ANNUAL FINANCIAL STATEMENTS
9
ANNUAL REPORT 2018
STATEMENT OF FINANCIAL CONDITION
(KZT thous.)
December 31, 2018
December 31, 2017
ASSETS
Cash and cash equivalents
37,953,674
44,074,930
Securities at fair value through profit or loss
-
2,659,323
Funds in financial institutions
229,558,581
225,578,278
Accounts receivable under subsidy programs
29,337
34,550
Loans and advances to clients
606,308
3,324,539
Investments available for sale
-
567,017
Investements in debt securities
7,100,689
-
Fixed assets
2,279,485
2,497,187
Intangible assets
228,155
292,674
Prepayments under the current liabilities for income tax
11,290,109
13,721,713
Long-term assets for sale
396,747
1,360,967
Other assets
14,678,723
25,801,698
TOTAL ASSETS
304,121,808
319,912,876
LIABILITIES
Borrowings
201,309,973
203,002,903
Debt securities in issue
16,057,484
-
Liabilities under subsidy programs
4,974,063
3,177,338
Deferred tax liabilities
1,279,281
6,065,416
Deferred revenue and provision for credit-related commitment
6,914,341
5,263,531
Other liabilities
1,066,188
1,255,534
TOTAL LIABILITIES
231,601,330
218,764,722
EQUITY
Shareholder’s equity
72,920,273
72,920,273
Additioinal paid-in capital
834,527
834,527
Revaluation reserve of available-for-sale investments
-
70,337
Revaluation reserve of investments at fair value through other comprehensive income
222,476
-
Other provisions
316,430
316,430
Undistributed (loss) / earnings
(1,773,228)
27,006,587
TOTAL EQUITY
72,520,478
101,148,154
TOTAL LIABILITIES AND EQUITY
304,121,808
319,912,876
ANNUAL REPORT 2018
PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
(KZT thous.)
2018
2017
Interest income calculated by effective interest method
24,613,727
34,796,892
Other similar income
140,937
-
Interest expense
(8,363,634)
(7,629,888)
Net interest income
16,391,030
27,167,004
Provision for impairment of customers’ loans and
(18,936,130)
advances and funds in financial institutions
Net interest income after loan loss provision
(2,545,100)
20,284,592
Fee income
3,934,347
4,158,138
Gain minus loss from financial derivative transactions
5,941,231
(12,492,609)
Gain minus loss on revaluation of securities held at fair value through profit or loss
65,958
292,507
Gain minus loss on foreign currency transactions
-
17,032
Loss minus gain on foreign currency revaluation
(7,671,877)
2,140,311
Loss arising from the initial recognition of financial
(4,443,157)
(4,278,421)
instruments at below-market rates
Revaluation of securities held at fair value through other comprehensive income
(86,806)
-
Recovery of provision/ (Contributions to provision) for impairment of other assets
6,042
(34,850)
(Contributions to provision) / Recovery of provision for credit-related liabilities
(243,942)
207,212
Recovery of provision for impairment of investments held to maturity
-
183,337
Other operating (loss) / income
(289,272)
40,818
Expenses on implementation of the Fund’s programs
(872,451)
(904,953)
General and administrative expenses
(4,339,827)
(4,406,877)
Earnings before tax
(10,544,854)
5,206,237
Income tax expenses
(1,385,618)
(1,093,393)
(LOSS) / PROFIT FOR THE YEAR
(11,930,472)
4,112,844
Other comprehensive income:
Items that may be reclassified subsequently to profit and loss:
Investements available for sale:
- Income minus loss for the year
-
8,749
Investements in equity securities measured at fair value through
other comprehensive income:
– Income minus loss for the year
152,139
-
Other comprehensive income for the year
152,139
8,749
TOTAL COMPREHENSIVE (LOSS) /
(11,778,333)
4,121,593
INCOME FOR THE YEAR
ANNUAL REPORT 2018
STATEMENT OF CHANGES IN EQUITY
Provision for
securities
measured
Provision for
at fair value
available-
through other
Undistributed
Shareholders’
Additional
for-sale
comprehensive
Other
(loss) /
(KZT thous.)
equity
paid-in capital
investment
income
rovisions
earnings
Total
Balance as of January 1, 2017
72,920,273
834,527
61,588
-
316,430
24,571,961
98,704,779
Profit for the year
-
-
-
-
-
4,112,844
4,112,844
Other aggregate income
-
-
8,749
-
-
-
8,749
Total aggregate income for the
year
-
-
8,749
-
-
4,112,844
4,121,593
Dividends paid
-
-
-
-
-
(1,678,218)
(1,678,218)
Balance as of December 31,
2017
72,920,273
834,527
70,337
-
316,430
27,006,587
101,148,154
Transition of opening balance
-
-
70,337
70,337
-
-
-
Changes at the initial use
of IFRS 9
-
-
-
-
-
(3,760,633)
(3,760,633)
Recalculated balance
72,920,273
834,527
-
70,337
-
23,245,954
97,387,521
as of January 1, 2018
Loss for the year
-
-
-
-
-
(11,930,472)
(11,930,472)
Other aggregate income
-
-
-
152,139
-
-
152,139
Total aggregate income for the
year
-
-
-
152,139
-
(11,930,472)
11,778,333
Dividends paid
-
-
-
-
-
(1,234,153)
(1,234,153)
Discount on securities
-
-
-
-
-
(5,904,111)
(5,904,111)
Provision on loan
-
-
-
-
-
(5,950,446)
(5,950,446)
Balance as of December 31,
2018
72,920,273
834,527
-
222,476
316,430
(1,773,228)
72,520,478
ANNUAL REPORT 2018
CASH FLOW STATEMENT
(KZT thous.)
2018
2017
Cash flow from operating activities:
Interest received
16,428,247
18,557,813
Interest paid
(4,481,586)
(3,383,249)
Fees received
5,203,483
3,941,384
Fees paid
-
-
Revenues from other operating activities
133,547
894,000
Labor costs, paid
(2,008,740)
(1,876,279)
General and administrative costs, paid
(5,261,281)
(4,012,811)
Cash received from operating activities prior to changes
10,013,670
14,120,858
in operating assets and liabilities
Net decrease/(increase) on:
-securities held at fair value, which changes
-
are reflected through profit or loss
3,808,000
- funds in financial institutions
(12,252,595)
6,854,215
- loans and advances to clients
6,345,360
8,618,886
- other assets
(367,602)
(2,820,108)
Net (decrease)/ increase on:
- liability on subsidy programs
- other financial commitments
2,257,434
(10,531,427)
– other liabilities
60,255
(154,785)
Net cash from / (used in) operating activities
6,056,522
19,895,639
Cash flow from investment activities
Acquisitions of investment securities
(33,011,630)
-
Proceeds from disposal of investment securities
737,444
-
Acquisition of fixed assets
(46,091)
(64,372)
Acquisition of non-intangible assets
(45,511)
(97,363)
Proceeds from disposal of fixed asssets
229,539
1,499
Net cash flow (used in) / from investment activities
(32,136,249)
(160,236)
Cash flow from financial activities
Loans taken
40,855,659
28,969,693
Loans repaid
(55,374,984)
(51,909,898)
Gain from financial derivative transactions
19,582,304
4,702,293
Gain from issued debt securities
15,995,520
-
Dividends paid
(1,234,153)
(1,678,218)
ANNUAL REPORT 2018
Net cash used in financial activities
19,824,346
(19,916,130)
Effect of changes in foreign exchange rate on cash and cash equivalents
134,125
228,643
Net increase in cash and cash equivalents
(6,121,256)
47,916
Cash and cash equivalents at beginning of period
44,074,930
44,027,014
Cash and cash equivalent at end of period
37,953,674
44,074,930
RELATED PARTY TRANSACTIONS
Parties are considered to be related if they are under joint control, or if one of them has the ability to control the other party or may exercise
significant influence on the other party’s financial and operating decisions. When considering the relationships with all related parties, the
commercial side of such relationships should be taken into account rather than the legal form alone.
Below are the balances as of December 31, 2018, on transactions with the related parties:
Sole
Jointly controlled
Associated
(KZT thous.)
Shareholder
companies
companies
Other related parties
Cash and cash equivalents
-
56,250
-
16,907,264
Investment debt securities at fair value
-
-
-
948,880
through profit or loss
Funds in financial institutions
-
-
-
14,934,368
Prepayment under the current
-
-
-
11,290,109
liabilities for income tax
Other financial assets
-
-
-
5,187
Other assets
-
-
-
23,403
Borrowings
76,392,378
-
-
69,385,576
Issued debt securities
-
16,057,484
-
-
Liabilities under subsidy programs
-
-
-
2,131,878
Deferred tax liability
-
-
-
1,279,281
Other liabilities
-
4,384
-
696,903
Guarantees issued
-
-
-
732,974
by the Fund as of year-end
ANNUAL REPORT 2018
APPENDIX 1
NON-ARM’S LENGTH TRANSACTION
AND LARGE TRANSACTIONS OF THE FUND IN 2018
Non-arm’s length transactions:
Number and date of decision of the Fund’s
authorized body which made a decision on
Counterparty under the contract
transacton
Brief information
1
“INTELFOOD” IE (2 transactions)
Decision of the Fund’s Board of Directors dated
Conclusion of guarantee agreement
April 27, 2018 (minutes No 84)
2
“OMIEX Kazakhstan” LLP/
“KazMotor” LLP
3
“Ansau Group” LLP
4
Zhansultanov Yermek Zhumanovich IE
5
“RegionStroy” construction company (2 translactions)
Implementation of Nurly Zher Residential
Construction State Program
6
“Khiba-Naz” (2 transactions)
7
“Pacific Group”
8
“Asia Stroy KZ” (4 transactions)
9
“BK-Stroy” (7 transactions)
10
“Integrostroy” (2 transactions)
11
“Leasing Group” JSC
Abstract from decision in-person meeting
Transaction with Leasing Group JSC was
of the Fund’s Board of Directors No
concluded as part of the program for
03/2018 dated 27.04.2018
financing leasing transactions of small and
medium-sized businesses.
12
“Shyngys-Service Trade” LLP
Abstract from minutes of the Fund’s
Conclusion of guarantee agreement between
Credit Committee No. 4556 of 11.05.18,
the Fund, Tsesnabank JSC and Shyngys-
Abstract from minutes of the Fund’s
Service Trade LLP under the following terms
Executive Board No. 64/2018 dated May
and conditions:
22, 188, Abstract from minutes of the
guarantee amount - KZT 26,315,790
Fund’s Board of Directors No. 07/2018
(44% of the loan amount),
dated June 29, 188
guarantee period - 36 months, but not more
than the term of the loan agreement.
13
“Baiterek Development” JSC
Abstract from Decision in-person
To accommodate the Government Relations
of the Board of Directors of Damu
Department in Astana. Address of leased
Entrepreneurship Development Fund JSC
premises: Astana, Mangilik Yel street, 55A,
No. 08/2018 dated September 3, 2018
Baiterek Business Center
(item No. 8)
ANNUAL REPORT 2018
Number and date of decision
of the Fund’s authorized body
Counterparty under the contract
which made a decision on transacton
Brief information
14
“Development Bank of Kazakhstan”
JSC
Abstract from Decision in-person meeting
To accommodate the Government Relations
of the Board of Directors of Damu
Department in Astana. Address of leased
Entrepreneurship Development Fund JSC No.
premises: Astana, Mangilik Yel street, 55A,
08/2018 dated September 3, 2018 (item No. 8)
Baiterek Business Center
15
“Baiterek Development” JSC
Abstract from Decision in-person meeting
To accommodate the regioinal branch
of the Board of Directors of Damu
in Astana. Address of leased premises:
Entreprneurship Development Fund JSC
Astana, Mangilik Yel street, 55A,
No. 08/2018 dated September 3, 2018
Baiterek Business Center
16
“Baiterek Development” JSC
Abstract from Decision in-person meeting of
Address of leased parking lot: Astana,
the Board of Directors of Damu Entrepneurship
Mangilik Yel street, 55A, Baiterek Business
Development Fund No. 08/2018 dated September
Center
3, 2018 (item No. 8)
17
“Development Bank of Kazakhstan”
JSC
Abstract from decision of the Fund’s Board of
Commitment of the Fund to DBK to
Directors No 13/2018 dated 07.12.2018.
repurchase coupon bonds under the
framework of the bond program
prospectus for 6 months
18
“Yakovlev Sergei Aleksandrovich” IE
Abstract from minutes of the Fund’s Credit
Conclusion of guarantee agreement
Committee No 5400 dated 07.08.2018, Abstract
from minutes of the Fund’s Executive Board
No 121/2018 dated 24.08.2018, abstract from
meeting of the Fund’s Board of Directors No
10/2018 dated 24.09.2019.
19
“Tsesnabank” JSC
Abstract from Minutes of the Executive Board
Conclusion of transaction between
No 164/2018 dated 13.11.2018, Abstract from
Damu Entrepreneurship Development
Minutes of meeting of the Board of Directors
Fund JSC and Tsesnabank JSC, in which
No 12/2018 dated 26.11.2018.
Damu Entrepreneurship Development
JSC has interest by repurchasing bonds
of Tsesnabank JSC.
20
“Tsesnabank” JSC
Abstract from Minutes of the Executive Board
Conclusion of transaction between
No 179/2018 dated 04.12.2018, Abstract from
Damu Entrepreneurship Development
Minutes of meeting of the Board of Directors
Fund JSC and Tsesnabank SJC, in which
No 13/2018 dated 07.12.2018.
Damu Entrepreneurship Development
JSC has interest by repurchasing bonds
of Tsesnabank JSC.
Large transaction: not concluded in 2018
ANNUAL REPORT 2018
ADDRESSES AND CONTACTS
HEAD OFFICE:
5. Entrepreneur Service Center
12. Entrepreneur Service Center
Regional branch in Almaty Region
Regional branch in Kostanay Region
A05C9Y3, Republic of Kazakhstan, Almaty,
B01G6D5, Taldykorgan, Tolebaev St. , 86,
P00F8C6, Kostanay,
Gogol st. , 111, tel.: +7 (727) 244-55-66,
Birzhan Sal St. , tel.: +7 (7282) 24-24-30,
Al Farabi Ave. , 65,
е-mail: info@fund.kz, the Fund’s website:
55-87-10, e-mail: tdkg@fund.kz
tel.: +7 (7142) 99-03-05 (06, 07),
e-mail: kostanay@fund.kz
Call center: +7 (727) 244-55-77, short number
6. Entrepreneur Sevice Center
1408 (calls within Kazakhstan are free of charge)
Regional branch in Atyrau Region
13. Entrepreneur Service Center
E01X8K9, Atyrau, Azattyk ave. , 17,
Regional branch in Mangistau Region
BRANCH NETWORK:
tel.: +7 (7122) 55-81-01, 55-80-91,
R00A7D3, Aktau,
e-mail: atyrau@fund.kz
16th residential district, 24,
1. Entrepreneur Service Center
tel.: +7 (7292) 70-10-51;
Regional branch in Astana
7. Entrepreneur Service Center
e-mail: aktau@fund.kz
Z05T2H3, Nur-Sultan, Esil district, Mangilik
Regional branch in East Kazakhstan Region
Yel St. , 55 “А”,
F00M3F5, Ust Kamenogorsk, Pobedy Ave. , 6,
14. Entrepreneur Service Center
“Baiterek” business center,
tel.: +7 (7232) 56-05-90,
Regional branch in Pavlodar Region
+7 (7172) 55-91-99,
e-mail: damu-vko@mail.ru
S03G9X0, Pavlodar, Korolenko St. , 109,
55-92-14, 55-94-34 (35, 36),
tel.: +7 (7182) 70-38-02,
e-mail: astana@fund.kz
8. Entrepreneur Service Center
e-mail: k.zhakiyanova@fund.kz
Regional branch in Zhambyl Region
2. Entrepreneur Service Center
H01X4X8, Taraz, Zheltoksan St. , 94,
15. Entrepreneur Service Center
Regional branch in Almaty
tel.: 8 (7262) 99-94-70, e-mail:
Regional branch in North Kazakhstan Region
A25D6X7 Almaty, Dostyk ave. , 192/2,
taraz@fund.kz
ТО1Е6А4, Petropavlovsk, Zhambyl St. , 191,
“Green Tower” business center, 1st floor,
tel.: +7 (7152) 55-98-10 (16),
tel.: +7 (727) 244-55-66,
9. Entrepreneur Service Center
e-mail: sko@fund.kz
244-55-77 (extension 3100),
Regional branch in West Kazakhstan Region
e-mail: info@fund.kz,
L02K7D7, Uralsk,
16. Entrepreneur Service Center
Gaini.Alimzhanova@fund.kz
Temir Masin St. , building 67/2,
Regional branch in South Kazakhstani Region
tel.: +7 (7112) 55-48-08 (05,06,09,10,02),
X08X2D1, Shymkent, Baitursynov St. , 88V,
3. Entrepreneur Service Center
e-mail: assel.arnold@fund.kz
tel.: +7 (7252) 29-48-11.
Regional branch in Akmola Region
e-mail: Aigerim.montayeva@fund.kz
C00G9B9, Kokshetau,
10. Entrepreneur Service Center
Akan Seri St. , 46/1,
Regional branch in Karaganda
17. Entrepreneur Service Center
tel.: +7 (7162) 55-11-16,
M01M7M3, Karaganda, Yermekova St. , 29,
Regional branch in East Kazakhstan Region,
55-11-14
tel.: +7 (7212) 40-09-69,
F16T7G3, Semey, Abai square, 5,
е-mail: akmola@fund.kz
e-mail: karaganda@fund.kz
tel.: +7 (7222) 60-00-50; e-mail:
damu-vko@mail.ru
4. Entrepreneur Service Center
11. Entrepreneur Service Center
Regional branch in Aktobe Region
Regional branch in Kyzylorda Region
18. Entrepreneur Service Center
D00K9D9, Aktobe, Abylkayr Khan Ave. , 51/1,
N02B7B1, Kyzylorda, Ivan Zhurba St. , 12,
X43D7G7, Turkestan, Kozhanov St. , 7,
tel.: 8 (7132)70-38-08,
tel.: +7 (7242) 55-11-12,
tel.: ext. 3956 (phone is attached to Regional
70-38-10, 70-38-11,
55-11-18,
branch of South Kazakhstan Region),
e-mail: aktobe@fund.kz
e-mail: damu@list.ru
e-mail: atanbaev76@mail.ru
ANNUAL REPORT 2018