2021

Annual Report
Transtelecom JSC
2021 ///

07

The Company strives to provide information
on the results of its activities in a timely
and comprehensive manner that meets the
expectations of all stakeholders.

 
 
An
nexes

Annexes

Since 2015, the Company has published annual reports that include not only its operating results, but also information on sustainable development, specifically the application of GRI Standards in disclosing issues related to HSE, industrial safety, and social responsibility.

Annual Report / Transtelecom / 2021

Financial
statements

for the year ended 31 December 2021 with independent auditor’s report

Statement
of management’s

responsibilities for the preparation and approval of the financial statements

Management is responsible for the preparation of the financial statements that present fairly the financial position of Transtelecom JSC (the “Company”) as at 31 December 2021, and the results of its operations, cash flows and changes in equity for the year then ended in compliance with International Financial Reporting Standards (“IFRSs”).

In preparing the financial statements, management is responsible for:

  • Properly selecting and applying accounting policies;
  • Presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable, and understandable information;
  • Providing additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Company’s financial position and financial performance; and
  • Making an assessment of the Company’s ability to continue as a going concern.

The management is also responsible for:

  • Designing, implementing, and maintaining an effective and sound system of internal controls throughout the Company;
  • Maintaining adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company, and which enable them to ensure that the financial statements of the Company comply with IFRSs;
  • Maintaining statutory accounting records in compliance with IFRSs and legislation of the Republic of Kazakhstan;
  • Taking such steps as are reasonably available to them to safeguard the assets of the Company; and
  • Detecting and preventing fraud and other irregularities.

Statement
of financial
position

As at 31 December 2021

In thousands of tenge Notes 31 December
2021		 31 December
2020
 
Assets
Non-current assets
Property, plant and equipment 5 145,756,135 129,564,560
Non-current portion of advances paid 7 5,988,288 6,289,340
Intangible assets 6 4,892,657 4,863,662
Finance lease receivables 9 − 127,795
Other non-current assets 8 291,312 3,749,738
  156,928,392 144,595,095
 
Current assets
Inventory 12 2,428,605 1,295,411
Trade receivables from related parties 27 10,629,297 11,056,215
Trade receivables from third parties 10 10,445,482 3,506,182
Finance lease receivables 9 238,995 353,473
Income tax prepaid 445,891 137,193
Other current assets 11 7,927,911 5,175,307
Current portion of advances paid 7 2,757,221 3,599,938
Cash and cash equivalents 13 6,888,249 4,824,053
  41,761,651 29,947,772
Total assets 198,690,043 174,542,867
 
Equity and liabilities
Equity
Share capital 14 12,241,487 12,241,487
Retained earnings 23,624,580 18,839,334
  35,866,067 31,080,821
 
Non-current liabilities
Long-term loans 15 24,185,249 32,849,046
Non-current portion of issued bonds 16 24,000,550 9,182,124
Non-current portion of lease liabilities 17 1,307,592 425,454
Employee benefit obligations 650,278 548,866
Long-term accounts payable to suppliers and contractors 19 53,869,328 46,136,804
Long-term liabilities under contracts with customers 18 1,315,176 1,015,191
Deferred income tax liabilities 21 6,405,770 4,791,192
  111,733,943 94,948,677
 
Current liabilities
Short-term loans issued and short-term portion of long-term loans 15 9,797,903 13,628,929
Current portion of issued bonds 16 773,165 546,875
Current portion of lease liabilities 17 526,915 2,568,992
Current portion of employee benefit obligation 48,620 48,395
Trade accounts payable 19 33,651,809 24,179,964
Dividends payable 14 2,469,517 2,469,517
Current liabilities under contracts with customers 18 1,155,252 1,768,142
Taxes payable and other mandatory payments 338,549 636,111
Other current liabilities 20 2,328,303 2,666,444
  51,090,033 48,513,369
Total liabilities 162,823,976 143,462,046
Total equity and liabilities 198,690,043 174,542,867
 

Statement
of comprehensive
income

For the year ended 31 December 2021

In thousands of tenge Notes 2021 2020
 
Revenue 22 84,479,365 68,452,589
Gain from operating lease 22 135,943 132,541
Cost 23 (58,428,982) (52,476,157)
Gross profit 26,186,326 16,108,973
 
General and administrative expenses 24 (7,340,940) (8,095,346)
Profit from core operations 18,845,386 8,013,627
 
Finance income 25 863,991 807,056
Finance costs 26 (11,798,508) (8,588,425)
Foreign exchange (loss)/gain (1,334,755) 4,610,207
Impairment of property, plant and equipment (135,733) −
Other (expenses)/income, net (29,895) 261,804
Profit before tax 6,410,486 5,104,269
 
Income tax expenses 21 (1,587,337) (1,240,188)
Profit for the year 4,823,149 3,864,081
 
Earnings per share
Basic and diluted profit for the year attributable to ordinary shareholders of the Parent, tenge 14 855.45 685.35
Profit for the year 4,823,149 3,864,081
 
Other comprehensive income net of income tax
Items not subject to subsequent reclassification to profit or loss
Revaluation of defined benefit liabilities (37,903) (84,236)
Total comprehensive income for the year 4,785,246 3,779,845
 

Statement
of changes
in equity

For the year ended 31 December 2021

In thousands of tenge Share capital Additional paid-in capital Retained earnings Total equity
 
At 1 January 2020 12,241,487 244,190 14,815,299 27,300,976
 
Profit for the year − − 3,864,081 3,864,081
Other comprehensive income for the year, net of income tax − − (84,236) (84,236)
Total comprehensive income for the year − − 3,779,845 3,779,845
 
Transfer of the difference between the nominal and fair value of the loan received by the Company from National Company Kazakhstan Temir Zholy JSC (Note 14) − (244,190) 244,190 −
As at 31 December 2020 12,241,487 − 18,839,334 31,080,821
 
Profit for the year − − 4,823,149 4,823,149
Other comprehensive loss for the year, net of income tax − − (37,903) (37,903)
Total comprehensive income for the year − − 4,785,246 4,785,246
As at 31 December 2021 12,241,487 − 23,624,580 35,866,067
 

Statement
of cash flows

For the year ended 31 December 2021

In thousands of tenge Notes 2021 2020
 
Cash flows from operating activities
Profit before tax 6,410,486 5,104,269
 
Adjustments for:
Amortisation 23, 24 16,449,617 11,357,271
Finance costs 26 11,798,508 8,588,425
Finance income 25 (863,991) (807,056)
(Recovery)/accrual of allowance on obsolete inventory 24 (45,653) 513,040
(Recovery)/accrual of allowance for impairment of advances issued, other current assets, finance lease receivables 24 (804,172) 2,389,541
Loss/(gain) from disposal of property, plant and equipment and intangible assets, net 201,294 (423)
Expenses on employee benefit liabilities 68,343 55,927
Accrual of tax audit expenses 20,571 20,571
Foreign exchange loss/(gain)s 1,333,699 (4,610,207)
Accrual of the provision for management personnel compensation 24 603,935 191,026
Accrual/(recovery) of allowance for expected credit losses on trade receivables 24 1,032,822 (96,148)
(Recovery)/accrual of allowance for expected credit losses on other non-current assets 24 (2,830) (23,851)
Impairment of property, plant and equipment 135,733 −
Accrual of allowance for expected credit losses on cash and cash equivalents 33,553 19,397
Cash flows from operating activities before changes in working capital and other items 36,371,915 22,701,782
 
Changes in working capital and other items
Change in trade receivables (7,388,939) 8,362,721
Change in inventories (1,380,075) 217,854
Change in advances paid 864,009 (5,962,850)
Change in other current and non-current assets 994,453 (8,964,905)
Change in trade payables 2,136,816 3,051,327
Changes in taxes payable and other mandatory payments 424,925 355,798
Change in advances received (775,545) (1,125,130)
Change in other current liabilities 44,666 (1,736,764)
Change in employee benefit obligations (53,229) (46,983)
Cash generated from operating activity 31,238,996 16,852,850
 
Interest paid on loans and lease liabilities 28 (5,087,417) (4,781,478)
Coupon interest paid on bonds 28 (1,150,000) (575,000)
Fees paid on loans and bonds 28 (276,997) (947,810)
Interest received 392,921 113,259
Income tax paid (619,344) (825,895)
Net cash from operating activities 24,498,159 9,835,926
 
Cash flows from investing activities
Acquisition of property, plant and equipment, as well as payment of advances for acquisition of non-current assets (22,172,436) (15,055,422)
Proceeds from disposal of property, plant and equipment 8,571 90,349
Receipt of funds on lease 237,094 295,263
Net cash used in investing activities (21,926,771) (14,669,810)
 
Cash flows from financing activities
Repayment of borrowings 28 (40,635,821) (14,461,416)
Receipt of loans 28 27,689,748 15,452,626
Issue of bonds 28 15,000,840 10,000,000
Dividends paid 14 − (805,609)
Repayment of lease liability 28 (2,427,715) (1,031,342)
Net cash (used in) / from financing activities (372,948) 9,154,259
Net change in cash and cash equivalents 2,198,440 4,320,375
 
Effect of change in the foreign exchange rate on cash and cash equivalents balances in foreign currency (100,691) 237,222
Changes in the allowance for expected credit losses on cash and cash equivalents (33,553) (19,480)
Cash and cash equivalents, at the beginning of the year 4,824,053 285,936
Cash and cash equivalents, ending 13 6,888,249 4,824,053
 

Contact
Information

If you have any questions
regarding the information
provided in the Report,
please contact:

Republic of Kazakhstan,
010000, Nur-Sultan city,
D. Kunayev Str., 10, floor 23

Organizational
chart and corporate
governance:

If Information Contained in the Annual Report is Used,
the User is Required to Reference the Actual Report.
All rights reserved.

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© 2021 Transtelecom Joint-stock Company

If Information Contained in the Annual Report is Used,
the User is Required to Reference the Actual Report.
All rights reserved.

support@ttc.kz

Republic of Kazakhstan,
010000, Nur-Sultan city,
D. Kunayev Str., 10, floor 23