STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013

Organization Name: Almaty Electric Power Stations JSC
Type of activity of the organization: Production of electricity and heat (40105)
Legal form: Joint-stock Company
Legal address of the organization: 7 Dostyk Ave., Almaty

 (thousand tenge)

Assets	December 31, 2013	December 31, 2012
Non-current assets
Fixed assets	63 634 331	61 222 662
Intangible assets	160 170	199 461
Other non-current assets	2 486 923	920 208
Total non-current assets	66 281 424	62 342 331
Current assets
Inventory management	6 558 649	6 471 084
Accounts receivable	4 517 657	5 756 343
Cash and cash equivalents	2 255 057	1 836 071
Overpayment of current corporate income tax	626 083	1 192 590
Total current assets	13 957 446	15 256 088
TOTAL ASSETS	80 238 870	77 598 419
CAPITAL
Share capital	30 212 475	30 212 475
Retained earnings	25 381 060	19 903 637
Other reserves	(155 963)
TOTAL EQUITY	55 437 572	50 116 112
COMMITMENTS
Non-current liabilities
Reserve for recovery of ash dumps	508 248	121 031
Employee benefit obligations	723 325	606 143
Deferred tax liabilities	3 125 332	1 944 219
Loans	8 277 072	9 159 534
Total non-current liabilities	12 633 977	11 830 927
Current liabilities
Reserve for recovery of ash dumps	–	244 059
Employee benefit obligations	43 155	31 750
Loans	6 247 991	2 993 315
Provisions for liabilities and expenses	68 000	135 507
Accounts payable	4 708 757	11 947 849
Other taxes payable	1 099 418	298 900
Total current liabilities	12 167 321	15 651 380
TOTAL LIABILITIES	24 801 298	27 482 307
TOTAL LIABILITIES AND EQUITY	80 238 870	77 598 419

STATEMENT OF COMPREHENSIVE INCOME

as of December 31, 2013

                                                                                       (thousand tenge)

	2013.	2012.
Revenue	48 694 302	47 013 672
Cost of sales	(40 400 278)	(39 393 540)
GROSS PROFIT	8 294 024	7 620 132
General and administrative expenses	(1 897 000)	(1 787 430)
Other operating income	1 542 037	1 085 891
Other operating expenses	(59 572)	(187 423)
OPERATING RESULTS	7 879 489	6 731 170
Financial income	45 097	73 348
Financial expenses	(872 213)	(830 046)
PROFIT BEFORE TAX	7 052 373	5 974 472
Income tax expense	(1 504 950)	(1 270 302)
Profit for the year	5 547 423	4 704 170
Other comprehensive loss	(155 963)
Other comprehensive loss for the year	(155 963)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	5 391 460	4 704 170

 

CASH FLOW STATEMENT

as at 31 December 2013
(indirect method)

(thousand tenge)

Naming of indicators	2013.	2012.
Cash flow from operating activities
Profit before tax	7 052 373	5 974 472
Adjustments for:
Depreciation and amortisation	5 199 749	4 440 426
Loss on disposal of property, plant and equipment	21 061	148 800
Cost of current services	17 634	38 356
(Recovery)/accrual of provision for upcoming expenses and payments	(67 507)	68 000
(Recovery)/accrual of inventory allowance	(276 849)	(156 000)
Reversal of provision for impairment of accounts receivable and other non-current assets	(10 209)	(1 561)
Financial expenses	872 213	830 046
Cash flows from operating activities before changes in working capital	12 808 465	11 342 539
Decrease/(increase) in accounts receivable	146 321	506 928
Decrease/(increase) in inventories	189 284	2 757 008
Decrease/(increase) in accounts payable	(479 583)	(4 399 961)
Increase/(decrease) in taxes payable	1 043 187	196 035
Employee benefits paid	(78 691)	(72 006)
Provisions paid for liabilities and expenses		(970 000)
Cash generated from operating activities	13 628 983	9 360 543
Income tax paid		(2 276 622)
Interest paid	(901 690)	(1 134 602)
Net cash generated from operating activities	12 727 293	5 949 319
Cash flows from investing activities
Purchase of fixed assets	(14 591 817)	(10 776 062)
Acquisition of intangible assets		(4 803)
Short-term deposits with banks	1 102 574
Proceeds from sale of property, plant and equipment	81 680
Net cash used in investing activities	(13 407 563)	(10 780 865)
Cash flows from financing activities
Proceeds from the share issue		3 028 715
Loan receipts	7 141 809	9 342 759
Repayment of loans	(4 772 553)	(11 715 814)
Dividends paid to shareholders	(1 270 000)
Net cash generated from financing activities	1 099 256	655 660
Net (decrease)/increase in cash	418 986	(4 175 886)
Cash and cash equivalents at the beginning of the year	1 836 071	6 011 957
Cash and cash equivalents at the end of the year	2 255 057	1 836 071

STATEMENT OF CHANGES IN EQUITY
at 31 December 2013

(thousand tenge)

	Share capital	Other reserves	Retained earnings	Total
Balance as of January 1, 2012	27 183 760		16 399 467	43 583 227
Profit for the year			4 704 170	4 704 170
Share issue	3 028 715			3 028 715
Dividends declared			(1 200 000)	(1 200 000)
Balance as at 31 December 2012	30 212 475		19 903 637	50 116 112
Profit for the year			5 547 423	5 547 423
Other comprehensive income		(155 963)		(155 963)
Total comprehensive income for the year		(155 963)	5 547 423	5 391 460
Dividends declared			(70 000)	(70 000)
Result of transactions with a shareholder on non-market terms				0
Balance as at 31 December 2013	30 212 475	(155 963)	25 381 060	55 437 572

 

Acting Chairman of the Management Board: Ismukhambetov G. Zh.

Chief Accountant: Zh. O. Nukusheva

INDEPENDENT AUDITOR’S REPORT

To the Shareholder and Board of Directors of Almaty Electric Power Stations JSC

We have audited the accompanying financial statements of Almaty Electric Power Stations JSC, which comprise the statement of financial position as at 31 December 2013, and the statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. key accounting policies and other explanatory information.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility
It is our responsibility to express an opinion on these financial statements based on our audit. 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 about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the 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 relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’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 the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of Almaty Electric Power Stations JSC as at 31 December 2013, and its financial performance and cash flows for the year then ended, in accordance with International Financial Reporting Standards.

February 20, 2014
Almaty, Kazakhstan

Approved and signed:		Signed by:
Dana Inkarbekova		Азамат Конратбаев
Managing Director		Audit Partner
PricewaterhouseCoopers LLP		(Institute of Chartered Accountants ACCA Certificate No. 00770863 dated May 8, 2003)
(General State License of the Ministry of Finance of the Republic of Kazakhstan No. 0000005 dated October 21, 1999)
Signed by:
Irina Taskaeva
Executive Auditor (Qualified Auditor’s Certificate No. 00000465 dated November 14, 1998)