UzAuto Motors IFRS Report FY2022

JSC “UZAUTO MOTORS”
Consolidated Financial Statements for the year ended 31

December 2022 and Independent Auditor’s Report
CONTENTS
Page
STATEMENT OF MANAGEMENT’S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE
CONSOLIDATED FINANCIAL STATEMENTS 1
INDEPENDENT AUDITOR’S REPORT 2-5
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 6
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 7
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 8
CONSOLIDATED STATEMENT OF CASH FLOWS 9
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. GENERAL INFORMATION 10
2. BASIS OF PREPARATION 12
3. SIGNIFICANT ACCOUNTING POLICIES 13
4. CRITICAL ACCOUNTING ESTIMATES, AND JUDGEMENTS IN APPLYING ACCOUNTING POLICIES 20
5. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRSs) 21
6. SEGMENT INFORMATION 22
7. BALANCES AND TRANSACTIONS WITH RELATED PARTIES 23
8. PROPERTY, PLANT AND EQUIPMENT 25
9. BANK DEPOSITS 25
10. RESTRICTED DEPOSITS 26
11. CASH AND CASH EQUIVALENTS 26
12. RESTRICTED CASH 26
13. TRADE AND OTHER RECEIVABLES 27
14. INVENTORIES 28
15. SHARE CAPITAL AND OTHER RESERVES 28
16. EARNINGS PER SHARE 29
17. BORROWINGS 29
18. TRADE AND OTHER PAYABLES 30
19. CONTRACT LIABILITIES 31
20. REVENUE FROM CONTRACTS WITH CUSTOMERS 31
21. COST OF SALES 31
22. GENERAL AND ADMINISTRATIVE EXPENSES 32
23. SELLING EXPENSES 32
24. OTHER INCOME, NET 32
25. FINANCE INCOME 32
26. FINANCE COSTS 32
27. NET FOREIGN EXCHANGE LOSS 33
28. INCOME TAXES 33
29. CONTINGENCIES AND COMMITMENTS 33
30. FINANCIAL RISK MANAGEMENT 35
31. MANAGEMENT OF CAPITAL 38
32. FAIR VALUE DISCLOSURES 38
33. EVENTS AFTER THE BALANCE SHEET DATE 38
(in thousands of US Dollars, unless otherwise stated)
1. GENERAL INFORMATION
Organisation and operations
JSC “UzAuto Motors” (the “Company”) and its subsidiaries (together referred to as the “Group”) is a
manufacturer of vehicles and sells vehicles and spare parts under the brand of Chevrolet and Ravon
to dealers and distributors in Uzbekistan and certain CIS countries, particularly Kazakhstan. The
Group ceased the Ravon brand in 2021.
The Company was established on 21 February 2008, based on Decree of President of the Republic of
Uzbekistan № PP-800 in the form of joint stock company (the “JSC”) and is domiciled in Uzbekistan.
The Company changed its name from JSC “General Motors Uzbekistan” to JSC “UzAuto Motors”
effective from 1 July 2019.
In October 2017, JSC “Uzavtosanoat” (the “Parent Company”) and General Motors Company, USA
(“GM”) agreed to create the GM Uzbekistan Alliance, which is a new cooperation platform that
meets the needs of the Uzbekistan growing automotive industry. GM Uzbekistan Alliance also
provides an access to GM’s automotive technologies and know-how. Within the GM Uzbekistan
Alliance, the Parent Company assumes full control over operating activity in the production of cars
and car engines. On 25 August 2020, the Parent Company which is the sole shareholder of the Group
established “UzAuto Passenger Vehicles Management” LLC which became the immediate Parent
Company of the Group (the “Immediate Parent Company”).
The Parent Company is the state-owned company, which is the dominant controlling body
(equivalent of a government Ministry) of the automotive industry within the Republic of Uzbekistan.
As at 31 December 2022, the ultimate controlling party of the Group was the Government of the
Republic of Uzbekistan.
The Company’s registered address is 81 Xumo Street, Asaka, Andijan region, Republic of Uzbekistan.
The Group’s manufacturing facilities are primarily based in Asaka (Andijan Region), Pitnak city
(Khorezm Region) and Tashkent, Uzbekistan. Seven passenger vehicle models under the Chevrolet
brand were produced in these facilities during the year of 2022. The maximum production capacity
of the Company is approximately 415 thousand vehicles annually.
As at the end of the reporting year, the Company owns the following subsidiaries and associate:
Proportion of ownership interest/

voting rights, %
31 December 31 December Nature of
2022 2021 Country business
"Kurgontepa Tibbiyot Diagnostika Markazi" LLC 100% 100% Uzbekistan Healthcare

"Khonobod Sihatgohi" LLC 100% 100% Uzbekistan Service
"Grand Auto Palace" LLC 100% 100% Uzbekistan Service
"Research and Development Center" LLC 100% 100% Uzbekistan R&D
"Avtosanoat-Injiniring" LLC 97.67% 97.67% Uzbekistan Construction
“Uzlogistic” LLC 47.30% 99.66% Uzbekistan Transportation
10
In April 2020 the Group purchased 99.66% of interest in share capital of "UzLogistic" LLC which
specialises in the transportation of goods and logistic services for the cash consideration of US
Dollars 6,280 thousand (at the official exchange rate as at date of the decision of Supervisory Board).
The subsidiary`s activity is non-core to the activities of the group and do not constitute for the major
business line of the group. In 28 April 2022, the Group signed joint-venture agreement with Centrum
Aviation on transfer of control over the subsidiary. Per the agreement, the Group transfers 52.72%
of its shares to Centrum Aviation in exchange for the commitment of the investor to invest into the
share capital of “UzLogistics” LLC USD Dollar 25,000 thousand within next 5 years. As of the
reporting date "UzLogistic" LLC is accounted for as an associate company.
On 19 May 2022, the Supervisory board of the Group made a decision to dispose of "Avtosanoat-
Injiniring" LLC. The disposal had been expected to be completed in May 2023. As of the reporting
date, the buying company notified the Group of its inability to complete the transaction and the
decision to dispose the subsidiary was postponed. The Group disclosed "Avtosanoat-Injiniring" LLC
as a subsidiary in these Consolidated Financial Statements.
As at 31 December 2022 and 2021, the Group had in total 14,144 and 11,196 employees,
respectively.
Business environment
Emerging markets such as Uzbekistan are subject to different risks than more developed markets,
including economic, political and social, and legal and legislative risks. Laws and regulations affecting
businesses in Uzbekistan continue to change rapidly, tax and regulatory frameworks are subject to
varying interpretations. The future economic direction of Uzbekistan is heavily influenced by the
fiscal and monetary policies adopted by the government, together with developments in the legal,
regulatory, and political environment.
Because Uzbekistan produces and exports gold in large volume, its economy is sensitive to the price
of gold on the world market.
During 2022, the gold price was subject to significant fluctuations with the average price of 1,801.87
USD per troy ounce (2021: 1,798.89 USD per troy ounce). At the end of 2022 the Uzbekistan’s gross
domestic product (“GDP”) grew by 5.7%. In 2022, the highest inflation over the past three years was
recorded in the country, amounting to 12.3% per annum (in 2021, inflation was 9.98% per annum).]
The military and political conflict between Russia and Ukraine escalated in early 2022. As a result,
several countries introduced economic sanctions against Russia and Belarus, including measures to
ban new investment and restrict interaction with major financial institutions and many state
enterprises. As a result of these sanctions, the export of labour to Russia and the related level
remittances may also reduce, which could have a negative impact on the economy of Uzbekistan.
The conflict in Ukraine impacted the supply chain operations of the Group. The Group took
measures to prevent negative impact of the sanctions by switching to alternative suppliers.
Moreover, in March 2022, the Uzbekistan Sum depreciated against major foreign currencies amid
the external geopolitical situation. To reduce the negative impact of external factors on the
economy of Uzbekistan, the Central Bank of the Republic of Uzbekistan made a number of
adjustments to the base rate throughout 2022 and fixed it at 15% per annum at the end of the year
comparing to 14% per annum at the beginning of the period. In addition, interventions on the
currency market were performed to support the Uzbekistan Sum exchange rate against foreign
currencies. However, there is uncertainty related to the future developments of geopolitical risks
and their impact on the economy of the Republic of Uzbekistan.
11
Management of the Group is monitoring developments in the economic, political, and geopolitical
situation and taking measures it considers necessary to support the sustainability and development
of the Group’s business for the foreseeable future. However, the consequences of these events and
related future changes may have a significant impact on the Group’s operations.
In December 2022, S&P Global Ratings affirmed its ‘BB-/B’ long- and short-term foreign and local
currency sovereign credit ratings on Uzbekistan. The outlook is stable. The decision was made due to
the comparatively strength in the growth of country’s external debt, improved fiscal policy and
reforms.
In 2022 and 2021, the Group faced broad effects as a result of gradual recovering after pandemic
crisis on the global economy. Accordingly, manufacturers of semiconductor chips used in the
production of passenger cars have reoriented their supply chains to the consumer electronics and
medical sectors. As a result, a shortage of semiconductor chips is affected the Group’s ability to
meet the budgeted volume of cars it is planned to produce during the year. As a measure to increase
the sales in 2022, certain models started to be available for purchase without components such as
audio systems. The Group continues to work closely with GM in order to avoid being a shortage of
semiconductor chips and able to manufacture production plan.
The future effects of the current economic situation and the above measures are difficult to predict,
and management’s current expectations and estimates could differ from actual results.
Management will continue to monitor the potential impact and will take all steps possible to
mitigate any effects.
2. BASIS OF PREPARATION
These consolidated financial statements have been prepared in accordance with International
Financial Reporting Standards (“IFRSs”) as issued by the International Accounting Standards Board.
These consolidated financial statements were authorised for issue by the management on 16 June
2023.
Going concern
Management prepared these consolidated financial statements on a going concern basis. In assessing
its going concern status, management of the Group has taken account of its financial position,
expected future trading performance, its borrowings and other available credit facilities, its forecast
compliance with covenants on those borrowings, its capital expenditure commitments and future
expansion plans, and analysed the impact of macro-economic developments on the operations of the
Group.
Thus, the Group sees its activities as going concern and continuing to be in the foreseeable future. The
Group has neither the intention nor the need to liquidate or significantly reduce the scale of its
operations. The management believes that there are no material uncertainties that may cast
significant doubt on the Group’s ability to continue as a going concern, and, as a result, these
consolidated financial statements have been prepared under the going concern basis of accounting.
12
3. SIGNIFICANT ACCOUNTING POLICIES
Basis of consolidation
Subsidiaries. The consolidated financial statement of the Group incorporate the financial statements
of the Company and all its subsidiaries, from the date that control effectively commenced until the
date that control effectively ceased. Control is achieved where the Company has the power over the
investee, exposure or rights to variable returns from its involvement with the investee and the ability
to use its power to affect its returns. The Company reassesses whether or not it controls an investee if
facts and circumstances indicate that there are changes to one or more of the three elements of
control defined above. Subsidiaries are included in the consolidated financial results of the Company
from the effective date of acquisition up to the effective date of loss of control.
For non-wholly owned, controlled subsidiaries, the net assets attributable to outside equity
shareholders are presented as non-controlling interests in the equity section of the consolidated
statement of financial position. The non-controlling interest may initially be measured either at fair
value or at the non-controlling interest’s proportionate share of the fair value of the subsidiary’s
identifiable net assets. The choice of measurement basis is made on an acquisition-by-acquisition
basis.
All intra-group balances, transactions and any unrealised profits or losses arising from intra-group
transactions are eliminated on consolidation.
Associates. An associates is an entity over which the Group has significant influence and that is
neither a subsidiary nor an interest in a joint venture. Significant influence is the power to
participate in the financial and operating policy decisions of the investee but is not control or joint
control over those policies. Investments in associates are accounted for using the equity method of
accounting and are initially recognised at cost, and the carrying amount is increased or decreased to
recognise the Group’s share of the profit or loss of the associate after the date of acquisition.
Dividends received from associates reduce the carrying value of the investment in associates. Other
post-acquisition changes in the Group’s share of net assets of an associate are recognised as follows:
(i) the Group’s share of profits or losses of associates is recorded in the consolidated profit or loss for
the year as the share of results of associates, (ii) the Group’s share of other comprehensive income
is recognised in other comprehensive income and presented separately, (iii); all other changes in the
Group’s share of the carrying value of net assets of associates are recognised in profit or loss within
the share of results of associates.
When the Group's share of losses of an associate or a joint venture exceeds the Group's interest in
that associate or joint venture (which includes any long-term interests that, in substance, form part
of the Group's net investment in the associate or joint venture), the Group discontinues recognising
its share of further losses. Additional losses are recognised only to the extent that the Group has
incurred legal or constructive obligations or made payments on behalf of the associate or joint
venture.
Unrealised gains on transactions between the Group and its associate are eliminated to the extent of
the Group’s interest in the associate.
Disposals of subsidiaries, associates or joint ventures. When the Group loses control of a subsidiary,
the gain or loss on disposal recognised in profit or loss is calculated as the difference between (i) the
aggregate of the fair value of the consideration received and the fair value of any retained interest
and (ii) the previous carrying amount of the assets (including goodwill), less liabilities of the
subsidiary and any non-controlling interests. All amounts previously recognised in other
13
comprehensive income in relation to that subsidiary are accounted for as if the Group had directly
disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or
transferred to another category of equity as required/permitted by applicable IFRS Standards). The
fair value of any investment retained in the former subsidiary at the date when control is lost is
regarded as the fair value on initial recognition for subsequent accounting under IFRS 9 when
applicable, or the cost on initial recognition of an investment in an associate or a joint venture.
The Group discontinues the use of the equity method from the date when the investment ceases to
be an associate or a joint venture. When the Group retains an interest in the former associate or a
joint venture and the retained interest is a financial asset, the Group measures the retained interest
at fair value at that date and the fair value is regarded as its fair value on initial recognition in
accordance with IFRS 9. The difference between the carrying amount of the associate or a joint
venture at the date the equity method was discontinued, and the fair value of any retained interest
and any proceeds from disposing of a part interest in the associate or a joint venture is included in
the determination of the gain or loss on disposal of the associate or a joint venture. In addition, the
Group accounts for all amounts previously recognised in other comprehensive income in relation to
that associate on the same basis as would be required if that associate had directly disposed of the
related assets or liabilities. Therefore, if a gain or loss previously recognised in other comprehensive
income by that associate or a joint venture would be reclassified to profit or loss on the disposal of
the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as
a reclassification adjustment) when the associate or joint venture is disposed of.
Impairment of investment in associates and joint ventures. If there is objective evidence that the
Group’s net investment in an associate or joint venture is impaired, the requirements of IAS 36 are
applied to determine whether it is necessary to recognise any impairment loss with respect to the
Group’s investment. When necessary, the entire carrying amount of the investment (including
goodwill) is tested for impairment in accordance with IAS 36 as a single asset by comparing its
recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying
amount. Any impairment loss recognised is not allocated to any asset, including goodwill that forms
part of the carrying amount of the investment. Any reversal of that impairment loss is recognised in
accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently
increases.
If the ownership interest in an associate is reduced but the significant influence is retained, only a
proportionate share of the amounts previously recognised in other comprehensive income are
reclassified to profit or loss where appropriate.
Functional currency. The functional currency of the Company and all its subsidiaries of the Group is
the Uzbekistan Sum (“UZS”).
Presentation currency. These consolidated financial statements are presented in US Dollars (“USD”),
as management believes
it is a more convenient presentation currency for its users and a common presentation currency in
the automotive industry.
The translation from functional currency into presentation currency is performed as follows:
• assets and liabilities are expressed in the presentation currency using exchange rates prevailing
at each reporting date;
• profit or loss items are translated at the average exchange rates for the period, unless
exchange rates fluctuated significantly during that period, in which case the exchange
rates at the dates of the transactions are used;
14
• exchange differences, are presented in the Cumulative translation differences within the
statement of changes in equity; and
• cash flows: cash balances at beginning and end of each reporting period presented are
translated at exchange rates at the respective dates. All cash flows are translated at the
average exchange rates for the period presented, unless exchange rates fluctuated significantly
during that period, in which case the exchange rates at the dates of the transactions are used.
Resulting exchange differences, are presented as The effect of translation to presentation
currency.
Exchange rates used in the preparation of these consolidated financial statements are as follows:
31 December 2022 31 December 2021

1 USD exchange rates, UZS
Closing exchange rates at the end of the year 11,225.46 10,837.66
Average exchange rates for the year ended 11,051.22 10,609.98
Foreign currency
In preparing the Group’s consolidated financial statements, transactions in currencies other than
the Group’s functional currency (foreign currencies) are recognised at the rates of exchange
prevailing on the dates of the transactions. At each reporting date, monetary assets and liabilities
that are denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-
monetary items carried at fair value that are denominated in foreign currencies are translated at the
rates prevailing at the date when the fair value was determined. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not retranslated.
Property, plant and equipment. Property, plant and equipment are stated at cost, less accumulated
depreciation and accumulated impairment losses, if any.
Depreciation is calculated on a straight-line method over their estimated useful lives of the assets, as
follows:
Useful lives in years
Buildings and improvements 7-30
Machinery and equipment 5-25
Motor vehicles 5
Computer and office equipment 5-7
The estimated useful lives, residual values and depreciation method are reviewed at the end of each
reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset. The gain or loss arising
on the disposal or retirement of an asset is determined as the difference between the sales proceeds
and the carrying amount of the asset and is recognised in profit or loss.
Impairment of non-financial assets. At each reporting date, the Group reviews the carrying amounts
of its property, plant and equipment to determine whether there is any indication that those assets
have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset
is estimated to determine the extent of the impairment loss (if any). Where the asset does not
generate cash flows that are independent from other assets, the Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent
basis of allocation can be identified, corporate assets are also allocated to individual cash-generating
units, or otherwise they are allocated to the smallest group of cash-generating units for which a
reasonable and consistent allocation basis can be identified.
15
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its
carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its
recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the
relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a
revaluation decrease and to the extent that the impairment loss is greater than the related
revaluation surplus, the excess impairment loss is recognised in profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-
generating unit) is increased to the revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that would have been determined
had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A
reversal of an impairment loss is recognised immediately in profit or loss to the extent that it
eliminates the impairment loss which has been recognised for the asset in prior years. Any increase
in excess of this amount is treated as a revaluation increase.
Financial instruments
Financial assets. Financial assets are recognised in the statement of financial position when the
Group becomes a party to the contractual provisions of the instrument.
Financial assets primarily include Cash and cash equivalents, restricted cash, bank deposits,
restricted deposits, trade and other receivables, loans issued and are measured at amortised cost.
The Group neither applies hedge accounting nor has any financial instruments measured at fair
value through other comprehensive income.
Trade and other receivables. Trade and other receivables are recognised initially at fair value and
subsequently measured at amortised cost using the effective interest method, less ECL
allowance.
Cash and cash equivalents. Cash and cash equivalents include cash in hand, deposits held at call
with banks, and other short-term highly liquid investments with original maturities of three months
or less.
Restricted cash. Restricted cash are excluded from cash and cash equivalents for the purposes of the
consolidated statement of cash flows. Balances of restricted cash reflects the cash exchanged or
used to settle a liability for at least twelve months after the reporting period.
Restricted deposits. Restricted deposits include deposits held with banks and highly liquid
investments with original maturities of more than three months that are restricted from being
exchanged or used to settle a liability. Balances restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period are included in ‘restricted deposits’
within non-current assets.
Impairment of financial assets. The Group recognises a loss allowance for expected credit losses on
investments in debt instruments that are measured at amortised cost, trade receivables and loans
issued, as well as on financial guarantee contracts. The amount of expected credit losses is updated
at each reporting date to reflect changes in credit risk since initial recognition of the respective
financial instrument.
16
The Group always recognises lifetime expected credit losses (ECL) for trade receivables, loans isseud
and financial guarantee contracts. The expected credit losses on these financial assets are estimated
using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors
that are specific to the debtors, general economic conditions and an assessment of both the current
as well as the forecast direction of conditions at the reporting date, including time value of money
where appropriate.
The Group applies simplified approach for impairment of trade and lease receivable. For other
financial assets the Group applies a three-stage model for impairment, based on changes in credit
quality since initial recognition. A financial instrument that is not credit-impaired on initial
recognition is classified in Stage 1. Financial assets in Stage 1 have their ECL measured at an amount
equal to the portion of lifetime ECL that results from default events possible within the next 12
months or until contractual maturity, if shorter (“12 Months ECL”). If the Group identifies a
significant increase in credit risk (“SICR”) since initial recognition, the asset is transferred to Stage 2
and its ECL is measured based on ECL on a lifetime basis, that is, up until contractual maturity but
considering expected prepayments, if any (“Lifetime ECL”).
Derecognition of financial assets. The management of the Group derecognises a financial asset only
when the contractual rights to the cash flows from the asset expire; or it transfers the financial asset
and substantially all the risks and rewards of ownership of the asset to another entity. If the Group
neither transferred nor retains substantially all the risks and rewards of ownership and continues to
control the transferred assets, the Group recognises its retained interest in the asset and an
associated liability for amounts it may have to pay. If the Group retains substantially all the risks and
rewards of ownership of transferred financial asset, the Group continues to recognise the financial
asset and also recognises a collateralised borrowing for the proceeds received.
Financial liabilities. Financial liabilities primarily consist of trade and other payables, borrowings and
dividends payable. They are initially measured at fair value, net of transaction costs. Financial
liabilities are subsequently measured at amortised cost using the effective interest method, with
interest expense recognised on an effective yield basis.
Trade and other payables. Trade payables are accrued when the counterparty performs its
obligations under the contract and are recognised initially at fair value and subsequently carried at
amortised cost using the effective interest method.
Borrowings. Borrowings (consisting of debt securities issued, borrowings from bank, other
borrowings and lease liabilities) are initially recognised at fair value adjusted for directly attributable
transaction costs and are subsequently accounted at amortised cost using the effective interest
method.
Derecognition of financial liabilities. The management of the Group derecognises financial liabilities
when, and only when, the Group obligations are discharged, cancelled or they expire.
Financial guarantees. A financial guarantee contract is a contract that requires the issuer to make
specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to
make payments when due in accordance with the terms of a debt instrument.
Financial guarantee contract liabilities are measured initially at their fair values and, if not
designated as at FVTPL and do not arise from a transfer of an asset, are measured subsequently at
the higher of:
• The amount of the loss allowance determined in accordance with IFRS 9 (see financial assets
above); and
17
• The amount recognised initially less, where appropriate, cumulative amortisation recognised in
accordance with the revenue recognition policies set out above.
Advances paid to suppliers. Advances paid to suppliers are carried at cost less provision for
impairment. Advances paid to suppliers are classified as non-current when the goods or services
relating to the advances paid to suppliers are expected to be obtained after one year, or when the
advances paid to suppliers relates to an asset which will itself be classified as non-current upon
initial recognition. Advances paid to suppliers to acquire assets are transferred to the carrying
amount of the asset once the Group has obtained control of the asset and it is probable that future
economic benefits associated with the asset will flow to the Group. If there is an indication that the
assets, goods or services relating to advances paid to suppliers will not be received, the carrying
value of the advances paid to suppliers is written down accordingly and a corresponding impairment
loss is recognised in profit or loss for the year.
Income tax. Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs
from profit as reported in the statement of profit or loss because it excludes items of income or
expense that are taxable or deductible in other years and it further excludes items that are never
taxable or deductible. The Group liabilities for current tax is calculated using tax rates that have
been enacted or substantially enacted by the end of reporting period.
Deferred tax. Deferred tax is recognised on differences between the carrying amounts of assets and
liabilities in these consolidated financial statements and the corresponding tax basis used in the
computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable
temporary differences, and deferred tax assets are generally recognised for all deductible temporary
differences to the extent that it is probable that taxable profits will be available against which those
deductible temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profits will be available
to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the rates that are expected to apply in the period
in which the liability is settled or the asset realised, based on the tax rates that have been enacted or
substantially enacted by the end of reporting period. The measurement of deferred tax liabilities and
assets reflects the tax consequences that would follow from the manner in which the management
of the Group expects, at the end of reporting period, to recover or settle the carrying amount of its
assets and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when they relate to income taxes levied by
the same taxation authority and the management of the Group intends to settle its current
tax assets and liabilities on a net basis.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are
recognised in other comprehensive income or loss or directly in equity, in which case, the current
and deferred tax are also recognised in the statement of comprehensive income or in the statement
of changes in equity, respectively.
Inventories. Inventories are recorded at the lower of cost and net realisable value. On 1 January
2021, the Group elected to change the cost formula used for inventories for the purposes of
18
consistency with the industry practice. The Group has previously used the first-in, first-out cost
formula. Starting from 1 January 2021, the cost of inventories is determined using the weighted
average cost formula. The Group have assessed that the effect of change was not material to prior
period consolidated financial statements. Net realisable value is the estimated selling price in the
ordinary course of business, less the estimated cost of completion and selling expenses.
Provisions. Provisions are recognised when the Group has a present obligation (legal or
constructive) as a result of a past event, it is probable that the Group will be required to settle that
obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the reporting date, taking into account the risks and uncertainties surrounding
the obligation. Where a provision is measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those cash flows (when the effect of the time
value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, a receivable is recognised as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable can be measured reliably.
Warranties. The Group provides an assurance-type warranty within 3 years or 100,000 km after the
sale (whichever comes first). The Group estimates the costs that may be incurred under its
assurance warranty obligations and records a liability in the amount of such costs when a product is
sold and revenue is recognised. Factors that affect the Group’s warranty liability include the number
of sold units, historical and anticipated rates of warranty claims of each model. The Group
periodically reassesses its warranty liabilities and adjusts the amounts as necessary.
Revenue recognition. Revenue is recognised in the amount of transaction price. Transaction price is
the amount of consideration to which the Group expects to be entitled in exchange for transferring
control over promised goods or services to a customer.
Contract liabilities. Contract liabilities are recognised when cash is received on goods that are to be
delivered in the future periods. Contract liabilities are recorded as liability in the consolidated
statement of financial position, and as the goods are delivered to customers over time, they are
recognised as revenue on the consolidated statement of profit or loss.
The Group realises cars on domestic market through dealers acting as agents. The Group recognises
revenue at a point in time when control is transferred to a final customer. In some cases, customers
have a right to return faulty products, and in other cases – they have a right to have the faulty
product repaired. .
In general, the sales are made with full prepayment terms. The Group applies the practical expedient
for short-term advances received from customers. That is, the promised amount of consideration is
not adjusted for the effects of a significant financing component if the period between the transfer
of the promised good or service and the payment is one year or less.
Share capital. Ordinary shares are classified as equity. Incremental costs directly attributable to the
issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.
Other reserves. Other reserves mainly consist of the amount that the Company and its subsidiaries
allocate (annually 5% of net profit) until the amount of such reserves reaches at least 15% of the
share capital, which can only be used to cover losses for the period, pay off corporate bonds and buy
19
back own shares. Other reserves also include amounts attributable to the sponsorship and charitable
fund as well as the fund for supporting innovative initiatives.
Dividends. Dividends are recorded as a liability and deducted from equity in the period in which they
are declared and approved, respectively. Any dividends declared after the reporting period and
before the consolidated financial statements are authorised for issue are disclosed in the
subsequent events note. The statutory accounting reports of the Group are the basis for profit
distribution and other appropriations. Uzbekistan legislation identifies the basis of distribution as the
current year net profit.
4. CRITICAL ACCOUNTING ESTIMATES, AND JUDGEMENTS IN APPLYING ACCOUNTING POLICIES
In the application of accounting policies, management is required to make judgements that have
a significant impact on the amounts recognised, and to make estimates and assumptions about
the carrying amounts of assets and liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on historical experience and other factors
that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are to be reviewed on an ongoing basis. Revisions
to accounting estimates will be recognised in the period in which the estimate is revised if the
revision affects only that period, or in the period of the revision and future periods if the revision
affects both current and future periods.
Critical judgements in applying accounting policies
The following are the critical judgements, apart from those involving estimations (which are
presented separately below), that the directors have made in the process of applying the Group’s
accounting policies and that have the most significant effect on the amounts recognised in financial
statements.
Liability and litigation risks
During the course of bankruptcy proceedings in respect of CJSC PII “UzDaewoo-Voronezh” and LLC
“UzavtoRus”, subsidiaries of the Group, which are all located in Russia, bankruptcy trustees filed a
lawsuit against the Company and the Parent Company, claiming that the Company was liable under
subsidiary liability for the obligations of CJSC PII “UzDaewoo-Voronezh” and LLC “UzavtoRus”. If the
outcome of these legal proceedings is detrimental to the Group, the Group may be required to pay
substantial compensatory and punitive damages, to pay fines or to carry out other costly actions.
Litigations often involve complex legal issues and are connected with a high degree of uncertainty.
Accordingly, the assessment of whether an obligation exists on the balance sheet date as a result of
an event in the past, and whether a future cash outflow is likely and the obligation can be reliably
estimated, largely depends on estimations by the management. The Group regularly evaluates the
current stage of legal proceedings, also with the involvement of external legal counsel. It is therefore
possible that the amounts of provisions for pending or potential litigation will have to be adjusted
due to future developments. Changes in estimates and premises can have a material effect on the
Group’s future profitability. It is also possible that provisions recognised for some legal proceedings
may turn out to be insufficient once such proceedings have ended. The Group may also become
liable for payments in legal proceedings for which no provisions were established. Although the final
resolution of any such proceedings could have a material effect on the Group’s operating results and
cash flows for a particular reporting period, the management believes that it should not materially
affect the Group’s financial position. Further information on liability and litigation risks and
regulatory proceedings is provided in note 29.
20
Taxation
The taxation system in the Republic of Uzbekistan continues to evolve and is characterised by
frequent changes in legislation, official pronouncements and court decisions, which are sometimes
contradictory and subject to varying interpretation by different tax authorities.
Taxes are subject to review and investigation by various levels of authorities, which have the
authority to impose severe fines, penalties, and interest charges. A tax year generally remains open
for review by the tax authorities during the five subsequent years.
All these circumstances may create tax risks in the Republic of Uzbekistan that are more significant
than in other countries. Management believes that it has provided adequately for tax liabilities
based on its interpretations of applicable Uzbekistan tax legislation, official pronouncements and
court decisions. However, the interpretations of the tax authorities and courts, especially due to
reform of the supreme courts that are resolving tax disputes, could differ and the effect on these
consolidated financial statements, if the authorities were successful in enforcing their
interpretations, could be significant.
Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to the
Group’s chief operating decision maker. The chief operating decision-maker is responsible for
allocating resources and assessing performance of the operating segments. Reportable segments
whose revenue and result are ten percent or more of all the segments are reported separately.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty
at the reporting period that may have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next financial year.
5. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRSs)
In preparing these consolidated financial statements for the year ended 31 December 2022 the Group
applied all the Standards and Interpretations effective for the annual period ended 31 December 2022
for which the first complete set of consolidated financial statements is prepared.
At the date of authorisation of these consolidated financial statements, the Group has not applied the
following new and revised IFRS Standards that have been issued but are not yet effective:
Applicable to annual
reporting periods
New or revised standard or interpretation beginning on or after
IFRS 17 Insurance contracts 1 January 2023
Amendments to IFRS 17 Insurance contracts 1 January 2023
Amendments to IFRS 4 – Extension of the Temporary Exemption from Applying IFRS 9 1 January 2023
Amendments to IAS 8 – Definition of Accounting Estimates 1 January 2023
Amendments to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting Policies 1 January 2023
Amendments to IAS 12 – Deferred Tax Relating to Assets and Liabilities Arising from a
Single Transaction 1 January 2023
Amendments to IFRS 17 – Initial Application of IFRS 17 and IFRS 9 - Comparative
Information 1 January 2023
Amendments to IAS 1 – Classification of Liabilities as Current or Non-current 1 January 2024
Amendments to IFRS 16 – Lease Liability in a Sale and Leaseback 1 January 2024
Amendments to IAS 1 – Non-current Liabilities with Covenants 1 January 2024
21
Management does not expect that the adoption of the Standards listed above will have a material
impact on the consolidated financial statements of the Group in future periods.
6. SEGMENT INFORMATION
The Group’s Executive Board (the Chief Operating Decision Maker (CODM) examines the Group’s
performance from a product perspective and has identified three reportable segments of its business:
• Complete Knock Down (CKD) – manufacturing of automobiles in Asaka and Pitnak regions and
selling them in Uzbekistan and certain CIS countries. The models include Chevrolet Gentra,
Cobalt, Nexia, Spark and Damas;
• Single Unit Pack (SUP basis) – selling imported automobiles on a local market. The models
include Chevrolet Tahoe, Traverse, Equinox, Trailblazer, Malibu, and Tracker which are
imported from Thailand, China, Republic of Korea and USA.
Semi-Knocked Down (SKD basis) – import of sets of partly put together parts with a final assembling on
the Group’s production facilities for sale to customers. The Group has fully ceased this business activity
in 2021 and therefore it doesn’t longer constitute a separate operating segment and thus was included
for the CODM reporting purposes into the SUP segment.
The CODM does not review the segments by assets. All other segments – manufacturing and sale of
spare parts in Uzbekistan and certain CIS countries and other activities, which are not reportable
operating segments, as they are not separately reviewed by the Executive Board in order to make
decisions about resources to be allocated and assess its performance. The Group does not have
material operations outside of the Republic of Uzbekistan.
The CODM review the Group’s internal reporting in order to assess performance and allocate
resources. Internal reporting is based on measures that are different from measures used in these
consolidated financial statements.
Segment information for the reportable segment profit and loss for the year ended 31 December
2022 is set out below:
CKD Asaka CKD Pitnak SUP Total

Revenue from contracts with customers 2,342,001 608,685 314,656 3,265,342
Cost of sales (2,027,629) (464,644) (252,931) (2,745,204)
Selling, general and administrative expenses (291,631) (23,444) (9,769) (324,844)
Other operating income 30,941 437 4,073 35,451
Finance income 32,661 - - 32,661
Finance cost (13,141) (1,870) - (15,010)
Net foreign exchange loss (7,314) (1,311) (87) (8,713)
Segment profit before income tax 65,888 117,853 55,942 239,683
Segment information for the reportable segment profit and loss for the year ended 31 December
2021 is set out below:
CKD Asaka CKD Pitnak SUP Total
Revenue from contracts with customers 1,383,210 448,800 330,516 2,162,526
Cost of sales (1,169,426) (320,360) (267,884) (1,757,670)
Selling, general and administrative expenses (213,863) (20,391) (10,630) (244,884)
Other operating income 40,919 1,042 214 42,176
Finance income 16,786 - - 16,786
Finance cost (9,923) (2,151) - (12,075)
Net foreign exchange loss 3,611 (123) 111 3,599
Segment profit before income tax 51,314 106,817 52,327 210,458
22
Local accounting standards profit before income tax reconciles to IFRS profit before income tax as
follows:
2022 2021
Segment profit before income tax 239,683 210,458
Depreciation (6,515) (13,155)
Net impairment losses on financial assets (10,252) (1,424)
Reclassification of in-kind distribution 40,502 -
Other gains/ (losses) 9,747 3,152
Profit before income tax 273,165 199,031
7. BALANCES AND TRANSACTIONS WITH RELATED PARTIES
Parties are generally considered to be related if the parties are under common control or if one
party has the ability to control the other party or can exercise significant influence or joint control
over the other party in making financial and operational decisions. In considering each possible
related party relationship, attention is directed to the substance of the relationship, not merely the
legal form.
Related parties may enter into transactions, which unrelated parties might not, and transactions
between related parties may not be effected on the same terms, conditions and amounts as
transactions between unrelated parties.
At 31 December 2022, the outstanding balances with related parties specified below were as
follows:
Companies under common control
and significant influence of the
Parent Company Parent Company Total
Loans issued - 4,672 4,672

Trade and other receivables 74 30,544 30,618
Advances paid to suppliers - 207,396 207,396
Borrowings - 380 380
Trade and other payables 6 80,223 80,229
Dividends payable 16,303 - 16,303
The transactions with related parties for the year ended 31 December 2022 were as follows:
Companies under common
control and significant influence
Parent Company of the Parent Company Total
Sales of goods - 14,784 14,784

Other income - 255 255
Raw materials and spare parts 18,131 1,849,341 1,867,472
Dealer's commission - 13,559 13,559
At 31 December 2021, the outstanding balances with related parties were as follows:
control and significant
influence of the Parent
Parent Company Company Total
Restricted deposits 181 181

Loans issued - 2,986 2,986
Trade and other receivables 77 56,800 56,877
Advances paid to suppliers 202 42,466 42,668
Borrowings 2,366 - 2,366
Trade and other payables 349 13,423 13,772
Dividends payable 8,442 - 8,442
23
The transactions with related parties for the year ended 31 December 2021 were as follows:

control and significant influence
Parent Company of the Parent Company Total
Sales of goods 6 8,817 8823

Other income - 219 219
Raw materials and spare parts 7,021 515,162 522,183
Dealer's commission - 19,592 19,592
The Group is a government related entity, as it is ultimately controlled by the Government of the
Republic of Uzbekistan. Therefore, in respect of other related parties’ transactions except for those
disclose above, the Group chose to apply the exemption in IAS 24 Related Party Disclosures in
relation to its government related transactions and outstanding balances, including commitments.
The table below summarises individually significant government related balances:

2022 2021
Cash and cash equivalents 63,999 117,439

Restricted cash 59,498 66,292
Restricted deposits - 5,414
Bank deposits 417,236 84,262
Total individually significant government related balances 540,703 273,407
Other government related balances and transactions that are collectively, but not individually,
significant are represented by tax, customs, utility and similar charges.
Key management compensation

Key management includes General Director, twenty-one other members of the Executive Board and
the Chief Accountant.
Key management compensation is presented below:

2022 2021
Short-term benefits:
Salaries 2,582 753
Short-term bonuses 467 249
State pension and social security costs 364 118
Total key management compensation 3,413 1,120
24
8. PROPERTY, PLANT AND EQUIPMENT

Movements in the carrying amount of property, plant and equipment were as follows:
Advances,
Buildings construction in
and Machinery Computer progress and
improve- and Motor and office equipment for
ments equipment vehicles equipment installation Total
Cost at 1 January 2021 135,322 730,369 37,525 15,106 103,265 1,021,587

Accumulated depreciation (71,221) (577,372) (33,308) (13,929) - (695,830)
Carrying amount at 1 January 2021 64,101 152,997 4,217 1,177 103,265 325,757
Additions - - - - 251,315 251,315
Disposals (10) (5,394) (180) (38) - (5,622)
Transfers 7,217 38,610 3,583 801 (50,211) -
Depreciation charge (4,876) (25,383) (1,433) (537) - (32,229)
The effect of translation to presentation
(2,182) (5,256) (182) (44) (7,663) (15,327)
currency
Carrying amount at 31 December 2021 64,250 155,574 6,005 1,359 296,706 523,894
Cost at 31 December 2021 137,865 694,450 36,435 13,758 296,706 1,179,214
Additions - - - - 127,467 127,467
Disposals (5,872) (1,148) (3,194) (40) (10,547) (20,801)
Transfers 20,437 68,461 3,338 1,170 (93,406) -
Depreciation charge (4,820) (27,537) (1,558) (689) - (34,604)
The effect of translation to presentation
(2,370) (5,987) (185) (54) (10,615) (19,211)
currency
Cost at 31 December 2022 147,188 735,100 34,753 12,924 309,605 1,239,570
As at 31 December 2022, machinery and equipment includes assets, such as production accessories
tools that have been provided to a third party for the production of auto components specifically
for the benefit of the Group. These assets are amounted to US Dollar 20,823 thousand (31
December 2021: US Dollar 13,419 thousand).
As at 31 December 2022, part of the advances, construction in progress and equipment for
installation additions during the period includes advances paid in respect of development of new
SUV-B and B segment models under Global Emerging Markets (“the GEM”) platform totalling US
Dollar 89,334 thousand (31 December 2021: US Dollar 58,923 thousand). As at the reporting date,
major part of the advances, construction in progress and equipment for installation includes
construction expenditure incurred in relation to welding workshop in relation to new segment
models under the GEM platform.
As at 31 December 2022, the gross carrying amount of fully depreciated property, plant and
equipment still in use is US Dollar 400,631 thousand (31 December 2021: US Dollar 403,015
thousand).
9. BANK DEPOSITS
31 December 31 December
2022 2021
- Saving deposits 530,054 195,062

- Term deposits 77,859 120,642
Total bank deposits 607,913 315,704
Less short-term portion 432,132 124,290
Total long-term bank deposits 175,781 191,414
25
2022 2021
- B1 rating (Moody's) 417,236 74,754

- B- rating (S&P) 100,533 197,109
- BB- rating (Fitch) 45,106 39,227
- B2 rating (Moody's) 45,038 4,614
Total bank deposits 607,913 315,704
Total long-term bank deposits 175,781 191,414
As at 31 December 2022, the interest rate on deposits ranged from 2% to 19% per annum (31
December 2021: 1.5% to 17% per annum) depending on maturity and nominal currency.
10. RESTRICTED DEPOSITS
Restricted deposits consist mainly of term and saving deposits with JSCB “Kapitalbank” ((B-)-S&P
(2021: (B-)-S&P) at The Central Bank of the Republic of Uzbekistan (“CBU”) rate+2-3% per annum
(2021: JSCB “Asaka” (B1 – Moody`s) at 7.5% per annum), which are held in order to accumulate cash
to secure obligations under letter of credit. The deposits mature in 2024.
11. CASH AND CASH EQUIVALENTS
2022 2021
Cash and cash equivalents in UZS 49,729 41,393

Cash and cash equivalents in foreign currencies 46,831 94,627
Total cash and cash equivalents 96,560 136,020
The credit quality of cash and cash equivalents balances at year end is summarised based on
Moody’s and S&P’s ratings as follows:
2022 2021
- B1 rating (Moody's) 64,016 124,884

- B- rating (S&P) 31,673 11,074
- BB- rating (S&P) 871 62
Total cash and cash equivalents 96,560 136,020
12. RESTRICTED CASH
Restricted cash mainly includes cash resources in the amount of US Dollars 59,498 thousand
(2021: US Dollars 65,044 thousand) in JSCB “Asaka” (B1 - Moody's), which are subject to restrictions
stipulated by the regulations of the letter of credit transaction with JSCB “Asaka”. Therefore, they
are not available for immediate or general business use by the Group until the full execution of
contracts with suppliers.
26
13. TRADE AND OTHER RECEIVABLES

2022 2021
Trade receivables from legal entities 72,164 73,425

Trade receivables from individuals 10,039 26,882
Other financial receivables 59,679 75,335
Less expected credit loss allowance (23,925) (14,326)
Total financial assets within trade and other receivables 117,957 161,316
Prepayments 61,065 45,460
Total trade and other receivables 179,022 206,776
The credit period on sales of goods is 30-180 days. No interest is charged on outstanding trade
receivables.
Sales to domestic customers are mainly carried out under the terms of full and partial payment in
advance that reduces exposure to credit risk. Sales to foreign customers are carried out under the
terms of partial payment in advance and credit payment. Other financial receivables consist of
receivables derived from activities other than the core business of the Group.
The Group writes off a trade receivable when there is information indicating that the debtor is in
severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has
been placed under liquidation or has entered into bankruptcy proceedings, or when the trade
receivables are over two years past due, whichever occurs earlier.
During 2015, the Group has fully provided for the loans issued to distributors UzAvtoRus and CJS
UzDaewoo Auto Voronezh in the amount of USD 147,209 thousand and trade receivables from the
distributors in the amount of USD 118,319 thousand. These balances were fully written off by the
management in 2017.
Movement in the allowance for expected credit losses on trade and other accounts receivables are
as follows:
2022 2021
At 1 January 14,326 13,377

Accrual of allowance 10,252 1,424
Effect of translation to presentation currency (653) (475)
At 31 December 23,925 14,326
The analysis of trade and other financial receivables is as follows:
2022 2021
Trade receivables secured by insurance against financial risks 10,039 26,882
Trade and other financial receivables not past due 105,118 134,075
Trade and other receivables past due and collectively assessed
- less than 180 days overdue 2,834 363
- over 180 days overdue 12,213 2,973
Total trade and other financial receivables past due and collectively
15,047 3,336
assessed, gross
Trade and other financial receivables individually determined to be
11,678 11,349
impaired, gross
Expected credit loss allowance
Allowance for expected credit losses assessed on portfolio basis (12,247) (2,977)
Allowance for expected credit losses assessed on an individual basis (11,678) (11,349)
Total expected credit loss allowance (23,925) (14,326)
Total financial assets within trade and other receivables 117,957 161,316
27
14. INVENTORIES
2022 2021
Goods in transit 271,621 247,207

Raw materials and spare parts 455,528 232,010
Finished goods 230,117 167,952
Work in progress 266,313 119,867
Total inventories 1,223,579 767,036
The increase in raw materials and spare parts is due to increased demand for vehicles and inventory
requirements for the production new models. The increase in finished goods at the year-end is due
to the commencement of production of new model within the framework of the GEM project.
Work in progress as at 31 December 2022 includes cars completed but awaiting installation of
components affected by semiconductor supply shortage, after which, it will proceed through an
additional quality review process prior to being shipped to customers.
During 2022 and 2021, the Group did not pledge inventory as security.
15. SHARE CAPITAL AND OTHER RESERVES
Share capital
The nominal registered amount of the Company’s issued share capital as at 31 December 2022 was
US Dollars 357,790 thousand (2021: US Dollars 266,667 thousand). Based on the Shareholder’s
decision, the Group has capitalised retained earnings in the amount of US Dollar 91,123 thousand
during the year ended 31 December 2022. The Immediate Parent Company is the sole shareholder
of the Company.
In accordance with the decision of shareholder #10-2022 dated 25 November 2022, the par value of
a share was increased from 1 Uzbekistan Sum per share to 5,000 Uzbekistan Sum per share by
decreasing the number of shares from 1,350,000,000 thousand shares to 270,000 thousand shares.
The total authorised number of ordinary shares at 31 December 2022 was 270,000 thousand shares
(2021: 344,000,017 thousand shares) with a par value of Uzbekistan Sum 5 000 per share (2021:
Uzbekistan Sum 1 per share). All authorised ordinary shares have been issued and fully paid and
each ordinary share carries one vote. They entitle the holder to participate in dividends, and to share
in the proceeds of winding up the Company in proportion to the number of and amounts paid on the
shares held.
Additional paid in capital mainly comprises the Trademark License Agreement contributed by
General Motors, gains on borrowings at discounted interest rates from the Parent Company and
other financing obtained from shareholders in the total amount of US Dollars 131,611 thousand
(2021: US Dollars 131,611 thousand).
Other reserves include additional reserve funds formed on net profit of prior years in accordance
with local legislation for US Dollars 96,604 thousand (2021: US Dollars 96,604 thousand).
During 2022, dividends in the amount of US Dollars 73,790 thousand were declared and US Dollars
61,615 thousand were paid. During 2021 dividends in the amount of US Dollars 8,442 thousand were
declared and paid in January 2022.
28
During the year ended 31 December 2022, following the Orders of the state regulatory and
supervisory authorities the Group made in-kind distribution in a form of charity and sponsorship
contributions in the amount of US dollars 40,503 thousand and US dollar 26,422 thousand were
paid.
16. EARNINGS PER SHARE
The calculation of the basic and diluted earnings per share (“EPS”) is based on the following data:
2022 2021
Earnings:
Earnings for the purposes of basic earnings per share being net profit
235,144 166,017
attributable to owners of the Company
Earnings for the purposes of basic earnings per share 235,144 166,017
Number of shares: 2022 2021

Weighted average number of ordinary shares for the purposes of EPS 185,709,592 68,800,003
The denominator for the purposes of calculating basic earnings per share has been adjusted to
reflect the capitalisation of retained earnings into share capital in 2022. As of the date of the
consolidated financial statements there were no any financial instruments or other contracts that
would entitle their holders to ordinary shares.
2022 2021
US Dollars US Dollars
Basic earnings per share 1.27 2.41
17. BORROWINGS
Carrying amounts
2022 2021
Eurobonds due in 2026 301,944 301,272

Borrowings from banks 10,252 26,286
Other borrowings 381 1,184
Total borrowings 312,577 328,742
Total long-term borrowings 302,707 299,915
Eurobonds due in 2026
The Group’s Debt securities issued are US Dollar denominated quasi-sovereign unsecured corporate
bonds in the amount of US Dollar 300,000 thousand, issued on 27 April 2021 on the London Stock
Exchange under the Rule 144A and Reg S with coupon rate 4.85% and transaction cost of US Dollar
1,400 thousand. The maturity date of bonds is May 2026.
In accordance with the bond issuance agreement, there are a number of financial covenants,
principally to have a consolidated net leverage ratio of less than 3.75, and non-financial covenants.
As at 31 December 2022 and 31 December 2021, the Group was in compliance with the covenants.
29
US Dollar-denominated ECA facility made by Credit Suisse AG
The Group’s ECA facility is a US Dollar-denominated facility agreement signed between the Group
with Credit Suisse AG and Raiffeisen Bank International AG in the amount of US Dollar 48,000
thousand on 27 September 2022 for the purchase of property, plant and equipment. As at the end
of the year, US Dollar 3,000 thousand have been drawn under this agreement.
In accordance with the agreement, there are a number of financial covenants, principally to have a
consolidated net leverage ratio of less than 3.75, gearing ratio of less than 2.25 and non-financial
covenants. As at 31 December 2022 and 31 December 2021, the Group was in compliance with the
covenants.
Reconciliation of liabilities arising from financing activities was as follows:

Total borrowings
1 January 2021 11,681
Proceeds from borrowings 323,861
Repayment of borrowings (239,899)
Interest paid (11,825)
Total cash flow 72,137
Interest expense 6,507
Interest capitalised 9,521
Foreign exchange loss 5,876
The effect of translation to presentation currency (10,090)
31 December 2021 328,742
Proceeds from borrowings 6,830
Repayment of borrowings (23,189)
Interest paid (15,541)
Total cash flow (31,900)
Interest expense 8,195
Interest capitalised 8,174
Foreign exchange loss 10,563
The effect of translation to presentation currency (11,197)
31 December 2022 312,577
18. TRADE AND OTHER PAYABLES

2022 2021
Trade payables 458,632 433,702

Other trade payables 36,635 8,200
Total trade and other payables 495,267 441,902
Trade payables principally comprise amounts outstanding for short-term trade purchases and
ongoing cost from the Group’s main foreign supplier – GM Korea Company and other local suppliers
of auto components purchased for the assembly of passenger vehicles. The average credit period
taken for purchases from suppliers is from 60 days to 120 days. No interest is charged on the trade
payables.
Other trade payables consist of payables derived from activities other than the core business of the
Group.
The management consider that the carrying amount of trade payables approximates to their fair
value.
30
19. CONTRACT LIABILITIES
As at 31 December 2022 the majority of contract liabilities are advances received for sale of cars in
the amount US Dollars 1,739,814 thousand (31 December 2021: 845,245). The increase is due to
high demand for vehicles and the impact of the global chip shortage.
In 2022 and 2021, US Dollars 772,008 thousand and US Dollars 234,255 thousand of revenue was
recognised in the current reporting period to the contract liabilities in the form of advances received
from customers as at 31 December 2021 and at 31 December 2020, respectively.
20. REVENUE FROM CONTRACTS WITH CUSTOMERS
The Group derives revenue from the transfer of goods at a point in time in the following major
product lines and geographical regions:
2022 2021
Domestic sales
Cars 2,734,154 1,752,133
Spare parts 42,561 36,741
Other 17,342 14,956
Total domestic sales 2,794,057 1,803,830
Export sales
Cars 463,991 352,831
Spare parts 7,367 5,672
Total export sales 471,358 358,503
Total revenue from contracts with customers 3,265,415 2,162,333
The Group’s export sales mainly represent sales to Kazakhstan in the amount of US Dollars 441,337
(2021: US Dollars 337,856) while the rest are sales to other CIS countries.
The Group sells vehicles under the following brands:

2022 2021
Chevrolet 3,198,145 2,083,914

Ravon - 21,050
Total revenue from sales of cars 3,198,145 2,104,964
Sales prices are approved by Supervisory Board for both domestic and export markets. Domestic and
export sales are carried out principally through domestic and foreign dealers respectively.
21. COST OF SALES

2022 2021
Raw materials and spare parts 2,881,775 1,877,886

Royalty fees 75,842 66,412
Payroll costs 72,112 50,636
Depreciation 29,523 27,446
Other 22,634 14,885
Change in inventories of finished goods and work in progress (246,272) (200,320)
Total cost of sales 2,835,614 1,836,945
31
22. GENERAL AND ADMINISTRATIVE EXPENSES

2022 2021

Taxes other than income tax 12,379 6,247
Services 12,150 22,440
Fees and other charges 7,018 6,843
Charity 3,669 6,356
Depreciation 3,391 4,433
Material expenses 1,250 8,509
Other 3,005 7,887
Total general and administrative expenses 77,542 93,053
23. SELLING EXPENSES

2022 2021
Dealers' commission 37,790 22,083

Transportation costs 23,488 14,734
Material expenses 7,736 8,705
Depreciation 1,690 855
Fees and other charges - 1,669
Other 2,218 1,522
Total selling expenses 84,140 57,323
24. OTHER INCOME, NET

2022 2021
Gain on disposal of subsidiary 7,570 -

Tax refund 6,205 -
Loss arising on disposal of fixed assets (2,362) (4,271)
Reimbursement 3,493 24,518
Other 7,349 6,716
Total other income, net 22,255 26,963
During the year the Group was refunded an amount from tax authorities that was withdrawn in the
year ended 31 December 2020. The group expensed this amount in the period when it was
withdrawn.
The gain on disposal of subsidiary arose from the loss of control of “Uzlogistic” LLC when 52.7% of
the shares were sold during the year. Further information on the partial disposal of "Uzlogistic" LLC
is provided in Note 1.
25. FINANCE INCOME

2022 2021
Interest income from financial instruments measured at amortised cost:
Bank deposits 29,670 10,228
Other 8,333 9,832
Total finance income 38,003 20,060
26. FINANCE COSTS

2022 2021
Interest expenses on trade payables 7,717 7,036

Interest expenses on borrowings 8,195 6,507
Other 28 1,308
Total finance costs 15,940 14,851
32
Interest expenses on borrowings mainly includes interest accrued on Eurobonds using the effective
interest rate method.
27. NET FOREIGN EXCHANGE LOSS
Foreign exchange loss relates to following financial assets and liabilities:
2022 2021
Foreign exchange loss on operating activities 21,067 2,937

Foreign exchange gain on investing activities (2,025) (2,084)
Revaluation of bank loans 10,675 5,876
Total net foreign exchange loss 29,717 6,729
28. INCOME TAXES
Details of current income tax expense for the years ended 31 December 2022 and 2021:
2022 2021
Current tax expense 35,910 36,119

Origination and reversal of temporary differences 2,136 (3,107)
Total income tax expense 38,046 33,012
The charge for the year can be reconciled to the profit before tax as follows:
2022 2021
Profit before tax 273,165 199,031

Income tax at statutory rate (15%) 40,975 29,855
Tax effect of non-taxable income (931) -
Tax effect of non-deductible expenses 4,332 4,550
Other (6,330) (1,393)
Income tax expense for the year 38,046 33,012
The following are the major deferred tax assets and liabilities recognised by the Group and
movements thereon during the current and prior reporting periods.
Property,
plant and Other Total
equipment
At 1 January 2021 (35,015) 9,089 (25,926)

Charge to profit or loss
-origination and reversal of temporary differences 3,089 18 3,107
The effect of translation to presentation currency 1,100 (303) 797
At 31 December 2021 (30,826) 8,804 (22,022)
Charge to profit or loss
-origination and reversal of temporary differences 1,064 (3,200) (2,136)
The effect of translation to presentation currency 1,049 (256) 793
At 31 December 2022 (28,713) 5,348 (23,365)
29. CONTINGENCIES AND COMMITMENTS
33
Legal proceedings
Prior to 2018, the Group guaranteed the debts of certain related parties (dealers) operating in
Russian Federation under loan agreements with Russian banks. During the course of the bankruptcy
cases of these dealers, some creditors filed a lawsuit demanding to hold the Group and some other
parties liable for the obligations of these entities.
CJSC PII “UzDaewoo-Voronezh”
On 8 October 2020, a lawsuit was filed against the Group demanding to hold the Group liable as
guarantor for obligations of CJSC PII “UzDaewoo-Voronezh”.
The court hearings of first instance concerning CJSC PII “UzDaewoo-Voronezh” case has been held
on 24 May 2022. The Voronezh Arbitration Court ruling dated 23 December 2022 found there were
grounds for holding the Company responsible for the obligations of CJSC PII “UzDaewoo-Voronezh”
and made a decision to hold liable the Group under the subsidiary liability. The Group has submitted
relevant appeal on 13 of February 2023 to Voronezh Nineteenth Arbitration Court of Appeal, which
was rejected on 14 April 2023. On 15 May 2023, the Group submitted cassation appeals to the
Voronezh Central District Arbitration Court against the Ruling of Voronezh Arbitration Court dated
31 January 2023, and against the Resolution of the Nineteenth Arbitration Court of Appeal dated 14
April 2023, which is currently under review and no decision provided as of the reporting date.
The amount of the claims attributable to the Company might range up to Russian Roubles 10,337
million (equivalent of US Dollars 144,242 thousand) per Russian regulations.
As of the date of these consolidated financial statements, it is assessed that the risk of unfavourable
outcome for the Group was determined as possible due to the following: (i) the bankruptcy of the
relevant companies occurred during a major crisis in the automotive market in Russia, with many
international suppliers ceasing to deliver cars to Russia and (ii) the statute of limitation for holding
liable under certain lawsuits has expired. The Company assessed that it is not probable that the
lawsuits will result in holding the Company liable for obligations of the Russian entities thus the
Company did not accrue any provision in these consolidated financial statements.
LLC “UzavtoRus
On 5 February 2019, a lawsuit was filed against the Group demanding to hold the Company and the
Parent Company liable as guarantor for obligations of LLC “UzavtoRus”. The Moscow Arbitration
Court ruling dated 23 March 2021 found there were grounds for holding the Company responsible
for the obligations of LLC "UzavtoRus". The Company and the Parent Company has submitted
relevant appeals in two instances, which were not satisfied by both courts of appeal. The Group has
submitted the application to the Supreme Court to appeal the decision of the Arbitration Court. On
21 January 2022, the Supreme Court of the Russian Federation refuses to take over the proceeding.
By the ruling of the Moscow Arbitration Court dated 10 February 2022, the proceedings on the case
were resumed to determine the amount of liability. On 22 June 2022, the Company was hold liable
for obligations of LLC “UzavtoRus” based on the ruling of the Moscow Arbitration Court. The amount
of the claim attributable to the Company is Russian Roubles 3,405 million (equivalent to US dollar
47,513 thousand). Taking into the consideration that the direct execution of decisions of Russian
courts requires an appeal to the courts of the Republic of Uzbekistan, complexity of execution of the
decisions taken by Russian court in another jurisdiction, as well as the fact that there are grounds to
refuse the endorsement of the decision by the courts in the Republic of Uzbekistan, since the
Moscow Arbitration Court disregarded the argument that the limitation period was missed, which
may contradict the basic principles of the legislation of the Republic of Uzbekistan, the management
of the Group evaluates the possibility of the outflow of resources from the Group in order to settle
34
the case as not probable. Accordingly, no provision for the liability for the obligations of LLC
“UzavtoRus” has been made in these consolidated financial statements.
The Group determines its best estimate of contingent liabilities on the basis of the information
available at the date of preparation of the consolidated financial statements. This assessment may
change over time and is adjusted regularly on the basis of new information and circumstances.
From time to time, in the normal course of business, the Group is named as a defendant in various
other legal actions, including arbitrations and other litigations that arise in connection with the
business. Concerning matters for which the Group believes that losses are probable and can be
reasonably estimated, the Group has established respective reserves. In many proceedings,
however, it is inherently difficult to determine whether any losses are probably or even reasonably
possible or to estimate the size or range of the possible losses. Accordingly, it is possible that an
adverse outcome from such proceedings could exceed the amounts accrued in an amount that could
be material to the consolidated financial statements of the Group, and its results of operations or
cash flows in any particular reporting year.
Capital expenditure commitments
As of 31 December 2022, the Group has contractual capital expenditure commitments in respect of
development of new SUV-B and B-segment models under the GEM platform totalling US Dollars
6,063 thousand (31 December 2021: US Dollars 73,892 thousand). The Group has already allocated
the necessary resources in respect of these commitments. The Group believes that future net
income and funding will be sufficient to cover these and any similar commitments.
Guarantees
Guarantees are irrevocable assurances that the Group will make payments in the event that another
party cannot meet its obligations. At 31 December 2022, the Group has guaranteed obligations of
debts of JSC Uzauto Motors Powertrain under loan agreements with Credit Suisse totalling US
Dollars 105,000 thousand and debts of local suppliers under loan agreements with JSCB
“Kapitalbank” totalling US Dollars 28,000 thousand (31 December 2021: none). Furthermore, the
Group estimates the costs that may be incurred under its assurance warranty obligations and
records a liability in the amount of such costs when a product is sold and revenue is recognised.
Factors that affect the Group’s warranty liability include the number of sold units, historical and
anticipated rates of warranty claims of each model. Historically, there were no significant claims for
warranties obligations.
30. FINANCIAL RISK MANAGEMENT
The Group’s activities expose it to a variety of financial risks: market risk (including foreign currency
risk and interest rate risk), credit risk and liquidity risk. The overall risk management program seeks
to minimise potential adverse effects on the financial performance of the Group.
Market risk – Foreign currency risk
Currency risk is the risk that the financial results of the Group will be adversely affected by changes
in exchange rates to which the Group is exposed. The Group undertakes transactions denominated
in foreign currencies mainly in relation to the import of goods and spare parts from foreign
suppliers. The Company’s borrowing are denominated in US Dollars and Euro, substantial portion of
outstanding balance of bank deposits and cash and cash equivalents are denominated in US Dollars.
The table below summarises the Group’s exposure to foreign currency risk:
35
Monetary financial assets Monetary financial liabilities
31 December 2022 31 December 2021 31 December 2022 31 December 2021
US Dollars 337,829 315,552 (494,789) (652,899)

Euro 82 1,521 (1,867) (23,798)
Currency risk is monitored regularly by performing a sensitivity analysis of foreign currency positions
in order to verify that potential effects are within planned parameters. The table below details
the Group’s sensitivity to changes in exchange rates by 10% which is the sensitivity rate used by
the Group for internal analysis. The analysis was applied to monetary items at the reporting dates
denominated in the respective currencies.
If the USD or EUR exchange rate would strengthen by 10% for the years ended 31 December 2022
and 2021 compared to UZS as of the end of respective year, the Group would have incurred
the following losses:
Effect on profit or loss and equity For the year For the year
ended ended
2022 2021
Loss (USD exchange rate strengthening by 10% as compared to UZS) 15,696 33,735
Loss (EUR exchange rate strengthening by 10% as compared to UZS) 172 2,228
Market risk - Interest rate risk
Interest rate risk arises from the possibility that changes in interest rates will affect the value of the
financial instruments. The Group uses financial instruments with both fixed and floating interest
rates to minimise exposure to interest rate risk.
As at 31 December 2022 and 2021 years, the structure of the Group’s financial instruments with
floating interest rates was as follows:
Floating interest Floating interest
rate as at rate as at
2022 2021
Bank deposits 158 59,828
Borrowings (3,069) (22,116)
The table below presents a sensitivity analysis of interest rate risk, which has been calculated based
on reasonably possible changes in interest rate on financial instruments with floating interest rate.
The level of these changes is determined by management. The sensitivity analysis below presents
the effect of a 100 basis point change in interest rates effective on the reporting date with the
assumption that the rates and other factors remain unchanged for the years ended 31 December
2022 and 2021, the Group would have incurred the following losses:
Effect on profit or loss and equity For the year ended For the year ended
31 December 2022 31 December 2021
Interest rate increase by 1% (29) (377)
Interest rate decrease by 1% 29 377
Credit risk
36
Credit risk arises from the possibility that counterparties to transactions may default on their
obligations, causing financial losses for the Group. Financial assets, which potentially subject Group
entities to credit risk, consist principally of trade receivables as well as cash and deposits. The
objective of managing credit risk is to prevent losses of liquid funds deposited with or invested in
financial institutions or the loss in value of receivables.
As at 31 December 2022, balances with one financial institution were individually more than 10%,
and in aggregate represent 86% of cash and cash equivalents of the Group (31 December 2021: one
financial institution represented 86%).
As at 31 December 2022, balances with one financial institution were individually more than 10%,
and in aggregate represent 91% of restricted cash of the Group (31 December 2021: one financial
institution represented 94%).
As at 31 December 2022, balances with one financial institutions were individually more than 10%,
and in aggregate represent 76% of bank deposits of the Group (31 December 2021: 3 financial
institutions represented 89%).
As at 31 December 2022, there were no balances with financial institutions that were individually
more than 10%, in restricted deposits of the Group (31 December 2021: 4 financial institutions
represented more than 10%).
Local sales are mainly carried out under the terms of full and partial payment in advance that
reduces exposure to credit risk. The Group does not have any limits, customer credit history or credit
profiles in respect of domestic customers. The Group’s customer base is very diverse including a
significant number of individuals and legal entities; therefore, concentration of credit risk is very low.
Although the collection of receivables could be influenced by economic factors, management

believes that there is no significant risk of loss to the Group beyond the ECL allowance and provision
for impairment already recorded.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to settle all liabilities as they are due.
The liquidity position is carefully monitored and managed. The liquidity risk is managed by
maintaining detailed budgeting and cash forecasting processes and matching the maturity profiles of
financial assets and liabilities to help ensure that it has adequate cash available to meet payment
obligations.
Presented below is the maturity profile of the financial liabilities at 31 December 2022 based
on undiscounted contractual cash payments, including interest payments:
Carrying amount as
at 31 December Less than 1
2022 year 1-3 years 3-5 years Total
Borrowings 312,577 14,943 336,835 1,364 353,141

Trade and other payables 495,267 495,267 - - 495,267
Financial derivative liability - 50,000 - - 50,000
Dividends payable 16,303 16,303 - - 16,303
Financial guarantees 133,000 133,000 - - 133,000
Total financial liabilities 957,147 709,513 336,835 1,364 1,047,711
Financial derivative liability include gross undiscounted cash flows for foreign currency forward
derivative.
37
Presented below is the maturity profile of the financial liabilities at 31 December 2021 based
on undiscounted contractual cash payments, including interest payments:
Carrying amount as
at 31 December Less than 1
2021 year 1-3 years 3-5 years Total
Borrowings 328,742 42,335 29,139 320,649 392,123

Trade and other payables 441,902 449,053 - - 449,053
Dividends payable 8,443 8,443 - - 8,443
Total financial liabilities 779,087 449,831 29,139 320,649 849,619
31. MANAGEMENT OF CAPITAL
The primary objective of managing the Group’s capital is to ensure that there is sufficient capital
available to support the funding requirements of the Group, including capital expenditure, in a way
the optimises the cost of capital, maximises shareholders’ returns and ensures that the Group
remains in a sound financial position.
The Group manages and adjusts the capital structure as opportunities arise in the market place, as
when borrowing mature, or as and when finding is required. This may take the form of raising
equity, market or bank debt or hybrids thereof. This strategy remains unchanged from prior years.
32. FAIR VALUE DISCLOSURES
The principal financial instruments comprise cash and cash equivalents, bank deposits, restricted
deposits, restricted cash, trade and other receivables, borrowings and trade and other payables. The
carrying amounts of financial assets and liabilities recorded at amortised cost in these consolidated
financial statements approximate their fair value, except for borrowings.
The fair value of borrowings was measured based on the present value of discounted cash flows at
the market interest rate at the end of each reporting periods presented.
Carrying value Fair value

Borrowings at 31 December 2022 312,577 256,227
Borrowings at 31 December 2021 328,742 328,721
Whilst accounted for at amortised cost, the fair value measurement of borrowings is within level 1
for Eurobonds and level 2 for borrowings from banks of the fair value hierarchy in accordance with
IFRS 13 Fair value measurement.
33. EVENTS AFTER THE BALANCE SHEET DATE
On 6 October 2022, IPO announcement of UzAuto Motors, the largest car manufacturer in
Uzbekistan was started. This is the initial public offering (IPO) by a large state-owned company in
Uzbekistan. The Group planned to list up to 5% of its shares on the Republican Stock Exchange
«Toshkent». In February 2023, 29.1% of the initially planned shares were issued on the Republican
Stock Exchange «Toshkent». 80.1% of the issued shares were distributed among institutional
investors, and the remaining 19.9% were among individuals.
On 15 February 2023, UzAuto Motors started production of Chevrolet Onix. The new Chevrolet Onix,
like the Chevrolet Tracker, is a car model planned to be produced on the GM GEM platform (General
Motors Global Emerging Markets). At present, Chevrolet Onix car production is localised up to 50%,
and it is planned to reach 70% by the end of 2023.
38
On 31 May 2023, dividends in the amount of US Dollars 83,995 thousand were declared by the
Group.
39

UzAuto Motors IFRS Report FY2022

Uploaded by

Copyright:

Available Formats

UzAuto Motors IFRS Report FY2022

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

UzAuto Motors IFRS Report FY2022

Uploaded by

Copyright:

Available Formats

JSC “UZAUTO MOTORS”

Consolidated Financial Statements for the year ended 31

INDEPENDENT AUDITOR’S REPORT 2-5

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 6

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 7

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 8

CONSOLIDATED STATEMENT OF CASH FLOWS 9

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Organisation and operations

Proportion of ownership interest/

"Kurgontepa Tibbiyot Diagnostika Markazi" LLC 100% 100% Uzbekistan Healthcare

3. SIGNIFICANT ACCOUNTING POLICIES

31 December 2022 31 December 2021

4. CRITICAL ACCOUNTING ESTIMATES, AND JUDGEMENTS IN APPLYING ACCOUNTING POLICIES

Critical judgements in applying accounting policies

Liability and litigation risks

Key sources of estimation uncertainty

5. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRSs)

CKD Asaka CKD Pitnak SUP Total

Segment profit before income tax 65,888 117,853 55,942 239,683

Segment profit before income tax 51,314 106,817 52,327 210,458

7. BALANCES AND TRANSACTIONS WITH RELATED PARTIES

Loans issued - 4,672 4,672

Sales of goods - 14,784 14,784

Restricted deposits 181 181

Companies under common

Sales of goods 6 8,817 8823

The table below summarises individually significant government related balances:

Cash and cash equivalents 63,999 117,439

Key management compensation

Key management compensation is presented below:

8. PROPERTY, PLANT AND EQUIPMENT

Cost at 1 January 2021 135,322 730,369 37,525 15,106 103,265 1,021,587

- Saving deposits 530,054 195,062

- B1 rating (Moody's) 417,236 74,754

10. RESTRICTED DEPOSITS

11. CASH AND CASH EQUIVALENTS

Cash and cash equivalents in UZS 49,729 41,393

- B1 rating (Moody's) 64,016 124,884

12. RESTRICTED CASH

13. TRADE AND OTHER RECEIVABLES

Trade receivables from legal entities 72,164 73,425

At 1 January 14,326 13,377

The analysis of trade and other financial receivables is as follows:

Goods in transit 271,621 247,207

15. SHARE CAPITAL AND OTHER RESERVES

16. EARNINGS PER SHARE

Number of shares: 2022 2021

Basic earnings per share 1.27 2.41

Eurobonds due in 2026 301,944 301,272

Eurobonds due in 2026

US Dollar-denominated ECA facility made by Credit Suisse AG

Reconciliation of liabilities arising from financing activities was as follows:

18. TRADE AND OTHER PAYABLES

Trade payables 458,632 433,702

19. CONTRACT LIABILITIES

20. REVENUE FROM CONTRACTS WITH CUSTOMERS

The Group sells vehicles under the following brands:

Chevrolet 3,198,145 2,083,914