APPROVED
Meeting of the Board of Directors of the open joint stock company Kontsern “Kalina”
Minutes No.14 dated 29.04.2002

Chief Executive Officer of JSC Kontsern “Kalina” Timur R. Goryayev ____________
 (signature)

seal
QUARTERLY REPORT
PROVIDED BY THE ISSUER OF ISSUED SECURITIES
Reporting period: I quarter of 2002

Open joint stock company Kontsern “Kalina”
Issuer’s code:  30306-D
Location:  80 Komsomolskaya Street, Ekaterinburg 
Postal address:  80 Komsomolskaya Street, Ekaterinburg 620138
Information presented in this quarterly report should be disclosed in compliance with legislation of the Russian Federation concerning securities. 
Chief Executive Officer Timur R. Goryayev _________________
(signature)
Chief Accountant Tatyana G. Babina _________________
(signature)
29.04.2002
(seal)

Contact: Dmitry Alexandrovich Argunov 
Deputy Head of Corporate Finance Department
Tel.:  +7-3432-620986  Fax: +7-3432-622232
Email: argmail@kalina.org

А. Issuer’s details
9. Full company name of the issuer.
Открытое акционерное общество Концерн "Калина" 
Open Joint Stock Company  Kontsern "Kalina"
10. Abbreviated name.
ОАО Концерн  " КАЛИНА"
JSC "Kalina"
11. Information on changes in name, organizational and legal status of issuer.
Акционерное общество открытого типа "Уральские самоцветы"
Open-type joint stock company “Uralskiye Samotsvety”
АООТ "Уральские самоцветы"
OTJSC “Uralskiye Samotsvety”
Effective from: 16.11.1992

Открытое акционерное общество "Уральские самоцветы"
Open joint stock company “Uralskiye Samotsvety”
ОАО "Уральские самоцветы"
JSC “Uralskiye Samotsvety”
Effective from: 8.06.1996

Открытое акционерное общество Концерн "КАЛИНА"
Open Joint Stock Company Kontsern “KALINA”
ОАО Концерн "КАЛИНА"
JSC “KALINA”
Effective from: 30.11.1999

Current name is effective from: 30.11.1999
12. Information on state registration of issuer and availability of licenses. 
Date of state registration of issuer: 27.11.1992
State registration certificate No. (or any other document confirming state registration of issuer): 00550-2 series 1-ЕИ
State registration authority:  State registration office of Ekaterinburg  

Licenses:
No.: ГОС-66-071589
Date of issue: 21.03.2001
Date of expiry: 4.04.2004
Authority that issued the license: Sverdlovsk regional department of the Russian Transport Inspection   
Type of activity: industrial transportation of cargo within Russia  

No.: АСС-66-071590
Date of issue: 21.03.2001
Date of expiry: 4.04.2001
Authority that issued the license: Sverdlovsk regional department of the Russian Transport Inspection 
Type of activity: passenger bus conveyance within Russia as per contracts and orders 

No.: ГСС-66-071588
Date of issue: 21.03.2001
Date of expiry: 4.04.2004
Authority that issued the license: Sverdlovsk regional department of the Russian Transport Inspection 
Type of activity: commercial transportation of cargo within Russia 
13. Taxpayer identification number.
6608000083
14. Issuer’s industry identification.
Codes according to the All-Russian Classifier of National Economy Branches (ОКОНХ):
18131,  19310, 71200, 95120,   80300,
72200,   84500, 71100, 71500, 80400,
71300.
15. Location, postal address of the issuer and contact telephone numbers. 
Location: 80 Komsomolskaya Street, Ekaterinburg
Postal address: 80 Komsomolskaya Street, Ekaterinburg 620138 
Tel.:  /+7-3432/ 62-22-36, /+7-3432/ 62-06-81, /+7-3432/ 62-09-86  Fax:  /+7-3432/ 62-22-32
E-mail address: fin@kalina.org

16. Information about issuer’s auditor.
Name: Closed joint stock company “Auditorsky Tsentr “Ural-audit” 
Location: Malysheva Street 101, #547, Ekaterinburg. 
Taxpayer Identification Number: 6661011186
Postal address: Malysheva Street 101, #547, Ekaterinburg 620095
Tel.: (+7-3432) 59-83-59  Fax: (+7-3432) 59-83-59
E-mail: N/A

Information about auditor’s license:
License number: 000721
Date of issue: 22.07.1999
Date of expiry: 22.07.2002
Authority that issued the license: Ministry of Finance of the Russian Federation 

17. Information about organizations that keep records of the rights to issuer’s securities.
Registrar: 
Name: Оpen joint stock company “Tsentralny Moskovsky Depositary"
Location: Orlikov pereulok 3/B, Moscow 107078, Russian Federation 
Postal address: 180 Sony Morozovoy Street, Ekaterinburg 620026, Russian Federation 
Tel.: (+7-3432) 24-97-98, 24-05-09, 24-20-68  Fax: (+7-3432) 24-20-68
E-mail: mcd@mail.utk.ru 

License:
License No.: 01019
Date of issue: 19.03.1996
Date of expiry: 23.09.2002
Authority that issued the license: Federal Securities Market Commission of the Russian Federation 

The date, starting from which the register of issuer’s registered securities has been kept by the registrar:  11.09.2001

Depositary in charge of centralized custody of issuer’s securities:
Name: Noncommercial partnership “Natsionalny Depozitarny Tsentr "
Location: 12 Zhitnaya Street, Moscow 117049
Postal address: Sredny Kislovsky pereulok 1/13, Moscow 103009 
Tel.: 7-(095) 956-2789; 7-(095) 956-2790; 7-(095) 956-2791       Fax: 7-(095) 956-2792 
E-mail: N/A

License:
License No.: 177-03431-000100
Date of issue: 4.12.2000
Date of expiry: N/A
Authority that issued the license: Federal Securities Market Commission of the Russian Federation 

Activity commencement date: 12.02.2002
18. Issuer’s depositary.
The issuer has no depositary.
19. Issuer’s participants.
Total number of shareholders (participants): 422

Shareholders (participants) that own at least 5% of issuer’s charter capital:

19.1 Timur Rafkatovich Goryayev 
Share in the charter capital of the issuer:  61.24 %

19.2 Name: European Bank for Reconstruction and Development 
Location: One Exchange Square, London, EC2A 2JN, UK
Postal address: 44 Kuybisheva Street, Ekaterinburg 620026, Russia
Share in the charter capital of the issuer: 17.84 %
Shareholders (participants) that own at least 25% of charter capital of the issuer’s shareholder (participant):
none
20. Structure of issuer’s control authorities.
Control authorities of the Issuer are:  general shareholders’ meeting and the Board of Directors of the joint stock company.  General shareholders’ meeting is the supreme control authority of the Issuer, and is held at least once a year.  The Board of Directors of the joint stock company is a standing control authority.  Its activity takes the form of meetings that are generally held at least once a month.  The Board of Directors of the Issuer is accountable to the general shareholders’ meeting and is the supreme control authority of the joint stock company during time intervals between the meetings.  The Chief Executive Officer of the joint stock company is the sole executive body of the company.  The CEO is elected by the General shareholders’ meeting for a period of 3 years.  The CEO acts by virtue of the contract concluded between the CEO and the Company.  The Chairman of the Board of Directors signs the a.m. contract on behalf of the Company.  The contract concluded with the CEO determines his rights and duties, terms and conditions under which the CEO should perform his functions associated with issues that fall under his competence according to the Charter, and liability of the CEO.  In its activity the executive body follows effective laws, resolutions adopted at general meetings and by the Board of Directors of the joint stock company, as well as appropriate Regulations approved by the Board of Directors.  Financial and economic activities of the Company are controlled by the Audit committee of 3(three) members elected by the General shareholders’ meeting of the Company.  The Company following the resolution of the General shareholders’ meeting approves an auditor or an auditing organization, which examines financial and economic activities of the Company in the order stipulated by the laws of the Russian Federation currently in force.  Auditing of financial and economic activities of the Company is performed by the auditor or the auditing organization on the basis of the contract between the Company and the auditor (auditing organization).
Competence of the general meeting of issuer’s shareholders (participants) in compliance with its Charter (constituent documents):
General shareholders’ meeting is the supreme control authority.  The following issues fall under the competence of the general meeting:
1) making amendments and annexes to the Charter of the Company, approval of new revisions of the Charter of the Company;
2)	reorganization of the Company;
3)  liquidation of the Company, appointment of a liquidation commission and approval of interim and final liquidation balance-sheets;
4)  identifying headcount of the Board of Directors of the Company, election of its members and early termination of their authorities;
5)  election of audit committee members of the Company and early termination of their authorities;
6)  approval of the auditor of the Company;
7)  approval of annual reports, balance-sheets, profit-and-loss accounts of the Company, allocation of its profits and losses;
8) identifying overall scale of announced shares;
9) reduction of charter capital of the Company by reducing share denomination, a certain amount of shares being purchased by the Company in order to reduce overall quantity of shares or pay off shares that have not been paid up in compliance with Article 29 of the federal law “About Joint Stock Companies”, or by paying off shares that have been bought or redeemed by the Company in compliance with the federal law “About Joint Stock Companies”:   Article 72, clause 3 and Article 76, second  paragraph in clause 6;
10)	procedures of chairing the general shareholders’ meeting;
11)	appointment of the counting board;
12)  identifying the format in which the Company will communicate materials (information) to its shareholders, identifying  press media, if the message will be communicated as a publication;
13)  split-up and consolidation of shares;
14)  conclusion of transactions associated with personal interest (federal law “About Joint Stock Companies”, Article 81), when the issue falls under the competence of the General shareholders’ meeting as stipulated by laws of the Russian Federation currently in force;
15)  making large-scale transactions associated with property being purchased or alienated by the Company as stipulated by laws of the Russian Federation currently in force;
16)  purchase and redemption of shares, which have been placed,  by the Company as stipulated by laws of the Russian Federation currently in force;
17)  appointment of the sole executive body of the Company, early termination of his authorities, approval of terms and conditions of any contracts and decisions dealing with employment, dismissal and compensation paid to the CEO of the Company;    
18)  other issues that fall under the competence of the General shareholders’ meeting as stipulated by laws of the Russian Federation currently in force.
 
Competence of the Board of Directors (supervisory board) of the issuer in compliance with its charter (constituent documents):
The Board of Directors of the Company performs general management of Company’s activities and takes decisions on all issues, save issues that exclusively fall under the competence of the General shareholders’ meeting.  The following issues exclusively fall under the competence of the Company’s Board of Directors:
1)  identifying priority lines of activity of the Company;
2)  calling annual and special general meetings of the Company’s shareholders;
3)  agenda approval for the general shareholders’ meeting;
4)  organizing preparation for the meeting and the process of holding the general shareholders’ meeting, control over preparation and the process of holding the general meeting, identifying the date, by which the list of shareholders, who have the right to attend the general meeting, should be drawn;
5)  raising issues covered by the Charter, paragraph 13.1. subparagraphs 2 and 11-15, to be considered by the general shareholders’ meeting;
6)  placement of Company’s bonds and other securities by the Company; 
7)  identifying market value of property of the Company, including property handed over to the Company as a payment for Company’s shares;
8)  purchase of shares, bonds and other securities placed by the company;
9) advice on the amount of remuneration and compensation paid to the members of the audit committee, and identifying pay rates for auditor’s services;
10)   advice on the share dividend rate and procedure of dividend payment;
11)  use of surplus and other funds of the company;
12)  approval of in-house documents of the company, which determine operational  procedures for control authorities of the company;
13)  establishing branch establishments and representative offices;
14)  taking decisions on participation of the company in other organizations, establishing subsidiaries of the company;
15)  making large-scale transactions associated with property being purchased or alienated by the Company as stipulated by laws of the Russian Federation currently in force;
16)  conclusion of transactions associated with personal interest (federal law “About Joint Stock Companies”, Article 81), when such transactions do not fall under the competence of the General shareholders’ meeting of the Company as stipulated by laws of the Russian Federation currently in force;
17) approval of annual budget and investment plan of the Company;
18)  approval of any investments that exceed USD 1 000 000.00 (one million) and fall outside the limits of the approved annual investment plan;

19)  conclusion of transactions associated with leasing or renting fixed assets or production capacities, if the value of these assets exceeds USD 1000000.00 (one million) and/or the a.m. transactions fall outside the limits of the approved annual investment plan, or if lease payments or future revenues resulting from such lease exceed USD 1 000 000.00 (one million);
20)  conclusion of transactions associated with sales of any fixed and intangible assets of the Company, if the amount of such transaction exceeds USD 1 000 000.00 (one million);
21)  conclusion of transactions associated with pledge or any other charge on assets of the company, if the amount of such transaction exceeds the value indicated in the annual budget;
22) conclusion of transactions associated with purchase of shares, bonds, promissory notes and other securities issued by third parties, save financial instruments used by the company to pay off its ordinary financial  obligations;
23)  conclusion of contracts of debt and credit agreements, if they fall outside the limits of borrowing fixed in the annual budget of the company;
24)  alterations in  accounting policy and procedures of business accounting;
25)  selection of organization keeping the register of the company;
26)  selection of organization auditing the company;
27)  increase of charter capital of the company by increasing share denomination or by placing additional shares, if not stipulated otherwise by the laws of the Russian Federation currently in force;
28)  approval of resolutions to issue securities of the company, approval of  issue prospectuses for company’s securities, reports on results of issue of company’s securities, which should be presented to the Federal Securities Market Commission of the Russian Federation (its local department) or any other government authority, as stipulated by the laws of the Russian Federation currently in force, to perform state registration of issues of company’s securities and/or report on results of issue of Company’s securities;
29)  any other issues stipulated by effective laws. 

Competence of the sole and collective executive bodies of the issuer in compliance with its charter (constituent documents):
Chief Executive Officer is the sole executive body of the Company.  The CEO manages day-to-day operations of the Company, thus he:
1)	effectively manages day-to-day operations of the Company;
2)	acts on behalf of the Company without any  power of attorney, represents the Company in all institutions, companies and organizations within the Russian Federation and abroad;
3)	makes transactions and takes other legal actions on behalf of the Company;
4)	issues proxies, opens settlement accounts and other accounts of the Company in banks;
5)	appoints staff, employs and dismisses employees of the Company;
6)	issues orders and regulations that must be observed by all employees of the Company;
7)	prepares information, materials and proposes issues to be considered by the Board of Directors and General shareholders’ meeting of the Company, and ensures execution of resolutions adopted.
21. Members of the Board of Directors (supervisory board) of the issuer.
The Board of Directors
Chairman:  Alexander Yurievich Petrov 

Members of the Board of Directors:
Timur Rafkatovich Goryayev
Year of birth: 1967

Positions held during the last 5 years:
Period: 1996 - present
Organization:  JSC Kontsern “KALINA” 
Field of activity: production and sales of perfumery and cosmetics, soap and detergents  
Position: Chief Executive Officer 

Share in the charter capital of the issuer: 61.24%
Shares in subsidiaries/ associates of the issuer:
none 

Remuneration paid for the reporting quarter: 
This information is confidential

Alexander Yurievich Petrov
Year of birth:  1973

Positions held during the last 5 years:
Period: 1996 - 1997
Organization:  The Ural Bank for Reconstruction and Development 
Field of activity: banking
Position: Head of Complex Customer Service 

Period: 1997 - present
Organization: JSC Kontsern “KALINA” 
Field of activity: production and sales of perfumery and cosmetics, soap and detergents 
Position:  Chief Financial Officer

Share in the charter capital of the issuer: 0.43%
Shares in subsidiaries/ associates of the issuer:
none

Remuneration paid for the reporting quarter: 
This information is confidential

Elena Dmitrievna Petrichenko
Year of birth: 1949

Positions held during the last 5 years:
Period: 1996 - present
Organization: JSC Kontsern “KALINA” 
Field of activity: production and sales of perfumery and cosmetics, soap and detergents 
Position:  Director of Production

Share in the charter capital of the issuer: 0.63%
Shares in subsidiaries/ associates of the issuer:
none

Remuneration paid for the reporting quarter: 
This information is confidential

Valery Vadimovich Chuvatin
Year of birth: 1967

Positions held during the last 5 years:
Period: 1996 - 1997
Organization: open joint stock company trading depot “Ural”
Field of activity: trade and purchases 
Position: Manager

Period: 1997 – present
Organization: JSC Kontsern “KALINA” 
Field of activity: production and sales of perfumery and cosmetics, soap and detergents 
Position:  Trade Policy Director

Share in the charter capital of the issuer: 0.39%
Shares in subsidiaries/ associates of the issuer:
none

Remuneration paid for the reporting quarter: 
This information is confidential

John Thomas Smith Word 
Year of birth: 1945

Positions held during the last 5 years:
Period: 1996 - 1998
Organization: entrepreneur
Field of activity: finance
Position:  independent financial adviser 

Period: 1999 - present
Organization: GIMV Corpeq Urals Fund BV
Field of activity: finance
Position: Managing Director

Share in the charter capital of the issuer: none
Shares in subsidiaries/ associates of the issuer:
none

Remuneration paid for the reporting quarter: 
This information is confidential

Johan Gritsen Hans Vreeman
Year of birth: 1945

Positions held during the last 5 years:
Period: 1996 - present
Organization: Rabo Black Earth
Field of activity: finance
Position: Senior Manager

Share in the charter capital of the issuer: none
Shares in subsidiaries/ associates of the issuer:
none

Remuneration paid for the reporting quarter: 
This information is confidential

Nikolay Arkadievich Geller
Year of birth: 1966

Positions held during the last 5 years:
Period: 1996 - 1997
Organization: Municipal center of medico-psychological assistance and social aid to population of Ekaterinburg
Field of activity: medicine
Position: psychotherapist

Period: 1997 – present
Organization: JSC Kontsern “KALINA” 
Field of activity: production and sales of perfumery and cosmetics, soap and detergents 
Position:  R&D Director

Share in the charter capital of the issuer: 0.39%
Shares in subsidiaries/ associates of the issuer:
none

Remuneration paid for the reporting quarter: 
This information is confidential

22. Sole and collective control authorities of the issuer and executive officers of the managing issuer.  
Sole executive body and members of collective executive body of the issuer:
Timur Rafkatovich Goryayev
Year of birth: 1967

Positions held during the last 5 years:
Period: 1996 - present
Organization:  JSC Kontsern “KALINA” 
Field of activity: production and sales of perfumery and cosmetics, soap and detergents  
Position: Chief Executive Officer 

Share in the charter capital of the issuer: 61.24%
Shares in subsidiaries/ associates of the issuer:
none 

Remuneration paid for the reporting quarter: 
This information is confidential

The person performing functions of the sole executive body of the issuer: Timur Rafkatovich Goryayev 
23. Remuneration paid to the members of the Board of Directors (supervisory board) and other executive officers of the issuer.
Total amount of remuneration paid to all persons listed in paragraphs 21 and 22 during the reporting period:
Salary (RUR): 2 406 766.29
Premiums (RUR): 0
Commission (RUR): 0
Other property granted (RUR): 0
Total (RUR): 2 406 766.29

Please, see also paragraphs 21 and 22
24. Information about legal entities, to which the issuer is a party.

Legal entities having at least 5% of their charter capital owned by the issuer:

Name: Subsidiary “Pallada Vostok”
Location: 6 Primkulova Street, Almalyk, 702400, Tashkentskaya oblast, Republic of Uzbekistan
Postal address: 6 Primkulova Street, Almalyk, 702400, Tashkentskaya oblast, Republic of Uzbekistan
Issuer’s share in the charter capital of the legal entity: 100 %

Name: Subsidiary “Pallada Ukraina”
Location: 18a M. Vovchok Street, Kiev, 254073, Ukraine
Postal address: 18a M. Vovchok Street, Kiev, 254073, Ukraine 
Issuer’s share in the charter capital of the legal entity: 100 %
Name: Open joint stock company “Nikolaevsky perfumery-cosmetic integrated plant “Aliye Parusa”
Location: 106 Malaya Morskaya Street, Nikolaev, 54002, Ukraine
Postal address: 106 Malaya Morskaya Street, Nikolaev, 54002, Ukraine
Issuer’s share in the charter capital of the legal entity: 84.045 %

Name: Open joint stock company “Fat processing integrated plant ”
Location: 27 Titova Street, Ekaterinburg, 620085 
Postal address: 27 Titova Street, Ekaterinburg, 620085
Issuer’s share in the charter capital of the legal entity: 19.19 %
25. Contribution of all legal entities, with over 5% of  their charter capital owned by the issuer, and contribution of their executive officers to charter capital of the issuer.   
N/A
26. Other affiliated entities of the issuer.
N/A
27. Contribution of the issuer to charter capital of legal entities – affiliated entities.
Please, see paragraphs 24, 25, 26
28. Contribution of affiliated persons of the issuer as well as their founders and executive officers to charter capital of the issuer.
Please, see paragraphs 24, 25, 26
29. Persons that have at least 5% of votes in the supreme control authority of the issuer.
Timur Rafkatovich Goryayev  
Share: 61.24 %

Name: European Bank for Reconstruction and Development 
Share: 17.84 %
30. Participation of the issuer in industrial, banking, financial groups, holdings, concerns and associations.
Organization: Russian Perfumery and Cosmetics Association 
Position and functions of the issuer in the organization: JSC Kontsern “Kalina” is a member of this organization.
The primary function is to develop advice on industrial growth.

Organization: Association of Soap, Oil and Fat Producers  
Position and functions of the issuer in the organization: JSC Kontsern “Kalina” is a member of this organization.
The primary function is to develop advice on industrial growth.

31. Branch establishments and representative offices of the issuer.
The issuer has no branch establishments and representative offices.  
32. Headcount of staff of the issuer.
Mean headcount of staff of the issuer during the reporting period as registered in the records, including staff of its branch establishments and representative offices: 3 914
33. Description of primary types of activity of the issuer.  
Overall development of the industry:
The market of perfumery, cosmetics, household products and personal care can be described as mass market.  This is due to the  short product consumption cycle and relatively small product packaging.
Research showed that irrespective of the level of income a person spends at least 4% of his/her income on personal care products.  This figure proposes quite a considerable market capacity in value terms.  In 1999 market capacity was about 3 billion USD.  According to calculations made by marketing experts of Kontsern market capacity for perfumery and cosmetics (together with synthetic detergents and toothpaste market) in 2001 was 4 875 million USD, and in the 1st quarter of 2002 - 1 168 million USD.  Among those:
- 148 million USD - perfumery 
- 100 million USD – skin care 
- 148 million USD – shampoos 
- 77.5 million USD – toothpaste 
- 235 million USD – synthetic detergents 
Experts forecast that by 2005 market capacity will exceed 6 billion USD.  In the first place growth of market capacity is caused by higher standards of consumption of perfumery, cosmetics, household products and personal care products, growth of income and higher standard of living of population, development of the so-called middle class. The following markets have maximum capacity:
-  Perfumery,
-  Skin care,
-  Hair care,
-  Oral care,
-  Synthetic detergents,
-  Personal care.
Higher income of population will lead to market expansion in monetary terms.   Accompanied by the growing tendency among major producers to increase advertising costs, this will intensify brand consumption, consumers will prefer more expensive “image” brands.  This will also result in keen market competition, which will force out small-scale and local producers from the market.
Growth of market share of domestic producers can be viewed as an additional element showing development of the industry.  Domestic vs. imported products ratio on the skin care market can be described as 80 to 20 in kind and 53 to 47 in monetary terms (according to ACNielsen), for hair care market the ratio is 40 to 60 in kind, for toothpaste market the figures are 65 to 35 in kind.  Growth of market share of domestic producers is caused by the evident improvement of quality of goods produced and by more intensive marketing and sales efforts. 
Intensified consumer brand orientation is a growing tendency of market evolution.  Customers no longer choose a certain product, they prefer to purchase a particular brand that has a certain image or supports certain declarations.  Quality factor becomes a priority to price factor, when the product is purchased.
Features of sales structure in perfumery and cosmetics industry:
Over the last period there were no particularly conspicuous alterations in sales structure of major domestic and foreign wholesalers working with cosmetics.  Most producers distribute their products through dealers and major wholesalers.  Some producers (Avon, Oriflame, etc.) distribute their products through direct sales, just like they did before.
Speaking about outlets that feature cosmetics, the number of drugstores increases, while the number of small shops selling mixed range of goods diminishes.
The number of specialized stationary shops selling cosmetics increases, while non-stationary stalls become less numerous.  Moreover, large supermarkets, which also feature cosmetics, are growing fast.  However, they sell quite a limited range of cosmetic products – mostly these are only actively advertised mass-market brands.  Rather high prices for cosmetics in shops form one of the reasons for retail purchases of products on open wholesale markets.  Major share in sales of cosmetics through wholesale markets falls on soap, toothpaste, synthetic detergents and shampoos.  Chain stores are being strengthened.
Recently a new tendency has taken shape:  mergers of major producers of perfumery and cosmetics, consolidation of funds.  The vivid examples are Schwarzkopf and Henkel;  Procter & Gamble and Coca-Cola.

Comparative data reflecting activities of the issuer in the industry.

Skin care market.
By the end of the 1st quarter of 2002 the issuer’s share in this market was 28%.  Market shares of the major competitors are:  “Nevskaya Cosmetica” – 8%, “Beiersdorf” – 6%, “Svoboda” – 10.0%.  Market share was calculated based on the market capacity in kind.  
Hair care market.
By the end of the 1st quarter of 2002 the issuer’s share in hair care market was 4%.  Market shares of the major competitors are:  “Procter & Gamble” – 11%, “Schwarzkopf/Henkel”– 11%, “L'Oreal” –7%, “Unilever” – 7%.  Market share was calculated based on the market capacity in kind.  
Oral care market.
By the end of the 1st quarter of 2002 the issuer’s share in oral care market was 20%.  Market shares of the major competitors are:  “Procter & Gamble” – 8%, “Colgate”– 6%, “STS Cosmetic” –7%, “Nevskaya Cosmetica” – 17%, “Svoboda” – 6%.  Market share was calculated based on the market capacity in kind.  
Synthetic detergents market.
By the end of the 1st quarter of 2002 the issuer’s share in synthetic detergents market was 6%.  Market shares of the major competitors are:  “Aist” – 8%, “Nefis”– 10%, “Finist” –8%.  Market share was calculated based on the market capacity in kind.  
Perfumery market.
By the end of the 1st quarter of 2002 the issuer’s share in perfumery market was 4%.  Share of Kontsern in feminine perfumery market is 5%, the major competitors are:  “Novaya Zarya” – 14%, “Christian Dior ”– 8%. 
Share of Kontsern in masculine perfumery market is 3%, the major competitors are:  “Novaya Zarya” – 4%, “Dzintars ”– 2%.   
The key competitive advantage of products offered by Kontsern is high and stable quality confirmed by the quality certificate ISO 9001.  Additional major competitive advantages over other producers are: availability of brands in the medium price range, advertising and information support, quality formulations, use of modern ingredients, high input of perfume compounds, availability of fragrances featured in modern trends, availability of products for different income and age segments in the range of products.

History of foundation and activities of the Issuer

History of Kontsern “Kalina” (JSC “Uralskiye Samotsvety” until November, 1999) dates back to 1942.  The factory “Uralskiye Samotsvety” was founded on the basis of the factory “Novaya Zarya” evacuated from Moscow.  The company then produced personal hygiene products for soldiers, which were forwarded to the front.  After the war years perfume and loose powder were produced at the factory.  In the 60-70’s government adopted the resolution to create a company producing perfumery and cosmetics, and the factory went through major reconstruction.  In 1974 primary workshops of the virtually newly-built factory “Uralskiye Samotsvety” began to operate.  The factory then consisted of  electrical shop, production, perfumery, cardboard packaging production shops, maintenance and machine shop, steam-power, raw material shops and transport department.  The same year the first batch was released in the perfumery production shop – the well-known cologne “Troinoy”.  In 1975 a new production line for cosmetic products (creams) in tubes  was launched at the factory.  In 1980 staff of the factory “Uralskiye Samotsvety” were awarded the order “Badge of Honor” and listed in the “Volume of Labor Glory” issued by the Ministry of Food Industry and the Central Committee of trade union of food industry workers for production output growth and improvement of the range of products released by the factory.  In the 80’s “Uralskiye Samotsvety” mastered production of then the most critical cosmetic commodity– lipstick.  In the 90’s decision was taken to construct a new toothpaste production shop at the factory.  The factory “Uralskiye Samotsvety” became a leader among Russian producers in the 90’s.  In November of 1999 the company JSC “Uralskiye Samotsvety” was registered under the new name - JSC “Kontsern “Kalina”.
Kontsern “Kalina” aspires to ensure its presence in each product group and price range.  Production units of Kontsern release the following types of products:  perfumery, facial skin care cosmetics, body care, shampoos, balsams, hair masks, decorative cosmetics, toothpaste, soap, powder detergents and household products, baby diapers.  The range of products of Kontsern numbers over 300 product items.  Some of the best known brands are:  cosmetic lines “Zolotaya Liniya”, “Serebryanaya Liniya”, “Chorny Zhemchug”, “Chistaya Liniya”; cosmetic lines for children “Malenkaya Feya” and “Drakosha”; toothpaste “32 norm”, “Ftorodent”, “Lesnoy Balzam” and many other products, among which perfumery should be given a special notice – perfume “Angelica Varum” and “Luchshy Aromat 2000”.
Kontsern “Kalina” has its own scientific research center, its activities are targeted at development of new products, cosmetic products in the first place, that are produced of natural ingredients.  Finished compounds are used in certain types of perfumery products upon agreement with foreign partners (major world developers of perfumery).  Kontsern is the first Russian company in the industry that received the ISO 9000 certificate (quality standards), foreign experts recognize its products as meeting the most rigid European standards.  These years the company has been rapidly growing and expanding its operations building up a reputation of a reliable producer offering a wide range of quality perfumery and cosmetic products that are sold at affordable prices.  
Changes in production and sales structure were adopted already in the first months of 1996, due to this the Issuer now is one of the large-scale industrial companies in Russia that most successfully entered market economy.

Primary types of products (services) that ensure over 10% of total sales /revenue/ of the Issuer.

Primary activity of the Issuer is production and sales of perfumery and cosmetics, consumer goods, industrial and technological goods.

Total sales of primary types of products in 1999: 

Primary types of products	 	thousand RUR		Share in total		thousand					(excl. VAT)		sales (%)		pcs.

Perfumery	                                   	243593	                       	10                                	12337	

Creams 	                                   	805061	                       	31	                 	111047	

Toothpaste	                                   	300224	                       	13	                  	76126	

Detergents	                                   	508665	                       	22	                  	124793	

Total sales of primary types of products in 2000: 

Primary types of products	 	thousand RUR		Share in total		thousand					(excl. VAT)		sales (%)		pcs.
	
Creams	                                  	1168250	       	36                             	144849	

Toothpaste	                                   	527965	                       	16                             	103095	

Detergents	                                   	597185	                       	18	                	160509	

Total sales of primary types of products in 2001: 

Primary types of products	 	thousand RUR		Share in total		thousand					(excl. VAT)		sales (%)		pcs.
	
Creams	                               	1330030	           	37.2                  		134882	
Toothpaste	                       	  	682783	                       	19.1                 		106727	
Detergents	                      	  	627318	                       	17.5	            		166777

Total sales of primary types of products in the 1st quarter of 2002:

Primary types of products	 	thousand RUR		Share in total		thousand					(excl. VAT)		sales (%)		pcs.
	
Creams	                              	415878	                       	44.6                  	  	35630	
Toothpaste	                       	  	162048	                       	17.4                  	  	23549	
Detergents	                      	  	120525	                       	12.9	            	  	34649

Primary types of activities and their share in total sales /revenue/:
Primary predominant and priority type of activity of the Issuer is production and sales of perfumery and cosmetic products.  Its share in total sales (line 10, form 2) adjusted to denomination is:
 
	1999	2000	2001	1 quarter of 2002	
	%	thous. rubles	%	thous. rubles	%	thous. rubles	%	thous. rubles	
Production and sales of perfumery and cosmetics	99	2068774	99	3193463	99	3541985	99	952752	
Other	1	20897	1	32257	1	35778	1	9624	

Sources of raw materials, stuffs and services:
Results of the 1st quarter show that the number of foreign suppliers has reached 25% of the total number.  Share of foreign suppliers in total purchases is 30.91%, correspondingly share of Russian suppliers is 69.09%.  Dynamic  measures are taken to reduce cost of raw materials purchased in order to increase cost effectiveness of products released.
Kontsern successfully cooperates with major world producers of raw materials and packaging, like Cognis (Germany), Albright&Wilson (England), Dragoco (Austria), Saint-Gobain (France), Rhoda Cosmetics Ltd (Israel).  The following Russian suppliers should be mentioned:  “Gammakhim” (Moscow), Naberezhnochelninsky KBK (Naberezhniye Chelny), Closed Joint Stock Company “Petrobord Trading” (St.-Petersburg), Open Joint Stock Company “Marbiofarm” (Yoshkar-Ola).
Please, find below the list of major suppliers according to the results of the 1st quarter of 2002:

Supplier		  		Country	                  

1	JSC “Gammakhim”	  	Moscow, Russian Federation 
2	Lima-Pol                     		Poland	       
3	Dragoco                     		Austria       

Sales markets of the Issuer for product (work, service) sales:
The issuer supplies its products to all Russian regions and to the CIS countries (Byelorussia, Ukraine, Kazakhstan).  Over 90% of products are sold through dealer network, which combines 115 companies.  The list of 10 major dealers according to the results of the 1st quarter of 2002 reflects regional product sales distribution. 

	Dealer	            	 	City	           		Subdivision         
                                                                                                           
1	Parfum-С		Tomsk			East Sales
2	Marusha		Stavropol		West Sales
3	Tander			Krasnodar		West Sales
4	Anita			Ekaterinburg		Central Sales
5	VSTK			Irkutsk			East Sales
6	Tsentr-Cosmetics				West Sales	
7	Best						East Sales
8	Forpost	                                                   	                     	   	
9	RIF			Moscow		West Sales
10	Sigma						West Sales 

The largest dealers do not limit their operations only to their own region, they also cover the neighboring regions.
Work practice regarding stocks:
The Issuer’s activities associated with liquid assets and stocks are limited to maintenance of stock level, which is necessary to ensure monthly output of products.
Stock turnover ratio is calculated by the Issuer as follows:  
Stock turnover ratio = (line 020(F2)+line 030(F2)+line 040(F2))/line 210(F 1)
Stock turnover ratio (1st quarter of 2002)=(516453 thous. rubles + 62656 thous.rubles + 109447 thous. rubles)/1030834 thous. rubles = 0.67
Seasonal nature of Issuer’s activity
Seasonal fluctuations in demand are a stable phenomenon on the market of perfumery and cosmetics.  Peak sales are reached in fall and in winter.  This peak is dependent on Russian climate (cold and long winters on vast territories of Russia), and national features (most holidays are celebrated during these two seasons), it is also connected with business slowdown (season of vacations, etc.).  To level this natural sales recession, products with peak sales in summer were added to the range of products offered by the Issuer:  repellents, sunscreens, household products, synthetic detergents, soap.  

Future liabilities might have a negative effect on activities of the Issuer, if exchange rate in countries of suppliers shoots upwards and difference in rates to ruble becomes sizeable.
Key competitors:
Since the level of real income of the majority of population has recently been growing, there is a risk that some consumers will purchase foreign brands with a more dynamic advertising support.  Therefore the importance of low price (mainly for domestic products) when choosing cosmetics will be considerably reduced.  I.e. the brand will become more significant in the process of decision-making, and producers that have more brands in their “brand portfolio” will benefit.
Among Russian producers promoting their brands these are:  “Svoboda” (“Nochnaya Fialka” – skin care, “Parodontol” – toothpaste), “Nevskaya Cosmetica” (“Vorozheya” – skin care), “Vesna” (“Kaplya” – household products, “Frutamin” – soap and shampoos).
Among foreign producers these are:  "Procter&Gamble" (the company mainly promotes personal care products and household products), “Unilever” (household products and food products).

Increase in number of newly-founded small-scale domestic producers registered after the crisis of 1998 virtually ceased.  

Upsurge of competition remains on the markets of products that require minimum investment in purchase of equipment and expenditures on raw materials, these are the markets of liquid hair care, bath and shower products, household liquids.

Today competitive stability of the company is based upon:
-	availability of brand items in the range of products offered by the company;
-	effective trade policy;
-	availability of seasonal product groups in the range of products, which allow the company to maintain even cash flow all the year round (peak sales of household products and hygiene products for children fall on summer, peak sales of cosmetics fall on spring and fall, peak sales of perfumery fall on winter).

The following measures are taken to enhance competitiveness of products offered by Kontsern “Kalina”: 
-	production costs for the whole range of products are reduced (search for cheaper raw materials, stuffs and packaging)
-	appearance of brand items is improved without increase in their production costs
-	sealing machine, which will solder aluminum membranes on creams in jars, is being launched (this will provide additional protection from imitations and guarantee safety of liquid products)
-	machine for production of cream samples is launched (this will allow to reduce the risk generally posed by the first purchase of product) 
-	analysis of market situation with “temporarily problematic” products (those having rather low sales), which will then allow to take the decision either to phase the product out, or to take specific reanimation measures
-	alteration and modification of seasonal range of products (line of repellents)

34. Investment declaration.  Description of the issuer’s activity.
This can be provided only by investment funds.  
35. Issuer’s future activity plans.
The complex of marketing activities in 2002 will be targeted at reinforcement of existing brands (“Chorny Zhemchug”, “Chistaya Liniya”, “Malenkaya Feya”, “32”, “Lesnoy Balzam”, etc.), their renovation, expansion of the range of products and development of potential brands in other product groups – shampoos, perfumery, introduction of new types of products.
One of the key prerequisites for reinforcement of brands, and thus, enhancement of  consumption and loyalty to these brands, is dynamic advertising policy of Kontsern.  In 2002 Kontsern “Kalina” plans to run the advertising campaign, which will be the most aggressive among domestic producers, diversifying advertising techniques used and launching various large-scale product promotion activities. 
 Product promotion plans for 2002, breakdown by product groups:
Hair care:
-	release of new line of shampoos.  Hair care line (shampoos, balsams).  Medium price segment.
-	renovation of “Chistaya Liniya” shampoos – design (bottle, label) + new type of shampoo.

Skin care:
TV advertising campaigns – “Chistaya Liniya”
“Chorny Zhemchug”:
-	regional campaign in towns and cities - cream with multivitamins
-	federal campaign – new complexion control cream with nanosomes 
New product line for young skin “MIA”
Press advertising campaign:
“Chistaya Liniya”
“Chorny Zhemchug” – cream with nanosomes
“Serebryanaya Liniya”, “Zolotaya Liniya”, “MIA”
Oral care:
Tendency to develop key brands: “32”, “Lesnoy Balzam”, “Ftorodent”, “Drakosha”.
-	advertising and information support for the brands:  “32”(advertising on central TV channels), “Lesnoy Balzam” (advertising on central TV channels, advertising campaign in the regional press), “Drakosha” (TV series)
-	expansion of the range of products featured by the brands “Lesnoy Balzam”, “Ftorodent”
-	mastering of new types of products (mouthwashes, toothbrushes).  Kontsern “Kalina” plans dynamic advance into the markets of Ukraine and Uzbekistan in 2002.  New national brands will be launched and supported by advertising campaign, Russian brands (“Chorny Zhemchug”, “Malenkaya Feya”, “Chistaya Liniya”, etc.) will be actively promoted on these markets.
Kontsern also plans to enter the markets of distant foreign countries, i.e. markets in Western and Eastern Europe and America, in 2002.

36. Information about the charter capital of the issuer. 
Amount of the issuer’s charter capital (RUR): 631 449 070

Breakdown of charter capital by share categories:
Ordinary shares:
  total amount (RUR): 631 449 070
  share in charter capital:  100 %
Preference shares:
 total amount (RUR):  0
 share in charter capital:  0 %
37.  Information about share of the state (municipal organization) in the charter capital of the issuer.   
Share of the issuer’s charter capital forming a state (municipal) property
none

Package of shares of the issuer that is passed into the state (municipal) ownership.
none

Specific right granted to the Russian Federation, subjects of the Russian Federation and municipal organizations to participate in the process of issuer management (“golden share”):  
N/A
38. Information about announced shares of the issuer.
38.1
Category of shares:  ordinary
Form of shares: registered, non-documentary 
Full description of category/type of announced shares: ordinary registered non-documentary 
Nominal value (RUR): 70
Quantity: 1 387 403
Total amount (RUR): 97 118 210
Terms and conditions of the offering: Terms and conditions of the offering are indicated in the Charter.
39. Material contracts and liabilities of the issuer.
none
40. Liabilities of the issuer associated with issue of shares and securities convertible to shares.  
none
41. Information about sanctions imposed on the issuer, its involvement in legal proceedings and inspections.
Sanctions imposed on the issuer by state administration authorities and court decisions during the current year and the three fiscal years preceding the year of the reporting quarter: 
Date of imposition: 25.03.2002
Authority that imposed the sanction: Oktyabrsky district court of Ekaterinburg 
Reasons for imposition: illegal deduction from salary 
Sanction type: recovery of salary for the period of forced absence from work, moral damage, services of the agent (an appeal to the Sverdlovsk regional court was lodged)
Total amount of sanction (RUR): 43 176.16
Sanction discharge status: not discharged

Description of nature of all current legal proceedings or legal proceedings that have been closed during the reporting quarter, which might have a significant effect on issuer’s activities: 
there are no current legal proceedings that can have a significant effect on issuer’s activities. 
Description of causes for all current inspections of the issuer or those performed by state authorities during the reporting period, and audit of the issuer carried out upon request of its participants (shareholders):
 No inspections were performed during the reporting period.
42. Material facts (events, actions) that took place during the reporting period.  
Date of fact (event, action): 6.03.2002
Code: 1130306D06032002

Disbursed yield on securities of JSC Kontsern “Kalina”.  

The open joint stock company Kontsern “Kalina” paid off coupon yield on registered non-documentary coupon bonds with a variable coupon, series 001, issued by JSC Kontsern “Kalina” in the amount of 51 340 (fifty-one thousand three hundred and forty) bonds with the nominal value of 100 (one hundred) rubles each. 

The date of payment of coupon yield for the forth coupon period – 06.03.2002.

The amount of coupon yield paid off per bond is 4 (four) rubles 99 kopecks.  
Total number of bonds on which coupon yield was charged – 51 340 (fifty-one thousand three hundred and forty) pcs., which makes 256 186 (two hundred fifty-six thousand one hundred and eighty-six) rubles 60 kopecks.

Coupon yield is paid off in the form of funds paid in RUR.

Chief Executive Officer
JSC Kontsern “Kalina” 							Т.R. Goryayev

Date of fact (event, action): 7.03.2002
Code: 0430306D07032002

Alterations in the list of entities in which JSC Kontsern “Kalina” has its share

Open joint stock company “Nikolaevsky perfumery-cosmetic integrated plant” Aliye Parusa”
Location and postal address:  106 Malaya Morskaya Street, Nikolaev 54002, Ukraine
Share of JSC Kontsern “Kalina” prior to alteration:  17.854%
Share of JSC Kontsern “Kalina” after  alteration: 84.045 %
The date of alteration of share in the charter capital:  07.03.2002.

Chief Executive Officer
JSC Kontsern “Kalina” 							Т.R. Goryayev

Date of fact (event, action): 11.03.2002
Code: 1330306D11032002

Alterations in the list of entities in which JSC Kontsern “Kalina” has its share

Open joint stock company “Nikolaevsky perfumery-cosmetic integrated plant” Aliye Parusa”
Location and postal address:  106 Malaya Morskaya Street, Nikolaev 54002, Ukraine
Share of JSC Kontsern “Kalina” prior to alteration:  0.00%
Share of JSC Kontsern “Kalina” after  alteration: 17.854 %
The date of alteration of share in the charter capital: 21.12.2001.

Chief Executive Officer						Т.R. Goryayev

43. Information about reorganization of the issuer, its subsidiaries and associates. 
the company was not reorganized
44. Additional material general information about the issuer.
 N/A
B. Information about financial and economic activities of the issuer  
45. Annual accounts for the last three fiscal years.  
Please, see the Appendix.
46. Accounts of the issuer for the reporting period.
Please, see the Appendix.
47. Facts that caused more than a 10% growth or reduction of issuer’s assets during the reporting quarter.  
Date of fact (facts): 31.03.2002
Description:  Growth of accounts receivable financed by increase in accounts payable to suppliers resulted in growth of assets.    
Total variation of assets registered on the end date of the reporting quarter as compared to the issuer’s assets registered on the end date of the quarter preceding the reporting quarter:  1 224 369 thousand RUR.

Assets of the issuer registered on the end date of the quarter preceding the reporting quarter: 2 740 280 thousand RUR.
Assets of the issuer registered on the end date of the reporting quarter:   3 964 649 thousand RUR.
Facts that caused more than a 10% growth or reduction of issuer’s assets last year during the IV quarter.
Date of fact (facts): 30.09.2001
Description: Expansion of sales in the 3rd quarter caused output and sales growth in the 4th quarter, thus leading to an increase in liquid assets (please, see the balance-sheet)
Total variation of assets registered last year on the end date of the IV quarter as compared to the issuer’s assets registered last year on the end date of the III quarter: 223 436  thousand RUR.

Assets of the issuer registered last year on the end date of the III quarter:
2 516 844 thousand RUR.
Assets of the issuer registered last year on the end date of the IV quarter:
2 740 280 thousand RUR.
48. Facts that caused more than a 20% increase in profits (losses) of the issuer during the reporting quarter as compared to the preceding quarter.  
Date of fact (facts): 31.03.2002
Description: Increase in promotional costs during the reporting quarter caused decline in profits  
Total variation of profits (losses) registered during the reporting quarter as compared to profits (losses) of the issuer during the quarter preceding the reporting quarter:  -29 445 thousand RUR.

Profits (losses) of the issuer registered during the quarter preceding the reporting quarter:
106 631 thousand RUR.
Profits (losses) of the issuer registered during the reporting quarter: 136 076 thousand RUR.
Facts that caused more than a 20% increase in profits (losses) of the issuer registered last year during the IV quarter as compared to those registered last year during the III quarter.  
Date of fact (facts): 31.12.2001
Description: expansion of sales caused profit growth 
Total variation of profits (losses) registered last year during the IV quarter as compared to profits (losses) of the issuer registered last year during the III quarter: 62 653 000 thousand RUR.

Profits (losses) of the issuer registered last year during the III quarter:  43 978 000 thousand RUR.
Profits (losses) of the issuer registered last year during the IV quarter: 106 631 000 thousand RUR.
49. Information about set-up and use of the reserve fund and other special-purpose funds of the issuer.
In accordance with the Charter of the Issuer, Article 6, p.6.6, the Company sets up a reserve fund in the amount of 25% of its charter capital.  The reserve fund is formed by annual deductions at the rate of 5% of net profit of the Company until the fixed amount of the fund is reached.  The purpose of the reserve fund of the Company is to cover its losses, to pay off bonds of the Company and to redeem shares of the Company, if no other resources are available.
As of 31.12.1998 the reserve fund was not set up.
22.04.1999 – the reserve fund in the amount of RUR 7 820 533.00 was set up.
As of 31.12.1999 the reserve fund was RUR 7 820 533.00.  Resources of the reserve fund were not used.
 As of 31.12.2000 the reserve fund was RUR 7 820 533.00.  Resources of the reserve fund were not used.
As of 30.09.2001 the reserve fund was RUR 7 820 533.00.  Resources of the reserve fund were not used.

50. Transactions of the issuer settled during the reporting quarter, that make at least 10% of total assets of the issuer registered by the end of the quarter preceding the reporting quarter.  
None.  
51. Information about allocation of resources obtained by the issuer as a result of placing issued securities.
51.1 State registration number of the issue: 4-02-30306-D
Date of state registration of the issue: 15.11.2001
Total amount (value) of resources paid for securities by the end date of the reporting quarter: 550 038.34 thousand RUR
Amount (value) of resources spent during the reporting quarter on each of the primary expense items:
replenishment of circulating assets - 550 038.34 thousand RUR.
Total amount (value) or resources spent during the reporting quarter:
550 038.34 thousand RUR
52. Borrowed funds obtained by the issuer and its subsidiaries in the reporting quarter.  
Information about the amount of borrowed funds obtained by the issuer by the end of the reporting quarter:  

Parameter	Balance registered by the opening date of the year 
 (thousand RUR)	Amount received (thousand RUR)	Amount paid off (thousand RUR)	Balance registered by the end date of the reporting quarter
 (thousand RUR)	
Long-term bank credits	-	-	-	-	
including those overdue	-	-	-	-	
Other long-term loans	5 151	550 000	17	555 134	
including those overdue	-	-	-	-	
Short-term bank credits	440 880.46	252 155.49	682 521.95	10 514	
including those overdue	-	-	-	-	
Employee bank credits	-	-	-	-	
including those overdue	-	-	-	-	
Other short-term loans	-	-	-	-	
including those overdue	-	-	-	-	

Information about the amount of borrowed funds obtained by the issuer and its subsidiaries last year:  

Parameter	Balance registered by the opening date of the year 
 (thousand RUR)	Amount received (thousand RUR)	Amount paid off (thousand RUR)	Balance registered by the end date of the reporting quarter
 (thousand RUR)	
Long-term bank credits	-	-	-	-	
including those overdue	-	-	-	-	
among those:					
Other long-term loans	-	75 063	69 912	5 151	
including those overdue	-	-	-	-	
among those:					
Short-term bank credits	316 111	2 839 345	2 714 576	440 880	
including those overdue	-	-	-	-	
among those:					
Employee bank credits	-	-	-	-	
including those overdue	-	-	-	-	
among those:					
Other short-term loans	-	-	-	-	
including those overdue	-	-	-	-	
among those:					

53. Accounts receivable by and accounts payable to the issuer and its subsidiaries in the reporting quarter.
Information about the amount of accounts receivable by and accounts payable to the issuer as of the end date of the reporting quarter:

Parameter	Balance registered by the opening date of the year 
 (thousand RUR)	Amount received (thousand RUR)	Amount paid off (thousand RUR)	Balance registered by the end date of the reporting quarter
 (thousand RUR)	
1) Accounts receivable:					
short-term	988 710	9 167 893	8 271 890	1 894 713	
including those overdue	-	-	-	-	
including those with overall duration over 3 months	-	-	-	-	
among those:					
long-term	-	-	-	-	
including those overdue	-	-	-	-	
including those with overall duration over 3 months	-	-	-	-	
among those:					
2) Accounts payable:					
short-term	701 229	8 956 701	7 987 203	1 670 727	
including those overdue	-	-	-	-	
including those with overall duration over 3 months	-	-	-	-	
among those:					
long-term	-	-	-	-	
including those overdue	-	-	-	-	
including those with overall duration over 3 months	-	-	-	-	
among those:					
Assurances:					
received	-	-	-	-	
including those received from a third party	-	-	-	-	
among those:					
provided	-	-	-	-	
including those provided to a third party	-	-	-	-	
among those:					
3) Movement of bills:					
Bills issued	-	-	-	-	
including those overdue	-	-	-	-	
among those:					
Bills received	-	-	-	-	
including those overdue	-	-	-	-	
among those:					

Information about the amount of accounts receivable by and accounts payable to the issuer and its subsidiaries as of the end date of the last year:

Parameter	Balance registered by the opening date of the year 
 (thousand RUR)	Amount received (thousand RUR)	Amount paid off (thousand RUR)	Balance registered by the end date of the reporting quarter
 (thousand RUR)	
1) Accounts receivable:					
short-term	819 159	36 100 665	35 931 114	988 710	
including those overdue	56 065	236 541	203 638	88 968	
including those with overall duration over 3 months	49 419	206 974	198 203	58 190	
among those:					
long-term	-	-	-	-	
including those overdue	-	-	-	-	
including those with overall duration over 3 months	-	-	-	-	
among those:					
2) Accounts payable:					
short-term	941 299	36 763 679	37 003 749	701 229	
including those overdue	113 221	-	113 221	-	
including those with overall duration over 3 months	43 703	-	43 703	-	
among those:					
long-term	-	-	-	-	
including those overdue	-	-	-	-	
including those with overall duration over 3 months	-	-	-	-	
among those:					
Assurances:					
received	-	-	-	-	
including those received from a third party	-	-	-	-	
among those:					
provided	-	-	-	-	
including those provided to a third party	-	-	-	-	
among those:					
3) Movement of bills:					
Bills issued	-	-	-	-	
including those overdue	-	-	-	-	
among those:					
Bills received	6 760 000	243 651 000	225 960 000	24 451 000	
including those overdue	-	-	-	-	
among those:					

54. Financial investment of the issuer.
Information about financial investment of the issuer as of the end date of the reporting quarter.

Parameter	Total amount of investment by the end date of the reporting quarter (thousand RUR)	
	short-term
(up to 1 year)	long-term
(over 1 year)	total	
Investment in government securities of the Russian Federation	990.64	-	990.64	
Investment in government securities issued by the subjects of the Russian Federation	-	-	-	
Investment in securities issued by local authorities	-	-	-	
Investment in shares, interest, stock of other organizations	-	121 530	121 530	
Investment in bonds and other debentures 	20 755.91	-	20 755.91	
Other loans granted 	-	513	513	
				
Investment in subsidiaries of the issuer	-	-	-	
Investment in associates of the issuer	-	-	-	
	
Financial investment in organizations that were liquidated in the order stipulated by the law
 of the Russian Federation 	
Name of the organization	Liquidation date	Authority that passed a resolution to liquidate the organization 	Total
 investment (thousand RUR)	
Total			-	
	
Financial investment in organizations that were declared bankrupt 
in the order stipulated by the law of the Russian Federation	
Name of the organization	Liquidation date	Authority that passed a resolution to liquidate the organization 	Total 
 investment (thousand RUR)	
Total			-	
	
Total assets of the issuer as of the end date of the reporting quarter (thousand RUR)  	3 964 649	
	
Financial contributions to organizations, investment in which equals at least 10% of assets of the issuer 
as of the end date of the reporting quarter.	
Name of the organization	Total
 investment (thousand RUR)	Share in assets	
0			
Total	-	0 %	

Information about financial investment of the issuer and its subsidiaries as of the end date of last year:

Parameter	Total amount of investment by the end date of the reporting quarter (thousand RUR)	
	short-term
(up to 1 year)	long-term
(over 1 year)	total	
Investment in government securities of the Russian Federation	-	990.64	990.64	
Investment in government securities issued by the subjects of the Russian Federation	-	-	-	
Investment in securities issued by local authorities	-	-	-	
Investment in shares, interest, stock of other organizations	-	106 980.33	106 980.33	
Investment in bonds and other debentures 	24 451.61	-	24 451.61	
Other loans granted 	-	513	513	
				
Investment in subsidiaries of the issuer	-	-	-	
Investment in associates of the issuer	-	-	-	
	
Financial investment in organizations that were liquidated in the order stipulated by the law
 of the Russian Federation 	
Name of the organization	Liquidation date	Authority that passed a resolution to liquidate the organization 	Total
 investment (thousand RUR)	
Total			-	
	
Financial investment in organizations that were declared bankrupt 
in the order stipulated by the law of the Russian Federation	
Name of the organization	Liquidation date	Authority that passed a resolution to liquidate the organization 	Total 
 investment (thousand RUR)	
Total			-	
	
Total assets of the issuer as of the end date of the reporting quarter (thousand RUR)  	2 740 280	
	
Financial contributions to organizations, investment in which equals at least 10% of assets of the issuer 
as of the end date of the reporting quarter.	
Name of the organization	Total
 investment (thousand RUR)	Share in assets	
Total	-	0 %	

55. Additional material information about financial and economic activity of the issuer
No additional information about financial and economic activity of the issuer is available.  
C. Information about securities of the issuer  
56. Information about shares of the issuer.
Issue No.: 1
Category: ordinary
Form of securities: registered, non-documentary 
Nominal value of one security in the issue: 1 

Total number of securities in the issue: 144 557
Total amount of the issue: 144 557

Information about state registration of the issue: 
Registration date: 18.12.1992
Registration No.: 621п-36
State registration authority: Fiscal control bodies 

Placement method:  distribution to shareholders
Placement period: from 23.12.1992 to 1.10.1993

Current status of the issue: all securities in the issue are paid off (reversed)
Number of securities actually placed in accordance with the registered report on outcomes of the issue: 144 557

Information about state registration of the report on outcomes of the issue:
Registration date: 23.09.1998
State registration authority: Sverdlovsk Regional Department of the Federal Securities Market Commission of Russia 

Limitations in circulation of securities issued (if any): 
None.

Market data on securities issued: 
Off-board market.

Additional material information about securities issued: 
01.10.1993 shares with the nominal value of RUR 1000 (former scale of prices) and RUR 1 (new scale of prices) were split at the check auction.  Share split-up ratio: 8.  Nominal value of shares after the auction: RUR 125 (former scale of prices) and 12.5 kopecks (new scale of prices).  The number of shares after split-up increased to 1156456. 

Issue No.: 2
Category: ordinary
Form of securities: registered, non-documentary 
Nominal value of one security in the issue: 45 

Total number of securities in the issue: 1 156 456
Total amount of the issue: 52 040 520

Information about state registration of the issue: 
Registration date: 12.01.1999
Registration No.: 1 -  02 - 30306 - D
State registration authority: Sverdlovsk Regional Department of the Federal Securities Market Commission of Russia 

Placement method:  conversion
Placement period: from 13.01.1999 to 14.01.1999

Current status of the issue: all securities in the issue are paid off (reversed)
Number of securities actually placed in accordance with the registered report on outcomes of the issue: 1 156 456

Information about state registration of the report on outcomes of the issue:
Registration date: 27.01.1999
State registration authority: Sverdlovsk Regional Department of the Federal Securities Market Commission of Russia 

Limitations in circulation of securities issued (if any): 
None.

Market data on securities issued: 
Off-board market.

Additional material information about securities issued: 
No additional material information about securities issued is available. 

Issue No.: 3
Category: ordinary
Form of securities: registered, non-documentary 
Nominal value of one security in the issue: 90 

Total number of securities in the issue: 1 156 456
Total amount of the issue: 104 081 040

Information about state registration of the issue: 
Registration date: 9.08.1999
Registration No.: 1 - 03 - 30306 - D 
State registration authority: Sverdlovsk Regional Department of the Federal Securities Market Commission of Russia 

Placement method:  conversion
Placement period: from 10.08.1999 to 11.08.1999

Current status of the issue: all securities in the issue are paid off (reversed)
Number of securities actually placed in accordance with the registered report on outcomes of the issue: 1 156 456

Information about state registration of the report on outcomes of the issue:
Registration date: 27.08.1999
State registration authority: Sverdlovsk Regional Department of the Federal Securities Market Commission of Russia 

Limitations in circulation of securities issued (if any): 
None.

Market data on securities issued: 
Off-board market.

Additional material information about securities issued: 
No additional material information about securities issued is available. 

Issue No.: 4
Category: ordinary
Form of securities: registered, non-documentary 
Nominal value of one security in the issue: 10 

Total number of securities in the issue: 10 408 104
Total amount of the issue: 104 081 040

Information about state registration of the issue: 
Registration date: 29.03.2000
Registration No.: 1 - 04 - 30306 - D
State registration authority: Sverdlovsk Regional Department of the Federal Securities Market Commission of Russia 
Placement method:  conversion
Placement period: from 30.03.2000 to 31.03.2000

Current status of the issue: securities in the issue are partially paid off (reversed)
Number of securities actually placed in accordance with the registered report on outcomes of the issue: 10 408 104
Number of issued securities in circulation: 7 285 671
Number of issued securities that were paid off (reversed): 3 122 433

Information about state registration of the report on outcomes of the issue:
Registration date: 24.04.2000
State registration authority: Sverdlovsk Regional Department of the Federal Securities Market Commission of Russia 

Limitations in circulation of securities issued (if any): 
None.

Market data on securities issued: 
Off-board market.

Additional material information about securities issued: 
No additional material information about securities issued is available. 

Issue No.: 5
Category: ordinary
Form of securities: registered, non-documentary 
Nominal value of one security in the issue: 10 

Total number of securities in the issue: 1 735 030
Total amount of the issue: 17 350 300

Information about state registration of the issue: 
Registration date: 26.09.2000
Registration No.: 1 - 05 - 30306 - D
State registration authority: Sverdlovsk Regional Department of the Federal Securities Market Commission of Russia 

Placement method:  open subscription
Placement period: from 11.10.2000 to 11.10.2000

Current status of the issue: placement is finalized
Number of securities actually placed in accordance with the registered report on outcomes of the issue: 1 735 030

Information about state registration of the report on outcomes of the issue:
Registration date: 27.12.2000
State registration authority: Federal Securities Market Commission of Russia 

Limitations in circulation of securities issued (if any): 
None.

Market data on securities issued: 
Off-board market.

Additional material information about securities issued: 
No additional material information about securities issued is available. 

Issue No.: 6
Category: ordinary
Form of securities: registered, non-documentary 
Nominal value of one security in the issue: 70 

Total number of securities in the issue: 9 020 701
Total amount of the issue: 631 449 070

Information about state registration of the issue: 
Registration date: 22.08.2001
Registration No.: 1-06-30306-D
State registration authority: Federal Securities Market Commission of Russia 

Placement method:  conversion
Placement period: from 5.09.2001 to 5.09.2001

Current status of the issue: placement is finalized
Number of securities actually placed in accordance with the registered report on outcomes of the issue: 9 020 701

Information about state registration of the report on outcomes of the issue:
Registration date: 9.10.2001
State registration authority: Federal Securities Market Commission of Russia 

Limitations in circulation of securities issued (if any): 
None.

Market data on securities issued: 
Off-board market.

Additional material information about securities issued: 
No additional material information about securities issued is available. 
57. Information about bonds of the issuer.
Issue No.: 1
Series:  001
Type: interest bearing bonds
Form of securities: registered, non-documentary 
Nominal value of one security in the issue: RUR 100 

Total number of securities in the issue: 700 000
Total amount of the issue: 70 000 000

Information about state registration of the issue: 
Registration date: 8.02.2001
Registration No.: 4-01-30306-D
State registration authority: Federal Securities Market Commission of Russia 

Placement method:  open subscription
Placement period: from 7.03.2001 to 9.06.2001

Current status of the issue: placement is finalized
Number of securities actually placed in accordance with the registered report on outcomes of the issue: 700 000

Information about state registration of the report on outcomes of the issue:
Registration date: 19.07.2001
State registration authority: Federal Securities Market Commission of Russia 

Limitations in circulation of securities issued (if any): 
None.

Market data on securities issued: 
Off-board market, primary market within the trading system of Noncommercial partnership “RTS Stock Exchange ”
Period of circulation of bonds issued: from 7.03.2001 to 5.03.2004

Yield on bonds issued:
percentage of nominal value:  Coupon yield on bonds issued by the Issuer is calculated at the close of each period of coupon payments using the following formulation:
(S1 * Kd *T1*N) / (365 *100) +…+(Si * Kd * Ti *N) / (365 * 100)…+(Sk * Kd Tk *N) / (365 * 100), 	
where
S1 – the first refinancing interest rate effective during the period of coupon payments, percentage;
Si – refinancing interest rate effective during the period of coupon payments, percentage;
Sk – the last refinancing interest rate effective during the period of coupon payments, percentage; Kd – refinancing interest rate discount factor.  Kd calculation procedures are described in paragraph 1.;
T1 – number of days, when the refinancing interest rate 1 was effective during the current period of coupon payments;
Ti – number of days, when the refinancing interest rate i was effective during the current period of coupon payments;
Tk – number of days, when the refinancing interest rate k was effective during the current period of coupon payments;
N – nominal value of bonds, RUR;
i – natural number that equals the consecutive number of refinancing interest rate in the current period of coupon payments; 
k – natural number that equals the number of refinancing interest rates effective during the period of coupon payments.
In compliance with a resolution of the Issuer’s Board of Directors (the Board of Directors of JSC Kontsern “Kalina” - minutes No.21 dated February 28, 2001) a steady refinancing interest rate discount factor, needed to calculate yield on bonds series 001 issued by Kontsern “Kalina”, was fixed at 0.8, i.e. 80% of refinancing interest rate fixed by the Central Bank of the Russian Federation.
 
other property equivalents of one bond (RUR):  none provided 
other rights to bonds and yield on bonds issued: none provided
Redemption period:  from 05.03.2004 to 05.03.2004
Redemption procedures, terms and conditions:  Bonds will be redeemed simultaneously with repayment of coupon yield for the last period of coupon payments, i.e. on the 1095th day from the first date of placement.  If this day happens to be a day off, a holiday, or a day when no bank payments are made, payment of the amount due will be effected on the first business day following the aforementioned days.  Debenture holder is not entitled to interest or any other compensation for such delay in payment.
The date when advanced redemption may be initiated:  365th, 730th day after the first date of placement and in situations discussed in paragraph 5, section “Advanced redemption procedures, terms and conditions”.
Advanced redemption procedures, terms and conditions:  Bond owners have a right to an early retirement of bonds (and are entitled to accumulated coupon yield) in the following cases:
1.  Based on orders forwarded by debenture holders or their plenipotentiaries to the Issuer or a paying agent and accepted by them exclusively within 14 days, starting from the date of coupon yield payment for the third period of coupon payments.
2. Based on orders forwarded by debenture holders or their plenipotentiaries to the Issuer or a paying agent and accepted by them exclusively within 14 days, starting from the date of coupon yield payment for the seventh period of coupon payments.
3. Based on orders forwarded by debenture holders or their plenipotentiaries to the Issuer or a paying agent and accepted by them, if the Issuer rejects two successive coupon payments 
on expiry of at least one week from the date of the second refusal to pay coupon yield.
4.  Based on orders forwarded by debenture holders or their plenipotentiaries to the Issuer or a paying agent and accepted by them, if the Issuer refuses to pay coupon yield for one period of coupon payments within the two successive periods of coupon payments, on expiry of at least one week from the end date of the second successive period of coupon payments.
5.  Based on orders forwarded by debenture holders or their plenipotentiaries to the Issuer or a paying agent and accepted by them, if:
the CEO (the sole executive body of the Issuer) functioning at the time of approval of the issue prospectus of bonds, series 001, is replaced;  
share of the CEO (the sole executive body of the Issuer) functioning at the time of approval of the issue prospectus of bonds, series 001, in the charter capital of the Issuer falls below 25% plus one share of the charter capital of the Issuer.
Information about the aforementioned facts, which are identified by the current legislation as material facts related to financial and economic activity of the Issuer, shall be disclosed by the Issuer within 5 days from the moment of their occurrence.  This information shall be disclosed in the “Appendix to the “Bulletin of the Federal Securities Market Commission of Russia” (“Vestnik”) and other mass media, which most bond owners of the Issuer have access to, as well as in the Internet; the information shall also be disclosed to the paying agent (paying agents) and to the registrar of debenture holders.
Information about the aforementioned facts, which are not identified by the current legislation as material facts related to financial and economic activity of the Issuer, shall be disclosed by the Issuer within 5 days from the moment of their occurrence.  This information shall be disclosed through mass media, which most bond owners of the Issuer have access to, and in the Internet; the information shall also be disclosed to the paying agent (paying agents) and to the registrar of debenture holders.
At that debenture holders shall declare advanced redemption of bonds within 15 calendar days from the moment, when the corresponding information is published.
6. Nominal value and accrued coupon yield on bonds called ahead of schedule, by means of a lumpsum transfer of funds effected by the Issuer in order to redeem bonds and pay off the accrued coupon yield, shall be paid, and the list of debenture holders or their plenipotentiaries that placed claims, containing exhaustive information, shall be transferred to the paying agent:   
on the date of the fourth coupon payment, if situation described in p.1 arises;
on the date of the eighth coupon payment, if situation described in p.2 arises;
on the date of payment of a regular coupon yield, if situation described in p.3, 4, 5 arises. 
If the aforementioned days happen to be days off, holidays, or days when no bank payments are made, payment of the amount due will be effected on the first business day following the days indicated.  Debenture holder is not entitled to interest or any other compensation for such delay in payment.

Security for bonds issued:
Not available.

Yield on bonds of the issue, paid during the reporting quarter: 
  funds: RUR 3 451 000 for 700000 bonds
coupon yield in the second period of coupon payments 

  other property equivalents: RUR 0

  other rights of property and/or other receipts: RUR 0

Additional material information about securities issued: 
none available

Issue No.: 2
Series:  002
Type: interest bearing securities
Form of securities: documentary bearer securities 
Nominal value of one security in the issue: RUR 1000 

Total number of securities in the issue: 550 000
Total amount of the issue: 550 000 000

Information about state registration of the issue: 
Registration date: 15.11.2001
Registration No.: 4-02-30306-D
State registration authority: Federal Securities Market Commission of Russia 

Placement method:  open subscription
Placement period: from 12.02.2001 to 13.02.2001

Current status of the issue: placement is finalized
Number of securities actually placed in accordance with the registered report on outcomes of the issue: 550 000

Information about state registration of the report on outcomes of the issue:
Registration date: 4.03.2002
State registration authority: Federal Securities Market Commission of Russia 

Limitations in circulation of securities issued (if any): 
None.

Market data on securities issued: 
Off-board market, primary market within the trading system of the Moscow Interbank Currency Market.
Period of circulation of bonds issued: from 5.03.2002 to 10.02.2004

Yield on bonds issued:
percentage of nominal value:  An interest (coupon) yield is guaranteed on bonds issued, the yield is paid to the bond owners in the form of 8 (eight) coupon payments (coupons).  Interest yield is paid each period of coupon payments that consists of 91 (ninety-one) days, calculated on the basis of 365 (three hundred and sixty-five) days a year.
Dates of coupon payments are calculated using the following formulations:
 Т1=Т0+91, Т2=Т0+182, Т3=Т0+273,Т4=Т0+364,Т5=Т0+455,Т6=Т0+546,Т7=Т0+637,Т8=Т0+728,
where T1 is the date of the first coupon payment, T2 is the date of the second coupon payment, T3 is the date of the third coupon payment, T4 is the date of the fourth coupon payment, T5 is the date of the fifth coupon payment, T6 is the date of the sixth coupon payment, T7 is the date of the seventh coupon payment, T8 is the date of the eighth coupon payment, T0 is the starting date for placement of bonds issued.
If the date of bond coupon payment happens to be a day off – whether a public day off, or a day when no payment transactions are made - payment of the amount due will be effected on the first business day following the day off.  Bond owner is not entitled to interest or any other compensation for such delay in payment.

a)  Estimation of interest rate on the first coupon.

Interest rate on the first coupon is defined by means of a tender among potential bond purchasers, which is held on the first date of placement of bonds issued.   Three business days prior to the date of tender, announced in order to define the interest rate on the first bond coupon, members of the stock market section of the Closed joint stock company “Moscow Interbank Currency Market” (hereinafter referred to as the MICM) collect provisional applications submitted by potential purchasers.  Provisional applications are collected until the day of the tender.  On the date, when the tender is held in order to define the interest rate on the first coupon, members of the MICM stock market section submit applications for tender using the MICM trading system, both at their own expense and at the expense and on behalf of their customers.  Application deadline for the tender held in order to define the interest rate on the first coupon is fixed by the MICM.  Members of the MICM stock market section forward applications for purchase of bonds to the Underwriter, indicating the following material terms and conditions:
a.1)  Purchasing price – 100% of nominal value;
a.2)  Number of bonds that the potential purchaser wishes to buy, if the issuer fixes the interest rate on the first coupon exceeding or equal to the acceptable interest rate indicated in the application;
a.3)  The amount of the interest rate on the first coupon, acceptable to the investor.  The term “the amount of acceptable interest rate” is understood as the amount of interest rate on the first coupon, at which the potential investor would be eager to purchase the number of bonds indicated in the application at the price of 100% of nominal value, if the rate be declared by the issuer.  The amount of the acceptable interest rate should be expressed as interest per annum to within one hundredth;
In addition to submission of applications with the aforementioned terms and conditions, funds should be registered in the amount sufficient to effect total payment for bonds indicated in applications, including MICM commission.
Applications, where one or more of the a.m. material terms and conditions do not meet the requirements indicated in paragraphs a.1-a.3, as well as applications that are not backed with corresponding funds, are not admitted to tender announced in order to define the interest rate. 
On expiry of collection period for applications to tender the member of the MICM stock market section cannot withdraw applications to purchase of bonds.
On expiry of collection period for applications to tender announced in order to define interest rate on the first coupon MICM draw up a consolidated register of applications to the tender and pass this register to the issuer and/or distributor of bonds, namely the Closed Joint Stock Company “Investment company “Troika Dialog” (location (legal address):  4/10 Sadovaya-Triumphalnaya Street, Moscow 103009, postal address:  4 Romanov pereulok, Moscow 103009, license of the professional securities market participant No.000-02151-111400, issued by the Federal Securities Market Commission of Russia, May 31, 1999, expiry date:  15.04.2003 (hereinafter referred to as the Underwriter).  
Based on the analysis of applications submitted to tender the issuer takes its decision on the amount of interest rate on the first coupon and notifies the Underwriter and MICM of the decision taken in a written form.
The Underwriter publishes an announcement about the amount of interest rate on the first coupon through the MICM trading system by e-mailing all members of the MICM stock market section.

b)  Estimation of interest rate on the second, third, fourth, fifth, sixth, seventh and eighth coupons.

Interest rates on the second, third, fourth, fifth, sixth, seventh and eighth coupons (R2,R3,R4,R5,R6,R7 and R8) are calculated using the following formulation:
 Rj=Yj+(R1-Y1)   
where
R1 is the interest rate on the first coupon defined as a result of tender;
Y1 is the weighted average yield to maturity of federal loan bonds calculated on FLB SU27011RMFS4, SU27012RMFS2, SU28001RMFS4, SU27015RMFS5 for ten business days preceding the date of tender.
Yj is the weighted average yield to maturity of federal loan bonds calculated on FLB SU27011RMFS4, SU27012RMFS2, SU28001RMFS4, SU27015RMFS5 for ten business days preceding the date of estimation of the coupon amount, or the rate corresponding to the rate for the preceding coupon period, if no public sale of the aforementioned FLB is held by the MICM at the moment of estimation of “j” coupon (j=2,3,4,5,6,7,8).
The date of estimation of coupon amount shall be the fifteenth calendar day prior to the date of commencement of the corresponding coupon period.
To calculate the weighted average yield the following Federal Loan Bonds (hereinafter referred to as the List of bonds) should be used: FLB series SU27011RMFS4 (redemption date:  08.10.03, declared volume of issue:  RUR 10 billion) , SU27012RMFS2 (redemption date:  19.11.03, declared volume of issue:  RUR 17.6 billion), SU28001RMFS4 (redemption date:  21.01.04, declared volume of issue:  RUR 10 billion), SU27015RMFS5 (redemption date:  04.02.04, declared volume of issue:  RUR 5 billion).
If redemption of one or several of the aforementioned bonds is due, these bonds are not taken into account for calculation of the weighted average yield.
Weighted average yield on FLB is calculated using the formulation:
Y(j) =  (A1*V1 + A2*V2 +… + AN*VN)/(V1 + V2 + … + VN),
where
Y(j) is the weighted average yield on the aforementioned FLB for the “j” period of coupon payments, j =   2,3,4,5,6,7,8; 
N is the number of days in the Period of yield calculation for the “j” period of coupon payments, during which transactions with bonds indicated in the List of bonds (maximum 10) were registered on MICM;    
A1,A2…AN is a daily weighted average yield to maturity of all bonds indicated in the aforementioned list and marketed during 1,2…N days of the Period of yield calculation for the “j” period of coupon payments;
V1,V2…VN is a daily turnover in RUR of all bonds,  indicated in the aforementioned list and marketed during 1,2…N days of the Period of yield calculation for the “j” period of coupon payments.
Daily weighted average yield to maturity (Ai) and daily turnover in RUR (Vi) of all marketed bonds indicated in the aforementioned list are calculated according to the formulations:
Ai =  (Y1i*S1i + Y2i*S2i + … + YPi*SPi)/(S1i + S2i + … + SPi),
Vi =  S1i + S2i + … + SPi,
where
i is the number of the day in the Period of yield calculation, for which the calculation is made, i=1,…N;
P is the number of bonds indicated in the List of bonds, which were marketed during the Period of yield calculation for the “j” period of coupon payments (4 at maximum);
Y1i,Y2i…Ypi is yield to maturity calculated on the basis of average weighted prices effective on the “i” day for each marketed series of bonds listed in the aforementioned List of bonds;
S1i,S2i…SPi is turnover in RUR of each bond indicated in the aforementioned List of bonds and marketed on the “i” day. 

c) The amount of payment due on each coupon per one bond of the issue is calculated using the following formulation:

                                                  Nom * Rj * [T(j) - T(j-1)]
                                       Кj = ----------------------------------
                                                      100 % * 365

where
j is the number of period of coupon payments, j = 1,2,3,4,5,6,7,8;
Kj is the amount of coupon payment per each bond issued;
Nom is the nominal value of one bond in the issue;
Rj is the amount of interest rate for the “j” coupon, as defined in accordance with the methods described above;
T(j -1) is the first date of the “j” period of coupon payments;
T(j) is the end date of the “j” period of coupon payments.
The amount of coupon payment is calculated to within one kopeck.

d) The amount of accrued coupon yield (ACY) per one bond in the issue on any date between the first date of placement and the date when all issued bonds are redeemed, is calculated according to the formulation:
 
                                                  Nom * Rj * [T - T(j-1)]
                                     ACY =-------------------------------           
                                                          100 % * 365

where
Nom is the nominal value of one bond in the issue;
Rj is the amount of interest rate for the “j” coupon, as defined in accordance with the methods described above;
T(j -1) is the first date of the “j” period of coupon payments;
T is the current date.
The amount of accrued coupon yield is calculated to within one kopeck.  For calculation purposes figures should be approximated according to the rules of mathematical approximation. 

  other property equivalents of one bond (RUR): none 
  other receipts and rights to bonds issued: none 
Redemption period:  from February 10, 2004 to February 10, 2004
Redemption procedures, terms and conditions:  Redemption of bonds and payment of coupon yield on bonds shall be effected in currency of the Russian Federation, in the form of a non-cash payment to depositors of the NDC in favor of bond owners.   Bond owner, if not a depositor of the NDC, should authorize a bond holder – a depositor of the NDC – to receive yield and redemption payments on bonds. 
Redemption of bonds and payment of coupon yield on bonds shall be effected by a paying agent on behalf of the issuer.  Duties of the paying agent are delegated to the Closed Joint Stock Company “Reiffeisenbank Austria” – location (legal address) 17/1 Troitskaya Street, Moscow 129090, Russia, postal address: 17/1 Troitskaya Street, Moscow 129090, Russia, General license No.3292, issued by the Central Bank of Russia 09.02.2001 (hereinafter referred to as the “Paying agent”).  The issuer can appoint additional paying agents and cancel such appointments.  A formal notice of the aforementioned actions shall be published by the issuer in the “Vedomosti” newspaper at least 10 (ten) business days prior to the date of making or canceling such appointments.
Bonds shall be redeemed at their nominal value as of the date Тп=Т0 + М, where Tn is the date of redemption of bonds, T0 is the first day of placement of bonds issued, M = 728 (seven hundred and twenty-eight) calendar days.
If the date of redemption of bonds happens to be a day off - whether a public holiday, or a day when no payment transactions are made - payment of the amount due will be effected on the first business day following the day off.  Bond owner is not entitled to interest or any other compensation for such delay in payment.
Bonds shall be redeemed and/or coupon yield on bonds shall be paid to depositors of NDC in favor of bond owners, that can be identified as such as of the end of the NDC operational day preceding the seventh business day prior to the date of redemption of bonds and/or payment of coupon yield on bonds (hereinafter referred to as “the date of drawing up bond holders’ list”).
At least 3 (three) business days prior to the date when bonds should be redeemed and/or the date when coupon yield should be paid, NDC shall provide the Issuer with a list of bond holders as of the Date of drawing up bond holders’ list, indicating the following data:
a)	full name of bond holder;
b)  number of bonds taken stock of on depo accounts belonging to the bond holder concerned;
c)  bond holder’s location and postal address;
d)  bond holder’s bank account details, i.e.:
-	bond holder’s  settlement account
-	 personal taxpayer identification number of bond holder;
-	name of bond holder’s bank;
-	loro account of bond holder’s bank;
-	bank identification code of bond holder’s bank.
It is the bond holder’s sole responsibility to make sure that the bank account details reported  to the NDC remain complete and valid.  If the bond holder fails to report the aforementioned bank details to the NDC in due time, the NDC and the Issuer accept no responsibility for delayed payments on bonds.
The Issuer shall transfer required funds to the paying agent at least two business days prior to the date of redemption and/or the date of coupon yield payment.  The paying agent shall calculate the amounts due to each bond holder and transfer required funds to the accounts of bond holders in favor of bond owners on the date of redemption of bonds and/or the date of coupon yield payment, notifying the NDC of the effected payments on the following business day at the latest.
If a single person is authorized by several bond owners to receive redemption amounts and/or coupon yield on bonds, a total amount without breakdown by bond owners is transferred to such person.

The date when advanced redemption may be initiated:  Bond owners are entitled to advanced redemption.    The date of advanced redemption is February 11, 2003.
Advanced redemption procedures, terms and conditions:  Advanced redemption of bonds is effected at the rate of nominal value.  Accrued interest (coupon) yield is paid simultaneously.
If bond owners wish to submit bonds for advanced redemption, bond owners or nominal bond holders authorized to submit bonds for advanced redemption shall forward to the NDC a written application to advanced redemption of bonds.  Such application can be accepted only during the Period of submission of bonds for advanced redemption, it must contain all data indicated in the List of bond holders and must meet the NDC requirements.  Documents certifying that signatories of applications are authorized to act on behalf of the applicant should be enclosed to the application to advanced redemption of bonds.  If an applicant is a nominal bond holder, documents confirming that the nominal holder is authorized to submit bonds for advanced redemption must be enclosed to the application to advanced redemption of bonds. 
The term “the Period of submission of bonds for advanced redemption” is understood as a period of 14  (fourteen) calendar days that precede the tenth business day prior to the date of advanced redemption. 
Starting from the moment, when the NDC accept applications of owners or nominal holders to advanced redemption of bonds, no transactions with bonds submitted for advanced redemption can be carried out, except transactions associated with advanced redemption of bonds. 
Within 3 business days following the end date of the Period of submission of bonds for advanced redemption the NDC shall present to the issuer a list of bond holders that submitted applications to advanced redemption of bonds during the Period of submission of bonds for advanced redemption.  This list shall contain all data indicated in the List of bond holders, i.e.:
a)	full name of bond holder;
b)	number of bonds subject to advanced redemption;
c)	bond holder’s location and postal address;
d)	bond holder’s bank account details, namely:
-	bond holder’s settlement account;
-	personal taxpayer identification number of bond holder;
-	name of bond holder’s bank;
-	loro account of bond holder’s bank;
-	bank identification code of bond holder’s bank.
Advanced redemption of bonds shall be effected and yield on bonds shall be paid to the NDC depositors in favor of bond owners. 
It is the bond holder’s sole responsibility to make sure that the bank account details reported  to the NDC remain complete and valid.  If the bond holder fails to report the aforementioned bank details to the NDC in due time, the NDC and the Issuer accept no responsibility for delayed payments on bonds.
Bonds submitted for advanced redemption are redeemed by the Paying agent on behalf of the Issuer on the Date of advanced redemption of bonds.  The Paying agent shall inform the Depositary of the effected payments on the following business day at the latest.
Funds that enable the Paying agent to effect advanced redemption of bonds shall be transferred by the Issuer to the account of Paying agent at least 2 (two) business days prior to the Date of advanced redemption of bonds.
If the date of advanced redemption of bonds happens to be a day off - whether a public holiday, or a day when no payment transactions are made - the amount due shall be paid on the first business day following the day off.  Bond owner is not entitled to interest or any other compensation for such delay in payment.

Security for bonds issued:
Not available.

Yield on bonds of the issue, paid during the reporting quarter: 
funds: RUR 0
none
  
other property equivalents: RUR 0
none
  
other rights of property and/or other receipts: RUR 0
none

Additional material information about securities issued: 
none available

D.  Additional information on securities of the issuer.
58, 59, 60.  Rights granted to shareholders of the issuer.  Dividends on shares of the issuer.  
58.1
Category of shares:  ordinary
Form of shares: registered, non-documentary 
Full description of category/type of shares: ordinary registered non-documentary 
Rights granted to the owner of this category (type) or shares:
Each ordinary registered share gives the shareholder – its owner – equal rights.  The shareholder has a right to participate in general shareholders’ meetings and vote on all issues that fall under the competence of the general meeting.  Upon request of the shareholder the company should inform the shareholder, whether it is listed in the register of shareholders that have a right to participate in the general shareholders’ meeting.  Shareholders can be elected to control and supervision authorities of the company, they are entitled to dividends, and if the company is liquidated they have a right to receive a portion of its property, in compliance with the charter of the Issuer.  Shareholders have all rights stipulated by the law of the Russian Federation.  Shareholders of the company that own in the aggregate at least 2% of voting shares of the company, within 30 days after the end date of fiscal year have a right to put on the agenda of the annual meeting a maximum of two issues, nominate candidates to the Board of directors and audit committee of the company and offer draft amendments and addenda to the Charter of the company or a revised draft Charter.  Shareholders of a subsidiary have a right to demand that the parent company should compensate for losses incurred by such subsidiary and caused by the parent company.  Shareholders of a closed company have a priority right to purchase shares sold by other shareholders of the company, at the price offered to a third party.  In lieu of resolution to reduce the charter capital of the company or to liquidate the company due to reduction of net asset value below the minimum charter capital fixed in the federal law “About Joint Stock Companies”, Article 26, shareholders of the company have a right to demand liquidation of the company by order of the court.  If requested by shareholders that voted against or did not vote on the issue of placement of shares and securities  convertible to shares by closed subscription, the joint stock company is obliged to redeem all shares held by such shareholders in compliance with the federal law “About Joint Stock Companies”.  Resolution to place shares and securities convertible to shares by open subscription, which stipulates non-cash payments on shares, should also provide for cash payments, at discretion of investors.  The issuer shall allow its shareholder access to documents listed in the federal law “About Joint Stock Companies”, Article 89, paragraph 1 (Charter, regulations on branch establishments, accounts, lists of affiliated companies, etc.).  If requested by a shareholder, the registrar of shareholders of the company must confirm its rights on shares by drawing up an extract from the register of shareholders of the company, which in itself is not a security.  In order to inform and warn shareholders about registered and possible law infringements on securities market the federal executive authorities that control securities market issue an official publication, where they place information about:
-  cancellation or arrest of a license for professional activities on securities market; 
-  self-controlled organizations of professional participants;
-  administrative penalties imposed by the federal executive authorities that control securities market;
-  court decisions on lawsuits initiated by the federal executive authorities that control securities market.

Dividends on this category (type) of shares:
Period: 1998.
Dividend rate fixed per one share (RUR):  2.25.
Total amount of dividends charged on this category (type) of shares (RUR):  2 602 026
Total amount of dividends actually paid on this category (type) of shares (RUR): 2 578 624.25

Period: 1999.
Dividend rate fixed per one share (RUR): 0.5.
Total amount of dividends charged on this category (type) of shares (RUR): 3 501 535.5
Total amount of dividends actually paid on this category (type) of shares (RUR): 3 310 321

Period: 2000.
Dividend rate fixed per one share (RUR): 0.5.
Total amount of dividends charged on this category (type) of shares (RUR): 4 182 454
Total amount of dividends actually paid on this category (type) of shares (RUR): 3 441 642

Dividend rate fixed for this category (type) of shares that are not yet due (RUR): 0

61. Limitations in circulation of securities. 
See paragraphs 56 and 57.

62.  Additional material information about securities of the issuer.
No additional material information about securities of the issuer is available.

APPENDIX
Accounts
for 1999
N/A

ACCOUNTING POLICY
                                                                                                                      APPROVED 
                                                                                                                     Chief Executive Officer
                                                                                                                     T. R. Goryayev

                                                                                                                     December 30, 1998.

   REGULATIONS ON ACCOUNTING POLICY OF JSC “URALSKIYE SAMOTSVETY”
1999

1 GENERAL PROVISIONS
1.1 Accounting practice of JSC “Uralskiye Samotsvety” meets the requirements indicated in Regulations on bookkeeping and accounts in the Russian Federation and other normative acts, subject to the subsequent amendments and addenda thereto.
1.2 Enterprise accounting is performed by the accounts department headed by the Chief Accountant. 
1.3 Property accounting and economic transactions accounting take the form of a double entry bookkeeping in compliance with the chart of accounts and subaccounts of the company.  Appendix No.1.
1.4 The joint stock company practices a logbook-and-order system of economic transactions accounting with partially automated centralized accounting department.
1.5  No separate balance is provided for isolated structural subdivisions.
1.6  Accounting year is understood as a period from January 1 to  December 31 inclusive.  Quarterly reporting means interim reporting formed as a progressive total starting from the opening of the year.
Annual reporting must be published in the print medium “Oblastnaya Gazeta” of Ekaterinburg, as fixed by the shareholders’ meeting.

2. APPROVED ACCOUNTIING METHODS 

2.1 The company estimates property, liabilities and economic transactions in rubles and kopecks. 
2.2 Current costs, capital investments and financial investments are registered separately. 
2.3  Fixed assets are registered in the books at acquisition cost.
Total value of capital assets of the company is absorbed by a linear charge of depreciation (amortization), based on acquisition cost of the object of capital assets and amortization norms approved by the Resolution of the Council of Ministers of the USSR No.1072 dated 22.10.90. 
2.4 Objects of little value and objects with short lifetime of the company include material values and objects that serve less than one year, irrespective of their value, and objects of value within the limits fixed in normative acts per unit based on the acquisition price, irrespective of their service life.
Cost of objects of little value and objects with short lifetime in service is absorbed by charging depreciation at the rate of 100% of value, as the goods are delivered from the warehouse and put into service.  Objects of little value that cost one twentieth of the fixed limit per unit at maximum are charged off as they are put into service.
To secure integrity of objects of little value and objects with short lifetime in service, movement of these should be controlled by materially responsible employees in warehouses and structural units.
2.5  Intangible assets accounting, except trademarks, is performed based on the account 05 “Amortization of intangible assets”.  
2.6  Amortization of intangible assets during the fixed period of effective use is charged at the rate of quotas calculated on the basis of the period of effective use.
2.7 Trademark accounting is performed without the use of the account 05 “Trademark value” and is written off proportionally to the quantity of products.
2.8  Actual cost of material resources that are written off for production, is calculated based on the weighted average cost.
2.9  Account 16 allows to record expenditures on purchase of raw materials; accruing amounts are written off upon additional calculation.
2.10  Goods purchased for distribution and sales are registered at acquisition value.
2.11 Traditional calculation variant of production costs accounting is used to classify production costs, calculate product cost and form production results.   
Manufacturing costs, general economic expenditures and auxiliary production costs are allocated between objects of calculation at the end of reporting period proportionally to wages fund of primary production personnel, and are then written off to the account 20 “Basic production”.  
2.11  Production in progress is taken account of at the value of materials and semi-finished products.
2.12  Finished products are shown in the balance at the actual production cost.
2.13  Commercial expenses (account 43, as calculated for the preceding month) are absorbed by cost of products sold during the current month.
2.14  Deferred expenses are shown in the records as a separate entry and are attributed to production (marketing) costs for the period, which the former belong to.
2.15 Calculation period and the period for identification of financial results shall be the end of the reporting quarter.
2.16  For long-terms works and services (those covered by contracts of service valid for over one year) return on works performed and financial results are calculated after total completion of works under the contract.
2.17  Accounts receivable with expired limitation period (over 3 years) and other debts that are unlikely to be collected shall be written off based on results of stock-taking and resolution of the manager, at that the amounts indicated shall be attributed to financial results.
2.18  Net profit of the company is allocated and used in compliance with resolution of the shareholders’ meeting.
2.19 Write-off of exchange difference on transactions in foreign currency made during the year is shown in the account 83 “Deferred income”, at that at the end of the accounting year the total amount of exchange difference is attributed to financial results – account 80 “Profits and losses”. 
2.20  In order to ensure reliable bookkeeping and accounting data, inventory of property and financial obligations shall be made as follows: 
-  capital assets – every three years,
-  objects of little value and objects with short lifetime – once a year,
-  raw materials and stuffs – once a year,
-  long-term financial investment – once a year.
Results are shown in the reporting period, when inventory was made.
2.21  Loans and credits obtained are evaluated taking into account interest payable as of the end of the reporting period.
2.22  No reserve for dubious debts is provided.
2.23  Expenses on maintenance of capital assets are included in prime cost, when maintenance is provided.
2.24  Manufacturing costs for export products are calculated proportionally to the share of export shipment in total deliveries.
2.25  Travelling expenses shall be limited to the level indicated in the Appendix No.2.
2.26  Auxiliary production expenses (canteen, medical aid, sport complex, recreation center) are registered on the account 29 “Auxiliary production and facilities”.
2.27 Estimate of representation expenses, advertising costs, expenses connected with training of personnel shall be approved in compliance with the Appendices No.3, 4, 5.
2.24  Reporting period for the sums paid out on account shall be 30 days.
2.28  Permanent committees shall be approved in compliance with the Appendices No.6, 7.

3. TAX POLICY

3.1 Proceeds of sale of goods (works, services) shall be calculated when the former are paid:  for clearing transactions – upon receipt of funds to accounts of bank establishments, for cash payments – upon receipt of cash by cash department.
3.2  For isolated structural units share in profit is calculated based on the average weight of quantity and average weight of cost of major production facilities for the organization as a whole.

4. ACCOUNTING PROCEDURES 

4.1 Bookkeeping and fiscal accounting are performed by the accounting department. 
4.2 In-house accounting is performed in compliance with the Appendix No.3.

 

BALANCE-SHEET
	Codes	
Form No. 1 - classifier of management documents (ОКУД)	0710001	
as of December 31, 1999	Date (year, month, date)				
Organization: оpen joint stock company Kontsern “Kalina”  	classifier of enterprises and organizations (ОКПО)	00333859	
Industry (type of activity): production	branch classifier (ОКОНХ)	18131	
Organizational and legal form: open joint stock company	classifier of organizational and legal forms (КОПФ)	 47	
State property control authority: 	classifier of enterprises and organizations (ОКПО)		
Units: thousand RUR	system of units of measure (СОЕИ)		
Hash total		

ASSETS	Line code	As of the beginning of the reporting period	As of the end of the reporting period	
1	2	3	4	
I. LONG-TERM ASSETS				
Intangible assets (04, 05)	110	942	1 063	
organizational costs	111	-	-	
patents, licenses, trademarks (service marks), other rights and assets similar to those mentioned 	112	-	-	
Fixed assets (01, 02, 03)	120	83 218	141 798	
land and natural resources used	121	-	-	
buildings, constructions, machinery and equipment	122	83 218	141 798	
Construction in progress (07, 08, 61)	130	929	11 030	
Long-term financial investment (06,82)	140	780	11 555	
investment in subsidiaries	141	-	-	
investment in associates	142	-	-	
investment in other organizations	143	267	11 042	
loans granted to organizations for a term over 12 months 	144	-	-	
other long-term financial investments	145	513	513	
Other long-term assets	150	-	-	
TOTAL for section I	190	85 869	165 446	
II. CURRENT ASSETS				
Inventory	210	98 991	545 184	
raw materials, stuffs and other similar valuables (10, 15, 16)	211	62 061	268 069	
livestock being bred and fed (11)	212	-	-	
objects of little value and with short lifetime (12, 13, 16)	213	1 367	-	
production-in-progress costs (costs of circulation) (20, 21, 23, 29, 30, 36, 44)	214	10 578	38 746	
finished products and goods for resale (40, 41)	215	22 973	235 370	
goods shipped (45)	216	1 177	-	
deferred expenses (31)	217	150	1 754	
other inventory and expenses	218	685	1 245	
Value-added tax on purchased valuables (19)	220	3 435	14 750	
Accounts receivable (payments expected no sooner than on expiry of 12 months after the reporting date)   	230	-	-	
buyers and customers (62, 76, 82)	231	-	-	
bills receivable (62)	232	-	-	
arrears of subsidiaries and associates (78)	233	-	-	
advances paid (61)	234	-	-	
other debtors 	235	-	-	
Accounts receivable (payments expected within 12 months after the reporting date)	240	148 563	477 900	
buyers and customers (62, 76, 82)	241	146 238	411 134	
bills receivable (62)	242	398	-	
arrears of subsidiaries and associates (78)	243	-	-	
arrears of contributions to the charter capital to be paid by participants (founders) (75)	244	-	-	
advances paid (61)	245	-	63 358	
other debtors 	246	1 927	3 408	
Short-term financial investment (56,58,82)	250	1 301	10 093	
investment in associates 	251	-	-	
company shares purchased from shareholders 	252	-	-	
other short-term financial investments	253	-	10 093	
Funds	260	7 211	21 705	
cash (50)	261	574	106	
settlement accounts (51)	262	6 615	17 757	
foreign currency accounts (52)	263	16	692	
other funds (55, 56, 57)	264	6	3 150	
Other current assets	270	5	-	
TOTAL for section II	290	259 506	1 069 632	
III. LOSSES				
Uncovered losses of previous years (88)	310	-	-	
Uncovered losses of the accounting year	320	-	-	
TOTAL for section III	390	-	-	
BALANCE (total for the lines 190 + 290 + 390)	399	345 375	1 235 078	

LIABILITIES	Line code	As of the beginning of the reporting period	As of the end of the reporting period	
1	2	3	4	
IV. CAPITAL AND RESERVES				
Charter capital (85)	410	144	104 081	
Additional capital (87)	420	87 196	87 193	
Reserve capital (86)	430	36	7 821	
reserve funds set up in compliance with law 	431	-	-	
reserves set up according to constituent documents 	432	36	7 821	
Accumulation funds (88)	440	16 241	5 561	
Social fund (88)	450	-	3 270	
Special-purpose funding and receipts (96)	460	-	-	
Retained earnings of previous years (88)	470	107 079	-	
Retained earnings of the accounting year 	480	-	408 942	
TOTAL for section IV	490	210 696	616 868	
V. LONG-TERM LIABILITIES				
Borrowed funds (92, 95)	510	-	-	
bank credits with repayment period over 12 months after the reporting date  	511	-	-	
other loans with repayment period over 12 months after the reporting date  	512	-	-	
Other long-term liabilities	520	-	-	
TOTAL for section V	590	-	-	
VI. CURRENT LIABILITIES				
Borrowed funds (90, 94)	610	-	12 766	
bank credits	611	-	12 766	
other loans	612	-	-	
Accounts payable 	620	129 261	605 371	
suppliers and contractors (60, 76)	621	68 618	418 188	
bills payable (60)	622	-	-	
amounts payable to subsidiaries and associates (78)	623	-	-	
wages and salaries outstanding (70)	624	3 895	8 108	
social insurance and security payments outstanding (69)	625	2 301	4 604	
debts to the budget (68)	626	54 398	95 559	
advances received (64)	627	-	28 066	
other creditors	628	49	50 846	
Dividend payments (75)	630	-	73	
Deferred income (83)	640	-	-	
Consumption funds (88)	650	-	-	
Reserves for future expenses and payments (89)	660	-	-	
Other current liabilities	670	5 418	-	
TOTAL for section VI	690	134 679	618 210	
BALANCE (total for the lines 490 + 590 + 690)	699	345 375	1 235 078	

PROFIT AND LOSS STATEMENT
	Codes	
Form No. 2 - classifier of management documents (ОКУД)	0710002	
as of December 31, 1999	Date (year, month, date)				
Organization: оpen joint stock company Kontsern “Kalina”  	classifier of enterprises and organizations (ОКПО)	00333859	
Industry (type of activity): production	branch classifier (ОКОНХ)	18131	
Organizational and legal form: open joint stock company	classifier of organizational and legal forms (КОПФ)	 47	
State property control authority: 	classifier of enterprises and organizations (ОКПО)		
Units: thousand RUR	system of units of measure (СОЕИ)		
Hash total		

on shipment
Parameter	Line code	Figures for reporting period	Figures for analogous period of the previous year	
1	2	3	4	
(Net) Proceeds of sale of goods, products, works, services (less value-added tax, excises and similar compulsory payments)	010	2 089 671	476 401	
Cost of sale of goods, products, works, services	020	1 393 876	265 267	
Commercial expenses	030	70 655	17 679	
Administrative costs	040	-	-	
Profit (loss) on sales (lines (010 – 020 – 030 - 040))	050	625 140	193 455	
Interest receivable	060	462	92	
Interest payable	070	-	-	
Income on participation in other organizations	080	-	-	
Other operating profit	090	743 758	6 186	
Other operating expenses	100	747 989	28 747	
Profit (loss) on financial and economic activity 
(lines (050 + 060 - 070 + 080 + 090 - 100))	110	621 371	170 986	
Other non-sales profit	120	2 987	4 560	
Other non-sales expenses 	130	5 950	960	
Profit (loss) of the reporting period (lines (110 + 120 - 130))	140	618 408	174 586	
Profit tax	150	163 829	64 510	
Diverted funds	160	13 638	2 927	
Retained profit (loss) of the reporting period (lines (140 - 150 - 160))	170	440 941	107 149	

CAPITAL MOVEMENT STATEMENT
	Codes	
Form No. 3 - classifier of management documents (ОКУД)	0710003	
as of December 31, 1999	Date (year, month, date)				
Organization: оpen joint stock company Kontsern “Kalina”  	classifier of enterprises and organizations (ОКПО)	00333859	
Industry (type of activity): production	branch classifier (ОКОНХ)	18131	
Organizational and legal form: open joint stock company	classifier of organizational and legal forms (КОПФ)	 47	
State property control authority: 	classifier of enterprises and organizations (ОКПО)		
Units: thousand RUR	system of units of measure (СОЕИ)		
Hash total		

Parameter	Line code	Balance as of the beginning of the year	Receipts of the accounting year	Expenditures (outlay) of the accounting year	Balance as of the end of the year	
1	2	3	4	5	6	
I. Equity capital						
Charter capital 	010	144	103 937	-	104 081	
Added capital	020	87 196	38	41	87 193	
Increment of value of property due to revaluation	021	-	-	-	-	
Reserve fund	030	36	7 785	-	7 821	
	040	-	440 941	31 999	408 942	
Retained earnings of previous years	050	107 079	-	107 079	-	
Accumulation funds - total	060	16 241	43 962	54 642	5 561	
	061	-	-	-	-	
Social fund	070	-	3 457	187	3 270	
	080	-	-	-	-	
Special-purpose funding and budget receipts	090	-	-	-	-	
Special-purpose funding and receipts from branch and interbranch off-budget funds - total	100	-	-	-	-	
Total for section I	130	210 696	600 120	193 948	616 868	
II. Other funds and reserves						
Consumption funds – total
	140	-	-	-	-	
	141	-	-	-	-	
Reserves for future expenses and payments - total	150	-	-	-	-	
	151	-	-	-	-	
Estimated reserves - total	160	-	-	-	-	
	161	-	-	-	-	
	170	-	-	-	-	
Total for section II	180	-	-	-	-	
ADDITIONAL INFORMATION
Parameter	Line code	Balance as of the beginning of the accounting year 	Balance as of the end of the accounting year 	
1	2	3	4	
1) Net assets	185	207 261	662 964	
		Budget	Branch and interbranch funds 	
		3	4	
2) Receipts for:				
capital financing 	191	-	-	
R&D financing 	192	-	-	
reimbursement of losses 	193	-	-	
social development	194	-	-	
other purposes	195	-	-	

FUNDS FLOW STATEMENT
	Codes	
Form No. 4 - classifier of management documents (ОКУД)	0710004	
as of December 31, 1999	Date (year, month, date)				
Organization: оpen joint stock company Kontsern “Kalina”  	classifier of enterprises and organizations (ОКПО)	00333859	
Industry (type of activity): production	branch classifier (ОКОНХ)	18131	
Organizational and legal form: open joint stock company	classifier of organizational and legal forms (КОПФ)	 47	
State property control authority: 	classifier of enterprises and organizations (ОКПО)		
Units: thousand RUR	system of units of measure (СОЕИ)		
Hash total		

Parameter	Line code	Total	Breakdown	
			day-to-day operations	investment activities	financial activities	
1	2	3	4	5	6	
1. Balance of funds as of the beginning of the year 	010	7 211	x	x	x	
2. Receipts of funds – total  	020	3 587 220	3 414 559	14 026	158 635	
including:						
proceeds of sale of goods, products, works and services 	030	2 039 729	2 039 729	x	x	
proceeds of sale of fixed assets and other property	040	159 857	1 945	26	157 886	
advance payments received from buyers (customers)	050	-	-	x	x	
budget allocations and other special-purpose funding	060	-	-	-	-	
gratis	070	-	-	-	-	
credits, loans	080	215 766	201 766	14 000	-	
dividends, interest on financial investment	090	749	x	-	749	
other receipts	110	1 171 119	1 171 119	-	-	
3. Funds allocated – total 	120	3 572 726	3 257 861	102 136	97 523	
including:						
payments for purchased goods, works, services	130	1 850 468	1 842 885	7 583	-	
remuneration of labor	140	79 382	x	x	x	
allocations to social needs	150	35 909	x	x	x	
imprest payments	160	13 575	13 544	31	-	
advance payments	170	-	-	-	-	
payment of share in construction	180	-	x	-	x	
payment for machinery, equipment and transport vehicles	190	78 712	x	78 712	x	
financial investment	200	109 847	-	14 146	95 701	
payment of dividends, interest	210	1 822	x	-	1 822	
budget payments	220	141 799	141 799	x	-	
payment of interest on credits and loans received	230	7 765	6 101	1 664	-	
other payments, transfers, etc.	250	1 253 447	1 253 447	-	-	
4. Balance of funds as of the end of the reporting period. 	260	21 705	x	x	x	
Additional information:
Cash receipts from the line 020 (except figures indicated in the line 100) – total	270	190 397	
including settlements:			
with legal entities	280	56 328	
with physical persons	290	134 069	
including those effected through:			
cash registers	291	134 069	
tight accounting forms	292	-	
Cash resources:			
received by cash department of the company from the bank 	295	54 382	
returned by cash department of the company to the bank 	296	150 138	

APPENDIX TO THE BALANCE-SHEET
	Codes	
Form No. 5 - classifier of management documents (ОКУД)	0710005	
as of December 31, 1999	Date (year, month, date)				
Organization: оpen joint stock company Kontsern “Kalina”  	classifier of enterprises and organizations (ОКПО)	00333859	
Industry (type of activity): production	branch classifier (ОКОНХ)	18131	
Organizational and legal form: open joint stock company	classifier of organizational and legal forms (КОПФ)	 47	
State property control authority: 	classifier of enterprises and organizations (ОКПО)		
Units: thousand RUR	system of units of measure (СОЕИ)		
Hash total		
1. FLOW OF BORROWED FUNDS 
Parameter	Line code	Balance as of the beginning of the accounting year	Receipts	Payments	Balance as of the end of the accounting year	
1	2	3	4	5	6	
Long-term bank credits 	110	-	-	-	-	
including those overdue	111	-	-	-	-	
Other long-term loans	120	-	-	-	-	
including those overdue	121	-	-	-	-	
Short-term bank credits	130	-	215 766	203 000	12 766	
including those overdue	131	-	-	-	-	
Employee bank credits	140	-	-	-	-	
including those overdue	141	-	-	-	-	
Other short-term loans	150	-	-	-	-	
including those overdue	151	-	-	-	-	
2. ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE
Parameter 	Line code	Balance as of the beginning of the accounting year	Liabilities arisen	Liabilities discharged	Balance as of the end of the accounting year	
1	2	3	4	5	6	
Accounts receivable:						
short-term	210	148 563	3 656 460	3 326 947	477 900	
including those overdue	211	-	-	-	-	
including those with overall duration over 3 months	212	-	-	-	-	
long-term	220	-	-	-	-	
including those overdue	221	-	-	-	-	
including those with overall duration over 3 months	222	-	-	-	-	
line 220
debts with payments expected no sooner than on expiry of 12 months after the reporting date	223	-	-	-	-	
Accounts payable:						
short-term	230	129 261	3 248 372	2 799 119	578 514	
including those overdue	231	-	-	-	-	
including those with overall duration over 3 months	232	-	-	-	-	
long-term	240	-	-	-	-	
including those overdue	241	-	-	-	-	
including those with overall duration over 3 months	242	-	-	-	-	
line 240
debts with payments expected no sooner than on expiry of 12 months after the reporting date	243	-	-	-	-	
Assurances:						
received	250	-	-	-	-	
including those received from a third party	251	-	-	-	-	
provided	260	-	-	-	-	
including those provided to a third party	261	-	-	-	-	
ADDITIONAL INFORMATION TO SECTION 2 
Parameter	Line code	Balance as of the beginning of the accounting year	Liabilities arisen	Liabilities discharged	Balance as of the end of the accounting year	
1	2	3	4	5	6	
1) Movement of bills						
Bills issued	262	-	-	-	-	
including those overdue	263	-	-	-	-	
Bills received	264	-	-	-	-	
including those overdue	265	-	-	-	-	
2) Accounts receivable in relation to products (works, services) furnished, at actual cost	266	23 943	1 363 805	1 211 556	176 192	
		Figures for the accounting year	Figures for the preceding year	
1	2	3	4	
3) Accounts receivable are written off on financial outcomes  	267	414	131	
including those written off on expiry of a certain time limit 	268	-	-	
4)	The list of debtor organizations with maximum debts
Identification of the Organization	Line code	Balance as of the end of the accounting year	
		total	including those with overall duration over 3 months	
1	2	3	4	
	270	-	-	

3. DEPRECIABLE PROPERTY
Parameter	Line code	Balance as of the beginning of the accounting year	Receipts (input)	Retired assets	Balance as of the end of the accounting year	
1	2	3	4	5	6	
I. INTANGIBLE ASSETS						
Rights to objects of intellectual (industrial) property 	310	-	-	-	-	
including the rights arising from:  						
author's agreements and other contracts that cover works of science, literature, art and  objects of interfacing rights, computer software, databases, etc.	311	378	234	-	612	
patents for inventions, industrial models, collections, certificates on utility models, trademarks and service marks, or license agreements covering their use	312	222	1 026	1 077	171	
know-how rights	313	-	-	-	-	
Rights to use isolated natural resources	320	-	-	-	-	
Organizational costs	330	-	-	-	-	
Business standing of the organization	340	-	-	-	-	
Other	349	624	14	-	638	
Total (lines 310 + 320 + 330 + 340 + 349)	350	1 224	1 274	1 077	1 421	
II. FIXED ASSETS						
Land and natural resources used	360	-	-	-	-	
Buildings	361	53 287	9 019	-	62 306	
Constructions	362	20 640	1 429	-	22 069	
Machinery and equipment	363	125 564	56 270	2 837	178 997	
Transport vehicles	364	2 564	1 044	30	3 578	
Industrial stock and household equipment 	365	1 717	1 738	36	3 419	
Draught livestock	366	-	-	-	-	
Productive livestock	367	-	-	-	-	
Perennial plants 	368	-	-	-	-	
Other fixed assets 	369	-	-	-	-	
Total (sum total for the lines 360 - 369)	370	203 671	69 500	2 903	270 368	
including:						
production assets	371	202 200	69 500	2 903	268 797	
non-production assets	372	1 471	-	-	1 471	
III. OBJECTS OF LITTLE VALUE AND OBJECTS WITH SHORT LIFETIME – TOTAL	380	5 422	10 774	7 294	8 902	
including:						
in stock	381	1 370	4 747	5 119	998	
in service	382	4 052	6 027	2 175	7 904	
ADDITIONAL INFORMATION TO SECTION 3 
Parameter	Line code	Balance as of the beginning of the accounting year	Balance as of the end of the accounting year	
1	2	3	4	
Line 371, columns 3 and 6:				
objects leased - total	385	40 321	40 321	
including:				
buildings	386	-	-	
constructions	387	-	-	
	388	40 321	40 321	
	389	-	-	
objects temporarily closed-down 	390	-	-	
Depreciable property wear:  				
intangible assets 	391	282	358	
fixed assets - total	392	120 453	128 570	
including:				
buildings and constructions	393	26 595	35 301	
machinery, equipment and transport vehicles	394	92 736	90 641	
other	395	1 122	2 628	
objects of little value and objects with short lifetime  	396	4 055	7 904	
Additional information:				
Results of indexation linked to revaluation of fixed assets:				
original cost  (replacement value)  	397	-	x	
wear	398	-	x	
Property in pledge	400	-	-	

4. FLOW OF FUNDS ALLOCATED TO LONG-TERM INVESTMENT AND FINANCIAL INVESTMENT  
Parameter	Line code	Balance as of the beginning of the accounting year	Accrual (generated funds)	Spending	Balance as of the end of the accounting year	
1	2	3	4	5	6	
Equity of the organization - total	410	3 100	68 837	63 173	8 764	
including:						
depreciation of fixed assets 	411	2 819	8 557	8 531	2 845	
depreciation of intangible assets 	412	281	77	-	358	
profit retained by the organization (accumulation fund)  	413	-	60 203	54 642	5 561	
other	414	-	-	-	-	
Outside funds – total 	420	-	-	-	-	
including:						
bank credits	421	-	14 000	14 000	-	
borrowed funds of other organizations 	422	-	-	-	-	
share in construction 	423	-	-	-	-	
funds drawn from the budget	424	-	-	-	-	
resources drawn from off-budget funds	425	-	-	-	-	
other	426	-	-	-	-	
Total equity and outside funds (sum total for the lines 410 and 420)  	430	3 100	68 837	63 173	8 764	
Additional information:						
Construction in progress	440	929	98 129	88 028	11 030	
Investment in subsidiaries  	450	-	-	-	-	
Investment in associates  	460	-	-	-	-	

5. FINANCIAL INVESTMENT
Parameter	Line code	Long-term	Short-term	
		as of the beginning of the accounting year	as of the end of the accounting year	as of the beginning of the accounting year	as of the end of the accounting year	
1	2	3	4	5	6	
Stocks and shares of other organizations	510	267	11 042	-	-	
Bonds and other debentures	520	-	-	-	-	
Loans granted	530	-	-	-	-	
Other	540	513	513	1 301	10 093	
Reference information:						
Bonds and other securities at market value	550	-	11 042	-	-	
6. EXPENDITURES OF THE ORGANIZATION
Parameter	Line code	Accounting year	Preceding year	
1	2	3	4	
Material costs	610	1 344 115	218 171	
Expenses on remuneration of labor	620	96 934	39 432	
Allocations to social needs	630	36 808	14 736	
Depreciation of fixed assets  	640	7 737	6 148	
Other expenditures	650	232 247	173 265	
Total for cost items	660	1 717 841	451 752	
Quantum of total expenditures, allocated to non-productive accounts	661	7 757	2 038	
7. INTERPRETATION OF CERTAIN PROFITS AND LOSSES 
Parameter	Line code	Accounting year	Preceding year	
		profit	loss	profit	loss	
1	2	3	4	5	6	
Penalties, default interests and forfeits  acknowledged or to be collected by court (arbitration court) decision 	710	416	241	282	-	
Profit (losses) of previous years	720	-	1 803	2 713	921	
Reimbursement of losses caused by failure to perform obligations or inappropriate discharge of obligations	730	-	-	-	-	
Exchange difference on transactions in foreign currency	740	17 318	35 394	21 865	27 935	
	750	-	-	-	-	
	760	-	-	-	-	
	770	-	-	-	-	

8. SOCIAL INDICATORS
Parameter	Line code	Amounts due according to estimates	Spending	Amounts transferred to funds 	
1	2	3	4	5	
Allocations to social needs:					
social insurance fund	810	5 790	799	4 750	
pension fund	820	28 702	-	24 899	
employment fund	830	1 523	-	1 333	
medical insurance  	840	3 629	-	3 259	
	
Average number of employees registered	850	1 846	
Cash payments and financial inducements, other than those granted for production of goods, works and services 	860	1 079	
Yield on shares and investment in property of organization  	870	2 602	

9. INFORMATION ON AVAILABILITY OF VALUABLES TAKEN STOCK OF 		ON THE OFF-BALANCE SHEET ACCOUNTS 
Description of the off-balance sheet account	Line code	As of the beginning of the year	As of the end of the year	
1	2	3	4	
Fixed assets rented (001)	910	-	-	
including those leased	911	-	-	
Material assets taken into safe custody (002)	920	-	-	
Goods taken on commission (004)	930	-	-	
Liabilities of insolvent debtors, written off as losses (007)	940	-	-	
Deterioration of housing resources (014)	950	37	52	
Deterioration of amenities, utilities and other similar objects (015)   	960	-	-	
	970	-	-	
	980	-	-	
	990	-	-	

Explanatory note to accounts for 1999
EXPLANATORY NOTE TO ANNUAL REPORT FOR 1999

1.  JSC “Uralskiye Samotsvety” was given the new name of JSC Kontsern “KALINA” in compliance with the order No.686 dated 30.11.99 of the State registration office of Ekaterinburg. 

2. Over various periods of time the following people were the members of the Board of Directors:
          T. R. Goryayev
          I. I. Platonov
          A. Yu. Petrov
          V. V. Chuvatin
          A. A. Selyukov
          E. D. Petrichenko 
          A. N. Vladyko 

3. In compliance with the accounting policy taxable receipts are calculated as they are paid, therefore, tax payment deviations are listed hereinafter, in thous. RUR:
                                                           On payment     On shipment   	Difference

Tax on profits                              	519 826          	578 235        	- 58 409
Highway-user tax                             	56 124         	62 667             	-6 543
Housing maintenance                      	26 561          	29 832            	-3 271                        

4. In 1999 two issues of securities were placed:  No.1-02-30306-D and No.1-03-30306-D.

5. After the date of annual reporting, liquidation of the Open Joint Stock Company “OSMS” was discovered (certificate dated 15.12.1999), to which Kontsern “KALINA” was a contributor with its 19532 shares for the amount of RUR 550 000.  Following the resolution of the annual shareholders’ meeting the decision was taken to write off RUR 550 000 for account of net profit. 

6. Analysis of property structure shows that its total value is 3.7 times higher than it used to be, and to a great extent this is due to an increase in mobile assets, particularly due to the fact that reserves and expenses have become 5.5 times as large.
Although the total value of accounts receivable and funds has grown, their weight in assets value has been reduced.
   Circulating assets grow 10.6 times as fast as long-term assets do, which shows a tendency to acceleration of turnover of total assets of the company. 
   Sales volume growth rate (338.6%) is higher than total assets growth rate (266.9%), which suggests that the company efficiently controls its assets.  

   Internal funds accumulated due to the growth of charter capital by RUR 103 937 thousand, reserve capital – by RUR 7 785 thousand, share of accumulated profit in total sources of funds – by 3.8%.  Borrowed funds grew by 359%.  
   Considerable proportion in borrowed funds belongs to accounts payable, which have become 4.6 times as much, i.e. have grown by RUR 476 110 thousand, and is not outbalanced by growth of funds, short-term financial investments and accounts receivable. 
   Growth of internal and borrowed funds with a simultaneous increase in product output and sales indicates expansion of production and commercial activities of the company, which ensures greater economic independence and makes the company a more reliable partner.  

7. Analysis of financial stability indicates crisis of the company, since funds, short-term securities and accounts receivable do not cover even accounts payable.
Only 91% of total value of reserves and expenses are covered by sources of internal and borrowed funds, which is obviously insufficient.   
Financial stability rate grew from 0.64 to 0.95, the standard rate being <1.  Thus, in 1998 per each ruble of internal funds the company drew 64 kopecks of borrowed funds, and by the end of 1999 – 95 kopecks, i.e. the company became more dependent on attraction of borrowed funds.

8. Current ratio was close to the standard as of the beginning of the year, being 1.9 against the standard 2, however, by the end of the year the ratio has fallen to 1.75, which indicates considerable financial risk associated with the fact that the company is unable to settle its accounts.  Ratio reduction by 15 points by the end of the year was caused by two counteracting factors:  current assets became 4.2 times the former figure, simultaneously by the end of the year short-term liabilities became 4.6 times as much. 

Chief Accountant				T. G. Babina   

Additional information on accounts for 1999 
No additional information is available. 

Audit report on accounts for 1999 
Report issued by the Auditing center “Ural-audit” will be approved at the annual shareholders’ meeting of JSC Kontsern “Kalina” on May 27, 2000.     

                                      	REPORT
                             	issued by the Auditing center “Ural-audit”
			and presented to the shareholders of JSC Kontsern “Kalina”
			on accounts of JSC Kontsern “Kalina” for 1999.

We have audited accounts of JSC Kontsern “Kalina” for 1999 enclosed hereto.
Internal control is the sole responsibility of the executive body of JSC Kontsern “Kalina”.
Our duty is to express our opinion about reliability of these accounts, based on the audit performed.
We audited the company in compliance with the Provisional Regulations on audit in the Russian Federation No.2263 dated 22.12.93.
Audit was planned and performed so as to receive reasonable evidence that accounts did not contain any material falsifications.  Audit included selective control of figures and explanations indicated in the accounts.
We believe that the audit performed provides sufficient evidence supporting our opinion that these accounts are reliable.
We consider the accounts enclosed hereto reliable, i.e. the accounts are reported in such manner that they essentially reflect assets and liabilities of JSC Kontsern “Kalina” as of December 31, 1999, and financial outcomes of its activities in 1999, subject to provisions of:
-	the Law of the Russian Federation “Financial Accounting” No.129-ФЗ dated 21.11.96;
-	Financial accounting regulations “Accounts of Organizations” (ПБУ 4\96) approved by the order of the Ministry of Finance of the Russian Federation No.10 dated 08.02.96;
-	Regulations on financial accounting and accounts, approved by the order of the Ministry of Finance of the Russian Federation No.34-н dated 29.07.98 (revised and amended) and the Order of the Ministry of Finance of the Russian Federation No.97 dated 12.11.96 “About Annual Accounts of Organizations” (revised and amended). 

General Manager
Auditing center “Ural-audit”			/Signature/		N. N. Usmanova
						/seal/

Auditors 
Auditing center “Ural-audit”			/Signature/		N. N. Verbitskaya
						/Signature/		L. V. Menshikova
						/seal/

March 31, 2000

APPENDIX 
Accounts 
for 2000 
N/A

ACCOUNTING POLICY
                                                                                                                  APPROVED
                                                                                                             	Chief Executive Officer
                                                                         				T. R. Goryayev 
   									December 30, 1999.

                                                                REGULATIONS
                            ON ACCOUNTING POLICY OF JSC Kontsern “KALINA” 
2000

1 GENERAL PROVISIONS

1.1 Accounting practice of JSC Kontsern “KALINA” meets the requirements indicated in the Federal Law No.129-ФЗ dated 21.11.96 “Financial Accounting”;  “Regulations on Financial Accounting and Accounts in the Russian Federation”, approved by the order of the Ministry of Finance of the Russian Federation No.34н dated 29.07.98;  Financial accounting regulations ПБУ 1-10 and other normative acts, subject to the subsequent amendments and addenda thereto.
1.2  Economic transactions accounting is in line with the chart of accounts and subaccounts of the company.  Appendix No.1.
1.3  The joint stock company practices a logbook-and-order system of economic transactions accounting with partially automated centralized accounting department.
1.4  Accounting year is understood as a period from January 1 to  December 31 inclusive.  Quarterly reporting means interim reporting formed as a progressive total starting from the opening of the year.
Annual report must be approved by the general shareholders’ meeting.
Annual reporting must be published in the print medium approved by the shareholders’ meeting.

2. APPROVED ACCOUNTIING METHODS 

2.1 The company estimates property, liabilities and economic transactions in rubles and kopecks. 
2.2 Current costs, capital investments and financial investments are registered separately. 
2.3  Fixed assets are registered in the books at the actual acquisition price.
Total value of capital assets of the company is absorbed by a linear charge of depreciation (amortization), based on acquisition cost of the object of capital assets and amortization norms calculated based on the service life. 
2.4 Objects of little value and objects with short lifetime of the company include material values and objects that serve less than one year, irrespective of their value, and objects of value within the limits fixed in normative acts per unit based on the acquisition price, irrespective of their service life.
Cost of objects of little value and objects with short lifetime in service is absorbed by charging depreciation at the rate of 100% of value, as the goods are delivered from the warehouse and put into service.  Objects of little value that cost one twentieth of the fixed limit per unit at maximum are charged off as they are put into service.
To secure integrity of objects of little value and objects with short lifetime in service, movement of these should be controlled by materially responsible employees in warehouses and structural units.
2.5  Service life of intangible assets is determined by the commission of experts acting on a regular basis, in compliance with the Appendix No.6.

2.6  Original cost of trademarks is amortized proportionally to the volume of output, for other intangible assets linear methods are used to determine amortization charges.
2.7  Actual cost of material resources that are written off for production, is calculated based on the weighted average cost.
2.8  Goods purchased for distribution and sales are registered at acquisition value.
2.9  Goods and fixed assets purchased in exchange for property other than monetary funds, are registered in the books at the value of property exchanged, as shown in the balance-sheet.  
2.10 Traditional calculation variant of production costs accounting is used to classify production costs, calculate product cost and form production results.   
Manufacturing costs, general economic expenditures and auxiliary production costs are allocated between objects of calculation at the end of reporting period proportionally to variable costs that include wages fund of primary production personnel and cost of materials (primary and accessory materials), which are then written off to the account 20 “Basic production”.  
2.11  Finished products are shown in the balance at the actual production cost.
2.12  Commercial expenses (account 43) are declared in the cost value of products sold, in total amount in the reporting period, when these expenses are acknowledged by registry on the account 46.
2.13  Deferred expenses are shown in the records as a separate entry and are attributed to production (marketing) costs for the period, which the former belong to.
2.14 Calculation period and the period for identification of financial results shall be the end of the reporting quarter.
2.15  For long-term works and services (those covered by contracts of service valid for over one year) return on works performed and financial results are calculated after total completion of works under the contract.
2.16  Accounts receivable with expired limitation period (over 3 years) and other debts that are unlikely to be collected shall be written off based on the decision taken by the manager, at that the amounts indicated shall be attributed to results of economic activities.
2.17  Net profit of the company is allocated and used in compliance with resolution of the shareholders’ meeting.
2.18  In order to ensure reliable bookkeeping and accounting data, inventory of property and financial obligations shall be made as follows: 
-  capital assets – every three years,
-  objects of little value and objects with short lifetime – once a year,
-  raw materials and stuffs – once a year,
-  long-term financial investment – once a year.
Results are shown in the reporting period, when the inventory is made.
2.19  Appraisal of production in progress includes value of raw materials, stuffs and semi-finished products.
2.20  No reserve for dubious debts is provided.
2.21  Expenses on maintenance of capital assets are written off directly on cost value of products released during the current reporting period
2.22  Difference in exchange is registered directly on the financial results account.
Difference in amounts arising from routine activities is registered on accounts of income from routine activities and costs of routine activities.
2.23 Interest on bank credits and loans is registered as non-sales profit on the financial results account. 
2.24  Travelling expenses shall be limited to the level indicated in the Appendix No.2.
2.25  Auxiliary production expenses (canteen, medical aid, sport complex, recreation center) are registered on the account 29 “Auxiliary production and facilities”.
2.26 Estimate of representation expenses, advertising costs, expenses connected with training of personnel shall be approved in compliance with the Appendices No.3, 4, 5.
2.27  Reporting period for the sums paid out on account shall be 30 days.

3. TAX POLICY

3.1 For taxation purposes receipts from sales are evaluated, as funds for the products, works, services are received by:  bank establishment – for clearing settlement, cash department of the organization – for cash payments.  
3.2  Prime cost for taxation purposes is adjusted subject to the account 43 “commercial expenses”.
3.3  Profit for taxation purposes is adjusted on a quarterly basis, as progressive total.
3.4  Shares of structural units in profit are calculated based on the average weight of mean headcount of staff and weight of value of fixed capital stock held by these structural units correspondingly, as compared to the total mean headcount and value of fixed capital stock of the company. 
3.5  Expenses on manufacture of products for export are calculated based on total expenditures in proportion to the volume of export shipments made during the reporting period, when these products were manufactured.
3.6  Tax base for the preceding reporting period is adjusted only for the parent enterprise, without taking into account structural units.

4. ACCOUNTING PROCEDURES 

4.1 Bookkeeping is performed by the accounting department. 
4.2 In-house accounting is performed in compliance with the Appendices No.8,9.
4.3  Accounting forms shall be approved in compliance with the Appendix No.10.
4.4.  A list of persons, who are entitled to proxies, shall be approved in compliance with the Appendix No.11.

           
Chief Accountant                        T. G. Babina

Approved by the Board of Directors, Minutes No.1015/01 dated 30.12.1999.

BALANCE-SHEET
	Codes	
Form No. 1 - classifier of management documents (ОКУД)	0710001	
as of December 31, 2000	Date (year, month, date)				
Organization: оpen joint stock company Kontsern “Kalina”  	classifier of enterprises and organizations (ОКПО)	333859	
Taxpayer Identification Number	ИНН	6608000083	
Type of activity: production	classifier of economic activities, products and services (ОКДП)	18137	
Organizational and legal form/ form of ownership: open joint stock company	classifier of organizational and legal forms/ classifier of forms of ownership (ОКОПФ/ОКФС)	4  /  7	
Units: thousand RUR	classifier of units of measure (ОКЕИ)		

ASSETS	Line code	As of the beginning of the reporting period	As of the end of the reporting period	
1	2	3	4	
I. LONG-TERM ASSETS				
Intangible assets (04, 05)	110	1 063	2 176	
patents, licenses, trademarks (service marks), other rights and assets similar to those mentioned  	111	-	-	
organizational costs	112	-	-	
business standing of the organization 	113	-	-	
Fixed assets (01, 02, 03)	120	141 798	181 469	
land and natural resources used	121	-	-	
buildings, machinery and equipment  	122	141 798	181 469	
Construction in progress (07, 08, 16, 61)	130	11 030	30 543	
Profitable investment in material values (03)	135	-	-	
property to be leased 	136	-	-	
property granted under the contract of rent  	137	-	-	
Long-term financial investment (06,82)	140	11 555	11 728	
investment in subsidiaries	141	-	-	
investment in associates	142	-	-	
investment in other organizations	143	11 042	11 215	
loans granted to organizations for a term over 12 months 	144	-	-	
other long-term financial investments	145	513	513	
Other long-term assets	150	-	-	
TOTAL for section I	190	165 446	225 916	
II. CURRENT ASSETS				
Inventory	210	545 184	727 284	
raw materials, stuffs and other similar valuables (10, 12, 13, 16)	211	268 069	351 474	
livestock being bred and fed (11)	212	-	-	
production-in-progress costs (costs of circulation) (20, 21, 23, 29, 30, 36, 44)	213	38 746	37 141	
finished products and goods for resale (16, 40, 41)	214	235 370	331 048	
goods shipped (45)	215	-	-	
deferred expenses (31)	216	1 754	7 621	
other inventory and expenses	217	1 245	-	
Value-added tax on purchased valuables (19)	220	14 750	15 796	
Accounts receivable (payments expected no sooner than on expiry of 12 months after the reporting date)  	230	-	-	
buyers and customers (62, 76, 82)	231	-	-	
bills receivable (62)	232	-	-	
arrears of subsidiaries and associates (78)	233	-	-	
advances paid (61)	234	-	-	
other debtors	235	-	-	
Accounts receivable (payments expected within 12 months after the reporting date) 	240	477 900	819 159	
buyers and customers (62, 76, 82)	241	411 134	682 374	
bills receivable (62)	242	-	-	
arrears of subsidiaries and associates (78)	243	-	-	
arrears of contributions to the charter capital to be paid by participants (founders) (75)	244	-	-	
advances paid (61)	245	63 358	128 833	
other debtors	246	3 408	7 952	
Short-term financial investment (56,58,82)	250	10 093	10 549	
loans granted to organizations for a maximum period of 12 months  	251	-	-	
company shares purchased from shareholders	252	-	2 797	
other short-term financial investments	253	10 093	7 752	
Funds	260	21 705	312 522	
cash (50)	261	106	486	
settlement accounts (51)	262	17 757	27 728	
foreign currency accounts (52)	263	692	284 295	
other funds (55, 56, 57)	264	3 150	13	
Other current assets	270	-	-	
TOTAL for section II	290	1 069 632	1 885 310	
BALANCE (total for the lines 190 + 290)	300	1 235 078	2 111 226	

LIABILITIES	Line code	As of the beginning of the reporting period	As of the end of the reporting period	
1	2	3	4	
III. CAPITAL AND RESERVES				
Charter capital (85)	410	104 081	72 857	
Additional capital (87)	420	87 193	136 847	
Reserve capital (86)	430	7 821	7 821	
reserves set up in compliance with law 	431	-	-	
reserves set up according to constituent documents  	432	7 821	7 821	
Social fund (88)	440	5 561	-	
Special-purpose funding and receipts (96)	450	3 270	-	
Retained earnings of previous years (88)	460	408 942	351 200	
Accumulated losses of previous years (88)	465	-	-	
Retained earnings of the accounting year (88)	470	-	284 854	
Accumulated losses of the accounting year (88)	475	-	-	
TOTAL for section III	490	616 868	853 579	
IV. LONG-TERM LIABILITIES				
Loans and credits (92, 95)	510	-	-	
bank credits with repayment period over 12 months after the reporting date  	511	-	-	
loans with repayment period over 12 months after the reporting date  	512	-	-	
Other long-term liabilities	520	-	-	
TOTAL for section IV	590	-	-	
V. CURRENT LIABILITIES				
Loans and credits (90, 94)	610	12 766	316 111	
bank credits repayable within 12 months after the reporting date   	611	12 766	316 111	
loans repayable within 12 months after the reporting date  	612	-	-	
Accounts payable	620	605 371	941 299	
suppliers and contractors (60, 76)	621	418 188	708 344	
bills payable (60)	622	-	-	
amounts payable to subsidiaries and associates (78)	623	-	-	
amounts payable to personnel of the organization (70)	624	8 108	14 199	
amounts payable to public off-budget funds (69)	625	44 604	3 933	
debts to the budget (68)	626	95 559	188 315	
advances received (64)	627	28 066	1 823	
other creditors	628	50 846	24 685	
Arrears of profit payable to participants (founders) (75)	630	73	237	
Deferred income (83)	640	-	-	
Reserves for future expenses (89)	650	-	-	
Other current liabilities	660	-	-	
TOTAL for section V	690	618 210	1 257 647	
BALANCE (total for the lines 490 + 590 + 690)	700	1 235 078	2 111 226	
INFORMATION ON AVAILABILITY OF VALUABLES
TAKEN STOCK OF ON THE OFF-BALANCE SHEET ACCOUNTS  
Parameter	Line code	As of the beginning of the reporting period	As of the end of the reporting period	
1	2	3	4	
Fixed assets rented (001)	910	-	-	
including those leased	911	-	-	
Material assets taken into safe custody (002)	920	-	-	
Goods taken on commission (004)	930	-	-	
Liabilities of insolvent debtors, written off as losses (007)	940	-	-	
Security for liabilities and payments received (008)	950	-	-	
Security for liabilities and payments provided (009)	960	-	-	
Deterioration of housing resources (014)	970	-	-	
Deterioration of amenities, utilities and other similar objects (015)	980	-	-	

PROFIT AND LOSS STATEMENT
	Codes	
Form No. 2 - classifier of management documents (ОКУД)	0710002	
as of December 31, 2000	Date (year, month, date)				
Organization: оpen joint stock company Kontsern “Kalina”  	classifier of enterprises and organizations (ОКПО)	333859	
Taxpayer Identification Number	ИНН	6608000083	
Type of activity: production	classifier of economic activities, products and services (ОКДП)	18137	
Organizational and legal form/ form of ownership: open joint stock company	classifier of organizational and legal forms/ classifier of forms of ownership (ОКОПФ/ОКФС)	4  /  7	
Units: thousand RUR	classifier of units of measure (ОКЕИ)		

on shipment
Parameter	Line code	Figures for reporting period	Figures for analogous period of the previous year	
1	2	3	4	
I. Profits and losses arising from routine activities.  				
(Net) Proceeds of sale of goods, products, works, services (less value-added tax, excises and similar compulsory payments)  	010	3 225 720	2 089 671	
Cost of sold goods, products, works, services	020	2 398 050	1 393 876	
Gross profit	029	827 670	695 795	
Commercial expenses	030	186 899	70 655	
Administrative costs	040	-	-	
Profit (loss) on sales (lines (010 - 020 - 030 - 040))	050	640 771	625 140	
II. Operating profit and expenses 				
Interest receivable	060	1 553	462	
Interest payable	070	26 809	-	
Income on participation in other organizations	080	-	-	
Other operating profit	090	297 697	743 758	
Other operating expenses	100	346 292	779 988	
III. Non-sales profit and expenses 				
Non-sales profit	120	36 256	2 987	
Non-sales expenses	130	144 257	5 950	
Profit (loss) before tax (lines 050 + 060 - 070 + 080 + 090 - 100 + 120 - 130)	140	458 919	586 409	
Profit tax and other similar compulsory payments 	150	174 065	177 467	
Profit (loss) arising from routine activities  	160	284 854	408 942	
IV. Extraordinary profit and expenses 				
Extraordinary profit	170	-	-	
Extraordinary expenses	180	-	-	
Net profit (retained profit (losses) of the reporting period) (lines (160 + 170 - 180))	190	284 854	408 942	
ADDITIONAL INFORMATION.
Dividend on share:
preferred shares	201	-	-	
ordinary shares	202	-	-	
Estimated dividend on share in the following accounting year: 
preferred shares	203	-	-	
ordinary shares	204	-	-	

INTERPRETATION OF CERTAIN PROFITS AND LOSSES  
Parameter	Line code	Reporting period	Analogous period in the preceding year	
		profit	loss	profit	loss	
1	2	3	4	5	6	
Penalties, default interests and forfeits acknowledged or to be collected by court (arbitration court) decision 	210	-	-	-	-	
Profit (losses) of previous years 	220	-	-	-	-	
Reimbursement of losses caused by failure to perform obligations or inappropriate discharge of obligations  	230	-	-	-	-	
Exchange difference on transactions in foreign currency  	240	-	-	-	-	
Cost reduction of stocks as of the end of the reporting period 	250	-	-	-	-	
Write-off of accounts receivable and accounts payable with expired limitation period 	260	-	-	-	-	

REPORT ON MODIFICATIONS IN CAPITAL
	Codes	
Form No. 3 - classifier of management documents (ОКУД)	0710003	
as of December 31, 2000	Date (year, month, date)				
Organization: оpen joint stock company Kontsern “Kalina”  	classifier of enterprises and organizations (ОКПО)	333859	
Taxpayer Identification Number	ИНН	6608000083	
Type of activity: production	classifier of economic activities, products and services (ОКДП)	18137	
Organizational and legal form/ form of ownership: open joint stock company	classifier of organizational and legal forms/ classifier of forms of ownership (ОКОПФ/ОКФС)	4  /  7	
Units: thousand RUR	classifier of units of measure (ОКЕИ)		

Parameter	Line code	Balance as of the beginning of the year	Receipts of the accounting year	Expenditures (outlay) of the accounting year	Balance as of the end of the year	
1	2	3	4	5	6	
I. Capital						
Charter capital 	010	104 081	-	312 224	72 857	
Added capital 	020	87 193	49 758	104	136 847	
Reserve fund	030	7 821	-	-	7 821	
	040	-	-	-	-	
Retained earnings of previous years – total  	050	408 942	-	57 742	351 200	
Social fund	060	3 270	-	3 270	-	
Special-purpose funding and receipts - total 	070	-	-	-	-	
	080	-	-	-	-	
Total for section I	079	616 868	49 758	97 901	568 725	
II. Reserves for future expenses – total  	080					
Total for section II	089					
III. Estimated reserves - total	090					
Total for section III	099					
IV. Modifications in capital						
Amount of capital as of the beginning of the reporting period 	100					
Growth of capital – total  	110					
including:
  due to additional issue of shares  	111					
  due to revaluation of assets 	112					
  due to increase in property 	113					
  due to reorganization of a legal entity (merger, affiliation)  	114					
  due to profits that are directly attributed to growth of capital, in compliance with the bookkeeping and accounting rules and procedures  	115					
Impairment of capital – total  	120					
including:
  due to reduction of the nominal value of shares 	121					
  due to reduction of the number of shares 	122					
  due to reorganization of a legal entity (de-merger, split-off)	123					
  due to expenses that are directly attributed to impairment of capital, in compliance with the bookkeeping and accounting rules and procedures  	124					
Amount of capital as of the end of the reporting period 	130					
ADDITIONAL INFORMATION
Parameter	Line code	Balance as of the beginning of the year	Balance as of the end of the year	
1	2	3	4	
1) Net assets	150	677 714	884 394	
		Budget	Off-budget funds	
		in the accounting year	in the preceding year	in the accounting year	in the preceding year	
		3	4	5	6	
2) Receipts for:						
expenditures on routine activities – total 	160					
capital investment in long-term assets 	170					

FUNDS FLOW STATEMENT
	Codes	
Form No. 4 - classifier of management documents (ОКУД)	0710004	
as of December 31, 2000	Date (year, month, date)				
Organization: оpen joint stock company Kontsern “Kalina”  	classifier of enterprises and organizations (ОКПО)	333859	
Taxpayer Identification Number	ИНН	6608000083	
Type of activity: production	classifier of economic activities, products and services (ОКДП)	18137	
Organizational and legal form/ form of ownership: open joint stock company	classifier of organizational and legal forms/ classifier of forms of ownership (ОКОПФ/ОКФС)	4  /  7	
Units: thousand RUR	classifier of units of measure (ОКЕИ)		

Parameter	Line code	Total	Breakdown	
			day-to-day operations	investment activities	financial activities	
1	2	3	4	5	6	
1. Balance of funds as of the beginning of the year 	010	18 127	x	x	x	
2. Receipts of funds - total	020	8 778 509	-	-	-	
including:						
proceeds of sale of goods, products, works and services 	030	3 561 193	x	x		
proceeds of sale of fixed assets and other property 	040	115 317	-	-	-	
advance payments received from buyers (customers)	050	1 823	x	x		
budget allocations and other special-purpose funding   	060	-	-	-	-	
gratis	070	-	-	-	-	
credits received	080					
loans received	085					
dividend, interest on financial investment	090	-	x	-	-	
other receipts	110	4 104 654	3 826 310	278 344	-	
3. Funds allocated - total	120	8 486 951	-	-	-	
including:						
payment for purchased goods, works, services 	130	3 366 670	3 366 670	-	-	
remuneration of labor	140	158 265	x	x	x	
allocations to public off-budget funds 	150	72 685	x	x	x	
imprest payments 	160	72 685	-	-	-	
advance payments	170	22 503	-	-	-	
payment of share in construction 	180	-	x	-	x	
payment for machinery, equipment and transport vehicles  	190	34 562	x	-	x	
financial investment	200	77 848	-	-	-	
payment of dividends, interest on securities  	210	2 491	x	-	-	
budget payments 	220	205 026	-	x	-	
payment of principal and interest on credits and loans received 	230	24 606	-	-	-	
other payments, transfers, etc.	250	4 449 610	-	-	-	
4. Balance of funds as of the end of the reporting period  	260	309 685	x	x	x	
Additional information:
Cash receipts from the line 020 (except figures indicated in the line 100) – total  	270	156 154	
including settlements:			
with legal entities	280	5 400	
with physical persons	290	150 754	
including those effected through:			
cash registers	291	150 157	
tight accounting forms	292	597	
Cash resources:			
received by cash department of the company from the bank  	295	139 174	
returned by cash department of the company to the bank	296	111 642	

APPENDIX TO THE BALANCE-SHEET
	Codes	
Form No. 5 - classifier of management documents (ОКУД)	0710005	
as of December 31, 2000	Date (year, month, date)				
Organization: оpen joint stock company Kontsern “Kalina”  	classifier of enterprises and organizations (ОКПО)	333859	
Taxpayer Identification Number	ИНН	6608000083	
Type of activity: production	classifier of economic activities, products and services (ОКДП)	18137	
Organizational and legal form/ form of ownership: open joint stock company	classifier of organizational and legal forms/ classifier of forms of ownership (ОКОПФ/ОКФС)	4  /  7	
Units: thousand RUR	classifier of measurement units (ОКЕИ)		

1. FLOW OF BORROWED FUNDS
Parameter	Line code	Balance as of the beginning of the accounting year	Receipts	Payments	Balance as of the end of the accounting year	
1	2	3	4	5	6	
Long-term credits	110	-	-	-	-	
including those overdue	111	-	-	-	-	
Long-term loans	120	-	-	-	-	
including those overdue	121	-	-	-	-	
Short-term credits	130	12 766	997 724	694 379	316 111	
including those overdue	131	-	-	-	-	
Short-term loans	140	-	-	-	-	
including those overdue	141	-	-	-	-	

2. ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE
Parameter	Line code	Balance as of the beginning of the accounting year	Liabilities arisen	Liabilities discharged	Balance as of the end of the accounting year	
1	2	3	4	5	6	
Accounts receivable:						
short-term	210	477 900	9 000 909	8 659 650	819 159	
including those overdue	211	31 389	591 185	566 509	56 065	
including those with overall duration over 3 months	212	26 019	468 342	444 942	49 419	
long-term	220	-	-	-	-	
including those overdue	221	-	-	-	-	
including those with overall duration over 3 months	222	-	-	-	-	
line 220
debts with payments expected no sooner than on expiry of 12 months after the reporting date	223	-	-	-	-	
Accounts payable:						
short-term	230	605 371	8 932 893	8 623 361	914 903	
including those overdue	231	36 322	507 666	507 666	54 629	
including those with overall duration over 3 months	232	30 463	407 538	407 538	43 703	
long-term	240	-	-	-	-	
including those overdue	241	-	-	-	-	
including those with overall duration over 3 months	242	-	-	-	-	
line 240
debts with payments expected no sooner than on expiry of 12 months after the reporting date	243	-	-	-	-	
Assurances:						
received	250	-	-	-	-	
including those received from a third party	251	-	-	-	-	
provided	260	-	-	-	-	
including those provided to a third party	261	-	-	-	-	

ADDITIONAL INFORMATION TO SECTION 2
Parameter	Line code	Balance as of the beginning of the accounting year	Liabilities arisen	Liabilities discharged	Balance as of the end of the accounting year	
1	2	3	4	5	6	
						
	262	-	-	-	-	
	263	-	-	-	-	
	264	-	-	-	-	
	265	-	-	-	-	
	266	183 625	2 757 185	2 606 784	334 026	

3) The list of debtor organizations with maximum debts
Identification of the Organization	Line code	Balance as of the end of the accounting year	
		total	including those with overall duration over 3 months	
1	2	3	4	
	270	-	-	

4) The list of creditor organizations with maximum debts 
Identification of the Organization	Line code	Balance as of the end of the accounting year	
		total	including those with overall duration over 3 months	
1	2	3	4	

3. DEPRECIABLE PROPERTY
Parameter	Line code	Balance as of the beginning of the accounting year	Receipts (input)	Retired assets	Balance as of the end of the accounting year	
1	2	3	4	5	6	
I. INTANGIBLE ASSETS						
Rights to objects of intellectual (industrial) property	310	783	375	92	1 066	
including the rights arising from:						
author's agreements and other contracts that cover works of science, literature, art and objects of interfacing rights, computer software, databases, etc.	311	612	236	92	756	
patents for inventions, industrial models, results of selection processes, certificates on utility models, trademarks and service marks, or license agreements covering their use 	312	-	-	-	-	
know-how rights	313	171	139	-	310	
Rights to use isolated natural resources	320	-	-	-	-	
Reorganization costs	330	-	-	-	-	
Business standing of the organization	340	-	-	-	-	
Other	349	638	883	18	1 503	
Total (lines 310 + 320 + 330 + 340 + 349)	350	1 421	1 258	110	2 569	
II. FIXED ASSETS						
Land and natural resources used	360	-	12 003	-	12 003	
Buildings	361	62 306	889	-	63 195	
Constructions	362	22 069	11 072	540	32 821	
Machinery and equipment	363	178 997	27 230	1 731	204 276	
Transport vehicles	364	3 577	2 783	32	6 328	
Industrial stock and household equipment	365	3 419	1 183	18	4 584	
Draught livestock	366	-	-	-	-	
Productive livestock	367	-	-	-	-	
Perennial plants	368	-	-	-	-	
Other fixed assets	369	-	-	-	-	
Total (sum total for the lines 360 - 369)	370	270 368	55 160	2 321	323 207	
including:						
production assets	371	268 747	53 364	2 321	319 940	
non-production assets	372	1 621	1 796	-	3 267	
III. PROFITABLE INVESTMENT IN MATERIAL VALUES 						
Property to be leased	381					
Property granted under the contract of rent	382					
Other	383					
Total (sum total for the lines 381 - 383)	385					

REFERENCE INFORMATION TO SECTION 3
Parameter	Line code	Balance as of the beginning of the accounting year	Balance as of the end of the accounting year	
1	2	3	4	
Line 371, columns 3 and 6:				
objects leased – total 	387	40	-	
including:				
buildings	388	-	-	
constructions	389	-	-	
	390	-	-	
	391	-	-	
objects temporarily closed-down	392	-	-	
Depreciable property wear:				
intangible assets	393	358	393	
fixed assets - total	394	128 570	141 738	
including:				
buildings and constructions	395	35 301	36 460	
machinery, equipment and transport vehicles	396	90 641	10 242	
other	397	2 628	3 036	
profitable investment in material values	398			
Additional information:				
Results of indexation linked to revaluation of fixed assets:				
original cost (replacement value)	401	-	x	
wear	402	-	x	
Property in pledge	403	-	-	
Value of depreciable property, for which no depreciation is charged, - total  	404			
including:				
intangible assets	405			
fixed assets	406			

4. FLOW OF FUNDS ALLOCATED TO LONG-TERM INVESTMENT AND FINANCIAL INVESTMENT
Parameter	Line code	Balance as of the beginning of the accounting year	Accrual (generated funds)	Spending	Balance as of the end of the accounting year	
1	2	3	4	5	6	
Equity of the organization - total	410	417 773	363 435	145 154	636 054	
including:						
profit retained by the organization	411	-	-	-	-	
Outside funds - total	420	12 766	997 724	694 379	316 111	
including:						
bank credits	421	12 766	997 724	694 379	316 111	
borrowed funds of other organizations	422	-	-	-	-	
share in construction	423	-	-	-	-	
funds drawn from the budget	424	-	-	-	-	
resources drawn from off-budget funds	425	-	-	-	-	
other	426	-	-	-	-	
Total equity and outside funds (sum total for the lines 410 and 420)	430	430 539	1 361 159	839 533	952 165	
Additional information:						
Construction in progress	440	7 963	30 569	14 135	24 397	
Investment in subsidiaries	450	-	-	-	-	
Investment in associates	460	-	-	-	-	

5. FINANCIAL INVESTMENT
Parameter	Line code	Long-term	Short-term	
		as of the beginning of the accounting year	as of the end of the accounting year	as of the beginning of the accounting year	as of the end of the accounting year	
1	2	3	4	5	6	
Stocks and shares of other organizations	510	11 042	11 215	-	-	
Bonds and other debentures	520	-	-	990	990	
Loans granted	530	-	-	-	-	
Other	540	-	-	9 101	6 760	
Additional information:						
Bonds and other securities at market value	550	-	-	-	-	

6. EXPENSES ON ROUTINE ACTIVITIES 
Parameter	Line code	Accounting year	Preceding year	
1	2	3	4	
Material costs	610	1 993 583	1 401 626	
Expenses on remuneration of labor	620	195 884	106 853	
Allocations to social needs	630	74 526	39 646	
Depreciation	640	13 946	8 558	
Other expenditures	650	1 089 476	522 865	
Total for cost items	660	3 346 345	2 065 824	
Alteration of balance (growth [+], reduction [-]):
  production in progress	670			
  deferred expenses	680			
  reserve for future expenses 	690			

7. SOCIAL INDICATORS
Parameter	Line code	Amounts due according to estimates	Spending	Amounts transferred to funds	
1	2	3	4	5	
Allocations to public off-budget funds:					
social insurance fund	710	13 001	3 356	10 670	
pension fund	720	52 209	-	49 063	
employment fund	730	2 851	-	2 594	
medical insurance	740	6 465	-	5 934	
Allocations to pension funds, other than public 	750		x		
	
Allocations to pension funds, other than public 	750		
Insurance premiums under voluntary pension insurance contracts 	755		
Average number of employees registered	760	4 249	
Cash payments and financial inducements, other than those granted for production of goods, works and services	770	246	
Yield on shares and investment in property of organization	780	3 395	

Explanatory note to accounts for 2000  
EXPLANATORY NOTE TO ANNUAL REPORT FOR 2000 

1. JSC Kontsern “Kalina” remains a market leader among producers of perfumery, cosmetics and detergents.

2. In 2000 the following people were the members of the Board of Directors:
     T. R. Goryayev
     N. A. Geller
     A. Yu. Petrov
     V. V. Chuvatin 
     I. B. Rogachev 
     E. D. Petrichenko 
     Yu. A. Kouzmin 
     John Thomas Smith Word 
     Hans Vreeman 
3. In compliance with the accounting policy taxable receipts are calculated as they are paid, therefore, tax payment deviations are listed hereinafter, in thous. RUR:
                                                           	On payment                  On shipment           Difference

Tax on profit	                                     	162 878                      162 380                        - 498
Highway-user tax			94 682                        95 949                     + 1 267

4. In 2000 two issues of securities were placed: No.1-04-30306-D dated 29.03. and No.1-05-30306-D dated 27.12.
5. Figures indicated in the lines 270 and 460 (form No.1) and in the line 100 (form No.2) in the “Balance-sheet” and “Profit and Loss Statement” as of the beginning of the year have been adjusted by 31,999 thousand RUR (disposition of company profits), which caused changes in balance-sheet figures.
6. The “Funds Flow Statement” - form No.4, lines 110 and 250 - reflects internal flow of funds between the accounts 50-57.
7. Growth of the company’s charter capital up to RUR 90 207 010 is a material fact registered after the date of issue of the balance-sheet.  Adjustments are made in compliance with the order No.105 dated 20.02.2001, which will be reflected in the reports covering the 1st quarter of 2001.
8. The shareholders’ meeting passed a resolution to pay dividends for 2000 for the total amount of RUR 7 409 211, which is reflected in the balance-sheet covering the 1st quarter of 2001.
In addition to that the shareholders’ meeting passed a resolution to increase the charter capital by means of raising nominal value of shares.  This transaction will be reflected as soon as amendments to the Charter of the enterprise are registered.
9. Property structure analysis indicates that its total value has increased by 876.1 million RUR (1.7 times the former value) due to an increase in mobile assets by 816 million RUR (1.7 times the former figure), and particularly due to an increase in immobilized funds by 60.1 million RUR (1.3 times the former figure).  This ratio of growth rates reflects the tendency to acceleration in turnover of current assets.  However, growth rates for proceeds (54.4%) and profit on sales (2.5%) are lower than those for increment in assets (107.5%).
Despite growth of the total value of accounts receivable and funds, their weight in asset value has been reduced.
Net asset value of the company increased by 233 million RUR and reached 835 million RUR. Internal funds augmented due to growth in accumulated profit by 284 million RUR.  Simultaneously the Charter capital decreased by 31.2 million RUR due to reduction of nominal value of shares.
Considerable proportion in borrowed funds belongs to accounts payable, which grew by 155% or by 336 million RUR and is outbalanced by growth of funds, short-term financial investments and accounts receivable (224%). 

Chief Accountant                                                           T. G. Babina 

Additional information on accounts for 2000 
Not available

Audit report on accounts for 2000
                                                                            REPORT
                                                    issued by the Auditing center “Ural-audit” 
                                                    and presented to the shareholders of JSC Kontsern “Kalina” 
                                                    on accounts of JSC Kontsern “Kalina” for 2000. 

We have audited accounts of JSC Kontsern “Kalina” for 2000 enclosed hereto.  Preparation of these reports is the sole responsibility of the executive body of JSC Kontsern “Kalina”.  Our duty is to express our opinion about reliability of these accounts, based on the audit performed.  We audited the company in compliance with the Provisional Regulations on audit in the Russian Federation No.2263 dated 22.12.93. Audit was planned and performed so as to receive reasonable evidence that accounts did not contain any material falsifications.  Audit included selective control of figures and explanations indicated in the accounts.  We believe that the audit performed provides sufficient evidence supporting our opinion that these accounts are reliable.
We consider the accounts enclosed hereto reliable, i.e. the accounts are reported in such manner that they essentially reflect assets and liabilities of JSC Kontsern “Kalina” as of January 1, 2001, and financial outcomes of its activities in 2000, subject to provisions of the Law of the Russian Federation “Financial Accounting” No.129-ФЗ dated 21.11.96, Regulations on financial accounting and accounts in the Russian Federation approved by the order of the Ministry of Finance of the Russian Federation No.34-н dated 29.07.98, Financial accounting regulations “Accounts of Organizations” approved by the order of the Ministry of Finance of the Russian Federation No.43-н dated 06.07.99.

General Manager
Auditing center “Ural-audit”			/Signature/		N. N. Usmanova
						/seal/

Auditors 			/Signature/		L. D. Borisova
/Signature/		N. N. Verbitskaya
/Signature/		A. P. Remchukova
				/seal/

April 6, 2001

APPENDIX
Accounts
for 2001
N/A

ACCOUNTING POLICY

BALANCE-SHEET 
	Codes	
Form No.1 – classifier of management documents (ОКУД)	0710001	
As of December 31, 2001	Date (year, month, date)				
Organization:  open joint stock company Kontsern “Kalina”  	classifier of enterprises and organizations (ОКПО)	333859	
Taxpayer Identification Number	ИНН	6608000083	
Type of activity:  production 	classifier of economic activities, products and services (ОКДП)	18137	
Organizational and legal form/ form of ownership:  open joint stock company 	classifier of organizational and legal forms/ classifier of forms of ownership (ОКОПФ/ОКФС)	4  /  7	
Units:  thousand RUR 	classifier of units of measure (ОКЕИ)		

ASSETS	Line code	As of the beginning of the reporting period	As of the end of the reporting period	
1	2	3	4	
I. LONG-TERM ASSETS				
Intangible assets (04, 05)	110	2 176	14 138	
patents, licenses, trademarks (service marks), other rights and assets similar to those mentioned	111	-	-	
organizational costs	112	-	-	
business standing of the organization	113	-	-	
Fixed assets (01, 02, 03)	120	181 469	249 205	
land and natural resources used	121	-	-	
buildings, machinery and equipment	122	181 469	249 205	
Construction in progress (07, 08, 16, 61)	130	30 543	88 305	
Profitable investment in material values (03)	135	-	-	
property to be leased	136	-	-	
property granted under the contract of rent	137	-	-	
Long-term financial investment (06,82)	140	11 728	107 494	
investment in subsidiaries	141	-	-	
investment in associates	142	-	-	
investment in other organizations	143	11 215	106 981	
loans granted to organizations for a term over 12 months	144	-	-	
other long-term financial investments	145	513	513	
Other long-term assets	150	-	-	
TOTAL for section I	190	225 916	459 142	
II. CURRENT ASSETS				
Inventory	210	727 284	893 947	
raw materials, stuffs and other similar valuables (10, 12, 13, 16)	211	351 474	378 992	
livestock being bred and fed (11)	212	-	-	
production-in-progress costs (costs of circulation) (20, 21, 23, 29, 30, 36, 44)	213	37 141	17 724	
finished products and goods for resale (16, 40, 41)	214	331 048	485 824	
goods shipped (45)	215	-	-	
deferred expenses (31)	216	7 621	11 407	
other inventory and expenses	217	-	-	
Value-added tax on purchased valuables (19)	220	15 796	108 060	
Accounts receivable (payments expected no sooner than on expiry of 12 months after the reporting date)	230	-	-	
buyers and customers (62, 76, 82)	231	-	-	
bills receivable (62)	232	-	-	
arrears of subsidiaries and associates (78)	233	-	-	
advances paid (61)	234	-	-	
other debtors	235	-	-	
Accounts receivable (payments expected within 12 months after the reporting date) 	240	819 159	988 710	
buyers and customers (62, 76, 82)	241	682 374	751 852	
bills receivable (62)	242	-	-	
arrears of subsidiaries and associates (78)	243	-	-	
arrears of contributions to the charter capital to be paid by participants (founders) (75)	244	-	-	
advances paid (61)	245	128 833	218 359	
other debtors	246	7 952	18 499	
Short-term financial investment (56,58,82)	250	10 549	35 684	
loans granted to organizations for a maximum period of 12 months  	251	-	-	
company shares purchased from shareholders	252	2 797	10 242	
other short-term financial investments	253	10 549	25 442	
Funds	260	312 522	254 737	
cash (50)	261	486	273	
settlement accounts (51)	262	27 728	29 204	
foreign currency accounts (52)	263	284 295	224 170	
other funds (55, 56, 57)	264	13	1 090	
Other current assets	270	-	-	
TOTAL for section II	290	1 885 310	2 281 138	
BALANCE (total for the lines 190 + 290)	300	2 111 226	2 740 280	

LIABILITIES	Line code	As of the beginning of the reporting period	As of the end of the reporting period	
1	2	3	4	
III. CAPITAL AND RESERVES				
Charter capital (85)	410	72 857	631 449	
Additional capital (87)	420	136 847	136 847	
Reserve capital (86)	430	7 821	7 821	
reserves set up in compliance with law 	431	-	-	
reserves set up according to constituent documents  	432	7 821	7 821	
Social fund (88)	440	-	-	
Special-purpose funding and receipts (96)	450	-	-	
Retained earnings of previous years (88)	460	636 054	361 413	
Accumulated losses of previous years (88)	465	-	-	
Retained earnings of the accounting year (88)	470	-	455 319	
Accumulated losses of the accounting year (88)	475	-	-	
TOTAL for section III	490	853 579	1 592 849	
IV. LONG-TERM LIABILITIES				
Loans and credits (92, 95)	510	-	5 151	
bank credits with repayment period over 12 months after the reporting date  	511	-	-	
loans with repayment period over 12 months after the reporting date  	512	-	5 151	
Other long-term liabilities	520	-	-	
TOTAL for section IV	590	-	5 151	
V. CURRENT LIABILITIES				
Loans and credits (90, 94)	610	316 111	440 880	
bank credits repayable within 12 months after the reporting date   	611	316 111	440 880	
loans repayable within 12 months after the reporting date  	612	-	-	
Accounts payable	620	941 299	701 229	
suppliers and contractors (60, 76)	621	708 344	466 035	
bills payable (60)	622	-	-	
amounts payable to subsidiaries and associates (78)	623	-	-	
amounts payable to personnel of the organization (70)	624	14 199	19 099	
amounts payable to public off-budget funds (69)	625	3 933	6 072	
debts to the budget (68)	626	188 315	155 156	
advances received (64)	627	1 823	28 098	
other creditors	628	24 685	26 772	
Arrears of profit payable to participants (founders) (75)	630	237	171	
Deferred income (83)	640	-	-	
Reserves for future expenses (89)	650	-	-	
Other current liabilities	660	-	-	
TOTAL for section V	690	1 257 647	1 142 280	
BALANCE (total for the lines 490 + 590 + 690)	700	2 111 226	2 740 280	
INFORMATION ON AVAILABILITY OF VALUABLES
TAKEN STOCK OF ON THE OFF-BALANCE SHEET ACCOUNTS  
Parameter	Line code	As of the beginning of the reporting period	As of the end of the reporting period	
1	2	3	4	
Fixed assets rented (001)	910	-	-	
including those leased	911	-	-	
Material assets taken into safe custody (002)	920	-	-	
Goods taken on commission (004)	930	-	-	
Liabilities of insolvent debtors, written off as losses (007)	940	-	-	
Security for liabilities and payments received (008)	950	-	-	
Security for liabilities and payments provided (009)	960	-	-	
Deterioration of housing resources (014)	970	-	-	
Deterioration of amenities, utilities and other similar objects (015)	980	-	-	

PROFIT AND LOSS STATEMENT
	Codes	
Form No.2 – classifier of management documents (ОКУД)	0710002	
as of  December 31, 2001	Date (year, month, date)				
Organization:  open joint stock company Kontsern “Kalina”	classifier of enterprises and organizations (ОКПО)	333859	
Taxpayer Identification Number	ИНН	6608000083	
Type of activity:  production	classifier of economic activities, products and services (ОКДП)	18137	
Organizational and legal form/ form of ownership:  open joint stock company	classifier of organizational and legal forms/ classifier of forms of ownership (ОКОПФ/ОКФС)	4  /  7	
Units:  thousand RUR	classifier of units of measure (ОКЕИ)		

on shipment
Parameter	Line code	Figures for reporting period	Figures for analogous period of the previous year	
1	2	3	4	
I. Profits and losses arising from routine activities.  				
(Net) Proceeds of sale of goods, products, works, services (less value-added tax, excises and similar compulsory payments)  	010	3 632 903	3 225 720	
Cost of sold goods, products, works, services	020	2 501 913	2 398 050	
Gross profit	029	1 130 990	827 670	
Commercial expenses	030	373 584	186 899	
Administrative costs	040	-	-	
Profit (loss) on sales (lines (010 - 020 - 030 - 040))	050	757 406	640 771	
II. Operating profit and expenses 				
Interest receivable	060	6 119	1 553	
Interest payable	070	65 847	26 809	
Income on participation in other organizations	080	-	-	
Other operating profit	090	86 549	297 697	
Other operating expenses	100	165 406	346 292	
III. Non-sales profit and expenses 				
Non-sales profit	120	45 623	36 256	
Non-sales expenses	130	43 589	144 257	
Profit (loss) before tax (lines 050 + 060 - 070 + 080 + 090 - 100 + 120 - 130)	140	620 855	458 919	
Profit tax and other similar compulsory payments 	150	165 536	174 065	
Profit (loss) arising from routine activities  	160	455 319	284 854	
IV. Extraordinary profit and expenses 				
Extraordinary profit	170	-	-	
Extraordinary expenses	180	-	-	
Net profit (retained profit (losses) of the reporting period) (lines (160 + 170 - 180))	190	455 319	284 854	
ADDITIONAL INFORMATION.
Dividend on share:
preferred shares	201	-	-	
ordinary shares	202	-	-	
Estimated dividend on share in the following accounting year: 
preferred shares	203	-	-	
ordinary shares	204	-	-	

INTERPRETATION OF CERTAIN PROFITS AND LOSSES  
Parameter	Line code	Reporting period	Analogous period in the preceding year	
		profit	loss	profit	loss	
1	2	3	4	5	6	
Penalties, default interests and forfeits acknowledged or to be collected by court (arbitration court) decision 	210	1 671	431	393	1 157	
Profit (losses) of previous years 	220	-	9 889	11	20 191	
Reimbursement of losses caused by failure to perform obligations or inappropriate discharge of obligations  	230	2 063	3 222	1 357	515	
Exchange difference on transactions in foreign currency  	240	35 237	30 484	31 808	43 493	
Cost reduction of stocks as of the end of the reporting period 	250	-	-	83 405	-	
Write-off of accounts receivable and accounts payable with expired limitation period 	260	-	2 227	-	-	

REPORT ON MODIFICATIONS IN CAPITAL
	Codes	
Form No.3 – classifier of management documents (ОКУД)	0710003	
as of  December 31, 2001	Date (year, month, date)				
Organization:  open joint stock company Kontsern “Kalina”	classifier of enterprises and organizations (ОКПО)	333859	
Taxpayer Identification Number	ИНН	6608000083	
Type of activity:  production	classifier of economic activities, products and services (ОКДП)	18137	
Organizational and legal form/ form of ownership:  open joint stock company	classifier of organizational and legal forms/ classifier of forms of ownership (ОКОПФ/ОКФС)	4  /  7	
Units:  thousand RUR	classifier of units of measure (ОКЕИ)		

Parameter	Line code	Balance as of the beginning of the year	Receipts of the accounting year	Expenditures (outlay) of the accounting year	Balance as of the end of the year	
1	2	3	4	5	6	
I. Capital						
Charter capital 	010	72 857	558 592	-	631 449	
Added capital 	020	136 847	266 260	266 260	136 847	
Reserve fund	030	7 821	-	-	7 821	
	040	-	-	-	-	
Retained earnings of previous years – total  	050	636 054	14 063	288 704	361 413	
Social fund	060	-	-	-	-	
Special-purpose funding and receipts - total 	070	-	-	-	-	
	080	-	-	-	-	
Total for section I	079	853 579	838 915	554 964	1 137 530	
II. Reserves for future expenses – total  	080					
Total for section II	089	-	-	-	-	
III. Estimated reserves - total	090					
Total for section III	099	-	-	-	-	
IV. Modifications in capital						
Amount of capital as of the beginning of the reporting period 	100					
Growth of capital – total  	110					
including:
  due to additional issue of shares  	111					
  due to revaluation of assets 	112					
  due to increase in property 	113					
  due to reorganization of a legal entity (merger, affiliation)  	114					
  due to profits that are directly attributed to growth of capital, in compliance with the bookkeeping and accounting rules and procedures  	115					
Impairment of capital – total  	120					
including:
  due to reduction of the nominal value of shares 	121					
  due to reduction of the number of shares 	122					
  due to reorganization of a legal entity (de-merger, split-off)	123					
  due to expenses that are directly attributed to impairment of capital, in compliance with the bookkeeping and accounting rules and procedures  	124					
Amount of capital as of the end of the reporting period 	130					
ADDITIONAL INFORMATION
Parameter	Line code	Balance as of the beginning of the year	Balance as of the end of the year	
1	2	3	4	
1) Net assets	150	850 782	1 582 607	
		Budget	Off-budget funds	
		in the accounting year	in the preceding year	in the accounting year	in the preceding year	
		3	4	5	6	
2) Receipts for:						
expenditures on routine activities – total 	160	-	-	-	-	
capital investment in long-term assets 	170	-	-	-	-	

FUNDS FLOW STATEMENT
	Codes	
Form No.4 – classifier of management documents (ОКУД)	0710004	
as of  	Date (year, month, date)				
Organization:  open joint stock company Kontsern “Kalina”	classifier of enterprises and organizations (ОКПО)	333859	
Taxpayer Identification Number	ИНН	6608000083	
Type of activity:  production	classifier of economic activities, products and services (ОКДП)	18137	
Organizational and legal form/ form of ownership:  open joint stock company	classifier of organizational and legal forms/ classifier of forms of ownership (ОКОПФ/ОКФС)	4  /  7	
Units:  thousand RUR	classifier of units of measure (ОКЕИ)		

Parameter	Line code	Total	Breakdown	
			day-to-day operations	investment activities	financial activities	
1	2	3	4	5	6	
1. Balance of funds as of the beginning of the year 	010	312 522	x	x	x	
2. Receipts of funds - total	020	8 086 664	8 017 189	69 014	-	
including:						
proceeds of sale of goods, products, works and services 	030	4 181 079	x	x	-	
proceeds of sale of fixed assets and other property 	040	107 710	107 710	-	-	
advance payments received from buyers (customers)	050	28 098	x	x	-	
budget allocations and other special-purpose funding   	060	-	-	-	-	
gratis	070	-	-	-	-	
credits received	080	2 930 117	2 930 117	-	-	
loans received	085	69 014	-	69 014	-	
dividend, interest on financial investment	090	-	x	-	-	
other receipts	110	770 646	770 646	-	-	
3. Funds allocated - total	120	8 144 449	7 825 754	9 788	-	
including:						
payment for purchased goods, works, services 	130	3 411 806	3 411 806	-	-	
remuneration of labor	140	226 956	x	x	x	
allocations to public off-budget funds 	150	81 951	x	x	x	
imprest payments 	160	26 016	26 016	-	-	
advance payments	170	522 157	522 157	-	-	
payment of share in construction 	180	-	x	-	x	
payment for machinery, equipment and transport vehicles  	190	-	x	-	x	
financial investment	200	-	-	-	-	
payment of dividends, interest on securities  	210	-	x	-	-	
budget payments 	220	-	-	x	-	
payment of principal and interest on credits and loans received 	230	2 781 013	2 771 225	9 788	-	
other payments, transfers, etc.	250	1 094 550	1 094 550	-	-	
4. Balance of funds as of the end of the reporting period  	260	254 737	x	x	x	
Additional information:
Cash receipts from the line 020 (except figures indicated in the line 100) – total  	270	110 110	
including settlements:			
with legal entities	280	2 227	
with physical persons	290	107 883	
including those effected through:			
cash registers	291	107 199	
tight accounting forms	292	684	
Cash resources:			
received by cash department of the company from the bank  	295	2 363 222	
returned by cash department of the company to the bank	296	80 163	

APPENDIX TO THE BALANCE-SHEET
	Codes	
Form No.5 – classifier of management documents (ОКУД)	0710005	
as of  December 31, 2001	Date (year, month, date)				
Organization:  open joint stock company Kontsern “Kalina”	classifier of enterprises and organizations (ОКПО)	333859	
Taxpayer Identification Number	ИНН	6608000083	
Type of activity:  production	classifier of economic activities, products and services (ОКДП)	18137	
Organizational and legal form/ form of ownership:  open joint stock company	classifier of organizational and legal forms/ classifier of forms of ownership (ОКОПФ/ОКФС)	4  /  7	
Units:  thousand RUR	classifier of units of measure (ОКЕИ)		

1. FLOW OF BORROWED FUNDS
Parameter	Line code	Balance as of the beginning of the accounting year	Receipts	Payments	Balance as of the end of the accounting year	
1	2	3	4	5	6	
Long-term credits	110	-	-	-	-	
including those overdue	111	-	-	-	-	
Long-term loans	120	-	75 063	69 912	5 151	
including those overdue	121	-	-	-	-	
Short-term credits	130	316 111	2 839 345	2 714 576	440 880	
including those overdue	131	-	-	-	-	
Short-term loans	140	-	-	-	-	
including those overdue	141	-	-	-	-	

2. ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE
Parameter	Line code	Balance as of the beginning of the accounting year	Liabilities arisen	Liabilities discharged	Balance as of the end of the accounting year	
1	2	3	4	5	6	
Accounts receivable:						
short-term	210	819 159	36 100 665	35 931 114	988 710	
including those overdue	211	56 065	236 541	203 638	88 968	
including those with overall duration over 3 months	212	49 419	206 974	198 203	58 190	
long-term	220	-	-	-	-	
including those overdue	221	-	-	-	-	
including those with overall duration over 3 months	222	-	-	-	-	
line 220
debts with payments expected no sooner than on expiry of 12 months after the reporting date	223	-	-	-	-	
Accounts payable:						
short-term	230	941 299	36 763 679	37 003 749	701 229	
including those overdue	231	113 221	-	113 221	-	
including those with overall duration over 3 months	232	43 703	-	43 703	-	
long-term	240	-	-	-	-	
including those overdue	241	-	-	-	-	
including those with overall duration over 3 months	242	-	-	-	-	
line 240
debts with payments expected no sooner than on expiry of 12 months after the reporting date	243	-	-	-	-	
Assurances:						
received	250	-	-	-	-	
including those received from a third party	251	-	-	-	-	
provided	260	-	-	-	-	
including those provided to a third party	261	-	-	-	-	

REFERENCE INFORMATION TO SECTION 2
Parameter	Line code	Balance as of the beginning of the accounting year	Liabilities arisen	Liabilities discharged	Balance as of the end of the accounting year	
1	2	3	4	5	6	
1) Movement of bills						
Bills issued	262	-	-	-	-	
including those overdue	263	-	-	-	-	
Bills received	264	6 760	243 651	225 960	24 451	
including those overdue	265	-	-	-	-	
2) Accounts receivable in relation to products (works, services) furnished, at actual cost  	266	334 026	3 287 780	3 260 160	361 646	

3) The list of debtor organizations with maximum debts
Identification of the Organization	Line code	Balance as of the end of the accounting year	
		total	including those with overall duration over 3 months	
1	2	3	4	
Limited liability company “Marusha”, Stavropol	270	28 173	1 018	
Limited liability company “Parfum-S”, Elista	271	23 916	3 011	
Limited partnership “Koktem”, Almaty	272	14 797	4 224	
Limited partnership "BEST", Pavlodar	273	12 073	-	
Limited partnership “Boston”	274	10 447	-	

4) The list of creditor organizations with maximum debts
Identification of the Organization	Line code	Balance as of the end of the accounting year	
		total	including those with overall duration over 3 months	
1	2	3	4	
Close joint stock company “Global Odin”, Ekaterinburg 	280	2 105	-	
Limited liability company “Navigator DDB Limited”, Moscow  	281	1 547	-	
Close joint stock company "TPK-97", Ekaterinburg	282	1 197	-	
Limited Liability Company “Belsis”, Moscow 	283	4 335	-	
Promtransservice, Ekaterinburg 	284	1 075	-	

3. DEPRECIABLE PROPERTY
Parameter	Line code	Balance as of the beginning of the accounting year	Receipts (input)	Retired assets	Balance as of the end of the accounting year	
1	2	3	4	5	6	
I. INTANGIBLE ASSETS						
Rights to objects of intellectual (industrial) property	310	1 066	269	756	579	
including the rights arising from:						
author's agreements and other contracts that cover works of science, literature, art and objects of interfacing rights, computer software, databases, etc.	311	756	-	756	-	
patents for inventions, industrial models, results of selection processes, certificates on utility models, trademarks and service marks, or license agreements covering their use 	312	-	-	-	-	
know-how rights	313	310	269	-	579	
Rights to use isolated natural resources	320	-	-	-	-	
Reorganization costs	330	-	-	-	-	
Business standing of the organization	340	-	-	-	-	
Other	349	1 503	14 359	2 049	13 813	
Total (lines 310 + 320 + 330 + 340 + 349)	350	2 569	14 627	2 804	14 392	
II. FIXED ASSETS						
Land and natural resources used	360	12 003	-	-	12 003	
Buildings	361	63 195	13 452	343	76 304	
Constructions	362	32 821	2 780	1 718	33 883	
Machinery and equipment	363	204 276	60 261	9 995	254 542	
Transport vehicles	364	6 328	8 225	350	14 203	
Industrial stock and household equipment	365	4 584	15 141	25	19 700	
Draught livestock	366	-	-	-	-	
Productive livestock	367	-	-	-	-	
Perennial plants	368	-	-	-	-	
Other fixed assets	369	-	-	-	-	
Total (sum total for the lines 360 - 369)	370	323 207	99 859	12 431	410 635	
including:						
production assets	371	319 940	97 109	12 431	404 618	
non-production assets	372	3 267	2 750	-	6 017	
III. PROFITABLE INVESTMENT IN MATERIAL VALUES 						
Property to be leased	381	-	-	-	-	
Property granted under the contract of rent	382	-	-	-	-	
Other	383	-	-	-	-	
Total (sum total for the lines 381 - 383)	385	-	-	-	-	

REFERENCE INFORMATION TO SECTION 3
Parameter	Line code	Balance as of the beginning of the accounting year	Balance as of the end of the accounting year	
1	2	3	4	
Line 371, columns 3 and 6:				
objects leased – total 	387	43	40	
including:				
buildings	388	-	-	
constructions	389	-	-	
	390			
	391			
objects temporarily closed-down	392	-	903	
Depreciable property wear:				
intangible assets	393	393	254	
fixed assets - total	394	141 738	161 430	
including:				
buildings and constructions	395	36 460	37 265	
machinery, equipment and transport vehicles	396	102 242	115 950	
other	397	3 036	8 215	
profitable investment in material values	398	-	-	
Additional information:				
Results of indexation linked to revaluation of fixed assets:				
original cost (replacement value)	401	-	x	
wear	402	-	x	
Property in pledge	403	-		
Value of depreciable property, for which no depreciation is charged, - total  	404	12 226	12 003	
including:				
intangible assets	405	223	-	
fixed assets	406	12 003	12 003	

4. FLOW OF FUNDS ALLOCATED TO LONG-TERM INVESTMENT AND FINANCIAL INVESTMENT
Parameter	Line code	Balance as of the beginning of the accounting year	Accrual (generated funds)	Spending	Balance as of the end of the accounting year	
1	2	3	4	5	6	
Equity of the organization - total	410	-	129 151	129 151	-	
including:						
profit retained by the organization	411	-	129 151	129 151	-	
Outside funds - total	420	-	-	-	-	
including:						
bank credits	421	-	-	-	-	
borrowed funds of other organizations	422	-	-	-	-	
share in construction	423	-	-	-	-	
funds drawn from the budget	424	-	-	-	-	
resources drawn from off-budget funds	425	-	-	-	-	
other	426	-	-	-	-	
Total equity and outside funds (sum total for the lines 410 and 420)	430	-	-	-	-	
Additional information:						
Construction in progress	440	30 543	152 534	94 772	88 305	
Investment in subsidiaries	450	-	-	6 603	-	
Investment in associates	460	-	-	-	-	

5. FINANCIAL INVESTMENT
Parameter	Line code	Long-term	Short-term	
		as of the beginning of the accounting year	as of the end of the accounting year	as of the beginning of the accounting year	as of the end of the accounting year	
1	2	3	4	5	6	
Stocks and shares of other organizations	510	11 728	107 494	-	-	
Bonds and other debentures	520	990	990	-	-	
Loans granted	530	-	-	-	-	
Other	540	-	-	6 762	24 452	
Additional information:						
Bonds and other securities at market value	550	-	-	-	-	

6. EXPENSES ON ROUTINE ACTIVITIES
Parameter	Line code	Accounting year	Preceding year	
1	2	3	4	
Material costs	610	2 403 987	1 993 583	
Expenses on remuneration of labor	620	297 348	195 884	
Allocations to social needs	630	83 791	74 526	
Depreciation	640	22 242	13 946	
Other expenditures	650	362 388	1 089 476	
Total for cost items	660	3 169 756	3 346 345	
Alteration of balance (growth [+], reduction [-]):
  production in progress	670	(19 417)	(311)	
  deferred expenses	680	-	-	
  reserve for future expenses 	690			

7. SOCIAL INDICATORS
Parameter	Line code	Amounts due according to estimates	Spending	Amounts transferred to funds	
1	2	3	4	5	
Allocations to public off-budget funds:					
social insurance fund	710	9 647	7 093	4 881	
pension fund	720	69 621	-	64 109	
employment fund	730	-	-	-	
medical insurance	740	10 034	143	9 863	
Allocations to pension funds, other than public 	750	-	x	-	
	
Allocations to pension funds, other than public 	750		
Insurance premiums under voluntary pension insurance contracts 	755	-	
Average number of employees registered	760	6 692	
Cash payments and financial inducements, other than those granted for production of goods, works and services	770	463	
Yield on shares and investment in property of organization	780	4 182	

Explanatory note to accounts for 2001
EXPLANATORY NOTE TO ANNUAL REPORT FOR 2001

  JSC Kontsern “KALINA” remains a market leader among producers of perfumery, cosmetics and detergents.

 1. In 2001 the following people were the members of the Board of Directors:
          T. R. Goryayev 
          N. A. Geller
          A. Yu. Petrov 
          V. V. Chuvatin 
          E. D. Petrichenko 
          John Thomas Smith Word 
          Hans Vreeman 
   
   2. Economic transactions of the company are recorded by means of the following accounting methods:
2.1 Fixed assets are registered in the books at the actual acquisition price.
Total value of capital assets of the company is absorbed by a linear charge of depreciation (amortization), based on acquisition cost of the object of capital assets and amortization norms calculated based on the service life. 
 2.2 Objects of little value and objects with short lifetime of the company include material values and objects that serve less than one year, irrespective of their value, and objects of value within the limits fixed in normative acts per unit based on the acquisition price, irrespective of their service life.
Cost of objects of little value and objects with short lifetime in service is absorbed by charging depreciation at the rate of 100% of value, as the goods are delivered from the warehouse and put into service.  Objects of little value that cost one twentieth of the fixed limit per unit at maximum are charged off as they are put into service.
2.3 Service life of intangible assets is determined by the commission of experts acting on a regular basis.
2.4 Original cost of trademarks is amortized proportionally to the volume of output, for other intangible assets linear methods are used to determine amortization charges.
2.5  Actual cost of material resources that are written off for production, is calculated based on the weighted average cost.
2.6 Goods purchased for distribution and sales are registered at acquisition value.
2.7 Traditional calculation variant of production cost accounting is used to classify production costs, calculate product cost and form production results.   
Manufacturing costs, general economic expenditures and auxiliary production costs were allocated between objects of calculation at the end of the reporting period proportionally to variable costs that include wages fund of primary production personnel and cost of materials (primary and accessory materials), which are then written off to the account 20 “Basic production”.  
2.8 Stocks are registered in the accounts at their actual cost: 
- amounts paid in compliance with supply contracts,
- amounts paid to organizations for information and consulting services associated with purchase of stocks, 
- customs duty and other payments, 
- nonrefundable taxes paid in connection with purchase of stocks, 
- compensation paid to intermediaries that provided assistance in purchase of stocks, 
- other expenditures directly associated with purchase of stocks.
  Transport costs and interest on borrowed funds are not included in the actual cost of stocks. 
   Interest on borrowed funds is registered on the account 80 “Profit and loss” as operating expenses.
2.9 Finished products are shown in the balance at the actual production costs.
2.10  Commercial expenses (account 43) are declared in the cost value of products sold, in total amount in the reporting period, when these expenses are acknowledged by registry on the account 46.
2.11  Deferred expenses are shown in the records as a separate entry and are attributed to production (marketing) costs for the period, which the former belong to.
2.12 For long-term works and services (those covered by contracts of service valid for over one year) return on works performed and financial results are calculated after total completion of works under the contract.
2.13  Accounts receivable with expired limitation period (over 3 years) and other debts that were unlikely to be collected were written off based on the decision taken by the manager, at that the amounts indicated were attributed to results of economic activities.
2.14  Net profit of the company will be allocated and used in compliance with the resolution of the annual shareholders’ meeting, which is scheduled for April, 2002.
2.15 Appraisal of production in progress includes value of raw materials, stuffs and semi-finished products.
2.16 Loans and credits obtained are evaluated taking into account interest payable as of the end of the reporting period, in compliance with contracts of debt.
2.17 Expenses on maintenance of capital assets are written off directly to cost value of products released during the current reporting period
2.18  Difference in exchange is registered directly on the financial results account.
Difference in amounts arising from routine activities is registered on accounts of income from routine activities and costs of routine activities.
2.19 Interest on bank credits and loans, bank services are registered as operating expenses on the financial results account 80. 
2.20 Auxiliary production expenses (canteen, medical aid, sport complex, recreation center) are registered on the account 29 “Auxiliary production and facilities”.

3. Tax policy

3.1 For taxation purposes receipts from sales are evaluated, as funds for the products, works, services are received by:  bank establishment – for clearing settlement, cash department of the organization – for cash payments.  
Deviations in tax payments are indicated below, thous. RUR:
                                                           On payment          On shipment        Difference

Tax on profit	                             	658 989               652 069                  +6 918
Highway-user tax                           	37 650                 36 502                  +1 148

3.2 Prime cost for taxation purposes was adjusted subject to the account 43 “commercial expenses”, interest on borrowed funds, settlement and cash services, taking into account the share of sales of products for cash.
3.3  Shares of structural units in profit are calculated based on the average weight of mean headcount of staff and weight of value of fixed capital stock held by these structural units correspondingly, as compared to the total mean headcount and value of fixed capital stock of the company. 

3.4 Tax base for the preceding reporting period is adjusted only for the parent enterprise, without taking into account structural units. 
3.5  Taxes are paid by the parent enterprise:
- to the Federal budget available in the location of the company, 
- to the subjects of the Russian Federation, depending on the location of structural units.

  4 Other material facts:                

4.1  In 2001 two issues of securities were placed:
-  No.4-01-30306-D dated 08.02., based on the resolution to place registered non-documentary coupon bonds, series 001, which was adopted by the Board of Directors on 15.01.01, 
 - No.4-02-30306-D dated 15.11., based on the resolution to place documentary bearer bonds, series 002, which was adopted by the Board of Directors on 28.09.01.
4.2 The charter capital of the company reached RUR 90 207 010 due to additional placement of shares.  Modifications were introduced by the order No.105 dated 20.02 .2001. 
The second increase of the charter capital up to RUR 621 449 070 was caused by additional capital in the amount of RUR 266 250 689 and retained earnings in the amount of RUR 274 991 371.

  5 Affiliated persons and entities

5.1  Hans Johan Vreeman, John Thomas Smith Word, N. A. Geller, T. R. Goryayev, E. D. Petrichenko, V. V. Chuvatin are the affiliated persons, since they are members of the Board of Directors.  No transactions with the aforementioned persons were made. 
5.2  The subsidiary “Pallada-Ukraina”, Kiev, Ukraine, is an affiliated entity, since 100% of its charter capital belongs to JSC Kontsern “KALINA”.  Transactions associated with sales of finished products were carried out with this entity.  As of December 31, 2001 accounts show indebtedness of the subsidiary in the amount of 103 thousand RUR.
5.3 The subsidiary “Pallada-Vostok”, Almalyk, Uzbekistan, is an affiliated entity, since 100% of its charter capital belongs to JSC Kontsern “KALINA”.  Sales transactions were carried out with this entity.  
As of December 31, 2001 accounts show 17474 thousand RUR.

Chief Accountant                               T. G. Babina 

Additional information on accounts for 2001 
Not available

Audit report on accounts for 2001
                                                               AUDIT REPORT

                                                                           PREAMBLE

In compliance with the contract No.14/2001 dated 14.06.2001, signed between JSC Kontsern “KALINA” and the close joint stock company Auditing center “Ural-audit”, JSC Kontsern “KALINA” was audited for the period between January 01, 2001 and December 31, 2001.

The company was audited with assistance of:
Larisa Dmitriyevna Borisova				-  auditor
Auditor certificate of competence No.000322 issued by the Ministry of Finance of the Russian Federation on 24.10.1994.
Nadezhda Nikolayevna Verbitskaya			-  auditor
Auditor certificate of competence No.000323 issued by the Ministry of Finance of the Russian Federation on 24.10.1994.
Alla Petrovna Remchukova				-  auditor
Auditor certificate of competence No.019890 issued by the Ministry of Finance of the Russian Federation on 30.10.1997.

 						REPORT
                                                    issued by the Auditing center “Ural-audit” 
                                                    and presented to the shareholders of JSC Kontsern “Kalina” 
                                                    on accounts of JSC Kontsern “Kalina” for the period between
			   January 01, 2001 and December 31, 2001.

1.  We have audited accounts of JSC Kontsern “Kalina” covering the period between January 01, 2001 and December 31, 2001 enclosed hereto. These reports were drawn by the executive body of JSC Kontsern “Kalina” in compliance with the Law of the Russian Federation “Financial Accounting” No.129-ФЗ dated 21.11.96, and Regulations on financial accounting and accounts in the Russian Federation approved by the order of the Ministry of Finance of the Russian Federation No.34н dated 29.07.98.  
2.  Preparation of these reports is the sole responsibility of the executive body of JSC Kontsern “KALINA”.  Our duty is to express our opinion about reliability of these accounts, based on the audit performed.  
We audited the company in compliance with the federal law “Auditor’s Activities” No.119-ФЗ dated 07.08.2001, and the resolution of the government of the Russian Federation No.482 dated 06.05.94 “Approval of Normative Documents Regulating Auditor’s Activities in the Russian Federation”.   Audit was planned and performed so as to receive reasonable evidence that accounts did not contain any material falsifications.  Audit included selective control of figures and explanations indicated in the accounts.  
We believe that the audit performed provides sufficient evidence supporting our opinion that these accounts are reliable.
3.  We consider the accounts for 2001 enclosed hereto reliable, i.e. the accounts are reported in such manner that they essentially reflect assets and liabilities of JSC Kontsern “Kalina” as of January 1, 2002, and financial outcomes of its activities in 2001, subject to provisions of the federal law “Financial Accounting” No.129-ФЗ dated 21.11.96, Regulations on financial accounting and accounts in the Russian Federation approved by the order of the Ministry of Finance of the Russian Federation No.34н dated 29.07.98, Financial accounting regulations “Accounts of Organizations” approved by the order of the Ministry of Finance of the Russian Federation No.43H dated 06.07.99.

General Manager					N. N. Usmanova

Auditors						L. D. Borisova
							N. N. Verbitskaya
							A. P. Remchukova

April 15, 2002

APPENDIX
Accounts
for the I quarter of 2002
N/A

ACCOUNTING POLICY

                                                                                    APPROVED
                                                                                     Chief Executive Officer 
                                                                             
                                                                                      T. R. Goryayev 
                                                                                      April 29, 2002  

                                                                REGULATIONS
                             ON ACCOUNTING POLICY OF JSC Kontsern “KALINA” 
                                                                        2002

1 GENERAL PROVISIONS

1.1 Accounting practice of JSC Kontsern “KALINA” meets the requirements indicated in the Federal Law No.129-ФЗ dated 21.11.96 “Financial Accounting”;  Financial accounting regulations ПБУ 1/98; Tax code of the Russian Federation, part II.
1.2  Economic transactions accounting is in line with the chart of accounts and subaccounts of the company.  Appendix No.1.
1.3  The joint stock company practices a logbook-and-order system of economic transactions accounting with partially automated centralized accounting department.
1.4  Reporting periods are: 1 quarter, 6 months, 9 months, one year.
Taxable period – one year, ending on December 31.
Annual report must be approved by the general shareholders’ meeting.
Annual reports must be published in the print medium approved by the shareholders’ meeting.

2 APPROVED ACCOUNTING METHODS

2.1  The company estimates property, liabilities and economic transactions in rubles and kopecks.
2.2 Current costs, capital investments and financial investments are registered separately.
2.3  Fixed assets accounting 
Registration unit of fixed assets is an inventory item including all appliances and accessories.                                                    
Fixed assets are registered in the books at the actual acquisition price.
Objects received under the contracts, which stipulate discharge of obligations by means, other than cash, are registered at the cost of valuables assigned by the organization.
The date of registry is the date of acceptance certificate, or the date of application submitted in order to register rights to the object of fixed assets.   
Total value of capital assets of the company is absorbed by a linear charge of depreciation (amortization), based on acquisition cost of the object of capital assets and its service life in compliance with the Resolution of the Government of the Russian Federation No.1 dated 01.01.2002.
For fixed assets leased the increment rate 3 is used.
Expenses on maintenance of fixed assets are registered once only in the reporting period, when these expenses took place.
2.4 Intangible assets accounting 
Registration unit of intangible assets is an inventory item originating from a single document (patent, certificate, contract, etc.), which has its independent functions relevant for production or management.
Intangible assets are registered in the books at the actual acquisition price or the total value of actual expenses associated with their development.
Service life of intangible assets is determined by the commission of experts acting on a regular basis, in compliance with the Appendix No.6.
Acquisition cost of intangible assets is absorbed by a linear charge of depreciation, using the account 05. 
2.5 Stocks accounting 
The following assets are registered as stocks:  
-  stocks used as raw materials, stuffs, etc., for the purposes of production, works and services,
- stocks for sale,
- those used for managerial needs,
- those with maximum service life of 12 months.
To ensure control and safety, records are kept in the breakdown by storage areas and responsible persons.
Stocks are registered in the accounts at their actual cost: 
- amounts paid under supply contracts,
- amounts paid to organizations for information and consulting services associated with purchase of stocks, 
- customs duty and other payments, 
- nonrefundable taxes paid in connection with purchase of stocks, 
- compensation paid to intermediaries that provided assistance in purchase of stocks, 
- other expenditures directly associated with purchase of stocks.
To register deviations in the process of stock-up, the account 16 “Alteration of cost of materials” is used.  Cumulative deviations are written off at the end of the month proportionally to the written-off stocks.
When stocks are released or withdrawn in any other way, they are assessed according to the mean prime cost of a unit or a batch.  
 Goods purchased for distribution and sales are registered at acquisition value.
Goods purchased in exchange for property, other than monetary funds, are registered in the books at the value of property exchanged, as shown in the balance-sheet.
Property given in pledge remains in the possession of the company.  Its value is shown in the balance-sheet of the company.
No reserve for reduction of value of stocks is provided. 
 
2.6 Production costs accounting 
Direct production costs:  raw materials and stuffs, wages and salaries of primary production personnel are registered on the account 20 and form a reduced production prime cost.  
Direct costs:  depreciation, fuel, water, energy, production works are registered on the account 25 “Manufacturing costs” with a further pro rata write-off to the account 20 at the end of the month. 
General economic (indirect) costs – account 26, commercial costs and marketing costs – account 44, are calculated as cost of sales in the reporting period and are registered on the account 90.
 
Production in progress is estimated at the value of raw materials, stuffs and semi-finished products.

Auxiliary production costs – account 23 – are registered on the account 26 “General economic costs”.
Auxiliary production costs – account 29 – are registered on the account 90 “Sales”.

Traditional calculation variant of production costs accounting is used to classify production costs, calculate product cost and form production results.
 
    Manufacturing costs, general economic expenditures and commercial costs are allocated between objects of calculation at the end of reporting period proportionally to direct costs that include wages fund for primary production personnel and cost of materials (primary and accessory materials).

 2.12  Finished products accounting  
Registration unit of finished products is article code.
Finished products are shown in the balance-sheet at standard manufacturing cost. 
Deviations are registered on the account 40 “Release of products”, attributed to costs incurred during the period, and registered on the account 90 “Sales”.

2.13 Deferred expenses are shown in the records as a separate entry and are attributed to production (marketing) costs for the period, which the former belong to. 

2.14 For long-term works and services financial results are calculated after total completion of works under the contract, associated with the object.

2.15 Securities
Difference between the actual expenses on acquisition and nominal value is registered upon redemption or sale.

2.16 Payments under loans and credit payments 
Interest on borrowed funds are attributed to expenditures depending on the aim of drawing a credit: 
- investment – interest paid is registered as increase in capital investments;
- acquisition of material assets – interest paid is registered on the account 16 “Alteration of cost of material assets”;
- replenishment of current assets – interest paid is registered on the account 91 as operating expenses.

Long-term debts are converted to short-term debts, when the primary amount of debt is due in 365 days.
Extra expenses on loans are registered in the total amount as operating costs for the period, when the former took place.
Interest, discounts, coupon yield payable (receivable) are attributed to financial results as soon as the former originate.

2.17 Difference in the amounts 
Difference in the amounts associated with receipts (expenditures) arising from primary type of activity are registered as:
-  receipts (expenses) arising from primary types of activity within the taxable period;
- non-sales profit (expenses) arising outside the taxable period.

2.18 Reserves
Reserves for dubious debts are formed based on the results of taxable period, reserves retained are transferred to the following taxable period.

No reserves for future expenses on maintenance of fixed assets are formed.  Expenditures associated with repairs are registered as cost value of the current period, at actual costs.

No reserves for future payable vacations are formed.
2.18 Net profit of the company is allocated and used in compliance with the resolution of the shareholders’ meeting.
2.19  In order to ensure reliable bookkeeping and accounting data, inventory of property and financial obligations should be made as follows:
-	capital assets – every three years,
-	objects of little value and objects with short lifetime – once a year,
-	raw materials and stuffs – once a year,
-	long-term financial investment – once a year.
Results are shown in the reporting period, when the inventory is made.

3 Tax policy
 
Lodgers are used to calculate taxable basis. 

3.1 Taxable receipts are registered as they are charged.   
     Shares of structural units in profit are calculated based on the average weight of mean headcount of staff and weight of value of fixed capital stock held by these structural units correspondingly, as compared to the total mean headcount and value of fixed capital stock of the company.  
Taxes are paid by the parent company:
- to the Federal budget available in the location of the company, 
- to the subjects of the Russian Federation, depending on the location of structural units
 
3.2  In order to calculate VAT, receipts are registered when the buyer pays for the products.
   Expenses on manufacture of products for export are calculated based on the total expenditures in proportion to the volume of export shipments made during the reporting period, when these products were manufactured.
   The tax is paid by the parent company to the respective authorities in the location of the company.

3.3 In order to calculate highway tax, receipts are registered as they are charged.
The tax is paid by the parent company to the respective authorities in the location of the company.
 
3.4 Local taxes are charged at the tax rates fixed by the local and municipal authorities. 
Taxes are paid by the parent company to the respective authorities in the location of the structural unit.
 
3.5 Individual income taxes and the single social tax are charged and paid by the parent company to the respective authorities in the location of the company. 

3.6 Advance payments are paid in equal portions at the rate of one third  of the quarterly amount payable for the quarter preceding the one, when payments are made.
Payments are made by the parent company to the respective authorities in the location of structural units.
  
Tax declarations are revised and corrected only for the parent enterprise, without taking into account structural units.

4 ACCOUNTING PROCEDURES

4.1 Bookkeeping is performed by the accounting department.
4.2 In-house accounting is performed in compliance with the Appendices No.8, 9.
4.3 Accounting forms shall be approved in compliance with the Appendix No.10 (standard). 

           
Chief Accountant				T. G. Babina

BALANCE-SHEET
	Codes	
Form No.1 – classifier of management documents (ОКУД)	0710001	
as of April 1, 2002	Date (year, month, date)				
Organization:  open joint stock company Kontsern “Kalina”	classifier of enterprises and organizations (ОКПО)	333859	
Taxpayer Identification Number	ИНН	6608000083	
Type of activity:  production	classifier of economic activities, products and services (ОКДП)	18137	
Organizational and legal form/ form of ownership:  open joint stock company	classifier of organizational and legal forms/ classifier of forms of ownership (ОКОПФ/ОКФС)	4  /  7	
Units:  thousand RUR	classifier of units of measure (ОКЕИ)		

ASSETS	Line code	As of the beginning of the reporting period	As of the end of the reporting period	
1	2	3	4	
I. LONG-TERM ASSETS				
Intangible assets (04, 05)	110	14 138	14 065	
patents, licenses, trademarks (service marks), other rights and assets similar to those mentioned	111	-	-	
organizational costs	112	-	-	
business standing of the organization	113	-	-	
Fixed assets (01, 02, 03)	120	249 205	244 886	
land and natural resources used	121	-	12 003	
buildings, machinery and equipment	122	249 205	232 883	
Construction in progress (07, 08, 16, 61)	130	88 305	137 833	
Profitable investment in material values (03)	135	-	-	
property to be leased	136	-	-	
property granted under the contract of rent	137	-	-	
Long-term financial investment (06,82)	140	107 494	121 530	
investment in subsidiaries	141	-	-	
investment in associates	142	-	-	
investment in other organizations	143	106 981	121 017	
loans granted to organizations for a term over 12 months	144	-	-	
other long-term financial investments	145	513	513	
Other long-term assets	150	-	-	
TOTAL for section I	190	459 142	518 314	
II. CURRENT ASSETS				
Inventory	210	893 947	836 238	
raw materials, stuffs and other similar valuables (10, 12, 13, 16)	211	378 992	416 908	
livestock being bred and fed (11)	212	-	-	
production-in-progress costs (costs of circulation) (20, 21, 23, 29, 30, 36, 44)	213	17 724	25 611	
finished products and goods for resale (16, 40, 41)	214	485 824	377 809	
goods shipped (45)	215	-	-	
deferred expenses (31)	216	11 407	15 910	
other inventory and expenses	217	-	-	
Value-added tax on purchased valuables (19)	220	108 060	158 116	
Accounts receivable (payments expected no sooner than on expiry of 12 months after the reporting date)	230	-	-	
buyers and customers (62, 76, 82)	231	-	-	
bills receivable (62)	232	-	-	
arrears of subsidiaries and associates (78)	233	-	-	
advances paid (61)	234	-	-	
other debtors	235	-	-	
Accounts receivable (payments expected within 12 months after the reporting date)	240	988 710	1 894 713	
buyers and customers (62, 76, 82)	241	751 852	1 232 963	
bills receivable (62)	242	-	-	
arrears of subsidiaries and associates (78)	243	-	-	
arrears of contributions to the charter capital to be paid by participants (founders) (75)	244	-	-	
advances paid (61)	245	218 359	638 015	
other debtors	246	18 499	23 735	
Short-term financial investment (56,58,82)	250	35 684	28 267	
loans granted to organizations for a maximum period of 12 months  	251	-	-	
company shares purchased from shareholders	252	10 242	6 520	
other short-term financial investments	253	25 442	21 747	
Funds	260	254 737	334 405	
cash (50)	261	273	408	
settlement accounts (51)	262	29 204	98 240	
foreign currency accounts (52)	263	224 170	235 716	
other funds (55, 56, 57)	264	1 090	41	
Other current assets	270	-	-	
TOTAL for section II	290	2 281 138	3 251 739	
BALANCE (total for the lines 190 + 290)	300	2 740 280	3 770 053	

LIABILITIES	Line code	As of the beginning of the reporting period	As of the end of the reporting period	
1	2	3	4	
III. CAPITAL AND RESERVES				
Charter capital (85)	410	631 449	631 449	
Additional capital (87)	420	136 847	136 847	
Reserve capital (86)	430	7 821	7 821	
reserves set up in compliance with law 	431	-	-	
reserves set up according to constituent documents  	432	7 821	7 821	
Social fund (88)	440	-	-	
Special-purpose funding and receipts (96)	450	-	-	
Retained earnings of previous years (88)	460	816 732	815 910	
Accumulated losses of previous years (88)	465	-	-	
Retained earnings of the accounting year (88)	470	-	78 817	
Accumulated losses of the accounting year (88)	475	-	-	
TOTAL for section III	490	1 592 849	1 670 844	
IV. LONG-TERM LIABILITIES				
Loans and credits (92, 95)	510	5 151	555 134	
bank credits with repayment period over 12 months after the reporting date  	511	-	-	
loans with repayment period over 12 months after the reporting date  	512	5 151	555 134	
Other long-term liabilities	520	-	-	
TOTAL for section IV	590	5 151	555 134	
V. CURRENT LIABILITIES				
Loans and credits (90, 94)	610	440 880	10 514	
bank credits repayable within 12 months after the reporting date   	611	440 880	10 514	
loans repayable within 12 months after the reporting date  	612	-	-	
Accounts payable	620	701 229	1 533 390	
suppliers and contractors (60, 76)	621	466 035	766 977	
bills payable (60)	622	-	-	
amounts payable to subsidiaries and associates (78)	623	-	-	
amounts payable to personnel of the organization (70)	624	19 099	19 008	
amounts payable to public off-budget funds (69)	625	6 072	8 278	
debts to the budget (68)	626	155 156	189 305	
advances received (64)	627	28 098	530 139	
other creditors	628	26 772	19 683	
Arrears of profit payable to participants (founders) (75)	630	171	171	
Deferred income (83)	640	-	-	
Reserves for future expenses (89)	650	-	-	
Other current liabilities	660	-	-	
TOTAL for section V	690	1 142 280	1 544 075	
BALANCE (total for the lines 490 + 590 + 690)	700	2 740 280	3 770 053	
INFORMATION ON AVAILABILITY OF VALUABLES TAKEN STOCK OF ON THE OFF-BALANCE SHEET ACCOUNTS
Parameter	Line code	As of the beginning of the reporting period	As of the end of the reporting period	
1	2	3	4	
Fixed assets rented (001)	910	-	-	
including those leased	911	-	-	
Material assets taken into safe custody (002)	920	-	-	
Goods taken on commission (004)	930	-	-	
Liabilities of insolvent debtors, written off as losses (007)	940	-	-	
Security for liabilities and payments received (008)	950	-	-	
Security for liabilities and payments provided (009)	960	-	-	
Deterioration of housing resources (014)	970	-	-	
Deterioration of amenities, utilities and other similar objects (015)	980	-	-	

PROFIT AND LOSS STATEMENT
	Codes	
Form No.2 – classifier of management documents (ОКУД)	0710002	
as of April 1, 2002	Date (year, month, date)				
Organization:  open joint stock company Kontsern “Kalina”	classifier of enterprises and organizations (ОКПО)	333859	
Taxpayer Identification Number	ИНН	6608000083	
Type of activity:  production	classifier of economic activities, products and services (ОКДП)	18137	
Organizational and legal form/ form of ownership:  open joint stock company	classifier of organizational and legal forms/ classifier of forms of ownership (ОКОПФ/ОКФС)	4  /  7	
Units:  thousand RUR	classifier of units of measure (ОКЕИ)		

on shipment
Parameter	Line code	Figures for reporting period	Figures for analogous period of the previous year	
1	2	3	4	
I. Profits and losses arising from routine activities.  				
(Net) Proceeds of sale of goods, products, works, services (less value-added tax, excises and similar compulsory payments)  	010	962 376	1 062 654	
Cost of sold goods, products, works, services	020	594 369	627 179	
Gross profit	029	368 007	435 475	
Commercial expenses	030	62 656	43 598	
Administrative costs	040	109 447	88 899	
Profit (loss) on sales (lines (010 - 020 - 030 - 040))	050	195 904	302 978	
II. Operating profit and expenses 				
Interest receivable	060	1 499	3 202	
Interest payable	070	15 005	17 633	
Income on participation in other organizations	080	-	-	
Other operating profit	090	2 880	133 174	
Other operating expenses	100	34 246	153 379	
III. Non-sales profit and expenses 				
Non-sales profit	120	8 970	15 864	
Non-sales expenses	130	26 540	21 761	
Profit (loss) before tax (lines 050 + 060 - 070 + 080 + 090 - 100 + 120 - 130)	140	133 462	262 445	
Profit tax and other similar compulsory payments 	150	54 645	54 150	
Profit (loss) arising from routine activities  	160	78 817	208 295	
IV. Extraordinary profit and expenses 				
Extraordinary profit	170	-	-	
Extraordinary expenses	180	-	-	
Net profit (retained profit (losses) of the reporting period) (lines (160 + 170 - 180))	190	78 817	208 295	
ADDITIONAL INFORMATION.
Dividend on share:
preferred shares	201	-	-	
ordinary shares	202	-	-	
Estimated dividend on share in the following accounting year: 
preferred shares	203	-	-	
ordinary shares	204	-	-	

INTERPRETATION OF CERTAIN PROFITS AND LOSSES
Parameter	Line code	Reporting period	Analogous period in the preceding year	
		profit	loss	profit	loss	
1	2	3	4	5	6	
Penalties, default interests and forfeits acknowledged or to be collected by court (arbitration court) decision 	210	-	608	132	2	
Profit (losses) of previous years 	220	-	25 712	-	3 831	
Reimbursement of losses caused by failure to perform obligations or inappropriate discharge of obligations  	230	-	-	-	-	
Exchange difference on transactions in foreign currency  	240	7 947	291	13 544	12 496	
Cost reduction of stocks as of the end of the reporting period 	250	362	-	-	50 579	
Write-off of accounts receivable and accounts payable with expired limitation period 	260	-	34	-	-	

Additional information on accounts for the I quarter of 2002
Not available