2013 Annual Report

Transcription

2013 Annual Report

Sepahan Oil Company
Report of Board of Directors' Activities to General Assembly of Stakeholders
Financial Year Ending March 20, 2013
General Assembly of Stakeholders
Attached is the report of board of directors related to financial year ending 21 st March. The present report is a summary of the
financial and operational performance of the company in the mentioned financial year and the future programs of Sepahan Oil
Company. It also includes information about the activities done related to obligations, constrains and the risks, human
resources and other related issues.
Members of board of directors
Majid Sheikhani
Position
Chairman of Board of Directors
Mohammad Reza Movasaqinia
Non-executive
Vice-president of board of director
Behroz Kareband Boushehri
Managing director
Member of Board of Director
Masoud Shariati
Non-executive
Member of board of director
Atalah Mehrabi Rad
Non-executive
Member of board of director
Executive
Sepahan Oil Company
Table of Contents
Chapter
1
2
3
4
5
6
7
8
9
10
11
12
-
Page
Message of Board of Directors
Overview
Operational activities
Commercial activities
Financial Provision Activities
Human Resources
Energy and the Environment
Financial Information
Measures Related to Assignments of the General Assembly in Previous Year
Activities of Sepahan Oil Company in the field of Indigenization
Activities of Company in the Field of Quality Management Standard
Other Subjects and Miscellaneous
Comparison of Budget and Performance
Last Remarks
3
4
19
26
34
35
44
50
57
64
65
66
73
76
Sepahan Oil Company
Message of Board of Directors
For fulfillment of the order of supreme leader in naming 2012 as "National Production and Support for Labor and Iranian
Investment", despite the sanctions, Sepahan Oil Company used local knowledge and expert forces to get the first rank in grease
working industry by sale volume of 11364 billion IRR based on the defined perspective and delegation. This report also
includes the most important activities done for fulfillment of this objective.
The management uses this opportunity to thanks all stakeholders for their unsparing support for Sepahan Oil Company and
presenting various recommendations in management and business of company and considers vital the continuous support of
stakeholders to achieve the objectives of the company.
Board of Directors of Sepahan Oil Company
Sepahan Oil Company
First chapter: Overview
1-1.
History
1-2.
Change of capital and composition of stakeholder
1-3.
Change of members of boards of director
1-4.
Business area and the place of company in industry
1-5.
The main activities done in the reported financial year
1-6.
Main suppliers of raw materials
1-7.
Main customers of the products of company
1-8.
Legal environment of company
1-9.
Brief introduction of groups' company
Sepahan Oil Company
1-1History
Sepahan oil refinery began its activities in 1992 as one of the units of Isfahan refineries. This refinery unit was established in
late September 1999 as a Private Joint Stock Company with the name of Isfahan oil Refinery Company and registered by
number 155078 dated 23rd September 1999 in general office for registration of companies and industrial properties of Tehran.
Moreover, according to paragraph "c"- article 10 of law of budget in 2000 concerning the decisions of the remittance
committee of fund claims, it was decided to transfer this company as oil making factory of Isfahan refinery to pension, saving
and welfare fund of oil industry retired employees. Based on this and concerning the elongation of the transfer process, this
company had no operational and commercial activity until March 2003 and the whole activities have been performed in form
of legal entity of Isfahan refinery. After transferring this company, it began its activities from April 2003 and relying on the
approvals of the Extraordinary General Meeting of stakeholders, the name of this company changed from Isfahan Oil Refinery
Company (private joint stock) to Sepahan Oil Company (private joint stock). This company had been one of the trade units of
Fund of Pension, Saving and Welfare of oil industry that in 2006, the whole share of fund transferred to investment company
of pension fund of employers of oil industry. The principal center is located in No. 92, Baharan Sq., Argentine Sq., Tehran and
the factory in kilometer 5 of Isfahan- Tehran road.
From its launch, Sepahan Oil Company began exporting extra extract and Slack Wax base oil by estimating the local demand
to oil parallel to producing diesel and gasoline engine oils. This has been the best decision and the indicative of the knowledge
of local and international markets.
Sepahan Oil Company
1-2-
Change of capital and array of stakeholders
The capital of company was 10 million IRR (including 10000 shares, with nominal value for each share of 1000 IRR) that
increased to 600,000 million IRR (including 600,000,000 shares with nominal value of each share of 1000 IRR). In the
reported year, according to approvals of extraordinary general meeting of stakeholders, the capital of company increased to
1,050,000 million IRR (including 1,050,000,000 shares with nominal value 1000 IRR for each share) from the place of
stakeholders' claims.
Date of increased capital
4th Dec 2006
6th Sept 2011
Change of capital of company
Percentage of increased New capital (million IRR)
capital
5,999,900
600,000
75
1,050,000
Increased capital
Accumulative interest
Claims
Sepahan Oil Company
1-3Change of members of board of directors
Members of board of directors are as follow:
Judicial members of board of
directors and managing
director
Majid Sheikhani
Mohammad Reza Movasaqi
Nia
Behroz Kareband Boushehri
Masoud Shariati
Atalah Mehrabirad
Date of
membership
beginning
2nd July 2012
28th Sep 2012
29th Feb 2011
29th Feb 2011
29th Feb 2011
Position
President of board of directors
Vise-president of board of directors
and managing director
Member of board of directors
Type of membership
(executive/ nonexecutive)
Non-executive
Executive
Non-executive
Non-executive
Executive
1-4Business and status of company in industry
Sepahan Oil Company with sale volume of 11,364,064 million IRR is in first rank compared to other main local companies
active in this industry (Behran, Iranol, Pars).
Sale volume of main producing companies of grease working products in Iran
Sepahan
Pars
Iranol
Behran
Sepahan Oil Company
Moreover, the share of various products of this company of the whole market is as follow:
Financial year ending 20th March 2013
Type of product
Whole market
Million IRR
Type of greaser
30,626,933
Slake Wax and Extract
4,706,433
Antifreeze
335,933
Share of company
Million IRR %
8,609,622
28.1%
2,640,628
64.8%
14,733
4.4%
Financial year ending 20th March 2012
Whole market
Share of company
Million IRR
Million IRR %
20,508,778
5,193,035
25.3%
2,707,111
1,761,647
65.1%
216,728
6,332
2.9%
The comparison of (IRR) sale of greasing products in 2011 and 2012 (Million IRR)*
Sepahan
Total sale in 2012
Pars
Iranol
Total sale in 2013
* The mentioned figures are extracted from financial statements ending March 2013
Behran
Sepahan Oil Company
1-5The main activities done in reported financial year
The main activities done are as follow according to the realm of activity:
 Deputy of operations
 REVAMP project related to RECOVERY part was completed and all related equipment were installed and
send to service sector after essential repair.
 New filters FIL-1312 and FIL-1311 and related equipment were installed and sent to service.
 LIC, TIC and PIC of projects were installed on PANEL of control room.
 Completion of foundation operation and installation of new transformers E-1323 D/F related to propane
system in related site and installation of all input and output paths.
 New chillers E-1306 C and E-1305 B related to cool solvent were installed on the related site and all input
and output paths were installed and kept on service.

Deputy of Economic and Finance

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






The feasibility study of development of the activities of the company in other countries and following up of
the proposals in this regard (such as China, Turkey, Hong Kong …)
The study of the recommendations for development of the activities of the company inside the country and
presenting required reports (such as activation of subsidiary companies and cooperation with other
companies)
Visiting the active offices and companies of the company and presenting report and recommendations
Active participation in preparing the budget
Holding meetings of board of directors and the meeting of subsidiary companies and following up of their
approvals
Preparation, investigation and participation in preparing the feasibility reports of projects and business such
as transportation, Grace project, Negin island etc.
Preparing the report of companies' performance to be presented to related authorities such as pension fund,
EPIC, etc.
Performing related activities for preparation of company to enter to exchange stock
Completion of the profiles of subsidiary companies and creation of databank from the related units
Following up the activities of subsidiary units and attempt for planning for maximum use of capacity and
the facilities of subsidiary companies to fulfill long term objectives of company,
Organizing the members of board of directors of subsidiary companies concerning the opinion of managing
director
Developing new transactional bylaw for company for facilitation in transactions and fulfilling duties
Cooperation in activation of employees' housing
Providing the ground for making modules for clarification of the performance of operational units of
company
Sepahan Oil Company

Engineering deputy
The main completed or implementing projects in 2012
 Designing supervision, construction, installation, implementation of piping of new filtering projects,
required equipment and shelter
 Designing supervision, construction, installation of equipment and implementation of piping of recovery
and chilling projects
 Designing supervision, construction, installation of equipment, and implementation of piping of 9 reservoir
project of Arya Solar
 Designing supervision, construction, installation of equipment and implementation of piping of twin
reservoir project of Lobecut
 Designing supervision, construction, installation of shelter project of accessories warehouse
 Designing supervision, construction of firefighting reservoir project
 Overhaul 2012
 Designing supervision and implementation of piping, piping project of 10 reservoir project
 Grace project

Commerce deputy
 Exporting the products by value of 8,256,600 million IRR
 Regular holding of transactions' commission
 Transferring marine transportation from SPD SHIP Company to commerce deputy
 Performing all export sales with free market rate
 Separating the system of weighting and loading from commerce deputy
 Deletion of purchases without certificate

Marketing and Sale Deputy
 Local sale of products of value 2,804,682 million IRR
 Reconsideration in sale contracts to industries and negotiation for modification of prices with consideration
of increased final price of products
 Following up of the issues and problems related to public- supervisory organizations in respect to obtaining
certificates of increased price and settlement of the issues and disputes
 Intelligent management on the distribution of products of company all over the country with regard to
changes on price and the consequences due to lack of different kinds of grease
 Change of the structure of capillary sale network in Tehran and north country
 Presence in the market of industries and participation in auctions

Human resources deputy
 Designing, drawing and implementing organizational chart
 Developing the task explanation and the conditions for taking positions
 Development and standardization of educational needs of positions for establishment and implementation
of software
 Development of draft of comprehensive plan of substitution
 Designing and systematic and parametric implementation of mechanism for determining the wage of
employees
Sepahan Oil Company

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


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

Installation of management dashboard (statistical data for drawing graph in respect of indices related to
human resources using data of Hamkaran System software)
6 executive stages for employees' evaluation
2 stages for implementation of management of employees' function (parameters for presence and absence,
evaluation and regulation)
1 stage for voting personnel based on Johnson model
Holding 10 sessions for human resources committee and taking required decisions in form of 138 approvals
Preparing managers' behavioral pattern using standards of Inscape company
Installation of automatic Work Flow for absence and presence certificate based on organizational chart in
refinery
Management for maintenance and repair
 Performing all certificates and instructions for repair and renovation sent from various units of Sepahan oil
refinery including repair of pumps, turbines, compressors, valves, dishes, transformers, towers, construction
of pieces, repair of electricity devices and precise instruments, transportation, industrial and chemical
washing, construction repair, insulation and painting the tubes, facilities and buildings
 Performing all instructions sent by engineering unit and plans for Arya Solar project of Tehran and Asaloye
including construction of types of pieces, MIXER, shelter and construction of equipment with reverse
engineering
 Performing all repair instructions sent by dish making factories including construction and repair of pieces
in filling lines 1, 4, 20 and 210 liter and installation and performing piping for new filling devices 1, 4 and
20 liter
 Implementation of essential maintenance of oil making devices 14 May 2012 to 6 June 2012 with 190000
person/hour working
 Cooperation in implementation of REVAMP projects and filtration
 Performing extract PIPING operation for discharge from tanker and loading in ship, installation of two
electro pump of 75 kw and installation of hot oil system in Sepahan oil company located in Bushehr cutom
(1150" welding)
 Implementation of all instruction sent by engineering unit and projects for piping of ten reservoirs, Line
Wax, Bright Stake, Line Base Oil, new reservoir for discharge of tankers containing lubricate, installation
and implementation of piping for four new filling devices of dish making unit, line extract if 14 reservoirs
(totally 10867" welding and 326 meter excavating and 845 meter cabling)
Management of processing
 Installation of new oven for heating IBC TANK dishes
 Complete overhaul of the valves of oil transfer path in blending kettles
 Change of 4 thermal transformers of 8 reservoir
 Beginning and continue of separation project of pumps of 10 reservoirs
 Installation of rail close to batch kettle for facilitation of discharging additive tankers
 Installation of HVI base oil pipeline from base oil reservoir to blending
 Installation of B.St pipeline on the main loops in blending
Sepahan Oil Company

Legal management
 Following up 65 cases of Sepahan oil company
 Preparation of the answer to inquiries
 Proving legal consultation to various units including the manner of getting guarantee, presenting guarantee
to bank etc.
 Drawing of mortgage documents
 Cancellation of official documents
 Drawing contract of attorneyship
 Revocation of attorneyship
 Adjustment of disclaimer and confession letters
 Participation in compromise meetings and negotiation with the creditors and debtors of company for
settlement of matter
 Preparation and presenting required documents for defending company to the lawyers and experts of the
case
 Revision of the contracts made in related units to company (including principal office and refinery), local
and foreign contracts including service, agency, transaction, contracting, shipping, hiring, consultation and
transportation contacts etc.
 Adjustment and registration of declaration letters
 Preparation of drafts of statements
 Getting certified copy of some required documents in various units
 Participation in the courts receipting legal agent including organization of labor, Iran chamber of commerce
and defending the right of company
1-6Main suppliers of raw materials
Raw materials of the company and main suppliers are as follow concerning the types of raw materials:
Main suppliers of raw materials
Raw materials by the company and main suppliers are as follow based on types of raw materials:
Type of raw
Suppliers
materials
ISO Recycle
Isfahan oil refinery company (about 71%)- Shiraz oil refinery company (about 29%)
Lobe cut
Isfahan oil refinery company (92.0%), Tabriz oil refinery company (5.5%), Tehran Tondgoyan
refinery company (about 1.4%), Shiraz oil refinery company (about 0.3%), Abadan oil refinery
company (0.3%), Arak oil product distribution company (0.3%), Sepahan Shimi Pishro Asia
company (0.2%)
Sepahan Oil Company
1-7Main customers of the products of company
Main customers of the products of company are as follow according to the type of products:
Main export customers
Type of product
Main customers
Type of product
Base oil
Richmond
Slake Wax
Lubrex
Unipetro
Petro Gold
IPC
Universal
Fajre Tabndeh
Sepahan Pishro
Petro Mashale
Black Gold
IST
Engine oil
Oceanic
Lubritech
Petroline
Alaska
Extract
Sepahan Pishro
Petro Khazar
Sama Lubricant
Richmond Petrochem
Sepahan Shimi Pishro
Petro Masal
Petro Pardis
IPC
Shimi Dor Sadf
Paidon
Uniexcell
Fajreh Tabandeh
Main customers
Golden Way
Petro Khazar
Sama lubricant
Richmond Petrochem
Sepahan Shimi Pishro
Petro Mashal
Petro Pardis
IPC
Shimi Dor Sadf
Paidon
Uniexcell
Fajreh Tabandeh
Golden Way
Vasef
ILIA Trading
Shining Gulf
AD DAR AL Watany
Petro Mashale
Haffer Machine
Fajre Tabandeh
Sepahan Oil Company
Local main customers/ final oil
System Asia greasing services company
Tabriz Ojan Shimi Company (Ocian)
Preparation and distribution of Iran Khodro accessories
Raja
Iran national drilling company
Saipa Yadak Company
Tahpouyan Rahe Abrisham Tabarestan Company
Parsian Sepahan oil engine company
Waxel Saipa manufacturing company of gearbox engine
(Mega motor)
Ramezan Zadeh Yazdi Rahim
General union of cooperation companies of rubber, oil
and filter
Malek Zadeh commercial company
Sazin Sazeh Jahan Company
Sayadi Zadeh Abbas
Ravan Sazan Sanat zadeh-Dabaq company
Khodabandehlo Asadolah
National company of south oil-rich areas
Sahel construction institute- Qorb Nooh, Khatam
Alanbia- Construction Base
ESCO
Masoud Brothers
Jonob industrial oil company
Panahi Asqar
Shimi Alvand Caspian Company
Shamakhi Golamreza
Golriz Khatami Dariush
Salaran Ali
Zare Vahid
Karimi Mohammad Taqi
Dadvar Abdulvahid
Heybati Ali
Sarafraz Mehdi
SAIPA
1-8Legal environment of the company
The main regulations governing the activities of the company:
- Ministry of oil (purchase contracts of raw materials and industrial services)
- Labor law
- Social security law
- Chamber of commerce (issue and extension of commercial code)
- Ministry of commerce (order registration of raw material)
- Custom (export of wholesale products and import of raw materials)
- Ministry of economic and finance affairs (tax law)
- Ministry of health, treatment and medical affairs (import of raw materials including M. E.K.)
- Ministry of industries, mines and trade (import of raw materials including M.E.K. and utilization certificate)
- Organization of environment (pollutant control law)
- Organization for supporting manufacturers and consumers)
Sepahan Oil Company
1-9
-
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Brief introduction of subsidiary companies
Arya Sola Chemical Industries Company
Type of company: Private joint stock
Current status: active
Date of installation: 15 June 2009
Quota proprietary percentage in that company: 99.498%
Other stakeholder:
Saba Naft Construction and Engineering Company (0.01%)
Naft G Refinery Company (0.01%)
Tanry Invest Holding (0.5%)

-
Tabriz Ojan Chimi Company (transfer to Rahbaran Javan Company)
Date of installation: 15 March 2003
Quota proprietary percentage in that company: 67%
Other stakeholder:
Arya Solar chemical industries company (1%)
Qeshm Kimiya Speedy Company (1%)
Mr Qafouri (0.1%)
Paye Gostar Sahand (30%)

Caspian Oil Company (Transfer to Rahbaran Javan Company)
Date of installation: 29 May 2005
Other stakeholder:
Seyed Abbas Mousavi Rahpeyma (12%)
Sepand Mousavi Rahpeyma (12%)
Sepehr Mousavi Rahpeyma (12%)
Maryam Mousavi Rahpeyma (12%)
Soheil Mousavi Rahpeyma (12%)
Sepahan Oil Company

Asalouye Farasakou Company (transfer to Rahbaran Javan Company)
Date of installation: 21 April 2007
Quota proprietary percentage in that company: 23.64% (31200000 shares)
Other stakeholder:
Oil Industry Employee's Fund Investment (41.89%)
Naft G Oil Refinery Company (15.34%)
Iran Marian Engineering and construction company (15.15%)
Saba Naft Engineering and Construction Company (3.98%)

Orasia Nemoneh Company
Date of installation: 16 January 2013

Qeshm Kimiya Speedy Company (transfer to Rahbaran Javan Company)
Date of installation: 14 Mach 2011
Quota proprietary percentage in that company: 98.99%
Other stakeholders:
Arya Solar Chemical Industries Company (1%)
Ahmad Reza Golestani (0.01%)
-
-

-
International Sepahan Oil Co. FZE (ISOC)
Date of installation: 01.10.2007
Field of activity: performing transactions related to oil and lobe cut
Sepahan Oil Company


-
SEPYANA company (transfer to Rahbaran Javan Company)
Field of activity: production and sale of greasing and lubricants in Kenya
Quota proprietary percentage in that company: 49% of 4870 shares of Sepyana company belongs to Orasya
Nemoneh Kish (100% of the share of this company belongs to Sepahan Oil Company in refer to letter of gift)
Other stakeholders:
Lubken investment limited (51%)
ELSE Company (at dissolution)
Current status: inactive
Field of activity: Trade of oil, transaction of oil derivatives, import and export. The aim for installation was making
better condition for export of goods
Other stakeholders:
Elco Company (51%)

-
SEA ENTERPRISE Ltd (transfer to Rahbaran company along with SPD Ship)
Quota proprietary percentage in that company: SPD ship (100%)
Field of activity: activity as a holding company, purchase and maintenance of ship and performing general trade
activities, utilization and management of ship, proprietorship and hiring ship and other related permissible activities
by RAK Offshore Authority

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SPD ship FZC (transfer to Rahbaran Javan Company)
Date of registration: 19.11.2009
Quota proprietary percentage in that company: (100%)
Sepahan Oil Company
-
-
 IST (transfer to Rahbaran Javan Company)
- Type of company: Private joint stock
- Current status: active
- Date of registration: 16.09.2010
- Quota proprietary percentage in that company: (100%)
Field of activity: purchase, selling and export of any type of oil, lobe cut, base oil and secondary derivatives, gas, oil and
oil processes inside and out of Turkey. Moreover, marine transportation, transportation by truck, internal and
international marine transportation, sell, purchase, application, import and export of any type of ship and other marine
devices and transportation machineries.
 PEDU (at dissolution and replacement)
- Type of company: Private joint stock
- Current status: active
- Date of registration: 23.09.2010
- Quota proprietary percentage in that company: (100%)
Field of activity: oil trade, transaction of oil derivatives, import and export, the aim was for make better condition for
export.

-
UNISEP (dissolved)
Date of registration: 24.01.2007
Quota proprietary percentage in that company: (49%%)
Other stakeholders:
Universal company (51%)
Field of activity: intermediary of money exchanges and operations related to utilization of three ships
Sepahan Oil Company
Second chapter: Operational activities
2-1. Manufacturing strategy
2-2. Comparative statistics of production
2-2-1. The quantitative information of the productions of the company in respect to type of product
2-2-2. The comparison of monthly real production and the produced budget
2-3. The performance of the projects of company
2-3-1. General introduction of the projects of company
2-3-2. Statistical report of projects
2-3-3. Projects at hand in construction and completion
2-3-4. Table of the progress of implementing projects
Sepahan Oil Company
2-1. Production strategy
In three-year strategic program of the company approved by managing director in September 2012, the strategies of the
company will be fulfilled by emphasis on the development of the market share of the company through keeping and developing
local markets and increasing the export of products to other countries of the regions and the world.
2-2. Comparative statistics of production
The information related to the productions of the company are as follow, comparatively:
2-2. The quantitative information of the products of the company according to the type of product
Row Product
Unit
Prediction
2012
2011
2013
Budget
Production
Budget
Production
1
Base oil
Ton
272500
230080
247070
297900
234500
2
Wax
Ton
68150
5168
65900
54900
57500
3
Extract
Ton
185850
155040
181600
211500
177100
4
Final oil
Ton
112400
90000
80030
81000
95300
Total
638900
526800
574600
645300
564400
The comparative statistics of production in 2011-2012, predicted budget of 2013 (ton)
Base oil
Wax
Budget 2013
Extract
2012
Final oil
2010
Total
Sepahan Oil Company
Real
production
Budgeted
production
Desired
controversy
(undesired)
Real
production
Budgeted
production
Desired
controversy
(undesired)
Real
production
Budgeted
production
Desired
controversy
(undesired)
Final oil
Desired
controversy
(undesired)
March
April
May
June
July
August
September
October
November
December
January
February
Extract
Budgeted
production
1
2
3
4
5
6
7
8
9
10
11
12
Total
2-2-2. The comparison of monthly real production and budgeted production 2012
Months
Base oil
Wax
Real
production
Row
19.37
10.11
0.00
27.00
25.12
27.16
25.18
20.18
24.08
24.19
23.51
21.17
247.07
23.00
0.00
3.68
23.00
23.00
23.00
22.40
22.40
22.40
22.40
22.40
22.40
230.08
-3.63
10.11
-3.68
4.00
2.12
4.16
2.78
-2.22
1.68
1.79
1.11
-1.23
16.99
4.31
4.00
0.67
5.97
5.65
6.46
5.83
5.60
6.48
6.75
6.70
7.48
65.90
5.50
1.38
2.50
5.50
5.50
5.50
4.30
4.30
4.30
4.30
4.30
4.30
51.68
-1.19
2.62
-1.83
0.47
0.15
0.96
1.53
1.30
2.18
2.45
2.40
2.90
14.22
12.01
10.36
5.50
16.38
14.46
17.89
17.79
19.31
16.92
17.91
17.38
15.69
181.60
14.40
0.54
4.20
15.30
1530
15.30
15.00
15.00
15.00
15.00
15.00
15.00
155.04
-2.39
9.82
1.30
1.08
-0.84
2.59
2.79
4.31
1.92
2.91
2.38
0.69
26.56
5.84
1.83
0.81
4.97
10.14
14.57
13.36
4.15
3.43
7.28
6.41
7.25
80.03
8.80
2.60
4.20
8.80
8.80
8.80
8.00
8.00
8.00
8.00
8.00
8.00
90.00
-2.96
-0.77
-3.39
-3.83
5.77
5.77
5.36
-3.85
-4.57
-0.72
-1.59
-0.75
-9.97
Sepahan Oil Company
2-3. The performance of the projects of company
2-3-1. General introduction of the projects of company
General introduction of the projects of company
The subject of contract or project
Product (aim of
Date of contract
Duration of project
project)
according to contract
Construction project of filers of
Improved quality
29 May 2011
420 working days
plasticity unit FIL-1311, FIL-1312
of Wax and
increased capacity
Bundle tube with power of 800 KW (4 The demand of
October 2012
60 working days
tubes)
operation unit
Accessories warehouse of dish unit
Storage of
June 2012
90 working days
accessories
Foundation for discharge reservoir of
Capacity making
October 2012
60 working days
Lube Cut
Repair and strengthening the cooling
Repair and
April 2011
One year
tower c of refinery
strengthening
Construction of fire-fighting
Needing refinery
10 April 2012
120 working days
reservoirs 2500 gallons
Construction of custom wall
Cost reduction
2012
90 working days
Construction of 9 reservoirs of Arya
Development and
31 October 2011
One year
Solar
plan
Construction of Lube Cut discharge
Facilitation of
2 May 2012
45 working days
reservoir with piping
Lube cut discharge
trend
Piping of Arya Solar nine reservoir
Development and
7 October
60 working days
plan
Construction of two batches kettle of
Development and
July 2012
60 working days
Initial value of
contract (IRR)
19,400,000,000
The implementation
site of project
Sepahan oil company
2,000,000,000
Sepahan oil company
7,000,000 IRR
Sepahan oil company
800,000,000
Sepahan oil company
3,000,000,000
Isfahan refinery
2,284,000,000
Sepahan oil company
2,000,000,000
2,400,000,000
Arya Solar
Sepahan oil company
2,200,000,000
Sepahan oil company
2,625,000,000
Sepahan oil company
700,000,000
Arya Solar
Sepahan Oil Company
Arya Solar
Arya Solar 9 reservoirs project
(Suction heater, hot oil package,
compressor, …)
REPULP reservoir insulating project
Separation of ten reservoirs pumps
New path of oil from BASE OIL
reservoir to blending building
Insulation of the body of new filters
Construction project of aerial coolers
E-1316B, E1319 B
Piping of fire-fighting reservoirs 2500
gallons
Insulation of the body of 4 reservoirs
of 14 reservoirs
plan
Development and
plan
Quality
improvement of
Wax and increased
capacity
Diversity of
products
Diversity of
products
Improved quality
of wax and
increased capacity
Increased capacity
of plasticity unit
Need refinery
Wax and Extract
storage
July 2012
120 working days
4,540,000,000
Arya Solar
October 2012
30 working days
1,000,000,000
Sepahan oil company
April 2012
60 working days
4,000,000,000
Sepahan oil company
July 2012
30 working days
800,000,000
Sepahan oil company
September 2012
60 working days
1,100,000,000
Sepahan oil company
Contractor's
selection stage
Contractor's
selection stage
27 January 2013
Contractor's selection
stage
Contractor's selection
stage
60 working days
10,000,000,000
Sepahan oil company
2,000,000,000
Sepahan oil company
4,300,000,000
Sepahan Oil
Company
Sepahan Oil Company
2-3-2. Statistical report of the projects of company
Statistical report of (minor) projects of company n 2012
Total number of projects
26
Completed projects
23
Implementing projects
3
Total IRR volume of projects
70,724,000,000
IRR volume of completed projects in 2012
64,724,000,000
IRR volume of implementing projects
6,000,000,000
2-3-2-1. The title of major development projects at study and implementation






High quality wax production project
PDA Bright Stock production project
Oil (group 2) production through RHC method
Grease production by cooperation of Fox Germany
Making oil refinery in Bandar Abbas site
Installation of production pipelines in other countries (Kenya, Turkey, …)
Sepahan Oil Company
Projects at
hand
Completed projects at 2012
Title
Total
2-2-3. Projects at hand and completed projects
Ro Gross value of contract
w
Subject of contract
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Currency
section
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Construction of plasticity filters- FIL- 1311, FIL 1312
Construction of new filers for plasticity section
REPULP reservoir construction project
Revamp piping project- plasticity unit
Purchase of bundle tube with power of 800 KW (4)
Filters of plasticity unit (purchase of 5 pumps)
Warehouse shelter of container unit
Lube cut discharge reservoir foundation
Repair and strengthening of cooler tower c refinery
Construction of fire-fighting reservoir (2500 gallons)
Construction of custom wall
Construction of nine reservoir of Arya Solar
Construction of discharge reservoirs of lube cut will piping
Filters of plasticity unit
Construction of two batch kettles of Arya Solar
Purchase of one compressor of Arya Solar
Purchase of 9 heater suctions of Arya Solar
Purchase of one generator for Arya Solar project
REPULP reservoir insulating project
Separating the pumps of 10 reservoirs
New path of oil from BASE OIL reservoir to blending
building
22
Insulating of the body of new filters
0
23
Insulating the body of 4 reservoirs of 14
0
Total projects completed in 2012
1
Purchase of electricity instruments and tools of nine
0
reservoirs of Arya Solar
2
Piping of reservoirs of Arya Solar
0
3
Implementation of Steam Coil of 4 reservoirs out of
0
14
Total projects at hand
0
Rial section
Total (IRR)
12,000,000,000
2,400,000,000
1,800,000,000
5,500,000,000
2,000,000,000
2,200,000,000
7,000,000,000
800,000,000
3,000,000,000
2,284,000,000
2,000,000,000
2,400,000,000
2,200,000,000
4,000,000,000
700,000,000
420,000,000
420,000,000
2,400,000,000
1,000,000,000
4,000,000,000
800,000,000
12,000,000,000
2,400,000,000
1,800,000,000
5,500,000,000
2,000,000,000
2,200,000,000
7,000,000,000
800,000,000
3,000,000,000
2,284,000,000
2,000,000,000
2,400,000,000
2,200,000,000
4,000,000,000
700,000,000
420,000,000
420,000,000
2,400,000,000
1,000,000,000
4,000,000,000
800,000,000
1,100,000,000
4,300,000,000
64,724,000,000
1,300,000,000
1,100,000,000
4,300,000,000
64,724,000,000
1,300,000,000
3,200,000,000
1,500,000,000
3,200,000,000
1,500,000,000
6,000,000,000
70,724,000,000
6,000,000,000
70,724,000,000
Sepahan Oil Company
Row
1
2
3
2-3-4. The progress of implementing projects
Project
Main
According
contractor program
Start date
Purchase of electricity
devices and tools of
nine reservoirs of Arya
Solar
Piping of Arya Solar
reservoir
Implementation
of
steam coil of 4 out of 14
reservoirs
to
early
Physical progress (%)
End date
According
to program
Financial progress
Engineering
unit
Sept 2012
April 2013
50%
Real cumulative
progress to early
2013
50%
Progress
in 2012
According
to program
Progress
in 2012
50%
Real cumulative
progress to early
2013
50%
50%
Shahab
Sanat
Kaviyan
Repair unit
Oct 2013
April 2013
60%
80%
60%
60%
60%
60%
Feb 2013
June 2013
90%
85%
85%
80%
75%
75%
50%
Sepahan Oil Company
3-1- Comparative Statistics of Product Sale
3-1-1- Sales performance separately with regard to the type of the products in the past two years
3-1-2- Sales performance separately with regard to the domestic sales and export sales in the past two years
3-1-3- Table of domestic sales of the company separately with regard to the type of the product during the past two
years
3-1-4- Table of export sales of the company separately with regard to the type of the product during the past two
years
3-1-5- Rial volume of credit and cash sales of exported products during the past two years
3-1-6- Rial volume of credit and cash domestic sales during the past two years
3-1-7- Changes in the sales prices of the products
3-1-8- Comparing the actual sales performance with the budget
3-2- Export
3-2-1- Export plans
3-2-2- Company’s challenges in the field of export
Sepahan Oil Company
3-1- Product Sale Statistics
3-1-1- Sales performance during the past two years separated based on the type of the products
Total sales performance during the past two years separated based on the product type
Product
Year 91
Year 90
Unit (cubic meter)
Amount (million
Unit (cubic meter)
Amount (million
Rials)
Rials)
Base oil
289,679
6,588,674
274,148
3,575,327
Extract
184,179
1,796,179
166,772
1,141,044
Slack wax
56,082
844,448
64,820
620,603
Engine oil
92,855
2,020,948
100,112
1,617,708
Grease
131
2,904
377
8,229
Antifreeze
610
14,733
395
6,332
Other
1,734
123,396
…
…
Sum
625,270
11,391,282
606,624
6,969,243
Deducted
(27218)
(42131)
(discounts)
Sum total after
625,270
113,640,64
606,624
6,927,112
deduction of
discounts
3-1-2- Sales performance during the past two years separated based on domestic and export sales
Sale performance during the past two years separated based on domestic and export sale
Year 91
Year 90
Unit (cubic meter)
Amount (million
Unit (cubic meter)
Amount (million
Rials)
Rials)
Domestic sale
175,544
2,804
269,605
2,843,509
Export sale
449,726
8,586,600
337,019
4,125,734
Sum
625,270
11,391,282
606,624
6,969,243
Deducted
(27,218)
(42,131)
(discounts)
Sum total after
625,270
11,364,064
606,624
6,927,112
deduction of
discounts
Sale
Sepahan Oil Company
3-1-3- Table of domestic sale during the past two years separated based on the product type
Table of domestic sale during the past two years separated based on the product type
Year 91
Year 90
Unit (cubic meter)
Amount (million
Unit (cubic meter)
Amount (million
Rials)
Rials)
Gasoline engine oil
42,392
901,614
53,473
819,045
Diesel engine oil
14,310
347,942
24,411
429,075
Other engine oils
647
17,174
666
13,759
Slack wax
60,013
539,194
111,781
744,179
Industrial oil
36,930
473,178
54,023
470,323
Base oil
8,098
142,006
11,149
135,440
Antifreeze
444
11048
395
6,332
Grease
131
2,904
377
8,229
marine lubricants
95
2,745
332
6,869
Raw materials
1,734
120,802
Packing instruments
2,594
and essentials
Sum
175,544
2,804,682
269,605
2,843,509
Deducted:
(27,218)
(42,131)
(discounts)
Sum total after
175,544
2,777,646
269,605
2,801,378
deduction of
discounts
Product
3-1-4- Table of export sale during the past two years, separated on the basis of product type
Table of export sale during the past two years, separated based on product type
Year 91
Year 90
Unit (cubic meter)
Amount (million
Unit (cubic meter)
Amount (million
Rials)
Rials)
Base oil
281,581
6,446,668
262,999
3,439,887
Extract
19.152
371,270
10,797
150,280
Heavy wax
24,661
507,992
8,232
138,702
Engine oil
19,152
371,270
10,797
150,280
Antifreeze
166
3,685
Sum
449,726
8,586,600
337,019
4,125,734
Product
Sepahan Oil Company
3-1-5- Credit and cash product sale in the past two years in Rials
Product
SN-500
Rubber
Heavy
Cash
wax
Engine
oil
Cool
ANT
Cash sum
Credit
SN-500
Rubber
Credit sum
Sum total
Credit and cash product sale in the past two years in Rials
Year 91
Year 90
Sale (tons)
Amount (million
Sale (tons)
Amount (million
Rials)
Rials)
236,511
6,084,054
224,695
3,206,245
103,437
1,176,557
51,550
379,470
22,532
371,270
12,554
150,280
21,949
507,992
8,232
138,702
151
3,685
0
0
384,579
14,096
7,071
21,167
405,746
8,143,558
362,614
80,428
443,042
8,586,600
297,0032
16,374
2,363
18,737
315,769
3,874,697
233,643
17,395
251,038
4,125,735
Sepahan Oil Company
3-1-6- Credit and cash domestic sale in the past two years in Rials
Product
Slack wax
Extract
Engine oils
Cash
industrial
oils
Marine
lubricants
Base oil
Grease
Antifreeze
Cash sum
Slack wax
Extract
Engine oils
Credit
Industrial
oils
Marine
lubricants
Base oil
Grease
Antifreeze
Credit sum
Credit and cash domestic sale in the past two years in Rials
Year 91
Year 90
Sale (liters)
Amount (million
Sale (liters)
Amount (million
Rials)
Rials)
36,929,712
474,592
54,020,580
468,910
60,013,289
539,194
119,518
734,098
46,431,314
993,931
63,913
1,011,561
4,985,112
116,826
6,922,687
109,359
9,984
235
291,001
6,227
8,098,370
97,642
336,104
156,901,527
0
0
10,925,127
5,764,703
142,006
1,935
9,233
2,277,952
0
0
271,962
126,657
11,175,387
81,713
216,676
256,139,341
0
1,843,238
14,685,378
6,090,674
135,440
1,775
3,944
2,471,314
0
10,081
250,737
101,227
84,888
2,410
41,392
642
0
33,423
108,196
16,916,337
0
969
1,815
403,813
0
295,813
177,632
23,134,127
0
6,454
2,389
371,530
Sepahan Oil Company
3-1-7- Changes in the product sale price
The sale price of the products is determined based on the approval of the Pricing Committee (for export products)
and on the approval of the Organization of Protection of Customers and Producers (for the domestic product sale).
The changes in the sale price of the company’s products are as explained below in the past two years:
Changes in the sale price of the export products
Year 91
Year 90
Average sale price
Changes percentage
Average sale price
Changes percentage
(Rials)
in comparison with
(Rials)
in comparison with
the previous year
the previous year
Base oil
25,720
80%
14,269
58%
Extract
11,371
54%
7,361
…*
Wax
16,477
38%
11,971
…*
Engine oil
23,292
38%
16,849
…*
* Extract wax and engine oil were not exported before 2011
Product
3-1-8- Comparing the actual sale performance with the budget (million Rials)
Product
Base oil
Extract
Wax
Engine oil
Other (including
antifreeze, grease,
and etc.)
Sum
Discounts
Sum total
Comparing the actual sale performance with the budget (million Rials)
Year 91
Year 90
Actual sale
Budgeted
Budget
Actual sale
Budgeted
(Rials)
sale/ Rials
realization
(Rials)
sale/ Rials
(percent)
6,588,674
3,441,242
191%
3,575,327
4,078,260
1,796,179
1,225,630
147%
1,141,044
1,424,750
844,448
639,090
132%
620,603
604,800
2,020,948
2,215,400
91%
1,619,068
1,326,830
Budget
realization
(percent)
88%
80%
103%
122%
141,033
…
…
…
…
…
11,391,282
(27,218)
11,364,064
7,546,362
(25,000)
7,521,362
151%
109%
151%
6,969,243
(42,131)
6,927,112
7,517,115
(52,426)
7,646,689
94%
80%
93%
Sepahan Oil Company
Product
Base oil
Extract
Wax
Engine oil
Antifreeze
Sum
Comparing the actual export sale performance with the budget (Million Rials)
Year 91
Year 90
Actual sale
Budgeted
Budget
Actual sale
Budgeted
(Rials)
sale/ Rials
realization
(Rials)
sale/ Rials
(percent)
6,446,668
3,201,142
201%
3,439,887
3,965,760
1,256,985
370,718
339%
396,865
324,000
371,270
279,090
133%
150,280
334,800
507,992
550,000
92%
138,702
0
3,685
0
0
0
8,586,600
4,400,950
195%
4,125,734
4,624,560
Comparing the actual domestic sale performance with the budget (million Rials)
Year 91
Year 90
Actual sale
Budgeted
Budget
Actual sale
Budgeted
(Rials)
sale/ Rials
realization
(Rials)
sale/ Rials
(percent)
Varied engine oils
1,269,375
1,480,500
86%
1,270,108
1,165,820
Extract
539,194
854,912
63%
744,179
1,100,750
Slack wax
473,178
360,000
131%
470,323
270,000
Industrial oil
243,581
184,900
132%
210,258
161,010
Base oil
142,006
240,100
59%
135,440
112,500
Other (including
antifreeze, grease,
137,348
25,000
549%
21,430
82,475
and etc.)
Sum
2,804,682
3,145,412
89%
2,843,509
2,892,555
Discounts
(27,218)
(25,000)
109%
(42,131)
(52,426)
Sum total after
2,777,464
3,120,412
89%
2,801,378
2,840,129
deducting discounts
Budget
realization
(percent)
87%
122%
45%
89%
Product
Budget
realization
(percent)
109%
68%
174%
131%
120%
26%
98%
80%
99%
Sepahan Oil Company
3-2- Export
3-2-1- Export Plans
The future plans in the field of selecting export target markets and market share are as explained below:




Examining the market based on the segmentation on the basis of international exhibitions
Examining the global- regional competitors
Requesting the cooperation of the producers of other countries in order to produce Sepahan’s products in
those countries
Production under license inside and outside the country
3-2-2- Export- Related difficulties
There are some difficulties regarding exporting the products. The most important are as explained below:
-
International sanctions
The foreign ships are unable to be present for transporting the load from Iran
Documentary credits not being opened in favor of Iran
An increase in the executive operations expenses
Being unable to provide the essential raw materials
Not having an export license for the products
The company has planned the following measures in order to eliminate these problems:
-
Planning to create headquarters in companies with export potentials
Make an effort to attain permit
Advertising and developing target markets of base oil and final products of the company
Concentrating more on FOB sale in order to eliminate the transportation problem
Executing the customs project, space construction, and building walls for customs affairs in Isfahan
Sepahan Oil Company
Fourth Chapter: Financial Provision Activities
4-1- Company’s financial provision
Manner of providing the company’s financial needs (figures in million Rials)
Description
2012
2011
Bank loans
1,983,755
946,202
Main company
200
200
Bonds
0
0
Increasing the capital
0
450,000
Savings
0
0
Accumulated profit
0
0
Other
0
0
Sum
1985346
1397792
4-2- Due date and the financial provision interest rate of the company
Description
Bank loans
Loan from Sepah Bank
Loan from Tejarat Bank
Loan from Melat Bank
Loan from Tejarat Bank
Due date and the financial provision interest rate of the company
2013
2012
Due date
Interest rate
Due date
30.09.2013
27.05.2013
17.09.2013
15.08.2013
19.02.2014
10.09.2013
0
0
0
0
Interest rate
21%
21%
22.50%
21%
21%
21%
20.06.2012
04.07.2012
19.07.2012
21.10.2012
17%
19%
17%
17%
Sepahan Oil Company
Fifth Chapter: Human Resources
5-1- Human resources strategies
5-2- The measures taken by the company in order to attend to the human resources developmental systems
5-3- Information regarding the human resources based in terms of the work place and the type of the job
5-4- Table of work experience of the employees in 2012
5-5- Table of dividing the employees based on their age in 2012
5-6- Information regarding the educational performance of the company
5-7- The process of the company’s scores based on EFQM assessment
Sepahan Oil Company
5-1- Human resources strategies
The sample company has established its human resources strategies based on the following matters with the aim
to provide, develop, and manage the human resources with the essential motivation to achieve success in the
global class.
-
Organizational and personal development of the personnel based on capability and knowledge
Promoting the education level of the employees
Identifying and hiring efficient work force
Promoting employee motivation
Sepahan Oil Company
5-2- Measures taken by the company in order to attend to the human resources developmental systems
No.
1
1-1
1-2
1-3
1-4
2
2-2
2-3
2-4
3
3-1
3-2
4
4-1
5
5-1
5-2
5-3
5-4
5-5
6-5
Measures taken by the company in order to attend to the human resources developmental systems
Title
Not
Slight
Significant
Completely
started
progress
progress
realized
Strategic planning for the human resources
The strategic planning system for developing
*
the human resources
Planning system and hiring human resources
*
Career progress system
*
Replacement- promoting system and
*
promoting the employees
Modern management system
Suggestions system
*
Partnership teams system
*
Space organization system (S5)
*
Employee- improvement system
Educational system of employees
*
System for making the employees effective
*
Human- resources information system
Human- resources mechanized system
*
Human resources maintenance system
Appreciating the employees’ services system
*
System of performance assessment and
management (employees- management*
entire company)
Health and security system
*
System of assessing the employees’
*
satisfaction
Effectiveness system
*
Welfare and motivation services system
*
Sepahan Oil Company
5-3- Information regarding the human resources based in terms of the work place and the type of the job
No.
A
B
C
Description
Direct
production
1- production
2- production
support
Indirect
production
1- quality
control
2engineering
3- other
Supporting
services
1administrative
2- financial
3commercial
4- other
sum
Gender
Information regarding the human resources based in terms of the work place and the type of the
Personnel classification at the end of 2012
Personnel classification
Employee
Worker
Other
Employee
Permanent Contract Permanent contract Temporary
Permanent Contract Permanent
Male
Female
135
1
32
95
2
5
0
2
34
94
2
71
64
1
0
22
10
49
46
0
2
0
5
0
0
1
1
24
10
49
45
0
2
60
4
12
51
0
0
0
1
12
45
0
14
1
2
13
0
0
0
0
2
13
0
18
1
5
14
0
0
0
0
5
16
0
28
126
2
35
5
4
24
148
0
0
0
9
0
0
1
0
5
6
16
155
0
0
32
8
0
31
0
9
0
0
2
33
0
14
36
12
6
1
3
25
39
0
0
0
0
0
0
0
0
1
3
26
50
0
0
44
321
9
40
0
48
53
294
0
2
0
14
0
0
0
3
0
52
46
294
0
2
Sepahan Oil Company
5-4- Table of work experience of the employees in 2012
No
.
1
2
3
4
5
6
7
Description
Direct
production
Indirect
production
Administrativ
e
Financial and
economic
Commercial
Sale and
marketing
Other
Sum
Table of work experience of the employees in 2012
Below 5 years
5 to 10 years
10 to 20 years 20 to 30 years
More than 30
years
Ma
Woma
n
n
10
0
Ma
n
56
Woma
n
1
Ma
n
16
Woma
n
0
Ma
n
30
Woma
n
0
Ma
n
23
Woma
n
0
22
3
13
1
16
0
9
0
0
15
7
10
1
7
0
0
0
1
8
3
4
7
0
2
18
18
3
5
6
3
2
1
7
2
1
1
6
136
2
29
1
52
0
9
5
74
0
2
Sum
Ma
n
135
Woma
n
1
0
4
60
0
0
32
8
0
1
0
14
12
5
3
0
0
0
0
0
0
36
26
6
7
5
47
0
0
1
12
0
0
18
321
2
40
5-5- Table of dividing the employees based on their age in 2012
No
.
1
2
3
4
5
6
7
Description
Direct
production
Indirect
production
Administrativ
e
Financial and
economic
Commercial
Sale and
marketing
Other
Sum
Table of dividing the employees based on their age in 2012
Below 25
25 to 35 years 35 to 45 years 45 to 55 years
Above 55
years
Ma
Woma
n
n
10
Ma
n
0
Woma
n
0
Ma
n
52
Woma
n
1
Ma
n
48
Woma
n
0
Ma
n
25
Woma
n
0
0
29
3
22
1
6
0
3
2
1
14
3
15
2
0
2
0
0
8
10
3
2
2
4
0
0
0
19
16
5
4
6
1
1
0
0
6
0
1
9
147
1
27
4
99
1
7
Sum
Ma
n
135
Woma
n
1
0
60
4
1
0
32
8
0
1
0
14
12
7
7
0
2
0
2
0
1
36
26
6
7
2
49
0
4
3
20
0
1
18
321
2
40
Sepahan Oil Company
5-6- Information regarding the educational performance of the company
Information regarding the educational performance of the company
No.
Course
Number of
participants
Course
duration in
hours
Course cost
1
Introductory
security
English
20
2
0 Rials
40
60
340
2
3
4
5
6
7
8
9
10
11
12
Introductory
security for
OVERHAUL
Firefighting
Security
regulations,
review
Introduction
to the
principles of
scaffold
OVERHAUL
Firefighting
OVERHAUL
Launching
and closing
furfural
Primavera
Firefighting
OVERHAUL
Introduction
to precise
tools
REVAMP
Introductory
security for
OVERHAUL
The
number of
times the
course was
held in the
company
1
Total cost
Place
Date
Individual
training
hour
-
30
10,800,000
Rials
1st of
Farvardin
1st of
Farvardin
40
180,000
Rials
2
0 Rials
1
-
Within the
organization
Within the
organization
Within the
organization
20
4
0 Rials
1
-
20
4
0 Rials
2
2400
-
Within the
organization
Within the
organization
2nd of
Ordibehesht
2nd of
Ordibehesht
2nd of
Ordibehesht
Within the
organization
2nd of
Ordibehesht
Within the
organization
Within the
organization
2nd of
Ordibehesht
2nd of
Ordibehesht
500
2nd of
Ordibehesht
3rd of
Khordad
3rd of
Khordad
120
3rd of
Khordad
560
30
4
O Rials
2
-
250
2
0 Rials
1
-
15
8
0 Rials
2
0
15
8
1
300
2
6,000,000
Rials
0 Rials
1
6,000,000
Rials
0 Rials
37
4
0 Rials
2
0 Rials
Within the
organization
Within the
organization
Within the
organization
280
2
0 Rials
1
0 Rials
Within the
organization
680
80
80
120
120
600
148
Sepahan Oil Company
Within the
organization
Within the
organization
Within the
organization
4th of Tir
160
4th of Tir
2400
4th of Tir
80
0 Rials
Outside the
organization
4th of Tir
8
1,450,000
Rials
3,100,000
Rials
Outside the
organization
Within the
organization
4th of Tir
24
5th of
Mordad
16
2
0 Rials
Within the
organization
5th of
Mordad
160
2
0 Rials
Within the
organization
5th of
Mordad
144
Within the
organization
6th of
Shahrivar
200
Outside the
organization
Outside the
organization
Outside the
organization
6th of
Shahrivar
6th of
Shahrivar
6th of
Shahrivar
8
Within the
7th of Mehr
13
S5
40
4
0 Rials
1
0 Rials
14
English
40
60
180,000
Rials
30
10,800,000
Rials
15
Health of the
restaurant
employees
Educational
seminar of
explaining
documentation
of regulations
and
obligations of
Standard
Organization
Spss
20
4
0 Rials
1
0 Rials
1
8
750,000
Rials
1
3
8
1
2
8
1,450,000
RIals
1,550,000
Rials
40
4
0 Rials
18
8
0 Rials
16
17
18
19
20
21
22
23
24
25
Production
planning and
control
Identifying
different
gasoline oils
Hot and cold
work permit
issuance
Introduction
to
warehousing
and the
application of
MESC in the
warehouse
PT level 1-2
course
Measurement
uncertainty
Seminar of
materials and
mrp materials
requirements
Introductory
1
25
8
0 RIals
2
0 Rials
1
8
1
3
8
4,500,000
Rials
1,000,000
Rials
4,500,000
Rials
3,000,000
Rials
1
8
1,550,000
Rials
1
1,550,000
Rials
4
2
0 Rials
1
0 Rials
1
24
8
8
Sepahan Oil Company
26
27
security
English
38
60
180,000
Rials
1,600,000
Rials
30
1
10,800,000
Rials
1,600,000
Rials
1
8
28
Test of
different oils
internships
S5
34
20
0 Rials
4
0 Rials
29
ISO/TS 16949
7
15
7,600,000
Rials
3
7,600,000
Rials
organization
Within the
organization
Outside the
organization
Within the
organization
Within the
organization
7th of Mehr
2280
7th of Mehr
8
8th of Aban
680
8th of Aban
105
No.
Course
Number of
participants
Course
duration in
hours
Course cost
30
An
introduction
to routine
tests of oil
and relevant
equipment
An
introduction
to executive
methods of
the refinery
unit
An
introduction
to automation
software
An
introduction
to automation
software
Ergonomics
12
2
Training
hours
8
2
13
Identifying
the oils and
oil
31
32
33
34
35
The number
of times the
course was
held in the
company
1
Total cost
Place
Date
Individual
training
hour
200,000
Rials
Outside the
organization
8th of Aban
24
Training
hours
1
200,000
Rials
Within the
organization
8th of Aban
16
2
Training
hours
1
200,000
Rials
Within the
organization
8th of Aban
26
3
2
Training
hours
1
200,000
Rials
Within the
organization
8th of Aban
6
8
4
1
Within the
organization
Within the
organization
32
2
160,000
Rials
200,000
Rials
8th of Aban
5
20,000
Rials
Training
hours
8th of Aban
10
1
Sepahan Oil Company
36
37
38
39
40
41
42
43
44
45
46
compositions
Properties and
factors
affecting
product
quality during
production
Properties and
quality
regulations of
the final
products
Properties and
quality of raw
materials and
essential
materials for
production
Introduction
to measuring
risks, dangers,
and aspects of
consequences
Forklift
security
Forklift
security
Healthy diet
(health
network
expert)
Healthy diet
(health
network
expert)
Healthy diet
(health
network
expert)
Healthy diet
(company’s
expert)
Healthy diet
7
2
Training
hours
1
200,000
Rials
Within the
organization
8th of Aban
14
6
2
Training
hours
1
200,000
Rials
Within the
organization
8th of Aban
12
6
2
Training
hours
1
200,000
Rials
Within the
organization
8th of Aban
12
9
2
Training
hours
1
200,000
Rials
Within the
organization
8th of Aban
18
14
1
1
9th of Azar
6
5
2
1
Within the
organization
Within the
organization
Within the
organization
14
1
200,000
Rials
200,000
Rials
0 Rials
8th of Aban
6
Training
hours
Training
hours
0 Rials
9th of Azar
10
9
2
0 Rials
1
0 Rials
Within the
organization
9th of Azar
18
13
2
0 Rials
13
2
160,000
Rials
1
320,000
Rials
Within the
organization
9th of Azar
26
9
2
160,000
1
320,000
Within the
9th of Azar
18
1
Within the
organization
Sepahan Oil Company
47
48
49
50
51
52
(company’s
expert)
Healthy diet
(company’s
expert)
Ergonomics
Rials
Rials
organization
16
2
160,000
Rials
1
320,000
Rials
Within the
organization
9th of Azar
32
8
4
2
2
1
Within the
organization
Within the
organization
32
16
160,000
Rials
Rials
9th of Azar
An
introduction
to the
damages and
consequences
of virtual
space
Work place
style (S5)
group B
20,000
Rials
0 Rials
9th of Azar
32
18
8
0 Rials
2
0 Rials
9th of Azar
144
An
introduction
to the special
rules and
regulations of
security for
the drivers
Healthy diet
(company’s
expert)
7
2
Training
hours
1
200,000
Rials
Within the
organization
9th of Azar
14
14
2
160,000
Rials
1
320,000
Rials
Within the
organization
9th of Azar
28
Within the
organization
No.
Course
Number of
participants
Course
duration in
hours
Course cost
53
Healthy diet
(company’s
expert)
Healthy diet
12
2
160,000
Rials
14
2
160,000
54
The
number of
times the
course was
held in the
company
1
Total cost
Place
Date
Individual
training
hour
320,000
Rials
Within the
organization
9th of Azar
24
1
320,000
Within the
9th of Azar
28
Sepahan Oil Company
55
56
57
58
59
60
61
62
63
64
65
66
(company’s
expert)
Healthy diet
for the
restaurant’s
personnel
(company’s
expert)
Review of
security rules
and
regulations
Issuing work
permits
Introductory
security when
entering
Work place
style (S5)
group A
HSE
requirements
Work place
style specially
for managers
An
introduction to
the damages
and
consequences
of verual
space
Healthy diet
(company’s
expert)
Healthy diet
(company’s
expert)
Colleagues of
warehouse
system’s
subsystem
Self-defense
Rials
Rials
organization
20
2
160,000
Rials
1
320,000
Rials
Within the
organization
9th of Azar
40
6
2
Training
hours
1
200,000
Rials
Within the
organization
9th of Azar
12
4
4
2
Within the
organization
Within the
organization
16
2
200,000
Rials
200,000
Rials
9th of Azar
10
Training
hours
Training
hours
9th of Azar
20
34
8
0 Rials
2
0 Rials
Within the
organization
9th of Azar
272
13
4
2
2
Within the
organization
Within the
organization
52
4
260,000
Rials
0 Rials
9th of Azar
31
20,000
Rials
0 Rials
9th of Azar
124
30
2
0 Rials
2
0 Rials
Within the
organization
9th of Azar
60
13
2
160,000
Rials
1
320,000
Rials
Within the
organization
9th of Azar
26
4
2
160,000
Rials
1
320,000
Rials
Within the
organization
10th of Dey
8
6
4
Training
hours
2
200,000
Within the
organization
10th of Dey
24
13
6
106,500
1
1,384,500
Within the
10th of Dey
78
1
Sepahan Oil Company
67
68
69
70
71
72
73
74
75
76
77
and utilized
instruments
An
introduction to
rotary filter
Work place
style (S5)
group C
Work place
style (S5)
group A
Work place
style (S5)
managers’
group
File starter
English
File 2 English
Administrative
and staff’s
risks, dangers,
aspects, and
consequences
Damages and
consequences
of virtual
space
An
introduction to
E & E records
and
documents
management
system
Shot down
conference
Internal audit
of quality
control
management
system
Rials
Rials
organization
8
2
Training
hours
1
200,000
Rials
Within the
organization
10th of Dey
16
19
4
0 Rials
1
0 Rials
Within the
organization
10th of Dey
76
33
32
0 RIals
8
0 Rials
Within the
organization
10th of Dey
1056
31
10
0 Rials
5
0 Rials
Within the
organization
10th of Dey
310
3
30
15
Within the
organization
Within the
organization
90
30
10th of Dey
120
18
2
5,400,000
Rials
5,400,000
Rials
200,000
Rials
10th of Dey
4
180,000
Rials
180,000
Rials
Training
hours
11th of
Bahman
36
15
1
Within the
organization
17
2
0 Rials
1
0 Rials
Within the
organization
11th of
Bahman
34
21
2
0 Rials
1
0 RIals
Within the
organization
11th of
Bahman
42
3
12
2
5
11,550,000
RIals
350,000
Rials
Outside the
organization
Outside the
organization
11th of
Bahman
11th of
Bahman
36
1
11,550,000
Rials
350,000
Rials
1
5
Sepahan Oil Company
5-7- The process of the company’s scores based on EFQM assessment
After the establishment of the organizational excellence model (EFQM), Sepahan Oil Company was assessed by the
assessors of the national efficiency award and obtained the “commitment to excellence” certificate. The selfassessment results obtained from a 90- question questionnaire and workshop are as explained below:
The process of the company’s scores based on EFQM assessment
No.
Description
Obtained score
1
2
3
4
Percentage of score related to leadership
Score percentage related to strategy and policy
Score percentage related to the employees
Score percentage related to the commercial and
resources cooperation
Score percentage related to the process
Score percentage related to the customer’s
results
Score percentage related to the employees’
results
Score percentage related to the population
results
Score percentage related to the key
performance results
15%
14%
18%
17%
Score progress (target) in
2013
40%
50%
30%
40%
14%
15%
50%
30%
10%
30%
14%
40%
21%
40%
5
6
7
8
9

It is worth mentioning that the abovementioned scores are based on the EFQM Excellence Model of 2013
which had to be considered as the Iranian model for the year 2013.
Sepahan Oil Company
Sixth Chapter: Energy and the Environment
6-1- Energy and the Environment strategies
6-2- Energy
6-2-1- Energy- consumption comparative statistics
6-2-2- The measures taken in the field of economical energy consumption
6-2-3- The activities carried out in optimizing energy consumption in 2012
6-3- Environment
6-3-1- The activities carried out to protect the environment
Sepahan Oil Company
6-1- Energy and the Environment strategies
The enforceable rules and regulations regarding contamination and energy consumption were considered on the
one hand and the society’s expectation from the company was considered on the other hand in the codification
and the 3- year- long strategy of energy and environment of Sepahan Oil Company. Varied measures have been
taken by the company based on that and to achieve the objectives mentioned in the strategy. Some goals have
already been accomplished.
1- Concluding a self- reporting contract regarding monitoring the environment and seasonal sampling of
contaminants
2- The establishment of ISO 14001 standard in line with environmental management of the organization
3- Initial measures in order to establish the ISO 16001 standard for the purposes of optimizing energy
consumption
4- Updating the environmental rules and regulations every year and the consistency of the organization’s
activity with these rules
5- Carrying out primary studies and researches in order to establish an industrial wastewater treatment
package
6- Realizing the New Samp project in order to prevent the smell of furfural solution from spreading to
neighboring areas and to prevent the violation of the neighbors’ rights.
7- Observing the standards of green spaces in the organization (at least 10% of the total area of the
organization)
8- Manufacturing products with long useful lives in order to prolong the time of exchanging engine oils
9- Isolating all the areas which may destroy and contaminate water and soil in the organization
10- The project for separating the wastes in order to better realize waste management of the organization
11- Periodic and orderly inspection of machineries such as the forklifts, transportation services, and pumps
Sepahan Oil Company
6-2- Energy
6-2-1- Energy- consumption comparative statistics
Description
Water consumption (cubic meters)
Electricity (kilowatt- hours)
Gas (cubic meters)
Gasoline (liters)
Energy- consumption comparative statistics
2011
Amount
Thousand Rials
662,000
6,620,000
27,156,000
38,697,300
26,280,000
24,834,600
144,000
504,000
2012
Amount
595,800
26,279,000
25,491,000
120,000
Energy- consumption comparative statistics
Gasoline
Gas
Electricity
Water
Thousand Rials
5,958,000
37,448,000
24,089,000
420,000
Sepahan Oil Company
6-2-2- The measures taken in the field of economical energy consumption
No.
1
2
3
4
5
6
Measures taken in the field of economical energy consumption (figures are in million Rials)
Project
Started on
Finished
Project’s
Expenses so Estimation
on
progress
far
of
percentage
remaining
expenses
Monitoring and troubleshooting all
the steam traps of the refinery and
91/5/25
91/10/19
100
200
forming identification cards for all
steam traps
Equipping the lighting system of
the refinery with energy- saving
91/4/5
91/8/1
100
750
light bulbs
Equipping the lighting system of
the open space with a smart system
91/2/2
91/6/28
100
120
(photocell)
Designing and installing a
preheating system for the furfural
90/9/10
91/3/2
100
800
unit furnace
Drip irrigation system
90/2/1
91/9/20
100
300
Isolating the storage tank in order
to prevent heat dissipation (four
91/11/1
92/2/20
100
4000
forty- thousand- barrel tanks)
Sum of
expenses
200
750
120
800
300
4000
Sepahan Oil Company
6-2-3- The activities carried out in optimizing energy consumption in 2012
Unit
Operational units
The activities carried out in optimizing energy consumption in 2012
Saving water (cubic
Saving electricity
Saving gas (cubic
meters)
(megawatt- hours)
meters)
90
Operational units
-
-
25
Operational units
-
-
300
Operational units
17874
-
-
Operational units
-
525
-
Sum
17874
525
415
Executed optimization
project
The fuel consumed by
the extract furnaces was
reduced with regard to
the carried out over haul
Designing and installing
wax preheaters and
decreasing the amount of
the gas consumed by the
furnace
Designing and installing
the system which makes
the recycling system of
the wax extraction unit a
three- stage process
decreased gas
consumption
Water consumption of
water cooling decreased
3% with regard to the
over haul carried and
flashing the converters
Using air sprayers to
mix the air
Sepahan Oil Company
6-3- Environment
No.
Project
1
Quality control
of tanks to make
sure they do not
leak
Teaching MSDS
products to
drivers
Cleaning the
space in case of
leakage
Establishment
of ISO 14001
standard
Purchasing and
changing the
pumps in the
operational units
in case they are
leaking
2
3
4
5
6
7
8
9
Self- reporting
contract in
monitoring
Purchasing
analyzer online
Constructing
industrial
wastewater
treatment
package
Developing the
green areas
Starting date
Measures take to protect the environment
Finishing date
Progress
Expenses so far
percentage
(Rials)
Continuously
Continuously
100%
Continuously
Continuously
As soon as
possible
Estimate of the
remaining
expenses (Rials)
Sum of
expenses (RIals)
50,000,000
0
50,000,000
100%
5,000,000
0
5,000,000
0
100%
10,000,000
0
10,000,000
Continuously
Continuously
100%
50,000,000
0
50,000,000
Continuously
Continuously
100%
2,883,110,000
0
2,883,110,000
Beginning of
every year
At the end of
every year
100%
26,226,450
0
26,226,450
2011
2012
100%
2,000,000,000
0
2,000,000,000
2012
Ongoing
5%
Selecting the
contractor
40000000000
40,000,000,000
Continuously
Continuously
100%
1,263,380,358
0
1,263,380,358
Sepahan Oil Company
Seventh Chapter: Financial Information
7-1- Financial strategies
7-2- Comparative financial statements
7-2-1- Group’s integrated fundamental financial statements
7-2-4- Basic financial statements of the main company
7-3- The foreign exchange spent by the company every year
7-3-1- The total spent foreign exchange (in dollars)
7-3-2- comparing the foreign exchange the company spends each year with the sale and the revenue resulting
from spending each unit of foreign exchange
7-4- Presenting financial ratios
Sepahan Oil Company
7-1- Financial strategies
It has presented the restrictions on its financial and ever- growing need for cash for the purposes of executing
the new investment development plans and the financial and investment provision as one the important strategy
axis of the company. A plan has therefore been formulated to utilize the existing and new resources and also to
provide the financial resources with acceptable expenses and to achieve the intended goals in the plan of
Sepahan Oil Company.
It has considered the financial strategies of the company, examination of the essential financial resources,
determining the investment policy, formulation of investment budgeting principles, renewal plans and utilizing
existing resources, determining profit long- term objectives, and commercial programs for each of the products
in line with that.
7-2- Comparative financial statements
The financial statements of the main company and the integrated financial statements of the company are
attached to the present report and it is worth mentioning that the comparative balance sheet of 2011 to 2012 is
as follows:
Sepahan Oil Company
Assets
Current assets:
Cash balance
Short- term investments
Commercial receivable documents and deeds
Other receivable accounts
Materials and goods stock
Orders and advanced payments
Sum of current assets
Note
20.03.2012
4
5
6
7
8
9
Million Rials
1,121,153
26,854
1,246,796
1,989,557
2,436,641
969,188
7, 789,989
Presented again
19.03.2012
Milion Rials
288,150
13,610
984,324
2,131,891
1,432,814
680,106
5,530,895
Non- current assets
Tangible fixed assets
10
735,622
782,209
Intangible fixed assets
11
40,463
20,188
Long- term investment
12
259,080
864,571
Other assets
13
4,500
4,500
Sum of non- current assets
1,039,665
1,671,468
Sum of assets
7,202,363
8,829,654
The explanatory notes are inseparable components of the financial statements
Debts and the rights of the shareholders
note
20.03.2013
presented again
(19.03.2012)
Current debts:
Payable commercial deeds and accounts
14
2,515,993
2,538,589
Other payable accounts and deeds
15
586,989
1,070,386
Amounts received in advance
16
774,873
379,711
Tax reserve
17
299,125
78,821
Received loans
18
1,870,640
1,098,457
Sum of current debts
Non- current debts:
Long-term received loans
Reserved benefits of end- of- service of employees
Sum of non- current debts
Sum of debts
Rights of the shareholders:
Capital (1050 million one thousand- Rial registed
paid shares
Legal reserves
Accumulated profit
Sum of shareholders’’ right
6,047,620
5,165,964
18
19
22,032
22,032
6,069,652
30,649
17,214
47,863
5,213,827
20
21
1,050,000
105,000
1,605,000
2,760,002
1,050,000
98,168
840,368
1,988,536
Sepahan Oil Company
Sum of debts and rights of shareholders
8,829,654
7,202,363
Sepahan Oil Company
7-3- The foreign exchange spent by the company every year
7-3-1- The total spent foreign exchange (in dollars)
Year
2011
2011
2012
2012
2012
The foreign exchange spent by the company every year
The total spent foreign exchange (in dollars)
Foreign
Total spent foreign exchange (materials, parts,
Accumulative total spent
exchange
instruments)
foreign exchange in each
year in Dollars
Dirham
25879603.46
25,255,811.33 $
Dollars
18225616.33
Dirham
24296563
18,132,549 $
Dollars
8899233
Euros
3038539
7-3-2- comparing the foreign exchange the company spends each year with the sale and the revenue resulting
from spending each unit of foreign exchange
comparing the foreign exchange the company spends each year with the sale and the revenue resulting from
spending each unit of foreign exchange
Description
Year
2012
2011
Spent foreign exchange (million Rials)
472,362
289,493
Sale (million Rials)
8,586,601
4,125,735
Income resulting from every unit of foreign exchange
25,000
12,630
(Rials)
Sepahan Oil Company
7-5- Presenting financial ratios
Financial ratio
Cash rations
Current ratio
Instant ratio
Current asset ratio
Activity ratios
Turnover of sum of assets
Goods stock turnover period (day)
Operation turnover period
Ratio of receivable account turnovers
Payable accounts ratio
Payable accounts period
Debt ratio
Total debt ratio
Current debt to special value ratio
Ratio of non- current assets to special
value
Ownership ratio
Fiscal year 2012
Fiscal year 2011
Average growth
1.29
0.72
0.88
1.07
0.66
0.76
21%
9%
16%
1.418
91
127
10.19
3.417
105
0.96
96.32
146.03
7.64
2.925
123
48%
-6%
-13%
33%
17%
-15%
0.687
2.199
0.377
0.72
2.62
0.841
-5%
-16%
-55%
0.28
17%
0.31
Profitability ratios
32.85%
28.21%
24.50%
31.53%
Gross profit ratio
22.70%
45%
Operational profit ratio
14.00%
102%
Net profit ratio
12.11%
102%
Ratio of sum of the efficiency of the
11.64%
171%
sum of assets (return on investment
ROI)
7.5% of the stotal sale is related to sales, administrative, and general expenses each year. But 1617963 million
Rials has been considered for the reserved doubtful debts of the fiscal year ending on 19.03.2013. The sum total
of the sale, administrative, and general expenses was encountered with a 399.07% growth. It we eliminate the
reserves related to the doubtful accounts from the sale, administrative, and general expenses, the abovementioned financial ratios have been presented with the assumption that this reserve has not been presented.
Sepahan Oil Company
Change process of operational profit and net profit during the past years with the assumption that the doubtful
debt reserves have been eliminated
Change process if the operational profit and the net profit during the past years in accordance with the financial
statements
The company has had a positive profitability process in both states. Although an outstanding part of the
company’s profit has been decreased as a result of considering the reserve from the doubtful debts
The profitability ratios of the company in each of the states have been explained in the following tables. All
evidences indicate that the company’s profitability has increased during the last one year
Sepahan Oil Company
Holding the assumption that the
doubtful debt reserve has been
eliminated
Net profit ratio
Gross profit ratio
Ratio of the financial expenses from
the total sale
Profit quality
Net profit of each share
Operational profit of each share
The efficiency rate of the sum of ROI
assets
The efficiency rate of the
shareholders’ rights ROE
2012
2011
2010
2009
2008
2007
2006
2005
24.50%
32.85%
28.21%
1.39%
12.11%
22.70%
14.44%
2.02%
13.62%
21.86%
16.92%
2.52%
9.84%
21.87%
15.38%
5.78%
11.82%
30.04%
17.26%
5.87%
27.12%
38.44%
32.36%
3.76%
31.45%
41.72%
37.91%
4.07%
42.49%
55.07%
50.95%
7.52%
2,651
3,053
31.53%
0.28
799
952
11.64%
0.71
1,164
1,446
13.96%
1.45
512
800
8.19%
1.62
567
827
8.97%
0.53
1,795
2,142
29.74%
0.18
1,660
2,001
29.48%
0.66
1,553
1,862
35.61%
100.87%
42.17%
67.52%
28.60%
31.72%
68.09%
54.01%
109.85%
2012
10.26%
32.85%
13.97%
1.39%
2011
12.11%
22.70%
14.44%
2.02%
2010
13.62%
21.86%
16.92%
2.52%
2009
9.84%
21.87%
15.38%
5.78%
2008
11.82%
30.04%
17.26%
5.87%
2007
27.12%
38.44%
32.36%
3.76%
2006
31.45%
41.72%
37.91%
4.07%
2005
42.49%
55.07%
50.95%
7.52%
0.34
1,111
1,512
13.21%
0.28
799
952
11.64%
0.71
1,164
1,446
13.96%
1.45
512
800
8.19%
1.62
567
827
8.97%
0.53
1,795
2,142
29.74%
0.18
1,660
2,001
29.48%
0.66
1,553
1,862
35.61%
40.04%
42.17%
67.52%
28.60%
31.72%
68.09%
54.01%
109.85%
Based on financial statements
Net profit ratio
Gross profit ratio
Ratio of the financial expenses from
the total sale
Profit quality
Net profit of each share
Operational profit of each share
The efficiency rate of the sum of ROI
assets
The efficiency rate of the
shareholders’ rights ROE
Sepahan Oil Company
8th Chapter:
Measures Related to Assignments of the General Assembly in Previous Year
8 – 1 – Measures Conducted Related to Assignments of General Assembly
The assignments of the General Assembly of Shareholders on July 12, 2012 and also moves taken on the mentioned
assignments are as follows:
No.
1
No. of
Paragraph
1
2
2
Subject of Assignments
Measures Conducted
Based on Paragraph 4 of report of
respected legal inspector and
auditor, it is assigned that
necessary measures have been
taken for receiving the amounts of
309 billion rials yearly
adjustments and 54.1 million
dirham as claims from Petro Golf
Company. While receiving
uncollected written confirmations,
it is cordially requested to take
effective steps in order to settle
contradictions of mutual accounts.
Necessary follows up were taken in 1391 (ended March
20, 2013) with relation to receiving stagnant yearly
demands and totally the amount of 34 billion rials of
these demands has been received up to the present time.
With regard to Petro Golf Company, totally the amount
of 102 billion rials equal to 13,594,694 dirham
(according to day-price of foreign currency in the date of
settling funds) was received in 1391 (ended March 20,
2013) and presently, the remaining demand stands at
40.6 million dirham (UAE). In the same direction, legal
measures have been taken in judicial bodies of the
United Arab Emirates (UAE) and written verdict has
sentenced signatories of the check to three years in
prison. International Police dubbed “Interpol” has been
requested by lawyer and legal petition against head of
company and also other partners of the company is
underway. Considering the written confirmation,
effective steps have been taken with the aim of removal
of contradictions.
With regard to the briefing plan of investment in Kenya,
financial statements from 2009 to 2012 have been
received, details of which have been submitted to legal
inspector and auditor of the company. Considering the
stoppage of operations and executive activities of
“ELSE Oil” and “UNISEP” companies, necessary steps
were taken in order to dissolving them, based on which,
“UNISEP” Company was dissolved and equivalent
investment amount was refunded as well. With relation
to “ELSE Oil” Company, financial statements audited
Based on Paragraph 5 – 1 of legal
inspector and auditor, it was
stipulated, while presenting the
briefing plan of investment in
SEPYANA Company, to specify
situation of accounts of company
and its financial statements.
Moreover, it is cordially requested
to take effective steps with regard
to continuation of activity of
Sepahan Oil Company
3
4
3–1-
3–2-
“ELSE OIL” and “UNISEP”
companies after provision of their
financial statements in cooperation
and consultation with shareholders
and interest of the Group.
Based on Paragraph 5 – 2 of report
submitted by legal inspector and
auditor, it was stipulated:
- The company should receive
necessary guarantees and bid
bonds from shareholders of the
companies set up in overseas
(Speedy Ship, IST and PEDU
companies) using legal advisors.
After hearing the report of the
Board of Directors of the company
concerning mission of the Oil
Ministry, the General Assembly
obliged and mandated Sepahan Oil
Company to take effective steps
for receiving demands of Speedy
Ship Company, Nikoo Company,
Golden Crown Company and
ATTK Company with regard to
importing oil products in specific
situation of the country. Given the
above issue, the Assembly
mandated the Sepahan Oil
Company to follow up necessary
measures on receiving eight
vessels, purchasing and selling
relevant byproducts seriously.
Sepahan Oil Company was
mandated by the General
Assembly to submit pertinent
report to the attention of
shareholders once every two week.
Meanwhile, Sepahan Oil Company
was committed to submit report
the main reasons of creating
deposit- free claims from Golden
Crown and ATTK companies.
in 2012 have been received which indicates investment
of Sepahan Oil Company amounting to 490,000 dollars.
It should be noted that balance of bank account confirms
this amount as well.
Necessary guarantees and bid bonds have been received
from shareholders of the mentioned companies inside
the country. If such move is conducted outside the
country, it contradicts with the objective of
establishment of companies. (not disclosing their
relationship with Sepahan Oil Company in relevant
countries)
Necessary follows up have thus far been taken with
regard to receiving claims from the Oil Ministry and
Nikoo Company. For this purpose, a letter was sent to
the respected oil ministry in July 2015. In response to
the sent letter, Mr. Mohammadzadeh senior advisor to
the oil minister addressed Eng. Nikzad, director general
of the ministerial bureau, that all statements raised by
Sepahan Oil Company were correct and valid. Given the
above issue, Eng. Nikzad addressed Eng. Vahid to take
effective steps in order to set up a coordinating session
with the participation of Eng. QalehBani and Eng. Vahid
and also Eng. Mohammadzadeh and respected oil
minister for settling the case. Despite measures taken in
this regard, this session has not thus far been organized.
Meanwhile, in another letter sent to the respected
managing director of National Iranian Oil Company
(NIOC) on Nov. 11, 2012, claims of Sepahan Oil
Company were reflected separately wit details and
attached calculations. The company urged the senior
official of the National Iranian Company to issue order
with regard to pay demands of the company.
Re letter addressed to the former Oil Minister and also
Majlis Energy commission member Dr. Mir-Kazemi, all
the aforementioned cases were reflected. Sepahan Oil
Company requested senior official of the ministry to
take effective steps in this regard and issue order for
Sepahan Oil Company
5
3–3–
3–4-
6
3–5-
It was stipulated that Sepahan Oil
Company should take necessary
measures to carry out costs spent
for activity o companies in
overseas such as IST and PEDU in
the form of percentage of obtained
income.
With prioritizing its main
activities, it was obliged that the
company should take effective
step with regard to its justified
investment outside the country in
order to increase capital and
wealth of shareholders. Also,
Sepahan Oil Company should take
effective step to submit justified
investment plan in PEDU and IST
companies to shareholders.
While submitting investment
briefing plan in ISOC company,
the General Assembly emphasized
to take necessary step for the
evaluation of four vessels as
provided to this company. In
general, the General Assembly
stipulated that four vessels should
be evaluated properly in order to
provide capability of comparing
with final cost of purchase in
initial collection date and also
receiving demands of the company. Two joint sessions
have thus far been held with relation to the demands of
Sepahan Oil Company from Golden Crown Company
and Attack Company. Transport cost of their documents
amounting to 31 million dirham (UAE) has been
refunded. If these documents are presented with enough
supporting documents, the case will belong to the
demands of Sepahan Oil Company from National
Iranian Oil Company (NIOC). In the abovementioned
letter, NIOC has been requested to pay the claims related
to Sepahan Oil Company. Complete report of this issue
has been submitted by the Board of Directors to the
Ordinary General Assembly meeting held in
extraordinary form.
Necessary measures have been taken for transferring IST
Company to Rahbaran-e Javan Arman Holding
Company.
PEDU Company is tantamount to the Central Official of
Sepahan Oil Company in Malaysia. In other words,
PEDU Company acts similar to Sepahan Oil Company
in Malaysia and this company was dissolved in 1391
(ended March 20, 2013). In addition to receiving
demands and funds obtained from selling oil, balance of
accounts of this company was transferred to the profit
and loss account of the company, so that company’s
performance report has been disclosed and explained in
the attached notes of financial statements.
These vessels were evaluated in March 2013 and reports
related to the legal inspector, auditor and main
shareholder of the company have been presented in the
same date.
Sepahan Oil Company
7
4
8
5
9
6
10
7
balance sheet date for the decision
of shareholder.
auditor, it was stipulated that
necessary follows up were
conducted with regard to the
protest lodged against tax
assessment from 2006 to 2009.
auditor, it was stipulated that the
Board of Directors has followed
up situation of probable debts as a
result of complaints of others
against the company based on
Briefing Note 32 – 2. It should be
noted that any actual verdict on the
said issue has not thus far been
issued. As long as the issue has not
been settled, the Board of
Directors is duty bound to submit
relevant report to the attention of
shareholder once every three
months.
auditor, the Board of Directors
was obliged, while revising
balance of materials and goods and
capital- oriented goods, to take
necessary and optimal planning in
order to use or sell the mentioned
items. In general, the Board of
Directors was mandated to submit
financial statements, subject of
Briefing Note 7 and 10.
In this respect, a protest bill has been submitted to the
Higher Council of Tax and the mentioned Council did
not accept the request of company. Consequently,
protest of the company has read in the council of Article
251 of Direct Taxation Act. It should be noted that
protest of the company in the mentioned council was
turned down.
It should be noted that measures have been reported in
financial statements of the fiscal year according to Note
30 -2.
Concerning balance of materials and goods, value of
balance of these stocks which has been comprised of raw
materials (lube cut amount to 38,000 tons) and
manufactured product and during production of base oil,
please be informed that balance of lube cut as feedstock
is sufficed for 20 days and such storage seems
necessary. It should be noted that manufactured products
are managed and controlled due to the market situation
and supply and demand rate.
With regard to capital- oriented items, Operation,
Technical and Engineering Unit of the company studied
the case meticulously. Since these materials have been
purchased from manufacturing companies with fair and
reasonable price in previous years, preserving them was
emphasized in a minute. If needed, provision of them at
the current situation will be a very difficult task. It
should be noted that mentioned minute has been
submitted to legal inspector and auditor of the company.
According to the request of investment company, it
Sepahan Oil Company
auditor, the Board of Directors,
while receiving guarantees and bid
bonds on managing two vessels
belonging to Speedy Ship
Company and also four vessels
belonging to ISOC Company, was
obliged to supervise and monitor
affairs using expert advisors and
also observe provisions of mutual
contract concluded between Royal
Oyster Company. In general, the
Board of Directors was obliged to
provide and present budget of
performance of each vessel, open
separate account for performance
of each vessel and also audit
performance of each vessel in
order to prevent imposition of
additional costs.
should be noted that management and guidance of
vessels is on the verge of being delegated to the
company desired by Rahbaran Holding Company.
The Bill ratified and approved by the Board of Directors
on Jan. 30, 2012 has not been observed with regard to
the substitution of a newly- established company inside
the company and/or one of existing companies with
Royal Oyster Company for managing and guiding
activities of vessels.
Meanwhile, Royal Oyster Company has not observed
criteria envisioned in Paragraph 7 – 1 and 7 – 2 of the
mutual contract with regard to the income obtained from
performance of vessels despite repeated follows up.
Despite necessary follows up made in this regard, Royal
Oyster Company has not observed criteria envisioned in
Paragraph 7 – 1 and 7 – 2 of the mutual contract
concluded in this respect.
Not only Royal Oyster Company has not observed the
criteria as mentioned in Paragraph 7 – 1 and 7 – 2, but
also it has spent the obtained income for administration
of vessels directly.
11
12
8
9
necessity of partnership in wave
breaker of FARASAKOO
Company should be specified
transparently in accounts in line
with subject of activity of articles
of association.
In other words, the necessity of
participating in Wave Breaker
project of FARASAKOO
Company was requested to be
specified in accounts in line with
subject of activity of articles of
association.
The contract has been concluded with the mentioned
subject, so that relevant accounts have been specified
transparently. In general, whole operations have been
transferred to FARASAKOO Assaluyeh Company.
Considering the capability of fulfilling and observing
interest of the company, the measures conducted in this
Sepahan Oil Company
10
13
14
11
assignments of the Ordinary
General Assembly, held on June
14, 2011, which has not been
finalized, should be followed up
based on interest of the company
and its result should be announced
to the shareholder. It should be
noted that transactions envisioned
in Briefing Note 35 were
confirmed as transactions subject
to Article 129 of amendment of
Trade Law without interference of
representative of beneficiary
shareholder.
Possibly, effective steps should be
taken to pay fund of insurance in
cooperation and consultation with
Insurance Brokerage Company of
Oil Industry Pension Funds. In
other words, any payment in the
field of insurance should be
approved and confirmed by
Insurance Brokerage Company
affiliated to Oil Industry Pension
Fund.
It was agreed that the Board of
Directors should submit
performance report of the
company to shareholders once
every three months.
regard were executed according to the Briefing Note 33
of financial statements in 1390 (ended March 20, 2013).
it should be noted that some of these measures are
following up.
Necessary steps should be taken in this regard, observing
interest of the company.
It is underway.
Sepahan Oil Company
9th Chapter:
Activities of Sepahan Oil Company in the field of Indigenization
Activities of Sepahan Oil Company in Line with Indigenization / Localization
designing, monitoring and supervising construction operation, installing and commissioning auxiliary Recovery
system for Waxing Unit (M. P. Tower, heat exchangers, converters, and relevant pumps)
Designing, manufacturing, installing and commissioning two 1,000- square feet filters (Vacuum Rotary Filter)
which have been conducted in cooperation with industrialists and engineers of the workshops based in city of the
province. Increasing feedstock and reducing oil in wax are salient achievements of the mentioned project.
Designing and manufacturing lube cut discharge system for discharging lube cut as purchased from other refineries.
Designing, pipe laying and installing five pumps in order to increase applicability of 10- category tanks in
Processing Unit
With due observance to the environmental necessities, following up and preparing proposal of project for submitting
to consultants in order to settlement of wastewater of Sepahan Oil Refinery and separating it from Isfahan Refinery
Implementing project for optimizing and strengthening Cooling Unit (C) for reducing temperature of cooling water
in refinery system
Increasing multiple applicability of four 14- category tanks of the refinery with the aim of storing more wax and
extract in emergency periods
Designing and implementing projects of ARYA Solar Company in order to empowering the unit to a final oil
manufacturing company and required packaging
Fulfilling basic repair and maintenance services as well as implementation of projects simultaneously in May and
June 2012
Sepahan Oil Company
10th Chapter:
Activities of Company in the Field of Quality Management Standard
-
Activities in the Field of Quality Management Standard
Receiving and extending ISO 9001 standard since 2003
Obtaining and extending ISO 14001 standard since 2003
Receiving and extending ISO 18001 (OHSAS, Occupational Health and Safety Assurance System)
standard since 2003
Receiving and extending ISO / TS 16949 standard since 2010
Obtaining and extending ISO / TS 29001 standard since 2009
Developing the mentioned standards to the Headquarters Offices in Tehran in 2013
Developing ISO 9001 standard to the affiliated companies in 2013
Obtaining and extending ISO 17025 standard as of 2004 and making plan for renewing it in 2013
Obtaining and extending energy management system’s certificate based on ISO 16001 standard in 2013
Obtaining and extending certificate of European Foundation for Quality Management (EFQM) in 2011 and
making plan to receive appreciation letter in 2013
Establishing Cleaning System (S5) as of 2012 and development and expansion of the system in 2013
Streamlining strategies compiled with Balanced Scorecard (BSC) model in two FS & BS levels in 2013
Sepahan Oil Company
11th Chapter:
Other Subjects and Miscellaneous
11- Management measures affecting future performance and activity of company
11 – 2 – Domestic and Foreign Claims and Complaints Lodged against Company
11 – 3 – Services received from Certified Public Accounts (CPA) in 2012
11 – 4 – Public Relations
Sepahan Oil Company
11 – 1 – Management Measures Affecting Future Performance of Company
Hereunder are regarded as the most important measures conducted in 2012 which will have considerable effects on
future yearly performance of the company:
Field
Financial
Production
1.
2.
3.
1.
2.
Human Resources
1.
Sales and Marketing
2.
1.
Research and Development
2.
3.
1.
Others
1.
2.
3.
4.
5.
Highlight of Activity
Taking advantage of resources of financial institutes and banks
Creating financial transparency
Setting up internal auditing
Increasing production (production growth)
Regulating types of feedstock for taking maximum advantage in
proportion to the existing refinery unit
Creating motivational systems for effective presence in implementation
of duties
Upgrading and improving pyramid of manpower
Removing some parts of fake intermediates and approaching final
wholesalers
Setting up monopolized service centers
Optimal management of distribution network
Setting up research and development (R&D) unit for creating integrity
in this field
Commissioning new filters
Upgrading and improving transport fleet
Setting up Plan and Budget Unit
Commissioning company’s unit in Kenya
Optimizing situation of affiliated companies (dissolving or establishing)
Sepahan Oil Company
11 – 2 – Domestic and Foreign Complaints Lodged against Company
No.
Name
Subject
File
Underway in
Karaj Legal
Court, Branch
No. 5 (PourAmin) and
Tehran Legal
Court Branch
No. 29
(pertinent
companies)
1
Complains and claims
lodged by Messrs PourAmin and ILIA Sanat
Sepehr Company and
Parham Sanat Alborz
Company (It should be
mentioned that the two
mentioned companies
belong to Mr. PourAmin.) against the
company
A) Necessity to pay fund as a
result of discounts, B) Necessity
to pay compensation as a result
of annulment of drafts, C)
Cancelling or annulling actual
title deeds No. 15874 located in
Karaj, D) Temporary order for
prohibition of transfer of title
deeds of the property ad
demanded by seller
2
Complaints and claims
lodged by Namasazeh
Company against
Sepahan Oil Company
(legal petition)
Demanding 1,924,644,374 rials
as bid bond guarantee and
incurred damages
Legal Court,
Branch No. 14
3
Claims and complaints
lodged by Sepahan Oil
Company against Petro
Golf Company based in
UAE
Demanding approx. 50 million
dirham
File is
underway in
Judicial bodies
in the United
Arab Emirates
(UAE)
Latest Situation
Concerning the mentioned
companies, the verdict for
convicting the company
on the delivery of the
goods, subject of drafts,
has been issued and
lawyer of the case has
requested “appeal” in due
date. Concerning the
claims lodged by Mr.
Pour-Amin against the
company, major part of
his demand in name of
Sepahan Oil Company
and delivery of goods,
subject of drafts, has been
cancelled and abnegated.
The verdict of court of
first instance has been
issued against the
company and lawyer of
the petition has requested
it to be reconsidered.
The court of first instance
has condemned the
company to pay
8,511,248,056 rials.
Therefore, the issued
verdict has been requested
to be reconsidered.
Written Judgment
Signatories of the check
have been sentenced to
three years in prison and
file is requested by the
lawyer to be reported to
the Interpol for following
up the case meticulously.
Sepahan Oil Company
4
Claim of the company
lodged against Dezendis
and mutual claim of
Dezendis against the
company
Demanding 83,785,406,250 rials
as outstanding and deferred
claims and also 20,005,922,358
rials as on- account funds as well
as 3,358,237,800 rials for
releasing Agatha Ship + mutual
claim of Dezendis lodged against
the company valued at
23,501,835 rials
Arbitration
Center of Iran
Chamber of
Commerce
5
Claims and complaints
of Sepahan Oil
Company lodged against
Karachi Customs Office,
Pakistan
Returning or giving back 2,063
tons of base oil
Karachi Court,
Pakistan
In addition, lawsuit
lodged against acting and
also other partners of
Petrol Golf Company of
UA is under investigation.
The file was reported to
the financial and marine
expert and their
viewpoints were received.
Since their viewpoints
were found “baseless” and
“unfounded” and failed to
meet interest of the
company, lawyer of the
file set up a session in
Financial Department of
the company and studied
the case meticulously. In
general, lawyer of the case
provided a protest bill and
submitted it to the
Arbitration chamber with
adding viewpoints of the
private arbitrator (Ms.
Tabatabaei). The final
verdict will be issued by
the Arbitration Chamber.
Presently, there are files
on this case: 1- Sepahan
Oil Company, 2- Karachi
customs Office, 3- AlRahim Company and 4Alf International
Company. The only
verdict issued by the court
up to the present time is to
prevent the confiscated
properties from bidding at
the Customs Office. In
other words, the court has
prevented from bidding
the properties confiscated
at the Customs Office. It
should be noted that Al-
Sepahan Oil Company
6
Claim of Monjasa
Company lodged against
Sepahan Oil Company
Confiscation of Agatha Vessel
and releasing the amount of
1,540,000 rupee
7
Claim and complaint
lodged by Paraffin
Producers’ Guild
Association (Heidar
Zolfaqari)against
Sepahan Oil Company
Demanding the amount of 20
billion rials as a result of
cancelling and revoking drafts
and lack of delivery of goods
Branch 39 of
Court of First
Instance and
Tehran Court
of Appeal
Rahim Company has
proposed purchasing the
consignment and also
ceding all rights of the
company. Presently,
investigation is underway
concerning determination
of local lawyer to study
situation of the case.
With the proxy of Mitra &
Bose Company for
liberating and releasing
Agatha Vesse, which had
been confiscated by
Monjasa Company due to
selling fuel to Dezendis
Company on Lumbardia
Vessel, the amount of
1,540,000 rupee was
deposited. Consequently,
the power of attorney was
granted and delegated to
Neolegal Company and it
is expected that the
company will take back
its claim lodged against
Agatha Company and will
lodge its complaint
against Lumpardia
Company in return.
Meanwhile, defensive bill
of lawyer was recorded
and final verdict will be
issued by the court.
The court of first instance
issued verdict in favor of
the Sepahan Oil Company
and claim lodged by
plaintiff i.e. Paraffin
Producers’ Guild Union
was turned down and
plaintiff has requested
reconsideration of the case
in the Court of Appeal. It
Sepahan Oil Company
8
Claim and complaint
lodged by Paraffin
Producers’ Guild
Association (Heidar
Zolfaqari) against
Sepahan Oil Company
on overcharging and
profiteering
Payment of 16,528,078,423
tomans cash penalty in favor of
government and also the amount
of 8,264,039,211 tomans in favor
of the Association
Branch 29 of
Discretionary
Punishment
Organization
(Court of First
Instance) and
Branch 3 of
Court of
Appeal and
also Branch 2
of Supreme
Court
9
Claim and complain of
Sepahan Oil Company
lodged against Heidar
Zolfaqari
Demanding funds of a Check No.
936149, amounting to
22,400,000,000 rials and also
Check No. 936126 amounting to
22,400,000,000 rials
Branch No. 39
of Sadr Judicial
Complex
should be noted that the
lawsuit is under
investigation at the Court
of Appeal.
The verdict of court of
first instance was issued
which convicted the
company. The issued
verdict was protested by
the company in due date.
Therefore, letter of protest
of the company was
rejected. The verdict was
reconsidered in the court
of appeal and finally, the
company i.e. Sepahan Oil
Company was acquitted.
Then, Paraffin Producers’
Guild Association
protested on the issued
verdict again. Therefore,
the case was reconsidered
by the 2nd Supreme Audit
Court and for further
investigation; the case was
reported to Branch 29 of
the Court of first Instance.
At first, the court
determined 20 billion
tomans bond. Therefore,
the case is under
investigating by
Mollasadra Legal
Institute.
Concerning Check No.
936126, the court
convicted issuer of the
check i.e. Heidar
Zolfaqari to pay the
amount of check in favor
of Sepahan Oil Company.
The said verdict has been
approved and confirmed
at Branch 15 of the
Sepahan Oil Company
provincial Court of
Appeal. Writ of execution
(enforcement) was issued
and notified immediately.
Losing party introduced
other shareholders of
Khavar Chimie Company
as “property”. Concerning
Check No. 936149,
issuance of writ of
execution (enforcement)
was requested and
securing of evidence has
been made from the
mentioned properties.
Sepahan Oil Company
11 – 3 – Services received from Certified Public Accounts (CPA) in 2012
Name of Company
Iran Mashhoud Management
Services and Auditing
Institute
Saman Pendar Auditing
Institute
Local auditor of National
Iranian Oil Company
(NIOC)
Services Presented
-Auditing financial statements in the first six months of
1391 (ended March 20, 2013)
-Auditing tax affairs in 1390 (ended March 20, 2012)
-Implicit auditing in 1391 (ended March 20, 2013)
Special auditing procedure on behalf of OPIC
Case auditing with relation to the discussion of oil
byproducts and issue of vessels
Date
In 1391 (ended March
20, 2013)
From Nov. to Jan.
2013
As case study
Sepahan Oil Company
11 – 4 – Public Relations
Advertising campaign of Sepahan Oil Company has been inspired by general outline and program of the company,
objectives of Sales and Marketing Deputy Office in particular. To compile campaign, the company has taken the
following parameters into considerations such as budget of advertisements, market situation, and situation of rivals
and objectives of advertisements. It should be noted that implementation of this campaign has led the company to
materialize most of tis objectives successfully considering the budget appropriated in this respect. The program
executed in 1391 (ended March 20, 2013) in line with objectives of the campaign based on its predefined objectives
and strategies is comprised of four main groups as follows:
Main Groups
Environmental, printing and
sports
Subgroups
Environmental
Printing
Sports
Regional offices
Capillary and Widespread
Distribution Network
Sales agents
Lubricants’ supplying
centers
end users
Sponsorship
Exhibitions, Media and
Foreign Publicities and
Advertisements
Backing centers
financially and
spiritually
Exhibitions, media
and foreign
publicities and
advertisements
Media and Desired Methods
Billboard, pedestrian bridge (footbridge), lamp poster, fuel
station owners, etc.
newspapers, dailies, periodicals, special reports, monthlies,
quarterlies, catalogues, brochures, stands and compact disc
(CD)
Special competitions such as Iran Pro League, IPL
(football) and basketball
- Samples (overalls, tool, sunshades, towel, wallmounted clock, other gifts)
- Training seminars and conferences (raining,
visiting, issuance of certificate, etc.)
- Tableau for lubricants’ supply centers and gas
stations
- Encouraging and motivational rewards (discounts,
trips, etc.)
- Samples special of end users
-
Supporting sport teams such as Ping-Pong,
mountaineering, motorcycling, motoring, touring,
etc.
- Supporting seminars, conferences, exhibitions,
etc. financially
- Supporting public services and utilities, charity
centers financially
Exhibitions, mass media, multilingual catalogues,
environmental advertisements and publicities, radio and
TV if needed, CD, stand, active presence in virtual and
online environment, internet, etc.
Sepahan Oil Company
Degree of Effectiveness of Advertisements and Increasing Sales volume:
Considering the field studies made in this regard form sales agencies of the company across the country about
effectiveness of advertisement on sales volume and also observation of advertisements conducted in this respect, it
should be noted that advertisement and publicity played significant role in boosting sales volume of the company. In
general, advertisements had a positive effect in a way that it increased sales volume of the company considerably.
It is obvious that results of these studies will help company to compile its program in the next year efficiently.
Diagram Compiled by Sales Agencies on Degree of Observation of Advertisements of Sepahan Oil Company in
1391 (ended March 20, 2013)
31%: No
69%: Yes
Sepahan Oil Company
12th Chapter: Comparison of Budget and Performance
12 – 1 – Presenting Comparative Table of Profit and Loss with Approved Budget
12 – 2 – Highlights of Future Programs of the Board of Directors in Line with Materialization of Approved Budget
Sepahan Oil Company
15 – 1 – Presenting Comparative Table of Profit and Loss with Approved Budget (Million Rials)
Comparing Performance between Profit and Loss and Budget
2013 Budget
1391 (March 20, 2013)
2012 Budget
Actual
Deviation
Description
million rials
million rials
million rials
million rials
increase
(decrease)
percentage
Net sale
16,485,500
7,521,362
11,364,064
3,842,702
51%
Final cost of sold goods
(11,714,215)
(6,167,520)
(7,631,339)
(1,463,819)
24%
Gross profit
4,771,245
1,353,842
3,732,725
2,378,883
176%
Administrative – financial
(786,952)
(468,380)
(2,466,369)
(1,997,989)
427%
and distribution and sales
costs
Net of other incomes and
98,000
2,216
320,944
318,728
14383%
operational costs
Operational profit
4,082,320
887,679
1,587,300
699,621
79%
Financial costs
170,000
170,000
158,309
-11,691
-7%
Net of other incomes and
20,000
20,000
36,240
16,240
81%
non- operational costs
Profit before tax deduction 3,932,320
737,679
1,465,231
727,552
99%
Income tax
(884,770)
(92,210)
(299,125)
(206,915)
224%
Net profit
3,047,550
645,469
1,166,106
520,637
81%
Cumulative dividend in the 1,516,055
347,626
982,942
635,316
183%
beginning of year
Yearly adjustments (profit) (387,000)
(280,000)
(142,574)
-137,426
-49%
Profit appropriation
4,176,605
713,096
2,006,474
1,293,378
181%
Sepahan Oil Company
15 – 2 – Highlights of Future Programs of the Board of Directors in Line with Materialization of Approved Budget
In line with the budget approved in 1392 (ended March 20, 2014), implementation of the following programs was
put atop agenda by the Board of Directors of the company:







Following up necessary measures to provide feedstock required for refinery units,
Formulating and notifying instructions for accelerating fulfillment of current affairs and increasing
efficiency,
Providing financial resources for promoting maneuvering power of the company in line with strong
presence in domestic and foreign markets,
Development of export products of the company
Following up necessary measures to attract foreign participations,
Trading various types of oil,
Setting up module in operational units of the company for clarification of performance and activity
Sepahan Oil Company
Last Remarks
While expressing special thanks to the unflinching cooperation and collaboration of respected shareholders of the
company and their constructive viewpoints in materialization of most objectives of the company, the Board of
Directors of Sepahan Oil Company requests stockholders of the company to approve financial statements of the
company. In addition, the Board of Directors request them [shareholders] to take effective steps in order to select
legal inspectors of the company for 1392 (ended March 20, 2014) and also determine their fee.
The esteemed shareholders of the company are requested to take necessary measures in order to determine a widely
circulated paper for publishing upcoming advertisements of the company.
It is hoped that the Board of Directors of Sepahan Oil Company will attain its predefined objectives relying upon the
assistance of the Almighty God, cooperation and collaboration of respected shareholders of the company and
unflinching effort of industrious staff and personnel. Generally speaking, it is hoped that the company will take giant
strides towards growth, progress, development and prosperity in every field.
The company owns its success to its wise management, industrious staff and personnel.
Once again, the Board of Directors of the Company intends to express its special thanks to all individuals who took
effective steps in line with materialization of most objectives of the company.
With Regards,
Board of Directors of Sepahan Oil Company
True translation certified.

2013 Annual Report

Transcription

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