€¦ · web view11. 08.2014 in the amount of 38,000 thous.tenge, 5223 thous.tenge for...

Branch of the “Caspian-Audit” LLP in Atyrau oblast

Independent auditors report on the reliability of financial statements of

the “ATMA - Atyrau Airport and Transportation” Joint Stock Company

as of 01. 01. 2017 - 31.12. 2017

Atyrau city2018

Branch of the “Caspian-Audit” Limited Liability Partnership in Atyrau oblast

/logo/ 060000, h. No.21, Sadykov street, Leskhoz mcd., Atyrau city, Atyrau oblast, the RoK

BIN 120241019691, TRN 151000055322,Tel: 8(7122) 365533, E-mail: [email protected]

State license, issued by the Ministry of Finance of the Republic of Kazakhstan under No. 17002564 of

February 13, 2017

No. 018 on July «30», 2018

INDEPENDENT AUDITOR'S REPORT

To Avkan Kemal, General Director of the “ATMA - Atyrau Airport and Transport”

We have audited the accompanying financial statements of the «ATMA- Atyrau Airport and Transport» JSC (the Company) which comprise the balance sheet as of December 31, 2017, profit and loss statement and statement of changes in equity and cash flow statement for the year ended on that date, as well as the summary of significant accounting policies and other explanatory notes to the financial statements.

Management's responsibility for financial statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates reasonable in the circumstances.

Responsibility of the auditor

Our responsibility is to express an opinion based on our audit of these financial statements. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance that there are no significant distortion of the accompanying financial statements.

It involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In assessing this risk,

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mailto:[email protected]

the auditor considers internal control relevant to the preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, and evaluating the overall financial statement presentation.

We believe that the audit evidence we have obtained is sufficient and appropriate for our opinion.

Conclusion

In our opinion, the financial statements, in all material respects, fairly present the financial position of the Company as of December 31, 2017 and its financial results and its cash flows for the year, that ended on the specified date, in accordance with International Financial Reporting Standards.

/stamp: Republic of Kazakhstan, Branch of the “Caspian-Audit” Limited Liability Partnership in Atyrau oblast, BIN 120241019691, CASPIAN-AUDIT/

/signature/________________Sairan Kartabayev Director; auditor of the branch of “Caspian-Audit” LLP in Atyrau oblast

Auditor Qualification certificate No.0000080 of June 13, 1994.

/stamp: Sairan Kartabayev, Auditor of the Republic of Kazakstan, 0080/

Project and audit partner: G. I. IbatProfessional account, sertificate No 0004816 of 30.10.2017

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“ATMA - Atyrau Airport and Transport” Joint Stock Companycontent

PageAuditor's report on results of the audit 1The financial statements as of December 31, 2017Balance sheet 2Profits and Losses Statement 3Cash Flow Statement 4Statement of changes in equity 5Notes to Financial Statements 6Conclusions to the financial statements 7

Annex No. 2To the Ministry of Finance Order under No143 of February 27, 2015

Form No.1

The name of the organization: “ATMA- Atyrau Airport and Transport” Joint Stock Company

Balance SheetFor the period from 01.01.2017 till 31.12.2017

thous. tenge

Assets Line code At the end of the reporting period

At the beginning of the reporting

period

I. Short-term assets:

Cash and cash equivalents 01050388 5458

Financial assets available-for-sale 011

Derivatives 012

Financial assets at fair value through profit or loss 013

Financial assets held to maturity 014

Other short-term financial assets 015

Short-term trade and other receivables 01632436 46044

Current income tax 01720976 12928

Stock 018 32930 36507

Other current assets 0197592 14316

Total short-term assets (the sum of lines 010 to 019) 100144322 115253

Assets (or disposal groups) held for sale 101

II. Long-term assets

Financial assets available-for-sale 110

Derivatives 111

Financial assets at fair value through profit or loss 112

Financial assets held to maturity 113

Other long-term assets 114

Long-term trade and other receivables 11520321 21113

Investments accounted for using the equity method 116

Investment property 117

Fixed assets 118 1067093 1075943

Biological assets 119

Exploration and evaluation assets 120

Intangible assets 121 2427 2177

Deferred tax assets 122

Other long-term assets 123 42239

Total long-term assets (the sum of lines 110 to 123) 2001132080 1099233

Balance sheet (line 100+ line 101+ line 200)1276402 1214486

LIABILITIES AND EQUITYIII. Short-term liabilities

loans 210

Derivatives 211

Other short-term financial liabilities 212

Short-term trade and other payables 2131164235 1323952

Short-term provisions 21415967 13369

Current tax liabilities on income tax 215

employee Benefits 216 27527 21392

Other current liabilities 21752719 33382

Total short-term liabilities (the sum of lines 210 to 217) 300 1260448 1392095

Liabilities of the disposal group held for sale 301

IV. Long term duties

loans 310

Derivatives 311

Other long-term liabilities 312

Long-term trade and other payables 3135763 13853

Long-term reserves 314

Deferred tax liabilities 315

Other long-term liabilities 316

Total long-term liabilities (the sum of lines 310 at 316) 4005763 13853

V. Capital

Authorized (share) capital 410244380 244380

Share premium 411

Repurchased own equity instruments 412

reserves 41344051 57099

Retained earnings (uncovered loss) 414-278240 -492941

Total equity attributable to owners of the parent organization (the sum of lines 410 to 414)

42010191 -191462

Non-controlling owners 421

Total capital (line 420 +/- line 421) 50010191 -191462

Balance sheet (line 300 + line 301 + line 400 + line 500)1276402 1214486

0 0

The General Director _____Avkan Kemal__________ _____/signed/_____ (full name) (signature)

The Chief Accountant _____G. B. Tulegenova_____________________ _____ /signed/_____ (full name) (signature) Seal place: “ATMA-Airport Atyrau and Transport” Joint Stock Company


Annex No.4To the Ministry of Finance Order under No143 of February 27, 2015

Form No.3


Statement of cash flows (direct method)

For the period from 01.01.2017 till 31.12.2017

thous. tenge

The name of indicators Line code At the end of the reporting period


periodI. Cash flows from operating activities

1. Cash inflow, total (sum of lines 011 to 016) 0101248619 1018122

including:

sale of goods and services 011842720 775585

other revenues 012

advances received from buyers, customers 013402706 236825

income from insurance contracts 014

received remuneration 015 1 4

other supply 0163192 5708

2. Cash outflow, total (sum of rows 021 027) 020900203 783533

including:

payments to suppliers for goods and services 021153202 107385

advances to suppliers of goods and services 02292668 80886

payment of wages 023374553 338762

compensation payment 024816 1436

payments under insurance contracts 025

income tax and other payments to the budget 026246357 209162

other payments 02732607 45902

3. Net cash from operating activities (line 010 - line 020) 030348416 234589

II. Cash flows from investing activities

1. Cash inflow, total (sum of lines to 041 by 051) 040350 200

including:

the realization of fixed assets 041350

200

realization of intangible assets 042

implementation of other long-term assets 043

implementation of equity instruments of other organizations (other than subsidiaries), and interests in joint ventures

044

implementation of debt instruments of other organizations 045

compensation for the loss of control over subsidiaries 046

sale of other financial assets 047

futures and forward contracts, options and swaps 048

dividends received 049

received remuneration 050

other supply 051

2. Cash outflow, total (sum of lines to 061 by 071) 06063699 28307

including:

acquisition of fixed assets 06163699 28307

acquisition of intangible assets 062

acquisition of other long-term assets 063

purchase of equity instruments of other organizations (other than subsidiaries), and interests in joint ventures

064

acquisition of debt instruments of other organizations 065

acquisition of control of a subsidiary 066

the acquisition of other financial assets 067

loans 068

futures and forward contracts, options and swaps 069

investments in associates and subsidiaries 070

other payments 071

3. Net cash from investing activities (line 040 - line 060) 080-63349 -28107

III. Cash flows from financing activities

1. Cash inflow, total (sum of lines to 091 by 094) 0900 0

including:

issue of shares and other financial instruments 091

bank loans 092

received remuneration 093

other supply 094

2. Cash outflow, total (sum of lines 101 to 105) 100240137 209059

including:

loan repayment 101

compensation payment 102

dividend payment 103

distributions to owners Equity Organization 104

other disposals 105240137 209059

3. Net cash from financing activities (line 090 - line 100) 110-240137 -209059

4. Effect of foreign currency exchange rates to the tenge 120

5. Increase +/- decrease in cash (line 030 +/- 080 +/- string line 110)

13044930 -2577

6. Cash and cash equivalents at beginning of period 1405458 8035

7. Cash and cash equivalents at end of period 15050388 5458

The General Director _____Avkan Kemal __________ _____/signed/_____ (full name) (signature)



Annex No.3To the Ministry of Finance Order under No143 of February 27, 2015

Form No.2


Profits and Losses Statement

For the period from 01.01.2017 till 31.12.2017

thous. tenge

The name of indicators Line code At the end of the reporting period


periodRevenue 010

1122607 935958Cost of goods and services 011

478731 425583Gross profit (line 010 - line 011) 012

643876 510375Distribution costs 013

Administrative expenses 014238771 212210

Other expenses 015328404 414401

Other income 016136732 275221

Total operating profit (loss) (+/- 012 rows by 016) 020 213433 158985

Income from financing 021 1 4

Finance costs 022816 1436

The share of the organization in the profit (loss) of associates and joint ventures accounted for using the equity method

023

Other non-operating income 024

Other non-operating expenses 025

Profit (loss) before tax (+/- 020 rows by 025) 100212618 157553

Income tax expense 101

Profit (loss) after tax from continuing operations (line 100 - line 101)

200212618 157553

Profit (loss) after tax from discontinued operations 201

Profit for the year (line 200 + line 201) attributable to: 300212618 157553

The owners of the parent

Non-controlling owners

Other comprehensive income, total (sum of lines 410 to 420): 4002083 2175

including:Revaluation of fixed assets 410

2083 2175

Revaluation of financial assets available-for-sale 411

Share of other comprehensive income (loss) of associates and joint ventures accounted for using the equity method

412

Actuarial gains (losses) on pension obligations 413

Effect of change in income tax rate on deferred tax of subsidiaries 414

Cash flow hedges 415

Exchange difference on investments in foreign entities 416

Hedges of net investments in foreign operations 417

Other components of other comprehensive income 418

The adjustment on reclassification in profit (loss) 419

Tax effects of components of other comprehensive income 420

Total comprehensive income (line 300 + line 400) 500214701 159728

Total comprehensive income attributable to:

the owners of the parent

non-controlling owners

Earnings per share: 600

including:

Basic earnings per share:

from continuing operations

from discontinued operations

Diluted earnings per share:

from continuing operations

from discontinued operations




Annex No6To the Ministry of Finance Order under No143 of February 27, 2015

Form No.4


Statement of changes in the capitalFor the period from 01.01.2017 till 31.12.2017

thous. tenge

Component Name Line codeCapital of parent institution

Non-controlling owners Total equityCharter (share)

capital Share premium Repurchased own equity instruments Reserves Retained

earningsBalance at 1 January of the previous year 010 244380 88873 -652669 -319416

Change in accounting policies 011

The recalculated balances (line 010 + / 011 line) 100 244380 88873 -652669 -319416

Total comprehensive income, total (line 210 + line 220): 200 -2175 159728 157553

Profit (loss) for the year 210 -2175 159728 157553

Other comprehensive income, total (sum of lines 221 to 229):

220

including:

Gain on revaluation of fixed assets (net of tax effect) 221

Translation depreciation on revaluation of fixed assets (net of tax effect)

222

Revaluation of financial assets available for sale (net of tax effect)

223


224


Effect of change in income tax rate on deferred tax of subsidiaries

226

Cash flow hedges (net of tax effect) 227



Transactions with owners, total (sum of rows 310 318): 300 -29599,00 0,00 -29599,00

including:

Employee Benefits shares: 310 0,00

including:

the cost of services of employees

issue of shares for the remuneration scheme in shares of employeestax benefit in respect of the remuneration scheme in shares of employeesContributions from owners 311

Issue of own equity instruments (shares) 312

Issue of equity instruments related to the business combination

313

The equity component of convertible instruments (net of tax effect)

314

Dividend payment 315

Other distributions to owners 316

Other transactions with owners 317 -29599 -29599,00

Changes in ownership interests in subsidiaries that do not result in a loss of control

318

Balance as of January 1 of the year (line 100 + line 200 + line 300)

400 244380 0 0 57099 -492941 0 -191462

Change in accounting policies 401

The recalculated balances (line 400 + / 401 line) 500 244380 57099 -492941 -191462

Total comprehensive income, total (line 610+ line 620): 600 -2083 214701 212618

Profit (loss) for the year 610 -2083 214701 212618

Other comprehensive income, total (sum of rows 621 at 629):

620 0 0

including:

Gain on revaluation of fixed assets (net of tax effect) 621

Translation depreciation on revaluation of fixed assets (net of tax effect)

622

Revaluation of financial assets available for sale (net of tax effect)

623


624


Effect of change in income tax rate on deferred tax of subsidiaries

626

Cash flow hedges (net of tax effect) 627



Transactions with owners of all (the sum of lines 710 to 718)

700 0 0 0 -10965 0 0 -10965

including:

Reward employees shares 710

including:

employees of the cost of services

issue of shares for the remuneration scheme in shares of employees

tax benefit in respect of the remuneration scheme in shares of employees

Contributions from owners 711

Issue of own equity instruments (shares) 712

Issue of equity instruments related to the business combination

713

The equity component of convertible instruments (net of tax effect)

714

Dividend payment 715

Other distributions to owners 716

Other transactions with owners 717 -10965 -10965,00

Changes in ownership interests in subsidiaries that do not result in a loss of control

718

Balance at 31 December of the year (line 500 + line 600 + line 700)

800 244380 44051 -278240 0 10191


The Chief Accountant _____G. B. Tulegenova_____________________ _____/signed/_____ (full name) (signature) Seal place: “ATMA- Atyrau Airport and Transport” Joint Stock Company


“ATMA-Airport Atyrau and Transport” Joint Stock Company

Notes to the financial statements ending December 31, 2017

1. Company Informationа) Organization and Operation

The “Atyrau-ATMA Airport and Transportation” JSC operates in accordance with the constituent documents of the Republic of Kazakhstan in the framework of the law, re-registered by the Department of Justice of Atyrau December 12 2008goda for № 2119-1915-AO (DUT), OKPO code 39089660.Business taxpayer identification number 951240000809According to the register of holders of securities the shareholders of the company are:

The company «Magdenli Yer Hizmetleri Ve Tashima A.Sh.» - Turkish shareholder. “National Company” Socio-Entrepreneurial Corporation “Atyrau” JSC - Kazakh

shareholder.The authorized capital of the Company is 244,380,000 (two hundred forty four million three hundred eighty thousand) tenge. Number of issued ordinary shares of the Company is 6,000 (six thousand) shares placed among the shareholders of the Company.

Turkish shareholder - 3,000 (three thousand) shares in the amount of 3 000 000 (three million) or 122 190 000 (one hundred twenty two million one hundred ninety thousand) tenge, which is 50% of the paid-up share capital of the company.

Kazakh shareholder - 3,000 (three thousand) shares in the amount of 3 000 000 (three million) or 122 190 000 (one hundred twenty two million one hundred ninety thousand) tenge, which is 50% of the paid-up share capital of the company.

The scope of activities of the Company are:in respect of aircraft and equipment of the full range of works and services that are part of airport activities, as well as in respect of airport facilities, air terminal complexes and infrastructure;compliance with mandatory technical maintenance schedules aircraft and helicopter fleet, providing continuity of control and continuity of aircraft production;ensuring all ground services, passenger services and freight management and operation of the hangar and airport facilities between landing and departure of aircraft and helicopters in the Atyrau airport according to the developed tariffs; acquisition, implementation, acceptance and surrender to lease, rent, freight;construction, manufacturing, design, reconstruction, repair, alteration, execution of accompanying all types of construction, installation and commissioning works; fire support;provision of civil aircraft, facilities and services of the airport and materials special fluids, control their quality;providing operators of civil aircraft and other users of special vehicles;information and reference service for passengers, crews, population data needed in the field of civil aviation and other activities provided by the Charter.

б) Business environment and risk insurance of Kazakhstan.The Company's business is subject to economic, political and social risks inherent in doing business in Kazakhstan. These risks include the effects of government policies, economic conditions, changes in taxes and regulations, currency fluctuations and the enforceability of contract rights.

The financial statements reflect management's assessment of the impact of economic conditions in Kazakhstan on the operations and financial position. The future business environment may differ from management's assessment.

в) Financial risk management.(i) The Company is exposed to fluctuations in prices for their products and services, which are set in tenge in the domestic currency and in foreign markets. The Company does not hedge its exposure to the risk of price fluctuations. (ii) The Company also has loan commitments are subject to interest rate risk. Changes in interest rates on loans affects borrowings by changing their fair value. The Company does not use hedging instruments to minimize such exposure.(iii) The Company is exposed to currency risk. This exposure arises in connection with the purchase and sale transactions in currencies other than the functional currency of the Company og. Company's functional currency is the tenge. The currencies that give rise to such a foreign exchange risk are primarily the US dollar and the Russian ruble. The Company does not enter into transactions to hedge its exposure to foreign exchange risk. (iv) The Company is exposed to credit risk. The Company does not require collateral in respect of financial assets. The Company's policy is to assess the creditworthiness of customers who intend to buy credit for a certain amount. The Company regularly monitors its exposure to risks of bad debts in order to reduce such exposure to a minimum.

г) Continuity of operations.The long-term economic stability of the Company depends on the economic stability of the country, the changes in the political and business environment in the Republic of Kazakhstan and in the world as a whole (the processes of disarmament), deterioration of park equipment, exceeding the individual sales prices relative to their average market value conditions obtaining loans for production development and a number of other.

The accompanying financial statements have been prepared on a going concern basis of the principle, according to which the realization of assets and satisfaction of liabilities in the normal course of business for the foreseeable future.

The accompanying financial statements contain no adjustments required in the case if the company could not continue its operations on the basis of the principle of Continuity.

2. Basis of presentation of financial statements.а) Accounting basis.The financial statements have been prepared in accordance with the principle of fair value accounting only for fixed assets and intangible assets - at historical cost. The financial statements are presented in Kazakhstan tenge, all monetary amounts are rounded to the nearest thousand tenge, unless otherwise stated.

б) Compliance with accounting principlesThe financial statements of the Company have been prepared in accordance with IFRS as issued by the International Accounting Standards Board (the «IASB») and International Financial Reporting Standards Committee («IFRSC») and interpretations issued by the International Financial Reporting Interpretations Committee (the «IFRIC «), adopted by the European Union up to December 31, 2009.

в) Significant accounting estimates and propositions(i) PropositionIn the process of applying the accounting policies Company management have been used the following judgments against impairment indicators.

The company monitors internal and external indicators of impairment of tangible and intangible assets. The Company's management analyzed the probability of the existence of impairment indicators in relation to assets.The analysis was carried out, in particular, in connection with the technological equipment the ability to operate in the foreseeable future on the planned capacity or possible reduction of its market value. Based on the results generated by assessing the feasibility of technological and financial plan of activities of fixed assets made up for the coming year, management has concluded that no impairment during and at the end of the fiscal year for all tangible and intangible assets.

(ii) Uncertainty of estimates

The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates.In particular, the information produced in the preparation of financial statements requires management of significant estimates, in which there is considerable uncertainty, refer to the following notes:

Note 7 - Income taxNote 8 - Fixed assetsNote 20 - Commitments and contingencies

3. Basic principles of accounting policiesWhen preparing the financial statements by the Company The following significant accounting policies have been consistently applied.

а) Foreign currency translationThe functional currency of the Company is defined as the currency of the primary economic environment in which it operates. Company's functional currency is the tenge, as the main operating activity of the Company is carried out in tenge. Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate prevailing at the balance sheet date. Exchange differences arising from the translation at the exchange rate on the date of the transaction, as well as from the translation of monetary assets and liabilities at the date of the reporting period are recognized in the statement of income. Non-monetary assets and liabilities denominated in foreign currencies that are measured at historical cost are translated to the functional currency at the exchange rate at the transaction date.

To convert the items of financial statements denominated in foreign currencies, as well as for foreign exchange transactions reflect the objectives in accounting, JSC uses the weighted average stock market exchange rates, which were formed at the substantive session of the Kazakhstan Stock Exchange and forms them in the manner specified by the Order of the Ministry of Finance of the Republic Kazakhstan dated 23.12.2002, № 629 and Decree of the Board of the National Bank of the Republic of Kazakhstan dated 23.12.2002, № 512). Order of the Minister of Finance of the Republic of Kazakhstan dated January 28, 2009 № 36 and Regulation of the Board of the National Bank of the Republic of Kazakhstan dated January 26, 2009 № 4.Installed courses used currencies:

As of 31.12.2017 As of 31.12.2016The USD (dollar) 326,00 342,16EURO (EUR) 368,32 378,63

Changes in accounting policy and disclosure of information.In the current reporting period, the Company adopted the standards and interpretations issued by the International Financial Reports Standards Committee («IFRSC») and International Financial Reporting Interpretations Committee («IFRIC») that relate to its operations and effective for annual periods beginning on January 1, 2009.

- New or revised standards and interpretations IFRIC, is effective for annual periods beginning January 1, 2009, Affected the financial statements and/ or position of the Partnership:Amendments to IFRS 1 «Presentation of Financial Statements: Comprehensive income». The revised standard separates changes in equity to those caused by transactions with owners and other changes in equity. Report of changes in equity now includes only details of transactions with owners, while all other changes are presented in one line. Besides. The standard introduces the requirement for a statement of comprehensive income. This report shall be included all items of recognized income and expenses, which may be presented either in a single report, or in two linked statements. Partnership adopted a statement of comprehensive income, which shall include all items of recognized income and expense. The relevant comparative information is provided in the statement of comprehensive income and in 2008Since the amendment only affects the disclosure requirements for, she did not have any impact on the results of the Partnership and its position.

New or revised standards and interpretations IFRIC, is effective for annual periods beginning January 1, 2009 (unless otherwise specified), which will have no impact on the financial statements and/ or financial position of Partnership:

- Amendments to IFRS 1 «First-time Adoption of International Financial Reporting Standards» - «The cost of investments in subsidiaries, jointly controlled entities and associated companies».

- Amendments to IFRS 2 «Share-based Payment» - «Vesting Conditions and Cancellations reward».- Amendments to IFRS 7 «Financial Instruments: Disclosures».- IFRS 8 «Operating Segments».- The new version of IFRS 23, «Borrowing Costs».- Amendments to IFRS 27 «Consolidated and Separate Financial Statements» - «The cost of

investments in subsidiaries, jointly controlled entities and associates».- Amendments to IFRS 32 «Financial Instruments: Presentation» and IAS 1 «Presentation of

Financial Statements» - «Financial Instruments puttable and obligations arising on liquidation».- Amendments to IFRIC 9 «Reassessment of Embedded Derivatives» and IAS 39 - «Financial

Instruments: Recognition and Measurement» - «Embedded Derivatives», effective for financial periods ending June 30, 2009 or after this date.

- Interpretation IFRIC 13 «Program, aimed at maintaining customer loyalty», effective for financial periods beginning July 1, 2008 or after this date.

- Interpretation IFRIC 15 «Agreements for the Construction of Real Estate».- Interpretation IFRIC 16 «Hedges of a Net Investment in a Foreign Operation», effective

prospectively for annual periods beginning on October 1, 2008 or after this date.- Interpretation IFRIC 18 «Assets from Customers», applies to assets received from customers July 1,

2009 or after that date.International Accounting Standards Committee, as part of an annual initiative aimed at

the overall improvement of the existing international financial reporting standards issued amendments to existing standards.

These changes have affected some of the wording and questions on the presentation of financial statements, the recognition and measurement. The new version of these standards is effective for annual periods beginning January 1, 2009 or after that date.

IFRS (IAS) 1 «Presentation of Financial Statements»;IFRS (IAS) 16 «Fixed Assets»;IFRS (IAS) 19, «Employee Benefits»;IFRS (IAS) 20, «Accounting for Government Grants and Disclosure of Government Assistance»;IFRS (IAS) 23, «Borrowing Costs»;IFRS (IAS) 27 «Consolidated and Separate Financial Statements»;IFRS (IAS) 28, «Accounting for Investments in Associates»;IFRS (IAS) 29 «Financial reporting in hyperinflationary economies»;IFRS (IAS) 31, «Interests in Joint Ventures»;IFRS (IAZ) 36 «Impairment of Assets»;IFRS (IAS) 38 «Intangible Assets»;IFRS (IAS) 39 «Financial Instruments: Recognition and Measurement»;IFRS (IAS) 40 «Investment Property»;IFRS (IAS) 41 «Agriculture»:IFRS (IFRS) 7 «Financial Instruments: Disclosures»:IFRS (IAS) 8 «Accounting Policies, Changes in Accounting Estimates and Errors»;IFRS (IAS) 10, «Events after the reporting period»;IFRS (IAS) 18 «Revenue»;IFRS (IAS) 29 «Financial reporting in hyperinflationary economies»;IFRS (IAS) 34 «Interim Financial Reporting».

Changes to the International Financial Reporting Standards, which came into force on January 1, 2010, or after that date are not taken early, that will have no impact on the separate financial statements and / or financial position of the Company.

The International Accounting Standards Board ( «IASB) and the Interpretations Committee International Financial Reporting Standards (« IFRIC «) issued a number of amendments, which are effective for periods beginning January 1, 2010 or after this date, unless otherwise stated :

IAS (IFRS) 1 «First-time Adoption of International Financial Reporting Standards» - «Additional Exemptions for First-time Adopters»;

IAS (IFRS) 2 «Share-based Payment» - «Transactions with payments based on shares, settled by cash, providing for the participation of several group companies»;

A revised edition of IFRS (IFRS) 3 «Business Combinations», effective for periods beginning July 1, 2009 or after that date;

to IFRS (IAS 27) «Consolidated and Separate Financial Statements», effective for periods beginning July 1, 2009 or after that date;

to IFRS (IAS) 39 «Financial Instruments: Recognition and Measurement» - «Objects Eligible Hedged Items», effective for annual periods beginning I July 2009 or after that date;

IFRIC 17 «Distributions of non-cash assets to owners», effective for periods beginning July 1, 2009 or after this date.

The Company has not early adopted these amendments, according to preliminary estimates listed amendments will have no impact on the financial statements in the future, because amendments are not relevant to the Company's activities.

International Accounting Standards Committee, as part of an annual initiative aimed at the overall improvement of the existing international financial reporting standards issued amendments to existing standards, primarily with a view to removing inconsistencies and clarifying wording.

The new version of these standards is effective for annual periods beginning January 1, 2010 or after this date, unless otherwise stated:

IFRS (IFRS) 2 «Share-based Payment», effective for periods beginning July 1, 2009 or after that date;IFRS (IFRS) 5 «Non-current Assets Held for Sale and Discontinued Operations»;IFRS (IFRS) 8 «Operating Segments»;IFRS (IAS) 1 «Presentation of Financial Statements»;IFRS (IAS) 7, «Statement of Cash Flows»;IFRS (IAS) 17, «Leases»;IFRS (IAS) 18 «Revenue»;IFRS (IAS) 36 «Impairment of Assets»;IFRS (IAS) 38 «Intangible Assets», effective for periods beginning July 1, 2009 or after that date;IFRS (IAS) 39 «Financial Instruments: Recognition and Measurement»;Interpretation (IFRIC) 9 «Reassessment of Embedded Derivatives»; effective for periods beginning July 1, 2009 or after that date;Interpretation (IFRIC) 16 «Hedges of a Net Investment in a Foreign subdivision»; effective for periods beginning July 1, 2009 or after this date.

б) Intangible assets

(i) Intangible assets

Some of the software includes the cost of acquisition for accounting software (1: Accounting), mathematical models (motion calculation) specialized products, as well as for the production of drawings of the program. For other intangible assets include a documentary about the Company's operations. Accounting software and other intangible assets acquired by the Company and have limited useful life, is carried at cost less accumulated depreciation and impairment losses.

3. Significant accounting policies, continuedб) Intangible assets, continued

(iii) Amortization

Amortization of intangible assets, the useful life of 3-10 years, which is carried out proportional basis over the specified period.в) Tangible assets

(i) Fixed assetsProperty and equipment are stated at cost less accumulated depreciation and impairment losses.

The cost of each asset is depreciated over its useful life, which is determined by taking into account both the physical life of the particular asset and the present assessment of the economic feasibility and the actual use. Depreciation, which is reflected in the statement of income and expenditure accrued by straight-line basis over the estimated useful life of objects.The table below summarizes the useful lives of fixed assets:

Buildings and constructions 20-50 yearsMachinery and equipment 5-10 years

Transportation 7-12 yearsOther 5-15 years

(ii) Repair and service

The cost of replacing part of an item of property that is accounted for separately is capitalized and the cost of the replaced part is written off (substitution method). Other subsequent expenditure is capitalized only when it increases the future economic benefits from the use of this property, plant and equipment. All other expenses, including the cost of technical inspection and repair are recorded in the income statement as incurred.

г) DevaluationAn analysis of the carrying value of long-lived assets for impairment is carried out when events or changes in circumstances indicate the possibility that such carrying value may not be recoverable. If there is evidence of impairment is assessed, allowing identify whether the carrying amount exceeds the recoverable amount of assets. Carrying out such an analysis is carried out separately for each asset, except for assets that do not generate their own cash flows. In this case, the analysis is performed at the unit level, generating cash proceeds.

In the event that the carrying amount of an asset or cash generating unit revenue exceeds its recoverable amount, a provision to reflect the asset at a lower cost. Impairment losses are recognized in the statement of income and expenses.

(iii) Calculation of recoverable amount

The recoverable amount of an asset is determined as the higher of value in use and fair value less costs to implement it. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. The recoverable amount of assets that do not generate their own cash flow, defined as part of the recoverable value of the unit generating cash flows to which the asset belongs.

(iv) Reversals of impairment losses

An impairment loss is reversed if there is a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

д) Inventories

Raw materials and consumables are stated at weighted average cost method and are recorded at the lower of cost and net realizable value. Cost of inventories includes the costs incurred in the ordinary course of business in bringing each product to its destination, and bring it into proper condition. Cost of raw materials and consumables is the purchase price, and a work in progress and finished goods - the cost of production, including the appropriate proportion of depreciation and overheads. Cost of work in process and finished goods is calculated on the weighted average cost method. Cost of work in process and finished products includes an appropriate share of overheads based on normal capacity utilization.

Net realizable value is based on estimated selling price in the ordinary course of business, less the additional costs of completion and disposal.

3. Basic principles of accounting policies, continuedе) Trade and other receivablesTrade accounts receivable are stated at original invoice amount (being the fair value of the consideration receivable) less provision for impairment of these receivables. Provision for impairment of receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms. amount of the provision is the difference between the initial carrying amount and the recoverable amount, being the present value of expected payment flows. amount of the provision is recognized in the statement of income and expenses.

ж) Cash and cash equivalentsCash and cash equivalents comprise cash at bank and in hand, short-term demand deposits or with maturity less than three months and highly liquid investments that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value, and bank overdrafts.

3) Employee Benefits(v) Remuneration systemThe Company has established the accountant salary system with one-time payments of premiums and personal allowances on the basis of orders of the first leaders of the enterprise, in addition, also adopted elegant system of remuneration for the part of the working personnel.(vi) Pension contributionsEmployees are responsible for their pension contributions in accordance with the in force in 2008. The legislation of the Republic of Kazakhstan on pension provision. The company, being an agent in accordance with the same legislation, is obliged only to keep employees with their pension contributions and remit them to pension funds selected by employees.

(vii) Social SecurityIn accordance with the current legislation on social security in Kazakhstan Companies are required to pay their employees for mandatory social security contributions, which are entered in a special personal account opened with the State Social Insurance Fund. These savings can be used within the limits established by the state only for the payment of benefits for permanent disability and loss of work, and with the year 2008 and for the time spent on maternity leave.

и) LoansBorrowings are recognized initially at fair value of funds raised, net of transaction costs directly attributable to their acquisition. After initial recognition, borrowings are subsequently measured at amortized cost using the effective interest rate method.

к) RevenuesRevenue is recognized to the extent that it is probable that the Company will receive economic benefits and if the amount of revenue can be measured reliably. Revenue associated with the sale of goods is recognized in the statement of income and expenditure at the time of transition to the buyer the significant risks and rewards, usually after the formal transfer of ownership to the buyer. Revenues do not include any indirect taxes.

л) Income tax

Income tax for the year comprises current and deferred tax. Income tax is recognized in the statement of income, except when it relates to items recognized directly in equity. In these cases, it is recognized in equity.

Current income tax is the expected tax payable on the taxable income for the year, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided using the balance sheet liability method on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply during the period the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.

A deferred tax asset is recognized only to the extent that it is probable that future taxable income, which may be reduced by the amount of the asset. The amount of deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

3. Basic principles of accounting policies, continued

м) Financial instruments

(viii) Recognition

The Company recognizes financial assets and liabilities in the balance sheet when, and only when it becomes a party to the contract of the instrument.

Offsetting Financial assets and liabilities to total reflection on the balance sheet is carried out only if there is a legally enforceable right to offset the recognized amounts and intention to work on a method of net income / expense, or to realize the asset simultaneously with repayment obligations.

(ix) Evaluation

Financial assets and liabilities are initially recognized at cost, being the fair value of paid or borrowed funds, respectively, taking into account transaction costs. Gain or loss upon initial recognition are recognized in the statement of income and expenditure for the current period.

Loans and receivables are loans and receivables created by the provision of funds by the Company to the borrower. Loans and receivables include loans and advances except purchased loans.

Originated loans and receivables are initially recognized in accordance with the rules described above, and subsequently remeasured at amortized cost using the effective interest method. A provision for impairment is assessed on an individual basis.

(х) Derecognition

Derecognition of financial asset is derecognised when the Company loses control over the contractual rights on the asset. This occurs when the rights are realized, expire or are surrendered.

Derecognition of financial commitments made in the case of settlement of the obligation.

4. Revenues

The following tables provide an analysis of the main components of revenues from core activities of the Company:

а) Revenues by product / service types: (OPU line 010)

thousand tenge As of 31.12. 2017 As of 31.12.2016Revenues from sales of services 1122607 935958Total income 1122607 935958

5. Cost of goods sold and administrative expenses, selling expenses, and other income and expenses

The following tables provide an analysis of the main components of cost of sales, administrative costs, sales expenses and other expenses and income:

а) Cost of products sold: (OPU line 011)

thousand tenge As of 31.12. 2017 As of 31.12.2016Wage 245198 221747Selling (for vacation reserve) 19333 17635Payment of hospital 4144 4302Material aid 7203 6154Social tax 15744 14033Compulsory social insurance 11779 10616

OSMS 1399

Depreciation OS 50770 49667electric power 23720 16932Water supply 7363 5323sewerage 3660 2748Heating (fuel) 7114 5968Fuel 5203 4030TMZ 16183 15198Repair OS 32628 20151Property tax 2681 2689Land tax 1296 1298Passes 1534 1178Communication services 1993 1839Medical 997 1142

Fire Alarm Maintenance 972 972

Other expenses 17817 21961Total cost: 478731 425583

Other expenses include: medical examination of workers, notary services, production monitoring, travel expenses, etc.

5. Cost of products sold, administrative expenses and operating income and expenses, continued

в) Administrative expenses (OPU line 014)

thousand tenge As of 31.12. 2017 As of 31.12.2016Wage 57141 43954Payment of hospital 774 631Selling (for vacation reserve) 4842 3896Material aid 2730 2185Property tax 269 275Social tax 4682 3710Taxes and other payments to the budget 5322 11274Depreciation OS 2940 2772electric power 427 296Water supply 1551 1148sewerage 771 593Communication services 2529 2389Travel and entertainment expenses 5126 6839

General and staff of the Turkish adm.raskhody 109249 101341

Insurance SUBSCRIPTION 5007 5002Repair of OS 324 164Bank services 2734 2688lease of premises 3600 3334Audit (consulting) services 1161 1161Training 409 465Medical services 7 7Maintenance of 1C 294 103Other expenses 26882 17982Total administrative expenses 238771 212210

Other costs include notary, courier services, garbage collection, maintenance, and other.

г) Other expenses (OPU line 015)

thous.tenge As of 31.12. 2017 As of 31.12.2016The costs of asset retirement 2098 4012

Foreign exchange losses 129066 248660Expenses for provisions and write-off of bad claims

3206

Other expenses 197240 158523Total other income 328404 414401

d) Other income / (loss) (OPU line 016)

thous.tenge As of 31.12. 2017 As of 31.12.2016Gains on disposal of assets 312 179Income / (loss) on exchange differences 136362 273489

Other income / (loss) 58 1553Total other income 136732 275221

d). – the income of financing ( OPU line 021)

thous.tenge As of 31.12. 2017 As of 31.12.2016The income of financing 1 4Total 1 4

j) the cost of financing (OPU line 022)

thous.tenge As of 31.12. 2017 As of 31.12.2016The costs of remuneration 816 1436total 816 1436

6. Income tax

The corporate income tax As of 31.12. 2017 As of 31.12.2016

thous. tengeCurrent corporate income taxExpenses for deferred income tax

The corporate income tax expense recognized in the statement of income and expenses

7. Cash and cash equivalentsMoney is cash and funds in bank accounts.

(i) As of December 31, 2017 the remains of money allocated as follows:

thousand tenge As of 31.12. 2017 As of 31.12.2016Money in current bank accounts 49321 3207Cash on hands 1067 2251total 50388 5458

8. Trade and other receivables

а) Trade and other receivables include:

thous.tenge As of 31.12. 2017 As of 31.12.2016Short-term trade and other DZ, including: (line 016 balance)

32436 46044

* Accounts Receivable 34240 48137Short-term receivables employees 62Other short-term receivables 993**** Provision for receivables (1804) (3148)Other short-term assets (line 019 balance) 7592 14316** Prepayments 3091 5318***Future expenses 2264 2254**** Advance tax payments 194 371***** Value added tax 1604 5934****** Other current assets 439 439Long-term trade and other DZ (line 115 balance)

20321 21113

*** Long-term prepaymentsThe long-term DZ buyers and customers 20321 21113**** Provision for receivables

Trade receivables are non-interest.

б) * Accounts payable

thous.tenge As of 31.12. 2017 As of 31.12.2016JSC "Air Astana" 1224 23591Airline JSC "SCAT" 4634 4358Prime Aviation JSC 3449 1733AEROFLOT – Russian Airlines JSC 1093 1491QAZQA AIR JSC 3675 1679Other 20165 15285Total 34240 48137

9. Trade and other receivables, continued

в) * * * * Prepayments include:

As of 31.12. 2017 As of 31.12.2016thous.tengeStroiDizainServis Co 1750 1750IP Antey 755

Other 2336 3568Total 3091 5318

г) * * * Other accounts receivable is 2264 thous.tenge.д) * * * * Advance tax payments

thous.tenge As of 31.12. 2017 As of 31.12.2016Land tax 151 201Property tax 29 24PPI with non-residents 82Transport tax 50PenaltiesTotal 194 371

е)***** Long-term trade and other DZ 20321 thous.tenge Atyrau International Airport under a contract №133 / 17 for connection of additional capacities.

3)****** Change in allowance for accounts receivable in the period January 1, 2017 and ended December, 31 2017 was as follows:

thous.tenge As of 31.12. 2017 As of 31.12.2016Beginning balance 3148 1800Written off against allowance 12 3208(Provisioned) 1356 1860balance at the end of period 1804 3148

10. Prepaid expenses

Prepaid expenses (PE) are recognized as expenses that have been incurred, but in accordance with the principle of correlation and charges are included in the financial result in the period ahead.

All existing PE of Company are current, as will be charged to cost over the next 3 months.

PE, developed as of December 31, 2017.

thous.tenge As of 31.12. 2017 As of 31.12.2016Employee Insurance 812 1060Property insurance 475transport insurance 588 880Ecological insurance 190 178Subscribe literature, computer software for lawyers

199 136

Total 2264 2254

11. Inventories

а) Remains of reserves on the balance sheet date were as follows: (OPU line 018)thous.tenge As of 31.12. 2017 As of 31.12.2016Raw materials 367 1137products 223 307Fuel 3369 1921Spare parts 2014 2063Other materials 20994 24773electrical materials 2810 2533Construction Materials 3153 3773Total 32930 36507

б) The movement of inventory in the period beginning January 1, 2017 and ended December 31, 2017 was as follows:

thous.tenge As of 31.12. 2017 As of 31.12.2016Beginning balance 36507 27565Received 83832 86004Used for the production of 55885 26400Used for own needs 19321 16867Modernization OS 1238 4195Used against allowance 10965 29600balance at the end of period 32930 36507

12. Fixed assets

а) Movement of fixed assets for the period from 1 January 2016 to December 31, 2016 was as follows:

thous.tenge Land Buildings and constructions

Machinery and equipment

Transportation Computers, Other OS

Intangible assets

Total

Cost on 01.01.2016 46338 820963 158909 171516 114033 2319 1314078

Supply 8224 6505 50741 9993 39 75502Retirement 10121 872 19458 30451On 31.12.2016, at the cost of the original minutes

46338 829187 155293 221385 104568

2358 1359129

Wear on 01.01.2016 34796 94764 59538 53750 180 243028

Depreciation costs 20189 3870 20261 -6341 1 37980

Total depreciation on 31.01.2016

54985 98634 79799 47409 181 281008

Net book value at 31.12.2016

46338 774202 56659 141586 57159 2178 1078121

12. Fixed assets, continued

б) Movement of fixed assets for the period from January 1, 2017 to December 31, 2017 was as follows: (OPU lines 118,121)

thous.tenge Land Buildings and constructions

Machinery and equipment

Transportation Computers, Other OS

Intangible assets

Total

Cost on 01.01.2017 46338 823187 155293 221385 104568 2358 1359129

Supply 610 4596 45678 7420 401 58705Retirement 3142 1295 2389 6826On 31.12.2017, at the cost of the original minutes

46338 829797 156747 265768 109599 2759 1411008

Wear on 01.01.2017 54985 98634 79799 47409 181 281008

Depreciation costs 20414 9031 21414 9470 151 60480

Total depreciation on 31.01.2017

75399 107665 101213 56879 332 341488

Net book value at 31.12.2017

46338 754398 49082 164555 52720 2427 1069520

13. Other long-term assetsBy the line (OPU 123)

thous.tenge As of 31.12. 2017 As of 31.12.2016Construction in progress 42239 0total 42239 0

14. Trade and other payablesAs of December 31, 2017 there was the following payables:

thous.tenge As of 31.12. 2017 As of 31.12.2016Short-term financial liabilities (balance line 212)Short-term trade and other payables, including (Balance line 213)

1164235 1323952

Accounts Payable 5700 4754Debt joint contract organizations 1158535 1319198Short-term benefitsShort-term reserves (balance line 214) 15967 13369Current tax liabilities on income tax (balance line 215)

Employee Benefits (balance line 216) 27527 21392

ther current liabilities including (Balance line 217)

52719 33382

Liabilities for taxes and others. 6195 5412

Obligatory paymentsShort-term advances received 37943 21098Calculations on obligatory payments funds

7504 6040

on executive payments arrears 621 453Amounts due to accountable persons 5Other short-term payables 451 379Arrears of awarded penalties, interest, penaltiesOther long-term liabilities 312 {string balance)

Long-term trade and other payables (balance line 313)

5763 13853

Deferred tax liabilities (balance line 315)

Long-term advances received(Balance line 316)

15. Trade and other payables, continued

Trade and other payables are non-interest.

а) ** Accounts payable and other payables

thous.tenge As of 31.12. 2017 As of 31.12.2016Total: 5700 4754JSC International Airport 971Su Arnasy 1733 1660LLP APHA United Company 2337other 1630 2123

б)** Debt jointly contract legal persons

thous.tenge As of 31.12. 2017 As of 31.12.2016Total: 1158535 1319198Magdenli Yer Hizmetleri Ve Tashima A.Sh. Company

1158535 1319198

16. Employee Benefits

The table below shows liabilities related to personnel of the Company as at each balance sheet date:

thous.tenge As of 31.12. 2017 As of 31.12.2016Wage arrears 27527 21392Liabilities for pension and social deductions

7016 6040

Provision for vacation 488Reserv 13369 13344Charge / (recovery) for the year 29802 29497Retirement 32401 29522Provisions for holidays but as of 01.01.2018

15968 13369

г)** Taxes and other mandatory payment obligations

thous.tenge As of 31.12. 2017 As of 31.12.2016Total: 13699 11452Social tax 3077 2676Individual tax 3069 2680Other taxes 49 56Social Insurance Obligation 2193 1898The obligation for pensions 4823 4142OSMS 488

д) * * Advances received

thous.tenge As of 31.12. 2017 As of 31.12.2016Total: 37943 21098«TCO» LLP 3300 2355Coin Air Company 996Aeroflot JSC 1161«ВЕК AIR» JSC 17811

Other 16832 16586

е)** Other long-term liabilities

thous.tenge As of 31.12. 2017 As of 31.12.2016Total: 0 0

0 0

17. Leasing

a) the Company was concluded financial leasing: financial leasing contract number KTLK / 2511. 08.2014 in the amount of 38,000 thous.tenge, 5223 thous.tenge for compensation payments purchased buses MAZ-171075 in the amount of 2 units.

Creditor Contract currency

Loan period Amount received

Interest rate Maturity value

JSC "Kazakhstan transportLeasing company"

tenge 15.08.2014-15.08.2018

38 000 8% 32237

б) Lease obligations are as follows::

thous.tenge As of 31.12. 2017 As of 31.12.2016Current loan debt 13853 21323

JSC "Kazakhstan Transport Leasing Company"

8090 13853

Total outstanding loans 5763 13853

в) Changing lease obligations during the period was as follows:

thous.tenge As of 31.12. 2017 As of 31.12.2016Beginning balance 13853 21323An leasingRepayment of lease 8090 7470balance at the end of period 5763 13853

Analysis of indicators characterizing the financial and economic activity

The growth in revenue from services for 2017 in relation to the performance in 2016 by 19,94%.

Other income in 2017 totaled 136732 KZT. In 2014, the amount of other income decreased due to exchange lossed 136362 thousand KZT.

Net income derived from the implementation of the main activities in 2017 amounted to 212618thousand tenge.

Accounts receivable increased with respect to last year's figures by 29,37%. Repayment is expected in Q1 2018.

Accounts payable to suppliers increased due to deccreased in procurement by 13,90%.Payables to jointly controlled entity has decreased by 12,18% due.Provision aimed at the development of society in 2017 was partly written by TMZ

administrative and other expenses.

18. Objectives and policies of financial risk management

Company's principal financial instruments comprise loans, cash and cash equivalents. Disclosure of information in this note refers to financial assets and liabilities as defined in IAS 32 "Financial Instruments: Disclosure and Presentation".

a) Derivatives financial instruments and risk managementThe Company does not use derivative financial instruments, and to regulate its exposure to fluctuations in foreign currency exchange rates, interest rates and commodity prices.

b) Foreign currency risk

The Company is exposed to currency risk. This exposure arises in connection with the purchase and sale transactions in currencies other than the functional currency of the Company. Company's functional currency is the tenge. The currencies that give rise to such a foreign exchange risk are primarily the US dollar. The Company does not enter into transactions to hedge its exposure to foreign exchange risk.

c) Credit riskThe Company does not require collateral in respect of financial assets.The Company's policy is to assess the creditworthiness of customers who intend to buy credit for a certain amount. The Company regularly monitors its exposure to risks of bad debts in order to reduce such exposure to a minimum.

Credit risk related to other financial assets of the Company, comprising mainly cash and cash equivalents, there is a risk of a possible failure of counterparties. Management regularly monitors the financial strength of counterparties, using their knowledge of the conditions of the local and foreign markets. The maximum exposure to credit risk is represented by the carrying amount of each asset on the balance sheet date.

d) Interest rate riskThe Company has assets and liabilities subject to interest rate risk. Changes in interest rates impact primarily on loans and borrowings by changing their fair value. The Company does not use hedging instruments to minimize such exposure.

e) Fair value of financial assets and liabilitiesThe fair value of long-term financial instruments have been determined at the reporting date by discounting the estimated future cash flows using interest rates the cost of capital for the company or the built-in tool of the interest rate (which is the most appropriate and applicable). As a result of the work, management has determined that the fair value of the majority of financial assets and liabilities, including cash and cash equivalents, trade receivables, restricted cash to use, trade payables and borrowings approximates their carrying values.

19. Contingencies and contingent liabilities

a) InsuranceThe insurance industry in the Republic of Kazakhstan is in a developing state and many forms of insurance protection common in other countries, yet are generally not available in Kazakhstan. The Company has no insurance covering third party liability in respect of property or environmental damage arising from accidents. There is a risk that the loss or destruction of certain assets could have a material effect on the financial position of the Company.

b) Environmental liabilitiesThe Company is obliged to comply with various laws and regulations concerning the protection of the environment. The Company is obliged to develop environmental projects undergo environmental assessment and obtain standards for maximum permissible emissions of pollutants. This project has been developed and approved by the Environmental Protection authorized environment body. Although Management believes that the Company complies with all the requirements of the Government regarding the protection of the environment, we can not be sure that there is not any contingent liabilities related by environmental legislation. To reduce the possibility of such risks, the Company insures its liability for damage to the environment.

19. Contingencies and contingent liabilities, continued

в) Contingent liabilities on the taxation

(xi) The uncertainties in the interpretation of existing tax laws

The Company is exposed to the uncertainties related to the determination of tax liabilities for each reporting period. Because the existing tax system and tax laws in effect for a relatively short period of time, these uncertainties are more significant than those typically found in countries with more developed tax systems. Applicable taxes include value added tax, excise tax, corporate income tax, social tax, property taxes, transport and land. Laws relating to the applicable taxes are not always clearly defined, and the legislation that is constantly evolving, and has a different interpretation of the constantly changing, and consistently applied.

The uncertainty in the application and development of tax legislation creates the risk that the Company will have to pay additional taxes that may have a material adverse effect on the Company's financial position or results of operations.

(xii) Period for assessment of additional taxes

The tax authorities have the right to credit additionally taxes for five years after the end of the tax period for all taxes. For the period of the year 2008 has been declared a moratorium on planned inspections by the tax authorities of small and medium businesses. Check the correctness of the calculation of taxes and other obligatory payments to the budget can be carried out only at the request of the taxpayer or a third party. The company belongs to medium-sized businesses, and covered by this moratorium. This moratorium has been extended until the middle of 2009.

(xiii) The possible additional tax liabilities

Management believes that the Company, as a whole, fulfills the requirements of the tax legislation and the conditions under the contracts relating to the taxes which affect its operations and that, therefore, no further tax liability does not arise. However, for the reasons stated above, the risk remains that relevant authorities could otherwise interpret treaty provisions and tax regulations. This can result in significant additional tax liabilities. However, due to the above described uncertainties in the assessment of any potential additional tax liabilities, to guide it seems impossible to make any assessment of additional tax liabilities that may arise, together with all their associated penalties and default interest for which the Company may be liable.

20. Events after the balance sheet date

The “ATMA- Atyrau Airport and Transport” JSC from January 01, 2017 to the present day of the year, there have been events that are significant and that could influence the economic decisions of users taken on the basis of the financial statements ending December 31, 2017.

Chief accountant G. B. Tulegenova

/stamp: “ATMA- Atyrau Airport and Transport” Joint Stock Company/


Branch of the “Caspian-Audit” Limited Liability Partnership in Atyrau oblast

/logo/ 060000, h. No.21, Sadykov street, Leskhoz mcd., Atyrau city, Atyrau oblast, the RoK

BIN 120241019691, TRN 151000055322,Tel: 8(7122) 365533, E-mail: [email protected]

State license, issued by the Ministry of Finance of the Republic of Kazakhstan under No. 17002564 of

February 13, 2017

Commentary to the report of the independent auditor on the financial statements of "ATMA - Atyrau Airport and Transport" JSC as of December 31, 2017

The independent auditing organization branch of "Caspian-Audit" LLP in Atyrau oblast, represented by the auditor S. Kartabayeva (qualification certificate number 0000080 issued on 13.06.1994, the qualification commission for certification of auditors of the Republic of Kazakhstan and the state license of LLP "Caspian-Audit" number 17002564 from 13.02.2017 issued by the Committee of financial control Ministry of Finance of the Republic of Kazakhstan) and project partner and audit Ibatov G.I, under contract No.014 of July 11, 2018, audited the accompanying financial statements of "ATMA - Atyrau Airport and Transport "consisting of a balance sheet as at December 31, 2017, the statement of revenue and expenditure, statement of changes in equity, cash flow statement for the year ended on that date.

In carrying out the audit, guided by the Law of RK-139 N13RK from 05.05.2006 "On audit activity in the Republic of Kazakhstan" (as amended), the Law of RK № 234-Shot 28.02.2007g. "On Accounting and Financial Statements", the international standards of accounting, the Articles and Memorandum of Association of "ATMA - Atyrau Airport and Transport" applications.

An audit conducted in accordance with International Standards on Auditing, to get sufficiently substantiated information about whether the financial statements are free of material misstatement. The audit carried out on the basis of a sample, and in some cases - a continuous check of primary documents confirming the information on the disclosure of information in the financial statements.

Responsibility for the organization of accounting, preparation and fair presentation of financial statements in accordance with Article 8 of the Law № 234-Shot 28.02.2007 "On Accounting and Financial Statements" (as amended) and presentation of the audit documents rests with the management of "ATMA - Atyrau Airport and Transportation".

mailto:[email protected]

The audit started July 11, 2018 and finished July 30, 2018. In the process of auditing the Company's management the following documents:

The package of constituent documents: Articles of Association of JSC "ATMA - Atyrau Airport and Transport"; certificate of state re-registration of the legal entity № 2119-1915-AO (DUT), business identification number 951 240 000 809, registered by the Department of Justice of Atyrau region, from 12.12.2008, primary state registration 26.12.1995, the certificate series B, №0317188; statistical card from 15.12.2008 OKPO: 39089660, date code assignment dated 26.12.1995, issued as a VAT payer by the Department of Atyrau region on statistical evidence of the value added tax lot number 15001 0001245 from 29.12.2009 to 01.02.2002 issued at Atyrau TA, TIN: 151000019026.

Source documents, registers of synthetic and analytical accounting, and financial statements for 2017 (trial balance of accounts, analysis and card accounts and database 1 On the "Accounts", bank records, expense reports, material reports, payroll, contracts, agreements and other accounting documents).

During the audited period stewards loans were as follows:On the right of first signature: General Director- Avkan Kemal;With right of second signature: Chief accountant - G.B. Tulegenova;

AUDIT PROGRAM:

1. Information of "ATMA - Atyrau Airport and Transport» JSC2. Accounting organization3. Accounting for cash and banking operations4. Allowance for accounts receivable and payable5. Accounting for fixed assets, intangible assets and inventories6. Accounting for settlements with the personnel on payment and OPV7. Consideration of the authorized capital, income and expenses

1. General Information

The "ATMA - Atyrau Airport and Transport» JSC operates in accordance with the constituent documents of the Republic of Kazakhstan in the framework of the law, re-registered by the Department of Justice of Atyrau December 12, 2008 for № 2119-1915-AO (DUT), OKPO code 39089660.Business taxpayer identification number 951240000809According to the register of holders of securities the shareholders of the company are:

The company «Magdenli Yer Hizmetleri Ve Tashima A.S.» - Turkish shareholder. “National Company” Social-Entrepreneurial Corporation “Atyrau” JSC - Kazakh

shareholder.The authorized capital of the Company is 244,380,000 (two hundred forty four million three hundred eighty thousand) tenge. Number of issued ordinary shares of the Company is 6,000 (six thousand) shares placed among the shareholders of the Company.

Turkish shareholder - 3,000 (three thousand) shares in the amount of 3 000 000 (three million) or 122 190 000 (one hundred twenty two million one hundred ninety thousand) tenge, which is 50% of the paid-up share capital of the company.

Kazakh shareholder - 3,000 (three thousand) shares in the amount of 3 000 000 (three million) or 122 190 000 (one hundred twenty two million one hundred ninety thousand) tenge, which is 50% of the paid-up share capital of the company.

The scope of activities of the Company are:

- in respect of aircraft and equipment of the full range of works and services that are part of airport activities, as well as in respect of airport facilities, air terminal complexes and infrastructure;

- compliance with mandatory technical maintenance schedules aircraft and helicopter fleet, providing continuity of control and continuity of aircraft production;

- ensuring all ground services, passenger services and freight management and operation of the hangar and airport facilities between landing and departure of aircraft and helicopters in the Atyrau airport according to the developed tariffs; acquisition, implementation, acceptance and surrender to lease, rent, freight;

- construction, manufacturing, design, reconstruction, repair, alteration, execution of accompanying all types of construction, installation and commissioning works; fire support;

- provision of civil aircraft, facilities and services of the airport and materials special fluids, control their quality;

- providing operators of civil aircraft and other users of special vehicles;- information and reference service for passengers, crews, population data needed in the field of

civil aviation and other activities provided by the Charter

2. The organization and accounting system.

It maintains its accounting records in accordance with International Financial Reporting Standards (on an accrual basis, continuity, understandability, relevance, reliability, consistency, etc.) and the typical plan for IFRS accounts.

Accounting in enterprise is carried out by automated way - "1C Enterprise 8.2."The general ledger monthly turnover recorded and displayed on the balance of

accounts. Remains of analytical and synthetic accounting of accounts are consistent with the general ledger and accounting data.

3. Cash and cash equivalentstenge

Account Beginning balance Period transactions Balance at the end of period

Code Name Debit Credit Debit Credit Debit Credit1010 Cash on hand 2251554 50125929 51310035 10674491020 Cash in transit 233650024 233650024 -1030 Cash on current

accounts1416388 1457762564 1410656296 48522656

1060 other 1790174 126762 1119344 797592

Information related to record-keeping in the appropriate accounts:

Accounting for cash transactions carried out in accordance with the Resolution of the Government of 31.03.2015, № 241 "Accounting rules" Chapter 3, "Accounting for cash transactions";

Cash accommodation is located on the second floor of the lattice in the windows and on the door alarm is not available;

The contract of full liability to the Cashier made (copy attached);

Balance at the end of the month reconciled with the general ledger with the report of the cashier, discrepancies were found. Not available laced cash book, register of credit and debit orders.

There is a cash register at the box office and on every cash point;

The incoming and outgoing cash orders all the signatures are available, the number and date coincide with the registry book;

Unusual wiring calculation account and are not found at the box office;

All primary documents are prepared properly, stitched, stamped, stamped, there are all the necessary details for a complete reflection on the accounts of accounting;

Incoming and outgoing cash transactions are confirmed by bank statements;

Check the correctness of the classification and disclosure in the financial statements, where the violation is not established;

When checking the cash assets of the company have been checked all accounts of cash companies sploshnymmetodom from January to December 2016;

Balance on current accounts verified with bank confirmation, verified correctly reflect balances in bank accounts with the accounting data, where the violation is not established;

Balance on hand checked against an act of the inventory register. Certificate issued and signed in accordance with company policy. Discrepancies were found not;

Studied monetary operations for the audited period, checked operations inflow and outflow of cash from the cash register and settlement of accounts, verified amounts on a bank statement with the accounting records;

Check the completeness of receipt of funds from the settlement account at the cashier of the enterprise;

Check the correct execution of cash documents and cash management, data

cashier reports reconciled with the accounting records;

Foreign currency transactions and foreign currency account there.

Cash balances on extracts correspond to residues log-orders and general ledger.

Cash payments, including wages and accountable to the money made through the cashier. The audit performed by a continuous method, violations are not revealed

On January 1, 2017 the rest of cash amounted to 2 251 554 tenge.For 12 months of 2017 cash flow amounts to 50 125 929 tenge, including:

- current account – 500 000 tenge;- The buyer and customers -5 489 427 tenge;- podotchetnyh entities-2 364 401 tenge;- payment labor – 109 100 tenge- Short-term advances – 41 590 385 tenge;- Exchange difference – 72 616 tenge:- Others – 0 tenge.

Disposed of cash in the amount of 51 310 035 tenge, including:- Current account – 16 039 293 tenge;- Accountability – 16 033 206 tenge;- Short-term advances – 895 000 tenge;- Suppliers and contractors – 570 800 tenge;- Labor costs – 17 686 710 tenge;

- Short-term advances - 0 tenge;- -Exchange difference -85 026 tenge;December 31, 2017 cash balance – 1 067 449 tenge.

Cash flow is determined by the direct method. The company has an account at a branch of JSC "Kazkommertsbank" Atyrau BIKK2K02KH, INC K238926060111587000 Tenge bill.

On January 1, 2017 the current account balance of 1 416 389 tenge.For 12 months of 2017 were received in the amount of 1 457 762 564 tenge, including:

- Booking – 16 039 293 tenge;- Cash in transit – 232 464 868 tenge;- Others – 976718 tenge- Buyers and customers – 837656735 tenge;- Short-term compensation – 876 tenge:- Other – 1309810 tenge:- Prepayments – 716313 tenge;- Long-term advances – 791739 tenge;- Mandatory payments – 10142 tenge;- Suppliers and contractors – 0 tenge;- Wages - 0 tenge;- Others – 3150000 tenge- Advances received – 363709141 tenge;- Exchange differences – 876929 tenge;- Other - 0 tenge.

Disposed of cash in the amount of 1 410 656 296 tenge, including:- Cash – 500000 tenge;- Cash way- 233623705 tenge;- Buyers and customers –00 tenge;- Accountability – 3242203 tenge;- Other – 659442 tenge;- Prepayments – 156248606 tenge;- Other taxes and charges – 183181642 tenge;- Mandatory payments – 63185548 tenge;- Suppliers and contractors -144541664 tenge;- Associates and joint ventures – 240136500 tenge;- Dividends and earnings of participants- 0 tenge;- Joint organization - 0 tenge;- Remuneration – 356975410 tenge;- Current portion of long – 8089961 tenge;- The remuneration payable – 815874 tenge;- Others – 12505278 tenge;- Advances received – 2269319 tenge;- Administrative expenses- 2805623 tenge;- Exchange differences – 1475520 tenge;

At 31 December 2017 the current account 48522656 tenge residue

On January 1, 2017 the rest of the other funds 1 790174 tenge.For 12 months of 2017 cash flow amounts to 126762 tenge, including:

- from the account - 0 tenge;- Income from exchange rate differences – 126762 tenge.

Disposals of cash – 1119344 tenge, including:- Flow from exchange rate differences – 976718 tenge;

- change – 142626 tengeOn December 31, 2017 the current account balance of 797592 tenge.

4. Accounting for receivable.

tengeAccount Beginning balance Period transactions Balance at the end of

periodCode Name Debit Credit Debit Credit Debit Credit1210 Short-term receivables

from buyers and customers

481365501229242869 1243139669 34239749

1251 Short-term receivables accountable persons 61926 19280666 19342592

1270 - 876 876 -1281 Return TMZ 117341 1173411282 303718 3037181284 other 923216 659442 16526581290 Allowance for doubtful

requirements- 3147524 1356391 12777 1803909

1630 Other activies 439279 12520591 12520591 4392791610 Short-term

prepayments 5317582 159655507 161882292 3090797

Note to the accounts receivable balances

Article title Beginning balance, tenge

Balance at the end of period, tenge

Note

Short-term receivables from buyers and customers (1210)

48136550 34239749 For services received during the year

Accounts receivable of accountable persons (1251)

61926 Outstanding in the amount of accountability at the end of the year

Arrears in payment of wages (1252)

- - -

Allowance for doubtful requirements (1290)

(3147524) (1803909)

Short-term prepayments (1610) 5317582 3090797 Advances for services

Others short-term (1630) 439279 439279

Trade receivables on account №1210-34239 tenge, other short-term receivables of the account # 1251 – 0 tenge, on account №1290- (1803909) tenge , on account 1610 – 3090797 tenge and the number 1630 – 439279 tenge.


Logs of transactions (operations) on the accounts in 1210, 1251, 1252, 1281, 1982, 1284, 1290, 1610 and 1620 tested a continuous method for compliance with the yield on the analysis of accounts, trial balance. The balance and turnover on the accounts of analytical accounting fully transferred to the general ledger. All transactions for the sale of goods (works, services) arising from the contractual relationship, not contradicting the current legislation.

Accrued interest added tax invoices and for numbering, arithmetic data corresponds to the bill of lading and has power of attorney to receive the goods, there is a PPC.

Checked registrations magazine issued warrants, canceled the power of attorney and issuing no marked data and signatures. Allowance for doubtful accounts is not established as bad debts are absent.

During the audit of accounts receivable tested a continuous method, all the primary documents, invoices, bills of lading, certificates of acceptance of works contract, where violations were found.

Has sent a list of receivables on 31.12.2017, overdue receivables are not available.There is a list of responsible persons for permission to cash dispensing for household

needs and the contract of full liability, as well as the consent of the retention of unpaid imprest payroll. In accountability money is not issued to persons not previously reported for amounts received, as well as persons who are not employees of the Company.

Consumables documents included in expense reports confirmed by documents (invoices, receipts, etc.)..

1. Expense reports issued correctly, all the expenses are approved by authorized persons (director, chief accountant).2. Travel expenses shall be written off within the standards regulated by the tax legislation.3. The order of the decorated, stamped on arrival and departure in the travel documents and filled with all the necessary details and signatures of officials.4. The unspent amount is returned in a timely manner and for the dismissed workers arrears are not available.5. When buying small stocks (stationery and other) shall be issued, imprest and accountant draw up advance reports. Getting inventory carried out by proxy.

5. Inventoriestenge


Code Name Debit Credit Debit Credit Debit Credit1310 Raw

materials and supplies

36506905

155734321

159311374 32929852


The movement of inventories issued standard forms of primary documents and the documents approved by the Accounting Policy. Turnovers and balances match the card account data, analysis of accounts, trial balance of accounts;

Reporting materially responsible persons compiled on a monthly basis; The cost of inventories in accounting are accounted for using the FIFO method, the weighted average cost is used in certain cases;

Substantive conducted a survey method, analysis, comparison of records in documents, accounting records. Inventories capitalized in the evaluation, provided the accounting policies.

Reporting materially responsible persons prepared monthly reports material completely checked.

Held in the community inventory TMZ, according to the accounting policy on 01/11/2017. We checked the correctness and completeness of registration protocols, collation statements, acts of inventory and other documents on the results of the inventory, where violations were found.

We have checked the documents between the reporting date and the date of the inventory continuous method, leaving a balance was confirmed on 01.11.2016. Discrepancies were found.

Inventories are registered for the employees and with them a contract on a full liability. Unmarketable and stale inventories are absent, primary documents (credit and debit invoices

etc.) filled by the template, designed correctly and the correct amounts of arithmetic calculations.

Tested in the accounts, "unusual" transactions were found cancellation is made in accordance with the accounting policy for the acts of the current commissions.

Write-off of fuel and lubricants produced by the Company in accordance with the basic norms of fuel consumption, approved on 15.02.2010, developed in accordance with the Regulations "On the valuation flow fuel and lubricants and maintenance materials for the automotive and special equipment", approved by the joint order of the Ministry of Transport and Communications of Kazakhstan on 20.07.2001 number 226-1 and the Ministry of energy and mineral resources of RK from 16.07.2001 number 176, consistent with the Office of Road transport Ministry of transport and communications of Kazakhstan from 15.06.2001 № 04-17 / 4315 and JSC "KazTransOil" on 30.03.2001 number 3216;

The audit performed by a continuous method, violations were found. Produced inventory on 01.11.2015, that is, we have not been made for monitoring inventory, since our appointment as auditor occurred after that date.

Note to the remains of materials:

Name Beginning balance Balance at the end of period Note

Raw materials and supplies 36505905 32929852 Required storage

Current tax assetstenge


Code Name Debit Credit Debit Credit Debit Credit1410 Corporate income

tax payable12928510 29897940 21849890 20976261

1420 Value added tax - 35652977 356529971430 Other taxes

370688 67589097

67765628 194157

Note to the remains


Corporate income tax 12928210 20976261

Overpayments

Other taxes 370688 194157 Overpayments

6. Prepaid expensestenge


Code

Name Debit Credit Debit Credit Debit Credit

1620 Prepaid expenses 2253824 4029039 4918638 2264225

Note to the remains of prepaid expenses


Prepaid expenses (1620) 2253824 2264225 Subscription and insurance

7. Basic toolstenge


Code


2410 Basic tools 1075943450

763694055 772544468

1067093037

Intangible assets

tengeAccount Beginning balance Period transactions Balance at the end

of periodCod

eName Debit Credit Debit Credit Debit Credit

2730 Intangible assets 2177323 401440 151291 2427472

The value of fixed income funds is 57065458 tenge, including the amount of modernization and overhaul of fixed assets in the amount of 1238401 tenge and decommissioned 13595903 tenge.

The size of depreciation on fixed assets is determined by the following indicators:- The original value of fixed assets;- Useful life;- The method of calculating depreciation.

For calculating depreciation Company applies the following useful lives in groups:- Building, 20-50 years;- Machinery and equipment, 5-10 years;- Transport materials- 7-12 years;- Other fixed assets -5-15 years.

Depreciation is calculated on a straight (straight-line) depreciation.Accrued depreciation in the amount of 53558369 tenge in 2017.

Information related to record-keeping on the accounts:

• Accounting and movement of fixed assets carried on the respective types of accounts chart of accounts in accordance with the methodology of IFRS (IAS) 16 "Fixed Assets";

• The Company applies the types of primary documentation on the movement of fixed assets. Contract of liability with the material and responsible persons are enclosed;

• The accounting depreciation is calculated monthly on a straight line (straight line) depreciation OS;

• Checked traffic count and the presence of fixed assets: accounting entries are made on the basis of invoices, acts template OS-1; entry in the accounts match analysis of accounts, general ledger.

• Depreciation is charged on a straight (straight) of depreciation and refers to the appropriate expense account.

• Tested selectively fixed assets, reflected in the account, discrepancies were found and executed the relevant documents and conducted transactions.

• The balance sheet provides information on the residual value of the OS. The explanatory memorandum summarizes the initial and the residual value of the operating system, as well as the amount of accumulated depreciation as at the beginning and at the end of the period.

• Discrepancies between the accounting and reporting have been identified, the requirement of IFRS in terms of OS data reflect met


Accounting and movement of intangible assets is carried out on the respective types of accounts chart of accounts in accordance with the methodology of IFRS (IAS) 17

"Intangible Assets"; Applies types of primary documentation on the movement of intangible assets; The accounting depreciation is calculated monthly on a straight line (straight line)

depreciation, useful life of 3-10 years; The intangible assets are different programs and anti-virus software. The purchase 401440 tenge, sale and write-offs of intangible assets were not conducted in

2017.

5. Other non-current assetstenge


Code


2910 Prepayments 21112948 791739 203212092930 Construction in

progress-

2933 Upgrading the operating system and KR

43477126

1238401

42238725

Note to the remains of long-term assets

Name Beginning balance, tenge

Balance at the end of period, tenge Note

Prepayments (2910) 21112948 20321209 Garant of International Airport since 2007

Modernization of fixed assets 42238725 Unfinished work

6. Accounting for accrued dividendstenge

Account Beginning balance Period transactions

Balance at the end of period

code

Name Debit Credit

Debit Credit D Credit

3030

Short-term credit - - -

Note to the remnants of accrued dividends

Name Beginning balance, tenge

Balance at the end of period, tenge Note

Short-term credit (3030) - -

7. Taxationtenge


Code Name Debit Credit Debit Credit Debit Credit3110 Corporate income tax

payable- 21849890

21849890-

4310 Deferred CIT - - -3120 Individual income tax 2679741 30870288 31259652 30691053130 Value added tax

5933689

113004905 117334644 1603950

3150 Social tax 2676536 27130626 27530871 30767813160 Land tax - 2051952 20519523170 Vehicle tax 769258 7692583180 Property tax 4752401 47524013190 Other taxes 55870 269417

Note: The tax arrears

Taxes Balance as of 31.12.2016 NoteCorporate income tax - Debt is not

Deferred CIT - -Individual income tax 3069105 Debt for the period from

December, 2017

Social tax 3076781 Debt for the period from December, 2017

Others taxs 49293 Debt for the period from December, 2017

1. In the audited period, the Company is a payer and has objects of taxation to individual, social, VAT, property tax on vehicles, land and other (pollution) tax.

2. Calculation of tax to individual, social, VAT, property tax on vehicles, land and other (pollution) taxes are carried.

Accrued taxes to individual, social, VAT, property tax, vehicle tax, land and other (pollution) taxes correctly reflected in the accounts of the Model Chart of Accounts and have the correct arithmetical outcome, in statements charges, trial balance, general ledger , balance sheet.

Charges VAT receivable and accrued verified by invoices, received and presented for payment. On the correctness of the invoice can not be held responsible.

Amounts correctly reflected in the accounts of the Model Chart of Accounts, in oborotno¬saldovyh statements, general ledger, balance sheet.

Tested results of arithmetic, the declaration form 100.00. No significant errors were found.

Accrued corporate income tax correctly reflected in the accounts of the Model Plan accounts, trial balance, general ledger, balance sheet.

8. The account of calculations with the personnel on payment and OPV

tengeAccount Beginning balance Period transactions Balance at the end

of periodCode Name Debit Credit Debit Credit Debit Credit3350 Short-term wage arrears 21391935 456067631 462

202779

27527084

3210 social security obligations 1897577 20823828 21607391 2681140

3220 Liabilities for pensions 4142322 42361720 43042294 4822896

Note: The wage arrears and OPV

Taxes Balance as of 31.12.2017

Note

As wages 27527084 Debt for the period from December, 2017

Social security 2681140 Debt for the period from December, 2017

For pensions 4822896 Debt for the period from December, 2017


The account of calculations with the personnel on payment is reflected in account 3350 "Short-term arrears of wages";

Check availability of orders, private affairs, staffing, labor agreements, contracts and timesheets with employees. Retrieved on vault wage settlements, settlement and payroll payroll, vacation pay, temporary disability benefits. Verified account deposited wages, accrued bonuses, bonuses, availability of accounts receivable and payable on wages. Checked payment obligations to employees for payment of vacation pay (payment), compensation for unused vacation, reflected

in the accounting records. Audit of correctness of accrual and retention of wages a continuous method for the employees of the company has not set differences;

Night, overtime, weekends and holidays, material goods (rental housing, food, travel over the rules and so on) are included as other income.

Installed correctly comply with regular discipline; payment on tariff rates and salaries; correct calculation of the average wage.

Accounting for OPV in the accounting records maintained in the account 3220 "The obligation for pensions" according to the Rules of OPV deduction and transfer to pension funds for №245 from 15.03.99 (as amended);

Accounting for retention of compulsory pension contributions in the company complies with Regulation retention and transfer of OPV to pension funds on 15.03.99 for №245 (as amended)..

9. Accounting for payable.tenge


Code Name Debit Credit Debit Credit Debit Credit3310 Short-term trade receivables 4754868 331945464 332890312 56997173330 Short-term payables

Associates and Joint1319197679 397239803 236577036 1158534912

3370 organizations 8089961 80899613380 Sgort term benefits payable 815847 8158473392 Current portion of long-term

payables385730 385730

3395 According peniyam fines in penalties

452538 4912045 5080590 621083

3396 According to the executive 5000 50003397 accountable persons 379366 7207503 7278982 4509453430 other 13368754 29802610 32400946 159670903510 Provisions Remuneration

pits workers21098343 391668310 408513447 37943479

Note to the accounts payable

Obligations Balance as of 31.12.2017

Note

Accounts payable to suppliers5669717

Debt, formed from August to December, 2017.

Short-term payables of associated and joint organizations

1158534912 Magdenli formed since 1994

According peniyam fines in penalties -

According to the executive 621083 Debt, formed since December, 2017.Accountable persons 5000 Debt, formed from december, 2017Other 450845 Debt, formed from december, 2017Provisions for employee benefits 15967091 Debt, formed from december, 2017Short-term advances 37943479 Debt, formed from August to December,

2017


During the audit of accounts payable checked by a solid all primary documents, invoices, bills of lading, certificates of acceptance of works contract, where violations were found.

Accounts payable, on which the limitation period has expired, there is no, and there is reconciliation acts.

Accounts payable is ongoing, the bulk of the debt accounts for a period of occurrence of 1 to 07 months.

Commitments tested a continuous method for invoices, journals entries, contracts. Supplier Invoices accepted by the established procedure. Produced reconciliation records for trial balance, billing analysis. Tested mail accounts, VAT calculation is correct, the entry in the general ledger, balance sheet. To verify the correctness and completeness of capitalized inventories, services, timeliness and correctness of the bills payment.

Accounting for account payables conducted on an accrual basis. Analytical records are maintained for each supplier that provides the ability to obtain data from suppliers, the period has not come of payment issued on advances.

Received and verified transcript of accounts payable and reconciled balances, where the offense is not revealed.

"Unusual" transactions and operation are not found.

10. Accounting for short-term bank loanstenge


Code Name Debit Credit

Debit

Credit

Debit

Credit

3380Short-term remuneration to be paid - -

11. Accounting for long-term debttenge



Debit Credit

Debit Credit

4150Long-term debt on lease

13852954 809961

-5762993

Note to the long-term debt

Obligations Balance as of 31.12.2017

Note

Long-term debt on lease

5762993

Leasing company, contract No. KTLK/ 25 from

08.11.2014

12. Equitytenge



Debit

Credit

Debit

Credit

5020 Common shares 244380000 244380000

5400 Reserves including 57098697 13047408

- 44051289

5410 constituent instruments 10964811 10964811

- -

5420Revaluation of fixed assets 46133886 208

2596-

-

5500Retained earnings including uncovered loss

(492940997) - 214700792

(278240205)

5510 Reporting year (389062614) 214700792

(174361822)

5520 Previous years (103878383) (103878383)

Information related to record-keeping in the appropriate accounts: Checked design of the foundation agreement, minutes, bylaws, which are not found violations,

the formation of the authorized capital has not happened. "Unusual" transactions were not found and there is no provision in 2017 for Company's

development. According to the audit the total revenue amounted to 1 259339677 tenge according to the

financial and economic activity of the company in 2017, including in the context of accounts and types:

6010 Revenue from sales of goods and services 11226064346110 Sort term benefits payable 8766210 Gain on disposal of assets 3125006250 Income from exchange rate differences 1363620006280 Other income 57867

According to the audit of the total costs in the accounting of the Company's operations in 2017 amounted to 1 066831503 tenge, of which in the context of accounts:

7110 Distribution costs 466102967711 1 Expenses at repairing OS 326279777200 Administrative expenses 2388805637310 Remuneration costs 8158747410 The costs of asset retirement 20976697420 Expenses on impairment of assets -7430 Foreign exchange losses 1290657967440 The cost of creating a reserve -7470 other expenses 1972406577710 The corporate income tax -

Provided analysis of accounts and trial balance and ledger.

In our opinion, the financial statements at the time of completion of the audit is objectively and fairly in all material respects, represent the financial position of the Company as of December 31, 2017.

We express our gratitude to the management of the Company for the understanding of the recommendations of the partners and the auditor’s data and aimed to improve the accounting system.

Auditor,qualification certificate № 0080: S. Kartabayev

Project and audit partner G. I. Gabit

July 30, 2018

/stamp: Republic of Kazakhstan, Branch of the “Caspian-Audit” Limited Liability Partnership in


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