To Shareholder of RUE "Minskavtodor-Center" InJdenJent Auitors' Reort on the financial statements of RUE "Minskavtodor-Center" for 2017 LLC < 57 Dzerzhinsky avenue, room 53, office 53-2 220089 Minsk, Belarus Telephone +375 17 372 72 57 Fax +375 17 372 72 58 Mob. +375 29 104 75 15 Internet www.kpmg.by Independent Auditors' Report To the Shareholder and general director of RUE "Minskavtodor-Center" Qualified Opinion We have audited the financial statements of RUE "Minskavtodor-Center" (37 Kalvariiskaya str., 220073, Minsk, Republic of Belarus, registered by Minsk City Executive Committee's decision dated 14 July 2005, N2600921909), which comprise the balance sheet as at 31 December 2017, statements of profits and losses, changes in equity, cash flows for 2017, and notes to the financial statements as required by the laws of the Republic of Belarus. In our opinion, except for the effects of the matters described in the first paragraph of Basis for Qualified Opinion section of our report, and except for the possible effects of the matters described in the second paragraph of Basis for Qualified Opinion section of our report the accompanying annual financial statements present fairly in all material respects, thefinancial position of audited entity, as at 31 December 2017, its financial performance and changes in its financial position, including its cash flows for 2017, in accordance with the laws of the Republic of Belarus. Basis for Qualified Opinion As at 31 December 2017 and 31 December 2016 audited entity has not maintained adequate accounting records regarding illiquid inventories in the part of the cost of work in progress recognized in previous periods in accounting records of separate subdivisions of the Company (road operation offices). These costs will not be reimbursed in the coming years by means of targeted financing as a cost recovery. In accordance with the Instruction No. 133 on accounting of inventories of the Ministry of Finance of the Republic of Belarus dated 12 November 2010 ("instruction") the creation of an allowance for impairment of such inventories is required. Data of audited entity indicated that, had management reflected inventories in accordance with Instruction, the value of inventories would have reduced by BYN 7 470 thousand as at 31 December 2017 and by BYN 5 841 thousand as at 31 December 2016. Accordingly, other operating expense would have increased by BYN 1 629 thousand for 2017, and other operating income would have increased by BYN 22 thousand for 2016. We were engaged as auditors of RUE "Minskavtodor-Center" on 28 March 2017, so we did not observe the counting of inventories in the beginning of the reporting period. We were unable to satisfy ourselves as to those inventory quantities by alternative means as at 31 December 2016. As a result, we were unable to determine whether adjustments might have been found necessary in respect of net profit recognized in the statement of profits and losses. Audited enfily: Repulican unitary enterpnse -Mrskaviedor-CenteC Ireendet auditor LLC KPMG, a mruborfirn of the KPMG noeirkof R4 D y 0 Air.k 5 ikty 1 omilttee basedon decismonof Me I roe firms ffiliated Wth XPMG lternaWfoal Cooperative 14.D72005: Registraties No 600921 E09(KMGnt-io.",aS sefty 220073 MK BL.-s. Klariiskay str. 37 Stae RegistraJon Certficalo is issued by Mins City Executive Committee based ondocison or 10 022011; Rlegisraton No. in the Unified State Regisier of enlie and indiVidual eriepreneurm 191424140. RUE "Minskavtodr-Center" Auditors'Report on the financial statements for 2017 Page 2 We conducted our audit in accordance with the Law of the Republic of Belarus on "Auditing activities" dated 12 July 2013 and national auditing standards. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the audited entity in accordance with the laws and professional ethics standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. Other matters The information on pages from 15 to 17 about historical cost of property, plant and equipment broken down by sections of road, payments to contractors from the republican budget and about bank guarantees is not a part of financial statements. Audit of this information was not performed. Responsibilities of the Entity for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Law of the Republic of Belarus 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. In preparing the annual financial statements, management is responsible for assessing the Entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that indudes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the national auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with the national auditing standards we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud, generally, assumes specifically designed measures aimed at its conceal; - Obtain an understanding of internal control relevant to the audit 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; - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management; - Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on RUE "Minskavtodor-Center" Auditors'Report on the financial statements for 2017 Page 3 the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Entity to cease to continue as a going concern; - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably bethought to bear on our independence, and where applicable, related safeguards. Vas Pavienko Audit Direc o Alexey Ulazovsky Auditor 28 June 2018 Minsk, Republic of Belarus LLC "KPMG" This report is the English translation of the original Russian. In the event of discrepancies between the two reports, the Russian version prevails. Supplement I to the National Accounting and Reporting Standard "Individual Accounting Statement" Form BALANCE SHEET As at 31 December 2017 Organization RUE "Minskavtodor-Center" Taxpayer's Registration Number 190638747 Activity type Consolidated Organizational legal form Governing body Ministry of Transport and Communications Measurement unit BYN thsd Address 37 Kalvariiskaya str., Minsk Date of approval Date of submission Date of acceptance Assets Item As at 31 December 2017 As at 31 December 2016 code 1 2 3 4 L NON-CURRENT ASSETS Fixed assets 110 3419718 3394502 Intangible assets 120 148 149 Income-bearing investments into tangible assets 130 - - Including: investment property 131 finance lease items 132 other income-bearing investments into tangible assets 133 - - Investments into non-current assets 140 215 758 52 229 Long-term financial investments 150 - - Deferred tax assets 160 3 - Non-current receivables 170 12 15 Other non-current assets 180 4751 3016 TOTAL for Section I 190 3640390 3449911 I. CURRENT ASSETS Inventories 210 22870 19514 Including: materials 211 8498 6160 domestic animals being grown and fed 212 - - work in progress 213 14370 13352 finished goods and goods for sale 214 2 2 shipped goods 215 - - other inventories 216 Non-current assets held for sale 220 - - Deferred expenses 230 190 257 Input value-added tax 240 14397 5 825 Short-term accounts receivable 250 68 823 42 881 Short-term financial investments 260 - - Cash and cash equivalents 270 677 177 Other current assets 280 248 2 182 TOTAL for Section H 290 107205 70836 BALANCE 300 3747595 3520747 Equity and liabilities Item As at 31 December 2017 As at 31 December 2016 code 1 2 3 4 III. EQUITY Share capital 410 31 647 31 647 Unpaid share capital 420 - - Treasury stock 430 - - Reserve capital 440 118 111 Additional paid-in capital 450 3 026 076 2 960 226 Retained earnings (accumulated losses) 460 2 400 1 658 Including profit used for financing capital investments and 461-- repaying related loans (borrowings) in the reporting year Including profit used for financing capital investments and repaying related loans (borrowings) in the previous year 462 Net profit (loss) for the reporting period 470 - - Special-purpose financing 480 268271 72379 TOTAL for Section El 490 3328512 3066021 IV. LONG-TERM LIABILITIES Long-term loans and borrowings 510 - - Long-term liabilities on lease payments 520 - - Deferred tax liabilities 530 - - Deferred income 540 381 566 433 955 Provision 550 7241 618 Other long-term liabilities 560 - - TOTAL for Section IV 590 388807 434573 V. SHORT-TERM LIABILITIES Short-term loans and borrowings 610 1 545 2 003 Short-term part of long-term liabilities 620 - - Short-term accounts payable 630 28 731 18 145 Including: 24354 14433 to suppliers, contractors and executors 631 received advances 632 193 24 taxes and duties 633 1 188 1 020 social security payable 634 591 616 salary accruals 635 1 589 1 707 lease payments 636 41 24 to owners (founders, participants) 637 58 - to other creditors 638 717 321 Liabilities held for sale 640 - - Deferred income 650 5 Provision 660 - Other short-term liabilities 670 - - TOTAL for SectionN690 30276 20 153 BALANCE 700 3747595 3520747 Chief Engi nec" S.S. Isakov - (name) Chief AccodinWAt t/A.V. Labkovich 2103 8(name) 21.03.2018 ~ Supplement 2 to the National Accounting and Reporting Standard "Individual Accounting Statement" STATEMENT OF PROFITS AND LOSSES For January-December 2017 Organisation RUE "Minskavtodor-Center" Taxpayer's Registration Number 190638747 Activity type Consolidated Organizational legal form Governing body Ministry of Transport and Communications Measurement unit BYN thsd Address 37 Kalvariiskaya str., Minsk Item Item For January- For January- code December 2017 December 2016 1 2 3 4 Revenue from sales of goods, products, works, services 010 61 519 53 781 Cost of sales 020 (55 278) (47 144) Gross profit 030 6241 6637 Administrative expenses 040 (4 177) (4 154) Selling expenses 050 - - Profit (loss) from sales of goods, products, works, services 060 2 064 2483 Other operating income 070 133 644 49917 Other operating expenses 080 (135042) (50988) Operating profit (loss) 090 666 1 412 Investment income 100 13304 8013 Including: income from disposal of fixed assets, intangible assets and other non-current assets 101 18 121 income from participation in other organisations 102 - - interest receivable 103 1 2 other investment income 104 13285 7890 Investment expenses 110 (12552) (7271) Including: expenses from disposal of fixed assets, intangible assets and other non-current assets 11 (6) (82) other investment expenses 112 (12546) (7 189) Finance income 120 6 19 Including: foreign exchange differences from translation of assets and liabilities 121 5 19 other finance income 122 1 - Finance expenses 130 (268) (1 284) Including: interest payable 131 (157) (233) exchange differences from translation of assets and liabilities 132 (58) (926) other finance expenses 133 (53) (125) Profit (loss) from investing and financing activities 140 490 (523) Item Item For January- For January- code December 2017 December 2016 I 2 3 4 Profit (loss) before tax 150 1 156 889 Income tax 160 (386) (480) Change in deferred tax assets 170 3 - Change in deferred tax liabilities 180 - Other taxes, duties from profit (income) 190 - - Other payments from profit (income) 200 (85) (26) Net profit (loss) 210 688 383 Result from revaluation of non-current assets not included in net profit 220 - (loss) 220 - - Result from other operations not included in net profit (loss) 230 (121) - Comprehensive income (loss) 240 567 383 Including comprehensive income from the revaluation of roads 241 - - Basic earnings (loss) per share 250 - Diluted earnings (loss) per share 260 - Chief Engineer S.S. Isakov Chief Aoft0it A.V.Labkovich (v' urd ( efl(namte) A Supplement 3 to the National Accounting and Reporting Standard "Individual Accounting Statement" Form STATEMENT of Changes in equity For January-December 2017 Organization RUE "Minskavtodor-Center" Taxpayer's Registration Number 190638747 Activity type Consolidated Organizational legal form Governing body Ministry of Transport and Communications Measurement unit BYN thsd Address 37 Kalvariiskaya str., Minsk Retained Ite Shre Unpaid Treasury RsreAdditional eanns Net Itm SaeRsreearnings poi oa Item Ite Sha share stock capital paid-in profit Total UnpaidcTpetsury cpaid-in (Accumul (os capital capital ated losses)(loss) 1 2 3 4 5 6 7 8 9 10 Balance as at 31.12.2015 010 31 647 - - 109 2916810 1450 - 2950016 Adjustment due to change in acoutngpliy020 - - - - - - - - accounting policy Adjustment due to errors correction 030 - - - - (29) (122) - (151) Restated balance as at31.12.2015 040 31 647 - - 109 2916781 1328 - 2949865 January-December 2016 050 - - - 1 150251 409 - 150661 Increase in equity - total Including: net profit 051 - - - - - 400 - 400 revaluation of non-current assets 052 - - - - - - - - income from other operations not included in net profit (loss) issue of additional shares 054 - - - - - - - - increase of share premium 055 - - - - - - - contributions from owner (founders, participants) 056 - - - - - - - - reorganization 057 - - - - - - - - other 058 - - - 1 150251 9 - 150261 including social security 059 - - - - - payments Decrease in equity - total 060 - - - - 106430 446 - 106 876 Including: loss 061 - - - - - - - - revaluation of non-current assets 062 - - - - - - - - expenses from other operations 063 not included in net profit (loss) decrease of share premium 064 - - - - - - - - Retained Share Unpaid Treasury Reserve Additional (accimul Net Item Ite share stock capital paid-in profit Total capital capital ated losses) (loss) 1 2 3 4 5 6 7 8 9 10 repurchase of shares (interest in shr cpta)065 - - - - - - - - share capital) dividends and other income from participation in share capital of 066 - - - - - - - - oranization reorganization 067 - - - - - - - - other 068 - - - - 106430 446 - 106876 including social security 069 - - payments Change in share capital 070 - - - - - - - - Change in reserve capital 080 - - - 1 - (1) - - Change in additional paid-in 090 - (376) 376 capital Balance as at31 December 2016 100 31 647 - - 111 2960226 1 666 - 2993650 Balance as at31 December 2016 110 31647 - - 111 2960226 1 666 - 2993650 Adjustment due to change in acontnpoiy120 - - - - - - - - accounting policy Adjustment due to errors correction 130 - - - - - (8) - (8) Restated balance as at 31.12.2016 140 31 647 - - 111 2 960 226 1 658 - 2 993 642 January-December 2017 Increase 150 - 2 2 91325 695 - 92022 in equity - total Including: net profit 151 - - - - - 688 - 688 revaluation of non-current assets .152 - - - - - - - income from other operations not 153 included in net profit (loss) issue of additional shares 154 - - - - - - - - increase of share premium 155 - - - - - - - - contributions from owner 156 (founders, participants) reorganization 157 - - - - - - - - other 158 - - - 2 91325 7 - 91334 including social security 159 - - - payments Decrease in equity- total 160 - - - - 25 069 354 - 25 423 Including: loss 161 - - - - - - - - revaluation of non-current assets 162 - - - - - - - - expenses from other operations not included in net profit (loss) decrease of share premium 164 - - - - - - - - Retained Ite Shre Unpaid Treasury RsreAdditional eanns Net Item Ite Sha share stock paid-in eArnings profit Total UnpaidcTpastay casital (Accumul (os capital capital ated losses) (loss) 1 2 3 4 5 6 7 8 9 10 repurchase of shares (interest in 165 share capital) dividends and other income from participation in share capital of 166 - - - - - - - - organization reorganization 167 - - - - - - - - other 168 - - - - 24948 354 - 25302 including social security 169 - - - payments Change in share capital 170 - - - - - - - - Change in reserve capital 180 - - - 5 - (5) - - Change in additional paid-in 190 - (406) 406 - canital I Balance as at31.12.2017 200 31647 - - 118 3026076 2400 - 3060241 Chief Engineer S.S. Isakov at" (name) Chief Accopntant ., A.V. Labkovich g(na re (name) 21.03.2019 Nl< ''I- Supplement 4 to the National Accounting and Reporting Standard "Individual Accounting Statement" Form CASH FLOW STATEMENT For January-December 2017 Organization RUE "Minskavtodor-Center" Taxpayer's Registration Number 190638747 Activity type Consolidated Organizational legal form Governing body Ministry of Transport and Communications Measurement unit BYN thsd Address 37 Kalvariiskaya str., Minsk Item Item ForJanuary- For January-December code December 2017 2016 1 2 3 4 Cash flows from operating activities Cash inflow - total 020 73534 62157 Including: from customers of goods, products, works, services 021 71 309 57 122 from customers of materials and other inventories 022 358 50 royalty 023 - - other receipts 024 1 867 4985 Cash outflow - total 030 (72166) (62407) Including: acquisition of inventories, works, services 031 (42 371) (36 482) salary payments 032 (14410) (13229) taxes and duties 033 (8590) (5752) other payments 034 (6 795) (6 944) Net cash flows from/(used in) operating activities 040 1 368 (250) Cash flows from investing activities Cash inflow - total 050 265 233 98 768 Including: from customers of fixed assets, intangible assets and other 051 - 674 non-current assets repayment of granted loans 052 3 2 income from participation in share capital of other organizations interest 054 - other receipts 055 265 230 98 092 Cash outflow - total 060 (264 603) (97 844) Including: acquisition and creation of fixed assets, intangible assets and other non-current assets loans granted 062 - - contributions to share capital of other organizations 063 - - other payments 064 (263 925) (96 755) Net cash flows from investing activities 070 630 924 Item Item For January- For January-December code December 2017 ' 2016 1 2 3 4 Cash flows from financing activities Cash inflow - total 080 9 182 5520 Including: loans and borrowings 081 9 176 5500 issue of shares 082 - - contributions from owner (founders, participants) 083 - - other receipts 084 6 20 Cash outflow - total 090 (10 680) (6640) Including: repayment of loans and borrowings 091 (9 631) (4 900) payment of dividends and other income from participation 092 (223) (567) in share capital of other organizations interest payment 093 (185) (217) lease payment 094 - - other payments 095 (641) (956) Net cash flows used in financing activities 100 (1 498) (1 120) Net cash flows for the reporting period 110 500 (446) Balance of cash and cash equivalents 120 177 623 As at 31 December 2016 Balance of cash and cash equivalents 130 677 177 As at 31 December 2017 Effect of exchange rate change 140 (620) (907) Chief Engineer S.S. Isakov signa (name) Chief Accounta . A.V. Labkovich sign d (name) 21K03,2018 Notes to the financial statements 1. Minskavtodor-Center RUE consists of 13 divisions (Road Operation Office (ROO) 5, 6, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69 and SD-1 (Specialized Department-1) which are not legal entities, serviced by local banks and have separate bank accounts and taxpayer's registration numbers. The Company's objective is the maintenance of an appropriate operational condition of the republican highways network carried on the balance sheet of the Company. The Company's scope of operation is the maintenance and repairs of the highways carried on the balance sheet of the Company, as well as buildings and facilities located on them. Under Minskavtodor-Center RUE accounting policy for 2017 and according to Form 2 "Statements of Profits and Losses" the revenue of the entity from the sale of products, goods, services in 2017 amounted to BYN 61 519 thousand. Cost of sold goods, products, works and services amounted to BYN 55 278 thousand. Administrative expenses amounted to BYN 4 177 thousand. Profit from sales of products, goods, works, services amounted to BYN 2 064 thousand. Profit margin from sales of products, goods, works, and services amounted to 3,7 %. Net profit for 2017 amounted to BYN 688 thousand, including (by branch offices): ROO-5 - 0 thousand roubles ROO-6 - 72 thousand roubles ROO-60 - 24 thousand roubles ROO-61 - 169 thousand roubles ROO-62 - 0 thousand roubles ROO-63 - 0 thousand roubles ROO-64 - 154 thousand roubles. ROO-65 - 32 thousand roubles ROO-66 - 8 thousand roubles ROO-67 - 3 thousand roubles ROO-68 - 14 thousand roubles ROO-69 - 52 thousand roubles SD-1 - 50 thousand roubles Administration - 110 thousand roubles Revenue of the entity from the sale of goods, products, works and services (line 010) for 2017 as per Form No.2 "Statements of Profits or Losses" amounts to BYN 61 519 thousand, revenue from the sale of goods, products, works and services (line 01) as per Form 12-f (profit) "Statement of Financial Performance" amounts to BYN 67 888 thousand, including value added tax (line 15) - BYN 11 282 thousand. The difference on revenue amounts to BYN 4 913 thousand - works performed by subcontractors. In the reporting period the accounting records were kept in accordance with the accounting policy approved by the Company. The accounting records are automated by means of accounting software. Due to the Decree of the President of the Republic of Belarus No. 284 "On disposal of property" dated 15.08.2017, an annex was included into the Section 20 "Accounting for losses from the sale or free transfer of certain types of assets" of the Statement on the Company's accounting Policy for 2017 by means of an administrative order No. 301 dated 21.08.2017. According to the Decree of the President of the Republic of Belarus No. 284 "On disposal of property" dated 15.08.2017, the following items were written-off against additional paid-in capital for 2017: In ROO-60, the residual value of Parus SHC (Sports and Health Complex) amounting to BYN 84 thousand, expenses related to Parus SHC liquidation amounting to BYN 26 thousand; In ROO-62, the residual value of sand-salt spreader ORS-21 damaged in a road accident amounting to BYN 11 thousand. The initial value of property, plant and equipment as at 31 December 2017 amounted to BYN 3 477 026 thousand (Appendix 1). 2. The depreciation is accrued using the straight-line method based on depreciable (carrying) value of fixed assets, determined useful lives of items involved in business activity, or standard useful lives of items which are not involved in business activity, set by the Classifier of Fixed Assets approved by Decree No. 161 of the Ministry of Economy of the Republic of Belarus dated 30 September 2011. The useful lives are determined by the Commission for depreciation policy within the range stated in Annex No. 3 to Instruction No. 37/18/6 (as per revised version No. 162/101/45 dated 30.09.2011). The useful lives are determined by the Commission taking into account the influence of aggressive environment, rotation, and other deviations from basic modes of operation. The amount of accumulated depreciation was: As at 31 December 2016 (BYN thousand) As at 31 December 2017 (BYN thousand) 44217 57308 In the reporting period the initial cost of fixed assets changed: - M-14 "Second Ring Road around the city of Minsk" highway construction works amounting to BYN 30 962 thousand were performed; - P-40 Borovlyany - Logoisk 0,00 km - 6,5 km road (111 line) major repairs amounting to BYN 1 207 thousand were performed; - major repairs of the pedestrian crosswalk in different levels at the 3 10th km of M-1/E30 Brest (Kozlovichi) - Minsk - RF border (Redki) road amounting to BYN 62 thousand were performed; - major repairs of the bridge over the Berezina River, 438,93 km of M-1/E30 Brest (Kozlovichi) - Minsk RF border (Redki) road amounting to BYN 2580 thousand were performed; - P-23 Minsk - Mikashevichi 92,0 km - 102,0 km reconstruction works (works postponed to a suitable time) amounting to BYN 123 thousand were performed; - machinery and equipment amounting to BYN 999 thousand and vehicles amounting to BYN 3252 thousand were acquired using loan facilities obtained from Development Bank OJSC for M- 14 <> highway purposes; - vehicles amounting to BYN 133 thousand and bus stop light fixtures amounting to BYN 65 thousand were received for free from legal entities; - garage reconstruction works amounting to BYN 109 thousand and fence reconstruction works amounting to BYN 3 thousand were performed; - works related to operating repairs and maintenance of roads amounting to BYN 19 584 thousand were performed; - acquired using own funds in the amount of BYN 1 083 thousand. As at 31 December 2017 fixed assets amounting to BYN 3 898 thousand were pledged. The initial (revalued) value of fully depreciated fixed assets in service amounted to BYN 14 743 thousand as at the end of the reporting period. 3. As at 31 December 2017 the initial (revalued) value of intangible assets amounted to 180 thousand (Appendix 2). Amortization is charged using the straight-line method based on the amortized cost of an item. As at 31 December 2016 the accumulated amortization amounted to BYN 14 thousand, the accrued amortization for the reporting period amounted to BYN 18 thousand. During the reporting period no impairment amounts recovered in income and (or) additional paid-in capital were recorded as expenses. 4. No investment property has been leased out during the reporting period. No disposals of investment property have occurred in the reporting period. There is no investment property transferred to inventories or operating property. 5. Upon receipt, materials are evaluated at book prices using account 16 "Deviation in prices of materials". Supplier's price (purchase price) is applied as book price. Inventory was not written down during the reporting period. Inventories were not pledged as collateral. 1 6. Accounts receivable to be settled within 12 months after the reporting date as at 31 December 2016 amounted to BYN 42 881 thousand, as at 31 December 2017 - BYN 68 823 thousand. Accounts receivable, including loans for housing construction, to be settled in more than 12 months as at the end of the previous year amounted to BYN 15 thousand, as at the end of the reporting period - BYN 12 thousand, including: BYN 12 thousand - loans for housing construction. As at the beginning of the reporting period: Figure Item 170 Item 250 (of balance sheet) (of balance sheet) Customers and clients 0 1 806 Suppliers and contractors 0 39 590 Taxes and duties 0 549 Settlements with loyees 0 69 Different debtors 0 563 Other accounts receivable 15 304 As at the end of the reporting period: Customers and clients Item 170 Item 250 (of balance sheet) (of balance sheet) Suppliers and contractors 0 1 669 Taxes and duties 0 66349 Settlements with employees 0 157 Different debtors 0 67 Other accounts receivable 0 299 Customers and clients 12 282 Amount of allowance for doubtful debts as at the end of the previous year was BYN 15 thousand, the allowance for doubtful debts as at the end of the reporting period is BYN 10 thousand. An allowance for doubtful debts amounting to BYN 2 thousand was created and accounts receivable amounting to BYN 7 thousand were written off against doubtful debt allowance during the reporting period. As at 31 December 2017 accounts receivable amounted to BYN 68 835 thousand, as at 31 December 2016 BYN 42 896 thousand, the increase amounted to BYN 25 939 thousand. Additionally, overdue accounts receivable as at 31 December 2017 amounted to BYN 1146 thousand, as at 31 December 2016 - BYN 889 thousand, the increase amounted to 257 thousand. The increase of current accounts receivable is due to advance payments to contractors amounting to BYN 6238 thousand for performing works related to P-23 Minsk-Mikashevichi road, works related to M-6 Minsk-Grodno road amounting to BYN 20 731 thousand. A letter of credit on P-23 Minsk-Mikashevichi road amounting to BYN 4 999 thousand was secured with Belinvestbank OJSC, on P-58 Minsk-Kalachi-Myadel road- in the amount of BYN 6 398 thousand. As at 31 December 2017 overdue accounts receivable of Zabudova - Stroykompleks PUE amounting to BYN 360 thousand was not settled. As at 31 December 2017 accounts receivable amounted to BYN 28731 thousand, as at 31 December 2016 - BYN 18 145 thousand, the increase amounted to BYN 10 586 thousand. Additionally, overdue accounts receivable as at 31 December 2017 amounted to BYN 3 292 thousand, as at 31 December 2016 - BYN 3 133 thousand, the increase amounted to BYN 159 thousand. As at 31 December 2017 payments from the state budget to contractors for major repair works amounting to BYN 1 587 thousand, for operating repair works amounting to BYN 664 thousand, for reconstruction and construction works amounting to BYN 1 428 thousand performed in 2017 have not been made. 7. Investments in securities of ASB Belarusbank OJSC in the form of cash as at the end of the previous year amounted to BYN 0,3 thousand, as at the end of the reporting period - BYN 0,3 thousand. Financial investments in cash into Belagroprombank OJSC securities as at the end of the previous year amounted to BYN 0,005 thousand, as at the end of the reporting period - BYN 0,005 thousand. 8. During the reporting period the Company did not attract long-term loans and borrowings. As at the end of the reporting period the Company has an outstanding loan amounting to BYN 1545 thousand which was received in December 2017 for salary payments. Interest amounting to BYN 157 thousand was accrued and interest in the amount of BYN 185 thousand was repaid in the reporting period. As at 1 January 2017 ROO-69 branch had an outstanding commodity loan amounting to BYN 3 thousand. The loan is fully repaid as at the end of the reporting period. Bank guarantees were provided in the reporting period by BSC (Banking Service Center) No. 526 of Belagroprombank OJSC Regional Office for Minsk Region located in Nesvizh: - to Minsk Automobile Plant Open Joint-Stock Company, the holding company of Belavtomaz, in the amount of BYN 114 107,76 (One hundred fourteen thousand one hundred and seven roubles and 76 kopecks) for the acquisition of MAZ-650136-420-001; - to Minsk Tractor Works Open Joint-Stock Company amounting to BYN 29 267,10 (Twenty nine thousand two hundred and sixty seven Belarusian roubles and ten kopecks) for the acquisition of >. A bank guarantee was provided in the reporting period by Belinvestbank Belarusian Development and Reconstruction Bank in Minsk to Minsk Automobile Plant Open Joint-Stock Company, the holding company of Belavtomaz, amounting to BYN 175 666,32 (One hundred seventy five thousand six hundred and sixty six Belarusian roubles and 32 kopecks) for the acquisition of MAZ-551605-271-750 (2 vehicles). Remuneration for the bank guarantees support in the reporting period amounted to BYN 3 636,05. 9. Other income from operating activity in the reporting period amounted to BYN 133 644 thousand, including: Income Amount, BYN thousand Item 070 "Other operating income" 133 644 1 Income from the sale of inventories, free acquisition of inventories 1 750 Income from real estate lease, lease of movable property that is not 2 engaged into the entity's business activity 79 3 Services of boiler-house for water heating 55 4 Sale of foreign currency 131 668 5 Doubtful debt allowance recovery 1 6 Insurance compensation 35 7 Communication services, other expenses 15 8 Compensation of utility expenses 41 Other operating expenses for the reporting period amounted to BYN 135042 thousand, including: Expenses Amount, BYN thousand Item 080 "Other operating expenses" 135042 1 Pecuniary aid 61 2 One-time bonus for work achievements 526 One-time bonuses for anniversaries, in connection with retirement, 3 for young professionals, other. 53 4 Social leave, additional leave, payment at the average 32 Mass cultural events, sport events, transfers to labor union 5 committee 256 Expenses on real estate lease, lease of movable property that is not 6 engaged into the entity's business activity 14 25% of payments related to real estate lease, lease of movable 7 property that is not engaged into the entity's business activity 20 8 Social Security Contributions, BGS 184 9 Doubtful debt allowance 2 10 Maintenance of housing stock 2 11 Write off of accounts receivable 5 12 Expenses related to sale of inventories 1 577 13 Voluntary insurance of medical expenses 20 14 Depreciation of fixed assets not involved in business activities 22 15 Mobile communication services 9 16 Reimbursement of loss, damage 12 Depreciation of fixed assets received for free that are not involved 17 in business activities 7 18 Reimbursement of utilities expenses 25 19 Expenses not related to business activity 59 20 Services of machinery under collective agreement 1 Penalties for breach of contracts, state duty, legal proceedings 21 expenses 69 22 Fines and indexation of payments for electricity 74 23 Maintenance of Parus site 204 24 Administrative fine on toll roads 10 25 Services of boiler-house for water heating 55 26 Entertainment costs 3 27 Housing and utilities services 26 28 Voluntary sale of foreign currency 131 668 29 Civil defense expenses 2 30 Sponsorship 43 31 Door phone systems maintenance 1 Investment income in the reporting period amounted to BYN 13304 thousand, including: Income Amount, BYN thousand Item 100 "Investment income" 13304 including: 1 Item 101 "Income from disposal of fixed assets" 18 Write-off of fixed assets 18 2 Item 103 "Interest receivable" 1 Interest receivable 1 3 Item 104 "Other investment income" 13 285 Insurance compensation for road accidents 5 Depreciation of fixed assets received for free 740 Depreciation of highways 12540 Investment expenses for the reporting period amounted to BYN 12552 thousand, including: Amount, BYN thousand Item 110 "Investment expenses" 12552 including: 1 Item 111 "Expenses from disposal of fixed assets" 6 Expenses from disposal of fixed assets 6 2 Item 112 "Other investment expenses" 12 546 Depreciation of fixed assets received for free 6 Depreciation of highways received for free 12 540 Finance income for the reporting period amounted to BYN 6 thousand. Income Amount, BYN thousand Item 120 "Finance income" 6 1 Foreign exchange translation differences 5 2 Other finance income 1 Finance expenses for the reporting period amounted to BYN 268 thousand, including: Expenses Amount, BYN thousand Item 130 " Finance expenses " 268 including: 1 Item 131 "Interest payable" 157 Interest for using short-term loans 157 2 Item 132 "Foreign exchange differences" 58 Foreign exchange translation differences 58 3 Item 133 "Other finance expenses" 53 Interest on commercial loans 50 Remuneration for bank guarantees support 3 10. Temporary differences that entailed an income tax adjustment arose in the reporting period. Expenses on the voluntary insurance of medical costs for the reporting period are recognized in accounting on an one-time basis. Deferred tax assets amounting to BYN 3 thousand was accrued. There were no other income and expenses in the reporting period. There were no income and expenses related to commodities exchange transactions in the reporting period. Form No. 1 "Balance Sheet", Form No. 2 "Statements of Profits or Losses", Form No. 3 "Statement of Changes in Equity", Statistical form No. 4-f (assets) Statement of Assets and Liabilities, Appendix I "Existence and movement of fixed assets" were amended (explanation attached). Chief S.S. Isakov Chief fotat A.V. Labkovich . - Notes to separate lines of forms to the financial statements: Form No. 1 "Balance Sheet" was changed on 31 December 2016 due to correction of errors: Line code of Adjustments to column 4 No. the form Name Amount, thousand Contents roubles Property, plant and Adjustment of revaluation of the 1 110 equipment -29 carryig amount of PPE 2 190 Total for section I -29 Adjustment Inventories, including 3 211 materials -6 Untimely write off of materials Adjustment of cost for expenses 4 213 Work-in-progress -4 of the laboratory Short-term accounts Untimely recording of short- 5 250 receivable 11 term accounts receivable 6 290 Total for section II 1 Adjustment 7 300 Balance -28 Adjustment Decrease in additional paid-in Additional paid-in capital due to correction of 8 450 capital -29 revaluation of PPE in prior years 9 460 Retained earnings, -46 Decrease in profit 10 490 Total for section III -75 Adjustment Short-term accounts Untimely recording of short- 11 630 payable 47 term accounts payable including to suppliers, contractors and Increase of accounts payable to 11.1 631 executors 11 suppliers Adjustment is made in the amount of recalculated income 11.2 633 taxes and duties 33 tax, real estate tax The amount payable to other 11.3 638 to other creditors 3 creditors on account 76 12 690 Total for section V 47 Adjustment 13 700 Balance -28 Adjustment Form No. 2 "Statement of profits and losses" for January-December 2016 was adjusted due to correction of errors: Line code of Adjustments to column 4 No. the form Name Amount, thousand Contents roubles Cost of products, goods, work and Adjustment of cost for expenses 1 20 services sold 19 of the laboratory 2 30 Gross profit -19 Adjustment due to errors found Profit from products, goods, work and 3 060 services sold -19 Adjustment due to errors found Adjustment for the services Other income from rendered by the laboratory, sale 4 070 current operations -66 of materials to branches Adjustment of cost for expenses of the laboratory, sale of materials. Tax on excess construction-in-progress, real Other expenses on estate tax is written off to other 5 080 current operations -62 expenses. 6 090 Operating profit -23 Adjustment due to errors found 7 150 Profit before tax -23 Adjustment due to errors found 8 160 Income tax -7 Recalculation of income tax Other charges Recalculation of investment 9 200 accrued on profit 1 fund Decrease in net profit due to 10 210 Net profit -17 errors found Comprehensive 11 240 income -17 Adjustment due to errors found Form No. 3 "Statement of Changes in Equity": on line 010 "Balance as at 31.12,2015" of column 8 - BYN 1 450 thousand must be recorded due to correction of errors; on line 030 "Adjustment due to correction of errors" of column 7 "additional paid-in capital" due to correction of errors for 2015 BYN 29 thousand and of column 8 "Retained earnings" - BYN 122 thousand must be recorded; on line 040 "Adjusted balance as at 31.12.2015" of column 7 "additional paid-in capital", of column 8 "Retained earnings" BYN 2 916 781 thousand, BYN 1 328 thousand must be recorded. on line 100, 110 "Balance as at 31.12.2016" of column 7 "additional paid-in capital", of column 8 "Retained earnings" BYN 2 960 226 thousand, BYN 1 666 thousand must be recorded. on line 130 "Adjustment due to correction of errors" of column 8 "Retained earnings" due to correction of errors for 2016 BYN 8 thousand were recorded; on line 140 "Adjusted balance as at 31.12.2016" of column 7 "additional paid-in capital", of column 8 "Retained earnings" BYN 2 960 226 thousand, BYN 1 658 thousand must be recorded. Form No.4 "Statement of Cash Flows": on line 021 "from buyers of products, goods, customers of works, services" of column 2 adjustment on account 79 in the amount of BYN 34 058 thousand. on line 024 "other proceeds" of column 2 adjustment on account 79 in the reversal amount of BYN 34 058 thousand. Form No. 4-f (cash) "Statement of Resources Structure": data as at 31 December 2016 was recorded due to correction of errors, including data in column 2 on lines: Line Was recorded To be recorded line 001 "Non-current assets" 3 449 940 3 449 911 line 002 "Initial value" 3438750 3438719 line 003 "Carrying value" 3394531 3394502 line 013 "Current assets" 70835 70836 line 014 "Materials" 6166 6160 line 016 "Work-in-progress" 3 520 775 3 520 747 line 021 "Assets -Total" 3520775 3520747 line 022 "Equity" 3066096 3066021 line 024 "Short-term liabilities" 20 106 20 153 Due to adjustment of the amounts in the Balance Sheet for 2016 (assets and liabilities) the amount of net assets as at 31.12.2016 changed and amounted to BYN 3 066 021 thousand. Availability and movement of property, plant and equipment (Appendix 1) Due to adjustment of revaluation of the carrying amount of property, plant and equipment, changes in initial value as at 31.12.2016 and depreciation as at 31.12.2016 were made. Presence and movement of fixed assets Appendix 1 RUE "Minskavtodor-Center" (reporting company name) BYN thousand Received Original Range of Item Original Including (revalued) estimated (revalued) cost cost as at useful life as at 31 Disposed 31 (from and December 2016 Total amount Purchase (gratuitously Moderniza Revaluation December to) transferred tion and other) 1 2 3 4 5 6 7 8 9 10 1 Fixed assets - total 3438719 70 854 39657 31197 32547 3477026 Including: buildings 1.1 and 3392848 62666 31469 31 197 28827 3426687 including: 1.1.1 residential 46 _ - - 46 1.1.2 public roads 3352681 62 267 31 182 31 085 27059 3387889 1.2 transmission devices 5890 20 2C - 5910 machines 1.3 and 24854 2062 2062 1 262 25 654 1.4 transport vehicles 14795 6 067 6067 - - 2448 18414 tools, inventory, 1.5 fixture and fittings 332 39 39 - 1 361 1.6 Livestock - - - - - 1.7 erennial plants - - - . - CAPEX into land 1.8 improvement - - - - - - 1.9 other fixed assets as at 31 December as at 31 Decembei 2016 2017 Depreciation of 2 fixed assets 44217 57308 Loss of fixed 3 assets value 1 472904 1 568438 Acquired depreciation 4 For reporting period 15 603 Write-off depreciation of disposal fixed ssets inthereporting 5 eriod 12 729 Chief Engineer sakov X:(si e) Chief Accountant . Labkovich (si ture) Presence and movement of intangible assets Appendix 2 RUE "Minskavtodor-Center" (reporting company name) BYN thousand Original Original (revalued) cost (revalued) cost Range of as at3l Acquired Disposed as at 31 estimated useful N2 Item December 2016 December life (from and to) 2017 1 2 3 4 5 6 7 1 Intangible assets - total 163 17 180 Including: property rights to 1.1 industrial properties - - Property rights to scientific, 1.2 literary and artistic works Property rights to objects of related 1.3 rights - Property rights to software and 1.4 computer databases 3 15 - 18 Property rights to the use of intellectual property resulting from 1.5 license and authorship agreements - - - Property rights to the use of natural 1.6 resources, land 158 2 - 160 1.7 Other 2 - - 2 as at 31 December as at 31 December 2016 2017 Amortization of intangible 2 assets 14 32 Accrued amortization for reporting 3 period 18 Written off amortization on disposed intangible assets in the reporting 4 period - Chief Engineer .S S. Isakov ChifAcoutanV L c(Sig Chief Accountant J-A.. abkovich I j ~ .(Sig