Finance Statement

Independent Auditor's Report to the General Assembly of National Iranian Oil Company
     

We have audited the accompanying consolidated balance sheet of National Iranian Oil Company (NIOC) and its subsidiaries as at Esfand 29, 1382 (equivalent to 19/3/2004) and the related consoliated statements of income, comprehensive income and cash flows for the year then ended. These financial statements are the responsibility of the company's board of directors. Our responsibility is to express an opinion on these financial statements based on our audit.

1
 
     

We conducted our audit in accordance with Iranian Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believed that our audit provides a reasonable basis our opinion.

2
 
     

In order to settle the balance of 915 & 250 million dollars loans, the amount of Rls. 12,133,000 million has been debited to the Treasury General & Management and Planning Organization's accounts. Vis-á-vis the above mentioned amount, the credit balance of Central Bank of Iran (CBI)'s account as per note nos. "18-1" and "18-2" has been Rls. 12,167,000 million. According to NIOC's General Assembly dated 23.7.1382 it has been resolved that necessary actions to be envisaged in the 4th Development Plan.
In the light of the above, the settlement of the above mentioned debit and credit balances would be subject to future decision of the relevant authorities.

3
 
     

As per article "62" of the 3rd Development Plan, in year 1381 the fixed assets of the company and the group were revalued and consequently the increase of Rls. 106,199,000 million for the company (Rls. 164,151,000 million for the group) were credited to the fixed assets revaluation surplus reserve.
Althought the name of company and the group had not been stipulated in the said article but it has been generalized by the board of Minister's Resolution to the company and the group. According the formalities for capital increase have been done or is under process. Consequently the said resolution has been cancelled by legal authorities, hence in order to resolve this issue, generalization of article "62", has been envisaged as an enactment in the 4th Development Plan.
On the other hand for the year 1381, the tax authorities had assessed the income tax of Rls. 28,941,000 million for the compant (Rls. 40,993,000 million for the group). This assessment has been done by adding revaluation surplus reserve and relevant depreciation to the company's and the group's taxable income.
Due to NIOC's protests to this assessment, the required reserve has not yet been taken into account.
In the light of the above, clarification of this matter would be subject to the final approval of the said enactment.

4
 
     

In our opinion, the financial statements referred to above present fairly, in all material respects, the consoliated financial position of NIOC and its subsidiaries as of Esfand 29, 1382 and the results of their operations and their cash flows for the year then ended in accordance with Iranian Accounting Standards.

5
 
 

Audit Organization
Date: Sep. 16/2004
Mahmood Yazdi
Mohammad Hadji

 

 

NATIONAL IRANIAN OIL COMPANY CONSOLIDATED BALANCE SHEET AT 29.12.1382 (MARCH 19, 2004)

 

    MARCH 19, 2004

MARCH 20, 2003

Figures: Billion Rls
  Note   N.I.O.C   Consolidated figures   N.I.O.C   Consolidated figures  
                     
                     

Non-Current Assets

                    

Tangible fixed assets

 3   233,092   297,572   194,476   261,252  

Long-term investments

 4   33,208   33,208   29,123   19,433  

Other assets

     -   765   -   279  

Total non-current assets

     266,300   320,384   223,599   280,964  

 

                    

 

                    
                     

Current Assets

                    

Prepayments

 5   1,674   6,028   1,012   4,615  

Goods & materials' inventories

 6   877   8,291   863   7,617  

Notes & accounts receivable Affiliated companies

 7   30,110   42,020   22,184   38,484  

In process of cession

 8   140   140   113   113  

Debtors-Crude Oil customers

 9   19,472   19,472   14,283   14,283  

Cash & cash in bank

 10   3,568   16,047   3,820   16,462  

Total Current assets

     55,841   91,998   42,275   81,574  

 

                    

 

                    
                     

Current Liabilities

                    

Notes & account payable

 11   33,391   32,675   13,251   24,236  

Government's account (Treasury General)

 12   19,472   19,472   14,283   14,283  

Receipts in advance

 13   -   861   -   513  

Tax provision

 14   -   59   -   460  

Proposed dividend

 15   896   896   -   -  

Total current liabilities

     53,759   53,963   27,534   39,492  

Net current assets

     2,082   38,035   14,741   42,082  
      268,382   358,419   238,340   323,046  

 

                    
                     

Long Term Liabilities

                    

Governmental credits

 16   3,299   3,299   6,067   6,067  

Buy-back financial facilities

 17   40,544   38,458   34,986   34,986  

Central Bank of Iran (CBI)

 18   26,959   26,959   25,398   25,398  

Labor's retirement bonus reserve

 19   2,070   2,864   2   424  

Other long term liabilities

 20   -   28,648   -   17,474  

Total long term liabilities

     72,872   100,228   66,453   84,349  

 

                    

 

                    
                     

Owner's Equity

                    

Capital

 21   34,517   34,517   22,449   22,449  

Paid on account for capital increase

 22   117,514   117,514   15,173   15,173  

Credits for crude oil buy-back projects

 23   8,086   8,086   7,085   7,085  

Legal reserves

 24   553   839   384   649  

Other reserves

 25   23,715   22,303   20,597   21,616  

Fixed asset revaluation surplus reserve

     11,125   67,748   106,199   164,151  

Retained earning (loss)

 26   -   7,184   -   7,574  

Total of owner's equity

     195,510   258,191   171,887   238,697  
      268,382   358,419   238,340   323,046  

Control accounts

 35   65,002   30,922   53,573   13,450  

 

                    

 

                    

 

                    

Government revenue (crude oil export)

 27   191,280   191,280   150,088   150,088