2010 Tehran Stock Exchange ANNUAL REPORT
Si-o-se Pol which means 33 Bridge or the Bridge of 33 Arches), also called the Allah- Verdi Khan Bridge, is one of the eleven bridg- es of Isfahan, Iran. It is highly ranked as being one of the most famous examples of Safavid bridge design 2010 Tehran Stock Exchange ANNUAL REPORT
shareholders’ equity. 3.To expand the market with the use of Mission Statement updated and efficient technology and pro- cesses. To develop a fair, efficient and transpar- 4.To promote financial literacy and de- ent market equipped with diversified velop investing and shareholding culture instruments and easy access in order to in Iran. create added value for the stakeholders. 5.To extend and facilitate the market ac- cess through information technology. 6.To create value for shareholders and comply with transparency and account- ision ability principles, with cooperation and V interaction of stakeholders. To be the region’s leading Exchange 7.To develop constantly intellectual assets and country’s economic growth driver. and human resources of the company.
Goals 1.To increase the capital market’s share in financing the economic productive activi- ties. 2.To apply the effective rules and proce- dures to protect the market’s integrity and
Page 2 2010 Tehran Stock Exchange ANNUAL REPORT
TSE at a Glance Trading Days Saturday to Wednesday Hours 9:00 to 12:00 System Automated - order driven Mechanisms Opening auction - continuous auction Market maker Arbitrary Instruments Shares & Rights, Participation Certificates, Stock futures Currency Local (Rial) Real time information Bid/ask, Prices, Indices, Companies’ announcements, Trading vol- ume and value Clearing and Settlement Central Depository Central Securities Depository of Iran (CSDI) Period T+3 Settlement Book entry Clearing Netting Margin/lending No
Taxes Dividend No tax Capital gain No tax Transfers (paid by seller only on shares) %0.5
Trading Commissions Buyer (%) Seller (%) SEO 0.04 0.06 TSE 0.032 0.048 Broker 0.4 0.4 Clearing Fee 0.028% 0.042% Total 0.5 1.05
Structure and Regulations Legal Demutualized (not listed) Regulations Self-regulated under SEO supervision Foreign investment Yes (according to foreign investment by-law)
Minimum Listing Requirements Main market Secondary market Main board Secondary board Paid-in capital (Million Rials) 200 100 30 Years of Business Activity 3 3 3 Free float ratio (%) 20 15 10 Number of shareholders 1000 750 250 Profit-making Operating periods ended the listing date 3 2 1
Equity to total assets ratio (%) 30 20 15
Page 3 2010 Tehran Stock Exchange ANNUAL REPORT
Content:
CEO’s Message 5
Economy 6
Events 7
Market Performance 8
Derivatives 19
Business Operations and Achievements 20
Future Outlook 20
Corporate Governance 21
Financial Statement 24
Appendices 48
Page 4 2010 Tehran Stock Exchange ANNUAL REPORT
CEO’s Message ing; increased daily price fluctuation for shares and rights; executed opening auc- tion mechanism for halted shares; defined a new index as 30 large cap companies; launched futures market; and developed regulations for online access of investors to the market. In order to attract new companies to be listed, TSE has made some efforts in marketing, admitting, listing and offering of companies subject to article 44 of the Constitution (privatization), and more tax exemption for listed companies, as well as more transparency of prospectuses. Also, some efforts have been made for development of market awareness and In 2010, in the continuation of 2009 promotion of financial literacy through growth, Iranian capital market showed a targeted training courses, books, web considerable boom. In this year all indices sites and TV programs in order to help had positive trends as compared to the people make informed participation in the previous years. In this year, market capi- capital markets. talization, value traded and the number of In order to develop the capital market trades reached 897,398,436 million Rials, and facilitate access to it through informa- 197,339,350 million Rials and 2.9 million tion technology, some actions have been times respectively. Goals and strategies taken such as developing DMA, improving decided by the board of directors and ex- the website, and developing a trading sys- ecutives in the line of integrity, transpar- tem for futures market. ency and liquidity of the market as well as The main plans of TSE in 2010-2011 promotion of financial literacy and devel- are to enhance mechanisms of market opment of investment culture paved the surveillance and provide monitoring soft- way for growth and development of the ware, to develop and promote derivatives market, attracted the general confidence market, to launch fixed income securities of the investors, and created value added market, to develop financial system, and for the stakeholders. to use legal opportunities for listing new To increase market liquidity, in 2010, companies. TSE has taken actions to obtain fair and liquid markets; enacted, approved and made operative the new trading rules; defined a new method for block trad-
Page 5 2010 Tehran Stock Exchange ANNUAL REPORT
Economy
Indicators Unit Description million square Land area 1.6 kilometer population million 74.7 Active Population (2010, Q2) million 24.2 Capital City Tehran life expectation at birth Year 72 Unemployment Rate (2010, Q2) percent 14.6 GDP (2009) Million Rial 3,426,998,017 GDP growth rate (annual) % 1.8 GDP per capita (2009) Million Rial 47 Inflation rate (consumer prices)(2009) % 13.5 Dec 2010: 1$=10353 Rials Sources: www.CBI.ir, www.Worldbank.org, www.IMF.org
Page 6 2010 Tehran Stock Exchange ANNUAL REPORT
Events Annual general meeting of TSE was held. Financial- state 20 Apr Annual General Meeting ments were approved and dividend per share was decided as 200 Rials. Auction mechanism for symbols with no price limit was per- 8 May Auction Mechanism for Unlimited Price Symbols formed. A road show was held for more introduction of investment 19 June Road Show in Dubai opportunities in companies listed in TSE to foreign investors. Online trading was initially provided for direct access of all 4 Jul Online Trading shareholders. In order to increase liquidity and the capital market depth, 8 Jul Changes in Price Limit price limit of share and stock right increased from 3.5% to 4% and 7% to 8% respectively. 25 Jul Future Contracts Market Opening The future contracts market was opened. 5% shares of Dana Insurance, as equivalent to 5,273,750 17 Aug IPO of Dana Insurance shares, were offered initially. 23 Aug Calculation of 30 Large Cap Index 30 large cap index was issued formally for the first time. The extraordinary general meeting was held in order for 7 Oct Extraordinary General Meeting 100% capital increase from 150 billion IRR to 300 billion IRR from retained earnings and prudential reserve. The extraordinary general meeting was held in order for ap- 7 Oct Extraordinary General Meeting pointment of the board of directors’ members. 5% shares of Postbank, as equivalent to 28,057,150 shares, 2 Nov IPO of Postbank were offered initially. 5% shares of Tabriz Oil Refining, as equivalent to 97,105,275 13 Nov IPO of Tabriz Oil Refining shares which belong to NIOPDC was offered initially. 5% shares of Parsian Insurance Co., as equivalent to 14 Nov IPO of Parsian Insurance 55,000,000 shares, were offered initially. TSE was appointed for the first time as the chairman of FEAS 13 Dec Appointment of TSE as the Chairman of FEAS Working Committee working committee. The New Rule of Securities Trading approved on 2010,12,4 22 Dec Approval of the New Trading Rule became operative from 2010,12,22 on.
Page 7 2010 Tehran Stock Exchange ANNUAL REPORT
Mmarket Performance
The following table shows the general 197,339 billion Rials with 16.9% increase performance of Securities market in 2010- as compared to the previous year. It is a 2011. Total returns on investment reached new record for TSE. 53.71% in 2010, which has been one of In 2010, among listed industries, Mo- the highest real rates of returns among tor Vehicles And Auto Parts, Monetary other WFE members and investment in intermediations (banks) and Basic Metals the economy of Iran, as compared to re- account for the most value traded as 22%, turns on other investment opportunities. 14% and 13% of total value respectively, Also in the period, TSE showed the most while, in 2009, Telecommunication , Mon- capitalization and value traded. etary intermediations (banks) and -phar In 2010, the total value traded by TSE maceuticals with respectively 49%, 20% with 16.9% increase reached 197,339 bil- and 6% of total value traded accounted for lion Rials, the average daily value traded the first 3 ranks in the market. of TSE had an increase of 15.4%, the num- ber of transaction reached 2912 thousand times, and the market capitalization of TSE amounted as 897,398 billion Rials indicat- ed 52.9% growth. In 2010, TEDPIX (the total return index of TSE) increased from 45955 at the begin- ning of the year to 76713 at the end of the year, which indicates a 66.9% average re- turn on investments in TSE. Other indices in TSE also showed a considerable growth. This indicates an even price increase in all market sectors. Free float share index had nearly 69.8% growth in 2010. Among listed industries, Motor Ve- hicles and auto Parts holdings, monetary intermediation, basic metals and chemi- cal and by products account for 21%, 14%, 13% and 7% of market capitalization re- spectively. The share value traded in TSE dur- ing 243 business days in 2010 reached
Page 8 2010 Tehran Stock Exchange ANNUAL REPORT
Market Indicators 2010 2009 Change (%) TEDPIX 76,713 45,598 68.2 Market capitalization Million Rials 897,398,436 586,840,103 52.9 Volume traded Million Rials 96,563 79,965 20.8 Value traded Million Rials 197,339,350 168,825,151 16.9 Average daily value traded Million Rials 812,096 703,438 15.4 P/E Ratio 6.33 5.55 14.1 Turnover Velocity % 17.4 24.4 -29.0 Listed companies 341 337 1.2
Main Indices of TSE in 2010 Free Float Main Secondary Description TEDPIX 30 large-cap Financial Industry adjusted market market At the end of the year 76,713 23,833 1,135 15,682 25,551 54,340 14,223 At the beginning of the 45,955 14,034 1,000* 9,293 16,106 29,600 8,721 year Changes 30,758 9,799 -85 6,389 9,445 24,740 5,502 Percent (%) 66.9 69.8 -7.0 68.8 58.6 83.6 63.1 *Calculated from 15 AUG 2010
Page 9 2010 Tehran Stock Exchange ANNUAL REPORT
Monthly Return on Investment in TSE of TEDPIX
20.00 15.41
15.00
9.02 8.99 10.00 7.62
5.00 3.67 2.90 3.20 2.59 3.15 1.71 0.00 -0.20 -5.00 -4.35 -10.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TEDPIX 90,000 76,450 76,713 80,000 74,519 73,124 74,373 70,000 54,568 59,242 60,000 57,516 57,403 47,641 53,443 50,000 49,022 40,000 30,000 20,000 10,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Page 10 2010 Tehran Stock Exchange ANNUAL REPORT
Market capitalization in 2010 (Million Rials)
1000,000,000 897,398,436 880,937,277 867,975,928 900,000,000 845,140,202 851,012,261 747,926,419 800,000,000 729,043,808 720,810,967 675,647,029 709,234,086 700,000,000 625,415,420 611,446,328 600,000,000 500,000,000 400,000,000 300,000,000 200,000,000 100,000,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Market Capitalization of Different Sectors In 2010
Other Transportation and Storage Monetary intermediation Medical, Precision & Optical Instruments
Technical & Engineering Services
Refined Petroleum Basic Metals Products
Cement, Lime & Plaster Post and telecommunications Chemicals & By-products
Diversified Industrials (Holdings) Motor Vehicles And Auto Parts Metal Ores Mining Page 11 2010 Tehran Stock Exchange ANNUAL REPORT
Share Traded
Description 2010 2009 Changes % Volume Value Volume Value Volume value (Million Rials) (Million Rials) (Million Rials) (Million Rials) Total 96,563 197,339,350 79,965 168,825,151 20.8 16.9 Daily average trades 397 812,096 333 703,438 19.2 15.4
Value Trade of different Sectors
other Motor Vehicles And Auto Parts
Industrial contracting
Oil and Gas Extraction and Related Services Except Surveying
Diversified Industrials (Holdings)
Refined Petroleum Prod- ucts & Nuclear Fuel
Metal Ores Mining Monetary intermediation
Technical & Engineering Services
Post and telecommuni- cations Basic Metals Chemicals & By-products
Page 12 2010 Tehran Stock Exchange ANNUAL REPORT
Business Days and Stock Right & Share Traded in 2010
Value traded Market-Cap Month Trading Days Transaction (Million Rials) (Million Rials) Jan 22 6,407,532 188,198 611,446,328 Feb 18 10,352,028 147,445 625,415,420 Mar 18 5,211,937 174,531 675,647,029 Apr 20 13,581,055 331,131 729,043,808 May 22 28,783,022 260,511 709,234,086 Jun 20 23,629,404 188,083 720,810,967 Jul 19 11,481,776 219,441 747,926,419 Aug 23 22,215,354 400,700 844,348,404 Sep 19 26,531,682 293,381 880,937,277 Oct 21 17,048,123 249,313 851,012,261 Nov 21 15,782,016 245,763 867,975,928 Dec 20 16,315,423 214,447 897,398,436
Page 13 2010 Tehran Stock Exchange ANNUAL REPORT
New Listed Companies In 2010
Market Capitalization Capital Registered Company Date of IPO Increase (Million Rials) (Million Rials) Dana Insurance 17-Aug 105,475 2,753,319 Post Bank 02-Nov 561,143 1,291,751 Tabriz Refinery 13-Nov 1,942,105 2,722,831 Parsian Insurance 14-Nov 1,100,000 3,634,400 Total 3,708,723 10,402,302 Brokerages Firm
Description Number Brokerage Companies 88 Total trading stations 557 Top 10 Companies by Market Capitalization at year-end 2010
Top 10 Companies by Market Capitalization at year-end 2010 Name Market Cap (Million Rials) % of Total MC
1 Iran Tele. Co. 120,555,967 13.4
2 National Copper Ind.Co. 54,387,921 6.1
3 Isfahan Mobarakeh Steel Co. 40,511,200 4.5
4 Parsian Bank 36,410,000 4.1
5 Mellat Bank 29,200,000 3.3
6 Chadurmalu mineral & Ind Co. 28,740,000 3.2
7 MAPNA 28,135,050 3.1
8 Saipa Co. 25,823,200 2.9
9 Tejarat Bank 24,192,812 2.7
10 Saderat Bank 23,456,988 2.6
Total 411,413,139 45.8
Page 14 2010 Tehran Stock Exchange ANNUAL REPORT
Top 10 companies by Value Traded at year-end 2010 Name Value (Million Rials) % of Total Value Traded
1 Saipa Co. 9,698,910 4.9
2 Parsian Bank 5,105,776 2.6
3 Isfahan’s Mobarakeh Steel Co. 5,074,929 2.6
4 Iran Tele. Co. 4,670,571 2.4
5 Sadra Co. 4,575,088 2.3
6 MAPNA 4,055,988 2.1
7 Ghadir Investment Co. 3,379,056 1.7
8 National Copper Ind.Co. 3,026,075 1.5
9 North Drilling Co. 2,801,844 1.4
10 Gol-E-Ghohar Iran Ore Co. 2,495,660 1.3
Total 44,883,897 22.7
Top 10 companies by Volume Traded at year-end 2010 Name Volume (Million Rials) % of Total Volume Traded
1 Saipa co. 4,350 4.5
2 IranTelecom .co. 2,088 2.2
3 Isfahan Mobarakeh Steel Co. 2,060 2.1
4 Parsian Bank 1,852 1.9
5 Sadra Co. 1,685 1.7
6 Mellat Bank 1,574 1.6
7 Bahman group Co. 1,166 1.2
8 MAPNA 1,164 1.2
9 Rena Investment Co. 1,160 1.2
10 Iran Khodro Industrial Group Co. 1,112 1.2
Total 18,211 18.9
Page 15 2010 Tehran Stock Exchange ANNUAL REPORT Market Capitalization / Sectors *
2010 2009 % Of % Of Industry Market-Cap Market-Cap Change (%) Total Total (Million Rials) (Million Rials) MC MC 1 Agriculture 189,350 0.02 97,200 0.02 94.8 2 Basic Metals 135,941,551 15.15 91,095,239 15.52 49.2 3 Cement, Lime & Plaster 34,676,948 3.86 34,288,974 5.84 1.1 4 Ceramic & Tiles 2,217,582 0.25 1,678,608 0.29 32.1 5 Chemicals & By-products 39,630,871 4.42 28,310,367 4.82 40.0 6 Coal & Lignite Mining 176,340 0.02 99,510 0.02 77.2 7 Computer & Related Activities 8,402,306 0.94 3,707,616 0.63 126.6 8 Diversified Industrials (Holdings) 59,271,595 6.60 41,982,480 7.15 41.2 9 Electrical Machinery & Apparatus 6,860,595 0.76 4,729,792 0.81 45.1 10 Fabricated Metal Products 2,981,767 0.33 1,628,460 0.28 83.1 11 Financial Leasing 4,284,100 0.48 3,142,700 0.54 36.3 12 Food Products and Beverages 11,343,384 1.26 8,002,676 1.36 41.7 13 Industrial Contracting 4,146,000 0.46 2,440,500 0.42 69.9 14 Insurance & Pension Funding 9,848,870 1.10 2,605,915 0.44 277.9 15 Investment Companies 22,735,006 2.53 15,701,124 2.68 44.8 16 Machinery & Equipment 5,160,590 0.58 3,917,104 0.67 31.7 17 Medical, Precision & Optical Instruments 26,933,365 3.00 16,566,945 2.82 62.6 18 Metal Ores Mining 66,422,393 7.40 35,841,763 6.11 85.3 19 Monetary intermediation 156,972,205 17.49 82,762,690 14.10 89.7 20 Motor Vehicles And Auto Parts 70,712,767 7.88 40,483,966 6.90 74.7 21 Oil and Gas Extraction 6,062,777 0.68 5,815,264 0.99 4.3 22 Other Mining 89,240 0.01 69,584 0.01 28.2 23 Other Non-metallic Mineral Products 2,342,686 0.26 1,824,952 0.31 28.4 24 Paper & By-products 302,724 0.03 306,200 0.05 -1.1 25 Pharmaceuticals 767,340 0.09 1,146,180 0.20 -33.1 26 Post and telecommunications 120,555,967 13.43 75,462,164 12.86 59.8 27 Publishing, Printing & Media 168,650 0.02 114,500 0.02 47.3 28 Radio, TV & Communication 751,564 0.08 410,318 0.07 83.2 29 Real Estate And Construction 12,886,477 1.44 12,481,263 2.13 3.2 30 Refined Petroleum Products 31,141,720 3.47 26,369,069 4.49 18.1 31 Rubber & Plastic Products 3,075,722 0.34 2,030,792 0.35 51.5 32 Sugar & Byproducts 1,910,239 0.21 918,138 0.16 108.1 33 Tanning and Dressing of Leather 2,295,502 0.26 465,037 0.08 393.6 34 Technical & Engineering Services 28,264,680 3.15 16,809,260 2.86 68.1 35 Textiles 330,027 0.04 252,262 0.04 30.8 36 Transportation and Storage 17,426,572 1.94 23,071,830 3.93 -24.5 37 Wood & By-products 118,965 0.01 209,662 0.04 -43.3 Total 897,398,436 100 586,840,103 100 2,227.7
* TSE uses the International Standard for Industrial Page Classification (ISIC) system. 16 2010 Tehran Stock Exchange ANNUAL REPORT P/E Ratio / Sectors
Number Industry of Listed P/E Companies 1 Agriculture 1 8.6 2 Basic Metals 23 6.2 3 Cement, Lime & Plaster 30 4.5 4 Ceramic & Tiles 10 4.4 5 Chemicals & By-products 27 7.0 6 Coal & Lignite Mining 1 6.9 7 Computer & Related Activities 3 9.2 8 Diversified Industrials (Holdings) 4 5.2 9 Electrical Machinery & Apparatus 11 4.5 10 Fabricated Metal Products 9 14.9 11 Financial Leasing 4 5.4 12 Food Products and Beverages 22 6.0 13 Industrial Contracting 1 172.8 14 Insurance & Pension Funding 4 9.4 15 Machinery & Equipment 16 7.5 16 Medical, Precision & Optical Instruments 27 6.8 17 Metal Ores Mining 8 9.7 18 Monetary intermediation 8 6.8 19 Motor Vehicles And Auto Parts 31 4.6 20 Oil and Gas Extraction 1 7.6 21 Other Mining 1 7.0 22 Other Non-metallic Mineral Products 20 6.3 23 Paper & By-products 4 6.6 24 Pharmaceuticals 1 4.0 25 Post and telecommunications 1 6.2 26 Publishing, Printing & Media 1 8.8 27 Radio, TV & Communication 4 7.3 28 Real Estate And Construction 12 4.1 29 Refined Petroleum Products 6 7.0 30 Rubber & Plastic Products 10 5.9 31 Sugar & Byproducts 14 6.7 32 Tanning and Dressing of Leather 1 38.7 33 Technical & Engineering Services 2 6.8 34 Textiles 3 5.7 35 Transportation and Storage 4 17.5 36 Wood & By-products 2 8.2
Page 17 2010 Tehran Stock Exchange ANNUAL REPORT Indices / Sectors Industry Dec-2010 Dec-2009 Change (%) 1 Agriculture 801.4 340.7 135.2 2 Basic Metals 9,954.1 5,751.4 73.1 3 Cement, Lime & Plaster 195.3 159.9 22.1 4 Ceramic & Tiles 462.6 299.3 54.6 5 Chemicals & By-products 746.8 410.4 82.0 6 Coal & Lignite Mining 301.5 156.7 92.4 7 Computer & Related Activities 935.4 713.0 31.2 8 Diversified Industrials (Holdings) 1,138.3 691.0 64.7 9 Electrical Machinery & Apparatus 65,314.4 38,907.6 67.9 10 Fabricated Metal Products 4,590.6 2,422.0 89.5 11 Financial Leasing 793.9 489.4 62.2 12 Food Products and Beverages 631.8 379.6 66.4 13 Industrial Contracting 1,646.6 968.1 70.1 14 Insurance & Pension Funding 2,103.8 1,186.5 77.3 15 Investment Companies 410.4 273.7 49.9 16 Machinery & Equipment 2,915.8 2,140.8 36.2 17 Medical, Precision & Optical Instruments 1,144.1 621.2 84.2 18 Metal Ores Mining 3,519.6 1,922.6 83.1 19 Monetary intermediation 273.7 141.3 93.7 20 Motor Vehicles And Auto Parts 6,562.1 3,278.7 100.1 21 Oil and Gas Extraction 181.4 163.5 10.9 22 Other Mining 1,139.6 795.6 43.2 23 Other Transportation Equipments 1,125.2 1,125.1 0.0 24 Paper & By-products 1,383.8 1,375.0 0.6 25 Pharmaceuticals 722.4 955.5 -24.4 26 Post and telecommunications 244.3 131.8 85.4 27 Publishing, Printing & Media 8,223.2 4,818.5 70.7 28 Radio, TV & Communication 724.2 394.4 83.6 29 Real Estate And Construction 342.3 278.5 22.9 30 Refined Petroleum Products 33,201.9 26,063.5 27.4 31 Rubber & Plastic Products 3,163.8 1,825.4 73.3 32 Sugar & Byproducts 813.9 377.0 115.9 33 Tanning and Dressing of Leather 1,047.1 211.8 394.4 34 Technical & Engineering Services 182.7 102.2 78.8 35 Textiles 207.9 158.9 30.8 36 Transportation and Storage 897.3 1,287.8 -30.3 37 Wood & By-products 11,967.0 4,791.9 149.7
Page 18 2010 Tehran Stock Exchange ANNUAL REPORT
Derivatives Delivery months are 6 two-month cycles that the bimonthly events start on 22 March. Daily price limit is 4% of previous day’s settlement price. Initial margin and maintenance margin are 20% of contract value and 60 % of ini- tial margin respectively. Market-wide position limit is no. of free float share divided by contract size divided by no. of contracts that simultane- ously are traded. Member position limit is utmost 20 % of market-wide position limit based on broker’s collaterals. The basis On July 25 2010, Tehran Stock Ex- for calculation of market-wide position change (TSE) launched derivatives market limit is the shares number of the issuer of with trading single stock futures. In the the underlying stock dividing by the con- first step, 8 futures contracts on two listed tract size and then dividing by the trading banks stocks were offered and then it was symbols number of futures contracts on expanded to 12 underlying stocks by end the stock being traded at the same time. 2011. The futures contracts are denomi- Position limit of each natural individual is nated in Iranian Rial and settled physi- equivalent to 0.001 of market-wide posi- cally. Their maturity dates is of two-month tion limit. cycles. Final Settlement is physical. When no By the end of 2010, 12 companies underlying stock is owned by the seller at were listed in futures market. The compa- the end of the last trading day, the penalty nies are: of this is 1% of the contract value based on 1.Parsian Bank the last daily settlement price in the trad- 2. Karafarin Bank ing period of the contract, which is trans- 3.Chadormalu Mineral & Ind. Co. ferred to the buyer. If the closing price of 4.Saipa Co. the underlying stock in the spot market 5.Esfahan’s Mobarakeh Steel Co. at the end of the trading session of the 6.Iran National Copper Industries Co. last trading day is more than the last daily 7.Ghadir Investment Co. settlement price in the trading period of 8.Mines & Metals Development In- the contract, the difference is transferred vestment Co. from the seller account into the buyer 9.Iran Telecommunications Co. account. Penalty of non-payment of the 10.Mellat Bank contract value by the buyer based on the 11.Khark Petrochemical Co. last settlement price until 12 o’clock of the 12.Sobhan Pharmaceutical Co. first day of the delivery period is 1% of the Underlying stocks are common stocks contract value which is received from the listed on Tehran Stock Exchange (TSE). buyer account into the seller account. If Each single stock future is assigned a ticker the closing price of the underlying stock in symbol (Underlying Stock -Maturity Year- the spot market at the end of the trading Maturity Month). session of the last trading day is less than Trading hours are 09:00 am to 12:30 the last daily settlement price in the trad- pm of Tehran time, Saturday through ing period of the contract, the difference Wednesday of the regular business days of is transferred from the buyer account into TSE. Contract size is the number of shares the seller account. that makes the average value of the con- tract equal to 20,000,000-30,000,000 Rls.
Page 19 2010 Tehran Stock Exchange ANNUAL REPORT
Business Operations and Achievements TSE has taken numerous actions in the •To study on the establishment of line of its development plans for increase futures market, provide required regula- of market liquidity and transparency, pro- tions with cooperation of SEO, and devel- motion of market integrity and public op trading system. confidence, enhancement of market ac- •To develop trading rules for option cess through updated technology, market contracts, and decide on pricing model awareness programs, interaction with the and margin determination method of op- government and authorities, diagnosis of tions. listed issuers problems and deficiencies, •To study and develop new formats for completion of regulations and develop- financial reporting of members and- par ment of required rules and procedures, ticipate in planning an integrate system of and introduction of new financial instru- financial reporting by members. ments. Some of the above mentioned ac- •To study and plan marketing system tions are: for companies with potential for being •To develop market surveillance listed in TSE. mechanisms and to apply ownership con- •To develop guidelines and indices of trol software in the companies subject to corporate governance, internal controls article 44 of Constitution, with coopera- and investor relations. tion of SEO. •To update the strategic plan of TSE •To enact regulations and develop and plan and establish the system of mon- trading procedures in order to facilitate itoring the plans in order to obtain the online trading and provide direct access to qualitative and quantitative goals of the the market. company. •To study on the possibility of and pro- •To perform some road shows in other vide relevant procedures for listing TSE’s countries for more introductions of invest- shares. ment opportunities to foreign investors.
Future Outlook (2011) Operating plans of 2011 have been meet market participants’ needs. developed in the line of the strategic plan 4.To develop market awareness, pro- and in the way to meet the most impor- mote reporting system enhance account- tant needs of TSE and capital market. The ability to stakeholders, and increase the main goals and objectives of TSE are: number of active shareholders. 1.To develop and strengthen the de- 5.To increase trading volume and im- rivatives market through introduction prove liquidity through revising and up- of option contracts and future contracts dating trading rules and introducing new on new underlying assets, upgrading the trading mechanisms. trading system and enhancing market ac- 6.To promote market integrity and cess. transparency through promotion of mar- 2.To launch fixed income securities ket surveillance mechanisms and increase market (participation certificate and Su- of using mechanized and efficient moni- kuk) with the aim to facilitate financing toring systems. through capital market and create new 7.To enhance international coopera- investment opportunities. tion in order to share information and -ex 3.To develop financing system through periences, introduce common products, identification and attraction of new issu- and promote technical knowledge of ex- ers, increase interactions with listed issu- perts. ers and plan relevant financial services to Page 20 2010 Tehran Stock Exchange ANNUAL REPORT
Corporate Governance The Board of Directors Efficient policies of corporate -gover dards, providing full and transparent infor- nance are critical for true and sound per- mation, and full compliance with govern- formance of the capital market and total ing laws and regulations. economy, and attraction and maintain of The board of directors appointed by public confidence. Inefficient corporate shareholders in 2010, through holding 21 governance may decrease the market con- meetings, has made efforts to create effi- fidence that in turn results in outflow of cient governance in the line of sharehold- resources or liquidity crisis and price fall er’s interests and balance in the interests in TSE. In fact, TSE is accountable to not of different stakeholders including cus- only shareholders but also investors and tomers, employees, investors and the so- its other members. TSE has developed ciety. The board of directors has 3 special- its corporate governance regulations and ized committees and 2 sub-committees. determined some expectations from the board of directors and its committees, in the line of meeting the highest ethic stan- Members of the Board of Directors Member of the Board of Directors Legal Person Position
Tadbir Investment co. Hamidreza Rafiee Keshtli Chairman Securities and Exchange Brokers Association Khosro pourmemar Vice Chairman Social Security Investment Co. Hossein Salimi Non-executive member Bank-e- Mellat Brokerage Co. Mohammad Ebrahim Pourzarandi Non-executive member Iran Melli Investment Brokerage Co. Amir Hossein Erza Non-executive member Hafez Brokerage Co. Mohammad Reza Rahbar Non-executive member Bank Tejarat Seyed Mojtaba Fahim Hashemi Non-executive member Securities and Exchange Organization Ali Hosseini SEO representative Hasan Ghalibaf Asl CEO
Page 21 2010 Tehran Stock Exchange ANNUAL REPORT
Auditing Committee The committee is responsible for agement with external auditors in relation monitoring internal and external auditors, to financial reports. suggesting external auditors to the board •To approve initially all audit and non- of directors or shareholders for appoint- audit services rendered by the audit firm. ment, deciding on the external auditors’ •To use external counsels, accountants fees and removal of them, reviewing audit and other experts if required. areas and times, receiving audit report, •To inquire employees or external in- ensuring timely and true improving ac- dividuals in order to get required informa- tions taken by the management against tion. deficiencies, defects, and any noncompli- •To hold meetings with managers, ex- ance. The audit committee consists of 5 ternal auditors or external counsels if re- members, at least 2 of whom are non-ex- quired. ecutive members of the board of directors •To establish internal control system in and the others are external individuals order to ensure that all operation of the appointed by the board of directors. The company are in the line of its goals and in audit committee members and chairman the framework of laws, regulations and are appointed by the board of directors. the article of association. The audit committee has the following au- •To ensure financial reports integrity thorities: and transparency. •To suggest external auditor for ap- pointment and decide on its fees. The au- dit firm reports to the committee before reporting to the general annual meeting. •To monitor and assess the external auditor performance. •To settle any disagreements of man-
Page 22 2010 Tehran Stock Exchange ANNUAL REPORT
Risk Management Committee The committee is responsible for mon- sources to risky areas. itoring the management performance in •To assess compliance with other poli- relation to strategic policies, and market, cies and guidelines. liquidity, operation and reputation risks •To assess economy condition and ef- management. The committee assesses fectiveness of resources application. and controls risk management and re- •To review the process of detecting ports to the board of directors. The com- significant risks. mittee has the following responsibilities: •To review management information •To oversee development and execu- adequacy and internal control structures. tion of short term strategic plans of TSE. •To oversee efficiency of risk manage- •To oversee effectiveness of ensuring ment related to corporate governance. the compliance with rules and regulations. •To oversee required controls on •To review policies and procedures of frauds and conflict of interests. risk management. •To review changes in risk manage- •To review risk management frame- ment framework. work. •To oversee effectiveness of risk man- •To report significant risk exposures agement and ensure that risk manage- and offenses. ment is considered in budget planning. •To oversee leading of required re-
Remuneration Committee The committee oversees compensa- and regulations. tions related to CEO and his deputies. It • To monitor compensation meth- consists of non-executive members of the ods and incentive plans, assess CEO’s board of directors, chief executive officer performance in the line of the company’s and one of his deputies. The committee goals and decide on his compensations has the following responsibilities: based on the assessment. • To execute all the Board’s respon- sibilities related to salaries and wages of CEO. • To provide a report of bonuses related to the board of directors and CEO in the annual report, according to rules
Page 23 Khaju Bridge is arguably the finest bridge in the province of Isfahan, Iran.It was built by the Per- sian Safavid king, Shah Abbas II around 1650 C.E.
inancial StatementsF For the Fiscal Year Ended March 20, 2011
Page 24 2010 Tehran Stock Exchange ANNUAL REPORT
Report of Independent Auditor To the General Assembly Tehran Stock Exchange Corporation
1. We have audited the balance sheet of Tehran statements have been examined by other indepen- Stock Exchange Corporation as of 1389 and the in- dent auditors. They issued an unqualified report on come and cash flow statements of the Company for 19/1/1389. the fiscal year ended 3/20/2011,together with notes 5. The transaction included in the explanatory 1-32 thereof. These statements have been prepared note 31 to the financial statements has been exam- by the board of directors. The responsibility of finan- ined as all transactions subject to the Article 129 of cial statements is with the company’s Board of Direc- the Commercial Code as amended, and related party tors and our responsibility is to express an opinion transactions, that are conducted and reported to us on the financial statements based on our audit, and by the Company’s Board of Directors. We have not also to report on any noncompliance with the legal observed any evidences indicating that the trans- requirements set out in the Commercial Code as action has not been conducted on the appropriate amended and the company’s provisions of the Ar- trade conditions and in normal course of the com- ticles of Incorporation. pany’s activities. 2. We conducted our audit in accordance with 6. We have examined the report of the Board of the Auditing Standard of financial statements. These Directors to the Annual General Meeting of the com- standards require that we plan and perform the audit pany in respect of the Company’s general status and to obtain reasonable assurance about whether the activities. Based on our examinations, we have not financial statements are free from material misstate- observed any material cases of non-conformity of ments. The audit includes examining, on a test basis, the provided information with books and records evidences supporting the amounts and disclosures submitted to us by the Board of Directors. in the financial statements. An audit also includes assessing the accounting principles and procedures used and significant estimates made by the Board 1 May 2011 as well as evaluating the overall fairness of financial Dayarayan Audit and Financial Services Firm statement presentation. We believe our audit pro- vides a reasonable basis for our opinion. 3. In our opinion, the financial statements re- ferred to above present fairly in all material aspects in conformity with Iranian Accounting Standards. 4. Corresponding amounts included in financial
Page 25 2010 Tehran Stock Exchange ANNUAL REPORT
Tehran Stock Exchange Corporation Financial Statements For the Fiscal year ended March 20, 2011
we would like to submit the financial statements of Tehran Stock Exchange Cor- The financial statements have been pre- poration for The fiscal year ended March pared according to the National Accounting 20, 2011. Components of the financial state- Standards and they have been approved by ments are as followings: the Board of Directors on March 20, 2011. •Balance sheet •Income statement Retained earnings account •Cash flow statement •History •Basis for preparing Financial Statements •Significant Accounting policies •Notes to the Financial Statements (items and numbers)
Members of the Board of Directors
Member of the Board of Legal Person Position Directors Tadbir Investment co. Hamidreza Rafiee Keshtli Chairman Securities and Exchange Khosro poormemar Vice Chairman Brokers Association Social Security Investment Co. Hossein Salimi Non-executive member Bank-e- Mellat Brokerage Co. Mohammad Ebrahim Non-executive member Poorzarandi Iran Melli Investment Amir Hossein Erza Non-executive member Brokerage Co. Hafez Brokerage Mohammad Reza Rahbar Non-executive member Bank Tejarat Seyed Mojtaba Fahim Hashemi Non-executive member Securities and Exchange Ali Hosseini Organization Hasan Ghalibaf Asl Managing director
Page 26 2010 Tehran Stock Exchange ANNUAL REPORT - 0 834 4500 2,635 3,666 2,895 1,615 12,173 42,727 47,227 86,804 23,409 12,149 48,592 297,545 344,772 150,000 Million Rials March 20,2010 March - 9,556 8,698 1,112 6,153 6,153 7,761 1,922 55,408 61,561 80,049 26,359 17,592 22,364 375,005 436,566 255,000 Million Rials March 20,2011 March 14 15 19 18 18 17 13 16 20 21 21 Note Other accounts Payable Payable Other accounts income Deferred Provisions for Employees’ Termination Termination Employees’ for Provisions Benefits Long- term loans Long- term loans received loans received Liabilities Total Equity liabilities and shareholders’ Total Total Current Liabilities Current Total Provision for Taxes for Provision Liabilities & shareholders’ equity Liabilities & shareholders’ Current Liabilities: Current Payable Accounts Trade Dividends Shareholders’ equity: Shareholders’ paid totally) million shares capital(255 Paid-in reserve Legal equity Shareholders’ Total Noncurrent liabilities: Noncurrent Total Non-Current Liabilities Non-Current Total prudential reserve prudential Retained earning Retained 809 4,016 5,247 9,267 March March 15,432 30,221 51,550 32,300 195,930 229,892 114,880 344,772 20,2010 Million Rials 1,581 1,164 13,472 30,221 24,521 11,525 60,487 190,360 103,235 241,042 195,524 436,566 Million Rials March 20,2011 March 6 4 5 7 8 9 11 12 10 Note Trade Accounts Accounts Trade Receivable Long Term Long Term Investments Total Assets Total Non-Current Assets: Non-Current Other Assets Total Non-Current Non-Current Total Assets Assets Current Assets: Current Cash & Bank Short Term Investments Other Accounts Receivable Prepayments Tangible Fixed assets Fixed Tangible assets Intangible Total Current Assets Current Total Balance Sheet March 20, 2011 March Balance Sheet Explanatory notes are an integral part of financial statements.
Page 27 2010 Tehran Stock Exchange ANNUAL REPORT Income Statement For the Fiscal year ended March 20, 2011
Fiscal year ended Fiscal year ended Note March 20,2011 March 20,2010
Million Rials Million Rials Services revenue 22 202,647 170,441 Cost of services 23 (79,626) (71,713) Gross income 123,021 98,728 Administrative and general expenses 24 (35,121) (22,985) Operating profit 87,900 75,743 Financial expenses - (439) Net other non-operating income and 25 42,621 34,996 expenses Income before tax 130,521 110,300 Income tax 17 (21,661) (20,624) Net income 108,860 89,676 Earnings per share 30 427 352 Retained Earnings Account
Net Income 108,860 89,676 Retained earnings at the beginning of the 93,286 66,938 period Prior period adjustment 26 (6,482) - Retained earnings at the beginning of the 86,804 66,938 period-adjusted Capitalization 20 (57,000) - 29,804 66,938 Allocatable income 138,664 156,614 Income allocation: Dividend 16 (30,000) (45,000) Board of directors bonus (1,400) (1,232) Legal reserve 21 (5,443) (4,716) Prudential reserve 21 (21,772) (18,862) Allocated income during the period (58,615) (69,810) Retained earnings at the end of the 32 80,049 86,804 period
Explanatory notes are an integral part of financial statements.
Page 28 2010 Tehran Stock Exchange ANNUAL REPORT Cash flow Statement For the Fiscal year ended March 20, 2011
Note Fiscal year ended March Fiscal year ended March 20,2011 20,2010 Million Rials Million Rials Operating activities: Net cash inflow from operating activities 27 99,166 57,583 Return on investments and servicing of finance: Interest received from short-term 39,182 34,256 investment Earnings received from long-term 3,205 2,055 investment Dividends Paid (29,693) (45,724) Net cash inflow (Outflow) from 12,694 (9,413) Investment Returns and servicing of finance Income tax: Income Tax paid (17,608) (6,718) Investing activities: Receipt for short- term investment sales 5,570 - Payment for acquisition of short-term - 5,130 investments Payments for acquisition of other assets (20,000) (30,000) payment for acquisition of tangible fixed (58,487) (8,515) assets Receipts for acquisition of tangible fixed 1,330 506 asset sales Payments for acquisition of intangible (890) (171) assets Net cash inflow (out flow) from investing (72,477) (43,310) activities Net cash inflow (out flow) before 21,775 1,858 financing activities Financing activities: Loan principal paid (2,501) (2,502) Net cash increase (decrease) 19,274 4,360 Cash Balance at the beginning of the 5,247 9,607 period Cash balance at the end of the period 4 24,521 5,247 Non-cash trades 27-1 1,103 1,304
Explanatory notes are an integral part of financial statements.
Page 29 2010 Tehran Stock Exchange ANNUAL REPORT
1. Background 1.1. History • Cooperation and Consistency Tehran Stock Exchange Corporation with the other financial institutions un- has been founded according to the Secu- dertaking responsibilities related to secu- rities Market Law approved on November rities trades, making researches, training, 22, 2005, and registered with the number culture developing, and cooperation with 286502 with the Companies & Non-com- other Iranian and foreign Exchanges to mercial Institutions Registration Office in share information and experiences. Tehran. The head office of the company • Supervising well conduction of is located in Tehran and has 21 Branches listed securities transactions and supervis- within the country and an independent ing issuers’ activities. Providing, collecting, registered branch in Kish Island by now. processing and issuing information related 1.2. Main Activities to securities, and performing other duties According to the Provision 2 of the Ar- according to the law and regulations. ticles of Incorporation, the main activities 1.3. Employment position of the company are: The number of employees at the end • Establishing, organizing and op- of the financial period is as follows: erating the Stock Exchange for making trades on listed securities by Iranian and foreign parties according to the law and regulations. • Listing securities including securi- ties of foreign issuers according to the law and regulations. • Determining the brokerage mem- bership conditions for different groups of members, admitting the membership ap- plicants, and enactment and enforcement of professional and disciplinary principles. • Providing conditions necessary for fair access of members to trades of listed securities.
Permanent and temporary employee March 20,2010 March 20,2011 246 255
2. Basis for preparing financial statements The financial statements of the Com- pany have been prepared mainly on his- torical cost basis and where necessary current values have been used.
Page 30 2010 Tehran Stock Exchange ANNUAL REPORT
3. Significant accounting policies 3.1. Investments ful life of fixed assets or an improvement Long term investments are valued at of their output quality, are accounted for cost less any provision for impairment of as capital costs and depreciated during any investment. Income from investments the remaining useful life of the relevant in subsidiaries is recognized when profit is assets. Costs necessary to maintain the approved by the general meeting of share- normal capacity of the assets like main- holders of the investee until approval of tenance and insignificant repairs, are ac- financial statements, and income from counted for as expenses of the period investments in associates is recognized when incurred. when profit is approved by the general 3.2.2. Depreciation of tangible fixed meeting of shareholders of the investee assets are calculated based on the esti- until balance sheet date. Short term in- mated useful life of the asset, according to vestments are recognized at least cost and the depreciation regulations included in net realizable value. the Article 151 of the amendment of the 3.2. Tangible fixed assets Direct Taxation Act and on the basis of the 3.2.1. Tangible fixed assets are carried following rates and methods: on the cost basis. Costs for betterment and substantial repairs resulting in a sig- nificant increase in the capacity and use-
Assets Depreciation rate Depreciation method Buildings 7% Diminishing balance Computer system and hardware 3 & 10 year Straight line Administrative equipments 10 year Straight line Vehicles 25%, 35% Diminishing balance
3.2.3. Fixed assets acquired and used cording to their last monthly fixed salary within a month are depreciated and car- and continuous benefits for every year of ried from the beginning of the next month. their service. When an asset is not used for any reason 3.5. Revenue recognition like work stopping, its depreciation will be Revenue sources of the Company are equivalent to 30% of the depreciation rate commissions from trading, admitting and included in the table above. listing fees, brokerage fees, broker- ser 3.3. Foreign currency translation vices and other sources. The ceiling of Foreign currency items with the for- rates for broker services is determined by mal exchange rate at the balance sheet the Security Exchange Organization. The date and expenses carried in foreign cur- income resources are recognized as real- rency at historical cost are translated with izing over the time, in the framework of the formal exchange rate at the date the approvals and they are carried on accrual transaction is entered into. Differences basis. arising from settlement or exchange of 3.6. Intangible assets foreign currency items are recognized as Intangible assets are carried on the income or expenses of the period when cost basis and amortizable intangible as- incurred. sets (software) are amortized until maxi- 3.4. Provision for employees’ mum 3 years. termination benefits Provision for employees’ termination benefits are calculated and carried ac-
Page 31 2010 Tehran Stock Exchange ANNUAL REPORT
4. Cash The company’s cash in hand at the balance sheet date are as following March 20,2011 March 20, 2010 Million Rials Million Rials Bank accounts (Rial) 24,285 4,618 Bank accounts (foreign currency) 82 461 Fund 154 168 Total 24,521 5,247
5. Short – term investments
Notes March 20,2011 March 20,2010 Million Rials Million Rials Time deposits 5-1 134,000 84,000 Contribution bonds 5-2 32,360 77,930 Mutal funds 5-3 24,000 34,000 Total 190,360 195,930
5.1. Time deposits with banks are in- contribution bonds and ministry of energy cluding 3 time deposit certificates with contribution bonds with 17% and 18% in- 17.5% interest rate and 2 time deposit terest rate respectively. certificates with 17% interest rate. 5.3. This amount is mainly relevant to 5.2. This amount is relevant to pet- investment fund certification with 17% in- rochemical and hydroelectric industries terest rate.
Page 32 2010 Tehran Stock Exchange ANNUAL REPORT
6. Trade accounts receivable The receivables are including:
Note March 20,2011 March 20,2010 Million Rials Million Rials Listed companies (listing fees) 6-1 7,493 8,179 Central depository and settlement corporation 3,954 3,304 Brokerage(rent and services) 1,519 2,964 Other 506 985 13,472 15,432 6.1. Listing fees receivable from listed million Rials was carried as a provision for companies at the end of the year 1389 bad debts. were 8,886 million Rials from which 1,393
7. Other Accounts Receivable
Amount Amount Million Rials Million Rials March 20,2011 March 20,2010 Loans to Employees (current portion) 4,947 3,180 Security for building lease 2,500 2,250 Income from short-term investment 2,130 2,597 Over the counter Co. (Fara bourse) 266 91 National oil Refining and Distribution Co. 191 191 Security for Visa card 116 110 Other 1,375 848 11,525 9,267
8. Prepayments The Balance of prepayments is including:
March 20, 2011 March 20, 2010 Million Rials Million Rials Costs, goods and services 663 2,848 Tax 498 1,010 Other 3 158 1,164 4,016
Page 33 2010 Tehran Stock Exchange ANNUAL REPORT
9. Tangible Fixed Assets
Cost- million IRR Retained depreciation-million Rials Book value- million Rials
Balance Balance Balance Balance Balance Balance Sold Transfers During Sold Description on assets and on on the assets on on on 20/3/2009 Additions Others 20/3/2010 20/3/2009 year 20/3/2010 20/3/2009 20/3/2010
Land 26,967 - (990) - 25,977 - - - - 25,977 26,967 Building 19,060 579 (359) - 19,280 2,042 1,230 (46) 3,266 16,054 17,018 Equipment, Fixtures and 10,340 2,709 (342) 20 12,727 3,568 2,327 (145) 5,750 6,977 6,772 Computer Vehicle 1,111 300 - - 1,411 358 189 - 547 864 753 Total 57,478 3,588 (1,691) 20 59,359 5,968 3,746 (191) 9,523 49,872 51,510 Capital 40 53,363 - (40) 53,363 - - - - 53,363 40 prepayments Total 57,518 56,951 (1,691) (20) 112,758 5,968 3,746 (191) 9,523 103,235 51,550
9.1. All tangible fixed assets amount- kerage. ed 30,427 million Rials are insured against 9.2.1. Details related to the income fire, flood and earthquake, from sale of apartment, equipments, fix- 9.2. Land and building sales refer to tures and computer are as following: an apartment located in Ghazvin floor, which is sold to Tadbirgaran-e-farda bro-
Description Cost Retained depreciation Book value Sale price Sale profit Million Rials Million Rials Million Rials Million Rials Million Rials Million Rials Land 990 - 990 1,400 97 Building 359 (46) 313 - - 1,349 (46) 1,303 1,400 97 Equipment, Fixtures and Computer 342 (145) 197 422 225 Total 1,691 (191) 1,500 1,822 322
Income from sale of the above men- saadatabad street with an area of 2523/34 tioned assets are included in note 25. square meters. Total price of the land is 9.3. Excess prepayments related to 160,606 million Rials. the capital includes 52,990 million Rials paid for 70% value of a land located in
Page 34 2010 Tehran Stock Exchange ANNUAL REPORT
10-Intangible Assets
The intangible assets are including March 20, 2011 March 20,2010 Million Rials Million Rials Software 761 - Regional floor Branches 704 697 2 line of PRA link – Hafez floor 64 64 14 Mobile lines & 12 telephone lines 52 48 Total 1,581 809
10.1. Software in the company is including
Cost Retained amortization Book value million Rials Million Rials million Rials Balance on Purchases Balance on Balance on Amortization Balance on Balance on Balance on 20/3/2009 20/3/2009 20/3/2009 20/3/2009 20/3/2010 20/3/2009 Future - 700 700 - 97 97 603 - Contract Software Other - 179 179 - 21 21 158 - Software Total - 879 879 - 118 118 761 -
11-Long –Term Investments Long term investments in companies are including
No. of Shares March March 20, 2011 20, 2010 Million Rials Million Rials Over the counter 20,000,000 20,000 20,000 Corporation of Iran Central depository 10,000,000 10,000 10,000 corporation Iran financial center 199,998 200 200 (private Joint) Iran mercantile Exchange 13,000 21 21 corporation Total 30,221 30,221
Page 35 2010 Tehran Stock Exchange ANNUAL REPORT
A Summary of Financial Statement of Iran Central Financial center Company is as follows: Balance Sheet Mar 20, 2011 (29/12/1389)
March Liabilities & Shareholders’ March Assets 20, 2011 Equity 20, 2011 Million Rials Million Rials Current assets 200 Current liabilities 56 Non-current Capital (200,000 Shares / 1000 10 200 assets Rials / Paid) Retained Loss (46) Total liabilities & shareholders’ Total 210 210 equity
12. Other assets Other assets are including
March March 20, 2011 20, 2010 Million Rials Million Rials Time investment deposit certificate 50,000 30,000 Employee’s loan (long term) 10,487 2,300 Total 60,487 32,300
13. Trade Accounts payable The amount due to accounts payable it from Central Depository Corporation, in that is 7,761 million Rials is for balance of excess of broker commissions. receivables from brokers that TSE received
Page 36 2010 Tehran Stock Exchange ANNUAL REPORT
14. Other Aaccounts payable
Note March 20, 2011 Mar 20, 2010 Million Rials Million Rials Employee’s saving fund 14-1 3,386 2,427 Provision for incurred and unpaid 1,312 570 expenses Taxes payable 878 663 Non-recognized settlements 706 1,115 Insurance Premium 666 514 Securities and Exchange Organization 375 5,499 Other 2,233 1,385 Total 9,556 12,173
14.1. Amount due to employees sav- employees from the amount, according to ing fund are for 3% deductions from em- the board of director’s approval. ployees salary in addition to 3% due from the employer. A loan will be paid to the
15. Deferred Income In the line of best utilization of the com- Rials of which was recognized as non-op- pany’s resources (liquidity management), erating income and the non-depreciated an amount of 60,000 million Rials has balance amounted as 8,698 million Rials been deposited with banks with the inter- was included under the above mentioned est rate of 17%. According to the agree- heading and was carried as non-operating ments, the one-year interest amounted income in the next year. as 10,200 million Rials was received at the beginning of the period, 1,502 million
Page 37 2010 Tehran Stock Exchange ANNUAL REPORT
16. Dividends
March March 20, 2011 20, 2010 Million Rials Million Rials Dividend in 2009 (200 Rls for 1 share) 30,000 - Dividend in 2008 (300 Rls for 1 share) 45,000 45,000 Dividends in 2007 (250 Rls for 1 share) 37,500 37,500 Divide has in 2006 (25 Rls for 1 share) 3,750 3,750 Dividends paid (2006-2010) (114,328) (84,635) Balance at the end of the year 1,922 1,615
During the financial period, dividend tities except those with insufficient infor- has been paid according to the schedule mation. announced, to all individuals and legal en-
17. Provision for tax Summary of the provision for taxes is as the followings
Fiscal March 20,2011 (Million Rials) March Basis for 20,2010 recognition Year Tax Million Rials declared Income declared assessed finalized paid provision provision profit (Loss) taxable balance balance 2007 83,029 53,246 13,311 14,590 13,859 13,859 - - Taxes and 2008 79,819 26,443 6,888 9,822 9,666 9,666 - 2,785 books auditing 2009 110,300 62,429 15,990 20,624 - 15,607 4,698 20,624 unaudited 2010 130,521 86,644 21,661 - - - 21,661 - 26,359 23,409
Page 38 2010 Tehran Stock Exchange ANNUAL REPORT
18. Loans received
The loans Received are including an employees on the basis of an agreement loan from Bank Melli of Iran with 4% year to bourse branch Bank Melli of Iran. interest in order to pay a housing loan to
March 20, 2011 March 20, 2010 Million Rials Million Rials Principal 7500 7,500 Interest (first Year) 300 300 Interest (second Year) 139 139 Interest (over the period) 144 - 8,083 7,939 Paid in year 1387 (Principal and (1,968) (1,968) Interest) Paid in year 1388 (principal) (2,502) (2,502)
Paid in year 1389 (principal) (2,501) -
Balance 1,112 3,469 Long term portion - (834) Current portion 1,112 2,635
19. Provision for employees’ termination benefits Turnover of this account is as follows March 20, 2011 March 20, 2010 Million Rials Million Rials Balance at the beginning of the year 3,666 2,375 Paid out during the year (282) (546) Current year provision 2,769 1,837 Balance at the end of the year 6,153 3,666
Page 39 2010 Tehran Stock Exchange ANNUAL REPORT
20. Capital Capital of the company at the begin- reserve and retained profit. The first phase ing of the year as amounted 150 billion of the capital increase has been made in Rials, consists of 150 million non-bearer the reported year and the capital reached full-paid shares having a nominal value 48 and 57 billion Rials from prudential re- of 1,000 Rials. According to the approv- serve and retained profit respectively. Ac- als of the extraordinary general meeting cording to the article 9 of the Constitution on 6/10/2010, capital increase could be at the balance sheet date the company’s allowed to the extent of 150 billion Rials shareholders are classified as: in two phases (70% in the first phase and 30% in the second phase) from prudential
Mar 20,2011 Mar 20, 2010 Shareholders Shares % Shareholders Shares % Brokers 77 86,592,900 34 77 50,937,000 34 Financial 70 100,017,800 39 71 58,834,000 39 institutions Other 5,729 68,389,300 27 5,806 40,229,000 27 Total 5,876 255,000,000 100 5,954 150,000,000 100
21. Reserves Legal Reserve Prudential Reserve Million Rials Million Rials Balance at the beginning of the year 12,149 48,592 Raising during the year 5,443 21,772 Transfer to the capital - (48,000) Total 17,592 22,364
22. Services Revenue
Note March 20, 2011 March 20, 2010 Million Rials Million Rials Income from trading commission 22-1 131,737 105,268 Income from broker services 22-2 44,390 35,690 Income from listing fees 22-3 19,921 23,232 Rentals 6,599 6,231 Other - 20 Total 202,647 170,441
Page 40 2010 Tehran Stock Exchange ANNUAL REPORT
22.1. According to the approval of the 22/6/2010 on and it has been received by Securities & Exchange Organization, in- the Central Depository Company, which come from trading commission amounted details have been provided bellow. The as 131,579 million Rials has been calcu- remainder (158 million Rials) relates to in- lated, based on 1/4 value of per transac- come from future contracts commission. 1000 tion, up to 200 million Rials (22.33 Thou- According to the approvals of the Securi- ties and Exchange Organization, the future sand dollars) ceiling for the first quarter of 0/8 contracts commission has been based on the year, and based on value of per 0/8 1000 . value of a contract. transaction up to 200 million Rials from 1000
March 20, 2011 March 20, 2010 Million Rials Million Rials Normal transactions (Retail) 117,970 88,626 Whole trading 13,600 16,600 Market maker transactions 9 42 Total 131,579 105,268
22.2. Income from broker services Notes March 20, 2011 March 20, 2010 Million Rials Million Rials Trading system fees 22-2-1 31,042 22,215 Brokerage fees 8,725 8,725 Exchange floor trading station 4,623 4,750 fees Total 44,390 35690
22.2.1. Increases in trading system fees trading stations and brokers’ performance and commissions result from increases in respectively.
22.3. Income from listing fees is as follows
Note March 20, 2011 March 20, 2010 Million Rials Million Rials Listing fees 22-3-1 16,037 15,854 Admission fees 22-3-2 3,884 7,378 19,921 23,232
Page 41 2010 Tehran Stock Exchange ANNUAL REPORT
22.3.1. According to the approval of Admitting fees are annually as equivalent the Securities and Exchange Organization, to 0.002 of capital and up to 500 million Listing fees are as equivalent to 0.002 of Rials, for the companies that their capital capital and up to 50 million Rials for every are equivalent or less than 250 billion Rials year. and up to 1000 Million Rials for the com- 22.3.2. According to the approval of panies that their capital are more than the Securities and Exchange Organization, 250 billion Rials .
23. Cost of rendered services: The costs of rendered services are including:
Note March 20, 2011 March 20, 2010 Million Rials Million Rials Direct wage and salary 23-1 48,249 37,345 Repair and maintenance of Regional 23-2 18,127 15,959 floors Floors security forces fees 4,780 3,198 Trading system management 23-3 3,219 12,500 Computers, communications and 2,924 1,793 technology costs Marketing and development of markets 23-4 1,127 94 and financial instruments Conference and exhibition costs 986 601 Council duty 214 223 Total 79,626 71,713
23.1. Items of Direct wages are including:
March 20, 2011 March 20, 2010 Million Rials Million Rials Salary and wages 15,360 13,412 New year bonus and rewards 12,444 9,898 Legal and job benefits 7,996 5,335 Insurance premium by employer 4,505 3,718 Over time pay 3,847 2,209 Employee’s termination benefits 2,018 1,353 Mission allowance and traveling costs 1,107 594 Others 972 826 Total 48,249 37,345
Page 42 2010 Tehran Stock Exchange ANNUAL REPORT
23.2. The cost of supply and maintenance of regional floors are including
March 20, 2011 March 20, 2010 Million Rials Million Rials Rentals for regional floors buildings 9,266 7,650 Depreciation costs 3,591 3,226 Water, Electricity, Telephone and Gaz 1,872 1,396 Repair and maintenance of floors 1,684 1,772 Other 1,714 1,915 Total 18,127 15,959 23.3. According to the contract tem management has been paid concluded for the first quarter of to Technology Management co. of the year, the cost of trading sys- Tehran stock Exchange. 23.4 The amount is related to launching the future contracts market in this year.
24. General & Administrative Expenses
Note March 20, 2011 March 20, 2010 Million Rials Million Rials Salaries and wages 24-1 24,795 16,874 Rent of building 2,169 2,131 Bad debt expenses 24-1-1 1,393 - Council duty 1,106 518 Water, Electricity, Phone and Gas 1,040 698 Meetings 741 98 Administrative and consumable supplies 536 362 The board and committees attending compensation 372 349 Membership fee of professional associations 366 386 Publication cost 345 389 Depreciation Cost 273 229 Repair and maintenance 196 73 Post 38 35 Others 1,751 843 Total 35,121 22,985
Page 43 2010 Tehran Stock Exchange ANNUAL REPORT
23.1. Compensation costs are including
March 20, 2011 March 20, 2010 Million Rials Million Rials Salaries, wages 6,336 4,924 bonus and rewards 7,024 5,010 Legal and job benefits 4,742 3,167 Over time payments 2,465 1,262 Insurance premium by employer 1,891 1,279 Mission allowances and traveling costs 1,008 389 Employees’ termination benefits 751 482 Others 578 361 Total 24,795 16,874
24.1.1. Increases in the costs are as a result of approvals of Ministry of Labor and Social Affairs and increase of over time hours.
25. Net other incomes and non-operating expenses Other income and non operating expenses are including
March 20, 2011 March 20, 2010 Million Rials Million Rials Bank deposit interest 23,951 33,545 Contribution bonds 14,764 2,016 Over the Counter Exchange company 2,200 800 dividend Central depository corporation’s dividend 1,000 1,250 Income from tangible fixed assets sale 322 - Iran mercantile Exchange company 5 5 dividend Net profit (loss) of the foreign currency (2) 59 exchange Fines and claims (Note 24-1) 0 (2,825) Other non-operating income 381 146 Total 42,621 34,996
Page 44 2010 Tehran Stock Exchange ANNUAL REPORT
26. Prior Period Adjustments The item as amounted 1,848 million the prior period adjustments have been Rials relates to adjustments to provision improved and restated in correspond- for tax of the financial year 1387, which ing financial statements. Then the corre- has been paid to Tax affairs Organization sponding items do not match to financial and the remainder (4,634 million Rials) re- statements provided in the previous finan- lates to the difference of provision for tax cial year. in the financial year 1388. 26.1. In order to provide a proper pic- ture of the financial position and opera- tion results, corresponding items of provi- sion for tax and retained profit related to
Note The balance in the previous Debtor Creditor The balance in the financial statements current financial statements Million Rials Million Million Million Rials Rials Rials provision for tax 17 16,927 - 6,482 23,409 Retained profit 93,286 6,482 - 86,804 Total 6,482 6,482
27. Reconciliation of Operating Profit (loss) Reconciliation of operating profit (loss) to net cash inflow (outflow) from operating activi ties is as the followings:
March 20, 2011 March 20, 2010 Million Rials Million Rials Operating profits 87,900 75,743 Depreciation expenses 3,864 3,454 Net increase in employees’ termination benefits 2,487 1,291 Increase in operating accounts receivable (8,462) (12,347) Increase in prepayments 1,750 (1,916) Increase (decrease) in operating accounts payable 3,786 (7,488) Deferred income 8,698 - The board of directors’ bonus (1,400) (1,232) Other non-operating income and expenses 543 78 Total 99,166 57,583
Page 45 2010 Tehran Stock Exchange ANNUAL REPORT
28. Contingent Lliabilities and Capital Oobligations 28.1. Capital obligations as amounted million Rials. 107, 616 million Rials are related to the 28.2. There is no material contingent 30% price of a land, that is 22,710 million liability at the balance sheet date to re- Rials and the remainder costs of it, 84,906 quire disclosure.
29. Post balance sheet date events No significant post balance sheet or disclosures in the financial statements, event has occurred requiring adjustments except what included in the note 26. 30. Eps of the period has been calculated common shares number of the fiscal year. based on the weighted average of the
31. Related parties transactions
Page 46 2010 Tehran Stock Exchange ANNUAL REPORT
Closing Relationship Transaction balance of Party Amount due to (from) Note Type details
Million Rials Million Rials A. Transactions subject to the Article 129 of the Commercial Code as amended Received dividend Board of - Directors 2,200 Member/Having 25 OTC a common bourd of directors member Allotment of 717 266 7 Expenses 2,917 266 7 B. other related parties 1000 -
Received dividend 25 Iran Central Depository and Investee Settlement Co. company Rentals and 167 73 7 Expenses 1,167 73 7 Sale of an Tadbirgaran-e-farda Brokerage Shareholder apartment located 1,400 100 7 in Ghazvin floor Fair value of the transaction has a significant difference with the transaction price.
32. Retained earnings at the end of the year Retained Earnings allocation depends on general assembly ratification Amount Million Rials Legal duties
Division of minimum 10% of net profit according to the Article 90 of the Commercial Code as am 10,886 ended.
Board of Directors proposal 25,500 Dividend proposed by Board of Directors Page 47 2010 Tehran Stock Exchange ANNUAL REPORT Appendices
The Arg of Karim Khan is a citadel located in the north-east of Shiraz, southern Iran. It was built as part of a complex during the Zand dynasty and is named after Karim Khan, and served as his living quarters. In shape it resembles a me- dieval fortress.
Page 48 2010 Tehran Stock Exchange ANNUAL REPORT Appendix 1 About TSE
The Arg-é Bam in Persian, “Bam citadel”) was the largest adobe building in the world, located in Bam, a city in the Kermān Prov- ince of southeastern Iran.
Page 49 20102010 TehranTehran Stock Stock Exchange Exchange ANNUALANNUAL REPORTREPORT
History Tehran Stock Exchange Corporation head office of the company is located in has been founded according to the Secu- Tehran and has 21 Branches within the rities Market Law approved on November country and an independent registered 22, 2005, and registered with the number branch in Kish Island by now. 286502 with the Companies & Non-com- mercial Institutions Registration Office in Tehran and demutualized in 2006. The
Capital and Shareholders According to the Securities Market 2.5% shares of TSE. TSE shareholders are Law, no legal or individual shareholder classified as brokers, financial institutions may hold directly or indirectly more than and others. Shareholders in 2010 Group Shareholders number Share number % Brokers 77 86,592,900 34 Financial institutions 70 100,017,800 39 Others 5729 68,389,300 27 Total 5876 255,000,000 100
Page 50 2010 Tehran Stock Exchange ANNUAL REPORT
Regulatory Framework Due to the capital markets develop- Exchange High Council and Securities & ment and the need for new regulation, the Exchange Organization. new Securities Act was passed by the Ira- The Securities & Exchange Council will nian parliament in 2005. The Act, which is be the highest authority and will be re- more comprehensive and advanced than sponsible for all related policies, market the previous one, has been passed to pro- strategies, and supervision of the market. tect investors’ rights and aimed at orga- The Chairman of the Council will be the nizing, and development of a fair, efficient Minister of Economy and finance; other and transparent securities market. The members are: Minister of Commerce, Act provides required regulation for the Governor of the Central Bank of Iran, Pres- primary market, prevention of financial ident of the Chamber of Commerce, Attor- violations, development of various finan- ney General, Chairman of the SEO, repre- cial instruments and financial institutions. sentative of the brokers association, three After passing the Act, some changes financial experts proposed by the Minister occurred in the legal structure of Iranian of economy and Finance and approved by securities market. According to the Act, a the Council of Ministers, and one repre- new regulatory body, called Securities & sentative for each commodity exchange. Exchange Organization (SEO) was estab- The SEO will be responsible for admin- lished to operate as a supervisor on leg- istrative and supervisory duties, governed islation and enforcement and other affairs by the Board of Directors. The SEO’s Board under the Law. In other words, the regu- of Directors will be elected by the Securi- lator of the Securities Market comprises ties and Exchange Council. two regulatory institutions: Securities &
Legal Structure of Iranian Securities Market
Securities & Exchange High Council
Securities & Exchange Organization
Commodity Other Financial Institutions Tehran Stock Exchange Exchange
Page 51 2010 Tehran Stock Exchange ANNUAL REPORT
Organizational structure The board of directors of TSE consti- erations of the Exchange through the vari- tutes 7 non-executive members appoint- ous department heads that report to him. ed by the shareholders of the company Managing director’s term of office is for for 2 years. These individuals appoint a two-year renewable term. managing director, who manages the op-
Board of Directors
Audit Committee Internal Aauditing Board Secretariat Department Risk Management Committee
Remuneration committee CEO
Market Department CEO Office
Public Relation and Internation- Legal Department al Department
Issuers & Mem- Research & Business Administration bers Development
Financial Department Issuers Department R&D Department
Administration Department Members Department Planning Department
IT Department Listing Department Training Department
Regional Floors Department
Page 52 2010 Tehran Stock Exchange ANNUAL REPORT
Tehran Regions Total Human Resources 151 104 255
Trading System TSE is open for trading five days a week follows: from Saturday to Wednesday, exclud- The best price (price priority) ing public holidays. Trading takes place Time of order priority through the Automated Trade Execution Under the price priority rule, a selling System from 9am to 12am, which is inte- (buying) order with the lowest (highest) grated with a clearing, settlement, deposi- price takes precedence. Under the time tory and registry system. priority rule, an earlier order takes prece- The trading system is an order driven dence over others at the same price. system, which matches buying and selling The trading system also generates and orders of the investors. Investors can place displays details of current and historical their orders with TSE accredited brokers, trading activity, including prices, volumes who enter these orders into the trading traded and outstanding buy and sell or- system. Then, the system automatically ders. This ensures that investors have the matches buy and sell orders of a particular required information to be able to make security based on the price and quantity informed investment decisions. requirements. The mechanism for which the price of equities is determined is as
Daily Price Fluctuations According to the rules, the price fluc- cific situation by the Board of the TSE in tuation is fixed to a maximum of 4% either case of unusual price movements. Short way from the last closing. Restriction on selling is not permitted and no minimum Rights is 8%. This can be changed in spe- trading lots is determined.
Trading Days Saturday-Wednesday Hours 9:00-12:00 Market segmentation Main market (main and secondary boards), secondary board System Automated Trading System (ATS) (order driven) Mechanisms Opening/Continuous auction Market-maker/ Specialists Selective Instruments Shares & Rights, Corporate Participation Bonds Currency Iranian Rial Real time information bid/ask, prices, Volume, Value and company announcements Dividend tax 22.5% tax levied on earnings at source From Company Capital gain tax None
Page 53 2010 Tehran Stock Exchange ANNUAL REPORT
Trading floor is open to investors dur- which oversees the trading floor that con- ing operating hours and provides facili- tains touch-screen terminals which can be ties like large screens displaying real time used by investors to view the details of trading data. Additional space is available outstanding buy and sell orders.
Market Information Dissemination Timely issuance of information is one related to issuers through its website. of the main indications of a fair, efficient Besides, SEO has implemented a network and transparent market. TSE continuously named CODAL through which information issues news and information related to affecting the price will be issued directly. the trading price and volume through its All these information are free by now. website according to the disclosure rules approved by the SEO. Point information related to trades will be provided for in- vestors as free. SEO also provides news
Clearing & Settlement Central Securities Depository of Iran settlement of trading on the basis of DVP has been established as an implication of and acting as CCP in trade clearings. CSDI the new Securities Market Act. The Cen- is managed as a corporation type com- tral Securities Depository of Iran (CSDI) pany, with TSE, brokers and banks as its accomplishes clearing and settlement of shareholders. trading, maintains and transfers the secu- The CSDI is an integral part of a trans- rities as dematerialization and acts as the parent, viable, fair and efficient equities central registry of the country’s securities market in Iran that has attracted domestic market as well. In near future, the institu- investor’s confidence and will contribute tion will be benefited by the new deposi- to the wealth of the nation. tory software, carrying out clearing and
Clearing & Settlement Central Depository Central Securities Depository of Iran (CSDI) Period T+3 Registered Yes Settlement Book entry Clearing Netting DVP In the Future Risk Sharing In the Future Margin/Lending In the Future
Page 54 2010 Tehran Stock Exchange ANNUAL REPORT
Commissions & Fees Brokerage Fees to the market as the main indicator of share price move- With effect from 22 May 2007, the brokerage fees for ment. TEPIX is a weighted market value of all share prices shares and rights are 0.4% of the value of the transaction appearing on the TSE Price Board. payable by both the seller and buyer subject to the maxi- In addition to the TEPIX, Total return index (TEDPIX), mum 100 million Rials. price indices of Main and Secondary Markets, of every individual industry is computed as well. TEPIX calculation method is as follows: TSE Commission 0.0. 1408% of transaction value payable by both the seller and buyer with a maximum of 200 million Rials.
SEO Commission 0.1% of transaction value payable by both buyer and Where Pit and Pib represent share price of com- seller with a maximum of 200 million Rials. pany i respectively at time t and at the close of trading on March 21st, 1990; and C shows the total number of shares. Clearing Fee Main and Secondary Markets indices calculation 0.071% of transaction value payable by both seller method are as TEPIX and No adjustment takes place on and buyer with a maximum of 200 million Rials. the day when a share becomes ex-dividend. TEDPIX is a total return index, that is the price level Taxes index plus the dividend reinvested. The sellers pay 0.5 percent of the value of the trans- action. There are no taxes on capital gain. 22.5% tax has levied on company’s profit and there is no dividend tax on shareholders directly.
Participation Bonds Trading Commission 0.1% of transaction value payable by both buyer and seller with a maximum of 100 million Rials. Transactions on participation bonds are exempt from any other taxes.
Indices In 1990, the All-Shares Price Index, TEPIX introduced
Page 55 2010 Tehran Stock Exchange ANNUAL REPORT
Estimation Base Value Base Date Number Indices Interval
Daily 1,653.08 March 21,1998 1 Total Return Index (TEDPIX)
Daily 100.00 March 21,1990 1 All- Share Price Index (TEPIX)
Daily 4,114.91 March 21,1998 1 Financial Index
Daily 1,393.88 March 21,1998 1 Industrial Index
Daily 100.00 March 21,1998 1 Top 50 Companies Index
Daily 100.00 March 21,1998 37 Each Industry(sector) Index
Daily 100.00 March 21,1998 419 Each Company Index
After each 1,653.08 March 21,1998 1 Cash Dividend Index (TEDIX) Change
Page 56 2010 Tehran Stock Exchange ANNUAL REPORT
Single Stock Futures Contract Specifications
Contract Description Underlying stock Common stocks listed on Tehran Stock Exchange (TSE). Each single stock futures is assigned a ticker symbol Ticker symbol (Underlying Stock -Maturity Year-Maturity Month) 09:00AM-12:30 PM Tehran time, Saturday through Wednesday of the regular business days of the Tehran Trading hours Stock Exchange. Contract size The Number of shares that makes the average value of the Contract equal to 20,000,000-30,000,000 Rls. Delivery months 6 two-month cycles that the Bimonthly events start at 22 March. Daily price limit ±4% of previous day’s settlement price Minimum 1 Rls per share Price Fluctuation Trading Period First trading date till the day before delivery date Initial Margin 20% of contract value. Maintenance Margin 60 % of initial margin. Collateral Limit (Optional) 20 % of contract value in cash or other agreed notes Order Limit 10 contract Currency Rls Delivery Date The day after last trading day Trading Fees TSE CDS Trading Member SEC Long Put Long Put Long Put Long Put (Based on Trading Value of the Contract) 0.00032 0.00048 0.00032 0.00048 0.004 0.004 0.0004 0.0006 Physical Delivery Fee 0.005 of contract value at settlement price the last trading day's Market-Wide position limit: No. of free float share divided by contract size divided by no. of contracts that simultaneously is traded. Member position limit: utmost 20 % of Market-Wide position limit based on broker's collaterals. Institutional Client Individual Client
Higher of 0.001 of market-wide position limit 0.001 of market-wide position limit or 0.1 of paid capital
Position When no underlying stock is owned by the seller at the end of the last trading day, the penalty of this is 1% of the contract value based on the last daily settlement price in the trading period of the contract, which is limit transferred to the buyer. If the closing price of the underlying stock in the spot market at the end of the trading session of the last trading day is more than the last daily settlement price in the trading period of the contract, the difference is transferred from the seller account into the buyer account.
Penalty of non-payment of the contract value by the buyer based on the last settlement price until 12 o'clock of the first day of the delivery period is 1% of the contract value which is received from the buyer account into the seller account. If the closing price of the underlying stock in the spot market at the end of the trading session of the last trading day is less than the last daily settlement price in the trading period of the contract, the difference is transferred from the buyer account into the seller account.
Page 57 2010 Tehran Stock Exchange ANNUAL REPORT
• When the capital increase and dividend payment by the issuer, TSE adjusts the last daily settlement price and the contract size before the trading symbols are opened.
• If the annual general meeting of the company is coinciding with the trading period of a contract, TSE may avoid to set trading symbol for the contract in this month. Others • The basis for calculation of market-wide position limit is the shares number of the issuer of the underlying stock dividing by the contract size and then dividing by the trading symbols number of futures contracts on the stock being traded at the same time.
• Position limit of each natural individual is equivalent to 0.001 of market-wide position limit.
Page 58 2010 2010Tehran Stock Exchange Tehran Stock Exchange ANNUALANNUAL REPORTREPORT Appendix 2 Members, Mutual funds, Issuers
The Blue Mosque Masjed-e Kabūd; Azerbaijani: is a famous historic mosque in Tabrīz, Iran. The mosque and some other public buildings were Page constructed in 1465 upon the order of Jahan 59 Shah, the ruler of Kara Koyunlu. 2010 Tehran Stock Exchange ANNUAL REPORT TSE’s members
Services
Brokerage Co. E-mail Web Site Internet Listing Portfolio Mutual Order Consultancy Managing Fund Booking
Aban [email protected] www.abanbroker.com √ √ Agah [email protected] www.agahbroker.com √ √ √ √ Amin Avid www.aminbc.com Amin Sahm [email protected] www.aminsahm.com √ √ √ Andishe Bartar [email protected] √www.abbroker.ir √ Apadana [email protected] www.apadanabrokering.ir √ √ √ Arg Hooman [email protected] www.argbroker.com √ Arman Tadbir [email protected] www.armanbroker.com √ √ Naghshe Jahan Armoon Bourse [email protected] www.armoonbourse.com √ √ √ Arya bours [email protected] www.ariabourse.ir Arya novin [email protected] www.badrehsaham.com √ Asel [email protected] www.aselbroker.com Ati saz Bazar [email protected] www.atibroker.com √ Atieh [email protected] www.atiehbroker.com √ http://www.badrehsaham. Badreh Saham [email protected] com Bahman [email protected] www.bahmanbroker.com √ √ Bank Eghtessad [email protected] www.novinbourse.com √ √ √ √ novin Bank karafarin [email protected] www.karafarinbrokerage.com √ √ √ Bank keshavarzi [email protected] www.agribourse.com √ √ Bank Maskan [email protected] www.maskanbourse.com √ √ √ √ Bank Mellat [email protected] www.mellatbourse.com √ √ Bank Melli Iran [email protected] www.bmibourse.com √ √ √ √ Bank Pasargad [email protected] www.pasargadbroker.com √ √ √ √ Bank Refah Kargaran [email protected] www.refahbroker.com √ √ √ Bank Saderat Iran [email protected] www.saderatbourse.com √ √ √ √ Bank Saman [email protected] www.samanbourse.com √ Bank Sanat va [email protected] www.smbroker.ir √ √ √ √ madan Bank Tejarat [email protected] www.bt-broker.com √ √ √ Bank Towse-e [email protected] www.edbibroker.com √ √ Saderat Bazar Saham [email protected] www.bazarsahambourse.com √ √ Behgozin bourse [email protected] www.behgozinbroker.com √ √ √ Behin Pouya www.behinpouya.com √ √ √
Page 60 2010 Tehran Stock Exchange ANNUAL REPORT
Services
Brokerage Co. E-mail Web Site Internet Listing Portfolio Mutual Order Consultancy Managing Fund Booking
Bourse Bimeh Iran [email protected] www.boursebimeh.com √ √ √ √ Borhan Sahand www.bsbourse.com √ √ √ √ Boursiran [email protected] √ Donyaye Khobreh [email protected] www.dk.rhbroker.com √ Donyaye Novin
Saham Etminan Sahm [email protected] www.etminansahm.com Ebraz [email protected] www.ebrazbourse.com Farabi (Omran) www.farabibroker.com √ √ √ √ Toseeye Farda [email protected] www.ganjinehbourse.com √ √ golchinbroker@ganjinehbourse. Arad Iranian www.gbourse.com √ √ √ √ com Hafez [email protected] www.hafezbourse.com √ √ √ √ Imen Bourse [email protected] www.imenbourse.ir √ Iran Sahm [email protected] www.iransahm.ir √ √ Isatis Poya [email protected] www.ipb.ir √ √ √ √ Jahan Sahm [email protected] √ Karamad [email protected] www.irankbc.com Khobregan Saham [email protected] www.khobregan.com √ √ √ √ Kaspian Mehr [email protected] www.cmibrokerage.com √ √ √ √ Iranian(Bank Sepah) Mahak Sahame [email protected] √ Sanayeh Mehr Afarin [email protected] www.mehrbroker.com √ √ √ Meyar Saham [email protected] Www.meyarsaham.com √ Moein sahm [email protected] Mofid [email protected] www.mofidbourse.com √ √ √ √ Moshaveran Saham [email protected] www.tehranstock.com √ Movahedan www.movahedan.com √ Nahayat Negar [email protected] www.nahayatnegar.com √ √ √ Noandishan Bazar [email protected] www.noandishan.ir √ √ √ √ Sarmayeh Tamin Sarmayeh Novin (Roshd [email protected] www.roshdbroker.com √ √ √ √ Paydar) Omid Sahm [email protected] www.omidsahm.com √ √ Omran Fars com.omranfars www. √ √ Ordibeheshte [email protected] www.oibroker.com √ √ √ Iraniyan
Page 61 2010 Tehran Stock Exchange ANNUAL REPORT
Services
Brokerage Co. E-mail Web Site Internet Listing Portfolio Mutual Order Consultancy Managing Fund Booking
Pars Gostar Khobre [email protected] www.parsbourse.com Pars Nemoudgar [email protected] www.parsnem.com √ √ Parsiyan info@pim_co.com www.parsianbroker.com √ www.rahbord-investment. Rahbord [email protected] √ √ com Rahnamaye [email protected] www.rahnamabroker.com √ √ √ Sarmayegozaran Razavi [email protected] www.rbc.ir √ √ Saba Tamin (Kimia [email protected] www.sababroker.com √ √ sahm) Saham Barez [email protected] www.sahambarez.com √ Saham Gostaran [email protected] www.sahamgostaran.com √ Sharg Saham Pajoohan [email protected] www.sahampajoohan.com √ √ Shayan http://www.sahampouya. Saham Pouya [email protected] √ √ com Sahm Andish [email protected] www.sahmandish.com √ Sahm Ashena [email protected] www.abco.ir √ √ √ √ Sahm Azin [email protected] www.sahmazin.com √ Sahm Yar [email protected] www.sahmyar.ir √ Sarmayegozari Melli [email protected] www.nibi.ir √ √ Iran Sarmayeh va [email protected] www.ckbroker.com √ √ Danesh Shakhes Saham [email protected] www.shakhessaham.com √ Simabgoon [email protected] www.simabgoonbourse.com √ Tadbirgaran Farda [email protected] www.tadbirbroker.com √ √ √ Tadbirgar Sarmaye [email protected] www.tadbirgar.com √ √ Tahlilgarane Basir [email protected] www.basirbourse.com √ √ Towse-e Sahand [email protected] http://sd.rhbroker.com Towse-e Sarmaye [email protected] www.tsd-broker.co √ Donya
Page 62 2010 Tehran Stock Exchange ANNUAL REPORT
Mutual Funds
Return NAV Working Number NAV for per From Name Type (Million Web Site Days Of Unit Unit (Rials) Beginning Rials) (%) www.karafarinbank.com/ 1 Karafarin Fixed Income 1,510,365 1220 1,458,416 1,035,620 58 mutualfunds 2 Novin Saman Fixed Income 930,930 352 927,573 1,003,619 18 www.samanfund.ir 3 Atie Novin Fixed Income 1,000,352 287 997,067 1,003,295 14 http://atiehnovin.ir 4 Amin Melat Fixed Income 504,821 234 502,918 1,003,783 12 www.aminmellat.com Total of fixed Income - 3,946,468 1,220 3,885,974 1,011,579 - 5 Yekon Iranian Large-Size 780,271 695 499,957 1,560,677 56 www.iranianfund.com 6 Mehr Iranian Large-Size 550,683 366 429,348 1,282,604 28 www.mehrfund.ir 7 Momtaz Large-Size 311,142 316 201,257 1,545,993 55 www.momtazfund.com 8 Amin Global Large-Size 283,575 554 203,043 1,396,627 40 http://agfund.ir Total of Large-Size - 1,925,672 695 1,333,605 1,446,475 45 9 Agah Small-Size 97,281 875 29,757 3,269,194 227 www.agahbroker.com 10 Pishtaz Small-Size 82,911 960 27,359 3,030,484 203 www.fundsite.emofid.com 11 Boursiran Small-Size 73,534 529 35,442 2,074,762 107 www.bifund.ir 12 Puya Small-Size 55,828 1010 18,184 3,070,167 207 http://iranfunds.com http://www.firoozehfund. 13 Firuze Small-Size 52,396 136 46,514 1,126,456 13 com 14 Bourse Bime Small-Size 32,733 592 17,614 1,858,363 86 www.boursebimehfund.com 15 Banke Melli Small-Size 30,125 963 8,378 3,595,736 260 http://bmimf.com 16 Pars Small-Size 24,563 289 17,841 1,376,771 38 www.parsfunds.com http://www.omidfund.ir/ 17 Omid Iranian Small-Size 20,884 156 20,882 1,000,115 0 index.do 18 Sahm Ashena Small-Size 20,280 981 6,267 3,236,064 224 http://abmf.ir 19 Eghtesad Novin Small-Size 19,614 737 9,826 1,996,122 100 www.enbankfund.com 20 Sanat o Madan Small-Size 16,172 547 9,564 1,690,921 69 www.smfund.ir
Page 63 2010 Tehran Stock Exchange ANNUAL REPORT
21 Ganjine Bahman Small-Size 15,101 254 10,315 1,464,009 46 www.bahmanfund.com 22 Tadbirgaran Farda Small-Size 14,213 29 13,301 1,068,585 7 http://www.Tadbirfunds.com http://mutualfund.hafez- 23 Hafez Small-Size 13,158 1010 8,784 1,497,951 50 bourse.com 24 Farabi Small-Size 12,930 401 7,275 1,777,264 78 www.farabifund.com 25 Bank Keshavarzi Small-Size 12,318 171 10,791 1,141,491 14 http://fund.agribourse.com 26 Khobregan Small-Size 12,169 977 6,101 1,994,540 99 http://fund-khobregan.com 27 Bank Saderat Small-Size 11,825 1004 8,345 1,417,050 42 http://saderatbbf.com 28 Bime Dey Small-Size 11,002 171 9,554 1,151,553 15 http://www.daymf.ir 29 Bank Tejarat Small-Size 10,694 870 6,092 1,755,342 76 http://btfs.rhbroker.com 30 Pasargad Small-Size 9,821 849 6,178 1,589,705 59 http://pasargadfund.com http://amin.karafarinbroker- 31 Amin Karafarin Small-Size 9,728 409 6,241 1,558,709 56 age.com 32 Novin Small-Size 8,417 287 5,815 1,447,475 45 www.novinfund.com 33 Isatis Small-Size 8,301 315 6,414 1,294,236 29 http://isatisfund.com 34 Refah Small-Size 7,924 176 7,342 1,079,256 8 www.refahfund.ir 35 Noandish Small-Size 7,898 240 6,635 1,190,378 19 www.noandishanfund.com 36 Apadana Small-Size 7,122 29 6,964 1,022,750 2 http://apadanafund.ir 37 Naghshe Jahan Small-Size 7,047 78 6,194 1,137,752 14 http://www.jahanfund.com 38 Maskan Small-Size 6,909 297 5,230 1,320,993 32 www.maskanfund.com 39 Arg Human Small-Size 6,655 78 6,235 1,067,405 7 http://www.argfund.com 40 Rahnama Small-Size 6,597 1 6,530 1,010,274 1 www.rahnamafund.ir http://www.fund.sababroker. 41 Saba Small-Size 6,515 289 5,560 1,171,795 17 com 42 Pishgam Small-Size 6,376 528 4,817 1,323,585 32 www.pishgamfund.com 43 Razavi Small-Size 5,852 458 3,997 1,464,087 46 www.razavifund.com 44 Bourse 24 Small-Size 5,779 241 5,316 1,087,170 9 http://fund24.ir Kaspian Mehr 45 Small-Size 5,387 886 3,881 1,388,104 39 www.sepahfund.com Inranian fund.rahbord-investment. 46 Shadab Small-Size 5,086 857 3,851 1,320,723 32 com 47 Arian (Golchin) Small-Size 4,847 935 3,493 1,387,565 39 www.fund-golchin.com Total of Small-Size - 765,994 1,010 428,879 1,627,049 63
Total - 6,638,134 1,220 5,648,458 - -
Page 64 2010 Tehran Stock Exchange ANNUAL REPORT
Issuers 1: Agriculture 1. Magsal Co. 2: Monetary Intermediation 1. Saderat Bank 2. Tejarat Bank 3. Parsian Bank 4. Sina Finance & Credit CO. 5. Mellat Bank 6. Karafarin Bank 7. EN Bank 3: Basic Metals 1. Sepanta Industrial & Investment Co. 2. Rolling Mill & Steel Production Co. 3. Luleh Va Machinsazi Iran Co. 4. Iran Ferrosilice Co. 5. Sepahan Industrial Group Co. 6. Kaavian Steel Co. 7. Sadid Pipe & Equipments Co. 8. Esfahan’s Mobarakeh Steel Co. 9. Khouzestan Steel Co. 10. Khorasan Steel Complex Co. 11. Alumtek Corp. 12. Alominum Rolling Mfg. Group 13. Shahid Bahonar Copper Industries Co. 14. Calcimin Co. 15. Iran Aluminum Co. 16. National Iranian Lead & Zinc Co. (NILZ) 17. Faravari Mavad Madani Iran Co. 18. Alomrad Co. 19. Kerman Ferromolybdenum Production Co. 20. Iran National Copper Industries Co. 21. Sadid Industrial Group 22. Tukafoolad Investment Co. 23. AmirKabir Kashan steel Co. (previous name: Fajre Sepahan Galvanizing Industries Company)
Page 65 2010 Tehran Stock Exchange ANNUAL REPORT 4: Cement, Lime & Plaster 1. Mazandaran Cement Co. 2. Urmia Cement Co. 3. Sepahan Cement Co. 4. Qayen Cement Co. 5. Tehran Cement Co. 6. Shomal Cement Co. 7. Kerman Cement Co. 8. Soufian Cement Co. 9. Fars & Khuzestan Cement Co. 10. Shargh Cement Co. 11. Iran Gatch Co. 12. Khazar Cement Co. 13. Gharb Cement Industries Co. 14. Isfahan Cement Co. 15. Ardebil Cement Co. 16. Ilam Cement Co. 17. Bojnourd Cement Co. 18. Hormozgan Cement Co. 19. Fars Cement Co. 20. Darab Cement Co. 21. Neyriz Cement Co. 22. Dashtestan Cement Ind. Co. 23. Kordestan Cement Co. 24. Shahroud Cement Co. 25. Doroud Cement Co. 26. Hegmatan Cement Co. 27. Behbahan Cement Co. 28. Khash Cement Co. 29. Karoon Cement Co. 30. Fars-e-Nou Cement Co. 5: Ceramic & Tiles 1. Alvand Tile & Ceramic Industries Co. 2. Sina Tile & Ceramic Co. 3. Takceram Co. 4. Behceram Co. 5. Isfahan Tile Industries Co. 6. Irana Tile Co. 7. Nilou Tile Co. 8. Saadi Tile & Ceramic Co. 9. Pars Tile Co. 10. Hafez Tile & Ceramic Co.
Page 66 2010 Tehran Stock Exchange ANNUAL REPORT 6: Chemicals & Chemical products except Pharmaceu- tical Products 1. Petrochemical Industries Invest- ment Co. 2. Chemical Industries Investment Co. 3. Sina Chemical Industries Co (SCIC) 4. Khark Petrochemical Co 5. Isfahan Pertrochemical Company Co. 6. Arak Petrochemical Co. 7. Fars Chemical Ind.Co 8. Niro Chlor Co. 9. Fanavaran Petrochemical Co. 10. Shiraz Petrochemical Co. 11. Abadan Petrochemical Co. 12. Herbicides Production Co. 13. Kaf Co. 14. Pars International Mfg. Co. 15. Paxan Corporation Co. 16. Tolypers Co. 17. Henkel Pakvash Co. 18. Goltash Co. 19. Farabi Petrochemical Co. 20. Iran Amlah (Mineral Salts) Co. 21. Pars Pamchal Chemical Co. 22. Rangin Industrial & Chemical Co. 23. Loabiran Co. 24. Iran Carbon Co. 25. Pars Carbon Black Co. 26. Fiber Intermediate Products Co. 27. Poly acryl Iran Co. 7: Coal & Lignite Mining 1. Negin Tabas Lignite Co. 8: Computer & Related Activi- ties 1. Data Processing Iran Co. 2. Iran Argham Co. 3. Informatics Services Corp. 9: Diversified Industrials (Holdings) 1. Omid Investment Co. 2. Ghadir Investment Co. 3. Bank Melli Iran Investment Co. 4. Civil Pension Fund Investment Co.
Page 67 2010 Tehran Stock Exchange ANNUAL REPORT 10: Electrical Machinery & Ap- paratus 1. Motogen Co. 2. Iran Transfo Co. 3. Nirou Trans Co. 4. Pars Switch Co. 5. Alborz Cable Co. 6. Bakhtar Cable Co. 7. Tak Cable Manufacturing Co. 8. Iran Cable Manufacturing Co. 9. Jooshkab Yazd Ind. Co. 10. Shahid Ghandi Communication Cable Co. 11. Pars Shahab Lamp Co. 11: Furniture 1. Pardis Investment Co. 12: Industrial Contracting 1. Iran Marine Industrial Co. (SADRA) 13: Investment Companies 1. Industry and Mine Investment Co. 2. Mellat Investment Corporation Co. 3. Sepah Investment Co. 4. National Investment Company of Iran Co. (NICI) 5. Iran Industrial Development Invest- ment Co. 6. Insurance Industry Investment Co. 7. Atye Damavand Investment Co. 8. Buali Investment Co. 9. Behshahr Industries Investment Group Co. Investment Co. 10. Nirou Investment Co. 11. Tosee Melli Investment Co. 12. Saipa Investment Co. 13. Bahman Investment Co. 14: Machinery & Equipments 1. Iran Tractor Manufacturing Co. 2. Pumpiran Co. 3. Technotar Engineering Co. (TTECO) 4. Firouza Engineering Co. 5. Niroumoharekeh Machine Mfg. Co. 6. Aabsal Group Co. 7. Sarma Afarin Industries Co. 8. Iran Combine Mfg. Co. 9. Iran Tractor Industrial Machinery Co. 10. Agricultural Industries & Services Development Co. 11. Heavy Equipment Production Co. (HEPCO)
Page 68 2010 Tehran Stock Exchange ANNUAL REPORT
12. Pars Tousheh Investment Co. 13. Pars Appliance Mfg.Co 14. Pars Khazar Industrial Co. 15. Azmayesh Industrial Factories Co. 16. Butane Industrial Group 15: Medical, Precision & Opti- cal Instruments 1. Kontorsazi Iran Co. (SKI) 16: Metal Ores Mining 1. Gol-E-Gohar Iron Ore Co. 2. Bafgh Mining Co. 3. Damavand Mineral Co. 4. Iran Zinc Mines Development Co. 5. Chadormalu Mineral & Ind. Co. 6. Maaden Manganese Iran Co. 7. Bama Co. 8. Mines & Metals Development In- vestment Co. 17: Fabricated Metal Prod- ucts except Machinary & Equipments 1. Jaam Darou Co. 2. Mashad Packing Industries Co. 3. Joosh va Oxijene Iran Co. 4. Suliran Corporation Co. 5. Mashin Sazi Arak Co. 6. Azarab Industries Co. 7. Lamiran Co. 8. Iran Pack Industries Co. 9. Ama Industrial Co. 18: Motor Vehicles and Auto Parts 1. Iran Khodro Diesel Co. 2. Iran Khodro Industrial Group Co. 3. Bahman Group Co. 4. Saipa Diesel Co. 5. Saipa Co. 6. Zamyad Co. 7. Pars Khodro Co. 8. Motorsazan Co. 9. Lent Tormoz Iran Co. 10. Iran Auto-Parts Industrial Group 11. Niru Moharreke Industrial Co. 12. Charkheshgar Co. 13. Zar Spring Co. 14. Iran Casting Industries Co. 15. Mehvarsazan Iran Khodro Indus- trial Co.
Page 69 2010 Tehran Stock Exchange ANNUAL REPORT
16. Radiator Iran Co. 17. Khavar Spring Mfg. Co. 18. Indamin Saipa Shock Absorber Mfg. Co. 19. Iran Carburetter Co. 20. Iran Tractor Forging Co. 21. Iran Tractor Foundry Co. 22. Saipa Azin Co. 23. Electric Khodro Shargh Co. 24. Mashad Wheel Mfg. Co. 25. Mehrcam Pars Co. (MCP) 26. Sazeh Pouyesh Co. 27. Nasir Machine Engineering Corporation 28. Vehicle Axle Mfg. Co. (VAMCO) 29. Iran Khodro Investment Development Co. 30. Rena Industrial Group Investment Co. 31. Iran Credit Investment Co. 19: Food Products and Bever- ages except sugar 1. Pars Minoo Industry Co. 2. Chin Chin Cultivation Complex 3. Mahram Co. 4. Behnoush Iran Co. 5. Behshahr Industrial Co. 6. Naab Industrial Co. 7. Pak Dairy Co. 8. Isfahan Pegah Dairy Co. 9. East Azarbaijan Pegah Dairy Co. 10. Kalber Dairy Co. 11. Khorasan Pegah Dairy Co. 12. Glucosan Co. 13. Pars Animal Feed Co. 14. Gorji Biscuit Co 15. Keivan Co. 16. Shahdiran Inc. 17. Mazandaran Noosh Co. 18. Dasht Morghab Group Co. 19. Piazar Co. 20. Margarin Co. 21. Salemin Co. 22. Behshahr Industrial Development Corp. 20: Financial Leasing 1. Iran Leasing Co. 2. Rayan Saipa Leasing Co. 3. Industry & Mine Leasing Co. 4. Ghadir Khodro Leasing Co. 21: Other Mining and Quarrying 1. Foundry Sand Preparation Co.
Page 70 2010 Tehran Stock Exchange ANNUAL REPORT 22: Other Non-metallic Min- eral Products 1. Razi Pharmacutical Glass Co. 2. Pars Ceram Co. 3. Ardakan Industerial Ceramics Co. 4. Iran Refractories Co. (IREFCO) 5. Pars Refractories Co. 6. Azar Refractories Co. 7. Permit Co. 8. Iranit Co. 9. Azarit Co. 10. Italran Co. 11. Farsit Ahwaz Co. 12. Farsit Doroud Co. 13. Iran China Clay Industries Co. 14. Varziran Co. 15. Ghazvin Glass Co. 16. Glass Wool Company Of Iran 17. Shishe va Gas Co. (SHOGA) 18. Hamadan Glass Co. 19. Abguineh Glass Industries. Co. 20. Saipa Glass Co. 23: Other Transport Equip- ment 1. Iran Bicycle & Motorcycle Mfg. Co. 24: Paper & Paper products 1. Kaveh Paper Ind. 2. Iran Carton INC 3. Pars Packing Co. 4. Mashad Carton Co. 25: Pharmaceutical & Medici- nal Products 1. Jaber Ebne Hayyan Pharmaceutical Co. 2. Aburaihan Pharmaceutical Co. 3. Chimidaro Co. 4. Razak Laboratories 5. Loghman Pharmaceutical Co. 6. Osvah Pharmaceutical Company 7. Darou Pakhsh Co. 8. Iran Daru Co. 9. Daroupakhsh Pharmaceutical Mfg. Co. 10. Temad Co. 11. Darou Pakhsh Pharma. Chem. Co. 12. Sobhan Pharmaceutical Co. 13. Rouz Darou Pharmaceutical Co. 14. Cosar Pharmaceutical Co.
Page 71 2010 Tehran Stock Exchange ANNUAL REPORT
15. Damloran Razak Pharmaceutical Co. 16. Tehran Sheme Co. 17. Pars Darou Co. 18. Farabi Pharmaceutical Co 19. Amin Pharmaceutical Company Co. 20. Sina Darou Laboratories Co. 21. Alborz Darou Co. 22. Dr. Abidi Pharma Laboratory Co. 23. Tehran Darou Pharmaceutical Co. 24. Iranian Parenteral & Pharmaceutical Co. 25. Exir Pharmaceutical Co. 26. Zahravi Pharmaceutical Co. 27. Alborz Investment Co. 26: Post and telecommunications 1. Iran Telecommunications Co. 27: Publishing, Printing Media 1. Offset Press Inc.
28: Radio, TV & Communication 1. Iranian Telecommunication Manufacturing Co. 2. Pars Electric Mfg. Co. 3. Payam Industrial Mfg. Co 4. Jaame Jahan Nema Manufacturing Co. 29: Real Estate and Construction 1. Iran Construction Investment Co. 2. Isfahan Construction Co. 3. Isfahan Saman Gostar Co. 4. Housing Investment Co. 5. Fars Reconstruction & Development Co 6. Abadgarane Iran Tourism and Welfare Complex 7. Tehran Renovation & Construction Co. 8. International Construction Development Co. 9. Sakht Ajand Co. 10. Shahed Investment Co. 11. Azarbayjan Development Investment Co. 12. Toosgostar Investment Co. 30: Refined Petroleum Products 1. Pars Oil Co. 2. Behran Oil Co. 3. Esfahan Oil Refining Co. 4. Tajhiz Niroye Zangan Co. 5. Oil Industry Investment Co. 31: Rubber & Plastic Products 1. Iran Tire Mfg. Co. 2. Barez Industrial Group 3. Iran Yasa Tire & Rubber Co. 4. Artavil Tire Industrial Complex 5. Sahand Rubber Ind. Co. 6. Shahin Plastic Manufacturing Co.
Page 72 2010 Tehran Stock Exchange ANNUAL REPORT
7. Plastiran Manufacturing Co. 8. Plascokar Saipa Co. 9. Derakhshan Tehran Co. 10. Gazlouleh Mfg. Co. 32: Sugar & By-products 1. Isfahan Sugar Co. 2. Shahd Sugar Co. 3. Ghazvin Sugar Co. 4. Neyshabur Sugar Co. 5. Shirin Khorasan agro. Industry Co. 6. Sabet Khorasan Ind. & Mfg. Co. 7. Naghshe Jahan Sugar Co. 8. Marvdasht Sugar Co. 9. Lorestan Sugar Co. 10. Hegmatan Sugar Co. 11. Pars Sugar Co. 12. Piranshahr Suger Co. 13. Torbate Jaam Sugar Co. 14. Shahroud Sugar Co. 33: Tanning and Dressing of Leather 1. Melli Industrial Group 34: Technical & Engineering Services 1. Iran Power Plant Projects Managements Co.(MAPNA) 2. Techinco Technical & Corrosion Control Co. 35: Textiles 1. Tous Woolen Co. 2. IranMerinos Co. 3. Borujerd Textile Co. 36: Transportation and Storage 2. Petrochemical Transport Co. 3. Tuka Transportation Co. 4. Islamic Republic of Iran Shipping Lines Co. 5. Tidewater Middle East Co. 37: Wood & Wood products 1. Towlide Fibre Iran (Royal Board Mfg. Co) 2. Bahman Neopan Co. 38: Insurance & pension funding 1. Alborz Insurance Co. 2. Asia Insurance Co. 3. Dana Insurance Co. 39: Oil & Gas Extraction and related services except Surveying 1. North Drilling Co.
Page 73 2010 Tehran Stock Exchange ANNUAL REPORT Note:......
Page 74 2010 2010 Tehran Stock Exchange Tehran Stock Exchange ANNUAL ANNUAL REPORT REPORT Note:......
Page 75 2010 Tehran Stock Exchange ANNUAL REPORT Note:......
Page 76 2010 2010 Tehran Stock Exchange Tehran Stock Exchange ANNUAL ANNUAL REPORT REPORT Note:......
Page 77 2010 Tehran Stock Exchange ANNUAL REPORT Note:......
Page 78 2010 2010 Tehran Stock Exchange Tehran Stock Exchange ANNUAL ANNUAL REPORT REPORT Note:......
Page 79 2010 2010 Tehran Stock Exchange Tehran Stock Exchange ANNUAL ANNUAL REPORT REPORT Note:......
Page 80