1 / 21

Merged entities : - “Electrosvyaz” of Adygeya Republic” PJSC

Overall results of “UTK” PJSC activity for the year 2002 according to International Accounting Standards (IAS). 2.

hedva
Download Presentation

Merged entities : - “Electrosvyaz” of Adygeya Republic” PJSC

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Overall results of “UTK” PJSC activity for the year 2002 according to International Accounting Standards (IAS)

  2. 2 “Southern Telecommunications Company” PJSC is the largest operator in the Southern Federal District of the Russian Federation providing various telecom services (local, domestic and international long-distance telephony, Internet access, data transmission, lease of channels and others) for the first time presents the statement formatted IAS. The Company’s financial statement is maintained its accounting records in accordance with the Russian accounting regulations under the historical cost convention. These statutory accounting reports have been adjusted to present the accompanying financial statements in accordance with IAS. The Company’s financial statement have been audited by Independent Auditor “Ernst and Young Vneshaudit”.

  3. 3 The Company presented financial statement with view of past reorganization and united consolidated mego-regional entities indices as well as its subsidiaries.

  4. 4 Merged entities: - “Electrosvyaz” of Adygeya Republic” PJSC - “Svyazinform” of Astrakhan Region” PJSC - “Volgogradelectrosvyaz” PJSC - “KabBalktelecom” PJSC - “Electrosvyaz” of Kalmykiya Republic” PJSC - “Karachaevo-Cherkesskelectrosvyaz” PJSC - “Rostovelectrosvyaz” PJSC - “Sevosetinelectrosvyaz” PJSC - “Electrosvyaz” of Stavropol Region” PJSC

  5. 5 • All consolidated regional entities have been consolidated on line-by-line basis without change balance cost of any assets or liabilities. Significant intercompanies balances and transactions have been eliminated. • Amounts of consolidated regional entities’ assets and liabilities have been transferred in “UTK” PJSC financial statement. • As a result of merger it has not been accounted new assets and liabilities.

  6. 6 The Company has accounted for the merger based on the principles of uniting of interests as described in IAS 22 “Business Combinations”. In applying this method, the Company has reflected amounts in the consolidated financial statements at their historical carrying amounts as if the entities had been combined from January 1, 2002, the earliest period presented.

  7. 7 Subsidiaries “Autocenter-Yug” CJSCTransport 100% “Armavirskiy Zavod Svyazi” CJSC Production of cable 100% “Health care complex “Orbita” CJSC Recreation services 100% “CMTO” CJSC Supply of materials 100% “Yugsyazstroy” CJSCConstruction services 100% “Telesot-Alaniya” CJSCCellular telecommunication services 53% “Stavtelecom named after V.I. Kuzminov” PJSC Local, domestic telephony, data transfer 51% “Intmashservice” OJSCRepair and maintenance of telecommunication equipment 100% “Factorial” OJSC Information and intermediary services, consulting 100%

  8. 8 All financial indices of subsidiaries and “UTK” PJSC branches are included to the Company’s financial statement. The Company’s management decided to transform only substantial companies' financial statement in IAS due to numerous subsidiaries and branches. Others subsidiaries and Company's branches have been included in IAS by the Russian Financial Reporting results. The main criterion determined transformation subsidiaries’ statement was revenues importance, net profit before tax, long-term receivable, short-term receivable and total amounts assets of affiliated company. Importance of net assets was criterion for dependent companies. For financial statement according to IAS we determined a level of importance amounted 0.8% from “UTK” PJSC combined inflated revenues for the year 2002, amounted to RUR 100 mln.

  9. 9 The accompanying Consolidated Financial Statement prepared in accordance with IAS taking into account acquisition costs and adjusted in accordance with IAS 29 “ Financial Reporting in Hyperinflationary Economies”.

  10. 10 The main guidelines followed in adjusting the consolidated financial statement to current purchasing power are: -all amounts are stated in terms of the measuring unit current at December 31, 2002; -monetary assets and liabilities at December 31, 2002 are not restated as they are already expressed in terms of the monetary unit current at December 31, 2002; -non-monetary assets and liabilities which are not carried at amounts current at December 31, 2002 and shareholders’ equity are restated by applying the relevant conversion factors; -indexation adjustments to property, plant and equipment applicable to prior periods are credited to “Retained earnings and other reserves” in the accompanying balance sheet; -all items in the consolidated statements of income and of cash flows are adjusted by applying appropriate conversion factors.

  11. 12 Results of “UTK” PJSC activity for the year 2002 according to IAS Company’s revenue for the year 2002 reached RUR 11 885 370 ths. anddistributed in the followings:

  12. 11 Fixed assets recognition “UTK” PJSC fixed assets have been transferred in IAS with use of simplified models of shifting. Fixed assets of two branches have been included in the Company's financial statement from fixed account register.

  13. 13 Company’s operating expenses for the year 2002

  14. 14 Results of activity in accordance with IAS ØRevenue from core activityRUR 891 966 ths. ØNet profitRUR 1 046 116 ths. ØEBITDARUR 4 710460 ths. Ø     EBITDA margin 39.6% ØOwn assets of shareholders taking into account inflation effect on the authorized capital amounting to RUR 1 741 475 ths., on 31.12.2002 reach RUR 12 404397ths. ØRevenue per 1 share reached RUR 0,30. ØRetained income and other reserves correspond to assets minus commitments and authorized capital of shareholder own assets reach RUR 9 365143ths.

  15. 15 Subsequent eventsand bargains New system of settlements with “Rostelecom” PJSC Under the planned changes, full consideration is expected to be given to the cost of “Rostelecom” PJSC carrying and benefits to the Company in terminating domestic long-distance traffic. Such system will increase the transparency and timeliness of settlements.

  16. 16 Subsequent eventsand bargains Sale of “Kuban GSM”- stake On December 28, 2001 “UTK” PJSC and “Mobile TeleSystems” PJSC entered into preliminary agreement for the sale of the Company’s 24% stake in “Kuban GSM” CJSC. The sale was completed in March 2002 for USD 33.6 million (approximately 1 billion rubles).

  17. 17 Subsequent eventsand bargains Implementation of Oracle On May 28, 2003, the Board of Directors approved an agreements with “Otkritiye Technologii 98” CJSC to purchase Oracle E-Business Suite for the amount of USD 21, 707 thousand (approximately 689 944). Acquisition requirement is caused by: -enhancement of a management efficiency by financial and human resources -enhancement of the control and the account of financial and economic operations enhancement of transaction speed and accuracy

  18. 18 Subsequent eventsand bargains New agreements with “RTC-Leasing” PJSC. In 2003 the Company concluded several agreements with “RTC-Leasing” PJSC. Cost of equipment together with installation and other services subject to capitalization acquired under these agreements amounted to approximately 1,756 million rubles, and related undiscounted future lease payments amounted to approximately 3 068 million rubles.

  19. 19 Subsequent eventsand bargains Agreement Of Equipment Insurance On March 28, 2003 the Company concluded an insurance agreement with “Rosgosstrakh-Yug” OPJSC on insurance of electronic equipment for the period of one year. The total amount of insurance is 5,281,346.

  20. 20 The conclusions and assumptions relative to forecast of forthcoming events and involve risks, uncertainties, other factors, which may cause results to differ materially from those set forth in this presentation. Such risks comprise the changes of the Company's activity and future trends of its development; economic and political circumstances in Russia; future and existing regulations of the Russian branch of communications; the Russian legislation; as well as influences of competitiveness and other factors. Taking into account those described above the Company doesn’t recommend to rely on any statements concerning the forecast of Company’s future operations.

  21. Thank you for your time !

More Related