Opinion and report of the external auditor by international standards based on results of 2015:
AUDITING COMPANY «NAZORAT-AUDIT»:
AUDITOR’S REPORT of the financial statements of JSS “MAXAM-CHIRCHIQ”
Auditing Company information:
Full name of auditing organization: |
Auditing Company Nazorat-Audit LLC |
Legal and postal address: |
11/2, Gospital area, Tashkent city, Republic of Uzbekistan,100015. |
Information on state registration: |
Certificate of Ministry of Justice of the Republic of Uzbekistan № 545 dated December 11, 2007. |
Auditing license: |
License of the Ministry of Finance of the Republic of Uzbekistan series AF № 00067 dated July 28,2008 on conducting of audit services for all types of economic entities. |
Bank accounts: |
Settlement account: 20208 000 604 00771 3001 at Chilanzar branch of Davr Bank SCB, Bank code 01046, Tin 202884570, OKONX 84400 |
General Director of Auditing Company: |
Nazarov Bahodir Nematovich, CAP Qualification certificate of auditor № 05207 issued by Ministry of Finance on 26 April,2014 |
Auditor: |
Nazarov Bahodir Nematovich, CAP Qualification certificate of auditor № 05207 issued by Ministry of Finance on 26 April,2014 |
Date of audit report: |
May 30, 2016 year. |
Company information:
Full name in accordance with founding: |
Joint Stock Company «MAXAM-CHIRCHIQ» |
Legal address: |
2, Tashkent street, Chirchiq city, Tasknent region, Republic of Uzbekistan. 111708 |
Bank accounts: |
Settlement account: 2021 0000 1001 2857 3001 at Chirchiq branch of Uzsanoatqurilishbank SCB. Bank code 00863 Tin 200941518 OKONX 13111.
|
INDEPENDENT AUDITOR’S REPORT
To Management and Owners of Joint Stock Society “MAXAM-CHIRCHIQ”
We have audited the accompanying Financial Statements of Joint Stock Society «MAXAM-CHIRCHIQ» (the "Company") which comprises Statements of Financial Position as at 31 December 2013, 2014, and 2015, Statements of Comprehensive Income, Cash Flow Statements and Statements of Changes in Equity for the period from 1 January 2014 to 31 December 2015 and summary of significant accounting policies and other explanatory notes.
The entity's responsibility for financial statements:
Management of JSS “MAXAM-CHIRCHIQ” is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards (IFRS) and for internal control relevant to the preparation of financial statements that are free from material misstatement due to unfair acts or errors.
The auditor's responsibility:
Our responsibility is to express opinion on these financial statements based on our audits.
We conducted our audits in accordance with International Auditing Standards. Those standards require that we comply with ethical requirements, plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of materials misstatement.
Audit involves performing procedures to obtain audit evidence supporting 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 making those risk assessments, the auditor considers internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Opinion:
In our opinion, the financial statements present fairly, in all material respects, the financial situation of the Company as of 31 December 2015 and of its financial performance and its cash flows for year then ended in accordance with International Financial Reporting Standards (IFRS).
Auditor: Auditing Company «NAZORAT-AUDIT»
Tashkent, May 30, 2016.
Statement on financial situation as of 31.12.2015
№ |
Items |
At/Ha 31.12.2015 |
At/Ha 31.12.2014 |
At/Ha 31.12.2013 |
|
ASSETS |
|
|
|
|
Long-term assets |
|
|
|
1 |
Fixed assets |
330743640,8 |
246972242,0 |
152462474,6 |
2 |
Investment property |
718532,4 |
0,0 |
0,0 |
3 |
Biological Assets |
671746,1 |
545779,6 |
539507,5 |
4 |
The Goodwill |
0,0 |
0,0 |
0,0 |
5 |
Intangible assets other than the Goodwill |
0,0 |
0,0 |
0,0 |
6 |
Investments accounted for using the equity method |
7027752,6 |
4838934,2 |
3183569,3 |
7 |
Deferred tax assets |
0,00 |
0,00 |
0,00 |
8 |
Other non-current financial assets |
97597927,8 |
114994679,3 |
31672405,6 |
9 |
Other non-current non-financial assets |
0,0 |
1877889,6 |
3145702,6 |
10 |
Total long term assets |
436759599,8 |
369229524,6 |
191003659,7 |
|
Current (short -term) assets |
|
|
|
11 |
Inventories |
98159945,9 |
132851345,6 |
126069565,5 |
12 |
Trade and other receivables |
562082723,5 |
331955823,6 |
387689461,2 |
13 |
Accounts receivable on current taxes |
5746040,7 |
14316795,5 |
11340622,6 |
14 |
Advance payments to the suppliers, personnel |
6008831,7 |
9394992,0 |
9767034,8 |
15 |
Other current financial assets |
56 333 171,38 |
31 464 915,75 |
13 882 932,97 |
16 |
Other current non-financial assets |
0,0 |
|
0,0 |
17 |
Cash and cash equivalents |
6378491,8 |
31969185,9 |
16624339,5 |
18 |
Current assets, except for sale: |
0,0 |
0,0 |
0,0 |
19 |
Fixed assets and disposal groups for sale |
0,0 |
0,0 |
0,0 |
20 |
Total current assts |
734709205,1 |
551953058,2 |
565307132,1 |
21 |
TOTAL ASSETS |
1171468804,9 |
921182582,8 |
756310791,7 |
|
EQUITY AND LIABILITIES |
|
|
|
|
EQUITY |
|
|
|
22 |
Paid up Capital |
24996180,0 |
24996180,0 |
24996180,0 |
23 |
Paid-in Capital |
0,0 |
0,0 |
0,0 |
24 |
Revaluation Reserve |
0,0 |
0,0 |
0,0 |
25 |
Other Capital of the Company |
0,00 |
0,00 |
0,00 |
26 |
Other Funds |
251195449,9 |
185648429,2 |
127537788,6 |
27 |
Current year profit |
-35939655,5 |
40115816,0 |
57759627,8 |
28 |
Equity of the Company’s owners |
240251974,4 |
250760425,2 |
210293596,4 |
29 |
Non-controlling interests |
|
|
|
30 |
Total equity |
240251974,4 |
250760425,2 |
210293596,4 |
|
LIABILITIES |
|
|
|
|
Long-term liabilities |
|
|
|
31 |
Long-term reserves for employee benefit |
|
|
|
32 |
Other long-term reserves |
12144135,7 |
7980920,5 |
0,0 |
33 |
Overdue Tax Payments |
1418342,2 |
650889,8 |
6014,2 |
34 |
Other long-term financial liabilities |
1937368,81 |
|
5506372,30 |
35 |
Other long-term non-financial liabilities |
133829141,5 |
127004522,8 |
32652030,6 |
36 |
Total long-term liabilities |
149328988,2 |
135636333,2 |
38164387,1 |
|
Short-term Liabilities |
|
|
|
36 |
Short -term reserves for employee benefit |
6069351,0 |
0,0 |
0,0 |
37 |
Other short -term reserves |
|
|
|
38 |
Accounts payable |
722114992,0 |
498804488,7 |
492435964,6 |
39 |
Short -term Tax Payments |
18082156,5 |
6086759,1 |
189792,2 |
40 |
Other short-term financial liabilities |
20074885,8 |
17322854,7 |
6922330,7 |
41 |
Other short-term non-financial liabilities |
712265,8 |
3836231,5 |
0,3 |
42 |
Short-term Liabilities, except for sale |
14834191,20 |
8735490,44 |
8304690,40 |
43 |
Short-term Liabilities for sale |
|
|
|
44 |
Total short-term liabilities |
781887842,3 |
534785824,4 |
507852778,2 |
45 |
Total liabilities |
931216830,5 |
670422157,6 |
546017195,3 |
46 |
EQUITY AND LIABILITIES |
1171468804,9 |
921182582,8 |
756310791,7 |
Chairman of the Executive Board
Chief Accountant
Profit and Loss and other comprehensive income statement for 2015
№ |
Items |
2015 |
2014 |
1 |
Sales |
515819131,7 |
450021803,1 |
2 |
Cost of Goods Sold |
457570652,0 |
384829722,0 |
3 |
Gross Margin (loss) (lines 1 - 2) |
58248479,6 |
65192081,1 |
4 |
General Expenses, total (lines 5 + 6 + 7) |
94064072,6 |
72890794,8 |
5 |
Commercial Expenses |
30483879,7 |
22421558,5 |
6 |
Administrative Expenses |
11163749,7 |
10101972,3 |
7 |
Other Operational Expenses |
52416443,2 |
40367264,0 |
8 |
Other Income |
2556519,8 |
2699970,4 |
9 |
EBIT |
-33259073,1 |
-4998743,2 |
10 |
Financial Income (lines 11 +12 +13 +14 +15) |
11540196,1 |
19904286,0 |
11 |
Dividends |
143067,3 |
199754,8 |
12 |
Interests |
8759,9 |
13930,3 |
13 |
Income from Financial Leasing |
0,0 |
0,0 |
14 |
Exchange Rate Income |
11388368,8 |
7806730,9 |
15 |
Other Financial Income |
0,0 |
11883870,0 |
16 |
Financial Expenses (lines 17 + 18 +19 + 20) |
4471534,9 |
2773974,5 |
17 |
Interests Paid |
1589407,0 |
662768,9 |
18 |
Expenses on Financial Leasing |
0,0 |
0,0 |
19 |
Loss from Exchange Rate |
2882128,0 |
2104106,1 |
20 |
Other Financial Expenses |
0,0 |
7099,4 |
21 |
Profit Share of associates and joint ventures accounted using the equity method |
0,0 |
0,0 |
22 |
Earnings before taxes |
-26190411,9 |
121315683 |
23 |
Income Tax |
16548,9 |
852001,2 |
24 |
Other taxes |
0,0 |
67691,7 |
25 |
Income from continued operations |
-26206960,8 |
11211875,4 |
26 |
Income from discontinued operations |
|
|
27 |
Income |
-26206960,8 |
11211875,4 |
28 |
including: Company’s owners |
-26206960,8 |
11211875,4 |
29 |
attributable to non-controlled interests |
|
|
30 |
Other Total Income (before taxes) |
|
|
31 |
Exchange Rate Income in terms of reporting currency |
|
|
32 |
Exchange Rate Reclassification in trems of reporting currency |
|
|
33 |
Other Total Income from Exchange Rate in terms of reporting currency (before taxes) |
0,0 |
0,0 |
34 |
Income from Estimate Changes of Finance Assets, available for sale |
|
|
35 |
Finance Assets Reclassification, available for sale |
|
|
36 |
Other Total Income from Finance Assets, available for sale (before taxes) |
0,0 |
0,0 |
37 |
Income from Cash Flow Hedging |
-44080381,7 |
-12781612,1 |
38 |
Cash Flow Hedging Reclassification |
|
|
39 |
Changes in the amounts included in the initial book value of hedging items |
-71415,1 |
-17097,2 |
40 |
Other Total Income from Cash Flow Hedging |
-44008966,5 |
-12764514,9 |
41 |
Other Total Income – Revaluation Income |
|
|
42 |
Other Total Income – Actuarial Income from defined benefit plan |
|
|
43 |
Date of Other Total Income of associates and joint ventures accounted using the equity method |
250803,9 |
254971,1 |
44 |
Other Total Income (before taxes) |
-43758162,6 |
-12509543,8 |
45 |
Income Tax related to Other Total Income Items |
767452,4 |
644875,6 |
46 |
Other Total Income, minus taxes |
-14525615,0 |
-13154419,4 |
47 |
Income Tax related to Other Total Income Items |
|
|
48 |
Other Total Income, minus taxes |
-44525615,0 |
-13154419,4 |
49 |
TOTAL INCOME |
-70732575,8 |
-1942544,0 |
50 |
including: Company’s owners |
-70732575,8 |
-1942544,0 |
51 |
attributable to non-controlled interests |
|
|
52 |
Earnings per Share Ratio |
|
|
53 |
Gross Margin per Share |
-14,1 |
-0,4 |
54 |
including: continued operations |
-14,1 |
-0,4 |
55 |
discontinued operations |
0,0 |
0,0 |
56 |
Dividends Proposed |
-14,1 |
-0,4 |
57 |
including: continued operations |
-14,1 |
-0,4 |
58 |
discontinued operations |
0,0 |
0,0 |
Chairman of the Executive Board
Chief Accountant
Attachment 10
Cash Flow Statement for 2015
Code of line |
Items |
2015 |
2014 | ||
Receipts |
Expenditures |
Receipts |
Expenditures | ||
|
Operating Activity |
|
|
|
|
1 |
Cash receipts from product sales |
369 278 844,00 |
Х |
441 155 380,00 |
Х |
2 |
Payments to the suppliers |
Х |
216 473 546,00 |
Х |
282 720 608,00 |
3 |
Payments to personnel and in the name of personnel |
Х |
85 193 120,00 |
Х |
80 454 857,00 |
4 |
Other cash receipts and payments from operational activity |
5 268 219,00 |
7 210 871,00 |
5 186 029,00 |
6 315 691,00 |
5 |
Total: Net Cash Inflow/outflow from oprating activity |
65 669 526,00 |
0,00 |
77 053 253,00 |
|
|
Investment Activity |
|
|
|
|
6 |
Purchase and sale of fixed assets |
0,00 |
39 061 987,00 |
0,00 |
16 334 000,00 |
7 |
Purchase and sale of intangible assets |
0,00 |
0,00 |
0,00 |
0,00 |
8 |
Purchase and sale of of lonf-term and short-term investments |
0,00 |
0,00 |
0,00 |
0,00 |
9 |
Other cash receipts and payments from investment activity |
0,00 |
0,00 |
0,00 |
0,00 |
10 |
Total: Net Cash Inflow/outflow from investment activity |
-39 061 987,00 |
|
-16 334 000,00 |
|
|
Financial Activity |
|
|
|
|
11 |
Received and paid interests |
7 382,00 |
1 560 825,00 |
11 497,00 |
671 311,00 |
12 |
Received and paid dividends |
82 942,00 |
3 629 862,00 |
67 174,00 |
550 090,00 |
13 |
Cash receipts from share issue and other instruments, connected with equity |
0,00 |
0,00 |
0,00 |
0,00 |
14 |
Cash payment and share redemption |
0,00 |
0,00 |
0,00 |
0,00 |
15 |
Cash receipts and payments on long-term and short-term credits and loans |
17 441 623,00 |
13 760 157,00 |
15 089 878,00 |
4 996 349,00 |
16 |
Cash receipts and payments on financial leasing |
0,00 |
0,00 |
0,00 |
0,00 |
17 |
Other cash receipts and payments on financial activity |
0,00 |
0,00 |
0,00 |
0,00 |
18 |
Total: Net Cash Inflow/outflow from financial activity |
-1 418 897,00 |
|
8 950 799,00 |
|
|
Taxation |
|
|
|
|
19 |
Profit (income) provision |
Х |
610 585,00 |
Х |
576 266,00 |
20 |
Other taxes provision |
Х |
51 614 054,00 |
Х |
55 578 113,00 |
21 |
Tax provision - Total (line 190+200) |
Х |
52 224 639,00 |
Х |
56 154 379,00 |
22 |
Total: net cash inflow/outflow from financial-economic activity |
51 087 977,00 |
|
13 515 673,00 |
|
23 |
Balance of currency exchage difference made up as a result of revaluation of funds in foreign currency |
1 441 882,00 |
|
1 828 691,00 |
|
24 |
Funds at the beginning of the year |
31 969 186,00 |
|
16 624 822,00 |
|
25 |
Funds at the end of the year |
6 378 492,00 |
|
31 969 186,00 |
|
Chairman of the Executive Board
Chief Accountant
Attachment 11
Statement of changes in the equity in 2015
№
|
Items |
The components of capital |
Total equity | ||||||||
Equity of the owners of the company | |||||||||||
Share capital |
Emissive income |
Retained eartnings |
Exchange differences on translation of foreign subsidiaries |
Financial assets available-for-sale |
Results of effective cash flow hedges |
Reserve fund |
Total equity owners of the company |
Non-controlling interest | |||
1 |
Balance as of 31.12.2014* |
24996180,0 |
0,0 |
40115816,0 |
|
0,0 |
|
185648429,2 |
250760425,2 |
|
250760425,2 |
2 |
Issue of the securities |
|
|
Х |
|
Х |
|
Х |
0,0 |
|
0,0 |
3 |
Revaluation of long term assets |
Х |
Х |
Х |
|
Х |
|
65472355 |
65472354,7 |
|
65472354,7 |
4 |
Currency exchange differences in the formation of the УК |
Х |
|
Х |
|
Х |
|
Х |
0,0 |
|
0,0 |
5 |
Addition to surplus |
X |
X |
0,0 |
|
X |
|
0.0 |
0,0 |
|
0,0 |
6 |
Profit / loss of current year |
X |
X |
-26206960,80 |
|
X |
|
X |
-26206960,8 |
|
-26206960,8 |
7 |
Gratis received property |
X |
X |
X |
|
X |
|
126597.0 |
126597.0 I |
|
126597.0 |
8 |
Dividends accrued |
X |
X |
583841,3 |
|
X |
|
X |
583841,3 |
|
583841,3 |
9 |
Other sources of equity |
|
|
-50432352,0 |
|
|
|
-51930,9 |
-50484282,9 |
|
-50484282,9 |
10 |
Increase (+) or decrease (-) equity |
0,0 |
0,0 |
-76055471,5 |
|
0,0 |
|
65547020,7 |
-10508450,8 |
|
-10508450,8 |
11 |
Balance as of 31.12.2015 * |
24996180,0 |
0,0 |
-35939655,5 |
|
0,0 |
|
251195449,9 |
240251974,4 |
|
240251974,4 |
Chairman of the Executive Board
Chief Accountant
NOTE TO THE FINANCIAL STATEMENTS
Fixed Assets
1. The revaluation as of January 1 is not accepted for IFRS purposes. Revaluation carried out as of 01.01.2014, 01.01.2015, 01.01.2016 by an appraiser is accepted for the transformation.
2. Depreciation was not recalculated as the fixed assets without residual value were revalued. Based on the new residual value as well as the changes in the useful life the fair value was accepted in the balance sheet.
3. The depreciation method used is straight line writ-off.
4. Devaluation of the fixed assets is considered.
5. Fixed assets leased out are recorded in the form of Real Estate Investment.
6. We consider the situations, which, despite the similar requirements of NSAS (National Standards of Accounting), in practice, can cause additional adjustments, such as:
analysis of the low-cost, relatively short-term inventories and household accessories showed that they are likely to be attributed to the fixed assets.
Financial Instruments
1. Evaluation of the purchased investments using the equity method.
2. Discounting of long-term payables.
3. Financial investments were reclassified.
Inventories
For inventories transformation adjustments included a write-off of inventories down to net realizable value (and in slow-moving inventories - creation of a 100% reserve if the net realizable value is zero).
Receivables
Accounts receivable is presented in the balance sheet net of allowance for doubtful debts and for its assessment of commonly used valuation method based on the terms of payment. Also deferred long-term debt reserve has been created.
Liabilities
1. On deferred payables amortized cost at the refinancing rate of the Central Bank (2013 -11%; 2014 -10%, 2015 - 9%).
2. It reflects the long-term financial liabilities at amortized cost.
Intangible Assets
Initial recognition of intangible assets according to the IFRS and NSA, in some cases differs (for example, intangible assets contributed as a contribution by the founders, according to the NSA are accepted at a cost of "a coherent evaluation", and in accordance with IFRS - at a fair value).Thus, the cost of the intangible assets, recognized in the accounting according to IFRS and NSA, differs and adjustment was required (were written-off).
Deferred taxes
1. For the calculation of deferred taxes according to IFRS balance method was used, involving the calculation of temporary differences based on the values of assets and liabilities at the balance sheet dates.
2. Change in deferred taxes takes place throughout the year in correspondence with account of profits and losses (profit and loss) or capital account (of changes in equity).