Consolidated Loss of One of Ruling Family Holdings Exceeded 2.2 Million Manats

In 2014, consolidated losses of the parent company and subsidiaries of Ata Holding amounted to 2 million 229.8 thousand manats. On January 1 of this year, outstanding losses were accumulated in the amount of 37.6 million manats. This is stated in the published financial statement of the holding, which on June 29 received a positive conclusion of the audit company PricewaterhouseCoopers Audit Azerbaijan LLC.

In 2014, the income of the group of companies Ata Holding was 88.4 million manats, increasing by 15.7%. The costs were 53.3 million manats, which was 37% more than in 2013. Taking into account the transaction costs (30.5 million) and other income and expenses of the holding, the operating losses over the past year amounted to 1 million 365 thousand manats. In all, as a result of the financial income and expenses as well as tax on profits of enterprises of the holding, the cumulative loss of Ata Holding amounted to 2.2 million manats.

However, the balance sheet of the holding improved. Over the past two years, assets of Ata Holding doubled and reached 632.2 million manats. The authorized capital in 2014 increased from 83.9 million to 125.3 million manats. In view of the accumulated losses, equity attributable to shareholders of the holding company is about 97 million manats. In addition, the shareholders of the holding company own 12.7 million of the capital of uncontrolled companies.

The holding consists of Ata Bank, Ata Sigorta, Ata Leasing, Excelsior Hotel Baku, as well as several industrial and so on enterprises in Baku and the Shamkir region. The holding owns a 49% stake in Bank VTB (Azerbaijan), 30% of the shares of Zeyem Tekhnologiyalar Parki (through the subsidiary LLC Ata Senaye) and 33% of JSC Azerbaijan Global Investments.

The shareholders of Ata Holding are three foreign legal persons: Hughson Management Inc. (51%), Asbet Limited (25%) and Clonmel International Inc. (24%) According to the audit report drawn up on the International Financial Reporting standards for 2013, the ultimate controlling entity of the holding is Heydar Aliyev, 19-year-old son of the President of Azerbaijan, Ilham Aliyev. --08B--