ERNST - ПАО «Интер РАО»...(NP ACR). Ernst&Young LLC is registered in the register of...
Transcript of ERNST - ПАО «Интер РАО»...(NP ACR). Ernst&Young LLC is registered in the register of...
ERNST &YOUNG 2
Audit Report – JSC “INTER RAO UES”
Table of Contents Page
Independent Auditor’s Report 3 Accounting Balance Sheet 5 STATEMENT OF FINANCIAL RESULTS 7 STATEMENT OF CHANGES IN EQUITY for the year 2012 8
3
Independent Auditor’s Report
To shareholders of JSC ―INTER RAO UES‖
We audited accounting (financial) statements of JSC ―INTER RAO UES‖ attached hereto, which
consist of accounting balance-sheet as of December 31, 2012, statement of financial results for
the year 2012, and annexes thereto.
Liability for Accounting (Financial) Statements of the Audited Entity
The management staff of JSC ―INTER RAO UES‖ bears responsibility for preparation and
accuracy of the said accounting (financial) statements in accordance with rules for preparing
accounting (financial) statements established in the Russian Federation, as well as for internal
control system required for preparing accounting (financial) statements without material
misstatements whether due to fraud or error.
Auditor’s liability
Our liability is in expressing opinion on the accuracy of these statements on the basis of our
audit.
We conducted audit in accordance with the federal standards of auditing activity applicable in
the Russian Federation, and International Standards of Auditing. These standards require the
compliance with applicable ethical norms, as well as planning and conducting an audit in the
manner as to obtain sufficient confidence that the accounting (financial) statements are free from
material misstatements.
Audit includes conducting the auditing procedures aimed at obtaining audit evidences
confirming the numerical indicators contained in the accounting (financial) statements, as well as
information disclosed in them. The choice of auditing procedures remains a subject of auditor’s
judgment, which is based on the risk assessment of material misstatements in the accounting
(financial) statements, whether due to fraud or error. In the process of assessing this risk, the
auditor studies internal control system, which ensures preparation and accuracy of accounting
(financial) statements, in order to select an appropriate set of auditing procedures, but not to
express opinion on the internal control system efficiency. Audit also includes assessment of
proper character of the applied accounting policy, and validity of assessment estimates made by
the management staff, as well as assessment of submitting accounting (financial) statements in
general.
We believe that audit evidences found by us constitute sufficient and proper basis for expressing
our opinion.
Ernst & Young LLC ООО «Эрнст энд Янг»
77 Sadovnicheskaya Nab., bld. 1 Россия, 115035, Москва
Moscow, 115035, Russia Садовническая наб., 77, стр. 1
Tel: +7 (495) 705 9700 Тел.: +7 (495) 705 9700
+7 (495) 755 9700 +7 (495) 755 9700
Fax: +7 (495) 755 9701 Факс: +7 (495) 755 9701
www.ey.com ОКПО:59002827
A member firm of Ernst & Young Global Limited
4
Opinion
In our opinion, the accounting (financial) statements authentically reflect in all material aspects
the financial position of JSC ―INTER RAO UES‖ as of December 31, 2012, the results of its
financial and economic activities and cash flows in the year 2012 in accordance with the rules of
preparing accounting (financial) statements established in the Russian Federation.
Other information
Accounting (financial) statements attached hereto are not intended to represent financial position
and results of activity in accordance with accounting principles or methods generally accepted in
the countries and other territories other than the Russian Federation. Therefore, accounting
(financial) statements attached hereto are not intended for persons that are not familiar with
accounting principles, procedures and methods accepted in the Russian Federation.
D.E. Lobachev
Partner, CEO
Ernst&Young LLC
February 21, 2013
Information about the entity under audit
Name: JSC ―INTER RAO UES‖ Details of registration in the Unified State Register of Legal Entities concerning the legal entity (certificate of state
registration of legal entity under 1022302933630 issued by Interdistrict FTSI of Russia No. 7 for Krasnodar Region
(Territorial area 2320 for Central District) dated November 1, 2002).
Location: 27, Bolshaya Pirogovskaya Str., Building 3, Moscow, 119435 Russian Federation
Information about auditor
Name: Ernst&Young LLC Primary State Registration Number 1027739707203.
Location: 77, Sadovnicheskaya Emb., Building 1, Moscow 115035 Russia. Ernst&Young LLC is a member of Non-commercial Partnership Audit Chamber of Russia
(NP ACR). Ernst&Young LLC is registered in the register of auditors and audit organizations NP ACR under No.
3028, and is included into the control copy of the register of auditors and audit organizations under Primary State
Registration Number 10201017420.
5
Annex No. 1
to the Order of the Ministry of Finance of the
Russian Federation
dd. 02/07/2010 No. 66n
Accounting Balance Sheet as of December 31, 2012
Organization Open Joint Stock Company “INTER RAO UES” Taxpayer Identification Number
Type of activity _____________ Electricity resale and production Legal form/form of ownership
Open Joint Stock Company/private property Unit of measurement: thousand rubles
Location (address) 27, Bolshaya Pirogovskaya Str., Building 3, Moscow, 119435
Clarification
s Name of the indicator Indicator
code As of December
31, 2012 As of December
31, 2011 As of December
31, 2010
PZ-1
ASSET
I. CAPITAL ASSETS
Intangible Assets 1110 75 857 6 630 3 533
PZ-2 Results of research and development 1120 - 1 908 5 555
Intangible research assets 1130 - - -
Tangible research assets 1140 - - -
PZ-3 Fixed assets 1150 3 241 714 28 551 362 61 771 367
PZ-4 including unfinished construction 1151 11 381 9 425 348 22 340 149
PZ-3 Income-bearing investments in tangible assets 1160 84 727 42 053 17 846
PZ-6 Financial Investments 1170 334 946 242 241 150 388 46 454 407
Deferred tax assets 1180 3 814 926 8010018 470 704
PZ-5 Other capital assets 1190 27 151 917 5 000 301 5 279 270
PZ-8.1 including long-term
receivables 1191 26 967 810 3 862 219 2 308 241
TOTAL on section I 1100 369 315 383 282 762 660 114 002 682
PZ-7
II. CURRENT ASSETS
Inventories 1210 13 823 851 783 657 151
Value Added Tax on assets purchased 1220 765 487 868 103 1 078 983
PZ-8 Receivables 1230 59 345 981 61 497 955 11 328 889
PZ-8.2 including
buyers and customers 1231 2 806 082 3 773 174 5 112 631
PZ-8.4 advance payments granted 1232 3 503 957 1 302 231 2 184 478
PZ-8.3 other debtors 1233 53 035 942 56 422 550 4 031 780
PZ-6.2 Financial investments (other than cash equivalents) 1240 937 985 6 028 375 4 020 736
PZ-9 Cash and cash equivalents 1250 14 069 790 4 868 696 4 062 822
PZ-10 Other current assets 1260 210 461 440 626 125 573
TOTAL on section II 1200 75 343 527 74 555 538 21 274 154
BALANCE 1600 444 658 910 357 318 198 135 276 836
CODES OKUD Form No. 2 0710001
Date (day, month, year) 31 12 2012
OKPO form 33741102
TIN 2320109650
OKVED form 40.10.11 51.56.4
OKOPF/OKFS form 47 41
OKEI form 384
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Form 0710001 p. 2
Clarification
s Name of the indicator Indicator
code As of December
31, 2012 As of December
31, 2011 As of December
31, 2010
PZ-11
LIABILITY
III. CAPITAL AND RESERVES
Authorized capital 1310 293 339 703 272 996 962 81 287 328
PZ-11 Treasury shares 1320 (409) - -
Revaluation of capital assets 1340 308 415 352 952 6 110 175
PZ-11 Additional capital (without revaluation) 1350 195 416 130 195 090 785 21 771 383
PZ-11 Reserve capital 1360 296 339 296 339 161 118
Retained profit (uncovered loss), including: 1370 (105 340 945) (154 609 257) (16 953 277)
retained profit of previous years 1371 (90 980 304) (11 481 290) (16 953 277)
retained profit of current year 1372 (14 360 641) (143 127 967) -
TOTAL on section III 1300 384 019 233 314 127 781 92 376 727
PZ-13 IV. LONG-TERM LIABILITIES
Borrowed funds 1410 10 951 941 17 965 196 19 731 635
Deferred tax liabilities 1420 52 721 241 196 698 112
Estimated liabilities 1430 - - -
PZ-14.3 Other long-term liabilities 1450 1 726 174 19 269 014 -
TOTAL on section IV 1400 12 730 836 37 475 406 20 429 747
PZ-13 V. SHORT-TERM LIABILITIES
Borrowed funds 1510 3 235 056 340 268 660 792
PZ-14 Payables 1520 43 778 492 4 481 858 6 811 969
PZ-14.1 including:
suppliers and contractors 1521 3 489 736 3 584 965 2 919 632
payables to organization’s employees 1522 1 762 234 6 258
payables to government extrabudgetary funds 1523
taxes and levies due 1524 594 50 722 406 080
advance payments received 1525 2 097 550 496 864 615 434
PZ-14.2 other creditors 1526 38 188 850 349 073 2 864 565
Deferred revenues 1530 - - -
PZ-12 Estimated liabilities 1540 895 293 892 885 567 956
Other short-term liabilities 1550 - - 14 429 645
TOTAL on section V 1500 47 908 841 5 715 011 22 470 362
BALANCE 1700 444 658 910 357 318 198 135 276 836
Head B.Yu. Kovalchuk Chief accountant A.O. Chesnokova
(signature) (full name) (signature) (full name)
" 21 " February 2013
7
Annex
to the Order of the Ministry of Finance of the
Russian Federation
dd. 02/07/2010 No. 66n
STATEMENT OF FINANCIAL RESULTS for a period of January 01 to December 31,
2012
Organization Open Joint Stock Company “INTER RAO UES” Taxpayer Identification Number
Type of activity _____________ Electricity resale and production Legal form/form of ownership
Open Joint Stock Company/private property Unit of measurement: thousand rubles
Clarificati
ons Name of the indicator Code For January –
December 2012 For January –
December 2011
PZ-15 Proceeds (net) from sales of goods and services (net of value added tax,
excise and similar mandatory payments), including: 2110 42 692 178 73 387 956
Electricity export 2111 25 574 816 36 919 150
Sale of electricity (power) in the domestic market 2112 16 646 011 35 264 217
Other 2114 471 351 1 204 589
PZ-16 Prime cost of goods, products, works, services sold 2120 (35 175 079) (60 755 152)
Purchase of electricity (power) in the domestic market 2121 (27 695 611) (40 351 447)
electricity (power) production 2122 (4 396 357) (16 291 204)
Electricity import 2123 (2 260 700) (2 913 588)
Other 2125 (822 411) (1 198 913)
Gross profit 2100 7 517 099 12 632 804
PZ-16 Commercial costs 2210 (4 153 181) (6 646 199)
PZ-16 Administrative costs 2220 (4 510 163) (3 899 084)
Profit (loss) from sales 2200 (1 146 245) 2 087 521
Revenues from participation in other organizations 2310 2 573 215 1 355 352
Interest receivable 2320 1 723 504 1 262 734
Interest payable 2330 (1 919 141) (1 739 263)
PZ-17 Other revenues 2340 121 529 638 65 327 947
PZ-17 Other costs 2350 (132 550 135) (218 698 144)
Profit (loss) before tax 2300 (9 789 164) (150 403 853)
PZ-19 Current income tax 2410 (660 220) (626 525)
including permanent tax liabilities (assets) 2421 7 196 334 23 557 657
Change in deferred tax liabilities 2430 171 780 (191 961)
Change in deferred tax assets 2450 (4 235 418) 7 612 670
Other 2460 152 381 481 702
Net profit (loss) of the reporting period 2400 (14 360 641) (143 127 967)
FOR REFERENCE
Result from revaluation of fixed assets not included in net profit (loss) for
the period
2510
- -
Result from other transactions not included in net profit (loss) for the
period 2520
- -
Aggregate financial result for the period 2500 (14 360 641) (143 127 967)
PZ-20 Base profit (loss) per share (kopecks) 2900 (0,1472) (2,0824)
PZ-20 Diluted profit (loss) per share (kopecks) 2910 (0,1472) (2,0824)
Head B.Yu. Kovalchuk Chief accountant A.O. Chesnokova
(signature) (full name) (signature) (full name)
" 21 " February 2013
CODES OKUD Form No. 2 0710002
Date (day, month, year) 31 12 2012
OKPO form 33741102
TIN 2320109650
OKVED form 40.10.11 51.56.4
OKOPF/OKFS form 47 41
OKEI form 384
8
Annex
to the Order of the Ministry of Finance of the
Russian Federation
dd. 02/07/2010 No. 66n
STATEMENT OF CHANGES IN EQUITY for the year 2012 For 2012
Organization Open Joint Stock Company “INTER RAO UES” Taxpayer Identification Number
Type of activity _____________ Electricity resale and production Legal form/form of ownership
Open Joint Stock Company/private property Unit of measurement: thousand rubles
1. Cash Flow
Name of the indicator Code Authorized
capital Treasury
shares Additional capital Reserve
capital Retained profit
(uncovered loss) Total
Value of capital as of December 31, 2010 3100 81 287 328 - 27 881 558 161 118 (16 953 277) 92 376 727
For 2011
Increase in capital – total: 3210 191 709 634 173 319 402 365 029 036
including
net profit 3211 X X X X
revaluation of assets 3212 X X - X - -
revenues booked directly to the
increase in capital 3213 X X - X
additional issue of shares 3214 191 709 634 - 173 319 402 X X 365 029 036
Increase in nominal value of
shares 3215 - - X
legal entity’s reorganization 3216 - - - -
Reduction in capital – total: 3220 - - - - (143 277 982) (143 277 982)
including
loss 3221 X X X X (143 127 967) (143 127 967)
revaluation of assets 3222 X X - X - -
expenses booked directly to the
decrease in capital 3223 X X X -
decrease in nominal value of
shares 3224 - X -
decrease in number of shares 3225 - - X - -
legal entity’s reorganization 3226 - - - -
dividends 3227 X X X - (150 015) (150 015)
Change in additional capital 3230 X X (5 757 223) - 5 757 223 X Change in reserve capital 3240 X X X 135 221 (135 221) X Value of capital as of December 31, 2011 3200 272 996 962 195 443 737 296 339 (154 609 257) 314 127 781
For 2012
Increase in capital – total 3310 20 342 741 6 493 057 325 345 63 584 416 90 745 559
including
net profit 3311 X X X X
revaluation of assets 3312 X X - X - -
revenues booked directly to the
increase in capital 3313 X X - X
additional issue of shares 3314 20 342 741 - - X X 20 342 741
Increase in nominal value of
shares 3315 - X X
legal entity’s reorganization 3316 - 325 345 63 584 416 63 909 761
sale of treasury shares 3317 - 6 493 057 - 6 493 057
Reduction in capital – total 3320 - (6 493 466) (44 537) - (14 316 104) (20 854 107)
including loss 3321 X X X X (14 360 641) (14 360 641)
revaluation of assets 3322 X X - X - -
expenses booked directly to the decrease in capital 3323 X X (44 537) X 44 537
decrease in nominal value of
shares 3324 - - X -
CODES OKUD Form No. 2 0710003
Date (day, month, year) 31 12 2012
OKPO form 33741102
TIN 2320109650
OKVED form 40.10.11 51.56.4
OKOPF/OKFS form 47 16
OKEI form 384
9
decrease in number of shares 3325 - - X -
legal entity’s reorganization 3326 - (6 493 466) - (6 493 466)
dividends 3327 X X X - -
Change in additional capital 3330 X X - - X Change in reserve capital 3340 X X X - X Value of capital as of December 31,
2012 3300 293 339 703 (409) 195 724 545 296 339 (105 340 945) 384 019 233
2. Adjustments due to changes in accounting policy and error corrections
Name of the indicator
code As of
December 31, 2011
Change in capital for 2012 As of December 31, 2012
at the expense of net profit (loss)
at the expense of other factors
Capital - total
before adjustments 3400 314 127 781 49 268 312 20 623 140 384 019 233
adjustment due to: changes in the accounting policy 3410 - - - -
correction of errors 3420 - - - -
after adjustments 3500 314 127 781 49 268 312 20 623 140 384 019 233
including: retained profits (uncovered losses):
before adjustments 3401 - - - -
adjustment due to:
changes in the accounting policy 3411 - - - -
correction of errors 3421 - - - -
after adjustments 3501 - - - -
other items of capital adjusted -
before adjustments 3402 - - - -
adjustment due to: changes in the accounting policy 3412 - - - -
correction of errors 3422 - - - -
after adjustments 3502 - - - -
3. Net assets
Name of the indicator Code As of December 31,
2012 As of December 31,
2011 As of December 31,
2010 Net assets 3600 384 019 233 314 127 781 92 376 727
Head B.Yu. Kovalchuk Chief accountant A.O. Chesnokova
(signature) (full name) (signature) (full name)
" 21 " February 2013
10
Annex
to the Order of the Ministry of Finance of the
Russian Federation
dd. 02/07/2010 No. 66n STATEMENT OF CASH FLOW
For 2012
Organization Open Joint Stock Company “INTER RAO UES“ Taxpayer Identification Number
Type of activity _____________ Electricity resale and production Legal form/form of ownership
Open Joint Stock Company/private property Unit of measurement: thousand rubles
Name of the indicator Code For 2012 For 2011
Cash flows from current transactions
Proceeds - total 4110 47 971 248 78 478 823
including:
from sales of products, goods, works and services 4111 43 836 454 76 771 224
lease payments, license fees, royalties, commissions and other similar
payments 4112 336 868 113 278
from resale of financial investments 4113 - -
other proceeds 4119 3 797 926 1 594 321
Payments - total 4120 (50 826 306) (77 452 865)
including
to suppliers (contractors) for raw materials, materials, works and
services 4121 (41 445 008) (65 408 314)
due to payment of employees’ remuneration 4122 (2 858 752) (3 293 852)
interests on debt liabilities 4123 (1 309 016) (1 644 097)
organizations’ income tax 4124 (765 454) (1 631 237)
other payments 4129 (4 448 076) (5 475 365)
Balance of cash flows from current transactions 4100 (2 855 058) 1 025 958
Cash flows from investment transactions
Proceeds - total 4210 36 409 799 13 575 504
including:
from sales of current assets (other than financial investments) 4211 2 255 854 3 782 329
from sales of shares (participatory interest) in other organizations 4212 24 287 712 3 484 096
from return of loans provided, from sales of debt securities (right of
demand of cash to other persons) 4213 5 227 000 4 145 753
dividends, interest on debt financial investments and similar proceeds
from equity participation in other organizations 4214 3 633 733 2 163 326
other proceeds 4219 1 005 500 -
Payments - total 4220 (11 539 961) (12 926 384)
including
due to acquisition, creation, modernization, reconstruction and
preparation for use of non-current assets 4221 (303 325) (2 314 613)
due to acquisition of shares (participatory interest) in other organizations 4222 (9 696 789) (4 127 972)
due to acquisition of debt financial investments (right of demand of cash
to other persons), provision of loans to other entities 4223 (1 539 847) (5 478 299)
Interests on debt liabilities, including into the cost of investment asset 4224
other payments 4229 - (1 005 500)
Balance of cash flows from investment transactions 4200 24 869 838 649 120
Cash flows from financial transactions
Proceeds - total 4310 16 082 285
including:
obtaining credits and loans 4311 16 031 902
Cash contributions of owners (participants) 4312 - -
from issue of shares, increase of participatory interest 4313 - 50 383
CODES OKUD Form No. 2 0710004
Date (day, month, year) 31 12 2012
OKPO form 33741102
TIN 2320109650
OKVED form 40.10.11 51.56.4
OKOPF/OKFS form 47 41
OKEI form 384
11
from issue of bonds, bills of exchange and other debt securities, etc. 4314
other proceeds 4319 - -
Payments - total 4320 (12 609 506) (17 018 809)
including:
to owners (participants) due to repurchase of organization’s shares
(participatory interest) from them or their quit from composition of
participants 4321 (6 493 466)
for payout of dividends and other payments on distribution of profits in
favor of owners (participants) 4322 (150 015)
due to repayment (repurchase) of bills of exchange and other debt
securities, repayment of credits and loans 4323 (6 116 040) (16 868 794)
other payments 4329 - -
Balance of cash flows from financial transactions 4300 (12 609 506) (936 524)
Balance of cash flows for reporting period 4400 9 405 274 738 554
Balance of cash and cash equivalents at the beginning of reporting
period 4450 4 868 696 4 062 822
Balance of cash and cash equivalents at the end of reporting period 4500 14 069 790 4 868 696
The influence of fluctuations in the exchange rate of foreign currency vs.
Russian ruble 4490 (204 180) 67 320
Head B.Yu. Kovalchuk Chief accountant A.O. Chesnokova
(signature) (full name) (signature) (full name)
" 21 " February 2013
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
12
These explanations constitute an integral part of the annual accounting (financial) statements of JSC
―INTER RAO UES‖ for the year 2012 prepared in accordance with applicable laws of the Russian
Federation.
All sums are shown in thousand rubles, unless otherwise specified.
I. GENERAL INFORMATION
Open Joint Stock Company ―INTER RAO UES‖ 1 (the Company) was founded on October 23, 2002.
Core activity of the Company was production of electricity and power. The Company and its
subsidiaries are hereinafter collectively referred to as INTER RAO UES Group.
In 2008 as a result of reorganization, CJSC ―INTER RAO UES‖, JSC ―North-West Thermal Power
Plant‖, JSC ―Ivanovskie PGU‖, JSC ―Kaliningradskaya TEC-2‖, JSC ―INTER RAO HOLDING‖ were
incorporated in the Company. Branches of the same name have been established on the basis of assets
of JSC ―North-West Thermal Power Plant‖, JSC ―Ivanovskie PGU‖, JSC ―Kaliningradskaya TEC-2‖,
JSC ―Sochinskaya TEC‖. Executive Office carrying out the management functions over the Company
has been established on the base of JSC ―INTER RAO UES‖. Core activity of the Company
throughout 2008-2011 was production of electricity and heat energy on the base of the branches, and
electricity sale at the domestic market and outside the Russian Federation.
In 2011 – 2012 in the result of structural re-arrangement of the model of business conduct, aimed at
creating a Holding Company on the base of JSC ―INTER RAO UES‖, production branches of ―North-
West Thermal Power Plant‖, ―Kaliningradskaya TEC-2‖, ―Sochinskaya TEC‖, and ―Ivanovskie PGU‖
being a part of the Company were moved to the balance-sheet of 100 % subsidiary of INTER RAO –
Electric Power Plants, OJSC. Sales activity previously conducted on the base of the branch in Orel was
assigned to 100 % subsidiary INTER RAO – Orel Energy Distribution, LLC. Detailed information is
provided in section 26 ―Terminated Activity‖ of this Explanatory note.
In 2012 as a result of reorganization, the Company was incorporated with JSC ―OGK-1‖, JSC ―OGK-
3‖, JSC ―INTER RAO – Energy‖, JSC ―INTER RAO - EnergyAsset‖, and JSC ―Bashenergoaktiv‖.
Production branches generating electricity and heat energy, which used to be a part of JSC ―OGK-1‖,
―OGK-3‖, were incorporated with 100 % subsidiary INTER RAO – Electric Power Plants, OJSC.
1 Before renaming – JSC ―Sochinskaya TEC‖ (renamed in pursuance of the decision of a sole shareholder of the Company
– JSC RAO ―UES of Russia‖ dd. 28/03/
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
13
Assets were moved to the balance-sheet of the Company in the form of financial investments in
subsidiary and affiliate companies, different kinds of payables and receivables. Detailed information is
provided in section 27 ―Reorganization‖ of this Explanatory Note.
At the present time the Company conducts activity on selling electricity at the domestic market and
outside the Russian Federation, supplying power equipment abroad, and controls activity of generating
and selling companies of INTER RAO UES Group. Company’s activity on production of electricity
and heat energy is a terminated activity, its scope has been of vestigial nature throughout the year of
report. The Company’s shares are quoted within the Russian Trading System, Moscow Interbank
Currency Exchange.2
JSC ―INTER RAO UES‖ is registered at: 27, Bolshaya Pirogovskaya Str., Building 3, Moscow
119435, Russia. Before July 29, 2011, JSC ―INTER RAO UES‖ was registered at: 12,
Krasnopresnenskaya Emb., Entrance 7, Moscow 123610, Russia.
Taxpayer Identification Number (TIN): 2320109650.
Average number of listed employees of the Company in 2012 amounted to 539 persons (2,246 persons
in 2011).
This statement was signed on February 21, 2013
2 December 2011, Russian Trading System and Moscow Interbank Currency Exchange merged into a single trading
platform.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
14
Branches and representative offices of the Company as of December 31, 2012.
Name Type of activity Location
Branch ―North-West
Thermal Power Plant‖
In the process of liquidation.
Activity was assigned to 100 %
subsidiary
34, 3rd
Konnaya Lakhta,
Olgino, St. Petersburg,
Russia
Branch
―Kaliningradskaya TEC-2"
In the process of liquidation.
Activity was assigned to 100 %
subsidiary
2, Energetikov Lane,
Kaliningrad, Russia
Branch ―Sochinskaya TEC‖ In the process of liquidation.
Activity was assigned to 100 %
subsidiary
133, Transportnaya Str.,
Sochi, Russia
Branch ―Ivanovskie PGU‖ In the process of liquidation.
Activity was assigned to 100 %
subsidiary
1, Komsomolskaya Str.,
Komsomolsk,
Ivanovo Region, Russia
Orel branch In the process of liquidation.
Activity was assigned to 100 %
subsidiary
137, Moskovskoye Shosse,
Orel, Russia
Representative office in the
Republic of Cuba
Representative office functions 3rd
Avenida/ 70 and 80, Santa
Clara,
Playa, Miramar,
Havana, Republic of Cuba
Representative office in the
Republic of Ecuador
Representative office functions World Trade Center, Tower B,
Office 403,
12 October Ave. No. 24-528 and
Louis Cordero, Quito, the
Republic of Ecuador
Office on the territory of the
Kingdom of Belgium
Representative office functions Rond Point Schuman 6, Brussels
1040, Kingdom of Belgium
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
15
Composition of the Company’s Board of Directors from January 01, 2012 to February 15, 2012.
1 Grigoriy Markovich Kurtser Chairman of the Board of Directors
of JSC ―INTER RAO UES‖, President of
JSC ―Russian Regional Development Bank‖
2 Oleg Mikhailovich Budargin Chairman of the Management Board, Member of the
Board of Directors of Federal Grid Company of
Unified Energy System OJSC
3 Evgeniy Vyacheslavovich Dod Chairman of the Management Board of JSC
―RusHydro‖
4 Vladimir Aleksandrovich Dmitriev Chairman of the State Corporation ―The Bank for
Development and Foreign Economic Affairs (
Vnesheconombank)‖
5 Boris Yuryevich Kovalchuk Chairman of the Management Board of
JSC ―INTER RAO UES‖
6 Vyacheslav Mikhailovich Kravchenko General Director of JSC ―OESK‖
7 Aleksandr Markovich Lokshin Deputy General Director – director of the Directorate
for Nuclear Power Complex of the State Corporation
for Nuclear Power ―Rosatom‖
8 Kirill Gennadyevich Seleznev Member of the Management Board, Head of Gas &
Liquid Hydrocarbons Marketing and Processing
Department of JSC ―Gazprom‖
9 Vladimir Igorevich Strzhalkovskiy General Director, Chairman of the Management
Board of JSC ―MMK Norilsk Nickel‖
10 Denis Vladimirovich Fedorov Head of Power Sector Development and Marketing
Department in JSC ―Gazprom‖, General Director
of Gazpromenergoholding LLC
11 Dmitriy Evgenyevich Shugaev Deputy General Director of the Rostec State
Corporation
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
16
Composition of the Company’s Board of Directors from February 15, 2012 to December 31, 2012.
1 Grigoriy Markovich Kurtser Chairman of the Board of Directors of JSC ―INTER
RAO UES‖, President of JSC ―Russian Regional
Development Bank‖
2 Oleg Mikhailovich Budargin Chairman of the Management Board, Member of the
Board of Directors of JSC ―Federal Grid Company of
Unified Energy System‖
3 Vladimir Aleksandrovich Dmitriev Chairman of the State Corporation ―The Bank for
Development and Foreign Economic Affairs (
Vnesheconombank)‖
4 Boris Yuryevich Kovalchuk Chairman of the Management Board of JSC ―INTER
RAO UES‖
5 Vyacheslav Mikhailovich Kravchenko Chairman of the Management Board of Non-
Commercial Partnership ―Market Council‖
6 Aleksandr Markovich Lokshin First Deputy General Director – Director of the
Directorate for Nuclear Power Complex of the State
Corporation for Nuclear Power ―Rosatom‖
7 Kirill Gennadyevich Seleznev Member of the Management Board, Head of Gas &
Liquid Hydrocarbons Marketing and Processing
Department of JSC ―Gazprom‖, General Director of
Mezhregiongaz LLC
8 Vladimir Igorevich Strzhalkovskiy General Director, Chairman of the Management
Board of JSC ―MMK Norilsk Nickel‖
9 Ferdinando Falco Beccalli President and Chief Executive Officer of GE Europe
& North Asia
10 Denis Vladimirovich Fedorov Head of Power Sector Development and Marketing
Department in Gazprom OJSC, General Director of
Gazpromenergoholding LLC
11 Dmitriy Evgenyevich Shugaev Deputy General Director of the Rostec State
Corporation
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
12
Composition of the Company’s Audit Commission from January 01, 2012 to June 25, 2012.
1 Aleksandr Evgenyevich Abramkov Head of the Internal Audit, Controlling and Risk
Management Unit of JSC ―INTER RAO UES‖
2 Natalia Aleksandrovna Ananyeva Head of the Foreign Assets Audit Division of the
Internal Audit Department of the Internal Audit,
Controlling and Risk Management Unit of JSC
―INTER RAO UES‖
3 Elena Fedorovna Ivanova Deputy Head of the Internal Audit Department of the
Internal Audit, Controlling and Risk Management
Unit of JSC ―INTER RAO UES‖
4 Svetlana Gennadyevna Meshcherina Deputy Chief Accountant of the State Corporation
for Nuclear Power "Rosatom"
5 Elena Gennadyevna Ryzhkova Head of the Internal Audit Department of the Internal
Audit, Controlling and Risk Management Unit of
JSC ―INTER RAO UES‖
Composition of the Company’s Audit Commission from June 25, 2012 to December 31, 2012
1 Nikolay Nikolaevich Varlamov Deputy Chairman of the Management Board of JSC
―FGC UES‖
2 Anna Valeryevna Drokova Deputy Head of the FEC and Coal Industry
Companies Division of the Federal Agency for State
Property Management
3 Elena Aleksandrovna Kabizskina Deputy Head of Control and Audit Department of JSC
―FGC UES‖
4 Ekaterina Viktorovna Heymits Head of Assets Safety Control Division of JSC
―MMK Norilsk Nickel‖
5 Yuriy Aleksandrovich Shcherbakov Head of Treasury Department of JSC ―INTER RAO
UES‖
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
12
Composition of the Company’s Management Board from January 01 to February 13, 2012
1 Boris Yuryevich Kovalchuk Chairman of the Management Board of JSC ―INTER
RAO UES‖
2 Vyacheslav Yuryevich Artamonov Deputy Chairman of the Management Board – Head
of Trading Unit of JSC ―INTER RAO UES‖
3 Aleksandr Gennadyevich Boris Member of the Management Board of JSC ―INTER
RAO UES‖
4 Andrey Vladimirovich Golovlev Member of the Management Board – Head of
financial and economic center of JSC ―INTER RAO
UES‖
5 Ilnar Ilbatyrovich Mirsiyapov Member of the Management Board – Head of
Strategy and Investment Unit of JSC ―INTER RAO
UES‖
6 Pavel Ivanovich Oklei Member of the Management Board – Head of
Production Activity Unit of JSC ―INTER RAO
UES‖
7 Dmitriy Nikolaevich Palunin Member of the Management Board – Financial
Director of JSC ―INTER RAO UES‖
8 Aleksandr Aleksandrovich Pakhomov Member of the Management Board – Head of Legal
Support Unit of JSC ―INTER RAO UES‖
9 Sergey Yuryevich Rumyantsev Member of the Management Board – Director of
Economy of JSC ―INTER RAO UES‖
10 Yury Vladimirovich Sharov Deputy Chairman of the Management Board – Head
of Capital Construction and Engineering Unit of JSC
―INTER RAO UES‖
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
13
Composition of the Company’s Management Board from February 14 to May 04, 2012
1 Boris Yuryevich Kovalchuk Chairman of the Management Board of JSC ―INTER
RAO UES‖
2 Vyacheslav Yuryevich Artamonov Deputy Chairman of the Management Board of JSC
―INTER RAO UES‖
3 Aleksandr Gennadyevich Boris Member of the Management Board of JSC ―INTER
RAO UES‖
4 Andrey Vladimirovich Golovlev Member of the Management Board – Head of
financial and economic center of JSC ―INTER RAO
UES‖
5 Ilnar Ilbatyrovich Mirsiyapov Member of the Management Board – Head of
Strategy and Investment Unit of JSC ―INTER RAO
UES‖
6 Pavel Ivanovich Oklei Member of the Management Board – Head of
Production Activity Unit of JSC ―INTER RAO
UES‖
7 Dmitriy Nikolaevich Palunin Member of the Management Board – Financial
Director of JSC ―INTER RAO UES‖
8 Aleksandr Aleksandrovich Pakhomov Member of the Management Board – Head of Legal
Support Unit of JSC ―INTER RAO UES‖
9 Sergey Yuryevich Rumyantsev Member of the Management Board – Director of
Economy of JSC ―INTER RAO UES‖
10 Yury Vladimirovich Sharov Deputy Chairman of the Management Board – Head
of Capital Construction and Engineering Unit of JSC
―INTER RAO UES‖
11 Karina Valeryevna Tsurkan Member of the Management Board – Head of
Trading Unit of JSC ―INTER RAO UES‖
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
14
Composition of the Company’s Management Board from May 05 to September 23, 2012
1 Boris Yuryevich Kovalchuk Chairman of the Management Board of JSC ―INTER
RAO UES‖
2 Vyacheslav Yuryevich Artamonov Deputy Chairman of the Management Board of JSC
―INTER RAO UES‖
3 Aleksandr Gennadyevich Boris Member of the Management Board of JSC ―INTER
RAO UES‖
4 Ilnar Ilbatyrovich Mirsiyapov Member of the Management Board – Head of
Strategy and Investment Unit of JSC ―INTER RAO
UES‖
5 Pavel Ivanovich Oklei Member of the Management Board – Head of
Production Activity Unit of JSC ―INTER RAO
UES‖
6 Dmitriy Nikolaevich Palunin Member of the Management Board – Financial
Director of JSC ―INTER RAO UES‖
7 Aleksandr Aleksandrovich Pakhomov Member of the Management Board – Head of Legal
Support Unit of JSC ―INTER RAO UES‖
8 Sergey Yuryevich Rumyantsev Member of the Management Board – Director of
Economy of JSC ―INTER RAO UES‖
9 Yury Vladimirovich Sharov Deputy Chairman of the Management Board – Head
of Capital Construction and Engineering Unit of JSC
―INTER RAO UES‖
10 Karina Valeryevna Tsurkan Member of the Management Board – Head of
Trading Unit of JSC ―INTER RAO UES‖
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
15
Composition of the Company’s Management Board from September 24 to December 13, 2012
1 Boris Yuryevich Kovalchuk Chairman of the Management Board of JSC ―INTER
RAO UES‖
2 Vyacheslav Yuryevich Artamonov Deputy Chairman of the Management Board of JSC
―INTER RAO UES‖
3 Aleksandr Gennadyevich Boris Member of the Management Board of JSC ―INTER
RAO UES‖
4 Ilnar Ilbatyrovich Mirsiyapov Member of the Management Board – Head of
Strategy and Investment Unit of JSC ―INTER RAO
UES‖
5 Valeriy Valeryevich Murgulets Member of the Management Board – Head of
Innovation, Investment and Cost Management Unit
of JSC ―INTER RAO UES‖
6 Pavel Ivanovich Oklei Member of the Management Board – Head of
Production Activity Unit of JSC ―INTER RAO
UES‖
7 Dmitriy Nikolaevich Palunin Member of the Management Board – Head of
financial and economic center of JSC ―INTER RAO
UES‖
8 Aleksandr Aleksandrovich Pakhomov Member of the Management Board – Head of Legal
Support Unit of JSC ―INTER RAO UES‖
9 Sergey Yuryevich Rumyantsev Member of the Management Board – Director of
Economy of JSC ―INTER RAO UES‖
10 Yury Vladimirovich Sharov Deputy Chairman of the Management Board – Head
of Capital Construction and Engineering Unit of JSC
―INTER RAO UES‖
11 Karina Valeryevna Tsurkan Member of the Management Board – Head of
Trading Unit of JSC ―INTER RAO UES‖
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
16
Composition of the Company’s Management Board from December 14 to December 31, 2012
1 Boris Yuryevich Kovalchuk Chairman of the Management Board of JSC ―INTER
RAO UES‖
2 Vyacheslav Yuryevich Artamonov Deputy Chairman of the Management Board of JSC
―INTER RAO UES‖
3 Aleksandr Gennadyevich Boris Member of the Management Board of JSC ―INTER
RAO UES‖
4 Ilnar Ilbatyrovich Mirsiyapov Member of the Management Board – Head of
Strategy and Investment Unit of JSC ―INTER RAO
UES‖
5 Valeriy Valeryevich Murgulets Member of the Management Board – Head of
Innovation, Investment and Cost Management Unit
of JSC ―INTER RAO UES‖
6 Pavel Ivanovich Oklei Member of the Management Board – Head of
Production Activity Unit of JSC ―INTER RAO
UES‖
7 Dmitriy Nikolaevich Palunin Member of the Management Board – Head of
financial and economic center of JSC ―INTER RAO
UES‖
8 Aleksandr Aleksandrovich Pakhomov Member of the Management Board – Head of Legal
Support Unit of JSC ―INTER RAO UES‖
9 Yury Vladimirovich Sharov Deputy Chairman of the Management Board – Head
of Capital Construction and Engineering Unit of JSC
―INTER RAO UES‖
10 Karina Valeryevna Tsurkan Member of the Management Board – Head of
Trading Unit of JSC ―INTER RAO UES‖
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
17
II. BASIC PROVISIONS OF THE ACCOUNTING POLICY
These accounting (financial) statements of the Company have been prepared based on the following
accounting policy.
Basic Approaches to Preparation of the Annual Accounting (Financial) Statements
Acounting (financial) statements of the Company are drawn up proceeding from the rules of
accounting and reporting applicable in the Russian Federation, particularly, Federal Law dd. December
06, 2011 No. 402-FZ On Accounting, Regulations On Accounting ―Accounting Policy of the
Organization‖ PBU 1/2008 approved by order of the Ministry of Finance of the Russian Federation dd.
December 9, 1998 No. 60n, Regulation On Accounting and Reporting in the Russian Federation
approved by order of the Ministry of Finance dd. July 29, 1998 No. 34n, Regulation On Accounting
―Accounting Reports of the Organization‖ PBU 4/99, approved by order of the Ministry of Finance of
the Russian Federation dd. July 06, 1999 No. 43n.
Uncertainty of accounting estimates
There are basic assumptions given below, which concern future events, as well as other sources of
uncertainty of accounting estimates as of the reporting date, which imply considerable risk of the
necessity to make material adjustments in the book value of assets and liabilities in the next reporting
year:
- Provision for doubtful debts
- Provision for depreciation of inventories
- Provision for depreciation of financial investments
- Provision for liabilities and charges
- Reserve for contingency
- Useful life of intangible assets and fixed assets.
Fixed assets
Fix assets account the property with the useful life of over 12 months. Housing facilities, including
apartments, are accounted in fixed assets.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
18
Completed, commissioned, and actually used items of immoveable property, documents to which have
been submitted for state registration, are accounted separately in fixed assets.
Purchased items with initial value up to 40 thsd. rubles per item are accounted in the inventories.
Items of fixed assets are accepted for accounting depending on the actual costs of their purchasing
(erection).
Upon purchasing items of fixed assets under the contracts that provide for discharge of liabilities not in
cash, initial cost of such items shall be the cost of valuables transferred or to be transferred. The cost of
valuables either transferred or to be transferred by the Company is determined proceeding from the
price at which the Company usually determines the cost of similar valuables in the similar
circumstances. The Company has not acquired items of fixed assets other than for money in the
reporting period.
The Company carries out revaluation of fixed assets in case if current (replacement) value of fixed
assets differs considerably from the value reflected in the Company’s books. Considerable difference
shall be the difference of cumulative replacement value of a group of similar items from the current
(replacement) value of this group of similar items by 20 %.
Revaluation shall be done for the following equipment:
- Steam boilers, except for central heating boilers
- Power distributing equipment and control equipment
- Process control equipment.
In the year of report, the Company did not carry out revaluation of fixed assets for the reason of
retirement of the groups of equipment being subject to revaluation.
Fixed assets are shown in the accounting (financial) statements at their initial value minus amortization
accumulated for the time of operation.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
19
Depreciation of fixed assets is charged using straight-line method.
Depreciation of fixed assets, including fixed assets received during reorganization in 2008, is
calculated proceeding from the useful life, as determined in accordance with the Classification of
Fixed Assets Included in the Depreciation Groups approved by resolution of the Government of the
Russian Federation on January 1, 2002 No. 1. Useful life for the groups of fixed assets approved by the
Company is given below.
Group of Fixed Assets Useful Life (years) of Items Put on the Books
Buildings 7 - 101
Structures and transmitting equipment 13 - 40
Machines and equipment 7 - 30
Transport vehicles 5 - 15
Production and household inventory 3 - 10
Other types of fixed assets 3 - 15
Land plots and objects of nature management -
No Depreciation is charged on:
- Land plots
- Objects completely depreciated but not written off from the balance sheet
- Fixed assets temporary closed down.
Profits and loss from retirement of fixed assets are reflected in the statement of financial results in the
structure of other profits and losses.
Expenses on credits and loans received for purchasing, erecting, making items of fixed assets, accrued
before putting such items of fixed assets on the books, are included in their initial value, and those
accrued after putting the items of fixed assets on the books are reflected in the statement of financial
results in the structure of other expenses.
Leased fixed assets are reflected off-balance at the value specified in the lease agreement.
Intangible Assets
Intangible assets are accepted for accounting at their initial value. The initial value of intangible assets
acquired for a fee is specified in the actual costs of purchase.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
20
The initial value of intangible assets received under agreements that provide for discharge of liabilities
in kind is determined based on the value of goods (valuables) transferred or subject to transfer. If it is
impossible to determine the value of goods (assets) transferred or subject to transfer under such
agreements, the value of intangible assets received by the Company is fixed based on the price at
which similar intangible assets are acquired in comparable circumstances. The Company has not
acquired intangible assets objects for consideration in kind in the reporting period.
Depreciation of intangible assets is charged using a straight-line method, based on the following terms
of useful life:
- Rights to software products - 2 to 10 years.
- Rights to use a trade mark - 7 to 10 years.
In the accounting (financial) statements intangible assets are shown at their initial value minus
depreciation accumulated for the entire period of use.
Expenses for Research and Development, Experiment/Design and Technology Works (R&D)
Costs of research and development, experiment/design and technology works are subject to writing-off
to costs of usual kinds of activity during the fixed period of useful operation. If use of the results of a
certain research and development, experiment/design and technology work in the manufacture of
products (performance of work, provision of services) or for the Company's administrative needs is
terminated, the amount of costs is subject to be written-off to costs of the reporting period. Decision on
non-use of the R & D results is made based on an analysis of the Company's middle-term and/or long-
term development plans.
Information concerning the costs of research and development, experiment/design and technology
works is reflected on the balance sheet in Non-current assets section. The Company reflects costs of
research and development, experiment/design and technology works in the line item Research and
development results. Writing-off to costs is carried out using a linear method.
Inventories
The following assets shall be regarded by the Company as inventories:
Used as raw, materials etc. when manufacturing products intended for sale (performance of
works, provisions of services).
Intended for sale.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
21
Used for the organization’s administrative needs.
Inventories are evaluated in the sum of actual costs of purchase (manufacture) thereof. If the cost of
materials is reduced, the Company shall create a provision for depreciation. Provision is calculated
using the method that implies determination of the market value (possible selling price) of low-rotation
inventories, except for inventories included in the following groups:
Materials transferred for processing
Special equipment and special clothing in use.
Rotation is considered to be low if the sum of write-offs for inventory costs during the period of report
makes less than 5 % of their book value at the beginning of the year of report. The sum of reserve is
accounted in the structure of other expenses. In the year of report the Company did not create a
provision for depreciation of materials.
Evaluation of inventories upon their retirement is carried out:
By actual net value of each item - for writing off the goods for re-sale (purchased electricity
(power));
According to a FIFO method – for all other inventories.
Inventories acquired for construction, modernization or reconstruction of fixed assets objects are
reflected on the balance sheet in Non-current assets section on the line ―Other non-current assets‖. All
the rest of inventories are reflected on the balance sheet in the structure of current assets.
Receivables
Accounts receivable from buyers and customers have been determined based on the prices fixed by
agreements between the Company and buyers (customers), taking into account all discounts
(surcharges) provided/charged by the Company, VAT and prices as established under the contract.
Receivables repayable (payable) within 12 months after the reporting date are reflected on the balance
sheet in the structure of current assets. Receivables repayable (payable) within more than 12 months
after the reporting date are reflected on the balance sheet in Non-current assets section on the line
―Other non-current assets‖.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
22
The Company forms a provision for bad debts in respect of trade and other accounts receivable. The
provision is formed for each bad debt not repaid within a period exceeding 1 month, unless it is
secured with pledge, surety or a bank guarantee.
The main factor influencing the calculation of the provision amount is the period of delay in payment.
The Company has accepted the following principles of calculation of this provision:
Period of delay in payment, months Provision, %
Over 12 months 100
From 6 to 12 months 50
From 3 to 6 months 15
From 1 to 3 months 5
Less than 1 month No provision is formed
This method does not apply to receivables of subsidiaries and affiliated companies. The Company has
the right to change or apply a separate provision rate in respect of individual debtors in the case of
information received, which allows making a conclusion on a significant change in their financial
situation. The last rule also applies to subsidiaries and affiliated companies.
With respect to the suppliers’ receivables (advance payments granted), the Company charges a
provision in the event of the supplier’s failure to comply with its obligations within the term stipulated
by the agreement.
Period of delay in performing obligations on advance payments
granted, months
Provision, %
Over 12 months 100
From 6 to 12 months 50
Income
Proceeds are accepted for accounting in the amount calculated in monetary terms equal to the amount
of cash and other property received, and/or to the amount of receivables (subject to the provisions of
Clause 3 of the Rules of Accounting Incomes of Organization PBU 9/99 No. 32n (as amended on
December 30, 1999; March 30, 2001; September 18, 2006, and November 27, 2006)). If the funds
received cover a part of proceeds only, then the proceeds accepted for accounting are defined as the
amount of the funds received and the receivables (to the extent not covered with the funds received).
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
23
Proceeds are recognized by the Company in accounting if the following conditions are simultaneously
met:
The organization is entitled to such proceeds, as follows from a certain agreement, or as duly
confirmed otherwise.
The amount of proceeds may be determined.
There is confidence that economic benefits will grow as a result of a certain transaction.
The right of ownership (possession, use, or disposal) for products (goods) has passed from the
organization to the buyer, or the work has been accepted by the customer (service has been
provided).
The costs, which have been or may be incurred in connection with such transaction, may be
determined.
The structure of other incomes includes proceeds from lease of property, interests charged upon
borrowed funds provided (including upon deposits placed), income from participation in other
organizations, income from revaluation of financial investments, income from sale of currency and
fixed assets, disposal of financial investments and other assets, penalties receivable under agreements
in the area of power trade-in, profits of previous years, positive exchange differences, changes in the
accounting estimates etc. The Company also accounts stock-market variation margin received from
transactions in sale/purchase of futures at the Moscow Energy Exchange in the structure of other
incomes.
Costs
The Company's costs are recognized in the reporting period in which they are incurred, irrespective of
payment of funds.
The net value of trading transactions (purchase of electricity (power) in the domestic market, import of
electricity, sale of electricity without delivery to the RF customs territory) consists in the costs of
purchase of electricity and power.
The prime cost of products manufactured includes plants' general production and general business
costs. General production and general business costs are distributed among the kinds of products
manufactured pro rata to the production cost price of separate kinds of products.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
24
The Company's commercial costs are not distributed among the prime cost of separate kinds of sales.
The structure of commercial costs includes costs of transportation of electricity, loss of electricity,
customs payments, wages of personnel engaged in trading and selling activity, etc.
Management costs of the Company’s Executive Office are not distributed among the prime cost of
separate kinds of sales.
The structure of other costs includes costs connected with lease of property, interests charged upon
borrowed funds provided, costs of sale of currency and fixed assets, disposal of financial investments
and other assets, penalties payable under agreements in the area of power trade-in, losses of previous
years, negative exchange differences, chaitable contributions, changes in the accounting estimates etc.
The Company also accounts stock-market variation margin paid on transactions in sale/purchase of
futures on the Moscow Energy Exchange in the structure of other costs.
Accounting of Loans and Credits
The indebtedness under a loan and/or a credit is reflected by the Company in the amount of the funds
actually received or in the value of other assets assessment stipulated by an agreement at the moment
of actual transfer of the funds or other assets.
Indebtedness at the end of the reporting period is stated subject to interests payable in the structure of
payables. The Company charges interests depending on the terms of agreement.
Indebtedness under loans and/or credits received is subdivided in accounting into short-term and long-
term, as well as into mature and overdue. The Company transfers liabilities from long-term to short-
term when, according to the terms of agreement, 365 (or 366) days remain to repayment of the
principal part of the debt.
Additional charges connected with receipt of loans and/or credits are included as a lump-sum in the
structure of other costs at the moment of arising thereof. Payments to the banks in consideration for
credit line opening are reflected in the statement of financial results in the structure of interests
payable.
Financial Investments
Financial investments are accepted for accounting based on the actual costs of their purchase.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
25
Financial investments for which current market value can be determined in accordance with
established procedure are accounted in the accounting (financial) statements at the end of the year of
report at their current market value. The difference between evaluation of financial investments at their
current market value on the date of report and previous evaluation of financial investments is classified
as financial results in the structure of other profits and expenses. Such revaluation is done once a year,
while drawing up the annual accounting (financial) statements.
Financial investments for which no current market value is determined are reflected in the accounting
balance-sheet as of the end of the year of report at their book (balance-sheet) value minus provision for
depreciation of financial investments, created for assets for which there are conditions of stable
considerable depreciation as of the date of report.
Provision for depreciation of financial investments is created once a year, based on the inventory
results as of December 31 of the year of report. Upon determining the amount of provision, the
Company based on available information determines the estimated cost of financial investments with
the signs of stable depreciation, and creates a provision for depreciation of financial investments for a
sum of excess of book (balance-sheet) value of these investments over their estimated cost. In respect
of loans issued to third parties, the Company forms a provision for depreciation proceeding from the
following principles:
Period of delay in payment, months Provision, %
Over 36 months 100
From 30 to 36 months 75
From 24 to 30 months 50
From 18 to 24 months 25
From 12 to 18 months 10
From 6 to 12 months 5
Less than 6 months No provision is formed
The total amount of the provision formed is attributed to other costs.
Accounting of REPO transactions is carried out according to the procedure similar to accounting of
loans provided. Income from REPO transactions is determined as the difference between the prices of
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
26
purchase and repurchase of the object of a transaction, and are reflected in the structure of interest
incomes.
If an asset disposes, which has been accepted for accounting as a financial investment the market value
for which cannot be determined, its value is determined based on the initial value of each unit of
financial investments.
Income and costs from financial investments are reflected in the structure of other income and costs.
Income and costs from transactions with financial bills of exchange are reflected in the statement of
financial results in details.
Property Appraisal Methods
In accordance with Clause 1, Art. 12 of the Federal Law No. 402-FZ, assets and liabilities are
evaluated for their reflection in accounting and in the accounting (financial) statements in monetary
terms.
Property acquired for a consideration is evaluated by summing up the actual costs of purchase thereof;
property received on a free of charge basis – at its market value at the date of registration; property
produced by the organization – at the cost of manufacture thereof.
Depreciation of fixed assets and intangible assets is charged irrespective of the results of the
Company's business activities in the reporting period.
Cash and Cash Equivalents, Reflection of Cash Flows
Cash and Cash Equivalents
For the purpose of preparing Statement of cash flow, the Company includes in the structure of cash the
cash equivalents, which mean short-term highly liquid financial investments that may easily be
converted to a known amount of cash and are subject to an insignificant risk of changes in value. In
particular, the Company attributes to cash equivalents the deposits in credit institutions issued at the
request and/or with a maturity of three months or less, as well as highly liquid bank bills of exchange
with a maturity up to three months. For the purpose of preparing balance sheet, the Company includes
in the structure of cash the cash equivalents.
Minimized Reflection of Cash Flows
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
27
Cash flows are reflected in the statement of cash flows minimized in cases where they characterize not
only the organization's activities, but the activities of its contractors. In particular, the Company
reflects the principal’s cash flows minimized in cases where the Company is a commission agent or an
agent.
Cash flows are also reflected in the statement of cash flows minimized in cases where they are
distinguished by a great turnover, large amounts and shorter repayment periods. Likewise, income and
expenses from foreign exchange transactions are reflected minimized (purchase/sale of foreign
currency).
Accounting of Cash Flows in Foreign Currency
For the purpose of drawing up a statement of cash flow, the sum of cash flows in foreign currency is
converted in Russian rubles according to the exchange rate of this foreign currency to Russian ruble, as
established by the Central Bank of the Russian Federation on the date of making and receiving
payment.
Other
Assets and Liabilities in Foreign Currencies
Upon accounting economic transactions settled in foreign currency, official exchange rate of foreign
currency to Russian ruble established on the date of transaction shall apply. The cost of currency notes
in the Company’s cash desk, funds kept at bank accounts (bank deposits), money and payment
documents, securities (except for shares), resources in settlements, including those on loan obligations
(except for funds received, and advance payments and downpayment paid), expressed in foreign
currency, is reflected in the accounting (financial) statements in the sums calculated on the basis of
official exchange rate on December 31, 2012. Exchange rates on this date made 30.3727 RUB per 1
US Dollar (December 31, 2011 – 32.1961 RUB), 40.2286 RUB per 1 EUR (December 31, 2011 -
41.6714 RUB).
Exchange difference shall be classified in the financial results of the Company as other profits or other
expenses, except for exchange difference connected with formation of the authorized capital of the
Company, which is to be classified as additional capital.
Accounting of Financial Instruments of Forward Deals
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
28
The Company settles transactions with financial instruments of forward deals (FIFD) for the purpose
of hedging currency, interest and other risks. Upon settling transactions with FIFD, the books shall
reflect the settlements connected with fulfillment of respective contracts. At the moment of settling the
deal, no records in the books are made. Profits and expenses on the transactions with FIFD are
determined as of the closing date of the period of report, as of the date of interim settlements (if
provided for by the contract), and as of the date of deal settlement.
The financial result from transactions with FIFD on hedging the interest risk under a credit is reflected
in the structure of interests receivable (payable); for other transactions – in the structure of other
income/charges.
Deferred Costs
Costs incurred by the Company in the accounting year, but relating to forthcoming reporting periods,
have been reflected as deferred costs. These costs are written off evenly during the period to which
they relate. The duration of such period is fixed at the moment of acceptance of deferred costs for
accounting.
The structure of deferred costs includes such costs as: software products for which the Company has
no exclusive rights; licenses and certificates obtained; compensations paid to advisers and/or
intermediaries for the conclusion of agreements being a source of economic benefits for the Company
during several reporting periods, other costs.
Deferred costs related to periods after expiration of the year following the accounting year have been
shown on the balance sheet in Non-current assets section on the line Other non-current assets. Deferred
costs subject to a write-off within 12 months are reflected on the balance sheet in the structure of
current assets on line Other current assets.
Authorized, Additional, and Reserve Capital
Authorized capital is reflected as par value of ordinary shares. The amount of the authorized capital
corresponds to the amount specified in the Company’s Articles of Association.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
29
Additional capital of the Company includes the sum of increase in the value of the items of fixed assets
determined during revaluation, paid-in capital received in the result of distributing the Company’s
shares at the price exceeding their par value.
In accordance with the Articles of Association, the Company creates a reserve fund in the amount of
15 % of the authorized capital.
Procedure for Formation of the section “Capital and Provisions” During Company’s Reorganization
through Affiliation of Reorganized Companies to the Company
During reorganization, the Company forms a balance-sheet section ―Capital and Provisions‖ in a
special way, as set forth in the order of the Ministry of Finance No. 44n dd. 20/05/2003 On Approving
Procedural Guidelines For Formation Of Accounting (Financial) Statements During Reorganization
Of Companies, i.e.:
- Authorized capital of legal successor (JSC ―INTER RAO UES‖) is formed in the sum fixed
in the contract of affiliation; yet, if the contract of affiliation provides for reduction of the legal
successor’s authorized capital against the sum of authorized capitals of affiliated companies, the
difference between algebraic sum of authorized capitals of all reorganized companies and the
authorized capital fixed in the contract of affiliation shall be reflected in the legal successor’s balance
sheet in the section ―Capital and Provisions‖ as a numerical indicator ―Undistributed income
(uncovered loss)‖
- If the cost of legal successor’s net assets exceeds the sum of authorized capital fixed in the
contract of affiliation during conversion of shares, numerical indicators of the section ―Capital and
Provisions‖ of accounting balance-sheet shall be formed in the amount of net assets, with division into
authorized capital and additional capital
- In other cases the difference is accounted in ―Undistributed income (uncovered loss)‖
- Other balance-sheet items in the section ―Capital and Provisions‖, such as revaluation of capital
assets, reserve capital, treasury shares, are formed on the basis of legal successor’s (JSC ―INTER RAO
UES‖) data.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
30
Segment Reporting
Risks and profits of the Company are mainly defined by distinctions between the geographical regions
where the Company sells electricity. Therefore, primary accounting segment is geographic – by
regions of sales markets.
Profits of the primary segment are distributed by segments, depending on geographically defined place
of ownership transfer from the Company to the buyer of electricity (irrespective of the buyer’s country
of incorporation).
Secondary segment is operational segment. The Company discloses information on the operational
segments with the breakdown by proceeds received, assets and capital investments.
Changes in the Accounting Policy
In accordance with the Orders of the Ministry of Finance of the Russian Federation taking effect with
accounting (financial) statements for the year 2012, the following documents have been approved:
Regulation on accounting ―Accounting of costs of natural resources development‖ (RAS 24/2011)
Federal Law ―On Accounting‖ No. 402-FZ dd. February 6, 2011;
Federal Law ―On Consolidated Accounting (Financial) Reporting‖ No. 208-FZ dd. July 27, 2010.
Changes in the laws did not affect the Company’s accounting policy in 2012. In 2012 no considerable
changes were made to the Company’s accounting policy. The Company does not plan making
considerable changes to the accounting policy for the year 2013 if compared to the year 2012.
III. CHANGES TO THE OPENING BALANCE-SHEET
Changes to the opening balance, indicators of the statement of financial results, statement of changes
in equity for the years 2011-2010 were not made.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
31
IV. DISCLOSURE OF SIGNIFICANT PARAMETERS
1. INTANGIBLE ASSETS
Flow of intangible assets during the year of report is shown in the table below:
Name of the
indicator Code Period
As of the beginning of the year Changes for the period As of the end of the year
received
disposed
accumulated
depreciation original value accumulated
depreciation original value
accumulated
depreciation
and
impairment
losses
original value
accumulated
depreciation
and
impairment
losses
Intangible assets
- total
5100 2012 14 317 (7 687) 78 886 (12 804) 8 019 (4 874) 80 399 (4 642)
5110 2011 8 607 (6 074) 6 710 - - (2 613) 14 317 (7 687)
including:
Exclusive rights
to software
products
5101 2012 14 086 (7 611) 78 886 (12 804) 8 019 (4 846) 80 168 (4 438)
5111 2011 8 376 (5 026) 5 710 - - (2 585) 14 086 (7 611)
Other IA 5102 2012 231 (76) - - - (28) 231 (104)
5112 2011 231 (48) - - - (28) 231 (76)
As of December 31, 2012 the Company has no intangible assets that are subject to depreciation and
have indefinite period of useful life. Remaining period of useful life of intangible assets amounts to:
For exclusive rights to software products – from 3 to 5 years
For a trade mark – from 3 to 7 years.
Initial value of intangible assets in the year of report did not change, useful life was not revised.
Intangible assets with fully paid value, but not written off the books, make 0.5 % (378 thsd. rubles) of
the book value of exclusive rights to software products. The Company has no intangible assets created
by the Company itself.
In the year of report the Company included in its intangible assets exclusive rights to creating
information systems for management of Company’s activity, which have been developed on the basis
of ORACLE software. These systems include:
Software complex ―Unified Information System of Procurements‖ designed for
procurement management in JSC ―INTER RAO UES‖;
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
32
Software complex ―TAS/INTER IAS‖ designed for information and analytical support of
decision-making with regard to the sale of electricity at the wholesale market;
- Software complex ―Property Complex Management System‖ designed for corporate
management of assets in INTER RAO UES Group;
Information system ―Register of Lawsuits‖.
In the year of report the Company excluded from its intangible assets exclusive rights to software
products in the result of their sale to 100 % subsidiary INTER RAO – Electric Power Plants, OJSC,
because of termination of Company’s activity. These intangible assets have been sold at a market price
calculated by the appraiser. The loss from sale made 3 thsd. rubles.
2. RESEARCHES AND DEVELOPMENTS RESULTS (R&D)
R&D process and results during the year of report are shown in the table below:
Name of the indicator Code Period
As of the beginning of the
year Changes for the period
As of the end of the year
received
disposed part of
the cost
expensed as
incurred for
the period original
value
part of the
cost
expensed as
incurred
original
value
part of the
cost
expensed as
incurred original value
part of the
cost
expensed as
incurred
R&D - total 5140 2012 1908 - - - (670) (1238) - -
5150 2011 5555 - 3409 - - (7056) 1 908 -
including:
Development to improve the
reliability of the heat-recovery
boilers PGU-450T of the North-
Western Thermal Power Plant
5141 2012 - - - - - - - -
5151 2011 4263 - - - - (4263) - -
Development of dynamic OES
model of the North-Western
Thermal Power Plant
5142 2012 - - - - - - - -
5152 2011 458 - - - - (458) - -
Development and testing of
dynamic model of the Finnish
energy system
5143 2012 - - - - - - - -
5153 2011 834 - - - - (834) - -
Development for studying heat
energy market in terms of
developing the TPP capacity to the
project level
5147 2012 1786 - - - (670) (1116) - -
5157 2011 - - 2679 - - (893) 1786 -
Development of software and
graphic modules of thermal circuit
of the North Western Thermal
Power Plant
5148 2012 122 - - - (122) - -
5158 2011 - - 730 - - (608) 122 -
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
33
R&D process and unfinished and non-documented results thereof, as well as unfinished transactions on
purchasing intangible assets throughout the year of report is shown in the table below.
Name of the indicator Code Period As of the
beginning
of the year
Changes for the period
As of the
end of the
period expenses
for the
period
expenditures expensed as
incurred without giving a
positive result reclass
accepted to be registered
as intangible assets or
R&D
Expenses on unfinished
researches and developments -
total
5160 2012 - 136 300 - - (78 886) 66 416
5170 2011 160 379 14 968 (21 696) (140 242) (3 410) -
including: Development of software and
graphic modules of thermal
circuit of the North Western
Thermal Power Plant
5161 2012 - - - - -
5171 2011 730 - - - (730) -
Development to create and test
low emission combustion
chamber GTE-110
5162 2012 - - - - - -
5172 2011 127 954 12 288 - (140 242) - -
Development of scheme of
power distribution of
Baltiyskaya NPP
5163 2012 - - - - - -
5173 2011 21 695 - (21 695) - -
Development of heat energy
market model in terms of
developing the TPP capacity to
the project level
5167 2012 - - - - - -
5177 2011 - 2 680 - (2 680) -
Development of automated
management systems of
Company’s activity
5168 2012 - 134 073 - - (78 885) 55 188
5178 2011 - - - - - -
Other developments 5169 2012 - 1 227 - - - 1 227
5179 2011 - - - - - -
As of 31/12/2012б the scope of unfinished transactions on purchasing intangible assets include the
costs of creating automated information systems for management of Company’s activity, which have
been developed on the basis of different software products. They include the management system for
Company’s investment programs, management of IT activity, corporate planning etc. As of
31/12/2012 the costs of creating the said systems amounted to 55,188 thsd. rubles. Their
commissioning is planned for the first half-year of 2013.
In the Company’s accounting balance-sheet unfinished transactions on purchasing intangible assets are
reflected in the line 1190 ―Other intangible assets‖.
3. FIXED ASSETS AND INCOME BEARING INVESTMENTS IN TANGIBLE ASSETS
Book value of fixed assets as of December 31, 2012 amounted to 3,230,333 thousand rubles
(19,126,014 thousand rubles - as of December 31, 2011; 39,431,218 thousand rubles – as of December
31, 2010). Book value of completely depreciated fixed assets with no consideration to wear and tear as
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
34
of December 31, 2012 amounted to 66,838 thousand rubles (110,229 thousand rubles - as of December
31, 2011; 276,264 thousand rubles - as of December 31, 2010). The Company has not got any pledged
fixed assets.
Fixed Assets Acquisition
During the year of report the Company commissioned new items of fixed assets (not including those
received from reorganization), including upgraded items, for a total sum of 9,926,700 thsd. rubles
(15,183,517 thsd. rubles in 2011). Items of fixed assets of the 2nd
power unit of CCP-325 of the branch
"Ivanovskie PGU" have been commissioned. Initial value of the said items amounted to 9,599,152
thsd. rubles. In the executive bodies of the Company items of fixed assets with the initial value of
304,418 thsd. rubles (13,603 thsd. rubles in 2011) have been commissioned. They are mainly server,
network and communication equipment.
In November 2012 the Company received on its balance buildings and structures in the result of
affiliation with JSC ―Bashenergoaktiv‖ 3
. According to the general conditions of formation of spin-off
balance-sheet of JSC ―Bashkirenergo‖, the property, including fixed assets, are transferred to its legal
successor at their book value. Book value of buildings and structures amounted to 124,491 thsd. rubles
according to the deed of transfer, including facilities accounted in the structure of fixed assets in the
amount of 55,106 thsd. rubles, and facilities accounted in the structure of income-bearing investments
in tangible assets in the amount of 69,385 thsd. rubles.
Retirement of Fixed Assets
In 2012 the Company continued its operations on transferring fixed assets to 100 % subsidiary –
INTER RAO – Electric Power Plants, OJSC – for the purpose of implementing the decision made in
2011 on the shutdown of electricity and heat energy production, and transferring this function to the
said company. As of 31/12/2012 the book value of the items of fixed assets sold amounted to
25,078,548 thsd. rubles (in 2011 – 3,101,420 thsd. rubles). The sum of liquidated items of fixed assets
amounted to 68,311 thsd. rubles (in 2011 – 2,718 thsd. rubles).
3 Bashnergoaktiv‖ was formed in November 2012 through separation during reorganization of JSC ―Bashkirenergo‖.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
35
3.1
. A
vail
ab
ilit
y a
nd
flo
w o
f fi
xed
ass
ets
As
of
the
end o
f th
e yea
r
Acc
um
ula
ted
dep
reci
atio
n
(884 8
11)
(1 7
11 3
58)
(752 7
77)
(1 0
21 2
48)
(124 6
48)
(641 4
83)
(5 3
19)
(35 2
64)
(1 8
81)
(12 3
53)
(186)
(1 0
10)
Reg
iste
red
as
inco
me
bea
rin
g i
nves
tmen
ts i
n t
he
tan
gib
le a
sset
s -
tota
l (4
55)
(1 4
52)
-
(1 4
52)
(134)
-
(418)
Ori
gin
al v
alue
4 1
15 1
44
20 8
37 3
72
3 6
37 8
73
8 9
47 7
13
409 0
21
11 7
84 8
14
51 7
20
50 4
22
7 1
50
30 2
86
2 0
40
22 7
63
7 3
40
1 3
74
85 2
79
43 5
05
-
4 3
05
59 0
41
-
26 2
38
Chan
ges
for
the
per
iod
Dec
reas
e in
cost
due
to
Par
tial
liquid
atio
n
Div
esti
ture
of
faci
liti
es
(70 0
16)
(1 9
36 4
83)|
(69 5
13)
(1 1
48 8
31)
-
(787 0
52)
- -
- -
(503)
(600)
- - - -
- -
- -
-
Dis
posa
l
Acc
um
ula
ted
dep
reci
atio
n
1 5
57 1
76 |
14 0
78
129 |
545 3
93
2 1
04
342
963 5
49
11 8
60 8
05
34 1
31
40 2
57
12 9
79
71 5
99
- -
1 1
24
1 1
26
1 7
07
-
1 7
07
-
- -
-
Dis
posa
l O
rigin
al
val
ue
(26 7
04 0
35)
(47 1
03 0
44)
(8 1
11 6
65)
(14 8
14 6
75)
(18 4
91 6
08)
(32 1
01 9
03)
(49 7
67)
(51 1
89)
(25 7
63)
(110
041)
(23 8
57)
(20
522)
(1 3
75)
(4 7
14)
(43 5
05)
-
(43
505)
-
- -
-
Dep
reci
atio
n
(730 6
29)
(2 4
63 8
07)
(276 9
22)
(551 1
79)
(446 7
14)
(1 8
93 3
07)
(4 1
86)
(8 4
19)
(2 5
07)
(10
452)
- -
(300)
(450)
(807)
(890)
(255)
(890)
(134)
(418)
Incr
ease
in c
ost
due
to D
ow
nsi
zing o
f F
A
obje
cts
70 0
16
1 9
36 4
84
69 5
13
873 0
40
-
1 0
62 8
44
- -
- -
503
606
- - - -
- -
- -
-
Moder
niz
atio
n,
reco
nst
ruct
ion o
f th
e
FA
obje
cts
1 2
17 4
06
635 8
27
1 2
15 3
45
221 4
24
2 0
61
414 4
03
- -
- -
- -
- - - -
- -
- -
-
Rec
eipt
8 7
64 4
01
| 14 5
47 6
90
1 5
86 4
80
3 0
59 0
52
7 1
13 7
54
11 4
63 8
87
51 0
65
9 9
30
2 6
27
13 1
83
Lan
d p
lots
an
d o
bje
cts
of
natu
re m
an
agem
ent
3 1
34
1 6
38
7 3
41
-
85 2
79
| 25 0
97 |
Tra
nsf
er i
nto
ren
t re
sid
ual
pre
mis
es
-
25 0
97
59 0
41
-
Mach
ines
an
d e
qu
ipm
ent
26 2
38
As
of
the
beg
innin
g o
f th
e yea
r
Acc
um
ula
ted
dep
reci
atio
n
(1 7
11 3
58)
(13 3
25 6
80)
(1 0
21 2
48)
(2 5
74 4
11)
(641 4
83)
(10 6
08 9
81)
Tools
an
d u
tili
ty a
cces
sori
es
(35 2
64)
(67 1
02)
(12 3
53)
(73
500)
- -
(1 0
10)
(1 6
86)
( 1 4
52)
(562)
(1 4
52)
(562)
- - -
Ori
gin
al v
alue
20 8
37 3
72
52 7
56 8
98
incl
ud
ing
Bu
ild
ings
an
d c
on
stru
ctio
ns
8 9
47 7
13
20 7
57 7
03
Mach
ines
an
d e
qu
ipm
ent
11 7
84 8
14
31 7
32 6
35
50 4
22
91 6
81
Tra
nsp
ort
veh
icle
s
30 2
86
127 1
44
22763
41 6
47
Oth
er t
yp
es o
f fi
xed
ass
ets
1 3
74
6 0
88
43 5
05
18 4
08
incl
ud
ing:
43 5
05
18 4
08
Bu
ild
ing
s an
d c
on
stru
ctio
ns
- - -
Code
5200
5210
5201
5211
5202
5212
5203
5213
5204
5214
5205
5215
5206
5216
5200
5210
5220
5230
5220
5230
5220
Per
iod
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
2011
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
36
3.2 Other use of fixed assets
Name of the indicator Code As of December 31,
2012 As of December 31,
2011 As of December 31,
2010
Fixed assets accounted on the balance sheet, including:
Fixed assets transferred into operational lease 5280 2 671 976 771 036 1 780 627
Real estate objects transferred for operation and
actually used being in the process of state
registration 5284 3 368 284 847 1 931 649
Fixed assets on conservation 5285 16 664 26 887 3 092 467
TOTAL 2 691 998 1 082 770 6 804 633
Fixed assets accounted on the off-balance sheet , including:
Fixed assets received into operational lease, total 5283 18 702 263 43 034 004 868 210
Fixed assets received into operational lease
(leasing) 5283 678 417 678 417 2 734 141
TOTAL 19 380 680 43 712 421 3 692 361
Leased Fixed Assets
Fixed Assets Received on a Leasing Basis
Fixed assets received under leasing agreements are accounted on the lessor's balance sheet. Company
accounts the property received off the balance.
Information on the fixed assets received under leasing agreement is given below:
Name of the object of
leasing
Duration: Value as of
31/12/2011
Arrived in
2012
Disposed in
2012
Value as of
31/12/2012
Aircraft Bombardier
CL-60002B16 2015 678 417 678 417
TOTAL 678 417 - - 678 417
Leasing payments charged in 2012 amounted to 67 148 thousand rubles (64 ,080 thousand rubles - in
2011). Advance payment on the redemption payments for the aircraft as of December 31, 2012
amounted to 231 .189 thousand rubles. (129 ,994 thousand rubles – as of 31/12/2011; 33 ,423 thousand
rubles - as of December 31, 2010).
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
37
Fixed assets Taken on Lease
Information on the fixed assets received under leasing (sub-leasing) agreement is given below:
Name of the object of
leasing Duration:
Value as of
31/12/2011
Arrived in
2012
Disposed in
2012
Value as of
31/12/2012
Main production
equipment of North-
West Thermal Power
Plant February
2012 19 136 712 (19 136 712)
Main production
equipment of
Kaliningradskaya
TEC-2 February
2012 8 824 973 (8 824 973)
Main production
equipment of
Ivanovskie PGU August
2013 7 005 272 8 973 360 15 978 632
Main production
equipment of
Sochinskaya TEC February
2012 4 891 086 (4 891 086)
Main process
equipment of
SochinskayaTEC February
2012 1 644 585 (1 644 585)
Main process
equipment of
Kaliningradskaya
TEC-2 February
2012 411 139 (411 139)
Property of Test stand
of Ivanovskaya GRES August
2013 297 522 (191 533) 105 989
TOTAL
42 211 289 8 973 360 (35 100 028) 16 084 621
Besides the aforesaid equipment, fixed assets taken on lease as of December 31/2012 include land
plots with cadastral value of 1,519,324 thsd. rubles (817,197 thsd. rubles – as of 31/12/2011), office
space of the executive bodies of the Company with the value of 1,095,762 thsd. rubles, and other
equipment for a total sum of 2,556 thsd. rubles (5,518 thsd. rubles – as of 31/12/2011).
4. UNFINISHED CONSTRUCTION
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
38
In 2011 in the process of transferring fixed assets to 100 % subsidiary – INTER RAO – Electric Power
Plants, OJSC – the Company sold the objects of capital investments in purchase (creation) of future
fixed assets required for production activity. The book value of sold objects as of 31/12/2012
amounted to 218,574 thsd. rubles. The sum of liquidated objects of unfinished capital expenditures
unfit for further use amounted to 94,218 thsd. rubles as of 31/12/2012.
Information about the flow and existence of the objects of unfinished construction and unfinished
operations on purchasing and upgrading fixed assets is given in the table below.
Name of the indicator Code Period
Changes for the period
As of the end of
the period As of the
beginning of
the year
expenses for
the period
expenses as
incurred
(including
realized)
Put on the books in
the structure of
fixed
assets/material and
non-material
valuables
Unfinished construction and
unfinished transactions on acquisition,
modernization of fixed assets - total
5240 2012 9 426 348 938 181 (412 687) (9 939 461) 11 381
5250 2011 22 340 149 2 905 428 (617 646) (15 202 684) 9 425 348
including:
expenses for construction and
acquisition of fixed assets objects
5241 2012 9 253 099 934 123 (240 460) (9 935 381) 11 381
5251 2011 22 23 520 1 961 606 (415 542) (14 531 485) 9 253 099
expenses for reconstruction,
modernization of fixed assets objects
5242 2012 172 249 4 058 (172 227) (4 080) -
5252 2011 101 629 943 822 (202 103) (671 099) 172 249
5. OTHER CAPITAL ASSETS
Information on other capital assets of the Company is presented below:
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
39
Name As of December 31,
2012 As of December
31, 2011 As of December
31, 2010 Receivables 26 967 810 3 862 219 2 308 241
Total deferred expenses, including 124 622 1 062 881 331 309
- fee for process integration
of power receivers - 784 748 23 596
- software products 105 545 125 815 138 893
- rights to use land 2 632 105 277 110 536
plots
- commissioning work on new fixed assets 18 738 28 108
- agency fee receivable 4 756 7 134 9 513
- other 11 689 21 169 20 663
Costs of a feasibility study of investments 72 130
Unfinished operations on purchasing intangible assets
56 414
Apartments 3 071 3 071 28 058
Costs of unfinished R&D - - 150 379
Materials intended for modernization of fixed assets 222 443
Value-added tax on the costs of construction of the starting complex of
the second power unit PGU-450 MW of Kaliningrad TPP-2 2 238 840
TOTAL 27 151 917 5 000 301 5 279 270
Flow and structure of receivables is shown in the section 8 ―Long-Term Receivables‖ and in the
section 8.1 ―Long-Term Receivables‖ of this Explanatory Note.
6. FINANCIAL INVESTMENTS
6.1. Long-term financial investments
Financial investments on the balance sheet are shown net of a provision for devaluation of financial
investments in the amount of 334,946,242 thousand rubles as of December 31, 2012 (241,150,388
thousand rubles - as of December 31, 2011, 46,454,407 thousand rubles - as of December 31, 2010).
Shares quoted on the Stock Exchange are reflected on the balance sheet at the market value calculated
by exchange trade organizer (MICEX) on the last working day, December 28, 2012
As of December 31, 2012 the value of provision created for devaluation of financial investments in the
authorized (share) capitals of other companies amounts to 49,387,799 thousand rubles (2,554,855
thousand rubles – as of December 31, 2011; 633,513 thousand rubles – as of December 31, 2010).
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
40
Information about the existence and flow of financial investments in the period of report is shown in
the table below.
Avail
ab
ilit
y a
nd
flo
w o
f fi
nan
cial
inves
tmen
ts
As
of
the
end o
f th
e per
iod
Impai
rmen
t pro
vis
ion
(49 3
87 7
99)
(2 5
54 8
55)
- -
(49 3
87 7
99)
(2 5
54 8
55)
- - - - - - - -
(11 9
76)|
(6 1
92)
- -
(11 9
76)
( 6192) - - - -
(49 3
99 7
75)|
(2 5
61 0
47)
Book v
alue
384 3
34 0
41
243 7
05 2
43
76 8
74 4
78
179 9
97 0
82
301 3
42 0
89
59 5
80 8
79
6 1
00 0
38
4 0
43 7
24
- - -
66 1
22
17 4
36
17436
949 9
61
6 0
34 5
67
28 8
69
3 2
64 9
78
921 0
92
1 7
64 0
89 -
1 0
05 5
00 - -
385 2
84 0
02
249 7
39 8
10
Chan
ges
for
the
per
iod
Rec
lass
134 3
18
(5 4
12 6
97)
(83 5
76)
(47609)
83 5
76
47 6
09
163 1
87
(3 2
85 1
98)
(2 1
27 4
99)
(28 8
69)
-
-
(134 3
18)
5 4
12 6
97
28 8
69
(163 1
87)
3 2
85 1
98
2 1
27 4
99
- -
Dev
aluat
ion
pro
vis
ion
(46 8
32 9
44)
(1 9
21 3
42)
(46
832 9
44)
(1 9
21 3
42)
-
-
(5 7
84)
25 4
86
(5 7
84)
25 4
86
(46 8
38 7
28)
(1 8
95 8
56)
Infl
uen
ce o
f
mar
ket
quota
tions,
exch
ange
rate
dif
fere
nce
s,
dis
count
on b
ills
of
exch
ange
1 8
70 6
41
(120 0
67 8
10)
1 8
59 7
59
(119 8
38 1
95)
-
8 4
95
(172 1
30)|
(57 5
35)
2 3
87
50 -
20 9
37
128 0
04
171 0
38
31 4
98
(150
101)
157 7
69
(61 2
63)
1 8
91 5
78
(119 9
39 8
06)
Dis
pose
d (
repai
d)
(150 3
99 7
36)
(8 8
03 9
21)
(150 3
01 7
71)
(5 7
37 6
79)
(3 0
65 2
83)
(58 3
25)
(959)
-
(39 6
40)
-
-
(12 4
25 2
77)
(9 9
03 0
42)
(8 3
37 1
76)
| (1
582 8
24)|
(1 7
32 6
01)
(5 2
73 9
82)
(2 3
55 5
00)
(980 0
00)
(2 0
66 2
36)
(162 8
25 0
13)
(18 7
06 9
63)
Rec
eived
289 0
23 5
75
330 9
01 7
51
45 4
02 9
84
281 2
95 1
08
241 6
77 6
34
46 9
15 4
00
1 9
42 9
57
2 6
19 3
57 -
66 0
72
5 8
14
7 4
54 0
52
6 3
44 4
94
4 9
01 1
60
3 8
98 2
18
1 2
02 8
92
460 7
76
1 3
50 0
00
1 9
85 5
00
-
296 4
77 6
27
337 2
46 2
45
As
of
the
beg
innin
g o
f th
e yea
r
Dev
aluat
ion
pro
vis
ion
(2 5
54 8
55)
(633 5
13)
- -
(2 5
54 8
55)
(663513) - - - - - - -
(6 1
92)
(31 6
78)
- -
(6 1
92)
(31
678) - - - -
(2 5
61 0
47)
(665
191)
Book v
alue
243 7
05 2
43
47 0
87 9
20
179 9
97 0
82
24 3
25 4
57
59 5
80 8
79
15 6
83 1
53
4 0
43 7
24
4 8
82 6
54 -
2 1
85 0
34
66 1
22
-
17 4
36
11 6
22
6 0
34 5
67
4 0
52 4
14
3 2
64 9
78
1 7
64 0
89
249 7
39 8
10
51 1
40 3
34
Per
iod
2012
2011
those
take
n i
nto
acc
ount
by
curr
ent
mark
et v
alu
e 2012
2011
those
take
n i
nto
acc
ount
by
act
ual
cost
s 2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
those
take
n i
nto
acc
ount
by
act
ual
cost
s 2012
| 2011
2012
| 2011
2012
2011
2012
2011
2012
2011
Code
5301
5311
5302
532
2
530
3
532
3
530
4
5324
530
5
5325
530
6
532
6
5307
532
7
5308
5328
5309
532
9
531
0
533
0
5311
5331
5312
5332
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
41
Nam
e of
the
indic
ator
Lon
g-t
erm
- t
ota
l
incl
udin
g:
shar
es q
uote
d o
n s
tock
exch
ange
shar
es a
nd i
nves
tmen
t unit
s
loan
s
deb
t ac
quir
ed o
n t
he
bas
is o
f
conce
ssio
n
deb
t se
curi
ties
contr
ibuti
ons
into
join
t ac
tivit
y
Sh
ort
-ter
m -
tota
l
incl
udin
g:
deb
t se
curi
ties
loan
s
dep
osi
ts i
n b
anks
deb
t ac
quir
ed o
n t
he
bas
is o
f
conce
ssio
n
Fin
an
cial
inves
tmen
ts -
tota
l
6.1. Long-term financial investments – continue
Participation in the Authorized Capital of Other Organizations
Unlisted Financial Investments:
In the period of report the Company increased investments in the subsidiary and affiliate companies by
making additional contribution to the authorized (share) capital of the following companies:
Name of legal entity Amount of
financial
investment as
of 31/12/2011
Amount of
additional
contribution
Devaluation
provision
Amount of
financial
investment as of
31/12/2012
INTER RAO – Capital
CJSC 1 923 000 69 333 907 (48 001 092) 23 255 815
INTER RAO Holding B.V.
3 724 544 689 124 4 413 668
RAO Intertech B. V. 71 169 300 201 - 371 370
INTER RAO – Export
LLC 30 000 270 000 - 300 000
INTER RAO – Orel
Energosbyt LLC 10 000 50 000 60 000
TOTAL: 5 758 713 70 643 232 (48 001 092) 28 400 853
In the result of reorganization and affiliation of JSC ―OGK-1‖, JSC ―OGK-3‖, JSC ―INTER RAO –
Energy‖, JSC ―INTER RAO – EnergoAktiv‖, JSC ―Bashenergoaktiv‖, the Company received on its
balance financial investments in the form of shares in the authorized capital of the following
companies:
Name of legal entity Amount of
financial
investment as
of 31/12/2011
Received in the
result of
reorganization
Devaluation
provision
Amount of
financial
investment as of
31/12/2012
INTER RAO – Electric
Power Plants, OJSC 34 631 499 149 144 213 183 775 712
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
42
Bashkiria Generating
Company LLC 17 157 773 17 157 773
CCP TPP-5 LLC - 2 193 231 - 2 193 231
Bashkiria Heat Distribution
Systems LLC 2 359 923 (672 438) 1 687 485
OGK-1 Finance LLC - 10 000 - 10 000
Coal Mine LLC
79 515 (79 515)
TOTAL: 34 631 499 170 944 655 (751 953) 204 824 201
In the period of report the Company purchased stock/shares in the authorized (share) capital of the
following companies under purchase agreements:
Name of legal entity Amount of
financial
investment as
of 31/12/2011
Purchased in the
year of report
Devaluation
provision
Amount of
financial
investment as of
31/12/2012
JSC ―Elektroluch‖ 2 020 825 44 748 - 2 065 573
INTER RAO UES Energy
Efficiency Center LLC 45 000 - 45 000
TOTAL: 2 020 825 89 748 - 2 110 573
Quoted Financial Investments:
Information about purchase and disposal of quoted shares is given in the table below:
Name of legal
entity
Amount of
financial
investment as
of 31/12/2011
Arrived in 2012 Revaluation Amount of
financial
investment as of
31/12/2012
from
reorganization
from
purchase/sale
JSC ―Saint
Petersburg Sale
Company‖
9 838 857
1 292 154 1 492 052 12 623 063
JSC ―TGK-6‖ 3 254 521 235 911 - (1 632 610) 1 857 822
JSC ―TGK-11‖ 3 115 973 255 783 2 138 619 2 397 483 7 907 858
TOTAL: 16 209 351 491 694 3 430 773 2 256 925 22 388 743
In 2012 in the course of reorganization of JSC ―Bashkirenergo‖, the Company purchased shares of the
latter from minority shareholders, and also purchased shares of JSC ―Bashkirenergo‖ from JSC
―System-Invest‖ with the consent of JSC ―AFK System‖. By mutual consent of the parties a part of the
sum was paid in cash, the remaining sum was paid by Company’s bills of exchange. Maturity time of
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
43
the bills of exchange is January – September 2013. The Company’s debt on its own bills of exchange
is reflected in the books in the structure of other payables, and is itemized in the section 14.2 hereof. In
January 2013 the Company extinguished its debt on its own bills of exchange in the amount of
3,467,416 thsd. rubles. In 2012 the Company purchased shares of JSC ―OGK-1‖, JSC ―OGK-3‖,
JSC ―Saint Petersburg Sale Company‖, JSC ―TGK-11‖ from its subsidiary – JSC ―INTER RAO
Capital‖, for a total sum of 26,296,486 thsd. rubles. Company’s debt for purchased securities is
reflected in the books in the structure of other payables, and is itemized in the section 14.2 hereof.
Quoted Financial Investments (continue)
Information about purchasing and disposal of quoted shares is given in the table below:
Name of legal
entity
Amount of
financial
investment as
of 31/12/2011
Arrived in
2012
Disposed in 2012 Amount of
financial
investment as
of 31/12/2012
from
reorganization
from
purchase/sale
JSC ―OGK-3‖ 33 310 742 9 632 798 (32 778 734) (10 164 806) -
JSC ―OGK-1‖ 32 346 558 12 489 048 (34 055 704) (10 779 902) -
Enel OGK-5 17 090 794 - - (17 090 794) -
JSC
―Bashkirenergo‖ 8 722 230 18 614 804 (27 337 034)
JSC ―RusHydro‖ 5 091 474 - (5 091 474)
E.ON Russia 4 386 405 - - (4 386 405) -
JSC ―Mosenergo‖ 3 433 616 - (3 433 616)
OGK-2 2 562 701 - - (2 562 701) -
JSC ―Saint
Petersburg Sale
Company‖ 743 867 (743 867)
JSC ―TGK-1‖ 717 483 - - (717 483) -
JSC ―TGK-9‖ 361 700 - - (361 700) -
JSC
―Kuzbassenergo‖ 275 335 - (275 335)
JSC ―Kvadra‖ 244 947 - - (244 947) -
JSC ―Enisey TGK‖
211 842 (211 842)
JSC ―TGK-2‖ 44 579 - - (44 579) -
JSC ―TGK-14‖ 13 136 - - (13 136) -
JSC
―Novosibirskenergo‖ 7 712 (7 712)
TOTAL: 109 565 121 40 736 650 (94 171 472) (56 130 299) -
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
44
As a result of sale of the shares, the Company received income exceeding the value of purchase.
Detailed information is presented in the section 15 ―Other incomes and costs" of this Explanatory note.
Information about financial investments as of 31/12/2012 kept in pledge and in trust management is
given in the table below:
6.2. Other use of financial investments
Name of the indicator Code As of 31/12/2012 As of 31/12/2011 As of 31/12/2010
Financial investments kept in pledge - total 5320 1 069 412 2 536 129 1 215 027
including
shares of JSC ―Saint Petersburg Sale Company‖ 5321 - 1 388 580 1 215 027
shares of JSC ―Stantsiya Ekibastuzskaya GRES-2‖ 5322 1 069 412 1 147 549 -
Financial investments transferred to third parties
(other than by sale) - total 5325 7 254 610 24 750 396 -
including shares of JSC ―Bashkirenergo‖ transferred into trust
management of Gazprombank Asset Management CJSC 5326 - 659 929 -
shares of JSC ―Volga TGK‖ transferred into trust
management of Gazprombank Asset Management CJSC 5327 6 824 034 8 421 324 -
shares of JSC ―OGK-1‖ transferred into trust
management of Gazprombank Asset Management CJSC 5328 - 8 192 726 -
shares of JSC ―OGK-3‖ transferred into trust
management of Gazprombank Asset Management CJSC 5329 - 7 318 660 -
shares of JSC ―TGK-6‖ transferred into trust
management of Gazprombank Asset Management CJSC 5330 409 191 136 372 -
shares of Tomsk Energy Retail Company OJSC
transferred into trust management of Gazprombank
Asset Management CJSC 5331 21 385 21 385 -
Other use of financial investments 5335 - - -
Subsidiary and Associated Companies
The Company controls another entity when by virtue of its participation or in accordance with the
powers received from other entities, it has more than 50 % of the total number of votes related to
voting shares (participatory interest) in the authorized (share) capital of the legal entity, and can
determine decisions made by such entity. Such participation shall be attributed by the Company to a
category of participation in subsidiaries.
The Company influences another entity when it has the right to manage directly or through its
subsidiaries more than 20 % of the total number of votes related to voting shares (participatory
interest) in the authorized (share) capital of the legal entity and has the ability to determine decisions
made by such entity. Such participation shall be attributed by the Company to a category of
participation in associated companies.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
45
Information about Company’s participation in the authorized capitals of other entities, specifying the
share therein as of December 31, 2012, is given below:
Name
of a legal entity Percentage
of
participation
in the capital
as of
31.12.2012
Amount of
financial
investment
as of
31.12.2012
Devaluation
provision
as of
31.12.2012
Amount of
investment
minus
provision
as of
31.12.2012
Amount of
investment
minus
provision
as of
31.12.2011
Amount of
investment
minus
provision
as of
31.12.2010
Investments in subsidiaries - 323 232 499
48 978
546
274 253
953
140 194
350
37 610
785
INTER RAO –
Elektrogeneratsiya OJSC Russia 100,0000 183 775 712 -
183 775
712
34 631
499 -
CJSC ―INTER RAO – Capital‖
Russia 100,0000 71 256 907
48 001
092
23 255
815 - 1 923 000
Bashkiria Generating Company
LLC, Russia 100,0000 17 157 773 -
17 157
773 - -
JSC ―Saint Petersburg Sale
Company‖
(ordinary shares) Russia** 85,37 11 493 589 -
11 493
589 9 094 990 2 439 611
JSC ―Saint Petersburg Sale
Company‖
(preferred shares) Russia** 14,63 1 129 474 - 1 129 473 743 867 332 670
Territorial Generation Company
No. 1 OJSC Russia * 98,5326 7 907 858 - 7 907 858 3 115 973 275 175
JSC ―MOSENERGOSBYT―
Russia* 50,9189 6 363 592 - 6 363 592 6 675 731 -
LLC ―RN-Energo Ltd" Russia 100,0000 4 995 804 - 4 995 804 4 995 804 -
Moldavskaya GRES CJSC
Pridnestrovian Moldavian
Republic 80,9000 4 964 103 - 4 964 103 4 964 103 2 646 004
INTER RAO HOLDING B.V.
the Netherlands 100,0000 4 413 668 - 4 413 668 3 724 544 1 861 680
Bashkiria Distribution Systems
LLC, Russia 92,84 2 359 923 672 438 1 687 485
JSC ―Eastern
Energy Company‖, Russia 100,0000 2 190 290 - 2 190 290 2 190 290 2 190 290
JSC ―Elektroluch‖ Russia 99,82 2 065 573 - 2 065 573 2 020 825 1 756 693
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
46
Name of legal entity Percentage
of
participation
in the capital
Amount of
financial
investment
Devaluation
provision Amount of
investment
minus
provision
Amount of
investment
minus
provision
Amount of
investment
minus
provision as of
31.12.2012
as of
31.12.2012
as of
31.12.2012
as of
31.12.2012
as of
31.12.2011
as of
31.12.2010
Razdan Energy Company OJSC
(RazTES)
Republic of Armenia* 100,0000 624 579 - 624 579 624 579 -
RAO Intertech B.V.
the Netherlands 100,0000 371 370 - 371 370 71 169 853
JSC ―Altaienergosbyt‖
Russia 100,0000 330 000 - 330 000 330 000 -
INTER RAO – Export LLC Russia 100,0000 300 000 - 300 000 30 000 -
Testing stand of JSC ―Ivanovskie
GPU‖
Russia 82,8359 290 055 186 348 103 707 103 707 103 707
JSC «Tambov Energy Retail
Company‖
Russia* 59,3845 246 129 - 246 129 343 489 -
INTER RAO Middle East B.V. the
Netherlands 100,0000 245 362 - 245 362 245 362 245 362
JSC ―Saratovenergo‖
Russia 56,9715 220 357 - 220 357 279 404 -
INTER RAO – Procurement
Management Center LLC
Russia 100,0000 122 038 - 122 038 122 038 19 342
INTER RAO Finance B.V. the
Netherlands 100,0000 82 748 - 82 748 82 748 -
INTER RAO Central Asia LLP
Kazakhstan 100,0000 47 443 - 47 443 47 443 47 443
JSC ―United Energy Retailing
Company‖
Russia 100,0000 44 800 - 44 800 44 800 -
RAO Nordic Oy Republic of Finland 100,0000 43 410 - 43 410 43 410 43 410
Coal Mine LLC
Russia 100,0000 79 515 79 515 - - -
INTER RAO – Orel Energy
Distribution LLC
Russia 100,0000 60 000 - 60 000 10 000 -
TGR Enerji Electrik Toptan Ticaret
A.S.
Republic of Turkey 70,0000 39 153 39 153 - - -
INTER RAO – Engineering
LLC
Russia 100,0000 775 - 775 775 -
INTER RAO – Management of
Electric Power Plants LLC
Russia 100,0000 500 - 500 500 -
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
47
Name
of a legal entity Percentage
of
participation
in the capital
Amount of
financial
investment
Devaluation
provision Amount of
investment
minus
provision
Amount of
investment
minus
provision
Amount of
investment
minus
provision as of
31.12.2012
as of
31.12.2012
as of
31.12.2012
as of
31.12.2012
as of
31.12.2011
as of
31.12.2010
FREECOM Trading Limited,
Republic of Cyprus - - - - - 2 447 545
OGK-1 Finance LLC
Russia 100,0000 10 000 - 10 000 -
JSC ―First Generation Company of
Wholesale Electricity Market‖
Russia** - - - - 32 346 558 21 278 000
JSC ―Third Generation Company of
Wholesale Electricity Market‖
Russia* - - - - 33 310 742 -
Investments in subsidiaries 53 114 883 12 899 53 101 984 78 004 994 655 563
JSC ―Irkutskenergo‖
Russia 40,0070 32 263 558 - 32 263 558 28 594 384 -
JSC ―Volga TGK‖
Russia 32,4400 15 370 715 - 15 370 715 18 968 509 -
CCP TPP-5 LLC
Russia 43,69 2 193 231 - 2 193 231 - -
Territorial Generating Company No.
6 OJSC
Russia 27,6179 1 857 822 - 1 857 822 3 254 521 -
JSC ―Stantsiya Ekibastuzskaya
GRES-2‖
Kazakhstan 50,0000 603 311 - 603 311 603 311 603 311
INTER RAO – LED Systems OJSC
Russia 35,1700 600 000 - 600 000 600 000 -
JSC ―Tomsk Energy Retailing
Company‖4
(ordinary shares)
Russia 24,5644 83 602 - 83 602 83 602 -
INTER RAO UES Energy
Efficiency Center
LLC
Russia 50,0000 45 000 - 45 000 - -
Kambartinskaya GES-1, CJSC
Republic of
Kyrgyzstan 50,0000 28 864 - 28 864 28 864 28 864
JSC ―Tomsk Energy Retailing
Company‖
(preferred shares) Russia 6,7089 21 358 - 21 358 21 358 -
4 In June 2012 trading of shares of Tomsk Energy Distribution Company at the Russian stock exchange markets was
stoppedCurrent market value as of 31/12/2012 is not determined, shares are reflected in the accounting nooks at the value
of their last valuation – as of 31/12/2011
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
48
Name of legal entity Percentage
of
participation
in the capital
Amount of
financial
investment
Devaluation
provision Amount of
investment
minus
provision
Amount of
investment
minus
provision
Amount of
investment
minus
provision
as of
31.12.2012
as of
31.12.2012
as of
31.12.2012
as of
31.12.2012
as of
31.12.2011
as of
31.12.2010
Inter RAO – WorleyParsons LLC
Russia 51,0000 19 384 - 19 384 19 384 19 384
Industrial Energy Company CJSC
Russia 50,0000 10 000 10 000 - - -
RT – Energotrading LLC
Russia 50,0000 9 805 - 9 805 9 805 -
Energoconnect LLC
Republic of Belarus 50,0000 4 229 - 4 229 4 229 -
INTERENERGOEFFECT LLC
Russia 50,0000 4 004 2 899 1 105 4 004 4 004
JSC ―Enel OGK-5‖
Russia - - - - 17 090 794 -
JSC ―Bashkirenergo‖ (ordinary
shares)
Russia - - - - 8 501 797 -
JSC ―Bashkirenergo‖ (preferred
shares)
Russia - - - - 220 432 -
Investments in other
companies - 1 869 185 396 354 1 472 831 18 823 761 1 108 747
AKKUYU NPP ELECTRICITY
GENERATION JOINT-STOCK
COMPANY
Republic of Turkey 3,4700 1 025 707 - 1 025 707 1 025 707 1 025 707
Sangtuda GES-1 OJSC,
Tajikistan 14,8700 795 869 396 354 399 515 399 515 83 040
SIBEKO OJSC
Russia 0,1613 18 738 - 18 738 18 738 -
Elektromagistral OJSC (preferred
shares)
Russia 0,1085 16 022 - 16 022 16 022 -
Elektromagistral OJSC (ordinary
shares)
Russia 0,0870 12 849 - 12 849 12 849 -
Federal Hydrogeneration Company
OJSC
Russia - - - - 5 091 474 -
JSC ―E.ON Russia‖
Russia - - - - 4 386 405 -
JSC ―Mosenergo‖
Russia - - - - 3 433 616 --
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
49
Name
of a legal entity Percentage
of
participation
in the capital
Amount of
financial
investment
Devaluation
provision Amount of
investment
minus
provision
Amount of
investment
minus
provision
Amount of
investment
minus
provision
as of
31.12.2012
as of
31.12.2012
as of
31.12.2012
as of
31.12.2012
as of
31.12.2011
as of
31.12.2010
JSC ―Second Generation Company
of Wholesale Electricity Market‖
Russia - - - - 2 562 701 -
JSC ―Territorial Generating
Company No. 1‖
Russia - - - - 717 483 -
JSC ―Territorial Generating
Company No. 9‖
Russia - - - - 361 700 -
JSC ―Kuzbassenergo‖
Russia - - - - 275 335 -
JSC ―Kvadra-Generation company‖
(preferred shares)
Russia - - - - 244 301 -
JSC ―Kvadra-Generation company‖
(ordinary shares)
Russia - - - - 646 -
JSC ―Yenisei TGK (TGK-13)‖
Russia - - - - 211 842 -
JSC ―Territorial Generating
Company No. 2‖
Russia - - - - 44 579 -
JSC ―Territorial Generating
Company No. 14‖
Russia - - - - 13 136 -
JSC ―Novosibirskenergo‖ (ordinary
shares)
Russia - - - - 4 051 -
JSC ―Novosibirskenergo‖ (preferred
shares)
Russia - - - - 3 661 -
Total (investment units and
shares) - 378 216 567 49 387 799 328 828 768 237 023 105 39 375 095
Investments into joint activity
In 2007 the Company concluded a simple partnership agreement for participation in the joint activity
on receiving written substantiation of investments into joint construction of Kambartinskaya GES-1
and GES-2 in the Kyrgyz Republic. Another participant under the contract is Electricheskiye Stantsii
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
50
OJSC /Power Plants OJSC/ (Kirghizia). The participants make the following contributions in cash in
the joint activity. Company’s contribution as of 31/12/2012 made 17,436 thsd. rubles (17,436 thsd.
rubles – as of 31/12/2011; 11,622 thsd. rubles – as of 31/12/2010).
Debt Financial Investments
Long-term loans issued in foreign currency
Information about long-term loans issued in foreign currency is given in the table below:
In the currency of the contract
Name Remaining
loan as of
31/12/2011
Arrived in 2012 Disposed in 2012 Remaining
loan as of
31/12/2012 Issued in
2012
Transferred
from short-
term loans
Repaid in
2012
Transferred
to short-
term loans
Loans in USD 8 065 3 476 54 014 (1 800) (16 115) 47 640
Loans in EUR 30 000 - - - - 30 000
Loans in RUB
equivalent 1 509 803 108 761 1 591 857 (57 366) (507 744) 2 645 311
Exchange rate
influence - - 8 495
Total in RUB
equivalent 2 653 806
The Company provides long-term loans in currency to the companies of INTER RAO UES Group.
Terms for repayment of loans in USD – 2015-2023, in EUR – 2023. Interest rates applicable in 2012
made 10 % to 15 % per annum for loans in USD, and 10 % to 12.5 % per annum - for loans in EUR.
Long-term loans issued in rubles
Information about long-term loans issued in rubles is given in the table below:
Name Remaining
loan as of
31/12/2011
Arrived in 2012 Disposed in 2012 Remaining
loan as of
31/12/2012 Issued in
2012
From
reorganization
Repaid in
2012
Reclassified
into short-
term loans
Loans in rubles 2 533 921 1 128 196 706 000 (959) (920 926) 3 446 232
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
51
The Company provides long-term loans in rubles to the companies of INTER RAO UES Group and to
the employees of the Company. The term of loan repayment is in 2014-2015. Interest rates applicable
in 2012 made 10 % to 13.5 % per annum.
Long-term debt securities
As of 31/12/2012 the Company has no long-term debt securities (66,122 thsd. rubles as of 31/12/2011;
no debt securities as of 31/12/2010). Bills of exchange accounted as of 31/12/2011 as long-term
financial investments in the sum of 66,122 thsd. rubles were submitted for receipt in the amount of
39,639 thsd. rubles, and moved to short-term financial investments in accordance with their repayment
terms in the amount of 28,869 thsd. rubles. Discount was charged on bills of exchange in the structure
of interest yield in the amount of 2,386 thsd. rubles in the year 2012.
6.2. Short-term financial investments (other than cash equivalents)
Financial investments (other than cash equivalents) on the balance sheet are shown net of a provision
for devaluation of financial investments in the amount of 937,985 thousand rubles as of December 31,
2012 (6,028,375 thousand rubles - as of December 31, 2011, 4,020,736 thousand rubles - as of
December 31, 2010).
The amount of provision created for devaluation of financial investments with respect to the short-term
financial investments in the form of loans issued, as of December 31, 2012 amounts to 11,976
thousand rubles (6,192 thousand rubles – as of December 31, 2011; 31,678 thousand rubles – as of
December 31, 2010).
Short-term loans issued in foreign currency
Information about short-term loans issued in foreign currency is given in the table below:
In the currency of the contract
Name
Remaining
loan as of
31/12/2011
Arrived in 2012 Disposed in 2012 Remaining
loan as of
31/12/2012 Issued in
2012 Transferred
from long-
term loans
Repaid in
2012 Transferred
to long-term
loans
Loans in USD 54 740 268 16 115 (16 467) (54 014) 642
Provision for
devaluation in
USD
(204) (190) - (394)
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
52
Loans in RUB
equivalent 1 762 426 7 896 507 744 (516 606) (1 591 857) 169 603
Exchange rate
influence - - (150 101)
Total in RUB
equivalent 19 502
Provision for
devaluation in
RUB
(6 192) (5 784) (11 976)
The Company provides short-term loans in foreign currency to INTER RAO UES Group with the term
of repayment less than 365 days. As of 31/12/2012 short-term loans in foreign currency include
remaining debt on the long-term loan with the maturity time in 2013 in the amount of 248 thsd. USD
(7,526 thsd. rubles). Detailed information is given in the section ―Related Parties‖.
Short-term loans issued in rubles
Information about short -term loans issued in rubles is given in the table below:
Name
Remaining
loan as of
31/12/2011
Arrived in 2012
Repaid in
2012
Remaining
loan as of
31/12/2012 Issued in
2012
From
reorganization
Transferred
from long-
term loans
Loans in rubles 1 663 294 996 900 000 920 926 (1 215 995) 901 590
The Company provides short-term loans in rubles to the companies of INTER RAO UES Group and to
the employees of the Company with the term of repayment less than 365 days. Interest rates applicable
in 2012 made 7.8 % to 10.25 % per annum.
Bank deposits
In 2012 the Company used to keep free cash funds at bank deposits. Deposits were made in Russian
rubles. Interest rates on deposits in rubles varied within 3.9 %-7.7 % per annum (2.05 % - 7.7 % per
annum in 2011). The term of deposits made 1 to 214 days.
Deposits with the term of repayment less than 3 months are reflected by the Company in the books in
the structure of cash funds and their equivalents. Cash equivalents as of 31/12/2012 made 2,100,000
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
53
thsd. rubles (3,357,000 thsd. rubles – as of 31/12/2011; no cash equivalents – as of 31/12/2010). As of
31/12/2012 the Company has no deposits with the term of repayment over 3 months (1,005,500 thsd.
rubles – as of 31/12/2011; no deposits – as of 31/12/2010).
Information about deposits in the commercial banks as of 31/12/2012 is given in the table below:
Name of the credit organization Period of placement (year, month) Amount
thousand rubles
Effective as of Up to
JSC ―Gazprombank‖ December 2012 January 2013 1 000 000
JSB Peresvet CJSC December 2012 January 2013 1 100 000
TOTAL Deposits reflected in the structure of cash funds and their equivalents 2 100 000
TOTAL - -
2 100 000
Comparative information about deposits in the commercial banks as of 31/12/2011 is given in the table
below:
Name of the credit organization Period of placement (year, month) Amount
thousand rubles
Effective as of Up to
Moscow Credit bank OJSC December 2011 January 2012 1 970 000
NOVIKOMBANK CJSC December 2011 March 2012 500 000
Nordea OJSC December 2011 January 2012 300 000
JSB Peresvet CJSC December 2011 February 2012 587 000
TOTAL Deposits reflected in the structure of cash funds and their equivalents 3 357 000
Sobinbank OJSC October 2011 August 2012 1 005 500
TOTAL Deposits reflected in the structure of short-term financial investments 1 005 500
TOTAL - -
4 362 500
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
54
7. INVENTORIES
Information about existence and flow of inventories as of 31/12/2012 is shown in the table below:
Name of the indicator Code Period
As of the beginning of the year Changes for the period As of the end of the
year
book value receipts disposed Inventory turnover
among their groups (types)
book value book value
Inventories - total 5400 2012 964 081 2 376 391 (3 326 649) - 13 823
5420 2011 886 572 10 263 937 (10 186 428) - 964 081
including:
raw and materials 5401 2012 132 558 57 559 (195 087) 4 994 24
5421 2011 91 279 314 875 (275 623) 2 027 132 558
fuel and petroleum products 5402 2012 253 510 2 136 380 (2 384 722) (4 985) 183
5422 2011 244 907 9 543 680 (9 534 219) (858) 253 510
spare parts 5403 2012 267 819 11 141 (278 960) - -
5423 2011 163 587 148 532 (28 912) (15 388) 267 819
construction materials 5404 2012 148 690 - (148 690) - -
5424 2011 141 367 29 618 (1 752) (20 543) 148 690
inventory and utility
appliances 5405 2012 31 448 38 143 (67 238) 432 2 785
5425 2011 16 255 96 693 (80 571) (929) 31 448
special equipment and special
clothing 5406 2012 9 022 - (9 022) - -
5426 2011 9 058 8 596 (9 408) 776 9 022
low-value fixed assets 5407 2012 10 507 73 291 (87 070) 6 372 3 100
5427 2011 3 487 44 553 (38 174) 641 10 507
other materials 5408 2012 110 527 59 877 (155 860) (6 813) 7 731
5428 2011 216 632 77 390 (217 769) 34 274 110 527
value of reserve for a value decrease
5409 2012 (112 298) - 112 298 - -
5429 2011 (6 979) (112 264) 6 945 - (112 298)
As of 31/12/2012 the Company has no morally obsolete inventories, which have fully or partially lost
their quality or are pledged. Provision for devaluation of inventories in 2012 was not formed (112,298
thsd. rubles – as of 31/12/2011, 6,979 thsd. rubles – as of 31/12/2010).
In the period of report the Company sold its inventories to its 100 % subsidiary INTER RAO – Electric
Power Plants, OJSC in the course of activity termination. Inventories have been sold at their current
market value determined by the appraiser. The Company received income from the said operations.
Detailed information is provided in section 26 ―Terminated Activity‖ hereof.
8. RECEIVABLES
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
55
8.1
. P
rese
nce
an
d f
low
of
lon
g-t
erm
rec
eiv
ab
les
As
of
the
end
of
the
yea
r
ov
erdu
e d
ebt
rese
rve
12
(88
317
)
(428
35
5)
incl
ud
ing
:
-
(428
35
5) - - - - - - - -
(88
317
) -
Rec
ord
ed u
nd
er
the
term
s o
f
con
trac
t
11
27
056
12
7
4 2
90
574
10
8 6
10
1 2
23
359
82
805
32
0 8
48
1 2
06
366 -
2 1
50
242
2 7
46
367
17
192
41
6 -
6 3
15
688 -
Ch
ang
es f
or
the
per
iod
recl
ass
10
58
2 9
93
(620
32
9)
(20
902
)
(40
263
) -
(33
578
)
1 2
06
366
(499
80
6)
(697
32
1) - - -
94
850
(46
682
)
ov
erdu
e d
ebt
rese
rve
9
34
0 0
38
(381
67
3)
42
8 3
55
(428
35
5) - - - - - - - -
(88
317
)
46
682
dis
po
sal
Wri
ting
-off
to
fin
anci
al r
esu
lt
8
- - - - - - - - - - - - -
rep
aym
ent
7
(3 8
27 2
16
)
(515
36
8)
(1 2
02 4
58
)
-
(238
04
3)
- -
(451
28
8)
-
( 6
4 0
80
)
(2 3
86 7
15
)
- -
rece
ipt
as a
resu
lt o
f
bu
sin
ess
tran
sact
ion
s
6
26
009
77
6
3 0
71
348
10
8 6
11
27
148
-
76
475
-
19
0 7
01
10
1 1
96
2 7
77
024
19
579
13
1
-
6 2
20
838
As
of
the
beg
inn
ing o
f th
e
yea
r ov
erdu
e d
ebt
rese
rve
5
(428
35
5)
(46
682
)
(428
35
5) - -- - - - - - - - -
(46
682
)
Rec
ord
ed
un
der
th
e
term
s o
f
con
trac
t
4
4 2
90
574
2 3
54
923
1 2
23
359
1 2
36
474
32
0 8
48
27
7 9
51
-
76
0 3
93
2 7
46
367
33
423
- - -
46
682
Per
iod
3
20
12
20
11
20
12
20
11
20
12
20
11
20
12
20
11
20
12
20
11
20
12
20
11
20
12
20
11
Co
de
2
55
01
55
21
55
02
55
22
55
03
55
23
55
04
55
24
55
05
55
25
55
06
55
26
55
07
55
27
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
56
Nam
e o
f th
e
ind
icat
or
1
Lo
ng
-ter
m
rece
iva
ble
s -
tota
l
secu
riti
es
tra
nsa
ctio
ns
on
th
e in
tere
st-f
ree
loa
ns
(in
sta
lmen
t
pla
n)
inte
rest
rev
enu
es
ad
va
nce
pa
ym
ents
gra
nte
d
On
th
e p
rop
erty
sale
tra
nsa
ctio
ns
oth
er d
ebts
8.1. Long-term receivables
Long-term receivables are reflected net of provision for bad debts included in other capital assets of
the balance sheet in the amount of 26,967,810 thousand rubles as of December 31, 2012 (3,862,219
thousand rubles - as of December 31, 2011; 2,308,241 thousand rubles – as of December 31, 2010).
The amount of provision for bad debts formed in terms of long-term receivables, as of December 31,
2012 amounts to 88,317 thousand rubles (428,355 thousand rubles – as of December 31, 2011; 46,682
thousand rubles – as of December 31, 2010).
The long-term receivables include debt on the interest-free bank bills of exchange of Alfa-Bank OJSC
and Bashkiria Industrial Bank OJSC, received in payment for supplied electricity. Bills of exchange of
Bashkiria Industrial Bank OJSC were received by the Company in the result of reorganization and
affiliation of JSC ―Bashenergoaktiv‖ in November 2012. The term of payment of bills of exchange is
in 2014-2017.
Other long-term receivables include debt of subsidiary companies Bashkiria Generating Company
LLC and Bashkiria Heat Distribution Systems LLC in the amount of 6,220,838 thsd. rubles. This debt
has been received to the Company’s balance in the result of reorganization and affiliation of JSC
―Bashenergoaktiv‖ in November 2012. The debt has been formed under different agreements, and
includes settlements for inventories, settlements for the assignment of receivables.
The debt of subsidiary company INTER RAO – Electric Power Plants OJSC in the amount of
17,192,416 thsd. rubles was formed under the property purchase agreements as a part of Company’s
terminated activity on production of electricity and heat energy, and transferring this function to the
said subsidiary company. The Company provided payment by instalments with the monthly payment
of interests at 8.25 % per annum. The term for debt repayment is 2017.
Long-term receivables net of provision for doubtful debts as of 31/12/2012 is given in the table below:
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
57
Kind of debts As of
December 31,
2012
As of
December 31,
2011
As of
December 31,
2010
Repayment
term
On the operations of property sale as a part of Company’s
terminated activity:
Debt of subsidiary company
INTER RAO – Electric Power
Plants OJSC 17 192 416 - - 2017
Advance payments paid to suppliers:
For supply of power equipment 1 919 052 2 616 373 - 2014-2015
On redemption payment to a
leasing company 231 190 129 994 33 423 2015
On interest yields
Organizations of INTER RAO
UES Group 1 206 366 - 760 393 2014-2023
On the transactions with securities:
Organizations of INTER RAO
UES Group - 767 856 1 196 211 2013
Bank bills of exchange received in
payment for electricity 108 610 27 148 40 263 2014-2017
On interest-free loans:
Debts of the Company's employees
on apartments bought on
instalment plan 6 330 244 373 277 951 2014-2026
Debts of the Company's employees
on the special-purpose interest-free
loans 76 475 76 475 - 2015
Other debts (mainly of subsidiary
companies) 6 227 371 - - 2014-2017
TOTAL 26 967 810 3 862 219 2 308 241 -
8.2. Short-term receivables of buyers and customers
Short-term receivables of buyers and customers are reflected net of provision for doubtful debts
included in current assets of the balance sheet in the amount of 2,806,082 thousand rubles as of
December 31, 2012 (3,773,174 thousand rubles - as of December 31, 2011; 5,112,631 thousand rubles
– as of December 31, 2010). The amount of provision for doubtful debts formed in terms of short-term
receivables, as of December 31, 2012 amounts to 770,356 thousand rubles (815,501 thousand rubles –
as of December 31, 2010; 647,427 thousand rubles – as of December 31, 2010).
Short-term receivables as of 31/12/2012 are shown in the table below:
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
58
8.2
. P
rese
nce a
nd
flo
w o
f sh
ort-
term
receiv
ab
les
As
of
the
end o
f th
e yea
r
size
of
over
due
deb
t re
serv
e
(1 0
65 6
52)
(30 0
15 0
69)
inclu
din
g:
Tra
de r
eceiv
ab
les
(540 2
01)
(462 2
61)
(230 1
55)
(243 9
72) -
(76 4
48) -
(32 8
20)
(770 3
56)
(815 5
01)|
Oth
er r
eceiv
ab
les
(40 3
22)|
(1 0
44 0
10) - - - -
(197 0
25)
(28 0
62 2
73)
(237 3
47)
(29 1
06 2
83)
Ad
va
nce p
ay
men
ts g
ra
nte
d
(57 9
49)
(93 2
85)
Rec
ord
ed u
nder
the
term
s of
contr
act
60 4
11 6
33
91 5
13 0
24
1 4
95 4
45
2 0
59 7
14
1 8
38 9
50
2 1
68 8
60
37 2
90
294 6
86
204 7
53
65 4
15
3 5
76 4
38
4 5
88 6
75
38 1
39 9
97
2 9
18 8
49
309 4
02
1 1
25 5
73
5 2
80
223 5
08
14 8
18 6
10
81 2
60 9
03
53 2
73 2
89
85 5
28 8
33
3 5
61 9
06
1 3
95 5
16
Ch
ang
es f
or
the
per
iod
recl
ass
(582 9
92)
620 3
29
- - -
(76 2
64)
27 7
18
- -
(76
264)
27 7
18
20 9
02
40 2
63
(1 2
06 3
66)
499 8
06
- -
(18 5
85)
52 5
42
(1 2
04 0
49)
592 6
11
697 3
21
over
due
deb
t
rese
rve
28 9
49 4
17
(29 2
50 8
57)
(77 9
40)
(238 9
47)
13 8
17
148 8
79
76 4
48
(46 9
19)
32 8
20
(31 0
87)
45 1
45
(168 0
74)
1 0
03 6
88
(1 0
44 0
10)
- - - -
27 8
65 2
48
(28 0
48 6
41)
28 8
68 9
36
(29 0
92 6
51)
35 3
36
9 8
68
|Dis
po
sal| W
riti
ng
-off
to
fin
anci
al r
esu
lt
(92
)
(41
00
2)
(92
)
(16
37
6) - - - - - -
(92
)
(16
37
6) - - -
(53
) - - -
(5 1
11
) -
(5 1
64
) -
(19
46
2)
rep
aym
ent
(15
9 4
15
60
7)
(57
3 3
10
87
4)
(20
61
4 1
88
)
(41
95
3 1
06
)
(26
07
7 1
40
)
(38
25
3 2
49
)
(64
0 0
16
)
(78
6 3
94
)
(32
8 3
81
)
(5 4
53
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72
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74
7 2
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84
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63
1
Yea
r
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
2102
2011
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
Code
5510
5530
5511
5531
5512
5532
5513
5533
5514
5534
5515
5535
5516
5536
5517
5537
5518
5538
5519
5539
5520
5540
5521
5541
Nam
e o
f th
e in
dic
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r
Sh
ort-
term
receiv
ab
les
- to
tal
for e
lectr
icit
y (
po
wer)
sold
in
sid
e
the R
F
for e
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po
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ou
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oth
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l d
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t
On
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pera
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On
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d
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
59
The Company's largest debtors in terms of payment for electricity (power) as of December 31, 2012:
Centre of Financial Settlements JSC ―CFR‖. The debt of JSC ―CFR‖ to the Company amounts to
771,252 thousand rubles (872,629 thousand rubles as of December 31, 2011; 1,459,731 thousand
rubles as of December 31, 2010). The Company has formed a provision for doubtful debts in
respect of this debt in the amount of 35,567 thousand rubles (173,823 thousand rubles as of
December 31, 2011; 116,691 thousand rubles as of December 31, 2010).
INTER RAO Lietuva (Republic of Lithuania). The debt to the Company amounts to 508,077
thousand rubles (344,549 thousand rubles as of December 31, 2011; 794,056 thousand rubles —
as of December 31, 2010).
8.3. Other short-term receivables
Other receivables are reflected in the balance-sheet net of provision for bad debts included in current
assets in the amount of 53,035,942 thousand rubles as of December 31, 2012 (56,422,550 thousand
rubles - as of December 31, 2011; 4,031,780 thousand rubles – as of December 31, 2010).
The amount of provision for doubtful debts formed in terms of other receivables, as of December 31,
2012 amounts to 237,347 thousand rubles (29,106,283 thousand rubles – as of December 31, 2011;
13,632 thousand rubles – as of December 31, 2010). Previously formed provision for receivables of
subsidiary company INTER RAO Capital CJSC in the amount of 29,002,645 as of 31/12/2011 was
reclassified into provision for devaluation of financial investments as of 31/12/2012 into the said
Company.
Other short-term receivables are given below net of doubtful debt provision:
Other receivables As of
31/12/2012
As of
31/12/2011
As of
31/12/2010
Other debtors total: 53 035 942 56 422 550 4 031 780
including:
Debt of subsidiary company INTER RAO
Capital CJSC on payment for securities (shares) 37 817 839 1 799 284
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
60
Other receivables As of
31/12/2012
As of
31/12/2011
As of
31/12/2010
Debt of subsidiary company INTER RAO –
Electric Power Plants OJSC for the property 10 861 751
Debt of subsidiary company INTER RAO –
Electric Power Plants OJSC for the assignment
of receivables 1 636 439
Debt of subsidiaries and affiliates relating to the
due income on borrowed funds and deferred
payments 309 402 1 124 863 812 227
Overpayment of taxes to the federal budget, the
budgets of the constituent entities of the Russian
Federation 351 102 898 911 11 045
Debt on settlements for electricity under
contracts of commission, assignments 792 604 415 255 129 169
VAT to be compensated from the budget
including on export 783 159 1 507 741 2 390 247
Debts in bank interest-free bills of exchange
received in payment for electricity supplied 68 585
Debts payable on dividends 5 280 223 508 436 271
Debt of subsidiary company INTER RAO
Capital CJSC on the interest-free loan 50 189 901
Debt on securities (shares) 75 555
Other debtors 409 781 187 532 252 821
Debt of subsidiary company INTER RAO Capital CJSC was counted in 2012 as payment of
Company’s debt on the contribution to the authorized capital of INTER RAO Capital CJSC.
8.4 Advance payments granted
Advance payments granted are reflected net of provision for doubtful debts included in current assets
of the balance sheet in the amount of 3,503,957 thousand rubles as of December 31, 2012 (1,302,231
thousand rubles - as of December 31, 2011; 2,184,478 thousand rubles – as of December 31, 2010).
The amount of provision for doubtful debts formed in terms of advance payments granted as of
December 31, 2012 amounts to 57,949 thousand rubles (93,285 thousand rubles – as of December 31,
2011; 103,153 thousand rubles – as of December 31, 2010).
As of 31/12/2012 advance payments granted mainly include advance payment paid for supply of
power equipment to Bolivarian Republic of Venezuela in the amount of 2,204,000 thsd. rubles
(296,332 thsd. rubles – as of 31/12/2011). Increase in the sum of advance payments granted as of
31/12/2012 against the sum of advance payments as of 31/12/2011 is connected with reclassification of
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
61
advance payment paid for supply of power equipment to Ecuador from long-term to short-term, in the
amount of 697,320 thsd. rubles. Besides, in the year of report current advance payments were paid for
supply of power equipment to Venezuela according to the contract conditions in the amount of
1,210,348 thsd. rubles.
9. CASH FUNDS AND CASH EQUIVALENTS
Cash Funds As of December
31, 2012
As of December
31, 2011
As of December
31, 2010
Cash in rubles in the cash desk and on
accounts in banks 10 882 874 493 494 3 222 647
Cash in foreign currency in the cash
desk and on accounts in banks 1 086 890 1 018 180 840 160
Monetary documents in rubles in the
cash desk 26 22 15
TOTAL 11 969 790 1 511 696 4 062 822
Cash funds in foreign currency
In thousand units of currency
Cash Funds As of 31/12/2012 As of 31/12/2011 As of 31/12/2010
Cash on accounts in banks in USD 24 335 12 829 8 238
RUB equivalent according to the
exchange rate of the Central Bank 739 109 413 031 251 060
Cash on accounts in banks in EUR 8 645 14 522 14 606
RUB equivalent according to the
exchange rate of the Central Bank 347 781 605 149 589 100
TOTAL in rubles 1 086 890 1 018 180 840 160
Cash equivalents
Kind of cash equivalents As of 31/12/2012 As of 31/12/2011 As of 31/12/2010
Short-term bank deposits (with a term
up to three months) 2 100 000 3 357 000 -
The Company has no funds unavailable for use. As of December 31, 2012 the Company has an
opportunity to raise additional cash funds within open, but unused credit lines opened for the Company
as of the reporting date for a total sum of 7,000,000 thousand rubles.
10. OTHER CURRENT ASSETS
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
62
Deferred expenses with a writing-off period within 12 months after reporting date, costs of unfinished
research and development and experimental and technological works, costs proposed to be disposed
within 12 months after the reporting date, and so on are reflected in the structure of other current
assets. As of December 31, 2011 unfinished R&D in the amount of 116,563 thsd. rubles were
transferred to the Scientific & Innovation Activity Support Foundation ―Energy Beyond Borders‖.
Unfinished R&D for a sum of 66,305 thsd. rubles were written off to financial result as given no
effect. Unfinished R&D in the amount of 73,937 thousand rubles is to be transferred by the Company
in 2013 to the Scientific and Innovation Activity Support Foundation ―Energy Beyond Borders‖.
Information on other current assets of the Company is presented below:
Description As of
31.12.2012
As of
31.12.2011
As of
31.12.2010
Total unfinished R&D costs,
including: 73 937 256 805 -
- unfinished developments to create and test low
emission combustion chamber GTE-110 73 937 140 242
- unfinished developments to improve energy
efficiency, reliability and safe operation of TPP 116 563
Total deferred expenses, including 136 524 178 954 125 573
- software products 72 492 62 992 66 356
- costs of voluntary health insurance 44 373 49 747 568
- payment for process connection of power-receiving
devices 27 735 989
- voluntary property and liability insurance 6 163 10 006 27 805
- commissioning work on new fixed assets 9 369 9 369
- rights to use land plots 4 251 4 099
- agent's fee - 2 378 2 378
- other 13 496 12 476 14 009
Other - 4 867 -
TOTAL 210 461 440 626 125 573
11. CAPITAL AND RESERVES
On April 26, 2012 the Company’s shareholders made a decision at the special General Meeting of
Shareholders on the Company’s reorganization by consolidation with JSC ―OGK-1‖, JSC ―OGK-3‖,
JSC ―Bashenergoaktiv‖, INTER RAO – Energy OJSC, INTER RAO – EnergoAktiv OJSC.
Consolidation with JSC―OGK-1‖, JSC ―OGK-3‖, INTER RAO – Energy OJSC, INTER RAO –
EnergoAktiv OJSC took place on October 01, 2012. JSC ―Bashenergoaktiv‖ was connected to the
Company on November 06, 2012.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
63
Authorized capital
On December 25, 2012 the Company registered an increase in the authorized capital through additional
placement of ordinary shares. In accordance with the decision on reorganization through consolidation
with JSC ―OGK-1‖, JSC ―OGK-3‖, JSC ―Bashenergoaktiv‖, INTER RAO – Energy OJSC, INTER
RAO – EnergoAktiv OJSC, all ordinary registered uncertified shares of consolidated companies were
converted into additional ordinary registered uncertified shares of JSC ―INTER RAO UES‖, placed for
the purpose of conversion. The scope of additional issue for the purpose of conversion made
724,000,997,683 shares with a par value of 0.02809767, for a total sum of 20,342,741 thsd. rubles.
In the result of additional issue of shares the authorized capital of the Company was increased by
20,342,741 thsd. rubles, and as of December 31, 2012 makes 293,339,703 thsd. rubles. It is divided
into 10,440,000,997,683 ordinary shares with a par value of 0.02809767 rubles. The Company has no
preferred shares.
The major shareholders of the Company as of December 31, 2012 are the companies of FSK UES
Group (18.57 %), the Russian Federation represented by the Federal Agency for State Property
Management (13.76 % shares), INTER RAO Capital CJSC (13.93 %), companies the Norilsk Nickel
Group (13.21 %), companies of the Rosatom Group (12.49 %).
As of December 31, 2012 the subsidiary companies INTER RAO Capital CJSC, INTER RAO Invest
CJSC, Bashkiria Generating Company LLC own Company’s shares with a par value of 40,851,089
thsd. rubles, 329,926 thsd. rubles, and 176,576 thsd. rubles respectively (as of 31/12/2012 –
34,279,211 thsd. rubles, 332,870 thsd. rubles and 0 thsd. rubles respectively).
As of December 31, 2012 the Company's authorized capital has been fully paid.
Treasury shares
On April 26, 2012 a special meeting of shareholders of JSC ―INTER RAO UES‖ was held. At this
meeting reorganization of the Company through consolidation of JSC ―OGK-1‖, JSC ―OGK-3‖, JSC
―INTER RAO EnergoAktiv‖, JSC ―INTER RAO Energy‖, and JSC ―Bashenergoaktiv‖ was approved.
The shareholders who did not take part in voting, or voted against reorganization, received the right to
offer their shares for repurchase. In the result thereof 228,643,162,642 shares were offered and
repurchased by the Company in June – July 2012 at a price of 0.0284 rubles per share, for a total sum
of 6,493,466 thsd. rubles. These shares were reflected in the treasury shares.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
64
In October 2012 the Company sold 228,628,756,041 shares repurchased from shareholders at a price
of 0.0284 per share to the subsidiary company INTER RAO Capital CJSC, for a total sum of
6,493,057 thousand rubles.
Therefore, as of 31/12/2012 the Company has its own shares accounted on its balance, which have
been repurchased from the shareholders in the amount of 14,406,601 shares for a sum of 409 thousand
rubles.
Reserve capital
In accordance with the laws and the Articles of Association, the Company creates a reserve fund in the
amount of 15 % of its authorized capital. In 2012 no deductions to the reserve fund were made because
of facing net loss in the year 2011. Reserve capital has not changed in the result of Company’s
reorganization. The amount of reserve capital as of 31/12/2012 makes 296,339 thsd. rubles, which
makes 0.1010 % of the authorized capital.
Additional capital
In the structure of its additional capital, the Company accounts:
Line-items of additional capital Amount
As of 31/12/2012 As of 31/12/2011 As of 31/12/2010
Paid-in income 195 090 772 195 090 772 21 771 370
Increase in the value of the items of
fixed assets 308 402 352 952 6 110 175
Profit from reorganization 325 345 - -
Other 13 13 13
TOTAL 195 724 532 195 443 737 27 881 558
The amount of additional capital was changed in the period of report because of the following events:
- Decrease in additional capital with regard to increase in the value of the items of fixed assets
in 2012 compared to the previous year was caused by disposal of the items of fixed assets in 2012 in
connection with the termination of production of electricity and heat energy and transfer of this
function to 100 % subsidiary INTER RAO - Electric Power Plants OJSC. Retirement of the increase in
value of the items of fixed assets in the amount of 44,550 thousand rubles was carried out at the
expense of Company’s retained profits.
- In the result of Company’s reorganization through connection of the last of reorganized
companies JSC ―Bashenergoaktiv‖ as of November 06, 2012, the difference between net assets of
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
65
connected company Bashenergoaktiv OJSC aand increase in the authorized capital formed in the result
of additional issue for the purpose of converting shares of minority shareholders of JSC
―Bashkirenergo‖ into Company’s shares, appeared. The difference in the amount of 325,345 thousand
rubles was attributed to the additional capital of the Company. Detailed information is provided in
section 27 ―Reorganization‖ of this Explanatory Note.
Dividends
In 2012 the Company did not pay dividends because of net loss faced in the year 2011. Dividends for
the year 2010 on the ordinary shares in the amount of 150,015 thousand rubles, at 0.00001544 rubles
per one ordinary share were paid in the year 2011.
12. ESTIMATED LIABILITIES
The table below shows the progress between the items of provisions for future costs for the year 2012:
Kind of provision As of
31/12/2011
Received Disposed As of
31/12/2012
Provision for future costs on
payment of remunerations for
the year 2012 to the Company's
employees, and Members of the
Board of Directors 464 524 424 892 (464 524) 424 892
Provision for future costs on
payment for vacations unused
by the Company's employees
164 211 32 967 (55) 197 123
Unfinished legal proceedings 60 711 9 128 - 69 839
Provision for possible losses
203 439 - - 203 439
TOTAL 892 885 466 987 (464 579) 895 293
Provision for future costs on payment of remunerations
Provision for future costs on payment of remunerations for the year 2012 to the Company’s employees
in the amount of 424,892 thousand rubles was formed due to the substantial value of the planned
payments. Remunerations are provided for by the collective agreement and the regulation on bonus
payments to the Company’s employees. This provision will be used in the first half of the year 2013.
In the opinion of the management staff, the actual payments for the said purposes will not exceed the
sum of provision formed.
Provision for future costs on payment for vacations unused
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
66
Provision for future costs of payment for vacations unused in the amount of 197,123 thousand rubles
was formed by the Company on the basis of statistics of accounting data of working days and vacation
days within the period of 2008-2012. Pursuant to the principle of prudence, the Company has
recognized its obligation to the employees on payment for vacations unused as of December 31, 2012.
This provision will be recalculated as of each reporting date, and adjusted downwards (upwards)
depending on the decrease (increase) of unused vacation days. Provision will be fully expended in the
event of simultaneous dismissal of employees during the reorganization (liquidation) of the Company
Provision for unfinished legal proceedings
Provision for unfinished legal proceedings in the amount of 69,839 thousand rubles was formed on the
basis of data on probability of the legal proceedings outcome not in favor of the Company. In 2011 a
field tax audit was conducted in the Company for the period of activity from 2008 to 2010. Based on
the audit results tax authority issued a decision on additional accrual of taxes, penalties and fines
amounting to 60,711 thousand rubles. The Company disagreed with the decision of the tax authority
and decided to defend its position in court. As of 31/12/2012 legal proceedings on this claim have not
been finished yet. The Company left the provision accrued without changes. Additional provision in
the amount of 9,128 thsd. rubles was received by the Company in 2012 in the structure of liabilities
received in the result of reorganization of JSC ―Bashenergoaktiv‖.
Provision for possible losses
Provision for possible losses in the amount of 203,439 thousand rubles was formed in 2011 on the
basis of data on likely reduction of economic benefits in the result of fulfilling the following
obligations by the Company:
Repayment of obligations of subsidiary INTER RAO Capital CJSC on the payment of the part of
profits from the sale of a block of shares of JSC ―Kuban Generation Company‖ in the amount of
203,439 thousand rubles of JSC ―Rosneft‖.
It is expected that the provision will be expended before the end of 2013.
The table below shows the progress between the items of provisions for future costs for the year 2011:
Kind of provision As of
31/12/2010
Received Disposed As of
31/12/2011
Provision for future costs on
payment of remunerations for
the year 2011 to the Company's
employees, and Members of the 389 433 464 524 389 433 464 524
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
67
Board of Directors
Provision for future costs on
payment for vacations unused
by the Company's employees
176 985 22 141 34 915 164 211
Provision for future costs of
payment for auditor's services 1 538 1 538
Unfinished legal proceedings 60 711 60 711
Provision for possible losses 203 439 203 439
TOTAL 567 956 750 815 425 886 892 885
13. CREDITS AND LOANS
In 2012 the Company borrowed funds in the form of bank credits and loans. Credits were provided
within the framework of open credit lines. Information on free remains of the funds available for the
Company under credit lines is given in the section ―Credit Lines‖. As of December 31, 2012 the
Company has not overdue debts on the borrowed funds.
Itemization of credits and loans attracted by the Company is given below:
Thousand rubles
Creditor Currency
of credit Remaining
credit as of
31/12/2010
Remaining
credit as of
31/12/2011
Remaining
credit as of
31/12/2012
Date of
credit
repayment
Security
Bank credits
Sberbank of Russia JSC
(OJSC) Roubles 4 000 000 2 000 000 2 000 000 14.06.2013 none SC "Vnesheconombank" US
Dollars 4 967 735 12.11.2013 none Gazprombank (OJSC) Roubles 1 680 628 - - 29.08.2014 none SC "Vnesheconombank" Roubles 2 449 312 - - 30.09.2018 none Bank VTB Capital US
Dollars 253 974 21.03.2011 none Gazprombank (OJSC) Roubles 850 000 - - 20.10.2014 none Gazprombank (OJSC) Roubles 1 700 000 2 200 000 - 07.06.2013 None, (a) TransCreditBank (OJSC) Roubles 2 200 000 27.05.2013 None, (a) "Alfa-Bank" (OJSC) Roubles 2 200 000 2 200 000 900 000 30.06.2013 None, (a) "Alfa-Bank" (OJSC) Roubles 2 500 000 2 500 000 31.12.2015 None, (a) JSB Russia (OJSC) Roubles 2 000 000 2 000 000 31.05.2014 none Loans
INTER RAO Credit B.V. Roubles - 2 133 272 1 817 232 29.09.2018 none
INTER RAO Credit B.V. US
Dollars 5 247 964 4 950 750 11.11.2015 none TOTAL net of interest 20 301 649 18 281 236 14 167 982
Debts on interests (short-
term) 90 778 24 228 19 015
TOTAL, with interests
Line 1410 + line 1510 of
Form 1 20 392 427 18 305 464 14 186 997
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
68
The total amount of long-term credits repayable within not more than one year from the reporting date
and transferred to short-term debts, not taking into account interests, made 3,216,041 thousand rubles
as of December 31, 2012 (316,040 thousand rubles – as of December 31, 2011; 570,014 thousand
rubles - as of December 31, 2010).
Interest rates under long-term credits in 2012 ranged from 7.5 % to 8.95 % under credits in rubles (7.5
% to 8.95 % in 2011), and from 5.2 to 5.5 % (5.5 % in 2011) under credits in foreign currency.
In the period of report the Company received to its balance in the result of reorganization and
consolidation of JSC ―OGK-1‖ the liabilities on the loan in the sum of 2,309,586 thousand rubles,
including interests in the amount of 9.586 thousand rubles. This liability was extinguished by the
Company in full, and there is no debt as of 31/12/2012.
Interests on borrowings included in the value of investment assets
There have been no interests on credits and loans included in the value of investment assets in 2011
and 2012.
Credit lines
Creditor Limit Unused sum as of
31/12/2012
Availability deadline
"Alfa-Bank" (OJSC) 3 800 000 1 300 000 December 2015
"Alfa-Bank" (OJSC) 2 200 000 1 300 000 June 2013
Gazprombank (OJSC) 2 200 000 2 200 000 June 2013
TransCreditBank (OJSC)
2 200 000 2 200 000 May 2013
TOTAL 10 400 000 7 000 000
14. PAYABLES
As of December 31, 2012 and 2010-2011, the structure of the Company's accounts payable includes
current (not overdue) debts to suppliers and contractors, personnel of the organization, tax authorities,
extra-budgetary funds and other creditors.
The flow and existence of accounts payable is given in the table below.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
69
14.1
. P
rese
nce
an
d f
low
of
short
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m p
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les
Bal
ance
as
of
the
end
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the
yea
r
43
778
49
2
4 4
81 8
58
incl
ud
ing
:
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s a
nd
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ors
1
73
6 2
94
1 8
29 4
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40
6 0
96
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(83
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83
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1 3
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3 4
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36
3 5
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65
Oth
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36
857
83
6
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9 0
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f th
e in
dic
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ort
-ter
m p
ay
ab
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- to
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Fo
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ectr
icit
y (
po
wer
)
pu
rch
ase
d
Fo
r el
ectr
icit
y t
ran
spo
rta
tion
Fo
r g
as
(in
clu
din
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tra
nsp
ort
ati
on
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oth
er d
ebts
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t to
su
pp
lier
s a
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th
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per
ati
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ith
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fin
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cia
l in
stru
men
ts
tra
nsa
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oth
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eiv
ed
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
70
14.1 Payables to suppliers and contractors
The major creditors of the Company as at December 31, 2012 are:
Centre of Financial Settlements JSC ―CFR‖. The debt of the Company to JSC ―CFR‖ for
electricity (power) amounts to 1,039,753 thousand rubles (969,662 thousand rubles as of
December 31, 2011; 999,245 thousand rubles — as of December 31, 2010).
INTER RAO – Electric Power Plants OJSC The debt of the Company to INTER RAO – Electric
Power Plants OJSC for the power supplied and for the lease of production equipment amounts to
1,072,486 thousand rubles (940,957 thousand rubles – as of 31/12/2011; none – as of
31/12/2010).
Federal Grid Company OJSC The debt of the Company for transportation of electricity to FGC
OJSC amounts to 366,620 thousand rubles (323,501 thousand rubles as of December 31, 2011;
313,235 thousand rubles — as of December 31, 2010).
14.2 Other payables
Other accounts payable mainly include the sums of debt on payment for purchased securities (shares),
and the debt on the agreements of assignment of liabilities, the debt on contribution to the authorized
capital of subsidiary, and settlements with other creditors of the Company.
The Company's other payables are given below:
Other payables As of
31/12/2012
As of
31/12/2011
As of
31/12/2010
Other creditors, total: 38 188 850 349 073 2 864 565
including:
Debts to the subsidiary on payment for
securities 26 296 486 1 471 610
Company’s debt on its own bills of exchange 10 402 247 -
Debt on settlements for electricity under
contracts of commission, assignments 588 940 86 979 129 169
Value-added tax 499 378 18 838 85 348
Debts on contribution to the authorized capital
of the subsidiary (affiliated) company 152 929 159 188 1 158 952
Debt on assignment of liabilities to the
subsidiary 150 870
Debts to insurance companies 46 981 47 944
other creditors 51 019 36 124 19 486
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
71
In 2012 in the course of reorganization of JSC ―Bashkirenergo‖ the Company purchased shares of the
latter from minority shareholders, and also purchased shares of JSC ―Bashkirenergo‖ from JSC
―System-Invest‖ with the consent of JSC ―AFK System‖. The cost of purchase made 11,115,870
thousand rubles. By mutual consent of the parties a part of the sum in the amount of 713,623 thousand
rubles was paid in cash, the remaining sum in the amount of 10,402,247 thousand rubles was paid by
the Company with its own bills of exchange. Maturity time of the bills of exchange is January, May,
September 2013.
In 2012 the Company purchased shares of JSC ―OGK-1‖, JSC ―OGK-3‖, JSC ―Saint Petersburg Sale
Company‖, JSC ―TGK-11‖ from the subsidiary company INTER RAO Capital CJSC. The cost of
purchasing the said shares made 26,296,786 thousand rubles. This debt will be repaid during the year
2013. The Company plans to repay the debt through the offset of mutual similar liabilities.
14.3 Other long-term liabilities
Name of the indicator Code Period
Balance as
of the
beginning
of the year
Changes for the period
Balance as of
the end of the
year
proceeds disposal reclass
as a result of
business
transactions repayment
Writing-off
to financial
result
Long-term payables - total 5551 2012 19 269 014 - (16 895 753) - (647 087) 1 726 174
5571 2011 - 19 269 014 - - - 19 269 014
including:
debt appeared on the basis of
concession
5552 2012 16 895 753 - (16 895 753) - - -
5572 2011 - 16 895 753 - - -
16 895 753
advance payments received 5553 2012 2 373 261 - - (647 087) 1 726 174
5573 2011 - 2 373 261 - - -
2 373 261
As of 31/12/2012 the Company reflects in the structure of other long-term liabilities the debt on
advance payments received from the buyers of power equipment. During the period of report a part of
long-term debt was reclassified into short-term debt in the sum of 647,087 thousand rubles.
Company’s long-term liabilities broken down by creditors are shown below:
Other long-term liabilities As of As of As of
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
72
31/12/2012 31/12/2011 31/12/2010
Debt to subsidiary INTER RAO Capital CJSC formed
as a result of assignment of debt (including interest) 16 895 753
Advances received from buyers of power equipment,
total 1 726 174 2 373 261
including:
BARIVEN
(Bolivarian Republic of Venezuela) 864 165 1 511 252
HIDROTOAPI (Republic of Ecuador) 862 009 862 009
TOTAL 1 726 174 19 269 014 -
15. PROCEEDS FROM SALES
The Company discloses information on the proceeds from sales in the years 2011-2012 in the section
22 ―Segment Reporting‖.
16. EXPENDITURES ON REGULAR ACTIVITIES
Expenditures on regular activities are shown in the table below.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
73
Name of the indicator Code For 2012 For 2011
Tangible costs - total 5610 32 218 939 53 297 853
including: electricity (power) for resale 5611 29 956 311 43 265 035
process fuel (gas) 5612 2 097 817 9 495 359
other materials 5613 164 811 509 823
power equipment for export 5614
- 27 636
Remuneration costs 5620 2 571 074 3 465 608
Allocations for social needs 5630 347 289 361 432
Depreciation - total 5640 536 460 2 402 822
including: fixed assets depreciation 5641 531 803 2 400 209
intangible assets depreciation 5642 4 657 2 613
Other costs – total, 5650 8 164 661 11 772 720
including: electricity transportation costs 5651 3 007 991 5 281 801
operational property lease 5652 1 958 823 2 299 888
infrastructure services costs 5653 805 361 1 162 658
taxes and levies, including customs payments 5654 137 300 628 127
fixed assets repairs and maintenance costs 5655 811 073 624 589
consultation and information, legal, audit services 5657
333 442 530 543
travel, transport costs 5658 305 831 355 799
financial lease (leasing) 5659 75 587 278 253
expenses on voluntary insurance of property, civil
liability, medical insurance 5660 52 703 184 367
expenses on software purchase and support 5661 153 963 136 943
security services costs 5662 17 211 92 229
representation and advertisement costs 5663 50 004 49 043
other expenses 5664 455 372 148 480
Total on elements 5665 43 838 423 71 300 435
Change in balances (growth (-), decrease (+))
unfinished construction, finished product (growth (-)) 5670
unfinished construction, finished product (decrease
(+)) 5680
TOTAL expenses on regular activities 5600 43 838 423 71 300 435
17. OTHER PROFITS AND EXPENSES
In the statement of financial results of the Company for the years 2012 and 2011, the structure of other
profits and expenses mainly reflect proceeds and costs from operations with currency, exchange
differences from revaluation of assets and liabilities expressed in foreign currency, incomes (costs)
from lease of property, income (costs) from revaluation of quoted securities, provisions for
depreciation of financial investments, etc.
Other profits and expenses from the settled operations are given in the table below.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
74
Other profits For 2012 For 2011
Other profits, total: 121 529 638 65 327 947
including:
Profits from the operations of currency sale 19 730 983 41 824 824
Profits received as a result of revaluation of quoted
securities 7 558 709 5 600 841
Profits derived from disposal of financial investments
traded on the Organized Market 55 081 135 5 570 208
Profits from disposal of fixed assets, material assets
and other property 26 928 326 4 108 874
Exchange differences from revaluation of assets and
liabilities in foreign currency 2 671 695 3 732 288
Profits derived from disposal of financial investments
not traded on the Organized Market 8 384 387 3 340 177
Restoration of provisions for doubtful debts 379 706 313 724
Insurance indemnity 29 114 185 181
Fines, penalties on the business agreements 131 136 149 972
Profits derived from the sale of of receivables 28 375 132 594
Profits from the lease of property 295 930 76 225
Profits derives from assignment of rights (except for
rights of claim for receivables) 46 345
Profits of previous years 19 393 74 516
Exchange differences from purchase/sale of currency
at the exchange rate other than that fixed by the RF
Central Bank 12 353 69 746
Income formed as a result of confirmation of 0 %
VAT rate - 55 209
Restoration of provision for devaluation - 32 135
of financial investments
Restoration of provision for reduction in the value of
materials 112 299 6 945
Profits from writing off the payables with an expired
period of limitation 447 3 908
Stock exchange variation margin 55 462 3 561
Other profits 63 843 47 019
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
75
Other expenses For 2012 For 2011
Other expenses, total: 132 550 135 218 698 144
including:
Costs of revaluation of quoted securities 5 698 950 125 439 036
Costs of operations for purchasing foreign currency 18 998 242 41 404 843
Provisions for bad debts 348 531 29 946 254
Costs derived from disposal of financial investments
traded on the Organized Market 51 601 451 5 737 679
Costs derived from disposal of financial investments
not traded on the Organized Market 8 376 815 4 728 541
Exchange differences from revaluation of assets and
liabilities in foreign currency 2 771 769 4 003 615
Costs of disposal of fixed assets, material assets and
other property 26 655 236 3 404 738
Costs derives from assignment of rights (except for
rights of claim for receivables) 46 345
Provisions for devaluation of financial investments 16 655 774 1 927 991
Contributions to the scientific and innovation activity
support foundations - 968 230
Provision for forthcoming costs 98 854 301 804
Costs of organizing the issue and service of securities 19 132 139 771
Costs derived from the sale of receivables 30 020 133 453
Provision for reduction in the value of inventories - 112 264
Losses of previous years 86 001 87 841
Other expenses For 2012 For 2011
Costs of cultural and sports events for the Company’s
employees 63 396 71 500
Costs of lease of property 153 843 45 794
Shareholders’ meeting costs 47 527 44 608
Bank services 271 293 43 025
Writing-off receivables with an expired period of
limitation 95 41 002
Other taxes (including VAT) 63 789 18 002
Contributions to non-profit organizations 12 357 17 425
Charity costs 6 000 12 815
Fines, penalties on the business agreements 78 091 9 068
Stock exchange variation margin 60 732 4 553
Exchange differences from purchase/sale of currency
at the exchange rate other than that fixed by the RF
Central Bank 44 103 4 423
Costs of reorganization 116 532
Other expenses 245 257 49 869
19. TAXES
Amount
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
76
Loss before tax (except for profits from participation in other entities) according
to accounting books (12 362 379)
Amount of provisional profit tax income 2 472 476
Permanent differences of the reporting period, including: 35 981 668
- on the sale of financial investments (quoted shares) (12 103 039)
- on the revaluation of financial investments (quoted shares) (1 859 759)
- on commercial and administrative costs 756 731
- on depreciation of fixed assets 33 459
- on the liquidation of fixed assets 37 062
- on the liquidation of other property 10 965
- on the provision for devaluation of financial investments 46 086 774
- on the provision for future costs 98 854
- on the provision for reduction in the value of inventories (112 299)
- on the sale of fixed assets 252 566
- on the sale of inventories 132 460
- on the sale of unfinished construction 5 110
- on the retirement of R&D that has given no result 66 305
- on other costs 2 576 479
Deductible temporary differences of the reporting period, including: (21 177 091)
- under the provision for unused vacations and forthcoming costs (237 939)
- under provision for bad debts (29 462 175)
- under electricity transportation costs (78 710)
- on the sale of securities 8 615 784
- on other costs (14 051)
Taxable temporary differences of the reporting period, including: 858 902
- on depreciation of fixed assets 41 357
- Process consolidation (2nd
power unit of the Branch ―Kaliningrad TPP-2‖ 822 203
- on other costs (4 658)
Taxable profit under tax accounting 3 301 100
Profit tax rate 20 %
Profit tax 660 220
Profits from participation in other entities (dividends) received by the Company in 2012 amounted to
2,573,215 thousand rubles (1,355,352 thousand rubles – in 2011). Profit tax charged from the profits
from participation in other entities is accounted by the Company in a separate line 2460 ―Other‖ of the
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
77
Statement of Financial Results. Profits from participation in other entities in the amount of 208,826
thousand rubles (384,531 thousand rubles – in 2011) are subject to profit taxation at the rate of 0 %.
Itemization of the line 2460 ―Other‖ of the Statement of Financial Results.
2012 2011
Profit tax from participation in other entities (dividends) (38 158) (86 079)
Profit tax payable in addition under clarified tax returns (16)
Adjustment (charging) of deferred tax liability (5 720) (895)
Penalties under taxes (5) (696)
Profit tax to be reduced under clarified tax returns 194 310 12 086
Adjustment (charging) of a deferred tax asset (949) (73 356)
Adjustment (writing-off) of a deferred tax liability 2 903 630 658
Total 152 381 481 702
Value-added tax
The total debt in compensation of VAT from federal budget, including supplies of electricity for
export, is equal to 783,159 thousand rubles as of 31/12/2012 (1,507,741 thousand rubles – as of
31/12/2011; 2,390,247 thousand rubles – as of 31/12/2010). This amount is in the structure of other
receivables of the balance sheet.
20. PROFIT PER SHARE
The base profit per share reflects a part of the profits of the reporting period, which can be potentially
distributed among the shareholders – holders of ordinary shares. It is calculated as the ratio of the base
profit for the accounting year to the average quantity of outstanding ordinary shares in the accounting
year.
In June 2012 the Company repurchased its own shares from the shareholders who did not take part in
voting or voted against reorganization of the Company, in the amount of 195,177,711,798 shares at
0.0284 RUB per share, for a total sum of 5,543,047 thousand rubles.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
78
In July 2012 the Company repurchased its own shares from the shareholders who did not take part in
voting or voted against reorganization of the Company, in the amount of 33,465,450,844 shares at
0.0284 RUB per share, for a total sum of 950,419 thousand rubles.
In October 2012 the Company sold 228,628,756,041 shares of its own at a price of 0.0284 RUB per
share to the subsidiary company INTER RAO Capital CJSC, for a total sum of 6,493,057 thousand
rubles.
In October 2012 within the frames of reorganization the Company carried out additional issue of
ordinary shares in the amount of 664,956,390,935 shares at the placing price of 0.02809767 RUB, for
a total sum of 18,683,725 thousand rubles. The date of actual placement of shares is 01/10/2012. Issue
has been carried out for the purpose of converning the shares kept by minority shareholders of JSC
―PGK-1‖, JSC ―OGK-3‖, JSC ―INTER RAO Energy‖, JSC ―INTER RAO EnergoAktiv‖, into shares
of JSC ―INTER RAO UES‖ upon consolidation of the said companies with the Company.
In November 2012 within the frames of reorganization the Company carried out additional issue of
ordinary shares in the amount of 59,044,606,748 shares at the placing price of 0.02809767 RUB, for a
total sum of 1,659,016 thousand rubles. The date of actual placement of shares is 06/11/2012. Issue has
been carried out for the purpose of converning the shares kept by minority shareholders of JSC
―Bashkirenergo‖ into shares of JSC ―INTER RAO UES‖ upon consolidation of the said company with
the Company.
The calculation of the
average quantity of shares
outstanding during the
reporting period has been
made according to the
Methodical
recommendations on
disclosure of information
on profits per share,
approved by the RF
Ministry of Finance Order
of March 21, 2000 No.
29n.
2012 2011 2010
Base profit/(loss) for the
reporting period, thousand
rubles (14 360 641) (143 127 967) 2 704 427
Quantity of shares, units 9 758 318 447 974 6 873 094 737 595 2 639 852 861 935
Base profit (loss) per share
(kopecks) (0,1472) (2,0824) 0,1024
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
79
Diluted profit per share,
kopecks (0,1472) (2,0824) 0,1024
In 2012 and 2011-2010 the Company had no bonds convertible into shares.
21. RELATED PARTIES
21.1. Major entities
As of December 31, 2012 there is no shareholder (legal entity or individual) in the structure of the
Company's shareholders with a participation interest exceeding 20 % of the authorized capital.
21.2. Subsidiaries and associated companies
Full list of subsidiaries and associated companies is posted on the Company’s website
http://www.interrao.ru/investors/disclosure/affiliated/
21.2.1. Proceeds from sales to subsidiaries and associated companies
Company’s proceeds from sales of goods (works, services) to subsidiaries and associated companies in
2012 amounted to 16,873,727 thousand rubles. (30,353,147 thousand rubles - in 2011) without VAT.
Sale of electricity was carried out on regular commercial terms at market prices for the corresponding
regions of supplies. Other sales mainly include agent’s fee and operations on the sale of information
and process services. The cost of services rendered corresponds to the market value.
Proceeds from sale Sum
2012 2011
Total sales 16 873 727 30 353 147
including:
Sale of electricity (power) under bilateral agreements 14 059 055 25 558 015
Sale of electricity (power) under the contract of
commission concluded with JSC ―CFR‖ 2 739 258 4 698 396
Other sales 75 414 96 736
21.2.2. Profits in the form of dividends received from subsidiaries and associated companies
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
80
Name of related party Sum
2012 2011
Total interests, including: 2 453 767 1 223 211
- on the ordinary shares 2 453 767 1 191 506
- on the preferred shares - 31 705
21.2.3. Interest yield from all types of borrowings issued to subsidiaries and associated companies
Interest yield from all types of borrowings issued to subsidiaries and associated companies in 2012
amounted to 801,534 thousand rubles (856,114 thousand rubles – in 2011). Interest rates applicable in
2012 corresponded to the level of market interest rates for similar borrowings.
21.2.4. Other profits in the form of profits from the sale of property, lease of property, fines under
agreements and other non-operating income received from subsidiaries and associated
companies
Other profits in the form of profits from the sale of property, lease of property, fines under agreements,
and other non-operating income received from subsidiaries and associated companies in 2012
amounted to 27,145,607 thousand rubles (4,101,362 thousand rubles - in 2011), not including VAT.
The Company leases out its own property with the book value of 2,571,976 thousand rubles as of
31/12/2012 (771,036 thousand rubles - as of 31/12/2011).
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
81
21.2.5. Purchase of goods (works, services) from subsidiaries and associated companies
The cost of purchased goods, works, services provided by subsidiaries and associated companies in
2012 amounted to 6,273,535 thousand rubles. (11,473,261 thousand rubles - in 2011) without VAT.
Purchases were carried out on regular commercial terms and conditions. Itemization is given below:
Name of related party Sum
2012 2011
Purchase of electricity (power), total 6 273 535 11 473 261
Purchase of electricity (power) 3 324 582 9 111 504
Purchase of services 2 948 953 2 245 195
Purchase of R&D - 116 562
The scope of expenses on purchasing the services reflects the expenses on the lease of equipment and
office premises from subsidiaries with the total book value of 17,180,383 thousand rubles (detailed
information is provided in note 3).
21.2.6. State of settlements with subsidiaries and associated companies
RECEIVABLES
Short-term receivables of associated companies
Name of related party Receivables
As of
31.12.2012
As of
31.12.2011
As of
31.12.2010
Short-term receivables of buyers
and customers 879 799 585 951 1 861 814
Short-term receivables of buyers of
electricity (power) under
commission agreement entered into
with JSC ―CFR‖. 82 283 113 821 72 126
Advances paid to suppliers and
contractors 1 082 620 164 068 7 952
Other receivables 52 345 479 53 742 377 1 330 798
TOTAL 54 390 181 54 606 217 3 272 690
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
82
Long-term receivables of associated companies
Name of related party Receivables
As of
31.12.2012
As of
31.12.2011
As of
31.12.2010
Long-term receivables 24 466 099 767 856 1 956 604
TOTAL 24 466 099 767 856 1 956 604
PAYABLES
Short-term payables of associated companies
Name of related party Payables
As of
31.12.2012
As of
31.12.2011
As of
31.12.2010
Payables of suppliers and
contractors 1 418 180 1 284 529 261 349
Advance payments received from
buyers - 112 915 598 028
Other payables 26 607 819 159 187 2 630 561
TOTAL 28 025 999 1 556 631 3 489 938
Other long-term payables of associated companies
Name of related party Payables
As of
31.12.2012
As of
31.12.2011
As of
31/12/2010
Other long-term payables
- 16 895 753 -
TOTAL - 16 895 753 -
21.2.7. Loans issued to subsidiaries and associated companies
Interest rates on the borrowings issued in 20122 made 10 % to 15 % per annum in foreign currency
(6.924 % to 15 % - in 2011), 7.8 % - 10.25 % per annum - in rubles (8 % to 14.6 % - in 2011).
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
83
Data in the table below are exclusive of interests.
Name of related
party
Remaining
loan as of
31/12/2011
Issued in
2012
Repaid in
2012 Provision
Exchange
differences
balance
Remaining
loan as of
31/12/2012
Electric Networks
of Armenia CJSC 1 470 685 - - - (55 774) 1 414 911
INTERENERGO
B.V. - - - - - -
ASIA ENERGY
B.V. 39 118 - (29 857) - (1 736) 7 525
Moldavskaya
GRES CJSC 1 749 732 116 656 (544 116) - (83 377) 1 238 895
Elektroluch CJSC 2 527 558 328 195 (120 000) - - 2 735 753
INTER RAO
CREDIT B.V. - 1 094 996 (1 094 996) - - -
Bashkiria
Generating
Company LLC **
- 900 000 - - - 900 000
Coal Mine LLC ** - 706 000 - - - 706 000
TGR ENERJI* 6 502 - - (5 783) (719) -
TOTAL 5 793 595 3 145 847 (1 788 969) (5 783) (141 606) 7 003 084
(*) Data in the table are provided net of provision for devaluation of loans issued in the amount
of 11,976 thousand rubles as of 31/12/2012 in respect of the debt of subsidiary company
TGR ENERJI (6.193 thousand rubles – as of 31/12/2011).
(**) The said loans have been transferred to the Company in the result of reorganization and
consolidation of JSC ―Bashenergoaktiv‖ and JSC ―OGK-3‖. These sums are not accounted
in the statement of cash flows, in the structure of the operations with related parties in the
line 4223.
21.2.8. Loans received from subsidiaries and associated companies
Long-term loans in foreign currency
In 2011 the Company raised borrowed funds in the amount of 163,000 thousand USD. Interest rate
corresponds to the market interest rate for similar borrowings. The term of repayment is 2015. Data in
the table below include interests.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
84
Name of related
party
Remaining
loan as of
31/12/2011
Issued/charged
in 2012
Repaid in
2012
Exchange
differences
balance
Remaining
loan as of
31/12/2012
INTER RAO
CREDIT B.V. 5 255 080 275 795 (282 363) (292 124) 4 956 388
Including interests 7 116 275 795 (282 363) 5 090 5 638
Long-term loans in rubles
In 2011 the Company raised borrowed funds in rubles. Interest rate corresponds to the market interest
rate for similar borrowings. The term of repayment is 2018. Data in the table below include interests.
Name of related
party
Remaining
loan as of
31/12/2011
Issued/charged
in 2012
Repaid in
2012
Transferred to
short-term loans
Remaining
loan as of
31/12/2012
INTER RAO
CREDIT B.V. 1 822 055 180 089 (181 261) (316 040) 1 504 843
Including interests 4 824 180 089 (181 261) - 3 652
Short-term loans in rubles
In 2012 in the result of consolidation with JSC ―OGK-1‖, the Company received to its balance an
intra-group loan in the amount of 2,309,586 thousand rubles, including interests in the amount of 9.586
thousand rubles. The Company additionally charged the interests due in the amount of 2,663 thousand
rubles, and repaid debt in full in October 2012. Data in the table below include interests.
Name of related
party
Remaining
loan as of
31/12/2011
Issued/charged
in 2012
Repaid in
2012
Transferred
from long-term
loans
Remaining
loan as of
31/12/2012
INTER RAO
CREDIT B.V. 316 040 2 312 249 (2 628 289) 316 040 316 040
Including interests - 12 249 (12 249) - -
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
85
21.2.9. Bills of exchange of subsidiaries and associated companies (excluding interest)
Name of related party
Remaining
loan as of
31/12/2011
Issued in
2012
Repaid in
2012
Exchange
differences
balance
Remaining
loan as of
31/12/2012
INTER RAO UES
Energy Efficiency
Center LLC
400 000 - 400 000 - -
INTER RAO –
Information
Technologies LLC
- 10 020 10 020 - -
TOTAL 400 000 10 020 410 020 - -
21.3. Information on transactions with key management personnel
The Company attributes Management Board and Board of Directors members to the key management
personnel. Their lists are given in the General data section of the Explanatory Note.
In 2012 the Company has charged bonuses to the members of the Board of Directors for participation
in meetings in the total amount of 12,908 thousand rubles (in 2011 - 10,903 thousand rubles). No other
payments were made for the members of the Board of Directors in 2012.
In 2012 the Company has charged remuneration to the members of the Management Board (wages,
bonuses, privileges, interest-free loans) for the total amount of 667,421 thousand rubles (in 2011 -
420,546 thousand rubles). Besides, in 2012 the Company transferred voluntary pension fees to non-
state pension fund GAZFOND in favor of the members of the Management Board in the amount of
27,372 thousand rubles (in 2011 - no). No other payments to the members of the Management Board
were effected in 2012 and 2011.
Besides, in 2012 the Company has charged remuneration to the members of the Audit Committee
(wages, bonuses, privileges, remunerations) for the total amount of 49,978 thousand rubles (in 2011 -
22,349 thousand rubles). In 2012 the Company transferred voluntary pension fees to non-state pension
fund GAZFOND in favor of the Company’s employees - members of the Audit Committee in the the
amount of 3,254 thousand rubles (in 2011 - no). No other payments to the members of the Audit
Committee were effected in 2012 and 2011.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
86
21.4. Cash flows on transactions with related parties
Name of the indicator Code For 2012 For 2011
Cash flows from current transactions
Proceeds - total 4110 17 709 897 31 486 203
including
from sales of products, goods, works
and services 4111 13 706 785 26 798 962
from the sale of electricity (power)
under commission agreement entered
into with FIC CJSC 4111 2 739 258 4 656 701
lease payments, license fees, royalties,
commissions and other similar
payments 4112 272 912 30 540
other proceeds 4119 990 942 -
Payments - total 4120 (6 474 846) (11 065 586)
including
to suppliers (contractors) for raw
materials, works and services 4121 (5 860 461) (10 581 142)
due to payment of employees’
remuneration 4122 (569 935) (413 541)
other payments 4129 (44 450) (70 903)
Cash flows from investment transactions
Proceeds - total 4210 7 283 015 9 801 661
including
from sales of current assets (other than
financial investments) 4211 2 105 915 3 782 329
from sales of shares (participatory
interest) in other organizations 4212
from return of loans provided, from
sales of debt securities (right of demand
of cash to other persons) 4213 2 198 989 4 145 753
dividends, interest on debt financial
investments and similar proceeds from
equity participation in other
organizations 4214 2 978 111 1 873 579
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
87
Name of the indicator Code For 2012 For 2011
Payments - total 4220 (4 158 890) (9 342 139)
including
due to acquisition of shares
(participatory interest) in other
organizations 4222 (2 609 023) (3 863 840)
due to acquisition of debt financial
investments (right of demand of cash to
other persons), provision of loans to
other entities 4223 (1 549 867) (5 478 299)
Cash flows from financial transactions
Proceeds - total 4310 - 7 357 116
including
obtaining credits and loans 4311 - 7 357 116
Payments - total 4320 (9 585 380) (124 577)
including
to owners (participants) due to
repurchase of organization’s shares
(participatory interest) from them or
their quit from composition of
participants 4321 (6 493 466)
for payout of dividends and other
payments on distribution of profits in
favor of owners (participants) 4322 (45 567)
due to repayment (repurchase) of bills
of exchange and other debt securities,
repayment of credits and loans 4323 (3 091 914) (79 010)
22. INFORMATION BY SEGMENTS
Risks and profits of the Company are defined mainly by distinctions between the geographical regions
where the Company sells electricity. Thus, the Company distinguishes as the primary information
geographical segments by the principle of sales markets of electricity. The main share of sales in 2012
falls on the domestic market (40 %).
Considerable volume of electricity is supplied to Lithuania (18 %), Belarus (17 %), Finland (14 %).
The segment ―other countries‖ includes minor supplies to Azerbaijan, Georgia, Kazakhstan, Ukraine,
South Ossetia. The share of proceeds falling on sales to each of the listed countries separately is less
than 10 %.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
88
Indicators of the reportable segments to be disclosed are set out in the assessment, in which they are
submitted to the Company's management for decision making (according to management accounting).
Retained costs represent the costs related to the Company in general. Segment assets consist mainly of
fixed assets, intangible assets, inventories, receivables and cash Segment assets generally do not
include investments. Segment liabilities comprise operating liabilities and exclude items such as tax
liabilities and certain types of loans related to the Company in general. Capital costs include the receipt
of fixed assets. Impairment loss and provisions relate to the segment only if they relate to the assets
thereof.
In the reporting period there was no changes in way to assess the indicators used for determining the
financial result (profit or loss) of the reportable segment, as compared to previous periods and,
accordingly, the effect of changes in the financial result (profit, loss) of the reportable segment in the
reporting period.
The tables below present information on income and profits, as well as assets and liabilities by the
Company’s geographical segments.
Description Russia Finland Lithuania Belarus Other
countries Total
For 2012
Proceeds 17 117 362 5 774 561 7 782 284 7 192 853 4 825 118 42 692 178
Costs (18 924 103) (4 152 720) (4 874 724) (4 212 557) (3 010 975) (35 175 079)
Profit by segments (1 806 741) 1 621 841 2 907 560 2 980 296 1 814 143 7 517 099
Retained costs (17 306 263)
Total profit before taxation (9 789 164)
Assets by segments 84 338 817 345 397 508 077 318 459 803 040 86 313 790
Retained assets 358 345 120
Total on assets 444 658 910
Capital assets by
segments 3 402 298 - - - - 3 402 298
Retained capital assets 365 913 085
Total on capital assets 369 315 383
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
89
Liabilities by
segments 41 306 365 116 - 43 797 4 152 032 45 502 310
Undistributed liabilities 15 137 367
60 639 677 Total on liabilities
Capital investments
1 067 051 - - - - 1 067 051
For 2011
Proceeds 36 436 576 18 314 219 9 116 217 5 553 083 3 967 861 73 387 956
Costs (38 756 546) (10 543 299) (5 322 740) (3 370 176) (2 762 391) (60 755 152)
Profit by segments (2 319 970) 7 770 920 3 793 477 2 182 907 1 205 470 12 632 804
Retained costs (163 036 657)
Total profit before taxation (150 403 853)
Assets by segments 9 105 878 136 008 344 549 432 521 4 446 491 14 464 447
Retained assets 342 853 751
Total on assets 357 318 198
Capital assets by
segments 29 689 654 - - - 2 616 374 32 306 028
Retained capital assets 250 456 632
Total on capital assets 282 762 660
Liabilities by
segments 20 625 575 72 001 112 915 29 655 2 859 769 23 699 915
Undistributed liabilities 19 490 502
Total on liabilities 43 190 417
Capital investments 2 552 992 - - - - 2 552 992
In 2011-2012 the Company was engaged in the production of electricity. In this connection, the
Company discloses information by operational segments, with a breakdown into proceeds from
realization of electricity (power and other products) acquired, and realization of other goods (work,
services). Production activity of the Company is in the process of termination, and is of closing nature
in the period of report. In the structure of other sales the Company mainly includes compensation for
electricity supply under the contracts of commission.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
90
Description Production of
electricity (power and
other products)
Resale of electricity
(power) Other sales Retained assets Total
As of 31/12/2012
Proceeds 4 826 491 37 766 224 99 463 - 42 692 178
Assets by
segments 2 861 931 861 012 87 746 440 848 221 444 658 910
Capital
investments 594 764 469 239 3 048 - 1 067 051
As of 31/12/2011
Proceeds 18 813 248 54 132 023 442 685 - 73 387 956
Assets by
segments 30 355 270 103 472 2 933 072 323 926 184 357 318 198
Capital
investments 2 534 152 18 840 - - 2 552 992
As of 31/12/2010
Proceeds 12 479 810 47 746 702 1 166 800 - 61 393 312
Assets by
segments 50 437 521 416 590 14 697 943 69 724 782 135 276 836
Capital
investments 9 397 204 55 281 - - 9 452 485
The following table represents information on buyers (customers), sales to which provides proceeds at
least 10 % of total proceeds from sales to the Company’s buyers (customers):
Name of buyer Total value of
proceeds
Share in the total
proceeds from sale,
%
Name of the
reporting segment
For 2012
RAO NORDIC OY 4 882 430 11,44 Finland
UAB "INTER RAO Lietuva" 7 782 283 18,23 Lithuania
GPO Belenergo 7 192 853 16,85 Belarus
JSC ―CFR‖ 13 462 582 31,53 Russia
TOTAL 33 320 148 78,05
For 2011
RAO NORDIC OY 14 453 649 19,69 Finland
UAB "INTER RAO Lietuva" 9 116 217 12,42 Lithuania
JSC ―CFR‖ 24 060 151 32,78 Russia
TOTAL 47 630 017 64,89
For 2010
RAO NORDIC OY 10 123 707 16,49 Finland
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
91
UAB "INTER RAO Lietuva" 7 198 568 11,73 Lithuania
JSC ―CFR‖ 20 558 043 33,49 Russia
TOTAL 37 880 318 61,71
These parameters are given in the evaluation applicable for reflection in the accounting (financial)
statements of the similar parameters of the Company in general.
23. DISCLOSURE OF INFORMATION ABOUT OFF-BALANCE-SHEET ITEMS
Itemization of securities and other bonds issued by the Company
The total amount of securities and other bonds issued by the Company is equal to 77,681,752 thousand
rubles as of December 31, 2012 (75,054,136 thousand rubles – as of December 31, 2011; 41,583,600
thousand rubles – as of December 31, 2010).
Itemization of securities and other bonds is given below.
Name of security issued Date of issue Fulfilment
period
Organization
the surety bond
has been issued
to
The sum of
security as of
December 31,
2012
Surety for obligations of
Silvelteria Holdings LTD to
Vnesheconombank Group
under option agreement
25.06.2010 25.06.2016 Silvelteria
Holdings LTD 26 646 880
Surety issued for obligations of
INTER RAO Capital CJSC to
JSC ―Mezhregiongaz‖ 27.06.2011 23.06.2015 INTER RAO –
Capital CJSC 17 036 925
Liabilities on payment of base
asset 05.08.2011 31.12.2013 CJSC UniCredit 7 723 891
on forward transactions
concluded with UniCredit Bank
CJSC, the Royal Bank of
Scotland, BNP Paribas and
HSBC Bank Ltd
Bank, the Royal
Bank of Scotland,
BNP Paribas,
HSBC Bank Ltd
TOTAL
51 407 696
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
92
Description of securities and other bonds issued by the Company (continued)
Name of security issued Date of issue Fulfilment
period
Organization
the surety bond
has been issued
to
The sum of
security as of
December 31,
2012
Surety on the loan issued by
Vnesheconombank Group to
INTER RAO Credit B.V. 21.12.2011 30.09.2018 INTER RAO
Credit B.V. 6 780 503
Surety on the loan issued by
EABR (Vnesheconombank) to
JSC ―Stantsiya Ekibastuzskaya
GRES-2‖
23.12.2011 30.09.2018
JSC ―Stantsiya
Ekibastuzskaya
GRES-2‖
4 663 694
Counter-guarantee of VTB
Bank OJSC isssued to BNP
Paribas, Netherlands, which has
issued a direct guarantee to
BARIVEN S.A.
24.03.2011 08.03.2013 BARIVEN
S.A., Venezuela 2 997 856
Surety on the loan issued by
ING Bank N.V. to
INTER RAO Credit B.V. 27.09.2011 23.09.2016
INTER RAO
Credit B.V. 2 264 452
Surety issued on theliability of
INTER RAO Turkey Enerji
Holding A.S. under the Loan
Agreement to ING Bank B.V. 04.12.2012 04.12.2018
INTER RAO
Turkey Enerji
Holding A.S.
2 055 013
Surety on the loan issued by the
European Bank of
Reconstruction and
Development to Electric
Networks of Armenia CJSC
17.06.2009 01.10.2018
Electric
Networks of
Armenia CJSC
1 280 809
Pledge of shares of JSC
―Stantsiya Ekibastuzskaya
GRES-2‖ (7,559,026 of
common shares) for ensuring
obligations of JSC ―Stantsiya
Ekibastuzskaya GRES-2‖ with
respect to EBRD and
Vnesheconombank Group
17.10.2011
until
fulfilment of
obligations
JSC ―Stantsiya
Ekibastuzskaya
GRES-2‖
1 069 413
TOTAL
21 111 740
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
93
Description of securities and other bonds issued by the Company (continued)
Name of security issued Date of issue Fulfilment
period
Organization
the surety
bond has been
issued to
The sum of
security as of
December 31,
2012
Surety on the Guarantee issued
by Nordea Bank Finland Plc. to
RAO Nordic Oy 28.12.2009
until
fulfilment of
obligations
RAO Nordic
Oy 1 005 715
Counter-guarantees of Nordea
Bank, issued to Banco
PICHINCHA C.A. (Ecuador),
which has issued direct
guarantees to HIDROTOAPI EP
25.08.2011 19.05.2015 HIDROTOAP I
EP, Ecuador 880 800
Surety on the loan issued by
Gazprombank to INTER RAO
Credit B.V.
24.09.2012 31.03.2020 INTER RAO
Credit B.V. 821 324
Surety on the loan issued by
EBRD to JSC ―Telasi‖ 02.02.2011 04.11.2020 JSC ―Telasi‖ 764 174
Surety on the loan issued by
Vnesheconombank CJSC to
Electric Networks of Armenia
CJSC
09.03.2010 01.10.2018
Electric
Networks of
Armenia CJSC
689 423
Surety on the loan issued by
Gazprombank to INTER RAO
Credit B.V.
20.06.2012 06.06.2017 INTER RAO
Credit B.V. 483 123
Obligation to pay money (return
investments), reserve letter of
credit issued by VTB Bank OJSC
to GE Energy Holdings Vostok
B.V.
17.08.2012 17.08.2017
GE Energy
Holdings
Vostok B.V.
265 509
Surety issued on the liabilities
of INTER RAO UES Energy
Efficiency Center LLC
to Moscow Credit Bank OJSC 25.08.2011 28.02.2013
INTER RAO
UES Energy
Efficiency
Center LLC
252 248
TOTAL
5 162 316
Description of securities of obligations and payments received by the Company
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
94
The total amount of securities for liabilities and payments received by the Company is equal to
36,952,247 thousand rubles as of December 31, 2012 (16,601,427 thousand rubles – as of December
31, 2011; 17,847,310 thousand rubles – as of December 31, 2010).
Itemization of securities and other bonds is given below.
Name of security received, Guarantor Term of validity
of the guarantee
Organization the
guarantee has been
received for
/Pledger
The sum of
security as of
December 31,
2012
Surety under the General Agreement
dd. 12/05/2012 with System-Invest
OJSC and Ecu Gest Holding S.A. on
discharge of obligations thereunder
06.11.2018
JSC ―System-Invest‖
and Ecu Gest
Holding S.A.
22 500 000
Obligations on paying for a base asset
under forward transactions concluded
with UniCredit Bank CJSC, the Royal
Bank of Scotland, BNP Paribas and
HSBC Bank Ltd
31.12.2013
UniCredit Bank
CJSC, the Royal
Bank of Scotland,
BNP Paribas, HSBC
Bank Ltd
8 450 530
Property received in pledge under the
mortgage agreement. Subjects of
pledge: non-residential buildings owned
by the pledgor on the base of the rights
of ownership; right of use of land plots
under long-term lease agreements.
Location of the property: 27, Bolshaya
Pirogovskaya Str., Moscow
01.07.2014 Elektroluch CJSC 2 093 431
Bank guarantee for advance payment
return, issued by OJSC 11.01.2014 NGO Privod LLC 2 634 099
Name of security received, Guarantor Term of validity
of the guarantee
Organization the
guarantee has been
received for
/Pledger
The sum of
security as of
December 31,
2012
TransCreditBank under the contract
with NGO Privod LLC
Bank guarantee for return of advance
payment, issued by JSC
―Gazprombank‖ under agreement with
JSC ―TYAZHMASH‖
27.02.2015 JSC
―TYAZHMASH‖ 1 220 703
Bank guarantee for advance payment
return, issued by Bank VTB 24 OJSC
under the contract with Service-Sklad
CJSC
01.04.2013 Service-Sklad CJSC 12 041
TOTAL
36 910 804
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
95
Description of securities of obligations and payments received by the Company (continued)
Name of security received, Guarantor Term of validity
of the guarantee
Organization for
which the guarantee
has been received
The sum of
security as of
December 31,
2012
Bank guarantee for proper fulfilment of
obligations of the guarantee period
under the contract with NPO
Energoresurs CJSC
23.05.2013 NPO Energoresurs
CJSC 11 102
Obligations received from individuals –
employees of the Company under
apartments sale-purchase agreements in
the amount equal to the balance of their
debts
until repayment
of debts
individuals –
employees of the
Company
9 960
Bank guarantee for advance payment
return, issued by HSBC Bank LLC
(RR) under the contract with the
Moscow Representative Office of
Deloitte & Touche Regional Consulting
Services Ltd.
10.01.2013
Moscow
Representative Office
of Deloitte & Touche
Regional Consulting
Services Ltd.
9 942
Bank guarantee issued by CB United
Bank of Development LLC under the
contract with Novogradstroy LLC 01.07.2013 Novogradstroy LLC 6 490
Bank guarantee for return of advance
payment, issued by JSC
―Gazprombank‖ under the agreement
with IskraSvyaz LLC
10.02.2013 IskraSvyaz LLC 2 548
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
96
Bank guarantee for advance payment
return, issued by MTS-Bank OJSC
under the contract with Reduction
Cooling Plants CJSC
19.03.2013 Reduction Cooling
Plants CJSC 1 401
TOTAL
41 443
24. CONDITIONAL LIABILITIES AND FACTS OF BUSINESS ACTIVITIES
Factors influencing the financial standing of the Company
Conditions of the Company's activities
Economic reforms and development of the legal, tax and administrative infrastructure continue in
Russia, which infrastructure would meet the requirements of the market economy. Stability of the
Russian economy will to a high degree depend on the course of such reforms, as well as on the
efficiency of the measures taken by the Government in the sphere of economics, financial and fiscal
policy.
Market fluctuations and reduced pace of economic development in the world economy also produce
considerable influence on the Russian economy. World financial crisis resulted in uncertainty as to the
future economic growth, availability of financing, and the cost of equity, which can negatively
influence the financial standing, results of operations, and economic prospects of the Company in
future. At present, it is impossible to forecast such influence. The Company's management believes
that they take all the appropriate measures to support economic stability of the Company in these
conditions.
Taxation
The Russian tax, currency and customs laws suppose different interpretation and are subject to
frequent changes. Interpretation of such laws by the Company's management concerning the
operations and activity of the Company's companies may be challenged by competent regional and
federal authorities. Recent events in the Russian Federation have shown that tax authorities may take a
stricter position in the interpretation of the laws and the audit of tax calculations. As a consequence,
tax authorities may produce claims as to those transactions and methods of accounting to which they
have never produced claims before. As a result, significant taxes, fines and penalties may be charged.
Determination of amounts of claims under possible but not produced claims, as well as estimation of
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
97
the probability of negative outcome, are impossible. Tax audits may cover three calendar years of
activity immediately preceding to the year of audit. In certain conditions, earlier periods may also be
subject to auditing.
In the management's opinion, as at December 31, 2012, corresponding provisions of the laws are
interpreted by them correctly, and the probability of preservation of the Company's state in connection
with the tax, currency and customs laws, is high.
Existing and potential actions against the Company
The Company participates in legal proceedings arising in the course of its financial and business
activity. The provision for possible risks connected with unfavourable outcome of legal proceedings
for the Company has been formed as of December 31, 2012 in the amount of 68,691 thousand rubles
(60,711 thousand rubles – as of 31/12/2011; as of December 31, 2010 it has not been formed due to its
insignificant amount).
Guarantees
As of 31/12/2012 the Company issued sureties to third persons’ creditors, the maturity time of which
has not come yet, for a total sum of 77,681,752 thousand rubles (75,054,136 thousand rubles – as of
31/12/2011; 27,935,851 thousand rubles – as of 31/12/2010). The Company’s management does not
expect occurrence of any considerable liabilities in connection with these sureties.
Obligations under forward deals
Forwards for currency sale
In connection with receiving regular currency proceeds, the Company performs transaction in the
market of derivative financial instruments in order to minimize currency risk on the regular basis.
Transactions with derivative financial instruments are made with the main leading banks within the
framework of the relevant General agreement entered into and incorporate minimum guaranteed
exchange rate, at which the Company undertakes to sell the defined the currency amount, and the Bank
respectively undertakes to buy the specified currency amount on the specified date in the future. All of
the settled transactions with derivative financial instruments for the purpose of reducing the currency
risk constitute deliverable transactions with a deferred term of execution.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
98
As of the reporting date of December 31, 2012 the off-balance-sheet items of the Company reflected
security of Company’s obligations under forward contracts in the amount of 7,723,891 thousand
rubles, calculated on the basis of the exchange rate of the Central Bank of the Russian Federation as of
December 31, 2012, as well as the security of obligations of counteragent banks in the amount of
8,450,530 thousand rubles, calculated at the rate of forward deals. All deals will be executed in 2013.
Net fair value of forward contracts as of December 31, 2012 is equal to 179,086 thousand rubles
(45,761 thousand rubles – as of December 31, 2011). When assessing the fair value, Bloomberg
analytical system data were used.
Interest Swap
In order to minimize potential financial losses, in consequence of the growth of LIBOR6m floating
rate index, the Company entered into a transaction — interest-rate swap to hedge changes in future
interest payments on the loan received. The financial result of the Transaction is reflected by the
Company in the structure of interests received/paid. Fulfilment of obligations under the transaction
occurs once in half a year until the end of the interest rate swap -November 12, 2013.
Under the terms of Transaction the Company effects payments to the Bank-counteragent based on a
fixed rate and receives payments based on LIBOR6m floating rate index calculated similarly to the
interests on the loan received on the basis of the LIBOR6m floating rate index. This hedging
transaction allows, in terms of established share of hedging, insurance against the fall of cash flows of
the Company in consequence of the growth of LIBOR6m floating rate index.
When assessing the efficiency, the Company uses retrospective and perspective hedge efficiency
analyses. Based on the results of perspective and retrospective analyses, as of December 31, 2012,
hedging of interest rate risks with the use of the said interest rate swap transaction has been found
efficient.
Net negative fair value (loss) of interest swap as of December 31, 2012 is equal to 68,649 thousand
rubles (121,288 thousand rubles – as of December 31, 2011). When assessing the fair value,
Bloomberg analytical system data were used.
Futures Contracts at the Energy Exchange
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
99
Futures used for Hedging Purposes
The Company uses futures as a price risk hedging instrument at the DAM (Day-Ahead Market).
Unfavourable changes in electricity prices at the DAM may reduce the profit margin relative to a
margin profit indicator, approved in the Company's business plan. The purpose of entering into
hedging futures is the reduction in price risk at the DAM and the achievement of profit margin
indicator, approved in the Company's business plan.
As of December 31, 2012, the Company reflects on the off-balance-sheeet items open long futures
positions on futures in order to hedge the risk of increase in the electricity prices at the Day-Ahead
Market at market valuation of 61,847 thousand rubles.
For the purposes of assessing the hedging efficiency with the use of these instruments, the Company
uses the retrospective and prospective analyzes using a hypothetical derivative method. According to
the said method it is defined how the actual change in the fair value of net cash flows of hypothetical
derivative is compensated with the actual change in the fair value of net cash flows of hedging
instruments.
Based on the retrospective and prospective hedging efficiency analysis as of December 31, 2012, the
hedging of obligations on purchase of electricity in a free sector of Wholesale Electricity and Power
Market (WEPM) for ensuring the electricity supplies for export at the price prevailing in the market for
each hour (date) during the period of supply with the help of transactions with futures contracts on the
average price index can be considered efficient, since at the time of decision on hedging, a prospective
analysis of its efficiency has been positive.
Other futures
As of December 31, 2012, the market valuation of forward transactions open positions is reflected on
the off-balance accounts of the Company, and namely:
• Transactions aimed at speculation for a purchase of futures contracts in the quantity of 316 at
market valuation of 56,001 thousand rubles with the purpose of its further resale (execution) at the
market price.
• Transactions aimed at speculation for a sale of futures contracts in the quantity of 528 at market
valuation of 23,462 thousand rubles with the purpose of its further purchase (execution) at the
market price.
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
100
Term of execution of the above said contracts is 2013.
25. EVENTS AFTER THE REPORTING DATE
The shares of INTER RAO UES of additional issues, the shares of minority shareholders of JSC
―OGK-1‖, JSC ―OGK-3‖, JSC ―INTER RAO – Energy‖, and JSC ―INTER RAO – EnrgoAktiv‖ have
been converted into, have been consolidated with the shares of primary issue of JSC ―INTER RAO
UES‖ (state registration number 1-03-33498-E dd. October 29, 2009) pursuant to the decision of the
Federal Financial Markets Service. Individual numbers (codes) of these issues have been cancelled.
26. TERMINATED ACTIVITY
In 2011 the Company founded a 100 % subsidiary INTER RAO – Electric Power Plants OJSC for the
purpose of transferring the latter the activity on production of electricity and heat energy, within the
frames of changeover of JSC ―INTER RAO UES‖ for holding structure of management.
In the period of report within the frames of activity termination the Company sold the items of fixed
assets, inseparable improvements and unfinished capital investments into fixed assets, intangible
assets, inventories at their market value. Market value has been determined by the parties based on the
data provided by independent appraiser.
As a result of selling the items of fixed assets the Company has received profit of 501,360 thousand
rubles, which is reflected in other profits and expenses in the Statement of Financial Results for 2012.
The sum of profit tax from sale amounted to 382,473 thousand rubles. The debt of INTER RAO –
Electric Power Plants OJSC to the Company for purchased property amounted to 28,014,193 thousand
rubles as of 31/12/2012.
As of 31/12/2012 the balance-sheet of the Company included items of fixed assets, which are to be
sold in 2013. Book value of these items makes 2,832,061 thousand rubles.
In the period of report the Company transferred the subsidiary INTER RAO - Electric Power Plants
OJSC receivables and payables under the agreements concluded within the framework of carrying out
production activity. Such agreements particularly include agreements on the sale of electricity and heat
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
101
energy, agreements on purchase of fuel, parts, works and services required for repair and upgrade of
the items of fixed assets, etc. The debt of INTER RAO – Electric Power Plants OJSC for assigned
liabilities under the said agreements as of 31/12/2012 amounts to 1,636,438 thousand rubles.
Statement of Financial Results for the year 2012
with regard to information about terminated activity
Name of the indicator Code Continued activity Terminated
activity
Organization in
general
Proceeds from realization
(excluding VAT) 2110 37 865 687 4 826 491 42 692 178
Cost of sales 2120 (30 166 466) (5 008 613) (35 175 079)
Gross profit 2100 7 699 221 (182 122) 7 517 099
Commercial costs 2210 (4 153 181) (4 153 181)
Administrative costs 2220 (4 510 163) (4 510 163)
Profit (loss) from sales 2200 (964 123) (182 122) (1 146 245)
Revenues from participation
in other organizations 2310 2 573 215 2 573 215
Interest receivable 2320 1 723 504 1 723 504
Interest payable 2330 (1 919 141) - (1 919 141)
Other profits 2340 94 528 373 27 001 265 121 529 638
including
realization of fixed assets 2 012 25 622 473 25 624 485
Sale of income-bearing
investments in tangible
assets 41 803 41 803
Sale of unfinished capital
expenditures 220 555 220 555
Sale of inventories - 998 267 998 267
Sale of intangible assets and
R&D 5 903 5 903
Provision for reduction in
the value of inventories 112 264 112 264
Other expenses 2350 (106 232 352) (26 317 783) (132 550 135)
including
realization of fixed assets (1 767) (25 077 184) (25 078 951)
Sale of income-bearing
investments in tangible
assets (41 798) (41 798)
Sale of inventories - (974 324) (974 324)
Sale of unfinished capital
investments into fixed assets (218 574) (218 574)
Sale of intangible assets and
R&D (5 903) (5 903)
Profit (loss) before tax 2300 (10 290 524) 501 360 (9 789 164)
Profit tax 2410 (277 747) (382 473) (660 220)
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
102
including PTl (PTA): 2421 7 068 438 127 896 7 196 334
Change in deferred tax
liabilities 2430 (6 055) 177 835 171 780
Change in deferred tax
assets 2450 (4 211 888) (23 530) (4 235 418)
Other 2460 156 268 (3 886) 152 381
including - (4 945) -
Net profit (loss) 2400 (14 629 946) 269 305 (14 360 641)
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
103
Statement of Financial Results for the year 2011
with regard to information about terminated activity
Name of the indicator Code Continued activity Terminated
activity
Organization in
general
Proceeds from realization
(excluding VAT) 2110 54 574 708 18 813 248 73 387 956
Cost of sales 2120 (43 297 171) (17 457 981) (60 755 152)
Gross profit 2100 11 277 537 1 355 267 12 632 804
Commercial costs 2210 (6 646 199) (6 646 199)
Administrative costs 2220 (3 899 084) (3 899 084)
Profit (loss) from sales 2200 721 576 1 365 945 2 087 521
Revenues from participation
in other organizations 2310 1 355 352 1 355 352
Interest receivable 2320 1 262 734 1 262 734
Interest payable 2330 (1 739 263) - (1 739 263)
Other profits 2340 61 285 288 4 042 659 65 327 947
including
Sale of fixed assets 4 887 3 782 330 3 787 217
Sale of inseparable
improvements 260 329 260 329
Sale of inventories - - -
Other expenses 2350 (215 224 164) (3 473 980) (218 698 144)
including
Sale of fixed assets (2 748) (3 101 420) (3 104 168)
Sale of inseparable
improvements (260 296) (260 296)
Sale of inventories - - -
Provision for reduction in
the value of inventories (112 264) (112 264)
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
104
Name of the indicator Code Continued activity Terminated
activity
Organization in
general
Profit (loss) before tax
2300 (152 338 477) 1 934 624 (150 403 853)
Profit tax 2410 (244 744) (381 781) (626 525)
including PTl (PTA): 2421 23 361 977 195 680 23 557 657
Change in deferred tax
liabilities
2430 3 642 (195 603) (191 961)
Change in deferred tax
assets
2450 7 617 891 (5 221) 7 612 670
Other 2460 (75 616) 557 318 481 702
including
Write-off of DTL/DTA on
disposed fixed assets
557 318 557 318
Net profit (loss) 2400 (145 037 304) 1 909 337 (143 127 967)
Statement of Cash Flow for the year 2012
on the terminated activity
Name of the indicator Code For 2012
Cash flows from current transactions
Proceeds - total 4110 6 357 325
including
from sales of products, goods, works and services 4111 5 082 847
lease payments, license fees, royalties, commissions
and other similar payments 4112 283 536
other proceeds 4119 990 942
Payments - total 4120 (4 690 210)
including
to suppliers (contractors) for raw materials, works and
services 4121 (4 570 975)
due to payment of employees’ remuneration 4122 (119 235)-
other payments 4129 -
Cash flows from investment transactions
Proceeds - total 4210 2 106 220
including
from sales of current assets (other than financial
investments) 4211 2 106 220
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
105
Payments - total 4220 (303 325)
including
due to acquisition, creation, modernization,
reconstruction and preparation for use of non-current
assets 4221 (303 325)
Statement of Cash Flow for the year 2011
on the terminated activity
Name of the indicator Code For 2011
Cash flows from current transactions
Proceeds - total 4110 19 576 303
including
from sales of products, goods, works and services 4111 18 407 950
lease payments, license fees, royalties, commissions
and other similar payments 4112 40 443
other proceeds 4119 1 127 910
Payments - total 4120 (14 904 417)
including
to suppliers (contractors) for raw materials, works and
services 4121 (12 704 206)
due to payment of employees’ remuneration 4122 (1 131 851)
other payments 4129 (1 068 360)
Cash flows from investment transactions
Proceeds - total 4210 3 782 329
including
from sales of current assets (other than financial
investments) 4211 3 782 329
Payments - total 4220 (2 314 613)
including
due to acquisition, creation, modernization,
reconstruction and preparation for use of non-current
assets 4221 (2 314 613)
Terminated activity does not significantly affect the cash flow from financial transactions of the
Company.
27. REORGANIZATION
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
106
On April 26, 2012 the Company’s shareholders made a decision at the special General Meeting of
Shareholders on the Company’s reorganization by consolidation with JSC ―OGK-1‖, JSC ―OGK-3‖,
JSC ―INTER RAO – Energy‖, JSC ―INTER RAO – EnergoAktiv‖, JSC ―BashEnergoAktiv‖.
Purpose and procedure of reorganization
Within the frames of forming a target corporate structure of INTER RAO UES Group, which provides
for transition to 100 % possession of the main generating assets, in March 2012 the Board of Directors
of the Company decided to implement the following activities:
1. To separate two companies from JSC ―OGK-1‖ and JSC ―OGK-3‖ – JSC ―First Generation‖ and
JSC ―Third Generation‖ respectively, and to transfer them the assets and liabilities of primary
companies. At the same time, to connect separated companies to INTER RAO - Electric Power
Plants OJSC (which currently includes Kaliningradskaya TEC-2, North-West Thermal Power
Plant, Sochinskaya TEC and Ivanovskie PGU). Alongside with that, to connect JSC ―OGK-1‖ and
JSC ―OGK-3‖ to JSC ―INTER RAO UES‖.
2. To connect the following associated companies to JSC ―INTER RAO Energy‖ and JSC ―INTER
RAO EnergoAktiv‖ to JSC ―INTER RAO UES‖ for consolidating at the Company’s balance-sheet
the packages of shares of JSC ―TGK-6‖ and JSC ―TGK-11‖.
3. To separate two companies from JSC ―Bashkirenergo‖ by means of non-proportional division:
Bashkiria Electric Grid Company OJSC, to which all electric grid assets shall be transferred, and
JSC ―Bashenergoaktiv‖ (with simultaneous connection to JSC ―INTER RAO UES‖), to which the
whole generating business shall be transferred in the form of participatory shares in Bashkiria
Generating Company LLC, Bashkiria Heat Distribution Systems LLC, and CCP TPP-5 LLC.
The shares of connected companies have been converted into Company’s shares. Share conversion
factors have been determined on the basis of reports of the independent appraiser – Institute of
Independent Appraisal LLC. Conclusion on the fairness of conversion factors has been submitted by
investment banks Morgan Stanley and Troika Dialogue. 0.0416666666666667 of ordinary share og
JSC ―OGK-1‖, 0.025 of ordinary share of JSC ―OGK-3‖, 0.00218293620292083 of preferred share of
Bashenergoaktiv OJSC, and 0.0016588785046729 of ordinary share of Bashenergoaktiv OJSC was
converted into one ordinary share of JSC ―INTER RAO UES‖. The scope of additional issue for the
purpose of conversion made 724,000,997,683 shares with a par value of 0.02809767, for a total sum of
20,342,741 thsd. rubles.
Influence of reorganization on Company’s reports
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
107
Consolidation of the Company with JSC ―OGK-1‖, JSC ―OGK-3‖, JSC ―INTER RAO – Energy‖, JSC
―INTER RAO – EnergoAktiv‖ took place on October 01, 2012.
In the result of consolidation Company’s assets as of 01/10/2012 increased by 85,165,472 thousand
rubles, including repayment of financial investments of the Company in the shares of JSC ―OGK-1‖ in
the amount of 34,055,703 thousand rubles, and in the shares of JSC ―OGK-3‖ in the amount of
32,778,733 thousand rubles. Liabilities of the Company grew by 2,897,331 thousand rubles.
Authorized capital of the Company in the result of additional issue of shares increased by 18,683,725
thousand rubles, and made 291,680,687 thousand rubles as of October 01, 2012. As the difference
between the authorized capital of the Company recorded in the contract of consolidation, and algebraic
sum of authorized capitals of reorganized entities calculated as of 01/10/2012 was negative, the effect
from consolidation was attributed to retained income of the Company. Cumulative effect from
consolidation on the retained income of the Company as of 01/10/2012 made 63,584,415 thousand
rubles, and represents the difference between conneccted net assets and the amount of increase in the
authorized capital of the Company.
JSC ―Bashenergoaktiv‖ was connected to the Company on November 06, 2012. In the result of
consolidation, Company’s assets as of 06/11/2012 grew by 2,324,182 thousand rubles, including
repayment of financial investments of the Company in the shares of JSC ―Bashkirenergo‖ in the
amount of 27,337,033 thousand rubles. Company’s liabilities grew by 339,821 thousand rubles.
Authorized capital of the Company in the result of additional issue of shares increased by 1,659,016
thousand rubles, and made 293,339,703 thousand rubles as of November 06, 2012. As the difference
between the authorized capital of the Company recorded in the contract of consolidation, and the
authorized capital of reorganized entity is positive, the effect from consolidation was reflected in the
item ―Additional Capital‖. Additional capital of the Company increased by 325,345 thousand rubles as
of 06/11/2012 in the result of the difference between connected net assets and the increase in the
authorized capital of the Company.
Company’s expenses on reorganization amounted to 116,532 thousand rubles as of 31/12/2012. These
expenses mainly consist of the sums paid to consultants for financial and legal services of transaction
support, audit firms for verification of information specified in the prospects of securities issue, and fee
to the register holder for the operations on registering transactions with Company’s shares.
Disclosure of the scope and sums of received assets and liabilities has been described in the respective
sections they are attributed to herein.
Received to the Company’s balance in the result of
reorganization 01.10.2012 06.11.2012
ASSET
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
108
I. CAPITAL ASSETS 150 387 601 27 389 399
including
Fixed assets - 55 105
Financial Investments 150 351 908 21 038 489
Income-bearing investments in tangible assets - 69 385
Deferred tax assets 35 693 5 582
Other capital assets - 6 220 838
including
Long-term receivables - 6 220 838
II. CURRENT ASSETS 1 612 306 2 271 816
including
Inventories - 434
Receivables 1 611 515 1 050 186
Financial Investments - 901 893
Cash funds and
cash equivalents 789 313 717
Other current assets 2 5 586
LIABILITY
V. SHORT-TERM LIABILITIES 2 897 331 339 821
including
Borrowed funds 2 309 586 -
Payables 587 745 302 784
Estimated liabilities - 37 037
EXPLANATIONS
to the accounting (financial) statements of
JSC “INTER RAO UES” for the year 2012
109
26. RISKS OF BUSINESS ACTIVITY
Information about the risks of business activity is published by the Company in the issuer’s quarterly
report posted on the website, in the section ―For shareholders and investors‖
http://www.interrao.ru/investors/disclosure/quarterly/.
February 21, 2013
Chairman of the Management
Board
B.Yu. Kovalchuk
Chief accountant A.O. Chesnokova
Total number of sheets stitched, numbered and sealed - 117