in the name of god...dr. bahram sobhani deputy chairman & managing director representing imidro...
Post on 15-May-2020
1 Views
Preview:
TRANSCRIPT
In the name of God
Produced by:The Corporate Planning and Investment Department
in Cooperat ion wi th the Publ ic Relat ions Department
Financial Highlights ..................................................................................................................................5Message of the Managing Director ............................................................................................................6Board of Directors ................................................................................................................................7Report of the Board of Directors ................................................................................................................8Senior Managers ......................................................................................................................................9Our Capital ...........................................................................................................................................10Our Shareholders ..................................................................................................................................11Organizational Chart ...............................................................................................................................12A Glance at the Global Steel Production Performance ............................................................................14
Introducing Mobarakeh Steel Company (MSC) ...............................................................................15Profile .....................................................................................................................................................16Mission ...................................................................................................................................................16Vision .....................................................................................................................................................16Organizational Values ............................................................................................................................16
Performance ........................................................................................................................................19Production Performance ..........................................................................................................................20Exports ................................................................................................................................................... 23Quality Control ...................................................................................................................................... 24Expansion Projects ................................................................................................................................26Management Information System ...........................................................................................................29Technology .............................................................................................................................................30Human Resources ..................................................................................................................................31Safety & Occupational Health ..............................................................................................................32Corporate Social Responsibilities & Environmental Concerns ...............................................................34Club History ............................................................................................................................................38Organizational Excellence .......................................................................................................................40MSC Excellence Road Map ...................................................................................................................41Certificates & Awards ............................................................................................................................42Financial Performance ............................................................................................................................45Financial Ratios .....................................................................................................................................45Sales Performance.................................................................................................................................47Shares Performance ..............................................................................................................................48Risk Management ..................................................................................................................................48Investments ............................................................................................................................................49
Financial Statements ...........................................................................................................................51
Table of Contents
Financial HighlightsNet Salesmillion IRR
Capitalmillion IRR
Long-term Investmentsmillion IRR
Gross Profitmillion IRR
Financial Deptmillion IRR
Total Assetsmillion IRR
105،000،00095،000،00085،000،00075،000،00065،000،00055،000،00045،000،00035،000،00025،000،00015،000،0005،000،000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
0
35,000,00030,000,00025,000,00020,000,00015,000,00010,000,0005,000,000
0
45,000,00040,000,00035,000,00030,000,00025,000,00020,000,00015,000,00010,000,0005,000,000
0
45,000,00040,000,00035,000,00030,000,00025,000,00020,000,00015,000,00010,000,0005,000,000
0
180,000,000160,000,000140,000,000120,000,000100,000,00080,000,00060,000,00040,000,00020,000,000
0
2013-2014
2013-2014
2013-2014
2013-2014
2013-2014 2013-2014
2014-2015
2014-2015
2014-2015
2014-2015
2014-2015 2014-2015
The Iranian fiscal year ends on 20 March.The rate of exchange was $1 / IRR27,994 at the end of the period.
Managing Director’s Statement
Dear shareholders:
I am delighted to present the annual report and financial statements of Mobarakeh Steel Company (MSC) for fiscal year ended in March 20th, 2015. During the reporting fiscal year, Iran’s economy experienced relative calm and stability, partly due to some external factors. The government was successful in bringing inflation under control and there was also a certain degree of success in controlling liquidity. The oil sector, which is the main source of Iran’s hard currency earnings, enjoyed relative growth. However, in spite of the growing signs of recovery, recession is not yet over and the sanctions against Iran remained enforced.
Yet, despite such economic challenges, I am pleased to announce that MSC has performed exceptionally well during the reporting fiscal year. Although our net profits decreased from IRR30,887 billion in 2013-14 to IRR23,760 billion in the following year due to weak steel market demand, however, sales volume experienced an increase of 2.6% reaching 5.8 million tons and our sales revenues rose from IRR97,278 billion in 2013-14, to IRR101,999 billion during the following period. Exports also enjoyed a staggering rise of 45% in comparison with the previous year, reaching 1.48 million tons during the reporting fiscal year.
These are only some indicators that clearly reflect upon our strong and healthy performance during the reporting fiscal year. Being able to demonstrate such strong performance in light of the challenges imposed by the ongoing recession and the sanctions enforced against Iran, is arguably a major accomplishment. Thanks to our profound knowledge of the domestic market, our sound long-term strategies as well as our capability to adapt to turbulent economic developments, we have been able to overcome the aforementioned challenges. I have no doubt that once the sanctions are lifted in the near future, we shall be able to demonstrate an even healthier performance.
To conclude, I would like to take this opportunity to thank our valued customers and our shareholders for their faith in our abilities. And last but not least, I shall also thank my dedicated and hardworking colleagues who support me in achieving company goals.
Dr. Bahram Sobhani
Annual Report 2014-2015 7
Board of Directors
Dr.Mehdi KarbasianChairman
Representing Yazd Province Investment Company
Mr. Hamidreza AzimiyanBoard Member
Representing Kerman Province Investment Company
Mr. Mohammadreza AyatollahiBoard Member
Representing Sadr Tamin Investment Company
Dr. Gholam Hossein Taghi Nattaj Malek Shah
Board MemberRepresenting Mehr-e Eghtesad-e Iranian
Investment Company
Dr. Bahram SobhaniDeputy Chairman & Managing Director
Representing IMIDRO
Mobarakeh Steel Company 8
Report of the Board of DirectorsDuring the reporting fiscal period, by adopting combined strategies, effectively managing its expenses, implementing improvement projects, utilizing a portion of the expansion projects, the Mobarakeh Steel Company was able to successfully sustain its position within the domestic and global markets.
Some of our important achievements during 2014-15 are as follows:
• Sustaining our domestic market share.• Boosting crude steel production levels by
4% in comparison with the previous year.• Increasing sales revenues by 9.4% in
comparison with MSC’s plans and by 11% in compared to the previous year.
• Increasing the production volume of special and high quality products by 42%.
• Exporting approximately 1.574 million tons of steel – a 45% boost in comparison with the previous year.
• Achieving consecutive records within all production lines and in product transportation.
• Increasing pellet production by 1%, sponge iron production by 9%, slab production by 2%, hot coil production by 3% and cold coil production by 7% compared to the prior year.
• Reducing energy consumption levels of electric arc furnaces by 600 kilo watts per one ton of melt.
• Reducing water consumption according to plan and in comparison with the consumption levels in the previous year.
• Transporting over 11.2 million tons of iron ore and pellets, demonstrating a 17% increase in comparison with the 2013-14 period.
• Improving employee the Quality of Working Life (QWL) and job satisfaction levels from 63.2% to 69.2%.
• Reducing accident repetition instances from 2.966% to 1.191%.
• Reducing accident severity from 0.077 to 0.012.
• Launching operations on furnaces 2, 7 while continuing operation on furnace 8 for the purpose of expanding the under roof capacity to 7.2 million tons/annum.
• Completing operations on launching the quality steel production project (RH-TOP Unit).
• Completing operations on Module B of Shahid Kharrazi Direct Reduction Unit.
• Launching car dumper 2.• Launching several new projects including
energy and fluids expansion projects such as the Saba Man-made Lake, wastewater treatment facilities as well as expansion of the power network within the MSC and Saba Steel sites.
• Launching an under roof 110 ton crane.• Launching LF6.• Finalizing the improvement projects of
furnaces 2 and 7 in the Steelmaking Unit. • Launching the briquette making at the Direct
Reduction Unit.• Constructing a dumping area for the
Stacking & Reclaiming Unit.• Replacing the instrumentation systems
of furnaces 1 and 2 with an emphasis on localization.
• Adjusting sheet lines 3 and 4 at the Cold Rolling Unit.
• Obtaining the main requirements of equipment, parts and raw material, etc.) in spite of the severe international sanctions enforced against Iran.
• Applying engineering processes in order to localise the manufacturing of parts.
• Obtaining approximately 75% of the required spare parts and machinery via domestic suppliers and manufacturers as a step towards localisation.
• Developing technological infrastructure and integrated information system IS-SUITE by 83%
• Designing and manufacturing the special S315MC, HE360D and SPFC390 steels to be used as strengthening parts at the auto industry.
• Designing and manufacturing Grade DC05 used for vehicle body parts.
• Designing and manufacturing Grade S500MC used for manufacturing trailer chacies used by Bahman Group.
• Designing and manufacturing Grade SAE1030 steels applied for special purposes.
• Designing and manufacturing Grade TPC200 high enduring cold rolled sheets used by the building construction industry.
• Registering a capital increase by 39% from IRR36,000 billion to IRR50,000 billion.
Annual Report 2014-2015 9
Senior Managers
F. ArzaniTechnology Deputy
M. NikfarHuman Resources & Organizing Deputy
M. Arbabzadeh Operation Deputy
M. TavalaiyanPurchasing Deputy
A. H. Naderi Economic & Finance Deputy
M. AkbariSales & Marketing Deputy
• Obtaining the Asian Superior Knowledge Organizations’ Award (MAKE) during the 1390 (2011-12) - 1392 (2013-14) periods.
• Cooperating with over 90 scientific and research societies both on provincial and national levels.
• Creating and maintaining 1,600 square meters of green space by growing low water consuming vegetation.
• Transferring the technical know-how for manufacturing 1,172 thousand tons of slab to Hormozgan Steel Company.
A.SaeedbakhshProjects Execution Deputy
Mobarakeh Steel Company 10
Our CapitalThe capital of Mobarakeh Steel Company (MSC) was initially only IRR10 million, yet the mentioned capital has increased on several occasions since that time, reflecting upon the growth of this company over the years. The capital of MSC, currently stands at IRR50,000,000 million.
The following line chart demonstrates this company’s capital increases since 2001.
Capital Increase Trendmillion IRR60,000,000
40,000,000
20,000,000
0
Apr
200
1
Jan
2003
May
200
5
Jun
2005
Feb
2006
Jun
2011
Jan
2014
Feb
2015
Annual Report 2014-2015 11
Our Shareholders The MSC is mainly owned by large corporations with a strong financial backing. The following pie chart demonstrates our shareholder composition.
Provincial Investment Co.: 30.19%
IMIDRO: 17.20%
Mehr Eghtesad Iranian Investment Co.: 13.66%
Social Security Investment Co. (Public J.S): 10.21%
Bank Refah Kargaran: 4.33%
Bank Tejarat: 2.79%
Goharan Omid Development Management Co.: 2.54%
Banks’ Personnel Pension Fund: 2.18%
Villagers Social Insurance Fund Institute: 1.79%
Civil Pension Fund: 1.69%
Personnel Preferential Shares: 1.53%
Social Security Organization: 0.80%
Other Shareholders: 11.09%
Mobarakeh Steel Company 12
Organizational Chart
Annual Report 2014-2015 13
Mobarakeh Steel Company 14
A Glance at the Global Steel Production PerformanceThe following chart reflects upon the global steel production levels since 2005.
Note: Global crude steel production reached 1,637 million tons in 2014, of which Iran’s share was 14.3 million tons.
The following pie chart demonstrates the production share of major crude steel manufacturers within the globe.
Countries’ Quota from Crude Steel Production in 2014-15
2,000
1,500
1,000
500
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Global Steel Productionmillion tons
China: 50%
Japan: 7%
CIS: 7%
India: 5%
South Korea: 4%
European Union: 10%
Africa: 1%
America Continent: 14%
Iran: 1%
Middle East excluding Iran: 1%
Introducing Mobarakeh Steel Company (MSC)
Mobarakeh Steel Company 16
ProfileHistorical BackgroundEsfahan’s Mobarakeh Steel Company which is located in the historic city of Esfahan, produces all kinds of flat steel products ranging in thickness from 0.18mm to 16mm. Its annual capacity is 5 million tons of steel products. This complex has been utilized in 1993 with the charter capital of IRR10 million and currently with a 50,000 billion Rial capital and 14,746 employees, it is one of the most powerful industrial units of the Country. The Italimpianti Company has carried out the initial design of the Complex.
The production of hot rolled products in 1386 (2007-08) was over 5 million tons. This achievement was due to the increase in the ability of the personnel in operating the machinery, as well as precise planning and on time logistics. The production of cold rolled products in 1386 (2007-08) was approximately 1.5 million tons. This means that not only supplying the domestic requirements, but also pave the way for exports or supplying the downstream requirements of this product Currently, the Company products are as follows: hot rolled products, cold rolled products, coated products such as; galvanized, tinned and pre-painted products.
Following achieving the nominal production levels, the MSC decided to further increase production its output in order to answer to the ever increasing domestic and international market demands. This was to be achieved by optimising the use of existing machinery and equipment and implementing expansion projects which were financed by sales revenues and financial facilities. The first phase of expansion projects commenced in 1385 (2006-07) following the merger of the SABA CSP and the MSC. This increased the company’s nominal production levels to 4.9 million tons/annum and by the implementation of several other expansion projects such as:
• Phase 1 Under Roof Expansion Project • Phase 2 Under Roof Expansion Project
(Shahid Kharrazi)• Saba Steel Expansion Project• Hormozgan Steel Company production
levels
Once the aforementioned expansion projects are implemented, MSC is expected to reach the capacity of 10.5 million tons/annum by 1394 (2015-16).
MissionPlaying a pivotal role in the Iranian industrial economic and social development upgrading the steelmaking technology as a world class organization.
VisionPioneering in the Iranian steel industry by maintaining a minimum 45% share in the domestic steel production output, as an organization with excellence in economic production, quality, technology, indigenization, and continious presence in the world market.
Organizational ValuesAt Mobarakeh Steel Company, our main values include:
1) Islamic and humane values. 2) Safeguarding the interests of our colleagues, customers and other beneficiaries.3) Carrying out safe, high quality and on time work.4) Continuous excellence and adjusting the consumption model.5) Encouraging earning and innovation, organisational participation as well as teamwork.
Performance
Mobarakeh Steel Company 20
Production PerformanceDuring the reporting fiscal period, we manufactured 5,845 thousand tons of finished products. The following bar chart provides details of our production performance in the past two years:
Hot Products (including saba)
Cold Products
Coated Products
Other Products
Production
Thousand Tons
4500
4000
3500
3000
2500
2000
1500
1000
500
0
2014-152013-14
Annual Report 2014-2015 21
Products Flow Diagram in 2014-15All figures are in thousand tons
Mobarakeh Steel Company 22
Annual Report 2014-2015 23
ExportsMobarakeh Steel Company began to export its products from the very beginning of the commencement of its operations. Furthermore, while penetrating the international markets, the MSC aims to acquire its required hard currency for financing our expansion projects and the purchasing of spare parts and machinery, from export revenues. The following line chart demonstrates MSC’s export performance during the reported period:
738
314
658
405 52
3 612
1,01
9
1,47
5
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
Exportsthousand tons
Note: During the reporting fiscal period the MSC exports increased by staggering 45% in comparison with the previous year.
The following list outlines the countries which have so far received our products:
• Belgium• France
• Spain • ItalyGeorgia •
• KuwaitQatar • • UAE
• OmanSaudi Arabia •
• IraqJordan •
Armenia•
Mobarakeh Steel Company 24
Quality ControlProducts Quality ControlIn addition to the inspection of the products produced by the complex and analytical report for various areas of production, inspection of scrap iron inflow to the complex, participation in determination of acceptance range for raw material required by the iron production, etc. The significant activities of the quality control in 2007/08 were as follows:
1. Preparation of procedures, training and participation in commissioning the mechanized systems in steel production and continuous rolling area2. Use of mechanized system in steel production and continuous rolling area3. Systematic transfer of information from the hot rolling quality control monitoring to the through-process 4. Cooperation and coordination in production of API special products, DQ quality galvanized sheets and other special products5. Preparation and compilation of complete atlas of acid wash products defects6. Implementation and use of administration automation system in quality control units
Annual Report 2014-2015 25
AchievementsSome of our achievements so far in reference to product quality include:
• Obtaining the first rank in the National Productivity & Organizational Excellence Simin Award as well as the first rank in the National Quality Award for the galvanized products;
• O b t a i n i n g t h e I S O 1 4 0 0 1 : 2 0 0 4 Environmental Management System Certificate from the DNV Company for the Saba Steel Making and Continuous Rolling Units;
• Organizing successful internal and external audits on the OHSAS 18001:2006, ISO114001:2004, ISO9001:2008, ISO10015 Quality Management and Professional Hygiene and Environmental Certificates without any significant discrepancies as well as renewing the said certificates for another year and for the very first time, obtaining the ISO14001:2004 Environmental Management Certificate for Saba Steel Making and Continuous Rolling Units;
• Implementing a domestic customer oriented system which focuses on active customer accountability processes, has improved the management of accountability toward domestic customers. This system has mechanized the process of customer identification and definition of 4,050 indexes within 150 units/process and manages customer satisfaction;
• Obtaining the first rank in the National Productivity & Organizational Excellence Simin Award for the eighth consecutive year;
• Obtaining the Two Star Eshtehard Award for the galvanized products.
Mobarakeh Steel Company 26
Expansion Projects
Annual Report 2014-2015 27
Objectives In order to respond to its rapidly developing industries and to the ever increasing domestic demand for steel products, Iran needs to expand its steel production output.
Based on MSC’s integrated plan for 2025, company expansions shall occur within two phase. Production targets of 12.5 million tons/annum shall be reached in the first phase and 18 million tons/annum in the second phase.
Hence, as Iran’s largest producer of flat steel products, the MSC’s main objective for investing in a number of expansion projects is to contribute toward government’s plans for boosting the Country’s steel production output. Other objectives for engaging into the above expansion projects include:
• Increasing profitability• Implementing the strategies of the Ministry
of Mines & Industry• Boosting our compatibility within the
domestic and international markets• Increasing Iran’s market share of final
products• Optimization of our potentials• Increasing product variety• Increasing liquidity
Expansion ProjectsThe MSC has a number of expansion projects which should ultimately help this company reach the aforementioned objectives. The main expansion projects of MSC are as follows:
Steel Making Expansion ProjectOnce completed this project should increase the current melt production by 1.8 million tons/annum. Hence, production capacity of moulten steel shall reach 7.2 million tons/annum.
In short, this project aims to:
• Increase production capacity• Improve product quality by constructing a
degassing station• Create added value in steel products• Assert a stronger market presence due to
offering better quality products• Take advantage of the existing infrastructure
Energy & Fluids ProjectThe main objective of this project includes providing services to the main expansion projects of the MSC. These services are gas supply, oxygen production, mechanization of transportation systems, electrical power network, fluids supply network etc.
SABA Steel Making & Continuous Rolling Expansion ProjectThis project is expected to increase the current production capacity of the SABA Steel Making Unit by an additional 900 thousand tons/annum. Hence, total production capacity should reach 1.6 million tons/annum. This project aims to:
• Improve product quality and production quantity• Assert a stronger market presence• Complete the sheet production process by using the continious rolling method
Mobarakeh Steel Company 28
Sefid Dasht Steel Making ProjectLocated 70 km from the town of Mobarakeh, this project which is to be implemented via MSC, shall have an annual capacity of 800 thosand tons. The main objective of this project is to boost production capacity of crude steel within two groups of MSC, which currently has a 65% stake in this project.
Future Expansion Projects • Constructing a Hot Rolling Unit (in MSC)• Expanding Hormozgan Steel Company capacity from 1.5 million tons/annum to 3 million tons/annum.
• Constructing a Peletizing Unit in Hormozgan Steel Company
Sangan Expansion ProjectThis project has a 5 million ton/annum capacity and includes pelletizing and concentrate units. This project also aims to complete the current production chain.
Investing in Novin Electrode Ardekan Company This plant which is currently under construction, is to supply Iranian steel manufacturers, shall manufacture graphite electrode. Its capaity is to reach 30 thousand tons/annum and has the potential of further expansion, reaching a 45 thousand tons/annum capacity.
Annual Report 2014-2015 29
Management Information SystemAt Mobarakeh Steel Company, Management Information System (MIS) was introduced from the very beginning at the design stage and along with the installation of industrial equipment. MIS covers main company processes such as sales, product design, production operations and planning, laboratories, warehousing, product delivery as well as support processes such as product management and purchasing accounting, finance, human resources, maintenance and repair, technical control and management systems. The sheer dependency of the main and support processes of the Company on MIS, has emphasized the vital importance of such systems and the key role they play on the operation of the organization in general. These systems which are founded upon a reliable and secure infrastructure which includes, the computer centre and hardware, are at the disposal of the users. The general specifications of MSC’s MIS are stated below:
• Integration• Knowledge based • Online • Accessibility• Reliability• Full coverage of company processes• Security on difference layers
During the past decade, MIS has place on high on its agenda upgrading and expanding its information system infrastructure both in terms of hardware and software. Some such measures include:
1. Expanding & upgrading information systems: here, the old systems are redesigned and having taken advantage of the latest technologies, information systems are designed to cover previously nonexistent processes such as: customer relations management, supplier relations management, management support systems (including strategic, process and knowledge managements, etc.). 2. Developing IT infrastructure: here, the hardware systems including the mainframe and data centre are upgraded.3. Expanding integrated network: this network, which is accessible to all MSC users, has been designed in accordance with the latest technical design standards.4. Installing management reporting infrastructure: having adopted OLAP and Data Warehouse, this system enables the user to analyze data and provide analytical and management reports. 5. Installing electronic organization software:
this software has been designed and installed in response to correspondence requirements. This system is capable of supporting forms and processes. 6. Installing information security management system: this system which conforms to ISO27001 has been installed, in order to ensure of data security and integrity. Processes such as risk management, IT assets, continuous business management, user accessibility management, etc. are also covered by this system.
AchievementsMain achievements during the reporting financial period include:
1. Developing integrated IT systems in 70 projects in the numerous fields such as product realization, production planning and control, sales and customer management, investments and finance, technology and development, strategy and organizational transition, corporate social responsibilities, as well as information technology.2. Installing modern human resource, purchasing and supplier management systems. 3. Fully utilizing the Data Centre.4. Expanding the IT infrastructure in Oracle for the purpose of upgrading the integrated IT systems. 5. Developing the ESB for the purpose of supporting modern system networks with the existing data infrastructure.6. Expanding the network infrastructure and its related services.
Our Future PlansSome of our plans for the future include:
1. Completing the IT systems infrastructure and installing new systems within all process sectors. 2. Designing, developing and installing the Oracle BPMS infrastructure in order to support the processing systems.3. Expanding the MPLS network in order to support external communications. 4. Installing an IT services management system based on ITIL.5. Expanding the existing data centre in order to boost its processing and storage capabilities. 6. Carrying out research on introducing a support site.7. Designing and installing a process terminal and responding to SOC.8. Designing and introducing a network operation centre (NOC)
Mobarakeh Steel Company 30
TechnologyCurrent Technologies Applied by the MSCThe MSC currently uses the direct reduction route (Midrex) and electric arc furnaces, continuous casting and converting into hot and cold rolled products, galvanized, pre-painted and tinned sheets through using iron ore.
Initial Technology SuppliersItalimpianti, Kobe Steel, Ilva and other European companies along with Iran Engineering International Company (IRITEC) and the companies and contractors which produce construction equipment and metal skeletons and install internal equipment, are among the companies that provide the MSC with its supply requirements.
The Production LinesThe production lines of flat steel products including raw material storage yard, lime calcinations plant, direct reduction plant, steel making treatment lines (VOD-DH) continuous casting, slab finishing, CSP (Saba), hot rolling mill, hot finishing mill, pickling line, galvanizing lines, painting, and tinning line, all take advantage of the above technology and suppliers.
Strategies Adopted & Measures taken Regarding the Application & Upgrading TechnologyAt Mobarakeh Steel Company, we take advantage of the latest, up-to-date technologies in order to remain an agile organization and to retain our market share in the increasing competitive global and domestic steel markets. Thus, technology is used as a means to reduce production time span, further optimise personnel performance, improve product quality, reduce overhead costs, achieve longer machinery life span, and optimise energy consumption as well as market flexibility.
In order to identify the best technologies to serve the above-mentioned purposes we take advantage of various methods such as Technology Trend, consulting, self-declaration of manufacturers, visiting specialized exhibitions, core research, etc.
In selecting new technologies, we assess the economic and technical impacts of any given technology on our projects. A particular technology is only selected if it is found to be useful in upgrading and improving the statuesque. In addition, in order to improve our performance
in management and upgrading technology, we have placed the Integrated Technology management System on our agenda and have developed our Technology Management Model, within the stages of identification, selection, launch, protection and learning.
Some of the main measures taken during the reporting period in reference with upgrading existing technologies include:
• Launching the de-sulfurising system at the melt section of the Steelmaking Unit.
• Launching a RH-TOP station at the Steelmaking Unit, in order to manufacture high quality steels.
• Establishing the cold slag processing system and molten slag processing system within the Steelmaking Unit.
• Expanding and upgrading the technology and IT infrastructure by replacing the Adabas and Natural infrastructure with Oracle.
• Applying virtual technologies at the Data Centre in order to optimise the use of hardware and software.
• Upgrading MSC’s network and internet security.
• Launching ladle furnace 3.• Automating car dumper 2. • Installing new thermal recuperates in order
to store more energy within mega modules. • Installing a visual sizing system upon the
discs as a means to improve the current sizing system.
• Installing a grinding machine in order to enhance the quality of sheets.
• Replacing the H16 Hydraulic Coiler System with the Immolation System as a means to improve equipment performance.
• Installing the Coating Gage which is a sheet thickness measuring system within the Galvanize Unit.
• Upgrading the Pelletizing Automation from S5 to PCS7, in order to enhance process control and to further improve quality.
• Using Lance KT on the furnace bodies to inject oxygen in order to improve melt quality.
Annual Report 2014-2015 31
At Mobarakeh Steel Company, we consider our human resources as our most important of assets. Hence, we pay a special attention in the selection of suitable staff with the right qualifications. The following pie chart demonstrates the composition of our personnel by academic background.
Human Resources
Mobarakeh Steel Company 32
Ph.D & Masters Degree: 166
Training In order to ensure human resource development, we constantly invest on the training of our staff. This helps enhance their existing knowledge and to keep them up-to-date with the latest developments in their specialized fields of activity, which ultimately boosts organizational productivity. Hence, during the reporting period alone, we provided 1,019,836 man/hours of training to our staff.
Other Human Resource Related Measures taken during the Reported PeriodSome of the main measures taken by this company in reference with human resource development and productivity during the previous year include:
• Planning and implementing long-term travelling programs of the employees.
• Organising a commendation ceremony of the retired employees of the MSC.
• Establishing a sports affairs research committee for the purpose of improving the health of the employees by ingraining sports among the them and making sports related affairs an matter.
• Implementing a sports requirement measurement of the employees and rendering applicable solutions.
• Signing a contract with sport centres within the province.
• Organising sports tournaments among employees.
Education Levels of Personnel
Below High School Diploma 3,637
High School Diploma: 8,792
Technician: 949
Bachelors Degree: 1,389
Safety & Occupational HealthSafetyAt Mobarakeh Steel Company we aim to safeguard our personnel’s health against illnesses in general and work-related accidents and we believe that this objective can only be achieved by promoting a safety culture, where there is an enhanced awareness safety procedure among employees, where compliance to safety regulations becomes a part of their everyday lives and where the organization is able
Annual Report 2014-2015 33
to rapidly and effectively respond to emergency situations. The MSC’s Safety & Firefighting Unit aims to carry out its duty towards enhancing personnel safety by implementing four main approaches:
1. Safety and risk management: here, the OHSAS 18001 Safety Management & Professional Hygiene System, where all potential hazards and dangers at the workplace are identified and assessed and safety inspections on event evaluations, drafting of safety instructions, trainings and responding to emergencies, personal safety gear, auditing and assessing employee safety performance is carried out. Furthermore, in order to assist the contractors improve their safety performance; they are informed of and are required to comply MSC’s HSE Plan prior to their work commencement. They are then audited every three months.
2. Event management: this approach entails accident registration and analysis, were all accidents are registered and analysed in order to prevent their reoccurrence.
3. Rapid emergency response: all production units are equipped with automatic fire alarm and fire extinguishing systems.
4. Training, improving safety awareness and promoting a safety culture: in this context, a safety training committee has been established. This committee is responsible for creating an
employee safety profile. Furthermore, in order to promote a safety culture, numerous training sessions seminars and meetings are organized and brochures are distributed among employees and safety instructions are posted on notice boards throughout the Company.
Occupational HealthOccupational health is responsible for preventing and diagnosing occupational diseases, carrying out first aid for emergency patients, and if necessary, transferring them to specialized health centres as well as identifying and reducing pollutants of the working environment.
The main activities of this department are divided into three main categories, namely:
1. Medical Surveillance: By providing periodical examinations, in order to diagnose occupational diseases and to identify physical and mental state of employees (Fitness to Work).
2. Medical Treatment:Offering emergency medical treatment for work related injury. The objective here is to offer the necessary initial treatment prior to the transfer of patients to the specialized health centre.
3. Industrial Hygiene Activities: These activities, which are carried out by the Professional Health Centre, include identifying and measuring the damaging effects of the working environment on people. Other activities of the Professional Health Centre include supervising medical insurance services offered to employees.
This centre carried out the following tasks during the reporting period:
• Launching a Preventative Unit which is one of a kind and an example to be followed by Iran’s other industrial units.
• Introducing new para-clinic systems as a means to improve the quality of periodical medical examinations and tests.
• Upgrading the paperless software.• Participating in the maintenance and
development of the OHSAS 18001 Safety Management & Professional Hygiene System and ISO9001, etc.
• Upgrading the employee health awareness system.
Mobarakeh Steel Company 34
Corporate Social Responsibilities & Environmental ConcernsWe firmly believe that all profit making entities especially large corporations have a moral duty toward societies from which they emerge and flourish. Thus, we aim to create a balance between our corporate missions and project objectives, while respecting social and environmental issues. This we intend to achieve by committing ourselves towards preserving the environment and providing financial assistance toward social entities.
The table below demonstrates our performance in terms of offering financial aid to charities and other social entities during the reported period:
MSC’s Donations to Society by Sector (IRR)
52,381,818,883 Cultural
26,966,100,000 Social
3,350,000,000 Hygiene
570,000,000Charities
21,510,000,000 Civil
1,300,000,000Education
2,030,000,000 Religious
In addition to the aforementioned donations the MSC has contributed towards the construction of the following projects:
• Intercity Red Crescent relief station.• Esfahan Grand Payer Hall. • A cemetery dedicated to martyrs.• Water treatment facilities for Mabarakeh
and Lanjan towns.• Renovation of Mohammad Rasoulallah
Hospital emergency section.• Mobarakeh-Baharestan Metro.• Renovation of Esfahan-Shiraz Highway
Police Station.
Annual Report 2014-2015 35
Mobarakeh Steel Company 36
Pelletzing Unit’s Thermal Energy Consumption Performance
24.0
1
25.21
18.8
3 21.9
2
18.3
3
16.5
5
16.8
7
16.4
6
16.4
4
14.8
0
14.1
6 16.5
16.6
8
14.3
2
13.2
5
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
Ther
mal
Ene
rgy
Nat
iona
l Sta
ndar
d
Pelletizing Unit’s Electrical Power Consumption Performance
50.7
5
50
43.5
8
42.3
2
39.5
7
39.1
4
37.8
5
36.6
0
34.8
3
35.3
1
34.1
6
36.0
0
36.5
5
33.6
8
32.2
8
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15 E
lect
rical
Pow
erN
atio
nal S
tand
ard
KW
H /
Ton
NC
M /
Ton
Our Environmental PerformanceAs a socially responsible entity, we aim to minimise the discharge of pollutants into the environment and to recycle industrial waste as much as possible. We also aim to minimise energy consumption, whilst at the same time, create new green spaces both within our immediate, surrounding environment and within the whole province.
Energy Saving MeasuresAs mentioned earlier, we constantly strive to reduce our energy consumption levels which lead to the discharge of less pollution into the environment. In this context, we established the Energy High Committee in 1377 (1998-99) which is a policy making body in identifying reliable means of energy supply, reducing energy consumption in comparison with our competitors in order to help preserve the environment, to reducing finished costs and
to installing the Energy Management System. In order to achieve the above objectives, audits have been carried out within all production and support units. These audits have helped identify points where energy is wasted. In addition, energy consumption management trainings sessions have been given to personnel at all levels.
Such energy saving measures have been categorised and prioritised. The first priority is the implementation of low cost projects that introduce new methods which lead to the optimization of energy consumption. The second priority is medium cost projects that help reduce energy consumption and finally, high cost projects requiring change of processes or machinery.
The following charts demonstrate our performance with regard to energy consumption reduction in the previous few years:
Annual Report 2014-2015 37
Ele
ctric
al P
ower
Nat
iona
l Sta
ndar
d
Note: These charts clearly show that our energy consumption levels are well below national standards and this trend is ongoing.
Hot Rolling Unit’s Electrical Power Consumption Performance
113.
9105
105.
1
101.
9
94.8
82.0
80.1
78.2
80.6
79.4
78.9
78.4
76.0
77.6
78.0
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
Main Environmental Achievements during the Reporting Period
• Obtaining a certificate for participating in climate change program issued by the Global Steel Society.
• Effectively reducing consumption whilst minimising waste. In this regard, we are looking for means to recycle our slag waste and selling it in the market.
• Being recognised by the Environmental Protection Organisation as the Clean Industry.
• Due to the scarcity of water, we have managed to treat our industrial waste water in full. The result of which, is extracting less from the local river, whilst increasing production.
• Constructing a new industrial water treatment facility in the Steel Making and Saba Rolling Unit.
• In fulfilling its environmental commitments, the MSC had signed a recycling contract under the supervision of the Environmental Organization in 2012. This contract was enforced during the reporting period.
• Investing in and designing 12 new dust collectors as a means to further reduce the emission of dust into the atmosphere.
• Providing IRR1,200 billion in funding towards a sewage treatment project which is enforced with all of the local cities and towns.
NC
M /
Ton
Mobarakeh Steel Company 38
Club History
Annual Report 2014-2015 39
In 1953, a club by the name of “Shahin” was founded in Esfahan by the late Mahmoud Hariri. In 1967, due to the liquidation of the Central Club in Tehran, the Club which became the top sport clubs in the city of Isfahan changed its title to Sepahan. As of 1379 (2000/01), this club was supported by the Sepahan Cement factory and its title was once again altered into Siman Sepahan Cultural & Sports Club.
Following large-scale lobbyings by the provincial authorities and the agreement reached with the Mobarakeh Steel Company, it was decided in the year 2000, that the existing and well organized Foulad Mobarakeh Cultural & Sport Club became the sponsor of the above mentioned Siman Sepahan Cultural & Sports Club and continued its sports activities under the new name of Foulad Mobarakeh Sepahan Sport & Cultural Club.
By 1390 (2001-12), this club had already become involved in numerous sports activities including football, handball, footstall, karate, chess, swimming for men and women, basketball, judo, shooting for veterans and the disabled, volleyball, taekwondo, table tennis, gymnastics, wrestling, athletics, mountain climbing and karate for men as well as badminton.
It is noteworthy that this club was awarded the title of the Premiere Club in the year 2000 by the Physical Education Organization of the Islamic Republic of Iran and two years later, this club became recognized as the elite club by the sports societies and the press, at the Elite Festival. In 1382(2003/04), this club became the very first township club to win the third professional league football championship in Iran and two years later; this club became the premiere club of Iran in handball, not to mention that this club has 13 championship leagues in its portfolio. Furthermore, in 2011, it earned the championship title in the world clubs competitions in Turkey.
In addition, in 2007, due to its outstanding performance in football, for the very first time in Iran’s football history, this club took part in the world clubs competitions. Moreover, between 2003 and 2012, this team took part in the Asian Championship League nine times. This club is proud that during 2010 and 2011, to have won the premiere championship league in Iran, while in the 2012 season this team became Iran’s champion, becoming the first club that has successfully won three championship titles, and breaking a record in this regard and finally the club won the 2013-14 premiere championship league of Iran for a fifth time.
Breaking Records!By earning the championship title for the third consecutive year in 2012, Foulad Sepahan Football Team (eleventh national premiere football league competitions) has broken a new record in Iran’s football history. In addition, this club has won 9 championship during last 12 years and becoming the top Iranian team in the league.
Club Football Team Honours• The club was introduced as the model of
Iran: 2000• The best Iranian club in “the Best” festival:
2002• Champion of Iran Pro League: 2003, 2010• Champion of Iran knockout Cup: 2004,
2006, 2007• Runner up of Asian Champions League :
2007• The 1st Iranian club qualified Participating
in FIFA Club World Cup TM : 2007• Vice champion of Iran Pro league: 2008• Honorable for 7 times of attendance in
Asian Champion league: 2003, 2011• Taking the 52nd place in FIFA Club
Ranking: 2007
Sistership and Sports Relationship Contract with: 1. Internatzionale Milan – Italy2. Kawasaki Frontale – Japan3. Gamba Osaka - Japan 4. Bunyodkar – Uzbekistan5. Pakhtakor - Uzbekistan6. Al Sharjah – UAE7. Kayserspor – Turkey8. Al Ahed – Lebanon9. Al Arabi – Kuwait10. Jonac – Nigeria 11. Al Mina – Iraq
Quality Guarantees and Management Certificates:
1. ISO 9001 : 2008 • For activities such as:
Rendering Sports Services to real and legal persons and organizing men and women champion teams in different age groups and approved sport fields
2. ISO 10015 : 1999• For activities such as:
Rendering Sports Services to real and legal persons and organizing men and women champion teams in different age groups and approved sport fields
3. BS OHSAS 18001 : 2007• Applies a management system in line with
the above standard for the scope of : Providing Cultural, Sport, Championship and Pleasure Services
Mobarakeh Steel Company 40
Organizational ExcellenceFrom the initial time of its design, by seeking to become even better than the celebrated steel companies around the world, the Mobarakeh Steel Company was established based on a systematic outlook and the establishment of the Management Information System (MIS). In 1372 (1993-94), for the purpose of solving operational problems, Operating Plan Improvement Projects System was implemented. Furthermore, in 1373 (1994-95), for the purpose of democratizing the organization, creating a communication channel between the organization and the employees, the suggestions regime was set up in the following years, where numerous improvements were made as a consequence of the useful suggestions made by the employees. Later, by establishing the quality management system (ISO9001:1994) in 1374 (1995-96) and its review in 1382 (2003-04) (ISO9001:2000) the structure of management processes with the objective a providing customer satisfaction was established and all necessary directions and instructions were defined within the framework of this system. In 1375 (1996-97), the research and development (R&D) system with the objective of developing practical and customer-oriented research was established. This, which created the basis of wide-scale research within the MSC, was made possible by creating links with over 68 scientific, research and university centres.
For the purpose of developing group work and with the objective of developing group participation of the employees, the QCC was established in 1376 (1997-98). Over 200 improvement groups within various subjects and various problems of the organization were established, mainly on operational levels. The establishment of these groups came following the enforcement of the comprehensive productive net regime in 1380 (2001-02), along with the autonomous net groups. Hence, over 500 improvement groups were organized and systematic improvement and utilization of production lines were placed on their agenda. In 1378 (1999-00), for the purpose of creating integration between the systems and various management regimes and management participation and well as the structure of revolution regime (process structure) some 17 revolution committees were created and their number was increased to 20 in 1382 (2003-04).
Furthermore, by taking advantage of the Hoshin Planning Model, the strategies and objectives of MSC over 2 one year and 5 year periods were drafted and defined. These objectives and strategies are reviewed every year and these strategies were reviewed in 1384 (2005-06) and 1386 (2007-08) by using the strategically planning theoretical models.
The MSC has taken part in the competition of the National Organisational Prize of Excellence and Efficiency, which is based on the EFQM Model, since its introduction in 1382 (2003-04), and ever since, this company has managed to rank first and as the first company in the country, to win the Finalist Award in 1384 (2005-06). Furthermore, the MSC won the first excellence prize of the Muslim countries (Mecca Award) which was introduced in 1386 (2007-08). In addition, the MSC has taken advantage of a number of systems which have helped a great deal on its journey toward excellence. These systems include: the Environmental Management System (ISO14001) in 1376 (1997-98), the Safety and Hygiene Management System (OHSAS18001) in 1385 (2006-07), Training Management System (ISO10015) in 1384 (2005-06), Human Resources Development System (PDS) in 1385 (2006-07), Laboratory and Calibration System (ISO17025) in 1384 (2005/06), Standard Corresponding with European Products (CE-Marking) in 1386 (2007-08), etc.
MSC
Exc
elle
nce
Roa
d M
ap
Mobarakeh Steel Company 42
Certificates & AwardsMeasures taken for Obtaining StandardsThis Company is proud to have obtained the following certificates and awards:
• The Company holds ISO9001/2000 certificate, ISO14000 certificate and Iran Standard Sign for its products
• The Company holds the Iranian Standard Certificate for its coated products
• The MSC holds product Certification from SGS Company
• The Company extended this certification to its coated products (galvanized, per-painted & tin-plate) and for the products used in marine industries the Company succeeded in obtaining Product Certificate from DNV Company
The Awards Won by the Company• National Prize of Quality, Iranian National
Standard, Establishment of Quality Management System, Environment and SGS Product Certificate awarded by Switzerland
• Golden Table and medal of America and Europe, French international Trade Medal Paris
Testing and Calibration Laboratories Standard ISO/IGO - 17025 : 2009
Certificate of MAKE Award (2015)
First Rank Certificate in Basic Metals(2012)National Quality Unit Award (2011)
Annual Report 2014-2015 43
Consumer Rights RecognitionLicense and Award (2011)
Trophy of MAKE Awards (2011)Crystal Trophy of Iran Financial Management Awards (2011)
Top Provincial Unit (2011 )
Golden National Productivity & Organizational Excellence Award
(2013)
National Iranian Quality Award (2005)
Trophy of Celebrating the Best Research & Development Units
(2014)
Trophy of National Training & Development Excellence Model
(2015)
Trophy of Export (2014) Consumer Rights Recognition License & Award (2014)
Trophy of National Empowerment
Ceremony (2011)
Mobarakeh Steel Company 44
Annual Report 2014-2015 45
FINANCIAL PERFORMANCEFinancial Ratios
Liquidity Ratios Although our liquidity ratio declined during the 2014-15 period, overall performance in the past five years is favourable. The following charts demonstrate our liquidity ratios in the previous five years:
Current RatioQuick Ratio
2011-12 2012-13 2013-14 2014-15
1.03
0.10
1.11
0.12
0.94
0.10
10.
49
Activity RatiosActivity ratios are less than average within Iran’s steel industry. This is due to the fact that a considerable portion of MSC’s current assets are in its two expansion projects which have not yet been utilised as yet. Thus, during the reporting period, whilst assets increased by 20%, sales experienced a 5% increase only. Therefore, once these projects are utilised, activity ratios shall improve considerably.
The following charts demonstrate our activity ratios:
Turnover of AssetsTurnover of Fixed AssetsTurnover of Inventories
Leverage Ratios MSC leverage ratios are less than those of its competitors. This means that MSC’s financial risk exposure is less than its competitors.
The following charts reflect the MSC’s leverage ratios:
Liability RatioLiability to Shareholders’ Equity
0.51
1.07 1.
140.
53
0.53
1.10
0.52
1.10
2011-12
2011-12
2012-13
2012-13
2013-14
2013-14
2014-15
2014-15
0.55
1.31
2.16
0.70
2.16 2.
32
0.74
2.60
2.07
0.57
2.04
1.5
Mobarakeh Steel Company 46
Profitability RatiosAs can be seen in the following table and chart, profitability ratios have experienced a declining trend during the past three years. This is due to the rising costs of energy, raw material and wages on the one hand, and the falling global steel prices on the other. However, despite this declining trend, the MSC is nevertheless is performing better than its competitors in this regard.
Year 2011-12 2012-13 2013-14 2014-15 AverageIndustry
Profitability
Gross Profit Margin 32.41% 38.74% 42% 31.6% 26.50%
Operating Profit Margin 25.41% 35.32% 40.78% 27.7% 21.95%
Net Profit Margin 21.11% 28.38% 32% 23.2% 17.68%
Return on Assets 11.65% 19.88% 54.23% 13.2% 12.08%
Return on Share- holders’ Equity 23.75% 42.16% 49.42% 28.3% 27.67%
Assets Per Capita(million IRR)
Fixed Assets Per Capita (million IRR)
Sales Per Capita (million IRR)
2013-14 2013-14 2013-142014-15 2014-15 2014-15
12,2
17
3,38
4
6,91
7
9,95
7
2,69
3
6,51
4
2014
-15
MSCSteel Industry
23.20%
32%
24.83%
13.38%
21.11%
17.68%
2012
-13
2013
-14
2011
-12
MSC’s & Steel Industry’s Net Profit Margin Trend
28.38%25.90%
Annual Report 2014-2015 47
Sales PerformancePrior to the establishment of the Tehran Metal Exchange (TME) in 1382 (2003-04), the MSC supplied its products to its customers directly. However, since 1382 (2003-04) MSC’s products are partly marketed through the TME channel. During the reporting period 8.7% of MSC’s sales took place through the TME, 77% via the clearing room (matching method) and 15.2% were sold directly. All of the above transactions took place under a license issued by the TME on 1382/11/11 (31.01.2004).
During the reported fiscal period, our total sales levels value increased by 2.6%. The following table and chart provide greater detail in of our sales performance.
Product
For the Year Ended 20.03.2015 For the Year Ended 20.03.2014
DomesticMarket
Company’s Share in Domestic Market Exports Domestic
Market Company’ Share in
Domestic Market Exports
IRR million IRR million Percent IRR million IRR million IRR million IRR mil-lion IRR million
Hot 115,363,795 47,482,620 41.1% 17,281,797 113,477,898 53,320,659 47.0% 10,351,909
Cold 45,513,884 27,194,570 59.8% 1,901,766 32,996,936 22,602,642 68.5% 1,832,549
Coated 38,332,705 7,114,594 18.6% 401,926 35,443,625 7,797,743 22.0% 343,818
Semi Final 35,431,810 621,971 1.8% 0 35,793,298 1,029,203 2.9% 0
Total 234,642,193 82,413,755 35.1% 19,585,489 217,711,757 84,750,247 38.9% 12,528,276
Total Sales 101,999,244 97,278,523
Sales (million IRR)
Hot
Col
d
Coa
ted
Sem
i Fin
al
64,7
64,4
17
29,0
96,3
36
7,51
6,52
0
621,
971
Mobarakeh Steel Company 48
Shares Performance
Risk Management
On 1385/12/7 (26.02.2007) the MSC became the 435th listed company in the Tehran Stock Exchange (TSC) and its shares were for the first time floated on the TSC on 1385/12/20 (11.03.2007). The followingtable demonstrates MSC’s shares performance in the previous four years:
End of the Fiscal YearNo. of
TransactionDays
Value ofTradedShares
(million IRR)
No. of TradedSharesYear Ended Capital
(million IRR)
Price ofEach Share
(IRR)
Market Value(million IRR)
15,800,0002,72343,023,4001825,541,5882,119,175,42720.03.201125,800,0002,96876,574,4002336,948,4912,311,052,31019.03.201225,800,0004,299110,914,20022316,081,1174,096,816,47820.03.201336,000,0004,323155,628,00023719,940,3864,603,181,50120.03.201450,000,0001,92096,000,0002246,652,6691,987,553,83120.03.2015
Information Disclosure & Shares LiquidityThe following table demonstrates MSC’s ranking in terms of shares liquidity and information disclosure for the reported fiscal period:
• Description 2014-15, 2013-14, 2012-13• Information Disclosure Ranking 62, 215, 114• No. of Transaction Days 224, 237, 223• Ratio of Transactions Volume to Total Shares of the• Company 3.97%, 12.78%, 15.87%
Based on European Excellence Quality Management Model approaches (EFQM) and also in accordancewith the new ISO 9000:2015 standard, which refers to establishing a Risk Management System in view of the steel industry business environment the MSC has designed and implemented a Risk Management System based on ISO 31000.
In this regard, training courses have been held and process identification, assessment and responding to different risks of 2015-16 objective have been implemented through 123 Transform Committees andthe report has been presented to the Steering Committee.
Hence, the most important risks are as follows:
1- Decrease of steel products prices in global market and domestic markets.2- Decrease of oil and iron ore prices.4- Falling sales volume in domestic and export markets.5- Failure to implement expansion projects on time.6- Limitations in funding expansion projects in time.
Annual Report 2014-2015 49
InvestmentsIn order to maximise our profitability, we constantly dedicate a portion of our revenues towards investments in lucrative economic sectors and in the shares of both Tehran Stock Exchange (TSE) listed and unlisted companies.
The following chart shows that our investment returns in the listed companies enjoyed an 8% growth in comparison with the previous year. Furthermore, our long-term investment returns had a positive impact on our EPS by IRR77.
Investment Returns on TSE Listed Companies(IRR million)
3,85
7,19
7
3,58
5,48
2
1,42
7,04
4
931,
774
497,
702
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
Mobarakeh Steel Company 50
Our subsidiary companies are as follows:
Investment in AffiliatedCompaneis
Investment in Subsidiary Companeis
Investment in OtherCompanies
MSC Group
Investment in Subsidiary Companies:
Ownership Stake (%)
Hormozgan Steel Co. 100
Chahar Mahal va Bakhtiari Sefid Dasht Steel Co. 64.99
Chahar Mahal va Bakhtiari Automative Sheet Co. 66.30
Foolad Sang Mining & Industrial Co. 98.87
Kashan Amir-Kabir Steel Co. 52.57
International Systems Engineeiring & Automation Co. (IRISA)
68.17
Tara Steel Co. 70
Mobarakeh Steel Engineering Co. 99
Sang va Ahan-e Foolad-e Sangan Co. 99.6
Felez Tadarok Co. 99.6
Foolad Sepahan Sports Club 95
Sepahan Novin Cultural & Sports Co. 95
Investment in Affiliated Companies:
Ownership Stake (%)
Metals & Minings Developing Investment Co. 19.29
Metil Steel Co. 32.16
Tuka Foolad Investment Co. 25
Ardekan Novin Electrode Co. 31
Construction & Erection Equipment Supply Co. 37.68
Tuka Beton Co. 25
Investment in Other Companies:
Ownership Stake (%)
Chadormaloo Industrial & Mining Co. 10.40
Gole Gohar Industrial & Mining Co. 9.94
Iran Mercantile Exchange Co. 0.67
Esfahan Health Services Co. 0.88
Esfahan Subway Co. 10
Iran Energy Exchange co. 0
Financial Statements
Mobarakeh Steel Company 52
Islamic Republic of IranMinistry of Economic Affairs & Finance Audit Organization
Independent Auditor’s and Legal Inspector’s ReportTo: Annual Ordinary General Meeting of Mobarakeh Steel Company (Public Joint Stock)
Report on the Financial Statements
Introduction 1. We have audited the accompanying consolidated financial statements of the Mobarakeh Steel Company (Public Joint Stock) including the balance sheets as at 20 March, 2015, and the related statements of income and cash flows for the year then ended, together with the explanatory notes 1 to 37 attached herewith. Responsibility of the Board of Directors for the Financial Statements 2. The Company’s Board of Directors is responsible for preparation and fair presentation of these financial statements in accordance with the Iranian financial reporting standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Responsibility of the Auditor and Legal Inspector 3. Our responsibility is to express an opinion on these financial statements based on our audit, and in accordance with the Iranian auditing standards. These standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion on the financial statements.
As legal inspector, we are also responsible to report to the ordinary general meeting of shareholders matters of noncompliance with legal requirements as stipulated in the Commercial Code as Amended and the provisions of Company’s Articles of Association and other necessary issues.
Opinion 4. In our opinion the financial statements mentioned above, present fairly the financial position of the Group and the Mobarakeh Steel Company (Public Joint Stock) on 20 March, 2015, as well as the results of the Group’s and the Company’s operations and cash flows for the fiscal year then ended, in all material respects, in accordance with the Iranian accounting standards.
Emphasis on Matter 5 . Our opinion is not qualified regarding the following paragraphs:
5.1. As stated in explanatory note 14.2 the corporate tax for the 2013-14 financial period ended has been identified as IRR7,312 billion. However, since the Company has appealed against this, it has only paid IRR4,377 billion. In addition, the corporate tax for the 2014-15 period has been reflected in the accounts whilst considering the declared profits and lawful tax exceptions. Furthermore, based on the letters of Value Added Tax (VAT) Deputy and the Esfahan Province Environmental Protection Department, the Mobarakeh Steel Company (Public Joint Stock) was included in the list of polluting companies as of 1393/10/01 (22.12.2014), for which no provision has been calculated and reflected in the accounts (note 34.3 of the financial statements). Determining the necessary provision in this regard is dependent upon the final verdict of the tax authorities. Our opinion has not been qualified due to the effects of this paragraph.
Annual Report 2014-2015 53
Report on Other Statutory and Regulatory Requirements Report on other Duties of the Legal Inspector 6. The cases where legal requirements set forth by the Commercial Code as Amended have not been complied include:
6.1. Article 240 of the Commercial Code which refers to the payments of prior years’ dividend within 8 months of the ratification of the ordinary general assembly of the shareholders.
6.2. In executing Article 142 of the Commercial Code as Amended, the following measures of the board of directors in reference with the duties of the ordinary annual general assembly of the shareholders have not been finalised.
• Elimination of discrepancies between the account in between the MSC and IMIDRO. • Transfer of title deeds of the building of the Esfahan office which is located in Sa’adatabad Street
and the land located in Bandar Abbas Port, at the Special Economic Zone, the land of Saba Steel Company which is located at the site of the Esfahan Steel Company.
• Sale of the shares of Hygiene & Service as well as Tamco companies whose fields of activity is not related to the Company fields of activity and are not a part of the Company plans and strategies.
• Settlement of government claims (in reference to the notes of the Budget Act) prior to handing over a portion of the shares of the Parent Company to the private sector (mentioned via Iran’s Expense Deputy and Treasury).
• Preparation of the consolidated financial statements of all companies (affiliated and subsidiary) liable to consolidation and submitting to the shareholders, the impacts of consolidation of cases which have not been consolidated in full.
• Collecting the debts of Mobarakeh Steel Housing Cooperative which amounts to IRR312 billion.
7. In some cases where there has been a monopoly, lack of time or following the trend of previous years etc. purchasing has taken place under the conditions of mahdoud or tarke tashrifat. In this regard, we are not certain that purchasing have taken place under the best conditions (due to the lack of comparative rates from various sources).
8. During the reporting financial period, no contract has been signed with Gole Gohar Company for purchasing raw material (iron ore and pellets) and the amounts reflected in the accounts relating to buying raw material, have been calculated and all payments have been reflated in the accounts as prepayments in accordance with the trend in the previous years and the selling rate of Khouzestan Steel Company’s slab at the Tehran Metal Exchange (13.6% during the reporting fiscal period).
9. In some cases, auxiliary items (electrodes) reflected in the suppliers’ invoices) SGL, GI and HEG Companies) exceed the quantity received by the Company or its warehouse. The reason for this discrepancy is not clear. In addition, the list of goods in transit has been temporarily received but due to the lack of documents has not been reflected in the system and has not been submitted to this organisation.
10. We have reviewed the transactions as stated in the explanatory note 35.3 carried out during the reported fiscal period, which we have been informed of, by the board of directors as all the transactions liable to Article 129 of the Commercial Code as Amended. The mentioned transactions have taken place in compliance with the mentioned article which refers to obtaining a license from the board of directors and the beneficiary director not taking part in the voting process. With the exception of the following instances which taken under special conditions, the mentioned transactions have taken place on the basis of ordinary relations between the Group Companies.
• South Hormozgan Steel Company (Public Joint Stock) – sale of raw material at finished cost and failure to collect debt.
• Mobarakeh Steel Employee Consumption Cooperative – failure to enforce a tender for restaurant and transport contract.
• Metil Steel Company – sale of Sani Kaveh Iron & Steel Company, whilst not collecting a portion of remaining debt.
• Iran Zob Company – purchasing aluminium ingot prior to complying with the procedures as set forth in the Transactions Instruction.
11. The Board of Directors’ report regarding company’s activity and general condition referred by Article 232 of the Commercial Code as Amended, that was prepared for presentation the General Assembly was reviewed there was no evidence pointing to any significant distortion information presented by the Board.
Mobarakeh Steel Company 54
Audit Organization15 Tir 1394 (06.07.2015)
Naser Diyanati Jamshid Danesh
Report on other Duties of the Legal Inspector 12. The rules and regulations as set forth by the Commodities & Exchange Organization have not been complied in the following instances:
a. Executive instructions on information disclosure of the companies listed at the Securities & Exchange Organization:
Instruction Article Number Description
Clause 4, Article 7 Submitting the 6 month, mid-term financial statements at maximum 75 days following the end of the period.
Clause 10, Article 7 Submitting the audited 6 month, mid-term consolidated financial statements at maximum 60 days following the end of the 6 month period.
Article 10Submitting the minutes of the ordinary general assembly at a maximum period of 10 days following the meeting to the Companies Registration Department and its disclosure one week following its registration.
b. Disciplinary instruction of listed publishers at the Securities & Exchange Organization:
Article 8
Submitting the methods and details of stages of implementation of the expansion projects to the Securities & Exchange Organization together with the opinion of the auditor once every months and at a maximum period of 60 days following the end of the 6 month period.
13. In executing Article 33 of Combating Money Laundering Executive Instruction via the auditors compliance of the mentioned act and its related executive instructions has been reviewed by this institution in accordance with the framework of checklists as notified by the related authorities and accounting standards. In this regard, with the exception of non-compliance of some of the contents of Combating Money Laundering Act its executive instruction and its related instruction (including training of employees so that they become familiar with the mentioned act, introducing the Money Laundering Combating Department to the related secretariat, fully stating the national identification or economic code in the forms and contracts) we did not encounter any significant event of noncompliance with the mentioned regulations.
Esfa
han
Mob
arak
eh S
teel
Co.
, (Pu
blic
Joi
nt S
tock
)C
onso
lidat
ed B
alan
ce S
heet
As
at M
arch
20t
h, 2
015
Ass
ets
Not
e20
.03.
2015
(Rev
ised
)20
.03.
2014
Liab
ilitie
s &
Sha
reho
lder
s’ E
quity
Not
e20
.03.
2015
(Rev
ised
)20
.03.
2014
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Cur
rent
Ass
ets:
C
urre
nt L
iabi
litie
s:
Cas
h 3
5,75
4,74
28,
297,
047
Trad
e &
Non
-trad
e P
ayab
les
1314
,231
,960
15,3
09,2
39
Sho
rt-te
rm In
vest
men
ts
42,
373,
774
2,04
8,26
5Ta
x P
ayab
le
144,
152,
273
4,84
6,43
8
Trad
e &
Non
-trad
e R
ecei
vabl
es
522
,033
,092
26,0
72,4
44P
ayab
le D
ivid
end
1515
,659
,948
13,5
88,0
32
Inve
ntor
y6
56,3
99,4
6042
,097
,779
Fina
ncia
l Fac
ilitie
s16
53,0
13,2
0939
,886
,777
Pre
paym
ents
78,
841,
523
11,2
52,7
55A
dvan
ces
Rec
eive
d 17
5,89
2,77
63,
187,
170
Mai
ntai
ned
Ass
ets
for S
ales
873
,118
24,7
08
Tota
l Cur
rent
Ass
ets
95,4
75,7
0989
,792
,998
Tota
l Cur
rent
Lia
bilit
ies
92,9
50,1
6676
,817
,656
Non
-cur
rent
Ass
ets:
Non
-cur
rent
Lia
bilit
ies:
Long
-term
Rec
eiva
bles
5
1,88
6,98
71,
799,
359
Long
-term
Pay
able
s 13
40,6
9177
,332
Long
-term
Inve
stm
ents
919
,661
,528
11,0
40,5
80Lo
ng-te
rm F
inan
cial
Fac
ilitie
s 16
5,26
1,39
15,
390,
723
Goo
dwill
& In
tang
ible
Ass
ets
103,
463,
331
3,24
2,80
1P
rovi
sion
for E
mpl
oyee
s’ W
ork
Term
inat
ion
Ben
efits
184,
803,
113
3,17
9,37
4
Fixe
d Ta
ngib
le A
sset
s11
67,2
93,1
5853
,303
,369
Tota
l Non
-cur
rent
Lia
bilit
ies
10,1
05,1
958,
647,
429
Oth
er A
sset
s12
3,08
4,62
113
,209
Tota
l Lia
bilit
ies
103,
055,
361
85,4
65,0
85
Tota
l Non
-cur
rent
Ass
ets
95,3
89,6
2569
,399
,318
Shar
ehol
ders
’ Equ
ity:
Cap
ital (
50,0
00,0
00,0
00 IR
R10
00 s
hare
, ful
ly p
aid)
1950
,000
,000
36,0
00,0
00S
hare
s of
the
Par
ent C
ompa
ny in
Ow
ners
hip
of th
e S
ubsi
diar
y C
ompa
nies
20
(593
)(5
93)
Lega
l Res
erve
214,
910,
822
3,66
7,08
0
Oth
er R
eser
ves
2244
6,26
244
6,26
2
Ret
aine
d E
arni
ngs
31,4
33,5
4232
,536
,838
Tota
l Rig
hts
rela
ted
to S
hare
hold
ers
of th
e P
aren
t Com
pany
86,7
90,0
3372
,649
,587
Min
ority
Inte
rest
23
1,01
9,94
01,
077,
644
Tota
l Sha
reho
lder
s’ E
quity
87,8
09,9
7373
,727
,231
Tota
l Ass
ets
190,
865,
334
159,
192,
316
Tota
l Lia
bilit
ies
& S
hare
hold
ers’
Equ
ity19
0,86
5,33
415
9,19
2,31
6
The
expl
anat
ory
note
s ar
e an
inte
gral
par
t of t
he fi
nanc
ial s
tate
men
ts.
Mobarakeh Steel Company 56
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Consolidated Profit (Loss) Statement For the Year Ended March 20th, 2015
Note2014-15 (Revised)
2013-14Million IRR Million IRR Million IRR
Operating Revenues 24 122,040,518 111,353,479
Cost of Operating Revenues 25 (87,435,474) (67,366,880)
Gross Profit 34,605,044 43,986,599
Sales, General & Administrative Expenses 26 (6,342,734) (5,416,221)
Other Operating Items 27 584,793 2,763,323
(5,757,941) (2,652,898)
Operating Profit 28,847,103) 41,333,701
Financial Expenses 28 (9,142,800) (6,842,358)
Other Non-operating Revenues & Expenses 29 6,121,270 3,311,688
(3,021,530 (3,530,670)
Profit before Considering Group’s Quota from Profit of Affiliated Companies 25,825,573 37,803,031
Group’s Quota from Profit of Affiliated Companies 9-1-1 2,934,128 25,840
Operating Profit before Tax 28,759,701 37,828,871
Income Tax (3,249,979) (4,782,292)
Net Profit 25,509,722 33,046,579
Minority Interest from Net Profit 103,695 113,347
Net Profit related to Shareholders of the Parent Company 25,406,027 32,933,232
Base Profit of Each Share: 30
Operating – IRR 542 773
Non-operating – IRR (5) (47)
Base Profit of Each Share – IRR 537 726
Flow of Consolidated Accumulated Profit Account
Net Profit 25,509,722 33,046,579
Retained Profit at the beginning of the Year 32,593,065 24,612,269
Prior Years’ Adjustments - (1,213,915)
Retained Profit at the beginning of the Year (Adjusted) 32,593,065 23,398,354
Ratified Dividend (23,760,000) (16,770,000)
Capital Increase (1,500,000) (6,000,000)
7,333,065 628,354
Allocable Profit 32,842,787 33,674,933
Legal Reserve (1,258,519) (1,081,868)
Retained Profit at the End of the Year 31,584,268 32,593,065
Minority Interest from Retained Profit 150,726 56,227
Retained Profit related to Shareholders of the Parent Company 31,433,542 32,536,838
Since the comprehensive income statement is limited to the profit for the period and prior years’ adjustments, the comprehensive income statement is not presented.The explanatory notes are an integral part of the financial statements.
Annual Report 2014-2015 57
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Consolidated Cash Flows Statement For the Year Ended March 20th, 2015
Note2014-15 (Revised)
2013-14Million IRR Million IRR Million IRR
Operating Activities:
Net Cash Inflow from Operating Activities 32 24,712,088 13,489,758
Return on Investments & Paid Profit for Financing:Received Profit for Investments Deposits 905,740 671,895
Dividend Received 289,431 3,065,242
Paid Profit for Financial Facilities (6,783,609) (5,543,308)
Dividend Paid to Minority Shareholders (42,943) (6,681)
Dividend Paid to Shareholders of the Parent Company (9,233,343) (8,508,600)
Net Cash Outflow from Return on Investments & Paid Profit for Financing (14,864,724) (10,321,452)
Income Tax:
Income Tax Paid (3,954,217) (4,164,275)
Investment Activities:Received Amounts from Sales of Fixed Tangible Assets 94,933 122,925
Paid Amounts for Increase in Fixed Tangible Assets (16,802,871) (6,495,374)
Paid Amounts for Increase in Intangible Assets (327,302) (274)
Paid Amounts for Other Assets (166,412) (1,438)
Received Amounts for Sales of Long-term Investments - 107,011
Paid Amounts for Acquiring Short-term Investments (325,509) -
Paid Amounts for Acquiring Long-term Investments (1,924,017) (1,326,065)
Net Cash Outflow from Investment Activities (19,451,178) (7,593,215)
Net Cash Outflow before Financing Activities (13,558,031) (8,589,184)
Financing ActivitiesAmounts Received from Capital Increase of the Parent Company 88,202 46,549
Paid Amounts for Acquiring Shares of the Parent Company by the Subsidiary Company - (31)
Financial Facilities Received 135,568,124 77,793,887
Repayment of Origin of Financial Facilities Received (124,443,911) (65,904,926)
Net Cash Inflow from Financing Activities 11,212,415 11,935,479
Net Increase (Decrease) in Cash (2,345,616) 3,346,295
Cash Balance at the beginning of the Year 8,297,047 4,535,508
Effect of Foreign Exchange Rates Changes (196,689) 415,244
Cash Balance at the End of the Year 5,754,742 8,297,047
Non-cash Transactions 33 12,411,798 4,153,451
The explanatory notes are an integral part of the financial statements.
Esfa
han
Mob
arak
eh S
teel
Co.
, (Pu
blic
Joi
nt S
tock
)B
alan
ce S
heet
As
at M
arch
20t
h, 2
015
Ass
ets
Not
e20
.03.
2015
(Rev
ised
)20
.03.
2014
Liab
ilitie
s &
Sha
reho
lder
s’ E
quity
Not
e20
.03.
2015
(Rev
ised
)20
.03.
2014
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Cur
rent
Ass
ets:
C
urre
nt L
iabi
litie
s:
Cas
h 3
3,59
3,20
16,
734,
553
Trad
e &
Non
-trad
e P
ayab
les
1317
,519
,106
12,6
72,0
33
Sho
rt-te
rm In
vest
men
ts
42,
295,
220
1,73
5,26
5Ta
x P
ayab
le
143,
991,
074
4,37
6,98
7
Trad
e &
Non
-trad
e R
ecei
vabl
es
529
,836
,851
26,2
19,7
67P
ayab
le D
ivid
end
1515
,467
,219
13,5
85,5
92
Inve
ntor
y6
46,4
30,0
1133
,466
,939
Fina
ncia
l Fac
ilitie
s16
46,2
57,1
2037
,021
,132
Pre
paym
ents
77,
769,
867
10,8
67,0
46A
dvan
ces
Rec
eive
d 17
5,85
9,68
93,
012,
340
Tota
l Cur
rent
Ass
ets
89,9
25,1
5079
,023
,570
Tota
l Cur
rent
Lia
bilit
ies
89,0
94,2
0870
,668
,084
Non
-cur
rent
Ass
ets:
Non
-cur
rent
Lia
bilit
ies:
Long
-term
Rec
eiva
bles
5
1,88
6,98
71,
694,
575
Long
-term
Fin
anci
al F
acili
ties
162,
274,
534
3,29
4,77
9
Long
-term
Inve
stm
ents
935
,075
,184
27,2
31,1
76P
rovi
sion
for E
mpl
oyee
s’ W
ork
Term
inat
ion
Ben
efits
184,
629,
895
3,04
5,64
7
Goo
dwill
& In
tang
ible
Ass
ets
1046
8,20
946
7,65
3To
tal N
on-c
urre
nt L
iabi
litie
s6,
904,
429
6,34
0,42
6
Fixe
d Ta
ngib
le A
sset
s11
49,9
03,6
6740
,256
,365
Tota
l Lia
bilit
ies
95,9
98,6
3777
,008
,510
Oth
er A
sset
s12
2,90
5,00
0-
Shar
ehol
ders
’ Equ
ity:
Tota
l Non
-cur
rent
Ass
ets
90,2
39,0
4769
,649
,769
Cap
ital (
50,0
00,0
00,0
00 IR
R10
00 s
hare
, ful
ly p
aid)
1950
,000
,000
36,0
00,0
00
Lega
l Res
erve
214,
788,
037
3,60
0,00
0
Oth
er R
eser
ves
2244
6,26
244
6,26
2
Ret
aine
d E
arni
ngs
3728
,931
,261
31,6
18,5
67
Tota
l Sha
reho
lder
s’ E
quity
84,1
65,5
6071
,664
,829
Tota
l Ass
ets
180,
164,
197
148,
673,
339
Tota
l Lia
bilit
ies
& S
hare
hold
ers’
Equ
ity18
0,16
4,19
714
8,67
3,33
9
The
expl
anat
ory
note
s ar
e an
inte
gral
par
t of t
he fi
nanc
ial s
tate
men
ts.
Annual Report 2014-2015 59
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Profit (Loss) Statement
For the Year Ended March 20th, 2015
Note 2014-15 (Revised)2013-14
Million IRR Million IRR Million IRROperating Revenues 24 101,999,244 97,278,523
Cost of Operating Revenues 25 (69,696,950) (56,201,638)
Gross Profit 32,302,294 41,076,885Sales, General & Administrative Expenses 26 (5,849,147) (5,021,132)
Other Operating Items 27 732,135 3,456,013
(5,117,012) (1,565,119)
Operating Profit 27,185,282 39,511,766
Financial Expenses 28 (7,910,993) (6,319,767)Other Non-operating Revenues & Expenses 29 7,562,256 2,072,243
(348,737) (4,247,524)
Operating Profit before Tax 26,836,545 35,264,242
Income Tax (3,075,814) (4,376,767)
Net Profit 23,760,731 30,887,475
Base Profit of Each Share: 30
Operating – IRR 509 745
Non-operating – IRR (7) (64)
Base Profit of Each Share – IRR 502 681
Flow of Accumulated Profit Account
Net Profit 23,760,731 30,887,475Retained Profit at the beginning of the Year 31,618,567 25,259,130
Prior Years’ Adjustments - (738,038)Retained Profit at the beginning of the Year (Adjusted) 31,618,567 24,521,092
Ratified Dividend (23,760,000) (16,770,000)
Capital Increase (1,500,000) (6,000,000)
6,358,567 1,751,092
Allocable Profit 30,119,298 32,638,567
Legal Reserve (1,188,037) (1,020,000)
Retained Profit at the End of the Year 28,931,261 31,618,567
Since the comprehensive income statement is limited to the profit for the period and prior years’ adjustments, the comprehensive income statement is not presented.
The explanatory notes are an integral part of the financial statements.
Mobarakeh Steel Company 60
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Cash Flows Statement
For the Year Ended March 20th, 2015
Note2014-15 (Revised)
2013-14Million IRR Million IRR Million IRR
Operating Activities:
Net Cash Inflow from Operating Activities 32 22,793,931 19,386,530Return on Investments & Paid Profit for Financing:Received Profit from Short-term Investment Deposit 725,188 550,906
Received Profit from Investment in Shares of Other Companies 32,760 3,189
Paid Profit for Financial Facilities (6,454,259) (5,299,914)
Paid Dividend (9,466,575) (8,512,886)Net Cash Outflow from Return on Investments & Paid Profit from Financing (15,162,886) (13,258,705)
Income Tax:
Income Tax Paid (3,461,625) (4,540,446)
Investment Activities:Paid Amounts for Purchase of Fixed Tangible Assets (11,159,685) (7,991,549)
Paid Amounts for Purchase of Intangible Assets (6,564) (87)
Received Amounts from Sales of Fixed Tangible Assets 53,327 121,615
Received Amounts from Sales of Long-term Investments - 816,857
Paid Amounts for Acquiring Short-term Investments (559,955) -
Paid Amounts for Acquiring Long-term Investments (2,789,496) (1,233,086)
Net Cash Outflow from Investment Activities (14,462,373) (8,286,250)
Net Cash Outflow before Financing Activities (10,292,953) (6,698,871)
Financing Activities:
Amounts Received from Capital Increase 88,202 46,549
Financial Facilities Received 130,513,568 76,814,335Repayment of Origin of Financial Facilities Received (123,253,480) (67,388,910)
Net Cash Inflow from Financing Activities 7,348,290 9,471,974
Net Increase (Decrease) in Cash (2,944,663) 2,773,103
Cash Balance at the beginning of the Year 6,734,553 3,566,255
Effect of Foreign Exchange Rates Changes (196,689) 395,195
Cash Balance at the End of the Year 3,593,201 6,734,553
Non-cash transactions 33 12,411,798 4,153,451
The explanatory notes are an integral part of the financial statements.
Annual Report 2014-2015 61
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
1. History of Activities
1.1. GeneralitiesBased on the minute of the Extra Ordinary General Assembly dated 1383/02/21 (10.05.2004) became of public joint stock company and was subsequently listed at the Tehran Stock Exchange on 1385/12/07 (26.02.2007). The address of company headquarters is at: Sa’adatabad St., Azadi Sq., Esfahan and the address where the Company’s main operations tale place is at: 74 km South-West Esfahan.
1.2. Main Activities
The activities of the company in accordance with the Article 3 of its Articles of Association are as follow:
A) Utilization of a steel making complex located 74 km from Esfahan cityB) Carrying out any kind of productive activity, trading, including domestic and international which is directly or indirectly related to the activities of the companyC) Entering into partnerships and investment in other companies by establishing new companies or subscribing to purchase shares of new companies or purchasing or subscribing to the shares of existing companiesD) Preparing and publishing scientific, technical and research bulletins as well as carrying out research and advertising in relation to the activities of the companyE) Assisting the cultural, educational and sports institutions F) Exploration and exploitation of metal and non-metal mines including iron ore and dolomite, required by the steel industry as well as sorting iron ore and producing concentrate and pellets. G) Carrying out any other activities which may serve the objectives of the Company
1.3. Employment Status The number of company employees at the end of the year is as follows:
Group Parent Company2014-15 2013-14 2014-15 2013-14Persons Persons Persons Persons
Permanent Employees 7,221 7,106 4,454 4,935Direct Contract Employees 10,514 10,216 10,292 9,998Total 17,735 17,322 14,746 14,933Personnel of Service Companies 5,363 5,156 3,663 3,536
23,098 22,478 18,409 18,469
2. Summary of Accounting Procedures
2.1. Basis for Preparation of the Financial Statements
The financial statements are mainly prepared on the basis of finished cost and in the following case, current values have been applied:
- Fixed tangible assets based on revaluation method (Note 2-8-2).
Mobarakeh Steel Company 62
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
2.2. Basis for consolidation
2.2.1. The consolidated financial statements are composed of items of the MSC’s financial statements (PJC) and South Hormozgan Steel (joint stock) Mobarakeh Steel Engineering, Technical, International Systems & Automation (IRSIA), Kaveh Tehran Industries, Esfahan Mabarakeh Steel Sang Mining & Industrial, Sangan Sang va Iron Steel, Tadarok Metal as well as Amir Kabir Kashan Steel companies, following the deduction of internal group transactions and account balances and unrealized profit and loss resulting from the mentioned transactions.
2.2.2. The results of operations of subsidiary companies which have been acquired during the reporting period, are reflected in the consolidated profit and loss statement of the date of their effective take over by the Parent Company and the result of operations of subsidiary companies which have been sold are reflected in the consolidated profit and loss statement until date of their transfer. 2.2.3. Shares acquired by the subsidiary companies are booked in the accounts at cost price and are reflected in the consolidated balance sheet as reducers of shareholders equity under the heading of “shares of the Parent Company owned by subsidiary companies”.
2.2.4. The consolidated financial statements are prepared with homogeneous accounting procedures in reference with transactions and other similar events which take place under similar circumstances.
2.3. Inventory of Materials and Goods 2.3.1. Every single item and the similar groups within the inventories of materials and goods will be evaluated by the “least cost price and net sales value”. In case the cost price is more than the net sales value, the difference of which will be recognized as a reserve for a decrease in inventory value. Cost price of inventories is calculated by using the following methods:
Method of Cost Price Calculation
Raw Materials Weighted Average
Auxiliary Materials Weighted Average
Spare Parts Weighted Average
Materials for Repair & Maintenance Weighted Average
In-process Goods Average Cost Price in View of Finishing Percentages
Finished Goods Weighted Average
Annual Report 2014-2015 63
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
2.4. Investments
Description Group Consolidated Parent Company
Evaluation Method:
Long-term Investments:Investment in Subsidiary Companies (Liable to Consolidation) Liable to Consolidation Cost (less: Retained Investment
Devaluation)
Investment in Affiliated Companies Equity Method Cost (less: Retained Investment Devaluation)
Other Long-term Investments Cost (less: Retained Investment Devaluation)
Cost (less: Retained Investment Devaluation)
Current Investments:Investments Rapidly Transacted in the Market
Minimum Cost & Net Sales Value of Total Investments
Minimum Cost & Net Sales Value of Total Investments
Other Current Investments Minimum Cost & Net Sales Value of Each Investment
Minimum Cost & Net Sales Value of Each Investment
Income Recognition Method:
Investment in Subsidiary Companies Liable to Consolidation
At the Time of Profit Ratification by the Shareholders’ General Assembly of Investee Company (until the Date of Approval of the Financial Statements)
Investment in Affiliated Companies Equity Method
At the Time of Profit Ratification by the Shareholders’ General Assembly of Investee Company (until the Date of Approval of the Financial Statements)
Other Long-term & Current Investments in Shares of Companies
At the Time of Profit Ratification by the Shareholders’ General Assembly of Investee Company (until the date of Balance Sheet)
At the Time of Profit Ratification by the Shareholders’ General Assembly of Investee Company (until the date of Balance Sheet)
2.5. Assets Retained for Sale
2.5.1. Noncurrent assets whose book value is recycled mainly from sale, not use are classified under the heading of “Assets Retained for Sale”. Such conditions are only recognized when noncurrent assets are to be sold quickly where they are ready and are likely to be sold and a considerable part of the management is committed to selling noncurrent assets in such a manner that sale is carried out within a one year period as of classification date (with the exception of cases which are beyond the authority of the management).
2.5.2. Noncurrent assets retained for sale are measured at “minimum book value and net sales value”.
2.6. Goodwill Acquisition type of business units and accounting procedure is based on the purchasing method. Excess cost price of investments in subsidiary companies which is liable to consolidation and is dependent upon the group’s share from the recognizable net asset value at the time of acquisition is recognized as goodwill and is depreciated within a 20 year period via the straight line method. Goodwill resulting from the acquisition of subsidiary companies is reflected in the consolidated balance sheet as long-term investment book value.
Mobarakeh Steel Company 64
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
2.7. Intangible Assets
2.7.1. Intangible assets are measured and reflected in the accounts based on cost price.
2.7.2. Depreciation of intangible assets is determined by their useful life, are calculated having taken into consideration the consumption model of future expected economic interests and based on rates and the following methods:
Asset Depreciation Rate Depreciation MethodTechnical Knowledge 20 Year Direct Line
Software 5 Year Direct Line
2.8. Fixed Tangible Assets
2.8.1. With the exception of the case mentioned in clause 2.8.3, fixed tangible assets are recorded in the accounts on the basis of cost price. Renovation and structural repair expenditures that would significantly increase the capacity or fundamentally improve the quality of output or useful life of the assets are considered as capital expenditure and depreciated over the useful life of the assets. Minor maintenance and repair expenses are taken into account as current expense at the time of occurrence and included in the profit and loss account for the year.
2.8.2. The fixed tangible assets of the company by the end of 2001, have been in accordance with Article 62 of the Third Economic, Social and Cultural Development Plan Act of the Islamic Republic of Iran and according to the bylaw of the said Article, been revalued and have been reflected in the company books in 2002 and in 2002 transferred to capital account and registered into companies’ registration office in 1381/11/09 29.01.2003.
2.8.3. The depreciation of the fixed tangible assets is calculated, taking into consideration the consumption model of future expected economic interests and in view of the useful life of the said assets (taking into consideration the depreciation bylaw, relating to the Article 151 of the Direct Taxation Act ratified in February 1988 and its subsequent amendments) are based on the rates and procedures mentioned in the following table:
Depreciation Rate DepreciationMethod
Buildings10% & 8% ,7%DecliningProduction Machineries Furnaces & Accessories8%Declining& Construction & Road Construction Machineries
Cranes25%Declining
ToolsYears 4DirectMobile Compressors15%DecliningData Processing SystemYears 10DirectTelecommunication Equipment & DevicesYears 10DirectMotor Vehicles30% & 35% ,25%DecliningFurniture & EquipmentYears 10DirectInstallation12% Declining Computer SoftwareYears 5Direct
Annual Report 2014-2015 65
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
2.8.3.1. Depreciation of fixed tangible assets is calculated from the date when the depreciable asset is ready to be brought into operation and it is at the disposal of the company and in case the depreciable asset is at the disposal of the company during the month, then it will not be calculated in the related month. In cases where each of the depreciable assets ready to be utilized, are not used, due to holidays or any other reason, the rate of depreciation is calculated at 30% of depreciation dated 1381.12.28 19.03.2003 is reflected in the above table.
2.8.3.2. According to the circular 74876 dated 19.03.2003 of Tax Affairs Organization, depreciation of revaluated fixed assets is calculated based on twice of the length of time or half of the rates as indicated in Article 151 of Direct Taxation Act.
2.8.4. Depreciation of fixed assets which have been bought for the purpose of renovation, replacement or completion is calculated based on Article 150 of Direct Taxation Act and based on half of the time or two times of the rates of Article 151 table.
2.9. Provisions
2.9.1. Provision for Employees Work Termination Benefit Provision for employees’ work termination benefit were calculated and recorded into accounts on the basis of one month latest salary and continuous benefits for each year of service.
2.9.2. Provision for Employees Leave BuybackProvision for purchase leave, which is 9 days of each year, is reflected in the accounts based on the latest wages and out of headquarters allowances. 2.10. Operating Income
2.10.1. Operating income measured at fair value against amounts received or receivable and following the deductions resulting from reimbursements or discounts.
2.10.2. Operating income from sales of goods is identified at the time of delivery.
2.10.3. Operating income from services rendered is identified at the time service.
2.11. Financial Expenses With the exception of those which are directly related to the acquisition of “eligible assets” financial expenses at the time of occurrence are identified as expenses.
2.12. Forex
2.12.1. Monetary items in foreign currency are exchanged at the official exchange rate on balance sheet date and nonmonetary items which have been registered at historical cost depending on currency type, are exchanged on transaction date. The differences resulting from the exchange of monetary items are reflected in the accounts in the following manner:i. The differences in foreign currency dues relating to “eligible assets” are recorded at cost price. ii. In other cases, they are identified as income or expense of the period at the time of occurrence and are recorded in the profit and loss account.
Mobarakeh Steel Company 66
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
3. Cash
Parent Company Group2013-142014-152013-142014-15
Million IRRMillion IRRMillion IRRMillion IRR6,551,5403,239,7288,111,8725,389,310Cash at Banks
183,013353,473185,175365,432Cash at Hand & Petty Cash6,734,5533,593,2018,297,0475,754,742
3.1. Cash at banks at the date of balance sheet is as follows:
Parent CompanyGroup2013-142014-152013-142014-15
Million IRRMillion IRRMillion IRRMillion IRR5,283,474368,6056,727,0812,391,974Cash at Banks – Rials
1,268,0662,871,1231,384,7912,997,336Cash at Banks – Foreign Exchange
6,551,5403,239,7288,111,8725,389,310
3.1.1. Balance of foreign exchange accounts of the Parent Company (include; €83,238,087 – US$5,913,511 and AED25,643,253) at the end of the year have been exchanged based on the rate of the Central Bank of the Islamic republic of Iran with the rate of €1 / IRR30,156 - $1 / IRR27,994 and 1 AED / IRR7,622.
4. Short-term Investments
2013-142014-15Million IRRMillion IRR
Group:1,019,930880,000Short-term Banking Investment Deposits – IRR 1,028,3351,493,774Short-term Banking Investment Deposits – Foreign Exchange 2,048,2652,373,774
Parent Company:706,940880,000Short-term Banking Investment Deposits – IRR
1,028,3251,415,220Short-term Banking Investment Deposits – Foreign Exchange 1,735,2652,295,220
Annual Report 2014-2015 67
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
5. Trade & Non-trade Receivables
5.1. Short-term receivables
2014-15 2013-14
Rials Foreign Currency Total
Provision for Doubtful
DebtsNet Net
Million IRR Million IRR Million IRR Million IRR Million IRR Million IRRGroup:Trade:Notes Receivable:Other Clients 3,563,372 - 3,563,372 - 3,563,372 1,279,483
3,563,372 - 3,563,372 - 3,563,372 1,279,483Accounts Receivable:Related Parties (Note 35-2) 42,325 42,325 42,325 52,354Other Clients 11,270,396 11,270,396 (166,646) 11,103,750 15,037,365
11,312,721 - 11,312,721 (166,646) 11,146,075 15,089,719
14,876,093 - 14,876,093 (166,646) 14,709,447 16,369,202Non-trade:Notes Receivable: - - - - 1,484Personnel (Loan & Allowances) 462,969 - 462,969 - 462,969 354,321Temporary Deposits 64,556 - 64,556 - 64,556 2,768Dividend Receivable 1,984,610 - 1,984,610 - 1,984,610 2,578,477Short-term Credit Account – Other People 964,663 - 964,663 - 964,663 4,613,356
Related Parties (Note 35-2) 709,427 - 709,427 - 709,427 1,450,102Others 3,141,146 - 3,141,146 (3,726) 3,137,420 702,834
7,327,371 - 7,327,371 (3,726) 7,323,645 9,703,242
22,203,464 - 22,203,464 (170,372) 22,033,092 26,072,444Parent Company:Trade: Notes Receivable:Other Clients 3,259,850 - 3,259,850 - 3,259,850 1,241,360
3,259,850 - 3,259,850 - 3,259,850 1,241,360Accounts Receivable:Related Parties (Note 35-4) 2,004,435 37,201 2,041,636 - 2,041,636 1,643,599Other Clients 9,666,360 2,574,997 12,241,357 (158,324) 12,083,033 13,762,452
11,670,795 2,612,198 14,282,993 (158,324) 14,124,669 15,406,051
14,930,645 2,612,198 17,542,843 (158,324) 17,384,519 16,647,411Non-trade:Personnel (Loan & Allowances) 417,377 - 417,377 - 417,377 312,461Temporary Deposits 2,858 - 2,858 - 2,858 2,768Dividend Receivable 2,127,631 - 2,127,631 - 2,127,631 2,578,477Short-term Credit Account – Other People 257,576 - 257,576 - 257,576 459,288
Related Parties (Note 35-4) 6,703,110 95,715 6,798,825 - 6,798,825 1,975,416Others 1,002,779 1,845,286 2,848,065 - 2,848,065 4,243,946
10,511,331 1,941,001 12,452,332 - 12,452,332 9,572,356
25,441,976 4,553,199 29,995,175 (158,324) 29,836,851 26,219,767
Mobarakeh Steel Company 68
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
5.2. Long-term receivables
2013-142014-15Million IRRMillion IRR
Group:Non-trade:
1,799,3591,886,987Personnel (Loan & Allowances)Parent Company:Non-trade:
1,694,5751,886,987Personnel (Loan & Allowances)
6. Inventories
2014-15 2013-14
Cost PriceProvision for Value Decrease
Net Net
Million IRR Million IRR Million IRR Million IRRGroup:Produced Goods 6,600,232 - 6,600,232 7,704,494Goods under Completion 7,329,141 - 7,329,141 3,602,133Raw Materials & Packaging 20,930,291 - 20,930,291 12,931,246Parts & Spare Parts 1,355,092 (356,010) 999,082 7,254,451Consumption & Auxiliary Materials 9,208,395 - 9,208,395 6,581,919
Operating Parts 9,590,354 - 9,590,354 988,781Inventory of Scrap 795,706 - 795,706 608,353Other Inventories 1,864 - 1,864 2,429
55,811,075 (356,010) 55,455,065 39,673,806Goods in Transit 944,395 - 944,395 2,423,973
56,755,470 (356,010) 56,399,460 42,097,779Parent Company:Produced Goods 2,912,756 - 2,912,756 3,456,884Goods under Completion 7,320,781 - 7,320,781 3,595,386Raw Materials & Packaging 17,212,449 - 17,212,449 10,306,832Parts & Spare Parts 8,166,010 (356,010) 7,810,000 6,486,717Consumption & Auxiliary Materials 8,874,538 - 8,874,538 6,208,366
Operating Parts 1,355,092 - 1,355,092 988,78145,841,626 (356,010) 45,485,616 31,042,966
Goods in Transit 944,395 - 944,395 2,423,97346,786,021 (356,010) 46,430,011 33,466,939
Annual Report 2014-2015 69
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
6.1. Inventory of raw material, packaging finished goods and spare parts of the Group have been insured against fire, flood and earthquake for up to IRR6,487,500 million and the Parent Company for up to IRR5,000,000 million (it is noteworthy that based on the ratification of the Ordinary General Assembly dated 1393/04/29 (20.07.2014) authority of insurance coverage has been handed over to the Board of Directors which based on the minute number 81/2/061 dated 1394/04/14 (05.07.2015) has approved the aforementioned insurance coverages).
6.2. increase of raw material and packaging inventory is mainly due to the increase in the volume of iron ore, pellets and ferromanganese until the end of the fiscal period.
6.3. Inventory of good in process includes spare parts and raw material.
7. Prepayments
Group Parent Company
2014-15 2013-14 2014-15 2013-14
Million IRR Million IRR Million IRR Million IRR
Orders:
Orders of Raw Materials 221,511 1,599,848 146,423 1,599,436
Orders of Parts & Spare Parts 1,158,275 1,489,208 466,124 1,277,553
1,379,786 3,089,056 612,547 2,876,989
Prepayments:
Domestic Suppliers 3,930,942 3,191,108 3,651,639 3,070,149
Foreign Suppliers 3,505,681 4,919,908 3,505,681 4,919,908
Others 25,114 52,683 - -
7,461,737 8,163,699 7,157,320 7,990,057
8,841,523 11,252,755 7,769,867 10,867,046
8. Assets held for Sales & Debts related to Assets held for Sales
Group
2014-15 2013-14
Million IRR Million IRR
Land 73,118 151
Buildings - 24,557
Assets held for Sales 73,118 24,708
8.1. Non-current assets for sales related to Tajrish land of Felez Tadarok Co.
Mobarakeh Steel Company 70
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
9. Long-term Investments
2014-15 2013-14
Million IRR Million IRR
Group:
Investment in Subsidiary Companies 18,742 18,742
Investment in Affiliated Companies (Note 9-1-1) 6,415,684 2,402,133
Investment in Other Companies 8,788,993 7,463,548
Investment in Shares of Companies (Note 9-1) 15,223,419 9,884,423
Investment Prepayment (Note 9-4) 3,188,342 342
Others 7,527 108,575
Long-term Investment Banking Deposit 1,242,240 1,047,240
19,661,528 11,040,580
Parent Company:
Investment in Subsidiary Companies 16,918,707 16,053,193
Investment in Affiliated Companies 4,950,142 2,680,093
Investment in Other Companies 8,788,993 7,463,548
Investment in Shares of Companies (Note 9-1) 30,657,842 26,196,834
Investment Prepayment (Note 9-4) 3,188,342 342
Long-term Investment Banking Deposit 1,229,000 1,034,000
35,075,184 27,231,176
9.1.
Inve
stm
ent i
n sh
ares
of c
ompa
nies
List
ed
Com
pani
es
2014
-15
2013
-14
No.
of S
hare
sPe
rcen
t
Cos
t Pric
e /
Equi
ty M
etho
dR
etai
ned
Valu
e D
ecre
ase
Boo
k Va
lue
Mar
ket V
alue
Boo
k Va
lue
Mar
ket V
alue
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Gro
up:
Inve
stm
ent i
n Su
bsid
iary
Com
pani
es:
Tara
Ste
el C
o. –
Ltd
.N
on- T
SE
15,7
8070
18,6
37-
18,6
3718
,637
18,6
3718
,637
Sep
ahan
Mob
arak
e S
teel
Cul
tura
l & S
ports
Clu
b C
o.N
on- T
SE
9595
95-
9595
9595
Sep
ahan
Nov
in C
ultu
ral &
Spo
rts C
o.N
on- T
SE
9595
10-
1010
1010
18,7
42-
18,7
4218
,742
18,7
4218
,742
Inve
stm
ent i
n A
ffilia
ted
Com
pani
es:
Min
es &
Met
als
Dev
elop
men
t Inv
estm
ent C
o.TS
E3,
086,
413,
593
19.2
95,
231,
606
-5,
231,
606
7,41
6,59
02,
144,
940
11,4
46,1
96
Toka
Fou
lad
Inve
stm
ent C
o.TS
E15
2,50
1,68
125
.00
562,
465
-56
2,46
571
4,00
873
,384
179,
871
Met
il S
teel
Co.
Non
- TS
E64
3,19
932
.16
439,
622
-43
9,62
238
7,99
312
2,99
836
,298
Nov
in E
lect
rode
Ard
akan
Co.
Non
- TS
E31
039
125,
894
-12
5,89
435
,356
--
Pro
vidi
ng &
Inst
allin
g C
onst
ruct
iona
l Mac
hine
ries
Co.
(Tam
co)
Non
- TS
E2,
265,
440
37.6
840
,569
-40
,569
20,8
4238
,619
20,8
42
Toka
Bet
on C
o.N
on- T
SE
75,0
0025
15,5
28-
15,5
288,
709
22,1
928,
709
6,41
5,68
4-
6,41
5,68
48,
583,
498
2,40
2,13
311
,691
,916
Inve
stm
ent i
n O
ther
Com
pani
es:
Cha
dor M
alu
Min
ing
& In
dust
rial C
o.TS
E1,
777,
791,
698
10.4
03,
867,
803
-3,
867,
803
6,10
3,15
83,
337,
585
9,48
1,55
6
Gol
e G
ohar
Min
ing
& In
dust
rial C
o.TS
E1,
789,
224,
829
9.94
4,91
6,99
9-
4,91
6,99
96,
602,
240
4,12
1,78
710
,141
,933
Sah
ami B
ours
e K
alay
e Ira
n C
o.A
gree
men
t B
ase
Mar
ket
3,02
8,50
00.
671,
478
-1,
478
1,47
81,
478
1,47
8
Esf
ahan
Indu
strie
s Tr
eatm
ent &
Hyg
iene
Ser
vice
s C
o.N
on-T
SE
118,
000
0.88
590
-59
059
059
059
0
Esf
ahan
Reg
iona
l Met
ro C
o.N
on-T
SE
21,0
0010
2,10
0-
2,10
02,
100
2,10
02,
100
Bou
rse
Ene
rgy
Co.
Agr
eem
ent
Bas
e M
arke
t22
,500
023
-23
238
8
8,78
8,99
3-
8,78
8,99
312
,709
,589
7,46
3,54
819
,627
,665
15,2
23,4
19-
15,2
23,4
1921
,311
,829
9,86
5,68
031
,338
,323
Esfa
han
Mob
arak
eh S
teel
Co.
, (Pu
blic
Joi
nt S
tock
)N
otes
to th
e Fi
nanc
ial S
tate
men
tsFo
r the
Yea
r End
ed M
arch
20th
, 201
5
Esfa
han
Mob
arak
eh S
teel
Co.
, (Pu
blic
Joi
nt S
tock
)N
otes
to th
e Fi
nanc
ial S
tate
men
tsFo
r the
Yea
r End
ed M
arch
20th
, 201
5
9.1.
Inve
stm
ent i
n sh
ares
of c
ompa
nies
– C
ontin
ued
List
ed
Com
pani
es
2014
-15
2013
-14
No.
of S
hare
sPe
rcen
tC
ost P
rice
/ Eq
uity
Met
hod
Ret
aine
d Va
lue
Dec
reas
eB
ook
Valu
eM
arke
t Val
ueB
ook
Valu
eM
arke
t Val
ue
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Pare
nt C
ompa
ny:
Inve
stm
ent i
n Su
bsid
iary
Com
pani
es:
Hor
moz
gan
Ste
el C
o.O
ver t
he
Cou
nter
14,9
99,9
99,9
96
w14
,999
,999
,996
100
15,0
00,0
00-
15,0
00,0
0015
,000
,000
15,0
00,0
0015
,000
,000
Cha
har M
ahal
& B
akht
iari
Sefi
d D
asht
Ste
el C
o.N
on-T
SE
649,
900
64.9
96,
499
-6,
499
6,49
90
Cha
har M
ahal
va
Bak
htia
ri A
utom
ativ
e S
heet
Co.
Non
-TS
E46
4,11
5,70
566
.30
314,
518
-31
4,51
831
4,51
80
Fool
ad S
ang
Min
ing
& In
dust
rial C
o.N
on-T
SE
119,
631,
503
98.8
730
4,32
8-
304,
328
304,
328
304,
328
304,
328
Kas
han
Am
ir-K
abir
Ste
el C
o.TS
E22
5,52
8,00
752
.57
1,22
0,95
4-
1,22
0,95
42,
471,
787
625,
810
831,
378
Inte
rnat
iona
l Sys
tem
s E
ngin
eeiri
ng &
Aut
omat
ion
Co.
(IR
ISA
)N
on-T
SE
1,53
3,75
068
.17
52,6
56-
52,6
5652
,656
52,6
5652
,656
San
i’e K
aveh
Teh
ran
Co.
Non
-TS
E-
--
--
-50
,647
50,6
47Ta
ra S
teel
Co.
– L
td.
Non
-TS
E15
,780
7018
,637
-18
,637
18,6
3718
,637
18,6
37M
obar
akeh
Ste
el E
ngin
eerin
g C
o.N
on-T
SE
990,
000
9999
0-
990
990
990
990
San
g va
Aha
n-e
Foul
ad-e
San
gan
Co.
Non
-TS
E99
699
.610
-10
1010
10Fe
lez
Tada
rok
Co.
Non
-TS
E99
699
.610
-10
1010
10Fo
olad
Sep
ahan
Spo
rts C
lub
Non
-TS
E95
9595
-95
9595
95S
epah
an N
ovin
Cul
tura
l & S
ports
Co.
Non
-TS
E95
9510
-10
1010
1016
,918
,707
-16
,918
,707
18,1
69,5
4016
,053
,193
16,2
58,7
61In
vest
men
t in
Affi
liate
d C
ompa
nies
: M
etal
s &
Min
ings
Dev
elop
ing
Inve
stm
ent C
o.TS
E3,
086,
413,
593
19.2
93,
852,
715
-3,
852,
715
7,41
6,59
02,
540,
860
11,4
46,1
96M
etil
Ste
el C
o.N
on-T
SE
643,
199
32.1
638
7,99
3-
387,
993
387,
993
36,2
9836
,298
Tuka
Foo
lad
Inve
stm
ent C
o.TS
E15
2,50
1,68
125
562,
465
-56
2,46
571
4,00
873
,384
179,
871
Ard
ekan
Nov
in E
lect
rode
Co.
Non
-TS
E31
031
117,
418
-11
7,41
835
,356
--
Con
stru
ctio
n &
Ere
ctio
n E
quip
men
t Sup
ply
Co.
N
on-T
SE
2,26
5,44
037
.68
20,8
42-
20,8
4220
,842
20,8
4220
,842
Tuka
Bet
on C
o.N
on-T
SE
75,0
0025
8,70
9-
8,70
98,
709
8,70
98,
709
4,95
0,14
2-
4,95
0,14
28,
583,
498
2,68
0,09
311
,691
,916
Inve
stm
ent i
n O
ther
Com
pani
es:
Cha
dorm
aloo
Indu
stria
l & M
inin
g C
o.TS
E1,
777,
791,
698
10.4
03,
867,
803
-3,
867,
803
6,10
3,15
93,
337,
585
9,48
1,55
6G
ole
Goh
ar In
dust
rial &
Min
ing
Co.
TSE
1,78
9,22
4,82
99.
944,
916,
999
-4,
916,
999
6,60
2,23
94,
121,
787
10,1
41,9
33
Iran
Mer
cent
ile E
xcha
nge
Co.
Agr
eem
ent
Bas
e M
arke
t3,
028,
500
0.67
1,47
8-
1,47
81,
478
1,47
81,
478
Esf
ahan
Hea
lth S
ervi
ces
Co.
Non
-TS
E11
8,00
00.
8859
0-
590
590
590
590
Esf
ahan
Sub
way
Co.
Non
-TS
E21
,000
102,
100
-2,
100
2,10
02,
100
2,10
0
Iran
Ene
rgy
Exc
hang
e C
o.A
gree
men
t B
ase
Mar
ket
22,5
000
23-
2323
88
8,78
8,99
3-
8,78
8,99
312
,709
,589
7,46
3,54
819
,627
,665
30,6
57,8
42-
30,6
57,8
4239
,462
,627
26,1
96,8
3447
,578
,342
Annual Report 2014-2015 73
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
9.1.1. Group’s investment in affiliated companies
Quota from Net Total Assets
Million IRR
Balance at the beginning of the Year 2,402,133
Acquired during the Year 2,259,749
Quota from Profit of Affiliated Companies during the Year 2,934,128
Dividend Received or Receivable during the Year (1,180,326)
6,415,684
- Increase in profit quota of affiliated companies during the year is related to income recognition from investment with equity method in Mines & Metals Development Investment Co. for 2013-14 and before.
Mobarakeh Steel Company 74
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
9.2. Details of the Group’s affiliated and subsidiary companies are as follows:
Location
Percent of Investment
Major Activity 2014-15 2013-14
Group Parent Company Group Parent
Company
Subsidiary Companies:
South Hormozgan Steel Co. Iran 100.00 100.00 100.00 100.00 Steel Making
Sefid Dasht Chahar Mahal va Bakhtiari Steel Co. Iran 64.99 64.99 - - Steel Making
Chahar Mahal va Bakhtiari Automobile Sheets Co. Iran 66.30 66.30 - - Galvanized Plate
Foulad Sang Mobarakeh Esfahan Mining & Industrial Co. Iran 98.87 98.87 98.87 98.87 Lime
Metil Steel Co. Iran 56.58 32.16 56.58 32.16 Investment
Amir Kabir Kashan Steel Co. Iran 52.57 52.57 36.56 36.56 Galvanized Plate
Systems & Automation International Co. (IRISA) Iran 68.17 68.17 68.17 68.17 IT Services
Tara Steel Co. – Ltd. Germany 100.00 70.00 100.00 70.00 Trade
Mobarakeh Steel Technical & Engineering Co. Iran 100.00 99.00 100.00 99.00 Engineering
Services
Sangan Steel Iron & Stone Co. Iran 100.00 99.60 100.00 99.60 Pelletizing
Felez Tadarok Esfahan Mobarakeh Steel Co. Iran 100.00 99.60 100.00 99.60 Trading Scrap
Sepahan Mobarake Steel Cultural & Sports Club Iran 100.00 95.00 100.00 95.00 Sports – Cultural
Sepahan Novin Cultural & Sports Co. Iran 100.00 95.00 100.00 95.00 Sports – Cultural
Affiliated Companies:
Mines & Metals Development Investment Co. Iran 19.29 19.29 19.15 19.15 Investment
Toka Foulad Investment Co. Iran 35.00 25.00 35.00 18.25 Investment
Novin Electrode Ardakan Co. Iran 39.00 31.00 - - Electrode
Providing & Installing Constructional Machineries Co. (Tamco)
Iran 41.94 37.68 41.94 37.68Provision & Repair of Machineries
Toka Beton Co. Iran 72.50 25.00 72.50 25.00 Concrete
Other Companies:
Chador Malu Mining & Industrial Co. Iran 10.40 10.40 10.40 10.40 Exploiting Iron ore
Gole Gohar Mining & Industrial Co. Iran 9.94 9.94 9.94 9.94 Exploiting Iron ore
Sahami Bourse Kalaye Iran Co. Iran 1.90 0.67 2.00 6.67 Trade
Esfahan Industries Treatment & Hygiene Services Co. Iran 0.88 0.88 0.88 0.88 Hygiene Services
Esfahan Regional Metro Co. Iran 10.00 10.00 10.00 10.00 TransportationServices
Annual Report 2014-2015 75
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
9.3. The Parent Company acquired 63.3% of the shares of Charmahal Bakhtiuyari Sheet Company (Joint Stock) with voting rights on 1393/04/01 22.06.2014. The cost price of this acquisition is stated below:
Million IRR
Fixed Tangible Assets 5,363,472
Intangible Assets 2,602
Investment 41,417
Inventory 519,550
Receivables 455,932
Orders & Prepayments 294,031
Cash 84,558
Payables (5,854,593)
Advances Received (448,375)
Provision for Employees’ Work Termination Benefits (7,289)
Minority Interest (152,090)
Net Recognizable Assets 299,215
Goodwill 15,304
Gross of Cash Paid 314,519
Acquired Cash (84,558)
Net Cash Outflow 229,961
9.4. The amount of IRR3,188,000 million of investment prepayments are related to handing over a cheque for the value of assets of Charmahal Bakhtiyari Sepid Dasht Steel Project. Since the Company jointly owns 65% of the mentioned company with IMIDRO, the cost price is shared between the two stakeholders.
10. Goodwill & Intangible Assets
Note
Group Parent Company
2014-15 2013-14 2014-15 2013-14
Million IRR Million IRR Million IRR Million IRR
Goodwill 10-1 1,879,087 1,635,627 - -
Intangible Assets 10-2 1,584,244 1,607,174 468,209 467,653
3,463,331 3,242,801 468,209 467,653
Mobarakeh Steel Company 76
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
10.1. Goodwill relating to excess cost price of acquired assets of South Hormozgan, Mobarakeh Esfahan Foulad Sang Mining & Industrial, Amir Kabir Kashan Steel as well as Charmahal Bakhtiyari Vehicle Sheet Companies is in net fair value and shall be depreciated via the direct line method over the next 20 years.
Group2014-15 2013-14
Million IRR Million IRRCost Price at the beginning of the Year 1,911,041 1,911,041Acquired Goodwill during the Year 344,224 -Cost Price at the End of the Year 2,255,265 1,911,041Accumulated Depreciation at the beginning of the year (275,414) (181,291)Depreciation of the Year (100,764) (94,123)Accumulated Depreciation at the End of the Year (376,178) (275,414)Book Value 1,879,087 1,635,627
10.2. Intangible assets (Amounts in Million IRR)
Cost Price Accumulated Depreciation & Retained Value Decrease Book Value
Balance at the
beginning of the Year
IncreaseBalance at the End of the Year
Balance at the
beginning of the Year
Depreciation & Values Decrease
Balance at the End of the Year
2014-15 2013-14
Group:
Technical Know-how
Computer Software 16,579 16,579 7,983 1,348 9,331 7,248
Industrial Royalty 550,937 - 550,937 46,500 31,000 77,500 473,437 508,916
General Services Royalty 1,101,608 - 1,101,608 18 8 26 1,101,582 1,096,539
Other Intangible Assets 1,977 1,977 1,977 1,719
1,671,101 1,671,101 54,501 32,356 86,857 1,584,244 1,607,174
Parent Company:
Industrial Royalty 120,000 - 120,000 46,500 6,000 52,500 67,500 73,500
General Services Royalty 394,171 6,564 400,735 18 8 26 400,709 394,153
514,171 6,564 520,735 46,518 6,008 52,526 468,209 467,653
11. F
ixed
Tan
gibl
e A
sset
s
11.1
. Gro
up
(Am
ount
s in
Mill
ion
IRR
)
Cos
t Pric
eA
ccum
ulat
ed D
epre
ciat
ion
& R
etai
ned
Valu
e D
ecre
ase
Boo
k Va
lue
Bal
ance
at
the
begi
nnin
g of
th
e Ye
ar
Incr
ease
Sold
Tran
sfer
s &
Oth
er
Cha
nges
Bal
ance
at
the
End
of
the
Year
Bal
ance
at
the
begi
nnin
g of
th
e Ye
ar
Dep
reci
atio
n &
Val
ues
Dec
reas
eSo
ldB
alan
ce a
t th
e En
d of
th
e Ye
ar20
14-1
520
13-1
4
Land
1,31
8,54
673
,211
-(2
67,0
89)
1,12
4,66
8-
--
-1,
124,
668
1,31
8,54
6
Bui
ldin
g &
Inst
alla
tion
24,7
11,3
4076
6,18
3(1
,161
)72
5,53
326
,201
,895
7,91
0,92
71,
836,
200
(926
)9,
746,
201
16,4
55,6
9416
,800
,413
Tool
s56
,144
13,1
35-
53,1
9812
2,47
729
,160
22,8
30-
51,9
9070
,487
26,9
84
Mac
hine
ries
24,4
57,6
302,
570,
707
(969
)2,
948,
750
29,9
76,1
189,
422,
658
1,65
3,12
1(4
39)
11,0
75,3
4018
,900
,778
15,0
34,9
72
Equ
ipm
ent
2,10
8,39
32,
195
(101
)26
,094
2,13
6,58
11,
147,
083
107,
390
(79)
1,25
4,39
488
2,18
796
1,31
0
Mot
or V
ehic
les
258,
752
8,26
9(5
12)
36,0
1530
2,52
417
0,86
339
,269
(440
)20
9,69
292
,832
87,8
89
Furn
iture
& F
ixtu
res
548,
001
22,8
69(1
14)
98,8
1466
9,57
027
6,53
149
,343
(48)
325,
826
343,
744
271,
470
Tota
l 53
,458
,806
3,45
6,56
9(2
,857
)3,
621,
315
60,5
33,8
3318
,957
,222
3,70
8,15
3(1
,932
)22
,663
,443
37,8
70,3
9034
,501
,584
Ass
ets
unde
r Com
plet
ion
8,74
7,94
09,
608,
715
-1,
149,
849
19,5
06,5
04-
--
-19
,506
,504
8,74
7,94
0
Pre
paym
ents
& C
apita
l O
rder
s9,
958,
034
2,98
5,52
8-
(3,0
81,0
48)
9,86
2,51
4-
--
-9,
862,
514
9,95
8,03
4
Cap
ital I
tem
s he
ld w
ith
War
ehou
se
95,9
4620
8,91
7-
(250
,978
)53
,885
135
--
135
53,7
5095
,811
18,8
01,9
2012
,803
,160
-(2
,182
,177
)29
,422
,903
135
--
135
29,4
22,7
6818
,801
,785
72,2
60,7
2616
,259
,729
(2,8
57)
1,43
9,13
889
,956
,736
18,9
57,3
573,
708,
153
(1,9
32)
22,6
63,5
7867
,293
,158
53,3
03,3
69
Esfa
han
Mob
arak
eh S
teel
Co.
, (Pu
blic
Joi
nt S
tock
)N
otes
to th
e Fi
nanc
ial S
tate
men
tsFo
r the
Yea
r End
ed M
arch
20th
, 201
5
Esfa
han
Mob
arak
eh S
teel
Co.
, (Pu
blic
Joi
nt S
tock
)N
otes
to th
e Fi
nanc
ial S
tate
men
tsFo
r the
Yea
r End
ed M
arch
20th
, 201
5
11.2
. Par
ent C
ompa
ny
(Am
ount
s in
Mill
ion
IRR
)
Cos
t Pric
eA
ccum
ulat
ed D
epre
ciat
ion
& R
etai
ned
Valu
e D
ecre
ase
Boo
k Va
lue
Bal
ance
at
the
begi
nnin
g of
th
e Ye
ar
Incr
ease
Sold
Tran
sfer
s &
Oth
er
Cha
nges
Bal
ance
at
the
End
of
the
Year
Bal
ance
at
the
begi
nnin
g of
th
e Ye
ar
Dep
reci
atio
n &
Val
ues
Dec
reas
eSo
ldB
alan
ce a
t th
e En
d of
th
e Ye
ar20
14-1
520
13-1
4
Land
507,
483
33,2
69-
313
541,
065
--
--
541,
065
507,
483
Bui
ldin
g 7,
118,
526
53,9
33(6
61)
280,
893
7,45
2,69
13,
173,
382
446,
984
(401
)3,
619,
965
3,83
2,72
63,
945,
144
Inst
alla
tion
6,16
1,23
416
0,79
1-
216,
342
6,53
8,36
72,
859,
768
519,
982
-3,
379,
750
3,15
8,61
73,
301,
466
Mac
hine
ries
23,5
84,2
9343
2(3
4)90
9,69
024
,494
,381
9,31
0,58
81,
316,
976
(33)
10,6
27,5
3113
,866
,850
14,2
73,7
05
Equ
ipm
ent
2,09
0,68
3-
(101
)26
,093
2,11
6,67
51,
132,
629
105,
437
(79)
1,23
7,98
787
8,68
895
8,05
4
Mot
or V
ehic
les
235,
310
-(1
71)
35,9
5827
1,09
715
9,29
234
,296
(145
)19
3,44
377
,654
76,0
18
Furn
iture
& F
ixtu
res
434,
400
1,30
4(3
0)57
,755
493,
429
255,
382
32,8
03(2
8)28
8,15
720
5,27
217
9,01
8
Tota
l 40
,131
,929
249,
729
(997
)1,
527,
044
41,9
07,7
0516
,891
,042
2,45
6,47
8(6
87)
19,3
46,8
3322
,560
,872
23,2
40,8
87
Ass
ets
unde
r Com
plet
ion
8,52
6,53
09,
107,
077
-1,
389,
242
19,0
22,8
49-
--
-19
,022
,849
8,52
6,53
0
Pre
paym
ents
& C
apita
l O
rder
s8,
488,
948
2,74
7,28
4-
(2,9
16,2
86)
8,31
9,94
6-
--
-8,
319,
946
8,48
8,94
8
17,0
15,4
7811
,854
,361
-(1
,527
,044
)27
,342
,795
--
-27
,342
,795
17,0
15,4
78
57,1
47,4
0712
,104
,090
(997
)-
69,2
50,5
0016
,891
,042
2,45
6,47
8(6
87)
19,3
46,8
3349
,903
,667
40,2
56,3
65
11.3
. Fix
ed ta
ngib
le a
sset
s of
the
Gro
up a
nd th
e P
aren
t Com
pany
hav
e in
sura
nce
cove
rage
aga
inst
fire
, floo
d an
d ea
rthqu
ake
for
up to
IRR
104,
592,
000
mill
ion
and
IRR
85,0
00,0
00 m
illio
n re
spec
tivel
y.
Annual Report 2014-2015 79
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
11.4. Assets under completion of the Parent Company
Percent of Completion
Estimation of Utilization
Date
Estimation of
Completion Expenses
Retained Expenses
Effect of the Project on Operation 2014-15 2013-14
2014-15 2013-14
Million IRR Million IRR Million IRR
Development Projects up to 5.4 Million Tons 99.9 99.36 Utilized 139,785 2,674,601 2,219,830 Production
Increase
Rendering Service to Development Projects 61.74 71.66 Until the End
of 2015-16 578,016 1,921,100 825,223 Production Increase
Establishing 3 Units of Mega Module & 2 Units of Lime 95.08 90.994
Until the Middle of 2016-17
86,565 905,285 631,422 Production Increase
Sangan Development Projects 31.5 14.95 Until the End of 2016-17 12,570,741 3,390,918 - Production
Increase
Saba Steel Development Projects 81.07 76.28 End of 2015-16 2,370,201 3,726,093 1,899,862 Production
Increase
Cold Rolling Unit Projects 94.8 90.18 Until the End of 2015-16 53,122 365,432 309,776 Production
Increase
Development Projects up to 7.2 Million Tons 85.78 65.6 Until the End
of 2015-16 296,478 1,813,647 789,413 Production Increase
Hot Rolling Unit Projects 93.96 92.56 Utilized 39,086 97,800 87,281 Production Increase
Steel Making Unit Projects 86.87 58.54 Until the End of 2015-16 26,277 96,787 73,110 Production
Increase
Establishing Fifth Casting Machine 74.25 14.14Until the Middle of 2016-17
1,160,713 940,027 67,865 Production Increase
Iron Making Unit Projects 94.06 89.79 Until the End of 2015-16 64,200 22,137 18,976 Production
Increase
Pre-painted Sheets & Tinned Unit Projects 77 92,791 24,587 Production
Increase
Environmental Projects - 14,461 14,461 Decrease in Pollutants
Others 9,532,260 2,961,770 1,564,725
26,917,521 19,022,849 8,526,531
11.4.1. Of the financial expenses, the amount of IRR1,817,683 million was allocated towards projects under completion (eligible), during the reporting financial period. In addition, during the previous years, nothing was allocated to such projects.
12. Other Assets
Group Parent Company
2014-15 2013-14 2014-15 2013-14
Million IRR Million IRR Million IRR Million IRR
Banking Deposited Funds 2,905,000 - 2,905,000 -
Other 179,621 13,209 - -
3,084,621 13,209 2,905,000 -
12.1. Since it is not possible to make any withdrawals until the loans have been settled, the amount of IRR2,905,000 million has been reflected in the mentioned account for the purpose of receiving loans and facilities.
Mobarakeh Steel Company 80
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
13. Trade & Non-trade Payables
13.1. Short-term payables
2014-15 2013-14Total Total
Million IRR Million IRRGroup:Trade:Notes Payable:Other People 10,000 -
10,000 -Accounts Payable:Related Parties (Note 35-2) 305,060 451,568Other People 1,012,449 7,437,669
1,317,509 7,889,2371,327,509 7,889,237
Non-trade:Notes Payable 4,483,910 1,214,287Insurance Premium Payables 1,445,188 1,122,616Retention Deposit 2,613,186 2,539,763Provision for Grants in Aids to Cultural & Welfare Organizations & Institutes 211,356 138,965
Expenses Payables 850,801 1,350,043Provision for Personnel Leave Buyback 446,186 333,702Economic Affairs & Finance Department 508,820 672,334Related Parties (Note 35-2) 22,916 40,783Others 2,322,088 7,509
12,904,451 7,420,00214,231,960 15,309,239
Parent Company:Trade:Accounts Payable:Related Parties (Note 35-4) 3,611,520 2,690,232Other People 4,235,267 4,432,152
7,846,787 7,122,3847,846,787 7,122,384
Non-trade:Notes Payable 4,478,137 1,160,468Insurance Premium Payables 1,375,631 990,776Retention Deposit 1,690,545 1,119,390Provision for Grants in Aids to Cultural & Welfare Organizations & Institutes 211,356 138,965
Expenses Payables 788,676 764,517Provision for Personnel Leave Buyback 433,502 333,702Economic Affairs & Finance Department 467,797 794,647Related Parties (Note 35-2) 20,061 9,882Others 206,614 237,302
9,672,319 5,549,64917,519,106 12,672,033
Annual Report 2014-2015 81
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
13.1.1. Notes payable in the amount of IRR4,478,137 million includes notes held by IMIDRO for purchasing the Sepid Dasht Steel Project, Esfahan Province Gas Company for consumed gas, Chamber of Commerce for 31/1000 presence in the mentioned chamber.
13.2. Long-term payables
2014-15 2013-14
Total Total
Million IRR Million IRR
Group:
Non-trade:
Notes Payable - 77,332
Others 40,691 -
40,691 77,332
14. Tax Payable
2014-15 2013-14
Provision Notes Payable Total Provision Notes
Payable Total
Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR
Group 3,237,273 915,000 4,152,273 3,796,438 1,050,000 4,846,438
Parent Company 3,076,074 915,000 3,991,074 3,326,987 1,050,000 4,376,987
6,313,347 1,830,000 8,143,347 7,123,425 2,100,000 9,223,425
14.1. Flow of the Group’s payable tax account is as follows:
Group2014-15 2013-14
Million IRR Million IRRBalance at the beginning of the Year 4,846,438 5,024,583Provision for Tax Performance of the Year 3,342,027 2,641,102Adjustment of Provision Performance of Previous Years (64,963) 1,372,113Paid during the Year (3,954,217) (4,164,275)
4,169,285 4,873,523Tax Prepayments (17,012) (27,085)
4,152,273 4,846,438
14.2
. Sum
mar
y of
pay
able
tax
prov
isio
n of
the
Par
ent C
ompa
ny
Fisc
al Y
ear
2014
-15
(Rev
ised
)20
13-1
4
Rec
ogni
tion
Met
hod
Dec
lare
d Pr
ofit
(Los
s)In
com
e Li
able
to
Tax
Tax
Dec
lare
dR
ecog
nize
dD
efini
tePa
idPa
yabl
e B
alan
cePa
yabl
e B
alan
ce
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
2012
-13
23,2
21,3
7224
,281
,418
3,16
4,58
13,
600,
127
3,60
0,12
73,
600,
127
--
Fina
lized
& S
ettle
d in
In
stal
lmen
t
2013
-14
35,2
64,2
4329
,565
,141
4,37
6,76
77,
312,
158
-3,
461,
624
915,
517
4,37
7,14
1U
nder
Sur
vey
2014
-15
26,8
36,5
4519
,843
,959
3,07
5,81
4-
--
3,07
5,81
4-
Not
Sur
veye
d
3,99
1,33
14,
377,
141
Less
: Tax
P
repa
ymen
t(2
57)
(154
)
3,99
1,07
44,
376,
987
14.2
.1. A
ll co
rpor
ate
taxe
s un
til th
e en
d of
the
2012
per
iod
have
bee
n fin
aliz
ed a
nd s
ettle
d.
14.2
.2. C
orpo
rate
tax
for
the
2013
per
iod
in th
e am
ount
of I
RR
7,31
2,15
8 m
illio
n ha
s be
en id
entifi
ed a
nd th
e C
ompa
ny h
as b
een
notifi
ed a
ccor
ding
ly. T
his
amou
nt
exce
eds
the
taxe
s pa
id a
nd ta
xes
paya
ble
(incl
udin
g no
tes
paya
ble)
in th
e am
ount
of I
RR
2,93
5,53
4 m
illio
n an
d si
nce
the
Com
pany
has
app
eale
d ag
ains
t the
met
hod
of
iden
tifica
tion,
no
prov
isio
n ha
s be
en re
flect
ed in
the
acco
unts
in th
is re
gard
.
14.2
.3. C
orpo
rate
tax
for t
he 2
014-
15 p
erio
d ha
s be
en re
flect
ed in
the
acco
unts
hav
ing
take
n in
to a
ccou
nt, t
he d
ecla
red
profi
t and
the
law
ful t
ax e
xem
ptio
ns.
Esfa
han
Mob
arak
eh S
teel
Co.
, (Pu
blic
Joi
nt S
tock
)N
otes
to th
e Fi
nanc
ial S
tate
men
tsFo
r the
Yea
r End
ed M
arch
20th
, 201
5
Annual Report 2014-2015 83
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
15. Payable Dividend
2014-15 2013-14
Million IRR Million IRR
Parent Company
Years before 2012-13 922,740 1,313,304
2012-13 4,267,874 12,272,288
2013-14 10,276,605 -
15,467,219 13,585,592
Group
Subsidiary Companies – Owned by Minority 192,729 2,440
15,659,948 13,588,032
15.1. Cash profit of each share in 2013-14 was IRR660 and in 2012-13 it was IRR650.
16. Financial Facilities
2014-15 2013-14Current Long-term Total Current Long-term Total
Million IRR Million IRR Million IRR Million IRR Million IRR Million IRRGroup:Facilities Received 53,013,209 5,261,391 58,274,600 39,886,777 5,390,723 45,277,500
Parent Company:Facilities Received 46,257,120 2,274,534 48,531,654 37,021,132 3,294,779 40,315,911
16.1
. Fin
anci
al fa
cilit
ies
rece
ived
bas
ed o
n di
ffere
nt b
asis
:
16.1
.1. B
ased
on
faci
lity
prov
ider
s
Gro
upPa
rent
Com
pany
2014
-15
2013
-14
2014
-15
2013
-14
IRR
Fore
ign
Cur
renc
yTo
tal
Tota
lIR
RFo
reig
n C
urre
ncy
Tota
lTo
tal
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Mill
ion
IRR
Ban
ks57
,901
,427
2,84
3,16
860
,744
,595
48,9
73,0
6348
,863
,311
2,84
3,16
851
,706
,479
42,8
37,3
05
Inte
rest
& C
omm
issi
on o
f Fut
ure
Year
s(4
,829
,186
)(4
,829
,186
)(3
,753
,657
)(4
,631
,559
)(4
,631
,559
)(3
,750
,444
)
53,0
72,2
412,
843,
168
55,9
15,4
0945
,219
,406
44,2
31,7
522,
843,
168
47,0
74,9
2039
,086
,861
Long
-term
Por
tion
(5,2
61,3
91)
(5,2
61,3
91)
(5,3
90,7
23)
(2,2
74,5
34)
(2,2
74,5
34)
(3,2
94,7
79)
Cur
rent
Por
tion
47,8
10,8
502,
843,
168
50,6
54,0
1839
,828
,683
41,9
57,2
182,
843,
168
44,8
00,3
8635
,792
,082
Inte
rest
, Com
mis
sion
& D
efer
red
Pen
altie
s 2,
359,
191
2,35
9,19
158
,094
1,45
6,73
41,
456,
734
1,22
9,05
0
50,1
70,0
412,
843,
168
53,0
13,2
0939
,886
,777
43,4
13,9
522,
843,
168
46,2
57,1
2037
,021
,132
Esfa
han
Mob
arak
eh S
teel
Co.
, (Pu
blic
Joi
nt S
tock
)N
otes
to th
e Fi
nanc
ial S
tate
men
tsFo
r the
Yea
r End
ed M
arch
20th
, 201
5
Annual Report 2014-2015 85
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
16.1.2. Based on profit and commission rate
Group Parent Company
2014-15 2013-14 2014-15 2013-14
Million IRR Million IRR Million IRR Million IRR
25% & Above 38,803,516 17,570,543 34,431,825 15,187,669
20% to 25% 10,898,932 22,369,295 9,175,760 19,335,627
15% to 20% 741,383 445,803 624,167 385,344
10% to 15% 2,094,474 259,708 - 224,487
Foreign Currency Loan 3,377,104 4,574,057 2,843,168 3,953,734
55,915,409 45,219,406 47,074,920 39,086,861
16.1.3. Based on payment schedule
Group Parent Company
2014-15 2013-14 2014-15 2013-14
Million IRR Million IRR Million IRR Million IRR
2014-15 52,538,305 41,533,734 44,231,751 35,771,574
2015-16 675,421 733,033 568,634 658,956
2016-17 718,136 737,718 568,634 658,956
2017-18 632,706 728,348 568,634 658,956
2018-19 1,244,054 795,398 568,634 658,956
2019-20 & after 106,787 691,175 568,633 679,463
55,915,409 45,219,406 47,074,920 39,086,861
16.1.4. Based on type of collateral
Group Parent Company
2014-15 2013-14Million IRR Million IRR
Cheque & Promissory Note 24,057,169 19,557,169Binding Agreement 31,858,240 27,517,751
55,915,409 47,074,920
Mobarakeh Steel Company 86
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
17. Advances Received
Note
Group Parent Company
2014-15 2013-14 2014-15 2013-14
Million IRR Million IRR Million IRR Million IRRAdvances Received from Clients:Related Parties 35-4 - - 19,084 72,070
Other Clients 5,892,776 3,187,170 5,840,605 2,940,270
5,892,776 3,187,170 5,859,689 3,012,340
18. Provision for Employees Work Termination Benefits & Savings
Group
2014-15 2013-14Work
Termination Benefit
Savings TotalWork
Termination Benefit
Savings Total
Million IRR Million IRR Million IRR Million IRR Million IRR Million IRRBalance at the beginning of the Year
2,407,136 770,740 3,177,876 1,958,595 572,107 2,530,702
Paid during the Year (667,837) (63,080) (730,917) (287,533) (46,823) (334,356)
Provided Provision 2,060,295 295,859 2,356,154 737,572 245,456 983,028
Balance at the End of the Year 3,799,594 1,003,519 4,803,113 2,408,634 770,740 3,179,374
Parent Company
2014-15 2013-14Work
Termination Benefit
Savings TotalWork
Termination Benefit
Savings Total
Million IRR Million IRR Million IRR Million IRR Million IRR Million IRRBalance at the beginning of the Year
2,278,561 767,086 3,045,647 1,874,274 568,132 2,442,406
Paid during the Year (347,215) (70,964) (418,179) (277,330) (46,498) (323,828)
Provided Provision 1,695,030 307,397 2,002,427 681,617 245,452 927,069
Balance at the End of the Year 3,626,376 1,003,519 4,629,895 2,278,561 767,086 3,045,647
Annual Report 2014-2015 87
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
19. Capital
The capital of Mobarakeh Steel Co. (Public Joint Stock) at 20.03.2015 amounted to IRR50,000 billion includes 50 billion ordinary shares with name IRR1,000 each which have been fully paid.
The combination of shareholders at the date of balance sheet is as follows:
Description2014-15 2013-14
No. of Shares % of Shares No. of Shares % of SharesIranian Mines & Mining Industries Development & Renovation Organization
8,597,951,507 17.20 6,190,525,096 17.20
Mehr Eghtesad Iranian Investment Co. 6,831,773,313 13.66 4,147,119,455 11.52
Social Security Investment Co. 5,104,681,270 10.21 3,193,639,433 8.87
Bank Refah Kargaran 2,166,628,808 4.33 972,295,132 2.70Tehran Province Investment Co. 1,535,338,994 3.07 1,105,444,077 3.07
Goharan Omid Management Development Co. 1,269,251,101 2.54 1,046,511,614 2.91
Bank Tejarat 1,395,033,530 2.79 1,007,424,143 2.80Khorasan Razavi Province Investment Co. 1,225,506,217 2.45 882,364,477 2.45
Fars Province Investment Co. 1,039,192,612 2.08 748,218,681 2.08Banks’ Personnel Savings & Disability Pension Fund 1,089,963,039 2.18 761,932,233 2.12
Esfahan Province Investment Co. 947,471,193 1.89 682,179,260 1.89
Khouzestan Province Investment Co. 927,492,654 1.85 667,794,712 1.85
Villagers’ Social Insurance Fund Institute 895,562,722 1.79 652,128,161 1.81
Eastern Azarbaijan Province Investment Co. 782,876,188 1.57 563,670,856 1.57
Civil Pension Fund 844,341,609 1.69 549,659,123 1.53Privatization Organization – Power of Attorney 762,756,970 1.53 662,498,202 1.84
Mazandaran Province Investment Co. 730,378,746 1.46 525,872,698 1.46
Kerman Province Investment Co. 712,037,420 1.42 512,666,943 1.42
Gilan Province Investment Co. 658,971,030 1.32 474,459,143 1.32Western Azarbaijan Province Investment Co. 570,653,824 1.14 410,870,754 1.14
Sistan & Balouchestan Province Investment Co. 550,823,440 1.10 396,592,877 1.10
Other Shareholders 11,361,313,813 22.72 9,846,132,930 27.3550,000,000,000 100 36,000,000,000 100.00
Mobarakeh Steel Company 88
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
During 2014-15, the company’s capital has been increased from IRR36,000,000 million to IRR50,000,000 (38.88%) from retained profit, dues and cash of shareholders. This capital increase has been registered on 1393/12/21 (12.03.2015).
20. Shares of the Parent Company in Ownership of Subsidiary Companies
2014-15 2013-14
% of Ownership No. of Shares Cost Price
Million IRRCost PriceMillion IRR
International Systems & Automation Co. – IRISA 262,783 593 593
21. Legal Reserve In complying with Articles 140 and 238 of the Commercial Code of 1968 as Amended the amount of IRR4,910,822 million has been transferred from allocable profit of the Parent and Affiliated Companies to legal reserve. Based on the above-mentioned articles allocating a portion of the profit and loss reserve is compulsory until the balance of the aforementioned reserve reaches 10% of company capital. Legal reserve may not be transferred to capital and is not distributable among shareholders until such time as the company is liquidated.
22. Other Reserves
2014-15 2013-14
Million IRR Million IRR
Parent Company:
Capital Reserve 446,262 446,262
23. Minority Interest
Group
2014-15 2013-14
Million IRR Million IRR
Capital 479,932 309,189
Legal Reserve & Other Reserves 27,967 28,781
Surplus Revaluation of Assets 596,512 542,936
Retained Profit (Loss) (84,471) 196,738
1,019,940 1,077,644
Annual Report 2014-2015 89
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
24. Operating Revenues
Group Parent Company2014-15 2013-14 2014-15 2013-14
Million IRR Million IRR Million IRR Million IRRNet Sales 121,656,494 110,745,488 101,999,244 97,278,523Rendered Services 384,024 607,991 - -
122,040,518 111,353,479 101,999,244 97,278,523
24.1. Net sales
2014-15 2013-14Tons Million IRR Tons Million IRR
Group:Domestic:Hot Products 1,124,852 61,281,636 1,165,672 63,505,486Cold Products 12,006 23,422,692 1,951 23,430,385Coated Products 290,440 9,806,049 304,586 10,283,648Other 203,216 966,205 13,703 65,154
1,630,514 95,476,582 1,485,912 97,284,673Export:Hot Products 234,989 20,737,835 127,738 11,272,919Cold Products 130,247 1,901,766 125,507 1,832,549Coated Products 2,472 3,540,311 248 355,347
367,708 26,179,912 253,493 13,460,815Net Sales 1,998,222 121,656,494 1,739,405 110,745,488
2014-15 2013-14Tons Million IRR Tons Million IRR
Parent Company:Domestic:Hot Products 2,764,177 47,482,620 3,224,181 53,555,732Cold Products 1,340,440 27,194,570 1,167,273 22,602,643Coated Products 265,768 7,114,594 283,510 7,797,743Other 41,528 621,971 55,711 794,130
4,411,913 82,413,755 4,730,675 84,750,248Export:Hot Products 1,332,778 17,281,797 859,737 10,351,909Cold Products 119,522 1,901,766 101,029 1,452,781Coated Products 23,007 401,926 48,618 723,585
1,475,307 19,585,489 1,009,384 12,528,275Net Sales 5,887,220 101,999,244 5,740,059 97,278,523
Mobarakeh Steel Company 90
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
24.2. Service income in the amount of IRR384,024 is mainly related to support services and installing systems, industrial automation, engineering and consulting services rendered to Automation & Systems International Engineering Services (IRISA) and Fouldad Mobarakeh Technical & Engineering Companies.
24.3. Export sales of the Parent Company based on product and foreign currency are as follows:
TonsForeign Currency IRR
AmountEuro US Dollar Dirham Million IRR
Hot Coil 1,216,689 306,424,810 14,674,829 708,194,971 15,564,274Hot Plate 116,089 1,879,242 50,502,864 44,660,701 1,717,523Cold Coil 101,709 22,972,096 12,871,679 66,843,152 1,627,412Galvanized Coil 12,282 - 9,395,964 - 247,632Cold Plate 8,633 - 5,536,478 - 146,368Acid Pickling Coil 10,725 3,273,883 - 5,715,836 154,594Cold Hard Coil 9,180 - - 18,407,420 127,686
1,475,307 334,550,031 92,981,814 843,822,080 19,585,489
24.4. Comparison table of operating revenues and cost price of operating revenues of the Parent Company
Operating Revenues
Cost Price of Operating
Revenues Gross Profit
Percentage of Gross Profit to Operating
Profit Million IRR Million IRR Million IRR Million IRR
Net Sales:Hot Products 64,764,417 46,549,834 18,214,583 28%Cols Products 29,096,336 17,618,992 11,477,344 39%Coated Products 7,516,520 4,902,109 2,614,411 35%Other 621,971 626,015 (4,044) -1%Total 101,999,244 69,696,950 32,302,294 32%
Annual Report 2014-2015 91
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
25. Cost Price of Operating Revenues
2014-15 2013-14
Sales Rendered Services Total Sales Rendered
Services Total
Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR
Group:
Direct Consumable Materials 55,029,506 90,234 55,119,740 54,506,856 120,559 54,627,415
Direct Wage 7,334,671 311,203 7,645,874 5,887,200 216,807 6,104,007
Production Overhead:
Indirect Wage 1,490,005 - 1,490,005 1,086,358 - 1,086,358
Indirect Material 10,195,344 1,537 10,196,881 9,214,453 2,324 9,216,777
Depreciation 3,484,440 4,130 3,488,570 3,041,817 1,265 3,043,082
Energy 9,041,838 - 9,041,838 5,780,190 - 5,780,190
Others 3,666,532 144,847 3,811,379 3,613,808 155,642 3,769,450
90,242,336 551,951 90,794,287 83,130,682 496,597 83,627,279
Un-absorbed Expenses (391,192) (391,192) (124,204) (9,752) (133,956)
Total Production Expenses 89,851,144 551,951 90,403,095 83,006,478 486,845 83,493,323
(Increase) Decrease in Under Construction Inventories (3,727,008) - (3,727,008) (1,555,733) (90,747) (1,646,480)
Cost Price of Production 86,124,136 551,951 86,676,087 81,450,745 396,098 81,846,843
(Increase) Decrease in Finished Inventories 1,104,262 (344,875) 759,387 (14,479,963) - (14,479,963)
Cost Price of Operating Revenues 87,228,398 207,076 87,435,474 66,970,782 396,098 67,366,880
Parent Company:
Direct Consumable Materials 42,395,751 - 42,395,751 36,386,449 - 36,386,449
Direct Wage 7,118,041 - 7,118,041 5,717,941 - 5,717,941
Production Overhead:
Indirect Wage 667,609 - 667,609 515,960 - 515,960
Indirect Material 9,163,998 - 9,163,998 5,706,143 - 5,706,143
Depreciation 2,390,862 - 2,390,862 2,142,969 - 2,142,969
Energy 8,119,314 - 8,119,314 4,932,921 - 4,932,921
Other 3,053,511 - 3,053,511 3,816,483 - 3,816,483
72,909,086 - 72,909,086 59,218,866 - 59,218,866
Un-absorbed Expenses (30,868) - (30,868) (14,102) - (14,102)
Total Production Expenses 72,878,218 - 72,878,218 59,204,764 - 59,204,764
(Increase) Decrease in Under Construction Inventories (3,725,395) - (3,725,395) (1,554,340) - (1,554,340)
Cost Price of Production 69,152,823 - 69,152,823 57,650,424 - 57,650,424
(Increase) Decrease in Finished Inventories 544,127 - 544,127 (1,448,786) - (1,448,786)
Cost Price of Operating Revenues 69,696,950 - 69,696,950 56,201,638 - 56,201,638
Indirect material increase is due to the rising foreign material prices and energy consumption which is then due to increasing production levels and rising energy prices.
Mobarakeh Steel Company 92
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
25.1. During the 2014 reporting fiscal period, the Parent Company purchased raw material in the amount of IRR45,635,190 million (prior year IRR35,453,372 million). Major suppliers of raw materials (more than 10%) based on the Country and purchasing amount are as follows:
Type of Raw Materials Country
Parent Company
2014-15 2013-14
Million IRR% to Total Purchase
of the Year Million IRR
% to Total Purchase
of the Year
Iron Ore Iran 18,042,115 40% 15,191,380 43%
Pellet Iran & Bahrain 14,816,134 32% 8,028,186 23%
Scrap Iran 4,327,117 9% 4,899,506 14%
Sponge Iron Iran 463,186 1% 2,174,354 6%
Others - 7,986,638 18% 5,159,946 14%
25.2. Comparison of production of the Parent Company in 2014-15 with nominal capacity and operational capacity is as follows:
Measuring Unit Nominal Capacity
Operational Capacity
Actual Production of 2014-15
Actual Production of 2013-14
Steel Products Group
Slab Thousand Tons 6,150 6,154 6,252 6,100
Hot Coil Thousand Tons 5,900 5,905 6,015 5,864
Cold Coil Thousand Tons 1,550 1,425 1,431 1,338
Tinned Thousand Tons 100 81 81 105
Galvanized Thousand Tons 200 206 209 201
Pre-painted Thousand Tons 100 118 119 130
Annual Report 2014-2015 93
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
26. Sales, Administrative & General Expenses
Group Parent Company
2014-15 2013-14 2014-15 2013-14
Million Rls Million Rls Million Rls Million Rls
Wages, Salaries & Allowances 1,916,429 1,520,877 1,721,994 1,113,214
Transportation 2,440,308 - 2,421,150 1,989,618
Commissioning & Sales Commission 301,431 2,242,396 301,431 354,824
Depreciation 235,463 227,518 66,670 41,352
Others 1,449,103 1,425,430 1,337,902 1,522,124
6,342,734 5,416,221 5,849,147 5,021,132
The reason for increase in wages and salaries expenses mainly related to increase in number of personnel employed in staff units.
27. Other Operating Items
Group Parent Company
2014-15 2013-14 2014-15 2013-14
Million Rls Million Rls Million Rls Million Rls
Sales of Scrap 618,506 - 413,032 684,701
Profit of Credit Sales to Clients 31,917 157,392 24,800 157,257
Un-absorbed Expenses in Production (391,192) (133,956) (30,868) (14,102)
Profit from Exchanging Forex Operating Assets & Liabilities 787,452 2,628,156 786,917 2,628,157
Adjusting Provision for Work Termination Benefits (461,746) - (461,746) -
Goodwill Depreciation (100,764) (94,123) - -
Others 100,620 205,854 - -
584,793 2,763,323 732,135 3,456,013
Adjustment of work termination benefit is due to the changing method of calculation and work termination benefits of hard working conditions.
Mobarakeh Steel Company 94
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
28. Financial Expenses
Group Parent Company
2014-15 2013-14 2014-15 2013-14
Million Rls Million Rls Million Rls Million Rls
Profit & Commission of Financial Facilities Received from Banks
8,862,493 6,388,144 7,630,833 6,013,062
Other Banking Commissions 280,307 454,214 280,160 306,705
9,142,800 6,842,358 7,910,993 6,319,767
29. Other Non-operating Incomes & Expenses
Group Parent Company
2014-15 2013-14 2014-15 2013-14
Million Rls Million Rls Million Rls Million Rls
Profit (Loss) from Sales of Fixed Tangible Assets 94,008 118,119 53,017 117,227
Profit from Sales of Raw Materials, Parts & Surplus Inventories
2,377,038 1,007,378 2,395,511 111,920
Profit from Banking Investment Deposits 905,740 671,895 725,188 550,906
Dividend 2,716,575 3,608,349 4,402,947 3,666,157
Profit from Sales Investments 147,550 300,075 322,645 261,927
Funds Earned form Personnel Mission in Other Organizations & Services Rendered
4,024 5,561 4,024 5,561
Income from Assigning Subsidiary Units 168,568 - - -
Adjusting Performance Tax Provision & Salary of 2012-13 based on Final Paper
(828,069) - (828,069) -
Profit (Loss) from Exchanging Non-operating Assets & Liabilities
685,725 (2,737,743) 304,391 (2,685,388)
Income from Rent 44,277 21,932 36,219 21,932
Others (194,166) 316,122 146,383 22,001
6,121,270 3,311,688 7,562,256 2,072,243
Annual Report 2014-2015 95
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
30. Basis for Calculation of Base Profit (Loss) of Each Share
Group Parent Company
2014-15 (Revised)2013-14 2014-15 (Revised)
2013-14
Million Rls Million Rls Million Rls Million Rls
Profit from Operation under Progress – Operating 28,847,103 41,333,701 27,185,282 39,511,766
Tax Effect (3,242,153) (6,136,056) (3,075,814) (5,718,811)
Minority Interest from Profit from Operation under Progress – Operating
30,527 (116,369) - -
25,635,477 35,081,276 24,109,468 33,792,955
Loss from Operation under Progress – Non-operating (87,402) (3,504,830) (348,737) (4,247,524)
Tax Effect (7,826) 1,353,764 - 1,342,044
Minority Interest from Profit (Loss) from Operation under Progress – Non-operating
(134,222) 3,022 - -
(229,450) (2,148,044) (348,737) (2,905,480)
Net Profit 28,759,701 37,828,871 26,836,545 35,264,242
Tax Effect (3,249,979) (4,782,292) (3,075,814) (4,376,767)
Minority Interest from Net Profit (103,695) (113,347) - -
25,406,027 32,933,232 23,760,731 30,887,475
30.1. Weighted average of ordinary shares for calculation of base profit of each share is as follows:
Group Parent Company
2014-15 2013-14 2014-15 2013-14No.
(Thousand Shares)
No. (Thousand
Shares)
No. (Thousand
Shares)
No. (Thousand
Shares)
Weighted Average of Ordinary Shares 47,326,338 45,374,945 47,326,338 45,374,945
Weighted Average of Shares of the Parent Company in Ownership of Subsidiary Companies (IRISA)
(263) (263) - -
Weighted Average of Ordinary Shares Adjusted at the End of the Year 47,326,075 45,374,682 47,326,338 45,374,945
Mobarakeh Steel Company 96
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
30.1.1. Information related to calculation of weighted average of shares is as follows:
A) Weighted Average of Ordinary Shares:
Ordinary Shares before Issuance Right of Purchasing Shares 36,000,000,000
Shares of the Parent Company in Ownership of Subsidiary Companies 262,783
Bonus Shares 1,500,000,000
Issuance of Priority for Purchasing Shares 12,500,000,000
Price of Priority for Purchasing Shares 1,000
Market Price of each Share Right before Priority Issuance Date 3,362
Adjusted Market Price (Considering Bonus Shares) of each Share Right before Priority Issuance Date 3,227
Theoretical Market Price of each Share Right after Priority Issuance Date 2,671
Adjustment Factor 1.21
Ratification Date of Priority Issuance 03.08.2014
Termination Date of Endorsement 17.10.2014
Registration Date of Capital Increase 11.03.2015
Weighted Average of Ordinary Shares of 2013-14 – After Considering Bonus Shares 37,499,737,217
Adjusted Weighted Average of Ordinary Shares for Calculation of Base Profit of 2013-14 45,374,944,816
Adjusted Weighted Average of Ordinary Shares for Calculation of Base Profit of 2014-15 47,326,337,962
31. Classification Adjustments
In order to show a clear picture of the Group and the Parent Company’s financial position and operation results, all comparative items have been adjusted and revised. Therefore, comparative items do not necessarily correspond with the financial statements of the previous financial period.
Annual Report 2014-2015 97
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
32. Reconciliation Statement of Operating Profit
Group Parent Company
2014-15 2013-14 2014-15 2013-14
Million Rls Million Rls Million Rls Million Rls
Operating Profit 28,847,103 41,333,701 27,185,282 39,511,766
Depreciation Expenses of Fixed Tangible & Intangible Assets
3,714,161 3,175,393 2,462,486 2,184,494
Goodwill Depreciation Expenses 100,764 94,123 - -
Net Increase in Provision for Employees’ Work Termination Benefit & Savings
1,623,739 709,401 1,584,247 670,525
(Increase) in Operating Accounts Receivable 2,262,980 (9,081,221) (4,688,178) (7,138,591)
(Increase) Decrease in Inventories (14,301,681) (17,079,217) (12,963,072) (12,655,947)
Decrease (Increase) in Orders & Prepayments 2,421,305 (2,753,060) 3,097,077 (928,724)
Increase (Decrease) in Operating Accounts Payable (4,446,326) (1,965,446) 1,514,669 274,212
Increase (Decrease) in Advances Received from Clients
2,705,606 (1,936,755) 2,847,351 (1,843,748)
Net Other Non-operating Incomes & Expenses 1,784,437 992,839 1,754,069 (687,457)
24,712,088 13,489,758 22,793,931 19,386,530
Mobarakeh Steel Company 98
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
33. Non-cash Transactions
Group Parent Company
2014-15 2013-14 2014-15 2013-14
Million Rls Million Rls Million Rls Million Rls
Capital Increase from Settled Dues of Shareholders 12,411,798 4,153,451 12,411,798 4,153,451
34. Commitments & Contingent Liabilities & Contingent Assets
34.1. Capital commitments from implementing ratified and conducted contracts at the date of balance sheet are as follows:
Group Parent Company
2014-15 2014-15
Million Rls Million Rls
Building 15,823,632 15,823,632
Production Machineries 1,101,221 1,101,221
Equipment 2,053,056 2,053,056
Others 155,583 -
19,133,492 18,977,909
34.2. Contingent liabilities are as follows:
Group Parent Company
Million Rls Million Rls
Contingent Liability Subject of Article 235 of Commercial Code as Amended:
Other Guarantees 1,711,604 157,647
1,711,604 157,647
34.3. According to a letter numbered 93/38774 dated 1391/08/17 (07.11.2012) issued by the Esfahan Environmental Protection Agency, the Mobarakeh Steel Company was listed as a polluting company in the list of polluting industries as of 1393/10/01 (22.12.2014).
Annual Report 2014-2015 99
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
35. Transactions with Related Parties
35.1. Transactions of the Group with related parties during 2014-15:(Amounts in Million IRR)
Description Affiliated Party Type of Affiliation
Purchase of Goods &
Services
Sales of Goods & Services
Subsidiary Companies Tara Steel Board Member &
Subsidiary 154,070 -
Sports & Cultural Board Member & Subsidiary 292,000 -
Total 446,070 -
Other Related Parties
Esfahan Steel Common Board Member 596,175 570,764
Khouzestan Steel Common Board Member - -
Eastern Iran Iron Ore (Sangan)
Common Board Member - -
Central Iron Ore (Choghart)
Common Board Member 3,303,176 -
Ascotec Common Board Member 130,246 -
Gole Gohar Board Member 5,527,231 -
Chador Malou Board Member 8,249,249 -
IRASCO Common Board Member 385,259 -
IRITEC Common Board Member - -
Sirjan Iranian Steel
Common Board Member 1,013,041 -
Zarand Kerman Steel
Common Board Member 1,553,478 -
Consumption Cooperation Special Relations 298,147 3,224
Housing Cooperation Special Relations - 610
Toka Nasouz Board Member 145,373 -
Toka Rail Board Member 2,740,267 -
Toka Tadarok Board Member 3,897,469 -
Atieh Naghsh Jahan Special Relations - -
Pension Fund Special Relations - -
Sepehr Kavir Steel
Major Purchaser of Products - 904,224
SITCO Board Member 408 -
Espadan Control Index Board Member - 11,924
Total 27,839,520 1,490,746
Grand Total 28,285,590 1,490,746
35.2
. Bal
ance
of fi
nal a
ccou
nt o
f Gro
up’s
rela
ted
parti
es
(Am
ount
s in
Mill
ion
IRR
)
Des
crip
tion
Rel
ated
Par
tyTr
ade
Rec
eiva
bles
Non
-trad
e R
ecei
vabl
es
Paid
Fac
ilitie
sPr
epay
men
tsTr
ade
Paya
bles
Non
-trad
e Pa
yabl
esA
dvan
ces
Rec
eive
d D
ivid
end
Rec
eiva
ble
Div
iden
d Pa
yabl
e
2014
-15
2013
-14
Net
Net
C
laim
Deb
tC
laim
D
ebt
Gro
up
Com
pani
es
Sub
sidi
ary
Com
pani
es
Tara
Ste
el29
,832
272,
464
-73
,008
--
-4,
475
-37
9,77
9-
726,
874
-
Spo
rts &
C
ultu
ral
--
--
-10
,238
--
--
10,2
38-
80
Met
il S
teel
--
-30
0,53
227
9-
-35
5,05
9-
655,
591
279
-27
9
Sep
ahan
Nov
in-
--
--
--
--
--
10-
Tota
l 29
,832
272,
464
-37
3,54
027
910
,238
-35
9,53
4-
1,03
5,37
010
,517
726,
884
359
-
TAM
CO
--
--
--
-6,
462
-6,
462
--
199
Met
al M
ines
D
evel
opm
ent
--
--
--
-1,
191,
467
222
1,19
1,46
722
21,
294,
457
-
Tota
l -
--
--
--
1,19
7,92
922
21,
197,
929
222
1,29
4,45
719
9
Sha
reho
lder
s w
ith
Con
side
rabl
e In
fluen
ce
IMID
RO
-19
3,61
8-
--
--
-3,
927,
609
193,
618
3,92
7,60
915
8,37
5-
Just
ice
Sha
re-
--
--
--
-5,
474,
621
-5,
474,
621
-3,
886,
052
Soc
ial S
ecur
ity
Org
aniz
atio
n-
--
--
--
-1,
129,
178
-1,
129,
178
-
Meh
r Egh
tesa
d-
--
--
--
-79
1,58
1-
791,
581
-1,
387,
452
Tota
l -
193,
618
--
--
--
11,3
22,9
8919
3,61
811
,322
,989
158,
375
5,27
3,50
4
Oth
er
Rel
ated
P
artie
s
Esf
ahan
Ste
el
--
--
94,2
84-
--
--
94,2
84-
208,
911
Kho
uzes
tan
Ste
el
--
-31
,987
--
--
-31
,987
-95
,401
-
Eas
tern
Iran
Iro
n O
re
(San
gan)
--
--
--
--
--
--
29,8
21
Cen
tral I
ron
Ore
(Cho
ghar
t)-
--
--
--
--
--
-63
5,48
1
Asc
otec
7,37
038
,477
-38
0,88
1-
--
--
426,
728
-13
1,69
5-
Gol
e G
ohar
-
--
1,35
2,90
3-
--
--
1,35
2,90
3-
257,
706
-
Cha
dor M
alou
--
--
65,5
00-
--
--
65,5
00-
1,16
3,94
8
IRA
SC
O-
204,
868
--
--
--
-20
4,86
8-
672,
792
-
IRIT
EC
--
--
--
--
--
-61
4,55
6-
Sirj
an Ir
ania
n S
teel
--
--
5,24
1-
--
--
5,24
1-
141,
759
Zara
nd K
erm
an
Ste
el
--
--
--
--
--
-10
0,12
2-
Con
sum
ptio
n C
oope
ratio
n -
--
-53
,248
--
--
-53
,248
40,3
01-
Hou
sing
C
oope
ratio
n -
-11
2,00
0-
--
--
-11
2,00
0-
199,
691
-
Toka
Nas
ouz
--
--
26,2
28-
--
--
26,2
28-
10,0
70
Toka
Rai
l -
--
-50
,924
--
--
-50
,924
-43
4,63
7
Toka
Tad
arok
-
--
291,
852
--
--
-29
1,85
2-
--
Atie
h N
aghs
h Ja
han
--
--
9,35
6-
--
--
9,35
6-
-
Pen
sion
Fun
d-
--
--
9,82
3-
--
-9,
823
-6,
930
Sep
ehr K
avir
Ste
el
5,12
3-
--
--
--
-5,
123
--
-
SIT
CO
--
--
-2,
774
--
--
2,77
4-
2,36
6
Esp
adan
C
ontro
l Ind
ex-
--
--
81-
--
-81
-29
5
Tota
l 12
,493
243,
345
112,
000
2,05
7,62
330
4,78
112
,678
--
-2,
425,
461
317,
459
2,11
2,26
42,
634,
218
Gra
nd T
otal
42
,325
709,
427
112,
000
2,43
1,16
330
5,06
022
,916
-1,
557,
463
11,3
23,2
114,
852,
378
11,6
51,1
874,
291,
980
7,90
8,28
0
Esfa
han
Mob
arak
eh S
teel
Co.
, (Pu
blic
Joi
nt S
tock
)N
otes
to th
e Fi
nanc
ial S
tate
men
tsFo
r the
Yea
r End
ed M
arch
20th
, 201
5
Annual Report 2014-2015 101
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
35.3. Transactions of the Parent Company with related parties during 2014-15
(Amounts in Million IRR)
Description Affiliated Party Type of Affiliation
Liable to Article 129
Purchase of Goods &
Services
Sales of Goods & Services
Subsidiary Companies
Hormozgan Steel
Board Member & Subsidiary 1,304,830 3,388,542
IRISA Board Member & Subsidiary 91,636 -
Foulad Sang Board Member & Subsidiary 110,142 -
Mobarakeh Steel Engineering (Mehrgi)
Board Member & Subsidiary 62,555 -
Tara Steel Board Member & Subsidiary 154,070 -
Sports & Cultural
Board Member & Subsidiary 292,000 -
Sanie’e Kaveh Board Member & Subsidiary - 1,331,197
Felez Tadarok Board Member & Subsidiary 94,913 -
Amir Kabir Kashan
Board Member & Subsidiary - 1,411,776
Automobile Plate
Board Member & Subsidiary 12,359 2,838,445
Metil Steel Board Member & Subsidiary - -
Sangan Steel Board Member & Subsidiary - 720
Sepahan Novin Board Member & Subsidiary - -
Sefid Dasht Steel
Board Member & Subsidiary - 29,052
Total 2,122,505 8,999,732
Toka Foulad Baord Member 38,635 -
Toka Beton Baord Member 25,781 -
TAMCO Baord Member - -
Metal Mines Development Baord Member - -
Total 64,416 -
Mobarakeh Steel Company 102
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
Description Affiliated Party Type of Affiliation
Liable to Article 129
Purchase of Goods &
Services
Sales of Goods & Services
Other Related Parties
Esfahan Steel Common Board Member 596,175 570,764
Khouzestan Steel
Common Board Member - -
Eastern Iran Iron Ore (Sangan)
Common Board Member - -
Central Iron Ore (Choghart)
Common Board Member 3,303,176 -
Ascotec Common Board Member 130,246 -
Gole Gohar Board Member 5,527,231 -
Chador Malou Board Member 8,249,249 -
IRASCO Common Board Member 385,259 -
IRITEC Common Board Member - -
Sirjan Iranian Steel
Common Board Member 1,013,041 -
Zarand Kerman Steel
Common Board Member 1,553,478 -
Consumption Cooperation
Special Relations 298,147 3,224
Housing Cooperation
Special Relations - 610
Toka Nasouz Board Member 145,373 -
Toka Rail Board Member 2,740,267 -
Toka Tadarok Board Member 3,897,469 -
Atieh Naghsh Jahan
Special Relations - -
Pension Fund Special Relations - -
Total 27,839,111 574,598
Grand Total 30,026,032 9,574,330
(Amounts in Million IRR)
35.4
. Bal
ance
of fi
nal a
ccou
nt o
f the
Par
ent C
ompa
ny’s
rela
ted
parti
es
(Am
ount
s in
Mill
ion
IRR
)
Des
crip
tion
Rel
ated
Par
tyTr
ade
Rec
eiva
bles
Non
-trad
e R
ecei
vabl
es
Paid
Fac
ilitie
sPr
epay
men
tsTr
ade
Paya
bles
Non
-trad
e Pa
yabl
esA
dvan
ces
Rec
eive
d D
ivid
end
Rec
eiva
ble
Div
iden
d Pa
yabl
e
2014
-15
2013
-14
Net
Net
C
laim
Deb
tC
laim
D
ebt
Gro
up
Com
pani
es
Sub
sidi
ary
Com
pani
es
Hor
moz
gan
Ste
el
-5,
549,
275
--
1,24
2,26
2-
-29
3,36
0-
5,84
2,63
51,
242,
262
591,
622
IRIS
A-
59-
-23
,169
--
14,3
7617
414
,435
23,3
4337
,768
Foul
ad S
ang
--
-21
7,38
5-
--
77,9
47-
295,
332
-33
0,68
4M
obar
akeh
S
teel
E
ngin
eerin
g (M
ehrg
i)
-9,
519
--
41,0
29-
-12
,522
-22
,041
41,0
2919
,285
Tara
Ste
el29
,832
272,
464
-73
,008
--
-4,
475
-37
9,77
9-
726,
874
Spo
rts &
C
ultu
ral
--
--
-10
,238
--
--
10,2
3880
San
ie’e
Kav
eh
408,
360
172
--
--
12,6
1814
9,91
2-
558,
444
12,6
1851
9,27
7Fe
lez
Tada
rok
--
-83
,147
--
-2,
086
-85
,233
-43
5,34
1A
mir
Kab
ir K
asha
n 26
5,27
8-
--
--
5,62
67,
905
-27
3,18
35,
626
464,
936
Aut
omob
ile
Pla
te1,
330,
796
5,13
8-
--
-10
0-
-1,
335,
934
100
--
Met
il S
teel
-
--
-27
9-
-35
5,05
9-
355,
059
279
279
San
gan
Ste
el
-81
,977
--
--
-43
5-
82,4
12-
59,1
37S
epah
an N
ovin
--
--
--
--
--
-10
Sefi
d D
asht
S
teel
-44
3,25
8-
--
--
--
443,
258
--
-
Tota
l 2,
034,
266
6,36
1,86
2-
373,
540
1,30
6,73
910
,238
18,3
4491
8,07
717
49,
687,
745
1,33
5,49
53,
127,
881
57,4
12TA
MC
O-
--
--
--
6,46
2-
6,46
2-
199
Met
al M
ines
D
evel
opm
ent
--
--
--
-1,
191,
467
222
1,19
1,46
722
21,
294,
457
Tota
l -
--
--
--
1,19
7,92
922
21,
197,
929
222
1,29
4,45
719
9
Sha
reho
lder
s w
ith
Con
side
rabl
e In
fluen
ce
IMID
RO
-19
3,61
8-
--
--
-3,
927,
609
193,
618
3,92
7,60
915
8,37
5Ju
stic
e S
hare
--
--
--
--
5,47
4,62
1-
5,47
4,62
13,
886,
052
Soc
ial S
ecur
ity
Org
aniz
atio
n-
--
--
--
-1,
129,
178
-1,
129,
178
Meh
r Egh
tesa
d-
--
--
--
-79
1,58
1-
791,
581
1,38
7,45
2To
tal
-19
3,61
8-
--
--
-11
,322
,989
193,
618
11,3
22,9
8915
8,37
55,
273,
504
Oth
er R
elat
ed
Par
ties
Esf
ahan
Ste
el
--
--
94,2
84-
706
--
-94
,990
208,
911
Kho
uzes
tan
Ste
el
--
-31
,987
--
--
-31
,987
-95
,401
Eas
tern
Iran
Iro
n O
re
(San
gan)
--
--
449,
821
--
--
-44
9,82
129
,821
Cen
tral I
ron
Ore
(C
hogh
art)
--
--
1,12
6,46
7-
--
--
1,12
6,46
763
5,48
1
Asc
otec
7,37
038
,477
-38
0,88
1-
--
--
426,
728
-13
1,69
5G
ole
Goh
ar
--
-1,
352,
903
--
--
-1,
352,
903
-25
7,70
6C
hado
r Mal
ou-
--
-1 1
5,85
6-
--
--
115,
856
1,16
3,94
8IR
AS
CO
-20
4,86
8-
--
--
--
204,
868
-67
2,79
2IR
ITE
C-
--
--
-34
--
-34
614,
556
Sirj
an Ir
ania
n S
teel
--
--
5,24
1-
--
--
5,24
114
1,75
9
Zara
nd K
erm
an
Ste
el
--
--
263,
356
--
--
-26
3,35
610
0,12
2
Con
sum
ptio
n C
oope
ratio
n -
--
-53
,248
--
--
-53
,248
40,3
01
Hou
sing
C
oope
ratio
n -
-11
2,00
0-
--
--
-11
2,00
0-
199,
691
Toka
Nas
ouz
--
--
26,2
28-
--
--
26,2
2810
,070
Toka
Rai
l -
--
-16
0,92
4-
--
--
160,
924
434,
637
Toka
Tad
arok
-
--
291,
852
--
--
-29
1,85
2-
Atie
h N
aghs
h Ja
han
--
--
9,35
6-
--
--
9,35
6
Pen
sion
Fun
d-
--
--
9,82
3-
-0
-9,
823
6,93
0To
tal
7,37
024
3,34
511
2,00
02,
057,
623
2,30
4,78
19,
823
740
-0
2,42
0,33
82,
315,
344
2,11
2,26
42,
631,
557
Gra
nd T
otal
2,
041,
636
6,79
8,82
511
2,00
02,
431,
163
3,61
1,52
020
,061
19,0
842,
116,
006
11,3
23,3
8513
,499
,630
14,9
74,0
506,
692,
977
7,96
2,67
2
Mobarakeh Steel Company 104
Esfahan Mobarakeh Steel Co., (Public Joint Stock)Notes to the Financial Statements
For the Year Ended March 20th, 2015
35.5. With the exception of the following cases, transactions with subsidiary companies were not significantly different.
35.5.1 Raw material including pellets, ferro-manganese and lime has been sold to the South Hormozgan Steel Company at cost price.
36. Retained Earnings at the End of the YearAllocations of retained earnings at the end of the year of the following items are subject to the approval of Ordinary General Assembly of Shareholders.
Total Amount Each ShareMillion IRR IRR
Legal Duties (Based on Article 90 of Trade Amendment Act):Distribution of at Least 10% of Net Profit of 2014-15 2,376,073 48Suggestion of the Board of Director:Proposed Dividend of the Board of Directors (50% of Net Profit of 2014-15) 11,880,366 238
37. Foreign Currency Situation Foreign currency assets and liabilities and foreign currency commitments at the end of the year are as follows:
Note US Dollar Euro Emirates Dirham
Parent Company:Cash 3 5,913,511 83,238,087 25,643,253Trade & Non-trade Receivables 5 71,808,364 5,145,565 35,699,599Total Foreign Currency Monetary Assets 77,721,875 88,383,652 61,342,852
Financial Facilities 16 - 94,282,007 -Total Foreign Currency Monetary Liabilities - 94,282,007 -
Net Foreign Currency Monetary Assets (Liabilities) 77,721,875 (5,898,355) 61,342,852
Net Foreign Currency Monetary Assets (Liabilities) at 20.03.2014 51,451,124 19,872,040 714,145,630
Foreign Currency Capital Commitments - 236,407,003 -
37.1. Earned foreign currency from export and foreign currency required for import and other payments during the year is as follows:
Group Parent Company
US Dollar Euro Dirham US Dollar Euro Dirham
Sales & Services Rendered 233,317,433 300,783,767 1,221,656,419 92,981,814 334,550,031 843,822,080
Other Receives 703,625 331,752 7,117,901 667,779 274,862 5,968,945
Purchase of Raw Materials 500,449,259 79,391,532 99,267,711 474,193,150 61,504,180 99,115,147
Other Payments 17,233,422 92,801,496 293,997,834 11,338,860 78,097,794 234,997,619
top related