Mobarakeh Steel Company Annual Report (2014

Transcription

In the name of God
P roduced by:
T h e C o rp o ra te P l anni ng and Investment D epartment
i n C ooperati on w i th
th e Publ i c R el ati ons D epartment
Table of Contents
Financial Highlights ..................................................................................................................................5
Message of the Managing Director ............................................................................................................6
Board of Directors ................................................................................................................................7
Report of the Board of Directors ................................................................................................................8
Senior Managers ......................................................................................................................................9
Our Capital ...........................................................................................................................................10
Our Shareholders ..................................................................................................................................11
Organizational Chart ...............................................................................................................................12
A Glance at the Global Steel Production Performance ............................................................................14
Introducing Mobarakeh Steel Company (MSC) ...............................................................................15
Profile .....................................................................................................................................................16
Mission ...................................................................................................................................................16
Vision .....................................................................................................................................................16
Organizational Values ............................................................................................................................16
Performance ........................................................................................................................................19
Production Performance ..........................................................................................................................20
Exports ................................................................................................................................................... 23
Quality Control ...................................................................................................................................... 24
Expansion Projects ................................................................................................................................26
Management Information System ...........................................................................................................29
Technology .............................................................................................................................................30
Human Resources ..................................................................................................................................31
Safety & Occupational Health ..............................................................................................................32
Corporate Social Responsibilities & Environmental Concerns ...............................................................34
Club History ............................................................................................................................................38
Organizational Excellence .......................................................................................................................40
MSC Excellence Road Map ...................................................................................................................41
Certificates & Awards ............................................................................................................................42
Financial Performance ............................................................................................................................45
Financial Ratios .....................................................................................................................................45
Sales Performance.................................................................................................................................47
Shares Performance ..............................................................................................................................48
Risk Management ..................................................................................................................................48
Investments ............................................................................................................................................49
Financial Statements ...........................................................................................................................51
Financial Highlights
Net Sales
Long-term Investments
million IRR
million IRR
105،000،000
95،000،000
85،000،000
75،000،000
65،000،000
55،000،000
45،000،000
35،000،000
25،000،000
15،000،000
5،000،000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
2013-2014
2013-2014
2014-2015
Gross Profit
Capital
million IRR
million IRR
45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
2014-2015
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
0
2013-2014
2014-2015
2013-2014
Financial Dept
2014-2015
Total Assets
million IRR
million IRR
180,000,000
160,000,000
140,000,000
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
0
45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
2013-2014
2014-2015
2013-2014
The Iranian fiscal year ends on 20 March.
The rate of exchange was $1 / IRR27,994 at the end of the period.
2014-2015
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 201314 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 Karbasian
Chairman
Representing Yazd Province
Investment Company
Mr. Hamidreza Azimiyan
Board Member
Representing Kerman Province
Investment Company
Dr. Bahram Sobhani
Deputy Chairman &
Managing Director
Representing IMIDRO
Mr. Mohammadreza Ayatollahi
Board Member
Representing Sadr Tamin
Investment Company
Dr. Gholam Hossein Taghi Nattaj
Malek Shah
Board Member
Representing Mehr-e Eghtesad-e Iranian
Investment Company
8 Mobarakeh Steel Company
Report of the
Board of Directors
During 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.
SAE1030 steels applied for special
purposes.
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.
• 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.
Senior Managers
F. Arzani
Technology Deputy
M. Arbabzadeh
Operation Deputy
A. H. Naderi
Economic & Finance Deputy
M. Nikfar
Human Resources &
Organizing Deputy
M. Tavalaiyan
Purchasing Deputy
M. Akbari
Sales & Marketing Deputy
A.Saeedbakhsh
Projects Execution Deputy
Our Capital
Capital Increase Trend
60,000,000
40,000,000
20,000,000
Feb 2015
Jan 2014
Jun 2011
Feb 2006
Jun 2005
May 2005
0
Jan 2003
The following line chart demonstrates this
company’s capital increases since 2001.
million IRR
Apr 2001
The 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.
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%
Organizational
Chart
A Glance at the
Global Steel
Production
Performance
The following chart reflects upon the global steel production
levels since 2005.
Global Steel Production
million tons
2,000
1,500
1,000
500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
0
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
China: 50%
Japan: 7%
India: 5%
South Korea: 4%
European Union: 10%
Africa: 1%
America Continent: 14%
Iran: 1%
Middle East excluding Iran: 1%
CIS: 7%
Introducing
Mobarakeh Steel
Company (MSC)
Profile
Mission
Historical Background
Esfahan’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.
Playing a pivotal role in the Iranian industrial
economic and social development upgrading
the steelmaking technology as a world class
organization.
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.
Pioneering 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.
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 (200607) 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).
Vision
Organizational
Values
At 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
Production
Performance
During 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:
Production
Thousand Tons
4500
4000
2014-15
2013-14
3500
3000
2500
2000
1500
1000
500
0
Hot Products
(including saba)
Cold
Products
Coated
Products
Other
Products
Products Flow Diagram in 2014-15
All figures are in thousand tons
Exports
Mobarakeh 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:
1,475
Exports
2014-15
2013-14
612
2012-13
523
2011-12
2010-11
2009-10
2008-09
2007-08
314
405
658
738
1,019
thousand 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
Georgia •
• Italy
Armenia•
• Iraq
Jordan •
• Kuwait
Qatar • • UAE
• Oman
Saudi Arabia •
Quality Control
Products Quality Control
In 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 area
2. Use of mechanized system in steel production
and continuous rolling area
3. 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 products
5. Preparation and compilation of complete atlas
of acid wash products defects
6. Implementation and use of administration
automation system in quality control units
Achievements
Some 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;
• Obtaining the ISO14001:2004
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.
Expansion Projects
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.
Expansion Projects
The 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:
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.
Steel Making Expansion Project
Once 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.
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:
In short, this project aims to:
• 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
• 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 Project
The 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 Project
This 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
Sangan Expansion Project
This project has a 5 million ton/annum capacity and includes pelletizing and concentrate units. This
project also aims to complete the current production chain.
Sefid Dasht Steel Making Project
Located 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.
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.
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
Management
Information System
At 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.
Achievements
Main 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 Plans
Some 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)
Technology
Current Technologies Applied by the MSC
The 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.
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.
Initial Technology Suppliers
Italimpianti, 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.
Some of the main measures taken during the
reporting period in reference with upgrading
existing technologies include:
The Production Lines
The 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
Technology
At 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
• 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.
Human
Resources
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.
Education Levels of Personnel
Ph.D & Masters Degree: 166
Below High School Diploma 3,637
Technician: 949
High School Diploma: 8,792
Bachelors Degree: 1,389
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-todate 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 Period
Some 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.
Safety &
Occupational
Health
Safety
At 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
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 Health
Occupational 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.
Corporate Social
Responsibilities
& Environmental
Concerns
We 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)
Cultural
52,381,818,883
Social
26,966,100,000
Hygiene
3,350,000,000
Charities
570,000,000
Civil
21,510,000,000
Education
1,300,000,000
Religious
2,030,000,000
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.
Our Environmental Performance
As 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.
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.
Energy Saving Measures
As 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
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:
Pelletizing Unit’s Electrical Power Consumption Performance
Electrical Power
National Standard
36.55
2012-13
32.28
36.00
2011-12
2014-15
34.16
2010-11
33.68
35.31
2009-10
2013-14
36.60
2008-09
37.85
2006-07
34.83
39.14
2005-06
2007-08
39.57
2004-05
42.32
2003-04
43.58
2002-03
2001-02
KWH / Ton
50.75
50
Pelletzing Unit’s Thermal Energy Consumption Performance
13.25
2014-15
Thermal Energy
National Standard
14.32
16.68
2012-13
2013-14
16.5
2011-12
14.16
16.46
2008-09
2010-11
16.44
2007-08
14.80
16.87
2006-07
2009-10
16.55
2005-06
18.33
2004-05
21.92
2003-04
18.83
2002-03
24.01
2001-02
NCM / Ton
25.21
Hot Rolling Unit’s Electrical Power Consumption Performance
80.6
78.2
79.4
78.9
78.4
76.0
77.6
78.0
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
Note: These charts clearly show that our energy consumption levels are well below national standards and this trend is ongoing.
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.
Electrical Power
National Standard
80.1
94.8
2004-05
2006-07
101.9
2003-04
82.0
105.1
2002-03
2005-06
113.9
NCM / Ton
2001-02
105
Club History
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.
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.
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.
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
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.
Sistership and Sports Relationship Contract
with:
1. Internatzionale Milan – Italy
2. Kawasaki Frontale – Japan
3. Gamba Osaka - Japan
4. Bunyodkar – Uzbekistan
5. Pakhtakor - Uzbekistan
6. Al Sharjah – UAE
7. Kayserspor – Turkey
8. Al Ahed – Lebanon
9. Al Arabi – Kuwait
10. Jonac – Nigeria
11. Al Mina – Iraq
Quality Guarantees
Certificates:
and
Management
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
Organizational
Excellence
From 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 (CEMarking) in 1386 (2007-08), etc.
MSC Excellence
Road Map
Certificates &
Awards
Measures taken for Obtaining Standards
This 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
Testing and Calibration Laboratories Standard
ISO/IGO - 17025 : 2009
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
Certificate of MAKE Award (2015)
National Quality Unit Award (2011)
First Rank Certificate in Basic Metals(2012)
Trophy of Celebrating the Best
Research & Development Units
(2014)
National Iranian Quality Award
(2005)
Top Provincial Unit (2011 )
Trophy of National Training &
Development Excellence Model
(2015)
Trophy of Export (2014)
Golden National Productivity &
Organizational Excellence Award
(2013)
Crystal Trophy of Iran Financial
Management Awards (2011)
Trophy of National
Empowerment
Ceremony (2011)
Consumer Rights Recognition
License & Award (2014)
Consumer Rights Recognition
License and Award (2011)
Trophy of MAKE Awards (2011)
FINANCIAL PERFORMANCE
Financial Ratios
0.49
0.12
0.10
2013-14
2014-15
2.60
1.5
2.04
2.07
2.32
2.16
2.16
0.74
2012-13
2013-14
0.57
0.70
1.31
2011-12
2014-15
2011-12
2012-13
2013-14
0.53
0.51
1.07
1.10
0.52
0.53
The following charts reflect the MSC’s leverage
ratios:
1.14
Liability Ratio
Liability to Shareholders’ Equity
1.10
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.
2012-13
Turnover of Assets
Turnover of Fixed Assets
Turnover of Inventories
0.55
The following charts demonstrate our activity
ratios:
1
1.03
0.94
2011-12
Activity Ratios
Activity 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.
1.11
Current Ratio
Quick Ratio
0.10
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:
2014-15
Profitability Ratios
As 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.
Profitability
Average
Industry
Year
2011-12
2012-13
2013-14
2014-15
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 Shareholders’ Equity
23.75%
42.16%
49.42%
28.3%
27.67%
(million IRR)
6,514
3,384
2,693
2013-14 2014-15
2013-14 2014-15
2013-14 2014-15
MSC’s & Steel Industry’s Net Profit Margin Trend
MSC
Steel Industry
32%
28.38%
25.90%
23.20%
24.83%
21.11%
17.68%
2014-15
2013-14
2012-13
13.38%
2011-12
6,917
Sales Per Capita
(million IRR)
12,217
Fixed Assets Per Capita
(million IRR)
9,957
Assets Per Capita
Sales
Performance
Prior 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.
For the Year Ended 20.03.2015
Product
Domestic
Market
Company’s Share in
Domestic Market
Exports
Domestic
Market
Company’ Share in
Domestic Market
IRR million
IRR million
IRR million
IRR million
Exports
IRR million
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
234,642,193
82,413,755
35.1%
19,585,489
217,711,757
84,750,247
38.9%
12,528,276
Total
Total
Sales
Percent
For the Year Ended 20.03.2014
101,999,244
Sales
621,971
Semi Final
7,516,520
Coated
Cold
Hot
29,096,336
64,764,417
(million IRR)
97,278,523
IRR million
Shares Performance
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 following
table demonstrates MSC’s shares performance in the previous four years:
Year Ended
No. of Traded
Shares
Value of
Traded
Shares
)million IRR(
No. of
Transaction
Days
End of the Fiscal Year
Market Value
)million IRR(
Price of
Each Share
)IRR(
Capital
)million IRR(
20.03.2011
2,119,175,427
5,541,588
182
43,023,400
2,723
15,800,000
19.03.2012
2,311,052,310
6,948,491
233
76,574,400
2,968
25,800,000
20.03.2013
4,096,816,478
16,081,117
223
110,914,200
4,299
25,800,000
20.03.2014
4,603,181,501
19,940,386
237
155,628,000
4,323
36,000,000
20.03.2015
1,987,553,831
6,652,669
224
96,000,000
1,920
50,000,000
Information Disclosure & Shares Liquidity
The 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%
Risk Management
Based on European Excellence Quality Management Model approaches (EFQM) and also in accordance
with 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 and
the 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.
3,857,197
2014-15
2013-14
931,774
2011-12
2010-11
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.
497,702
In 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.
1,427,044
3,585,482
Investm ent R etur ns on TS E Listed
Companies
(IRR million)
2012-13
Investments
Our subsidiary companies are as follows:
MSC Group
Investment in Affiliated
Companeis
Investment in
Subsidiary Companeis
Investment in Subsidiary
Companies:
Hormozgan Steel Co.
Chahar Mahal va Bakhtiari
Sefid Dasht Steel Co.
Automative Sheet Co.
Foolad Sang Mining &
Industrial Co.
Ownership
Stake (%)
100
Investment in Affiliated
Companies:
Metals & Minings Developing
Investment Co.
Investment in Other
Companies
Ownership
Stake (%)
19.29
Investment in Other
Companies:
Chadormaloo Industrial &
Mining Co.
Gole Gohar Industrial & Mining
Co.
Ownership
Stake (%)
10.40
64.99
Metil Steel Co.
66.30
Tuka Foolad Investment Co.
25
Iran Mercantile Exchange Co.
0.67
98.87
Ardekan Novin Electrode Co.
31
Esfahan Health Services Co.
0.88
Kashan Amir-Kabir Steel Co.
52.57
Construction & Erection
Equipment Supply Co.
International Systems
Engineeiring & Automation
Co. (IRISA)
68.17
Tara Steel Co.
Mobarakeh Steel Engineering
Co.
Sang va Ahan-e Foolad-e
Sangan Co.
Felez Tadarok Co.
70
99
99.6
99.6
Foolad Sepahan Sports Club
95
Sepahan Novin Cultural &
Sports Co.
95
Tuka Beton Co.
32.16
37.68
25
9.94
Esfahan Subway Co.
10
Iran Energy Exchange co.
0
Financial
Statements
Islamic Republic of Iran
Ministry of Economic Affairs & Finance
Audit Organization
Independent Auditor’s and Legal Inspector’s Report
To: 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.
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.
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
Clause 4, Article 7
Clause 10, Article 7
Article 10
Description
Submitting the 6 month, mid-term financial statements at maximum 75 days
following the end of the period.
Submitting the audited 6 month, mid-term consolidated financial statements at
maximum 60 days following the end of the 6 month period.
Submitting 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.
Audit Organization
15 Tir 1394 (06.07.2015)
Naser Diyanati
Jamshid Danesh
8,841,523
6
7
8
Inventory
Prepayments
Maintained Assets for Sales
190,865,334
95,389,625
3,084,621
67,293,158
Current Liabilities:
Liabilities & Shareholders’ Equity
159,192,316 Total Liabilities & Shareholders’ Equity
Total Shareholders’ Equity
23
190,865,334
87,809,973
1,019,940
86,790,033
Minority Interest
31,433,542
Total Rights related to Shareholders of the Parent Company
446,262
4,910,822
(593)
50,000,000
103,055,361
10,105,195
4,803,113
5,261,391
40,691
92,950,166
5,892,776
53,013,209
15,659,948
4,152,273
14,231,960
Million IRR
20.03.2015
Retained Earnings
21
22
Legal Reserve
20
19
Other Reserves
of the Subsidiary Companies
Shares of the Parent Company in Ownership
Capital (50,000,000,000 IRR1000 share, fully paid)
69,399,318 Shareholders’ Equity:
13,209 Total Liabilities
53,303,369 Total Non-current Liabilities
16
18
3,242,801 Provision for Employees’ Work Termination Benefits
13
17
16
15
14
13
Note
11,040,580 Long-term Financial Facilities
1,799,359 Long-term Payables
Non-current Liabilities:
89,792,998 Total Current Liabilities
24,708
11,252,755 Advances Received
42,097,779 Financial Facilities
26,072,444 Payable Dividend
2,048,265 Tax Payable
8,297,047 Trade & Non-trade Payables
(Revised)
20.03.2014
Million IRR
The explanatory notes are an integral part of the financial statements.
Total Assets
Total Non-current Assets
11
12
Fixed Tangible Assets
Other Assets
3,463,331
19,661,528
9
10
1,886,987
95,475,709
73,118
22,033,092
5
Goodwill & Intangible Assets
Long-term Receivables
Non-current Assets:
Total Current Assets
56,399,460
5
Trade & Non-trade Receivables
2,373,774
3
4
5,754,742
Million IRR
20.03.2015
Cash
Note
Short-term Investments
Current Assets:
Assets
Esfahan Mobarakeh Steel Co., (Public Joint Stock)
Consolidated Balance Sheet
As at March 20th, 2015
159,192,316
73,727,231
1,077,644
72,649,587
32,536,838
446,262
3,667,080
(593)
36,000,000
85,465,085
8,647,429
3,179,374
5,390,723
77,332
76,817,656
3,187,170
39,886,777
13,588,032
4,846,438
15,309,239
(Revised)
20.03.2014
Million IRR
Consolidated Profit (Loss) Statement
For the Year Ended March 20th, 2015
(Revised)
2013-14
2014-15
Note
Million 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
Sales, General & Administrative Expenses
26
(6,342,734)
Other Operating Items
27
584,793
Operating Profit
43,986,599
(5,416,221)
2,763,323
(5,757,941)
(2,652,898)
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)
25,825,573
37,803,031
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
103,695
113,347
25,406,027
32,933,232
542
773
Profit before Considering Group’s Quota from
Profit of Affiliated Companies
Group’s Quota from Profit of Affiliated
Companies
9-1-1
Minority Interest from Net Profit
Net Profit related to Shareholders of the Parent
Company
Base Profit of Each Share:
30
Operating – IRR
Non-operating – IRR
(5)
(47)
537
726
25,509,722
33,046,579
Base Profit of Each Share – IRR
Flow of Consolidated Accumulated Profit Account
Net Profit
Retained Profit at the beginning of the Year
32,593,065
24,612,269
-
(1,213,915)
32,593,065
23,398,354
Ratified Dividend
(23,760,000)
(16,770,000)
Capital Increase
(1,500,000)
(6,000,000)
Prior Years’ Adjustments
Retained Profit at the beginning of the Year
(Adjusted)
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
31,433,542
32,536,838
Retained Profit related to Shareholders of the
Parent Company
Since the comprehensive income statement is limited to the profit for the period and prior
years’ adjustments, the comprehensive income statement is not presented.
Consolidated Cash Flows Statement
(Revised)
2013-14
2014-15
Note
Million 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
Dividend Received
Paid Profit for Financial Facilities
Dividend Paid to Minority Shareholders
Dividend Paid to Shareholders of the Parent
Company
Net Cash Outflow from Return on
Investments & Paid Profit for Financing
671,895
289,431
3,065,242
(6,783,609)
(5,543,308)
(42,943)
(6,681)
(9,233,343)
(8,508,600)
(14,864,724)
(10,321,452)
(3,954,217)
(4,164,275)
Income Tax:
Income Tax Paid
Investment Activities:
Received Amounts from Sales of Fixed
Tangible Assets
Paid Amounts for Increase in Fixed Tangible
Assets
94,933
122,925
(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)
-
107,011
(325,509)
-
(1,924,017)
(1,326,065)
Received Amounts for Sales of Long-term
Investments
Paid Amounts for Acquiring Short-term
Investments
Paid Amounts for Acquiring Long-term
Investments
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 Activities
Amounts Received from Capital Increase of the
Parent Company
Paid Amounts for Acquiring Shares of the
Parent Company by the Subsidiary Company
Financial Facilities Received
Repayment of Origin of Financial Facilities
Received
88,202
46,549
-
(31)
135,568,124
77,793,887
(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
8,297,047
4,535,508
Cash Balance at the beginning of the Year
Effect of Foreign Exchange Rates Changes
(196,689)
415,244
Cash Balance at the End of the Year
5,754,742
8,297,047
12,411,798
4,153,451
Non-cash Transactions
33
4
5
6
7
Short-term Investments
Inventory
Prepayments
9
10
11
12
Goodwill & Intangible Assets
Other Assets
180,164,197
90,239,047
2,905,000
49,903,667
468,209
35,075,184
1,886,987
89,925,150
7,769,867
46,430,011
29,836,851
2,295,220
3,593,201
Million IRR
20.03.2015
Current Liabilities:
Liabilities & Shareholders’ Equity
22
37
Other Reserves
Retained Earnings
148,673,339 Total Liabilities & Shareholders’ Equity
Total Shareholders’ Equity
21
19
18
16
17
16
15
14
13
Note
Legal Reserve
69,649,769 Capital (50,000,000,000 IRR1000 share, fully paid)
- Shareholders’ Equity:
40,256,365 Total Liabilities
467,653 Total Non-current Liabilities
27,231,176 Provision for Employees’ Work Termination Benefits
1,694,575 Long-term Financial Facilities
Non-current Liabilities:
79,023,570 Total Current Liabilities
10,867,046 Advances Received
33,466,939 Financial Facilities
26,219,767 Payable Dividend
1,735,265 Tax Payable
6,734,553 Trade & Non-trade Payables
(Revised)
20.03.2014
Million IRR
Total Assets
Total Non-current Assets
5
Long-term Receivables
Non-current Assets:
Total Current Assets
3
Note
Cash
Current Assets:
Assets
Balance Sheet
As at March 20th, 2015
180,164,197
84,165,560
28,931,261
446,262
4,788,037
50,000,000
95,998,637
6,904,429
4,629,895
2,274,534
89,094,208
5,859,689
46,257,120
15,467,219
3,991,074
17,519,106
Million IRR
20.03.2015
148,673,339
71,664,829
31,618,567
446,262
3,600,000
36,000,000
77,008,510
6,340,426
3,045,647
3,294,779
70,668,084
3,012,340
37,021,132
13,585,592
4,376,987
12,672,033
(Revised)
20.03.2014
Million IRR
Profit (Loss) Statement
Note
2014-15
Million IRR
Million IRR
(Revised)
2013-14
Million IRR
Operating Revenues
24
101,999,244
97,278,523
Cost of Operating Revenues
25
(69,696,950)
(56,201,638)
32,302,294
41,076,885
Gross Profit
Sales, General & Administrative
Expenses
26
(5,849,147)
(5,021,132)
Other Operating Items
27
732,135
3,456,013
Operating Profit
(5,117,012)
(1,565,119)
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
509
745
(7)
(64)
502
681
23,760,731
30,887,475
Base Profit of Each Share:
30
Operating – IRR
Non-operating – IRR
Base Profit of Each Share – IRR
Flow of Accumulated Profit Account
Net Profit
Retained Profit at the beginning of the
Year
31,618,567
25,259,130
-
(738,038)
31,618,567
24,521,092
Ratified Dividend
(23,760,000)
(16,770,000)
Capital Increase
(1,500,000)
(6,000,000)
Prior Years’ Adjustments
Retained Profit at the beginning of the
Year (Adjusted)
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.
Cash Flows Statement
(Revised)
2013-14
2014-15
Note
Million IRR
Million IRR
Million IRR
Operating Activities:
Net Cash Inflow from Operating Activities
32
Return on Investments & Paid Profit for
Financing:
Received Profit from Short-term Investment
Deposit
Received Profit from Investment in Shares of
Other Companies
22,793,931
19,386,530
725,188
550,906
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)
(3,461,625)
(4,540,446)
Income Tax:
Income Tax Paid
Investment Activities:
Paid Amounts for Purchase of Fixed
Tangible Assets
Paid Amounts for Purchase of Intangible
Assets
Received Amounts from Sales of Fixed
Tangible Assets
Received Amounts from Sales of Long-term
Investments
Paid Amounts for Acquiring Short-term
Investments
Paid Amounts for Acquiring Long-term
Investments
(11,159,685)
(7,991,549)
(6,564)
(87)
53,327
121,615
-
816,857
(559,955)
-
(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
Repayment of Origin of Financial Facilities
Received
Net Cash Inflow from Financing Activities
88,202
46,549
130,513,568
76,814,335
(123,253,480)
(67,388,910)
7,348,290
9,471,974
(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
3,593,201
6,734,553
12,411,798
4,153,451
Net Increase (Decrease) in Cash
Cash Balance at the End of the Year
Non-cash transactions
33
Notes to the Financial Statements
1. History of Activities
1.1. Generalities
Based 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 city
B) Carrying out any kind of productive activity, trading, including domestic and international
which is directly or indirectly related to the activities of the company
C) 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 companies
D) Preparing and publishing scientific, technical and research bulletins as well as carrying out
research and advertising in relation to the activities of the company
E) 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
Permanent Employees
Parent Company
2014-15
2013-14
2014-15
2013-14
Persons
Persons
Persons
Persons
4,454
4,935
7,221
7,106
Direct Contract Employees
10,514
10,216
10,292
9,998
Total
Personnel of Service
Companies
17,735
17,322
14,746
14,933
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).
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
2.4. Investments
Description
Group Consolidated
Parent Company
Evaluation Method:
Long-term Investments:
Investment in Subsidiary Companies
Liable to Consolidation
(Liable to Consolidation)
Investment in Affiliated Companies
Equity Method
Other Long-term Investments
Cost (less: Retained Investment
Devaluation)
Devaluation)
Devaluation)
Devaluation)
Minimum Cost & Net Sales Value of
Total Investments
Each Investment
Total Investments
Each Investment
Current Investments:
Investments Rapidly Transacted in
the Market
Other Current Investments
Income Recognition Method:
At the Time of Profit Ratification by
the Shareholders’ General Assembly
Investment in Subsidiary Companies Liable to Consolidation
of Investee Company (until the
Date of Approval of the Financial
Statements)
the Shareholders’ General Assembly
Equity Method
of Investee Company (until the
Date of Approval of the Financial
Statements)
Other Long-term & Current
the Shareholders’ General Assembly the Shareholders’ General Assembly
Investments in Shares of Companies of Investee Company (until the date of Investee Company (until the date
of Balance Sheet)
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.
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 Method
Technical 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
Method
Declining
Depreciation Rate
10% & 8% ,7%
Declining
8%
Declining
25%
Buildings
Production Machineries Furnaces & Accessories
& Construction & Road Construction Machineries
Cranes
Tools
Direct
Years 4
Declining
15%
Direct
Years 10
Data Processing System
Direct
Years 10
Telecommunication Equipment & Devices
Declining
30% & 35% ,25%
Direct
Years 10
Declining
12%
Direct
Years 5
Mobile Compressors
Motor Vehicles
Furniture & Equipment
Installation
Computer Software
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 Buyback
Provision 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.
3. Cash
Group
Cash at Banks
Cash at Hand & Petty Cash
Parent Company
2014-15
2013-14
2014-15
2013-14
Million IRR
Million IRR
Million IRR
Million IRR
5,389,310
8,111,872
3,239,728
6,551,540
365,432
185,175
353,473
183,013
5,754,742
8,297,047
3,593,201
6,734,553
3.1. Cash at banks at the date of balance sheet is as follows:
Group
Cash at Banks – Rials
Cash at Banks – Foreign
Exchange
Parent Company
2014-15
2013-14
2014-15
2013-14
Million IRR
Million IRR
Million IRR
Million IRR
2,391,974
6,727,081
368,605
5,283,474
2,997,336
1,384,791
2,871,123
1,268,066
5,389,310
8,111,872
3,239,728
6,551,540
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
2014-15
2013-14
Million IRR
Million IRR
Group:
Short-term Banking Investment Deposits – IRR
Short-term Banking Investment Deposits – Foreign Exchange
880,000
1,019,930
1,493,774
1,028,335
2,373,774
2,048,265
880,000
706,940
1,415,220
1,028,325
2,295,220
1,735,265
Parent Company:
Short-term Banking Investment Deposits – IRR
Short-term Banking Investment Deposits – Foreign Exchange
5. Trade & Non-trade Receivables
5.1. Short-term receivables
2014-15
2013-14
Rials
Foreign
Currency
Total
Provision
for Doubtful
Debts
Million IRR
Million IRR
Million IRR
Million IRR
Net
Net
Million IRR
Million IRR
Group:
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
1,279,483
42,325
52,354
(166,646)
11,103,750
15,037,365
Accounts Receivable:
Related Parties (Note 35-2)
Other Clients
42,325
42,325
11,270,396
11,270,396
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
16,369,202
-
-
-
-
1,484
462,969
-
462,969
-
462,969
354,321
Temporary Deposits
64,556
-
64,556
-
64,556
2,768
Dividend Receivable
1,984,610
-
1,984,610
-
1,984,610
2,578,477
964,663
-
964,663
-
964,663
4,613,356
1,450,102
Non-trade:
Notes Receivable:
Personnel (Loan & Allowances)
Short-term Credit Account – Other
People
Others
709,427
-
709,427
-
709,427
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
26,072,444
Parent 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
1,241,360
Accounts Receivable:
2,004,435
37,201
2,041,636
-
2,041,636
1,643,599
Other 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
16,647,411
312,461
Non-trade:
417,377
-
417,377
-
417,377
Temporary Deposits
2,858
-
2,858
-
2,858
2,768
Dividend Receivable
2,127,631
-
2,127,631
-
2,127,631
2,578,477
257,576
-
257,576
-
257,576
459,288
Short-term Credit Account – Other
People
6,703,110
95,715
6,798,825
-
6,798,825
1,975,416
Others
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
5.2. Long-term receivables
2014-15
2013-14
Million IRR
Million IRR
Group:
Non-trade:
1,886,987
1,799,359
1,886,987
1,694,575
Parent Company:
Non-trade:
6. Inventories
Cost Price
Million IRR
2014-15
Provision
for Value
Decrease
Million IRR
2013-14
Net
Net
Million IRR
Million IRR
Group:
Produced Goods
Goods under Completion
Raw Materials & Packaging
Parts & Spare Parts
Consumption & Auxiliary
Materials
Operating Parts
Inventory of Scrap
Other Inventories
Goods in Transit
6,600,232
-
6,600,232
7,704,494
7,329,141
-
7,329,141
3,602,133
20,930,291
-
20,930,291
12,931,246
1,355,092
(356,010)
999,082
7,254,451
9,208,395
-
9,208,395
6,581,919
9,590,354
-
9,590,354
988,781
795,706
-
795,706
608,353
1,864
-
1,864
2,429
55,811,075
(356,010)
55,455,065
39,673,806
944,395
-
944,395
2,423,973
56,755,470
(356,010)
56,399,460
42,097,779
2,912,756
-
2,912,756
3,456,884
Parent Company:
Produced Goods
Goods under Completion
Raw Materials & Packaging
Parts & Spare Parts
Consumption & Auxiliary
Materials
Operating Parts
Goods in Transit
7,320,781
-
7,320,781
3,595,386
17,212,449
-
17,212,449
10,306,832
8,166,010
(356,010)
7,810,000
6,486,717
8,874,538
-
8,874,538
6,208,366
1,355,092
-
1,355,092
988,781
45,841,626
(356,010)
45,485,616
31,042,966
944,395
-
944,395
2,423,973
46,786,021
(356,010)
46,430,011
33,466,939
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
1,158,275
1,489,208
466,124
1,277,553
1,379,786
3,089,056
612,547
2,876,989
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
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
Orders of Parts & Spare Parts
Prepayments:
Others
8. Assets held for Sales & Debts related to Assets held for Sales
Group
Land
Buildings
Assets held for Sales
2014-15
2013-14
Million IRR
Million IRR
73,118
151
-
24,557
73,118
24,708
8.1. Non-current assets for sales related to Tajrish land of Felez Tadarok Co.
9. Long-term Investments
2014-15
2013-14
Million IRR
Million IRR
Group:
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
15,223,419
9,884,423
3,188,342
342
7,527
108,575
1,242,240
1,047,240
19,661,528
11,040,580
16,918,707
16,053,193
4,950,142
2,680,093
Investment in Other Companies
8,788,993
7,463,548
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
Investment in Shares of Companies (Note 9-1)
Investment Prepayment (Note 9-4)
Others
Long-term Investment Banking Deposit
Parent Company:
Investment in Shares of Companies (Note 9-1)
Non- TSE
Non- TSE
Sepahan Mobarake Steel Cultural & Sports Club Co.
Sepahan Novin Cultural & Sports Co.
Non- TSE
Non- TSE
Non- TSE
Novin Electrode Ardakan Co.
Providing & Installing Constructional Machineries Co. (Tamco)
Toka Beton Co.
22,500
Bourse Energy Co.
21,000
Non-TSE
Agreement
Base Market
Esfahan Regional Metro Co.
118,000
Non-TSE
3,028,500
1,789,224,829
1,777,791,698
75,000
2,265,440
310
643,199
152,501,681
3,086,413,593
95
95
15,780
No. of Shares
Esfahan Industries Treatment & Hygiene Services Co.
Sahami Bourse Kalaye Iran Co.
TSE
Gole Gohar Mining & Industrial Co.
Agreement
Base Market
TSE
Chador Malu Mining & Industrial Co.
Investment in Other Companies:
Non- TSE
TSE
Toka Foulad Investment Co.
Metil Steel Co.
TSE
Mines & Metals Development Investment Co.
Investment in Affiliated Companies:
Non- TSE
Listed
Companies
Tara Steel Co. – Ltd.
Investment in Subsidiary Companies:
Group:
9.1. Investment in shares of companies
95
95
70
0
10
0.88
0.67
9.94
10.40
25
37.68
39
32.16
25.00
19.29
Percent
-
8,788,993
15,223,419
-
-
-
-
23
2,100
590
1,478
4,916,999
-
-
6,415,684
3,867,803
-
-
-
-
-
15,528
40,569
125,894
439,622
562,465
-
-
18,742
5,231,606
-
-
10
95
-
Million IRR
Million IRR
18,637
Retained Value
Decrease
Cost Price /
Equity Method
2014-15
15,223,419
8,788,993
23
2,100
590
1,478
4,916,999
3,867,803
6,415,684
15,528
40,569
125,894
439,622
562,465
5,231,606
18,742
10
95
18,637
Million IRR
Book Value
21,311,829
12,709,589
23
2,100
590
1,478
6,602,240
6,103,158
8,583,498
8,709
20,842
35,356
387,993
714,008
7,416,590
18,742
10
95
18,637
Million IRR
Market Value
9,865,680
7,463,548
8
2,100
590
1,478
4,121,787
3,337,585
2,402,133
22,192
38,619
-
122,998
73,384
2,144,940
18,742
10
95
18,637
Million IRR
Book Value
31,338,323
19,627,665
8
2,100
590
1,478
10,141,933
9,481,556
11,691,916
8,709
20,842
-
36,298
179,871
11,446,196
18,742
10
95
18,637
Million IRR
Market Value
2013-14
119,631,503
Non-TSE
Non-TSE
Non-TSE
Non-TSE
Sang va Ahan-e Foulad-e Sangan Co.
Felez Tadarok Co.
Foolad Sepahan Sports Club
Sepahan Novin Cultural & Sports Co.
Non-TSE
Non-TSE
Tuka Beton Co.
22,500
Agreement
Base Market
Iran Energy Exchange Co.
21,000
Non-TSE
Esfahan Subway Co.
118,000
Non-TSE
Esfahan Health Services Co.
3,028,500
1,789,224,829
1,777,791,698
Agreement
Base Market
TSE
Gole Gohar Industrial & Mining Co.
75,000
2,265,440
310
152,501,681
643,199
3,086,413,593
95
996
990,000
15,780
Iran Mercentile Exchange Co.
TSE
Chadormaloo Industrial & Mining Co.
Investment in Other Companies:
Non-TSE
Ardekan Novin Electrode Co.
TSE
Non-TSE
Construction & Erection Equipment Supply Co.
Tuka Foolad Investment Co.
Metil Steel Co.
Metals & Minings Developing Investment Co.
TSE
95
Non-TSE
Mobarakeh Steel Engineering Co.
Investment in Affiliated Companies:
996
Non-TSE
-
Non-TSE
Sani’e Kaveh Tehran Co.
1,533,750
Non-TSE
225,528,007
International Systems Engineeiring & Automation Co. (IRISA)
TSE
Non-TSE
Foolad Sang Mining & Industrial Co.
Kashan Amir-Kabir Steel Co.
464,115,705
649,900
Non-TSE
Non-TSE
Chahar Mahal & Bakhtiari Sefid Dasht Steel Co.
14,999,999,996
w14,999,999,996
No. of Shares
Over the
Counter
Listed
Companies
Chahar Mahal va Bakhtiari Automative Sheet Co.
Hormozgan Steel Co.
Investment in Subsidiary Companies:
Parent Company:
9.1. Investment in shares of companies – Continued
100
0
10
0.88
0.67
9.94
10.40
25
37.68
31
25
32.16
19.29
95
95
99.6
99.6
99
70
-
68.17
52.57
98.87
66.30
64.99
Percent
6,499
-
8,788,993
-
30,657,842
-
8,788,993
30,657,842
2,100
590
1,478
4,916,999
3,867,803
23
-
-
-
-
4,950,142
8,709
20,842
117,418
562,465
387,993
3,852,715
16,918,707
10
95
10
10
990
18,637
-
52,656
1,220,954
304,328
314,518
6,499
15,000,000
Million IRR
Book Value
-
23
2,100
590
1,478
4,916,999
-
3,867,803
-
8,709
-
-
-
-
4,950,142
20,842
117,418
562,465
387,993
-
-
16,918,707
3,852,715
-
-
-
-
-
-
-
-
-
-
-
10
95
10
10
990
18,637
-
52,656
1,220,954
304,328
314,518
-
Million IRR
Million IRR
15,000,000
Retained Value
Decrease
Cost Price /
Equity Method
2014-15
39,462,627
12,709,589
23
2,100
590
1,478
6,602,239
6,103,159
8,583,498
8,709
20,842
35,356
714,008
387,993
7,416,590
18,169,540
10
95
10
10
990
18,637
-
52,656
2,471,787
304,328
314,518
6,499
15,000,000
Million IRR
Market Value
26,196,834
7,463,548
8
2,100
590
1,478
4,121,787
3,337,585
2,680,093
8,709
20,842
-
73,384
36,298
2,540,860
16,053,193
10
95
10
10
990
18,637
50,647
52,656
625,810
304,328
15,000,000
Million IRR
Book Value
47,578,342
19,627,665
8
2,100
590
1,478
10,141,933
9,481,556
11,691,916
8,709
20,842
-
179,871
36,298
11,446,196
16,258,761
10
95
10
10
990
18,637
50,647
52,656
831,378
304,328
0
0
15,000,000
Million IRR
Market Value
2013-14
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 201314 and before.
9.2. Details of the Group’s affiliated and subsidiary companies are as follows:
Percent of Investment
Location
2014-15
Group
2013-14
Parent
Company
Major Activity
Parent
Company
Group
Subsidiary Companies:
South Hormozgan Steel Co.
Iran
100.00
100.00
100.00
100.00 Steel Making
Iran
64.99
64.99
-
- Steel Making
Iran
66.30
66.30
-
- Galvanized Plate
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
Germany
100.00
70.00
100.00
70.00 Trade
Mobarakeh Steel Technical &
Engineering Co.
Iran
100.00
99.00
100.00
99.00
Sangan Steel Iron & Stone Co.
Iran
100.00
99.60
100.00
99.60 Pelletizing
Iran
100.00
99.60
100.00
99.60 Trading Scrap
Iran
100.00
95.00
100.00
95.00 Sports – Cultural
Iran
100.00
95.00
100.00
95.00 Sports – Cultural
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
Sefid Dasht Chahar Mahal va
Bakhtiari Steel Co.
Automobile Sheets Co.
Foulad Sang Mobarakeh Esfahan
Mining & Industrial Co.
Felez Tadarok Esfahan
Mobarakeh Steel Co.
Sepahan Mobarake Steel Cultural
& Sports Club
Sepahan Novin Cultural & Sports
Co.
Engineering
Services
Affiliated Companies:
Novin Electrode Ardakan Co.
Iran
39.00
31.00
-
Providing & Installing
Constructional Machineries Co.
(Tamco)
- Electrode
Iran
41.94
37.68
41.94
Provision
37.68 & Repair of
Machineries
Toka Beton Co.
Iran
72.50
25.00
72.50
25.00 Concrete
Iran
10.40
10.40
10.40
10.40 Exploiting Iron ore
Iran
9.94
9.94
9.94
9.94 Exploiting Iron ore
Other Companies:
Chador Malu Mining & Industrial
Co.
Gole Gohar Mining & Industrial
Co.
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
Transportation
Services
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
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
Group
Note
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
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.
Group
Cost Price at the beginning of the Year
2014-15
2013-14
Million IRR
Million IRR
1,911,041
Acquired Goodwill during the Year
1,911,041
344,224
-
Cost Price at the End of the Year
2,255,265
1,911,041
Accumulated 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)
Accumulated Depreciation & Retained
Value Decrease
Cost Price
Balance
at the
beginning of
the Year
Depreciation
& Values
Decrease
16,579
7,983
1,348
9,331
7,248
Balance at
the End of
the Year
Increase
Book Value
Balance
at the
beginning of
the Year
Balance at
the End of
the Year
2014-15
2013-14
Group:
Technical Know-how
Computer Software
16,579
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
1,977
1,719
Other Intangible Assets
1,977
1,977
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
Prepayments & Capital
Orders
Capital Items held with
Warehouse
Assets under Completion
2,985,528
208,917
12,803,160
16,259,729
95,946
18,801,920
72,260,726
9,608,715
3,456,569
22,869
8,269
2,195
2,570,707
13,135
766,183
73,211
Increase
9,958,034
8,747,940
53,458,806
548,001
Furniture & Fixtures
Total
258,752
2,108,393
Equipment
Motor Vehicles
24,457,630
Machineries
56,144
24,711,340
Building & Installation
Tools
1,318,546
Balance
at the
beginning of
the Year
Land
11.1. Group
11. Fixed Tangible Assets
-
(2,857)
-
-
-
-
(2,857)
(114)
(512)
(101)
(969)
-
(1,161)
Sold
Cost Price
1,439,138
(2,182,177)
(250,978)
(3,081,048)
1,149,849
3,621,315
98,814
36,015
26,094
2,948,750
53,198
725,533
(267,089)
Transfers
& Other
Changes
89,956,736
29,422,903
53,885
9,862,514
19,506,504
60,533,833
669,570
302,524
2,136,581
29,976,118
122,477
26,201,895
1,124,668
Balance at
the End of
the Year
18,957,357
135
135
-
-
18,957,222
276,531
170,863
1,147,083
9,422,658
29,160
7,910,927
-
Balance
at the
beginning of
the Year
3,708,153
-
-
-
-
3,708,153
49,343
39,269
107,390
1,653,121
22,830
1,836,200
-
Depreciation
& Values
Decrease
-
(1,932)
-
-
-
-
(1,932)
(48)
(440)
(79)
(439)
-
(926)
Sold
-
22,663,578
135
135
-
-
22,663,443
325,826
209,692
1,254,394
11,075,340
51,990
9,746,201
Balance at
the End of
the Year
Accumulated Depreciation & Retained Value Decrease
67,293,158
29,422,768
53,750
9,862,514
19,506,504
37,870,390
343,744
92,832
882,187
18,900,778
70,487
16,455,694
1,124,668
2014-15
53,303,369
18,801,785
95,811
9,958,034
8,747,940
34,501,584
271,470
87,889
961,310
15,034,972
26,984
16,800,413
1,318,546
2013-14
Book Value
11,854,361
12,104,090
17,015,478
57,147,407
-
(997)
-
-
-
(997)
(30)
(171)
(101)
(34)
-
(661)
Sold
Cost Price
-
(1,527,044)
(2,916,286)
1,389,242
1,527,044
57,755
35,958
26,093
909,690
216,342
280,893
313
Transfers
& Other
Changes
69,250,500
27,342,795
8,319,946
19,022,849
41,907,705
493,429
271,097
2,116,675
24,494,381
6,538,367
7,452,691
541,065
Balance at
the End of
the Year
16,891,042
-
-
-
16,891,042
255,382
159,292
1,132,629
9,310,588
2,859,768
3,173,382
-
Balance
at the
beginning of
the Year
2,456,478
-
-
-
2,456,478
32,803
34,296
105,437
1,316,976
519,982
446,984
-
Depreciation
& Values
Decrease
-
(687)
-
-
-
(687)
(28)
(145)
(79)
(33)
-
(401)
Sold
-
19,346,833
-
-
19,346,833
288,157
193,443
1,237,987
10,627,531
3,379,750
3,619,965
Balance at
the End of
the Year
Accumulated Depreciation & Retained Value Decrease
49,903,667
27,342,795
8,319,946
19,022,849
22,560,872
205,272
77,654
878,688
13,866,850
3,158,617
3,832,726
541,065
2014-15
40,256,365
17,015,478
8,488,948
8,526,530
23,240,887
179,018
76,018
958,054
14,273,705
3,301,466
3,945,144
507,483
2013-14
Book Value
11.3. Fixed tangible assets of the Group and the Parent Company have insurance coverage against fire, flood and earthquake for up to IRR104,592,000 million and
IRR85,000,000 million respectively.
2,747,284
8,488,948
Prepayments & Capital
Orders
9,107,077
249,729
8,526,530
40,131,929
1,304
-
-
432
160,791
53,933
33,269
Increase
Assets under Completion
Total
434,400
2,090,683
Equipment
Furniture & Fixtures
23,584,293
Machineries
235,310
6,161,234
Installation
Motor Vehicles
7,118,526
507,483
Balance
at the
beginning of
the Year
Building
Land
11.2. Parent Company
11.4. Assets under completion of the Parent Company
Percent of Completion
2014-15
Development Projects up to 5.4 Million
Tons
2013-14
99.9
Rendering Service to Development
Projects
61.74
Establishing 3 Units of Mega Module &
2 Units of Lime
95.08
Estimation
of Utilization
Date
Estimation
of
Completion
Expenses
2014-15
2013-14
Million IRR
Million IRR
Million IRR
Effect of the
Project on
Operation
139,785
2,674,601
2,219,830
Production
Increase
578,016
1,921,100
825,223
Production
Increase
86,565
905,285
631,422
Production
Increase
12,570,741
3,390,918
-
Production
Increase
2,370,201
3,726,093
1,899,862
Production
Increase
99.36 Utilized
71.66
Retained Expenses
Until the End
of 2015-16
Until the
90.994 Middle of
2016-17
31.5
14.95
Until the End
of 2016-17
81.07
76.28
End of
2015-16
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
26,277
96,787
73,110
Production
Increase
Establishing Fifth Casting Machine
74.25
Until the
14.14 Middle of
2016-17
1,160,713
940,027
67,865
Production
Increase
Iron Making Unit Projects
94.06
89.79
64,200
22,137
18,976
Production
Increase
77
92,791
24,587
Production
Increase
-
14,461
14,461
Decrease in
Pollutants
9,532,260
2,961,770
1,564,725
26,917,521
19,022,849
8,526,531
Sangan Development Projects
Saba Steel Development Projects
Cold Rolling Unit Projects
Until the End
of 2015-16
Until the End
of 2015-16
Pre-painted Sheets & Tinned Unit
Projects
Environmental Projects
Others
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
Banking Deposited Funds
Other
Parent Company
2014-15
2013-14
2014-15
2013-14
Million IRR
Million IRR
Million IRR
Million IRR
2,905,000
-
2,905,000
-
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.
13. Trade & Non-trade Payables
13.1. Short-term payables
2014-15
Total
Million IRR
Group:
Trade:
Notes Payable:
Other People
Accounts Payable:
Other People
Non-trade:
Notes Payable
Insurance Premium Payables
Retention Deposit
Provision for Grants in Aids to Cultural & Welfare Organizations &
Institutes
Expenses Payables
Provision for Personnel Leave Buyback
Economic Affairs & Finance Department
Others
Parent Company:
Trade:
Accounts Payable:
Other People
Non-trade:
Notes Payable
Insurance Premium Payables
Retention Deposit
Provision for Grants in Aids to Cultural & Welfare Organizations &
Institutes
Expenses Payables
Provision for Personnel Leave Buyback
Economic Affairs & Finance Department
Others
2013-14
Total
Million IRR
10,000
10,000
-
305,060
1,012,449
1,317,509
1,327,509
451,568
7,437,669
7,889,237
7,889,237
4,483,910
1,445,188
2,613,186
1,214,287
1,122,616
2,539,763
211,356
138,965
850,801
446,186
508,820
22,916
2,322,088
12,904,451
14,231,960
1,350,043
333,702
672,334
40,783
7,509
7,420,002
15,309,239
3,611,520
4,235,267
7,846,787
7,846,787
2,690,232
4,432,152
7,122,384
7,122,384
4,478,137
1,375,631
1,690,545
1,160,468
990,776
1,119,390
211,356
138,965
788,676
433,502
467,797
20,061
206,614
9,672,319
17,519,106
764,517
333,702
794,647
9,882
237,302
5,549,649
12,672,033
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
Others
-
77,332
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:
Group
2014-15
2013-14
Million IRR
Million IRR
Balance at the beginning of the Year
4,846,438
5,024,583
Provision for Tax Performance of the Year
3,342,027
2,641,102
(64,963)
1,372,113
(3,954,217)
(4,164,275)
4,169,285
4,873,523
(17,012)
(27,085)
4,152,273
4,846,438
Adjustment of Provision Performance of Previous Years
Paid during the Year
Tax Prepayments
35,264,243
26,836,545
2013-14
2014-15
19,843,959
29,565,141
24,281,418
Million IRR
3,075,814
4,376,767
3,164,581
Million IRR
Declared
-
7,312,158
3,600,127
Million IRR
Recognized
2014-15
-
3,461,624
3,600,127
Million IRR
Paid
-
-
(154)
4,376,987
3,991,074
4,377,141
3,991,331
(257)
-
4,377,141
Million IRR
Payable
Balance
3,075,814
915,517
Million IRR
Payable
Balance
(Revised)
2013-14
Not Surveyed
Under Survey
Finalized & Settled in
Installment
Recognition Method
14.2.3. Corporate tax for the 2014-15 period has been reflected in the accounts having taken into account, the declared profit and the lawful tax exemptions.
14.2.2. Corporate tax for the 2013 period in the amount of IRR7,312,158 million has been identified and the Company has been notified accordingly. This amount
exceeds the taxes paid and taxes payable (including notes payable) in the amount of IRR2,935,534 million and since the Company has appealed against the method of
identification, no provision has been reflected in the accounts in this regard.
-
-
3,600,127
Million IRR
Definite
Tax
14.2.1. All corporate taxes until the end of the 2012 period have been finalized and settled.
Less: Tax
Prepayment
23,221,372
Million IRR
Declared Profit Income Liable
(Loss)
to Tax
2012-13
Fiscal Year
14.2. Summary of payable tax provision of the Parent Company
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
192,729
2,440
15,659,948
13,588,032
Group
Subsidiary Companies – Owned by Minority
15.1. Cash profit of each share in 2013-14 was IRR660 and in 2012-13 it was IRR650.
16. Financial Facilities
2014-15
Group:
Facilities
Received
Parent
Company:
Facilities
Received
2013-14
Current
Long-term
Total
Current
Long-term
Total
Million IRR
Million IRR
Million IRR
Million IRR
Million IRR
Million IRR
53,013,209
5,261,391
58,274,600
39,886,777
5,390,723
45,277,500
46,257,120
2,274,534
48,531,654
37,021,132
3,294,779
40,315,911
53,013,209
50,170,041
50,654,018
2,359,191
2,843,168
2,843,168
(5,261,391)
2,359,191
47,810,850
Current Portion
Interest, Commission & Deferred
Penalties
(5,261,391)
Long-term Portion
55,915,409
53,072,241
2,843,168
(4,829,186)
(4,829,186)
60,744,595
Interest & Commission of Future Years
2,843,168
57,901,427
Banks
39,886,777
58,094
39,828,683
(5,390,723)
45,219,406
(3,753,657)
48,973,063
Million IRR
Million IRR
Million IRR
Million IRR
Total
Foreign
Currency
IRR
Total
2013-14
2014-15
Group
16.1.1. Based on facility providers
16.1. Financial facilities received based on different basis:
43,413,952
1,456,734
41,957,218
(2,274,534)
44,231,752
(4,631,559)
48,863,311
Million IRR
IRR
2,843,168
2,843,168
2,843,168
2,843,168
Million IRR
Foreign
Currency
2014-15
46,257,120
1,456,734
44,800,386
(2,274,534)
47,074,920
(4,631,559)
51,706,479
Million IRR
Total
Parent Company
37,021,132
1,229,050
35,792,082
(3,294,779)
39,086,861
(3,750,444)
42,837,305
Million IRR
Total
2013-14
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
106,787
691,175
568,633
679,463
55,915,409
45,219,406
47,074,920
39,086,861
2019-20 & after
16.1.4. Based on type of collateral
2014-15
Parent
Company
2013-14
Million IRR
Million IRR
Group
Cheque & Promissory Note
24,057,169
19,557,169
Binding Agreement
31,858,240
27,517,751
55,915,409
47,074,920
17. Advances Received
Group
Note
Parent Company
2014-15
2013-14
2014-15
2013-14
Million IRR
Million IRR
Million IRR
Million IRR
Advances Received
from Clients:
Related Parties
35-4
Other Clients
-
-
19,084
72,070
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
Balance at the
beginning of the
Year
Paid during the
Year
Provided
Provision
Balance at the
End of the Year
Work
Termination
Benefit
Savings
Million IRR
2013-14
Total
Work
Termination
Benefit
Savings
Total
Million IRR
Million IRR
Million IRR
Million IRR
Million IRR
2,407,136
770,740
3,177,876
1,958,595
572,107
2,530,702
(667,837)
(63,080)
(730,917)
(287,533)
(46,823)
(334,356)
2,060,295
295,859
2,356,154
737,572
245,456
983,028
3,799,594
1,003,519
4,803,113
2,408,634
770,740
3,179,374
Parent Company
2014-15
Balance at the
beginning of the
Year
Paid during the
Year
Provided
Provision
Balance at the
End of the Year
2013-14
Work
Termination
Benefit
Savings
Total
Work
Termination
Benefit
Savings
Total
Million IRR
Million IRR
Million IRR
Million IRR
Million IRR
Million IRR
2,278,561
767,086
3,045,647
1,874,274
568,132
2,442,406
(347,215)
(70,964)
(418,179)
(277,330)
(46,498)
(323,828)
1,695,030
307,397
2,002,427
681,617
245,452
927,069
3,626,376
1,003,519
4,629,895
2,278,561
767,086
3,045,647
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:
Description
2014-15
No. of Shares
Iranian Mines & Mining
Industries Development &
Renovation Organization
Mehr Eghtesad Iranian
Investment Co.
Social Security Investment
Co.
Bank Refah Kargaran
Tehran Province Investment
Co.
Goharan Omid Management
Development Co.
Bank Tejarat
Khorasan Razavi Province
Investment Co.
Fars Province Investment Co.
Banks’ Personnel Savings &
Disability Pension Fund
Esfahan Province Investment
Co.
Khouzestan Province
Investment Co.
Villagers’ Social Insurance
Fund Institute
Eastern Azarbaijan Province
Investment Co.
Civil Pension Fund
Privatization Organization –
Power of Attorney
Mazandaran Province
Investment Co.
Kerman Province Investment
Co.
Gilan Province Investment Co.
Western Azarbaijan Province
Investment Co.
Sistan & Balouchestan
Province Investment Co.
Other Shareholders
2013-14
% of Shares
No. of Shares
% of Shares
8,597,951,507
17.20
6,190,525,096
17.20
6,831,773,313
13.66
4,147,119,455
11.52
5,104,681,270
10.21
3,193,639,433
8.87
2,166,628,808
4.33
972,295,132
2.70
1,535,338,994
3.07
1,105,444,077
3.07
1,269,251,101
2.54
1,046,511,614
2.91
1,395,033,530
2.79
1,007,424,143
2.80
1,225,506,217
2.45
882,364,477
2.45
1,039,192,612
2.08
748,218,681
2.08
1,089,963,039
2.18
761,932,233
2.12
947,471,193
1.89
682,179,260
1.89
927,492,654
1.85
667,794,712
1.85
895,562,722
1.79
652,128,161
1.81
782,876,188
1.57
563,670,856
1.57
844,341,609
1.69
549,659,123
1.53
762,756,970
1.53
662,498,202
1.84
730,378,746
1.46
525,872,698
1.46
712,037,420
1.42
512,666,943
1.42
658,971,030
1.32
474,459,143
1.32
570,653,824
1.14
410,870,754
1.14
550,823,440
1.10
396,592,877
1.10
11,361,313,813
22.72
9,846,132,930
27.35
100 36,000,000,000
100.00
50,000,000,000
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
% of
Ownership
International Systems &
Automation Co. – IRISA
No. of Shares
2013-14
Cost Price
Million IRR
262,783
Cost Price
Million IRR
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
Capital
2014-15
2013-14
Million IRR
Million IRR
479,932
309,189
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
Legal Reserve & Other Reserves
24. Operating Revenues
Group
Net Sales
Rendered Services
Parent Company
2014-15
2013-14
2014-15
2013-14
Million IRR
Million IRR
Million IRR
Million IRR
121,656,494
110,745,488
101,999,244
97,278,523
384,024
607,991
-
-
122,040,518
111,353,479
101,999,244
97,278,523
24.1. Net sales
2014-15
Tons
2013-14
Million IRR
Tons
Million IRR
Group:
Domestic:
Hot Products
Cold Products
Coated Products
Other
1,124,852
61,281,636
1,165,672
63,505,486
12,006
290,440
23,422,692
1,951
23,430,385
9,806,049
304,586
10,283,648
203,216
966,205
13,703
65,154
1,630,514
95,476,582
1,485,912
97,284,673
Hot Products
234,989
20,737,835
127,738
11,272,919
Cold Products
130,247
1,901,766
125,507
1,832,549
Export:
Coated Products
Net Sales
2,472
3,540,311
248
355,347
367,708
26,179,912
253,493
13,460,815
1,998,222
121,656,494
1,739,405
110,745,488
2014-15
Tons
2013-14
Million IRR
Tons
Million IRR
Parent Company:
Domestic:
Hot Products
2,764,177
47,482,620
3,224,181
53,555,732
Cold Products
1,340,440
27,194,570
1,167,273
22,602,643
265,768
7,114,594
283,510
7,797,743
41,528
621,971
55,711
794,130
4,411,913
82,413,755
4,730,675
84,750,248
1,332,778
17,281,797
859,737
10,351,909
119,522
1,901,766
101,029
1,452,781
23,007
401,926
48,618
723,585
1,475,307
19,585,489
1,009,384
12,528,275
5,887,220
101,999,244
5,740,059
97,278,523
Coated Products
Other
Export:
Hot Products
Cold Products
Coated Products
Net Sales
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:
Euro
Hot Coil
IRR
Amount
Million IRR
Foreign Currency
Tons
US Dollar
1,216,689 306,424,810
Dirham
14,674,829 708,194,971
15,564,274
Hot Plate
116,089
1,879,242
50,502,864
44,660,701
1,717,523
Cold Coil
101,709
22,972,096
12,871,679
66,843,152
1,627,412
Galvanized Coil
Cold Plate
Acid Pickling Coil
Cold Hard Coil
12,282
-
9,395,964
-
247,632
8,633
-
5,536,478
-
146,368
10,725
3,273,883
-
5,715,836
154,594
9,180
-
-
18,407,420
127,686
92,981,814 843,822,080
19,585,489
1,475,307 334,550,031
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
Million IRR
Million IRR
Million IRR
Percentage of
Gross Profit
to Operating
Profit
Million IRR
Net Sales:
Hot Products
64,764,417
46,549,834
18,214,583
Cols Products
29,096,336
17,618,992
11,477,344
39%
7,516,520
4,902,109
2,614,411
35%
Coated Products
Other
Total
28%
621,971
626,015
(4,044)
-1%
101,999,244
69,696,950
32,302,294
32%
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
Direct Wage
55,029,506
90,234
55,119,740
54,506,856
120,559
54,627,415
7,334,671
311,203
7,645,874
5,887,200
216,807
6,104,007
1,490,005
-
1,490,005
1,086,358
-
1,086,358
Production Overhead:
Indirect Wage
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)
(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
1,104,262
(344,875)
759,387
(14,479,963)
-
(14,479,963)
87,228,398
207,076
87,435,474
66,970,782
396,098
67,366,880
42,395,751
-
42,395,751
36,386,449
-
36,386,449
7,118,041
-
7,118,041
5,717,941
-
5,717,941
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
(30,868)
-
(30,868)
(14,102)
-
(14,102)
(Increase) Decrease in Finished
Inventories
Cost Price of Operating
Revenues
(391,192)
Parent Company:
Direct Consumable Materials
Direct Wage
Production Overhead:
Indirect Wage
Un-absorbed Expenses
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
544,127
-
544,127
(1,448,786)
-
(1,448,786)
69,696,950
-
69,696,950
56,201,638
-
56,201,638
(Increase) Decrease in Finished
Inventories
Cost Price of Operating
Revenues
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.
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:
Parent Company
Type of Raw
Materials
Country
2014-15
2013-14
Million IRR
% to Total
Purchase
of the Year
Million IRR
% to Total
Purchase
of the Year
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%
7,986,638
18%
5,159,946
14%
Iron Ore
Others
-
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
Actual
Operational
Production
Capacity
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
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
1,449,103
1,425,430
1,337,902
1,522,124
6,342,734
5,416,221
5,849,147
5,021,132
Others
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
Sales of Scrap
Profit of Credit Sales to
Clients
Un-absorbed Expenses in
Production
Profit from Exchanging Forex
Operating Assets & Liabilities
Adjusting Provision for Work
Termination Benefits
Goodwill Depreciation
Others
Parent Company
2014-15
2013-14
2014-15
2013-14
Million Rls
Million Rls
Million Rls
Million Rls
618,506
-
413,032
684,701
31,917
157,392
24,800
157,257
(391,192)
(133,956)
(30,868)
(14,102)
787,452
2,628,156
786,917
2,628,157
(461,746)
-
(461,746)
-
(100,764)
(94,123)
-
-
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.
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
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
Profit from Sales of Raw
Materials, Parts & Surplus
Inventories
Profit from Banking
Investment Deposits
94,008
118,119
53,017
117,227
2,377,038
1,007,378
2,395,511
111,920
905,740
671,895
725,188
550,906
Dividend
2,716,575
3,608,349
4,402,947
3,666,157
147,550
300,075
322,645
261,927
4,024
5,561
4,024
5,561
168,568
-
-
-
(828,069)
-
(828,069)
-
685,725
(2,737,743)
304,391
(2,685,388)
44,277
21,932
36,219
21,932
(194,166)
316,122
146,383
22,001
6,121,270
3,311,688
7,562,256
2,072,243
Profit from Sales
Investments
Funds Earned form
Personnel Mission in Other
Organizations & Services
Rendered
Income from Assigning
Subsidiary Units
Adjusting Performance Tax
Provision & Salary of 201213 based on Final Paper
Profit (Loss) from
Exchanging Non-operating
Assets & Liabilities
Income from Rent
Others
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)
30,527
(116,369)
-
-
25,635,477
35,081,276
24,109,468
33,792,955
(87,402)
(3,504,830)
(348,737)
(4,247,524)
(7,826)
1,353,764
-
1,342,044
(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)
(103,695)
(113,347)
-
-
25,406,027
32,933,232
23,760,731
30,887,475
Minority Interest from Profit
from Operation under
Progress – Operating
Loss from Operation under
Progress – Non-operating
Tax Effect
Minority Interest from Profit
(Loss) from Operation under
Progress – Non-operating
Minority Interest from Net
Profit
30.1. Weighted average of ordinary shares for calculation of base profit of each share is as
follows:
Group
Weighted Average of Ordinary Shares
Weighted Average of Shares of the Parent
Company in Ownership of Subsidiary
Companies (IRISA)
Weighted Average of Ordinary Shares
Adjusted at the End of the Year
Parent Company
2014-15
2013-14
2014-15
2013-14
No.
(Thousand
Shares)
No.
(Thousand
Shares)
No.
(Thousand
Shares)
No.
(Thousand
Shares)
47,326,338
45,374,945
47,326,338
45,374,945
(263)
(263)
-
-
47,326,075
45,374,682
47,326,338
45,374,945
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
Shares of the Parent Company in Ownership of Subsidiary Companies
Bonus Shares
Issuance of Priority for Purchasing Shares
36,000,000,000
262,783
1,500,000,000
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
Adjusted Weighted Average of Ordinary Shares for Calculation of Base Profit
of 2013-14
Adjusted Weighted Average of Ordinary Shares for Calculation of Base Profit
of 2014-15
37,499,737,217
45,374,944,816
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.
32. Reconciliation Statement of Operating Profit
Group
Operating Profit
Depreciation Expenses of
Fixed Tangible & Intangible
Assets
Goodwill Depreciation
Expenses
Net Increase in Provision
for Employees’ Work
Termination Benefit &
Savings
(Increase) in Operating
Accounts Receivable
(Increase) Decrease in
Inventories
Decrease (Increase) in
Orders & Prepayments
Increase (Decrease) in
Operating Accounts Payable
Increase (Decrease) in
Advances Received from
Clients
Net Other Non-operating
Incomes & Expenses
Parent Company
2014-15
2013-14
2014-15
2013-14
Million Rls
Million Rls
Million Rls
Million Rls
28,847,103
41,333,701
27,185,282
39,511,766
3,714,161
3,175,393
2,462,486
2,184,494
100,764
94,123
-
-
1,623,739
709,401
1,584,247
670,525
2,262,980
(9,081,221)
(4,688,178)
(7,138,591)
(14,301,681)
(17,079,217)
(12,963,072)
(12,655,947)
2,421,305
(2,753,060)
3,097,077
(928,724)
(4,446,326)
(1,965,446)
1,514,669
274,212
2,705,606
(1,936,755)
2,847,351
(1,843,748)
1,784,437
992,839
1,754,069
(687,457)
24,712,088
13,489,758
22,793,931
19,386,530
33. Non-cash Transactions
Group
Capital Increase from Settled
Dues of Shareholders
Parent Company
2014-15
2013-14
2014-15
2013-14
Million Rls
Million Rls
Million Rls
Million Rls
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
2014-15
Million Rls
Building
Parent
Company
2014-15
Million Rls
15,823,632
15,823,632
Production Machineries
1,101,221
1,101,221
Equipment
2,053,056
2,053,056
155,583
-
19,133,492
18,977,909
Others
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).
35. Transactions with Related Parties
35.1. Transactions of the Group with related parties during 2014-15:
Description
Affiliated Party
Tara Steel
Subsidiary Companies
Sports & Cultural
Type of
Affiliation
Board Member &
Subsidiary
Board Member &
Subsidiary
Total
Esfahan Steel
Khouzestan Steel
Eastern Iran Iron
Ore (Sangan)
Central Iron Ore
(Choghart)
Ascotec
Sales of Goods
& Services
154,070
-
292,000
-
446,070
-
596,175
570,764
-
-
-
-
3,303,176
-
130,246
-
Gole Gohar
Board Member
5,527,231
-
Chador Malou
Board Member
8,249,249
-
385,259
-
-
-
1,013,041
-
1,553,478
-
Special Relations
298,147
3,224
Special Relations
-
610
IRASCO
IRITEC
Other Related Parties
Common Board
Member
Common Board
Member
Common Board
Member
Common Board
Member
Common Board
Member
Purchase
of Goods &
Services
Sirjan Iranian
Steel
Zarand Kerman
Steel
Consumption
Cooperation
Housing
Cooperation
Common Board
Member
Common Board
Member
Common Board
Member
Common Board
Member
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
Grand Total
-
Group
Companies
Other
Related
Parties
-
Sepahan Novin
-
Mehr Eghtesad
-
-
Eastern Iran
Iron Ore
(Sangan)
Central Iron
Ore (Choghart)
-
5,123
Atieh Naghsh
Jahan
Pension Fund
Sepehr Kavir
Steel
Total
42,325
12,493
-
-
Toka Tadarok
-
-
Toka Rail
Espadan
Control Index
-
Toka Nasouz
SITCO
-
Housing
Cooperation
-
Consumption
Cooperation
-
Sirjan Iranian
Steel
-
-
Zarand Kerman
Steel
-
IRITEC
-
Chador Malou
IRASCO
-
Gole Gohar
7,370
-
Khouzestan
Steel
Ascotec
-
Esfahan Steel
-
-
Social Security
Organization
Total
-
-
Justice Share
IMIDRO
-
-
Metal Mines
Development
Total
-
TAMCO
29,832
-
-
29,832
Trade
Receivables
Metil Steel
Sports &
Cultural
Tara Steel
Related Party
Total
Shareholders
with
Considerable
Influence
Subsidiary
Companies
Description
709,427
243,345
-
-
-
-
-
-
-
-
-
-
-
-
-
204,868
-
-
38,477
-
-
-
-
193,618
-
-
-
193,618
-
-
-
272,464
-
-
-
272,464
Non-trade
Receivables
112,000
112,000
-
-
-
-
-
-
-
-
112,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Paid Facilities
35.2. Balance of final account of Group’s related parties
2,431,163
2,057,623
-
-
-
-
-
291,852
-
-
-
-
-
-
-
-
-
1,352,903
380,881
-
-
31,987
-
-
-
-
-
-
-
-
-
373,540
-
300,532
-
73,008
Prepayments
-
-
305,060
304,781
-
-
-
-
9,356
-
50,924
26,228
-
53,248
-
5,241
-
-
65,500
-
-
-
-
-
94,284
-
-
-
-
-
-
-
-
279
-
279
Trade
Payables
-
22,916
12,678
81
2,774
-
9,823
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,238
-
-
10,238
Non-trade
Payables
Advances
Received
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,557,463
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,197,929
1,191,467
6,462
359,534
-
355,059
-
4,475
Dividend
Receivable
-
-
-
-
-
-
11,323,211
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11,322,989
791,581
1,129,178
5,474,621
3,927,609
222
222
Dividend
Payable
4,852,378
2,425,461
-
-
5,123
-
-
291,852
-
-
112,000
-
-
-
-
204,868
-
1,352,903
426,728
-
-
31,987
-
193,618
-
-
-
193,618
1,197,929
1,191,467
6,462
1,035,370
-
655,591
-
379,779
Claim
Net
2014-15
-
11,651,187
317,459
81
2,774
-
9,823
9,356
-
50,924
26,228
-
53,248
-
5,241
-
-
65,500
-
-
-
-
-
94,284
11,322,989
791,581
1,129,178
5,474,621
3,927,609
222
222
-
10,517
-
279
10,238
Debt
Net
4,291,980
2,112,264
-
-
-
-
-
-
-
-
199,691
40,301
100,122
-
614,556
672,792
-
257,706
131,695
-
-
95,401
-
158,375
-
-
-
158,375
1,294,457
1,294,457
-
726,884
10
-
-
726,874
Claim
Debt
-
199
-
199
359
-
279
80
-
7,908,280
2,634,218
295
2,366
-
6,930
-
-
434,637
10,070
-
-
-
141,759
-
-
1,163,948
-
-
635,481
29,821
-
208,911
5,273,504
1,387,452
3,886,052
2013-14
35.3. Transactions of the Parent Company with related parties during 2014-15
Description Affiliated Party
Hormozgan
Steel
IRISA
Foulad Sang
Mobarakeh
Steel
Engineering
(Mehrgi)
Tara Steel
Sports &
Cultural
Subsidiary
Companies
Sanie’e Kaveh
Felez Tadarok
Amir Kabir
Kashan
Automobile
Plate
Metil Steel
Sangan Steel
Sepahan Novin
Sefid Dasht
Steel
Type of
Affiliation
Board Member
& Subsidiary
Board Member
& Subsidiary
Board Member
& Subsidiary
Board Member
& Subsidiary
Board Member
& Subsidiary
Board Member
& Subsidiary
Board Member
& Subsidiary
Board Member
& Subsidiary
Board Member
& Subsidiary
Board Member
& Subsidiary
Board Member
& Subsidiary
Board Member
& Subsidiary
Board Member
& Subsidiary
Board Member
& Subsidiary
Total
Total
Liable to
Article 129
Purchase
of Goods &
Services
Sales of Goods
& Services
1,304,830
3,388,542
91,636
-
110,142
-
62,555
-
154,070
-
292,000
-
-
1,331,197
94,913
-
-
1,411,776
12,359
2,838,445
-
-
-
720
-
-
-
29,052
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
-
-
64,416
-
Description Affiliated Party
Esfahan Steel
Khouzestan
Steel
Eastern Iran
Iron Ore
(Sangan)
Central Iron Ore
(Choghart)
Ascotec
Type of
Affiliation
Common Board
Member
Common Board
Member
Common Board
Member
Common Board
Member
Common Board
Member
Purchase
of Goods &
Services
Sales of Goods
& Services
596,175
570,764
-
-
-
-
3,303,176
-
130,246
-
Gole Gohar
Board Member
5,527,231
-
Chador Malou
Board Member
8,249,249
-
385,259
-
-
-
1,013,041
-
1,553,478
-
298,147
3,224
-
610
Common Board
Member
Common Board
IRITEC
Member
Sirjan Iranian
Common Board
Steel
Member
Zarand Kerman Common Board
Steel
Member
Consumption
Special
Cooperation
Relations
Housing
Special
Cooperation
Relations
IRASCO
Other
Related
Parties
Liable to
Article 129
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
Special
Relations
-
-
-
-
Total
27,839,111
574,598
Grand Total
30,026,032
9,574,330
Pension Fund
Grand Total
Group
Companies
IMIDRO
Justice Share
Social Security
Organization
Mehr Eghtesad
TAMCO
Metal Mines
Development
Hormozgan
Steel
IRISA
Foulad Sang
Mobarakeh
Steel
Engineering
(Mehrgi)
Tara Steel
Sports &
Cultural
Sanie’e Kaveh
Felez Tadarok
Amir Kabir
Kashan
Automobile
Plate
Metil Steel
Sangan Steel
Sepahan Novin
Sefid Dasht
Steel
Related Party
Esfahan Steel
Khouzestan
Steel
Eastern Iran
Iron Ore
(Sangan)
Central Iron Ore
(Choghart)
Ascotec
Gole Gohar
Chador Malou
IRASCO
IRITEC
Other Related
Sirjan Iranian
Parties
Steel
Zarand Kerman
Steel
Consumption
Cooperation
Housing
Cooperation
Toka Nasouz
Toka Rail
Toka Tadarok
Atieh Naghsh
Jahan
Pension Fund
Total
Total
Shareholders
with
Considerable
Influence
Total
Total
Subsidiary
Companies
Description
243,345
6,798,825
-
-
-
7,370
2,041,636
-
-
-
-
-
-
38,477
204,868
-
-
-
-
-
-
7,370
-
-
193,618
-
-
112,000
112,000
-
-
112,000
-
-
-
-
-
-
-
-
-
-
193,618
-
-
-
-
-
-
-
-
-
-
-
-
-
Paid Facilities
-
-
443,258
6,361,862
-
81,977
-
-
2,034,266
-
5,138
1,330,796
-
-
-
272,464
29,832
265,278
9,519
-
172
-
59
-
-
408,360
-
5,549,275
Non-trade
Receivables
-
Trade
Receivables
-
2,057,623
2,431,163
-
291,852
-
-
-
-
380,881
1,352,903
-
-
-
31,987
-
-
-
-
373,540
-
-
-
-
-
83,147
-
73,008
-
217,385
Prepayments
35.4. Balance of final account of the Parent Company’s related parties
2,304,781
3,611,520
9,356
26,228
160,924
-
-
53,248
263,356
5,241
115,856
-
1,126,467
449,821
-
94,284
-
-
-
1,306,739
-
-
279
-
-
-
-
-
-
41,029
23,169
-
1,242,262
Trade
Payables
-
-
-
-
9,823
9,823
20,061
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,238
-
-
-
-
-
-
10,238
Non-trade
Payables
-
-
-
-
-
740
19,084
-
-
-
-
-
-
34
-
-
-
706
-
-
-
18,344
-
-
-
100
5,626
12,618
-
Advances
Received
2,116,006
-
-
-
-
-
-
-
-
-
-
-
-
1,197,929
-
1,191,467
918,077
6,462
-
355,059
435
-
-
7,905
149,912
2,086
-
4,475
12,522
14,376
77,947
293,360
Dividend
Receivable
-
0
0
11,323,385
-
-
-
-
-
-
-
-
-
-
791,581
11,322,989
-
1,129,178
222
3,927,609
5,474,621
222
174
-
-
-
-
-
-
-
-
-
174
-
Dividend
Payable
2,420,338
13,499,630
-
291,852
112,000
-
-
-
426,728
1,352,903
204,868
-
-
-
31,987
193,618
-
-
1,197,929
193,618
-
1,191,467
9,687,745
6,462
443,258
355,059
82,412
-
1,335,934
273,183
558,444
85,233
-
379,779
22,041
14,435
295,332
5,842,635
Claim
2014-15
Net
9,823
2,315,344
14,974,050
9,356
26,228
160,924
-
-
53,248
263,356
5,241
115,856
34
1,126,467
449,821
-
791,581
11,322,989
94,990
1,129,178
222
3,927,609
5,474,621
222
1,335,495
-
-
279
-
100
5,626
12,618
-
10,238
-
41,029
23,343
-
1,242,262
Debt
2,112,264
6,692,977
199,691
40,301
100,122
672,792
614,556
131,695
257,706
95,401
158,375
1,294,457
158,375
1,294,457
3,127,881
-
59,137
10
-
464,936
519,277
435,341
726,874
330,684
591,622
Claim
2013-14
Net
6,930
2,631,557
7,962,672
10,070
434,637
141,759
1,163,948
635,481
29,821
1,387,452
5,273,504
208,911
3,886,052
199
57,412
199
-
279
-
80
19,285
37,768
Debt
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 Year
Allocations 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 Share
Million IRR
IRR
Legal Duties (Based on Article 90 of Trade Amendment Act):
Distribution of at Least 10% of Net Profit of 2014-15
Suggestion of the Board of Director:
Proposed Dividend of the Board of Directors (50% of Net Profit
of 2014-15)
2,376,073
48
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
Emirates
Dirham
Euro
Parent Company:
Cash
3
5,913,511
83,238,087
25,643,253
Total Foreign Currency Monetary
Assets
Financial Facilities
Total Foreign Currency Monetary
Liabilities
Net Foreign Currency Monetary
Assets (Liabilities)
Net Foreign Currency Monetary
Assets (Liabilities) at 20.03.2014
Foreign Currency Capital
Commitments
5
71,808,364
5,145,565
35,699,599
77,721,875
88,383,652
61,342,852
-
94,282,007
-
-
94,282,007
-
77,721,875
(5,898,355)
61,342,852
51,451,124
19,872,040
714,145,630
-
236,407,003
-
16
37.1. Earned foreign currency from export and foreign currency required for import and other
payments during the year is as follows:
Group
US Dollar
Sales & Services
Rendered
Other Receives
Euro
Parent Company
Dirham
US Dollar
Euro
Dirham
233,317,433
300,783,767
1,221,656,419
92,981,814
334,550,031
843,822,080
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

Mobarakeh Steel Company Annual Report (2014

Transcription

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