Investor Presentaiton

30 Investment guide Armenia Auditors, audit requirements and standards Audit of the annual financial statements carried out by an independent audit company is mandatory for certain companies, such as open joint-stock companies, banks and financial institutions, stock exchange participants, etc. Audit companies are licensed by the Ministry of Finance. In order to receive a license the audit firm should have at least five qualified auditors, who obtain a professional qualification from the Ministry of Finance. Additionally, the signatory of audit opinions on the financial statements of commercial banks and other financial organizations regulated by the CBA is required to satisfy several additional professional requirements (e.g. to possess an international known qualification on accountants and/or auditors), which are determined by the decision of the Board of the Central Bank of the RA. Audits are performed in accordance with auditing standards of the RA, approved by the Ministry of Finance, which are based on International Standards on Auditing (ISA). There is also a Law on Audit, which regulates this field. Infrastructure Armenia has a relatively developed public transportation system, which includes buses, taxi services, vans or KPMG "route taxis" in major cities and also a metro in Yerevan. Road and railroad communication exists between all the major regions of Armenia. Two international airports are in operation: Zvartnots International Airport in Yerevan and Shirak airport in Gyumri. The international terminal was built in accordance with the newest international standards, with modern equipment and with high earthquake stability and was opened on 26 September 2011. The airport is able to accept any type of aircraft. Several international airlines (such as Aeroflot, Air France, Austrian Airlines, Siberia Airlines, LOT Polish Airlines, FlyDubai, Qatar Airlines, Ukraine International Airlines, Air Arabia, Mahan Air (Iranian), Aegean Airways, Georgian Airways, Iraqi Airways, Al Naser, Middle East airways) provide a number of flights to the largest cities in the CIS, Europe, USA, Asia and Australia. Scheduled flights operate to Amsterdam, Athens, Beirut, Dubai, Istanbul, Frankfurt, Kiev, London, Moscow, Munich, Paris, Prague, Rome, Tehran, Vienna, and other major cities in the world. There are 703 km of railways of general purposes in Armenia. Of the three international railroad connections via Georgia, Azerbaijan and Turkey, only the connection through Georgia to the Black Sea ports (mainly Poti and Batumi) is in use at present. Highways of general purposes within Armenia total 7,568 km and there are connections with all neighboring states with which Armenia has diplomatic relations, including Georgia and Iran. The Armenian telecommunications network is currently operated by three mobile operators, ArmenTel (operating under the trade mark Beeline), which is fully owned by Russia's VimpelCom, K-Telecom (operating under the trademark Viva Cell MTS), a subsidiary of Russia's MTS, Ucom - local company. Main competitors in 3G internet services in Armenia are Ucom, VivaCell MTS and Beeline. Armenia is also the 10th country in the world that launched the 4G Internet communication network also introduced by VivaCell MTS. Currently one of the main DSL highline internet suppliers in Armenia is Beeline. Optical fiber network suppliers are Ucom telecom company and Rostelecom Armenia. Ucom has also built up the first FTTH (Fiber to the home) Network in Armenia. After acquisition of Orange Armenia, Ucom is planning to launch a LTE network across Armenia. The fiber-optic cable (FOC) network of Rostelecom Armenia now covers 80% of the territory of RA, spreading for over 3,000km. Ucom and Rostelecom Armenia provide internet, IPTV and Digital Phone services to both individuals and corporate clients. ©2016 KPMG Armenia cjsc,. All rights reserved.

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