IN THE NAME OF GOD

General Meeting

Sarmaye Bank (The Private Commercial Banking Services)

Dear ladies & gentlemen

We would very much like to draw the kind attention the owners of investors bearing the shareholders along with their related legal agents that have been invited here to hearing the annual bank's reports and accounts which has been prepared and supplied by the board of directors of this bank at the required dated ended up to 20 Mar, 2006.

As it has always been our practice to keep our many bank's investors of the shareholders informed of any changes and activities in our bank which has been affected here, we are pleased to let you know that, much of our success is due to the friendly co-operation which you have always given us, and this in turn has been made possible by the personal attention of our staffs which always strives to give you.  

We hereby have pleasure in welcoming all of you and letting you know our special thanks to all of you again , for your presence of being here for offering the first session of the annual ordinary of the general assembly for a 75-days of the bank's activity which has been described by the board of directors confirmed by the bank's auditor & legal inspector in the name of (Dayarayan auditing Institute) as per the attached financial statement along with the relevant explanatory notes mentioned bellow:

1-History of the Bank, Sarmaye Bank has been established under the permission of authorized letter. No.26/2377 dated 25 Dec, 2000 in accordance with the subject of the article No.98 pointed on the item 3^rd, of The Islamic Republic of Iran's program of Economic, Social & Cultural, of the unique article of the law establishment of Non-State Banks approved on 10 Apr, 2000 and other related rules and regulation, registered at Companies Registration Dept. & Tehran Industrial Ownership as per the permission of banking operations which has been issued by the Central Bank of the Islamic Republic of Iran, under the authorized letter No.5/4613 dated 08 Jan, 2006 as the Iranian sixth Non-State Bank and (the second largest privately commercial banking services)

2-Major activity of Bank according to the Articles of Association:

All banking operational activities including all banking, commercial & servicing functions and transactions which are permitted in accordance with the relevant rules & regulations of the bank

3-Investment

The investment of the bank is a sum of Rls 3,535,000,000,000 equality USD386.150.000 divided into nominal shares of 1000 Rls %100 paid to the transaction Dept (Rls) through the certificate of authorized No.838/4 dated 30 Oct, 2005 through The Islamic Republic of Iran's Central Bank.

The structure of members of the board of directors pointed as the follows:

(Major& Substitute persons) through the reporting period:

5-The most important activity of the board

5-1) Number of branches

The board of directors has successfully inaugurated three branches as under-  mentioned :

Seyed Jamaledin Asad Abadi,  Northern Shiraz, Mashhad, at the end of the year within two periods of the reports.

5-2) Allocation of the resources:

The board of directors has allocated its resources for the following items in order to have a customized benefit:

5-2-1) Granted facilities:

A sum of 1850 milliard Rls out of free resources has been allocated for investment and granted facilities.

5-2-2) Purchase of partnership notes:

Following is a part of resources allocated for purchase of partnership notes issued by The Central Bank of the Islamic Republic of Iran.

5-2-3 Short – term & Current investment deposits with banks:

The board of directors has kept a part of resources for a sum of Rls 9,106 milliard with banks on deposit and short-term & Current investment deposits in order to reply to quick & important daily cash.

5-3 Fixed assets:

The purchased assets of bank are as follows within the reporting period:

                                                                                            Amount in Rls .milliard

Moveable properties

(including Administrative & information equipment)                 1,450.6                      

Non-movable properties-Building                                                18,284.1

Advance payments                                                                        138,618.0

Total in million Rls                                                                       276,593.7

Non–movable properties including the advance payments for purchasing of the following Branches located at Tehran:

Jamaledin Asad Abadi, Shahid Kolahdooz, North Shiraz 

The Central Dept Bldg at Sepahbood Gharani Ave, corner of Arak St.

and Karaj branch.

And also the sum of Rls 1,875 million to purchase of the completed banking functions software. 

6-Deposit (Resources) of persons:

The bank could successfully attract a sum of Rls 22,013 Million as at sight & investing deposits by inauguration of three branches within its short-term period of activity at the final days of 2006.

7-Personnel affairs: 

The applied human force is 64 persons through the reporting fiscal period following table is for academic records and their place of service (Central Department & Branches) The applied human force would be introduced for necessary training upon employment and then will be introduced to the relevant Departments for performing assigned affairs.

Number of human forces at the end of the year 2006

The education of human forces at the end of the year 2006

8-Banks incomes:

Following are the share of bank's incomes of gained profit resulted from granted facilities, purchase of partnership notes and….. through the reporting period which is more than Rls 106.4 million:

Income                                                                     In Rls million

Received profit resulted from granted facilities               60,742

"""""""""""'''''''''from purchasing partnership notes              42,141

"""""""""""""""" from investment with banks                          3,481

Total                                                                                       106,386

9-Bank costs:

Total cost of bank is a sum of Rls 19,029 million within the reporting period from which the major items have been totally inserted in costs account including the establishment costs for a sum of Rls 15,019 million and a sum of Rls 2000 million is 2% of general reserve of bad debts and granted facilities that have been calculated and inserted in accounts for the purchase of monetary & credit Council regulations and a sum of Rls 1,789 million is considered as administrative & personnel costs.

10-Profit & loss:

The operation of bank within a 70-days period ending on 20 Mar, 2006 was resulted to a sum of Rls 87,356 million after determining the costs and its incomes and after deduction of Rls 11,298 million as the applied taxes, the net profit of bank is more than Rls 76,057 million.. Then the net profit of each share is a sum of Rls 21, 5 in fiscal year of 2006.

Hopping we are going to make steps by step forward moving on, and gain the desired profits, we are deserved in the near future, together, with the assistance of all our dear colleagues.

Seyed Bahaeddin Hosseini Hashemi

Managing Director

   Copyright@2005 Sarmaye Bank (The Private Commercial Banking Services)

All rights reserved. [Disclaimer]