SECURITIES PROSPECTUS

The amounts of VAT on purchased goods (work, services) used only for theproduction and/or sale of VAT-exempt goods (work, services) shall be recognized as thecost of such purchased goods (work, services). The amounts of tax declared by thesellers of goods (work, services) used both for the production and/or sale of taxablegoods (work, services) and non-taxable goods (work, services) shall be accepted fordeduction or recognized as cost in proportion to the (VAT-exclusive) cost of taxable andnon-taxable goods (work, services) sold respectively as a percentage of total cost ofgoods (work, services) sold based on data for the current tax period. The amounts of taxdeclared by the sellers of goods (work, services) used for the production and/or sale ofVAT-exempt goods (work, services) shall be recorded in separate subaccounts ofaccount 19 "Input VAT".The amount of VAT on goods (work, services) used for the production and/or sale ofboth VAT-exempt and non-taxable goods (work, services) corresponding to the perunitweight of cost (VAT-exclusive) of VAT-exempt goods (work, services) sold shallnot be accepted for deduction, but be recognized as the cost of purchased goods(work, services).17.5.2. Procedure for the Preparation and Execution of Invoices, PurchaseLedger, Sales LedgerInvoices issued to buyers and received from suppliers, purchase ledgers andsales ledgers shall be stored in the Company's place of business.Invoices prepared by the Company shall be numbered in ascending order. Thenumbers of invoices issued to buyers and recorded in the accounting books shall be acombination consisting of the following segments separated from each other by ahyphen:• current year of preparation of an invoice;• current month of preparation of an invoice;• current date of preparation of an invoice;• unique number automatically assigned by a software system.17.6. Property TaxTax accounting for the calculation of property tax shall be maintained under Chapter30 of the Tax Code "Corporate Property Tax" and the law of the constituent entity ofthe Russian Federation which specifies the tax rate, the period of tax payment, theform of reporting and may contain additional tax credits and grounds for using them.239