Tehran Stock 2011 Exchange Annual Report

Tehran Stock Exchange

Address: No.228,Hafez Ave. Tehran - Iran Tel: (+98 021) 66704130 - 66700309 - 66700219 Fax: (+98 021) 66702524 Zip Code: 1138964161

Gun-metal relief discovered in Lorestan prov- ince, among the Achaemedian dynasty’s (550-330 BC)Antiquities. Featuring four men, hand in hands, indicating unity and cooperation; standing inside circles of 2011 globe,which is it, according to Iranian ancient myths, put on the back of two cows, ANNUAL symbols of intelligence and prosperity. Tehran Stock Exchange Implementation: CAPITAL&MARKET REPORT ANNUAL REPORT

Tehran Stock Exchange 2011 2

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 3 ission Statement oals ision ision To develop constantly intellectual assets and human resources of the company. intellectual assets and human resources constantly develop To To expand the market through using updated and efficient technology and processes. technology and and efficient using updated the market expand through To in culture Iran. and shareholding investing financial literacy and develop promote To technology. information through the market access extend and facilitate To with principles, accountability and transparency with comply and shareholders for value create To To increase the capital market’s share in financing the economic productive activities. productive in financing the economic share the capital market’s increase To To apply the effective rules and procedures to protect the market’s integrity and shareholders’ equity. and shareholders’ integrity the market’s to protect rules and procedures apply the effective To cooperation and interaction of stakeholders. and interaction cooperation G V driver. growth economic and country’s Exchange leading be the region’s To M and easy instruments market equipped with diversified transparent and efficient a fair, develop To the stakeholders. for added value create to in order access 1 2 15 88 10 218 790 250 200 Second market Second market Buyer (%) Buyer 0.048 0.048 0.4 0.033 0.529 2 2 20 58 15 750 500 Secondary board Secondary board First market First First market First 3 3 30 67 20 1000 1000 Main board Main board Saturday to Wednesday Saturday to 9:00 to 12:00 Automated - order driven According to the auction regulations the second market Arbitrary in the main market and compulsory in futures, ETF and SUKUK Shares & rights, participation certificates, stock Local (Rial) trading volume and announcements, Bid/ask, prices, indices, companies’ value, quotes Central Securities Depository of Iran (CSDI) T+3 Book entry Netting No No tax No tax 0.5% of trading value (%) Seller 0.032 0.032 0.4 0.022 0.486 Demutualized (listed in Iran Farabourse (Over the Counter market)) Self-regulated under SEO supervision to foreign investment by-law) (according Yes TSE at a Glance Equity to total assets ratio (%) Listed companies Number of listed companies Firms Brokerages Brokerage Firms stations Trading Number of shareholders profitable periods ended the listing date Free float ratio (%) Paid-in capital (Billion IRR) activity of business Years Days Hours System Mechanisms Market maker Instruments Currency Real time information Clearing and Settlement Depository, Depository and Settlement Period Settlement Clearing Short selling Taxes Dividend Capital gain (paid by seller only on shares) Transfers Commissions Trading SEO TSE Broker Clearing Fee Total and Regulations Structure Legal Regulations Foreign investment Minimum Listing Requirements Trading 4

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 5 8 63 28 12 11 27 32 10 26 ...... C o n t e n t s C o n t e n t ...... Appendices Future Outlook Outlook Future Governance Corporate Statements Financial Events Events Performance Market Achievements and Operations Business CEO’s Message Message CEO’s Economy EO’s Message EO’s C 6

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 7

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n 2011, the global value traded, with traded, value global the 2011, n relative remained (0.1), decrease little I ly stable. Market capitalization of the glob the of capitalization Market stable. ly of decrease significant with Exchanges, al 13.6% reached the figure less than it in 2009. Moreover, according to the main indices of the Exchanges being member of the World Federation of Exchanges, average return of 11.9% decrease, as compared to the pre the members had The main factors affecting the vious year. uncer global volatility, high are decrease tainty created from debt sovereign crisis. In this year, Exchanges tried to diversify their financial instruments usingvarious traded funds bonds, exchange and other instruments. CEO’s Message 8

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 9

------Hasan Ghalibaf Asl As a plan to attract foreign investors, some conferences have Also, some effortshave been made development for market of In addition,TSE has performed a plan for attracting - foreign inves Opportunities Financing “ of titles with Confereces year,two Inthis In this year, market capitalization Inand value traded 33.4% this showed year, in transparent a have principles, accountability the meet to order In In 2011, despite of challenges related to implement been held including conference for Listed companies Financing and Listing Forum. Opportunities During the year 2011,6 firms of contractsfutures 4 Also, TSE. initiallyin offered andlisted been have and 2 participation certificates have beenTo listed develop TSE. in and support derivatives market, enhance the trading system and awareness and promotion of financial literacy training courses, through books, targeted web sites, seminars and TVorder to help people to programs make informed participation in in the capital market. Firms. brokerage through tors “Listing of in Firms Securitiesand Euchanges” of Listed Companies” Euchange. Stock Tehran held by were teraction with stakeholders, and promote market integrity and trans and integrity market promote and stakeholders, with teraction cooperation in implemented been have plans effective some parency, cal the of development including institutions, responsible other with presentation and index governance corporate of directives culation of it to SEO, participation in Development of software of members regulations discipline of enforcement and inspection, and oversight of brokers. Other actions taken by TSE are to revise and update in formation rules, to introduce new trading mechanisms, to plan op to and trades, closing auctionsand discontinuous closing of eration plan securities lending mechanism. includ taken, been have actions some access, market the facilitate ing proposing for margin trading to SEO, seeking for option trad ing rules approval. and 8.2% growth respectively. Also, block and retail trades had trades 34% block and retail Also, respectively. and 8.2% growth growth, as compared to the previous year, which shows liquidity increases in the market. Listed firms had 82%growth of capital in ing the first phasethe gold targetedof and Subsidizes foreign eral currency law,fluctuations trend market in of ,TSE, triedmarketTSE increase transparencyto and li Moreover, indices. the against world the mecha market, surveillance gen improve instruments, financial diversify quidity, had a growth within the society. culture investment the nism and develop of operation men- above the All 23%. to 19% from reached floats free crease.Also, and liquidity. integrity markettioned factorstransparency, indicate 72 72 2.1 1.6 15.1 21.3 25.2 75.8 Tehran Description 5,457,413.38 % % % Year Unit Million Million Million IRR Million IRR Million square kilometers Economy Unemployment rate (2010, Q2) Unemployment rate (2011) GDP growth rate (annual) GDP per capita (2011) GDP Inflation rate (consumer prices)(2011) Capital city Life expectation at birth Active population (2010, Q2) Active population (2010, Land area Population Indicators Source:www.CBI.ir,www.Worldbank.org,www.IMF.org 10

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 11 2% shares of the company from OTC, as equivalent to 900,000 shares, were offered in initially, single price and price discovery methods. 2.8% shares of the bank, as equivalent to 112 million shares, were shares, million 112 to equivalent as bank, the of shares 2.8% initially. offered 0.9% shares of Bank Pasargad, in price discovery method. initially, shares, were offered as equivalent to 257 million The conference was held with the opportunities aim to for introduce financing listed policies for companies, enhancement of capital review market role in the finance consulting and with government market participants for making efficient use of and…. financing opportunities in the booming market According to the new rules, the capital requirement of listing main in the and market, main the of board second market, second the board of the main market increased from 30 billion IRR to 200 billion IRR, 100 billion IRR to 500 billion IRR, and 200 billion IRR to 1,000 billion IRR, respectively. 30 foreign investors visited TSE opportunities in the Exchange. in order to find investment evolution required the review to order in held was conference The of financing system, to in introduce financing Securities firms’ evolutions legal new Exchanges the to review and financing, in role instruments role explain listing opportunities and in finance area. debt Golegohar, Khodro, Iran MAPNA, companies, 4 of futures Stock TSE. and Calcimin, were listed in the derivatives market of

Exchanges Parsian co. Capital Market IPO of Bank Ansar IPO of Bank Stock Futures Listing Opportunities through IPO of Bank Pasargad Conference of Financing IPO of Tejarat Electronic Tejarat IPO of Foreign Investors in TSE Foreign Investors in Listing Rules Amendment Listing Rules Listing Forum In Securities 2 Aug 2 25 Apr 25 30 Aug 30 28 Aug 28 16 Aug 16 14 May 18 May 24 May Events arket arket M Performance 12

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 13

- 33.6 4,778 19,004 14,226 Industry 8.2 8.6 2.2 2.5 1.8 29.4 33.4 -27.6 Change (%) 14.7 7,959 62,169 54,210 Financial 341 6.33 17.4 2010 21.9 76,713 96,563 5,554 812,096 30,866 25,312 Second market 897,398,436 197,339,350 31.0 First First 4,871 20,576 15,705 market 347 6.47 17.8 2011 99,285 69,938 882,182 349 30.8 1,482 1,133 213,488,112 1,197,330,292 30 large-cap 31.7 7,562 31,387 23,825 Market indicators Market adjusted Free Float Free % Million IRR Million IRR Million IRR Million shares Main indices of TSE in 2011 of TSE indices Main 29.5 99,285 76,689 22,596 TEDPIX Description n 2011, the total value traded byTSE with 8.2% increase reached 213488 billion IRR, the average daily value traded of TSE had an increase of 8.6%, the8.6%, of increase an had TSE of traded value daily average thebillionIRR, Also, Also, in 2011, TEDPIX (the total return index of TSE) increased from 76689 at the In this 6 year, new companies were listed in TSE (Iran Alloy Steel, Pasargad Bank, Among listed industries, monetary intermediation, basic metals, Post and In this the year, number of new investors who received trading code for the first I TEDPIX Market capitalization Volume traded Volume traded Value Average daily value traded Average P/E ratio Turnover velocity Turnover Listed companies At the end of the year At the beginning of the year Changes Percent (%) Percent beginning beginning of the year to 99285 at the end of the year, which indicates a 29.5% Bank). Petrochemical,Ansar Pardis Kermanshah Petrochemical, Ecommerc, Parsian number of transactionindi Rials, billion 1197330 as amounted TSE withof capitalization market the and a growth of 47% reached 4285cated thousand 33.4% growth.times, Online 21,895. 1506 to from reached trading value with nearly three times increase, average return Free sectors. on market all in increase price even an indicates This investments growth. considerable in TSE. Other in 2011. growth had nearly index 31.7% share float indices in TSE also showed a time had 63% growth as compared to the previous year. year. the previous to as compared time had 63% growth Telecommunication 19.63%, and 16.22%, Diversified 11.97%Moreover, and monetary 9.46% IndustIRR of intermediations,basic market metals (Holdings) account capitalization, for motor the most value ,respectively. value vehicles respectively. traded account as 16%, and 13% and 11% auto of for total parts and TEDPIX Monthly return on investment in TSE investment on return Monthly Market capitalization in 2011 (Million IRR) in 2011 (Million capitalization Market 14

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 15 0.08 0.09 value Changes % -0.27 -0.28 Volume Value 812,096 197,339,350 (Million IRR) 2010 394 96,563 Volume (Million shares) Share traded Share Value Value 882,182 213,488,112 (Million IRR) (Million 2011 Value traded of different sectors of different traded Value 289 69,938 Volume Volume (Million shares) (Million Byproducts Market capitalization of different sectors in 2011 in 2011 sectors different of capitalization Market Description Daily average trades Total 991,183,675 Market-Cap 1,026,897,805 1,174,259,503 1,212,930,019 1,165,380,264 1,126,238,468 1,123,481,382 1,223,176,651 1,270,158,644 1,233,636,755 1,179,220,918 1,197,330,292 (Million IRR) 3,257,500 4,926,416 3,700,350 58,604,700 10,720,000 26,726,000 107,934,966 (Million IRR) Market capitalization increase trades 349,947 337,283 307,958 533,470 428,006 317,586 305,666 376,463 416,828 327,660 274,823 309,629 number of of number 506,000 822,300 1,303,000 4,000,000 1,000,000 27,258,000 34,889,300 (Million IRR) Capital registered 11,033,388 14,250,287 13,020,026 18,155,755 28,024,256 21,622,413 20,916,261 21,913,050 18,831,039 14,679,567 20,294,816 10,747,248 Value traded Value (Million IRR) 13/11/2011 26/11/2011 16/08/2011 28/08/2011 30/08/2011 09/03/2010 Date of IPO New listed companies in 2011 companies listed New 21 20 17 20 22 19 22 20 21 22 19 19 Trading days Trading Company Jul Jan Sep Oct Feb Jun Dec Apr Nov Aug Mar May Month Number of trading days and stock right & share traded in 2011 traded & share right stock and days of trading Number Iran Alloy Steel Iran Bank Pasargad Ansar Bank Parsian Ecommerc Kermanshah Petrochemical Pardis Petrochemical Total 16

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 17 9% 9% 7% 7% 6% 6% 6% 5% 25% 13% 12% 9.4 8.7 8.3 7.7 7.5 11.4 11.1 14.7 10.8 10.3 30.9 % of Total MC Total % of % of Total value traded Total % of 75,833,000 66,874,000 51,736,000 49,668,000 39,804,000 38,274,000 36,370,000 32,672,000 32,657,000 143,401,000 567,289,000 Market Cap Value Value (Million IRR) 9,721,106 7,507,936 7,296,437 7,151,981 6,817,055 6,185,865 5,764,336 5,490,435 5,085,714 4,959,893 65,980,758 (Million IRR) Name Name Total Total Top 10 companies by value traded at year-end 2011 year-end at traded value by 10 companies Top Iran Tele. Co. Tele. Iran National Copper Ind.Co. Isfahan Mobarakeh Steel Co. Pasargad Bank Pasargad Ghadir Investment Co. Gol-E-Ghohar Iran Ore Co. Chadurmalu mineral & Ind Co. Omid Investment Co. Mellat Bank Parsian Bank Isfahan’s Mobarakeh Steel Co. Isfahan’s National Copper Ind.Co. Bank Pasargad Ghadir Investment Co. Saipa Investment co. Omid Investment Co. Bahman group Co. Parsian Bank North Drilling Co. Co. Tele. Iran Top 10 companies by market capitalization at year-end 2011 year-end at capitalization market by 10 companies Top 1 2 3 4 5 6 7 8 9 2 5 6 7 8 9 1 3 4 10 10 9.5 9.0 8.7 8.4 8.3 6.7 13.8 13.4 12.1 10.1 30.3 % of Total volume traded Total % of 2,930 2,845 2,553 2,133 2,016 1,904 1,851 1,769 1,751 1,429 21,182 Volume (Million) Name Total Top 10 companies by volume traded at year-end 2011 year-end at traded volume by 10 companies Top Parsian Bank Bank Pasargad Co. Isfahan Mobarakeh Steel Co. Tele. Iran Saderat Bank Sadra Co. Bahman group Co. Saipa Investment co. Saipa co. Karafarin Bank 1 2 3 4 5 6 7 8 9 10 18

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 19 -2.3 -1.7 -3.4 -0.7 -2.9 -6.2 (%) 51.4 16.9 28.8 27.0 21.5 45.9 96.1 91.1 18.9 23.1 56.3 15.7 42.9 21.2 49.7 33.4 -11.2 -25.7 -44.7 -26.1 -16.8 -19.7 -29.3 -42.0 -17.8 -16.6 -49.3 110.9 169.6 128.7 107.3 Change 100 0.01 1.94 7.40 0.04 3.00 3.15 0.58 0.26 1.10 0.21 0.46 0.34 1.26 3.47 3.01 1.44 0.33 0.08 0.76 0.02 0.94 6.60 0.02 0.09 4.42 0.03 0.25 0.01 0.26 3.86 0.68 7.88 0.02 13.43 15.15 17.49 % Of Total MC Total 2010 89,240 118,965 330,027 751,564 168,650 176,340 767,340 302,724 189,350 5,160,590 2,295,502 9,848,870 1,910,239 4,146,000 3,075,722 2,981,767 6,860,595 8,402,306 2,217,582 2,342,686 6,062,777 11,343,384 17,426,572 66,422,393 26,933,365 28,264,680 31,141,720 27,019,106 12,886,477 59,271,595 39,630,871 34,676,948 70,712,767 897,398,436 120,555,967 135,941,551 156,972,205 Market-Cap (Million IRR) 100 0.01 0.80 8.40 0.03 2.63 1.75 0.36 0.15 0.58 0.43 0.20 0.21 1.22 2.56 2.87 1.31 0.21 0.03 0.84 0.01 1.38 9.46 0.03 0.15 6.86 0.03 0.29 0.01 0.23 2.81 0.45 5.54 0.02 11.97 16.22 19.63 % Of Total MC Total 2011 88,442 88,641 322,598 380,704 162,950 371,820 372,592 229,400 2,711,607 9,633,171 4,294,045 1,843,328 6,959,748 5,150,917 2,406,000 2,529,592 2,488,100 1,755,075 3,465,147 5,382,767 31,488,900 20,899,440 14,615,562 30,616,536 34,303,886 15,662,481 10,009,323 16,473,013 82,171,676 33,658,782 66,337,306 113,275,320 235,054,340 100,533,807 143,309,300 194,213,510 Market-Cap 1,197,330,292 (Million IRR) Market capitalization/Sectors Market Total Industry Wood & By-products Wood Monetary intermediation Transportation and Storage Transportation Metal Ores Mining Textiles Medical, Precision & Optical Instruments Technical & Engineering Services Technical Machinery & Equipment Tanning and Dressing of Leather Tanning Insurance & Pension Funding Sugar & Byproducts Industrial Contracting Rubber & Plastic Products Food Products and Beverages Refined Petroleum Products other financial intermediation Real Estate And Construction Real Estate Fabricated Metal Products Radio, TV & Communication TV Radio, Diversified IndustIRR (Holdings) Electrical Machinery & Apparatus Electrical Machinery & Publishing, Printing & Media Computer & Related Activities Computer & Related Post and telecommunications Coal & Lignite Mining Pharmaceuticals Chemicals & By-products Other Non-metallic Mineral Products Paper & By-products Ceramic & Tiles Ceramic & Other Mining Cement, Lime & Plaster Oil and Gas Extraction Basic Metals Motor Vehicles And Auto Parts And Vehicles Motor Agriculture 8 9 7 6 5 4 3 2 1 11 36 18 35 17 34 16 33 15 32 14 31 13 30 12 29 28 10 27 26 25 24 22 23 21 20 19 5.3 9.9 4.3 7.9 6.7 6.7 6.8 6.5 9.1 5.6 4.5 5.8 4.1 5.8 8.2 6.2 6.4 9.2 6.0 4.1 4.9 6.2 7.5 4.5 6.2 7.4 8.1 4.8 8.1 5.6 7.0 5.8 P/E 30.3 15.6 13.1 1,242.0 3 4 2 9 1 4 8 1 1 4 1 1 1 4 6 1 2 1 1 4 4 11 22 16 27 10 31 18 20 12 10 14 24 30 10 29 Number of listed companies Number P/E Ratio/Sectors Industry Textiles and Storage Transportation & By-products Wood Food Products and Beverages Industrial Contracting Insurance & Pension Funding Machinery & Equipment Medical, Precision & Optical Instruments Metal Ores Mining Monetary intermediation Auto Parts And Vehicles Motor Oil and Gas Extraction other financial intermediate Other Mining Other Non-metallic Mineral Products Paper & By-products Pharmaceuticals Post and telecommunications Publishing, Printing & Media & Communication TV Radio, And Construction Real Estate Refined Petroleum Products Rubber & Plastic Products Sugar & Byproducts and Dressing of Leather Tanning & Engineering Services Technical Fabricated Metal Products Agriculture Basic Metals Cement, Lime & Plaster Tiles Ceramic & Chemicals & By-products Coal & Lignite Mining Activities Computer & Related Diversified IndustIRR (Holdings) Apparatus Electrical Machinery & 1 2 3 4 5 6 7 8 9 11 34 35 36 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 10 20

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 21 0.0 0.0 -7.7 -5.5 -5.9 -8.3 -9.0 14.5 34.8 67.6 14.5 79.3 24.5 24.5 24.4 28.1 93.9 -11.8 -21.5 -37.7 -22.1 -28.2 -24.2 -15.4 -33.3 -47.5 -15.4 -37.7 -66.0 -58.9 -29.7 -27.8 -44.3 -14.6 -25.5 -29.1 -57.1 -28.5 -25.8 Change (%) 244.8 181.4 273.7 410.4 272.7 631.8 793.9 897.3 182.7 207.9 935.4 813.9 301.5 746.8 724.2 342.3 462.6 195.3 244.3 722.4 801.4 1,125.2 1,383.8 1,139.6 6,562.1 3,519.6 2,915.8 1,144.1 2,103.8 1,646.6 4,590.6 1,138.3 1,047.1 3,163.8 8,223.2 9,954.1 11,967.0 65,314.4 33,201.9 Dec-2010ِ 311.7 191.9 310.4 571.8 272.7 982.5 833.8 938.3 500.4 841.1 146.9 245.6 733.6 373.5 473.9 831.2 228.6 328.1 1,125.2 1,865.2 1,235.1 6,977.1 5,650.2 2,546.2 1,469.1 1,560.3 4,009.7 9,610.0 2,168.3 1,500.6 2,469.4 2,394.3 1,063.0 9,035.9 1,685.0 1,121.4 97,881.2 36,208.7 14,042.0 Dec-2011ِ Indices /Sectors Indices Industry Other Non-metallic Mineral Products Equipments Transportation Other Paper & By-products Other Mining Oil and Gas Extraction Monetary intermediation Auto Parts And Vehicles Motor Metal Ores Mining Medical, Precision & Optical Instruments Machinery & Equipment Investment Companies Furniture Industrial Contracting Insurance & Pension Funding Food Products and Beverages Fabricated Metal Products Financial Leasing Electrical Machinery & Apparatus Machinery & Electrical Transportation and Storage Transportation & By-products Wood Diversified IndustIRR (Holdings) Tanning and Dressing of Leather Tanning & Engineering Services Technical Textiles Computer & Related Activities Computer & Related Rubber & Plastic Products Sugar & Byproducts Coal & Lignite Mining Refined Petroleum Products Chemicals & By-products Chemicals Radio, TV & Communication TV Radio, And Construction Estate Real Ceramic & Tiles Ceramic & Publishing, Printing & Media Cement, Lime & Plaster Post and telecommunications Basic Metals Pharmaceuticals Agriculture 9 8 7 6 5 4 3 2 1 11 24 25 26 23 22 20 21 19 18 17 16 13 14 15 12 10 38 39 35 36 37 33 34 32 30 31 29 28 27 22

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 23 Derivatives Derivatives 13. Calcimin Co. 13. Calcimin 14. Gol-E-Gohar Co. Iron ore (MAPNA) Managements Co. Projects 15. Iran Power 10. Mellat Bank Co. 11. Khark Petrochemical Co. 12. Sobhan Pharmaceutical 6. Iran National Copper Industries 6. Iran Copper Co. National Co. 7. Ghadir Investment Co. 8. Mines Investment & Metals Development Co. Telecommunications 9. Iran 2. Karafarin Bank 3. Chadormalu Mineral & Ind. Co. 4. Saipa Co. Co. Mobarakeh Steel 5. Esfahan’s 1. Parsian Bank 1. Parsian espite espite of decreasing trend of the futures market in 2011 for some problems in the trading system, futures contracts on new underlying assets (MAPNA, By the end of 2011, 15 companies were listed in the futures market. The companies are: companies The market. futures in the listed were By the end of 2011, 15 companies D Calcimin, Calcimin, and Gol-E-Gohar) were listed and traded in the market. the In number of 13,319 this futures contracts with the market, value of 690,000 million IRR were traded. At the end of the year 2011, the futures contracts of the following shares traded. were ------Trading hours are 09:00 am to 12:30 pm of local time, Saturday through Wednes through 09:00 12:30 Saturday am pm to of hours are local time, Trading Final Final Settlement is When physical. no underlying stock is owned by the seller at Market-wide position limit is number of free float share dividedby contract size Initial margin and maintenance margin are 20% of contract value and 60 % of Underlying stocks are common stocks listed on Tehran Stock Exchange (TSE).Each Exchange Stock Tehran on listed stocks common are stocks Underlying the previous day’s settlement price. price. settlement day’s limit is 4% of the previous price single stock futures is assigned with to a ticker symbol (Underlying Stock -Maturity Month). Year-Maturity day day of the regular business days of TSE. Contract size is the number of shares that makes value the of the average contract equal to 20,000,000-30,000,000 IRR. Deliv Daily March. 22 on start events bimonthly the that cycles two-month 6 are times ery the end of the last trading day, the penalty of this is 1% of the contract value based value contract the of 1% penaltyis this the of day, trading last the of end the on the last daily settlement price in mar spot the the in stock underlying the of price closing trading the If buyer. the period to transferred of the contract, which is suer of the underlying stock dividing by the contract size and then dividing by the same the at traded being stock the on contracts futures of number symbols trading limit time. Position of each natural individual is equivalent to 0.001 of market-wide position limit. ket at the end of the trading session of the last trading day is more daily settlement than price in the the trading period last of the contract, the difference is trans ferred 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 thecontract value which is received underlying the of price closing the If account. seller the into account buyer the from stock in the spot market at the end of the trading session of the last trading day is dif the contract, the of period trading the in price settlement daily last the than less the seller account. into account the buyer from is transferred ference divided by number of contracts that is simultaneously The traded. collaterals. broker’s on based limit position market-wide of % 20 utmost is limit Member position basis for calculation of market-wide position limit is the shares number of the is initial margin ,respectively. ,respectively. initial margin 24

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 25 and Achievements and usiness Operations Operations usiness B

- - - and Achievements Business Operations Business Operations To develop some strategic regulations and rules of human resources. regulations some strategic develop To To To update the strategic plan of TSE and plan and establish the system of companies. base of listed data a comprehensive provide To of it. performregistration and phase of capital increase the second To market (farabourse). in OTC TSE list To To plan a relevant mechanism for investigation of violations and amend To participate in mechanizing members oversight and inspection participate process. in mechanizing members oversight To disciplinary of brokers. regulations enforce To re-engineer processes. whole trading To Salam contracts. through trading share establish a mechanism for To To publish 25 books, hold seminars and workshops, to promote training To develop and enhance derivatives market through introduction of op regulations related to operating activities. operating to related regulations programs, to enhance financial literacy of issuers, members and investors. financial literacy enhance of issuers, to programs, tion contracts and futures contracts on new con option develop underlying To access. assets, market the enhance to and to system trading the upgrade regulations. mechanism trading tracts rules and margin monitoring the plans in order to obtain the qualitative and quantitative goals quantitative and qualitative the obtain to order in plans the monitoring of the company. increasing increasing market liquidity and transparency, promotion of market integrity SE has taken numerous actions in the line of its development plans for T ogy, market awareness programs, interaction with the government and authorities, authorities, and government the with interaction programs, awareness market ogy, and regulations of completion deficiencies, and problems issuers listed of diagnosis development of required rules and procedures, and introduction of new financial actions mentioned are: Some of the above instruments. and public confidence, enhancement of market access through updatedtechnol 26

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 27

------Future Outlook (2012) Future Outlook To promote market To integrity and transparency through promotion of mar and ex information share to in order cooperation international enhance To To develop market promote reporting awareness, system, and To increase the increase trading volume and liquidity improve through revising and To up To launch To fixed income securities market (participationcertificate and Su To develop financing system through identification and attraction of new To develop and To strengthen the derivatives market through introduction of perating perating plans of 2012 have been developed in line with the strategic plan and in the way to meet the most important needs of TSE and the Iranian issuers, increase interactions with listed issuers and plan relevant financial ser financial relevant plan and issuers listed with interactions increase issuers, number of active shareholders. vices to meet market participants’ needs. meet market participants’ to vices option and futures contracts on new underlying assets, upgrading the trading trading the upgrading assets, underlying new on contracts futures and option and enhancing market access. system periences, introduce common products, and promote technical knowledge of knowledge technical promote and products, common introduce periences, experts. kuk) with the aim to facilitate financing throughcapital opportunities. marketnew investment create and mechanisms. new trading rules and introducing trading dating monitor efficient and mechanized applying and mechanisms surveillance ket ing systems. O capital market. The main goals and objectives of TSE are: are: TSE main goals and objectives of The capital market. orporate orporate C Governance 28

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 29

- CEO Position Chairman Vice Chairman Vice Non-executive member Non-executive member Non-executive member Non-executive member Non-executive member Legal Person Hossein Salimi Amir Hossein Erza Khosro poormemar Hasan Ghalibaf Asl Hasan Ghalibaf Mohammad Reza Rahbar Hamidreza Rafiee Keshtli Seyed Mojtaba Fahim Hashemi Mohammad Ebrahim Poorzarandi Members of the Board Board of the Members Board of Directors of Board Member Bank Tejarat Bank Hafez Brokerage Co. Tadbir Investment co. Tadbir Bank-e- Mellat Brokerage Co. Social Security Investment Co. fficient policies corporate of governance are criticalfor true and sound performance of the capital market and total economy, and attraction and Iran Melli Investment Brokerage Co. The The board of directors appointed by shareholders in 2011, through holding 26 E Securities and Exchange Brokers Association Securities and Exchange Brokers meetings, has made efforts to create efficient governance in the line of shareholder’s of shareholder’s line in the governance efficient create to efforts made has meetings, customers, including stakeholders different of interests the in balance and interests com has of 3 directors specialized board The and the society. investors employees, maintenance maintenance of public confidence. Inefficientgovernance corporate may decrease the market confidence ,that in turncrisis resultsand price fall in TSE. In fact, TSE is outflow in accountable to not only shareholders but resources of also and investors its other TSE or liquidity has members. developed its corporate governance regulations and determined some expectations from the board of directors and its transparent and full standards, ethic highest the meeting of line the in committees, regulations. and laws with governing and full compliance disclosure, information and 2 sub-committees.mittees - - - - - Auditing Committee To use external consultants, accountants and other experts accountants if required. use external consultants, To make dialogue To with employees or external individuals in order to get re if externalor consultants external auditors managers, with meetings hold To establish To internal control system in order to ensure that all operations of reports financial ensure and transparency. integrity To To suggest external auditor for appointment and decide on its fees. The audit The fees. its on decide and appointment for auditor external suggest To and assess the external performance. monitor auditor To settle To any disagreements of management with external auditors in rela To approve initially all audit and non-audit services rendered by the audit he committee is responsible for monitoring internal and externalsuggesting external auditors to the board of directors or shareholders auditors, for ap tion to financial reports. financial tion to information. quired tions and the article of association. the company are in the line of its goals and in the framework of laws, regula required. ing. firm. firmreports to thecommittee beforereporting to the general annual meet T pointment, deciding on the external auditors’ fees and of fees removal them, reviewing pointment, deciding on the external auditors’ audit areas and times, receiving audit reports, ensuring timely and true improving actions taken by the management against deficiencies,defects, and any- noncom pliance. The audit committee consists of 5 members, at least 2 of whom individuals external are are others non- the and directors of board the of members executive appointed by the board The of audit directors. committee members and chairman are appointed by the board of directors. The audit committee has authorities: the following 30

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 31 - - To monitor compensation methods and incentive plans, assess CEO’s per To review changes in risk management framework. changes in risk management review To To review the process of detecting significant of detectingrisks. significant the process review To governance. corporate to efficiency related oversee of risk management To and conflict on frauds of interests. controls required oversee To To report significant risk exposures and offenses. report exposures risk significant To risky to areas. resources leading of required oversee To policies and guidelines. with other assess compliance To application. resources of and effectiveness conditions assess economy To To oversee development and execution of short term strategic plans of TSE. of short plans of and execution strategic term development oversee To of risk management. policies and procedures review To risk framework. management review To To execute all the board’s responsibilities relating to salaries and wages of CEO. salaries and wages to relating responsibilities all the board’s execute To annual the in CEO and directors of board the of bonuses of a report provide To To oversee effectiveness of risk management and ensure that risk management management risk that ensure and management risk of effectiveness oversee To To review management information adequacy and internal control structures. adequacy control information management and internal review To To oversee effectiveness of ensuring the compliance with rules and regulations. with rules and compliance of ensuring the effectiveness oversee To he committee is responsible for monitoring the management performance management the monitoring in for responsible is committee he relation to strategic policies, and market, liquidity, operation and reputation he committee oversees remuneration of CEO and his deputies. It consists non- consists It deputies. his and CEO of remuneration oversees committee he executive members of the board of directors, chief executive officer and one Remuneration Committee report, according to rules and regulations. to report, according is considered in budget planning. is considered formance formance in the line goals of and the decide company’s on his compensations based on the assessment. T T Risk Management Committee Risk Management ports the board of directors. The committee has the following responsibilities: the following has committee The ports of directors. the board risks management. The The committee risks assesses management. and riskcontrols management and re of his deputies. The committee has the following responsibilities: the following has committee The of his deputies.

March 19, 2011 March For the Fiscal Year Ended Ended Year Fiscal the For

32

Tehran Stock Exchange inancial Statements inancial

www.tse.ir F Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 33 - - - - - to the Shareholders of Shareholders the to Report of Independent Auditors and Legal Inspector Inspector Legal and Auditors Report of Independent Tehran Stock Exchange Company (Public Joint Stock) Joint (Public Company Exchange Stock Tehran Our responsibility is to express an opinion on these financial statements based statements financial these on opinion an express to is responsibility Our Audit on Standards with accordance in audit our conducted We audit. our on Management is responsible for the and preparation fair of presentation these for and Standards, Reporting Financial with accordance in statements financial We have audited the financial statements of Tehran Stock Exchange Company Company Exchange Stock Tehran of statements financial the audited have We the and 2012 March 19 at as sheet balance comprise which Stock) Joint (Public 3 2 Responsibility Inspector’s and Legal Auditor’s 1 Statements Responsibility the Financial for Management’s Report Statements on the Financial An An audit involves performing procedures to obtain audit evidence about the believe that audit We evidence we obtained have is sufficient and to appropriate ration ration of financial statements that are free from material misstatement, whether or error. fraud due to such internal control as management determines is necessary to enable the prepa necessarythe is enable determines to management as control internal such related statement of income and cash flow statements for the year ended together yearended for the statements and cash flow of income statement related 31. 1 to notes with accompanying amounts and disclosures in the financial statements.The procedures selected de our qualified audit opinion. basis for a provide ing. ing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial misstatement. material from free are statements pend on the auditor’s judgment, including the assessment of the risks of material makingIn error. or fraud to due whether statements, financial the of misstatement those risk assessments, the auditor considers internal control relevant to entity’s and of fair preparation the presentation financial into statements order design au of purpose the for not but circumstances, the in appropriate are that procedures dit audit An control. internal entity’s the of effectiveness the on opinion an expressing also includes evaluating the appropriateness of accounting policies used and the reasonableness of estimates made accounting by management, as well as evaluat of the financial statements. presentation ing the overall - - - Dayarayan Audit and Financial Services Firm and Financial Audit Dayarayan Report Regulatory and Requirements Legal Other on We have examined the report of the board of directors subject of Article 232 of 232 Article of subject directors of board the of report the examined have We general annual to submission for prepared been has which Code, Commercial We have examined the transactions set out in part A of note 29 to the financial the to 29 note of partA in out set transactions the examined have We statements which fall under the provisions of Article 129 of the Commercial According According to directors report, referred to new of in commencement and billion paragraph 450 IRR 7 to billion 300 below, IRR from increase capital share of In our opinion the above mentioned financial statements present fairly, in all (Pub Company Exchange Stock Tehran of position financial respects, material 1 May 2012 1 May report of Directors Board subject for Except on received which was 7 above of paragraph 10 June 2012 7 6 Report Inspector on Duties of Legal 5 4 Emphasis of Matter Opinion Consideration Consideration of these two matters are deemed necessary when deciding on pany pany as being the only transactions of this nature for the year under report. The afore-mentioned transactions, have been approved by the board members of the transactions other such that believe to reason no have we opinion, our In company. busi the of course normal the in terms commercial proper on into entered not were ness of the company meeting of shareholders. In our opinion, based on our examinations, we did not notice material cases of non-conformity of the information set out in that of directors. report the board us by to submitted and documents with records Code. Code. These transactions have been notifiedto usby the directors of thecom building construction (Note 27 to financial statements) are part are plans. financial statements) of future building construction to 27 (Note decision. direct such as effect distribution,have its they and as dividend of amount lic Joint Stock) as lic at 19 Joint Stock) 2012 March and its financial performance and its cash flows Standards. with Accounting then ended in accordance the year for 34

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 35 - - Position Chairman Vice Chairman Vice Managing director Non-executive member Non-executive member Non-executive member Non-executive member Non-executive member Non-executive (Public Joint Stock) Joint (Public Hossein Salimi Representative Representative Amir Hossein Erza Khosro poormemar Hasan Ghalibaf Asl Hasan Ghalibaf Mohammad Reza Rahbar Hamidreza Rafiee Keshtli Hamidreza Rafiee Seyed Mojtaba Fahim Hashemi Mohammad Ebrahim Poorzarandi Financial Statements Financial 19 March, 2012 19 March, Ended Year Fiscal the For Bank Tejarat Bank Hafez Brokerage Tehran Stock Exchange Company Exchange Stock Tehran Tadbir Investment co. Tadbir Accounting convention Accounting policies accounting Significant financial statements to Notes Movement of accumulated profit (loss) profit of accumulated Movement statement flow Cash financial statements to Notes History Balance sheet Balance Income statement Member of the Board Member e would like to submit the financial statementsTehran of Stock Com Exchange 2012. March, 19 ended year fiscal the for Stock) Joint (Public Company Bank-e- Mellat Brokerage Co. Social Security Investment Co. Iran Melli Investment Brokerage Co. The financial statements have been prepared according to Account the National according been prepared The financial have statements W Securities and Exchange Brokers Association Securities and Exchange Brokers ponents of the financial statements are as follows: as are of the financial statements ponents ing Standards and were approved by the board of directors on 24 April, 2012. on 24 April, of directors the board by approved and were ing Standards IRR 1,112 6,153 6,153 1,922 8,698 7,761 11,224 64,466 17,592 22,364 27,596 58,313 77,014 255,000 371,970 436,436 Million 20 March, 2011 20 March, IRR - - 8,412 8,412 3,598 9,313 11,277 64,861 25,225 33,896 32,261 56,449 112,760 300,000 471,881 536,742 Million 19 March, 2012 19 March, 18 19 20 20 16 17 15 14 13 Note Equity ’ & Shareholders Total Liabilities Total Total Non-Current Liabilities Non-Current Total Liabilities Noncurrent Liabilities: Noncurrent Benefits Termination Provisions for Employees’ Equity: Shareholders’ Share Capital (300 million fully paid shares) Legal Reserve Other Reserve Retained Earnings Provision for Tax Provision for Loans Received Liabilities Current Total Equity Shareholders’ Total Total Liabilities and Shareholders’ Equity Liabilities and Shareholders’ Total Dividends Other Accounts Payable Other Deferred Income Current Liabilities: Current Accounts Payable Trade IRR 1,034 1,581 11,525 60,487 30,221 13,472 24,521 240,912 195,524 436,436 103,235 190,360 Million 20 March, 2011 20 March, IRR 2,835 1,468 11,407 61,381 31,299 20,921 16,536 223,059 313,683 536,742 219,535 171,360 Million 19 March, 2012 19 March, 2012 9 8 7 5 6 4 11 12 10 Note Total Non-Current Assets Non-Current Total Other Assets Other Assets Long Term Investments Term Long Total Current Assets Current Total Assets Fixed Tangible Assets Intangible Assets Total Non-Current Assets: Non-Current Prepayments Other Accounts Receivable Other Short Term Investments Term Short Accounts Receivable Trade Current Assets: Current Cash Balance Sheet as at – 19 March, – 19 March, at as Sheet Balance Explanatory notes are an integral part an integral Explanatory of financial statements. are notes 36

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 37 IRR 1,112 6,153 6,153 1,922 8,698 7,761 11,224 17,592 22,364 77,014 58,313 64,466 27,596 255,000 371,970 436,436 Million 20 March, 2011 20 March, IRR - - 8,412 8,412 3,598 9,313 11,277 25,225 33,896 56,449 64,861 32,261 112,760 300,000 471,881 536,742 Million 19 March, 2012 19 March, 19 20 20 18 17 16 15 14 13 Note Equity ’ & Shareholders Total Non-Current Liabilities Non-Current Total Total Liabilities and Shareholders’ Equity Liabilities and Shareholders’ Total Share Capital (300 million fully paid shares) Shareholders’ Equity: Shareholders’ Legal Reserve Other Reserve Retained Earnings Equity Shareholders’ Total Noncurrent Liabilities: Noncurrent Benefits Termination Provisions for Employees’ Liabilities Total Total Current Liabilities Current Total Loans Received Liabilities Provision for Tax Provision for Dividends Deferred Income Other Accounts Payable Other Trade Accounts Payable Trade Current Liabilities: Current IRR 1,581 1,034 11,525 30,221 60,487 13,472 24,521 436,436 195,524 103,235 240,912 190,360 Million 20 March, 2011 20 March, IRR 1,468 2,835 11,407 31,299 61,381 20,921 16,536 536,742 313,683 219,535 223,059 171,360 Million 19 March, 2012 19 March, 9 8 7 6 5 4 11 10 12 Note Long Term Investments Term Long Total Assets Total Tangible Fixed Assets Fixed Tangible Assets Intangible Assets Other Assets Non-Current Total Assets Non-Current Assets: Non-Current Total Current Assets Current Total Prepayments Other Accounts Receivable Other Trade Accounts Receivable Trade Short Term Investments Term Short Current Assets: Current Cash 356 85,685 92,420 28,685 77,014 (6,735) (1,400) (5,443) 135,629 (57,000) (30,000) (21,772) (58,615) 87,098 42,621 106,944 202,647 122,459 129,719 106,944 (80,188) (35,361) (22,775) Million IRR 20 March, 2011 20 March, Fiscal Year Ended Year Fiscal 509 77,014 80,049 51,014 55,496 (3,035) (1,750) (7,633) 112,760 255,737 152,661 203,675 168,842 128,312 183,808 152,661 (26,000) (86,895) (51,000) (40,530) (30,532) (90,915) (31,147) Million IRR 19 March, 2012 19 March, Fiscal Year Ended Year Fiscal 21 Note 19 22 25 15 23 20 24 20 31 16 30 Income Statement Income Movement of Accumulated Profit (loss) Accumulated Profit Movement of For the Fiscal Year Ended 19 March, 2012 19 March, Ended Year Fiscal the For Income from Services Rendered Retained Earnings at the Beginning of the year-Adjusted Net Profit Year Retained Earnings at the Beginning of the Transfer to Share Capital Transfer Cost of Services Prior years Adjustment Prior years Distributable Profit Gross Income Distribution of Profit Dividend Selling, Administrative and General Expenses Administrative Selling, Director’s Bonus Director’s Operating Profit Legal Reserve Net Other Income and Non-Operating Expenses Net Other Income and Non-Operating Expenses Other Reserve Profit Before Tax Tax Profit Before Retained Earnings at the End of the Year Retained Earnings at the End of the Income Tax Tax Income Net Profit Earning per Share Explanatory notes are an integral part an integral Explanatory of financial statements. are notes 38

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 39 - (890) 5,247 1,103 3,205 5,570 1,330 21,775 19,274 24,521 12,694 99,166 39,182 (2,501) (72,477) (29,693) (17,608) (20,000) (58,487) Million IRR Million 20 March, 2011 20 March, Fiscal Year Ended Year Fiscal - 154 508 (829) (180) 7,488 8,005 24,521 16,536 19,000 48,807 (7,156) (7,985) (1,078) 113,800 (49,324) (26,482) (101,962) (120,212) Million IRR Million 19 March, 2012 19 March, Fiscal Year Ended Year Fiscal 9-5 26 Note Cash Flow Statement Flow Cash For the Fiscal Year Ended 19 March, 2012 19 March, Ended Year Fiscal the For Net Cash Inflow (out flow) from Investing Activities Net Cash Inflow (out flow) from Investing Activities Net Cash Inflow (out flow) before Financing (Decrease) Net Cash Increase Financing Activities: Financing Loan Prepayment - Principal Year Cash Balance at the Beginning of the Cash Balance at the End of the Year Cash Balance at the End of the Transactions Non-Cash Net Cash Inflow (Outflow) from Returns on Net Cash Inflow (Outflow) from Returns on Investments and Interest Paid for Financing : Taxation Paid Tax Income Activities: Investing Receipts from Sales of Short-term Investments Operating Activities: Operating Activities Operating Net Cash Inflow from Financing: Paid for Return on Investments and Interest Interest Received from Short-term Investments Earnings Received from Long-term Investments Dividends Paid Assets Acquisition of Other Payments for Assets Fixed Tangible Acquisition of Payments for Asset Fixed Tangible Receipts from Sales of Acquisition of Long-term Investments Payments for Payments for Acquisition of Intangible Assets Acquisition of Intangible Payments for Explanatory notes are an integral part an integral Explanatory of financial statements. are notes

- - - 255 20 March, 2011 20 March, 256 19 March, 2012 19 March, Supervising for proper conduct of listed securities transactions and supervisand transactions securities listed of conduct proper Supervisingfor Listing securities including securities of foreign issuers according to the law Determining the brokerage membership conditions for differentgroups of Cooperation and coordination with other financial institutions undertaking ccording ccording to the Article 2 of the Articles of Association, the main activities of are: the company Establishing, organizing and operating the Stock Exchange market for trading trading for market Exchange the Stock and operating organizing Establishing, Providing conditions necessary for fair access of members to trade listed securities. listed trade of members to necessary fair access conditions for Providing ehran ehran Stock Exchange Company (Public Joint Stock) was founded according 22, 2005, and registered November on the Securitiesto Market approved Law ing issuers’ collecting, activities. processing and Providing, issuing ing information issuers’ related to securities, and performing other duties according to the laws and regulations. members, admitting members, the membership and applicants, enactment and enforce and disciplinary of professional principles. ment culture training, makingresearches, trades, securities to related responsibilities share to Exchanges foreign and Iranian other with cooperation and developing, and experiences. information listed securities by Iranian and foreign parties according to laws and regulations. regulations. and laws to according parties foreign and Iranian by securities listed and regulations. Permanent and Temporary Employees Temporary Permanent and The number of employees at the end of the financial year were as follows: as were year the end of the financial at number of employees The 1.2. Principal Activities 1.2. Principal A 1.1. History T 1. Background 1.3. Employment Status 1.3. Employment under number 286502 with the Companies & Non-commercial Institutions Regis tration tration Office Tehran. The in head office of companythe located is Tehranin Kish in with branch registered independent an plus country, the within floors regional 21 now. Island by 40

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 41 - torical cost convention and, where necessary, current values have been used. have values current necessary, where and, convention cost torical he financial statements of thecompany have beenprepared under the his 2. Accounting Convention Convention 2. Accounting T - - Straight line Straight line Reducing balance Reducing balance Depreciation Method Depreciation 7% 25% 3 year 10 year Depreciation Rate Depreciation Assets ong term investments are valued at cost less any retained impairment of any profit when recognized is subsidiaries in investments from Income investment. 3.2. Tangible fixed assets fixed Tangible 3.2. Majorrenew depreciation. accumulated less cost at stated are assets Fixed 3.2.1. with accordance (in assets of life useful the over determined is Depreciation 3.2.2. 3.1. Investments 3.1. Investments L 3. Significant Accounting Policies Policies Accounting 3. Significant Buildings Computer systems and hardware equipment Office Motors vehicles the Article 151 of the Direct Taxation Act) and is calculated using rates and methods and rates using calculated is and Act) Taxation Direct the of 151 Article the as follows: als and improvements, which substantially increase the capacity or the useful life of life useful the or capacity the increase substantially which improvements, and als the in assets the or substantial qualityimprovement have of output are capitalized and depreciated over the remaining useful life of the assets. Maintenance, repairs and minor renewals to or restore maintain the future economic benefits which are expected from the originally assessed standard of performance of the assets incurred. year in which they are off in the written are is approved by the general meeting of shareholders of the investee up to date of rec in is associates investments and from income of financial statements, approval ognized when profit is approvedby the general meeting of investee shareholdersup of to date the of balance sheet. Those marketable investments classified as current assets, are recognized at the lower of cost and net realizable value of total net and cost of lower the at recognized are investments term short and investments investment. of any value realizable 42

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 43 . Depreciation is charged when the asset is ready for use. Depreciation charge charge Depreciation use. for ready is asset the when charged is Depreciation . 3.6. Intangible assets Intangible assets are stated at cost and amortizable intangible assets (software) 3.5. Revenue recognition 3.5. Revenue Revenue sources of the company are commissions from trading, admition and 3.4. Provision for employees’ termination benefit termination employees’ for 3.4. Provision month one basis the at calculated is benefits termination employees’ for Provision 3.3. Foreign currency translation 3.3. Foreign Monetary foreign currency assets and liabilities are converted into Iranian IRR at 3.2.3 are amortized within maximum of 3 years. amortizedare within maximum of 3 years. listing fees, brokerage fees, broker services and other The sources. ceiling of rates Organization. Exchange Securities the and servicesby determined is brokerage for is of Recognition within and framework revenue the at the above time the services year. in each financial rendered are of latest monthly basic salary and recurring allowances for each year of service. each year basic salary monthly for of latest allowances and recurring official exchange rates prevailing at balance sheet date and non-monetary items are items non-monetary and date sheet balance at prevailing rates exchange official calculated at officialrates oftransaction dates. Differences exchangeon resulting at (loss) gain as recognized are monetary items currency foreign of settlement from the time of occurrence. is calculated from the first day of thefollowing month during which brought into the use. asset When is any depreciable asset has not been used for a period of rates. above 30% of the will be equal to of depreciation the rate time, - 82 154 24,285 24,521 32,360 24,000 190,360 134,000 Million IRR Million IRR 20 March, 2011 2011 20 March, 20 March, 2011 2011 20 March, 303 189 - 16,044 16,536 26,360 Million IRR 171,360 145,000 19 March, 2012 19 March, Million IRR 19 March, 2012 19 March, 5-3 5-2 5-1 Notes . Time Time deposits 5-1. with banks consist of 4 time deposit certificates with 20% an second Complex Gas Pars South of bonds contribution to relates amount This 5-2. 5-3. This fund was converted into cash during the year to finance the project of 5. Short term investments 5. Short term 4. Cash Mutual Funds Total Contribution bonds Time deposits Time Bank accounts (Rial) Bank accounts (foreign currency) Cash Total phase, phase, Shiraz Municipality, Ministry of and Energy, Mashad Municipality Plan with annually. rate 20% interest building. TSE new nual interest rate. rate. nual interest 44

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 45 - - - 217 139 150 7,493 3,954 1,519 116 266 191 13,472 IRR 1,355 4,947 2,520 2,130 11,525 Million IRR 3 Million IRR 663 368 20 March, 2011 2011 20 March, 1,034 20 March, 2011 20 March, Million 20 March, 2011 20 March, 286 109 103 326 8,569 8,812 2,716 20,921 97 963 123 191 764 490 Million IRR 6,259 2,520 11,407 19 March, 2012 19 March, Million IRR 19 March, 2012 19 March, 6-1 Note 511 542 1,782 2,835 Million IRR 19 March, 2012 19 March, The balance of prepayments include: of prepayments balance The 8. Prepayments 7. Other accounts receivable accounts 7. Other . Listing fees receivable from listed companies at the end of the end of financial of end the of end the at companies listed from receivable fees Listing 6-1. 6. Trade accounts receivable accounts 6. Trade as follows: Details are Total Goods, services and expenses Tax Other Total Listed companies (listing fees) Listed companies (listing Other Total Over the counter Credit Card deposits National oil Refining and Distribution Co. Loans to employees (current portion) Rented building deposit Income from short-term investment Securities and Exchange Organization Central Depository and Settlement Corporation Central Depository Brokerage (rent and service) Brokerage (rent and Bank Saman (rent) Bank Tejarat (rent) Tejarat Bank Bank Sepah (rent) Other year year amounts to IRR 9,953 million less deduction of IRR 1,384 million provision for bad The debts. provision relates to aged balances (years 1996 and 1997) due from a number of than listed companies more half of been which delisted in have previ ous years. 8,640 6,977 53,363 25,977 16,054 49,872 103,235 Balance at 20/03/2011 1,400 6,645 25,977 14,916 48,938 170,597 219,535 Balance at 19/03/2012 - - 347 7,795 4,469 12,611 12,611 Balance at 19/03/2012 - - - (46) Sold (535) (489) (535) Assets - - - - (16) (16) (16) Other - - 289 3,639 1,243 2,107 3,639 During Depreciation -Million IRR Depreciation the Year the - - 547 9,523 3,226 5,750 9,523 Balance at 20/03/2011 1,747 25,977 19,385 14,440 61,549 170,597 232,146 Balance at 19/03/2012 - - 9) ( Others 105 (30) (21) (126) Transfers and Transfers - - - 702) (92) Sold (794) ( (794) Assets Cost- Million IRR - - 1,038 1,931 2,969 117,243 120,212 Additions 1,411 59,395 53,363 25,977 19,280 12,727 112,758 Balance at 20/03/2011 Furniture, fixtures and computers fixtures Furniture, vehicle Motor Total Capital investment prepayments Total Description Land Building 9. Tangible fixedassets 9. Tangible 46

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 47 6,977 8,640 25,977 16,054 53,363 49,872 103,235 Balance at 20/03/2011 1,400 6,645 25,977 14,916 48,938 170,597 219,535 Balance at 19/03/2012 Net Book Value- Million IRR Value- Net Book - - 347 7,795 4,469 12,611 12,611 Balance at 19/03/2012 - - - 489) (46) Sold ( (535) (535) Assets - - - - (16) (16) (16) Other - - 289 3,639 1,243 3,639 2,107 During Depreciation -Million IRR Depreciation the Year the - - 547 9,523 3,226 9,523 5,750 Balance at 20/03/2011 1,747 25,977 19,385 61,549 14,440 170,597 232,146 Balance at 19/03/2012 - - (9) Others 105 (30) (21) (126) Transfers and Transfers - - - (92) Sold (794) (702) (794) Assets Cost- Million IRR - - 1,038 2,969 1,931 117,243 120,212 Additions 1,411 59,395 53,363 25,977 19,280 12,727 112,758 Balance at 20/03/2011 Capital investment prepayments Total Description Land Building and computers fixtures Furniture, vehicle Motor Total 7 4 4 5 20 108 Tax Tax Surplus Million IRR Million Value Aadded Value 154 63 49 56 238 107 275 (37) IRR Sale Price Million IRR Million Surplus Million 46 110 173 508 105 120 Price Million IRR Million Disposal Net Book Value Value Net Book Million IRR Million 59 43 52 59 213 Value Net Book Million IRR Million (46) Million IRR Million Depreciation Depreciation Accumulated 84 113 489 183 109 Million IRR Million Depreciation Accumulated 92 Cost Million IRR Million 702 242 156 161 143 Cost Million IRR Million Description Mazda Auto Mazda Description Selling costs Peugeot Pars Peugeot Pars Peugeot Pars Furniture 9-2. and Furniture fixtures additions mainlyrelate to purchaseof computers and of 3 Megan cars. purchase to relate additions 9-3. Motor vehicle as follows: are disposal of vehicles 9-4. Details of surplus from . All tangible fixed assets up to IRR 32,515 million are insured against fire, flood fire, against insured are million 32,515 IRR to up assets fixed tangible All 9-1. 9-5. Details of income from sale of fixtures and computers are as follows. The sales sales The follows. as are computers and fixtures of sale from income of Details 9-5. 9-6. Capital investment prepayment 9-6. of Capital prepayment investment IRR 117,243 million to relates payment for Computers and Fixtures hardware, network equipment and closed circuit television cameras. television closed circuit and network equipment hardware, and earthquake, procedures were not received at balance sheet date. balance at not received were procedures a land in Saadat-Abad area. a land in Saadat-Abad 48

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 49 - At 158 603 761 20/03/2011 64 52 761 704 1,581 Million IRR Million IRR At 99 Net Book Value Net Book 170 369 638 20 March, 2011 2011 20 March, 19/03/2012 - 80 411 331 19/03/2012 Balance at 64 57 638 709 1,468 Million IRR - 19 March, 2012 19 March, 59 234 293 During the Year the Million IRR - 10-1 Accumulated Amortization Accumulated Note 21 97 118 20/03/2011 Balance at 170 179 700 1,049 19/03/2012 Balance at - - 170 170 Cost Purchases Million IRR - 179 879 700 20/03/2011 Balance at 10-1. Details of software are as follows : 10-1. Details as follows of software are 10-Intangible assets 10-Intangible Total Software Regional floor branches link lines – Hafez floor 2 PRA telephone line deposits 14 Mobile and 32 Other Firm valuing software Total Futures contracts software - - 21 200 10,000 20,000 30,221 Million IRR March 20, 2011 20, March 50,000 60,487 10,487 Million IRR 20 March, 2011 2011 20 March, 21 870 208 200 10,000 20,000 31,299 Million IRR March 19, 2012 19, March 5 20 % 20 0.5 0.1 99.99 Investment 11,381 50,000 61,381 Million IRR 19 March, 2012 19 March, No. of 15,600 Shares 870,000 200,000 199,998 10,000,000 20,000,000 12. Other assets 12. Other 11-Long term investments term 11-Long : as follows are in other companies investments term Long Total Employees’ loan (long term portion) Employees’ Deposit for reserve with SEO Energy Exchange Company Energy Asset Management (Private Joint Stock). Central Central Depository Company Iran Commodity Exchange Company Iran Commodity Exchange Iran Farabourse Total Iran Financial Center (Private Joint Stock) Iran Financial Center (Private 50

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 51 - 706 666 673 375 - 3,386 1,560 1,312 2,546 11,224 1,922 3,750 30,000 45,000 37,500 Million IRR (114,328) 20 March, 2011 2011 20 March, Million IRR 20 March, 2011 2011 20 March, - 654 777 732 4,398 1,388 1,235 2,093 11,277 Million IRR 19 March, 2012 19 March, 3,598 3,750 30,000 45,000 37,500 51,000 (163,652) Million IRR 19 March, 2012 19 March, uring the year under report, except for a number of shareholders with insuf ficient information, dividends of other shareholders whowere informedby he amount of IRR 9,313 million (Rls 7,761 million last year) relates excess amounts of received from a number of brokers (prepayments through Central D 15. Dividends T payable accounts 14. Other 13. Trade accounts payable accounts 13. Trade Balance at the end of the year Dividends in 1388 (IRR 200 per share) Dividends in 1387 (IRR 300 per share) Dividends in 1386 (IRR 250 per share) Dividends in 1385 (IRR 25 per share) Dividends paid Dividends in 1389 (IRR 200 per share) Total Employees saving fund Provision for employees’ unused leave Provision for employees’ Accrued expenses payable Taxes Unidentified receipts Insurance Securities and Exchange Organization Other public notice or insertion paid in and were codal system, settled. Up to the of date was also settled. balance IRR 787 million of above financial statements, of approval Deposit Systems) in relation to computation of brokerage commissions. This was end of April 2012. by paid and settled

- Assessment Assessment % 34 27 39 100 Tax audit Tax Tax audit Tax (282) 3,666 2,769 6,153 - Shares 4,821 27,596 22,775 Million IRR Balance 20/03/2011 86,592,900 Provision 68,389,300 100,017,800 255,000,000 20 March, 2011 2011 20 March, Million IRR 20 March, 2011 2011 20 March, - 1,114 31,147 32,267 77 70 Balance Provision 5,729 5,876 Shareholders - 6,153 3,464 8,412 Paid (1,205) 21,637 20,452 Million IRR 34 % 100 26.8 39.2 19 March, 2012 19 March, Tax - - 20,452 Finalized - Shares 24,087 20,624 80,458,006 Assessed 117,667,997 101,873,997 300,000,000 19 March, 2012 19 March, 31,147 21,661 15,990 19 March, 2012 -(Million IRR) 19 March, Declared Declared 76 71 5,690 5,837 86,644 62,429 Income 124,588 Taxable Shareholders 110,300 183,808 130,521 Declared Declared Profit (Loss) Profit

his relates to the balance of a 3-year loan obtained from Bank Melli Iran with 4% annual interest. This loan was given to employees, as interest-free, hous hare hare capital at the beginning of the year was IRR 255 million divided into 255 million registered fully paid shares of IRR 1,000 each. By the resolution of Fiscal Year Fiscal 19. Share capital 19. Share S 18. Provision for employees’ termination benefit termination employees’ for 18. Provision is as follows: of this account Movement 17. Loans received 17. Loans received T 16. Provision for tax for 16. Provision : is as follows taxes Summary for of provision 1390 1389 1388 Total Balance at the beginning of the year Paid during the year Current year provision Balance at the end of the year Brokers Financial institutions Other extraordinary general meeting of the shareholders dated 06.Oct.2010, share capital share 06.Oct.2010, dated shareholders the of meeting general extraordinary retained from billion 26 reservesIRR other and from billion 19 IRR by increased was earnings (total IRR 45 billion). At balance sheet date shareholders, as classifiedby : the Article as follows 9 of the Articles were of Association, ing loan, through an agreement with Bank Melli, bourse Branch as a party. The loan The party. a as Branch bourse Melli, Bank with agreement an through loan, ing year. settled during was this financial 52

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 53 - - 9 22,364 30,532 33,896 158 (19,000) 6,599 8,725 4,623 44,390 19,921 44,390 31,042 13,600 131,737 202,647 117,970 131,737 Million IRR Other Reserve Other Million IRR Million IRR Million IRR 20 March 2011 20 March 20 March 2011 20 March 20 March 2011 20 March - 7,633 17,592 25,225 524 11,180 62,679 30,267 151,611 8,800 5,186 255,737 62,679 48,169 Million IRR Legal Reserve Million IRR 25 305 Million IRR 19 March 2012 19 March 16,800 19 March 2012 19 March 151,611 134,481 Million IRR 19 March 2012 19 March 19 21-2 21-3 21-1 Note Note Notes 21-2-1

0.8 1000 Income from broker services broker 21-2. Income from . According 21-1. to According the approval of the Securities & Exchange Organization direc 21. Income from services from rendered 21. Income 20. Reserves Income from services rendered to brokers Total Total Income from listing fees Rent Ordinary transactions Whole trading Futures contracts Market maker transactions Balance at the beginning of the year Balance at the beginning Increase in the year to the share capital Transfer of the year Balance at the end Income from trading commission Total Trading system fees Trading Brokerage subscriptions Exchange floor trading station fees stations permit fees Trading tive, tive, income from trading commission and futures contracts commission has been calculated on transaction value up to to is year previous income compared increase due to in increase and volume value IRR 200 million (per below table). The traded. of shares - 986 214 7,996 4,505 3,847 2,018 1,107 1,533 3,219 2,924 1,127 4,780 48,811 48,811 15,360 12,444 18,127 80,188 Million IRR Million IRR 20 March, 2011 2011 20 March, 20 March, 2011 2011 20 March, 3,884 19,921 16,037 Million IRR 20 March, 2011 2011 20 March, - 274 164 4,211 3,091 5,013 54,993 19,149 86,895 744 8,633 5,272 4,639 2,378 1,006 Million IRR 54,992 17,395 14,926 19 March, 2012 19 March, Million IRR 19 March, 2012 19 March, 22-3 22-1 22-2 Note 30,267 16,460 13,807 Million IRR 19 March, 2012 19 March, Note 21-3-1 21-3-2 According to the Board of directors’ approval dated 23.5.2007, annual trad annual 23.5.2007, dated approval directors’ of Board the to According . At the approval of Securities and Exchange Organization, listing fees are Listing fees Increases in the direct wages and salaries with compared the previous year is the . Details of direct salaries and wages are as follows : as follows 22-1. Details of direct salaries are and wages 22. Cost of services:22. Cost 21-3-1 21-3-2. At the approval of the Securities and Exchange Organization, admission 21-2-1. . Income from listing fees fees listing 21-3. Income from Admission fees New year bonus and rewards Benefits Social security - employer contribution Overtime Employees termination benefits Duty travel costs Other Total Salaries and wages Total Consultancy fee Computers, communications and technology costs Computers, communications and technology and Marketing and development of markets instruments financial Conference and exhibition costs Direct salaries and wages of regional floors Supply and maintenance Floors security forces fees management system Trading Total result of wage increase approved by Board of Directors and Labour Ministry. of Directors Board by approved increase of wage result fee is 0.002 of registered share capital of admitted companies with maximum of IRR of maximum with companies admitted of capital share registered of 0.002 is fee 500 million companies with for up to IRR 250 billion capital share and maximum of IRR 250 billion. over capital with share companies IRR 1,000 million for 0.002 of registered capital upto and maximum of IRR 50 million annually. and maximum of IRR capital upto 0.002 of registered ing system fee ceiling has been increased from 5% and IRR 500 million to 10% and IRR 800 million. 54

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 55 9,266 3,591 1,872 1,684 1,714 18,127 Million IRR 20 March, 2011 2011 20 March, 2,211 8,412 3,543 3,090 1,893 19,149 Million IRR 19 March, 2012 19 March, Note 22-2-1 . Supply and maintenance of regional floors : of regional . Supply and maintenance . Increases in costs of utilities are the result of targeted subsidies plan. of targeted the result of utilities are 22-2-1. Increases in costs holding two specialized for and are exhibition costs 22-3. Increases in conference 22-2 Depreciation cost Utilities Repair and maintenance Other Total Rentals for regional floors buildings conferences, namely “Issuers Finance Opportunities” and “Firms Listing in Securities in Listing “Firms and Opportunities” Finance “Issuers namely conferences, Exchange” 56

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 57 5 (2) 381 322 38 741 536 372 366 345 273 196 1,000 2,200 751 819 1393 14,764 23,951 42,621 1,750 2,169 1,106 1,040 6,336 7,024 4,742 2,465 1,891 1,008 35,361 25,036 25,036 Million IRR Million IRR Million IRR 20 March, 2011 2011 20 March, 20 March, 2011 2011 20 March, 20 March, 2011 2011 20 March, 5 26 346 (322) 2,000 6,000 - 13,375 34,066 55,496 545 550 471 405 593 389 139 146 1,844 2,124 2,169 1, 016 Million IRR 40,530 30,139 19 March, 2012 19 March, 737 Million IRR 8,911 8,236 4,245 3,424 2,407 1,093 1,086 30,139 19 March, 2012 19 March, Million IRR 19 March, 2012 19 March, 6-1 23-1 Note 24. Net other income and non-operating expenses non-operating and income other 24. Net Increases compared to the previous year are as a result of approvals by Ministryof by approvals of result a as are year previous the to compared Increases 23-1. Salaries and wages: 23. Selling, administrative and general expenses general and 23. Selling, administrative Other non-operating income (expenses) Dividend from Iran Commodity Exchange Gain (loss) of disposal exchange Income from tangible fixed assets sale Dividend from Central Depository Company Iran Farabourse dividend Contribution bonds Total Bank deposit interest Total Total Salaries and wages - basic Salaries and wages Other Rent Bad debts Council duty Utilities Meetings consumable supplies Administrative and Board meeting attendance fees Subscription to professional associations Publication Depreciation Repair and maintenance Post Bonuses and rewards Benefits Overtime Social security -employer contribution Duty travel Employees’ termination benefits termination Employees’ Other Labor and the Board. Labor and the Board. - - - 1,034 27,596 77,014 (1,224) Million IRR Million financial statements Balance in the current Balance in the current - 130 IRR 1,668 1,237 3,035 Credit Million Million - - - IRR 3,035 3,035 Debit Million Million 1,164 9,556 26,359 80,049 Million IRR Million financial statements Balance in the previous Balance in the previous 8 14 16 Note IRR 253 million and IRR 1,114 million amendments to tax provision for years 2010 salary year to tax authorities. by tax, assessed relating IRR 802 million IRR 866 million VAT for year 2009 plus 20% late payment fine. This was finalized finalized was This fine. payment late 20% plus 2009 year for VAT million 866 IRR 2007, 2008 and 2010. 2007, 2008 and and paid during this year. 25-1. For proper presentation of financial position, other accounts payable, pre Prior years adjustment of IRR 3,035 million are made up of following corrections made up of following 3,035 million are of IRR adjustment years Prior 25. Prior period adjustments 25. Prior Prepayments Other accounts payable Tax provision Tax Retained earning Retained payments, payments, tax provision and retained earnings, comparative figures have been ac dif balances Socomparative these below. per represented and adjusted cordingly financial statements. disclosed in last year’s with the amounts fer 58

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 59 - - 543 (996) 3,864 2,487 1,880 5,454 8,698 87,098 99,166 (8,462) (1,400) Million IRR 20 March, 2011 2011 20 March, - 14 (636) 3,932 2,259 1,605 (9,437) (1,801) (8,698) (1,750) 113,800 128,312 Million IRR 19 March, 2012 19 March, IRR 22,710 million or 30 percent of a land purchase agreement ; the payment IRR 850 million or 50 percent value of a land in Zanjan City ; the payment for B. Contingent liabilities Contingent B. There were no material contingent liabilities at the balance sheet date to require There were no significant events after balance sheet date which could require dis require could which date sheet balance after events significant no were There 28. Post balance sheet date events date sheet balance 28. Post A. Capital commitments A. Capital 27. Contingent liabilities and capital commitments commitments capital and liabilities 27. Contingent 26. Reconciliation of operating profit of operating 26. Reconciliation Total Operating profit Depreciation expenses Net increase in employees’ termination benefits termination Net increase in employees’ Increase in operating accounts receivable Increase in operating in prepayments Increase (decrease) accounts payable Increase in operating Increase (decrease) in deferred income Increase (decrease) bonuses Directors’ fixed assets adjustments Tangible Other non-operating income and expenses Prior period adjustments which is subject to transfer of title in the name of TSE. the name of of title in which is subject transfer to disclosure. for which is subject to transfer of title in the name of TSE. The land is in Saadat Abad Abad Saadat in is land The TSE. of name the in title of transfer to subject is which for building on it. construct to the new company’s area closure or adjustment to financial statements. to or adjustment closure ------6 67 266 IRR (from) Due to Million Balance Balance 2011 - - - - 50 (6) 717 173 IRR 2,200 1,000 70,000 Million Amount ------97 50 109 IRR (from) Due to Million Balance - 5 50 67 608 214 IRR 6000 (200) 1,312 2,000 Million 135,000 (70,000) Amount Bank AGM AGM Rental Pricing Method Relevant statement resolution resolution agreement agreement regulations Agreement regulations Agreement OTC and SEO Reconciliation OTC and SEO board approval Building rental board approval shares Tax on Tax Rentals expenses expenses expenses expenses Dividend Dividend certificates Rentals and Listing fees Listing fees Description Transaction Transaction Allotment of Allotment of Allotment of collateralized Purchase and sale of deposit 2012 Type Board Member Member Member Member Member Investee Investee Investee Investee Investee Board Board Board Board Board Member company company company company company Relationship Party Bank Tejarat Bank Bank Tejarat Bank Bank Tejarat Bank Iran Farabourse Iran Farabourse Iran Farabourse Other Related Parties Other the Commercial Code the Commercial B. Transactions Subject to Article 129 of Subject to Transactions 29. Related party transactions 29. Related Iran Central Depository and Settlement Co. Iran Central Depository and Settlement Co. Iran Central Depository and Settlement Co. Iran Central Depository and Settlement Co. Iran Central Depository and Settlement Co. A. 60

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 61 - 15,266 30,000 Amount Million IRR : Proposal Legal Obligations: Board of Directors Article 90 of the Commercial Code. Dividend proposed by Board of Directors (Rls 100 per share) s disclosed in not 19, share capital has been increased from IRR 255 to billion IRR 300 billion funded from other reserves and retained earnings. In line Distribution of minimum 10% of net profit as dividend, required by 31. Retained earnings at the end of the year: of the end the at earnings 31. Retained Distribution of retained earnings in the cases following is subject to Annual Gen 30. Earning per share per 30. Earning A with the reporting net requirements, earning per share has been calculated based disclosed. and shares) million (300 ordinaryshares of number average weighted on Comparative net earning per share has also been calucated at the same basis and operational (64%) 324 IRR of consists 509 IRR of share per earning Net represented. and IRR 185 (36%) non-operational profit. profit eral Meetingeral resolution: Appendices 62

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 63 TSE About Appendix 1 ppendices A

------% 34 100 26.8 39.2 80,458,006 117,667,997 300,000,000 101,873,997 Shares number Shares 76 71 5837 5690 Shareholders number Shareholders Shareholders in 19 March, 2012 in 19 March, Shareholders Group ehran ehran Stock Exchange Company (Public Joint Stock) was founded according registered 22, 2005, and on November the Securitiesto Market approved Law After After passing of the Act, some changes occurred in the legal structure of the The Securities & Exchange High Council will be the highest authority and will be Due to the capital markets development and the need for new regulation, the Regulatory framework Capital and shareholders and Capital According to the Securities Market Law, no legal or individual shareholder may History T Total Others Brokers Financial Institutions tration tration Office Tehran. The in head office of companythe located is Tehranin Kish in with branch registered independent an plus country, the within floors regional 21 now. Island by under number 286502 with the Companies & Non-commercial Institutions Regis responsible responsible for all related policies, market strategies, and supervision of the mar tect investors’ tectrights and investors’ aimed at organizing, and development of a fair, efficient The Act the for the and regulation securitiesprovides required transparent market. financial various of development violations, financial of prevention primarymarket, and financial institutions. instruments Iranian securities market. According to the Act, a new regulatory body, called Se curities & Exchange Organization (SEO) was established to operate as a supervisor the words, other In Law. the under affairs other and enforcement and legislation on regulator of the securities market comprises two regulatory institutions: Securities Organization. and Securities High & Exchange Council & Exchange ket. The Chairman of the Council will be the Minister of Economic Affairs nance; and other Fi members are: Minister of Commerce, Governor of the Central of Bank Iran, Presidents of the Chambers of Commerce and cooperative, Attorney Gen eral, Chairman of the SEO, representative of the Ministry of Economic Affairs and Finance, the Brokers Association, three financialexperts , proposedby Minister of latter Ministry and approved by the Council of Ministers, and one representative for each commodity The exchange. SEO will be responsible for administrative and Directors of Board SEO’s The Directors. of Board the by governed supervisory duties, Highwill be elected the Securities Council. by and Exchange new Securities Act was passed by the Iranian Parliament in The 2005. Act, which is pro to passed been has one, previous the than advanced and comprehensive more fied as brokers, financial institutions and others. others. financial institutions and fied as brokers, hold directly or indirectly more than 2.5% shares of TSE. TSE shareholders are classi are shareholders TSE TSE. of shares 2.5% than more indirectly or directly hold 64

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 65 Tehran Stock Exchange Stock Tehran Commodity Exchange Commodity Iran Farabourse Iran Legal structure of iranian securities market securities structure of iranian Legal - he board of TSE directors constitutes of 7 non-executive members appointed by the shareholders of the company for 2 years. These individuals appoint a Organizational structure Organizational T managing director, who manages the operations of the Exchange through the vari the through Exchange the of operations the manages who director, managing ous department heads term that of Managing reportofficedirector’s is to him/her. terms. two-year renewable for 66

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 67

- - - - 256 Total 105 Regions Trading 151 Tehran Saturday-Wednesday Saturday-Wednesday 9:00-12:00 First market (main and secondary boards), Secondary Market (order driven) System (ATS) Trading Automated Opening/Continuous auction Selective Shares & rights, corporate participation bonds Iranian Rial bid/ask, prices, volume, value and company announcements 22.5% tax levied on earnings at source from company None Human resources status in 19 March 2012 in 19 March status Human resources Human Resources ccording ccording to the rules, the price fluctuation is fixed to a maximum of 4% , either way from the last closing. Restriction on rights is 8%. This can be changed be can This 8%. is rights on Restriction closing. last the from way either SE is open for trading five days a week from Saturday to Wednesday, excluding excluding Wednesday, to Saturday from week a days five trading for open is SE public takes Trading holidays. place through the Execution Trade Automated Currency Real time information Dividend tax Capital gain tax Market segmentation System Mechanisms Market-maker/ Specialists Instruments Days Hours The best price (price priority) (price best price The priority of order Time The The trading system is an order driven system, which matches buying and selling price fluctuations Daily A Under the price priority rule, a selling (buying) order with the lowest (highest) The The trading system also generates and displays details of current and historical Trading system Trading T System from System 9am to 12am, which is with integrated a clearing, settlement, deposi who brokers, accredited TSE with orders their place can They investors. the of orders matches automatically system the Then, system. trading the into orders these enter particulara quantityrequire of and price securitythe orders on sell based and buy tory registry and system. follows: is as of equities is determined which the price mechanism for The ments. in a specific situationby the Board ofTSE the in case of unusual price movements. Short lot is determined. and no minimum trading selling is not permitted price price takes precedence. Under the time priority rule, an earlier order takes prece trading trading activity, including prices, volumes traded and outstanding buy and sell or dence over others at the same price. others at over dence This ders. ensures that investors have the required information to be able to make decisions. investment informed - - - - - Clearing & Settlement In the Future In the Future Central Securities Depository of Iran (CSDI) T+3 Yes Book Entry Netting In the Future entral entral Securities Depository of Iran has been established as an implication of (CSDI) Iran of DepositorySecurities Central The Act. Market Securities new the imely issuance of information is one of the main indications of a efficient fair, and transparent TSE market. continuously issues news and information relat Settlement Clearing DVP Risk Sharing Margin/Lending Central Depository Period Registered C Clearing & settlement Clearing Market information dissemination information Market T Trading Trading floor is opento investors during operatinghours and provides facilities The CSDI is an integral part of a transparent, viable, fair and efficient equities mar equities efficient and fair viable, transparent, a partof integral an is CSDI The ed to the trading price and volume through its website according to the ed disclosure to the according trading price its and through website volume as investors for provided is trades to related Information SEO. the by approved rules free in real time. SEO also provides news related to issuers through its Be website. sides, SEO has implemented a network through which Listed- - named com CODAL now. by free are these information All disseminete. fromally panies information like large screens displaying real time trading be data. can which terminals touch-screen Additional contains that floor space trading the oversees which is available of outstanding buy and sell orders. view the details to investors used by accomplishes clearingaccomplishes and settlement maintains the of and secu trading, transfers rities as dematerialization and acts as the central registry of the country’s securities registry country’s actsthe and of central ritiesthe as dematerialization as deposito new the by benefited be will institution the future, near In well. as market and DVP of basis the on trading of settlement and clearing carryingout ry software, acting as CCP in trade clearings. CSDI is managed as a corporation type company, and banks as its shareholders. brokers TSE, with ket in Iran that has attracted confidencedomestic andinvestor’s willcontribute to of the nation. the wealth 68

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 69

- - shows the total number of shares. number of shares. the total and C shows (base_Value) it it represent represent share price of company i respectively at time and t at C C

ib it ib P P and P it n 1990, the All-Shares Price Index, TEPIX introduced to the market as the main share all of value market weighted a is TEPIX movement. price share of indicator TEPIX =

TEPIX calculation method is as follows: TEPIX calculation adjust and No TEPIX as method are calculation indices markets second and First plus the dividend reinvested. index level is the price that index, return TEDPIX is a total In addition to TEPIX, Total return index (TEDPIX),Total In price TEPIX, indices addition of and to First second Indices I TSE commission TSE 200 maximum with buyers and sellers both by payable value transaction of 08% 0. SEO commission 0.1% of transaction value payable by both buyers and sellers with maximum 200 fee Clearing 200 maximum with buyers and sellers both by payable value transaction of 0.07% Taxes capi on taxes no are There transactions. of value the of percent 0.5 pay sellers The commission bonds trading Participation 0.1% of transaction value payable by both buyers and sellers with maximum 100 Brokerage fees fees Brokerage With effect from 22 May 2007, the brokeragefees for shares and rights are 0.4% ex-dividend. becomes when a share on the day takes place ment Where Where P 1990; 21st, on March the close of trading markets, of everymarkets, individual industry as well. is computed prices appearing on the TSE Price Board. Price TSE appearingprices on the million IRR. million IRR. million IRR. other taxes. any from on participation exempt bonds are million IRR.Transactions maximum 100 million IRR. maximum 100 million tal gain. 22.5% tax is levied on each profitcompany’s and there is no dividend tax directly. on shareholders of the value of the transaction payable by both sellers and buyers subject to Commissions & Fees Commissions Daily Daily Daily Daily Daily Daily Interval Estimation

Value Base 100.00 100.00 100.00 4,114.91 1,653.08 1,393.88 Base Date March 21,1998 March 21,1998 March 21,1998 March 21,1998 March 21,1998 March 21,1998 1 1 1 1 37 419 Number Indices TEDPIX Financial Index Industrial Index Each Company Index Each Top 50 Companies Index Top Each Industry(sector) Index Each 70

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 71 Put 0.0006 SEC Long 0.0004 Put 0.004 Individual Client 0.001 of market-wide position limit Long 0.004 Trading Member Trading Put Description 0.00048 Iranian Rial 10 contracts 30,000,000 IRR 1 Rls per share 20% of contract value 60 % of initial margin of the regular business days. of the regular business CDS The day after last trading day Long 0.00032 previous day’s settlement price settlement ±4% of previous day’s position limit based on broker’s collaterals position limit based on broker’s no. of contracts that simultaneously are traded. (underlying stock -maturity year-maturity month) year-maturity (underlying stock -maturity First trading date till the day before delivery date Each single stock futures is assigned a ticker symbol Each single stock futures Member position limit: utmost 20 % of market-wide 20 % of contract value in cash or other agreed notes 20 % of contract value in cash or other agreed Put Common stocks listed on Tehran Stock Exchange (TSE). Tehran Common stocks listed on 0.00048 6 two-month cycles with bimonthly events start at 22 March. 6 two-month cycles with 09:00AM-12:30 PM Tehran time, Saturday through Wednesday time, Saturday through Tehran 09:00AM-12:30 PM 0.005 of contract value at settlement price of the last trading day’s 0.005 of contract value at settlement price of the Institutional Client limit or 0.1 of paid capital When the capital increase and dividend payment by the issuer, TSE adjusts the last When the capital increase and dividend payment by the issuer, If the annual general meeting of the company is coinciding with the trading periodtrading the with coinciding is company the of meeting general annual the If of a contract, TSE may avoid to set trading symbol for the contract in this month. of a contract, 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. daily settlement price and the contract size before the trading symbols are opened. TSE • • • • Long Higher of 0.001 of market-wide position The number of shares that makes the average value of the contract equal to 20,000,000- makes the average value of the contract equal The number of shares that 0.00032 Market-wide position limit: no. of free float shares divided by contract size divided by Market-wide position limit: no. of free float shares difference is transferred from the seller account into the buyer account. difference is transferred from the buyer account into the seller account. contract, the difference When no underlying stock is owned by the seller at the end of the last trading day, the When no underlying stock is owned by the seller at the end of the last trading day, penalty of this is 1% of the contract value based on the last daily settlement price in the If the closing price of the trading period of the contract, which is transferred to the buyer. 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 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 limit Others Position Currency Contract Order limit Trading fees Trading the contract) Contract size Delivery date Initial margin Trading hours Trading Ticker symbol Ticker Trading period Trading Daily price limit Delivery months Underlying stock Maintenance margin Physical delivery fee Collateral limit (Optional) Minimum price fluctuation (Based on trading value of Single stock futures contract specifications futures contract stock Single Appendix 2 ppendices A 72

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73 Online Trading Online

√ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ Mutual Fund Mutual

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Consultancy Listing √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ .com .ir .com .com .com .com .com .com .com .com .com .ir .com .ir Web Site Web -broker .samanbourse .pasargadbroker .refahbroker .saderatbourse.com .bmibourse.com .mellatbourse .maskanbourse.com .agribourse.com .ariabourse.ir .atibroker .atieh .abbroker .karafarinbrokerage .argbroker .armanbroker .armoonbourse.com .smbroker .bahmanbroker .novinbourse.com .aradbourse.com .aminsahm .apadanabrokering www www www www www www www www www www.arianovin.com www.aselbroker.com www www www www www www www www www.badrehsaham.com www www www www.abanbroker.com www.abtinstock.com www.agahbroker.com www.aminbc.com www www E-mail [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] Brokerage Co. Brokerage Bank Saman Bank Pasargad Bank Refah Kargaran Bank Saderat Iran Bank Melli Iran Bank Mellat Bank Maskan Bank keshavarzi Arya bours Arya novin Asel Ati saz Bazar Atieh Bank TAT (Andishe Bartar) TAT Bank Bank karafarin Arg Hooman Jahan Naghshe Tadbir Arman Armoon Bourse Bank Sanat va madan Badreh Saham Badreh Bahman Bank Eghtessad novin Arad Iranian Abtinstock Agah Avid Amin Amin Sahm Apadana Aban TSE’s Brokerage Companies in 2011 in Companies Brokerage TSE’s Online Trading Online

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Consultancy Listing √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ .com .com .com .com .com .com .com .com .ir .com .com .com .com .com .com .com .ir .com Web Site Web .etminansahm .cmibrokerage .mehrbroker .mofidbourse.com .dnovinbroker .irankbc .khobregan.com .dk.rhbroker .ipb.ir .bsbourse.com .imenbourse.ir .iransahm .noandishan.ir .omidsahm .boursebimeh .hafezbourse.com .farabibroker .tehranstock .nahayatnegar .btc.rhbroker .edbibroker .bazarsahambourse .behgozinbroker .behinpouya .ebrazbourse.com www www www www meyarsaham www. www www www.jahanibroker.com www www www.boursiran.ir www www www www www www www www www www www.firouzex.com www www.movahedan.com www www www www www www E-mail [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

Brokerage Co. Brokerage Etminan Sahm Ebraz Sepah) Afarin Mehr Saham Meyar Mofid Donyaye Novin Saham Jahan Sahm Karamad Saham Khobregan Boursiran Donyaye Khobreh Isatis Poya Borhan Sahand Imen Bourse Iran Sahm Noandishan Bazar Sarmayeh Noandishan Bazar Omid Sahm Bourse Bimeh Iran Hafez Farabi (Omran) Asia (Moein sahm) Firouze Moshaveran Saham Movahedan Nahayat Negar Bank Towse-e Saderat Towse-e Bank Saham Bazar Behgozin bourse Behin Pouya Bank Tejarat Bank Kaspian Mehr Iranian(Bank Kaspian Mehr 74

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir

75 Online Trading Online

√ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ Mutual Fund Mutual

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Booking

Internet Order Internet √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √

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Consultancy Listing √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ .com .com .com .com .com .com .com .com .com .com .co .com .com .com .ir Web Site Web .sahamgostaran .bz.rhbroker .sababroker .rbc.ir .shakhessaham.com .simabgoonbourse.com .tadbirbroker .parsianbroker .rahbord-investment .rs.rhbroker .ckbroker .tsd-broker .parsnem.ir .nibi.ir .sahandbroker .pk.rhbroker .sahmazin .sahmyar .tsstock.com .oibourse.com .abco.ir .basirbourse.com .nibbourse.com .sahampajoohan .sahmandish.com www www www www www www www.savbroker.com www tadbirgar www. www www www www www www www www www www www www www.omranfars.com www www www www www www.smebbco.com www E-mail [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] info@pim_co.com [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] Brokerage Co. Brokerage Saham Gostaran Sharg Saham Barez Saba Tamin (Kimia sahm) Tamin Saba Razavi Shakhes Saham Simabgoon Sanayeh) Farda Tadbirgaran Tadbirgar Sarmaye Tadbirgar Parsiyan Rahbord Rahnamaye Sarmayegozaran Sarmayeh va Danesh Towse-e Sarmaye Donya Towse-e Pars Nemoudgar Sarmayegozari Melli Iran Towse-e Sahand Towse-e Pars Gostar Khobre Pars Gostar Sahm Azin Sahm Yar Sahm Toseeye Farda Toseeye Omran Fars Ordibeheshte Iraniyan Sahm Ashena Sahm Tahlilgarane Basir Tahlilgarane (Roshd Paydar) Saham Pajoohan Shayan Saham Pouya Andish Sahm Savafarin (Mahak Sahame Tamin Sarmayeh Novin Tamin Web Site Web

http://abmf.ir http://fund-khobregan.com www.fundsite.emofid.com www.fund-golchin.com www.sepahfund.com http://www.sarmayefund.ir http://www.aminsaman.com http://www.gbfund.ir www.iranianfund.com www.mehrfund.ir www.momtazfund.com http://www.sepehr1fund.com www.pishrofund.com http://www.samanfund1.com http://jifs.rhbroker.com http://www.atmellatfund.com/ http://www.karafarinindexfund.com/ index.do http://iranfunds.com http://mutualfund.hafezbourse.com http://saderatbbf.com http://agfund.ir www.samanfund.ir http://atiehnovin.ir www.aminmellat.com http://akfund.com http://fund.parsianbroker.com http://www.toosfund.ir http://www.amin-shahr.com http://www.gostareshfund.ir http://www.gostareshfund.ir http://bmimf.com http://1nikokarifund.com http://www.dayfund.ir www.karafarinbank.com/mutualfunds http://fund1.agribourse.com http://www.dayfund.net/index.do

Beginning (%) Beginning Return From From Return

3.73 2.95 5.50 0.85 2.26 5.84 8.75 0.55 7.16 4.28 3.86 3.81 4.39 0.55 3.18 -4.04 -3.27 -0.19

11.59 99.87 50.28 93.14 57.49 99.20 89.72 76.43 70.67 35.65 31.85 31.86 13.22 12.04 20.90 28.80 288.84 141.94 302.84 270.43 124.05 379.98

(IRR) NAV for per Unit Unit per for NAV - _ _ _

960,584 967,272

1,066,911 1,003,579 3,904,576 2,430,625 4,028,386 3,707,499 2,236,601 1,066,354 1,034,906 1,062,982 1,023,006 1,022,434 1,127,709 1,007,385 1,051,160 1,013,824 1,075,699 1,055,524 1,065,305 2,000,019 1,506,399 1,943,565 1,582,676 1,995,374 1,896,178 1,031,992 1,000,000 1,045,488 1,043,667 1,040,276 1,000,206 1,000,000 4,833,984 1,043,466 Number Of Units Of Number 4,467 7,915 2,605 3,312 9,028 19,114 43,929 12,243 23,540 73,798 18,208 48,454 45,059 63,417 12,573 43,929 92,006 66,393

199,198 152,941 270,289 845,678 160,280 407,577 921,594 631,006 863,437 351,187 237,939 135,126 178,125 565,187 910,474

1,351,035 2,918,669 1,900,850 1,864,942 4,986,925 3,153,746 16,922,036 Fund age (month) age Fund

-

- 8 6 4 9 2 5 1 8 6 5 3 3 3 4 3 9 9 3 _ _ 8 44 44 43 45 45 42 41 34 33 22 45 53 30 23 21 21 43

(Million IRR) (Million NAV 5,210 4,989 17,119 44,253 17,442 19,238 76,999 45,391 52,650 78,446 18,627 51,696 47,364 66,703 60,778 44,253 97,073 69,279 191,346 147,936 271,256 165,875 459,628 991,358 666,041 919,823 682,555 376,580 269,627 948,742 308,825 587,950 901,792 1,381,344 3,012,044 1,987,316 1,946,380 4,987,951 3,831,969 17,607,443

* ** Type index Hybrid Hybrid Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity L Equity L Equity L Equity L Equity L Equity L Equity L Equity L Equity L

Equity S

Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Name Puya Hafez Pishro broker broker Broker Pishtaz Momtaz Dey Bank Karafarin Bank meli Atie Novin Khobregan Atiye Melat Amin Melat Amin Shahr Amin Global Amin Saman Novin saman toos Iraniyan Parsian Bank Sahm Ashena Sahm Mehr Iranian Mehr Yekom Saman Yekom Yekon Iranian Yekon Tajziye Iranian Tajziye Arian (Golchin) Arman Karafarin Gardeshgari Bbnk Shakhesi Karafarin Armaghan Iraniyan ArzeshAfarinan Dey Bank Saderat Broker Yekom Nikukari Agah Nikukari Yekom

Kaspian Mehr Inranian Kaspian Mehr Nahal Sarmaye Iraniyan Yekon Keshsavarzi Bank Yekon

Sepehr Aval saderat Bank Aval Sepehr Gostraesh Fardaye Iranian No. 7 4 6 8 9 1 2 3 5 11 34 35 36 28 29 30 31 32 33 25 26 27 20 21 22 23 24 16 17 18 19 12 13 14 15 10 Mutual Funds Mutual 76

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 77 Web Site Web

http://www.kharazmifund.com http://bmimf.com www.bahmanfund.com http://fund24.ir www.noandishanfund.com www.refahfund.ir http://www.daymf.ir http://www.omidfund.ir/index.do http://www.firoozehfund.com http://www.argfund.com http://www.jahanfund.com http://www.Tadbirfunds.com http://apadanafund.ir www.rahnamafund.ir www.sinamutualfund.com www.aghighfund.com www.tadbirfund.com www.omidsahmfund.com http://tgfs.rhbroker.com/ www.karafarinanfund.com http://www.shmf.ir/index.do http://tsfs.rhbroker.com http://www.tsmutualfund.com www.agahbroker.com http://btfs.rhbroker.com http://pasargadfund.com www.enbankfund.com www.boursebimehfund.com www.smfund.ir www.bifund.ir www.pishgamfund.com www.razavifund.com http://amin.karafarinbrokerage.com www.farabifund.com http://isatisfund.com http://fund.agribourse.com www.maskanfund.com www.parsfunds.com www.novinfund.com http://www.fund.sababroker.com

Beginning (%) Beginning Return From From Return -

0.95 8.25 9.90 7.51 5.42 -3.53 -9.29 -2.08

94.54 93.15 39.63 39.92 38.61 31.13 36.67 31.60 39.73 32.43 28.99 36.98 19.87 22.31 88.91 96.48 49.75 53.25 68.89 40.79 56.88 56.34 31.61 80.88 -11.45 -16.35 119.73 300.97 140.67 107.20 197.18 100.38 131.03

(IRR) NAV for per Unit Unit per for NAV - -

838,034 964,641 909,514 981,167 888,857

4,015,002 2,407,293 2,073,776 2,971,809 2,009,421 2,310,260 1,016,298 1,087,996 1,103,741 1,075,755 1,058,857 1,946,348 1,936,142 1,398,633 1,401,460 1,388,104 1,312,605 1,371,770 1,317,695 1,397,179 1,327,367 1,296,812 1,377,647 1,210,994 1,222,996 1,894,283 1,969,131 1,499,546 1,532,457 1,696,335 1,407,802 1,570,334 1,563,415 1,324,507 2,201,610 Number Of Units Of Number 7,034 5,762 6,807 4,705 6,022 9,332 5,188 5,186 4,748 5,518 4,218 5,444 6,581 5,006 6,756 6,951 5,978 5,474 5,014 9,098 5,846 5,390 11,926 11,221 11,391 11,439 27,802 34,804 14,400 45,309 15,669 28,183 13,720 17,236 10,430 19,920 12,690 13,766 15,190 13,105

555,056

20,748,565 Fund age (month) age Fund

- -

8 9 8 4 9 2 9 7 6 11 40 36 40 29 25 25 10 21 20 17 16 13 20 20 17 17 14 14 13 12 40 30 29 27 22 21 21 21 21 31

(Million IRR) (Million NAV 6,398 5,653 9,454 6,120 5,581 5,491 6,641 7,243 5,893 7,226 9,066 8,389 8,505 9,180 7,139 6,062 8,263 11,771 23,299 33,573 12,800 47,883 23,270 16,386 36,199 10,300 30,663 26,704 33,371 14,478 26,248 16,457 15,964 15,692 13,167 20,643 12,808 23,748 28,852

134,650

1,051,047 22,631,785 Type

Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Equity S Name Sina Pars Saba Agah Isatis Total Novin Refah Firuze Farabi Razavi Aghigh Pishgam Apadana Noandish Bime Dey Rahnama Bourse 24 Kharazmi Boursiran Omid Sahm Arg Human Tosee Farda Tosee Mehr Sharie Mehr Bourse Bime Tejarat Bank Tejarat Omid Iranian Bank Maskan Sanat o Madan Naghshe Jahan Pasargad Bank Amin Karafarin Ganjine Bahman Bank Keshavarzi Tadbirgaran Agah Tadbirgaran Tadbirgaran Farda Tadbirgaran Banke Melli broker Banke Melli Tadbirgar Sarmaye Tadbirgar Tosee Saderat Bank Tosee Eghtesad Novin Bank

Karafarinan Bartar Ayandeh Karafarinan Bartar No. 72 73 74 75 76 67 68 69 70 71 61 62 63 64 65 66 55 56 57 58 59 60 50 51 52 53 54 44 45 46 47 48 49 38 39 40 41 42 43 37 *: Large Fund *: Large **: Small Fund 30. Fars-e-Nou Cement Co. 30. Fars-e-Nou Cement &tiles 5: Ceramic Industries Co. & Ceramic Tile 1. Alvand Co. & Ceramic Tile 2. Sina Co. Takceram 3. Co. 4. Behceram IndustriesTile Co. 5. Isfahan Co. Tile 6. Irana Co. Tile 7. Nilou Co. & Ceramic Tile 8. Saadi Co. Tile 9. Pars Co. & Ceramic Tile 10. Hafez 6: Chemicals &chemical productsexcept pharmaceutical products Co. Industries Investment 1. Petrochemical Co. 2. Chemical Industries Investment 3. Sina Chemical Industries (SCIC) Co Co 4. Khark Petrochemical Co. Company 5. Isfahan Pertrochemical Co. Petrochemical 6. Arak Ind.Co Chemical 7. Fars 8. Niro Chlor Co. Co. Petrochemical 9. Fanavaran Co. Petrochemical 10. Shiraz Co. Petrochemical 11. Abadan Co. 12. Herbicides Production 13. Kaf Co. Co. International Mfg. 14. Pars Co. Corporation 15. Paxan Co. Tolypers 16. Co. 17. Henkel Pakvash 18. Goltash Co. Co. Petrochemical 19. Farabi 20. Iran (Mineral Amlah Salts) Co. Co. Chemical Pamchal 21. Pars 22. Rangin Industrial & Chemical Co. Co. 23. Loabiran 24. Iran Co. Carbon Black Co. Carbon 25. Pars Co. Products Intermediate 26. Fiber acryl27. Poly Iran Co. Co. Petrochemical 28. Pardis Industries Co. 29. Kermanshah Petrochemical Oil & Gas Co. 30. Parsian mining &lignite 7: Coal Co. Lignite Tabas 1. Negin activities &related 8: Computer Iran Co. Processing 1. Data Co. 2. Iran Argham Services3. Informatics Corp. Iran4. Etebari Co. Co. E-commerce 5. Parsian industIRR (Holdings) 9: Diversified Co. 1. Omid Investment Co. 2. Ghadir Investment Co. 3. Bank Melli Iran Investment Co. Investment Fund Pension 4. Civil 10: Electrical machinery &apparatus 1. Motogen Co. Co. Transfo 2. Iran Co. Trans 3. Nirou Co. Switch 4. Pars Co. 5. Alborz Cable Manufacturing6. Iran Cable Co. Ind. Co. Yazd 7. Jooshkab Listed companies Listed 3: Basic metals Co. 1. Sepanta Industrial & Investment Co. 2. Rolling Mill Production & Steel Machinsazi Iran Co. Va 3. Luleh Co. 4. Iran Ferrosilice 5. Sepahan Industrial Co. Group Co. 6. Kaavian Steel Co. & Equipments 7. Sadid Pipe Co. Mobarakeh Steel 8. Esfahan’s Co. 9. Khouzestan Steel Co. Complex 10. Khorasan Steel Corp. 11. Alumtek Group Rolling 12.Alominum Mfg. Industries13. Shahid Bahonar Copper Co. Co. 14. Calcimin 15. Iran Co. Aluminum (NILZ) & Zinc Co. Iranian16.National Lead Madani Mavad Iran Co. 17.Faravari Co. 18.Alomrad Industries19.Iran Copper Co. National 20.Sadid Industrial Group Co. Investment 21.Tukafoolad 22.AmirKabir Kashan steel Co. (previous name: Sepahan Fajre Galvanizing Industries Company) Co. Steel 23.Iran Alloy lime &plaster 4: Cement, Co. 1. Mazandaran Cement Co. 2. Urmia Cement Co. 3. Sepahan Cement Co. Cement 4. Qayen Co. Cement Tehran 5. Co. 6. Shomal Cement Co. 7. Kerman Cement Co. Cement 8. Soufian Co. & Khuzestan Cement 9. Fars Co. Cement 10. Shargh 11. Iran Co. Gatch Co. 12. Khazar Cement Industries13. Gharb Co. Cement Co. 14. Isfahan Cement Co. Cement 15. Ardebil Co. 16. Ilam Cement Co. Cement 17. Bojnourd Co. Cement 18. Hormozgan Co. Cement 19. Fars Co. Cement 20. Darab Co. 21. Neyriz Cement Ind. Co. Cement 22. Dashtestan Co. Cement 23. Kordestan Co. Cement 24. Shahroud Co. Cement 25. Doroud Co. Cement 26. Hegmatan Co. 27. Behbahan Cement Co. 28. Khash Cement Co. 29. Karoon Cement 1: Agriculture 1. Magsal Co. 2: Monetary intermediation Bank 1. Saderat Bank Tejarat 2. Bank 3. Parsian 4. Sina Bank 5. Mellat Bank 6. Karafarin Bank 7. EN Bank Bank 8. Pasargad Bank 9. Ansar Bank 10. Post 78

Tehran Stock Exchange www.tse.ir Annual Report 2011 Tehran Stock Exchange Annual Report 2011 www.tse.ir 79 13. Ghazvin Glass Co. Of Iran Company Wool 14. Glass (SHOGA) Gas15. Shishe va Co. 16. Hamadan Glass Co. Glass Industries.17. Abguineh Co. 9. Lent Tormoz Iran Co. Tormoz 9. Lent Industrial10. Iran Auto-Parts Group 11. Niru Moharreke Industrial Co. 12. Charkheshgar Co. 13. Zar Spring Co. Industries14. Iran Casting Co. Iran Khodro Industrial15. Mehvarsazan Co. 16. Radiator Iran Co. Co. Spring17. Khavar Mfg. Co. 18. Indamin Saipa Shock Absorber Mfg. Co. 19. Iran Carburetter Co. Forging Tractor 20. Iran Co. Foundry Tractor 21. Iran 22. Saipa Azin Co. 23. Electric Co. Khodro Shargh Co. Mfg. Wheel 24. Mashad (MCP) Co. Pars 25. Mehrcam Co. Pouyesh 26. Sazeh 27. Nasir Machine Corporation Engineering (VAMCO) Co. Axle Mfg. Vehicle 28. Co. Development 29. Iran Investment Khodro Co. 30. Rena Industrial Investment Group Co. Investment 31.Iran Credit sugar except products and beverages 19: Food Minoo Industry1. Pars Co. Complex 2. Chin Chin Cultivation 3. Mahram Co. 4. Behnoush Iran Co. 5. Behshahr Industrial Co. 6. Naab IndustrialCo. Dairy Co. 7. Pak Dairy8. Isfahan Pegah Co. Dairy9. East Azarbaijan Pegah Co. 10. Kalber Dairy Co. Dairy11. Khorasan Pegah Co. Co. 12. Glucosan Co. Feed Animal 13. Pars 14. Gorji Co Biscuit Co. 15. Keivan Inc. 16. Shahdiran 17. Mazandaran Noosh Co. Co. Group Morghab 18. Dasht Co. 19. Piazar 20. Margarin Co. 21. Salemin Co. 22. Behshahr Industrial Corp. Development leasing 20: Financial Co. 1. Iran Leasing Co. 2. Rayan Saipa Leasing 3. Industry Co. & Mine Leasing Co. 4. Ghadir Khodro Leasing 21: Other mining and quarrying Co. Sand Preparation 1. Foundry 22: Other products non-metallicmineral 1. Razi Glass Co. Pharmacutical Co. Ceram 2. Pars Co. 3. Ardakan Industerial Ceramics (IREFCO) 4. Iran Refractories Co. Refractories Co. 5. Pars 6. Azar Refractories Co. 7. Azarit Co. 8. Italran Co. Co. Ahwaz 9. Farsit Co. Doroud 10. Farsit Industries11. Iran China Clay Co. Co. Varziran 12. 8. Shahid Ghandi Communication Cable Co. Cable Communication 8. Shahid Ghandi Shahab Lamp Co. 9. Pars 11: Furniture Co. Investment 1. Pardis 12: Industrial contracting (SADRA) 1. Iran Marine Industrial Co. companies 13: Investment 1. Industry Co. and Mine Investment Co. Corporation 2. Mellat Investment Co. 3. Sepah Investment (NICI) Iran of Co. Company Investment 4. National Co. 5. Iran Industrial Investment Development Industry6. Insurance Co. Investment Co. Investment Damavand 7. Atye Co. 8. Buali Investment Co. Investment Co. 9. Behshahr Group Industries Investment Co. 10. Nirou Investment Co. Melli Investment Tosee 11. Co. 12. Saipa Investment Co. 13. Bahman Investment 14: Machinery &equipments Manufacturing Co. Tractor 1. Iran Co. 2. Pumpiran (TTECO) Co. Engineering Technotar 3. Co. Engineering 4. Firouza Co. Machine Mfg. 5. Niroumoharekeh Co. 6. Aabsal Group 7. Sarma Industries Afarin Co. Co. Mfg. 8. Iran Combine Industrial MachineryTractor Co. 9. Iran Industries & Services10. Agricultural Co. Development (HEPCO) Co. Production 11. Heavy Equipment Co. Investment Tousheh 12. Pars Mfg.Co Appliance 13. Pars Khazar Industrial Co. 14. Pars Co. Industrial15. Azmayesh Factories 16. Butane Industrial Group &optical instruments precision 15: Medical, (SKI) Iran Co. 1. Kontorsazi mining 16: Metal ores 1. Gol-E-Gohar Co. Iron Ore Mining2. Bafgh Co. Mineral Co. 3. Damavand 4. Iran Zinc Mines Co. Development 5. Chadormalu Mineral & Ind. Co. 6. Maaden Manganese Iran Co. 7. Bama Co. Co. 8. Mines Investment & Metals Development machinary & metal products except 17: Fabricated equipments Co. 1. Jaam Darou Iran Oxijene Co. 2. Joosh va Co. Corporation 3. Suliran 4. Mashin Co. Sazi Arak 5. Azarab Industries Co. Co. 6. Lamiran Industries Co. 7. Iran Pack Industrial8. Ama Co. parts and auto vehicles 18: Motor 1. Iran Khodro Diesel Co. 2. Iran Khodro Industrial Co. Group Co. 3. Bahman Group 4. Saipa Diesel Co. 5. Saipa Co. Co. 6. Zamyad Khodro Co. 7. Pars 8. Motorsazan Co. 2. Barez Industrial2. Barez Group Co. & Rubber Tire Yasa 3. Iran Industrial Complex Tire 4. Artavil 5. Sahand Ind. Co. Rubber Manufacturing6. Shahin Plastic Co. Manufacturing7. Plastiran Co. 8. Plascokar Saipa Co. Co. Tehran 9. Derakhshan Co. 10. Gazlouleh Mfg. 32: Sugar &by-products 1. Isfahan Sugar Co. 2. Shahd Sugar Co. 3. Ghazvin Co. Sugar Sugar Co. 4. Neyshabur Industry5. Shirin Co. Khorasan agro. Co. 6. Sabet Khorasan & Mfg. Ind. 7. Naghshe Jahan Sugar Co. 8. Marvdasht Sugar Co. Sugar Co. 9. Lorestan Sugar Co. 10. Hegmatan Suger Co. 11. Piranshahr Jaam Sugar Co. Torbate 12. Sugar Co. 13. Shahroud of leather and dressing Tanning 33: 1. Melli Industrial Group &engineering services Technical 34: Managements Co.(MAPNA) Projects Plant 1. Iran Power Co. Control & Corrosion Technical Techinco 2. Textiles 35: Co. Woolen Tous 1. 2. IranMerinos Co. Co. Textile 3. Borujerd and storage Transportation 36: Co. Transport 1. Petrochemical Co. Transportation Tuka 2. 3. Islamic Republic of Iran Shipping Lines Co. Middle East Co. Tidewater 4. Co. Transportation 5. KhalijFars products &wood Wood 37: Co) Mfg. Board Iran (Royal Fibre Towlide 1. 2. Bahman Neopan Co. compulsory social & pension funding except 38: Insurance security 1. Alborz Co. Insurance Co. Insurance 2. Asia Co. 3. Dana Insurance surveying services except 39: Oil &gas extraction and related 1. North Drilling Co. 18. Saipa Glass Co. 23: Other transport equipment Co. 1. Iran Bicycle Mfg. & Motorcycle &paper products 24: Paper Ind. Paper 1. Kaveh 2. Iran Carton INC Co. Packing 3. Pars 4. Mashad Carton Co. &medicinal products25:Pharmaceutical Co. 1. Jaber Ebne Hayyan Pharmaceutical Co. Pharmaceutical 2. Aburaihan Co. 3. Chimidaro 4. Razak Laboratories Co. Pharmaceutical 5. Loghman Company Pharmaceutical 6. Osvah Co. Pakhsh 7. Darou 8. Iran Co. Daru Co. 9. Daroupakhsh Mfg. Pharmaceutical Co. Temad 10. Chem. Co. Pharma. Pakhsh 11. Darou Co. 12. Sobhan Pharmaceutical Co. Pharmaceutical 13. Rouz Darou Co. Pharmaceutical 14. Cosar Razak15.Damloran Co. Pharmaceutical Sheme Co. Tehran 16. Co. Darou 17. Pars Co Pharmaceutical 18. Farabi Co. Company Pharmaceutical 19.Amin Co. Laboratories 20. Sina Darou Co. 21. Alborz Darou Laboratory Pharma Abidi Co. 22. Dr. Co. Pharmaceutical Darou Tehran 23. Co. & Pharmaceutical 24. Iranian Parenteral Co. 25. Exir Pharmaceutical Co. Pharmaceutical 26. Zahravi Co. 27. Alborz Investment and telecommunications 26: Post Co. Telecommunications 1. Iran &reproduction of media printing 27: Publishing, Press Inc. 1. Offset TV equipment &communication 28: Radio, Manufacturing Co. Telecommunication 1. Iranian Co. Electric Mfg. 2. Pars Co Industrial Mfg. 3. Payam and construction 29: Real estate Co. 1.Iran Construction Investment 2.Isfahan Construction Co. 3. Isfahan Saman Gostar Co. Co. 4. Housing Investment Reconstruction Co & Development 5. Fars Complex Welfare and Tourism Iran 6. Abadgarane & Construction Co. Renovation Tehran 7. Co. 8. International Construction Development 9. Sakht Co. Ajand Co. 10. Shahed Investment Co. 11. Azarbayjan Investment Development Co. Investment Toosgostar 12. products30: Refined petroleum &nuclear fuel Oil Co. 1. Pars Oil Co. 2. Behran Co. 3. Esfahan Oil Refining Zangan Co. Niroye Tajhiz 4. 5. Oil Industry Co. Investment Co. Oil Refining Tabriz 6. 31: Rubber &plastic products Co. Mfg. Tire 1. Iran 80

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Gun-metal relief discovered in Lorestan prov- ince, among the Achaemedian dynasty’s (550-330 BC)Antiquities. Featuring four men, hand in hands, indicating unity and cooperation; standing inside circles of 2011 globe,which is it, according to Iranian ancient myths, put on the back of two cows, ANNUAL symbols of intelligence and prosperity. Tehran Stock Exchange Implementation: CAPITAL&MARKET REPORT