Akciju sabiedriba "VEF"

Audit Report / Information • Apr 12, 2010

SIA AUDITS 55

Tālr .: +371 67290830, fakss +371 67290833, mob. tālr .: +371 29209676 Juridiskā adrese: Bruņinieku iela 69-20, Rīga, LV-1011 Biroja adrese: A.Čaka iela 83/85 k. 13, Rīga, LV-1011 PVN.reg.nr .: LV40002023972 Reg.nr .: 40002023972

INDEPENDENT AUDITORS' REPORT

To the Shareholders of JSC "VEF"

Report on the Financial Statements

We have audited the accompanying financial statements of JSC "VEF" which comprise the balance sheet as of 31 December 2009 and the income statement of changes in equity and cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory notes.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with the requirements of the Annual Accounts Act of the Republic of Latvia. This responsibility includes: designing, implementing internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted by the Latvian Association of certified auditors. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance 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 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.

SIA AUDITS 55

Tālr .: +371 67290830, fakss: +371 67290833, mob. tālr .: +371 29209676 Juridiskā adrese: Bruņinieku iela 69-20, Rīga, LV-1011 Biroja adrese: A.Čaka iela 83/85 k.13, Rīga, LV-1011 PVN.reg.nr .: LV40002023972 Reģ.nr .: 40002023972

Opinion

In our opinion, the accompanying financial statements give a true and fair view of the financial position of JSC "VEF" as of 31 December 2009, and of its financial performance and its cash flows for the year then ended in accordance with the requirements of the Annual Accounts Act of the Republic of Latvia.

Report on the Management Report

We have read the Management Report and did not identify material inconsistencies between the financial information contained in the Management Report and that contained in the financial statements for 2009.

Certified auditors' company SIA "AUDITS 55" Audit company licence No. 141

TVIJAS Māra Līguta Certified auditor Certificate No. 55 Member of the Boar Riga, 12th April, 2010