values and beliefs embedded throughout our bankIntegrity / Our pledge to do what is right at all times under the highest standards of integrity fosters the confidence and trust of our shareholdersLoyalty / Our devotion to clients and desire to build long-term relationships is revealed on a daily basis by inexhaustible loyalty to our clients and respecting client confidentialityResponsibility / Our nonnegotiable undertaking to respect and observance all prevailing domestic and international laws, regulations and standards is précised in our governance and goes abundantly beyond simply satisfying legislation Leadership / Our aim to be an industry leader on a global scale demands effective leadership, dedication to excellence, accountability and courage at all levels of the bankMeritocracy / Our trust in our human capital as the pillar of our future success requires us to constantly prosper their growth, increase their knowledge and efficiency, and polish their skills and commitment to excellence

Providing Capital Banking services for our customersContinuous development of the bank’s human capital alongside deployment and improvement of an integrated human capital systemEstablishment and continuous improvement of integrated knowledge, marketing, investment and risk management systemsEnhancing the bank’s domestic market share and network while planning for an effective and robust entrance to the international market sceneDiversification of the bank’s revenue stream and sources of income Commitment to providing diverse and innovating products and services, responding to our client's needs based on new technologies Commitment to providing diverse and innovating products and services, smart banking, responding to our client's needs based on new technologies and improve their digital experiences.

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Organization Char t


Investment Por tfolio

MIDDLE EAST MINES INDUSTRIES DEVELOPMENT HOLDING COMPANY

No.8, Ma'aref St., Farhang Blvd., Sa'adat Abad, Tehran, Iran Phone: (+9821) 27340Fax: (+9821) 22363691www.midhco.com [email protected]

PARS ARIAN HOLDING INVESTMENT COMPANY

No. 21, 10th Ave., Bucharest St., Tehran, Iran Phone: (+9821) 88170024 - 29Fax: (+9821) [email protected]

FIELD OF ACTIVITY:

› Investment in Pasargad Financial Group (PFG) (Financial Services, Mining Industries, ITC and Building Construction)

› Investment in Tehran Stock Exchange (TSE) › Building Construction › Commitment to Social Responsibilities

FIELD OF ACTIVITY:

The activities of the group are focused on mining and metallurgical industries, with the aim of creating a development model in the country in terms of projects volume and the nature.With regard to our high potentials in engineering, management and our strong performance, MIDHCO is standing among top 10 world mining companies. It advanced new technology in production copper through industrial bioleaching process and has employed the state of the art technologies in steel industry.

TOTAL CAPITAL (IRRM)

17,537,500

ESTABLISH DATE

2005

EMPLOYEES

21


23,760,000

ESTABLISH DATE

2007

EMPLOYEES

4127


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PASARGAD ARYAN ICT COMPANY (FANAP)

No.3, East Ghobadian st., Africa Blvd., Tehran, Iran Phone: (+9821) 88197022 - 88197018 - 88190705Fax: (+9821) 88327614www.fanap.ir

FIELD OF ACTIVITY: › Financial Services such as banking,

Insurance and stock-exchange › Payment & E-commerce › Telecommunication and Value-added

services › Smart Health and Public Services › Enterprise Software Solution › ICT related EPC project.

PASARGAD INSURANCE COMPANY

No. 2, Hasht Behesht St., Dr Fatemi St., Tehran, Iran.Phone: (+9821) [email protected]

FIELD OF ACTIVITY:

Provide insurance services with international standards, to make profit in accordance with national interests, and to work in the field of life insurance and non-life insurance (direct and reinsurance accepted)


1,200,000

ESTABLISH DATE

2006

EMPLOYEES

478


2,551,500

ESTABLISH DATE

2006

EMPLOYEES

935


IRANIAN REINSURANCES COMPANY

No. 5, Zayandeh Roud St., North Shiraz St., Molla Sadra Ave., Tehran - Iran Phone: (+9821) 88628611 - 16Fax: (+9821) [email protected]


2,500,000

ESTABLISH DATE

2010

EMPLOYEES

35

FIELD OF ACTIVITY:

› Accept reinsurances in all fields of domestic and international markets based on license issued by Central Insurance of Iran

› Establishing, participating or managing domestic and international reinsurance funds

› Obtaining reinsurance coverage in relation with obligations of accepted insurance

› Investing from capital Reserves, technical and legal reserves and other company’s financial resource

› Providing side services in reinsurance field

PASARGAD LEASING COMPANY

No. 61, Before Mirdamad Bridge, Nelson Mandela Blv., Tehran, Iran Phone: (+9821) 88662720Fax: (+9821) [email protected]

FIELD OF ACTIVITY:

granting facility for purchasing:

› administrative units › commercial units › Residential Units and offices for engineer

and doctors › building material › educational, cultural, treatment, sport and

etc. complex


500,000

ESTABLISH DATE

2005

EMPLOYEES

21


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200,000

ESTABLISH DATE

2009

EMPLOYEES

14

No. 2, East Taban St., Nelson Mandella Blvd., Tehran, Iran Phone: (+9821) 88670189Fax: (+9821) 88654605www.pasargadexchange.com

PASARGAD EXCHANGE COMPANY

FIELD OF ACTIVITY:

Process FOREX transfers as quickly as possible and buying of foreign currencies, whether transferred to our bank or being the balance of customers' accounts are some of the services the Bank Pasargad provides with the help of Pasargad Exchange Company.

BANK PASARGAD BROKERAGE COMPANY

No. 4, 23 St., Baharan St., Argentina Square, Tehran, Iran Phone: (+9821) 42392000Fax: (+9821) [email protected]

FIELD OF ACTIVITY: › Stock Exchange (TCE) › Over-the-counter (IFB) › Mercantile Exchange › Energy Exchange › Trade


180,000

ESTABLISH DATE

2006

EMPLOYEES

92



100,000

ESTABLISH DATE

2015

EMPLOYEES

23

ARZESH AFARINAN PASARGAD

2nd Floor, No.139, Pasargad Building, Mirdamad Blvd. Tehran, Iran Phone: (+9821) 26401844-9Fax: (+9821) [email protected]

FIELD OF ACTIVITY:Arzesh Afarinan Pasargad is the investment company of Bank Pasargad. The Company is one of the most experienced one in the Pasargad Financial Group. It's aim is maximizing shareholders’ value through investments in a diversified portfolio including mining, energy, construction, information technology and financial services.

PASARGAD NASIM HEALTH COMPANY

NO.1, End of Mina St., Faraz Alley, Saadat Abad, Tehran, Iran Phone: (+9821) 22347471 Fax: (+9821) 22347400 [email protected]

FIELD OF ACTIVITY:

› Setting best new standards in healthcare sector amongst Islamic countries

› Delivering best healthcare quality at an affordable cost and on a large scale basis

› Executing and impellent Public Private Partnership (PPP) project in all Islamic countries

› Arranging financing based on project requirements and client specifications

› Educating and training young professional in every country in which we are present


7,600,000

ESTABLISH DATE

2006

EMPLOYEES

12


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1,000,000

ESTABLISH DATE

2006

EMPLOYEES

433

PASARGAD E-PAYMENT COMPANY

No.52, Near Bank Pasargad, western Sarv St. Pak-nejad Blvd. Saadat Abad, Tehran, Iran Phone: (+9821) 23505 Fax: (+9821) 22116707 [email protected]

FIELD OF ACTIVITY:

› Issuance of different cards (debit, credit, gift, shopping, …)

› POS terminals › Payment gateway services › Virtual services › Monitoring and implementation of WAN and LAN › Implementation of different projects in relation

to the card industry

22

Social Responsibil ity

Bank Pasargad is committed to improve economic, social and cultural aspects of life between all layers of Iranian population throughout Iran. We have initiated and implemented extensive programs nationally for the promotion of arts, sponsorship of sports, endorsement of charity events, and encouraged organizations in various fields such as science and education, in order to elevate and prosper communities. The following list represents some of the events arranged and sponsored by Bank Pasargad as part of its social responsibilities:

Financing large and national development projects

Support for production and economic self-sufficiency

Resource Management, Energy and the Environment

Creating direct and indirect job opportunities

Helping to develop education in deprived areas

Helping to promote cultural, scientific, educational

Supporting the publication of selected specialized books

Establishment of Khatam University

Support of Philanthropic Activities

Join forums and support conferences

Supporting sports including the National Freestyle

The most important activities of the Bank Pasargad in the area of social responsibility are as follows:




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Future plansOrganizing and activating a work group, including trustees of major areas relevant to social responsibility

Continued participation in projects related to social and economic progress of society in various dimensions

Membership in national and international institutions related to social responsibility

Collaborating with external organizations to promote social responsibility among stakeholders

Disclose the Bank's social policies and procedures

Setting and documenting the ethical and environmental conditions in contracts with partners, recipients and suppliers, and systematic monitoring of compliance with them.

Providing tools for valuing and measuring supported projects and their spiritual and material return to the bank Beneficiaries

The quantitative and qualitative increase of interactions with stakeholders through the streaming of social responsibility policies of the bank

Continuing to publish annual report on the " Bank Social Responsibility "

Establishing the necessary coherence on the subject of social responsibility at the level of the Pasargad Financial and Economic Group

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National level

Silver Trophy of National Award of Organizational Excellence; Industrial Management Institute (Human Resource and Productivity Studies Center)

Golden Trophy of National Award of Financial Management; Secretariat of Financial Management Award

Ranking 12 among 100 top companies in Iran; Industrial Management Institute

Trophy of the most favorite bank in Iran by 25000 customers; the 2nd annual "My favorite bank" festival

Trophy of entrepreneur and job creator organization of the year; The 6th National Festival of Celebrations of Top Entrepreneurs and job creators

Trophy of productivity and quality; Tenth conference on productivity and quality

Bronze Award for Human Resource Excellence; Industrial Management Institute (Human Resource and Productivity Studies Center)

Trophy of the best Iranian company in support of culture and art; TOPEX Secretariat of Iran's Top Companies

The industry champion of the Islamic Republic of Iran; Hooshmand Tadbir (Ministry of Industry, Mine & Trade)

The four-star Bronze Award for Iran's leading organization in human resource excellence; Secretariat of the National Human Resource Excellence Award

Golden Award for The firm is synchronized with efficiency; National Productivity Forum

Golden Trophy of Administrative Health Management Award (Lean Organization); Secretariat of Administrative Health Award (Ministry of Justice)

Trophy of the Superior Organization Award in the Leadership and quality of administrative health management; Secretariat of Administrative Health Award

Trophy of the Third National Conference on Social Responsibility; the Conference Secretariat of Social Responsibility

Earning a Top Rank at the National Productivity Festival 1404; Fourth National Productivity Festival

Awards & Achievements


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International level Best Bank in Iran by Euromoney Awards for Excellence Middle East 2017; Euromoney

Selected as one of the top 10 Middle East brands and 175 in world ranking; The Banker

Selected as one of the top knowledge organizations, Make Award 2017; Sharif University of Technology on behalf of Make World award

Iran Most Admired Knowledge Leader "as knowledge fastest growing", MAKE 2016

Award for the 5th Regional Climate Change Conference; MAKE

bank of the year 2016 for Islamic Republic of Iran; The Banker

bank of the year 2016 for Islamic Republic of Iran; Euromoney

Trophy of Managing Health at Work; Asia pacific HRM congress

Trophy of Best HR Organization to Work; Asia Pacific HRM congress

Golden Trophy of Quality and Business Prestige; Other ways Management and Consulting Association of France-Paris

Certificate of conformity of educational management system with ISO10015: 1999 standard; IMQ Academy

Diamond award 5002IUI for Virtual Banking; International Union of Innovations, Inventions and Industrial Innovations

ISO 10004 in the field of customer satisfaction; ACS Registrars


Board Memebers

1 1 SEYYED KAZEM MIRVALAD Chairman

1 2 MAJID GHASEMI Vice Chairman and CEO

1 3 AHMAD VADIDAR Member

1 4 ZABIHOLLAH KHAZAEI Member

1 5 MOSTAFA BEHESHTIROUY Member

In accordance with the minutes of Extra Ordinary General Meeting of Shareholders, dated January 3, 2017, Bank Pasargad Board of Directors (whose eligibilities are approved by the CBI) are comprised of:

CORPORATE GOVERNANCE

1 6 KAMRAN EKHTIAR Member

1 7 ALI AKBAR AMIN TAFRESHI Member

11

41

71

21

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31

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1 1 MAJID GHASEMI President

1 2 ZABIHOLLAH KHAZAEI Member

1 3 KAMRAN EKHTIAR Member

1 4 MOHAMMADREZA HAJIAN Member

1 5 ALIREZA HADIAN Member

1 6 ABDOLREZA TIZNOBAKE Member

1 7 MOHAMMAD AMIR DAVOUD Member

1 8 ARSALAN AMIRI

Member

1 9 ZAHRA MIRHOSSEINI

Member

Executive Board Memebers

11

41

71 81 91

21

51

31

61

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Internal Controls

Deployment and implementa-tion of internal control systems in Bank Pasargad is one of the main concerns of its senior management. It includes plans, methods and procedures utilized to reach the goals of productive and efficient internal control system. The goal of internal control system and internal audit

is to improve management of the bank through limiting behaviors, which may result in wastage, inap-propriate allocation of resources, and corruption. Top management of Bank Pasargad believes that imple-mentation and continuity of a robust internal control will lead to effective and efficient

management and may result in maintaining the profitability and minimizing the unexpected risks. It will also enable the bank to react to rapid changes of economic and competitive environments, customer demand, and taste, appropriately. As a whole, internal control system in Bank Pasargad has aimed at the following targets:

Achievingbank’s goals

Protectingbank’s assetsand resourcesagainst anymisuse and loss

Ensuring effectiveness and efficiency

of practices

Ensuring proper performance of financial and managerial reporting system and promoting its transparency

Successfulmanagement

of bankingrisks

Ensuring properperformanceof soundadministrativesystem



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Bank Pasargad internal control integrated components are as follows:

In addition to board of directors' special attention, in bank Pasargad audit committee and Internal audit and inspection management perform continuous supervision and inspections in order to keep the internal control system effective.

Control environment

Risk identification and

assessment

Control activities

Information and

communications

Self-assessment, supervision,

and weakness improvements

Preparing internal control report for Tehran Stock Exchange

Deployment of effective and proper internal control

Reasonable assurance of reliability and timeliness of financial reporting

Proper and complete disclosure of related parties information

Timely prevention and identification of fraud and other material misstatement in financial reporting

Proper keeping of documents of transactions and events

Reasonability of predicted financial information

Comparing actual performance with the budget and complete disclosure of material discrepancies and urgent disclosure of important information

Assessing and reporting internal controls

The Board and top management are responsible for:


It has been established in first years of bank’s activity and to comply with corporate governance principles, Central Bank of Iran, and Tehran Stock Exchange requirements and standards. Members are some Board members and Bank's consultants. The following guidelines and codes were prepared according to international standards, rules and regulations:

Audit committee code of conduct

Internal audit code of conduct

Internal control recommendations regarding on issued guidelines and instructions

Bank Pasargad integrated supervisory and internal control code

Bank Pasargad audit committee’s instructions

Bank Pasargad internal control framework

Bank Pasargad corporate governance code of conduct

Bank Pasargad code of ethics

The department began to work since bank’s establishment in order to provide control requirements and supervision on banking activities as well as processes. Its main mission is to act in line with professional and international standards in a way which results in achievement of above mentioned goals. Other activities:

Supervision of rules and regulations according to AML/CFT.

Developing off-site supervision

Improving the process of responding to complaints received through the CRM.

One of the measures taken by the CBI in recent years was to enhance transparency in the banking system with the aim of preserving stakeholders’ interest. In accordance with CBI regulations and in line with Basel Committee Standards, Bank Pasargad publishes details of its financial and non-financial information, e.g. risk management, internal control and material events on its website homepage. Meanwhile, Bank Pasargad prepares its annual report in accordance with CBI's new Reporting Format in line with IFRS disclosure requirements.D

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Risk Management

• holding risk management supreme committee meetings on a monthly basis and giving recommendations to the board about risk management issues

• holding risk management sub-committees meetings and report to the supreme committee

• Registering records in operational loss database by related departments

• steps taken to implement liquidity, credit and market risk modules in ERM system

• Report on Risk culture in Bank Pasargad • Report on a review of Basel III requirements and Capital

Adequacy Ratio calculations • Capital Adequacy Ratio calculation According to CBI circular in

1396 • Report on Reputation Risk focused on Bank Pasargad • Analysis of future banking Risk management

(Bank Pasargad case) • Review on Basel III changes • Liquidity coverage ratio calculations according to Basel III • Report on foreign assets and investments risk • Report on Risks related to AML • Report on internal controls status in Bank Pasargad

The most important future actions to be taken: • Preparation of Risk appetite statement -1397 • Reports on different types of risks in Bank Pasargad

In order to keep the bank's operations healthy and reduce potential losses, Bank Pasargad has taken significant note of risk manage-ment and it has always tried to manage all types of risk effectively. According to CBI and international standards and best practices, the risks that the Bank is exposed to are separately monitored in categories including credit, liquidity, operational, market & compli-ance risks. Currently, Bank Pasargad does its best to finalize and implement the ERM project to be compliant with the latest inter-national standards and identify and manage risks more accurately and become one of the pioneers in Iran banking industry.The most important actions taken in the reporting period are as follows:

• Expanding the activities of risk expert and managers level sub-committees

• Implementation of Liquidity and market risk modules in ERM

• Implementation of new credit scoring system in the Bank

• evaluation of risk culture in Bank Pasargad

• Preparing report on risk capital required based on the latest changes in Basel standards

ComplianceAs Compliance function became centralized in financial Year 2016/17 in Bank Pasargad, new compliance department was established under supervision of deputy of Banking and Economic Studies, based on requirements provided by the central bank called" Compliance and the Compliance Function


in Banks". Before establishing independent compliance department in Bank Pasargad, all banking compliance activities had been accomplished based on issued guidelines and circulars, which were monitored and controlled by inspection and risk management departments. In order to maintain stable and secure banking operations and also to prevent risk-imposing penalties, regulatory or supervisory punishments, or significant losses tarnishing bank's good reputation, as a first step compliance department prepared BP's compliance policy concidering all rules, regulations, standards, statutes, instructions, guidelines and ratifications declared by domestic and international supervisory and regulatory bodies. The compliance policy was approved by the board in Dec. 2016 based on the following Principles:

• Utilizing and deploying the professional procedures in accordance with ethical requirements.

• Complying with professional laws, regulations and professional standards

• Avoiding conflict of interest • Preserving confidentiality • Protecting bank assets and customers' interests • More transparency in Bank's performance and operations • Decreasing losses of being noncompliant • Preserving integrity and reputation of the Bank

It is important to mention that compliance reports are sent to the chairman of the board, CEO and head of risk management supreme committee. The highest authority after the board of directors (who bears the responsibility of compliance) is risk management supreme committee.

The most important future plans are as follows: • Preparing anti-bribery and corruption policy • Preparation of compliance reports • Holding compliance training programs for all Bank human capital • Monitoring local and international rules, regulations, standards

constantly and revision of compliance policy • Revising Bank compliance policy • Improving sanction screening of customers procedures • Enhancing anti financial crime programs • Taking more proactive approach in compliance


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• All reports of cash withdrawals over the prescribed limits have been sent to the financial intelligence Unit.

• All suspicious transaction reports (STR), which are created by branches or inspected by the AML department through the AML software, are sent to the Financial Intelligence Unit.

• All inquiries from the Financial Intelligence Unit and the Central Bank's Money Laundering Unit have been provided promptly.

• Information on the level of customer's activities in accordance with the request of the Financial Intelligence Unit has been prepared and sent.

• Customers Identity parameters was sent to the Central Bank of the Islamic Republic of Iran to get the code of SHAHAB.

• Information about all the customer's power of attorneys filed by the branches are checked regularly and in accordance with the format of the Financial intelligence unit and have been

sent to FIU and the Central Bank's Money Laundering Office.

• The status of deposits of deceased customers and companies whose term of activity has been completed (dissolved) and customers whose SHAHAB codes are incomplete, in order to comply with the relevant provisions, have been blocked and the removal of blockage has been made for the assignment and continuation of banking operations by the department.

• The Anti-Money Laundering Committee meetings have been held.

• The assignments set by the Financial Intelligence Unit have been followed up according to the scheduled timetable.

• Online communication with National Organization for Civil Registration and the national database of foreign entities and the list of sanctions in all branches for the purpose of authentication of documents and sanctions screening has been established

Anti-money laundering

In accordance with the privileged position of the bank in the banking system of the country, conformity with the policies and procedures of the central bank and providing the privileged, accurate, efficient and timely services for our clients are our signboard and mission.Therefore several actions have been taken to be in line with the duties assigned and the adequacy of the evaluation and the efficiency of the internal controls and to provide an operational and precise level of assurance in AML and CFT program, and in compliance with the laws and regulations released by the regulatory authorities (central bank and financial Intelligence unit) the major measures that were taken are:


and updated. • All branches have access to the National

ID No. System of legal entities to obtain or confirm the National ID number of Iranian legal entities.

• In pursuance of the implementation of Article 20 of the Instruction on how to identify Iranian customers, Group enquiring of previous customers from the National Organization for Civil Registration is in progress, the databases are being updated, and the deposits of persons who have died are blocked.

• The possibility of filing and printing Cash transaction reports (CTR) on the core banking system (FANAP) and internal Portal of the bank.

• In conformity with the circular of monitoring Suspected Persons, a list of suspected individuals which are received monthly from the Financial Intelligence Unit are registered, updated and reviewed on the Core Banking System.

• Conducting onsite and offsite inspections and AML program evaluation and exercising controls at the level of Branches.

• In order to comply with the instructions for cash transaction circular, filling in the relevant forms are mandatory and conducting cash transaction more than 150.000.000 RLS is inhibited.

• Anti-Money laundering portals were updated to inform all colleagues about the latest AML&CFT Instructions and procedures.

• In order to inform and clarify client's knowledge about Money Laundering and terrorism financing, the laws and regulations related to AML&CFT were uploaded and updated on the Bank Pasargad website.

• Software related to improve processes and effectiveness and efficiency of the Anti-money laundering system are used for monitoring and controlling all the operations

and tracing the movements of funds. • Attending In the workshops and training

courses and national and international conferences in the field of AML and CFT. Enhancing the AML&CFT knowledge of colleagues by performing specific AML &CFT training and courses.

• Responding and fulfilling the AML questionnaires that were sent by correspondent banks.

The most important summary of the proposed program of the Anti-Money Laundering Depart-ment in 2017/2018

• Holding a training course on AML&CFT for all staff;

• Assessing the staff's awareness regarding AML&CFT regulations;

• Updating and improving Bank Pasargad AML&CFT program.

• Upgrades and apply necessary changes to the AML software.

Committees

Bank’s professional committees are as follows:

• Strategy Committee • Risk Management Supreme Committee • Nomination Committee • Audit Committee • Credit Committee • Technology & IT Committee • New Products and Innovation Committee • Marketing & Advertisement Committee • Assets & Liabilities Management Committee • Human Capital Development Supreme Committee • Recruitment Committee • Disciplinary Committee

Bank’s Governing Rules & Regulations

The main laws and regulations governing banks activities in Iran are:

• Monetary and Banking Law (Approved in 1972), and its amendments

• Usury-Free banking Law (Approved in 1983) • Annual Monetary Financial and Supervisory Policies of

CBI • Anti-Money Laundering Law (Approved in 2007) • The law of Combating the Financing of Terrorism (CFT)

(Approved in 2016) • Tax law • Securities Market Law of IRI • Money and Credit Council Approvals • Circulars from the CBI • Commercial Code of IRI • Bank Pasargad Articles of Association


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Financial Summar y

2017/18 2016/17 2015/16 2014/15Restated

Assets

Cash 73,948,428 46,216,433 61,356,867 54,484,038

Dues from banks & financial institutions 23,907,158 12,032,436 16,407,531 29,212,866

Credit facilities and dues from governmental entities 0 2,557,194 0 0

Credit facilities and dues from non-governmental entities 589,183,411 461,832,266 343,217,757 275,119,381

Investment in shares and other securities 16,646,262 16,747,549 17,604,497 18,615,011

Receivables from Subsidiaries and Associates 2,084,069 984,406 20,997,831 0

Other accounts receivable 3,329,891 2,105,948 2,201,634 9,758,137

Tangible fixed assets 12,086,368 12,020,088 9,210,930 8,271,988

Intangible assets 8,669,925 6,246,723 5,186,589 4,069,100

Legal deposit 64,315,225 53,297,867 49,288,170 40,217,749

Other assets 58,006,948 35,858,440 36,009,345 7,639,804

Total assets 852,177,685 649,899,350 561,481,151 447,388,074

Liabilities

Dues to banks & other credit institutions 38,563,382 38,215,799 28,576,822 25,522,608

Customers deposit 36,945,383 22,580,984 19,924,276 25,535,576

Dividends payable 165,040 1,024,921 157,271 145,114

Income tax provision 416,741 504,715 2,578,348 5,099,085

Provisions and other liabilities 103,634,640 52,245,593 32,158,863 2,137,874

Provision for employees retirement benefits 981,299 791,362 564,463 407,310

180,706,485 115,363,374 83,960,043 58,847,567

Term deposits

Term deposits 609,644,082 475,041,686 403,124,976 324,753,214

Equity

Share capital 50,400,000 50,400,000 42,000,000 30,000,000

Capital increase (in progress) 0 0 8,400,000 12,000,000

Legal reserve 11,609,848 11,609,848 11,609,848 9,864,758

Other reserves 3,869,949 3,869,949 3,869,949 3,288,253

Retained earnings (4,052,679) (6,385,507) 8,516,335 8,634,282

61,827,118 59,494,290 74,396,132 63,787,293

Total liabilities, Depositors' rights & equity 852,177,685 649,899,350 561,481,151 447,388,074

Statement of Financial Position Amounts in IRRm

OUTCOMES


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2017/18 2016/17 2015/16 2014/15Restated

Income from credit facilities and deposits 97,138,129 83,201,762 73,305,031 64,699,088

Profit of term deposits (85,162,995) (71,110,807) (67,100,604) (52,127,360)

Net income from credit facilities and deposits 11,975,134 12,090,955 6,204,427 12,571,728

fee and commission income 3,936,989 3,203,554 3,945,960 3,087,206

fee and commission cost (2,122,640) (1,979,431) (901,214) (346,351)

Net fee and commission income 1,814,349 1,224,123 3,044,746 2,740,855

Net investment income 784,092 347,224 13,071,056 4,522,528

Net foreign exchange transactions income 13,830,359 (663,143) 176,913 711,778

Total operating income 28,403,934 12,999,159 22,497,142 20,546,889

Other income 435,708 1,897,870 2,510,706 1,016,996

General and administrative expenses (9,256,886) (7,228,575) (6,495,250) (4,428,135)

Doubtful debts expenses (16,522,253) (11,128,200) (5,919,496) (2,928,697)

Financial cost (135,736) (2,498,928) 0 0

Depreciation expenses (584,143) (539,536) (457,001) (254,571)

Profit before tax 2,340,624 (6,498,210) 12,136,101 13,952,482

Income tax 0 0 (502,262) (1,309,786)

Net profit 2,340,624 (6,498,210) 11,633,839 12,642,696

Earning per share-IRR 46.44 (128.93) 277 301.02

Amounts in IRRmBank Pasargad Statement of Profit or Loss


2017/18 2016/17 2015/16 2014/15 2013/14

Total deposits 646,589,465 497,622,670 423,049,252 350,288,790 304,815,336

Growth rate (%) 29.94 17.63 20.77 14.92 28.10

Deposits (IRRm)

2017/18 2016/17 2015/16 2014/15 2013/14

Bank Pasargad deposits 646,589 497,623 423,049 350,289 304,815

Total banking system deposits* 16,464,055 12,728,364 10,619,015 8,192,761 6,844,166

Ratio of bank Pasargad deposits to Total banking-system deposits (%)

3.93 3.91 3.98 4.28 4.45

Comparison of bank Pasargad deposits and banking system (IRRm)

* Information about the entire banking-system deposits was received from the Central Bank website

2017/18 2016/17 2015/16 2014/15 2013/14

Total Credit facilities and dues from non-governmental entities 589,183,411 464,389,460 343,217,757 275,119,381 219,191,282

Growth rate (%) 26.87 35.30 24.75 25.52 25.40

Credit facilities and due from non-governmental entities (IRRm)


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Equity 61,827,118 59,494,290 74,396,132 63,787,294 52,485,379

Growth rate (%) 3.92 -20.03 16.63 21.53 16.39

Equity (IRRm)

2017/18 2016/17 2015/16 2014/15 2013/14

Bank Pasargad Credit facilities and dues from non-governmental entities

589,183 464,389 343,217 275,119 219,191

Total banking system Credit facilities and dues from non-governmental entities*

12,587,132 9,866,616 7,916,102 6,739,744 5,719,260

Ratio of bank Pasargad Credit facilities and dues from non-governmental entities to Total banking-system deposits (%)

4.68 4.71 4.34 4.08 3.83

Comparison of bank Pasargad Credit facilities and due from non-governmental entities (IRRm)

Information about the entire banking-system Credit facilities and due from non-governmental entities was received from the Central Bank website

2017/18 % of total 2016/17 % of

total 2015/16 % of total 2014/15 % of

total 2013/14 % of total

Current 624,651,633 98.86 481,060,600 95.56 343,102,739 94.49 272,044,848 94.51 215,047,172 94.13

Overdue debts 4,326,170 0.66 3,115,666 0.62 2,931,527 0.81 2,101,486 0.73 3,386,180 1.48

Bad debts 6,744,787 1.04 4,801,164 0.95 3,570,725 0.98 4,186,379 1.45 3,427,922 1.5

Doubtful debts 15,873,637 2.44 14,424,819 2.87 13,521,328 3.72 9,518,489 3.31 6,606,985 2.89

Total gross credit facilities 651,596,227 100 503,402,249 100 363,126,319 100 287,851,203 100 228,468,259 100

Provisions 44,247,097 6.79 27,722,565 5.51 16,661,747 4.59 10,742,251 3.73 7,813,555 3.42

Credit Facilities (IRRm)


2017/18 2016/17 2015/16 2014/15 2013/14

Investments 16,646,262 16,747,549 17,604,497 18,615,011 14,005,814

Growth rate (%) -0.60 -4.87 -5.43 32.91 27.91

2017/18 2016/17 2015/16 2014/15 2013/14

Assets 852,177,685 649,899,350 561,481,151 447,388,074 377,270,230

Growth rate (%) 31.12 15.75 25.5 18.59 26.99

2017/18 2016/17 2015/16 2014/15 2013/14

Income 116,125,277 88,650,410 93,009,666 74,037,596 58,115,003

Growth rate (%) 30.99 -4.69 25.62 27.40 30.76

2017/18 2016/17 2015/16 2014/15 2013/14

Net Profit 2,340,624 (6,498,210) 11,633,839 12,642,696 15,668,831

Growth rate (%) * * -7.98 -19.31 18.29

Investments (IRRm)

Assets (IRRm)

Income (IRRm)

Net Profit (IRRm)

* meaningless


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2017/18 2016/17 2015/16 2014/15 2013/14

Sight L/Cs 310,055 196,868 365,058 1,087,908 551,502

Term L/Cs 392,187 1,698,291 353,878 192,330 814,095

Refinance L/Cs 35,907 323,589 272,007 0 0

Total import L/Cs 738,149 2,218,748 990,943 1,280,238 1,365,597

Import documentary bills of exchange 811,079 635,476 208,978 256,486 1,475,677

Internal L/Cs (IRR billions) 63,603 567 213 398 1,311

Hard currency guarantees 66,831 296,919 47,731 37,518 120,577

Inward hard currency payment orders 800,244 422,696 379,029 266,694 475,660

Outward hard currency payment orders 1,601,313 1,704,942 277,029 1,936,603 2,637,609

International & Foreign Exchange Activities


Operational Summar y

Bank Human CapitalIn view of the bank’s rapid development and the necessity to hire qualified employees, a precise plan was undertaken in 2017/18 like the previous years. Additionally, considering the bank’s increasing number of employees, necessary actions taken for promotions.

Education2017/18 2016/17 2015/16 2014/15 2013/14

HQ Br HQ Br HQ Br HQ Br HQ Br

PHD 12 0 11 0 11 0 10 0 14 0

Post-graduate 222 614 168 586 131 510 111 416 87 361

Graduate 407 2408 394 2524 369 2,557 369 2,481 349 2,350

College degree 93 50 82 109 86 151 84 214 85 240

Total 734 3072 655 3219 597 3,218 574 3,111 535 2,951

Total 3806 3874 3815 3,685 3,486

Percentage 19.29 80.71 16.91 83.09 15.65 84.35 15.58 84.42 15.35 86.65

Human Capital Distribution in Branches and Headquarters

Total PHD Post-graduate Graduate College degree Other Education/Year

2603 2 639 1924 4 34 Less than 10

1014 1 172 820 10 11 10 to 20

10 1 1 4 - 4 20 to 30

179 8 24 67 8 72 More than 30

3806 12 836 2815 22 121 Total

Combining human capital with education and service experience


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Tota

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Bos

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Mem

bers

of t

he

boar

ds

year

3874 122 2278 510 297 265 6 31 264 20 19 4 11 34 13 2016/17

3806 139 2177 499 318 246 5 38 272 29 19 4 10 37 13 2017/18

Comparative table of organizational positions at the end of 2016/17 and 2017/18


Pasargad Group's Human CapitalHuman capital employed in Pasargad Financial Group (Including some of Bank Pasargad subsidiaries and affiliates) for the financial year 2017/18 & 2016/17 is shown in the following table:


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433 418Bank Pasargad Electronic Payment Co.

3,806 3,874Bank Pasargad

C o m p a n y 2 0 1 7 / 1 8 2 0 1 6 / 1 7

19,950 14,360Pasargad Insurance Co. (including branches)

3,003 2,908Pasargad Aryan ICT Co.

885 869Pasargad Aryan Supporting services Co.

12,079 9,539Middle East Mines and

Mineral Holding Co.(MIDHCO) (including contractors)

92 92Bank Pasargad Brokerage Co.

32 37Pasargad Equipment and

Machinery Leasing Co.

138 85Pasargad Energy

Development Co (PEDC)

315 315Arian Pasargad Construction

Management Co.

36 35Iranian Reinsurance Co.

12 12Arzeshafarinan Pasargad Co.

21 19Pasargad Leasing Co.

1,405 1,775Others

42,207 34,338Total

E-Banking ser vices

Virtual Banking

Bank Pasargad is the first bank in Iran that introduced virtual banking services providing our customers with easier access to online banking services. This system allows customers to conduct financial transactions and have access to a variety of online banking services worldwide.

Mobile Banking

Considering the extensive use of mobile phones in the Iranian society as means of communication, Bank Pasargad provides valuable mobile banking services to its clients.

Type 2017/18 2016/17 2015/16 2014/15 2013/14

POS 403,432 381,728 335,291 248,695 174,954

ATM 1,640 1,487 1,101 875 694

Debit card 3,452,360 3,833,450 3,328,154 3,218,380 3,215,496

Credit card 8,219 12,864 17,369 53,031 75,541

Pre-paid card 1,915,855 2,325,864 5,161,827 7,968,566 6,415,334

Virtual banking customers 2,321,143 1,531,945 788,580 700,960 561,044

Mobile banking customers 429,696 423,856 412,531 389,176 353,386

ATM and POS

In order to extend electronic banking all over the country, bank Pasargad has provided many hardware and software facilities which offer different types of electronic banking services to customers. Some of the main information in this respect is as follows:

BANK PASARGAD Annual Report 2017-2018 Management Report 46

I N D E P E N D E N T A U D I T O R ' S R E P O R T


48 BANK PASARGAD Annual Report 2017-2018

INDEPENDENT AUDITOR'S REPORT


Managem

ent Report


eportFinancial S

tatements & N

otes

50 BANK PASARGAD Annual Report 2017-2018 Independent Auditor's Report


Managem

ent Report


eportFinancial S

tatements & N

otes



Managem

ent Report


eportFinancial S

tatements & N

otes



Managem

ent Report


eportFinancial S

tatements & N

otes

Managem

ent Report


eportFinancial S

tatements &

Notes

F I N A N C I A L S T A T E M E N T S& N O T E S


Not

e20

-Mar

-201

8(R

esta

ted)

20

-Mar

-201

7

Liab

ilitie

s:

dues

to b

anks

and

oth

er fi

nanc

ial i

nstit

ution

s24

38,

563,

382

38,

215,

799

Cust

omer

s dep

osit

25 3

6,80

6,68

9 2

2,49

8,18

2

Divi

dend

s pay

able

26 1

,955

,347

1

,351

,150

Inco

me

tax

prov

ision

27 1

,431

,024

1

,529

,350

Acco

unts

and

not

es p

ayab

le28

5,6

93,3

98

3,3

53,8

70

Prov

ision

s and

oth

er li

abili

ties

29 1

48,4

79,9

94

81,

227,

296

Adva

nces

rece

ived

30 1

,149

,215

3

89,0

59

Cred

it fa

ciliti

es re

ceiv

ed31

1,6

21,6

52

1,0

76,1

44

Prov

ision

for e

mpl

oyee

s reti

rem

ent b

enefi

ts32

1,5

89,1

15

1,2

44,4

50

237

,289

,816

1

50,8

85,3

00

Term

dep

osits

33 5

97,2

68,3

25

467

,705

,192

Tota

l lia

biliti

es

834

,558

,141

6

18,5

90,4

92

Equi

ty:

Shar

e ca

pita

l34

50,4

00,0

0050

,400

,000

Capi

tal i

ncre

ase

(in p

rogr

ess)

340

0

lega

l res

erve

35 1

1,60

9,84

8 1

1,60

9,84

8

Oth

er re

serv

es36

3,8

69,9

49

3,8

69,9

49

Reta

ined

ear

ning

s (2

,850

,890

) (7

,315

,305

)

Tota

l equ

ity 6

3,02

8,90

7 5

8,56

4,49

2

Non

-con

trol

ling

inte

rest

s37

14,

085,

971

12,

734,

367

Tota

l lia

biliti

es a

nd e

quity

911

,673

,020

6

89,8

89,3

51

Bank

's co

mm

itmen

ts fo

r L/C

s58

.1 1

08,2

10,5

41

76,

699,

783

Bank

's c

omm

itmen

ts fo

r iss

ued

L/Gs

58.2

52,

958,

525

43,

257,

427

Oth

er B

ank'

s com

mitm

ents

58

.3 3

32,6

02

273

,979

Man

aged

fund

s58

744

7

44

Not

e20

-Mar

-201

8(R

esta

ted)

20

-Mar

-201

7

Asse

ts:

Cash

9 7

4,58

8,52

3 4

6,61

2,28

7

dues

from

ban

ks a

nd o

ther

fina

ncia

l in

stitu

tions

10 2

3,90

7,15

8 1

2,03

2,43

6

Cred

it fa

ciliti

es a

nd d

ues f

rom

gov

ernm

enta

l en

tities

110

2,5

57,1

94

Cred

it fa

ciliti

es a

nd d

ues f

rom

non

-go

vern

men

tal e

ntitie

s12

490

,426

,057

3

98,4

97,4

43

Inve

stm

ent i

n sh

ares

and

oth

er se

curiti

es13

31,

862,

900

30,

444,

114

Acco

unts

and

not

es re

ceiv

able

14 3

6,10

2,27

7 2

1,87

3,19

7

dues

from

subs

idia

ries a

nd a

ssoc

iate

s15

1,2

86,7

51

1,4

65,2

23

Oth

er a

ccou

nts r

ecei

vabl

e16

12,

350,

335

8,3

26,6

81

Prep

aym

ents

and

ord

ers

17 1

,107

,873

1

,238

,999

Inve

ntor

ies

18 5

,303

,782

5

,737

,896

Tang

ible

fixe

d as

sets

19 9

6,62

6,69

9 6

1,13

7,55

3

Inta

ngib

le a

sset

s20

11,

613,

049

7,7

43,5

82

lega

l dep

osit

21 6

4,31

5,22

5 5

3,29

7,86

7

Oth

er a

sset

s22

58,

601,

051

36,

078,

848

Cons

olid

ated

goo

dwill

23 3

,581

,340

2

,846

,031

Tota

l ass

ets

911

,673

,020

6

89,8

89,3

51

Cust

omer

s' co

mm

itmen

ts fo

r L/C

s58

.1 1

08,2

10,5

41

76,

699,

783

Cust

omer

s' co

mm

itmen

ts fo

r iss

ued

L/Gs

58.2

52,

958,

525

43,

257,

427

Oth

er c

usto

mer

s' co

mm

itmen

ts58

.3 3

32,6

02

273

,979

Man

aged

fund

s58

744

744

BANK

PAS

ARGA

D (P

JSC)

CO

NSOL

IDAT

ED S

TATE

MEN

T of

FIN

ANCI

AL P

OSIT

ION

as a

t MAR

CH 2

0, 2

018

IRRm

58 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes

BANK PASARGAD (PJSC) CONSOLIDATED STATEMENT of PROFIT or LOSS for the FINANCIAL YEAR ENDED MARCH 20, 2018

Note 2017/18(Restated)2016/17

Profit from credit facilities and deposits 38 88,857,882 74,730,037

Cost for profit of deposits 43 (83,651,547) (69,772,283)

Net profit from credit facilities and deposits 5,206,335 4,957,754

Fee and commission income 44 3,936,989 3,203,554

Fee and commission cost 45 (2,124,149) (1,986,553)

Net fee and commission income 1,812,840 1,217,001

Net investment profit (loss) 39 8,354,528 7,205,947

Sales and income from services 46 52,501,980 44,511,025

Net foreign exchange transactions profit (loss) 47 13,830,359 (663,143)

74,686,867 51,053,829

Total operating income 81,706,042 57,228,584

Net other income 48 430,213 2,437,552

Cost of goods and services sold 49 (39,861,574) (29,651,979)

General and administrative expenses 50 (12,524,050) (9,787,135)

Doubtful debts expenses 51 (15,585,281) (10,570,632)

Financial cost 52 (847,439) (2,752,232)

Depreciation expenses 53 (762,701) (703,768)

Net other income & expenses 54 (7,831,587) (13,634,880)

Profit (loss) before tax 4,723,622 (7,434,490)

Income tax expense 27 (197,097) (129,921)

Previous years tax 0 0

Total income tax (197,097) (129,921)

Net profit (loss) 4,526,525 (7,564,411)

Non-controlling interests 876,300 710,338

EPS (IRR) 72.43 (135.99)

Basic earnings per share (IRR) 72.43 (143.99)

IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

Not

eCa

pita

lle

gal r

eser

veO

ther

rese

rves

Reta

ined

ea

rnin

gs

Tota

l Att

ribut

able

to

ow

ners

of t

he

pare

nt c

ompa

nyN

on-c

ontr

ollin

g in

tere

sts

Tota

l equ

ity

Bala

nce

at 2

1-M

ar-2

017

50,4

00,0

00 1

1,60

9,84

8 3

,869

,949

(7

,315

,305

) 5

8,56

4,49

2 1

2,73

4,36

7 7

1,29

8,85

9

Net

pro

fit 4

,526

,525

4

,526

,525

0

4,5

26,5

25

Cons

olid

ated

adj

ustm

ents

2,8

58,9

56

2,8

58,9

56

0 2

,858

,956

prio

r per

iod

adju

stm

ents

55 (1

,938

,871

) (1

,938

,871

)0

(1,9

38,8

71)

Tota

l co

mpr

ehen

sive

inco

me

50,

400,

000

11,

609,

848

3,8

69,9

49

(1,8

68,6

95)

64,

011,

102

12,

734,

367

76,

745,

469

Capi

tal

00

00

011

,471

,502

11,4

71,5

02

Capi

tal i

ncre

ase

(reg

ister

ed)

340

00

00

00

Capi

tal i

ncre

ase

(non

-reg

ister

ed)

340

00

00

00

Non

-con

trol

ling

inte

rest

s' sh

are

of re

tain

ed

earn

ings

0

00

(982

,195

) (9

82,1

95)

(10,

119,

898)

(11,

102,

093)

Dist

ributi

on &

allo

catio

n:

lega

l res

erve

350

00

00

00

Oth

er re

serv

es36

00

00

00

0

Appr

oved

div

iden

d0

00

00

00

Tota

l 0

00

(982

,195

) (9

82,1

95)

1,35

1,60

436

9,40

9

Bala

nce

at 2

0-M

ar-2

018

50,

400,

000

11,

609,

848

3,8

69,9

49

(2,8

50,8

90)

63,

028,

907

14,

085,

971

77,

114,

878

BANK

PAS

ARGA

D (P

JSC)

CO

NSOL

IDAT

ED S

TATE

MEN

T of

CHA

NGES

in E

QUIT

Y fo

r the

FIN

ANCI

AL Y

EAR

ENDE

D M

ARCH

20,

201

8

IRRm


Not

eCa

pita

lCa

pita

l inc

reas

e(in

pro

gres

s)le

gal r

eser

veO

ther

rese

rves

Reta

ined

ea

rnin

gs

Tota

l Att

ribut

able

to

ow

ners

of t

he

pare

nt c

ompa

nyN

on-c

ontr

ollin

g in

tere

sts

Tota

l equ

ity

Bala

nce

at 2

0-M

ar-2

016

42,

000,

000

8,4

00,0

00

11,

609,

848

3,8

69,9

49

10,

924,

647

76,

804,

444

22,

062,

603

98,

867,

047

Net

pro

fit0

00

0 (7

,564

,411

) (7

,564

,411

)0

(7,5

64,4

11)

Cons

olid

ated

adj

ustm

ents

00

00

174

,613

1

74,6

13

0 1

74,6

13

prio

r per

iods

adj

ustm

ents

550

00

0 (6

31,1

91)

(631

,191

)0

(631

,191

)

Tota

l com

preh

ensi

ve in

com

e 4

2,00

0,00

0 8

,400

,000

1

1,60

9,84

8 3

,869

,949

2

,903

,658

6

8,78

3,45

5 2

2,06

2,60

3 9

0,84

6,05

8

Capi

tal

00

00

00

9,9

44,3

85

9,9

44,3

85

Capi

tal i

ncre

ase

(reg

ister

ed)

34 8

,400

,000

(8

,400

,000

)0

00

00

0

Capi

tal i

ncre

ase

(non

-reg

ister

ed)

340

00

00

00

0

Non

-con

trol

ling

inte

rest

s' sh

are

of re

tain

ed

earn

ings

0

00

0 (2

,154

,963

) (2

,154

,963

) (1

9,27

2,62

1) (2

1,42

7,58

4)

Dist

ributi

on &

allo

catio

n:

lega

l res

erve

350

00

00

00

0

Oth

er re

serv

es36

00

00

00

00

Appr

oved

div

iden

d0

00

0 (8

,064

,000

) (8

,064

,000

)0

(8,0

64,0

00)

Tota

l 8

,400

,000

(8

,400

,000

)0

0 (1

0,21

8,96

3) (1

0,21

8,96

3) (9

,328

,236

) (1

9,54

7,19

9)

Bala

nce

at 2

0-M

ar-2

017

50,

400,

000

0 1

1,60

9,84

8 3

,869

,949

(7

,315

,305

) 5

8,56

4,49

2 1

2,73

4,36

7 7

1,29

8,85

9

BANK

PAS

ARGA

D (P

JSC)

CO

NSOL

IDAT

ED S

TATE

MEN

T of

CHA

NGES

in E

QUIT

Y fo

r the

FIN

ANCI

AL Y

EAR

ENDE

D M

ARCH

20,

201

7

IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

Note 2017/18 2016/17

Cashflow from operating activities

Cash Received for:

Profit and late payment penalties on credit facilities 91,502,871 87,146,294

Fee and commission 3,936,989 3,203,554

Deposits profit received 2,390,230 1,986,784

Investments profit 8,354,528 7,205,947

Income from services 52,501,980 44,511,025

Other expenses (7,401,374) (11,197,328)

Cash Paid for:

Profit of term deposits (83,651,547) (69,772,283)

Financial costs (2,971,588) (4,738,785)

Other operating costs (54,903,247) (51,376,657)

Income taxes (321,155) (2,201,547)Net cash outflow/inflow from operating activities before changes in operating Assets and liabilities 9,437,687 4,767,004

Cashflow from changes in operating assets and liabilities:

Net (increase)/decrease in liabilities and deposits:

dues to banks and other financial institutions 347,583 9,638,977

Customers deposit 14,308,507 2,589,905

Operating portion of provisions and other liabilities 65,347,907 22,702,702

Term investment deposits 132,430,737 68,499,860

Profit payable on term deposits (2,867,604) 1,829,211

Advances received 760,155 (969,802)

Operating accounts payable 2,339,527 (26,215,448)

Net (increase)/decrease in assets:

dues from banks and other financial institutions (11,874,722) 4,375,095

Credit facilities and dues principal from non-governmental entities (104,956,701) (128,408,236)

Investment in shares and other securities (1,418,786) (15,180,179)

Other accounts receivable (14,945,756) (6,441,647)

Prepayments and orders 131,126 3,257,850

legal deposit (11,017,358) (4,009,697)

Operating portion of other assets (22,522,202) 1,017,695

Cashflow generated from changes in operating assets and liabilities 46,062,413 (67,313,714)

Net cashflow from operating activities 57-2 55,500,100 (62,546,710)

Cash flow from investing activities:

Purchase of tangible fixed assets (36,103,149) 53,961,577

Proceeds from sale of fixed assets 184,431 362,530

Purchase of intangible assets (4,149,580) (1,473,318)

Net cashflow from investing activities (40,068,298) 52,850,789

Net cashflow before financing activities 15,431,802 (9,695,921)

Cash flow from financing activities:

Proceeds from capital increase 0 0

Paid dividends (1,285,925) (7,131,529)

Net cashflow from financing activities (1,285,925) (7,131,529)

Net increase/(decrease) in cash 14,145,877 (16,827,450)

Cash and cash equivalent at the beginning of the year 46,612,287 64,102,880

The effect of changes in foreign exchange rates 13,830,359 (663,143)

Cash and cash equivalent at the end of the year 74,588,523 46,612,287

Non-cash transactions 58 27,760,088 12,703,347

BANK PASARGAD (PJSC) CONSOLIDATED STATEMENT of CASH FLOWS for the FINANCIAL YEAR ENDED MARCH 20, 2018

IRRm


Not

e20

-Mar

-201

8(R

esta

ted)

20

-Mar

-201

7

Liab

ilitie

s:

dues

to b

anks

and

oth

er fi

nanc

ial i

nstit

ution

s24

38,

563,

382

38,

215,

799

Cust

omer

s dep

osit

25 3

6,94

5,38

3 2

2,58

0,98

4

Divi

dend

s pay

able

26 1

65,0

40

1,0

24,9

21

Inco

me

tax

prov

ision

27 4

16,7

41

504

,715

Prov

ision

s and

oth

er li

abili

ties

29 1

03,6

34,6

40

52,

245,

593

Prov

ision

for e

mpl

oyee

s reti

rem

ent b

enefi

ts32

981

,299

7

91,3

62

180

,706

,485

1

15,3

63,3

74

Equi

ty o

f inv

estm

ent a

ccou

nt h

olde

rs:

Term

dep

osits

33 6

09,6

44,0

82

475

,041

,686

Tota

l lia

biliti

es

790

,350

,567

5

90,4

05,0

60

Equi

ty:

Shar

e ca

pita

l34

50,

400,

000

50,

400,

000

Capi

tal i

ncre

ase

(in p

rogr

ess)

340

0

lega

l res

erve

35 1

1,60

9,84

8 1

1,60

9,84

8

Oth

er re

serv

es36

3,8

69,9

49

3,8

69,9

49

Reta

ined

ear

ning

s (4

,052

,679

) (6

,385

,507

)

Tota

l equ

ity 6

1,82

7,11

8 5

9,49

4,29

0

Tota

l lia

biliti

es a

nd e

quity

8

52,1

77,6

85

649

,899

,350

Bank

's co

mm

itmen

ts f

or L

/Cs

58-1

108

,210

,541

7

6,69

9,78

3

Bank

's co

mm

itmen

ts f

or L

/Gs

58-2

52,

958,

525

43,

257,

427

Oth

er B

ank'

s com

mitm

ents

58-3

332

,602

2

73,9

79

Man

aged

fund

s58

-4 7

44

744

Not

e20

-Mar

-201

8(R

esta

ted)

20

-Mar

-201

7

Asse

ts:

Cash

9 7

3,94

8,42

8 4

6,21

6,43

3

dues

from

ban

ks a

nd o

ther

fina

ncia

l in

stitu

tions

10 2

3,90

7,15

8 1

2,03

2,43

6

Cred

it fa

ciliti

es a

nd d

ues f

rom

go

vern

men

tal e

ntitie

s11

0 2

,557

,194

Cred

it fa

ciliti

es a

nd d

ues f

rom

non

-go

vern

men

tal e

ntitie

s12

589

,183

,411

4

61,8

32,2

66

Inve

stm

ent i

n sh

ares

and

oth

er se

curiti

es13

16,

646,

262

16,

747,

549

dues

from

subs

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BANK

PAS

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Notes

Note 2017/18 2016/17

Joint income:

Income from credit facilities 38 86,538,592 75,143,755

Income from deposits and debt securities 38 1,627,152 1,327,653

Net investment profit 39 784,093 347,224

Total Joint income 88,949,837 76,818,632

Share of Bank's resources from joint income 40 (13,319,468) (11,067,697)

Share of depositors from joint income before deduction of attorney's fee 75,630,369 65,750,935

Attorney's fee 41 (12,728,161) (10,188,422)

Share of depositors from joint income 62,902,208 55,562,513

Bonus on legal deposit of investment deposits 40 592,119 473,819

Final profit on investment deposits 63,494,327 56,036,332

On account profit on investment deposits 42 (81,047,258) (67,712,513)

Underpaid / (overpaid) profit to depositors (17,552,931) (11,676,181)

BANK PASARGAD (PJSC) STATEMENT of TERM INVESTMENT DEPOSITS PERFORMANCE for the FINANCIAL YEAR

ENDED MARCH 20, 2018

IRRm


Note 2017/18 2016/17

Income from credit facilities and deposits 38 97,138,129 83,201,762

Cost for profit of deposits 43 (85,162,995) (71,110,807)

Net income from credit facilities and deposits 11,975,134 12,090,955

Fee and commission income 44 3,936,989 3,203,554

Fee and commission cost 45 (2,122,640) (1,979,431)

Net fee and commission income 1,814,349 1,224,123

Net investment profit 39 784,092 347,224

Net foreign exchange transactions profit (loss) 47 13,830,359 (663,143)

Total operating income 28,403,934 12,999,159

Other income 48 435,708 1,897,870

General and administrative expenses 50 (9,256,886) (7,228,575)

Doubtful debts expenses 51 (16,522,253) (11,128,200)

Financial cost 52 (135,736) (2,498,928)

Depreciation expenses 53 (584,143) (539,536)

Profit before tax 2,340,624 (6,498,210)

Income tax- current year 27 0 0

Income tax- previous years 0 0

Total income tax 0 0

Net profit (Loss) 2,340,624 (6,498,210)

Earning (Loss) per share 46.44 (128.93)

Basic Earning (Loss) per share 46.44 (136.52)

BANK PASARGAD (PJSC) STATEMENT of PROFIT or LOSS for the FINANCIAL YEAR ENDED MARCH 20, 2018

Since comprehensive profit or loss statement is limited to net profit (loss) and prior period adjustments, it has not been provided.

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20-Mar-2018

Note Capital legal reserve Other reservesRetained

earnings (loss)Total

equity

Balance at 21-Mar-2017 50,400,000 11,609,848 3,869,949 (6,385,507) 59,494,290

Net profit 0 0 0 2,340,624 2,340,624

prior period adjustments 55 0 0 0 (7,796) (7,796)

Total comprehensive income 50,400,000 11,609,848 3,869,949 (4,052,679) 61,827,118

Capital increase 0 0 0 0 0

Capital increase (registered) 34 0 0 0 0 0

Capital increase (not registered) 34 0 0 0 0 0

Distribution & allocation:

legal reserve 35 0 0 0 0 0

Other reserves 36 0 0 0 0 0

Approved dividend 0 0 0 0 0

Total 0 0 0 0 0

Balance at 20-Mar-2018 50,400,000 11,609,848 3,869,949 (4,052,679) 61,827,118

BANK PASARGAD (PJSC) STATEMENT of CHANGES in EQUITY for the FINANCIAL YEAR ENDED MARCH 20, 2018

IRRm


20-Mar-2017

Note Capital

Capital increase

(in progress) legal reserveOther

reservesRetained earnings Total equity

Balance at 20-Mar-2016 42,000,000 8,400,000 11,609,848 3,869,949 8,516,335 74,396,132

Net profit 0 0 0 0 (6,498,210) (6,498,210)

prior period adjustments 55 0 0 0 0 (339,632) (339,632)

Total comprehensive income 42,000,000 8,400,000 11,609,848 3,869,949 1,678,493 67,558,290

Capital increase 0 0 0 0 0 0

Capital increase (registered) 34 8,400,000 (8,400,000) 0 0 0 0

Capital increase (not registered) 34 0 0 0 0 0 0

Distribution & allocation:

legal reserve 35 0 0 0 0 0 0

Other reserves 36 0 0 0 0 0 0

Approved dividend 0 0 0 0 (8,064,000) (8,064,000)

8,400,000 (8,400,000) 0 0 (8,064,000) (8,064,000)

Balance at 20-Mar-2017 50,400,000 0 11,609,848 3,869,949 (6,385,507) 59,494,290

BANK PASARGAD (PJSC) STATEMENT of CHANGES in EQUITY for the FINANCIAL YEAR ENDED MARCH 20, 2017

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Note 2017/18 2016/17

Cashflow from operating activities

Cash Received for:

Profit and late payment penalties on credit facilities 100,612,023 95,772,133

Fee and commission 3,936,989 3,203,554

Deposits profit received 2,390,230 1,986,784

Investments profit 784,092 347,224

Other Income 435,708 1,897,870

Cash Paid for:

Profit of term deposits (85,162,995) (71,110,807)

Fee and commission (2,122,640) (1,979,431)

Financial costs (135,736) (2,498,928)

Other operating costs (12,532,923) (19,559,454)

Income taxes (87,974) (2,073,633)

Net cash generated from operating activities before changes in operating assets and liabilities 8,116,774 5,985,312

Cashflow from changes in operating assets and liabilities:

Net (increase)/decrease in liabilities and deposits:

dues to banks and other financial institutions 347,583 9,638,977



Term deposits 137,469,999 70,094,215

Profit payable on Term deposits (2,867,604) 1,822,497

Net (increase)/decrease in assets:


Credit facilities and dues principals from governmental entities 2,557,194 (2,557,194)

Credit facilities and dues principals from non-governmental entities (143,873,398) (129,742,709)

Investment in shares and other securities 101,287 856,948

Receivable from subsidiaries and associates (1,099,663) 20,013,425

Other accounts receivable (1,223,943) 95,686

legal deposit (11,017,358) (4,009,697)

Operating portion of other assets (22,148,508) 150,904

Cashflow generated from changes in operating assets and liabilities 9,665,349 (8,931,680)

Net cashflow from operating activities 56-2 17,782,123 (2,946,368)

Cash flow from investing activities:

Purchase of fixed assets (461,487) (3,251,083)

Proceeds from sale of fixed assets 70,143 102,754

Purchase of intangible assets (2,629,265) (1,186,243)

Net cashflow from investing activities (3,020,609) (4,334,572)

Net cashflow before financing activities 14,761,514 (7,280,940)

Cash flow from financing activities:

Proceeds from capital increase 0 0

Paid dividends (859,878) (7,196,351)

Net cashflow from financing activities (859,878) (7,196,351)

Net increase/(decrease) in cash 13,901,636 (14,477,291)

Cash and cash equivalent at the beginning of the year 46,216,433 61,356,867

The effect of changes in foreign exchange rates 13,830,359 (663,143)

Cash and cash equivalent at the end of the year 73,948,428 46,216,433

Non-cash transactions 57 5,713,610 2,197,061

BANK PASARGAD (PJSC) STATEMENT of CASH FLOWS for the FINANCIAL YEAR ENDED MARCH 20, 2018

IRRm


1- ABOUT BANK

1-1- Background

Bank Pasargad was registered under No-254300 by the Tehran Companies Registrer Office on September 4,

2005 and the Central Bank of the Islamic Republic of Iran (CBI) issued The Banking Operation License No-

2849 on September 13, 2005 in favor of it. Bank Pasargad was listed on the Tehran Stock Exchange (TSE) on

February 6, 2011 and was first traded on August 6, 2011. Bank Pasargad's head office is located at No. 430,

Mirdamad Blvd., Tehran 19697-74511, Iran.

1-2- Main Activities

In accordance with article 3 of articles of association, Bank Pasargad does all monetary, financial and banking

activities in accordance and compliance with the regulations set by CBI.

1-3- Number of Branches

Number of bank branches at the year end is as follows:

2017/18 2016/17

Tehran province branches 207 207

Other province branches 118 118

Free-trade zones branches 2 2

327 327

1-4- Employment Status

number of bank employees & group at the year end is as follows:

Group Bank

NOTE 2017/18 2016/17 2017/18 2016/17

Head office 734 655 734 655

Tehran province branches 1,969 2,065 1,969 2,065

Other province branches 1,066 1,118 1,066 1,118

Free zones branches 37 36 37 36

Subsidiaries 1-4-1 6,727 5,407 0 0

10,533 9,281 3,806 3,874

1-4-1- The main reason for the decline in the number of employees in subsidiaries was due to sale of Middle

East Mines & Mineral Industries Development Holding Co. and Mabna Khavar Miyaneh Co. which were subject

to consolidation.

2- BASIS FOR PREPARATION OF FINANCIAL STATEMENTS

The Bank's financial statements are prepared based on accounting standards and regulations of Central Bank

of Iran. Details of accounting procedures include changes during the year are mentioned in notes 5 and 6.

BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018


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3- CURRENCY UNIT OF REPORTING AND OPERATING

The financial statement items are measured with IRR which is Iran's main currency. These items are provided in

term of IRRm for better understanding unless in case which are explicitly mentioned in financial statements and

disclosure notes.

4- USING JUDGMENT AND ESTIMATION

To prepare financial statements, the management exerts judgments, estimates and assumptions in determining

the amounts in the financial statements. Actual results may be different from estimates. These estimates and

assumptions are based on historical records, and management continually reviews them by comparing with real

events.

5- MEASUREMENT PRINCIPLES

5-1- Financial statement are prepared based on "historical cost" principle.

5-2- Consolidated financial statements of the bank and its relevant subsidiaries are as described in note

13-2-1 and have been prepared after elimination of the intra group transactions and any unrealized profit.

5-3- For subsidiaries acquired during the year, results of operations are reflected in the consolidated financial

statements from date of acquisition of effective control and for subsidiaries sold during the year, results of op-

eration up to disposal date would be reflected in the consolidation.

6- CHANGE IN ACCOUNTING POLICIES

The accounting policies mentioned in note 7 have been adopted in preparation of financial statements of all

reporting periods according to consistency principle.



7-2- Tangible Fixed assets

7-2-1- Fixed assets are recorded at cost. Upgrade and overhauling expenditures which enhance the useful

life, capacity or quality of such assets are capitalized and depreciated during their remaining useful life. Ordi-

nary repair and maintenance charges which are performed to maintain fixed assets in operating condition, are

recorded as expense when incurred and reflect in period profit or loss account.

7-2-2- Fixed assets are depreciated in accordance with Article 149 of the Direct Taxation Act Schedule, using

the following rates and methods:

profit of credit facilities recievable:

Consolidation (Group) Parent company

Evaluation method

Long-term Investments:

Investment in subsidiaries Subject to Consolidation Cost (less each accumulated impairment)

Investment in associates Equity method Cost (less each accumulated impairment)

Other long-term investments Cost (less each accumulated impairment) Cost (less each accumulated impairment)

Short-term investments:

Liquid investments Lower of cost or net sales value of investment portfolio

Lower of cost or net sales value of investment portfolio

Other short-term investments Lower of cost or net sales value of each investment

Lower of cost or net sales value of each investment

Revenue recognition method

Investment in subsidiaries subject to Consolidation Upon approval of dividend by investee's AGM (up to authorization of financial statement)

Investment in unconsolidated subsidiaries Upon approval of dividend by investee's AGM

Upon approval of dividend by investee's AGM (up to authorization of financial statement)

Investment in associates Equity method Upon approval of dividend by investee's AGM (up to authorization of financial statement)

Other long-term and short-term investments

Upon approval of dividend by investee's AGM (up to SFP date)

Upon approval of dividend by investee's AGM (up to SFP date)

7- SIGNIFICANT ACCOUNTING POLICIES

7-1- Investments

Fixed Assets Dep. Rate Dep. Method

Buildings 25 years Straight line

Installations 20% Descending method

Motor vehicles 25% Descending method

Computer hardware 3 years Straight line

Communication equipment 10 years Straight line

ATM 3 years Straight line

POS 3 years Straight line

Furniture & fixtures 10 years Straight line

Construction in leasehold properties 3 years Straight line



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7-2-3- For fixed assets acquired during the month, depreciation will start from the following month. In case the

fixed assets are not used due to working halts or other reasons, depreciation is calculated on 30% of above

mentioned rates.

7-3- Intangible assets

Intangible assets, except for business goodwill, are recorded at cost. Business goodwill is not impaired, im-

pairment testing is performing at the end of each fiscal year and If necessary, the required provision will be

provided. Software are amortized over three years using the straight-line method.

7-4- Recognition of Income and late payment penalties on credit facilities and commissions

With respect to the enactment of the meeting No. 1044, dated July 16th, 2005 of the Money and Credit

Council and the circular No. 772/MB dated July 18th, 2005, issued by the CBI, the profit derived from credit

facilities have been recognized on accrual basis. Also according to circular No. 94/258090 dated November

30th, 2015 no accrual income had been recognized for doubtful debts. Accordingly the recognition method of

the bank's income are as bellow:

Type of income Basis for recognition of income

Profit of credit facilities:

Current debt Accrual

Overdue debt Accrual

Bad debt Accrual

Doubtful debt Cash

Late payement penalties:

Current debt Accrual

Overdue debt Accrual

Bad debt Accrual

Doubtful debt Cash

Commissions:

L/Gs commissions Cash

Other services commissions Cash

Qard-al-hasan facilities commissions Cash



7-5- Basis for determination of the share of depositors from joint income:

In accordance with the Usury-free Banking Law ratified on August 30th,1983 and its executive directives and

with respect to the circular No. 94/69643 dated June 10th, 2015 , joint income, bank's allocation of joint

resources, share of depositors from joint income are calculated and reported in the statement of investment

deposits performance.

7-6- Classification of credit facilities:

Credit facilities are classified based on "directive of classification of financial institutions" approved by the Mon-

ey and Credit Council subject to the circular No. MB/2823 dated February 24th,2007 of the CBI, with respect

to the factors of late payment as below, customer's financial status and industry or activity field:

Current debt:

Maximum 2 months overdue or payment cut off date

Overdue debt:

2 to 6 month overdue or payment cut off date

Bad debt:

6 to 18 months overdue or payment cut off date

Doubtful debt:

More than 18 months overdue or payment cut off date

7-7- Provision of doubtful accounts

Provisions for credit facilities are calculated based on the "directive of doubtful provision calculation of financial

institutions" approved by the Money and Credit Council (subject to the circular No. 91/21270 dated April 19th

2012, by the CBI) as follows:

1. General provision (except for facilities for which specific provision is provided for them) are calculated equal

to 1.5% of the total balance of facilities.

2. Specific provision concerning the balance of overdue, bad and doubtful debt categories,after deducting of

updated value of collaterals of each item, are calculated by the following determined coefficients:

Type Coefficient

General provision (except for facilities for which specific provision is provided for them) at least 1.5%

Specific provision

Overdue category 10%

Bad debt category 20%

Doubtful debt category (based on customers capabilities) 50% to 100%

Doubtful debt category overdue for five years or more 100%


3. For the facilities which have elapsed more than 5 years from the maturity date of their principal and profit,

specific provision is considered equal to 100% without deducting the collaterals value.


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7-8- Provision for employees' retirement benefits

A provision, equivalent to the latest monthly salary and benefits for each full year of service, is provided in the accounts

to cover employees' retirement benefits.

7-9- Commitments for employees' retirement benefits

The bank's employees are under the coverage of Social Security Organization insurance. Therefore, no provision is

provided in accounts for commitment for Employees' Retirement Benefits.

7-10- Foreign currency conversion

7-10-1- Local accounts

Foreign currency monetary amounts are reported using the "official exchange rates" determined by CBI at SFP

date and non-monetary items carried at historical cost should be reported using the exchange rate at the date

of transaction. Exchange differences arising when monetary items are settled or when monetary items are con-

verted, are reported in Statement of Profit or Loss of the period.

7-10-2- Accounts from foreign operations

Assets and liabilities of foreign branches are converted at the closing rate at the SFP date and Income and ex-

panses are converted at the date of transaction's rate. All resulting exchange differences are recognised in the

statement of comprehensive income and classified under shareholders' equity section of statement of financial

position. The exchange differences arising on conversion of monetary items that form part of the entity's net

investment in foreign operations are recognised in the statement of copmrehensive income and will be classified

under shareholders' equity section of statement of financial position until disposal of the net investment.

7-11- Treasury stock

Bank can reacquire 10 percent of its shares according to Law of Removal of Competitive Production Obstacles

and Law of Financial System Improvement. The bank's treasury stock is reported at cost at the date of aquisi-

tion and any difference arising from purchase and sale of treasury stocks is reported in the equity section.

7-12- Goodwill arising from consolidation

The accounting method used for business combinations is "purchase method". Goodwill is recognized as the

differences between the cost of investment aquisition and fair value of net identifiable assets and liabilities in

subsidiaries subject to consolidation and associate companies subject to equity method at the date of aquisi-

tion and is amortized over a 20 year period by direct method. Goodwill arising from acquisition of associates

is reflected in book value of long-term investment in the consolidated statement of financial position of the

associates.

8- "OTHER" IN FINANCIAL STATEMENTS NOTES

Since some accounts consist of too many items, some items of each note has been reported under title

"Other" that include trivial items with ceilings of 10% of the total amount of the note.


9- CASH

Group Bank

NOTE 20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017

Cash in hand - IRR 9-1 2,290,360 1,514,195 2,283,027 1,506,024

Cash in hand - foreign currency 9-2 4,137,633 1,899,301 4,109,112 1,895,560

Items in transit - IRR 0 0 0 0

Items in transit - foreign currency 0 0 0 0

Demand deposits at the Central Bank (unrestricted) 9-3 2,190,790 101,236 2,190,790 101,236

Deposits at other banks and financial institutions (unrestricted) 9-4 65,365,500 42,713,613 65,365,500 42,713,613

Petty cash 17,599 18,230 0 0

Others 586,641 365,712 0 0

74,588,523 46,612,287 73,948,428 46,216,433

9-1- Cash in hand (IRR and foreign currency) up to IRR 5 bn is fully insured against robbery and fire by

Pasargad Insurance Co.

9-2- Cash in hand (foreign currency) consists of USD 43.985.697, EUR 33.952.063, GBP281.935,

UAD1.088.245, CHF 19.954, TRY 2,560, CHY 1,200.

9-3- Demand deposits at the Central Bank (unrestricted)

20-Mar-2018 20-Mar-2017

ASSETS:

Demand deposits at the Central Bank - foreign currency 357,964 101,236

Demand deposits at the Central Bank - IRR 1,832,826 0

Demand deposits at the Central Bank of other countries 0 0

2,190,790 101,236

9-4- Deposits at other banks and financial institutes (unrestricted)

20-Mar-2018 20-Mar-2017

Demand deposits at other local banks and financial institutions - IRR 64,031 47,962

Demand deposits at other local banks and financial institutions - foreign currency 2,088,322 3,094,687

Term deposits at other local banks and financial institutions - IRR 694,359 812,714

Term deposits at other local banks and financial institutions - foreign currency 0 0

Demand deposits at foreign banks - foreign currency 62,518,788 38,758,251

Term deposits at foreign banks - foreign currency 0 0

65,365,500 42,713,613

9-5- Restricted deposits at banks are classified as "dues from banks".


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10- DUES FROM BANKS AND OTHER FINANCIAL INSTITUTIONS

Note 20-Mar-2018 20-Mar-2017

dues from CBI 10-2 7,158,362 7,303,500

dues from other banks and financial institutions 10-3 16,748,796 4,728,936

23,907,158 12,032,436

10-1- dues from banks without any restriction on withdrawal, has been classified as cash.

10-2- dues from CBI

Note 20-Mar-2018 20-Mar-2017

Demand deposits at the Central Bank -IRR 0 0

Demand deposits at the Central Bank - foreign currency 0 0

Demand deposits at the Central Bank of other countries 0 0

Term deposits at CBI - IRR (restricted) 10-2-1 2,556,280 2,701,419

Bonus receivable on legal deposit 0 0

Other dues 10-2-2 4,602,082 4,602,081

7,158,362 7,303,500

10-2-1- long-term deposit with the Central Bank of the Islamic Republic of Iran,the IRR deposite at the re-

frence exchange rate in the years 2011/12 and 2012/13 has been opened

for 90% of the L/Cs,which is the equivalent (currency) to the exchange rate of the deposite received for the

foreign currency received by the foreign banks.These deposits (received and paid) will be renewed up to the

3-month maturity target set at 0.1% interest rate.

10-2-2- OTHER DUES

10-2-2-1- The amount of IRR 1,452 bn was withdrawn from Bank Pasargad's account in accordance with

the Foreign Currency Coordinating Group's approval and the CBI director's order that the bank is pursuing the

collection of the amount.

10-2-2-2- According to CBI Meeting Commitments Guidelines (numbers 60/1038 dated March 3, 2013 and

60/1015 dated December 7, 2013) Bank Pasargad had recorded foreign exchange commitments in CBI sys-

tem with reference exchange rate and converted the asset liability difference with translational exchange rate at

the end of fiscal year 2014/15. The IRR 3,150 bn difference has been recorded in due from CBI account, which

settlement will be conditional on preparing foreign exchange special audit report and CBI approval, which is

still in progress.


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10-3- dues from other banks and financial institutions

Note 20-Mar-2018 20-Mar-2017

0 0

Demand deposits at other local banks and financial institutions - IRR 0 0

Demand deposits at other local banks and financial institutions - foreign currency 0 0

Term deposits at other local banks and financial institutions - IRR (restricted) 10-3-1 1,100,370 2,000

Term deposits at other local banks and financial institutions - foreign currency stricted) 0 0

Demand deposits at foreign banks - foreign currency 0 0

Term deposits at foreign banks - foreign currency (restricted) 4,713,735 4,613,292

Interbank deposits paid to other local banks and financial institutions 10-3-2 10,860,000 0

Payments for clearing other bank's checks 74,691 113,644

Other 0 0

16,748,796 4,728,936

10-3-1- Including a claim for IRR 1090 bn of the Pasargad Bank from the dissociated credit institution Samen

al-hajj in the minutes of the supreme committee organizing unformed monetary market aprroved by Central

Bank executive board on Jun17,2017, the bank's objections to the central bank were announced in the six

letter, the first of which was the letter no. 105/s19/96 dated 30 July 2017 and the last of which was letter no

117/s3660/96 dated 28 Jan 2018.

10-3-2- Interbank deposits paid to banks includes IRR 3800 bn Shahr bank,IRR 3050 bn Tourism bank,IRR

3000 bn Tejarat bank and IRR 1010 bn ghavamin bank.

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11- CREDIT FACILITIES AND DUES FROM GOVERNMENTAL ENTITIES

Group Bank

20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017

Installment sales 0 0 0 0

Ju'alah 0 0 0 0

Hire-purchase 0 0 0 0

Qard-al-hasan 0 0 0 0

Mudarabah 0 0 0 0

Musharakah 0 2,596,136 0 2,596,136

Debt purchase 0 0 0 0

Debtors for paid L/Cs 0 0 0 0

Credit facilities in foreign currency 0 0 0 0

Debtors for paid L/Gs 0 0 0 0

Debtors for paid credit cards 0 0 0 0

Murabaha 0 0 0 0

Total 0 2,596,136 0 2,596,136

Less:

Deferred income (0) (0) (0) (0)

Outstanding profit (0) (0) (0) (0)

General provision of doubtful debts (0) (38,942) (0) (38,942)

Specific provision of doubtful debts (0) (0) (0) (0)

0 2,557,194 0 2,557,194


IRRm


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00

Mud

arab

ah0

00

0(0

)0

(0)

00

Mus

hara

kah

00

00

(0)

0(0

)0

2,55

7,19

4

Debt

pur

chas

e0

00

(0)

(0)

0(0

)0

0

Mur

abah

a0

00

(0)

(0)

0(0

)0

0

Qar

d-al

-has

an0

00

0(0

)0

(0)

00

Cred

it fa

ciliti

es in

fore

ign

curr

ency

00

0(0

)(0

)0

(0)

00

Debt

ors f

or p

aid

L/Cs

0

00

0(0

)0

(0)

00

Debt

ors f

or p

aid

L/Gs

0

00

0(0

)0

(0)

00

Debt

ors f

or p

aid

cred

it ca

rds

00

00

(0)

0(0

)0

0

00

0(0

)(0

)0

(0)

02,

557,

194

11-1

- B

ank

Pas

arg

ad's

cre

dit

faci

litie

s an

d d

ues

fro

m g

ove

rnm

enta

l ent

ities

BANK

PAS

ARGA

D (P

JSC)

NO

TES

to C

ONSO

LIDA

TED

FINA

NCIA

L ST

ATEM

ENTS

FIN

ANCI

AL Y

EAR

ENDE

D M

ARCH

20,

201

8

IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

12- CREDIT FACILITIES AND DUES FROM NON-GOVERNMENTAL ENTITIES

Group Bank

20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017

Installment sales 5,429,640 5,118,101 5,045,106 4,550,504

Ju'alah 1,406,419 1,014,912 1,406,419 1,014,912

Hire-purchase 3,650 5,649 3,411 3,158

Qard-al-hasan 2,361,700 1,848,759 2,361,700 1,848,759

Mudarabah 18,659,928 18,550,719 18,659,928 18,550,719

Musharakah 379,075,113 333,934,835 479,094,889 398,397,344

Debt purchase 701,333 344,206 701,333 344,206

Debtors for paid L/Cs 12,286,085 12,467,205 12,286,085 12,467,205

Credit facilities in foreign currency 128,564,059 63,486,690 128,564,059 63,486,690

Debtors for paid L/Gs 1,953,226 1,734,379 1,953,226 1,734,379

Debtors for paid credit cards 268,355 542,098 268,355 542,098

Murabaha 1,251,717 462,276 1,251,717 462,276

Total 551,961,225 439,509,829 651,596,228 503,402,250

Less:

Deferred income (9,392,829) (9,917,134) (9,333,471) (9,917,134)

Outstanding profit (8,832,249) (3,930,285) (8,832,249) (3,930,285)

General provision of doubtful debts (8,402,099) (6,692,417) (9,339,106) (7,250,015)

Specific provision of doubtful debts (34,907,991) (20,472,550) (34,907,991) (20,472,551)

490,426,057 398,497,443 589,183,411 461,832,266


IRRm


20-M

ar-2

018

20-M

ar-2

017

Bala

nce

Profi

t and

co

mm

issi

ons

rece

ivab

le

Late

pay

men

t pe

nalti

es

rece

ivab

le

Defe

rred

in

com

e O

utst

andi

ng

inco

me

Tota

lpr

ovis

ion

of

doub

tful

deb

ts

Net

bal

ance

Net

bal

ance

Inst

allm

ent s

ales

4,9

20,6

11

105

,955

1

8,54

0 (2

,206

,375

) (2

3,18

7) 2

,815

,544

(1

46,3

10)

2,6

69,2

34

2,4

62,2

68

Ju'a

lah

1,3

96,5

59

9,3

63

497

(3

81,0

84)

(558

) 1

,024

,777

(2

3,81

8) 1

,000

,959

7

38,4

53

Hire

-pur

chas

e 8

20

2,0

91

502

0

(569

) 2

,844

(2

,499

) 3

45

1,2

79

Mud

arab

ah 9

,708

,823

8

,163

,945

7

87,1

61

0 (1

,521

,676

) 1

7,13

8,25

3 (5

,549

,775

) 1

1,58

8,47

8 1

4,38

1,94

4

Mus

hara

kah

393

,738

,549

8

1,63

8,41

3 3

,717

,927

0

(6,5

62,2

55)

472

,532

,634

(3

0,80

6,05

1) 4

41,7

26,5

83

376

,094

,428

Debt

pur

chas

e 6

04,4

77

96,

741

115

(6

1,36

6)0

639

,967

(1

0,38

7) 6

29,5

80

290

,024

Mur

abah

a 1

,094

,077

1

57,5

32

107

(1

43,9

84)

0 1

,107

,732

(1

8,16

1) 1

,089

,571

3

88,2

59

Qar

d-al

-has

an 2

,357

,403

4

,291

6

0

0 2

,361

,700

(3

7,35

2) 2

,324

,348

1

,807

,738

Cred

it fa

ciliti

es in

fore

ign

curr

ency

122

,992

,324

5

,520

,151

5

1,58

4 (6

,540

,662

)0

122

,023

,397

(2

,009

,207

) 1

20,0

14,1

90

54,

844,

317

Debt

ors f

or p

aid

L/Cs

6

,811

,685

5

,445

,914

2

8,48

5 0

(456

,339

) 1

1,82

9,74

5 (5

,209

,897

) 6

,619

,848

9

,189

,296

Debt

ors f

or p

aid

L/Gs

1

,206

,089

1

4,55

4 7

32,5

83

0 (2

67,6

65)

1,6

85,5

61

(407

,550

) 1

,278

,011

1

,125

,157

Debt

ors f

or p

aid

cred

it ca

rds

171

,596

1

,081

9

5,67

7 0

0 2

68,3

54

(26,

090)

242

,264

5

09,1

03

545

,003

,013

1

01,1

60,0

31

5,4

33,1

84

(9,3

33,4

71)

(8,8

32,2

49)

633

,430

,508

(4

4,24

7,09

7) 5

89,1

83,4

11

461

,832

,266

12-1

-Ban

k P

asar

gad

cre

dit

faci

litie

s an

d d

ues

fro

m n

on-

go

vern

men

tal e

ntiti

es

BANK

PAS

ARGA

D (P

JSC)

NO

TES

to C

ONSO

LIDA

TED

FINA

NCIA

L ST

ATEM

ENTS

FIN

ANCI

AL Y

EAR

ENDE

D M

ARCH

20,

201

8

IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes


12-2- Classification of credit facilities and dues from non-governmental entities - classification of credit

facilities and dues from non governmental entitites according to instruction of Money and Credit Council is

as follows:

20-Mar-2018 20-Mar-2017

Current debts Overdue debts Bad debts Doubtful debts Total Total

Installment sales 4,994,375 330 2,118 48,284 5,045,107 4,550,504

Ju'alah 1,304,848 100,204 279 1,088 1,406,419 1,014,912

Hire-purchase 2,593 0 0 819 3,412 3,158

Mudarabah 14,619,287 551,460 793,328 2,695,854 18,659,929 18,550,719

Musharakah 458,052,526 3,201,587 5,779,851 12,060,924 479,094,888 398,397,344

Debt purchase 701,333 0 0 0 701,333 344,206

Murabaha 1,246,521 4,629 567 0 1,251,717 462,276

Qard-al-hasan 2,360,947 119 635 0 2,361,701 1,848,759

Credit facilities in foreign currency 128,096,218 467,841 0 0 128,564,059 63,486,690

Debtors for paid L/Cs 11,653,750 0 0 632,334 12,286,084 12,467,205

Debtors for paid L/Gs 1,518,891 0 0 434,334 1,953,225 1,734,379

Debtors for paid credit cards 100,345 0 168,009 0 268,354 542,098

624,651,634 4,326,170 6,744,787 15,873,637 651,596,228 503,402,250

Less:

Deferred income (9,333,471) 0 0 0 (9,333,471) (9,917,134)

Outstanding profit (8,832,249) 0 0 0 (8,832,249) (3,930,284)

Net credit facilities before deducting doubtful debts 606,485,914 4,326,170 6,744,787 15,873,637 633,430,508 489,554,832

General provision of doubtful debts (9,339,106) 0 0 0 (9,339,106) (7,250,015)

Specific provision of doubtful debts 0 (300,859) (983,847) (33,623,285) (34,907,991) (20,472,551)

Balance at 20-mar-2018 597,146,808 4,025,311 5,760,940 (17,749,648) 589,183,411 461,832,266

Balance at 20-mar-2017 459,963,168 2,959,403 4,166,091 (5,256,396) 461,832,266

12-3- Movements in provision of doubtful debts:

20-Mar-2018 20-Mar-2017

General provision

Specific provision Total General

provisionSpecific

provision Total

Balance at the beginning of the year 7,250,015 20,472,551 27,722,566 5,412,828 11,248,919 16,661,747

Written off 0 (36,664) (36,664) 0 (28,439) (28,439)

Provision for current year 2,089,091 14,472,104 15,585,281 1,837,187 9,252,071 11,089,258

Balance at the end of the year 9,339,106 34,907,991 44,247,097 7,250,015 20,472,551 27,722,566

IRRm

IRRm



12-4- credit facilities in Foreign currency, categorized by paid resources:

20-Mar-2018 20-Mar-2017

Current Overdue Bad Doubtful Total Total

Internal resources 44,401,301 467,841 0 0 44,869,142 8,135,577

National Development Fund of Iran 83,694,917 0 0 0 83,694,917 55,351,113

128,096,218 467,841 0 0 128,564,059 63,486,690

12-5- Credit facilities and dues from non-governmental entities, categorized by maturity date and

profit rate:

20-Mar-2018 20-Mar-2017

24% and More 21-24% 18-21% 15-18% 12-15% 12% and

lower Total Total

Up to 20-Mar-2018 59,225,995 31,039,592 249,955 26,314,812 43,521 4,554,570 121,428,445 84,028,827

Up to 20-Mar-2019 150,591,524 64,970,828 600,739 170,258,928 6,548 31,572,140 418,000,707 340,468,132

Up to 19-Mar-2020 6,437,938 5,577,561 11,389 1,312,282 4,957 42,990,999 56,335,126 19,246,519

Up to20-Mar-2021 2,575,514 453,491 815 1,532,608 3,595 74,001 4,640,024 38,452,715

Up to 20-Mar-2022 617,648 26,165,991 4,263 599,740 42,854 5,595,710 33,026,206 7,358,639

219,448,619 128,207,463 867,161 200,018,370 101,475 84,787,420 633,430,508 489,554,832

20 March 2017 194,415,825 105,100,498 2,521,559 125,541,235 150,837 61,824,878 489,554,832

12-6- Credit facilities and dues from non-governmental entities, categorized by type of collateral:

2017/18 2016/17

Deposit, participation bond 55,998,814 11,700,360

Letter of Guarantee 218,773,315 21,638,324

Share 166,827,783 10,721,251

Binding contract 65,306,685 45,185,911

Land, building and machinery 370,202,805 30,303,444

Check and promissory note 478,746,778 370,005,542

1,355,856,180 489,554,832

IRRm

IRRm

IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

Inst

allm

ent

sale

sJu

'ala

hHi

re-

purc

hase

Mud

arab

ahM

usha

raka

hDe

bt

purc

hase

Mur

abah

aQ

ard-

al-

hasa

n

Fore

ign

curr

ency

cre

dit

faci

lities

Debt

ors f

or

paid

L/C

sDe

btor

s for

pa

id L

/Gs

Debt

ors f

or

paid

cre

dit

card

sTo

tal

Prin

cipal

cred

it fa

cililti

es:

Bala

nce

at 2

0-M

ar-2

017

2,48

9,19

367

0,99

981

910

,195

,600

316,

531,

694

243,

849

324,

155

1,83

9,40

953

,582

,942

8,02

6,60

673

6,86

243

7,01

939

5,07

9,14

7

Gran

ted

durin

g th

e ye

ar46

5,35

256

0,87

20

1,31

6,77

043

8,15

6,33

896

9,37

61,

272,

398

1,49

2,50

885

,054

,981

15,6

38,6

672,

877,

927

480,

154

548,

285,

343

Colle

ction

dur

ing

the

year

(2

40,3

10)

(216

,397

)(0

) (1

,803

,548

) (3

60,9

49,4

84)

(670

,114

) (6

46,4

60)

(974

,514

) (2

2,18

6,26

1) (1

6,85

3,58

8) (2

,408

,700

) (7

45,5

77)

(407

,694

,953

)

Bala

nce

at 2

0-M

ar-2

018

2,71

4,23

51,

015,

474

819

9,70

8,82

239

3,73

8,54

854

3,11

195

0,09

32,

357,

403

116,

451,

662

6,81

1,68

51,

206,

089

171,

596

535,

669,

537

Profi

t and

late

pay

men

t pe

nalti

es o

n cr

edit

facil

ities

Bala

nce

at 2

0-M

ar-2

017

103,

019

82,8

122,

086

7,68

2,08

379

,024

,599

50,9

8670

,450

7,56

92,

307,

265

4,23

8,21

880

1,51

810

5,08

094

,475

,685

Incr

ease

dur

ing

the

Year

11

1,07

250

6,56

525

423

,522

,188

81,8

65,6

4917

8,05

330

6,51

910

,293

7,72

3,33

52,

151,

165

279,

389

47,7

8611

6,70

2,26

8

Colle

ction

dur

ing

the

year

(1

12,7

82)

(580

,075

) (3

16)

(23,

774,

841)

(82,

096,

163)

(132

,183

) (2

19,3

29)

(13,

565)

(4,4

58,8

65)

(1,3

71,3

22)

(601

,435

) (5

6,10

7) (1

13,4

16,9

83)

Bala

nce

at 2

0-M

ar-2

018

101,

309

9,30

22,

024

7,42

9,43

078

,794

,085

96,8

5615

7,64

04,

297

5,57

1,73

55,

018,

061

479,

472

96,7

5997

,760

,970

Prov

ision

of D

oubtf

ul

Debt

s:

Bala

nce

at 2

0-M

ar-2

017

(129

,945

) (1

5,35

8) (1

,626

) (3

,495

,739

) (1

9,46

1,86

5) (4

,810

) (6

,347

) (3

9,24

0) (1

,045

,890

) (3

,075

,528

) (4

13,2

22)

(32,

996)

(27,

722,

566)

Prov

ision

of c

urre

nt ye

ars

16,

365

(8,4

60)

(873

) (2

,054

,036

) (1

1,38

0,29

9) (5

,577

) (1

1,81

4) 1

,338

(9

63,3

17)

(2,1

34,3

69)

5,6

72

6,9

06

(16,

561,

194)

Writ

en o

ff 36

,113

550

36,6

63

Bala

nce

at 2

0-M

ar-

2018

(1

46,3

10)

(23,

818)

(2,4

99)

(5,5

49,7

75)

(30,

806,

051)

(10,

387)

(18,

161)

(37,

352)

(2,0

09,2

07)

(5

,209

,897

) (4

07,5

50)

(26,

090)

(44,

247,

097)

Net

cred

it fa

ciliti

es:

Bala

nce

at 2

0-M

ar-2

017

2,46

2,26

773

8,45

31,

279

14,3

81,9

4437

6,09

4,42

829

0,02

538

8,25

81,

807,

738

54,8

44,3

179,

189,

296

1,12

5,15

850

9,10

346

1,83

2,26

6

Bala

nce

at 2

0-M

ar-

2018

2,66

9,23

41,

000,

958

344

11,5

88,4

7744

1,72

6,58

262

9,58

01,

089,

572

2,32

4,34

812

0,01

4,19

06,

619,

849

1,27

8,01

124

2,26

558

9,18

3,41

1

12-7

- C

red

it fa

cilil

ties

and

due

s fr

om

no

n-g

ove

rnm

enta

l ent

ities

hav

e th

e fo

llow

ing

mo

vem

ents

:

* P

rofit

and

late

pay

men

t pen

altie

s on

cre

dit f

acili

ties

incl

udes

inc

ome

from

cre

dit f

acili

ties

and

late

pay

men

t pen

altie

s

BANK

PAS

ARGA

D (P

JSC)

NO

TES

to C

ONSO

LIDA

TED

FINA

NCIA

L ST

ATEM

ENTS

FIN

ANCI

AL Y

EAR

ENDE

D M

ARCH

20,

201

8

IRRm


Inst

allm

ent

sale

sJu

'ala

hHi

re-

purc

hase

Mud

arab

ahM

usha

raka

hDe

bt

purc

hase

Mur

abah

aQ

ard-

al-

hasa

n

Fore

ign

curr

ency

cre

dit

faci

lities

Debt

ors f

or

paid

L/C

sDe

btor

s for

pa

id L

/Gs

Debt

ors f

or

paid

cre

dit

card

sTo

tal

Profi

t rec

eiva

bla

on cr

edit

facil

ities

:

Bala

nce

at 2

0-M

ar-2

017

80,7

8381

,755

1,63

47,

062,

192

76,2

30,8

7750

,935

70,4

4143

62,

298,

133

4,20

9,73

37,

400

9,45

690

,103

,775

Incr

ease

dur

ing

the

Year

10

6,69

247

5,84

920

522

,754

,150

68,3

06,1

3917

7,61

930

5,68

89,

449

7,61

3,44

52,

151,

165

19,5

5918

,306

101,

938,

266

Colle

ction

dur

ing

the

year

(1

04,7

05)

(548

,799

) (3

17)

(23,

174,

073)

(69,

460,

859)

(131

,813

) (2

18,5

97)

(5,5

94)

(4,3

91,4

27)

(1,3

71,3

22)

(12,

405)

(26,

680)

(99,

446,

591)

Bala

nce

at 2

0-M

ar-2

018

82,7

708,

805

1,52

26,

642,

269

75,0

76,1

5796

,741

157,

532

4,29

15,

520,

151

4,98

9,57

614

,554

1,08

292

,595

,450

late

pay

men

t pen

altie

s re

cieva

ble:

Bala

nce

at 2

0-M

ar-2

017

22,2

351,

057

453

619,

891

2,79

3,72

251

97,

133

9,13

228

,485

794,

118

95,6

244,

371,

910

Incr

ease

dur

ing

the

Year

4,

380

30,7

1749

768,

039

13,5

59,5

1143

483

184

410

9,89

00

259,

830

29,4

8114

,764

,006

Colle

ction

dur

ing

the

year

(8

,074

) (3

1,27

7)0

(600

,769

) (1

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IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

12-8- Credit facilities and dues from non-governmental entities by customer type:

12-9- Credit facilities and dues from subsidiaries and associates are as follows:

2017/18 2016/17

Gross amount provision of doubtful debts Net amount Gross amount provision of

doubtful debts Net amount

Individuals 18,550,717 (1,675,730) 16,874,987 38,370,713 (2,431,703) 35,939,010

legal entities 607,953,933 (42,467,479) 565,486,454 444,966,178 (25,197,594) 419,768,584

Employees 6,925,858 (103,888) 6,821,970 6,217,941 (93,269) 6,124,672

633,430,508 (44,247,097) 589,183,411 489,554,832 (27,722,566) 461,832,266

2017/18 2016/17

Current Overdue provision of doubtful debts Total Total

Subsidiaries:

Pasargad Arzesh Afarinan Group 2,362,118 0 35,432 2,326,686 2,873,558

Saman Tejarat Tadbir Iranian Co. 9,839,622 0 147,594 9,692,028 8,026,021

Hafez andisheh mad Co. 2,971,594 0 44,574 2,927,020 2,380,981

Miras Rastin Pars Co. 2,655,523 0 39,833 2,615,690 2,154,631

Payam Avaran Modiriat Iranian Co. 2,276,748 0 34,151 2,242,597 1,678,082

Kashefan No Andish Pars Co. 2,181,211 0 32,718 2,148,493 1,694,704

Khadamat Poshtiban Pasargad Aryan Co. 92,497 0 1,387 91,110 75,663

Modabberan Tejarat Iranian Co. 822,353 0 12,335 810,018 692,382

Pasargad Aryan ICT Group 1,870,546 0 28,058 1,842,488 760,566

"Pasargad Machinery and Equipment Leasing Co." 4,400,139 0 66,002 4,334,137 3,603,163

Pasargad Leasing Co. 829,745 0 12,446 817,299 955,462

Aryan Pasargad construction management Co. 5,449,917 0 81,749 5,368,168 4,323,359

Zist Boom ICT Pasargad Aryan Co. 8,542 0 128 8,414 9,044

Bank Pasargad Brokerage Co. 22,877 0 343 22,534 -

Fanap co. 1,781,356 0 26,720 1,754,636 1,178,240

Pardazesh Electronic Rashed Samaneh Co. 113,606 0 1,704 111,902 55,617

Zirsakht ICT Pasargad Aryan Co. 50,763 0 761 50,002 55,958

Nezam Mohandesi Aryan Construction Management Co. 775,081 0 11,626 763,455 646,178

Pasargad Mass construction Developing Co. 9,583,812 0 143,757 9,440,055 7,623,773

magnetic Karan Co. 36,733 0 551 36,182 -


IRRm

IRRm


2017/18 2016/17


Associates:

Pasargad Energy Development Co. 5,464,496 0 81,967 5,382,529 896,021

Pars Behin Qeshm Oil Refinery Co. 1,415,345 0 21,230 1,394,115 -

Shams Pasargad electricity Co. 3,155,349 0 47,330 3,108,019 2,501,987

Qeshm Movaled Co. 601,570 0 9,024 592,546 521,295

Tejarat pasargad Co. 1,034,859 0 15,523 1,019,336 808,876

Petro Kariz Omid Kish Co. 1,657,707 0 24,866 1,632,841 1,310,665

Petro Danial Kish 20,562 0 308 20,254 59,018

Datis Aryan qeshm Co. 229,968 0 3,450 226,518 321,537

Ostovan Kish Drilling Co. 651,920 0 9,779 642,141 505,081

Sivan Tadbir Trade Co. 365,749 0 5,486 360,263 248,985

Faraz Pendaran Aria moj Co. 286,773 115,259 24,580 377,452 323,931

Niroo Gostar Sirjan Co. 10,858 0 163 10,695 10,700

Pishgaman Amin Sarmaye Pasargad 86,731 0 1,301 85,430 66,104

Barid Fanavar Aryan co. 170,244 0 2,554 167,690 57,252

Bank Pasargad E-Payment Co. 561,475 0 8,422 553,053 718,535

Iranian Babak Copper Co. 10,430,863 0 156,463 10,274,400 5,967,353

Middle East Mines & Mineral Industries Development Holding Co. 4,132,043 0 61,981 4,070,062 5,915,868

Middle East Mines Renovation & Development Co. 2,251,684 0 33,775 2,217,909 1,255,310

Zarand Iranian Steel Co. 37,586,145 0 563,792 37,022,353 21,104,812

Sirjan Iranian Co. 26,294,393 0 394,416 25,899,977 13,169,710

Bootyay E Iranian Steel Co. 13,388,887 0 200,833 13,188,054 6,593,819

Ferosilis Gharb Pars Co. 557,511 0 8,363 549,148 433,829

MANA Iranian Industries Renovation & Development structural Co. 796,677 0 11,950 784,727 558,580

Karavaran Sanat Khavaremyaneh Co. 98,912 0 1,484 97,428 -

Naftanir Industrial Projects Management Co. 50,894,811 0 763,422 50,131,389 21,432,869

Tamin Maskan Co. 20,554,014 0 308,310 20,245,704 17,165,786

Gharb Iranian developing trade Co. 9,197,666 0 137,965 9,059,701 6,983,523

Nasim Tejarat Farda Co. 7,192,934 0 107,894 7,085,040 5,650,625

Andishe Tejarat Soroush Sahand Co. 5,965,518 0 89,483 5,876,035 4,543,354

Mabna Khavarmiyaneh Co. 5,615,796 0 84,237 5,531,559 4,167,814

No-Andish Toseee Matin co. 5,578,052 0 83,671 5,494,381 4,421,013

Zarin Pey sazan Pasargad Co. 5,194,163 0 77,912 5,116,251 4,240,532

Poshesh Tamin Atieh Building Co. 5,172,347 0 77,585 5,094,762 3,709,354

Hashtom Construction Co. 4,711,921 0 70,679 4,641,242 3,963,968

Dana Gostar Caspian Co. 4,498,816 0 67,482 4,431,334 2,753,302

Pars Pishgan Mihan Negar Trade Co. 4,359,946 0 65,399 4,294,547 2,648,014

Paydar Zarin Tabirgaran Pishroo Co. 4,337,167 0 65,057 4,272,110 2,635,506

Noandish Pasargad Co. 4,250,682 0 63,760 4,186,922 3,482,669


IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes


2017/18 2016/17


Associates:

Pouya Andish Sarzamin Mad Co. 4,143,023 0 62,145 4,080,878 3,154,246

Kala Madar Iranian Trade Co. 3,788,619 0 56,829 3,731,790 2,967,782

Bazarganan Ayande-Negar Kala tejarat Co. 3,520,214 0 52,803 3,467,411 2,802,719

No-Avaran Danesh pajooh khavarmiyaneh Co. 3,331,634 0 49,975 3,281,659 2,066,910

Andishenegar Pasargad Trade Development Co. 3,238,890 0 48,583 3,190,307 2,650,438

Tadbirgaran Rastin Caspian Shomal Co. 3,137,883 0 47,068 3,090,815 2,582,004

Tadbirgaran Pasargad Co. 3,114,581 0 46,719 3,067,862 2,528,021

Padideh Taban Trade co. 3,065,050 0 45,976 3,019,074 2,307,615

Aryan Arman Pajoh Co. 3,004,910 0 45,074 2,959,836 2,515,404

Armaghan Trade Co. 2,724,101 0 40,862 2,683,239 2,245,541

Padide Taban Saramad Co. 2,705,418 0 40,581 2,664,837 1,772,890

Armannegar Khavarmiyaneh Co. 2,637,288 0 39,559 2,597,729 2,207,669

Zarintab Trade Co. 2,551,138 0 38,267 2,512,871 2,093,297

Iman Maskan Paydar Co. 2,490,629 0 37,359 2,453,270 2,050,283

Ayande Negar Pasargad Co. 2,485,314 0 37,280 2,448,034 2,031,558

Noavaran Khavarmyaneh Co 2,377,834 0 35,668 2,342,166 1,922,593

Tamin Atieh Co. 1,713,977 0 25,710 1,688,267 1,257,090

Nazm Avaran Pooyaye Iranian Co. 1,697,140 0 25,457 1,671,683 950,164

Pars Aryan Investment Co. 1,660,819 0 24,912 1,635,907 1,128,567

Tadbir Sazan Saramad Co. 1,179,284 0 17,689 1,161,595 963,550

Rahbord Sarmaye Iranian Co. 338,374 0 5,076 333,298 257,619

Darik Iranian Development Co. 331,235 0 4,969 326,266 306,639

Tamin Atieh Trade Development Co. 307,581 0 4,614 302,967 -

Petro Kala Pasargad Co. 281,004 0 4,215 276,789 214,040

Vandad Mehr Afarinan tosee va tejarat Co. 126,122 0 1,892 124,230 -

Pishro Kalaye Gharb Co. 124,971 0 1,875 123,096 108,977

Arzesh Pardaz Aryan consulting Co. 71,045 0 1,066 69,979 82,841

Binesh Gostar Trade Development Co. 35,846 0 538 35,308 3,952

Kherad Pishgan Aryayee Co. 28,957 0 434 28,523 -

Navid Gostaresh Tejarat No Avaran 16,076 0 241 15,835 5,479

Kherad Pishgan Pars Gostar Novin 8,810 0 132 8,678 6,718

353,137,104 115,259 5,317,333 347,935,030 233,119,585

IRRm


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49IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

13-1- Investment in marketable shares

13-1-1- Current Investment in marketable shares is as follows:

20-Mar-2018 20-Mar-2017

Origination Number of shares

Investment percentage(%) Cost Net realisable

value Cost Net realisable value

Shares of listed companies in Tehran Stock Exchange:

Clinical, Optical and Measurement

Kontor Sazi Iran Co. Purchased 3,262,418 1.63 69,009 151,921 - -

Extraction of metal ores

Sabanour Mining and Industrial Development Company Purchased 882,716 0.03 2,610 2,259 - -

Iran Zinc Mines Development Purchased 6,827,884 0.28 19,714 24,376 - -

Bafgh Mining Purchased 238,000 0.12 3,773 3,550 - -

Mines and metal developing investment Purchased 0 0.00 - - 3,938 3,948

bama Purchased 420,067 0.08 3,164 3,949 - -

Chadormalu Mining and Industrial Company Purchased 3,276,709 0.01 4,947 6,793 - -

Gol Gohar Mining and Industrial Company Purchased 9,392,796 0.03 24,304 34,284 - -

Banks and credit institutions:

Ansar Bank Purchased 14,311,852 0.72 14,312 30,627 - -

Ansar Bank right issue Purchased 0 0.00 - - 16,329 12,574

Day Bank Purchased 1,000,000 0.02 1,429 1,404 1,429 1,404

Transportation, Communications and Warehousing:

Rail Pardaz Seir co. Purchased 0 0.00 - - 20,068 23,215

Automotive and manufacturing parts

SAIPA Purchased 6,650,000 0.02 8,843 5,679 - -

ZAMYAD Purchased 200,000 0.00 187 160 - -

BAHMAN DISEL Purchased 50,000 0.01 213 201 - -

RENA Investment Purchased 1,434,481 0.02 1,603 1,183 - -

Other non-metal ores:

Lia special materials co Purchased 0 0.00 - - 1,422 5,032

Investments:

Kharazmy Investment co. Purchased 0 0.00 - - 13,635 10,452

Industrial conglomerate companies:

Country Pension Fund Investment co. Purchased 0 0.00 - - 3,414 3,188

Trading Invoice Fund - -

Etemad Afarin Parsian investment Fund Purchased 875,000 0.09 14,193 17,007 - -

Electricity, gas, steam and hot water supply:

Fajr Petrochemical Co. Purchased 0 0.00 - - 56,901 56,305

Mobin Petrochemical Co. Purchased 0 0.00 - - 23,742 23,484

Petroleum products, coke and nuclear fuel

Isfahan Oil Refinery Purchased 300,000 0.00 873 1,284 - -

Bandar Abbas Oil Refinery Purchased 1,868,841 0.01 9,651 13,385 - -

Tehran Oil Refinery Purchased 549,100 0.00 1,357 2,251 - -

Shiraz Oil Refinery Purchased 79,340 0.01 1,401 985 - -

Base metals:

Asia Zarin madan co. Purchased 740,163 0.25 4,108 4,020 - -

IMPRC Purchased 397,142 0.33 4,682 5,745 - -

Sadid Pipe & Equipment Co. Purchased 64,853 0.07 461 519 461 160

Calcimine Co. Purchased 5,081,416 0.25 19,969 31,266 - -

Aluminum rolling company Purchased 750,000 0.11 1,046 1,131 - -

Zangan Zinc Industry co Purchased 175,667 0.18 1,281 1,770 - -


IRRm


20-Mar-2018 20-Mar-2017

Origination Number of shares

Investment percentage(%) Cost Net realisable

value Cost Net realisable value

kimiya zanjan gostaran co. Purchased 1,017,788 0.88 13,886 13,222 - -

National Iranian Lead Purchased 1,318,000 0.41 3,736 4,247 - -

Arfa Iron and steel co Purchased 2,763,970 0.09 9,570 9,771 - -

Arfa Iron & Steel Co. right issue Purchased 927,642 0.03 928 1,814 - -

Khouzestan Steel Co. Purchased 5,901,897 0.04 22,250 28,524 - -

Mobarakeh Steel Co. Purchased 13,883,907 0.02 23,604 39,944 - -

Iran Alloy Steel Company Purchased 1,141,343 0.03 2,129 1,600 - -

Chemical products:

Tamin Petroleum & Petrochemical Investment Co. Purchased 669,000 0.00 866 1,046 - -

Zagros Petrochemical Co. Purchased 1,258,721 0.05 25,415 44,272 413 442

Fan Avaran Petrochemical Co. Purchased 370,000 0.04 6,816 10,952 - -

Khark Petrochemical Co. Purchased 631,609 0.03 8,738 15,450 - -

Khorasan Petrochemical Co. Purchased 99,887 0.01 556 724 - -

Maron Petrochemical Co. Purchased 517,794 0.01 18,399 21,776 - -

Pardis Petrochemical Co. Purchased 1,032,069 0.02 6,830 8,453 - -

Shiraz Petrochemical Co. Purchased 200,000 0.00 439 509 - -

Kermanshah Petrochemical Co. Purchased 264,366 0.01 705 992 - -

Persian Gulf Petrochemical Industries Co. Purchased 0 0.00 - - 29,358 15,223

Pharmaceutical products:

Purchased 0 0.00 - - 688 558

Alborz Distribution Co right issue Purchased 0 0.00 - - 77 131

Total current Investments 357,995 549,047 171,876 156,116

Long-term Investment in marketable shares

Auxiliary activities to intermediary financial institutions:

Energy Exchange financial institutions Purchased 6,522,000 1.82 6,522 49,300 6,522 51,393

Farabourse Iran Co. Purchased 70,000 0.02 10 227 10 269

Technical and engineering services

MAPNA Purchased 556,009,429 5.55 4,192,195 3,778,640 4,186,327 4,220,895

Total Long term Investment 4,198,727 3,828,167 4,192,859 4,272,558

Total investment in marketable shares 4,556,722 4,377,214 4,364,735 4,428,674


IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

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th se

rvice

s

Oth

er g

roup

Com

pani

es

Rahy

aftha

ye N

oava

r Bar

tar P

asar

gad

inst

. Ed

ucati

onal

serv

ices

Irani

an R

eins

uran

ce C

o.In

sura

nce

serv

ices

Mid

dle

East

Min

es &

Min

eral

Indu

strie

s De

velo

pmen

t Hol

ding

Co.

Inve

stm

ent i

n sh

ares

Mab

naye

Kha

vare

mya

neh

co.

Inve

stm

ent a

nd m

ine

extra

ction

Pars

Ary

an In

vest

men

t Co.

inve

stm

ent s

ervic

es

Pad

id-e

-Tab

an sa

ram

ad c

onst

ructi

on C

o.in

vest

men

t ser

vices

FAN

AP C

O.

ICT

serv

ices

Sira

f Refi

nerie

s Inf

rast

uctu

re C

ompl

exRe

finer

y ser

vices

Chak

ad T

avan

gary

co.

Insu

ranc

e se

rvice

s

Oth

er C

ompa

nies

13-2

- In

vest

men

t in

pas

arg

ad g

roup

sha

res

is a

s fo

llow

s:BANK

PAS

ARGA

D (P

JSC)

NO

TES

to C

ONSO

LIDA

TED

FINA

NCIA

L ST

ATEM

ENTS

FIN

ANCI

AL Y

EAR

ENDE

D M

ARCH

20,

201

8

IRRm


13-2-1 Subsidiaries characteristics subject to consolidation are as follows:

13-2-1-1- Pasargad Arzesh Afarinan's subsidiaries to be consolidated includes: Pasargad Machinery and

Equipment leasing co.- Hafez Andishe mad co.- miras rastin pars co. - Pasargad Energy Development Com-

pany group.- Pasargad Financial and investment services co.- Payam avaran modiriat Iranian co. - Kashefan

No andish pars co.- Saman tejarat tadbir Iranian co.- Modaberan Tejarat Iranian- Nazm Avaran Shayesteh -

Pasargad Aryan bachoffice services co. - Novin Hamrah communication development co.

13-2-1-2- Pasargad Leasing's subsidiarie to be consolidated includes: Arian pasargad construction manage-

ment co.

13-2-1-3- Pasargad Aryan ICT's subsidiaries to be consolidated: Dotis Aryan qeshm software co.- Ary-

an Arvand Co.- Pasargad aryan communication development co.- Rashed samaneh electronic processing

co.- Adonis electronic development-Pasargad Aryan ICT investment co.- Barid Co. - Novin Hamrah Aryan

communication development co.- Behkavan Fanavar Hooshmand Gavidan Co.- FANAP Zirsakht- Behkavan

Noavar Arena- Magnetic Karan Co.- Arman Kish ICT co.- Dadehpardazan Tadbir sarmaye co.- Datam Kish

co.- Pasargad Fartak Aryan co- Epsan ICT services co.- Emdam mandegar ICT co.- Tadbirgaran Fanavari

Hooshmand Aryan- noavar Pasargad technologies co.

13-2-1-4- Pasargad Nasim Salamat co's subsidiaries to be consolidated includes:Lyman consulting Engi-

neers co.- Khatam nasim salamat co.- Pasargad farmod parsi co.-Atieh Tourism Development Company in the

Middle East-Nasim Salamat Electronic Co. & Nasim Salamat Qazvin Co.

13-2-1-5- despite the ownership percentage in Pasargad insurance is under 50' but because of Bank Pasar-

gad major control , it is calculated in consolidated process.

Ownership percentage

Note Domicile Group Bank Activity

subsidiaries

Pasargad Arzesh Afarinan Co. 13-2-1-1 IRAN 98 98 Economical, technical, financial and credit services

Pasargad Foreign Exchange Co. IRAN 92.45 90 Foreign currency exchange

Pasargad Leasing Co. 13-2-1-2 IRAN 68.47 67 Building leasing

Pasargad E-Payment Co. IRAN 66.26 30 Electronic banking services

Pasargad Aryan ICT Co. 13-2-1-3 IRAN 63.41 49 IT and communications

Bank Pasargad Brokerage Co. IRAN 62.72 49 Stock market brokerage

Nasim Salamat Pasargad Co. 13-2-1-4 IRAN 38.98 34 Health services

Pasargad Insurance Co. 13-2-1-5 IRAN 24.89 20 Insurance services



Managem

ent Report


eportFinancial S

tatements &

Notes

Gro

upBa

nk

20-M

ar-2

018

20-M

ar-2

017

20-M

ar-2

018

20-M

ar-2

017

orig

inati

onN

umbe

r of s

hare

sIn

vest

men

t pe

rcen

tage

(%)

Cost

Accu

mul

ated

im

pairm

ent

Net

boo

k va

lue

Mar

ket v

alue

Net

boo

k va

lue

Mar

ket v

alue

3,10

33,

103

purc

hase

d 93

0,90

66.

20%

3,10

30

3,10

33,

103

3,10

33,

103

13,3

1413

,314

purc

hase

d 35

,300

,500

2.08

%13

,314

013

,314

13,3

1413

,314

13,3

14

237,

533

323,

800

purc

hase

d 23

2,88

81.

48%

234,

131

023

4,13

123

4,13

123

4,13

123

4,13

1

699,

999

699,

999

purc

hase

d 65

0,25

65.

69%

699,

999

069

9,99

969

9,99

969

9,99

969

9,99

9

050

,100

purc

hase

d -

50.0

0%0

00

050

,100

50,1

00

39,6

0016

7,71

7pu

rcha

sed

39,0

000.

60%

39,0

000

39,0

0039

,000

39,0

0039

,000

010

,000

purc

hase

d -

5.00

%0

00

010

,000

10,0

00

050

0pu

rcha

sed

500

10.0

0%0

00

050

050

0

016

,000

purc

hase

d 1,

600,

000

80.0

0%0

00

016

,000

16,0

00

07,

500

purc

hase

d 75

075

.00%

00

00

7,50

07,

500

050

,000

purc

hase

d 9,

000

90.0

0%0

00

050

,000

50,0

00

94,9

9869

,997

purc

hase

d 49

,617

20.0

0%0

00

049

,998

49,9

98

2,42

4,35

11,

585,

391

purc

hase

d 0

00

00

0

2,71

4,45

32,

764,

850

purc

hase

d 0

00

00

0

6,22

7,35

15,

762,

271

989,

547

098

9,54

798

9,54

71,

173,

645

1,17

3,64

5

Iran

Cred

it Sc

orin

g Co

.

Shap

arak

E-p

aym

ent C

o.

Andi

she

fard

a Fu

nd

Capi

tal m

arke

t dev

elop

men

t inv

estm

ent F

und

Fund

of w

rest

ling

Iran

Nati

onal

Spo

rt

Andi

she

Zarin

Pas

arga

d F

und

Nik

andi

shan

Hon

ar In

vest

men

t Fun

d Co

.

Alza

hra

Inve

stm

ent F

und

Amin

Atie

Nik

oo In

vest

men

t Fun

d

Moj

ab To

oba

Inve

stm

ent F

und

Ehda

ye o

zve

Inve

stm

ent F

und

Mira

se m

ande

gar p

asar

gad

Inve

stm

ent F

und

Depo

sit, p

artic

ipati

on b

ond

Oth

er

BANK

PAS

ARGA

D (P

JSC)

NO

TES

to C

ONSO

LIDA

TED

FINA

NCIA

L ST

ATEM

ENTS

FIN

ANCI

AL Y

EAR

ENDE

D M

ARCH

20,

201

8

13-3

- Lo

ng-t

erm

inve

stm

ent

in o

ther

co

mp

anie

s an

d in

stitu

tion

IRRm


13-4- Investment in other securities

Issuer Type Rate (%) origination 20-Mar-2018 20-Mar-2017

State-owned companies

Ritel 20 percent Sukuk 20 purchased 0 91,696

Telecommunication Company of Iran sukuk 21 purchased 0 5,484

Mapna sukuk 20 purchased 0 5,994

Mahan Airline sukuk 21 purchased 19,559 38,392

Tabriz metro participation bonds 22 purchased 0 127

Mashhad municipity participation bonds 21 purchased 0 84

Islamic Treasury securities Islamic Treasyry securities purchased 0 5,385

Governmental and construction projects participation bonds participation bonds 18 purchased 14,329

Kordestan Cement participation bonds purchased 0 340

Ritel 2 22 percent sukuk 22 purchased 0 2,387

Asia petro omid sukuk 20 purchased 0 3,281

oil industry employee's fund shares participation bonds 21 purchased 0 8,641

Shiraz municipity participation bonds 21 purchased 0 19,567

Sabzevar municipity participation bonds 21 purchased 0 3,433

Tehran municipity participation bonds 21 purchased 0 486

Ritel sukuk 21 purchased 0 6,795

Rayan Saipa leasing co. participation bonds 22 purchased 0 3,564

19,559 209,985

14- ACCOUNTS AND NOTES RECEIVABLE

14-1- The above mentioned amount mainly relates to Gostaresh Energy Group Companies'

receivables from the Power Plants of Khoi, Shariati, Oromieh and other Petroleum Companies.

Group

Note 20-Mar-2018 20-Mar-2017

Receivables from associates 1,168,866 1,830,077

Receivables from others 14-1 24,252,414 13,041,223

Note receivables 427,252 456,041

Reinsurers' share of technical reserves 7,418,010 4,920,452

Receivables from the insured and agencies 2,792,532 1,598,828

Receivables from insurers and reinsurers 43,203 26,577

36,102,277 21,873,197


IRRm

IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

15-1-Due from subsidiaries and associates based on the subject of the transaction:

20-Mar-2018

diposal of Investment and assets

Purchase of assets and

investments

Purchase of

services

on account

receivable

on account payable

Joint Qard-

al-hasan

Dividends receivable

Dividends payable Total

Subsidiaries:

Pasargad Aryan ICT Group 205,531 4,360 0 0 44,229 0 357,700 0 611,820

Bank Pasargad E-Payment Co. 0 0 0 0 0 0 499 0 499

Bank Pasargad Brokerage Co. 0 0 25,731 0 0 0 19,600 0 45,331

Pasargad Arzesh Afarinan Group 184,099 0 0 0 36,035 0 244,988 0 465,122

Pasargad Foreign Exchange Co. 0 3,186 0 0 0 0 72,000 0 75,186

Pasargad Insurance Co. 8,695 0 0 0 0 0 66,339 0 75,034

Pasargad Leasing Co. 0 0 0 0 6,250 0 50,250 0 56,500

Nasim Salamat Pasargad co. 0 0 0 0 500,000 0 2,618 0 502,618

398,325 7,546 25,731 0 586,514 0 813,994 0 1,832,111

Associates:

Mabnaye Khavarmyaneh Co. 0 0 0 0 82 0 0 0 82

Middle East Mines & Mineral Industries Development Holding Co 0 0 0 0 1,256 0 0 0 1,256

Pasargad Management & Human Capital Research and Development Institute 0 0 0 0 13,204 0 0 0 13,204

Pishgaman Amin sarmaye Pasargad 0 0 0 0 107,950 0 0 0 107,950

Tamin maskan pasargad group co. 0 0 0 0 72,303 0 0 0 72,303

Chakad Tavangary Co. 0 0 0 0 12,500 0 0 0 12,500

Atye khaveremyane developing co. 0 0 35,895 0 2,000 0 0 0 37,895

Tosee Tejarat Andishe negar Pasargad 0 0 0 0 6,769 0 0 0 6,769

0 0 35,895 0 216,064 0 0 0 251,958

398,325 7,546 61,626 0 802,578 0 813,994 0 2,084,069

Net transaction profit 0

15- DUES FROM SUBSIDIARIES AND ASSOCIATES

Group Bank

20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017

Net Net Balance Provision for doubtful debts Net Net

dues from subsidiaries 0 0 1,832,111 0 1,832,111 847,084

dues from associates 1,286,751 1,465,223 251,959 0 251,959 137,322

1,286,751 1,465,223 2,084,070 0 2,084,070 984,406


IRRm

IRRm


15-2- dues from subsidiaries and associates based on the subject of the transaction:

(comparing period)

20-Mar-2017

diposal of Investment and assets

Purchase of assets and

investments

Purchase of

services

on account

receivable

on account payable

Joint Qard-

al-hasan

Dividends receivable

Dividends payable Total

Subsidiaries:

MIDHCO Group 0 0 0 0 667 0 6,586 0 7,253

Mabnaye KhavarMiyaneh Co. 0 0 0 0 270 0 0 0 270

Pasargad Aryan ICT Group 0 0 245,976 0 0 0 233,730 0 479,706

Bank Pasargad E-Payment Co. 0 0 19,227 0 0 0 1,575 0 20,802

Bank Pasargad Brokerage Co. 42,772 0 0 0 0 0 19,600 0 62,372

Pasargad Arzesh Afarinan Group 15,550 0 0 0 0 0 2 0 15,552

Pasargad Foreign Exchange Co. 0 0 0 0 5,588 0 54,000 0 59,588

Pasargad Insurance Co. 35,287 0 0 0 0 0 71,442 0 106,729

Pasargad Leasing Co. 0 0 0 0 6,250 0 87,100 0 93,350

Nasim Salamat Pasargad co. 0 0 0 0 0 0 1,462 0 1,462

93,609 0 265,203 0 12,775 0 475,497 0 847,084

Associates:

Iranian Reinsurance Co. 0 0 0 0 0 0 19,900 0 19,900

Pasargad Management & Human Capital Research and Development Institute 0 0 0 0 13,204 0 0 0 13,204

Pishgaman Amin sarmaye pasargad 0 0 0 0 57,950 0 0 0 57,950

Chakad Tavangary Co. 0 0 0 0 12,500 0 0 0 12,500

Tosee Gardeshgary Atye Khavarmyaneh co. 0 0 0 0 27,000 0 0 0 27,000

Tejarat andishe negar Pasargad 0 0 0 0 6,769 0 0 0 6,769

0 0 0 0 117,423 0 19,900 0 137,323

93,609 0 265,203 0 130,198 0 495,397 0 984,406


IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

15-3- Classification of receivables from subsidiaries and associates according to

instruction of Money and Credit Council of CBI

20-Mar-2018

Current debts Overdue debts Bad debts Doubtful debts Total

Receivables from subsidiaries 1,247,307 389,869 194,935 0 1,832,111

Receivables from associates 251,958 0 0 0 251,958

Net receivables from subsidiaries and associates before provision of doubtful debts 1,499,265 389,869 194,935 0 2,084,069

General provision of doubtful debts (0) 0 0 0 0

Special provision of doubtful debts 0 (0) (0) (0) 0

Balance at 20-Mar-2018 1,499,265 389,869 194,935 0 2,084,069

Balance at 20-Mar-2017 357,252 395,401 231,753 0 984,406

16- OTHER ACCOUNTS RECEIVABLE

Group Bank

Note 20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017

Balance receivable

provision of doubtful

debtsNet Net Balance

receivable

provision of

doubtful debts

Net Net

Participation bonds' realized profit 0 0 0 1,600 0 0 0 1,600

Temporary accounts receivable 16-1 1,750,872 0 1,750,872 773,279 1,750,872 0 1,750,872 773,279

Dividends receivable 16-2 354,977 0 354,977 462,560 322,450 0 322,450 432,623

Other notes receivable 847,098 0 847,098 458,468 648,976 0 648,976 425,469

Other 16-3 9,397,388 0 9,397,388 6,630,774 607,593 0 607,593 472,977

12,350,335 0 12,350,335 8,326,681 3,329,891 0 3,329,891 2,105,948


IRRm

IRRm


16-1- Bank's temporary accounts receivable

16-2- dividends receivable

20-Mar-2018 20-Mar-2017

Items related to credit facilities:

litigation and bad debts recovery cost 214,334 283,086

214,334 283,086

Items non-related to credit facilities:

Temporary Accounts Receivable - foreign currency 1,007,945 125,719

Internal debtors - other 215,326 224,724

Internal debtors - petty cash 0 252

Internal debtors - individuals 313,267 139,498

1,750,872 773,279

20-Mar-2018 20-Mar-2017

Listed companies:Mines and Metal Development Investment Co. 75,298 272,398MAPNA Group 227,646 138,810Shiraz Petrochemical Co. 9,499 9,500Gol Gohar Mining and Industrial Co. 207 3,289rena investment Co. 43 0Persian Gulf Petrochemical Industries Co. 1,814 1,814Kharazmi Investment Co. 1,690 1,690Ghadir Investment Company 0 1,524Esfahan Petrochemical Company 1,199 1,199Iran Combine Manufacturing Co. 969 969Chemidarou Co. 366 366Pention Fund Investment Co. 506 365Pars Khodro Co. 142 142Bank Day 0 120Pardis Petrochemical Co 240 0Rail Pardaz Seir Co. 324 324Fars & Khuzestan Cement Co. 69 69Khozestan Steel Co 22 22Lia Special Materials INC. 20 20Exir Pharmaceutical Co. 2 2asan pardakht Co. 500 0Iran Alloy Steel Co. 77 0 Mobarakeh Steel Co. 468 0Bandar Abbas Oil Refining Co. 1,215 0SAIPA Corp 53 0Niroo Mohareke Co. 6 0Esfahan Oil Refining Co. 75 0

322,450 432,623


IRRm

IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

20-Mar-2018

Current debts Overdue debts Bad debts Doubtful debts Total

Dividends receivable 274,083 45,762 2,605 0 322,450

Participation bonds realized profit 0 0 0 0 0

dues from employee 0 0 0 0 0

Temporary accounts receivable 962,980 560,279 227,613 0 1,750,872

Other notes receivable 648,976 0 0 0 648,976

Other 607,593 0 0 607,593

"Net other accounts receivable before doubtful debts provisions " 2,493,632 606,041 230,218 0 3,329,891

General provision of doubtful debts 0 0 0 0 0

specific provision of doubtful debts 0 0 0 0 0

Balance at 20-Mar-2018 2,493,632 606,041 230,218 0 3,329,891

Balance at 20-Mar-2017 1,349,094 199,351 259,424 298,079 2,105,948

16-3- Classification of OTHER ACCOUNTS RECEIVABLE

"17-1- The above mentioned amount mainly relates to prepayments made by Pasargad Energy Development

Co. to oil projects' contractors.

18-1- inventories have sufficient insurance coverage against possible dangers

17- PREPAYMENTS AND ORDERS

18-INVENTORIES

Group

Note 20-Mar-2018 20-Mar-2017

Orders from foreign countries 14,189 31,308

Prepayment for purchase of goods and services 928,695 1,012,258

Prepaid expenses 49,562 74,088

Other 17-1 115,427 121,345

1,107,873 1,238,999

Group

Note 20-Mar-2018 20-Mar-2017

Properties and building projects 3,301,719 3,637,440

Goods and components 18-1 1,688,512 1,003,802

Cards 13,292 15,314

Our goods on consignment 116,329 55,263

Other 183,930 1,026,077

5,303,782 5,737,896


IRRm

IRRm

IRRm


19-

FIX

ED

AS

SE

TS

19-1

- G

roup

's fi

xed

ass

ets

Land

Build

ing

Inst

alla

tions

Com

pute

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and

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and

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n Lo

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erm

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epay

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tal

Cost

of g

oods

:

Bala

nce

at 2

0-M

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7,8

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6,9

87,4

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164

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L ST

ATEM

ENTS

FIN

ANCI

AL Y

EAR

ENDE

D M

ARCH

20,

201

8

19-1

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IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

Land

Build

ing

Com

pute

r eq

uipm

ents

Vehi

cles

Furn

iture

and

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IRRm


19-2-2- land and building increase during the financial year

19-2-3- The title deeds ownership of 48 properties reported in tangible fixed assets have not been transferred to

bank yet. The legal process is in progress.

19-2-4- The most reduction in tangible fixed assets is arising from computer equipments transfer.

19-2-5- Assets under construction

The progress of Bank Pasargad headquarter building project has been about 74% and Project initial estimate

was IRR2,654 bn.

The project's construction expenses has been estimated IRR 675 bn and the exploiting date has been estimated

at 20 Mar 2019

19-2-6- Capitalized prepayments


Land Building Goodwill Split Total

Price consideration of Middle East Mabna Co. 518,760 634,040 1,726,200 3,000 2,882,000

Other branches 1,515,998 406,025 451,155 1,050 2,374,228

2,034,758 1,040,065 2,177,355 4,050 5,256,228

Balance at the beginning Additions Adjustments Transfers Balance at

the end

Head office building 1,526,456 452,666 0 (1,002,516) 976,606

Other 0 449,591 0 0 449,591

1,526,456 902,257 0 (1,002,516) 1,426,197

Balance at the beginning Additions Adjustments Transfers Balance at

the end

Birjand building projects 38,330 1,549 0 0 39,879

Shahid beheshti street branch 0 81,000 0 0 81,000

other 2,740,172 0 0 (2,740,172) 0

2,778,502 82,549 0 (2,740,172) 120,880

IRRm

IRRm

IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

19-2-7- Net balance of tangible and intangible fixed asstet to equity ratio

"Due to some operational problems in the previous circulars and the impossibility of complying banks with these cir-

culars which set the ratio of net assets to equity at 30%, the Central Bank of Islamic Republic of Iran ,according to the

circular no.94/62147 dated at 2015/06/01 set the ratio at 75%, On condition of the transfer of fixed assets surplus."

20-Mar-2018 20-Mar-2017

tangible fixed assets 12,554,980 9,390,026Less:Balance of tangible fixed assets revaluation reserve 0 0Provision for depreciation of tangible fixed assets (2,015,689) (1,674,896)Net tangible fixed assets 10,539,291 7,715,130Intangible fixed asstes 8,669,925 6,246,723Less:Balance of intangible fixed assets revaluation reserve 0 0Provision for depreciation of intangible fixed assets 0 0Net intangible fixed assets 8,669,925 6,246,723Capitalized prepayments 120,880 2,778,502Under construction and purchase Intangible properties 1,426,197 1,526,456Capital items in warehouse (Inventory of capital goods) 0 0Net fixed assets of foreign branches 0 0Confiscated collateral more than 2 years 2,026,293 1,609,439Capitalized rent items 0 0Purchased assets from Hire-purchase credit facilities 0 0Deposits paid for operational rent of tangible fixed asset 17,410 14,600sum of the numerator of ratio 22,799,996 19,890,850Equity 61,827,118 59,494,290Less:Balance of intangible and tangible fixed assets revaluation reserveUnrealized profit (0) (0)Retained Earning (0) (0)sum of denominator of ratio 61,827,118 59,494,290Net fixed assets ratio (%) 37 33


IRRm


20-Mar-2018 20-Mar-2017

Goodwill 8,108,999 5,915,865

Softwares 2,032,402 767,096

Patents 1,471,648 1,060,622

11,613,049 7,743,582

Business Goodwill

Computer Software

Software Development Patents Total

Cost:

Balance at 20-Mar-2016 4,901,226 372,846 0 38,542 5,312,614

Additions 926,247 253,788 0 6,208 1,186,243

Disposals (1,938) 0 0 0 (1,938)

Transfers and adjustments (0) 0 0 0 (0)

Balance at 20-Mar-2017 5,825,535 626,634 0 44,750 6,496,919

Balance at 21-Mar-2017 5,825,535 626,634 0 44,750 6,496,919

Additions 2,177,355 448,525 0 4,050 2,629,930

Disposals (0) 0 0 0 (0)

Transfers and adjustments (665) 0 0 0 (665)

Balance at 20-Mar-2018 8,002,225 1,075,159 0 48,800 9,126,184

Accumulated depreciation and Accumulated impairment:

Balance at 20-Mar-2016 0 126,024 0 0 126,024

Depreciation 0 124,171 0 0 124,171

Balance at 20-Mar-2017 0 250,195 0 0 250,195

Balance at 21-Mar-2017 0 250,195 0 0 250,195

Depreciation 0 206,063 0 0 206,063

Balance at 20-Mar-2018 0 456,258 0 0 456,258

Book value:

At 20-Mar-2016 4,901,226 246,822 0 38,542 5,186,590

At 20-Mar-2017 5,825,535 376,438 0 44,750 6,246,723

At 20-Mar-2018 8,002,225 618,901 0 48,800 8,669,925

20-1- Group's intangible assets

20- INTANGIBLE ASSETS

20-2- Bank's intangible assets


IRRm

IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

21- LEGAL DEPOSIT

21-1- Legal deposit at the central bank, calculated in accordance with paragraph 3 of article 14 of Monetary & Banking Law and based on rates set by the Money and Credit Council and central bank has confirmed it. Now legal deposit rate for Qard-al-hasan deposits and all deposits of free-trade zone branches is10% and for other deosits of mainland is 12%

22- OTHER ASSETS

20-Mar-2018 20-Mar-2017

legal deposit - mainland-IRR 64,182,153 53,198,760

legal deposit - mainland-foreign durrency 0 0

legal deposit - free-trade zone branches-IRR 133,072 99,107

legal deposit - free-trade zone branches-foreign currency 0 0legal deposit at other countries's central Bank-foreign currency 0 0

64,315,225 53,297,867

20-Mar-2018 20-Mar-2017

Customer's liabilities for term L/C-IRR 405,558 36,103

Customer's liabilities for term L/C-foreign currency 43,202,007 25,868,044

43,607,565 25,904,147less

Advances and middle recieves for term L/C-IRR (75,783) (8,661)

advances and middle recieves for term L/C-foreign currency (296,566) (84,945)

provision of doubtful debts 0 0

43,235,215 25,810,542

Group Bank


"Customer's Net liabilities for term L/C" 22-1 43,235,215 25,810,542 43,235,215 25,810,542

Non-operational real estate 0 0Confiscated collateral assets 22-2 13,536,249 8,726,007 13,536,249 8,726,007 Security deposit 17,860 14,600 17,410 14,600 Assets' insurance prepaid 0 0Prepaid rent 0 14,901 8,419 14,901 Supplies inventory 0 0 0 0Items in transit 0 0 0 0Gold medals' inventory 2,575 3,002 2,575 3,002 Stamp duty 9,134 8,673 9,134 8,673 Other prepaid 589,163 371,553 580,745 418,937 Long-term notes receivable 0 0 0 0Long-term portion of employees loans 20,334 4,946 0 0Customer's long-term liabilities 2,520 1,571 0 0Non-current assets held for sale 275,715 62,856 0 0Other (mostly receivables for employees' prefrence shares)

912,287 1,060,197 617,203 861,778

58,601,051 36,078,848 58,006,948 35,858,440

22-1- Customer's Net liabilities for term L/C


IRRm

IRRm

IRRm


22-2- Confiscated collateral assets

22-2-1- Age decomposition for intangible Confiscated collateral balance

22-2-2- Gain and loss from sale of confiscated collateral was declared in note 48

23- GOODWILL ARISING ON CONSOLIDATION

23-1- The goodwill reduction is mainly related to ownership transfer of Mabna Khavar Miyaneh Co.,

which had been identified in previous financial year regarding Middle East Mines & Mineral Industries

Development Holding CO's share.

20-Mar-2018 20-Mar-2017

less than one year from confiscated date 10,292,482 5,719,347

one to two years from confiscated date 1,217,474 1,397,221

more than tow years from confiscated date 2,026,293 1,609,439

13,536,249 8,726,007

Group

Note 20-Mar-2018 20-Mar-2017

Balance at the beginning of the year 3,036,517 12,020,448

Goodwill acquired during the year 1,358,657 2,321,312

Goodwill adjustments 23-1 (580,766) (11,325,243)

Balance at the end of the year 3,814,408 3,016,517

Accumulated amortization at the beginning of the year (170,487) (625,945)

Amortization for the year (121,181) (148,243)

Amortization adjustments 58,600 603,701

Accumulated amortization at the end of the year (233,068) (170,487)

3,581,340 2,846,031

20-Mar-2017 Confiscated Disposals 20-Mar-2018

Tangible:

Furniture 894 0 0 894

Goods 0 0 0 0

vehicle 0 250 0 250

Shares 1,981,315 159,130 0 2,140,445

1,982,209 159,380 0 2,141,589

Intangible:

Residential 5,544,028 3,888,810 (798,786) 8,634,052

commercial/administrative 512,263 770,602 (12,952) 1,269,913

factory 9,951 97,309 (9,951) 97,309

Land 677,556 797,509 (81,679) 1,393,386 6,743,798 5,554,230 (903,368) 11,394,660

8,726,007 5,713,610 (903,368) 13,536,249


IRRm

IRRm

IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

24- DUES TO BANKS AND OTHER FINANCIAL INSTITUTIONS

Note 20-Mar-2018 20-Mar-2017

Central bank:

Deposit-IRR 0 0

Demand deposit -foreign currency 0 0

Term deposits - foreign currency 30,516,779 19,289,044

Overdraft from current account 685,705 1,452,082

settlement of shetab transaction 1,351,874 850,175

penalty of overdraft 0 1,961,990

overdraft balance 0 383,388

Debts for purchase of foreign currency 1,362,984 0

Underpaid/(overpaid) for purchase of foreign currency 0 0

Debt's for Foreign Exchange Reserve Account (FRA) 0 0

Credit facilities received-IRR 0 0

Credit facilities received-foreign currency 0 0

Other

33,917,342 23,936,679

Local Banks and credit institutes:

Demand deposits - IRR 29,177 328

Demand deposits - foreign currency 822,486 938,027

Payments for clearing bank's checks 0 0

Term Deposit-IRR 11,927 68,977

Interbank credit facilities received-IRR 24-1 0 11,510,000

Credit facilities received-foreign currency 0 0

Other 0 0

863,590 12,517,332

Foreign banks:

Demand deposits - IRR 0 0

Demand deposits - foreign currency 3,782,451 1,761,788

credit facilities received-foreign currency 0 0

Overdraft from current account 0 0

Other 0 0

3,782,451 1,761,788

38,563,382 38,215,799


24-1- Credit facilities received includes 2 interbank credit facilities with profit rate18%

IRRm


25- CUSTOMERS DEPOSIT


25-1- Demand and similar deposits of Individuals and legal entities

Group Bank


Individuals:

Demand deposits and similar 25-1 3,375,059 2,459,590 3,375,059 2,459,590

Savings deposits and similar 25-2 3,694,587 1,253,646 3,694,587 1,253,646

Other deposits and advances received 25-3 2,495,736 0 2,495,736 1,217,442

9,565,382 3,713,236 9,565,382 4,930,678

Legal entities:


Savings deposits and similar 25-2 4,962,398 3,350,483 4,962,398 3,350,483

Other deposits and advances received 25-3 3,173,043 0 3,173,043 2,410,727

12,434,789 7,352,791 12,454,253 9,763,518

Other:


Savings deposits and similar 25-2 67,402 63,624 67,402 63,624

Other deposits and advances received 25-3 4,687,343 5,492,707 4,806,573 1,947,340

14,806,519 11,432,155 14,925,749 7,886,788

36,806,689 22,498,182 36,945,383 22,580,984

20-Mar-2018 20-Mar-2017

Current account - IRR 7,924,096 6,514,341

Current account - foreign currency 42,493 2,520

checks issued 2,163,413 1,010,568

Bank's drafts - IRR 5,462 5,462

Bank's drafts - foreign currency 0 4,443

Unused managed funds 585 626

Temporary creditors - IRR 4,324,373 3,747,084

Temporary creditors - foreign currency 3,285,222 1,052,677

17,745,644 12,337,721

IRRm

IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

Group Bank


Dividends payable to shareholders 26-1 1,955,347 1,351,150 165,040 1,024,921

1,955,347 1,351,150 165,040 1,024,921

20-Mar-2018 20-Mar-2017

Qard-al-hasan savings deposits - IRR 896,005 694,682

Qard-al-hasan savings deposits - foreign currency 7,789,910 3,946,191

Special Qard-al-hasan deposits 22,566 19,160

Unused special Qard-al-hasan deposits 15,906 7,721

8,724,387 4,667,754

20-Mar-2018 20-Mar-2017

Cash deposits for L/Gs - IRR 4,023,586 3,413,138

Cash deposits for L/Gs - foreign currency 539,305 285,126

Advances received on L/Cs - IRR 195,618 94,997

Advances received on L/Cs - foreign currency 5,716,844 1,782,248

10,475,352 5,575,509

25-2- Savings and similar deposits of Individuals and legal entities

25-3- Other deposits and advances received of Individuals and legal entities

26- DIVIDENDS PAYABLE


IRRm

IRRm

IRRm


26-1- Dividends payable - main company

27- Income Tax Provision

DPS approved dividends

Balance at 20-Mar-2017

Dividends paid during

the year

Capital increase from

claims

Balance at 20-Mar-2018

For the financial year ended 20-Mar-2006 35 122,500 2,919 1,303 0 1,616

For the financial year ended 20-Mar-2007 175 612,500 5,022 3,224 0 1,798

For the financial year ended 19-Mar-2008 200 1,050,000 1,408 1,034 0 374

For the financial year ended 20-Mar-2009 220 1,540,000 15,220 10,988 0 4,232

For the financial year ended 20-Mar-2010 300 3,325,000 0 0 0 0


For the financial year ended 19-Mar-2012 230 6,269,340 14,057 459 0 13,598





Total 50,641,340 1,024,921 859,878 0 165,040

Group Bank

20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017

Balance at the beginning of the year 1,529,350 3,578,141 504,715 2,578,348

Income tax for the financial year 197,097 129,921 0 0

Adjustment of prior periods' income tax provision 25,732 22,835 0 0

Paid during the year (191,718) (2,172,597) (0) (2,071,710)

Total 1,560,461 1,558,300 504,715 506,638

Tax Prepayments (129,438) (28,950) (87,974) (1,923)

1,431,024 1,529,350 416,741 504,715


IRRm

IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

20-M

ar-2

018

20-M

ar-2

017

Fina

ncia

l ye

ar

Self-

asse

ssed

pr

ofit

Self-

asse

ssed

ta

xabl

e in

com

e

Self-

asse

ssed

ta

xTa

x

asse

ssm

ent n

otice

Fina

l ta

x no

tice

Tax

pa

idBa

lanc

eBa

lanc

eM

etho

d of

ass

essm

ent

2014

/15

13,9

52,4

826,

548,

932

1,30

9,78

62,

883,

967

2,87

9,42

02,

879,

420

00

Exam

inati

on o

f boo

ks- F

inal

tax

notic

e iss

ued

2015

/16

12,1

36,1

922,

511,

310

502,

262

2,60

7,66

00

502,

262

504,

715

506,

638

Exam

inati

on o

f boo

ks- A

sses

smen

t no

tice

2016

/17

(6,4

98,2

10)

00

3,90

0,18

80

80,1

860

0Ex

amin

ation

of b

ooks

- Ass

essm

ent

notic

e

2017

/18

2,34

0,62

40

00

00

0U

nder

exa

min

ation

504,

715

506,

638

Tax

prep

aym

ents

(87,

974)

(1,9

23)

416,

741

504,

715

27-1

- In

com

e ta

x is

fina

lized

and

set

tled

by th

e en

d of

fina

ncia

l yea

r 20

14/1

5, h

owev

er, t

he p

roce

edin

g w

as c

halle

nged

by

the

ban

k

and

case

s fo

r ye

ars

2009

/201

0 to

201

4/20

15 a

re b

eing

inve

stig

ated

in th

e su

perm

e ta

x co

unci

l or

the

adm

inis

trat

ive

just

ice

trib

unal

.

27-2

- Th

e su

mm

ary

of ta

x pa

yabl

e fo

r th

e ye

ars

2014

/15

to 2

017/

18 is

as

follo

w:

27-2

-1-

Tax

for

the

finan

cial

yea

r 20

14/1

5: in

acc

orda

nce

with

the

nego

tiatio

ns w

ith c

hairm

an o

f Ira

nian

Nat

iona

l tax

ad

mis

sion

org

ani-

zatio

n an

d co

llect

ing

part

of f

orgi

vene

ss o

f pen

altie

s, th

e re

st o

f the

pen

altie

s w

as p

aid,

but

the

bank

has

ob

ject

ed to

the

high

tax

coun

-

cil a

nd b

ased

on

the

coun

cil's

vot

e, th

e ca

se is

reffe

red

to th

e di

sput

e re

solu

tion

boar

d an

d is

und

er re

view

.

27-2

-2-

Tax

for

the

finan

cial

yea

r 20

15/1

6: in

acc

orda

nce

with

the

asse

ssm

ent n

otic

e N

o. 3

0465

822

date

d 9

Jan

. 201

7 w

as im

par

ted

to

the

bank

on

Janu

ary

14,2

017.

Ban

k P

asar

gad

prot

este

d ag

ains

t bas

is o

f tax

able

inco

me

asse

ssm

ent a

nd n

ot ta

king

tax

exem

ptio

ns to

tax

disp

ute

reso

lutio

n bo

ards

and

the

file

is b

eing

inve

stig

ated

in th

e pr

imar

y ta

x di

sput

e re

solu

tion

boar

d.

27-2

-3-

Tax

for

the

finan

cial

yea

r 20

16/1

7: in

acc

orda

nce

with

the

asse

ssm

ent n

otic

e N

o.43

2018

12 d

ated

15

Jan.

201

8 w

as im

par

ted

to

the

bank

on

Janu

ary

17, 2

018

.Ban

k P

asar

gad

prot

este

d ag

ains

t bas

is o

f tax

able

inco

me

asse

ssm

ent a

nd n

ot ta

king

tax

exem

ptio

ns to

tax

disp

ute

reso

lutio

n bo

ards

and

the

file

is b

eing

inve

stig

ated

in th

e pr

imar

y ta

x di

sput

e re

solu

tion

boar

d. A

lso,

due

to fa

ilure

to s

ubm

it

audi

ted

finan

cial

sta

tem

ents

,IRR

779

bn

have

bee

n cl

aim

ed a

s fin

es.

27-2

-4-

In th

e fis

cal y

ear

2017

/18,

the

bank

has

no

self-

asse

ssed

tax

acco

rdin

g to

tax

exem

ptio

ns.

BANK

PAS

ARGA

D (P

JSC)

NO

TES

to C

ONSO

LIDA

TED

FINA

NCIA

L ST

ATEM

ENTS

FIN

ANCI

AL Y

EAR

ENDE

D M

ARCH

20,

201

8 IRRm


28- ACCOUNTS AND NOTES PAYABLE

Group

Note 20-Mar-2018 20-Mar-2017

Accounts payable 2,981,412 3,212,777

Notes payable 28-1 2,711,986 141,092

5,693,398 3,353,870

28-1- The balance of accounts payable is mainly about the insured's loss and is related to Pasargad Insur-

ance Co. and also part of it, is about Pasargad Energy Development Company for fuel purchase.

29- PROVISIONS AND OTHER LIABILITIES

Group Bank


Facilities received from National Development Fund of Iran 29-1 47,997,334 14,282,103 47,997,334 14,282,103

Bank's liabilities for Term L/C - IRR 405,558 36,103 405,558 36,103

Bank's liabilities for Term L/C - Foreign Currency 43,202,007 25,868,044 43,202,007 25,868,044

Insurance premiums payable 213,539 111,091 12,571 11,858

Provision for expenses payable 29-3 11,148,252 7,531,942 0 0

Received from customers for foreign currency issues 2,252,912 5,041,888 2,252,912 5,041,888

Share of exchange companies' profit on foreign currency 228,378 228,630 228,378 228,630

Foreign currency credit card balance 2,808 2,068 2,808 2,068

Internal creditors - financial & treasury management department 869,275 510,703 869,275 510,703

Ministry of Economic Affairs & Finance 799,454 694,947 0 0

Withholding performance 3,015,865 1,549,283 0 0

Other creditors 29-2 8,673,844 6,488,578 8,663,797 6,262,340

Notes payable 1,379,401 1,201,471 0 0

Other accounts payable 3,355,323 1,511,386 0 0

Insurance premiums' provision 21,052,788 13,233,569 0 0

Deferred compensation provision 2,362,279 1,669,519 0 0

Other technical reserves 1,408,798 1,158,210 0 0

Insurance premiums for future years 112,180 88,686 0 0

Value added tax 0 17,220 0 0

Items in transit 0 1,855 0 1,855

148,479,994 81,227,296 103,634,640 52,245,593


IRRm

IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

29-1- Facilities received from National Development Fund of Iran:

Group

20-Mar-2018 20-Mar-2017

Advances received from other companies 1,149,215 389,059

1,149,215 389,059

Amount Currency Receipt date Due date The number of installments

Profit rate (%)

Balance Balance

Foreign Currency Credit Facilities:

Sirjan Iranian Steel Co. 116,331,252.67 "USD Transaction rate" 23-Nov-2016 16-Feb-2023 10 6 116,331,252.67 15,298,553

Bootiya Iranian Steel Co. 120,941,297.09 "USD Transaction rate" 26-Nov-2016 15-Feb-2023 9 6 120,941,297.09 15,904,812

Iranian Babak Copper Co. 69,798,588.03 "USD Transaction rate" 27-Nov-2016 26-Feb-2023 10 6 69,798,588.03 9,179,111

Middle East Mines & Mineral Renovation & Development Co. 5,991,072.11 "USD

Transaction rate" 23-Nov-2016 25-Jan-2023 10 6 5,991,072.11 787,879

Naftanir Industrial Co. 572,430.82 "USD Transaction rate" 23-Nov-2016 25-Oct-2020 3 8 572,430.82 92,373

Naftanir Industrial Co. 640,968,053.53 "EUR Transaction rate" 12-Jun-2016 23-Nov-

2024 10 8 640,968,053.53 33,303

Para Behin Palayesh Naft e Gheshm 29,007,849.47 "USD

Transaction rate" 16-May-2017 20-Dec-2024 10 6 29,007,849.47 3,814,780

Pasargad Energy Development Co. 21,949,337.52 "USD

Transaction rate" 8-Agu-2017 7-Sep-2023 10 8 21,949,336.52 2,886,523

47,997,334

29-2- The major of mentioned amount is concern to issued checks in hands, currency drafts, income tax and

debt to some contractors, as well as the return of the profits from sale of MIDHCO to the companies of the Dana

gostar e caspian & Andisheh tejarat e soroosh e sahand under the letter of 96/34448 dated 1 May 2017 of the

Central Bank of the Islamic Republic of Iran and counting in this chapter.

29-3- The mentioned amount is concern to Pasargad Energy Development Company and mainly based on the

estimated cost of contruction and delivery of the project to the Iranian Gas Engineering & Development Co.

30- ADVANCES RECEIVED


IRRm

IRRm


Group

20-Mar-2018 20-Mar-2017

Credit facilities received 1,684,790 1,078,984

Future profit and commissions (63,138) (2,840)

1,621,652 1,076,144

31-CREDIT FACILITIES RECEIVED

Group Bank

20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017

Balance at the beginning of the year 1,244,450 906,244 791,362 564,463

Paid during the year (95,230) (40,311) (71,074) (25,126)

Provision during the year 439,894 378,517 261,010 252,026

Balance at the end of the year 1,589,115 1,244,450 981,299 791,362

32- PROVISION FOR EMPLOYEES RETIREMENT BENEFITS

33- TERM DEPOSITS

Group Bank

Notes 20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017

TERM DEPOSITS

Long-term deposits 33-1 440,337,639 260,051,012 450,208,626 265,145,573

Short-term deposits 33-1 144,835,920 120,054,318 147,340,690 122,296,251

Special short-term deposits 33-1 4,677,178 77,314,670 4,677,178 77,314,670

Deposits from banks 0 0 0 0

589,850,737 457,420,000 602,226,494 464,756,494

PROFIT OF TERM DEPOSITS PAYABALE

Long-term deposits 33-2 5,418,585 7,644,062 5,418,585 7,644,062

Short-term deposits 33-2 494,868 608,327 494,868 608,327

Special short-term deposits 33-2 1,504,135 2,032,803 1,504,135 2,032,803

Deposits from Banks and Financial institutions 0 0 0 0

7,417,588 10,285,192 7,417,588 10,285,192

597,268,325 467,705,192 609,644,082 475,041,686


IRRm

IRRm

IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

Gro

upBa

nk

20-M

ar-2

018

20-M

ar-2

017

20-M

ar-2

018

20-M

ar-2

017

IRR

"For

eign

cu

rren

cy"

Tota

lTo

tal

IRR

"For

eign

c

urre

ncy"

Tota

lIR

R"F

orei

gn

cur

renc

y"To

tal

Shor

t-ter

m d

epos

its 1

44,8

35,9

20

0 1

44,8

35,9

20

120

,054

,318

1

47,3

40,6

90

0 1

47,3

40,6

90

122

,296

,251

0

122

,296

,251

Spec

ial s

hort-

term

de

posit

s:

One

-mon

th d

epos

its0

00

00

00

00

0

Thre

e-m

onth

dep

osits

12,

559

1,2

15,9

99

1,2

28,5

58

25,

919,

016

12,

559

1,2

15,9

99

1,2

28,5

58

25,

374,

191

544

,824

2

5,91

9,01

5

Six-

mon

th d

epos

its 1

,334

,215

8

87,0

12

2,2

21,2

27

51,

176,

142

1,3

34,2

15

887

,012

2

,221

,227

5

0,57

8,28

8 5

97,8

53

51,

176,

141

Nin

e-m

onth

dep

osits

1,1

68,7

66

58,

626

1,2

27,3

92

219

,513

1

,168

,766

5

8,62

6 1

,227

,392

1

94,4

55

25,

057

219

,512

Long

-ter

m d

epos

its:

Certi

ficat

es o

f dep

osit

202

,201

,493

0

202

,201

,493

2

5,10

0 2

02,6

15,3

62

0 2

02,6

15,3

62

25,

100

0 2

5,10

0

One

-yea

r dep

osits

122

,923

,106

1

6,43

0,96

7 1

39,3

54,0

73

161

,920

,643

1

29,6

63,1

06

17,

471,

986

147

,135

,092

1

50,0

41,3

46

11,

879,

298

161

,920

,644

Two-

year

dep

osits

1,4

82,8

50

0 1

,482

,850

3

,764

,214

1

,482

,850

0

1,4

82,8

50

3,7

64,2

14

0 3

,764

,214

Thre

e-ye

ar d

epos

its 7

1,10

2 4

7,72

6,00

0 4

7,79

7,10

2 3

2,55

8,82

9 7

1,10

2 4

7,72

6,00

0 4

7,79

7,10

2 1

38,8

29

32,

420,

000

32,

558,

829

Four

-yea

r dep

osits

11,

786

0 1

1,78

6 3

8,88

9 1

1,78

6 0

11,

786

38,

889

0 3

8,88

9

Five

-yea

r dep

osits

49,

490,

335

1

49,

490,

336

61,

743,

337

51,

166,

435

0 5

1,16

6,43

5 6

6,83

7,89

9 0

66,

837,

899

523,

532,

132

66,3

18,6

0558

9,85

0,73

745

7,42

0,00

053

4,86

6,87

167

,359

,623

602,

226,

494

419,

289,

462

45,4

67,0

3246

4,75

6,49

4

33-1

- Te

rm d

epo

sits

(div

ided

by

IRR

& fo

reig

n cu

rren

cy)

BANK

PAS

ARGA

D (P

JSC)

NO

TES

to C

ONSO

LIDA

TED

FINA

NCIA

L ST

ATEM

ENTS

FIN

ANCI

AL Y

EAR

ENDE

D M

ARCH

20,

201

8

* Th

e hi

gh g

row

th ra

te o

f sho

rt te

rm d

epos

its is

due

to th

e ba

n on

mor

e th

an o

ne y

ear t

erm

dep

osits

acc

ordi

ng t

o ci

rcul

ar 9

3/96

593

date

d

2 Ju

ly 2

014.

The

bal

ance

on

mor

e th

an o

ne y

ear t

erm

dep

osits

are

rela

ted

to p

eriv

ious

yea

rs.

IRRm


BANK

PAS

ARGA

D (P

JSC)

NO

TES

to C

ONSO

LIDA

TED

FINA

NCIA

L ST

ATEM

ENTS

FIN

ANCI

AL Y

EAR

ENDE

D M

ARCH

20,

201

8

20-M

ar-2

018

20-M

ar-2

017

Fina

ncia

l yea

rM

ore

than

22%

19%

-22%

16%

-19%

13%

-16%

10%

-13%

Less

than

10%

Tota

lTo

tal

EXPI

RED

00

00

00

00

2017

/18

2,28

7,56

437

,725

,635

113,

684,

633

190,

788,

563

13,5

63,8

6514

8,73

2,91

250

6,78

3,17

241

5,23

2,80

0

2018

/19

2,01

7,69

55,

398,

680

3,81

6,46

137

,681

,971

1,18

0,23

11,

026,

451

51,1

21,4

8911

,002

,437

2019

/20

00

09,

574

520,

136

42,1

04,6

2642

,634

,336

33,6

32,8

80

2020

/21

00

00

250,

863

635,

501

886,

364

2,40

8,75

7

2021

/22

& a

fter t

hat

00

00

227,

902

573,

231

801,

133

2,47

9,62

0

4,30

5,25

943

,124

,315

117,

501,

094

228,

480,

108

15,7

42,9

9719

3,07

2,72

160

2,22

6,49

446

4,75

6,49

4

2016

/17

3,32

2,49

961

,220

,501

176,

171,

488

63,0

19,1

4811

,791

,250

149,

231,

608

464,

756,

494

33-1

-1-

Long

-ter

m d

epo

sits

(div

ided

by

mat

urity

dat

e &

exp

ecte

d p

rofi

t ra

te)

IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

33-1-2- Investment deposits movements - IRR

33-1-3- Investment deposits movements (foreign currency)

"Balance at 20-Mar-2017"

Received during the year

Withdrawal during the year


Long-term deposits:

Certificates of deposit 25,100 221,294,906 (18,704,644) 202,615,362

One-year deposits 150,041,346 297,665,889 (318,044,129) 129,663,106

Two-year deposits 3,764,214 0 (2,281,364) 1,482,850

Three-year deposits 138,829 0 (67,727) 71,102

Four-year deposits 38,889 0 (27,103) 11,786

Five-year deposits 66,837,898 0 (15,671,464) 51,166,434

Short-term deposits 122,296,251 4,264,122,450 (4,239,078,011) 147,340,690

Special short-term deposits 76,146,935 235,254,471 (308,885,865) 2,515,541

419,289,462 5,018,337,716 (4,902,760,307) 534,866,871


Received during the year

Withdrawal during the year




Equivalent-IRR Equivalent-IRR

Long-term deposits

USD 1,195,206,804 45,685,484 (175,954,362) 1,064,937,926 50,825,227 38,748,603

EUR 158,074,134 114,780,440 (26,814,752) 246,039,822 14,314,351 5,509,042

AED 3,419,390 54,300 (528,700) 2,944,990 38,588 30,183

GBP 253,505 103,083 (84,407) 272,181 18,547 10,189

CHF 39,400 0 (15,000) 24,400 1,272 1,280

Short-term & Special short term deposits

USD 2,279,105 4,296,581 (3,921,193) 2,654,493 126,688 73,889

EUR 31,280,947 13,404,207 (9,769,915) 34,915,239 2,031,334 1,090,172

AED 0 0 (0) 0 0 0

GBP 91,420 7,950 (46,320) 53,050 3,616 3,674

CHF 0 0 0 0 0 0

Deposits from banks and financial institutions

USD 0 0 0 0 0

EUR 0 0 0 0 0

AED 0 0 0 0 0

GBP 0 0 0 0 0

CHF 0 0 0 0 0

67,359,623 45,467,032


IRRm

IRRm



33-1-4- The composition of depositors of investment deposits

20-Mar-2018 20-Mar-2017

Number of Depositors Amount/IRRm Number of

Depositors Amount/IRRm

Deposits-IRR

legal entities 51,410 101,595,278 56,857 78,378,769

Individuals 5,409,780 433,271,593 5,209,809 340,910,693

Deposits from Banks and financial institutions 0 0 0 0

5,461,190 534,866,871 5,266,666 419,289,462

Deposits-foreign currency

legal entities 181 64,404,458 182 44,412,366

Individuals 4,171 2,955,165 2,787 1,054,666

Deposits from Banks and financial institutions 0 0 0 0

4,352 67,359,623 2,969 45,467,032

5,465,542 602,226,494 5,269,635 464,756,494

33-2- PROFIT of TERM INVESTMENT DEPOSITS PAYABALE


"on account payment

during the year"

Difference between on account & final

profitPaid during the year "Balance at

20-Mar-2018"

Short-term deposits 608,327 14,912,620 0 15,026,079 494,868

Special short-term deposits 680,118 26,880,275 0 27,539,294 21,099

General Certificates of deposit 0 3,090,737 0 3,090,737 0

Special Certificates of deposit 0 0 0 0 0

One-year deposits 1,278,057 23,071,756 0 23,506,329 843,484

Two-year deposits 46,652 385,275 0 415,607 16,320

Three-year deposits 6,614 18,929 0 24,998 545

Four-year deposits 11,904 5,543 0 17,104 343

Five-year deposits 6,300,835 12,682,123 0 14,425,066 4,557,892

Deposits from Banks and financial institutions 0 0 0 0 0

Term deposits (foreign currency) 1,352,685 4,115,738 0 3,985,386 1,483,037

10,285,192 85,162,996 0 88,030,600 7,417,588

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33-2-1- According to the circular No. 94/69383 dated 20 jan. 2015, procedure for determining the contribution of

each type of deposits of difference between on account & final profit, is approved in the minute No. 575 dated

30 April 2016, as follow and is applied in above table.

* Based on average of 52 weeks balance of term deposits

** On account & final profit of Specific Certificates of deposit is independent of joint calculations.

* The Bank started with capital of IRR 3,500,000 m (3,500,000,000 shares at IRR 1,000 per share) and increased

it to IRR 50,400,000 m (50,400,000,000 shares at IRR 1,000 per share) in some steps by March 20, 2017 as

follows:

Sharing ratio of difference between on account &final profit

(%)

The average profit rate during the

year* (%)

The difference of the allocated final

profit rate

Final profit rate(%)

Short-term deposits 12.64 12.64

Special short-term deposits 18.44 18.44

General Certificates of deposit

Special Certificates of deposit **

One-year deposits 18.91 18.91

Two-year deposits 18.54 18.54

Three-year deposits 20.74 20.74

Four-year deposits 24.56 24.56

Five-year deposits 20.46 20.46

Deposits from banks and financial institutions 12.64 12.64

Date of registration of capital increase

Capital Increase (%)

Amount of capital Increase

Amount of new share capital Source of capital increase

23-Oct-2007 50 1,750,000 5,250,000 Receivables from shareholders and cash contributions

14-Jul-2008 33.33 1,750,000 7,000,000 Receivables from shareholders and cash contributions

9-Nov-2009 10 700,000 7,700,000 Receivables from shareholders and cash contributions

21-Nov-2010 200 15,400,000 23,100,000 Cash contributions

13-Mar-2012 18 4,158,000 27,258,000 Receivables from shareholders and cash contributions

17-Mar-2013 10.06 2,742,000 30,000,000Receivables from shareholders and cash

contributions and Retained Earning

4-Aug-2015 40 12,000,000 42,000,000 Receivables from shareholders and cash contributions

20-Jul-2016 20 8,400,000 50,400,000 Receivables from shareholders and cash contributions

34- SHARE CAPITAL




34-1- Major shareholders and their respective shareholdings at balance sheet date are as follows:

34-1-1-

20-Mar-2018 20-Mar-2017

No. of shares % No. of shares %

Pars Aryan Investment Co. 4,982,729,973 9.89% 4,982,729,973 9.89%

Nick Andishan e Sorush e Fajr 2,412,208,950 4.79% 2,412,208,950 4.79%

Hoordad Rayan Co. 2,336,111,933 4.64% 2,336,111,933 4.64%

Sam Group Co. 1,891,803,816 3.75% 1,891,803,816 3.75%

Kharazmi Investment Co. 1,864,676,185 3.70% 1,864,676,185 3.70%

Milad Gostar Noavaran Co. 1,862,382,641 3.69% 1,862,382,641 3.69%

Tamin Atiyeh Sarmaye Ensani Pasargad Co. 1,467,181,430 2.91% 1,467,181,430 2.91%

Danesh Gostaran Ati Saz e Pooya Co. 1,427,514,649 2.83% 1,427,514,649 2.83%

Saba Investment development and management Co. 1,420,000,000 2.82% 1,420,000,000 2.82%

Ms. Setareh Mansoobi 1,304,436,038 2.59% 1,304,436,038 2.59%

Binesh Pazhooh Iranian Co. 1,304,316,955 2.59% 1,304,316,955 2.59%

Salin Investment Consulting Co. 1,282,225,669 2.54% 1,282,225,669 2.54%

Mr. Mohammad Hadi Nik La’al Fard 1,280,941,936 2.54% 1,280,941,936 2.54%

Sahab Omid Iranian Co. 1,157,134,251 2.30% 1,157,134,251 2.30%

Hamghadam Trade Co. 1,132,196,168 2.25% 1,132,196,168 2.25%

Refah and Tamin Atiye Omid Institute 949,022,757 1.88% 949,022,757 1.88%

Kosar Hamyari Institute 824,236,265 1.64% 824,236,265 1.64%

Bareghe Omid Iranian Co. 524,958,123 1.04% 524,958,123 1.04%

Nazm Avaran Pooyaye Iranian Co. 509,905,490 1.01% 509,905,490 1.01%

Other Shareholders (below one percent):

Legal entities 12,235,611,660 24.28% 12,237,203,808 24.28%

Individuals 8,230,405,111 16.32% 8,228,812,963 16.32%

Total 50,400,000,000 100% 50,400,000,000 100%

20-Mar-2018 20-Mar-2017

No. of shares % No. of people No. of shares % No. of people

Legal entities 39,584,216,915 78.54% 360 39,585,809,063 78.55% 364

Individuals 10,815,783,085 21.46% 56,149 10,814,190,937 21.45% 55,977

Total 50,400,000,000 100 56,509 50,400,000,000 100 56,341


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35-1- In accordance with Article 108 of the Bank's articles of association and Article 33 of Monetary & Banking

Law, at least 15% and Maximum 20% of the Bank's net profit is allocated to legal reserve. This is compulsory

until the legal reserve equals the Bank's capital.

36-1- In accordance with Article 109 of the Bank's articles of association, the board of directors can allocate

part of the Bank's net profit to other reserves.

35- LEGAL RESERVE

36 - OTHER RESERVES

37- NON-CONTROLLING INTERESTS

20-Mar-2018 20-Mar-2017


Transfer from distributable profit 0 0


20-Mar-2018 20-Mar-2017


Transfer from distributable profit 0 0


Group

20-Mar-2018 20-Mar-2017

Share of capital 11,471,502 9,944,385

Share of reserves 1,621,238 635,018

Share of retained earnings 993,231 2,154,964

14,085,971 12,734,367


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Note 2017/18 2016/17 2017/18 2016/17

Joint Non-joint Total Joint Non-joint Total

Income from credit facilities 38-1 86,467,652 72,743,253 86,538,592 8,209,307 94,747,899 75,143,755 6,071,224 81,214,979

Income from deposits

38-2 2,390,230 1,986,784 1,627,152 763,078 2,390,230 1,327,653 659,130 1,986,783

Total income 88,857,882 74,730,037 88,165,744 8,972,385 97,138,129 76,471,408 6,730,354 83,201,762

38- INCOME FROM CREDIT FACILITIES AND DEPOSITS

2017/18 2016/17

IRRForeign

currency IRRForeign

currency

Joint Non-joint Total Non-joint Total Joint Non-joint Total Non-joint Total

Instalment sales 38,459 0 38,459 0 38,459 40,239 0 40,239 0 40,239

Ju'alah 109,336 0 109,336 0 109,336 148,457 0 148,457 0 148,457

Hire-purchase 205 0 205 0 205 206 0 206 0 206

mudarabah 3,597,773 0 3,597,773 0 3,597,773 3,874,443 0 3,874,443 0 3,874,443

Musharakah 80,289,664 0 80,289,664 0 80,289,664 68,160,153 0 68,160,153 0 68,160,153

Debt purchase 99,675 0 99,675 0 99,675 3,238 0 3,238 0 3,238

Murabaha 121,214 0 121,214 0 121,214 13,188 0 13,188 0 13,188

Foreign currency credit facilities

0 0 0 5,664,728 5,664,728 0 0 0 3,366,629 3,366,629

Late payment penalties

2,269,899 5,769 2,275,668 294,937 2,570,605 2,861,616 1,109 2,862,725 61,878 2,924,603

Late payment penalties- debtors for paid L/Cs

0 2,070,272 2,070,272 (2,305) 2,067,967 0 2,462,344 2,462,344 (51,849) 2,410,495

Late payment penalties- debtors for paid L/Gs

0 175,868 175,868 42 175,910 0 231,081 231,081 32 231,113

Late payment penalties- debtors for paid credit cards

12,367 0 12,367 0 12,367 42,215 0 42,215 0 42,215

86,538,592 2,251,909 88,790,501 5,957,398 94,747,899 75,143,755 2,694,534 77,838,289 3,376,690 81,214,979

38-1- Income from credit facilities


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2017/18 2016/17 2017/18 2016/17

Note Total Total IRR (joint)Foreign

currency (non-joint)

Total IRR (joint)Foreign


Total

Realized profit/(loss) from Investments

Dividend from investment in companies

39-1 978,542 1,158,747 799,250 0 799,250 466,604 0 466,604

Profit/(loss) from sale of shares 39-2 7,375,986 6,047,200 (15,158) 0 (15,158) (119,380) 0 (119,380)

8,354,528 7,205,947 784,092 0 784,092 347,224 0 347,224

2017/18 2016/17

IRR Foreign currency IRR Foreign

currency

Joint Non-joint Total Non-joint Total Joint Non-joint Total Non-joint Total

Bonus on legal deposit (Bank's & depositors' share)

0 592,119 592,119 0 592,119 0 504,541 504,541 0 504,541

Profit from term deposits with other banks

1,604,316 0 1,604,316 170,959 1,775,275 1,327,653 0 1,327,653 154,589 1,482,242

Profit from participation bonds certificates of deposit and sukuk

22,836 0 22,836 0 22,836 0 0 0 0 0

1,627,152 592,119 2,219,271 170,959 2,390,230 1,327,653 504,541 1,832,194 154,589 1,986,783

39- NET INVESTMENT PROFIT (LOSS)

38-2- Profit from deposits

* Profit/(loss) from the sale of shares in the group is mainly related to the Pasargad Arzesh Afarinan Co. that is concern

to shares sale profit of PEDC Co., MIDHCO and Pasargad Arian Communications Technologhy Development Co.

2017/18 2016/17

Note IRR (Joint)Foreign

Currency (Non-Joint)

Total IRR (Joint)Foreign

Currency (Non-Joint)

Total

Dividends from long-term investments 39-1-1 695,554 0 695,554 267,483 0 267,483

Dividends from Tehran Stock Exchange & OTC listed companies

39-1-2 13,866 0 13,866 59,652 0 59,652

Dividends from listed companies (Long-term) 39-1-3 89,830 0 89,830 139,469 0 139,469

799,250 0 799,250 466,604 0 466,604

39-1- Dividends from investments in companies


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IRR (Joint)

Foreign Currency

(Non-Joint)Total IRR (Joint)

Foreign Currency

(Non-Joint)Total

Long-term investments in Pasargad Group companies:

Pasargad Arzesh Afarinan Co. 244,988 0 244,988 0 0 0

Pasargad Aryan ICT Co. 123,970 0 123,970 13,230 0 13,230

Mabna Khavar Miyaneh Co. 0 0 0 0 0 0

Pasargad Insurance Co. 66,339 0 66,339 71,442 0 71,442

Middle East Mines & Mineral Industries Development Holding Co. 0 0 0 0 0 0

Bank Pasargad E-Payment Co. 499 0 499 1,575 0 1,575

Pasargad Leasing Co. 26,800 0 26,800 23,450 0 23,450

Bank Pasargad Brokerage Co. 19,600 0 19,600 19,600 0 19,600

Iranian re-insurance Co. 19,875 0 19,875 19,900 0 19,900

Pasargad Machinery and Equipment Leasing Co. 0 0 0 2 0 2

Pasargad Foreign Exchange Co. 72,000 0 72,000 54,000 0 54,000

Nasim Salamat Co. 11,458 0 11,458 1,462 0 1,462

Dividends from Long-term Investments (Pasargad Group companies) 585,529 0 585,510 204,661 0 204,661

Other long-term investments:

Andishe Farda Mutual Investment Fund 42,169 0 42,169 46,436 0 46,436

Iran Credit Scoring Consulting Co. 5,275 0 5,275 3,103 0 3,103

Shaparak Co. 14,826 0 14,826 0 0 0

National wrestling Fund 9,186 0 9,186 5,732 0 5,732

Andishe Zarin Fund 6,612 0 6,612 7,362 0 7,362

Other Investments 31,957 0 31,957 189 0 189

Dividends from other associates 110,025 0 110,025 62,822 0 62,822

Dividends from Long-term Investments 695,554 0 695,554 267,483 0 267,483

39-1-1- Dividends from investment in Pasargad Group companies and other associates


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IRR (joint) Foreign currency (non-joint) Total IRR (joint) Foreign currency

(non-joint) Total

Short-term investments:

Tehran Securities Exchange companies:

Ansar Bank 2,449 0 2,449 14,370 0 14,370

Day Bank 0 0 0 120 0 120

Asan Pardakht Persian Co. 500 0 500 0 0 0

Arfa Steel Co. 16 0 16 0 0 0

Bahman Diesel Co. 30 0 30 0 0 0

Esfahan Oil Refining Co. 75 0 75 0 0 0

Bandar Abbas Oil Refining Co. 1,215 0 1,215 0 0 0

Tehran Oil Refining Co. 66 0 66 0 0 0

Shiraz Oil Refining Co. 6 0 6 0 0 0

Pardis Petrochemical Co. 239 0 239 0 0 0

Khorasan Petrochemical Co. 0 0 0 3,340 0 3,340

Shiraz Petrochemical Co. 0 0 0 1,429 0 1,429

Fajr Petrochemical Co. 6,864 0 6,864 3,558 0 3,558

Mobin Petrochemical Co. 0 0 0 5,439 0 5,439

Alborz Distribution Co. 83 0 83 0 0 0

Farabi Pharmaceutical Co. 0 0 0 548 0 548

Reil Pradaze Seir Co. 0 0 0 324 0 324

Saipa Co. 53 0 53 0 0 0

Kharazmi Investment Co. 0 0 0 1,690 0 1,690

Rana Investment Co. 43 0 43 0 0 0

Civil Pension Fund General Trading Co. 994 0 994 0 0 0

Persian Gulf Petrochemical Co. 0 0 0 1,814 0 1,814

Niroo Mohareke Industrial Co. 6 0 6 0 0 0

Iran Alloy Steel Co. 77 0 77 0 0 0

Khouzestan Alloy Steel Co. 475 0 475 22 0 22

Esfahan's Mobarakeh Steel Co. 468 0 468 0 0 0

Chadormalu Mining and Industrial Co. 0 0 0 0 0 0

Golgohar Mining and Industrial Co. 207 0 207 0 0 0

Lia Special Materials Co. 0 0 0 20 0 20

Asia Petro Omid Participation bond 0 0 0 132 0 132

State Ijara Participation bond 0 0 0 1,334 0 1,334

Ritel Ijara 2 Participation bond 0 0 0 125 0 125

Ritel Ijara Participation bond 0 0 0 12,748 0 12,748

Telecommunication Company of Iran Ijara Participation bond 0 0 0 630 0 630

Mapna Ijara Participation bond 0 0 0 747 0 747

Mahan airways Ijara Participation bond 0 0 0 2,548 0 2,548

Naft Staff Fund Participation bond 0 0 0 590 0 590

Kordestan cement Participation bond 0 0 0 31 0 31

Ritel Service Company Participation bond 0 0 0 2,359 0 2,359

Tehran municipality Participation bond 0 0 0 36 0 36

Sabzevaar municipality Participation bond 0 0 0 332 0 332

Shiraz municipality Participation bond 0 0 0 1,406 0 1,406

Mashhad municipality Participation bond 0 0 0 8 0 8

Tabriz urban train Participation bond 0 0 0 18 0 18

Rayan Saipa Leasing Participation bond 0 0 0 3,934 0 3,934

13,866 0 13,866 59,652 0 59,652

39-1-2- Dividends from Tehran Securities Exchange and OTC listed companies:


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39-1-3- Dividends from listed companies (Long-term):

2017/18 2016/17

IRR (joint)Foreign


Total IRR (joint)Foreign


Total

Long-term investments:

Mapna Group 88,838 0 88,838 138,809 0 138,809

Energy Bourse 978 0 978 652 0 652

Farabourse 14 0 14 8 0 8

Total 89,830 0 89,830 139,469 0 139,469

39-2- Profit/(loss) from sale of Company shares

2017/18 2016/17

Note Sale

Cost of shares sold (including

commissions)

Profit/(Loss) (after

deduction of commissions)

Gain/(loss)

Pasargad Group companies 39-2-1 0 0 0 0

Tehran Stock Exchange companies (not within pasargad group) 39-2-2 440,445 455,604 (15,159) (119,380)

440,445 455,604 (15,159) (119,380)

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No. of Shares Sale Cost of shares sold (including commissions)

Profit (Loss) (after deduction of commissions) Profit (Loss)

Islamic Treasury Bills 950621 0 0 0 0 11

Islamic Treasury Bills 950721 0 0 0 0 856

Islamic Treasury Bills 960613 9,162 8,927 8,417 510 0



Sabzevaar municipality Participation bond 3,300 3,364 3,433 (69) 0

Iran Khodro 1,450,000 3,770 4,126 (356) 0

Asan Pardakht Persian 500,000 12,618 12,327 291 0

Arfa Steel 350,000 876 1,047 (171) 0

Ansar Bank 2,017,632 4,213 2,018 2,195 34,146

Parsian Bank 0 0 0 0 (227)

Tejarat Bank 0 0 0 0 (29,496)

Saderat Bank 0 0 0 0 (1,559)

Mellat Bank 0 0 0 0 (7,886)

Pars Khodro 700,000 666 764 (98) 0

Esfahan Oil Refining Co. 700,000 2,171 2,036 135 305

Bandar Abbas Oil Refining Co. 981,159 5,213 5,067 146 0

Tabriz Oil Refining Co. 1,009,154 4,719 4,868 (149) 193

Tehran Oil Refining Co. 600,000 1,541 1,483 58 229

Lavan Oil Refining Co. 271,828 3,609 3,850 (241) 0

Pardis Petrochemical 0 0 0 0 (1,403)

Khark Petrochemical 110,000 1,547 1,597 (50) 0

Khorasan Petrochemical 0 0 0 0 (13,198)

Persian Gulf Petrochemical 3,557,613 15,882 29,358 (13,476) (10,876)

Zagros Petrochemical 40,000 814 834 (20) 0

Shiraz Petrochemical 0 0 0 0 (48,910)

Fajr Petrochemical 9,251,626 47,327 56,901 (9,574) 0

Maroon Petrochemical 18,610 545 576 (31) 0

Mobin Petrochemical 5,580,818 23,729 23,742 (13) (710)

Alborz Distribution 277,777 643 766 (123) (243)

Farabi Pharmaceutical 0 0 0 0 2,333

Esfahan Steel 0 0 0 0 (10,723)

Radiator Iran 60,000 180 200 (20) 0

Reil Pradaze Seir 15,361,066 26,340 20,076 6,264 327

Tous Gostar Investment 0 0 0 0 96

Kharazmi Investment 13,000,000 9,357 13,635 (4,278) 0

Tamin Pharmaceutical Investment 0 0 0 0 (490)

Rana Investment 1,035,519 1,059 1,211 (152) 0

Civil Pension Fund General Trading 2,083,956 2,559 3,414 (855) 0

Ghadir Investment 0 0 0 0 (2,676)

Tamin Investement Petrochemical 300,000 428 387 41 0

Mashhad municipality 81 81 84 (3) 0

Azar Aab Industries 0 0 0 0 689

Pars Paper Industries 0 0 0 0 268

Etemad Afarin Parsian Fund 1,000,000 18,962 16,220 2,742

Iran Alloy Steel 128,022 248 244 4 273

Khouzestan Alloy Steel 891,638 2,789 2,939 (150) 657

Khouzestan Alloy Steel-right issue 0 0 0 0 477

Esfahan's Mobarakeh Steel 0 0 0 0 (1,673)

South Hormozgan Alloy Steel 150,000 338 357 (19) 0

Bahman Group 600,000 1,173 1,213 (40) 474

Iran Auto Parts Industrial Group 80,000 124 178 (54) 0

Iran Khodro Investment Development 20,124 65 76 (11) 0

Parsian Oil & Gas Development 0 0 0 0 (33,362)

Sadid Pipe & Equipment 0 0 0 0 (3,024)

39-2-1- Profit/(loss) from sale of Tehran Securities Exchange and OTC shares


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No. of Shares Sale Cost of shares sold (including commissions)

Profit (Loss) (after deduction of commissions) Profit (Loss)

Asia Petro omid Ijara Participation bond 3,213 3,211 3,281 (70) 1

Ritel Service Company Participation bond 6,696 7,179 6,795 384 1,487

State Ijara Participation bond 14,543 13,651 14,329 (678) (2)

Ritel Ijara Participation bond 90,530 90,676 91,696 (1,020) 66

Ritel Ijara 2 Participation bond 3,300 3,485 3,417 68 0

Telecommunication Company of Iran Ijara Participation bond 5,325 5,417 5,484 (67) 0

Mapna Ijara Participation bond 5,970 5,966 5,994 (28) 0

Mahan airways Ijara Participation bond 18,055 19,305 18,832 473 84

Rayan Saipa Participation bond 0 0 0 0 (1)

Naft Staff Fund Participation bond 8,255 8,259 8,641 (382) 63

Kordestan cement Participation bond 316 316 340 (24) 0

Tehran municipality Participation bond 450 550 486 64 0

Shiraz municipality Participation bond 18,938 19,027 19,567 (540) 100

Tabriz urban train Participation bond 121 121 127 (6) 0

Saipa Leasing Participation bond 3,563 3,564 3,564 0 15

Chadormalu Mining and Industrial 350,000 585 628 (43) 0

Golgohar Mining and Industrial 1,490,000 3,216 3,411 (195) 0

Lia Special Materials 350,000 4,914 1,422 3,492 3,927

Niroo Mohareke Industrial 302,294 511 643 (132) 0

440,445 455,604 (15,159) (119,380)

40- SHARE OF BANK'S RESOURCES FROM JOINT INCOME

Share of bank's resources from joint income are as follows :

40-1 SHARE OF BANK'S RESOURCES FROM JOINT INCOME

If the bank's allocation of joint resources (i.e. financial facilities, investments, etc.) is less than the total free

resources from term deposits, the bank's share in joint income will be zero.

Year Ratio of Bank's resources to total allocation of resources (39-1) (%) Joint income Share of Bank's resources from joint

income

2016/17 14.41 76,818,632 11,067,697

2017/18 14.97 88,949,837 13,319,468


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40-2- Distribution of resources and allocation of joint resources between Bank and depositors:

2017/18 2016/17 Description

Average of Bank's allocation of joint resources (40-2-1) 498,991,739 396,780,492 52 weeks average

Average of term deposits (40-2-2) 480,115,454 387,360,180 52 weeks average

Deducted :legal deposit for term deposits (55,843,411) (47,746,109) 52 weeks average

Deducted :Free resources from term deposits

424,272,043 339,614,071

Share of Bank's resources from joint allocation of resources 74,719,696 57,166,421

40-2-1- Average of Bank's allocation of joint resources:

2017/18 (average amount)


Net allocation to credit facilities 472,652,229 372,169,701

Net allocation to deposits in other banks 8,934,885 6,122,757

Net allocation to investments 17,404,625 18,488,034

Total allocation of joint resources 498,991,739 396,780,492

40-2-2- Average of investment deposits:



One-year deposits 165,830,693 181,452,791

Two-year deposits 2,120,041 4,458,599

Three-year deposits 107,461 172,707

Four-year deposits 27,195 44,560

Five-year deposits 59,869,472 71,472,711

Certificates of deposit 0 0

Short-term deposits 116,501,356 117,554,975

Other banks and credit institutions' investment deposits

0 0

Special short-term deposits 135,659,237 12,203,837

Total Average of investment deposits 480,115,455 387,360,180

* Share of bank resources from joint resources is equal to the joint resources minus the free resources from term

deposits. If the total amount of free resources from term deposits is greater than joint resources amount, the

surplus amount is referred to as surplus free resources from term deposits.


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40-3- Bonus on legal deposit of investment deposits

2017/18 2016/17

Average of legal deposit of investment deposits 55,843,411 47,746,109

Bonus of legal deposit 592,119 473,819

41- ATTORNEY FEE

Bank Pasargad attorney's fee for the financial year 2016/17 was announced 3%.

41-1- Announced Attorney's Fee

42- ON ACCOUNT RETURN PAID ON TERM DEPOSITS

Announced Attorney's Fee Applied Attorney's Fee

lower limit upper limit

Rate (%) 3 3 -1.13-4,824,769IRRm 0 12,728,161

Group Bank Pasargad

2017/18 2016/17 2017/18 2016/17

Short-term deposits 13,790,424 14,388,811 14,912,620 14,724,832

Special short-term deposits 26,880,275 2,024,176 26,880,275 2,024,176

Long-term deposits:

One-year deposits 22,735,035 34,439,481 23,071,756 34,439,481

Two-year deposits 385,275 829,142 385,275 829,142

Three-year deposits 18,929 35,959 18,929 35,959

Four-year deposits 5,543 10,974 5,543 10,974

Five-year deposits 12,682,123 14,645,209 12,682,122 15,588,411

Certificates of deposit 3,090,349 238 3,090,737 238

Other banks and credit institutions' term deposits 0 0 0 59,300

Total 79,587,953 66,373,990 81,047,257 67,712,513


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Group Bank Pasargad

Note 2017/18 2016/17 2017/18 2016/17

Profit of IRR investment deposits 43-1 79,587,953 66,373,990 81,047,257 67,712,513

Profit of foreign currency deposits 4,063,594 3,398,293 4,115,738 3,398,294

83,651,547 69,772,283 85,162,995 71,110,807

Group Bank Pasargad

Note 2017/18 2016/17 2017/18 2016/17

Net Qard-al-hasan commission 44-1 23,647 18,446 23,647 18,446

L/Cs opened 740,047 563,224 740,047 563,224

L/Gs issued 556,921 691,330 556,921 691,330

Foreign exchange transactions 21,483 5,464 21,483 5,464

Bank drafts 20,389 12,646 20,389 12,646

Collateral evaluation 4,808 4,599 4,808 4,599

Scrutiny of customers' credit dossier 669,102 394,420 669,102 394,420

Subscription of credit cards 35,059 61,373 35,059 61,373

Shetab network 1,399,138 1,092,327 1,399,138 1,092,327

Issuance of smart cards 34,916 33,242 34,916 33,242

Issuance of accounts' booklets 8,761 12,098 8,761 12,098

Sending SMS 256,519 187,473 256,519 187,473

Collateral's insurance 6,988 7,371 6,988 7,371

Bills of services 16,952 16,949 16,952 16,949

Other services 142,259 102,589 142,259 102,590

3,936,989 3,203,554 3,936,989 3,203,554

43- COST FOR PROFIT OF DEPOSITS

43-1- Compliance statement of on account and realizedcost for profit of deposits - IRR

44- FEE AND COMMISSION INCOME

2017/18 2016/17

On account profit on term deposits (note 43) 81,047,257 67,712,513

Underpaid/(overpaid) profit of term deposits (17,552,931) (11,676,181)

Final profit of term deposits 63,494,326 56,036,332

Overpaid profit of term deposits 17,552,930 11,676,181

Profit of IRR term deposits 81,047,256 67,712,513


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44-1- Net Qard-al-hasan commission

2017/18 2016/17

Net Qard-al-hasan commission 23,647 18,446

23,647 18,446

45- FEE AND COMMISSION COST

Group Bank

2017/18 2016/17 2017/18 2016/17

Cost of Shetab network 1,880,352 1,835,072 1,880,352 1,835,072

Banking services and POS commissions 3,237 7,266 1,728 144

Commissions Paid to Brokers and Clearing House 240,560 144,215 240,560 144,216

2,124,149 1,986,553 2,122,640 1,979,431

46- SALES AND INCOME FROM SERVICES

Group

2017/18 2016/17

Sale of foreign currency 35,659,559 12,740,344

Income from services 8,793,790 17,616,168

Sales of goods and products 7,934,567 14,006,365

Sales return and allowances 0 (18,494)

Sales of properties & real estates 114,065 166,642

52,501,980 44,511,025

47- NET FOREIGN EXCHANGE TRANSACTIONS PROFIT (LOSS)

Bank

2017/18 2016/17

Foreign exchange transaction profit/(loss) 147,561 113,266

Foreign currency conversion profit/(loss) 13,682,798 (776,410)

13,830,359 (663,143)


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Group Bank Pasargad

Note 2017/18 2016/17 2017/18 2016/17

Gain on disposal of properties and tangible and intangible assets 48-1 53,016 74,256 53,016 74,256

Gain on disposal of confiscated collaterals 48-1 166,208 94,462 166,208 94,462

Rent income 109,794 48,173 115,289 48,173

Gain on confiscated shares 75,298 178,571 75,298 178,571

Telegraph and mail income 1,155 916 1,155 916

Subscription income 24,742 2,041,174 24,742 1,501,492

430,213 2,437,552 435,708 1,897,870

48- NET OTHER INCOME

2017/18 2016/17

Cost Book value Selling price Gain/(loss) Gain/(loss)

Immovable fixed assets (land, building & goodwill) 15,117 12,704 28,358 15,654 49,729

Movable fixed assets 225,665 (5,749) 31,613 37,362 24,527

240,782 6,955 59,971 53,016 74,256

Confiscated properties 851,421 851,421 1,017,630 166,208 94,462

1,092,203 858,376 1,077,601 219,224 168,718

48-1- Gain on disposal of fixed assets

49- COST of GOODS AND SERVICES SOLD

Group

2017/18 2016/17

Cost of services 31,514,557 23,285,108

Direct materials 4,427,358 4,117,109

Direct labor cost 973,091 780,598

Overheads 2,944,583 1,470,168

Increase/(decrease) in finished goods inventory (1,985) (1,004)

39,861,574 29,651,979

BANK PASARGAD (PJSC) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018

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Group Bank Pasargad

2017/18 2016/17 2017/18 2016/17

Salaries, wages and benefits 2,183,359 1,744,947 1,113,846 958,242

Social security contributions - share of employee 401,829 328,003 334,001 279,173

Bonuses 1,281,324 1,074,730 1,092,468 909,958

Over-time 253,951 214,497 207,047 177,859

Termination allowance 439,894 378,517 273,369 252,026

Commuting allowance 249,778 241,413 249,424 234,151

Future allowance 78,645 75,450 76,822 65,206

Housing allowance 0 11,101 0 11,101

Complementary insurance 130,588 128,322 103,327 102,246

Compensated absences 20,247 12,057 19,334 11,076

Efficiency allowance 715,415 438,985 701,996 433,083

Non-cash benefits 135,298 91,940 134,128 73,537

Business travel assignments' allowance 78,108 72,318 16,180 18,313

Other 173,408 91,853 71,831 72,022

6,141,844 4,904,133 4,393,773 3,597,993

Group Bank

Note 2017/18 2016/17 2017/18 2016/17

Personnel expenses 50-1 6,141,844 4,904,133 4,393,773 3,597,993

Administrative expenses 50-2 6,382,206 4,883,002 4,863,113 3,630,582

12,524,050 9,787,135 9,256,886 7,228,575

50- GENERAL AND ADMINISTRATIVE EXPENSES

50-1- Personnel expenses

50-1-1- The increase in personnel costs is related to the annual increase in salary and benefits based on the

approval of the Supreme Council of Labor and the Bank's management decisions over the previous fiscal year.

BANK PASARGAD (PJSC) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018

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Group Bank Pasargad

2017/18 2016/17 2017/18 2016/17

Rent 181,718 144,928 138,681 110,267

Publication and advertisement 913,597 712,734 803,146 630,729

Education and research 40,401 28,928 23,532 22,173

Telecommunication 93,126 81,242 81,774 68,025

insurance 8,374 9,043 8,318 8,942

Audit and consultant's fee 206,835 263,693 81,479 71,070

Commuting 110,380 97,793 78,619 68,080

Utilities 99,732 96,833 82,223 79,932

Repair and maintenance of fixed & tangible assets 1,535,143 1,238,074 1,466,639 1,221,173

Office supplies 150,014 134,210 96,045 76,855

membership fees in Deposit Guarantee Fund 0 0 727,678 300,000

Board of directors bonus 0 0 0 3,096

Attendance fees for non-executive board of directors 0 0 806 370

hospitality 129,354 132,329 84,346 87,951

Contractual services 592,995 463,079 385,615 332,462

Notary and government charges 151,675 29,152 132,766 20,664

Physical education 15,741 25,002 15,741 14,734

Subscription fees 744,114 306,628 7,063 3,915

Workplace security 58,275 49,757 58,275 49,757

Sponsorship of social and cultural activities 208,526 91,556 208,526 91,556

Repair and maintenance of buildings 80,277 124,822 78,699 67,934

Clothing costs 48,804 25,862 48,804 24,577

healthcare 3,113 1,762 1,681 1,128

Depositors' insurance 368,328 298,409 248,754 255,487

Amortisation of goodwill 128,341 149,243 0 0

Other 513,343 377,923 3,903 19,705

Total 6,382,206 4,883,002 4,863,113 3,630,582

50-2- Administrative Expenses

Group Bank

Note 2017/18 2016/17 2017/18 2016/17

Specific provision of doubtful debts 51-1 14,472,104 9,252,071 14,472,104 9,252,071

General provision of doubtful debts 51-2 1,113,177 1,318,561 2,050,149 1,876,129

15,585,281 10,570,632 16,522,253 11,128,200

51- DOUBTFUL DEBTS EXPENSES


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51-1- Specific expenses for doubtful debts

2017/18 2016/17

overdue Bad debt Doubtful debt Total Total

Balance 4,326,171 6,744,788 15,873,636 26,944,595 22,341,649

Less: The value of collaterals by applying coefficients:

Deposits and participation bonds (66,494) (92,130) (128,312) (286,936) (270,606)

Real estate (1,242,561) (1,721,609) (2,397,736) (5,361,906) (5,056,743)

L/Gs (575) (796) (1,109) (2,480) (2,339)

Machinery (7,950) (11,015) (15,341) (34,306) (32,353)

(1,317,580) (1,825,550) (2,542,498) (5,685,628) (5,362,041)

Balance (basis for calculating specific provision) 3,008,591 4,919,238 13,331,138 21,258,967 16,979,608

Coefficient 10 20 50 or 100

Specific provision of doubtful debts 300,859 983,847 33,623,285 34,907,991 20,472,551

Specific provision for forbearance and renewal debts 0 0 0 0 0

Specific provision of doubtful debts at the beginning of the period (156,262) (635,073) (19,681,215) (20,472,550) (11,248,919)

Written off debts 0 0 36,663 36,663 28,439

Specific expenses for doubtful debts 144,597 348,774 13,978,733 14,472,104 9,252,071

51-2- General expenses for doubtful debts

2017/18 2016/17

Credit facility to other banks and financial institutions 10,860,000 0

dues from government 0 0

Credit facility to governmental entities 0 2,596,136

Credit facility to non-governmental entities 633,430,508 489,554,831

Customer debt for Term L/C after deduction of advances received 43,235,215 25,810,541

Due from subsidiaries and associates 2,084,069 984,406

Other accounts receivable 3,329,891 2,105,948

Less:

Balance of credit facilities for which specific provision is calculated (26,944,594) (22,341,649)

Balance (basis for calculating general provision) 665,995,089 498,710,213

Coefficient (min 1.5%) 1.5% 1.5%

General provision of doubtful debts 9,339,106 7,288,957

Less: General provision of doubtful debts at the biginning of the period (7,288,957) (5,412,828)

General expenses for doubtful debts 2,050,149 1,876,129


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52- FINANCIAL COST

Group Bank

2017/18 2016/17 2017/18 2016/17

Profit of credit facilities received from other banks and financial institutions 711,703 790,242 0 536,938

Profit and late payment penalties on credit facilities received from central bank 0 0 0 0

Late payment penalties paid 0 0 0 0

Financial cost of debt securities 0 0 0 0Late payment penalties of overdraft from Central bank's current account 135,736 1,961,990 135,736 1,961,990

847,439 2,752,232 135,736 2,498,928

54- NET OTHER INCOME & EXPENSES

55- PRIOIR YEAR ADJUSTMENTS

53- DEPRECIATION EXPENSES

Group Bank

2017/18 2016/17 2017/18 2016/17

Depreciation of fixed tangible assets 555,633 579,167 378,080 415,365

Amortisation of intangible assets 207,068 124,601 206,063 124,171

762,701 703,768 584,143 539,536

Group Bank

Note 2017/18 2016/17 2017/18 2016/17

Correction of errors 55-1 1,938,871 631,191 7,796 339,632

1,938,871 631,191 7,796 339,632

Group

Note 2017/18 2016/17

Net non-operating other income/(expenses) 2,075,475 662,798

Net operating other income/(expenses) 54-1 (9,907,062) (14,297,678)

(7,831,587) (13,634,880)

54-1- The main part of this amount is related to Pasargad Insurance Co. for reinsurance fees and commis-

sion expenses.


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55-1- In order to provide an appropriate picture of the financial position and results of operations, some com-

parative items of the comparative financial statements have been corrected and restated which is why some

comparative items do not match the financial statements presented in the previous financial year.

56-1- GROUP'S NET PROFIT/ (LOSS)

56- NET CASH GENERATED FROM OPERATING ACTIVITIES

Group

2017/18 2016/17

Net profit/(loss) 4,526,525 (7,564,411)

Depreciation 762,701 703,769

Net increase/(decrease) in provision for employees retirement benefits

344,665 338,206

Net increase/(decrease) financial cost payable 1,904,793 65,487

Net increase/(decrease) income tax payable 197,097 129,921

(Gain)/loss on disposal of properties, fixed & intangible assets (53,016) (74,256)

Net (gain)/loss from foreign currency conversion (13,830,359) 663,143

Doubtful debts expenses 15,585,281 10,570,632

9,437,687 4,832,491

Net increase/(decrease) in operating liabilities:

dues to Central bank, banks and other financial institutions 347,583 9,638,977



Term deposits 132,430,737 68,499,860

Advances Received 760,155 (969,802)

Operational Accounts Payable 2,339,527 (26,215,448)

Profit of term deposits payable (2,867,604) 1,829,211

212,666,812 78,075,405

Net (increase)/decrease in operating assets:


Credit facilities & dues from non-governmental entities (104,956,701) (128,408,236)

Investments in shares and other securities (1,418,786) (15,180,179)

Other accounts receivable (14,945,756) (6,441,646)

Prepayments and Orders 131,126 3,257,850

legal deposit (11,017,358) (4,009,697)

Operating portion of other assets (22,522,202) 1,017,695

(166,604,399) (145,389,118)

55,500,100 (62,481,222)


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56-2- NET PROFIT/(LOSS) GENERATED FROM OPERATING ACTIVITIES

Group

2017/18 2016/17

Net profit/(loss) 2,340,624 (6,498,210)

Depreciation 584,143 539,536

Net increase/(decrease) in provision for employees retirement benefits

189,937 226,899

Net increase/(decrease) financial cost payable 2,363,192 0

Net increase/(decrease) income tax payable 0 0

(Gain)/loss on disposal of properties, fixed & intangible assets (53,016) (74,256)

Net (gain)/loss from foreign currency conversion (13,830,359) 663,143

Doubtful debts expenses 16,522,253 11,128,200

8,116,774 5,985,312

Net increase/(decrease) in operating liabilities: Amounts dues to Central bank, banks and other financial institutions

347,583 9,638,977



Term deposits 137,469,999 70,094,215

Profit of term deposits payable (2,867,604) 1,822,497

198,244,460 101,885,862

Net (increase)/decrease in operating assets:


Credit facilities & dues from governmental entities 2,557,194 (2,557,194)

Credit facilities & dues from non-governmental entities (143,873,398) (129,742,709)

Investments in shares and other securities 101,287 856,948

dues from subsidiaries and associates (1,099,663) 20,013,425

Other accounts receivable (1,223,943) 95,686

legal deposit (11,017,358) (4,009,697)

Operating portion of other assets (22,148,508) 150,904

(188,579,111) (110,817,542)

17,782,123 (2,946,368)


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57- NON-CASH TRANSACTIONS

Group Bank

Note 2017/18 2016/17 2017/18 2016/17

Confiscated collateral assets 57-1 26,511,928 2,197,061 5,713,610 2,197,061

Capital increase from shareholders' due 1,248,160 10,506,286 0 0

27,760,088 12,703,347 5,713,610 2,197,061

57-1- confiscated collateral assets during the financial year:

Type of confiscated asset Customer relationship Expert value of confiscated assets

Residential property Unrelated customers 3,888,810

Commercial/administrative property Unrelated customers 770,602

Shares Unrelated customers 159,130

Participation bonds Unrelated customers 0

Factory equipment Unrelated customers 97,309

Land Unrelated customers 797,509

goods Unrelated customers 0

Furniture Unrelated customers 0

vehicles Unrelated customers 250

5,713,610

58-1- Commitments for L/Cs:

58- OFF BALANCE SHEET ITEMS

Note 2017/18 2016/17

Commitments for L/Cs (foreign currency) 107,134,216 76,530,112

Commitments for L/Cs (IRR) 58-1-1 1,076,325 169,671

108,210,541 76,699,783


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58-4- Managed funds:

58-1-1- Bank's commitments for L/Cs (IRR):

2017/18 2016/17

Opening balance 169,670 69,927

Issued during the year 1,888,661 559,174

Paid (canceled) during the year (982,006) (459,430)

Closing balance 1,076,325 169,671

58-3- Other commitments:2017/18 2016/17

Commitments for guarantee of participation bond and other securities

39,274 26,689

Commitments for credit cards 293,328 247,290

332,602 273,979

2017/18 2016/17

Not used managed funds 744 744

744 744

58-2- Commitments for L/Gs:

2017/18 2016/17

Foreign currency IRRm Foreign currency IRRm

Foreign currency commitments:

EUR 199,650,320 11,615,456 223,755,702 7,798,110

AED 8,711,470 114,146 6,813,084 60,139

USD 8,805,881 420,269 4,283,332 138,866

JPY 25,572,240 11,559 333,782,730 96,036

CNY 153,435,651 1,162,889 236,226,970 1,110,739

KRW 10,977,376,371 486,847 14,712,131,892 422,238

GBP 59,264 4,038 0

TRY 69,743,593 885,255 0

14,700,459 9,626,128

IRR commitments:

IRR 38,258,066 33,631,299

52,958,525 43,257,427


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58-5- Commitments for L/Cs and L/Gs by the type of collateral:

2017/18 2016/17

Term deposits 696,549 518,437

Participation bonds and shares 7,445 5,541

Documents, affidavits and commitment letters 5,361,964 3,990,879

Land, building and equipment 1,234,878 919,113

checks and promissory notes 153,868,232 114,523,240

161,169,066 119,957,210

59- CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS

Group Bank

2017/18 2016/17 2017/18 2016/17

Branch buildings 174,486 223,597 174,486 223,597 Asset acquisition in return for credit facilities received 20,798,318 0 0 0

Guarantee documents on Bank's account 6,694,679 10,264,940 0 0

Bank L/Gs 69,450 825,828 0 0

Other guarantees 125,031 1,478,079 0 0

27,861,964 12,792,444 174,486 223,597

59-1- Capital commitment raised from contracts ratified at STP date described as below:

60- EARNINGS PER SHARE

Basic earning per share is calculated by dividing profit attributable to ordinary shareholders to weighted

average number of ordinary shares. Weighted average number of ordinary shares is 50,400,000,000.

61- EVENTS AFTER THE REPORTING PERIOD

There is no event to be disclosed between the balance sheet date and the date of confirmation of the

financial statements (according to the fifth section of supervising requirements on Minimum Standards of

Transparency and Disclosure of Information in Financial Institutions).


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Receivables Other receivables Total

Balance at the beginning of the period 28,439 0 28,439

Witten off during the period 36,663 0 36,663

Collected during the period 0 0 0

Balance at the end of the period 65,102 0 65,102

Related parties Non-related parties Total

Balance at the beginning of the period 0 28,439 28,439

Witten off during the period 0 36,663 36,663


Balance at the end of the period 0 65,102 65,102

Transactional contract Participating contract Total

Balance at the beginning of the period 892 27,547 28,439

Witten off during the period 550 36,113 36,663


Balance at the end of the period 1,442 63,660 65,102

62- Written off receivables

62-1 Written off recivables categorised by type of receivables

62-2 written off recivables categorised by type of credit facility

62-3 written off recivables categorised by type of debtors

62-4 written off credit facilities categorised by type of contract

Governmental Non-governmental

Imposed Non-imposed Total Imposed Non-imposed Total Total

Balance at the beginning of the period 0 0 0 0 28,439 28,439 28,439

Witten off during the period 0 0 0 0 36,663 36,663 36,663

Collected during the period 0 0 0 0 0 0 0

Balance at the end of the period 0 0 0 0 65,102 65,102 65,102


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62-5 Written off credit facilities categorised by type of debt

62-6 Allocated provision for written off receivables during the period

63-BANK RISKS DESCRIPTION

Bank is exposed to different risks as follows:

» Credit risk

» Liquidity risk

» Market risk

» Operational risk

63-1- The relation between Bank's different business lines and major risks:

Principal Profit Penalty Legal fee Total

Balance at the beginning of the period 28,389 50 0 0 28,439

Witten off during the period 36,651 12 0 0 36,663

Collected during the period 0 0 0 0 0

Balance at the end of the period 65,040 62 0 0 65,102

2017/18 2016/17

IRRm IRRm

Balance at the beginning of the period 0 0

Write off expense during the period 0 0

Total 0 0


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Bank Pasargad

Corporate Banking

Credit Risk : Low

Market Risk : Low

Liquidity Risk : Low

Operational Risk : MediumOperational Risk: Medium

Liquidity Risk: Low

Market Risk: Medium

Credit Risk : Medium

Retail Banking

63-2- Framework and structure of Bank risk management

Approved structure of risk management department includes 6 experts (in IT, finance, legal, foreign ex-

change, credit, system analysis areas) that is supervised by deputy CEO of banking and economic studies.



Risk Management Supreme committee

Strategic Risk

Board of Directors

Economic and Banking Studies Deputy(Risk management Dept.)

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Market Risk

> Liquidity Gap

> Legal Risk

> Reputation Risk

> Non-performing Loans

> Customer Credit Rating

> Credit Economics sector concentration

> Bank's Short-term

> Share portfolio Return

> Foreign exchange Risk

> Systems' risk

> Human Capital Risk

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63-3- Credit Risk

63-3-1- Definition: The potential that a bank borrower will fail to meet its obligations (principal and profit)

due to inability or unwillingness to repay. Credit Risk can also be defined as probability that part of credit

portfolio of a financial intermediary becoming past due or bad debt or irrecoverable debt due to internal fac-

tors (eg. inappropriate credit scoring procedures and inadequate supervision on facilities) or external factors

(eg. economic recession, crisis, ...). The quality of resource allocation among different activities, credit wor-

thiness assessment and taking appropriate collaterals are effective in controlling this risk.

63-3-2- Credit Policies: Credit policies are prepared by credit policy committee annually and notified to all

related departments. The policies insist on granting credit facilities according to regulations issued by CBI

and in order to mitigate credit risk, identify profit rates, contract types, authority limits, acceptable Collateral,

terms and time of repayment.

63-3-3- Executive departments for credit risk management: In addition to Board of directors and senior

executives committee, Risk Management, Credit affairs, branches affairs Departments and all branches are

involved in credit risk management.

63-3-5- Credit risk mitigation techniques

Bank Pasargad tries to mitigate credit risk in the following ways:

» Using Internal credit scoring system

» Determining credit limits for different decision-making bodies

» Utilizing CBI Inquiry system (to control customer history of dishonored checks and non-performing

credit facilities)

» Proactive actions in credit facilities collection

» Acceptance of highly liquid collateral

» Incentivizing employees for credit facilities collection

» Issuing early warnings, manuals and instructions through credit affairs, internal audit and inspection

departments

» Employing official experts of the judiciary for collateral appraisal

Also risk management reports are discussed in supreme risk management committee on a monthly basis

and recommendations are submitted to the board of directors.



63-3-6- Creditworthiness assessment process

when customers ask for credit facilty, the branch requires them to give the primary documents such as

identification information, business certificates and financial statements. Then the branch asks credit de-

partment for credit worthiness assessment. Credit department staff go to customer's workplace and pre-

pare a report and send the result to the branch. The branch assesses the credit worthiness of the customer

regarding the ducuments, enquiries and the report.

63-3-7- Approving credit requests in Bank according to their conditions are delegated to different credit

decision making levels. Then the branches after primary investigations in compliance with rules and regula-

tions send the request for the right level of decision making bodies in the Bank. Authority limits of different

organizational levels to approve credit facilities and commitments are as follows:

Collaterals Against urban marketable propertiesAgainst promissory note with

creditable guarantors and checks derived from commercial transacti

Against promissory note with creditable guarantors

Credit Facilitiy type Credit facility L/G Credit facility L/G Credit facility L/G

Cust

omer

ty

pe

Indi

vidua

l

Lega

l en

tity

Indi

vidua

l

Lega

l en

tity

Indi

vidua

l

Lega

l en

tity

Indi

vidua

l

Lega

l en

tity

Indi

vidua

l

Lega

l en

tity

Indi

vidua

l

Lega

l en

tity

Tehran province branch affairs departments committee

30,000 80,000 200,000 300,000 10,000 20,000 75,000 150,000 7,500 15,000 60,000 120,000

Other provinces credit committee 7,000 15,000 60,000 160,000 2,000 4,000 37,500 75,000 1,500 3,000 22,500 45,000

Privileged branches credit committee 5,000 10,000 60,000 160,000 0 0 37,500 75,000 0 0 22,500 45,000

class 1 branches credit committee 4,000 8,000 40,000 120,000 0 0 22,500 45,000 0 0 15,000 30,000

class 2 branches credit committee 3,000 6,000 30,000 80,000 0 0 15,000 30,000 0 0 12,000 22,500

Class 3 & newly stablished branches credit committee

2,000 3,000 20,000 60,000 0 0 7,500 22,500 0 0 7,500 15,000

Sight L/C Deferred and refinance L/C

Description

Indi

vidua

l

Lega

l en

tity

Indi

vidua

l

Lega

l en

tity

Tehran province branch affairs departments

75,000 150,000 30,000 90,000

Other provinces credit committee 30,000 70,000 15,000 40,000

Privileged branches credit committee 20,000 40,000 10,000 20,000



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Amounts in IRRm

63-3-7-1- Quality analysis of credit facilities, commitments and investments according to internal credit rating

63-3-7-2- Quality analysis of credit facilities and commitments according to asset class:

63-3-7-3-Credit quality of Participation bonds Islamic Treasury bill, sukuk, investment fund units, etc.

* Investments include any kind of equity securities such as shares.

Credit Facilities Investments* L/G & L/C commitments

2017/18 2016/17 2017/18 2016/17 2017/18 2016/17

1-Low risk 606,485,915 467,213,184 16,268,708 16,359,156 161,169,066 119,957,210

2-Medium risk 11,070,957 7,916,829 377,554 388,393 0 0

3-High risk 15,873,636 14,424,819 0 0 0 0

Total gross amount 633,430,508 489,554,832 16,646,262 16,747,549 161,169,066 119,957,210

provision of doubtful debts (44,247,097) (27,722,566) 0 0 0 0

Net book value 589,183,411 461,832,266 16,646,262 16,747,549 161,169,066 119,957,210

Credit Facilities L/G & L/C commitments

2017/18 2016/17 2017/18 2016/17

Current debts 606,485,914 467,213,184 161,169,066 119,957,210

Overdue debts 4,326,170 3,115,665 0 0

Bad debts 6,744,788 4,801,164 0 0

Doubtful debts 15,873,636 14,424,819 0 0

633,430,508 489,554,832 161,169,066 119,957,210

provision of doubtful debts (44,247,097) (27,722,566) 0 0

Net book value 589,183,411 461,832,266 161,169,066 119,957,210

Credit quality analysis

2017/18 2016/17

Issued by Government and CBI:

projects 0 0

corporates 0 0

0 0

Government security

projects 0 0

corporates 0 0

0 0

Issued by Non-governmental sector

projects 0 0

corporates 0 0

0 0

0 0


IRRm

IRRm

IRRm


63-3-7-4- Type and value of collateral of credit customers

* stated amounts are pledged values based on Bank experts reports.

Collateral type 2017/18 2016/17

Credit facilities to individuals:

Cash 0 0

Participation bonds, shares and deposits 16,934,730 1,704,033

Marketable shares 0 0

Unlisted shares 0 0

Land, building & machinery 36,277,160 2,969,515

Plant & equipment 0 0

L/Gs 12,201,212 1,206,791

Checks & promissory notes 33,494,377 25,886,555

Binding contracts 3,336,399 2,308,466

Others 0 0

Credit facilities to legal entities:

Cash 0 0

Participation bonds, shares and deposits 205,891,868 20,717,578

Marketable shares 0 0

Unlisted shares 0 0

Land, building & machinery 333,925,645 27,333,929

Plant & equipment 0 0

L/Gs 206,572,103 20,431,532

Checks & promissory notes 445,252,402 344,118,987

Binding contracts 61,970,284 42,877,446

Others 0 0

1,355,856,180 489,554,832


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63-3-7-5- Balance of credit facilities (provision deducted) to updated fair value of collateral

63-3-8- Credit risk concentration

63-3-8-1- Sectoral credit facilities and investments distribution and domestic/foreign concentration

* All credit facilities are granted in Iran.

2017/18 2016/17

Credit facilities to banks:

50% or less 0 0

51%-70% 0 0

71%-90% 0 0

91%-100% 0 0

more than 100% 0 0

Credit facilities to individuals:

50% or less 17,799,689 31,152,707

51%-70% 2,048,085 3,584,523

71%-90% 4,421,335 7,738,144

91%-100% 587,548 1,028,316

more than 100% 619,914 1,084,963

Credit facilities to legal entities:

50% or less 424,763,462 310,887,655

51%-70% 48,872,667 35,770,282

71%-90% 105,504,610 77,219,638

91%-100% 14,020,426 10,261,658

more than 100% 14,792,772 10,826,946

633,430,508 489,554,832

Note Credit Facilities Investments* L/G & L/C commitments

2017/18 2016/17 2017/18 2016/17 2017/18 2016/17

Book value

Credit facilities/commitments categorized by economic sectors:

Manufacturing 59-3-8-1-1 167,371,205 101,380,703 4,509,409 4,574,718 52,968,004 39,423,781

Housing and construction 28,148,237 25,345,176 512,550 448,900 8,600,942 6,401,632

Commerce 129,371,081 123,224,615 0 0 98,999,095 73,684,457

Services 149,074,847 76,035,527 3,331,912 3,789,189 0 0

Agriculture 5,629,647 40,552,281 0 0 261,329 194,506

L/C 88,556,137 65,897,457 0 0 0 0

Insurance 0 0 487,101 432,986 0 0

Automobile 0 0 64,961 54,115 0 0

Investment 0 0 7,740,329 7,447,641 0 0

Other 83,445,074 70,966,491 0 0 339,696 252,834

Total 651,596,228 503,402,250 16,646,262 16,747,549 161,169,066 119,957,210


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63-3-8-1-1- Distribution of credit facilities, commitments and investments based on industry type:

2017/18 2016/17

Credit facilities:

Automobile and spare parts 53,285,506 30,414,211

Metal and mine 47,205,487 26,358,983

Petrochemical, chemical and oil products 7,600,024 5,069,035

Food and pharmaceutical 10,640,034 7,096,649

Energy 24,320,077 16,220,912

Contracting 9,120,029 6,082,842

Telecommunication, computer and related industries 3,040,010 2,027,614

Financial intermediaries 8,360,026 5,575,939

Other 3,800,012 2,534,518

167,371,205 101,380,703

Investments:

Automobile and spare parts 10,847 0

Metal and mine 176,707 4,399

Petrochemical, chemical and oil products 53,498 29,773

Food and pharmaceutical 0 766

Energy 0 0

Financial intermediaries 54,703 171,064

Other 27,327 182,387

Engineering and technical services 4,186,327 4,186,329

4,509,409 4,574,718

Commitments:

Automobile and spare parts 10,593,601 7,884,756

Metal and mine 2,869,799 2,135,975

Petrochemical, chemical and oil products 19,376,763 14,422,013

Food and pharmaceutical 3,178,080 2,365,427

Energy 4,237,440 3,153,902

Contracting 7,945,201 5,913,567

Telecommunication, computer and related industries 1,059,360 788,476

Financial intermediaries 2,118,720 1,576,951

Other 1,589,040 1,182,714

52,968,004 39,423,781

Total 224,848,618 145,379,202

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63-3-8-2- Distribution of credit facilities based on trasactional and participating contracts and customer

type:

63-3-9- Non-performing credit facilities management

Bank Pasargad tries its best to accept just valuable and marketable collaterals in order to take a proactive

approach regarding non-performing loans. Policies about decreasing and dealing with non-performing credit

facilities are advised by credit department. In case a credit facility becomes non-performing, primary actions

take place in branches. If the actions are unsuccessful the profile goes to credit department for more follow

up actions where some more negotiations happen. If the debt is not collected yet the legal affairs department

takes legal proceedings to collect it.

63-3-9-1- Movement in non-performing credit facilities:

Credit facilities during the period Balance at the end of the period

Description Amount Share of total (%) Amount Share of total(%)

Transactional contractsIndividual 4,831,494 0.73 5,782,011 0.91

Legal entity 115,295,173 17.34 137,977,611 21.78

Participating contractsIndividual 21,914,305 3.3 19,694,561 3.11

Legal entity 522,946,639 78.63 469,976,325 74.20

Total 664,987,611 100 633,430,508 100

2017/18 2016/17

principal Profit penalty total principal profit penalty total

Balance of non-performing credit facilities at the beginning of the year

22,341,649 0 0 22,341,649 20,023,577 0 0 20,023,577

Transferred to non-performing credit facilities during the year

34,272,215 0 0 34,272,215 24,654,509 0 0 24,654,509

Non-performing credit facilities settled during the year

Cash collection (23,955,660) 0 0 (23,955,660) (20,139,376) 0 0 (20,139,376)

collected via confiscation of collaterals (5,713,610) 0 0 (5,713,610) (2,197,061) 0 0 (2,197,061)

setteled by new credit facility 0 0 0 0 0 0 0 0

Restructured 0 0 0 0 0 0 0 0

Written off 0 0 0 0 0 0 0 0

Debt transfer 0 0 0 0 0 0 0 0

Late payment penalty relief 0 0 0 0 0 0 0 0

Balance of non-performing credit facilities at the end of the year

26,944,594 0 0 26,944,594 22,341,649 0 0 22,341,649


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63-3-9-2- Distribution of non-performing credit facilities based on economy sector:

Balance of non-performing credit facilities

Specific provision of doubtful debts

Net non-performing credit facilities

2017/18 2016/17 2017/18 2016/17 2017/18 2016/17

Manufacturing 11,337,869 8,042,993 14,688,743 7,370,118 (3,350,874) 672,875

Housing and construction 988,622 1,117,082 1,280,806 1,023,627 (292,184) 93,455

Commerce 7,765,350 5,585,412 10,060,377 5,118,138 (2,295,027) 467,274

Service 4,767,947 4,915,163 6,177,100 4,503,961 (1,409,153) 411,202

Agriculture 212,054 111,708 274,726 102,363 (62,672) 9,345

L/C 632,334 632,334 819,218 579,433 (186,884) 52,901

Other 1,240,418 1,936,957 1,607,021 1,774,911 (366,603) 162,046

Total 26,944,594 22,341,649 34,907,991 20,472,551 (7,963,397) 1,869,098

60-3-9-3- Balance of confiscated assets:

63-3-10- Minimum capital required for credit risk coverage:

Required capital to cover credit risk of Bank assets is IRRM 45,259,411 . The calculation is presented in

Note 63-3-10-1.

2017/18 2016/17

Movable assets 1,144 894

Residential properties 8,634,052 5,544,028

Commercial properties 1,269,913 512,263

Plant & equipment 97,309 9,951

Investments 2,140,445 1,981,315

Debt securities 0 0

Land 1,393,386 677,556

13,536,249 8,726,007


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63-4- Liquidity risk

63-4-1- Liquidity risk definition

Liquidity risk is the risk of liqudity defiecit in order to meet short term commitments and unexpected cashout-

flows in bank. It results from inability of a bank in settllement and reducing its debts or absorbing resources

in order to increase assets. In case of insufficient cash a bank can not fund the essential resources from

increasing debts or converting assets into cash. This will affect bank's profitability. In Crisis cash deficit can

even lead to insolvency of bank. In fact inability of a bank in meeting its commitments to others on their due

date is called liquidity risk. It mainly stems from banks' assets and liabilities structure.

63-4-2- Policies and guidelines for liquidity risk management

Bank Pasargad's general approach is to prevent from being exposed to liquidity risk through monitoring of

asset-liability structure and special attention towards liquid assets and daily monitoring of net cash inflows

and outflows and financing of deficiet.

63-4-3- Executive departments of liquidity risk management

Liquidity management at Bank Pasargad is done in Financial Affairs Department on a daily basis. The report

of liquidity risk indicators is prepared by Risk Management Department and is submited to the risk manage-

ment supreme committee for decision making. Any decisions to change liquidity risk management policies

are recommended to the the board of directors in appropriate times and will be executed after approval.

63-3-10-1- Calculation of minimum capital required for credit risk coverage:

2017/18

Asset type Assets and commitments Risk coefficient Risk weighted asset Allocated Capital

dues from banks and other financial institutions 23,907,158 20% 4,781,432 1,285,419

Investment in shares 16,646,262 100% 16,646,262 895,022

Accounts receivable 3,329,891 100% 3,329,891 179,039

Mortgages and hire-purchase facilities 35,172,183 50% 17,586,092 1,891,107

Other credit facilities & receivables 554,011,228 100% 554,011,228 29,787,590

Other assetss 58,006,948 100% 58,006,948 3,118,867

Commitments for L/Gs (conversion factor: 20%) 48,395,635 50% 24,197,818 2,602,094

Commitments for L/Cs (conversion factor: 20%) 102,298,079 50% 51,149,040 5,500,273

Total 841,767,384 729,708,709 45,259,411

IRRm



63-4-4- Liquidity risk measurement

Stress testing (every 6 months)

* Monitoring indices:

Liquid asset coverage by short-term liabilities

» Liquid asset coverage by short-term liabilities

» Net credit facilities to total deposits

» Liquidity ratio

» Cash ratio

» Investment coverage ratio

63-4-5- Control and monitoring of liquidity risk

Bank Pasargad controls liquidity risk by the means such as maintaining some cash as percentage of total

deposits and debts, IRR interbank market, purchasing other banks' participation papers, etc.

63-4-5-1- Liquidity reserves composition

63-4-5-2- Liquidity ratios table

* Cash and cash equivalents include cash, participation papers and similar securities, which have active trading

markets.

* Net liquid assets include cash and cash equivalents, investment papers which have active trading markets

excluding other banks' deposits, issued debt securities, other debts and commitments which will be due within

one month.

* Less stable deposits are those deposits without any certain maturity date such as current account and Qard-

al-hasan saving deposits.

2017/18 2016/17

Deposits with CBI 9,349,152 7,404,736

Cash and Deposit with other banks 88,506,434 50,844,133

97,855,586 58,248,869

b/f Average Max Min c/f

Cash & cash equivalents to total assets 7.11 7.89 9.25 6.94 8.68

Cash & cash equivalents to total deposits 9.48 10.53 12.03 9.21 11.57

Net liquid asset to total deposits 0.7 0.85 1.12 0.68 1

Credit facilities to total deposits 95.29 93.74 100.74 86.74 92.18

Credit facilities to one-year deposits or more 175.15 153.01 180.45 127.31 130.87

Less stable deposits to total deposits 4.63 5.21 5.98 4.35 5.78


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63-4-5-3- Current assets and liabilities maturity analysis:

2017/18

less than 1 month

1 to 3 months

3 months to one year

one to five years

more than five years

Without Certain

maturity

Assets

Cash 73,948,428 0 0 0 0 0dues from banks and other financial institutions 23,907,158 0 0 0 0 0

dues from government 0 0 0 0 0 0

Credit facilities and dues from govermental entities 0 0 0 0 0 0

Credit facilities and dues from non-govermental entities 115,153,153 150,512,581 172,991,260 109,963,125 40,563,292 0

Investment in shares and other securities 16,646,262 0 0 0 0 0

Receivable from subsidiaries and associates 2,084,069 0 0 0 0 0

Other accounts receivable 3,329,891 0 0 0 0 0

Tangible fixed assets 0 0 0 0 12,086,368 0

Intangible assets 0 0 0 0 8,669,925 0

legal deposit 64,315,225 0 0 0 0 0

Other assets 0 0 0 0 58,006,948 0

299,384,186 150,512,581 172,991,260 109,963,125 119,326,533 0

Liabilitiesdues to banks and other financial institutions 38,563,382 0 0 0 0 0

Customers deposit 36,945,383 0 0 0 0 0

Dividend payable 165,040 0 0 0 0 0

Profit payable on term deposits 7,417,588 0 0 0 0 0

Corporate tax provision 416,741 0 0 0 0 0

Provisions and other debts 103,634,640 0 0 0 0 0Provision for employees retirement benefits 981,299 0 0 0 0 0

Term deposits 64,907,471 109,915,276 271,005,806 60,712,654 95,685,287 0

Total liabilities 253,031,544 109,915,276 271,005,806 60,712,654 95,685,287 0

Total equity 0 0 0 0 61,827,118 0

Total liabilities and equity 253,031,544 109,915,276 271,005,806 60,712,654 157,512,405 0

Gap 46,352,642 40,597,305 (98,014,546) 49,250,471 (38,185,872) 0

Accumulated gap 46,352,642 86,949,947 (11,064,599) 38,185,872 0 0

Gap to capital base ratio 89% 78% -188% 94% -73% 0

Accumulated gap to capital base ratio 89% 166% -21% 73% 0% 0Ratio of gap to capital base basis for other contingency 64% 56% -135% 68% -53% 0

Ratio of accumulated gap to capital base basis for other contingency 64% 120% -15% 53% 0% 0

IRRm



63-4-5-3- Current assets and liabilities maturity analysis:

The following table shows maturity of assets and liabilities of bank based on the probability of being paid back.

2016/17

less than 1 month

1 to 3 months


one to five years


Without Certain

maturity

Assets

Cash 46,216,433 0 0 0 0 0

dues from banks and other financial institutions 12,032,436 0 0 0 0 0


Credit facilities and dues from govermental entities 2,557,194 0 0 0 0 0


Investment in shares and securities 16,747,549 0 0 0 0 0

Receivable from subsidiaries and associates 984,406 0 0 0 0 0




legal deposit 53,297,867 0 0 0 0 0

Other assets 0 0 0 0 35,858,440 0

190,794,772 73,188,056 184,438,128 75,437,128 126,041,266 0

Liabilities 0 0 0 0 0 0

dues to banks and other financial institutions 38,215,799 0 0 0 0 0


Dividend payable 1,024,921 0 0 0 0 0

Debt securities 0 0 0 0 0 0


Provisions and other debts 52,245,593 0 0 0 0 0

Provision for employees retirement benefits 791,362 0 0 0 0 0

Term deposits 65,179,940 57,190,195 185,809,432 89,456,142 77,405,977 0


Total equity 0 0 0 0 59,494,290 0


Gap 10,251,458 15,997,861 (1,371,304) (14,019,014) (10,859,001) 0

Accumulated gap 10,251,458 26,249,319 24,878,015 10,859,001 0 0

Gap to capital base ratio 20% 32% -3% -28% -21% 0

Accumulated gap to capital base ratio 20% 52% 49% 21% 0% 0

Gap to effective capital base ratio 14% 22% -2% -19% -15% 0

Accumulated gap to effective capital base ratio 14% 36% 34% 15% 0% 0

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63-4-5-4- Analysis of contractual maturity of financial liabilities

63-4-5-4-1- The following table shows the contractural maturity of financial liabilities according to the maturity

mentioned in contract.

2017/18

less than 1 month 1 to 3 months 3 months to

one yearone to five

yearsmore than five years

Without Certain

maturity

Liabilities:dues to banks and other financial institutions 38,563,382 0 0 0 0 0



Credit facilities received from National Development fund 47,997,334 0 0 0 0 0

Term deposits 64,907,471 109,915,276 271,005,806 60,712,654 95,685,287 0

188,413,570 109,915,276 271,005,806 60,712,654 95,685,287 0

2016/17

less than 1 month 1 to 3 months 3 months to

one yearone to five

yearsmore than five years

Without Certain

maturity

Liabilities:dues to banks and other financial institutions 38,215,799 0 0 0 0 0


Debt securities 0 0 0 0 0 0Credit facilities received from National Development fund 14,282,103 0 0 0 0 0

Term deposits 65,179,940 57,190,196 185,809,432 89,456,142 77,405,977 0

140,258,826 57,190,196 185,809,432 89,456,142 77,405,977 0


IRRm

IRRm


2017/18

Book value less than 1 month

1 to 3 months


one to five years


Without Certain

maturity

Liabilities:dues to banks and other financial institutions 35,121,716 35,121,716 0 0 0 0 0

Customers deposit 0 0 0 0 0 0


credit facilities received from National Development fund 47,997,334 47,997,334 0 0 0 0 0

Term deposits 67,359,623 67,359,623 0 0 0 0 0

150,478,673 150,478,673 0 0 0 0 0

2016/17

Book value less than 1 month

1 to 3 months


one to five years

more than five

years

Without Certain

maturity

Liabilities:dues to banks and other financial institutions 21,988,859 21,988,859 0 0 0 0 0

Customers deposit 0 0 0 0 0 0 0

Debt securities 0 0 0 0 0 0 0credit facilities received from National Development fund 14,282,103 14,282,103 0 0 0 0 0

Term deposits 45,467,032 45,467,032 0 0 0 0 0

81,737,994 81,737,994 0 0 0 0 0

63-4-5-4-1- Analysis of contractual maturity of financial foreign currency liabilities


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63-5- Market risk

63-5-1- Market risk definition

Market risk or Value at risk , can be defined as probability of risk related to uncertainty of trading portfolio in-

come of a bank resulting from changes in market conditions including market prices, interest rates, marekt and

liquidity volatilities. It exist when financial institution actively trade assets, liabilities and derivitives in market but

not for long term investments purposes.

63-5-2- Executive departments of market Risk

Finance & treasury department and international affairs department with cooperation of economic and banking

studies department manage market risk.

63-5-3- Market risk measurement

"Market risk is measured based on VaR. Bank Pasargad uses one of parametric methods

(variance-covariance) which includes following assumptions to measure market risk:

» Investment return follows normal distribution

» Investment return is time independent.

» Time period of one day is suitable for VaR calculation

» Linear relation exists between market risk factors and asset values."

63-5-4- Value at risk analysis of investments in shares and other investments having active market

It is calculated regarding 10 days probability of expected loss with 99% confidence level as follows.

2017/18 2016/17

Investment type Probable changes in market value (%)

Impact on profit/(loss)

Probable changes in market value (%)


investment in tradable shares (-3.37,+3.37) 153,561 (-3.37,+3.37) 147,092

IRRm



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8 www.bankpasargad.com 163

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USD

EUR

GBP

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CHF

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d ot

her fi

nanc

ial in

stitu

tions

30,

000

00

215

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0

00

30,

000,

000

200

,000

,000

0

00

00

0

Cred

it fa

ciliti

es an

d re

ceiva

bles

from

gove

rnm

enta

l enti

ties

00

00

00

00

00

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0

Cred

it fa

ciliti

es an

d re

ceiva

bles

from

non

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ernm

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2,1

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436

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0

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2

19,0

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00

0 3

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and

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Othe

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913

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Tang

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sets

00

00

00

00

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00

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Othe

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Tota

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495

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4

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2

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2

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5

5,21

8,66

1 6

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1

11,0

74,9

95,9

77

169

,248

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1

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58

762

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3

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0

Com

mitm

ents

for L

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0 1

75,9

51,3

22

0 2

,715

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6

32,9

47,0

03

00

38,

902,

892

955

,000

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1

8,99

1,09

5,08

5 1

40,7

88,4

15

0 4

62,7

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14

00

Com

mitm

ents

for L

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00

00

00

00

00

00

00

0

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r Cus

tom

ers'

Com

mitm

ents

0 (1

75,9

51,3

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0 (2

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) (6

32,9

47,0

03)

00

(38,

902,

892)

(955

,000

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) (1

8,99

1,09

5,08

5) (1

40,7

88,4

15)

0 (4

62,7

52,7

14)

00

Tota

l for

eign

curre

ncy c

omm

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ts0

00

00

00

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00

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Tota

l for

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ts a

nd a

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s 2

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1

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4

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495

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,216

2

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2

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5

5,21

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1 6

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1

11,0

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169

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1

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762

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3

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0

Tota

l for

eign

curre

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omm

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ts a

nd a

sset

s- IR

R eq

uiva

lent

(IR

Rm)

104

,939

,373

7

4,12

4,87

6 3

2,25

8 6

,496

,603

1

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1

3,15

2 1

33,4

37

700

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4

6,90

0,97

4 4

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,176

1

41,6

92

9,8

67

556

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4

,376

0

dues

to b

anks

and

othe

r fina

ncial

insti

tutio

ns (7

,419

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) (6

11,6

50,6

58)

0 (8

49,0

94)

00

0 (5

9,34

4,01

8) (2

61,2

66,4

84)

(65,

468,

773,

998)

00

(36,

310,

187)

00

Custo

mer

s dep

osit

(57,

805,

820)

(261

,397

,136

) (8

5,21

5) (9

1,51

3,68

6) (3

38,3

22,3

04)

0 (1

0,83

9) (2

,614

,047

) (5

,336

,127

,457

) (1

5,73

1,66

9,84

5) (7

,566

,792

)0

(97,

142,

863)

00

Divid

end

paya

ble

00

00

00

00

00

00

00

0

Debt

secu

rities

00

00

00

00

00

00

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0

Corp

orat

e ta

x pro

visio

n0

00

00

00

00

00

00

00

Prov

ision

s and

oth

er d

ebts

(1,0

06,6

03,8

32)

(40,

539,

421)

0 (1

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)(0

)0

(1)

(209

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) (5

,152

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) (4

1,80

0,00

0) (1

3,61

9,00

0)0

(10,

677,

545)

00

Prov

ision

for e

mpl

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s reti

rem

ent b

enefi

ts0

00

00

00

00

00

00

00

Term

dep

osits

(1,0

93,7

33,0

54)

(284

,991

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) (3

26,9

74)

(2,9

82,8

92)

00

(24,

523)

00

00

00

00

Tota

l for

eign

curre

ncy l

iabi

lities

(2,1

65,5

62,5

38)

1,1

98,5

78,5

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6,79

3,51

7) (3

38,3

22,3

04)

0 (3

5,36

3) (6

2,16

7,35

1) (5

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1,24

2,24

3,84

3) (2

1,18

5,79

2)0

(144

,130

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)0

0

Com

mitm

ents

for L

/Cs

0 1

75,9

51,3

22

0 2

,715

,000

6

32,9

47,0

03

00

38,

902,

892

955

,000

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1

8,99

1,09

5,08

5 1

40,7

88,4

15

0 4

62,7

52,7

14

00

Com

mitm

ents

for L

/Gs

00

00

00

00

00

00

00

0

Othe

r Cus

tom

ers'

Com

mitm

ents

0 (1

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0 (2

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) (6

32,9

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03)

0 0

(38,

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892)

(955

,000

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) (1

8,99

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5) (1

40,7

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15)

0 (4

62,7

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0 0

Tota

l for

eign

curre

ncy c

omm

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00

00

00

00

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00

Tota

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curre

ncy c

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nd a

sset

s (2

,165

,562

,538

)1,

198,

578,

547

(412

,189

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6,79

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7) (3

38,3

32,3

04)

0 (3

5,36

3) (6

2,16

7,35

1) (5

,602

,546

,767

) (8

1,24

2,24

3,84

3) (2

1,18

5,79

2)0

(144

,130

,596

)0

0

Tota

l for

eign

curre

ncy c

omm

itmen

ts a

nd a

sset

s- IR

R eq

uiva

lent

(IR

Rm)

(103

,353

,638

) (6

9,73

2,10

1) (2

8,08

8) (1

,268

,285

) (1

52,9

26)

0 (1

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) (7

89,0

90)

(42,

461,

702)

(3,6

03,0

94)

(17,

711)

0 (1

05,2

15)

00

Net o

f ope

n po

sition

ass

et/(

liabi

lity)

at 2

0 M

arch

201

8 3

3,22

5,81

3 7

5,50

4,47

9 6

1,20

1 3

99,0

16,8

52

2,7

45,9

00,9

12

2,2

21,1

87

2,5

23,7

87

(6,9

48,6

90)

585

,733

,222

2

9,83

2,75

2,13

3 1

48,0

62,6

90

100

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6

17,9

23,3

21

3,6

25,0

00

0

Net o

f ope

n po

sition

at 2

0 M

arch

201

8- IR

R eq

uiva

lent

(IRR

m)

1,5

85,7

35

4,3

92,7

75

4,1

70

5,2

28,3

18

1,6

93,1

47

13,

152

131

,593

(8

8,20

0) 4

,439

,272

1

,323

,083

1

23,7

80

9,8

67

451

,084

0

0

NO

P to

capi

tal b

ase

(%)

2.1

9 6

.06

0.0

1 7

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3 0

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0.1

8 (0

.12)

6.1

2 1

.82

0.1

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0.6

2 0

0

NO

P to

capi

tal b

ase

base

d on

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nting

ency

ratio

s (%

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7.2

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8.5

9 2

.78

0.0

2 0

.22

(0.1

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2.1

7 0

.20

0.0

2 0

.74

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BANK

PAS

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NO

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to C

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TED

FINA

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L ST

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FIN

ANCI

AL Y

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ENDE

D M

ARCH

20,

201


63-5

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VaR

of

fore

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exch

ang

e ra

te a

t FY

E 2

016/

17:

USD

EUR

GBP

AED

JPY

CHF

TRY

CNY

KRW

RUB

OMR

IND

othe

cu

rrenc

ies

Cash

86,

214,

452

832

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1

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3

24,5

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478

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157

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1

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dues

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nanc

ial in

stitu

tions

0 5

2,20

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0 0

210

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0

00

200

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0

00

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Cred

it fa

ciliti

es an

d re

ceiva

bles

from

gove

rnm

enta

l enti

ties

00

00

00

00

00

00

0

Cred

it fa

ciliti

es an

d re

ceiva

bles

from

non

-gov

ernm

enta

l enti

ties

1,5

53,2

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34

231

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0

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4

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0 3

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0

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63,5

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00

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and

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00

00

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Rece

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m su

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asso

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s0

00

00

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00

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Oth

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ceiv

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s 1

01,6

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979

2,6

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0

0 1

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24

25,

761,

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0 2

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0

00

Tang

ible

fixe

d as

sets

00

00

00

00

00

00

0

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ngib

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s0

00

00

00

00

00

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lega

l res

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00

00

00

00

00

00

0

Oth

er a

sset

s0

00

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00

00

00

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sets

1,6

39,5

29,3

98

1,1

16,9

00,3

58

1,5

43,9

41

535

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4

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4

81,6

76

60,

175,

226

6,1

38,1

87,4

79

86,

660,

973,

576

157

,918

,182

1

00,7

58

1,0

13,8

65,3

97

0

Com

mitm

ents

for L

/Cs

0 9

7,93

7,37

0 0

1,8

41,0

74

567

,448

,501

0

26,

091,

126

268

,932

,232

2

3,07

3,02

3,82

9 4

,895

,000

0

373

,985

,360

0

Com

mitm

ents

for L

/Gs

00

00

00

00

00

00

0

Oth

er C

usto

mer

s' Co

mm

itmen

ts0

(97,

937,

370)

0 (1

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,074

) (5

67,4

48,5

01)

0 (2

6,09

1,12

6) (2

68,9

32,2

32)

(23,

073,

023,

829)

(4,8

95,0

00)

0 (3

73,9

85,3

60)

0

Tota

l for

eign

cur

renc

y co

mm

itmen

ts0

00

00

00

00

00

00

Tota

l for

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cur

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y co

mm

itmen

ts a

nd a

sset

s 1

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,398

1

,116

,900

,358

1

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,941

5

35,3

62,0

66

4,0

54,7

07,6

24

481

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6

0,17

5,22

6 6

,138

,187

,479

8

6,66

0,97

3,57

6 1

57,9

18,1

82

100

,758

1

,013

,865

,397

0

Tota

l for

eign

cur

renc

y co

mm

itmen

ts a

nd a

sset

s- IR

R eq

uiva

lent

(IRR

m)

53,

153,

543

38,

925,

094

62,

053

4,7

25,6

41

1,1

66,6

20

15,

645

538

,267

2

8,86

1,75

7 2

,487

,170

8

9,54

0 8

,220

5

02,8

77

0

dues

to b

anks

and

oth

er fi

nanc

ial i

nstit

ution

s (7

,902

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) (5

18,5

67,9

97)

0 (8

49,0

94)

00

(59,

283,

888)

(260

,999

,584

) (6

5,40

2,27

6,10

0)0

0 (3

6,27

3,19

4)0

Cust

omer

s dep

osit

(36,

244,

479)

(201

,357

,955

) (2

26,5

27)

(7,6

05,9

54)

(206

,092

,661

) (4

,070

) (1

,341

,981

) (5

,108

,174

,588

) (1

5,64

1,31

6,13

7) (7

,566

,792

)0

(253

,818

,696

)0

Divi

dend

pay

able

00

00

00

00

00

00

0

Debt

secu

rities

00

00

00

00

00

00

0

Corp

orat

e ta

x pr

ovisi

on0

00

00

00

00

00

00

Prov

ision

s and

oth

er d

ebts

(454

,853

,274

) (1

16,8

90,9

89)

0 (4

,376

,930

) (7

,217

,100

)0

(1,3

05,9

32)

(140

,523

,166

) (6

68,1

23,9

46)

00

(1,4

63,0

00)

0

Prov

ision

for e

mpl

oyee

s reti

rem

ent b

enefi

ts0

00

00

00

00

00

00

Term

dep

osits

(1,2

31,2

71,6

14)

(196

,697

,882

) (3

47,6

26)

(3,5

69,8

70)

0 (3

9,75

3)0

00

00

00

Tota

l for

eign

cur

renc

y lia

biliti

es (1

,730

,271

,910

) (1

,033

,514

,823

) (5

74,1

53)

(16,

401,

849)

(213

,309

,761

) (4

3,82

3) (6

1,93

1,80

1) (5

,509

,697

,338

) (8

1,71

1,71

6,18

3) (7

,566

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)0

(291

,554

,890

)0

Com

mitm

ents

for L

/Cs

0 9

7,93

7,37

0 0

1,8

41,0

74

567

,448

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0

26,

091,

126

268

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2

3,07

3,02

3,82

9 4

,895

,000

0

373

,985

,360

0

Com

mitm

ents

for L

/Gs

00

00

00

00

00

00

0

Oth

er C

usto

mer

s' Co

mm

itmen

ts0

(97,

937,

370)

0 (1

,841

,074

) (5

67,4

48,5

01)

0 (2

6,09

1,12

6) (2

68,9

32,2

32)

(23,

073,

023,

829)

(4,8

95,0

00)

0 (3

73,9

85,3

60)

0

Tota

l for

eign

cur

renc

y co

mm

itmen

ts0

00

00

00

00

00

00

Tota

l for

eign

cur

renc

y co

mm

itmen

ts a

nd a

sset

s (1

,730

,271

,910

) (1

,033

,514

,823

) (5

74,1

53)

(16,

401,

849)

(213

,309

,761

) (4

3,82

3) (6

1,93

1,80

1) (5

,509

,697

,338

) (8

1,71

1,71

6,18

3) (7

,566

,792

)0

(291

,554

,890

)0

Tota

l for

eign

cur

renc

y co

mm

itmen

ts a

nd a

sset

s- IR

R eq

uiva

lent

(IRR

m)

(56,

095,

415)

(36,

019,

025)

(23,

076)

(144

,779

) (6

1,37

3) (1

,423

) (5

53,9

80)

(25,

906,

597)

(2,3

45,1

26)

(4,2

90)

0 (1

44,6

11)

0

Net

of o

pen

posi

tion

asse

t/(li

abili

ty) a

t 20

Mar

ch 2

018

(90,

742,

512)

83,

385,

535

969

,788

5

18,9

60,2

18

3,8

41,3

97,8

64

437

,852

(1

,756

,575

) 6

28,4

90,1

40

4,9

49,2

57,3

92

150

,351

,389

1

00,7

58

722

,310

,507

0

Net

of o

pen

posi

tion

at 2

0 M

arch

201

8- IR

R eq

uiva

lent

(IRR

m)

(2,9

41,8

72)

2,9

06,0

69

38,

977

4,5

80,8

62

1,1

05,2

47

14,

222

(15,

713)

2,9

55,1

61

142

,044

8

5,24

9 8

,220

3

58,2

66

0

NO

P to

cap

ital b

ase

(%)

(4.0

6) 4

.01

0.0

5 6

.32

1.5

2 0

.02

(0.0

2) 4

.08

0.2

0 0

.12

0.0

1 0

.49

0

NO

P to

cap

ital b

ase

base

d on

oth

er c

ontin

genc

y ra

tios (

%)

(5.8

1) 5

.74

0.0

8 9

.05

2.1

8 0

.03

(0.0

3) 5

.84

0.2

8 0

.17

0.0

2 0

.71

0

63-5-6- Capital required for Market risk (10 days horizon with 99% confidence level):

Shares Risk Foreign exchange rate risk

Measurement methodVaR

(10 days)Required Capital

ProvisionVaR

(10 days)Required Capital

Provision

Total Capital required for market risk

Variance-Covariance 1,664,626 3,657,600 1,521,634 1,217,307 4,874,907

2017/18 2016/17

Positive NOP of all foreign currency -IRRm 19,395,976 12,194,317

Negative NOP of all foreign currency -IRRm (88,200) (2,957,585)

NOP-IRRm 19,307,776 9,236,732

Positive NOP of all foreign currency to capital base (%) 26.75 16.82

Positive NOP of all foreign currency to capital base based on other effective contingency ratios (%) 31.86 24.10

Negative NOP of all foreign currency to capital base (%) (0.12) (4.08)

Negative NOP of all foreign currency to capital base based on other effective contingency ratios (%) 0.14 (5.84)

63-5-5-1: Summary of NOP

Regarding the probable percentage of changes in foreign exchange rates the value at risk for investments in

shares and other investments having market value is as follows:

2017/18 2016/17

Probable changes in market value

(%)


Probable changes in market value

(%)


USD (+11,-10) (15,857,352) (+12,-11) 32,360,594

EUR (+11,-11) (48,320,526) (+11,-10) (29,060,693)

GBP (+11,-12) (50,045) (+10,-12) (467,721)

AED (+13,-13) (67,968,132) (+14,-13) (59,551,204)

JPY (+11,-12) (20,317,767) (+10,-10) (11,052,470)

CHF (+12,-12) (1,579,113) (+12,-11) (156,441)

TRY (+11,-10) (881,997) (+11,-14) 219,976

CNY (+12,-11) (48,831,993) (+13,-13) (38,417,088)

KRW (+13,-10) (13,230,826) (+11,-10) (1,420,437)

RUB (+11,-12) (1,485,365) (+10,-11) (937,742)

OMR (+11,-13) (128,266) (+12,-12) (98,644)

INR (+12,-11) (4,961,924) (+11,-12) (4,299,192)

THB (+10,-10) 0 (+11,-10) 0


IRRm

IRRm

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63-5-7- Gap analysis of assets and liabilities sensitive to profit rate (current period)

2017/18

less than 1 month

1 to 3 months


one to five years


Non-sensative to profit

rate

Assets

Cash 73,948,428 0 0 0 0 0

dues from banks and other financial institutions 23,907,158 0 0 0 0 0


Credit facilities and dues from govermental entities 0 0 0 0 0 0


Investment in shares and securities 16,646,262 0 0 0 0 0

dues from subsidiaries and associates 2,084,069 0 0 0 0 0




legal deposit 64,315,225 0 0 0 0 0

Other assets 0 0 0 0 58,006,948 0

299,384,186 150,512,581 172,991,260 109,963,125 119,326,533 0

Liabilities

dues to banks and other financial institutions 38,563,382 0 0 0 0 0


Dividend payable 165,040 0 0 0 0 0

Profit paid on term investment deposits 7,417,588 0 0 0 0 0


Provisions and other debts 104,615,939 0 0 0 0 0

Term deposits 64,907,471 109,915,276 271,005,806 60,712,654 95,685,287 0


Total equity 0 0 0 0 61,827,118 0


Gap 46,352,642 40,597,305 (98,014,546) 49,250,471 (38,185,872) 0

Accumulated Gap 46,352,642 86,949,947 11,064,599 38,185,872 0 0

IRRm



63-6- Operational Risk

63-6-1- Operational Risk definition

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, and systems,

or from external events.

63-6-2- Executive departments of operational risk management

Operational risk is managed by Risk Management Department with the cooperation of Inspection, Internal

Audit and other related departments through continuous supervision and on site and off site inspections at

branch level.

63-6-3- Proactive actions for preventing intentional and unintentional errors

Based on predetermined patterns and automatic recording in core banking, operational risk has been de-

creased significantly. Also, internal controls has been devised with cooperation of Internal Control Analysis

Committee and Risk Management Department and other related departments.

63-6-4- Operational risk measurement

In order to monitor operational risk continuously, operational loss amounts and minimum required capital are

calculated as well as other key indices. (Also calculation of required capital in base method is subject to the

definition of business lines, and presentation of financial statements on operating loss amount is subject to

finalization of Enterprise Risk Management System).

63-6-5- Operational risk control and monitoring mechanism

Risk management department reports trends and indices in determined intervals to Risk Management

Sub-committees. The results will be sent to Risk Management Supreme Committee and after investigations

and required corrections send them to the board. Finally the board will decide on cases based on Supreme

Committee's recommendations. The ratified items will be notified to whole bank.

63-6-6- Minimum Capital requirement for operational risk

Value at risk is calculated as follows:

measurement method Value at risk (operational risk)

Basic Approach 415,142

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63-7- Capital management

63-7-1- Capital base

2017/18 2016/17

Tier 1 capital

Capital after deduction of revaluation amount 50,400,000 50,400,000

Share premium 0 0

legal reserve 11,609,848 11,609,848

Contingency reserve 3,869,949 3,869,949

Other reserves 0 0

Share premium 0 0

Retained earnings/(loss) (4,052,679) (6,385,507)

Total Tier 1 capital before regulatory adjustment 61,827,118 59,494,290

lesss : Regulatory Adjustment

treasury share

Bank's shares purchased by subsidiaries ( In IPO or capital increase process)

Intangible assets (8,669,925) (6,246,723)

mutual investment in stock of credit institutions or non-affiliated financial entities 0 0

Investment of More than 10 % of the bank's Tier 1 capital in stock of credit institutions or financial entities (less than 10 % of their total stock) 0 0

Investment of More than 10 % of the bank's Tier 1 capital in stock of credit institutions or financial entities (more than 10 % of their total stock) (8,018,032) (7,672,950)

Investment in non-financial subsidiaries (2,215,330) (2,215,330)

Other regulatory adjustments 0 0

Total regulatory adjustments (18,903,287) (16,135,003)

Tier 1 capital after deduction of regulatory adjustments 42,923,831 43,359,287

Tier 2 capital

Issuance of debt securities and their premium and other liabilities by credit institutions 0 0

General provision of doubtful debts up to 1.25% total risk weighted assets 9,339,106 7,250,015

Adjusted amount of revaluation of fixed assets, stock and securities 0 0

Total Tier 2 capital 9,339,106 7,250,015

lesss :

Excess of Tier 2 capital from Tier 1 capital

Tier 2 capital acceptable for capital base 9,339,106 7,250,015

Capital Base 52,262,937 50,609,302

Effective Capital Base 72,517,417 72,517,417

IRRm



63-7-2- Capital allocation

2017/18 2016/17

Balance sheet Items Amount Conversion Factor (%)

Adjusted Amount

Risk Coefficient

(%)

Risk Weighted Assets and

CommitmentsCapital Charge



Cash 6,392,138 100 6,392,138 0 0 0 0 0

legal deposit 64,315,225 100 64,315,225 0 0 0 0 0

dues from CBI 4,747,070 100 4,747,070 0 0 0 0 0

Securities issued by CBI 0 100 0 0 0 0 0 0

dues from banks and other financial institutions with Capital adequacy ratio of greater than or equal to 8 percent

0 100 0 20 0 0 0 0

dues from banks and other financial institutions with Capital adequacy ratio between 4 to 8 percent

19,483,854 100 19,483,854 50 9,741,927 779,354 2,035,504 162,840

dues from banks and other financial institutions with Capital adequacy ratio between 2 to 4 percent

67,232,523 100 67,232,523 80 53,786,018 4,302,881 34,697,234 2,775,779

dues from banks and other financial institutions with Capital adequacy ratio of less than 2 percent

0 100 0 100 0 0 0 0

dues from banks and other financial institutions without audited financial statements for more than 2 years

0 100 0 100 0 0 0 0

dues from government 0 100 0 20 0 0 511,439 40,915

dues from non-governmental entities 0 100 0 100 0 0 0 0

Credit facilities principle (Mudarabah and Musharakah) dues from stock exchange listed companies

8,020,706 100 8,012,364 150 12,018,546 961,484 17,273,872 1,381,910

Credit facilities principle (Mudarabah and Musharakah) dues from other entities

486,848,625 100 486,342,285 200 972,684,569 77,814,766 650,794,363 1,381,910

Non-commerical investment in stock exchange listed companies 4,556,722 100 4,556,722 300 13,670,166 77,814,766 13,094,204 52,063,549

Non-commerical investment in other entities 1,538,842 100 1,538,842 400 6,155,368 1,093,613 9,713,675 1,047,536

Cost of non-commercial investment in other financial institutes or financial entities which is less than 10 percent of their share and less than 10 percent of bank Tier 1 Capital

977,131 100 977,131 300 2,931,394 492,429 3,343,515 777,094

Cost of non-commercial investment in other financial institutes or financial entities which is less than 10 percent of their share and more than 10 percent of bank Tier 1 Capital

0 100 0 300 0 234,511 0 267,481

Cost of non-commercial investment in other financial institutes or financial entities which is more than 10 percent of their share

1,530,393 100 1,530,393 300 4,591,180 0 130,724 0

Real estate credit facilities 461,186 100 385,562 50 192,781 367,294 1,241,842 10,458

Other credit facilities up to IRRm 1000 2,165,078 100 2,152,510 75 1,614,383 15,422 357,545 99,347

Other credit facilities between IRRm 1000 and IRRm 5000 1,008,994 100 683,307 100 683,307 129,151 14,650 28,604

Other credit facilities between IRRm 5000 and IRRm 10000 62,145 100 52,119 150 78,179 54,665 106,101 1,172

Other credit facilities more than IRRm 10000 40,535,324 100 39,083,198 200 78,166,396 6,254 78,151,523 8,488

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Over due debts with special provision of less than 20 percent 9,781,894 100 9,781,894 150 14,672,841 6,253,312 12,166,280 6,252,122

Over due debts with special provision of between 20 and 50 percent

8,670,819 100 8,670,819 100 8,670,819 1,173,827 7,189,584 973,302

Over due debts with special provision of more than 50 percent 8,491,880 100 8,491,880 50 4,245,940 693,666 3,520,606 575,167

Securities issued by non-governmental entities 0 100 0 100 0 339,675 0 281,648

dues from related parties and entities 2,084,691 100 2,084,691 100 2,084,691 0 984,406 0

Other accounts receivable 3,329,270 100 3,329,270 100 3,329,270 166,775 2,105,948 78,752

Tangible fixed assets 20,756,293 100 20,756,293 100 20,756,293 266,342 18,266,812 168,476

Other assets 58,006,950 100 58,006,950 100 58,006,950 1,660,503 35,858,440 1,461,345

dues from other countries with credit rating between AA- and AAA+ n

0 100 0 0 0 4,640,556 0 0

dues from other countries with credit rating between A- and A+ n 0 100 0 20 0 0 0 0

dues from other countries with credit rating between BBB- and BBB+ n

0 100 0 50 0 0 0 0

dues from other countries with credit rating between B- and BB+ n

0 100 0 100 0 0 0 0

dues from other countries with credit rating less than B- n 0 100 0 150 0 0 0 0

dues from other countries without credit rating 0 100 0 100 0 0 0 0

dues from multilateral development banks with credit rating between AA- and AAA+ n

0 100 0 20 0 0 0 0

dues from multilateral development banks with credit rating between A- and A+ n

0 100 0 50 0 0 0 0

dues from multilateral development banks with credit rating between BBB- and BBB+ n

0 100 0 50 0 0 0 0

dues from multilateral development banks with credit rating between B- and BB+ n

0 100 0 100 0 0 0 0

dues from multilateral development banks with credit rating less than B- n

0 100 0 150 0 0 0 0

dues from multilateral development banks without credit rating

0 100 0 50 0 0 0 0

dues from other countries financial institutes or financial entity with credit rating between AA- and AAA+ n

0 100 0 20 0 0 0 0

dues from other countries financial institutes or financial entity with credit rating between A- and A+ n

0 100 0 50 0 0 0 0

dues from other countries financial institutes or financial entity with credit rating between BBB- and BBB+ n

0 100 0 100 0 0 0 0

dues from other countries financial institutes or financial entity with credit rating between B- and BB+ n

0 100 0 100 0 0 0 0

dues from other countries financial institutes or financial entity with credit rating less than B- n

0 100 0 150 0 0 0 0

dues from other countries financial institutes or financial entity without credit rating

0 100 0 100 0 0 0 0

2017/18 2016/17


Adjusted Amount

Risk Coefficient

(%)





IRRm



dues from other countries legal entities with credit rating between AA- and AAA+ n

0 100 0 20 0 0 0 0

dues from other countries legal entities with credit rating between A- and A+ n

0 100 0 50 0 0 0 0

dues from other countries legal entities with credit rating between BB- and BBB+ n

0 100 0 100 0 0 0 0

dues from other countries legal entities with credit rating less than BB-n

0 100 0 150 0 0 0 0

dues from other countries legal entities without credit rating 0 100 0 100 0 0 0 0

Off Balance sheet ItemsRevocable commitments 0 0 0 100 0 0 0 0

Unrevocable commitments after adjustment with maturity less than a year

0 20 0 100 0 0 0 0

Unrevocable commitments after adjustment with maturity more than a year

0 50 0 100 0 0 0 0

Commitments for L/Cs with collaterals 102,298,079 50 51,149,039 100 51,149,039 0 37,411,269 0

Commitments for L/Cs without collaterals 0 50 0 100 0 0 0 2,992,902

Commitments for L/Gs after adjustments 48,395,635 50 24,197,818 100 24,197,818 4,091,923,159,465 19,779,582 0

Commitments for transactional contracts 0 50 0 100 0 1,935,825 0 1,582,367

other commitments 332,602 100 332,602 100 332,602 0 273,979 0

Total risk weighted assets and commitments for credit risk 972,024,070 894,286,500 1,343,760,476 4,092,104,356,538 949,023,096 74,413,164

2017/18 2016/17


Adjusted Amount

Risk Coefficient

(%)





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63-7-3- Total of market risk-weighted assets at the financial year ended March 20, 2018 equals to

IRRm 19,788,349

2017/18 2016/17

Description Amount Risk Coefficient(%)

Capital Charge Amount Risk

Coefficient(%)Capital Charge

Commercial stocks 4,556,722 8 364,538 4,364,735 8 349,179

Specific risk for commercial securities 19,559 5 978 209,986 5 10,499

General risk for commercial securities with remaining maturity less than a month 0 0 0

General risk for commercial securities with remaining maturity Between 1 to 3 months 0 20 20

General risk for commercial securities with remaining maturity Between 3 to 6 months 0 40 40

General risk for commercial securities with remaining maturity Between 6 to 12 months 0 70 103,359 0.7 724

General risk for commercial securities with remaining maturity Between 1 to 2 years 19,559 1.25 244 35,480 1.25 444

General risk for commercial securities with remaining maturity Between 2 to 3 years 0 1.75 0 65,178 1.75 1,141

General risk for commercial securities with remaining maturity Between 3 to 4 years 0 2.25 5,970 2.25 134

General risk for commercial securities with remaining maturity Between 4 to 5 years 0 2.75 2.75





General risk for commercial securities with remaining maturity more than 20 years 0 6 6

The sum of the net short positions or the sum of the net long positions, whichever is the greater

15,216,347 8 1,217,308 12,194,317 8 975,545

Total capital charge for market risk 1,583,068 1,337,665

Coefficient 12.5 12.5

Total risk weighted assets for market risk 19,788,349 16,720,818

IRRm



63-7-4- Total of operational risk-weighted assets at the financial year ended March 20, 2018 equals to

IRRm 5,189,272

2017/18 2016/17

Description Amount Risk Coefficient (%)

Capital Required

for coverage operational

risk

Amount Risk Coefficient (%)

Capital Required

for coverage operational

risk

Average gross income of past three years 2,767,612 15 415,142 6,638,231 15 995,735

Coefficient 12 12

Total risk weighted assets for operational risk 5,189,272 12,446,683

63-7-5- Capital adequacy ratio

Capital adequacy ratio at the finantial year ended 20 Mar, 2018 is 3.82%.

63-7-6- Leverage ratio

leverage ratio is total assets to equity and for the finantial year ended 20 Mar, 2018 equals to 7.26.

2017/18 2016/17

Capital base 52,262,938 50,609,303

Risk weighted assets (Credit Risk) 1,343,760,476 949,023,096

Risk weighted assets (Market risk) 19,788,349 16,720,817

Risk weighted assets (Operational Risk) 5,189,272 12,446,683

Total risk weighted assets 1,368,738,097 978,190,596

Tier 1 Capital ratio 3.14% 4.43%

Capital Adequacy ratio 3.82% 5.17%

2017/18 2016/17

Total equity 61,827,118 59,494,290

Total assets 852,177,685 649,899,350

Leverage ratio 7.26 9.15

IRRm

IRRm

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64- Operating sectors

64-1- Section categorizations basis

Bank Pasargad business lines are retail and corporate banking.

64-2- Information on reportable operating sectors

All reportable information of related business lines are presented in the following table. Profit before tax is used

as a performance criterion.

Collaborative banking

Interest-free banking

International banking

Electronic banking

Other activities Total

Income from credit facilities and deposits 88,165,741 8,972,388 97,138,129

Cost for profit of deposits (81,047,257) (4,115,738) (85,162,995)

Net income from credit facilities and deposits 7,118,484 4,856,650 11,975,134

Fee and commission income 1,752,673 23,647 761,531 1,399,138 3,936,989

fee and commission cost (242,288) - (1,880,352) (2,122,640)

Net fee and commission income 1,510,385 23,647 761,531 (481,214) 1,814,349

Net investment profit 784,092 784,092

Net foreign exchange transactions profit (loss) 13,830,359 13,830,359

Other operational income 435,708 435,708

Net incom from outside the bank 784,092 13,830,359 435,708 15,050,159

Net Income from bank's sections 8,628,869 23,647 5,618,181 (481,214) 0 13,789,483

Total income from bank's operating section 9,412,961 23,647 19,448,540 (481,214) 435,708 28,839,642

Doubtful debt expenses for operating section (16,522,253) 0 (16,522,253)

Other Direct cost attributable to operating section 0 0 0

Profit/(loss) of each section before general costs unattributable (7,109,292) 23,647 19,448,540 (481,214) 435,708 12,317,389

General costs Unattributable to section (9,976,765)

Profit before tax 2,340,624



64-3- Geographical concentration of major items of assets, liabilities and income

In the present of geographical information, major items of assets are presented based on the place of their loca-

tion and income and liabilities are presented based on the residency of the other party.

2017/18

IRAN Total

Assets:

Cash 73,948,428 73,948,428

dues from banks and other financial institutions 23,907,158 23,907,158

dues from government 0 0

Credit facilities and dues from governmental entities 0 0

Credit facilities and dues from non-governmental entities 589,183,411 589,183,411

Investment in shares and securities 16,646,262 16,646,262

dues from subsidiaries and associates 2,084,069 2,084,069

legal deposit 64,315,225 64,315,225

Tangible fixed assets 12,086,368 12,086,368

Intangible assets 8,669,925 8,669,925

Total 790,840,846 790,840,846

Liabilities:

dues to banks and other financial institutions (38,563,382) (38,563,382)

Customers deposit (36,945,383) (36,945,383)

Debt Securities 0 0

Term deposits (602,226,494) (602,226,494)

Profit of term deposits payable (7,417,588) (7,417,588)

Total (685,152,847) (685,152,847)

Income 116,125,277 116,125,277

65- RELATED PARTY TRANSACTIONS

65-1- Changes in majority shareholders (more than 1%)

There is no changes to the majority shareholder (more than 1%) during the financial year 2017/18.


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65-2 Bnak's Pasargad transactions with related parties

Related Party Relationship Subject of Transaction

Is subject to article 129 of thecommer-cial code?

Method ofdetermin-ing price

Amount(IRRm)

Gross profit/(Loss)

Balance receivable/ (Payable) 20-Mar-2018

Middle East Mines & Mineral Industries DevelopmentHolding Co.

Shareholder andboard member

Bank’s share of 2015/2016 financial year dividends

Yes

- 6,587 -

4,074,169Credit Facilities Late Payment Penalties Relief Board 32,018 32,018

Credit facilities paid Board 92,201 5,274

Settlement of facilities - 2,336,975 314,648

Mabna Khavar Miyaneh Co. Shareholder andboard member

Credit facilities paidYes

Board 5,518,014 97,7825,615,873


Pasargad Leasing Co. Shareholder andboard member

Debt settlement as part of Bank’s share to Pasargad Leasing capital increase up to IRR 765 bn

Yes

- 63,650 -

854,121Credit Facilities Late Payment Penalties Relief Board 27,110 27,110


Settlement of facilities - 780,000 75,658

Pasargad Machinery andEquipment Leasing Co.


Credit Facilities Late Payment Penalties Relief

Yes

Board 26,162 26,162

4,400,139Credit facilities paid Board 100,000 15,842


Pasargad Arzesh Afarinan Co. Shareholder andboard member - Yes - - - 0

Pasargad Aryan ICT Co.(FANAP)


Sale of 210 used ATM units to FANAP

Yes

- 33,600 -

2,146,775

On account paid - 80,000 -

Settlement of on account paid - 43,586 -

Credit Facilities Late Payment Penalties Relief Board 4,706 4,706

Issued L/Gs Board 53,792 703

Settlement of Issued L/Gs - 43,478 -

Credit facilities paid Board 1,132,300 37,233


Pasargad Insurance Co. Shareholder andboard member

Transfer of Fatemi building document to PasargadInsurance

Yes

- 33,235 -

8,695Bank’s share of 2016/2017 financial year dividends - 71,085 -

Credit facilities paid Board 43,039 184

Settlement of facilities - 265 -

Pasargad E-payment Co. Shareholder andboard member

Settlement of 34 units merchandise

Yes

- 19,227 -

561,475Credit facilities paid Board 100,000 2,175


Bank Pasargad Brokerage Co. Shareholder andboard member

Debt settlement as part of Bank’s share to Pasargad Brokerage capital increase up to IRR 180 bn

Yes

- 17,150 -

22,877Issued L/Gs Board 13,488 313


Pasargad Foreign ExchangeCo.


Settlement of Bank’s share of 2016/2017 financialyear dividends Yes - 54,000 - (12,201)

Iranian Reinsurance Co. Shareholder andboard member Bank’s share of 2016/2017 financial year dividends Yes - 19,900 - 0

Tamin Atieh Sarmaye EnsaniCo.

Mutual BoardMember - Yes - - - 0

Nozhan Sanat Atisaz Co. Mutual BoardMember Settlement of sales fees for properties owned Yes - 15,529 - 0

Bank Pasargad FinancialService Co.

Mutual BoardMember Settlement of facilities Yes - 400 52 0

Dadepardazan TadbirSarmaye Co.

Mutual BoardMember - Yes - - - 0


IRRm


Sirjan Iranian Co. Mutual BoardMember

Issued L/Gs

Yes

Board 503,686 6,636

20,142,068Settlement of Issued L/Gs - 175,088 -


Settlement of facilities - 19,495,229 1,811,220

Pars Aryan Investment Co. Mutual BoardMember


Yes

Board 22,055 22,055

1,660,819Credit facilities paid Board 1,625,774 35,045





Amount(IRRm)

Grossprofit /(Loss)


Rahbord Sarmaye IranianCo.

Member of thegroup

Settlement of facilitiesNo

- 531,417 34,852338,379


Padideh Taban Trade Co. Under the control of the mainmanagers

Settlement of facilities

No

- 2,046,801 185,525

3,065,050


Poshesh Tamin AtiehBuilding Co.

Under the control of the mainmanagers


No

- 5,594,826 507,284

5,172,347


No-Andish Toseee Matin Co. Under the control of the mainmanagers


No

- 9,481,105 766,490

5,578,052


Tamin Maskan Co. Under the control of the mainmanagers


No

Board 260,191 260,191

20,560,806Settlement of facilities - 11,795,442 2,231,241


pasargad group VentureCapital


on account paid

No

- 50,000 -

194,681Settlement of facilities - 138,949 10,436


Arzesh Pardaz Aryan Co. Member of thegroup

Issued L/GsNo

Board 160 477,367


Chakad Tavangary Co. Under the control of the mainmanagers

- No - - - 12,500

Pishgan Mihan NegarTrade Co.



- 5,600,970 434,9564,359,946



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Datis Aryan Qheshm Co. Mutual BoardMember

Debt Settlement

No

- 37,662 -

401,018

on account paid - 132,000 -

Settlement of on account paid - 132,000 -

Credit Facilities Late Payment Penalties Relief Board 140 140

Issued L/Gs Board 16,450 92




Adonis Electronic ServiceCo.


Issued L/Gs

No

Board 44,244 529

134,209Settlement of Issued L/Gs - 28,180 -



Pasargad Management & Human Capital Research andDevelopment Institute Co.


- No - - - 13,204

Modaberan Tejarat Iraninan Co.



- 65,500 16,807822,353


Aryan Pasargad Construc-tion Management Co.


Issued L/Gs

No

Board 14,420 302

5,456,167Settlement of Issued L/Gs - 4,730 -



Aryan Pasargad Construc-tion Management Co.

Member of thegroup

Issued L/GsNo

Board 10,755 112(1,452)


Pardazesh Electronic RashedSamane Co.



No

Board 431 431

118,130Issued L/Gs Board 32,500 624




Is subject to article 129 of the commercialcode?


Amount(IRRm)

Grossprofit /(Loss)



IRRm



Is subject to article 129 ofthe commer-cial code?

Methodof deter- miningprice

Amount(IRRm)

Grossprofit /(Loss)

Balance receivable/(Payable) 20-Mar-2018

Pasargad Energy Development Co. Member of the groupIssued L/Gs

NoBoard 220,490 1,764

12,500Settlement of Issued L/Gs - 158,217 -

Pasargad Mass Development Co. Member of the groupSettlement of facilities

No- 1,256,731 185,659


Pasargad Ayande Negar Trade Manage-ment Co.

Under the control of themain managers

Sale of 13,07 % as part ofBank’s share in MAPNA Co.

No

- 849,488 -

2,485,314

Debt settlement of 13,07 % as part of Bank’s share inMAPNA Co.

- 849,488 -



Etick Pars Smart Technology Develop-ment Co.

Under the control of themain managers - No - - - 218,866

Iranian Babak Copper Co. Mutual Board Member

Issued L/Gs

No

Board 32,787 629

6,596,773Settlement of facilities - 5,942,511 587,818


Nezam Mohandesi Aryan ConstructionManagement Co.

Under the control of themain managers


- 836,105 84,835775,081


Naftanir Industries Co. Member of the groupSettlement of facilities

No- 29,770,472 2,637,870


Saman Tejarat Tadbir Iranian Member of the group

Transfer of Ehdaye Ozv,Mojab Touba & Amin atiye nikoo heritage fund to Saman TejaratTadbir Iranian Co. No

- 73,500 -9,913,122


Shams Pasargad Power Generation Co.(Tabesh) Member of the group


- 2,400,172 342,4113,155,349


Hafez Andisheh Mad Co. Member of the group

.Transfer of Miras heritage fundto Hafez Andisheh Mad Co No

- 49,999 -3,021,593


Padide Taban Saramad Co. Member of the group Credit facilities paid No Board 1,500,000 54,812 2,705,418

Miras Rastin Pars Co. Member of the group

Transfer of National wrestlingfund No

- 60,600 -2,716,123


Payam Avaran Modirate Iranian Co. Member of the group Settlement of facilities No - 2,283,056 189,212 2,276,748

Kashefan No Andish Pars Co. Member of the group Settlement of facilities No - 1,899,183 234,541 2,181,211

Petro Kariz Omid Kish Co. Member of the group - No - - - 1,657,707

Tadbir Sazan Saramad Co. Member of the group Settlement of facilities No - 31,100 1,668 1,179,284

Pars Behin Oil Refinery Co. Member of the group - No - - - 1,117,721

Pasargad Trade Co. Member of the group Settlement of facilities No - 1,697,472 138,499 1,034,859


IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

Ostovan Kish Drilling Co. Member of the group Settlement of facilities No - 500,000 46,603 651,920

Qeshm Movaled Co. Member of the group Settlement of facilities No - 1,000,000 84,493 601,570

Sivan Tadbir Trade Co. Member of the group Settlement of facilities No - 416,253 35,095 365,749

Pasargad Aryan Services Co. Member of the group Credit facilities paid No Board 20,000 3 92,497

Petro Danial Kish Co. Member of the group Settlement of facilities No - 57,918 3,199 20,562

Niroo Gostar Sirjan Co. Member of the group Settlement of facilities No - 20,000 937 10,858

Zarand Iranian Steel Co. Member of the group Settlement of facilities No - 46,832,861 4,160,871 37,586,145

Bootiyaye Iranian Steel Co. Member of the group Settlement of facilities No - 3,971,182 422,997 12,037,906

Middle East Mines & Mineral Renovation& Development Co. Member of the group


No

- 1,031,074 135,311

2,176,436


MANA Iranian industries Renovation &Development Structure Co. Member of the group Settlement of facilities No - 1,336,663 110,960 796,677

Ferosilis Gharb Pars Co. Member of the group Settlement of facilities No - 947,683 74,667 557,511


Is subject to article 129 ofthe commer-cial code?


Amount(IRRm)

Grossprofit /(Loss)

Balance receivable/(Payable)20-Mar-2018


IRRm





Amount(IRRm)

Grossprofit /(Loss)

Balancereceivable/ (Payable) 20-Mar-2018

Karavaran Middle East Industrial Co. Member of the group - No - - - 99,474

Pouya Andishan Sarzamin Mad Co. Member of the group Settlement of facilities No - 6,746,523 558,345 4,143,023

Andishehnegar Pasargad Trade DevelopmentCo. Member of the group

.Sale of 16.46 % as part of Bank’s sharein Mabna Khavarmianeh C

No

- 1,070,021 -

3,245,658 .Debt settlement of 16.46 % as sale of Bank’s share in Mabna KhavarmianehCo

- 1,070,021 -


Tadbirgaran Pasargad Co. Member of the group

.Sale of 14.31 % as part of Bank’s sharein Mabna Khavarmianeh Co

No

- 930,581 -

3,114,581 .Debt settlement of 14.31 % as part of Bank’s sale of share in MabnaKhavarmianeh Co

- 930,581 -


Pasargad Aryan Development of Communication Technology Co. Member of the group Settlement of facilities No - 1,877,431 164,667 1,870,546

Darik Investment Development Co. Member of the group Settlement of facilities No - 387,500 37,992 331,235

FANAP Co. Member of the group

on account paid

No

- 15,000 -


Credit facilities paid Board 23,500 188

Magnetic Karan Co. Member of the group Settlement of facilities No - 8,800 791 30,778

Hashtom Construction Co. Member of the group - No - - - 4,711,921

Faraz Pendaran Arya Mouj Co. Member of the groupSettlement of facilities

No- 456 9


Barid Fanavar Aryan Co. Member of the groupSettlement of facilities

No- 181,978 14,526


SHENASA Co. Member of the groupon account paid

No- 50,000 -


Arna Noavar Behkavan Co. Member of the group Settlement of facilities No - 9,000 1,324 9,327

Tosee Tejarat Qarbe Iranian Co. Member of the group Settlement of facilities No - 13,562,303 935,120 9,197,666

Nasim Tejarat Co. Member of the group Settlement of facilities No - 696,538 8,859 7,192,934

Andishe Tejarat Soroush Sahand Co. Member of the group Settlement of facilities No - 1,800,297 5,327 5,965,518

Zarin Pasargad Co. Member of the group - No - - - 5,194,163

Dana Gostar Caspian Co. Member of the group - No - - - 4,498,816

Tadbirgaran Pishro Paydar Zarin Co. Member of the group Settlement of facilities No - 1,160,440 3,434 4,337,167

Noandish Pasargad Co. Member of the group - No - - - 4,250,682

Kala Madar Iranian Trade Co. Member of the group - No - - - 3,788,619

Ayande Negar Trade Co. Member of the group - No - - - 3,520,214

Noavaran Khavarmianeh Co. Member of the group - No - - - 3,331,634

Tadbirgaran Rastin Co. Member of the group - No - - - 3,137,883


IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

Arman Aryan Project Co. Member of the group - No - - - 3,004,910

Armaghan Trade Co. Member of the group - No - - - 2,724,101

Armannegar Khavarmianeh Co. Member of the group - No - - - 2,637,288

Zarintaab Trade Co. Member of the group - No - - - 2,551,138

Maskan Paydar CO. Member of the group - No - - - 2,490,629

Khavarmianeh Development and Trade Co. Member of the group - No - - - 2,377,834

Pouyaye Iranian Co. Member of the group - No - - - 1,697,140

Tamin Atieh Trade Development Co. Member of the group - No - - - 307,581

Pishro Kalaye Gharb Co. Member of the group - No - - - 124,971

Binesh Gostar Trade Development Co. Member of the group - No - - - 35,846

tejarat va tosee mehrafarinan Vandad Co. Member of the group - No - - - 126,122

Kheradpishgane Aryaii Co. Member of the group Settlement of facilities No - 24,000 2,197 28,957

Noavaran Trade Co. Member of the group Settlement of facilities No - 38,823 2,883 16,076

Parsgostar Novin Co. Member of the group Settlement of facilities No - 14,541 1,295 8,810

Pasargad Aryan Development of Communica-tion Technology Co. Member of the group Settlement of facilities No - 9,000 1,324 8,542




Amount(IRRm)

Grossprofit /(Loss)

Balancereceivable/(Payable) 20-Mar-2018

66- RETAINED EARNINGS AT THE END OF THE YEAR

Due to the aggregate loss of IRRm 4.052.679 for the financial year ended 19 March 2018, bank does not have

dividend.


IRRm


67- Statement of qard-al-hasan operations

67-1- Balance of qard-al-hasan resources and allocations

Note 2017/18 2016/17

qard-al-hasan resources:

qard-al-hasan savings deposits - IRR 23-2 896,005 694,682

Total qard-al-hasan resources: 896,005 694,682

Credit facilities and receivables from non-governmental entities (before reserves):

Ordinary credit facilities 285,966 170,770

Staff credit facilities 2,075,735 1,677,989

Total qard-al-hasan allocations (2,361,701) (1,848,759)

legal deposit of Qard-al-hasan deposits (89,000) (63,813)

Liquidity reserve of Qard-al-hasan deposits(5%) (44,800) (34,734)

Excess/(Shortage) of resources over qard-al-hasan allocations (1,599,496) (1,252,624)

67-2- Net commission of qard-al-hasan operations

2017/18 2016/17

Commission received from qard-al-hasan credit facilities 23,647 18,446

Net Commission received from qard-al-hasan Operations 23,647 18,446


IRRm

IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

67-3- Classification of qard-al-hasan credit facilities in basis of subject:

67-4- Classification of qard-al-hasan credit facilities in basis of type of customer:

2017/18 2016/17

Marriage 237,050 113,568

Staff 2,075,735 1,677,989

Penitentiary prisoners 639 23,961

Other 48,277 33,241

2,361,701 1,848,759

2017/18 2016/17

Individuals 2,361,700 1,848,759

legal entities - cooperative 0 0

legal entities - others 0 0

2,361,700 1,848,759


IRRm

IRRm


68- RELATED PARTIES' FACILITIES AND COMMITMENTS

No Customer name ID

Company Profile

Relation type

Ownership Percentage

Net Balance of Facilities Net

balance ofcommit- ments

Net balance of facilitiesand com-mitments

Collateral

Regis- tration

no.

Registrationdate

Regis- tration

placeDirect Indirect Current Overdue Type Value

1 Seyyed KazemMirvalad 3932514327 Management --- --- 0 0 30 30 Promissory Note 162

2 Kamran Ekhtiar 1284437752 ----- ----- ----- Management --- --- 488 0 0 488 check 2,142

3 Arsalan Amiri 3251439138 ----- ----- ----- Management --- --- 1,690 0 0 1,690 check 2,709

4 Abdol Reza Tiznobeik 3874576655 ----- ----- ----- Management --- --- 914 0 0 914 check 2,313

5 Alireza HadianHamedani 1751630013 ----- ----- ----- Management --- --- 5,171 0 0 5,171 Property and

check 7,887

6 Neda Khazaei 0079268684 ----- ----- ----- Relatives --- --- 1,723 0 0 1,723 Property andcheck 1,712

7 Seyyed HosseinMirvalad 0013679015 ----- ----- ----- Relatives --- --- 92 0 0 92 check 140

8

Middle East Mines & Mineral Industries DevelopmentHolding Co.

10103500247 310643 December 8,2007 Tehran Management

Position --- --- 2,658,960 92,201 125,814 2,876,975

check, Promisso- ry Note, Depositand Binding Con-tract

17,370,047

9 Pars Aryan Invest-ment Co. 10102347321 192796 October 2,

2002 Tehran Shareholder --- --- 1,625,774 0 0 1,625,774 check and Bind-ing Contract 3,899,893

10 Pasargad InsuranceCo. 10103270201 290070 February 7,

2007 Tehran Member of the group 20% --- 0 0 8,555 8,555 Deposit 52,340

11 Pasargad AryanICT Co. 10103807145 263296 January 15,

2006 Tehran Member of the group 49% --- 1,599,021 235,200 109,216 1,943,437check, Promis-

sory Note andBinding Contract

3,488,305

12 Bank PasargadE-Payment Co. 10103105417 265088 February 21,

2006 Tehran Member of the group 30% --- 553,851 0 4,000 557,851check, Promis-


2,735,173

13 Pasargad Leasing Co. 10102822636 241515 February 21,2005 Tehran Member of the group 67% --- 728,000 23,450 7,528 758,978 check and Bind-

ing Contract 976,991

14 Datis Aryan QeshmCo. 14000256403 3328 January 18,

2012 Qeshm Member of the group --- 36.75% 226,782 0 3,671 230,453check, Promis-


430,917

15 Adonis ElectronicService Co. 10320848519 426137 May 21, 2012 Tehran Management

Position --- --- 121,199 0 102,691 223,890check, Promis-

sory Note andProperty

1,072,842

16 Pasargad Machinery and EquipmentLeasing Co.

10102339790 192021 September 10,2002 Tehran Member of the group 18% --- 3,200,000 0 0 3,200,000

Property , Stock and BindingContract

5,685,043

17 Dadepardazan TadbirSarmaye Co 10320145599 362524 January 5, 2010 Tehran Member of the group --- 48.98% 0 0 100 100 Deposit 600

18 Aryan Pasargad ConstructionManagement Co.

10103627783 325818 May 26, 2008 Tehran Member of the group --- 65.66% 3,841,826 6,250 1,744 3,849,820 check and Bind-ing Contract 6,434,886

19 Pasargad AyandeNegar Trade Man-agement Co.

10103042357 267436 March 15, 2006 Tehran ManagementPosition --- --- 1,693,327 0 0 1,693,327 check and Bind-

ing Contract 5,443,523

20 Pasargad ArzeshAfarinan Co. 1010281941 263699 January 10,

2006 Tehran Member of the group 97.99% --- 1,356,200 0 0 1,356,200 check and Bind-ing Contract 5,251,576

21 Bank PasargadBrokerage Co. 10780103032 6889 June 12, 2006 Arak Member of the group 49% --- 22,500 0 4,536 27,036

check, Promis- sory Note andBinding Contract

101,078

22 Arzesh Pardaz ArianInvestment Co. 10320481823 397933 February 20,

2011 Tehran ManagementPosition --- --- 66,000 0 29 66,029 check 87,673


IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&uact=8&ved=0ahUKEwjow4KR39HOAhVLWhQKHYq7A1EQFggsMAI&url=http%3A%2F%2Fwww.pedc.ir%2F&usg=AFQjCNF-Um6-1ySYW_YGlPQWh7vmn-mZSw&sig2=2L5H5rjid4g0RJOcpnPCMg&bvm=bv.129759880,d.d24





23 Modaberan TejaratIraninan Co. 10103164884 281686 October 9,

2006 Tehran Member of the group --- 97.98% 404,122 0 0 404,122 check and Bind-ing Contract 1,162,240

24 Pardazesh ElectronicRashed Samane Co. 10103682222 337970 August 13,

2008 Tehran Member of the group --- 48.99% 110,320 0 6,921 117,241check, Promis-


342,470

25 Berid FanavarArian Co. 14003966870 650 December 1,

2014 Pardis Member of the group --- 24.50% 164,271 0 27,458 191,729check, Promis-


729,815

26 Datam Kish ICT Co. 1086156000 6168 December 6,2006 Kish Member of the group --- 49.00% 0 0 41 41 check and Prom-

issory Note 488

27 Pasargad Aryan De-velopment CT Co. 14003966870 452182 April 5, 2014 Tehran Member of the group --- 10.09% 1,830,715 0 17,976 1,848,691

check, Promisso- ry Note, Deposit and Binding Contract

4,691,708

28 Liman ConsultantEngineers Co. 10100889871 43627 January 27,

1982 Tehran Member of the group --- 23.46% 0 0 1,178 1,178 check and Prom-issory Note 8,102

29 Chakad TavangaryCo. 10320875530 439631 May 29, 2013 Tehran Member of the group --- 6.80% 0 12,500 0 12,500 ------- 0

30 Pasargad NasimSalamat Co. 14005018760 474218 June 17, 2015 Tehran Member of the group 20% --- 0 500,000 0 500,000 ------- 0

31Pasargad Aryan pay-

ment DevelopmentCT Co.

14005530711 4334 January 12,2016

Arvand FreeZone

Member of the group --- 49.00% 0 0 525 525 check and Prom-issory Note 13,066

Total Commitments and Credit Facilities from Related Parties 20,212,946 869,601 422,013 21,504,560 ------- 59,995,841

No Customer name ID

Company Profile

Relation type

Ownership Percentage

Net Balance of Facilities Net

balance ofcommit- ments

Net balance of facilitiesand com-mitments

Collateral

Regis- tration

no.

Registrationdate

Regis- tration

placeDirect Indirect Current Overdue Type Value


IRRm


69- LARGE EXPOSURES

Row

Name of theBenefi-

ciary

Relation Type Customer Name Registra-tion No.

Net Balance of Facilities and Commitments- IRRm Collateral

Net Balance of Facilities Net Balance of

Commit-ments (3)

Cost of Share

(4)

Total

Type Value- IRRm Performing(1)

Non-Per- forming(2) 1+2+3+4 = 5

1

MID

HCO

Ownership -Management Mabna Khavar Miyaneh Co. 286449 5,518,014 0 0 0 5,518,014 Check 7,219,476

Ownership -Management

Middle East Mines & Mineral Industries Development Holding Co.

310643 3,955,981 92,201 125,814 0 4,173,996 Check, Promissory Note, Deposit andBinding Contract

17,370,046

Ownership -Management Zarand Iranian Steel Co. 333265 36,751,344 0 1,031,420 0 37,782,764

Check, Promissory Note and BindingContract

126,785,287

Ownership -Management Middle East Shining Sun Co. 338505 0 0 238 0 238 Check and Promis-

sory Note 2,506


Iranian Industrial Development and Renovation Construction(MANA)

20343 787,560 0 88,753 0 876,313 Check, Promissory Note, Deposit andBinding Contract

3,347,606

Ownership -Management Iranian Babak Copper Co. 379679 6,140,938 39,543 95,312 0 6,275,793


26,637,891

Ownership -Management Sirjan Iranian Steel Co. 362111 18,543,398 0 90,467 0 18,633,865

Check, Promissory Note, Binding Contract and Rightof Succession

63,596,099


Karvan sanat khavar MiyanehCo. 10947 0 99,474 5,710,727 0 5,810,201 Check 33,431,191

Ownership -Management Bootiyaye Iranian Steel Co. 417235 6,144,942 0 1,343,585 0 7,488,527 Check 23,261,442

Ownership -Management Manasaz Abyek Co. 418 0 0 1,800 0 1,800 Check and Promis-

sory Note 21,594


Middle East Meyar SanatEngineering Co. 363068 0 0 68,599 0 68,599


787,834

Ownership -Management Aftab Derakhshan Khavarmiyane 230104 0 0 160 0 160 Check and Promis-

sory Note 1,920


Middle East Mines & MineralRenovation & development Co. 430823 1,651,859 0 4,958 0 1,656,817


6,614,220

Ownership -Management GMI Hamburg 2010/3238 0 0 43,423 0 43,423 Check, Promissory

Note and Deposit 532,136

Ownership -Management Ferosilis Gharb ars Co. 9150 548,429 0 34,520 0 582,949 Check, Promissory

Note and Deposit 1,255,081

Ownership -Management Pouya Andishan Co. 444354 4,082,234 0 0 0 4,082,234 Check 5,341,830

Ownership -Management Iranian Rahbord Investment CO. 304269 321,719 0 0 0 321,719 Check 420,578

MIDHCO Group Total 84,446,418 231,218 8,639,776 0 93,317,412 ------- 316,626,737



Managem

ent Report


eportFinancial S

tatements &

Notes

LARGE EXPOSURES

Name of the

BeneficiaryRelation Type Customer Name Registra-

tion No.



Commit-ments (3)

Cost ofShare (4)

Total

Type Value- IRRm Performing

(1) Non-Per-

forming(2) 1+2+3+4

= 5

Gera

mi G

roup

Ownership -Management Atlas Khodro Co. 105106 5,009,807 0 9,093 0 5,018,900

Check and CollectingDocuments

11,145,418

Ownership -Management Asan Motor Co. 87015 10,491,321 0 0 0 10,491,321


21,119,606

Ownership -Management Golestan Co. 8000 968,141 0 1,603 0 969,744 Check 2,550,000

Ownership -Management Mehvar Mashin Co. 98937 3,995,951 0 0 0 3,995,951


9,542,164

Ownership -Management Technical Quality System Co. 335557 0 0 1,681 0 1,681

Check and PromissoryNote

18,600

Gerami Group Total 20,465,220 0 12,377 0 20,477,597 ------- 44,375,788

Arz

esh

Afar

inan

Gro

up

Ownership -Management Arzesh Afarinan Co. 263699 1,356,200 0 0 7,447,639 8,803,839 Check and Bind-


Ownership -Management Iranian Saman Trading Co. 432371 6,556,063 0 0 0 6,556,063 Check 12,602,401

Ownership -Management Payam Avaran Iranian Co. 438235 1,900,091 0 0 0 1,900,091 Check 2,900,743

Ownership -Management Kashefan Pars Co. 435233 1,731,915 0 0 0 1,731,915 Check 2,792,200

Ownership -Management Rastin Pars Co. 441595 1,872,744 0 0 0 1,872,744 Check 3,422,314

Ownership -Management Andisheh Mad Co. 441629 2,177,613 0 0 0 2,177,613 Check 3,832,804

Ownership -Management Pouya Energy Co. 364559 0 0 1,252 0 1,252 Check 7,510

Ownership -Management Iranian Trading Co. 281686 404,122 0 0 0 404,122 Check and Bind-



Pasargad Aryan SupportService Co. 287328 92,483 0 0 0 92,483 Check and Bind-



Pasargad Machinery andEquipment Leasing Co. 192021 3,200,000 0 0 54,115 3,254,115

Binding Con- tract, Propertyand Stocks

5,685,043


Pasargad Massive Develop-ment Co. 319762 5,676,281 0 773 0 5,677,054

Check, Promis- sory Note andBinding Contract

12,381,101


International Smart BuildingSolutions Co. 438653 0 0 3,663 0 3,663

Check and PromissoryNote

62,653

Arzesh Afarinan Group Total 24,967,512 0 5,688 7,501,754 32,474,954 ------- 50,303,985

Row

2

3



LARGE EXPOSURES

Name of the


tion No.



Commit-ments (3)

Cost ofShare (4)

Total


Non-Per- forming(2)

1+2+3+4= 5

Tam

in M

aska

n Gr

oup

Ownership -Management Tamin Maskan Co. 346846 18,870,306 0 0 0 18,870,306 Check and Bind-


Ownership -Management Pasargad Fanavaran Co. 326731 2,000,000 0 0 0 2,000,000 Check 7,494,000

Ownership -Management Armaghan Stable Trading Co. 439967 1,997,969 0 0 0 1,997,969 Check 3,541,603

Ownership -Management Maskan Paidar Co. 440103 2,068,047 0 0 0 2,068,047 Check 3,272,411

Ownership -Management Taban Tejarat Co. 438631 2,276,321 0 0 0 2,276,321 Check 4,006,276

Ownership -Management Tamin Atieh Co. 436095 4,603,145 0 0 0 4,603,145 Check 6,939,884

Ownership -Management Tamin Atieh Expand Trade Co. 436091 307,278 0 0 0 307,278 Check 402,556

Ownership -Management No Andish Matin Co. 461048 5,478,977 0 0 0 5,478,977 Check 7,168,339

Tamin Maskan Group Total 37,602,043 0 0 0 37,602,043 ------- 62,472,244

Pas

arga

d En

ergy

Dev

elop

men

t Gro

up


Pasargad Energy DevelopmentCo. 319887 0 0 6,357,314 0 6,357,314

Check, Promis- sory Note andDeposit

17,410,523

Ownership -Management Petro Danial Kish Co. 8406 20,466 0 19,196 0 39,662

Check, Promis- sory Note andBinding Contract

307,665


Poly Ethylene GostaranAlborz Co. 365193 0 0 1,939 0 1,939 Check and Prom-

issory Note 27,843


Naftatir Industrial ProjectsManagement Co. 384328 17,951,316 0 127,224 0 18,078,540

Check, Promisso- ry Note and Letterof Guarantee

216,140,736

Ownership -Management Qeshm Movaled Co. 1858 589,933 0 16,200 0 606,133 Check and Prom-

issory Note 1,065,807


Tafahom Engineering Support and Technology DevelopmentCo.

429297 0 0 630 0 630 Check and Bind-ing Contract 7,560

Ownership -Management Tadbir Saramad Co. 412157 688,500 0 0 0 688,500 Check 1,520,842

Ownership -Management Ostovan Kish Drilling Co. 9113 600,128 0 0 0 600,128 Check 783,724

Ownership -Management Petro Kariz Omid Kish Co. 10700 1,639,382 0 4,756 0 1,644,138 Check 1,995,818

Row

4

5



Managem

ent Report


eportFinancial S

tatements &

Notes

LARGE EXPOSURES

Name of the


tion No.



Commit-ments (3)

Cost ofShare (4)

Total


Non-Per- forming(2)

1+2+3+4= 5

Ownership -Management Sivan Tadbir Trading Co. 429663 339,888 0 0 0 339,888 Check 444,867

Ownership -Management Sirjan Energy Development Co. 2709 10,000 0 0 0 10,000 Check 13,500


Pasargad Industrial EnergyDevelopment Co. 374476 0 0 2,664 0 2,664 Check and Prom-

issory Note 32,000

Ownership -Management Pishroo Energy Co. 423289 0 2,928 0 0 2,928 Binding Contract 3,514


Pasargad Shams Electric PowerGeneration Co. 411893 3,035,589 0 0 0 3,035,589 Check 3,969,654


Hengame Qeshm Equippingand Developing Industries Co. 5150 0 0 1,922,282 0 1,922,282 Check 16,530,000

Ownership -Management Pasargad Trade Co. 323480 1,017,300 0 4,782 0 1,022,082 Check and Prom-

issory Note 1,387,274

Ownership -Management Pasargad Petro Kala Co. 8331 279,900 0 0 0 279,900 Check 370,000


Pezhvak Power EngineeringServices Co. 219931 29,932 0 1,119 0 31,051 Check and Prom-

issory Note 55,135

Pasargad Energy Development Group Total 26,202,334 2,928 8,458,106 0 34,663,368 ------- 262,066,462

Par

s Ary

an G

roup

Ownership -Management Pars Aryan Investment Co. 19276 1,625,774 0 0 0 1,625,774 Check and Bind-



Arzeshpardaz Aryan Invest-ment Consulting Co. 397933 66,000 0 29 0 66,029 Check 87,673

Ownership -Management Iranian re-insurance Co. 370373 0 0 0 131,326 131,326 ..................... 0

Ownership -Management Pasargad Insurance Co. 290070 0 0 8,555 432,986 441,541 Deposit 52,340

Ownership -Management Chakad Tavangari Co. 439631 0 12,500 0 0 12,500 ..................... 0

Ownership -Management Pasargad Nasim Salamat Co. 474218 0 500,000 0 680,000 1,180,000 ..................... 0

Ownership -Management Liman Consulting Engineers 43627 0 0 1,178 0 1,178 Check and Prom-

issory Note 8,102

Ownership -Management Pasargad Leasing Co. 241515 732,527 23,450 7,528 512,550 1,276,055 Check and Bind-


6

Row



LARGE EXPOSURES

Name of the


tion No.


Net Balance of Facilities Net Balanceof Commit-ments (3)

Cost ofShare (4)

Total

Type Value- IRRm Performing

(1) Non-Per-

forming(2) 1+2+3+4 = 5


Pasargad Aryan BuildingManagement CO. 325818 3,841,826 6,250 1,744 0 3,849,820

Check and BindingContract

6,434,886


Aryan Engineering SystemBuilding Management Co. 307237 740,996 0 0 0 740,996 Check 976,600

Pars Aryan Group Total 7,007,123 542,200 19,034 1,756,862 9,325,219 ------- 12,436,485


Iranian West Trade Development Co. 432385 8,693,175 0 0 0 8,693,175 Check 11,441,303

Iranian West Trade Development Total 8,693,175 0 0 0 8,693,175 ------- 11,441,303

Ownership -Management Isfahan Iron Melting Co. 25230 7,909,012 171,870 178,708 0 8,259,590

Check and BindingContract

23,449,752

Isfahan Iron Melting Total 7,909,012 171,870 178,708 0 8,259,590 ------- 23,449,752

Ownership -Management Mapna Group 99134 1,506,781 1,920,762 59,596 4,192,195 7,679,334

Check, Collecting Documents, Deposit and PromissaryNote

10,818,381

Mapna Group Total 1,506,781 1,920,762 59,596 4,192,195 7,679,334 ------- 10,818,381

Large Exposure Total 218,799,618 2,868,978 17,373,285 13,450,811 252,492,692 ------- 793,991,137

Row

7

8

9


The Approved Capital base for the financial year ended March 20, 2018 72,517,417

Threshold of Large Exposure Reporting (which is >= 10% of Capital base) 7,251,742

Threshold of Large Exposure Reporting for Foreign branches (which is 3% ofBranch Total Assets) -------

Responsible Department for the Regulation Credit Mgmt.

IRRm


Managem

ent Report


eportFinancial S

tatements &

Notes