KRET JSC’s shareholders and other usersAUDITEE
Full name: Concern Radio-Electronic Technologies Joint Stock Company Abbreviated name: KRET JSC.
Place of business: 20/1 p.1, Goncharnaya str., Moscow 109240, Russian Federation.
State registration number: 1097746084666, certificate of state registration of legal entity dated 19 February 2009, series 77 No. 011644283
Full name: Nexia Finance Group Limited Liability Company.
Place of business: Nizhegorodskaya St., 70, Block 2, 109052, Moscow, Russian Federation.
State registration number: 1082312000110, certificate of record in the Unified State Register of Legal Entities regarding creation of a legal entity dated 10 January 2008, series 23 No. 006796556
Nexia Finance Group is a member of self-regulated organization of auditors (SRO), Non-profit Partnership “Moscow Audit Chamber”. Registration number in the SRO register: 11203052793.
We have audited the accompanying financial statements of KRET JSC, which comprise the balance sheet as at 31 December 2015, statement of financial results for 2015 and attachments thereto.
Auditee’s responsibility for financial statements
KRET JSC’s management is responsible for preparation and fair presentation of these financial statements in accordance with Russian financial reporting rules and for such internal control as is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Our responsibility is to express our opinion on fair presentation of these financial statements based on our audit. We conducted our audit in accordance with the federal standards on auditing. Those standards require that we comply with applicable ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The audit procedures
selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on fair presentation of the financial statements.
In our opinion, the financial statements present fairly, in all material respects, the financial position of KRET JSC as at 31 December 2015, and its financial performance and its cash flows for the year of 2015 in accordance with the Russian financial reporting standards.
Emphasis of matter
Without qualifying our opinion on fair presentation of the financial statements, we draw attention to Note 2 to the financial statements of KRET JSC for 2015 which discloses information on the existence of signs of devaluation of a financial investment of NPO Kvant JSC and the reason, for which no provision was created for devaluation of the financial investment.
Emphasis of matter
The financial statements of KRET JSC for the period from 1 January until 31 December 2014 inclusively were audited by other auditor, the auditor’s report of which is dated 13 March 2015 and contains an unmodified opinion on these financial statements.