Tehran Stock Exchange Annual Report 2010

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Mission Statement

To develop a fair, efficient and transparent market equipped with diversified instruments and easy access in order to create added value for the stakeholders.

Vision

To be the region's leading Exchange and country's economic growth driver.

Goals

1. To increase the capital market's share in financing the economic productive activities. 2. To apply the effective rules and procedures to protect the market's integrity and shareholders' equity. 3. To expand the market with the use of updated and efficient technology and processes. 4. To promote financial literacy and develop investing and shareholding culture in Iran. 5. To extend and facilitate the market access through information technology. 6. To create value for shareholders and comply with transparency and accountability principles, with cooperation and interaction of stakeholders. 7. To develop constantly intellectual assets and human resources of the company.

TSE at a Glance

Trading

Days Saturday to Wednesday

Hours 9:00 to 12:00

System Automated ‐ order driven

Mechanisms Opening auction ‐ continuous auction

Market maker Arbitrary

Instruments Shares & Rights, Participation Certificates, Stock futures

Currency Local (Rial)

Real time information Bid/ask, Prices, Indices, Companies' announcements, Trading volume and value

Clearing and Settlement

Central Depository Central Securities Depository of Iran (CSDI)

Period T+3

Settlement Book entry

Clearing Netting

Margin/lending No

Taxes

Dividend No tax

Capital gain No tax

Transfers (paid by seller only on shares) %0.5

Trading Commissions

Buyer (%) Seller (%)

SEO 0.04 0.06

TSE 0.032 0.048

Broker 0.4 0.4

Clearing Fee 0.028% 0.042%

Total 0.5 1.05

Structure and Regulations

Legal Demutualized (not listed)

Regulations Self‐regulated under SEO supervision

Foreign investment Yes (according to foreign investment by‐law)

Minimum Listing Requirements

Main market Secondary market

Main board Secondary board

Paid‐in capital (Billion Rials) 1000 500 200

Years of Business Activity 3 3 3

Free float ratio (%) 20 15 10

# of shareholders 1000 750 250 profit‐making 3 2 1 operating periods ended the listing date

Equity to total assets ratio (%) 30 20 15

Content:

CEO's message 6

Economic conditions 7

Introduction 9

TSE Performance 11

Market Achievement 29

Future Outlook 30

Corporate Governance 31

Financial Statement 34

Brokers 61

Mutual Funds 65

Issuers 66

CEO Message

In 2010, in the continuation of 2009 growth, Iranian capital market showed a considerable boom. In this year all indices had appositive trends as compared to the previous years. In this year, market capitalization, value traded and the number of trades reached 89,7491,217 million Rials, 198,146,067 million Rials and 3.4 million times respectively. Goals and strategies decided by the board of directors and executives in the line of soundness, transparency and liquidity of the market as well as promotion of financial literacy and development of investment culture paved the way of growth and development of the market, attracted the general confidence of the investors, and created value added for the stakeholders.

To increase market liquidity, in 2010, TSE has taken actions to obtain fair and liquid markets; enacted, approved and made operative the new trading rules; defined a new method for block trading; increased daily price fluctuation for shares and rights; executed opening auction mechanism for halted shares; defined a new index as 30 large cap companies; launched future market; and developed regulations for online access of investors to the market.

In order to attract new companies to be listed, TSE has made some efforts in marketing, admitting, listing and offering of companies subject to article 44 of the Constitution (privatization), and more tax exemption for listed companies, as well as more transparency of prospectuses.

Also, some efforts have been made for development of market awareness and promotion of financial literacy through targeted training courses, books, web sites and TV programs in order to help people to make informed participation in the capital markets.

In order to develop the capital market and facilitate access to it through information technology, some actions have been taken such as developing DMA, improving the website, and developing a trading system for futures market.

The main plans of TSE in 2010-2011 are to enhance mechanisms of market surveillance and provide monitoring software, to develop and promote derivatives market, to launch fixed income securities market, to develop financial system, and to use legal opportunities for listing new companies.

Economy

Indicators Description

Land area 1.6 million square kilometers

population 74.7 million

Active Population (2010, Q2) 24.2 million

Capital City Tehran

life expectation at birth 72

Unemployment Rate (2010, Q2) 14.6 percent

GDP(PPP) 8,473,058 million Rials

GDP real growth rate 3%

GDP per capita (PPP) 112.5 million Rials

Inflation rate (consumer prices) 15.8

Exports 1,055,192 billion Rials

Exports commodities Petroleum, chemical and petrochemical products, fruits and nuts, carpets

import 680,709 billion Rials

import commodities Industrial raw material and intermediate goods, capital goods, foodstuff and other customer goods, technical services

Current accounts balance (percent of GDP) 4.2

M2/GDP 70%

MC/GDP 34

Sep 2010: 1$=10350 Rials Sources: www.CBI.ir, www.Worldbank.org, www.IMF.org

Events

Annual General Meeting Annual general meeting of TSE was held. 20 Apr Financial statements were approved and dividend per share was decided as 200 Rials. Auction Mechanism for Auction mechanism for symbols with no price limit 8 May Unlimited Price Symbols was performed. Road Show in Dubai A road show was held for more introduction of 19 June investment opportunities in companies listed in TSE to foreign investors. Online Trading Online trading was initially provided for direct access 4 Jul of all shareholders. Changes in Price Limit In order to increase liquidity and the capital market 8 Jul depth, price limit of share and stock right increased from 3.5% to 4% and 7% to 8% respectively. Future Contracts Market The future contracts market was opened. 25 Jul Opening IPO of Dana Insurance 5% shares of Dana Insurance, as equivalent to 17 Aug 5,273,750 shares, were offered initially. Calculation of 30 Large 30 large cap index was issued formally for the first 23 Aug Cap Index time. Extraordinary General The extraordinary general meeting was held in order Meeting for 100% capital increase from 150 billion IRR to 7 Oct 300 billion IRR from retained earnings and prudential reserve. Extraordinary General The extraordinary general meeting was held in order 7 Oct Meeting for appointment of the board of directors' members. IPO of Postbank 5% shares of Postbank, as equivalent to 28,057,150 2 Nov shares, were offered initially. IPO of Tabriz Oil 5% shares of Tabriz Oil Refining, as equivalent to 13 Nov Refining 97,105,275 shares which belong to NIOPDC was offered initially. IPO of Parsian Insurance 5% shares of Parsian Insurance Co., as equivalent to 14 Nov 55,000,000 shares, were offered initially. Appointment of TSE as TSE was appointed for the first time as the chairman 13 Dec the Chairman of FEAS of FEAS working committee. Working Committee Approval of the New The New Rule of Securities Trading approved on 22 Dec Trading Rule 2010,12,4 became operative from 2010,12,22 on. 9 IPO of Iran Alloy Steel 5% shares of Iran Alloy Steel Co., as equivalent to Mar.2011 65,150,000 shares, were offered initially.

Market Performance

The following table shows the general performance of Securities market in 2010-2011. Total returns on investment reached 68.2% in 2010, which has been one of the highest real rates of returns among other WFE members and investment in the economy of Iran, as compared to returns on other investment opportunities. Also in the period, TSE showed the most capitalization and value traded.

In 2010, the total value traded by TSE with 16.7% increase reached 198,146 billion Rials, the average daily value traded of TSE had an increase of 14.8%, the number of transaction with a growth of 65% reached 2732 thousand times, and the market capitalization of TSE amounted as 897,491 billion Rials indicated 46.5% growth.

In 2010, TEDPIX (the total return index of TSE) increased from 45598 at the beginning of the year to 767.3 at the end of the year, which indicates a 68.2% average return on investments in TSE. Other indices in TSE also showed a considerable growth. This indicates an even price increase in all market sectors. Free float share index with the base figure of 10000 had nearly 72% growth in 2010. Price increase and dividend account for respectively 42% and 26.2% of total index increase in 2010.

Market capitalization of TSE in 2010, with 46.5% increase, reached 86.69 billion dollars at least.

As market capitalization increased, market capitalization to GDP ratio also increased up to 22.8%.

Among listed industries, monetary intermediation, basic metals, Post and Telecommunication Company and Motor Vehicles and auto Parts holdings account for 18%, 15%, 13% and 8% of market capitalization respectively.

The share value traded in TSE during 244 business days in 2010 reached 19,139 million US Dollars, with 10.2% increase as compared to the previous year. It is a new record for TSE.

In 2010, among listed industries, Motor Vehicles And Auto Parts, Monetary intermediations(banks) and Basic Metals account for the most value traded as 21%, 15% and 13% of total value respectively, while, in 2009, Telecommunication , Monetary intermediations(banks) and pharmaceuticals with respectively 49%, 20% and 6% of total value traded accounted for the first 3 ranks in the market.

Market Indicators

2010 2009 Change (%) TEDPIX 76713 45598 68.2 Market capitalization(Million Rial) Rial 897491217 591474902 51.7 Volume traded(million) 96,551 79,950 20.8 Value traded(Million Rial ) Rial 198146067 169768078 16.7 Average daily value traded( Million Rial) Rial 812740 707667 14.8 PER 6.33 5.65 12.0 turnover Velocity 25.99 7.6 - Listed companies 341 337 1.2 MC/GDP(%) 22.8 17.6 29.5

Main Indices of TSE in 2010

TEDPIX TEPIX Free Float 30 large Main Secondary Financial Industry adjusted cap com.* market market At the end of the 18,855.2 13446 23,832.5 1135 15,681.2 25,550.8 54,340.2 14,222.9 year At the beginning 11,208 9,466 13,857 1000 9,219 15,993 29,504 8,645 of the year Changes 7,647 3,980 9,976 135 6,462 9,558 24,836 5,578

Percent 68.2 42.0 72.0 13.5 70.1 59.8 84.2 64.5

*Calculated from 22.7.2010

Monthly return of TEDPIX

Market capitalization in 2010 (Billion Rial)

Share Trades

2010 2009 Changes %

Volume Value (million Volume Value (million Volume value (million) Rial) (million) Rial) Total 96,551 198,146,067 79,965 169,768,078 18.8 16.7

Daily average 395.7 812074 333 707667 18.8 14.8 trades

Value Traded of different industries in 2010

Business Days and Share Trades in 2010

Month Trading Value traded Transaction (thousand) Market Cap days (million Rials) (million Rials) capitalization (m) Jan 22 6636273 188 632951361

Feb 18 10725708 144 648480861

Mar 18 5393913 174 698868912

Apr 20 13893726 331 745964709

May 22 28688163 261 706985664

Jun 20 23335662 188 705225654

Jul 19 11450418 219 741316212

Aug 23 21979419 301 836170398

Sep 20 26917800 293 893888373

Oct 21 17020332 249 849111648

Nov 21 15798678 246 869061879

Dec 20 16316328 214 897491217

Derivatives

On July 25 2010, Tehran Stock Exchange (TSE) launched derivatives market with trading single stock futures. In the first step, 8 futures contracts on two listed banks stock were offered and then it was expanded to 12 underlying stocks by end 2011. The futures contracts are denominated in Iranian Rial and settled physically. Their maturity dates is of two-month cycles.

By the end of 2010, 12 companies were listed in futures market. The companies are:

1. Parsian Bank 2. Karafarin Bank 3. Chadormalu Mineral & Ind. Co. 4. Saipa Co. 5. Esfahan's Mobarakeh Steel Co. 6. Iran National Copper Industries Co. 7. Ghadir Investment Co. 8. Mines & Metals Development Investment Co. 9. Iran Telecommunications Co. 10. Mellat Bank 11. Khark Petrochemical Co. 12. Sobhan Pharmaceutical Co.

Underlying stocks are common stocks listed on Tehran Stock Exchange (TSE). Each single stock future is assigned a ticker symbol (Underlying Stock -Maturity Year-Maturity Month).

Trading hours are 09:00 am to 12:30 pm of Tehran time, Saturday through Wednesday of the regular business days of TSE. Contract size is the number of shares that makes the average value of the contract equal to 20,000,000-30,000,000 Rls. Delivery months are 6 two-month cycles that the bimonthly events start on 22 March. Daily price limit is 4% of previous day’s settlement price.

Initial margin and maintenance margin are 20% of contract value and 60 % of initial margin respectively.

Market-wide position limit is no. of free float share divided by contract size divided by no. of contracts that simultaneously is traded. Member position limit is utmost 20 % of market-wide position limit based on broker's collaterals. 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.

Final Settlement is physical. When no underlying stock is owned by the seller at the end of the last trading day, the penalty of this is 1% of the contract value based on the last daily settlement price in the trading period of the contract, which is transferred to the buyer. If the closing price of the underlying stock in the spot market at the end of the trading session of the last trading day is more than the last daily settlement price in the trading period of the contract, the difference is transferred from the seller account into the buyer account. Penalty

of non-payment of the contract value by the buyer based on the last settlement price until 12 o'clock of the first day of the delivery period is 1% of the contract value which is received from the buyer account into the seller account. If the closing price of the underlying stock in the spot market at the end of the trading session of the last trading day is less than the last daily settlement price in the trading period of the contract, the difference is transferred from the buyer account into the seller account.

Listed Companies in 2010

Company Date of IPO Capital registered Market Capitalization Increase

(million Rial) (million Rial)

Dana Insurance 17 Aug 105,475 2752897 Post Bank 2 Nov 561143 1290861 Tabriz Refinery 13 Nov 1,942,105 2722831 Parsian Insurance 14 Nov 1,100,000 3635500 Total 10402089

Brokerages firms in 2009

Description Number Brokerage Companies 87

Total trading stations 554

Other Information

Top 10 companies by Market Capitalization at year-end 2010

Name Market Cap (Rial % of Total MC millions)

1 Iran Tele. Co. 120555509 13.43 2 National Copper Ind.Co. 54387415 6.06 3 Isfahan Mobarakeh Steel Co. 40511289 4.51 4 Parsian Bank 36410466 4.06 5 Mellat Bank 29199601 3.25 6 Chadurmalu 28739928 3.20 7 MAPNA 28135313 3.13 8 Saipa Co. 25823488 2.88 9 Tejarat Bank 24192890 2.70 10 Saderat Bank 23456792 2.61 Total 411412691 45.83

Top 10 companies by Value Trades at year-end 2010

Turnover Value % of Total Name (USD millions) Turnover

1 Saipa Co. 24113793 12.17 2 Shiraz Petrochemical Co. 11976040 6.04 3 Iran Tele. Co. 10979874 5.54 4 National Copper Ind.Co. 9926974.1 5.01 5 Isfahan Mobarakeh Steel Co. 9556440.2 4.82 6 MAPNA 9388411 4.74 7 Tejarat Bank 6940030 3.50 8 Saderat Bank 6195649.3 3.13 9 Parsian Bank 5646629.7 2.85 10 Iran Khodro Industrial Group Co. 5266674.6 2.66 Total 99990516 50.4

Top 10 companies by Volume Trades at year-end 2010

Name Turnover % of Total Volume (million) Turnover 1 IranTelecom .co. 11,262 11.7 2 Saderat bank 8,013 8.3 3 Saipa co. 7,456 7.7 4 Isfahan Mobarakeh Steel 7,337 7.6 5 Mellat Bank 6,028 6.2 6 Tejarat Bank. 5,807 6.0 7 MAPNA 4,787 5.0 8 Iran Khodro Industrial Group Co. 2,571 2.7 9 National Copper Ind.Co. 2,562 2.7 10 Bahman group 2,476 2.6 Total 96551 60.4

Market Capitalization / Sectors

Market Cap. (billion Rials)

Industrial Group

Dec‐10 Dec‐09 Change % of Total (%) MC 1 Monetary intermediation 15,162.00 8,276.20 83.2 17.49 2 Basic Metals 13,140.41 9,109.50 44.25 15.16 3 Post and telecommunications 11,644.54 7,546.20 54.31 13.43

4 Motor Vehicles And Auto Parts 6,830.17 3,584.10 90.57 7.88 5 Metal Ores Mining 6,415.76 4,048.30 58.48 7.4 6 Diversified Industrials (Holdings) 5,725.06 4,198.20 36.37 6.6 7 Chemicals & By-products 3,827.96 2,831.00 35.22 4.42 8 Cement, Lime & plaster 3,349.46 3,428.80 -2.31 3.86 9 Refined Petroleum Products & Nuclear Fuel 3,007.99 2,636.90 14.07 3.47 10 Technical & Engineering Services 2,730.10 2,287.10 19.37 3.15 11 Pharmaceuticals 2,601.50 1,656.60 57.04 3 12 Investment Companies 2,195.98 1,570.10 39.86 2.53 13 Transportation and storage 1,683.24 1,680.90 0.14 1.94 14 Real Estate And Construction 1,244.71 1,248.10 -0.27 1.44 15 Food Products and Beverages except sugar 1,095.66 800.2 36.92 1.26 16 Insurance & Pension funding Except Compulsory Social 951.31 260.5 265.18 1.1 Security 17 Computer & Related Activities 811.58 370.7 118.93 0.94 18 Electric Machinery & Apparatus 662.67 472.9 40.13 0.76 19 Oil and Gas Extraction and Related Services Except 585.61 581.5 0.71 0.68 Surveying 20 Machinery & Equipment 498.46 391.7 27.26 0.57 21 Financial leasing 413.8 314.2 31.7 0.48 22 Industrial contracting 400.46 244 64.12 0.46 23 Rubber & Plastic Products 297.09 162.8 82.48 0.34 24 Fabricated Metal Products except Machinary & Equipments 288.01 203 41.88 0.33

25 Other Non-metallic Mineral Products 226.28 167.8 34.85 0.26 26 Tanning and Dressing of Leather 221.72 46.5 376.82 0.26 27 Ceramic & Tiles 214.2 182.4 17.43 0.25 28 Sugar & Byproducts 184.51 114.6 61 0.21 29 Medical, Precision & Optical Instruments 74.12 91.8 -19.26 0.09

30 Radio, TV & Communication Equipment 72.59 41 77.06 0.08 31 Textiles 31.88 25.2 26.5 0.04 32 Paper & By-products 29.24 30.6 -4.44 0.03 33 Agriculture 18.29 9.7 88.55 0.02 34 Coal & Lignite Mining 17.03 9.9 72.05 0.02 35 Publishing, Printing & Reproduction of Media 16.29 11.4 42.89 0.02 36 Wood & By-products 11.49 5.3 116.81 0.01

37 Other Mining 8.62 6.9 24.92 0.01 Total 86,689.81 58,662.20 47.78 100

P/E Ratio By sectors * Industry No of Listed P/E Companies Agriculture 1 8.58

Basic Metals 23 6.25

Cement, Lime & Plaster 30 4.49

Ceramic & Tiles 10 4.39

Chemicals & Chemicals -products 27 6.99

Coal & Lignite Mining 1 6.92

Computer & Related Activities 3 9.21

Diversified Industrials (Holdings) 4 5.21

Electrical Machinery & Apparatus 11 4.5

Fabricated Metal Products except Machinery & Equipments 9 14.95

Financial Leasing 4 5.35

Food Products and Beverages except sugar 22 6.03

Industrial Contracting 1 172.75

Insurance & Pension funding Except Compulsory Social 4 9.39 Security

Furniture 1 3.9

Investment Companies 13 5.83

Machinery & Equipment 16 7.53

Medical, Precision & Optical Instruments 1 4.03

Metal Ores Mining 8 9.65

Monetary Intermediation 8 6.77

Motor Vehicles And Auto Parts 31 4.64

Oil & Gas Extraction and related services except Surveying 1 7.63

Other Mining 1 7

Other Non-metallic Mineral Products 20 6.28

Paper & Paper -products 4 6.61

Pharmaceuticals & Medicinal Products 27 6.75

Post and telecommunications 1 6.18

Publishing, Printing & Reproduction of Media 1 8.83

Radio, TV & Communication Equipment 4 7.28

Real Estate And Construction 12 4.06

Refined Petroleum Products & Nuclear Fuel 6 7.01

Rubber & Plastic Products 10 5.9

Sugar & By-products 14 6.72

Tanning and Dressing of Leather 1 38.67

Technical & Engineering Services 2 6.82

Textiles 3 5.67

Transportation and Storage 4 17.52

Wood & By-products 2 8.16

Total/Weighted Average 341 6.33

* TSE uses the International Standard for Industrial Classification (ISIC) system.

Sectors Indices December December Change (%) 2010 2009 1 Radio, TV & Communication Equipment 724.2 394.4 83.62 2 Furniture 342.3 140.2 144.15 3 Textiles 207.9 158.9 30.84 4 Computer & Related Activities 935.4 336 178.39 5 Motor Vehicles And Auto Parts 6,562.1 3,278.70 100.14 6 Coal & Lignite Mining 301.5 156.7 92.41 7 Industrial Contracting 1,646.6 968.1 70.09 Fabricated Metal Products except Machinary & 8 4,590.6 2,422.00 89.54 Equipments 9 Chemicals & By-products 746.8 410.4 81.97 10 Pharmaceuticals 1,144.1 621.2 84.18 11 Technical & Engineering Services 182.7 102.2 78.77 12 Basic Metals 9,954.1 5,751.40 73.07 13 Investment Companies 410.4 273.7 49.95 14 Metal Ores Mining 3,519.6 1,922.60 83.06 15 Refined Petroleum Products & Nuclear Fuel 33,201.9 26,063.50 27.39 16 Diversified Industrials (Holdings) 1,138.3 691 64.73 17 Electrical Machinery & Apparatus 65,314.4 38,907.60 67.87 18 Financial Leasing 793.9 489.4 62.22 19 Food Products and Beverages except sugar 631.8 379.6 66.44 20 Monetary intermediation 273.7 141.3 93.70 21 Wood & By-products 11,967.0 4,791.90 149.73

22 Tanning and Dressing of Leather 1,047.1 211.8 394.38 23 Other Mining 1,139.6 795.6 43.24 24 Sugar & Byproducts 813.9 377 115.89 25 Rubber & Plastic Products 3,163.8 1,825.40 73.32 26 Cement, Lime & Plaster 195.3 159.9 22.14 27 Ceramic & Tiles 462.6 299.3 54.56 28 Transportation and Storage 897.3 1,287.80 -30.32 29 Other Non-metallic Mineral Products 244.8 177.2 38.15 30 Post and telecommunications 244.3 131.8 85.36 Oil and Gas Extraction and Related Services 31 181.4 163.5 10.95 Except Surveying 32 Machinery & Equipment 2,915.8 2,140.80 36.20 33 Medical, Precision & Optical Instruments 724.2 955.5 -24.21 34 Paper & By-products 1,383.8 1,375.00 0.64 Insurance & Pension Funding Except Compulsory 35 2,103.8 1,186.50 77.31 Social Security 36 Agriculture 801.4 340.7 135.22 37 Publishing, Printing & Reproduction of Media 8,223.2 4,818.50 70.66 38 Real Estate And Construction 272.7 278.5 -2.08 39 Industrial Contracting 968.10 968.10 206.36

Market Achievements

TSE has taken numerous actions in the line of its development plans for increase of market liquidity and transparency, promotion of market soundness and public confidence, enhancement of market access through updated technology, market awareness programs, interaction with the government and authorities, diagnosis of listed issuers problems and deficiencies, completion of regulations and development of required rules and procedures, and introduction of new financial instruments. Some the above mentioned actions are:

• To develop market surveillance mechanisms and to apply ownership control software in the companies subject to article 44 of Constitution, with cooperation of SEO. • To enact regulations and develop trading procedures in order to facilitate online trading and provide direct access to the market. • To study on the possibility of and provide relevant procedures for listing TSE's shares. • To study on the establishment of futures market, provide required regulations with cooperation of SEO, and develop trading system. • To develop trading rules for option contracts, and decide on pricing model and margin determination method of options. • To study and develop new formats for financial reporting of members and participate in planning an integrate system of financial reporting by members. • To study and plan marketing system for companies with potential for being listed in TSE. • To develop guidelines and indices of corporate governance, internal controls and investor relations. • To update the strategic plan of TSE and plan and establish the system of monitoring the plans in order to obtain the qualitative and quantitative goals of the company. • To perform some road shows in other countries for more introductions of investment opportunities to foreign investors.

Future Outlook (2011)

Operating plans of 2011 have been developed in the line of the strategic plan and in the way to meet the most important needs of TSE and capital market. The main goals and objectives of TSE are:

1. To develop and strengthen the derivatives market through introduction of option contracts and future contracts on new underlying assets, upgrading the trading system and enhancing market access. 2. To launch fixed income securities market (participation certificate and Sukuk) with the aim to facilitate financing through capital market and create new investment opportunities. 3. To develop financing system through identification and attraction of new issuers, increase interactions with listed issuers and plan relevant financial services to meet market participants' needs. 4. To develop market awareness, promote reporting system, and increase the number of active shareholders. 5. To increase trading volume and improve liquidity through revising and updating trading rules and introducing new trading mechanisms. 6. To promote market soundness and transparency through promotion of market surveillance mechanisms and increase of using mechanized and efficient monitoring systems. 7. To enhance international cooperation in order to share information and experiences, introduce common products, and promote technical knowledge of experts.

Corporate Governance

The Board of Directors

Efficient policies of corporate governance are critical for true and sound performance of the capital market and total economy, and attraction and maintain of public confidence. Inefficient corporate governance may decrease the market confidence that in turn results in outflow of resources or liquidity crisis and price fall in TSE. In fact, TSE is accountable to not only shareholders but also investors and its other members. TSE has developed its corporate governance regulations and determined some expectations from the board of directors and its committees, in the line of meeting the highest ethic standards, providing full and transparent information, and full compliance with governing laws and regulations.

The board of directors appointed by shareholders in 2010, through holding 21 meeting, has made efforts to create efficient governance in the line of shareholder’s interests and balance in the interests of different stakeholders including customers, employees, investors and the society. The board of directors has 3 specialized committees and 2 sub-committees.

Members of the Board of Directors

Member of the Board of Legal Person Position Directors

Tadbir Investment co. Hamidreza Rafiee Keshtli Chairman

Securities and Exchange Khosro poormemar Vice Chairman Brokers Association Social Security Hossein Salimi Non-executive member Investment Co.

Bank-e- Mellat Mohammad Ebrahim Non-executive member Brokerage Co. Poorzarandi

Iran Melli Investment Amir Hossein Erza Non-executive member Brokerage Co.

Hafez Brokerage Co. Mohammad Reza Rahbar Non-executive member

Bank Tejarat Seyed Mojtaba Fahim Non-executive member Hashemi

Securities and Exchange Ali Hosseini SEO representative Organization

Hasan Ghalibaf Asl CEO

Auditing Committee

The committee is responsible for monitoring internal and external auditors, suggesting external auditors to the board of directors or shareholders for appointment, deciding on the external auditors’ fees and removal of them, reviewing audit areas and times, receiving audit report, ensuring timely and true improving actions taken by the management against deficiencies, defects, and any noncompliance. The audit committee consists 5 members, at least 2 of whom are non-executive members of the board of directors and the others are external individuals appointed by the board of directors. The audit committee members and chairman are appointed by the board of directors. The audit committee has the following authorities:

• To suggest external auditor for appointment and decide on its fees. The audit firm reports to the committee before reporting to the general annual meeting. • To monitor and assess the external auditor performance. • To settle any disagreements of management with external auditors in relation to financial reports. • To approve initially all audit and non-audit services rendered by the audit firm. • To use external counsels, accountants and other experts if required. • To inquire employees or external individuals in order to get required information. • To hold meetings with managers, external auditors or external counsels if required. • To establish internal control system in order to ensure that all operation of the company are in the line of its goals and in the framework of laws, regulations and the article of association. • To ensure financial reports integrity and transparency.

Risk Management Committee

The committee is responsible for monitoring the management performance in relation to strategic policies, and market, liquidity, operation and reputation risks management. The committee assesses and controls risk management and reports the board of directors. The committee has the following responsibilities:

• To oversee development and execution of short term strategic plans of TSE. • To oversee effectiveness of ensuring the compliance with rules and regulations. • To review policies and procedures of risk management. • To review risk management framework. • To report significant risk exposures and offenses. • To oversee leading of required resources to risky areas. • To assess compliance with other policies and guidelines. • To assess economy condition and effectiveness of resources application. • To review the process of detecting significant risks. • To review management information adequacy and internal control structures. • To oversee efficiency of risk management related to corporate governance. • To oversee required controls on frauds and conflict of interests. • To review changes in risk management framework.

• To oversee effectiveness of risk management and ensure that risk management is considered in budget planning.

Remuneration Committee

The committee oversees compensations related to CEO and his deputies. It consists non- executive members of the board of directors, chief executive officer and one of his deputies. The committee has the following responsibilities:

• To execute all the Board's responsibilities related to salaries and wages of CEO. • To provide a report of bonuses related to the board of directors and CEO in the annual report, according to rules and regulations. • To monitor compensation methods and incentive plans, assess CEO's performance in the line of the company's goals and decide on his compensations based on the assessment.

Financial Statements

For the Fiscal Year Ended March 20, 2011

Report of Independent Auditor

To the General Assembly

Tehran Stock Exchange Corporation

1. We have audited the balance sheet of Tehran Stock Exchange Corporation as of 1389 and the income and cash flow statements of the Company for the fiscal year ended together with notes 1-32 thereof. These statements have prepared by board of directors. The responsibility of financial statements is with the company's Board of Directors and our responsibility is to express an opinion on the financial statements based on our audit, and also to report on any noncompliance with the legal requirements set out in the Commercial Code as amended and the company's provisions of the Articles of Incorporation.

2. We conducted our audit in accordance with the Auditing Standard of financial statements. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements. The audit includes examining, on a test basis, evidences supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles and procedures used and significant estimates made by the Board as well as evaluating the overall fairness of financial statement presentation. We believe our audit provides a reasonable basis for our opinion.

3. In our opinion, the financial statements referred to above present fairly in all material aspects in conformity with Iranian Accounting Standards.

4. Corresponding amounts included in financial statements have been examined by other independent auditors. They issued an unqualified report on 19/1/1389.

5. The transaction included in the explanatory note 31 to the financial statements has been examined as all transactions subject to the Article 129 of the Commercial Code as amended, and related party transactions, that are conducted and reported to us by the Company's Board of Directors. We have not observed any evidences indicating that the transaction has not been conducted on the appropriate trade conditions and in normal course of the company's activities.

6. We have examined the report of the Board of Directors to the Annual General Meeting of the company in respect of the Company's general status and activities. Based on our examinations, we have not observed any material cases of non-conformity of the provided information with books and records submitted to us by the Board of Directors.

1 May 2011

Dayarayan Audit and Financial Services Firm

Tehran Stock Exchange Corporation

Financial Statements

For the Fiscal year ended March 20, 2011

We would like to submit the financial statements of Tehran Stock Exchange Corporation for The fiscal year ended March 20, 2011. Components of the financial statements are as followings:

• Balance sheet • Income statement Retained earnings account • Cash flow statement • History • Basis for preparing Financial Statements • Significant Accounting policies • Notes to the Financial Statements (items and numbers)

The financial statements have been prepared according to the National Accounting Standards and they have been approved by the Board of Directors on March 20, 2011.

Members of the Board of Directors

Member of the Board Legal Person Position of Directors

Tadbir Investment co. Hamidreza Rafiee Chairman Keshtli

Securities and Khosro poormemar Vice Chairman Exchange Brokers Association Social Security Hossein Salimi Non-executive member Investment Co.

Bank-e- Mellat Mohammad Ebrahim Non-executive member Brokerage Co. Poorzarandi

Iran Melli Investment Amir Hossein Erza Non-executive member Brokerage Co.

Hafez Brokerage Mohammad Reza Non-executive member Rahbar

Bank Tejarat Seyed Mojtaba Fahim Non-executive member Hashemi

Securities and Exchange Ali Hosseini Organization

Hasan Ghalibaf Asl Managing director

Balance Sheet

March 20, 2011

Assets Not March March Liabilities & shareholders' equity Not March 20,2011 March 20,2010 e 20,2011 20,2010 e IRR Million IRR Million IRR Million IRR Million Current Assets: Current Liabilities: Cash & Bank 4 24,521 5,247 Trade Accounts Payable 13 7,761 2,895 Short Term 5 190,360 195,930 Other accounts Payable 14 9,556 12,173 Investments Trade Accounts 6 13,472 15,432 Deferred income 15 8,698 - Receivable Other Accounts 7 11,525 9,267 Dividends 16 1,922 1,615 Receivable Prepayments 8 1,164 4,016 Provision for Taxes 17 26,359 23,409 Total Current Assets 241,042 229,892 loans received 18 1,112 2,635 Non-Current Assets: Total Current Liabilities 55,408 42,727 Tangible Fixed assets 9 103,235 51,550 Noncurrent liabilities: 0 Intangible assets 10 1,581 809 Long- term loans 18 - 834 Long Term 11 30,221 30,221 Provisions for Employees’ Termination 19 6,153 3,666 Investments Benefits Other Assets 12 60,487 32,300 Total Non-Current Liabilities 6,153 4500 Total Non-Current 195,524 114,880 Total Liabilities 61,561 47,227 Assets Shareholders' equity: Paid-in capital(255 million shares paid 20 255,000 150,000 totally) Legal reserve 21 17,592 12,149 prudential reserve 21 22,364 48,592 Retained earning 80,049 86,804 Total Shareholders' equity 375,005 297,545 Total Assets 436,566 344,772 Total liabilities and shareholders' Equity 436,566 344,772 Explanatory notes are an integral part of financial statements.

Income Statement

For the Fiscal year ended March 20, 2011

Note Fiscal year Fiscal year ended ended March 20,2011 March 20,2010 IRR Million IRR Million

Services revenue 22 202,647 170,441 Cost of services 23 (79,626) (71,713) Gross income 123,021 98,728 Administrative and general expenses 24 (35,121) (22,985) Operating profit 87,900 75,743 Financial expenses - (439) Net other non-operating income and expenses 25 42,621 34,996 Income before tax 130,521 110,300 Income tax 17 (21,661) (20,624) Net income 108,860 89,676 Earnings per share 30 427 352 Retained Earnings Account

Net Income 108,860 89,676

Retained earnings at the beginning of the period 93,286 66,938

Prior period adjustment 26 (6,482) -

Retained earnings at the beginning of the period- 86,804 66,938 adjusted

Capitalization 20 (57,000) -

29,804 66,938

Allocatable income 138,664 156,614

Income allocation:

Dividend 16 (30,000) (45,000)

Board of directors bonus (1,400) (1,232)

Legal reserve 21 (5,443) (4,716)

Prudential reserve 21 (21,772) (18,862)

Allocated income during the period (58,615) (69,810)

Retained earnings at the end of the period 32 80,049 86,804

Explanatory notes are an integral part of financial statements.

٣۴

Cash flow Statement

For the Fiscal year ended March 20, 2011

Note Fiscal year ended Fiscal year ended March 20,2011 March 20,2010

Million Rials Million Rials

Operating activities:

Net cash inflow from operating activities 27 99,166 57,583

Return on investments and servicing of finance:

Interest received from short-term investment 39,182 34,256

Earnings received from long-term investment 3,205 2,055

Dividends Paid 15 (29,693) (45,724)

Net cash inflow (Outflow) from Investment Returns 12,694 (9,413) and servicing of finance Income tax:

Income Tax paid (17,608) (6,718)

Investing activities:

Receipt for short- term investment sales 5,570 -

Payment for acquisition of short-term investments - 5,130

Payments for acquisition of other assets (20,000) (30,000) payment for acquisition of tangible fixed assets (58,487) (8,515)

Receipts for acquisition of tangible fixed asset sales 1,330 506

Payments for acquisition of intangible assets (890) (171)

Net cash inflow (out flow) from investing activities (72,477) (43,310)

Net cash inflow (out flow) before financing activities 21,775 1,858

Financing activities:

Loan principal paid (2,501) (2,502)

Net cash increase (decrease) 19,274 4,360

Cash Balance at the beginning of the period 5,247 9,607

Cash balance at the end of the period 4 24,521 5,247

Non-cash trades 27-1 1,103 1,304

Explanatory notes are an integral part of financial statements.

٣۵

1. Background

1.1. History

Tehran Stock Exchange Corporation has been founded according to the Securities Market Law approved on November 22, 2005, and registered with the number 286502 with the Companies & Non- commercial Institutions Registration Office in Tehran. The head office of the company is located in Tehran and has 21 Branches within the country and an independent registered branch in Kish Island by now.

1.2. Main Activities

According to the Provision 2 of the Articles of Incorporation, the main activities of the company are:

• Establishing, organizing and operating the Stock Exchange for making trades on listed securities by Iranian and foreign parties according to the law and regulations. • Listing securities including securities of foreign issuers according to the law and regulations. • Determining the brokerage membership conditions for different groups of members, admitting the membership applicants, and enactment and enforcement of professional and disciplinary principles. • Providing conditions necessary for fair access of members to trades of listed securities. • Cooperation and Consistency with the other financial institutions undertaking responsibilities related to securities trades, making researches, training, culture developing, and cooperation with other Iranian and foreign Exchanges to share information and experiences. • Supervising well conduction of listed securities transactions and supervising issuers' activities. Providing, collecting, processing and issuing information related to securities, and performing other duties according to the law and regulations.

1.3. Employment position

The number of employees at the end of the financial period is as follows:

Permanent and temporary employee March 20,2010 March 20,2011

246 255

2. Basis for preparing financial statements

The financial statements of the Company have been prepared mainly on historical cost basis and where necessary current values have been used.

3. Significant accounting policies

3.1. Investments

Long term investments are valued at cost less any provision for impairment of any investment. Income from investments in subsidiaries is recognized when profit is approved by the general meeting of shareholders of the investee until approval of financial statements, and income from investments in associates is recognized when profit is approved by the general meeting of shareholders of the investee until balance sheet date. Short term investments are recognized at least cost and net realizable value.

٣۶

3.2. Tangible fixed assets

3.2.1. Tangible fixed assets are carried on the cost basis. Costs for betterment and substantial repairs resulting in a significant increase in the capacity and useful life of fixed assets or an improvement of their output quality, are accounted for as capital costs and depreciated during the remaining useful life of the relevant assets. Costs necessary to maintain the normal capacity of the assets like maintenance and insignificant repairs, are accounted for as expenses of the period when incurred.

3.2.2. Depreciation of tangible fixed assets are calculated based on the estimated useful life of the asset, according to the depreciation regulations included in the Article 151 of the amendment of the Direct Taxation Act and on the basis of the following rates and methods:

Assets Depreciation rate Depreciation method Buildings 7% Diminishing balance Computer system and hardware 3 & 10 year Straight line Administrative equipments 10 year Straight line Vehicles 25%, 35% Diminishing balance

3.2.3. Fixed assets acquired and used within a month are depreciated and carried from the beginning of the next month. When an asset is not used for any reason like work stopping, its depreciation will be equivalent to 30% of the depreciation rate included in the table above.

3.3. Foreign currency translation

Foreign currency items with the formal exchange rate at the balance sheet date and expenses carried in foreign currency at historical cost are translated with the formal exchange rate at the date the transaction is entered into. Differences arising from settlement or exchange of foreign currency items are recognized as income or expenses of the period when incurred.

3.4. Provision for employees' termination benefits

Provision for employees' termination benefits are calculated and carried according to their last monthly fixed salary and continuous benefits for every year of their service.

3.5. Revenue recognition

Revenue sources of the Company are commissions from trading, admitting and listing fees, brokerage fees, broker services and other sources. The ceiling of rates for broker services is determined by the Security Exchange Organization. The income resources are recognized as realizing over the time, in the framework of approvals and they are carried on accrual basis.

٣٧

3.6. Intangible assets

Intangible assets are carried on the cost basis and amortizable intangible assets (software) are amortized until maximum 3 years.

4. Cash

The company's cash in hand at the balance sheet date are as following:

March 20,2011 March 20, 2010 Million Rials Million Rials Bank accounts (Rial) 24,285 4,618 Bank accounts (foreign currency) 82 461 Fund 154 168 Total 24,521 5,247

5. Short – term investments

Notes March March 20,2011 20,2010 Million Rials Million Rials Time deposits 5-1 134,000 84,000 Contribution bonds 5-2 32,360 77,930 Investment funds 5-3 24,000 34,000 Total 190,360 195,930

5.1. Time deposits with banks are including 5 time deposit certificates with 17.5% interest rate and 2 time deposit certificates with 17% interest rate.

5.2. This amount is relevant to petrochemical and hydroelectric industries contribution bonds and ministry of energy contribution bonds with 17% and 18% interest rate respectively.

5.3. This amount is mainly relevant to investment fund certification with 17% interest rate.

٣٨

6. Trade accounts receivable

The receivables are including:

Note March 20,2011 March 20,2010

Million Rials Million Rials

Listed companies (listing fees) 6-1 7,493 8,179

Central depository and settlement 3,954 3,304 corporation

Brokerage 1,519 2,964

Other 506 985

13,472 15,432

6.1. Listing fees receivable from listed companies at the end of the year 1389 were 8,886 million IRR from which 1,393 million IRR was carried as a provision for bad debts.

7. Other Accounts Receivable

Amount Amount

Million Rials Million Rials

March 20,2011 March 20,2010

Loans to Employees 4,947 3,180

Security for building lease 2,500 2,250

Income from short-term investment 2,130 2,597

Over the counter 266 91

National oil Refining and Distribution Co. 191 191

Security for Visa card 116 110

Other 1,375 848

11,525 9,267

٣٩

8. Prepayments

The balance of prepayments is including:

March 20, 2011 March 20, 2010

Million Rials Million Dollars

Costs, goods and services 2,848 663

Tax 1,010 498

Other 158 3

4,016 1,164

۴٠

9. Tangible Fixed Assets

Cost- million IRR Retained depreciation-million IRR Book value- million IRR

Balance on Sold Transfers Balance on Balance on Balance on Balance on Balance on 1389/12/29 1388/12/29 1389/12/29 1388/12/29 1389/12/29 Description assets and Others 1388/12/29 Additions

Land 26,967 - (990) - 25,977 - - - - 25,977 26,967 Building 19,060 579 (359) - 19,280 2,042 1,230 (46) 3,266 16,054 17,018 Equipment, 10,340 2,709 (342) 20 12,727 3,568 2,327 (145) 5,750 6,977 6,772 Fixtures and Computer 1,111 300 - - 1,411 358 189 - 547 864 753 Vehicle

Total 57,478 3,588 (1,691) 20 59,359 5,968 3,746 (191) 9,523 49,872 51,510 Capital 40 53,363 - (40) 53,363 - - - - 53,363 40 prepayments 57,518 56,951 (1,691) (20) 112,758 5,968 3,746 (191) 9,523 103,235 51,550 Total

۴١

9.1. All tangible fixed assets amounted 30,427 million IRR are insured against fire, flood and earthquake,

9.2. Land and building sales refer to an apartment located in Ghazvin floor, which is sold to Tadbirgaran-e-farda brokerage.

9.2.1. Details related to the income from sale of apartment, equipments, fixtures and computer are as following:

Description Cost Retained Book Sale price Sale Million IRR Million depreciation value Million profit IRR Million IRR Million IRR Million IRR IRR Land 990 - 990 1,400 97 Building 359 (46) 313 - - 1,349 (46) 1,303 1,400 97 Equipment, Fixtures and 342 (145) 197 422 225 Computer 1,691 (191) 1,500 1,822 322

Income from sale of the above mentioned assets are included in note 25.

9.3. Excess prepayments related to the capital includes 52,990 million IRR paid for 70% value of a land located in saadatabad street with an area of 2523/24 square meters. Total price of the land is 160,606 million IRR.

10-Intangible Assets

The intangible assets are including:

March 20, 2011 March 20,2010

Million Rials Million Rials

Software 761 -

Regional floor Branches 704 697

2 line of PRA link – Hafez floor 64 64

14 Mobile lines 52 48

1,581 809

۴٧

10.1. Software in the company is including:

Cost Retained depreciation Book value million IRR Million IRR million IRR Balance on Purchases Balance on Balance on Amortization Balance on Balance on Balance on 1388/12/29 1388/12/29 1388/12/29 1388/12/29 1389/12/29 1388/12/29

Future - 700 700 - 97 97 603 - Contract Software

Other - 179 179 - 21 21 158 - Software

- 879 879 - 118 118 761 -

11-Long –Term investments

Long term investments in companies are including:

No. of Shares March March

20, 2011 20, 2010

Million Rials Million Rials

Over the counter Corporation of Iran 20,000,000 20,000 20,000

Central depository corporation 10,000,000 10,000 10,000

Iran financial center (private Joint) 199,998 200 200

Iran mercantile Exchange corporation 13,000 21 21

30,221 30,221

۴٨

A Summary of Financial Statement of Iran Financial center Company is as follows:

Balance Sheet

Mar 20, 2011

(29/12/1389)

Assets March Liabilities & Shareholders’ Equity March

20, 2011 20, 2011

Million Rials Millio Rials

Current assets 200 Current liabilities 56

Non-current 10 Capital (200,000 Shares / 1000 Rials / Paid) 200 assets

Retained Loss (46)

Total 210 Total liabilities & shareholders' equity 210

12. Other assets

Other assets are including:

March March

20, 2011 20, 2010

Million Rials Million Rials

Time investment deposit certificate 50,000 30,000

Employee's loan (long term) 10,487 2,300

60,487 32,300

۴٩

13. Trade Accounts payable

The amount due to accounts payable that is 7,761 million IRR is for balance of receivables from brokers that TSE received it from Central Depository Corporation, in excess of broker commissions.

14. Other Accounts Payable

Note March 20, 2011 Mar 20, 2010

Million Rials Million Rials

Employee's saving fund 14-1 3,386 2,427

Provision for incurred and unpaid expenses 1,312 570

Taxes payable 878 663

Non-recognized settlements 706 1,115

Insurance Premium 666 514

Securities and Exchange Organization 375 5,499

Other 2,233 1,385

9,556 12,173

14.1. Amount due to employees saving fund are for 3% deductions from employees salary in addition to 3% due from the employer. A loan will be paid to the employees from the amount, according to the board of director's approval.

15. Deferred Income

In the line of best utilization of the company's resources (liquidity management), an amount of 60,000 million IRR has been deposited with banks with the interest rate of 17%. According to the agreements, the one-year interest amounted as 10,200 million IRR was received at the beginning of the period, 1,502 million IRR of which was recognized as non-operating income and the non- depreciated balance amounted as 8,698 million IRR was included under the above mentioned heading and was carried as non-operating income in the next year.

۵٠

16. Dividends

March March

20, 2011 20, 2010

Million Rials Million Rials

Dividend in 1388 (200 Rls for 1 share) 30,000 -

Dividend in 1387 (300 Rls for 1 share) 45,000 -45,000

Dividends in 1386 (250 Rls for 1 share) 37,500 37,500

Divide has in 1385 (25 Rls for 1 share) 3,750 3,750

Dividends paid (114,328) (84,635)

Balance at the end of the year 1,922 1,615

During the financial period, dividend has been paid according to the schedule announced, to all individuals and legal entities except those with insufficient information.

17. Reserve Tax

Summary of the provision for taxes is as the followings:

Fiscal March 20,2011 (Million IRR) March Basis for 20,2010 recognition Year Tax Million Rials

declared profit Income declared assessed finalized paid reserve reserve (Loss) taxable balance balance

1386 83,029 53,246 13,311 14,590 13,859 13,859 - - Taxes and books 1387 79,819 26,443 6,888 9,822 9,666 9,666 - 2,785 auditing

1388 110,300 62,429 15,990 20,624 - 15,607 4,698 20,624

1389 130,521 86,644 21,661 - - - 21,661 -

26,359 23,409

۵١

18. Loans received

The loans Received are including an interest free loan from Bank Melli of Iran with 4% year interest in order to pay a housing interest free loan to employees on the basis of an agreement to bourse branch Bank Melli of Iran.

March 20, 2011 March 20, 2010

Million Rials Million Rials

Principal 7500 7,500

Interest (first Year) 300 300

Interest (second Year) 139 139

Interest (over the period) 144 -

8,083 7,939

Paid in year 1387 (Principal (1,968) (1,968) and Interest)

Paid in year 1388 (principal)) (2,502) (2,502)

Paid in year 1389 (principal)) (2,501) -

Balance 1,501 3,469

Long term portion - (834)

Current portion 2,635 2,635

۵٢

19. Provision for employees' termination benefits

Turnover of this account is as follows:

March 20, 2011 March 20, 2010

Million Rials Million Rials

Balance at the beginning of the year 3,666 2,375

Paid out during the year (282) (546)

Current year provision 2,769 1,837

Balance at the end of the year 6,153 3,666

20. Capital

Capital of the company as amounted 150 billion Rls, consists of 150 million non-bearer full-paid shares having a nominal value of 1,000 Rls. According to the approvals of the extraordinary general meeting on 14/07/1389, capital increase could be allowed to the extent of 150 billion IRR in two phases (70% in the first phase and 30% in the second phase) from prudential reserve and retained profit. The first phase of the capital increase has been made in the reported year and the capital reached 48 and 57 billion IRR from prudential reserve and retained profit respectively. According to the article 9 of the Constitution at the balance sheet date the company's shareholders are classified as:

Mar 20,2011 Mar 20, 2010

Shareholders Shares % Shareholders Shares %

Brokers 77 86,592,900 34 77 50,937,000 34

Financial 70 100,017,800 39 71 58,834,000 39 institutions

Other 729 68,389,300 27 5,806 40,229,000 27

Total 876 255,00,000 100 5,954 150,000,000 100

۵٣

21. Reserves

Legal Reserve Prudential Reserve

Million Rials Million Rials

Balance at the beginning of the year 12,149 29,730

Raising during the year 5,443 18,862

Transfer to the capital - (48,000)

17,592 22,364

22. Income from rendered services

Note March 20, 2011 March 20, 2010

Million Rials Million Rials

Income from trading commission 22-1 131,737 105,268

Income from broker services 22-2 44,390 35,690

Income from listing fees 22-3 19,921 23,232

Rentals 6,599 6,231

Other - 20

202,647 170,441

۵۴

22.1. According to the approval of the Securities & Exchange Organization, income from trading commission amounted as 131,579 million Rials has been calculated, based on value of per transaction, up to 200 million Rials (22.33 Thousand dollars) ceiling for the first quarter of the year, and based on value of per transaction up to 200 million Rials from 01/04/89 on and it has been received by the Central Depository Company, which details have been provided bellow. The remainder (158 million Rials) relates to income from future contracts commission. According to the approvals of the Securities and Exchange Organization, the future contracts commission has been based on value of a contract.

March 20, 2011 March 20, 2010

Million Rials Million Rials

Normal transactions (Retail) 117,970 88,626

Whole trading 13,600 16,600

Market maker transactions 9 42

Total 131,579 105,268

22.2. Income from broker services

Notes March 20, 2011 March 20, 2010

Million Rials Million Rials

Trading system fees 22-2-1 31,042 22,215

Brokerage fees 8,725 8,725

Exchange floor trading station fees 4,623 4,750

Total 44,390 35690

22.2.1. Increases in trading system fees and commissions result from increases in trading stations and brokers' performance respectively.

۵۵

22.3. Income from listing fees is as follows:

Note March 20, 2011 March 20, 2010 Million Rials Million Rials

Listing fees 21-3-1 16,037 15,854 Admission fees 21-3-2 3,884 7,378 19,921 23,232

22.3.1. According to the approval of the Securities and Exchange Organization, Listing fees are as equivalent to 0.002 of capital and 50 million Rials for every year.

22.3.2. According to the approval of the Securities and Exchange Organization, Admitting fees are annually as equivalent to 0.002 of capital and 500 million Rials, for the companies that their capital are equivalent or less than 250 billion Rials and 1000 Million Rials for the companies that their capital are more than 250 billion Rials .

23. Cost of rendered services:

The costs of rendered services are including:

Note March 20, March 20, 2011 2010

Million Rials Million Rials

Direct wage and salary 23-1 48,249 37,345

Repair and maintenance of Regional floors 23-2 18,127 15,959

Floors security forces fees 4,780 3,198

Trading system management 23-3 3,219 12,500

Computers, communications and technology costs 2,924 1,793

Marketing and development of markets and financial 23-4 1,127 94 instruments

Conference and exhibition costs 986 601

Council duty 214 223

79,626 71,713

۵۶

23.1. Items of Direct wages are including:

March 20, 2011 March 20, 2010

Million Rials Million Rials

Salary and wages 15,360 13,412

New year bonus and rewards 12,444 9,898

Legal and job benefits 7,996 5,335

Insurance premium by employer 4,505 3,718

Over time pay 3,847 2,209

Employee's termination benefits 2,018 1,353

Mission allowance and traveling costs 1,107 594

Others 972 826

48,249 37,345

23.2. The cost of supply and maintenance of regional floors are including:

March 20, 2011 March 20, 2010

Million Rials Million Rials

Rentals for regional floors buildings 9,266 7,650

Depreciation costs 3,591 3,226

Water, Electricity, Telephone and Gaz 1,872 1,396

Repair and maintenance of floors 1,684 1,772

Other 1,714 1,915

18,127 15,959

23.3. According to the contract concluded for the first quarter of the year, the cost of trading system management has been paid to Technology Management co. of Tehran stock Exchange.

23.4 The amount is related to launching the future contracts market in this year.

۵٧

24. General & Administrative Expenses

Note March 20, 2011 March 20, 2010

Million Rials Million Rials

Salaries and wages 24-1 24,795 16,874

Rent of building 2,169 2,131

Bad debt expenses 24-1-1 1,393 -

Council duty 1,106 518

Water, Electricity, Phone and Gas 1,040 698

Meetings 741 98

Administrative and consumable supplies 536 362

The board and committees attending 372 349 compensation

Membership fee of professional associations 366 386

Publication cost 345 389

Depreciation Cost 273 229

Repair and maintenance 196 73

Post 38 35

Others 1,751 843

Total 35,121 22,985

۵٨

24.1. Compensation costs are including:

March 20, 2011 March 20, 2010

Million Rials Million Rials

Salaries, wages 6,336 4,924 bonus and rewards 7,024 5,010 Legal and job benefits 4,742 3,167 Over time payments 2,465 1,262

Insurance premium by employer 1,891 1,279

Mission allowances and traveling costs 1,008 389

Employees' termination benefits 751 482

Others 578 361

Total 24,795 16,874

24.1.1. Increases in the costs are as a result of approvals of Ministry of Labor and Social Affairs and increase of over time hours.

25. Net other income and non-operating expenses

March 20, 2011 March 20, 2010

Million Rials Million Rials

Bank deposit interest 23,951 33,545

Contribution bonds 14,764 2,016

Over the Counter Exchange dividend 2,200 800

Central depository corporation's dividend 1,000 1,250

Income from tangible fixed assets sale 322 -

Iran mercantile Exchange dividend 5 5

Net profit (loss) of the foreign currency exchange (2) 59

Fines and claims (Note 24-1) 0 (2,825)

Other non-operating income 381 146

Total 42,621 34,996

۵٩

26. Prior Period Adjustments

The item as amounted 1,848 million IRR relates to adjustments to tax reserve of the financial year 1387, which has been paid to Tax affairs Organization and the remainder (4,634 million IRR) relates to the difference of tax reserve in the financial year 1388.

26.1. In order to provide a proper picture of the financial position and operation results, corresponding items of tax reserve and retained profit related to the prior period adjustments have been improved and restated in corresponding financial statements. Then the corresponding items do not match to financial statements provided in the previous financial year.

Note The balance in the Debtor Creditor The balance in the previous financial current financial statements statements Million IRR Million Million IRR Million IRR IRR Tax reserve 17 16,927 - 6,482 23,409 Retained profit 93,286 6,482 - 86,804 6,482 6,482

27. Reconciliation of Operating Profit Reconciliation of operating profit to net cash inflow from operating activities is as the followings:

March 20, 2011 March 20, 2010

Million Rials Million Rials

Operating profits 87,900 75,743

Depreciation expenses 3,864 3,454

Net increase in employees' termination benefits 2,487 1,291

Increase in operating accounts receivable (8,462) (12,347)

Increase in prepayments 1,750 (1,916)

Increase (decrease) in operating accounts payable 3,786 (7,488)

Deferred income 8,698 -

The board of directors' bonus (1,400) (1,232)

Other non-operating income and expenses 543 78

99,166 57,583

۶٠

28. Contingent Liabilities and Capital Obligations

28.1. Capital obligations as amounted 107, 616 million IRR are related to the 30% price of a land, that is 22,710 million IRR and the remainder costs of it, 84,906 million IRR.

28.2. There is no material contingent liability at the balance sheet date to require disclosure.

29. Post balance sheet date events

No significant post balance sheet event has occurred requiring adjustments or disclosures in the financial statements.

30. Related parties transactions

Party Relationship Transaction Amount Closing balance of Type details due to (from)

Million Rials Million Rials

A. Transactions subject to the Article 129 of the Commercial Code as amended

OTC Received dividend 2,200 - Board of Directors Member

Allotment of 717 266 Expenses 2,917 266

B. other related parties

Iran Central Depository 1000 - and Settlement Co.

Received dividend Investee company

Rentals and 167 73 Expenses

1,167 73 Tadbirgaran-e-farda Sale of an Brokerage Shareholder apartment located 1,400 100 in Ghazvin floor Fair value of the transaction has a significant difference with the transaction price.

۶١

30. Retained earnings at the end of the year:

Retained Earnings allocation depends on general assembly ratification:

Amount

Million IRR

Legal duties:

Division of minimum 10% of net profit according to the Article 90 of the Commercial Code 10,886 as amended.

Board of Directors proposal: 25,500 Dividend proposed by Board of Directors

۶٢

Appendix

۶٣

Appendix 1

History

Tehran Stock Exchange Corporation has been founded according to the Securities Market Law approved on November 22, 2005, and registered with the number 286502 with the Companies & Non- commercial Institutions Registration Office in Tehran and demutualized in 2006. The head office of the company is located in Tehran and has 21 Branches within the country and an independent registered branch in Kish Island by now.

Capital and Shareholders

According to the Securities Market Law, no legal or individual shareholder may hold directly or indirectly more than 2.5% shares of TSE. TSE shareholders are classified as brokers, financial institutions and others.

Shareholders in 2010

Shareholders Share number % Group number Brokers 77 86,592,900 34 Financial institutions 70 100,017,800 39 Others 5729 68,389,300 27 Total 5876 255,000,000 100

Regulatory Framework

Due to the capital markets development and the need for new regulation, the new Securities Act was passed by the Iranian parliament in 2005. The Act, which is more comprehensive and advanced than the previous one, has been passed to protect investors' rights and aimed at organizing, and development of a fair, efficient and transparent securities market. The Act provides required regulation for the primary market, prevention of financial violations, development of various financial instruments and financial institutions.

After passing the Act, some changes occurred in the legal structure of Iranian securities market. According to the Act, a new regulatory body, called Securities & Exchange Organization (SEO) was established to operate as a supervisor on legislation and enforcement and other affairs under the Law. In other words, the regulator of the Securities Market comprises two regulatory institutions: Securities & Exchange High Council and Securities & Exchange Organization.

The Securities & Exchange Council will be the highest authority and will be responsible for all related policies, market strategies, and supervision of the market. The Chairman of the Council will be the Minister of Economy and finance; other members are: Minister of Commerce, Governor of the Central Bank of Iran, President of the Chamber of Commerce, Attorney General, Chairman of the SEO, representative of the brokers association, three financial experts proposed by the Minister of economy and Finance and approved by the Council of Ministers, and one representative for each commodity exchange.

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The SEO will be responsible for administrative and supervisory duties, governed by the Board of Directors. The SEO’s Board of Directors will be elected by the Securities and Exchange Council.

Legal Structure of Iranian Securities Market

Securities & Exchange High Council

Securities & Exchange Organization

Other Financial Institutions Commodity Tehran Stock Exchange Exchange

Organizational structure

The board of directors of TSE constitutes 7 non-executive members appointed by the shareholders of the company for 2 years. These individuals appoint a managing director, who manages the operations of the Exchange through the various department heads that report to him. Managing director’s term of office is for two-year renewable term.

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Board of Directors

Internal Auditing Board Secretariat Audit Committee Department Risk Management Committee Remuneration committee CEO

Market CEO Office Department

Public Relation Legal Department and International Department

Administration Issuers & Research & Business Members Development

Financial Department Issuers Department R&D Department

Administration Department Members Department Planning Department

IT Department Listing Department Training Department

Regional Floors Department

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Human Resources Tehran Regions Total

151 104 255

Trading System

TSE is open for trading five days a week from Saturday to Wednesday, excluding public holidays. Trading takes place through the Automated Trade Execution System from 9am to 12am, which is integrated with a clearing, settlement, depository and registry system. The trading system is an order driven system, which matches buying and selling orders of the investors. Investors can place their orders with TSE accredited brokers, who enter these orders into the trading system. Then, the system automatically matches buy and sell orders of a particular security based on the price and quantity requirements. The mechanism for which the price of equities is determined is as follows: The best price (price priority) Time of order priority Under the price priority rule, a selling (buying) order with the lowest (highest) price takes precedence. Under the time priority rule, an earlier order takes precedence over others at the same price. The trading system also generates and displays details of current and historical trading activity, including prices, volumes traded and outstanding buy and sell orders. This ensures that investors have the required information to be able to make informed investment decisions.

Daily Price Fluctuations According 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 in specific situation by the Board of the TSE in case of unusual price movements. Short selling is not permitted and no minimum trading lots is determined.

Trading Days Saturday-Wednesday Hours 9:00-12:00 Market segmentation Main market (main and secondary boards), secondary board System Automated Trading System (ATS) (order driven) Mechanisms Opening/Continuous auction Market-maker/ Specialists Selective Instruments Shares & Rights, Corporate Participation Bonds Currency Iranian Rial Real time information bid/ask, prices, Volume, Value and company announcements Dividend tax 22.5% tax levied on earnings at source From Company Capital gain tax None

Trading floor is open to investors during operating hours and provides facilities like large screens displaying real time trading data. Additional space is available which oversees the

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trading floor that contains touch-screen terminals which can be used by investors to view the details of outstanding buy and sell orders. Market Information Dissemination Timely issuance of information is one of the main indications of a fair, efficient and transparent market. TSE continuously issues news and information related to the trading price and volume through its website according to the disclosure rules approved by the SEO. Point information related to trades will be provided for investors as free. SEO also provides news related to issuers through its website. Besides, SEO has implemented a network named CODAL through which information affecting the price will be issued directly. All these information are free by now.

Clearing & Settlement

Central Securities Depository of Iran has been established as an implication of the new Securities Market Act. The Central Securities Depository of Iran (CSDI) accomplishes clearing and settlement of trading, maintains and transfers the securities as dematerialization and acts as the central registry of the country's securities market as well. In near future, the institution will be benefited by the new depository software, carrying out clearing and settlement of trading on the basis of DVP and acting as CCP in trade clearings. CSDI is managed as a corporation type company, with TSE, brokers and banks as its shareholders. The CSDI is an integral part of a transparent, viable, fair and efficient equities market in Iran that has attracted domestic investor's confidence and will contribute to the wealth of the nation.

Clearing & Settlement

Central Depository Central Securities Depository of Iran (CSDI)

Period T+3

Registered Yes

Settlement Book entry

Clearing Netting

DVP In the Future

Risk Sharing In the Future

Margin/Lending In the Future

Commissions & Fees Brokerage Fees With effect from 22 May 2007, the brokerage fees for shares and rights are 0.4% of the value of the transaction payable by both the seller and buyer subject to the maximum IRR 100 mill.

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TSE Commission 0. 08% of transaction value payable by both the seller and buyer with a maximum of IRR 200 mill.

SEO Commission 0.1% of transaction value payable by both buyer and seller with a maximum of IRR 200 mill.

Clearing Fee 0.07% of transaction value payable by both seller and buyer with a maximum of IRR 200 mill.

Taxes The sellers pay 0.5 percent of the value of the transaction. There are no taxes on capital gain. 22.5% tax has levied on company's profit and there is no dividend tax on shareholders directly.

Participation Bonds Trading Commission 0.1% of transaction value payable by both buyer and seller with a maximum of IRR 100 mill. Transactions on participation bonds are exempt from any other taxes.

Indices

In 1990, the All-Shares Price Index, TEPIX introduced to the market as the main indicator of share price movement. TEPIX is a weighted market value of all share prices appearing on the TSE Price Board. In addition to the TEPIX, Total return index (TEDPIX), price indices of Main and Secondary Markets, of every individual industry is computed as well. TEPIX calculation method is as follows:

Where Pit and Pib represent share price of company i respectively at time t and at the close of trading on March 21st, 1990; and C shows the total number of shares.

Main and Secondary Markets indices calculation method are as TEPIX and No adjustment takes place on the day when a share becomes ex-dividend. TEDPIX is a total return index, that is the price level index plus the dividend reinvested.

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Estimation Indices Number Base Date Base Value Interval

Total Return Index (TEDPIX) 1 March 21,1998 1,653.08 Daily

All- Share Price Index 1 March 21,1990 100.00 Daily (TEPIX)

Financial Index 1 March 21,1998 4,114.91 Daily

Industrial Index 1 March 21,1998 1,393.88 Daily

Top 50 Companies Index 1 March 21,1998 100.00 Daily

Each Industry(sector) Index 37 March 21,1998 100.00 Daily

Each Company Index 419 March 21,1998 100.00 Daily

After each Cash Dividend Index (TEDIX) 1 March 21,1998 1,653.08 Change

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Single Stock Futures Contract Specifications

Contract Description

Underlying stock Common stocks listed on Tehran Stock Exchange (TSE).

Ticker symbol Each single stock futures is assigned a ticker symbol (Underlying Stock -Maturity Year-Maturity Month)

Trading hours 09:00AM-12:30 PM Tehran time, Saturday through Wednesday of the regular business days of the Tehran Stock Exchange.

Contract size The Number of shares that makes the average value of the Contract equal to 20,000,000- 30,000,000 Rls.

6 two-month cycles that the Bimonthly events start at 22 March. Delivery months

Daily price limit ±4% of previous day’s settlement price

Minimum Price 1 Rls per share Fluctuation

Trading Period First trading date till the day before delivery date

Initial Margin 20% of contract value.

Maintenance 60 % of initial margin. Margin

Collateral Limit 20 % of contract value in cash or other agreed notes (Optional)

Order Limit 10 contract

Currency Rls

Delivery Date The day after last trading day

Trading Trading Fees TSE CDS SEC (Based on Trading Member Value of the Long Put Long Put Long Put Long Put Contract) 0.00032 0.00048 0.00032 0.00048 0.004 0.004 0.0004 0.0006 Physical Delivery Fee 0.005 of contract value at settlement price the last trading day's

Market-Wide position limit: No. of free float share divided by contract size divided by Position no. of contracts that simultaneously is traded. limit Member position limit: utmost 20 % of Market-Wide position limit based on broker's collaterals.

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Institutional Client Individual Client

Higher of 0.001 of market-wide position limit 0.001 of market-wide position limit or 0.1 of paid capital

When no underlying stock is owned by the seller at the end of the last trading day, the penalty of this is 1% of the contract value based on the last daily settlement price in the trading period of the contract, which is transferred to the buyer. If the closing price of the underlying stock in the spot market at the end of the trading session of the last trading day is more than the last daily settlement price in the trading period of the contract, the difference is transferred from the seller account into the buyer account. Penalty of non-payment of the contract value by the buyer based on the last settlement price until 12 o'clock of the first day of the delivery period is 1% of the contract value which is received from the buyer account into the seller account. If the closing price of the underlying stock in the spot market at the end of the trading session of the last trading day is less than the last daily settlement price in the trading period of the contract, the difference is transferred from the buyer account into the seller account.

• When the capital increase and dividend payment by the issuer, TSE adjusts the last daily settlement price and the contract size before the trading symbols are opened. • If the annual general meeting of the company is coinciding with the trading period of a contract, TSE may avoid to set trading symbol for the contract in this month. Others • The basis for calculation of market-wide position limit is the shares number of the issuer of the underlying stock dividing by the contract size and then dividing by the trading symbols number of futures contracts on the stock being traded at the same time. • Position limit of each natural individual is equivalent to 0.001 of market-wide position limit.

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Appendix 2

TSE's member 2009

Services

Brokerage E-mail Web Site Internet Listing Portfolio Mutual Co. Order Consultancy Managing Fund Booking

Aban www.abanbroker.com √ √

Agah [email protected] www.agahbroker.com √ √ √ √

Amin Avid www.aminbc.com

Amin Sahm [email protected] www.aminsahm.com √ √ √

Andishe Bartar [email protected] √www.abbroker.ir √

Apadana [email protected] www.apadanabrokering.ir √ √ √

Arg Hooman [email protected] www.argbroker.com √

Arman Tadbir [email protected] www.armanbroker.com √ √ Naghshe Jahan

Armoon Bourse [email protected] www.armoonbourse.com √ √ √

Arya bours [email protected] www.ariabourse.ir Arya novin

Asel [email protected]

Ati saz Bazar [email protected] www.atibroker.com √

Atieh [email protected] www.atiehbroker.com √

Badreh Saham

Bahman [email protected] www.bahmanbroker.com √ √

Bank Eghtessad [email protected] www.novinbourse.com √ √ √ √ novin

Bank karafarin [email protected] www.karafarinbrokerage.com √ √ √

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Bank keshavarzi [email protected] www.agribourse.com √ √

Bank Maskan [email protected] www.maskanbourse.com √ √ √ √

Bank Mellat [email protected] www.mellatbourse.com √ √

Bank Melli Iran [email protected] www.bmibourse.com √ √ √ √

Bank Pasargad [email protected] www.pasargadbroker.com √ √ √ √

Bank Refah [email protected] www.refahbroker.com √ √ √ Kargaran

Bank Saderat [email protected] www.saderatbourse.com √ √ √ √ Iran

Bank Saman [email protected] www.samanbourse.com √

Bank Sanat va [email protected] www.smbroker.ir √ √ √ √ madan

Bank Tejarat [email protected] www.bt-broker.com √ √ √

Bank Towse-e [email protected] www.edbibroker.com √ √ Saderat

Bazar Saham [email protected] www.bazarsahambourse.com √ √

Behgozin bourse [email protected] www.behgozinbroker.com √ √ √

Behin Pouya www.behinpouya.com √ √ √

Bourse Bimeh [email protected] www.boursebimeh.com √ √ √ √ Iran

Borhan Sahand www.bsbourse.com

Boursiran [email protected] √

Donyaye [email protected] www.dk.rhbroker.com √ Khobreh

Donyaye Novin Saham

Etminan Sahm [email protected] www.etminansahm.com

Ebraz [email protected] www.ebrazbourse.com

Farabi (Omran) www.farabibroker.com √ √ √ √

Toseeye Farda [email protected] www.ganjinehbourse.com √ √

Arad Iranian [email protected] www.gbourse.com √ √ √ √

Hafez [email protected] www.hafezbourse.com √ √ √ √

Imen Bourse [email protected] www.imenbourse.ir √

Iran Sahm [email protected] www.iransahm.ir √ √

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Isatis Poya [email protected] www.ipb.ir √ √ √ √

Jahan Sahm [email protected] √

Karamad [email protected] www.irankbc.com

Khobregan [email protected] www.khobregan.com √ √ √ √ Saham

Kaspian Mehr [email protected] www.cmibrokerage.com √ √ √ √ Iranian(Bank Sepah)

Mahak Sahame [email protected] √ Sanayeh

Mehr Afarin [email protected] www.mehrbroker.com √ √ √

Meyar Saham [email protected] Www.meyarsaham.com √

Moein sahm [email protected]

Mofid [email protected] www.mofidbourse.com √ √ √ √

Moshaveran [email protected] www.tehranstock.com √ Saham

Movahedan √

Nahayat Negar [email protected] www.nahayatnegar.com √ √ √

Noandishan [email protected] www.noandishan.ir √ √ √ √ Bazar Sarmayeh

Tamin [email protected] www.roshdbroker.com √ √ √ √ Sarmayeh Novin (Roshd Paydar)

Omid Sahm [email protected] www.omidsahm.com

Omran Fars com.omranfars www. √ √

Ordibeheshte [email protected] www.oibroker.com √ √ √ Iraniyan

Pars Gostar [email protected] www.parsbourse.com Khobre

Pars [email protected] www.parsnem.com √ √ Nemoudgar

Parsiyan info@pim_co.com www.parsianbroker.com √

Rahbord [email protected] www.rahbord- √ √

investment.com

Rahnamaye [email protected] www.rahnamabroker.com √ √ √ Sarmayegozaran

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Razavi [email protected] www.rbc.ir √ √

Saba Tamin [email protected] www.sababroker.com √ √ (Kimia sahm)

Saham Barez [email protected] www.sahambarez.com √

Saham Gostaran [email protected] www.sahamgostaran.com Sharg

Saham Pajoohan [email protected] www.sahampajoohan.com √ √ Shayan

Saham Pouya [email protected]

Sahm Andish [email protected] www.sahmandish.com √

Sahm Ashena [email protected] www.abco.ir √ √ √ √

Sahm Azin [email protected] www.sahmazin.com √

Sahm Yar [email protected] www.sahmyar.ir √

Sarmayegozari [email protected] www.nibi.ir √ √ Melli Iran

Sarmayeh va [email protected] www.ckbroker.com √ √ Danesh

Shakhes Saham [email protected] www.shakhessaham.com √

Simabgoon [email protected] www.simabgoonbourse.com √

Tadbirgaran [email protected] www.tadbirbroker.com √ √ √ Farda

Tadbirgar [email protected] www.tadbirgar.com √ √ Sarmaye

Tahlilgarane Basir www.basirbourse.com

Towse-e Sahand [email protected] http://sd.rhbroker.com

Towse-e [email protected] www.tsd-broker.co √ Sarmaye Donya

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Mutual Funds

Name Type Working NAV Return from Net days ($) Beginning (%)

Agah 518 183 84 www.agahfund.ir

Amin Global 197 113 13 www.agfund.ir

Amin Karafarin 52 102 2 www.amin.karafarinbrokerage.com

Bank Melli 606 243 144 www.bmimf.com

Bourse Bimeh 235 114 14 www.boursebimehfund.com

Boursiran 172 128 28 www.bifund.ir

Eghtesad Novin 380 128 28 www.enbankfund.com

Farabi 44 100 0 www.farabifund.com

Hafez 653 122 22 www.mutualfund.hafezbourse.com

Karafarin(Fixed 863 103 42 www.karafarinbank.com/mutualfunds Income)

Khebregan 620 144 44 www.fund-khobregan.com

Mehr Iranian 9 100 1 www.mehrfund.ir

Pasargad 492 117 17 www.pasargadfund.com

Pishgam 171 94 -5 www.pishgamfund.com

Pishtaz 603 173 73 www.fundsite.emofid.com

Pouya 653 167 68 www.iranfunds.com

Razavi 101 99 -1 www.razavifund.com

Saderat bank 647 88 -12 www.saderatbbf.com

Sahm Ashna 624 215 115 www.abmf.ir

Sanat o madan 190 120 20 www.smfund.ir shadab 500 113 13 www.fund.rahbord- investment.com

Tejarat bank 513 104 4 www.btfs.rhbroker.com

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Yekom Iranian 338 119 20 www.iranianfund.com

Issuers 1: Agriculture 1. Magsal Co. 2: Monetary Intermediation 1. Saderat Bank 2. Tejarat Bank 3. Parsian Bank 4. Sina Finance & Credit CO. 5. Mellat Bank 6. Karafarin Bank 7. EN Bank 3: Basic Metals 1. Sepanta Industrial & Investment Co. 2. Rolling Mill & Steel Production Co. 3. Luleh Va Machinsazi Iran Co. 4. Iran Ferrosilice Co. 5. Sepahan Industrial Group Co. 6. Kaavian Steel Co. 7. Sadid Pipe & Equipments Co. 8. Esfahan's Mobarakeh Steel Co. 9. Khouzestan Steel Co. 10. Khorasan Steel Complex Co. 11. Alumtek Corp. 12. Alominum Rolling Mfg. Group 13. Shahid Bahonar Copper Industries Co. 14. Calcimin Co. 15. Iran Aluminum Co. 16. National Iranian Lead & Zinc Co. (NILZ) 17. Faravari Mavad Madani Iran Co. 18. Alomrad Co. 19. Kerman Ferromolybdenum Production Co. 20. Iran National Copper Industries Co. 21. Sadid Industrial Group 22. Tukafoolad Investment Co. 23. AmirKabir Kashan steel Co. (previous name: Fajre Sepahan Galvanizing Industries Company) 4: Cement, Lime & Plaster 1. Mazandaran Cement Co. 2. Urmia Cement Co. 3. Sepahan Cement Co. 4. Qayen Cement Co. 5. Tehran Cement Co. 6. Shomal Cement Co. 7. Kerman Cement Co. 8. Soufian Cement Co. 9. Fars & Khuzestan Cement Co. 10. Shargh Cement Co. 11. Iran Gatch Co. 12. Khazar Cement Co. 13. Gharb Cement Industries Co. 14. Isfahan Cement Co. 15. Ardebil Cement Co. 16. Ilam Cement Co. 17. Bojnourd Cement Co.

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18. Hormozgan Cement Co. 19. Fars Cement Co. 20. Darab Cement Co. 21. Neyriz Cement Co. 22. Dashtestan Cement Ind. Co. 23. Kordestan Cement Co. 24. Shahroud Cement Co. 25. Doroud Cement Co. 26. Hegmatan Cement Co. 27. Behbahan Cement Co. 28. Khash Cement Co. 29. Karoon Cement Co. 30. Fars-e-Nou Cement Co. 5: Ceramic & Tiles 1. Alvand Tile & Ceramic Industries Co. 2. Sina Tile & Ceramic Co. 3. Takceram Co. 4. Behceram Co. 5. Isfahan Tile Industries Co. 6. Irana Tile Co. 7. Nilou Tile Co. 8. Saadi Tile & Ceramic Co. 9. Pars Tile Co. 10. Hafez Tile & Ceramic Co. 6: Chemicals & Chemical products except Pharmaceutical Products 1. Petrochemical Industries Investment Co. 2. Chemical Industries Investment Co. 3. Sina Chemical Industries Co (SCIC) 4. Khark Petrochemical Co 5. Isfahan Pertrochemical Company Co. 6. Arak Petrochemical Co. 7. Fars Chemical Ind.Co 8. Niro Chlor Co. 9. Fanavaran Petrochemical Co. 10. Shiraz Petrochemical Co. 11. Abadan Petrochemical Co. 12. Herbicides Production Co. 13. Kaf Co. 14. Pars International Mfg. Co. 15. Paxan Corporation Co. 16. Tolypers Co. 17. Henkel Pakvash Co. 18. Goltash Co. 19. Farabi Petrochemical Co. 20. Iran Amlah (Mineral Salts) Co. 21. Pars Pamchal Chemical Co. 22. Rangin Industrial & Chemical Co. 23. Loabiran Co. 24. Iran Carbon Co. 25. Pars Carbon Black Co. 26. Fiber Intermediate Products Co. 27. Poly acryl Iran Co. 7: Coal & Lignite Mining 1. Negin Tabas Lignite Co. 8: Computer & Related Activities 1. Data Processing Iran Co. 2. Iran Argham Co. 3. Informatics Services Corp.

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9: Diversified Industrials (Holdings) 1. Omid Investment Co. 2. Ghadir Investment Co. 3. Bank Melli Iran Investment Co. 4. Civil Pension Fund Investment Co. 10: Electrical Machinery & Apparatus 1. Motogen Co. 2. Iran Transfo Co. 3. Nirou Trans Co. 4. Pars Switch Co. 5. Alborz Cable Co. 6. Bakhtar Cable Co. 7. Tak Cable Manufacturing Co. 8. Iran Cable Manufacturing Co. 9. Jooshkab Yazd Ind. Co. 10. Shahid Ghandi Communication Cable Co. 11. Pars Shahab Lamp Co. 11: Furniture 1. Pardis Investment Co. 12: Industrial Contracting 1. Iran Marine Industrial Co. (SADRA) 13: Investment Companies 1. Industry and Mine Investment Co. 2. Mellat Investment Corporation Co. 3. Sepah Investment Co. 4. National Investment Company of Iran Co. (NICI) 5. Iran Industrial Development Investment Co. 6. Insurance Industry Investment Co. 7. Atye Damavand Investment Co. 8. Buali Investment Co. 9. Behshahr Industries Investment Group Co. Investment Co. 10. Nirou Investment Co. 11. Tosee Melli Investment Co. 12. Saipa Investment Co. 13. Bahman Investment Co. 14: Machinery & Equipments 1. Iran Tractor Manufacturing Co. 2. Pumpiran Co. 3. Technotar Engineering Co. (TTECO) 4. Firouza Engineering Co. 5. Niroumoharekeh Machine Mfg. Co. 6. Aabsal Group Co. 7. Sarma Afarin Industries Co. 8. Iran Combine Mfg. Co. 9. Iran Tractor Industrial Machinery Co. 10. Agricultural Industries & Services Development Co. 11. Heavy Equipment Production Co. (HEPCO) 12. Pars Tousheh Investment Co. 13. Pars Appliance Mfg.Co 14. Pars Khazar Industrial Co. 15. Azmayesh Industrial Factories Co. 16. Butane Industrial Group 15: Medical, Precision & Optical Instruments 1. Kontorsazi Iran Co. (SKI) 16: Metal Ores Mining 1. Gol-E-Gohar Iron Ore Co. 2. Bafgh Mining Co. 3. Damavand Mineral Co.

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4. Iran Zinc Mines Development Co. 5. Chadormalu Mineral & Ind. Co. 6. Maaden Manganese Iran Co. 7. Bama Co. 8. Mines & Metals Development Investment Co. 17: Fabricated Metal Products except Machinary & Equipments 1. Jaam Darou Co. 2. Mashad Packing Industries Co. 3. Joosh va Oxijene Iran Co. 4. Suliran Corporation Co. 5. Mashin Sazi Arak Co. 6. Azarab Industries Co. 7. Lamiran Co. 8. Iran Pack Industries Co. 9. Ama Industrial Co. 18: Motor Vehicles and Auto Parts 1. Iran Khodro Diesel Co. 2. Iran Khodro Industrial Group Co. 3. Bahman Group Co. 4. Saipa Diesel Co. 5. Saipa Co. 6. Zamyad Co. 7. Pars Khodro Co. 8. Motorsazan Co. 9. Lent Tormoz Iran Co. 10. Iran Auto-Parts Industrial Group 11. Niru Moharreke Industrial Co. 12. Charkheshgar Co. 13. Zar Spring Co. 14. Iran Casting Industries Co. 15. Mehvarsazan Iran Khodro Industrial Co. 16. Radiator Iran Co. 17. Khavar Spring Mfg. Co. 18. Indamin Saipa Shock Absorber Mfg. Co. 19. Iran Carburetter Co. 20. Iran Tractor Forging Co. 21. Iran Tractor Foundry Co. 22. Saipa Azin Co. 23. Electric Khodro Shargh Co. 24. Mashad Wheel Mfg. Co. 25. Mehrcam Pars Co. (MCP) 26. Sazeh Pouyesh Co. 27. Nasir Machine Engineering Corporation 28. Vehicle Axle Mfg. Co. (VAMCO) 29. Iran Khodro Investment Development Co. 30. Rena Industrial Group Investment Co. 31. Iran Credit Investment Co. 19: Food Products and Beverages except sugar 1. Pars Minoo Industry Co. 2. Chin Chin Cultivation Complex 3. Mahram Co. 4. Behnoush Iran Co. 5. Behshahr Industrial Co. 6. Naab Industrial Co. 7. Pak Dairy Co. 8. Isfahan Pegah Dairy Co. 9. East Azarbaijan Pegah Dairy Co. 10. Kalber Dairy Co. 11. Khorasan Pegah Dairy Co.

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12. Glucosan Co. 13. Pars Animal Feed Co. 14. Gorji Biscuit Co 15. Keivan Co. 16. Shahdiran Inc. 17. Mazandaran Noosh Co. 18. Dasht Morghab Group Co. 19. Piazar Co. 20. Margarin Co. 21. Salemin Co. 22. Behshahr Industrial Development Corp. 20: Financial Leasing 1. Iran Leasing Co. 2. Rayan Saipa Leasing Co. 3. Industry & Mine Leasing Co. 4. Ghadir Khodro Leasing Co. 21: Other Mining and Quarrying 1. Foundry Sand Preparation Co. 22: Other Non-metallic Mineral Products 1. Razi Pharmacutical Glass Co. 2. Pars Ceram Co. 3. Ardakan Industerial Ceramics Co. 4. Iran Refractories Co. (IREFCO) 5. Pars Refractories Co. 6. Azar Refractories Co. 7. Permit Co. 8. Iranit Co. 9. Azarit Co. 10. Italran Co. 11. Farsit Ahwaz Co. 12. Farsit Doroud Co. 13. Iran China Clay Industries Co. 14. Varziran Co. 15. Ghazvin Glass Co. 16. Glass Wool Company Of Iran 17. Shishe va Gas Co. (SHOGA) 18. Hamadan Glass Co. 19. Abguineh Glass Industries. Co. 20. Saipa Glass Co. 23: Other Transport Equipment 1. Iran Bicycle & Motorcycle Mfg. Co. 24: Paper & Paper products 1. Kaveh Paper Ind. 2. Iran Carton INC 3. Pars Packing Co. 4. Mashad Carton Co. 25: Pharmaceutical & Medicinal Products 1. Jaber Ebne Hayyan Pharmaceutical Co. 2. Aburaihan Pharmaceutical Co. 3. Chimidaro Co. 4. Razak Laboratories 5. Loghman Pharmaceutical Co. 6. Osvah Pharmaceutical Company 7. Darou Pakhsh Co. 8. Iran Daru Co. 9. Daroupakhsh Pharmaceutical Mfg. Co. 10. Temad Co. 11. Darou Pakhsh Pharma. Chem. Co.

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12. Sobhan Pharmaceutical Co. 13. Rouz Darou Pharmaceutical Co. 14. Cosar Pharmaceutical Co. 15. Damloran Razak Pharmaceutical Co. 16. Tehran Sheme Co. 17. Pars Darou Co. 18. Farabi Pharmaceutical Co 19. Amin Pharmaceutical Company Co. 20. Sina Darou Laboratories Co. 21. Alborz Darou Co. 22. Dr. Abidi Pharma Laboratory Co. 23. Tehran Darou Pharmaceutical Co. 24. Iranian Parenteral & Pharmaceutical Co. 25. Exir Pharmaceutical Co. 26. Zahravi Pharmaceutical Co. 27. Alborz Investment Co. 26: Post and telecommunications 1. Iran Telecommunications Co. 27: Publishing, Printing & Reproduction of Media 1. Offset Press Inc.

28: Radio, TV & Communication Equipment 1. Iranian Telecommunication Manufacturing Co. 2. Pars Electric Mfg. Co. 3. Payam Industrial Mfg. Co 4. Jaame Jahan Nema Manufacturing Co. 29: Real Estate and Construction 1. Iran Construction Investment Co. 2. Isfahan Construction Co. 3. Isfahan Saman Gostar Co. 4. Housing Investment Co. 5. Fars Reconstruction & Development Co 6. Abadgarane Iran Tourism and Welfare Complex 7. Tehran Renovation & Construction Co. 8. International Construction Development Co. 9. Sakht Ajand Co. 10. Shahed Investment Co. 11. Azarbayjan Development Investment Co. 12. Toosgostar Investment Co. 30: Refined Petroleum Products & Nuclear Fuel 1. Pars Oil Co. 2. Behran Oil Co. 3. Esfahan Oil Refining Co. 4. Tajhiz Niroye Zangan Co. 5. Oil Industry Investment Co. 31: Rubber & Plastic Products 1. Iran Tire Mfg. Co. 2. Barez Industrial Group 3. Iran Yasa Tire & Rubber Co. 4. Artavil Tire Industrial Complex 5. Sahand Rubber Ind. Co. 6. Shahin Plastic Manufacturing Co. 7. Plastiran Manufacturing Co. 8. Plascokar Saipa Co. 9. Derakhshan Tehran Co. 10. Gazlouleh Mfg. Co. 32: Sugar & By-products 1. Isfahan Sugar Co.

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2. Shahd Sugar Co. 3. Ghazvin Sugar Co. 4. Neyshabur Sugar Co. 5. Shirin Khorasan agro. Industry Co. 6. Sabet Khorasan Ind. & Mfg. Co. 7. Naghshe Jahan Sugar Co. 8. Marvdasht Sugar Co. 9. Lorestan Sugar Co. 10. Hegmatan Sugar Co. 11. Pars Sugar Co. 12. Piranshahr Suger Co. 13. Torbate Jaam Sugar Co. 14. Shahroud Sugar Co. 33: Tanning and Dressing of Leather 1. Melli Industrial Group 34: Technical & Engineering Services 1. Iran Power Plant Projects Managements Co.(MAPNA) 2. Techinco Technical & Corrosion Control Co. 35: Textiles 1. Tous Woolen Co. 2. IranMerinos Co. 3. Borujerd Textile Co. 36: Transportation and Storage 1. Petrochemical Transport Co. 2. Tuka Transportation Co. 3. Islamic Republic of Iran Shipping Lines Co. 4. Tidewater Middle East Co. 37: Wood & Wood products 1. Towlide Fibre Iran (Royal Board Mfg. Co) 2. Bahman Neopan Co. 38: Insurance & pension funding except compulsory Social Security 1. Alborz Insurance Co. 2. Asia Insurance Co. 3. Dana Insurance Co. 39: Oil & Gas Extraction and related services except Surveying 1. North Drilling Co.

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TSE's Brokerage Companies 2010 Services

Brokerage Internet E-mail Web Site Listing Portfolio Mutual Co. Order Consultancy Managing Fund Booking

Aban [email protected] www.abanbroker.com √ √

Agah [email protected] www.agahbroker.com √ √ √ √ Amin Avid www.aminbc.com

Amin Sahm [email protected] www.aminsahm.com √ √ √ Andishe Bartar [email protected] √www.abbroker.ir √

Apadana [email protected] www.apadanabrokering.ir √ √ √

Arg Hooman [email protected] www.argbroker.com √

Arman Tadbir [email protected] www.armanbroker.com √ √ Naghshe Jahan

Armoon Bourse [email protected] www.armoonbourse.com √ √ √

Arya bours [email protected] www.ariabourse.ir Arya novin [email protected] www.badrehsaham.com √ Asel [email protected] www.aselbroker.com

Ati saz Bazar [email protected] www.atibroker.com √

Atieh [email protected] www.atiehbroker.com √ Badreh Saham [email protected] http://www.badrehsaham.com

Bahman [email protected] www.bahmanbroker.com √ √

Bank Eghtessad [email protected] www.novinbourse.com √ √ √ √ novin

Bank karafarin [email protected] www.karafarinbrokerage.com √ √ √

Bank keshavarzi [email protected] www.agribourse.com √ √

Bank Maskan [email protected] www.maskanbourse.com √ √ √ √

Bank Mellat [email protected] www.mellatbourse.com √ √

Bank Melli Iran [email protected] www.bmibourse.com √ √ √ √

Bank Pasargad [email protected] www.pasargadbroker.com √ √ √ √

Bank Refah [email protected] www.refahbroker.com √ √ √ Kargaran

Bank Saderat [email protected] www.saderatbourse.com √ √ √ √ Iran

Bank Saman [email protected] www.samanbourse.com √

Bank Sanat va [email protected] www.smbroker.ir √ √ √ √ madan

Bank Tejarat [email protected] www.bt-broker.com √ √ √

Bank Towse-e [email protected] www.edbibroker.com √ √ Saderat

Bazar Saham [email protected] www.bazarsahambourse.com √ √

Behgozin bourse [email protected] www.behgozinbroker.com √ √ √

Behin Pouya www.behinpouya.com √ √ √

Bourse Bimeh [email protected] www.boursebimeh.com √ √ √ √ Iran

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Borhan Sahand www.bsbourse.com √ √ √ √

Boursiran [email protected] √

Donyaye [email protected] www.dk.rhbroker.com √ Khobreh Donyaye Novin Saham

Etminan Sahm [email protected] www.etminansahm.com

Ebraz [email protected] www.ebrazbourse.com

Farabi (Omran) www.farabibroker.com √ √ √ √

Toseeye Farda [email protected] www.ganjinehbourse.com √ √

Arad Iranian [email protected] www.gbourse.com √ √ √ √

Hafez [email protected] www.hafezbourse.com √ √ √ √

Imen Bourse [email protected] www.imenbourse.ir √

Iran Sahm [email protected] www.iransahm.ir √ √

Isatis Poya [email protected] www.ipb.ir √ √ √ √

Jahan Sahm [email protected] √

Karamad [email protected] www.irankbc.com

Khobregan [email protected] www.khobregan.com √ √ √ √ Saham

Kaspian Mehr [email protected] www.cmibrokerage.com √ √ √ √ Iranian(Bank Sepah)

Mahak Sahame [email protected] √ Sanayeh

Mehr Afarin [email protected] www.mehrbroker.com √ √ √

Meyar Saham [email protected] Www.meyarsaham.com √

Moein sahm [email protected]

Mofid [email protected] www.mofidbourse.com √ √ √ √

Moshaveran [email protected] www.tehranstock.com √ Saham Movahedan www.movahedan.com √

Nahayat Negar [email protected] www.nahayatnegar.com √ √ √

Noandishan [email protected] www.noandishan.ir √ √ √ √ Bazar Sarmayeh

Tamin [email protected] www.roshdbroker.com √ √ √ √ Sarmayeh Novin (Roshd Paydar)

Omid Sahm [email protected] www.omidsahm.com √ √ Omran Fars www. omranfars.com √ √

Ordibeheshte [email protected] www.oibroker.com √ √ √ Iraniyan

Pars Gostar [email protected] www.parsbourse.com Khobre

Pars [email protected] www.parsnem.com √ √ Nemoudgar

Parsiyan info@pim_co.com www.parsianbroker.com √

Rahbord [email protected] www.rahbord-investment.com √ √

Rahnamaye [email protected] www.rahnamabroker.com √ √ √ Sarmayegozaran

Razavi [email protected] www.rbc.ir √ √

Saba Tamin [email protected] www.sababroker.com √ √ (Kimia sahm)

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Saham Barez [email protected] www.sahambarez.com √

Saham Gostaran [email protected] www.sahamgostaran.com √ Sharg

Saham [email protected] www.sahampajoohan.com √ √ Pajoohan Shayan

Saham Pouya @yahoo.compouyabroker http://www.sahampouya.com √ √

Sahm Andish [email protected] www.sahmandish.com √

Sahm Ashena [email protected] www.abco.ir √ √ √ √

Sahm Azin [email protected] www.sahmazin.com √

Sahm Yar [email protected] www.sahmyar.ir √

Sarmayegozari [email protected] www.nibi.ir √ √ Melli Iran

Sarmayeh va [email protected] www.ckbroker.com √ √ Danesh

Shakhes Saham [email protected] www.shakhessaham.com √

Simabgoon [email protected] www.simabgoonbourse.com √

Tadbirgaran [email protected] www.tadbirbroker.com √ √ √ Farda

Tadbirgar [email protected] www.tadbirgar.com √ √ Sarmaye

Tahlilgarane [email protected] www.basirbourse.com √ √ Basir

Towse-e Sahand [email protected] http://sd.rhbroker.com

Towse-e [email protected] www.tsd-broker.co √ Sarmaye Donya

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