VOLZHSKY ABRASIVE WORKS. ANNUAL REPORT (January 2009 December 2009)

VOLZHSKY ABRASIVE WORKS ANNUAL REPORT 29 21 (January 29 December 29)

VOLZSKY ABRASIVES WORKS Board of Directors M M Murugappan K Srinivasan S V Kostrov N Kishore P R Ravi S L Petrosyan V Ramesh Company Secretary G E Drokanov Independent Auditors Fikon Ltd. Volgograd, Russia Registered Office 18 Highway No.6 Volzhsky, 4413 Volgograd Region, Russia Registered Number OGRN 1234219596

Подготовлено с использованием системы ГАРАНТ Balance sheet as of 31st December 29 Codes OKUD Form No. 1 711 Data ( year, month, day) 29 Organization JSC Volzhsky Abrasive Plant per OKPO 22931 Taxpayer's identification number INN 3435467 Type of activity Manufacturing of abrasive articles OKVED 26.81 Organizational-legal form / property form Joint-Stock Company / Joint private and foreign property er OKOPF/OKFS 47 Units: / rupee as per OKEI 384/385 12 31 34 Intangible assets Fixed assets Asset 1 I. FIXED ASSETS 2 1/1/29 12/31/29 rupee rupee 3 4 Unfinished construction 13 43,669 67,687 48,63 Remunerative investments into tangible property 135 Long-term financial investments 14 335 519 184 Deferred tax assets 145 514 797 818 Other fixed assets Total for section I 19 281,868 436,895 39,95 II. CURRENT ASSETS Stock 21 373,816 579,415 366,54 including: raw materials and other concurrent valuables 211 21,326 312,55 187,823 nurtured and fattened animals 212 unfinished production expenses 213 58,264 9,39 65,221 finished products and resale goods 214 89,824 139,227 84,625 dispatched merchandise 215 future periods expenses 216 24,42 37,823 28,835 other stocks and expenses 217 11 12 18 237,332 28 367,865 16 26,824 25 44,277 74,498 285 1,268 48,353 568,81 291,126 11,93 131,169 44,694 Added value tax for purchased values Accounts receivable (expected to be paid in more 22 42,17 65,364 43,829 67,935 than 12 months after the reporting date) including consumers and customers Accounts receivable (expected to be paid in 23 231 51 79 4 62 12 months after the reporting date) 24 333,982 517,672 399,624 including consumers and customers 241 257,635 399,334 323,272 Short-term financial investments 25 2,5 Cash assets 26 68,164 15,654 123,119 Other current assets 27 1,24 Total for section II 29 818,183 1,268,184 936,856 BALANCE 3 1,1,51 1,75,79 1,246,761 619,417 51,72 3,875 19,834 1,922 1,452,127 1,932,48 The Indian Rupee equivalent of the figures given in foreign currency have been converted at 1 RUB = INR 1.55

Подготовлено с использованием системы ГАРАНТ Liability 1/1/29 rupee 1 2 3 III. CAPITAL AND STOCKPILES Chartered capital 41 3,61 5,582 Own shares, bought-out from shareholders 411 Surplus capital 42 211,762 328,231 Capital stock 43 6 93 including: stockpiles, formed in accordance with legislation 431 stockpiles, formed in accordance with constituent instruments 432 6 93 Undistributed profits (outstanding losses) 47 657,24 1,18,722 Total for section III 49 873,23 1,353,465 IV. LONG-TERM LIABILITIES Lend and credits 51 Deferred tax liabilities 515 12,31 18,648 Other long-term liabilities 52 Total for section IV 59 12,31 18,648 V. SHORT-TERM LIABILITIES Lends and credits 61 25,169 39,12 Account payable 62 187,142 29,7 including: suppliers and contractors 621 131,819 24,319 indebtness to the company's personnel 622 14,57 22,486 indebtness to the governmental off-budget funds 623 3,28 4,972 tax and penalties liability 624 2,728 32,128 other creditors 625 16,88 26,164 Indebtness to the sharers (originators) in terms of incomes payments 63 2,56 3,884 Future periods incomes 64 Stockpiles for forthcoming expenses 65 Other short-term liabilities 66 Total for section V 69 214,817 332,966 BALANCE 7 1,1,51 1,75,79 Форма 711 с. 2 12/31/29 rupee 4 3,61 211,762 6 6 88,335 1,96,298 11,927 11,927 19,779 63,18 16,637 3,999 13,733 12,32 3,757 25, 138,536 1,246,761 5,582 328,231 93 93 1,364,519 1,699,262 18,487 18,487 17,157 97,817 25,787 6,198 21,286 19,68 5,823 38,75 214,731 1,932,48 Director (signature) S.V. Kostrov (Print full name) 2 1 Chief accountant (signature) E.N. Shaykina (Print full name) The Indian Rupee equivalent of the figures given in foreign currency have been converted at 1 RUB = INR 1.55

Подготовлено с использованием системы ГАРАНТ Appendix to the Order of the Ministry of Finances of the Russian Federation of July 22, 23 No. 67н (taking into consideration the Order of State Statistics Committee of the Russian federation of the Ministry of Finances of the Russian Federation of November 14, 23No. 475/12н) The Profit and Loss Account for January - December 2 9 OKUD form No. 4 Data (year, month, day) Organization JSC Volzhsky Abrasive Plant s per OKPO Taxpayer's identification number INN Type of activity Manufacturing of abrasive articles per OKVED Organizational-legal form / property form Joint-Stock Company / Joint private and foreign property er OKOPF/OKFS Units: / rupee as per OKEI Codes 712 29 22931 3435467 26.81. 12 31 47 34 384/385 Parameter description 1 Incom and expenditures from common activities code 2 in the financial In the same year period of the past year rupee rupee 3 4 Proceeds (net) from sales of goods, products, work and services (excluding VAT, excises and other compalsory payment) Prime cost of the sold goods, production, works, services Overall profit Commercial Expenses Management Expenses Profit(Loss) on sales Other Profits and Expenses Income on Fin Instruments Interest on fin borr/oper Div from Investments Other Profits Other Expenses Postponed tax activities Postponed applications Pofit tax (Current) Profit(Loss) before tax 1 2 29 3 4 5 6 7 8 9 1 14 141 142 15 2,7,365-1,262,856 87,59-147,974-187,376 472,159 949-1,289 26,92-94,74 43,999 39-1,92-17,84 3,29,66-1,957,427 1,251,639-229,36-29,433 731,846 1,471-1,998 41,726-146,847 626,198 65-2,948-167,96 2,68,528-1,465,997 62,531-139,433-183,819 279,279 169-379 49,246-91,879 236,436-82 1,877-74,392 3,26,218-2,272,295 933,923-216,121-284,919 432,882 262-587 76,331-142,412 366,476-1,243 2,99-115,38 Total Profit(Loss) for a/c period NOTE/ Fixed tax liabilities (assets) Initial earnings (loss) per share Deluted earnings (loss) per share 19 2 294,683 28,623.146.146 456,759 44,366 163,119 16,572.. 252,834 25,687.. The Indian Rupee equivalent of the figures given in foreign currency have been converted at 1 RUB = INR 1.55

Форма 712 с. 2 Parameter in the financial In the same year period of the past year description code profit loss profit loss 1 2 Interpretation of some profit and loss rupee rupee rupee 3 4 5 6 rupee Fines and penalties, recognized by cort of arbitration Profit (loss) of prior years 8 12 928 643 1,438 997 2 3 1,688 244 2,616 378 Compensation of damages because of improper discharge of obligations Exchage difference in foreign currency transactions 816 1,265 Contribution in valuation reserves х x 1,542 2,39 12 23,455 х 19 36,355 x 15,254 23,644 Writing off receivables and payables with expiration of limitation 435 674 1,13 1,71 229 355 397 615 Head S.V.Kostrov Chief Accountant E.N.Shaykina (signature) (Print full name) (signature) (Print full name) 2 1 75533 The Indian Rupee equivalent of the figures given in foreign currency have been converted at 1 RUB = INR 1.55

Подготовлено с использованием системы ГАРАНТ Organization Taxpayer's identification number Type of activity Organizational-legal form / property form Joint-Stock Company /Joint private and foreign property Units: / rupee Parameter description Appendix to the Order of the Ministry of Finances of the Russian Federation of July 22, 23 No. 67н (taking into consideration the Order of State Statistics Committee of the Russian federation of the Ministry of Finances of the Russian Federation of November 14, 23No. 475/12н) Report of changes of capital forа 2 9 г. Codes OKUD Form No. 3 Data ( year, month, day) 29 12 31 JSC Volzhsky Abrasive Plant per OKPO 22931 INN 3435467 Manufacturing of abrasive articles per OKVED 26.81 Code 1 2 Authorized capital as per OKOPF/OKFS as per OKEI Balance as of December, 31 of the y previous to the year 1 4, 6,2 211,762 328,231 6 93 613,983 951,674 1,165,76 2 8 (previous year) Changes in the account policy 11 х x х x х x Results of re-evaluation of objects of the fixed assets 12 х x х x х x Balance as of January, 1 of the previous year 2 4, 6,2 211,762 328,231 6 93 613,983 951,674 1,165,76 Result of the translation of foreign currencies 21 х x х x х x Net profit 29 х x х x х x 163,57 252,738 163,57 Dividends 3 х x х Allocations to the reserve fund 4 х x х Increase in capital value owing to: 5 additional share issue 51 х increase of share denomination 52 х reorganization of the juridical person 53 х I. Changes of capital 4 5 х x -37,928-58,788-37,928 х x х x х 713 47 34 384/385 rupee rupee rupee rupee rupee 3 Added capital x x x x x Profit and loss surplus Not allocated profit (uncovered loss) 6 7 x х x х x Total 1,86,844 1,86,844 252,738-58,788 Decrease in capital value owing to: 6 decrease in share par value 61 х x х x х x reduction of shares' amount 62-399 -618 х x х x х x reorganization of the juridical person 63 х x х x payments according to the resolu 64-81,872-126,92-81,872 Balance as of December, 31 of the previous year 7 3,61 5,582 211,762 328,231 6 93 657,24 1,18,722 1,27,946 2 9 г. (financial year) Changes in the account policy 8 х x х x х x Results of re-evaluation of objects of the fixed assets 9 х x х x х x Balance as of January, 1 of the year 1 3,61 5,582 211,762 328,231 6 93 657,24 1,18,722 1,27,946 Results of the translation of foreign currencies 11 х x х x х x Net profit 12 х x х Dividends 13 х x х x x х x 294,149 455,931 294,149 х x -68,949-16,871-68,949-126,92 1,872,316 1,872,316 455,931-16,871 The Indian Rupee equivalent of the figures given in foreign currency have been converted at 1 RUB = INR 1.55

Подготовлено с использованием системы ГАРАНТ Form 713 p. 2 Parameter Authorized Added Profit and loss description Code capital capital surplus 1 2 Allocations to the reserve fund 11 х x х x Increase in capital value owing to: additional share issue 121 х x х x х increase of share denomination 122 х x х x х reorganization of the juridical person 123 х x х x recalculation of deferred tax liabilit 124 x x x Decrease in capital value owing to: decrease in share par value 131 х reduction of shares' amount 132 reorganization of the juridical person 133 payments according to the resolu 134 х x х x х x -4,24 recalculation remitted tax asset 135 Balance as of December, 31 of the re year 14 rupee rupee rupee rupee rupee х x х x х x х х 3 x х 4 x x x x 2,5 3,61 5,582 211,762 328,231 6 93 88,335 x х х х 5 x x x x х x -86 Not allocated profit (uncovered loss) 6 x x 3,18-6,237-133 1,364,519 25-4,24-86 1,96,298 Total 7 3,18-6,237-133 1,699,262 II. Working balances Parameter Balance Received Used Balance description code rupee rupee rupee rupee 1 2 3 4 5 Working balances formed in accordance with the legislation: 15 6 (working balance) data of the previous year 151 data of the financial year 152 (working balance) data of the previous year 153 data of the financial year 154 Working balances formed in accordance with constituent documents: 16 reserve fund (working balance) data of the previous year 161 6 93 6 data of the financial year 162 6 93 6 93 93 (working balance) data of the previous year 163 data of the financial year 164 Valuation reserves: reserve on doubtful debt 17 (working balance) data of the previous year 171 15,254 23,644 15,254 data of the financial year 172 15,254 23,644 9,239 14,32-7,697-11,93 16,796 23,644 26,34 (working balance) data of the previous year 173 data of the financial year 174 (working balance) data of the previous year 175 data of the financial year 176 The Indian Rupee equivalent of the figures given in foreign currency have been converted at 1 RUB = INR 1.55

Подготовлено с использованием системы ГАРАНТ Form 713 p. 3 rupee rupee rupee rupee 1 2 3 4 5 Equalization reserve: Stockpiles for forthcoming expenses 18 (working balance) data of the previous year 181 data of the financial year 182 25, 38,75 25, 6 38,75 (working balance) data of the previous year 183 data of the financial year 184 Parameter description code 1 2 References Balance as of the beginning of the financial year 1) Net assets 2 873,23 1,353,465 From the budget for the financial for the previous year year rupee rupee 3 4 5 6 2) Received for: expenses for usual activity total 21 41 636 424 657 including: maintenance of mobile resources 211 41 636 4 62 financing of payments to participants cleaning-up after the accident on the C 212 24 37 compensation of the average salary a of the Government of the Russian Fed 213 compensation of benefits of citizens f payment of housing and communal se 214 capital investments in non-circulating assets 22 including: 3 rupee Balance as of the end of the accounting period 4 rupee 1,95,58 1,697,34 From non-budget fund for the financial for the previous year year rupee rupee Director S.V. Kostrov Chief Accountant (signature) (Print full name) (signature) 2 1 E.N. Shaykina (Print full name) The Indian Rupee equivalent of the figures given in foreign currency have been converted at 1 RUB = INR 1.55

Подготовлено с использованием системы ГАРАНТ Appendix to the Order of the Ministry of Finances of the Russian Federation of July 22, 23 No. 67н ideration the Order of State Statistics Committee of the Russian federation of the Ministry of Finances of the Russian Federation of November 14, 23No. 475/12н) Organization for Taxpayer's identification number Type of activity Organizational-legal form / property form Joint-Stock Company / Joint private and foreign property Units: / rupee Cash flow statement year 2 9 OKUD form No. 4 Data (year, month, day) JSC Volzhsky Abrasive Plant s per OKPO 22931 INN Manufacturing of abrasive articles per OKVED 26.81 Parameter description er OKOPF/OKFS as per OKEI 384/385 in the financial year Cash balance in the beginning of the financial year 1 68,164 15,654 16,238 Cash flow on the current activity Funds received from buyers, customers 11 2,125,347 3,294,288 2,295,614 Return of funds from budget 12 6,319 9,794 32,566 Return of funds from advance holders 13 1,581 2,451 946 Return of funds from the supplier 131 272,137 421,812 5,495 Other incomes 14 1,55,98 1,636,657 16,764 Funds for: payment for the acquired goods, services raw materials and other circulating assets 15-1,753,522-2,717,959-1,736,758 for labour remuneration 16-293,879-455,512-255,148 for payment of dividends, interests 17-65,461-11,465-39,518 for payment of taxes and dues 18-114,92-178,98-14,64 for settlements with off-budget funds 185-69,835-18,244-66,346 for handing-over to payments on account 186-12,97-2,6-13,332 for other expenses 189-1,46,585-1,622,27-149,74 Net monetary funds from the current activity 19 14,21 161,512-14,97 Cash flow on investment activity Proceeds from sale of fixed assets objects and other non-circulating assets 21 1,235 1,914 341 Proceeds from sales of securities and other financial investments 22 9,111 14,122 16 received dividends 23 Received interests 24 948 1,469 26 Earnings from repayment of loans granted to other organizations 25 code 1 2 Codes 714 29 12 31 3435467 47 16 3 rupee In the same period of the past year rupee 4 164,669 3,558,22 5,477 1,466 8,517 25,984-2,691,975-395,479-61,253-162,192-12,836-2,665-232,97-21,85 529 25 319 Acquisition of affiliated organizations 28 Acquisition of fixed assets objects, profitable investments in stocks of material and capital investments a fictitious assets 29-34,54-53,537-49,597 Acquisition of securities and other financial investments 3 Loans granted to other organizations 31 () () -76,875 Net monetary funds from investment activity 34-23,246-36,31-49,34-76,3 The Indian Rupee equivalent of the figures given in foreign currency have been converted at 1 RUB = INR 1.55

Подготовлено с использованием системы ГАРАНТ 1 2 3 Form 714 p. 2 rupee Cash flow on financial activity Earnings from issue of shares or other share securities 35 Earnings from loans and credits granted to other organizations 36 13,16 2,175 3,57 37 4 rupee 46,588 Repayment of loans and credits (without interests) 39-39,16-6,475-5, Repayment of liabilities on financial leasing 4 Financial investments 41 paid dividends 42 Net monetary funds from financial activity 41-26, -4,3 25,57 Net increase (reduction) of monetary funds and their equivalents 42 54,955 85,18-38,74 Balance of monetary funds at the end of the financial period 43 123,119 19,834 68,164 Value of influence of currency exchange rate alteration as related to ruble 44 84 1,246 9,167 Head S.V.Kostrov Chief Accountant E.N.Shaykina (signature) (Print full name) (signature) (Print full name) 2 1 The Indian Rupee equivalent of the figures given in foreign currency have been converted at 1 RUB = INR 1.55 75533-47,586-7,75 38,838-59,15 15,654 14,29

Подготовлено с использованием системы ГАРАНТ Appendix to the Order of the Ministry of Finances of the Russian Federation of July 22, 23 No. 67н sideration the Order of State Statistics Committee of the Russian federation of the Ministry of Finances of the Russian Federation of November 14, 23No. 475/12н) Appendix to the Order of the Ministry of Finances of the Russian Federation of July 22, 23 No. 67н Appendix to balance sheet for year 2 9 Codes OKUD form No. 5 Data (year, month, day) Organization JSC Volzhsky Abrasive Plant per OKPO 22931 Taxpayer's identification number Type of activity Organizational-legal form/ property form Joint-Stock Company / Joint private and foreign property Units: / rupee INN Manufacturing of abrasive articles per OKVED 26.81 s per OKOPF/OKFS as per OKEI 715 29 12 31 3435467 47 34 384/385 Fictitious assets Parameter Presence in description code the beginning of the financial year rupee Received rupee Withdrawn rupee 1 2 3 4 5 Objects of the intellectual property (exclusive rights for results of intellectual property) 1 22 34 22 including: at the patent holder for an invention, industrial sample, useful model 11 22 34 22 at the right holder for computer software, databases 12 at the right holder for integrated circuits 13 at the owner for the trade mark and service mark, name of the origin place of goods at the patent holder for 14 selection achievements 15 Organizational expenses 2 Business reputation of the organizatio 3 Presence in end of the accounting period 6 rupee 34 34 Others 4 Indicator At the beginning of the At the end of the description code financial year accounting period rupee rupee 1 2 3 4 Amortization of fictitious assets total 5 including: licenses 51 4 6 4 6 6 6 9 9 The Indian Rupee equivalent of the figures given in foreign currency have been converted at 1 RUB = INR 1.55

Подготовлено с использованием системы ГАРАНТ 2 Form 715 p. 2 1 2 3 4 5 Buildings 6 29,91 325,361 944 1,463-17 -166 21,747 Structures and transfer units 62 66,85 12,432 9,39 14,555 75,475 Machinery and equipment 63 24,915 373,418 33,46 51,863-861 -1,335 273,514 Transport 64 28,73 43,513 297 46-257 -398 28,113 Production and household equipment 65 8,521 13,28 1,55 2,333-362 -561 9,664 Plough cattle 66 () () Productive cattle 67 () () Permanent plant Other types of fixed assets 68 69 15 233 112 174 () () 262 Lands and objects of nature management 7 () () Capital investments for radical improvement of lands 71 () () Total 8 553,654 858,164 45,78 7,847-1,587-2,46 597,775 Parameter description Fixed assets Parameter Presence in description code the beginning of the financial year rupee code 1 2 Received rupee In the beginning of the financial year rupee 3 Amortization of fixed assets total 14 316,322 49,299 336,951 including: buildings and structures 141 119,95 184,597 122,177 machinery, equipment, transport 142 191,748 297,29 28,783 others 143 5,479 8,492 5,991 handed over to leasing, fixed assets - others: 15 1,313 2,35 1,313 including: Buildings 151 1,225 1,899 1,225 structures 152 working machinery 153 88 136 88 Transport 154 Withdrawn rupee In the end of the accounting period rupee 4 522,274 189,374 323,614 9,286 2,35 1,899 136 Presence in the end of the accounting period 6 rupee 326,658 116,986 423,947 43,575 14,979 46 926,551 Fixed assets transferred to mothballing 16 Fixed assets received for leasing total 17 including: 171 Immovable property objects accepted for operation and being in the process of state registration 175 FOR REFERENCE. 2 The result of re-evaluation of fixed assets objects: 18 initial (replacement) value 181 \ 182 In the beginning of the financial year rupee 3 code In the beginning of the financial year rupee 2 3 Alteration of value of the fixed assets in result of additional building and additional equipping reconstruction and partial liquidation 185 19,591 The Indian Rupee equivalent of the figures given in foreign currency have been converted at 1 RUB = INR 1.55 code In the d of the previous year rupee 4 In the beginning of the of the financial year rupee 4 3,366

Подготовлено с использованием системы ГАРАНТ Profitable investments in stocks of materials and capital equipment Parameter description code Presence in the beginning of the financial year rupee Form 715 p. 3 Received 1 2 3 4 Property for handing over for leasing 19 Property granted upon a lease contract 2 rupee 5 Withdrawn rupee Presence in the end of the accounting period rupee 6 Others 21 Total 22 code In the beginnign of the accounting period In the end of the accounting period rupee rupee 1 2 3 Amortization of profitable investments in stocks of materials and capital equ 25 Type of jobs description Expenses for scientific-research, test-design and other technological jobs code Presence in the beginning of the financial year rupee Received rupee rupee 1 2 3 4 5 Total 31 including: 311 4 Withdrawn Presence in the end og the accounting period rupee 6 Parameter description Balance in the beginning of the accounting period Received rupee rupee 1 2 3 4 Expenses on development of natural resources total 41 479 742 including: sand deposits 411 479 742 In the beginning of the financial year rupee FOR REFERENCE. 2 3 4 The sum of expenses on not completed scientific-research test-design and technological jobs 32 code In the accounting In the same periodin the same period period of the previous year of the previous year rupee rupee 2 3 The sum of expenses not given positive results on scientific-research, test-design and technological works belonging to the non-sales expenses 33 Expenses for development of natural resources code In the beginning of the financial year The Indian Rupee equivalent of the figures given in foreign currency have been converted at 1 RUB = INR 1.55 in the end of the financial year rupee rupee FOR REFERENCE. 2 3 The sum of expenses on sectors of bosom, not completed search evaluation of deposits, exploration and (or) hydrological survey and other similar jobs 45 479 742 442 The sum of expenses for development of natural resources belonging in the accounting period to the non-sale expenses as ineffective 46 code code -37 4 Withdrawn 5 rupee -57-37 -57 442 685 () () () () in the end of the accounting period rupee 4 685 Balance in the end of the accounting period 442 6 rupee 685

Подготовлено с использованием системы ГАРАНТ Parameter description code as of the beginning of the financial year 1 2 Financial investments rupee Form 715 p. 4 rupee Others 535 Total 54 335 519 184 285 2,5 From the total amount of financial investments having current market value: Investments in authorized (share) capitals of other organizations total including ones of affiliated and 55 14 22 178 276 economic companies 551 Government and municipal securities 555 Securities of other organizations total 56 including debt securities (stocks, bills of credit) 561 The Indian Rupee equivalent of the figures given in foreign currency have been converted at 1 RUB = INR 1.55 3 4 short-term as of the beginning of the financial year as of the end of the accounting period rupee rupee 5 6 Investments in authorized (share) capitals of other organizations total 51 335 519 184 285 including ones of affiliated and dep economic societies 511 Government and municipal securities 515 Securities of other organizations total 52 2,5 including debt securities (stocks, bills of credit) 521 2,5 Granted loans 525 Deposits 53 Others 565 long-term as of the end of the accounting period Total 57 14 22 178 276 FOR REFERENCE. On financial investments having current market value, valuation changes due to the adjustment of evaluation On debt securities 58-1 -16 78 121 difference between initial cost and principal value is referred to the financial result of the accounting period 59 3,875 3,875 3,875

Подготовлено с использованием системы ГАРАНТ Accounts receivable and accounts payable Parameter description The Indian Rupee equivalent of the figures given in foreign currency have been converted at 1 RUB = INR 1.55 Form 715 p. 5 Balance as of the beginning of the financial year rupee 3 Accounts receivable: short-term total 6 349,236 541,316 416,419 including: settlements with buyers and customers 61 272,889 422,978 34,67 advances made 611 16,258 25,2 37,58 other 612 6,89 93,138 39,294 long-trrm total 62 51 79 4 including: settlements with buyers and customers 621 advances made 622 other 623 51 79 4 Total 63 349,287 541,395 416,459 Accounts payable: short-term total 65 212,311 329,82 113,536 including: settlements with suppliers and contractors 651 131,819 24,319 63,18 advances received 652 6,1 9,455 9,78 settlements on taxes and duties 653 2,728 32,128 13,733 credits 654 25,169 39,12 loans 655 other 656 28,495 44,167 26,915 long-term total 66 12,31 18,648 including: credits 661 loans 662 code 1 2 Total 69 224,342 347,73 113,536 Expenses on usual types of activity (on cost elements) Parameter For the financial description code year rupee 1 2 3 Balance as of the end of the accounting period rupee 4 645,449 527,14 57,44 6,96 62 62 645,511 175,981 97,817 15,159 21,286 41,718 175,981 For the previous year rupee 4 Material costs 71 1,98,884 1,73,27 1,332,188 2,64,891 Labour costs 72 34,522 472,9 281,877 436,99 Fringe benefit expenses Amortization Other expenses Total on cost elements 73 74 75 76 75,327 21,337 7,528 1,57,598 116,757 33,72 19,318 2,434,427 72,5 18,78 9,69 1,795,585 111,678 29,19 14,57 2,783,157 Changes of balances (increase [+], decrease [ ]): of work-in-process 765 6,957 1,783 18,977 29,414 deferrals 766 4,433 6,871 2,329 3,61 Equalization reserves 767 25, 38,75

Подготовлено с использованием системы ГАРАНТ Parameter description Securities 1 2 Form 715 p. 6 Balance as of the beginning of the financial year rupee 3 Received total 81 including: bills of credit 811 Pledged property 82 of it: objects of fixed assets 821 securities and other financial investments 822 other 823 code Balance as of the end of the accounting period rupee 4 Issued total 83 65,32 11,246 85,24 including: bills of credit 831 Pledged property 84 65,32 11,246 75,994 of it: objects of fixed assets 841 57,311 88,832 75,994 securities and other financial investments 842 other 843 8,9 12,414 132,122 117,791 117,791 Parameter description National assistance code 1 2 Accounting period For the same period of the previous year rupee rupee 3 4 Received budgetary funds in the financial year total 91 41 636 424 including: Maintenance of mobilization facilities 911 41 636 4 Financing of payments to the participants of clean after the accident on the Chernobyl nuclear power 912 24 compensation of the average salary according to th of the Government of the Russian Federation No. 7 913 Compensation of benefits of citizens for payment of housing and communal services 914 as of the beginning received returned of the financial in the accounting in the accounting year period period Budgetary credits total 92 including: 921 657 62 37 returned in the accounting period Director S.V. Kostrov Chief accountant E.N. Shaykina (signature) (Print full name) (signature) (Print full name) 2 1 The Indian Rupee equivalent of the figures given in foreign currency have been converted at 1 RUB = INR 1.55

EXPLANATORY NOTE FOR THE 29 REPORT OF Joint-Stock Company «Volzhsky Abrasive Works» VOLZHSKY

CONTENTS 1. BRIEF DESCRIPTION OF THE COMPANY'S STRUCTURE AND ACTIVITY... 3 2. BASIC ELEMENTS OF THE ACCOUNTING POLICY... 4 3. BASIC FACTORS INFLUENCED THE COMPANY'S ACTIVITY IN THE FINANCIAL YEAR... 5 4. AFFILIATED PERSONS... 6 5. EVENTS AFTER THE REPORTING DATE... 9 6. DATA ON ACCOUNTABLE FIGURES ACCORDING TO ACTIVITY TYPES, GEOGRAPHICAL SALE MARKETS... 9 7. USING OF NET PROFITS FOR THE COMPANY'S NEEDS... 9 8. INFORMATION ON THE COMPANY'S RESERVE FUND... 11 9. INFORMATION ON THE COMPANY'S NET ASSETS... 11 1. SOCIAL FIGURES... 12 11. INTERPRETATION OF ACCOUNTING STATEMENTS... 13 12. MAIN FINANCIAL AND ECONOMIC PARAMETERS OF THE COMPANY'S ACTIVITY IN 27... 41 13. FINAL PROVISIONS... 42

1. BRIEF DESCRIPTION OF THE COMPANY S STRUCTURE AND ACTIVITY 1.1. Management structure of the Company The supreme management body of the joint stock company is General Shareholders meeting. Management of the Company s current activity is performed by a sole executive body of the Company General Director and a collective body - Board of administration. General Director and Board of administration are accountable to the Board of Directors of the Company and General Shareholders meeting. General Director is the chairman of the Board of administration. The executive bodies terms of reference cover all current activity, excluding the activity referred to the competence of General Shareholders meeting and the Board of directors of the Company. The management is performed through the process of planning, organization, motivation and control, which is necessary to define and attain the objects of the company. 1.2. Number of shareholders, registered in the register as of December 31.12. 29. Total 81, including Natural persons 85, Legal entities 5. 1.3. Information of the Company s Authorized Capital The amount of the Company s Authorized Capital is 3,61,2 (Three million six hundred one and two hundred) (5,581,86 rupees). The Authorized Capital was paid in full and consists of Ordinary shares 549 91; Preference shares 17 33; Nominal share value 5. There is no government share (Municipal entity) in the Authorized Capital There is no special right (gold share). Number of shares bought out by the joint stock company is 2 768 (preference shares). 1.4. Branch information The Company has a branch in Moscow, registered on September 12, 27. The branch address: 117556, Moscow, Varshavskoe shosse, 9, building 1. 1.5. Information on dependent companies The Company does not have dependent companies. 1.6. Location and address of the Company: 4413, Russia, Volgograd region, Volzhsky, Avtodoroga 6, 18 1.7. Methods of accounting information consolidation The report was drawn out according to the information of the Company and its branches.

2. BASIC ELEMENTS OF THE ACCOUNTING POLICY 2.1. Assets accounting The value of objects of fixed assets over 2, (31, rupees) per unit is repaid by the depreciation charging (straight-line depreciation method) during the period of their useful life, taking into consideration the original value or current (replacement) value (in case of the revaluation) of the object of fixed assets and depreciation rates, calculated on the basis of the useful life of this object. During the financial year the depreciation charges on the objects of fixed assets are charged monthly in the amount of 1/12 of the annual sum. The depreciation on computer equipment, commissioned before 22 is charged using the coefficient 2. The depreciation on the objects of the housing stock is charged at the end of the financial year. The flow of depreciation charges is accounted at off-balance accounts. 2.2. Accounting of materials and supplies inventories. In case of the retirement of materials and supplies inventories (excluding goods which are accounted by their sale value) to the production and other types of retirement their evaluation is performed by average cost value. Before 1.1.27 the evaluation of materials and supplies inventories in case of their retirement to the production was performed according to LIFO method. 2.3. Evaluation of in-process inventory The evaluation of in-process inventory is performed by the cost of raw materials, materials, semi-processed materials and energy (in EMS). 2.4. Accounting of production costs, calculation of the production price and formation of the financial result. Costs of ordinary activities of the accounting period are divided into direct and indirect. Full actual production cost of the object is system-calculated. During one accounting period by the account debit for accounting of production costs (ac. 2, 23, 25, 26) costs of the accounting period are accumulated from the account credit for assets accounting. They are divided into direct costs, attributed to the debit of accounts 2, 25 and indirect costs, attributed to the debit of the account 23, the collective and clearing account 26. Costs of the account 26 are to be charged off at the end of the accounting period to the debit of the account 2 and to be distributed among the calculation objects at the same time. Accounts 23, 25, 26 are to be charged off to the account 2 according to production types and subdivisions. 2.5. Method (base) of indirect cost allocation among calculation objects.. Basic salaries of direct labor. 2.6. Method of business costs accounting. Business costs are accounted in full in the cost value of sold products (goods, work, services) in the accounting period when they occurred as the costs on ordinary activities. 2.7. Evaluation of finished products. The evaluation of finished products is performed by actual cost price. 2.8. Accounting of costs related to loans and credits. They are included in operating costs of that accounting period when additional costs are incurred.

3. BASIC FACTORS INFLUENCED THE COMPANY S ACTIVITY IN THE FINANCIAL YEAR In comparison with 28 in 29 the dollar rate decreased and the euro rate increased. The export structure in view of currency rate became more profitable; it significantly influenced the growth of the company income and sale profitability. The table shows the average rates of US dollar and euro taking into consideration the products sold. Curren cy Sale in according to the currency rate 28 29 Sale Average in currency rate Sale in according to the currency rate Sale in currency Table 3.1 Rubles Rate Average exchan rate ge $ 131,35,732.48 5,27,946.6 24.86 43,161,239.45 13,626,28.85 31.73 6.87 Euro 846,91,415.51 23,247,362.49 36.43 757,229,872.89 17,168,881.33 44.13 7.7 Curren cy Sale in rupees according to the currency rate 28 29 Sale Average in currency rate Sale In rupees according to the currency rate Sale in currency Average rate Rupees Rate exchan ge $ 23,15,385.34 527946,6 38,4 666,749,921.15 13,626,28.85 48,55 1,51 Euro 1,312,697,194.4 23247362,49 55,74 1,173,76,32.98 17,168,881.33 67,52 11,78 Exchange rate reduction in 2-4 quarters 29 with sufficient accounts receivable of foreign customers influenced sharp reduction of positive exchange rate in 1 quarter which in the whole was 81,612,74 in 29 (126,498,715 rupees). In 29 taxes were paid in the amount of 188,346 (291,936 rupees), it is by 61,967 (96,49 s rupees) more than in 28. The table shows paid amounts according to the tax types in 28 and 29.

Tax type Paid in 28, rub. Paid in 29, rub. Table 3.2 Rubles Changes rub. Property tax 4,83,943 536221 475,278 State duty 15376 79,417 (74,343) Charges on negative influence on environment 642757 782,61 139,34 Unified tax on imputed income 78,22 (78,22) Water tax 9,732 614 (9,118) Mineral extraction tax 72,576 62, (1,576) Personal income tax 37,628,638 42,42,848 4,414,21 Land tax 19,352,475 19,152,176 (2,299) Transport tax 223,414 497, 273,586 Profit tax 6,474,584 113,984,23 53,59,619 Advertisement tax VAT 1,797,319 1,797,319 Withholding tax 2,263,914 4,84,295 1,82,381 TOTAL 126,378,815 188,346,154 61,967,339 Tax type Paid in 28, rupees Paid in 29, rupees Rupees Changes rupees Property tax 7,487,962 8,224,643 736,681 State duty 238,328 123,96 (115,232) Charges on negative influence on environment 996,273 1,212,195 215,921 Unified tax on imputed income 12,934 (12,934) Water tax 15,85 952 (14,133) Mineral extraction tax 1,116,893 961, (155,893) Personal income tax 58,324,389 65,166,414 6,842,26 Land tax 29,996,336 29,685,873 (31,463) Transport tax 346,292 77,35 424,58 Profit tax 93,735,65 176,675,515 82,939,99 Advertisement tax VAT 2,785,844 2,785,844 Withholding tax 3,59,67 6,33,657 2,821,591 TOTAL 195,887,163 291,936,539 96,49,375

No Full firm name (name of a non-profit organization) or name of an affiliated person 4. AFFILIATED PERSONS Ground (grounds) under which a person is considered to be an affiliated person, date of grounds validity Location of a legal entity or address of a natural person Share in the authorized capital of the joint stock company, % Portion of owned ordinary shares of the joint stock company, % 1 2 3 4 6 7 1 Veeraraghavan Ramesh - The person is a member of the Board of Directors (supervisory board) of the joint stock company 14.11.27 - - 2 Nagarajan Kishore - The person is a member of the Board of Directors (supervisory board) of the joint stock company 14.11.27 3 Poondi Ramarathnam Ravi 4 Murugappan Muthiah Murugappan 5 Krishnaswamy Srinivasan 6 Kostrov Sergey Vyacheslavovich 7 Petrosyan Sergey Leonovich - The person is a member of the Board of Directors (supervisory board) of the joint stock company 14.11.27 - The person is a member of the Board of Directors (supervisory board) of the joint stock company 14.11.27 - The person is a member of the Board of Directors (supervisory board) of the joint stock company 14.11.27 Volgograd Moscow The person performs powers of the sole executive body of the joint stock company, 25.3.25 The person is a member of the Board of Directors - - - - - - - - - -

8 Orlov Victor Ivanovich Volgograd region Sr. Akhtubinskiy district 9 Ponomarev Vladimir Fedorovich 1 Shaykina Elena Nikolaevna 11 Dovgal Alexey Nikolaevich 12 Gapkalov Sergey Nikolaevich 13 Ermishin Dmitriy Victorovich Volzhsky Volgograd region Volzhsky Volgograd region Volzhsky Volgograd region Volzhsky Volgograd region Volzhsky Volgograd region (supervisory board) of the joint stock company 31.5.1995 The person is a member of the collective executive body of the joint stock company, 21.8.23 The person is a member of the collective executive body of the joint stock company, 26.4.25 The person is a member of the collective executive body of the joint stock company, 27.6.27 The person is a member of the collective executive body of the joint stock company, 1.7.28 The person is a member of the collective executive body of the joint stock company, 1.7.28 The person is a member of the collective executive body of the joint stock company, 1.7.28 - - - - - - - - - -

5. EVENTS AFTER THE REPORTING DATE The event after the reporting date is a decision of dividend payment according to work results for 28. The Shareholders meeting of the Company charged dividends in the amount of 68,948,575 (16,87,292 rupees). In 29 the amount of paid dividend was 675853.19 (14,756,754.94 rupees). 6. DATA ON ACCOUNTABLE FIGURES ACCORDING TO ACTIVITY TYPES, GEOGRAPHICAL SALE MARKETS 6.1. Basic activity types of the Company Basic activity types performed by the Company in 29. Production of silicon carbide, abrasive materials, abrasive tools, refractory materials; Production of customer goods; Development of solid minerals; Foreign-economic activity; Trade and purchasing activities. The sale structure for 29 is shown below in the table (table 6.1), and the structure of export and domestic market (table 6.2). Table 6.1 Rubles Sale type Amount of sale Rub. Share of sale Abrasive tools 271,112,517.11 13.25% Refractory products 38,789,359.71 1.9% Segments 427,963.66.2% Abrasive grit 594,33,758.66 29.5% Abrasive materials 414,882,356.89 2.28% Fractions 718,795,289. 35.14% Consumer goods 2,293,723.16.11% Other 4,978,153.81.24% Total 2,45,583,122. Sale type Amount of sale Rupees Share of sale Abrasive tools 42,224,42 13.25% Refractory products 6,123,58 1.9% Segments 663,344.2% Abrasive grit 921,17,826 29.5% Abrasive materials 643,67,653 2.28% Fractions 1,114,132,698 35.14% Consumer goods 3,555,271.11% Other 7,716,138.24% Total 3,17,653,839 Rupees

Table 6.2 Rubles Currency Sum in according to the rate $ 43,161,239.45 Euro 757,229,872.89 Rubles 858,192,9.66 Currency Sum in rupees according to the rate $ 666,749,921.15 Euro 1,173,76,32.98 Rubles 1,33,197,614.97 Rupees

7. USING OF NET PROFITS FOR THE COMPANY'S NEEDS The Company used the profit of past years to charge the dividends and compensations according to the decision of the Board of Directors. The profit of the financial year was used on social expenses (according to the corporate contract), cover of expenses on maintenance of the non-production facilities, charity activities, and other expenses, which were paid out of the profit according to the legislation. 8. INFORMATION ON THE COMPANY S RESERVE FUND According to the Charter of the Company the reserve fund was established in the amount of not less than 5% of the authorized capital in the sum 6,. (six hundred ) (93, rupees). During the accounting period the reserve fund was not used. 9. INFORMATION ON THE COMPANY S NET ASSETS The Company s net assets as of January 1, 29 873,23. (1,353,465 rupees). The Company s net assets as of December 31, 29 1,95,58 (1,697,34 rupees)/ Reduction of the Company s net assets in 29 221,855 (343,875 rupees).

1. SOCIAL FIGURES The basic figures related to salaries and assessments to the state off-budget funds (excluding the branch). Rubles No Parameters Unit 28 29 1. Average number of production and People 1,584 1,545 industrial personnel 2. Labor costs of production and industrial Thousand 287,957 32,268 personnel 3. Expenses for social needs Thousand 69,756 72,847 Including: 3.1. Pension fund Thousand 53,74 56,148 3.2 Social insurance fund Thousand 7,739 8,69 3.3 Medical insurance fund Thousand 8,277 8,63 4. Average salaries of production and Rubles 14,591 16,34 industrial personnel 5. Total number People 1,655 1,613 6. Total salary bill Thousand 293,998 39,336 Rubles 14,83 15,981 7. Average salary with account of all engaged personnel No Parameters Unit 28 29 1. Average number of production and People 1,584 1,545 industrial personnel 2. Labor costs of production and industrial Thousand 446,333 468,515 personnel rupees 3. Expenses for social needs Thousand 18,122 112,913 rupees Including: 3.1. Pension fund Thousand 83,297 87,29 rupees 3.2 Social insurance fund Thousand 11,995 12,57 rupees 3.3 Medical insurance fund Thousand rupees 12,829 13,377 4. Average salaries of production and Rupees 22,616 25,271 industrial personnel 5. Total number People 1,655 1,613 6. Total salary bill Thousand 455,697 479,471 rupees 7. Average salary with account of all engaged personnel Rupees 22,945 24,771 Rupees Taking into consideration the figures shown in the table the growth of the average salary is 8 % in comparison with 28.

11. INTERPRETATION OF ACOUNTING STATEMENTS INTERPRETATION OF BALANCE SHEET ACCOUNTS Line 12 «Fixed assets» Accounting features Depreciation of fixed assets The accounting policy for 29 relative to the depreciation of fixed assets objects stipulates the following: 1. The price of the fixed assets objects is repaid by depreciation charging (straight-line depreciation method) during the period of their useful life, taking into consideration the original value of the object of fixed assets and depreciation rates, calculated on the basis of the useful life of these objects. 2. During the financial year the depreciation charges on the objects of fixed assets are charged monthly in the amount of 1/12 of the annual sum. The depreciation on computer equipment (commissioned before January 1, 22) is charged using the coefficient 2. 3. The depreciation on the objects of the housing stock is charged at the end of the financial year. The depreciation sums are attributed to the off-balance account. Cost parameters As of December 31, 29 the fixed assets in the amount 597,775,467.51 (926,551,974.64 rupees) are attributed to the account 1 Fixed assets, including the fixed assets of the branch in the amount 1,11,25.34 (1,567,438 rupees). In order to prove the reliability of the accounting data the Company inventoried the fixed assets as of November 1, 29. The inventory results are shown in the balance statement for 29. The costs parameters of the accounts 1, 2 are shown in the table 11.1 according to the accounting statements as of December 31, 29. Table 11.1 Rubles Balance sheet value Depreciation Residual value Percentage of depreciation 596764217.17 336,524,96.93 26,24,12 56.39% For the branch 11125,34 427,4.27 584,21.7 42,23% Rupees Balance sheet value Depreciation Residual value Percentage of depreciation 91349252.27 521,612,35.24 43,372,186.37 56.39% For the branch 1547213.2 661,912.42 95,525.61 42,23% The cost parameters for the groups of the fixed assets as of December 1, 29. are shown in table 11.2.

In 29 the balance sheet value of the fixed assets decreased. This decrease occurred due to the realization of the fixed assets, which were leased, and other fixed assets. Thee most important purchases relative to the fixed assets: Buildings Name of the object commissioned in 29 Balance sheet value Balance sheet value (rub.) (rupees) Thermal-electric building reconstruction (S=1218м2) 582,874 93,455 Structures Name of the object commissioned in 29 Balance sheet value Balance sheet value (rub.) (rupees) PLATFORM WITH THE SHED 1,188,712.1 1,842,53.62 Operating machinery Name of the object commissioned in 29 Balance sheet value (rub.) Balance sheet value (rupees) KILN FOR ELECTRODE MASS FUSION 61658.21 954,89.23 SELF-PROPELLED KILN 21 51831.97 83,382. SELF-PROPELLED KILN 6 521819.62 88,82.41 ELECTROMELTING KILN 1 516829.4 81,85.57 ELECTROMELTING KILN 14 522774.3 81,3.17 ELECTROMELTING KILN 18 52552. 86,855.6 ELECTROMELTING KILN 2 513756.47 796,322.53 ELECTROMELTING KILN 27 513756.47 796,322.53 ELECTROMELTING KILN 3 518787.3 84,119.9 ELECTROMELTING KILN 52 522838.68 81,399.95 ELECTROMELTING KILN 53 513756.47 796,322.53 ELECTROMELTING KILN 69 521724.81 88,673.46 ELECTROMELTING KILN 7 523589.63 811,563.93 ELECTROMELTING KILN 8 522774.5 81,3.48 ELECTROMELTING KILN 84 522838.68 81,399.95 ELECTROMELTING KILN 97 5281.12 87,241.74 ELECTROMELTING SELF-PROPELLED KILN 521723.3 88,671.12 28 ELECTROMELTING SELF-PROPELLED KILN 521819.62 88,82.41 4 ELECTROMELTING SELF-PROPELLED KILN 517259.5 81,752.23 6 SELF-PROPELLED KILN 37 524449.22 812,896.29 SELF-PROPELLED KILN 8 524449.22 812,896.29 ACCESS CONTROL SYSTEM AT THE 1 378693.17 2,136,974.41 ENTRANCE ELECTROMELTING KILN 23 524449.22 812,896.29

Measuring machines Name of the object commissioned in 29 CARBON AND SULPHUR QUICK ANALYSATOR Balance sheet value (rub.) Balance sheet value (rupees) 2,543,765.4 3,942,836.37 Transmitting facilities Name of the object commissioned in 29 Balance sheet value (rub.) Balance sheet value (rupees) Cable network and lightning of the territory 66248.5 1,261,75.18 In 29 the fixed assets of the residual value 163 (253 rupees) retired, including sold fixed assets of the residual value 1 (1,55 rupees). Rubles Name of the object retired in 29 Balance sheet value Depreciation Residual value Vehicle KAMAZ-55111 14,77. 54,686.13 5,2.87 Conveyor В-65 15,68.23 15,68.23. Crane railway (capacity=115т) 12,555. 12,555.. Rupees Name of the object retired in 29 Balance sheet value Depreciation Residual value Vehicle KAMAZ-55111 162,295.85 84,763.5 77,532 Conveyor В-65 162,855.76 162,856. Crane railway (capacity=115т) 186,86.25 186,86.

The structure of the fixed assets is shown in the table 11.2 Table 11.2 Rubles Fixed assets group Balance sheet value Depreciation Residual value Depreciation % Buildings 21,746,523.55 89426712.53 121319811.2 42.43% Structures 47,323,8.28 3275442.85 14572565.43 69.21% Transmitting devices 28,152,18.1 17768481.83 1383536.27 63.12% Power machinery 2,247,714.23 1115373.61 923234.62 54.4% Operational machinery 229,656,48.4 149683326.84 79973153.56 65.18% Measuring machinery 15,458,273.18 961286.29 5856986.89 62.11% Computing machinery 6,933,963.95 514441.57 1789922.38 74.19% Communal machinery 1,5,31.54 84589.94 24221.6 8.55% Transport facilities 27,27,235.19 14297473.24 12972761.95 52.43% Industrial tools 1,9,996.19 96585.82 1341.37 88.5% Industrial inventory 4,81,559.11 1486655.8 259493.31 36.42% Household equipment 4,353,428.45 3366522.52 98695.93 77.33% Accomplishment и planting 399,985. 177384.9 2226.91 44.35% TOTAL 596,764,217.17 33652496.93 262412.24 56.39% Rupees Fixed assets group Balance sheet value Depreciation Residual value Depreciation % Buildings 326,657,111.5 138,611,44 188,45,77 42.43% Structures 73,35,662.83 5,763,186 22,587,476 69.21% Transmitting devices 43,635,628.6 27,541,147 16,94,481 63.12% Power machinery 31,383,957.6 17,73,829 14,31,128 54.4% Operational machinery 355,967,544.62 232,9,157 123,958,388 65.18% Measuring machinery 23,96,323.43 14,881,994 9,78,33 62.11% Computing machinery 1,747,644.12 7,973,264 2,774,38 74.19% Communal machinery 1,627,548.89 1,311,5 316,543 8.55% Transport facilities 42,268,864.54 22,161,84 2,17,781 52.43% Industrial tools 1,691,44.9 1,488,98 22,136 88.5% Industrial inventory 6,326,416.62 2,34,316 4,22,1 36.42% Household equipment 6,747,814.1 5,218,11 1,529,74 77.33% Accomplishment и planting 619,976.75 274,945 345,31 44.35% TOTAL 924,984,536.61 521,612,35 43,372,186 56.39%

Line 13 «Construction in-process» (Investment in fixed assets) The interpretation of the line Construction in-process according to the investment types is shown below Table 11.3 Investment type Sum, Sum, rupees Construction in-process 545435.92 845,426 Purchase of objects of fixed assets 2233.39 34,612 Equipment for installation 47495229.8 73,617,66 TOTAL 48,62,996.11 74,497,643.97 Line 14 «Long-term financial investments» By the end of 29 the long-term financial investments made up 184 (285 rupees). Changes are related to the shares rate of the companies which are on the balance of JSC VAW. Line 21 «Inventory» The parameter of the balance sheet account Inventory as of December 31, 29 made up 36654 (56 751 rupees). The inventory structure is shown in the table and the diagram.