9. Subsidiaries

These consolidated financial statements include the assets, liabilities and results of operations of the following significant subsidiaries:


    Effective share of the Group as at 31 December
Subsidiary Main activity 2013 2012 2011
         
CJSC MTs NTT Communication services (fixed line) 100% 100% 100%
CJSC Westelcom Leasing of equipment 100% 100% 100%
OJSC Infoteks–Teganrog Telecom Communication services 99.99% 99.99% 99.99%
CJSC Zebra Telecom Communication services 100% 100% 100%
OJSC RTComm.RU Communication services (internet) 100% 100% 100%
CJSC RTComm–Sibir Communication services (internet) 100% 100% 100%
LLC RTComm–Volga–Ural Communication services (internet) 51% 51% 51%
LLC RTComm–Ug Communication services (internet) 100% 100% 100%
OJSC RTS* Communication services 100% 100%
CJSC NSS Communication services (mobile) 100% 100% 100%
LLC Uzhno–Uralskaya telefonnaya compania Communication services 100% 100% 100%
CJSC Baikalwestcom Communication services (mobile) 100% 100% 100%
CJSC Yenisey telecom Communication services (mobile) 100% 100% 100%
CJSC Akos Communication services (mobile) 94.56% 94.56% 94.56%
CJSC Globus–Telecom Communication services 94.92% 94.92% 94.92%
CJSC GlobalTel*** Communication services 51% 51%
OJSC National Telecommunications* Communication services (pay TV) 100% 71.8%
CJSC Makomnet* Communication services 51% 51% 51%
OJSC Mosteleset* Communication services (pay TV) 100% 74%
LLC ArtMedia Group* Radio and TV 100% 100%
LLC ArtMedia* Movie rental 100% 100%
CJSC Natsionalnoe media agentstvo* TV services 100% 100%
LLC Televisionnaya kompaniya Novy Vybor Radio and TV 100% 100% 100%
LLС NKS Media Other 100% 100% 100%
LLC Oberon–media* Radio and TV 100% 100%
LLC Telekanal Mat I ditya* Movie rental 100% 100%
LLC Telekanal Oykumena* Movie rental 100% 100%
CJSC TKT–stroy R&D services 100% 100% 100%
LLC Art Madia Markt* Other 100% 100%
LLC Mobitel Investment company 100% 100% 100%
OJSC RT Labs Communication services 100% 100% 100%
CJSC AMT Investment company 100% 100% 100%
LLC Intmashservis Repair services 100% 100% 100%
OJSC Mobiltelecom Communication services 91.75% 91.75% 91.75%
OJSC Regionalnie informatsionnie seti R&D services 100% 100% 100%
CJSC NTC Komset R&D services 55.45% 55.45% 55.45%
LLC Set Stolitsa Maintenance services 100% 100% 100%
CJSC Sankt Peterburgskie taksofoni Communication services 100% 100% 100%
NP Telecomcentr** R&D services 100% 100% 100%
CJSC Volgograd–GSM Communication services (mobile) 100% 100% 100%
CJSC Orenburg–GSM Communication services (mobile) 100%
CJSC Severen–Telecom Communication services 100% 100% 100%
CJSC GNC Alfa Communication services 74.98% 74.98%
OJSC Kolatelecom Communication services 50% 50%  
CJSC Chita–Online Communication services (internet) 100% 100%
CJSC Sky Link Communication services (mobile) 100% 100% 100%
CJSC MS–Direct Communication services (mobile) 100% 100% 100%
CJSC Delta telecom Communication services (mobile) 100% 100% 100%
OJSC Moscovskaya sotovaya svyaz Communication services (mobile) 100% 100% 100%
OJSC Kaliningradskie Mobilnie Seti Communication services (mobile) 100% 100% 100%
LLC Pilar Communication services (mobile) 100% 100% 100%
CJSC Skay–1800 Communication services (mobile) 100% 100% 100%
CJSC Uralvestcom Communication services (mobile) 100% 100% 100%
CJSC Astarta Communication services (mobile) 100% 100% 100%
CJSC Saratovskaya sistema sotovoy svyazy Communication services (mobile) 100% 100% 100%
OJSC Apeks Communication services (mobile) 93.5% 93.5% 93.5%
OJSC Tsentralny Telegraph** Communication services (telegraph) 80% 60.15% 60.15%
CJSC Otkritie telecommunikatsii** Communication services 80% 60.15% 60.15%
OJSC Giprosvyaz** Engineering design 80% 56.25% 56.25%
OJSC Ingushelectrosvyaz** Communication services 100% 100%
OJSC Chukotkasvyazinform** Communication services 100% 75% 75%
OJSC Bashinformsvyaz** Communication services 70.78% 69.42% 68.16%
LLС Bashtelecomservis** Communication services 70.78% 69.42%
LLC Bashtelecomleasing** Leasing 70.78% 69.42% 68.16%
LLC Bashlelecominvest** Investment company 70.77% 69.34% 68.08%
LLC Sterlitamakstroyservis** Communication services (internet) 70.78% 69.42% 68.16%
OJSC Sotovaya svyaz Bashkortostana** Communication services (mobile) 70.78% 69.42% 68.16%
OJSC Ufimsky zavod promsvyaz** Communication equipment manufacturing 70.74% 69.38% 68.12%
CJSC Rosmedia Communication services 100% 100% 100%
OJSC MMTS–9** Communication services 99.81% 99.81% 99.81%
OJSC OK Orbita Recreational services 100% 100% 100%
CJSC RPK Svyazist Recreational services 100% 100% 100%
CJSC BIT Communication services (mobile) 100% 100% 100%
Rostelecom International Limited (former Teleset Networks Public Company) Communication services 100% 100% 100%
LLC Enter* Communication services (internet) 100%
LLC KM Media IT consulting 74.99 74.99
OJSC Svyazintek IT consulting 100% 100% 100%

All the above entities have the same reporting date as the Group.

All significant subsidiaries, except for Rostelecom International and GNC Alfa, are incorporated in Russia. Rostelecom International is incorporated in Cyprus, GNC Alfa is incorporated in Armenia.

*In October 2013 OJSC Rostelecom was merged with OJSC Svyazinvest and the following 100% owned subsidiaries: CJSC National Telecommunications, OJSC Natsonalnie kabelnie seti, OJSC Rossiyskaya telecommunicatsionnays set, CJSC Elkatel, OJSC Mosteleset, OJSC Mostelecom, CJSC Eltelekor, CJSC Enter, OJSC Telekompania Sankt Peterburgskoe kabelnoe televidenie, CJSC Parma inform, CJSC Novgorod Deytacom, OJSC TNPKO, CJSC Svyazinvest, CJSC Teleset, CJSC Teleset invest, CJSC Simbirsk telecommunications systems, OJSC NKS EurAzia, CJSC Teleset–servis, CJSC Novosibirskoe Antenno–Kabelnoe televisionnoe veschanie, OJSC Ingushelectrosvyaz. In December 2013 LLC NKS Media was meged with LLC ArtMedia Group, LLC ArtMedia, CJSC Natsionalnoe media agentstvo, LLC Oberon–media, LLC Telekanal Mat I ditya, LLC Telekanal Oykumena, LLC Art Madia Markt.

**After merge of OJSC Rostelecom and OJSC Svyazinvest the following former subsidiaries of OJSC Svyazinvest became subsidiaries of OJSC Rostelecom: NP Telecomcentr, OJSC Tsentralny Telegraph, CJSC Otkritie telecommunikatsii, OJSC Giprosvyaz, OJSC Ingushelectrosvyaz, OJSC Chukotkasvyazinform, OJSC Bashinformsvyaz, LLL Bashtelecomservis, LLC Bashtelecomleasing, LLC Bashlelecominvest, LLC Sterlitamakstroyservis, OJSC Sotovaya svyaz Bashkortostana, OJSC Ufimsky zavod promsvyaz, OJSC MMTS–9.

***In 2013 arbitrage of Moscow initiated external control procedure in CJSC GlobalTel as part of its bankruptcy. The Group has lost control over CJSC GlobalTel from 1 July 2013. As a result the Group recognized gain of 2,831 in other investing and financing gain as entity had negative net assets.

In 2012 CJSC Orenburg–GSM was merged with CJSC NSS. In 2011 the Group increased its share in CJSC Orenburg–GSM from 51% to 100%. Additional shares were bought for cash payment of 116 from OJSC Srednevolzhskaya mezhregionalnaya assotsiatsia radiotelecommunicatsionnih system.

In 2012 the Group increased its share in OJSC Mosteleset from 74% to 100%. Additional shares were bought for cash payment of 1,800 from government of Moscow.

In March 2012 the Group increased its share in OJSC National Telecommunications from 71.8% to 100%. Additional shares were bought for cash payment of 13,826 from OJSC Gazprombank. In February 2011 the Group acquired 71.8% equity interest in OJSC National Telecommunications from CJSC National Media Group, OJSC Surgutneftegaz and Raybrook Limited. The purchase price amounted to USD 951 million.

In September 2012 the Group acquired 100% share in LLC Bashtelecomservis, the regional telecommunication operator, from a private person. The purchase price amounted to 210.

In August 2011 the Group increased its share in CJSC Volgograd–GSM from 50% to 100%. Additional shares were bought for cash payment of 2,322 from Bolaro Holdings ltd, CJSC Info–Telecom and OJSC SMARTS.

Set out below are the summarised financial information for each subsidiary that has non–controlling interests that are material to the group.


Summarised statements of financial position


CJSC Makomnet Bashinformsvyaz Group
As at 31 December As at 31 December
  2013 2012 2011 2013 2012 2011
Current assets 504 496 465 2,837 1,962 2,806
Current liabilities (103) (116) (141) (2,884) (1,759) (1,658)
Total current net assets / (liabilities) 401 380 324 (47) 203 1,148
Non–current assets 1,612 1,704 907 15,154 9,595 8,778
Nob–current liabilities (224) (235) (75) (2,946) (1,028) (2,025)
Total non–current net assets 1,388 1,469 832 12,208 8,567 6,753
Net assets 1,789 1,849 1,156 12,161 8,770 7,901
NCI 912 943 590 3,553 2,682 2,516

Summarised statements of profit or loss and other comprehensive income


CJSC Makomnet Bashinformsvyaz Group
Year ended 31 December Year ended 31 December
  2013 2012 2011 2013 2012 2011
Revenue 1,340 1,301 1,137 7,586 6,302 6,080
Profit before income tax 429 459 426 1,233 1,117 656
Income tax (90) (93) (104) (316) (258) (799)
Total comprehensive income 339 366 322 917 859 (143)
Total comprehensive income allocated to non–controlling interests 166 179 158 268 263 (45)
Dividends paid to non–controlling interests 196 190 195 47 20 16

Summarised cash flows


CJSC Makomnet Bashinformsvyaz Group
For the year ended 31 December
2013 2013
Cash generated from operations 618 3,262
Interest paid (103)
Income tax paid (101)   (674)
Net cash generated from operating activities 517 2,485
Net cash used in investing activities (122) (638)
Net cash used in financing activities (401) (1,121)
Net (decrease)/increase in cash and cash equivalents (6) 726
Cash and cash equivalents at beginning of year 345 236
Cash and cash equivalents at end of year  339  962