Financial Statements & Notes BANK PASARGAD ANNUAL REPORT 2015/16

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2 Financial Statements & Notes BANK PASARGAD ANNUAL REPORT 2015/16

3 In the Name of God

4 01 Financial Statements & Notes

5 02 BANK PASARGAD Annual Report 2015/16

6 03 Financial Statements & Notes

7 04 BANK PASARGAD (PLC) CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT MARCH 19, 2016 (Restated) 20-Mar-2015 (Restated) 20-Mar-2015 Note 19-Mar-2016 Note 19-Mar-2016 Assets: Liabilities: Cash 9 64,102,881 56,335,379 Due to banks and other financial institutions 22 28,576,822 25,522,608 Due from banks and other financial institutions 10 16,407,531 29,212,866 Non-interest bearing deposits 23 19,908,277 25,541,239 Credit facilities and dues from non-governmental entities ,208, ,919,260 Dividends payable 24 1,640, ,592 Investment in shares and other securities 12 15,263,935 13,083,028 Income tax liabilities 25 2,553,141 5,991,150 Accounts and notes receivable 13 23,054,716 15,520,409 Accounts and notes payable 26 29,569,318 18,205,164 Other accounts receivable 14 23,347,826 12,739,758 Provisions and other liabilities 27 31,768,434 20,796,427 Prepayments and orders 15 4,496,849 2,321,680 Advances received 28 1,358,862 1,227,169 Inventories 16 9,691,276 5,422,363 Financial facilities received 29 19,416,925 14,380,676 Tangible fixed assets ,964,633 80,321,277 Provision for employees retirement benefits , ,120 Intangible assets 18 6,396,804 4,891, ,698, ,249,145 Statutory deposit 19 49,288,170 40,217,749 Equity of investment account holders: Other assets 20 10,349,157 14,137,845 Term deposits ,920, ,932,843 Consolidated goodwill 21 11,394,503 3,967,860 Return on term deposits payable 32 8,455,981 7,029, ,376, ,962,355 Total liabilities and equity of investment account holders 533,074, ,211,500 Shareholders' equity: Share capital 33 42,000,000 30,000,000 Capital increase (in progress) 33 8,400,000 12,000,000 Statutory reserve 34 11,609,849 9,864,758 Other reserves 35 3,869,950 3,288,253 Retained earnings 11,949,647 12,262,872 77,829,446 67,415,883 Non-controlling interests 36 22,062,603 15,463,295 Total assets 632,966, ,090,678 Total liabilities, equity of investment account holders and shareholders' equity 632,966, ,090,678 Customers' commitments for L/Cs ,068,856 70,830,858 Bank's commitments for L/Cs ,068,856 70,830,858 Customers' commitments for L/Gs ,496,206 38,696,905 Bank's commitments for L/Gs ,496,206 38,696,905 Other customers' commitments , ,532 Other Bank's commitments , ,532 Managed funds Managed funds BANK PASARGAD Annual Report 2015/16

8 BANK PASARGAD (PLC) CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE FINANCIAL YEAR ENDED MARCH 19, Financial Statements & Notes Note 2015/16 (Restated) 2014/15 Income from credit facilities and deposits 37 62,076,480 57,382,361 Return on term deposits 42 (64,692,545) (50,020,288) Net income from credit facilities and deposits (2,616,065) 7,362,073 Fee and commission income 43 6,009,669 5,122,300 Net fee and commission income 6,009,669 5,122,300 Net investment income 38 20,625,716 8,903,448 Sales and services revenue 44 45,616,369 38,313,031 Net foreign exchange transactions income , ,778 66,418,998 47,928,257 Total operating income 69,812,602 60,412,630 Other income 46 3,349,342 1,440,859 Cost of goods and services sold 47 (35,236,150) (28,148,755) General and administrative expenses 48 (9,484,682) (6,450,015) Doubtful debts expenses 49 (5,521,076) (2,619,733) Finance cost 50 (3,622,307) (2,511,401) Depreciation expenses 51 (661,715) (392,704) Net other income & expenses 52 (6,017,918) (5,494,012) Profit before tax 12,618,096 16,236,869 Income tax expense 25 (949,322) (1,679,171) Net profit 11,668,774 14,557,698 Non-controlling interests 2,262,666 3,524,300 Basic earnings per share (IRR)

9 06 BANK PASARGAD (PLC) CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE Attributable to owners of the parent company Non-controlling interests Total equity Total before noncontrolling interests Retained earnings Capital increase (in progress) Statutory reserve Other reserves Note Capital Balance at 21-Mar ,000,000 12,000,000 9,864,759 3,288,253 17,510,346 72,663,358 15,380,883 88,044,241 Net profit 11,668,774 11,668, ,668,774 Consolidated adjustments (1,217,459) (1,217,459) 82,412 (1,135,047) Prior years adjustments 53 (4,030,015) (4,030,015) 0 (4,030,015) Total comprehensive income 30,000,000 12,000,000 9,864,759 3,288,253 23,931,646 79,084,658 15,463,295 94,547,953 Capital 5,350,943 5,350,943 Capital increase (registered) 33 12,000,000 (12,000,000) 0 Capital increase (non-registered) 33 8,400,000 8,400,000 8,400,000 Non-controlling interests' share of retained earnings (1,255,212) (1,255,212) 1,248,365 (6,847) Distribution & allocation: Statutory reserve 34 1,745,090 (1,745,090) 0 Other reserves ,697 (581,697) 0 Approved dividend (8,400,000) (8,400,000) (8,400,000) 12,000,000 (3,600,000) 1,745, ,697 (11,981,999) (1,255,212) 6,599,308 5,344,096 Balance at 19-Mar ,000,000 8,400,000 11,609,849 3,869,950 11,949,647 77,829,446 22,062,603 99,892,049 BANK PASARGAD Annual Report 2015/16

10 BANK PASARGAD (PLC) CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE FINANCIAL YEAR ENDED MARCH 20, 2015 Attributable to owners of the parent company Non-controlling interests Total equity Total before noncontrolling interests Retained earnings Capital increase (in progress) Statutory reserve Other reserves Note Capital Balance at 21-Mar ,000, ,968,354 2,656,118 14,500,938 55,125,410 12,724,772 67,850,182 Net income ,557,698 14,557, ,557,698 Prior year adjustments (4,529,738) (4,529,738) 0 (4,529,738) Total comprehensive profit 30,000, ,968,354 2,656,118 24,528,898 65,153,370 12,724,772 77,878,142 Capital 1,878,077 1,878,077 Capital increase (registered) Capital increase (non-registered) ,000, ,000,000 12,000,000 Non-controlling interests' share of retained earnings (137,487) (137,487) 860, ,959 Distribution & allocation: Statutory reserve ,896,404 0 (1,896,404) 0 0 Other reserves ,135 (632,135) 0 0 Approved dividend (9,600,000) (9,600,000) (9,600,000) 0 12,000,000 1,896, ,135 (12,266,026) 2,262,513 2,738,523 5,001,036 Balance at 20-Mar ,000,000 12,000,000 9,864,758 3,288,253 12,262,872 67,415,883 15,463,295 82,879, Financial Statements & Notes

11 08 BANK PASARGAD (PLC) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED MARCH 19, 2016 Note 2015/ /15 Cash flow from operating activities: Net cash generated from operating activities ,719,390 13,760,431 Income taxes paid (4,181,691) (2,122,754) Net cash generated from operating activities 47,537,699 11,637,677 Cash flow from investing activities: Purchase of fixed assets (38,394,482) (27,855,127) Proceeds from sale of fixed assets 408,383 1,045,322 Purchase of intangible assets (9,076,172) (2,951,295) Net cash used in investing activities (47,062,271) (29,761,100) Cash flow from financing activities: Proceeds from capital increase (non-controlling interests included) 4,209,795 4,556,108 Facilities received 8,094,679 10,385,418 Dividends paid (2,130,883) (2,115,524) Finance cost (3,058,430) (1,258,631) Net cash generated from financing activities 7,115,161 11,567,371 The effects of changes in foreign exchange rates 176,913 74,795 Net increase(decrease) in cash 7,767,502 (6,481,257) Cash and cash equivalent at the beginning of the year 56,335,379 62,816,636 Cash and cash equivalent at the end of the year 64,102,881 56,335,379 Non-cash transactions 55 12,156,799 13,360,711 BANK PASARGAD Annual Report 2015/16

12 BANK PASARGAD (PLC) STATEMENT OF FINANCIAL POSITION AS AT MARCH 19, 2016 (Restated) 20-Mar-2015 (Restated) 20-Mar-2015 Note 19-Mar-2016 Note 19-Mar-2016 Assets: Liabilities: Cash 9 61,356,867 54,484,038 Due to banks and other financial institutions 22 28,576,822 25,522,608 Due from banks and other financial institutions 10 16,407,531 29,212,866 Non-interest bearing deposits 23 19,924,276 25,535,576 Credit facilities and dues from non-governmental entities ,208, ,119,381 Dividends payable , ,114 Investment in shares and other securities 12 17,604,497 18,615,011 Income tax liabilities 25 1,553,348 5,099,085 Other accounts receivable 14 23,199,465 9,758,137 Provisions and other liabilities 27 5,402,698 2,137,874 Tangible fixed assets 17 9,210,930 8,271,988 Provision for employees retirement benefits , ,310 Intangible assets 18 5,186,589 4,069,100 56,178,878 58,847,567 Statutory deposit 19 49,288,170 40,217,749 Equity of investment account holders: Other assets 20 9,261,959 7,639,804 Term deposits ,662, ,723,341 Return on term deposits payable 32 8,462,695 7,029, ,124, ,753,214 Total liabilities and equity of investment account holders 459,303, ,600,781 Shareholders' equity: Share capital 33 42,000,000 30,000,000 Capital increase (in progress) 33 8,400,000 12,000,000 Statutory reserve 34 11,609,849 9,864,758 Other reserves 35 3,869,950 3,288,253 Retained earnings 9,541,335 8,634,282 75,421,134 63,787,293 Total assets 534,724, ,388,074 Total liabilities, equity of investment account holders and shareholders' equity 534,724, ,388,074 Customers' commitments for L/Cs ,068,856 70,830,858 Bank's commitments for L/Cs ,068,856 70,830,858 Customers' commitments for L/Gs ,496,206 38,696,905 Bank's commitments for L/Gs ,496,206 38,696,905 Other customers' commitments , ,532 Other Bank's commitments , ,532 Managed funds Managed funds Financial Statements & Notes

13 010 BANK PASARGAD (PLC) STATEMENT OF INVESTMENT DEPOSITS PERFORMANCE FOR THE FINANCIAL YEAR ENDED MARCH 19, 2016 Note 2015/ /15 Joint income: Income from credit facilities 37 65,694,317 55,267,615 Income from deposits 37 4,890,533 6,544,689 Net investment income 38 13,071,056 4,522,528 83,655,906 66,334,832 Share of Bank's resources from joint income 39 (11,466,259) (10,597,850) Share of depositors from joint income before deduction of attorney fee 72,189,647 55,736,982 Attorney fee 40 (8,941,131) (6,758,179) Share of depositors from joint income 63,248,516 48,978,803 Bonus on statutory deposit , ,434 Realized return on term deposits 63,690,166 49,330,237 On-account return on term deposits 41 (65,655,916) (51,127,931) Underpaid/(overpaid) return on term deposits (1,965,750) (1,797,694) BANK PASARGAD Annual Report 2015/16

14 BANK PASARGAD (PLC) STATEMENT OF PROFIT OR LOSS FOR FINANCIAL YEAR ENDED MARCH 19, Financial Statements & Notes Note 2015/16 (Restated) 2014/15 Income from credit facilities and deposits 37 73,305,031 64,699,088 Return on term deposits 42 (67,100,604) (52,127,360) Net income from credit facilities and deposits 6,204,427 12,571,728 Fee and commission income 43 3,945,960 3,087,206 Net fee and commission income 3,945,960 3,087,206 Net investment income 38 13,071,056 4,522,528 Net foreign exchange transactions income , ,778 Total operating income 23,398,356 20,893,240 Other income 46 2,510,706 1,016,996 General and administrative expenses 48 (6,495,158) (4,428,135) Doubtful debts expenses 49 (5,919,496) (2,928,697) Finance cost 50 (901,214) (346,351) Depreciation expenses 51 (457,001) (254,571) Profit before tax 12,136,193 13,952,482 Income tax expense 25 (502,262) (1,309,786) Net profit 11,633,931 12,642,696 Earnings per share (IRR-excluding non-registered right issues) Earnings per share (IRR-including non-registered right issues)

15 012 BANK PASARGAD (PLC) STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE FINANCIAL YEAR ENDED MARCH 19, 2016 Note Capital Capital increase (in progress) Statutory reserve Other reserves Retained earnings Total equity Balance at 21-Mar ,000,000 12,000,000 9,864,759 3,288,253 12,374,972 67,527,984 Net profit ,633,930 11,633,930 Prior year adjustments (3,740,780) (3,740,780) Total comprehensive income 30,000,000 12,000,000 9,864,759 3,288,253 20,268,122 75,421,134 Capital increase Capital increase (registered) 33 12,000,000 (12,000,000) Capital increase (non-registered) ,400, ,400,000 Distribution & allocation: Statutory reserve ,745,090 0 (1,745,090) 0 Other reserves ,697 (581,697) 0 Declared dividend (8,400,000) (8,400,000) 12,000,000 (3,600,000) 1,745, ,697 (10,726,787) 0 Balance at 19-Mar ,000,000 8,400,000 11,609,849 3,869,950 9,541,335 75,421,134 BANK PASARGAD Annual Report 2015/16

16 BANK PASARGAD (PLC) STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE FINANCIAL YEAR ENDED MARCH 20, Financial Statements & Notes Note Capital Capital increase (in progress) Statutory reserve Other reserves Retained earnings Total equity Balance at 21-Mar ,000, ,968,354 2,656,118 12,630,906 53,255,378 Net profit ,642,696 12,642,696 Prior year adjustments (4,510,780) (4,510,780) Total comprehensive income 30,000, ,968,354 2,656,118 20,762,822 61,387,294 Capital increase Capital increase (registered) ,000, ,000,000 Capital increase (non-registered) Distribution & allocation: Statutory reserve ,896,404 0 (1,896,404) 0 Other reserves ,135 (632,135) 0 Declared dividend (9,600,000) (9,600,000) 0 12,000,000 1,896, ,135 (12,128,539) 2,400,000 Balance at 20-Mar ,000,000 12,000,000 9,864,758 3,288,253 8,634,283 63,787,294

17 014 BANK PASARGAD (PLC) STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED MARCH 19, 2016 Note 2015/ /15 Cash flow from operating activities: Net cash generated from operating activities ,180,374 (5,964,757) Income taxes paid (4,047,999) (1,995,128) Net cash generated from/(used in) operating activities 9,132,375 (7,959,885) Cash flow from investing activities: Purchase of fixed assets (1,342,873) (1,727,531) Proceeds from sale of fixed assets 72, ,947 Purchase of intangible assets (1,178,106) (1,328,076) Net cash used in investing activities (2,448,616) (2,504,660) Cash flow from financing activities: Proceeds from capital increase 80,468 4,556,108 Dividends paid (68,311) (2,115,524) Net cash generated from financing activities 12,157 2,440,584 The effect of changes in foreign exchange rates 176, ,778 Net increase/(decrease) in cash 6,872,829 (7,312,183) Cash and cash equivalent at the beginning of the year 54,484,038 61,796,221 Cash and cash equivalent at the end of the year 61,356,867 54,484,038 Non-cash transactions 55 10,745,824 9,157,274 BANK PASARGAD Annual Report 2015/16

18 BANK PASARGAD (PLC) 015 Financial Statements & Notes 1 ABOUT BANK 1-1 Background: Bank Pasargad was registered under No with the Tehran Companies Registrar Office on September 4, 2005 and the Central Bank of the Islamic Republic of Iran (CBI) issued The Banking Operation License No on September 13, 2005 in favor of it. Bank Pasargad was listed on the Tehran Stock Exchange (TSE) on February 6, 2011 and was first traded on August 6, Bank Pasargad's head office is located at No. 430, Mirdamad Blvd., Tehran , Iran. 1-2 Activities: Bank Pasargad offers a wide range of banking products and services. Its core business includes commercial, retail, and wholesale banking activities. All banking activities are performed in accordance and in compliance with the regulations set by CBI. 1-3 Branches: 2015/ /15 Tehran branches Other cities branches Free-trade zone branches Human capital: Group Bank 2015/ / / /15 Headquarter Tehran branches ,903 2,027 1,903 Other cities branches ,093 1,123 1,093 Free-trade zone branches Subsidiaries , ,594 10,374 3,815 3,632

19 016 BANK PASARGAD (PLC) 2 BASIS FOR PREPARATION OF FINANCIAL STATEMENTS The Bank's financial statements are prepared based on accounting standards and regulations of Central Bank of Iran. Details of accounting procedures include changes during the year that mentioned in notes 5 and 6. 3 REPORTING OPERATIONAL CURRENCY UNIT The financial statement items are measured with IRR which is Iran's main currency. These items are provided in term of IRRm for better understanding unless in case which are explicitly mentioned in financial statements and disclosure notes. 4 USING JUDGMENT AND ESTIMATION The CBI's instruction are considered thoroughly in order to prepare financial statements and the considerable amounts which need estimation and judgment. As a result, the management do not exert any estimation, judgment or assumption in addition of CBI. 5 MEASUREMENT PRINCIPLES 5-1 Financial statement are prepared based on "historical cost" principle. 5-2 Consolidated financial statements of the bank and its relevant subsidiaries have been prepared after elimination of the intra group transactions and any unrealized profit. 5-3 For subsidiaries acquired during the year, results of operations are reflected in the consolidated financial statements from date of acquisition of effective control and for subsidiaries sold during the year, results of operation up to disposal date would be reflected in the consolidation. 5-4 The fiscal year end for subsidiaries of Pasargad Arian Construction Co. and MIDHECO is December 21 st ; however, their financial statements have been consolidated with those of the bank in the same bases using interim information with required post balance sheet date adjustments. BANK PASARGAD Annual Report 2015/16

20 BANK PASARGAD (PLC) 017 Financial Statements & Notes 6 CHANGE IN ACCOUNTING POLICIES AND PROCEDURES The accounting procedures mentioned in note 7 have been adopted in preparation of financial statements of all reporting periods according to consistency principle. 7 SIGNIFICANT ACCOUNTING POLICIES 7-1 Investments Consolidation (Group) Evaluation method Parent company Long-term investments: Investment in subsidiaries Consolidation Cost (less accumulated impairment) Investment in associates Equity Cost (less accumulated impairment) Other long-term investments Cost (less accumulated impairment) Cost (less accumulated impairment) Short-term investments: Liquid investments Other short-term investments Investment in subsidiaries Investment in associates Other long-term and short-term investments Investment in unconsolidated subsidiaries Lower of cost or net realizable value of investment portfolio Lower of cost or net realizable value of each investment Consolidation Equity Upon approval of dividend by investee's AGM (up to SFP date) Upon approval of dividend by investee's AGM Lower of cost or net realizable value of investment portfolio Lower of cost or net realizable value of each investment Revenue recognition method Upon approval of dividend by investee's AGM (up to authorization of financial statement) Upon approval of dividend by investee's AGM (up to authorization of financial statement) Upon approval of dividend by investee's AGM (up to SFP date) Upon approval of dividend by investee's AGM (up to authorization of financial statement) 7-2 Fixed assets Fixed assets are recorded at cost. Upgrade and overhauling expenditures which enhance the useful life, capacity or quality of such assets are capitalized and depreciated during their remaining useful life. Ordinary repair and maintenance charges which are performed to maintain fixed assets in operating condition, are recorded as expense when incurred.

21 018 BANK PASARGAD (PLC) Fixed assets are depreciated in accordance with the rules stipulated in Article 151 of the Direct Taxation Act, using the following rates and methods: Fixed assets Dep. rate Dep. method Buildings 7% Reducing balance Installations 20% Reducing balance Motor vehicles 25% Reducing balance Computer hardware 3 years Straight line Communication equipment 10 years Straight line ATM 3 years Straight line POS 3 years Straight line Furniture & fixtures 10 years Straight line Construction in leasehold properties 3 years Straight line For fixed assets acquired during the month, depreciation will start from the following month. In case the fixed assets are not used due to working halts or other reasons, depreciation is calculated on 30% of above mentioned rates. 7-3 Intangible assets Intangible assets, except for business goodwill, are recorded at cost. Business goodwill is not impaired, impairment testing is performing at the end of each fiscal year and If necessary, the required provision will be provided. Software are amortized over three years using the straight-line method. 7-4 Recognition of income from credit facilities, fines and commissions In accordance with CBI regulations, income from credit facilities have been recorded on accrual basis and doubtful debts' accrued income have not been recognized. Accordingly, recognition of Bank's income is as follows: Income from credit facilities: Current debt Overdue debt Bad debt Doubtful debt Fines: Current debt Overdue debt Bad debt Doubtful debt Commissions: L/Gs commissions Other services commissions Qarz-al-hasanah facilities commissions Type of income Basis for recognition of income Accrual Accrual Accrual Cash Accrual Accrual Accrual Cash Cash Cash Cash BANK PASARGAD Annual Report 2015/16

22 BANK PASARGAD (PLC) 019 Financial Statements & Notes 7-5 Basis for determination of the depositors' share of joint income: In accordance with the Usury-free Banking Law and related regulations, joint income, bank's allocation of joint resources, depositors' share from joint income are reported in the STATEMENT OF INVESTMENT DEPOSITS PERFORMANCE. 7-6 Classification of credit facilities: Financial facilities are classified based on rules established by the Money and Credit Council of CBI and on the basis of their aging, financial status and industry of customer, under the following categories: Current debt: Maximum 2 months overdue; customer is in good financial position and industry has acceptable prospect Overdue debt: 2 to 6 month over-due; customer is in good financial position and industry has limited growth Bad debt: 6 to 18 months over-due; customer is not in good financial position and industry faces major limitations Doubtful debt: More than 18 months over-due; customer does not have an acceptable financial position 7-7 Provision for doubtful accounts Allowance is provided for doubtful accounts, based on the Money and Credit Council of CBI, as follows: Type Coefficient General provision (except for facilities which special provision is provided for them) at least 1.5% Over due category 10% Bad debt category 20% Special provision Doubtful debt category (based on customers capabilities) 50% to 100% Doubtful debt category over-due for five years or more 100% 7-8 Provision for employees' retirement benefits A provision, equivalent to the latest monthly salary and benefits for each full year of service, is provided in the accounts to cover employees' retirement benefits. 7-9 Commitment for employees' retirement benefits The bank's employees are under the coverage of Social Security Organization insurance. Therefore, no provision is provided in account for commitment for Employees' Retirement Benefits.

23 020 BANK PASARGAD (PLC) 7-10 Foreign exchange translation Local accounts Foreign currency monetary amounts are reported using the "official exchange rates" determined by CBI at SFP date and non-monetary items carried at historical cost should be reported using the exchange rate at the date of transaction. Exchange differences arising when monetary items are settled or when monetary items are translated are reported in statement of profit or loss of the period Accounts from foreign operations Assets and liabilities of foreign branches are translated at the closing rate at the SFP date and Income and expanses are translated at the date of transaction's rate. All resulting exchange differences are recognised in the statement of comprehensive income and classified under shareholders' equity section of statement of financial position. The exchange differences arising on translation of monetary items that form part of the entity's net investment in foreign operations are recognised in the statement of copmrehensive income and will be classified under shareholders' equity section of statement of financial position until disposal of the net investment Treasury stock Bank can reacquire 10 percent of its shares according to Law of Removal of Competitive Production Obstacles and Law of Financial System Improvement. The bank's treasury stock is reported at cost in the acquiring date and any difference arising from purchase and sale of treasury stocks is reported in the equity section Goodwill arising from consolidation The accounting method used for business combinations is "purchase method". Goodwill is recognized as the differences between the aggregate of the value of consideration transferred and the net of acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. (The consideration transferred in acquiring a subsidiary is subject to consolidation method and in acquiring an associate is subject to equity method.) It is amortized over a 20 year period. Goodwill arising from acquisition of associates is reflected in book value of long-term investment in the consolidated statement of financial position of the associates. 8 "OTHER" IN FINANCIAL STATEMENTS NOTES Since some accounts consist of too many items, some items of each note has been reported under title "Other" that include trivial items with ceilings of 10% of the total amount of the note. BANK PASARGAD Annual Report 2015/16

24 BANK PASARGAD (PLC) 021 Financial Statements & Notes 9 CASH Group Bank Note 19-Mar Mar Mar Mar-2015 Cash in hand - IRR 9-1 1,675,455 1,310,681 1,669,441 1,302,227 Cash in hand - foreign currency 9-2 1,380,073 2,632,743 1,375, ,290 Demand deposits with Central Bank (unrestricted) , , , ,460 Deposits with other banks and financial institutions (unrestricted) ,632,657 51,298,061 57,632,657 51,298,061 Petty cash 10,545 25, Other 2,725, , ,102,881 56,335,379 61,356,867 54,484, Cash in hand (IRR and foreign currency) up to IRR 5 bn is fully insured against theft and fire by Pasargad Insurance Co. 9-2 Cash in hand (foreign currency) consists of USD 20,194,892, EUR 21,809,727, GBP 259,030, UAD 1,617,516, CHF 20,074, TRY 2,060, CHY 1, Demand deposits with the central bank (unrestricted) 19-Mar Mar-2015 Demand deposits with Central Bank - foreign currency 678, , Deposits with other banks and financial institutes (unrestricted) 19-Mar Mar-2015 Demand deposits with other local banks and financial institutions - IRR 18,602 29,425 Demand deposits with other local banks and financial institutions - foreign currency 1,828,749 2,406,570 Term deposits with other local banks and financial institutions - IRR 14,785,320 8,349,711 Demand deposits with foreign banks - foreign currency 40,999,986 40,512,355 57,632,657 51,298, Restricted deposits with banks are classified in "due from banks".

25 022 BANK PASARGAD (PLC) 10 DUE FROM BANKS AND OTHER FINANCIAL INSTITUTIONS Note 19-Mar Mar-2015 Due from CBI ,302,693 7,554,527 Due from other banks and financial institutions ,104,838 21,658,339 16,407,531 29,212, Due from banks without any restriction on withdrawal, has been classified as cash Due from CBI Note 19-Mar Mar-2015 Term deposits with cbi - IRR (restricted) 2,700,611 2,600,656 Bonus receivable on statutory deposit 0 351,789 Other ,602,082 4,602,082 7,302,693 7,554, The amount of IRR 1,452 bn was withdrawn from Bank Pasargad's account in accordance with the Foreign Currency Coordinating Group's approval and the CBI director's order. Bank Pasargad has challenged this action. This approval has been cancelled by IRI Parliament, but the above-mentioned amount has not been yet cleared. In Addition according to CBI Meeting Commitments Guidelines (numbers 60/1038 dated March 3, 2013 and 60/1015 dated December 7, 2013) Bank Pasargad had recorded foreign exchange commitments in CBI system with reference exchange rate and translated the asset liability difference with translational exchange rate at past year end. The IRR 3,150 bn difference has been recorded in due from CBI account, which settlement will be conditional on preparing foreign exchange special audit report and CBI approval, which is still in progress Due from other banks and financial institutions 19-Mar Mar-2015 Term deposits with other local banks and financial institutions - IRR (restricted) 4,303,000 16,005,000 Term deposits with other local banks and financial institutions - foreign currency (restricted) 257,610 0 Term deposits with foreign banks - foreign currency (restricted) 3,719,027 3,348,320 Payments for clearing other bank's cheques 825,201 2,305,019 9,104,838 21,658,339 BANK PASARGAD Annual Report 2015/16

26 BANK PASARGAD (PLC) 023 Financial Statements & Notes 11 CREDIT FACILITIES AND DUES FROM NON-GOVERNMENTAL ENTITIES Group Bank 19-Mar Mar Mar Mar-2015 Installment sales 4,776,474 4,196,531 4,141,789 3,665,891 Ju'lah 1,228,553 1,457,309 1,228,553 1,457,309 Hire-purchase 12,625 24,343 2,917 3,001 Qarz-al-hasanah 1,395,974 1,132,798 1,395,974 1,132,798 Mudarabah 18,999,070 20,366,639 18,999,070 20,366,639 Musharakah 252,992, ,220, ,011, ,182,732 Debtors for paid L/Cs 8,335,174 6,330,489 8,335,174 6,330,489 Credit facilities in foreign currency 11,611,956 3,203,972 11,611,956 3,203,972 Debtors for paid L/Gs 1,520,376 1,485,162 1,520,376 1,485,162 Debtors for paid credit cards 846, , , ,751 Murabaha 24,050 46,458 24,050 46, ,742, ,440, ,117, ,851,201 Deferred income (2,273,264) (2,091,916) (2,260,831) (1,989,570) Outstanding income 0 0 (985,984) 0 General provision for doubtful debts (5,012,039) (4,091,249) (5,412,828) (4,404,048) Special provision for doubtful debts (11,248,919) (6,338,203) (11,248,919) (6,338,203) 283,208, ,919, ,208, ,119,381

27 024 BANK PASARGAD (PLC) 11-1 Bank Pasargad's credit facilities and dues from non-governmental entities 19-Mar Mar-2015 Provision for doubtful debts Net balance Net balance Outstanding income Total Late payment penalties receivable Deferred income Income and commissions receivable Balance Installment sales 4,019, ,880 17,960 (1,734,510) (3,843) 2,403,436 (86,268) 2,317,168 2,105,018 Ju'lah 1,186,078 41,289 1,186 (277,424) (65) 951,064 (18,197) 932,867 1,123,560 Hire-purchase 833 1, (61) 2,856 (921) 1,935 2,311 Mudaraba 12,041,315 6,377, ,131 - (140,580) 18,858,490 (2,315,390) 16,543,100 19,002,776 Musharakah 258,490,548 54,286,129 2,234,802 - (794,462) 314,217,017 (12,308,513) 301,908, ,074,555 Murabaha 21,161 2,888 - (2,856) - 21,193 (352) 20,841 39,101 Qarz-al-hasanah 1,387, ,772 (797) 1,395,178 (31,459) 1,363,719 1,107,219 Credit facilities in foreign currency 11,252, ,931 - (246,042) - 11,365,914 (234,320) 11,131,594 2,905,625 Debtors for paid L/Cs 5,424,121 2,885,474 25,579 - (46,176) 8,288,998 (1,327,826) 6,961,172 5,566,586 Debtors for paid L/Gs 761, , ,520,376 (279,772) 1,240,604 1,273,188 Debtors for paid credit cards 738,290 15,250 92, ,205 (58,728) 787, , ,323,641 64,833,404 2,960,498 (2,260,832) (985,984) 359,870,727 (16,661,746) 343,208, ,119,381 BANK PASARGAD Annual Report 2015/16

28 BANK PASARGAD (PLC) 025 Financial Statements & Notes 11-2 Classification of Bank Pasargad's credit facilities and dues from non-governmental entities - according to instruction of Money and Credit Council of CBI (note 7-6) 19-Mar Mar-2015 Current debts Overdue debts Bad debts Doubtful debts Total Total Installment sales 4,063,248 6,214 15,881 56,446 4,141,789 3,665,891 Ju'lah 1,224, ,850 1,228,554 1,457,309 Hire-purchase 2, ,917 3,001 Mudaraba 15,333, , ,961 2,590,392 18,999,070 20,366,639 Musharakah 300,703,846 2,114,251 2,701,627 9,491, ,011, ,182,732 Murabaha 24, ,049 46,458 Qarz-al-hasanah 1,371, ,231 23,093 1,395,974 1,132,798 Credit facilities in foreign currency 11,269, , ,611,956 3,203,972 Debtors for paid L/Cs 7,702, ,334 8,335,173 6,330,489 Debtors for paid L/Gs 796, ,638 1,520,376 1,485,162 Debtors for paid credit cards 602, , , , ,093,962 2,931,527 3,570,725 13,521, ,117, ,851,202 Deferred income (2,260,831) (2,260,831) (1,989,570) Outstanding income (985,984) (985,984) 0 Net credit facilities before providing for doubtful debts 340,833,131 2,931,527 3,570,725 12,535, ,870, ,861,632 General provision for doubtful debts (5,412,828) (5,412,828) (4,404,048) Special provision for doubtful debts 0 (293,153) (714,145) (10,241,621) (11,248,919) (6,338,203) 335,420,303 2,638,374 2,856,580 2,293, ,208, ,119, Movements in provision for doubtful debts: General provision 19-Mar-2016 Special provision Total General provision 20-Mar-2015 Special provision Balance at the beginning of the year 4,404,048 6,338,203 10,742,251 3,379,139 4,434,415 7,813,554 Written off Provision for current year 1,008,780 4,910,716 5,919,496 1,024,909 1,903,788 2,928,697 Balance at the end of the year 5,412,828 11,248,919 16,661,747 4,404,048 6,338,203 10,742,251 Total 11-4 Foreign currency credit facilities, categorized by paying resources: 19-Mar Mar-2015 Current Overdue Bad Doubtful Total Total Internal resources 7,159, , ,502,612 3,028,286 National Development Fund of Iran 4,109, ,109, ,269, , ,611,956 3,028,286

29 026 BANK PASARGAD (PLC) 11-5 Credit facilities and dues from non-governmental entities, categorized by maturity date and rate of return: 19-Mar Mar % and More 21-24% 18-21% 15-18% 12-15% 12% and lower Total Total Up to 19-Mar ,666,709 13,931,347 1,873,135 8,109 6,093 3,620,456 72,105,849 59,397,019 Up to 21-Mar ,297,927 93,597, ,083 27, ,066 6,352, ,043, ,798,334 Up to 20-Mar ,845,640 1,056, ,622 2,909 30,271 2,916,685 7,048,702 5,901,204 Up to 20-Mar ,528,730 5,235,930 19,870 5,563 13,908 95,576 9,899,577 4,350,880 Up to 20-Mar ,647, ,272 5,754 23, ,769,637 6,772,910 8,414, ,986, ,146,745 2,732,464 67, ,264 16,754, ,870, ,861, Credit facilities and dues from non-governmental entities, categorized by type of collateral: 2015/ /15 Deposit, participation paper and share 17,996,337 16,296,179 Binding contract 24,379,763 24,071,798 Land, building and machinery 31,361,124 31,887,243 Cheque and promissory note 273,388, ,789,881 Others 12,744,954 10,816, ,870, ,861,634 BANK PASARGAD Annual Report 2015/16

30 BANK PASARGAD (PLC) 11-7 Credit facililties and dues from non-governmental entities have the following movements: Debtors for paid credit cards Total Debtors for paid L/Gs Debtors for paid L/Cs Foreign currency credit facilities Finance lease Mudaraba Musharaka Murabaha Qarz-al-hasana Installment sales Ju'lah Principal credit facililties: Balance at 20-Mar ,085,920 1,032,283 1,148 13,771, ,697,152 32,868 1,132,591 2,692,577 4,399, , , ,485,658 Granted during the year 1,107, , ,499, ,887,634 34, ,315 14,003,738 2,352,189 36,296 5,082, ,675,830 Collection during the year (907,873) (850,873) (409) (61,229,483) (589,094,238) (49,053) (690,110) (5,690,332) (1,327,936) (38,047) (5,220,326) (665,098,680) Balance at 19-Mar ,285, , ,041, ,490,548 18,305 1,387,796 11,005,983 5,424, , , ,062,808 Secondary credit facililties: Balance at 20-Mar , ,704 1,832 6,595,122 36,485,581 6, ,710 1,930, , ,293 46,375,976 Increase during the Year 370,512 66,317 3,521 21,470, ,356,215 5,027 16, ,044 1,370,053 5, , ,668,772 Collection during the year (337,628) (136,611) (3,330) (21,248,257) (131,115,328) (9,045) (9,655) (813,823) (435,797) (31,309) (158,664) (154,299,447) Balance at 19-Mar ,997 42,410 2,023 6,817,176 55,726,468 2,888 7, ,931 2,864, , ,916 66,807,919 Provision for Doutful Debts: Balance at 20-Mar-2015 (66,015) (21,427) (668) (1,363,863) (8,108,178) (673) (25,580) (122,661) (763,903) (211,974) (57,308) (10,742,250) Provision for current years (20,253) (3,230) (253) (951,527) (4,200,335) (321) (5,879) (111,659) (563,923) (67,798) (1,420) (5,926,598) Balance at 19-Mar-2016 (86,268) (18,197) (921) (2,315,390) (12,308,513) (352) (31,459) (234,320) (1,327,826) (279,772) (58,728) (16,661,746) Net credit facilities: Balance at 20-Mar ,105,018 1,123,560 2,312 19,002, ,074,555 39,101 1,107,219 2,905,626 5,566,586 1,273, , ,119,384 Balance at 19-Mar ,317, ,867 1,935 16,543, ,908,503 20,841 1,363,719 11,131,594 6,961,172 1,240, , ,208,981 * Secondary credit facililties contains of income from credit facilities and late payment penalties 027 Financial Statements & Notes

31 028 BANK PASARGAD (PLC) Secondary credit facilities and dues from non-governmental entities have the following movements: Debtors for paid credit cards Total Debtors for paid L/Gs Debtors for paid L/Cs Foreign currency credit facilities Qarz-alhasana Installment sales Ju'lah Finance lease Mudaraba Musharaka Murabaha Income from credit facilities recievable: Balance at 20-Mar , ,580 1,478 6,239,737 34,895,795 6, ,710 1,904, ,886 18,379 44,307,407 Increase during the Year 234,150 57, ,506, ,248,484 5,027 8, ,882 1,370,053 40, , ,422,418 Collection during the year (205,076) (127,901) (81) (18,508,771) (121,652,613) (9,045) (8,799) (804,661) (435,520) (3,423) (125,717) (141,881,607) Balance at 19-Mar ,037 41,224 1,620 6,237,045 53,491,666 2, ,931 2,839, ,851 15,251 63,848,218 late payment penalties recievable: Balance at 20-Mar ,150 1, ,385 1,589, , ,915 2,068,570 Increase during the Year 136,362 8,772 3,297 2,964,232 10,107, ,831 9,162 43, ,281,084 Collection during the year (132,552) (8,710) (3,248) (2,739,486) (9,462,714) 0 (856) (9,162) (43,975) 0 (10,750) (12,411,453) Balance at 19-Mar ,960 1, ,131 2,234, , , ,665 2,959,701 Secondary credit facilities: Balance at 20-Mar , ,704 1,832 6,595,122 36,485,581 6, ,710 1,930, , ,294 46,375,977 Balance at 19-Mar ,997 42,410 2,023 6,817,176 55,726,468 2,888 7, ,931 2,864, , ,916 66,807, Credit facilities and due, categorized by type of customers: Provision for doubtful debts Net balance Balance Individuals 29,099,332 (3,272,011) 25,827,321 legal entities 327,092,723 (13,334,557) 313,758,166 Employees 3,678,673 (55,181) 3,623, ,870,728 (16,661,747) 343,208,979 BANK PASARGAD Annual Report 2015/16

32 BANK PASARGAD (PLC) 12 INVESTMENT IN SHARES AND OTHER SECURITIES Group Bank Note 19-Mar Mar Mar Mar-2015 Long term Total Long term Total Current Long term Total Current Current Long term Total Current Investment in tradable shares ,318,550 4,186,327 7,504,877 2,704, ,704, ,057 4,186,327 4,862, , ,207 Investment in Pasargad Financial Group ,074,663 2,074, ,847,670 2,847, ,692,465 11,692, ,988,923 15,988,923 Investment in other corporates and institutions ,684,395 5,684, ,680,591 6,680, ,049,647 1,049, , ,881 Investment in other securities (banking participation papers) , , , ,000 3,318,550 11,945,385 15,263,935 3,554,767 9,528,261 13,083, ,057 16,928,439 17,604, ,207 17,778,804 18,615, Financial Statements & Notes

33 030 BANK PASARGAD (PLC) 12-1 Investment in tradable shares Current Investment in tradable shares 19-Mar Mar-2015 Number of shares Investment percentage Cost Net realisable value Cost Net realisable value Shares of listed companies in Tehran Stock Exchange: Mass construction and real estate: Toss Gostar Co. 337, Mining of metal ores: Chadormalu Mining and Industrial Co ,841 22,014 Securities financing: Ritel Company Ijara Participation Paper (20%) 44,360-44,382 44, Telecommunication Company of Iran Ijara Participation Paper 4,434-4,436 4, Debt securities market - Oil, gas and side services except for exploration: Naft Staff Fund Participation Paper (21%, quarterly) 1,855-1,855 1, Banks and credit institutions: Bank Ansar 66,468, , , , ,874 Bank Ansar right issue ,284 24,225 Parsaian Bank 3,000,000-4,868 4, Mallat Bank 25,000,000-59,972 58, Tejarat Bank 41,601,136-57,548 47,550 77,035 49,575 Saderat Bank 15,000,000-17,258 15, Sina Bank ,086 1,995 Sina Bank right issue Production of metal products: Azarab Industries Co. 4,500,000-24,055 23, Industrial conglomerate companies: Ghadir Investment Company 3,811,150-10,467 8,857 33,505 20,522 Omid Investment Co ,094 20,460 Omid Investment Co. right issue ,400 5,364 Tradable investment fund: Arman Sepehr Ayandegan ,024 11,100 Electricity, gas, steam and hot water supply: Fajr Petrochemical Co. 2,500,000-40,008 38, Mobin Petrochemical Co. 1,770,000-6,583 7, Continue on next page BANK PASARGAD Annual Report 2015/16

34 031 Continue from previous page 19-Mar Mar-2015 Financial Statements & Notes Number of shares Investment percentage Cost Net realisable value Cost Net realisable value Petroleum products, coke and nuclear fuel: Bandar Abbas Oil Refining Co ,733 6,083 Bandar Abbas Oil Refining Co. right issue ,658 6,148 Base metals: Mobarakeh Steel Co. 1,384,272-4,503 1,944 46,077 19,934 Mobarakeh Steel Co. right issue 5,537,089-5,537 6,501 - Sadid Pipe & Equipment Co. 604,853-4, , Khouzestan Steel Co. 488,000-4,007 1,191 15,442 6,313 Khouzestan Steel Co. right issue 1,530,000-1,530 2,151 - Esfahan Steel Co. 6,300,000-26,921 15,391 61,223 22,951 Chemical products: Shiraz Petrochemical Co. 11,429,186-73,243 34,379 68,119 19,029 Shiraz Petrochemical Co. right issue ,765 10,930 Parsian Oil & Gas Co. 11,112,022-63,324 27,580 83,179 22,200 Parsian Oil & Gas Co. right issue 5,464,207-5,464 8,431 8,000 13,312 Persian Gulf Petrochemical Industries Co. 6,537,237-53,946 36, ,360 67,835 Khorasan Petrochemical Co. 2,226,800-24,901 15,690 25,319 16,137 Pardis Petrochemical Co. 544,200-6,621 5,153 6,124 4,077 Pharmaceutical products: Farabi Pharmaceutical Co. 314, ,590 1,107 4,937 Tamin Pharmaceutical Investment 1,313,195-8,622 9,069 9,848 7,135 Monetary and financial Intermediation: Tamin Pharmaceutical leasing 4,207-4,209 4, , , , ,896 Shares of listed companies in OTC: Auxiliary activities to financial institutions: Energy Exchsnge financial institutions 6,522,000-6,522 50,826 2,174 21,740 Energy Exchsnge financial institutions right issue ,348 39,132 Farabourse Co. 40, ,532 51,113 6,532 61, , , , , Long-term Investment in tradable shares Number of share Investment percentage Cost 19-Mar-2016 Accumulated impairment loss Net book value Market value Net book value 20-Mar-2015 Shares of listed companies in Tehran Stock Exchange: MAPNA Group 555,234, ,186, ,186,327 5,288, Market value

35 032 BANK PASARGAD (PLC) 12-2 Investment in Pasargad Financial Group shares Group Bank 19-Mar Mar Mar Mar-2015 Investment percentage Cost Market value Cost Market value Number of shares Activity Saman Sakht Aryan Co. Civil constructions ,099,400 4,099, ,527,829, ,527,829 3,527,829 3,527,829 3,527,829 Economical, technical, financial and credit services Pasargad Arzesh Afarinan Co. Pasargad Foreign Exchange Co. Foreign currency exchange ,000, , , , ,288 Pasargad Leasing Co. Building leasing ,000, , , , ,000 Pasargad E-Payment Co. Electronic banking services ,000, , , , ,000 Bank Pasargad Brokerage Co. Stock market brokerage ,800, ,800 58,800 58,800 58,800 Pasargad Aryan ICT Co. IT and communications ,000, ,216,180 1,216, , , ,590,000 1,590,000 Participation and investment in construction & building materials Modaberan Sakht Aryan Co. Mabna Khavar Miyaneh Co. Investment and mining 0 0 1,600,178, ,567,002 2,567,002 1,602,510 1,602,510 Pasargad Insurance Co. Insurance services ,800, ,926 1,261, , ,180 MIDHCO Investment in companies 0 0 2,195,529, ,301,156 6,331,906 3,568,055 13,298,794 Machinery Leasing ,000, ,115 54,115 54,115 54,115 Pasargad Machinery and Equipment Leasing Co. Pasargad Nasim Health Co. Health services ,000, , , Educational services , Pasargad Management & Human Capital Research and Development Institute Educational services 18, ,000, ,750 18, Khatam Financial and Economic Research Institute (in the process of formation) Iranian Reinsurance Co. Insurance services 95, ,344 81,484, , ,227 60, ,940 Other Financial Group Companies - 1,959,878 2,711, ,074,663 2,847,670 11,692,465 16,733,359 15,988,923 26,476,936 BANK PASARGAD Annual Report 2015/16

36 BANK PASARGAD (PLC) 12-3 Long-term investment in other companies and institution Group Bank 19-Mar Mar Mar Mar-2015 Accumulated impairment Net book value Market value Net book value Market value Investment percentage Cost Number of shares Iran Credit Scoring Co. 3,103 3, , , ,103 3,103 3,103 3,103 Shaparak E-payment Co. 13,314 13,314 2,076, , ,314 13,314 13,314 13,314 Andishe farda Fund 234, , , , , , , ,364 Capital market developmen investment Fund 699, , , , , , , ,000 Fund of wrestling Iran National Sport 50, , ,100 50, Andishe Zarin Pasargad Fixed Income Fund 39, , ,000 39, Nikandishan Honar Investment Fund Co. 10, , ,000 10, Other companies 4,634,748 5,740, ,684,395 6,680,591 1,049, ,049,647 1,049, , , Investment in other securities Issuer Type Rate (%) 19-Mar Mar-2015 State-owned companies Shiraz municipity ,000 Governmental and construction projects participation papers Other banks securities Certificates of deposit , , Financial Statements & Notes

37 034 BANK PASARGAD (PLC) 13 ACCOUNTS AND NOTES RECEIVABLE Group Note 19-Mar Mar-2015 Receivables from associates 638,882 3,222,717 Receivables from others ,766,682 7,357,223 Trade receivables 494,686 1,184,643 Reinsurers' share of technical reserves 3,378,095 2,544,365 Receivables from the insured and agencies 1,748,558 1,176,383 Receivables from insurers and reinsurers 27,814 35,079 23,054,716 15,520, The above mentioned amount mainly relates to Gostaresh Energy Group Companies' receivables from the Power Plants of Khoi, Shariati, Oromieh and other Petroleum Companies and also MIDHCO Companies' receivables from projects' contractors. 14 OTHER ACCOUNTS RECEIVABLE Note Balance receivable 19-Mar-2016 Group Provision for doubtful debts Net Net 20-Mar Mar-2016 Balance receivable Bank 20-Mar Provision for doubtful debts Net Net Participation papers' realized profit 108, , , , , ,415 Temporary accounts receivable , , , , , ,115 Dividends receivable 82, , , , , ,566 Other notes receivable ,181, ,181, , , , ,632 Receivables from subsidiaries/ associates ,066, ,066,301 5,553,180 20,997, ,997,831 7,471,938 Other 5,261, ,261,049 5,469, , , ,471 23,347, ,347,826 12,739,758 23,199, ,199,465 9,758,137 BANK PASARGAD Annual Report 2015/16

38 BANK PASARGAD (PLC) 035 Financial Statements & Notes 14-1 Bank's temporary accounts receivable Note 19-Mar Mar-2015 Items related to credit facilities: litigation and bad debts recovery cost 188, ,339 Items non-related to credit facilities: Temporary accounts receivable - foreign currency , ,131 Internal debtors - other , ,789 Internal debtors - petty cash 1, Internal debtors - individuals , , , , The IRR 186,303 milion balalanc of temporary accounts receivable (foreign currency) in Bank Pasargad is due from Pasargad Foreign Exchange company The IRR 40,365 milion balalanc of Internal debtors account (other) is for Foulad Mahan Sepahan company's imported goods clearance expenditure and IRR 112,771 million for late payment penalty on goods clearance recievable Balance of Internal debtors (individuals) includes unpaid amount of switches and recievables for Rhyton plan.