KPMG, Lim1ted liability company Telephone +375 17 306 08 03 81885 5 Dimitrova str. Fax +37517 3060812 Office 9 Mob +375 29 104 75 15 220004 Minsk Belarus Internet www.kpmg.by Independent Auditors' Report on Financial Statements of RUE "Minskavtodor-Center" for 2012 To: Mrs. V.S. Grechishkina Chief Accountant RUE "Minskavtodor-Center" 37 Kalvariiskaya str. 220073 Minsk Registered by the Decision of Minsk Municipal Executive Committee dated 14.07.2005 Taxpayer's registration nwnber 600921909 Our ref. 2106-03 We have audited the accompanying financial statements of RUE " Minskavtodor-Center" (hereinafter - the Company) which comprise the consolidated balance sheet as at 31 December 2012, consolidated income statement, consolidated statement of changes in equity, consolidated cash flow statement and explanatory notes for 2012. Managements Responsibility for the Financial Statements The Management of the Company is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the law of the Republic of Belarus as well as for such internal control as management determines necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Law of the Republic of Belarus N!! 3373-XII dated 8 November 1994 "On Auditing" (with subsequent amendments), the Republican Standards on Auditing and International Standards on Auditing, if they do not contradict to stated requirements. Those standards and requirements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments. the auditors consider internal control relevant to the preparation and fair presentation of the consolidated financial statements of the Company in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated fmancial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. KPMG, a Lrmted llabrhtv company and a member f.rm of t~e Registered rn Belarus 191434140 KPMG network of Independent membet firms affiliated w1t~ Registered offrce: KPMG lnternatronal Cooperative (•KPMG lntemational•l. a 5 Dimitrova su, offiCe 9 SwiSS ent,ty. 220004 M1nsk. Belatus Basis for Qualified Opinion We did not observe the counting of physical inventories at the beginning of the reporting year, as at 31 December 2011, as we were engaged as auditors of the Company on 21 January 2013. We were unable to satisfy ourselves as to inventory quantities as at 31 December 2011 by other audit procedures. Since inventories significantly affect the performance results and cash flows of the Enterprise we were not able to determine whether any adjustments might be necessary to the amounts of net profit reported in the consolidated income statement and to the amounts of cash flows on current activities shown in the consolidated cash flow statement for 2012. During the audit we noticed out that due to the accounting practice existing in the transport industry the Enterprise improperly recognized as revenue expenses reimbursable from the budget incurred by the branch offices for the repair and maintenance of the Republican highways, which are on the balance sheet of the Company. As a result, the following consolidated financial statements items are misstated: the amount in the line "Revenue from sale of products, goods, works and services" in the consolidated income statement for 2012 is overstated by 230 539 million rubles, the amount in the line "Cost of sold products, goods, works and services " in the consolidated income statement for 2012 is overstated by 220 049 million rubles, the amount in line 240 "Profit / loss before taxes" in the consolidated income statement for 2012 is overstated by 10 490 million rubles, as at 31 December 2012 the line "Special purpose financing" in the consolidated balance sheet is understated by 56 596 million rubles,and in the line 250 "Short-term accounts receivable", and in the line 630 "Short-term accounts payable" are overstated by 22 030 million rubles. Qualified Opinion In our opinion, except for the effects of adjustments, if any, that might have been determined to be necessary in respect of the issues and matters described in the Section "Basis for Qualified Opinion", the consolidated financial statements present fairly, in all material respects, the financial position ofRUE "Minskavtodor-Center" as at 31 December 2012, its performance results and cash flows for 2012 in accordance with the requirements of the legislation of the Republic of Belarus concerning the financial statements preparation. Nadezda A.Papkova Auditor 21 June 2013 Minsk, Republic of Belarus LLL"KPMG" Certificate of state registration is issued by The Decision of Minsk Municipal Executive Committee dated 15.12.2010, Taxpayer's registration number 191434140 Auditor's Report was received on 21 June 2013 Chief Accountant of RUE «Minskavtodor- V.S.Grechishkina Center» (position) (signature) (name) noD.roTOBJleHO C IICnOnblOBIIHIIeM CHCTe Mbl "KoHcynHaHTilmoc" Supplement I to Decree of the Ministry of Finance of the Republic of Belarus No. II dated 31.10.2011 BALANCE SHEET as at 3 I December 20 12 Organisation RUE "Minskavtodor-Center" Taxpayer's Registration Number 190638747 Activity type Consolidated Organizational legal form Governing body Ministry of Transport and Communications Measurement unit million rubles Address 37 Kalvariiskaya str., Minsk Date of approval Date of submission Date of acceptance Item as at 31 December as at 31 December Assets code lOll 2011 I 2 3 4 I. NON-CURRENT ASSETS Fixed assets 110 22 523 180 11 578 114 Intangible assets 120 13 13 Income-bearing investments into tangible assets 130 - - including: investment property 131 - - finance lease items 132 - - other income-bearing investments into tangible assets 133 - - Investments into non-current assets 140 729 915 438 539 Long-term financial assets ISO 3 3 Deferred tax assets 160 - - Non-current receivables 170 35 673 225 Other non-current assets 180 13 898 9 760 TOTAL for Section I 190 23 302 682 12 026 654 II. CURRENT ASSETS Inventories 210 94 829 66422 including: materials 2ll 40 692 21487 domestic animals being grown and fed 212 - - work in progress 213 54 090 44934 finished goods and goods for sale 214 47 I shipped goods 215 - - other inventories 216 - - Non-current assets held for sale 220 - - Deferred expenses 230 1 598 264 Value-added tax on acquired goods, works, services 240 33 603 58 745 Short-term accounts receivable 250 74 982 109 637 Short-term financial investments 260 448 1 Cash and cash equivalents 270 24 434 510 Other current assets 280 5 419 6 321 TOTAL for Section II 290 235 313 241900 BALANCE 300 23 537 995 12 268 554 n oD.rOT08JleHO C HCnOJibJOB311HeM CHCTeMbl "KoHCYJibTaHTnniOc" Item as at 31 December as at 31 December Equity and liabilities code lOll lOll 1 2 3 4 III. EQUITY Share capital 410 3 3 Unpaid share capital 420 - - Treasury stock 430 - - Reserve fund 440 1 205 1 181 Additional paid-in capital 450 22 670 948 11778188 Retained earnings (Accumulated losses) 460 3 664 I 184 Net profit (losses) of the reporting period 470 - - Special-purpose financing 480 620 025 440 672 TOTAL for Section III 490 23 295 845 12 221 228 IV. LONG-TERM LIABILITIES Long-term loans and borrowings 510 - - Long-term liabilities on lease payments 520 - - Deferred tax liabilities 530 - - Deferred income 540 414 136 Reserve for future expenses 550 - - Other long-term liabilities 560 - - TOTAL for Section IV 590 414 136 V. SHORT-TERM LIABILITIES Short-term loans and borrowings 610 4246 9 389 Short-term part of long-term liabilities 620 - - Accounts payable 630 201 804 37 801 including: 164 921 16 286 to suppliers and contractors 631 no asaHcaM nony'leHHblM 632 19 929 16 413 received advances 633 7 331 1 122 social security payable 634 2 148 660 salary accruals 635 6077 2 008 lease payments 636 - - to owners (founders, participants) 637 44 17 to other creditors 638 1 354 1 295 Liabilities held for sale 640 - - Deferred income 650 I - Reserve for future expenses 660 35 575 - Other short-term liabilities TOTAL for Section V ~ ~· . ·, &~~ .~·-~~~·~ -r !"' ,.,.'l · ~ . . ,, 670 690 110 241 736 47190 - BALANCE ~ ---· .fL~ "' .. -~ -': .. ~-- -~ 700 23 537995 12 268 554 ' ~ - - ' . \. ;:tiff:. ' 11 :r.l. ...)~~ Director N.N.Ma~k ~:'~-. ~1 (11anrc) ~.._;..,:1 ~ ~-- ,:..........- ~yc~~ .......... Chief Accountant ~.A . ...... "£/' . - •.~ '~-'~ 'I V .S. Grechishkina ~~~t~,_\"Jy··~\-.t~~~ (/Iaiii ~) ~-·'l·ll,'~ --.. .., . nollrOTOBneHO C IICOMb308atiHCM CIICfC.Ibl ''KoHcynhTaHTrimoc" Supplement 2 to Decree of the Ministry of Finance of the Republic of Belarus No. Ill dated 31.10.2011 INCOME STATEMENT for January-December 2012 Organisation RUE "Minskavtodor-Center" Taxpayer's Registration Number 190638747 Activity type Consolidated Organizational legal form Governing body Ministry of Transport and Communications Measurement unit million rubles Address 37 Kalvariiskaya str., Minsk Item For January-December For January- Item code 2012 December lOll 1 2 3 4 Revenue from sales of goods, works, services 010 290826 126537 Cost of sales 020 249201 109445 Gross profit (0 10 - 020) 030 41625 17092 Management expenses 040 28403 14385 Sales cost 050 0 0 Profit (loss) from sales of goods, works, services (030- 060 13222 2707 040- 050) Other operating income 070 8966 6151 Other operating expenses 080 16159 6915 Operating profit (loss) 090 6029 1943 [(± 060 + 070- 080) Investment income 100 328 183 including: income from disposal of fixed assets, intangible assets and other non-current assets 101 159 103 income from participation in other organisations 102 0 0 interest receivable 103 28 15 other investment income 104 141 65 Investment expenses 110 88 81 including: expenses from disposal of fixed assets, intangible assets and other non-current assets 111 48 77 other investment expense 112 40 4 Financing income 120 28 224 including: exchange differences from translation of assets and liabilities 121 28 170 other financing income 122 0 54 Financing expenses 130 430 1446 including: interest payable 131 377 1205 exchange differences from translation of assets and 132 45 28 liabilities other financing expenses 133 8 213 Other income and expenses 140 31 2 Item For January-Det:ember For January-December Item ' I code 2012 2011 I 2 3 4 Profit (loss) from investment, financing and other ' 150 -131 -1118 activity (100- 110 + 120 - 130 ± 140) Profit (loss) before taxation(± 090 ± 150) 160 5898 825 -- Income tax 170 2241 455 Change in deferred tax asssets 180 ' 0 0 Change in deferred tax liabilities 190 0 0 Other taxes, duties from profit (income) 200 59 26 Net profit (loss) 210 3598 344 (± 160-170 ± 180 ± 190- 200) Result from revaluation of non-current assets, not included 220 99871 133190 in net profit (loss) Result from other operations not included in net profit 230 0 0 (loss) Comprehensive profit (loss)(± 210 :1: 220 :1: 230) 240 103469 133534 Basic earnings (loss) per share ~-~ 250 0 0 Diluted earnings (loss) per share g"~·~~'~.p~r.~liZ:,~~ 260 0 0 Director c ~,;~~ :::.~"6'-q_"{· ~ IWI ~~~r' ..: !!ill rsi~ IE~,~V t~~· - ""''~,.:::,;M~· ~~.r ·: ~~ ~ e 1 1~ , {~ ;.. J_.,lj N.N. Matvuk (mrme) '\:,"" ~... . ~r?:Ig \~~ -,'~"!'':,,,.- ,"'!..".. :' '<~ 11* . Chief Accountant _.. ~ ~· ~·"'< ..... ~~ ~,~ V.S. Grechishkina r~~~lf<3ro~W~~,..,.. (name) ~~ , . Supplement 3 to Decree of the Ministry of Finance of the Republic of Belarus No. Ill dated 3 1.10.20 II STATEMENT of Changes in Equity for January-December 2012 Organisation RUE "Minskavtodor-Center" Taxpayer's Registration Number 190638747 Activity type Consolidated Organizational legal fonn Governing body_ Ministry of Transport and Communications Measurement unit million rubles Address 37 Kalvariiskaya str., Minsk Retained Unpaid Item Share Treasury Reserve Additional earnings Net profit Item share Total code capital stock fund paid-in capital (Accumulate (loss) capital d losses) 1 2 3 4 5 6 7 8 9 10 Balance as at 31.12.2010 010 3 - - I 176 6 042 826 3 317 - 6 047 322 Adjustment due to change in accounting policy 020 - - - - - - - - Adjustment due to errors correction 030 - - - - - - - - Restated balance as at 31.12.2010 040 3 - - I 176 6 042 826 3 317 - 6 047 322 For January-December 2011 Increase in equity - total 050 - - - - 5 818 142 344 - 5818486 including: net profit 051 - - - - - 344 - 344 revaluation of non-current assets 052 - - - - 133 190 - - 133 190 income from other operations not included in net profit (loss) 053 - - - - - - - - issue of additional shares 054 - - - - - - - - increase of share premium 055 - - - - - - - - contributions from owner (founders, participants) 056 - - - - - - - - reorganisation 057 - - - - - - - - other 058 - - - - 5 684 952 - - 5 684 952 includig social security payments 059 - - - - - - - - Decrease in equity - total 060 - - - - 84 630 622 - 85 252 icluding: loss 061 - - - - - - - - revaluation of non-current assets 062 - - - - - - - - expenses from other operations not included in net profit (loss) 063 - - - - - - - - decrease of share premium 064 - - - - - - - - repurchase o f shares (interest in share capital) 065 - - - - - - - - Table continued nonroTOI!JJCHO C ltCR0,1b30Ba>tHCM CIICTe•obi " KOHCynbT:!.HTrl.moc" Retained Unpaid Item Share Treasury Reserve Additional earnin&s Net profit Item share Total code capital stock fund paid-in capital (Accumulate (loss) capital d losses) 1 2 3 4 s 6 7 8 9 10 dividends and other income from participation in share capital of 066 - - - - - 64 - 64 or1!anis11tinn reorganisation 067 - - - - - - - - other 068 - - - - 84 630 558 - 85 188 including social security 069 - - - - - 230 - 230 Change in share capital 070 - - - - - - - - Change in reserve fund 080 - - - 5 - - 5 - - Change in extra fund 090 - - - - I 850 - 1 850 - - Balance as at 31 December 2011 100 3 - - 1 181 It 778 188 1 184 - II 780 556 Balamce as at 31.12.2011 110 3 - - 1 181 11 778 188 1 184 - II 780 556 Adjustment due to change in accounting policy 120 - - - - - - - - Adjustment due to errors correction 130 - - - - - - - - Restated balance as at 31.12.2011 140 3 - - 1 181 11 778 188 1 184 - II 780 556 For January-December lOll Increase in equity- total 150 - - - - 12 946 482 4006 - 12 950488 icluding: net profit 151 - - - - - 3 598 - 3 598 revaluation of non-current assets 152 - - - - 99 871 - - 99 871 income from other operations not included in net profit (loss) 153 - - - - - - - - issue of additional shares 154 - - - - - - - - increase of share premium 155 - - - - - - - - contributions from owner (founders participants) 156 - - - - - - - - reorganisation 157 - - - - 3 458 278 206 - 3 458 484 other 158 - - - - 9 388 333 202 - 9 388 535 including social security 159 - - - - - - - - Decrease in equity - total 160 - - - - 2 053 864 1 360 - 2 055 224 including: Joss 161 - - - - - - - - revaluation of non-current assets 162 - - - - - - - - expenses for other operations not included in net profit (loss) 163 - - - - - - - - decrease of share premium 164 - - - - - - - - repurchase of shares (interest in share capital) 165 - - - - - - - - dividends and other income from participation in share capital of 166 - - - - - 1 014 - I 014 or2.anisation end of the table Retained Unpaid Item Share Treasury Reserve Additional earnings Net profit Item share Total code capital stock fund paid~in capital (Accumulate (loss) capital d losses) l 2 3 4 5 6 1 8 9 10 reorganisation 167 - - ~ - 47 830 ~ - 47 830 other 168 - - ~ ~ 2 006 034 346 - 2 006 380 Including social security payments 169 - - - - - 81 - 81 Change in share capital 170 ~ - ~ ~ ~ - - ~ Change in reserve fund 18il. - - - 24 - - 24 - - Change in extra fund ~ ~0 ....: ~ \, ~ ~ - - - 142 - 142 - ~ ' _,\ ....,.,~~ =-. Balance as at 31 December 20j~~ . ) 2Q..O . 'SI ~ ~- ~ - ~ I 205 22 670948 3664 - 22 615 820 rl g i; ) ~"..:,... ~~1 -< ~-~ f&'A - i ~~,~ ~ /~~ ' ll_;;- '5,\\'7 .... Director \\ ~.~ \'(R <' 'l~ ~ /: N.N. Mat~uk (s1~~~~ , ~ -~.,.v H7 /o ot' (11n1111t) Chief Accountant ""· •0?' ~fl~ ~~,c~" '. V.S. Grechishkina ~~e) (110111~} no.!l.rOTOBJleiiO C IICnOJI1>30BaHHeM CIICTeMI>l "KoucynbTiiHTflmoc" Supplement4 to Decree of the Ministry of Finance ofthe Republic of Belarus No. Ill dated 31.10.20 II CASH FLOW STATEMENT for January~December 2012 Organisation RUE "Minskavtodor-Center" Taxpayer's Registration Number 190638747 Activity type Consolidated Organizational legal form Governing body Ministry ofTran sport and Communications Measurement unit million rubles Address 37 Kalvariiskaya str., Minsk Item For January-December For January-December Item code 2012 2011 I 2 3 4 Cash flows from operating activities Cash inflow~ total 020 309106 136311 including: from customers of goods, works, services 021 271038 124321 from customers of materials and other inventories 022 2577 2024 royalty 023 0 0 other proceeds 024 35491 9966 Cash outflow - total 030 301080 136760 including: acquisition ofinventories, works, services 031 182178 81707 labour payments 032 59121 28181 taxes and duties 033 45444 21891 other payments 034 14337 4981 Result from cash flows from operating activities (020 - 040 8026 -449 030) Cash flows from investment activities Cash inflow - total 050 547051 86058 including: ofrom customers of fixed assets, intangible assets and 051 6204 5821 other non-current assets repayment of granted loans 052 204 28 income from participation in share capital of other 053 0 0 organisations interest 054 10 7 other proceeds 055 540633 80202 Cash outflow - total 060 524503 86320 including: acquisition and creation of fixed asets, intangible assets 061 6394 5821 and other non-current assets loans granted 062 265 370 contributions to share capital of other organisations 063 0 0 other payments 064 517844 80129 Result of cash flows from investment activities H (050 - 070 22548 -262 060) n OJI.f"OTOBnCHO C HCnOnb10B3HHCM CHCTeMbl "KoHcynbTSHTnniOc " Item For January-December For January-December Item code 2012 2011 1 2 3 4 Cash flows from financing activities Cash inflow - total 080 15522 25524 including: loans and borrowings 081 15096 25419 issue of shares 082 0 0 contributions from owner (founders, participants) 083 0 0 other receipts 084 426 105 Cash outflow - total 090 22172 24691 including: repayment of loans and borrowings 091 20239 23530 payment of dividends and other income from participation in share capital of organisation 092 1507 62 interest payment 093 426 1086 lease payment 094 0 0 other payments 095 0 13 Result from cash flows from financing activities (080 - 100 -6650 833 090) Cash flows for the reporting period(± 040 ± 070 ± 100) 110 23924 122 Cash and cash equivalents as at 31.12.2011 120 510 388 Cash and cash equivalents as at ~en.~.-~f.~~reporting . ~~1·\~~f!XJ~If~~ ~ 130 24434 510 penod _/, .~ "'~".~ np!n~P~rg1 , 4,,~ Effect of exchange rate ch ,«;~~~,~~zfif~~ "·- r ,.~~,~~·-~ __. 1\\..1!~ ·· .. \~. 140 0 0 . ·-- - . -. ~~ ::;.3J.r- ~ - ..,. ,~, ~.J.o..l .r ... , ;;;1~ - ... Director N.N. Ma!J:!!k ~~· "~·*!~ (llant(!) IJ.~~· Chief ~r·- - ··~"'~"' ':.. V.S. Grechishkina (11anrq) Explanatory notes I. RUE "Minskavtodor-Center" consists of 12 branch offices (ROO (Road Operation Office) 10,60,61 ,62,63,64,65,66,67,68,69, TID (Technical Inspection Department)) which are not legal entities, serviced in the banks at their locations and have subaccounts and taxpayer's registrations numbers. Since 1 October 2012 R00-4,5,6 and SD-1 (Special Department) were included in RUE "Minskavtodor-Center" according to Order No. 167 of the Department "Belavtodor" dated 30 July 2012. The objective of activity of the company is maintenance of appropriate operational conditions of the net of republican highways being on the balance of the company. The scope of operations of the company is maintenance and repair of the highways being on the balance of the company, as well as buildings located on them. According to the accounting policy of RUE "Minskavtodor-Center" for 2012 the revenue of the company from sales of products, goods, works, services amounted to 290826 million rubles. Cost of sold goods, products, works, services amounted to 249201 million rubles, administrative expenses were 28403 million rubles. Income from sales of products, goods, works, services amounted to 13222 million rubles. Profitability of sales of products, goods, works, services was 4.8%. Net income for 2012 amounted to 3598 million rubles, including (by branch offices): ROO-I 0 - 48 million rubles ROO -60 - 1500 million rubles R00-61 - 7 million rubles R00-62 - 14 million rubles R00-63 - 13 million rubles R00-64 - 136 million rubles R00-65 - 275 million rubles R00-66 - 20 million rubles R00-67 - 11 million rubles R00-68 - 51 million rubles R00-69 - 27 million rubles TID - 935 million rubles R00-4 - 6 million rubles R00-5 - 20 million rubles R00-6 - 11 million rubles SD-1 12 million rubles Administration - 512 million rubles In the reporting period the accounting records were kept in accordance with accounting policy approved by the company. The accounting records are automated and kept using accounting programs. In the reporting period the accounting data were processed using accounting programs of RUE "Beldortsentr": accounting of fixed assets, payroll accounting, accounting of tangible assets, settlements with suppliers and contractors, settlements with debtors and creditors, bank and cash, settlements with accountable persons; balance sheet and statistical reporting. The accounting service of the administration of "Minskavtodor-Center" uses the program "1 C Accounting". The accounting records of TID are kept using the program "1 C Accounting". 2. The original cost of fixed assets as at 31 December 2012 amounted to 22773576 million rubles. The depreciation is accrued using straight-line method based on depreciable (residual) value of fixed assets, determined useful lives of items involved in business activity, or standard useful lives of items which not involved in business activity, set by the Classifier of Fixed Assets approved by Decree No. 161 of the Ministry of Economy ofthe Republic of Belarus dated 30.09.2011. The useful lives are determined by the Commission for depreciation policy within the period stated in Annex No.3 to Instruction No. 37118/6 (as amended by Instruction No. 1621101145 dated 30.09.2011). The useful lives are determined by the Commission taking into account the influence of aggressive environment, rotation, other deviations from set basic modes of operation. The amount of accumulated depreciation was: As at 31.12.2011 (million rubles) As at 31.12.2012 (million rubles) 142450 250396 The amounts of impairment recorded in accounting books within expenses, restored within profits and (or) additional paid-in capital were not recognized in the reporting period. In the reporting period the original cost of fixed assets was changed due to: reconstruction of highways which amounted to 1492030 million rubles, including: Highway M-4 «Minsk-Mogilev» - 1385920 million rubles; Highway P-28 «Minsk-Molodechno-Naroch km 22,6 - 27,0» -106110 million rubles; Capital repairs of highways which amounted to 41151 million rubles, including: Highway M1/E30 «Brest (Kozlovichi)-Minsk-border of the Russian Federation (Redki)» - 11661 million rubles; Highway M-6 «Minsk-Grodno» - 9505 million rubles; Highway M-4 « Minsk-Mogilev »- 5880 million rubles; Highway M-7 «Minsk-Oshmiany» - 3634 million rubles; Highway P-1 06 «Molodechno-Smorgon» - 1596 million rubles; Highway P-23 «Minsk-Mikashevichi»- 1434 million rubles; Highway P-43 «Krichev-Bobruysk-Yvatsevichi» - 2390 million rubles; Highway P-59 «Logoysk-Smolevichi-Maryina Gorka»-909 million rubles; Highway P-28 « Minsk-Molodechno-Naroch »- 3446 million rubles; Highway P-57 «Kuchino-Liuban-Vetchino» -696 million rubles; Maintenance works of highways which amounted to 71583 million rubles. Free transfers from other legal entities: - highway M1/E30 Brest (Kozlovichi)-Minsk-border of the Russian Federation (Redki) km 252,170-km 478,000 for the amount of 3355765 million rubles to R00-4, Roo-5 and R00-6. - to R00-60 in the amount of 2920 million rubles; - to R00-61 in the amount of 3085 million rubles. Modernization of the road-cleaning vehicle "Broadway" in ROO-I 0 which amounted to 81 million rubles. Fixed assets purchased from own funds amounted to 7428 million rubles. In the reporting period, since I October 2012, RUE "Belavtostrada" gratuitously transferred to RUE "Minskavtodor-Center" for economic control the following items: - highway M l/E30 Brest (Kozlovichi)-Minsk-border of the Russian Federation (Redki) km 252, 170-km 478,000, carrying value of the highway and its properties amounts to 3355765 million rubles; - fixed assets with residual value of 49699 million rubles; - intangible assets with residual value of 8 million rubles; - material assets for the amount of 6483 million rubles; - accounts receivable by the branch offices in the amount of 818 million rubles; - accounts payable of branch offices in the amount of 2144 million rubles; - deferred expenses in the amount of 9 million rubles; - VAT in the amount of 12 million rubles; - deficit recorded on balance account 94 in the amount of 3 million rubles; - VAT (design and survey works of future period and works in progress) in the amount of 994 million rubles; - works in progress in the amount of 4371 million rubles; - design and survey works of future years in the amount of 660 million rubles; - accounts payable in the amount of 3192 million rubles RUE "Belavtostrada" gratuitously transferred retained earnings amounted to 206 million rubles (Credit 84 Debit 83) in respect ofR00-4. As at 1 January 2013 pledged fixed assets amounted to 15994 million rubles. There are no temporary unused assets. As at the end of the reporting period the original (revalued) amount of operating and fully depreciated fixed assets was 45030 million rubles. 3. As at 31 December 2012 the initial (revalued) value of intangible assets amounted to 40 million rubles. Amortization of intangible assets is charged by the straight-line method based on the depreciable amount of the object. As at 31 December 20 II the accumulated amortization amounted to 12 million rubles, the accrued amortization for the reporting period amounted to 7 million rubles. During the reporting period no impairment amounts were recorded as expenses recovered in income and (or) additional paid-in capital. 4. During the reporting period the investment properties were not leased out. Investment properties were not disposed in the reporting period. There are no investment properties included into inventories or operating property. 5. Upon receipt the materials are evaluated at book prices using account 15 "Preparation and acquisition of materials" and 16 "Deviation in pnces of materials". Planned calculated prices are applied as book prices for basic materials. Deviations of purchase prices from the planned calculated prices are recorded in transport and preparation costs. Planned calculated prices are defined in relation to the level of actual cost of the relevant materials. When putting basic construction materials (sand and gravel, crushed stone, sand, concrete, mortar, asphalt, technical salt, brine, paint, enamel, metal, concrete structures, timber, soil, asfaltogranulyat, bitumen emulsion, SOMS, cement) into production and other disposal they are valued at book price, taking into account the deviations from their actual cost of acquisition (preparation). When putting the materials (lubricants, materials not included into the group of basic materials) into production and other disposal they are valued at average cost. When putting (components, spare parts, household equipment) into production and other disposal they are valued at cost of each unit. During the reporting period the inventory was not marked down. Inventories were not pledged as collateral. 6. Accounts receivable repayment of which is expected within 12 months after the balance sheet date as at 31.12.2011 was 10963 7 million rubles, as at 31.12.2012-74982 million rubles. Accounts receivable (loans for housing construction) repayment of which is expected in more than 12 months as at the end of the previous year was 225 million rubles, as at the end of the reporting period - 35 673 million rubles, including: 98 million rubles - loans for housing construction, Project "Improvement and modernization of highway M-5 (guarantee fund) - 35575 million rubles. A sat the begmnmg . 'd : o f the repo rt'mgpeno item 170 item 250 Indicator (o fbalance-sheet) (ofbalance-sheet) Customers and clients 0 6509 Suppliers and contractors 0 101285 Taxes and duties 0 597 Settlements with employees 0 577 Different debtors 0 669 Other accounts receivable 225 0 As at the end of the reporting period: Indicator item 170 item 250 (of balance-sheet) (o fbalance-sheet) Customers and clients 0 21549 Suppliers and contractors 35575 48945 Taxes and duties 0 263 Settlements with employees 0 725 Different debtors 0 2761 Other accounts receivable 98 739 Amounts of allowance for doubtful accounts as at the end of the previous year are not available, the allowance for doubtful accounts in the amount of 110 million rubles (R00-61) was created at the end of the reporting period. In the reporting period the accounts receivable were not written off against the allowance for doubtful debts. 7. The amount of investments in securities of JSC"Savings Bank "Belarusbank" in the form of cash at the end of the previous year was 3063 thousand rubles, as at the end of the reporting period was 3063 thousand rubles. Amounts of loans granted to other entities for the period of up to 12 months as at the end of the previous year was 1 million rubles, as at the end of the reporting period the commodity loan granted to other organizations was 448 million rubles (R00-10-89 million rubles, R00-66 -74 million rubles, R00-69 - 285 million rubles). The Company granted monetary loan to RUE "Belautostrada" in the amount of 2295 million rubles, as at the end of the reporting period the loan amounted to 2026,5 million rubles. 8. During the period the Company used innovation fund in the amount of 280 million rubles for the modernization of heat supply networks in ROO-I 0 in the amount of 240 million rubles as well as performance of sanitary engineering works on the object "Boiler of the branch office R00-63, Vileyka city" in the amount of 40 million rubles. 9. During the reporting period the Company did not raise long-term loans and borrowings. In the reporting period the Company took out a loan in the amount of 15 440 million rubles, the loan is not fully repaid, as at 1 January 2013 the amount due is 4246 million rubles. The accrued interests for using the loan during the reporting period amounted to 344 million rubles. Amount of reserve for future payments as at the end of the previous year is not available. The reserve for future payments was created in the reporting period in the amount of35 575.1 million rubles on the reconstruction ofthe highway M-5 "Minsk-Gomel". As at 1 January 2013 the accounts receivable (an advance payment for mobilization of resources) of the representative office JSC «Todini Costruzioni Generali S.p.A» was 49 470.4 million rubles. As at 1 January 2013 accounts payable to the representative office JSC «Todini Costruzioni Generali S.p.A» for works performed was 40 078 .9 million rubles. 10. Other income from current operations for the reporting period amounted to 8 966 million rubles, including: Amount, Income million rubles 1 item 070 "Other income from current operations" 8 966 1.1. Sale of inventory items 5 960 1.2. Return materials from development of highways 2 260 1.3. Leasing 86 1.4. Collecting of accounts receivable under the court decision 4 1.5. Penalties for breach of contracts 31 1.6. Reimbursement of expenses for trainings 8 1.7. Delivery of scrap metalLprecious metals 93 1.8. Residential rental 3 1.9. Revaluation of accounts receivable 14 1.10. Reimbursement ofthe costs of maintaining housing stock 67 1.11. Mandatory sale of foreign currency 372 Adjustment oftaxes in accordance with the Reconciliation Report with the Inspectorate of the Ministry of Taxes and 1.12. Levies 68 Other expenses from operating activities for the reporting period amounted to 16 159 million rubles, including: Expenditures Amount Total: 16159 including 1 Financial aid in connection with marriage, birth of a child 91 2 Financial aid in connection with the tight situation, death 205 3 Financial aid for recovery 2086 4 One time incentive for anniversary, retirement, other 661 5 One time benefit in connection with the removal 1 6 Bonus for holiday 1244 7 Bonus for putting objects into operation 3 8 Study in the University 24 9 Flower production 17 10 Settlements with employees (payment at the average) 1 11 Social leave, additional leave 33 12 Mass cultural events, transfers to labor union committee 1266 13 Cost of renting property 55 14 Additional payment on articles of low unit cost 127 15 Taxes, National Social Security Fund, fine 625 16 Maintenance ofZPU 88 17 Maintenance of housing stock 868 18 Cost of organizing the meeting of the Department "Belautodor" 2 19 Return materials from stripping ofhighways 2256 20 Cost of sales of commodities and materials 4900 21 Depreciation of fixed assets not involved in entrepreneurial activities 142 22 Depreciation of equipment under repair (over 3) 9 23 Compensation ofloss, damage 39 24 Collecting of accounts payable under the court decision 38 25 Voluntary insurance 79 26 Carrying out of the works council 8 27 Expenses not related to business 159 Revaluation of accounts receivable (performance of works under direct 28 contracts with Russia) 7 29 Travel expenses in excess 98 30 Services of machinery under collective agreement 13 31 Additional payment to the preferential pension NSSF 3 32 Subscription to periodicals 6 33 Refreshing mobile reserve 16 34 Penalties for breach of contracts 127 35 Community work day 10 Health improvement for employees (vouchers to the care house "Zolotyje 36 peski"), children 60 37 Business trips (agricultural works) 16 38 Sponsor support 114 39 Feeding of workers during the reconstruction of highway M-4 112 40 Representational expenses 4 41 Writing-off of accounts receivable 63 42 Mandatory sale of foreign currency 372 43 Allowance for bad debts 110 Writing-off of shortage of fuel, oil and lubricants after expiry of the 44 actions limitation period 1 Other income from investment activities for the reporting period amounted to 328 million rubles, including: Amount, Income million rubles 1 item 100 "Income from investment activities" 328 1.1. Leasing 141 1.2. Interests for using loan for housing construction 21 1.3. Writing-off of fixed assets 159 1.4. Bank interests 7 Other expenses from investment activities for the reporting period amounted to 88 million rubles, including: Amount, Expenditures million rubles 1 item 110 "Expenses from investment activities" 88 1.1. Leasing 40 1.2. Disposal of fixed assets (writing-off) 48 Income from financing activities for the reporting period amounted to 28 million rubles, including: Amount, million Income rubles 1 item 120 "Income from financing activities" 28 1.1. Exchange differences 28 Expenses from financing activities for the reporting period amounted to 430 million rubles, including: Amount, Expenditures million rubles 1 item 130 "Expenses from financing activities" 430 1.1. Interests for the use of short-term loan 339 1.2. Exchange differences 45 1.3. Interests for using loan of RUE "Belarusneft-Orgneftekhim" 38 1.4. Costs for the use of commercial loan 8 Other income and expenses for the reporting period amounted to BYR 31 million, including: Amount, BYR Type of income million 1 item 140 "Other income and expenses" 31 1.1. Road accident compensation 31 There is no income or expenses from goods exchange transactions for the reporting period. General Director Chief Accountant