1.8 Characteristic of technology and production organization

The characteristic of subsidiaries on activities:

GAS REALIZATION:

1. LLP "Almatygaztrade"

Registered address: Almaty street. M.Ospanova 87/10

The partnership was established in 2003 under the laws of the Republic of Kazakhstan, is a legal entity and operates under the Civil Code of the Republic of Kazakhstan and the law of the Republic of Kazakhstan on April 22, 1998, "On limited liability and additional liability" and other normative legal acts and documents governing the internal management of the Association.

The only member of the Association is a joint-stock company "KazTransGas-Almaty".

Fellowship in the prescribed manner is included in the State register of market dominant or monopoly position in the relevant product markets for the services it offers "wholesale sales of natural gas / retail sales of natural gas."

2. LLP "AlmatyGazContrakt"

Created in November 11, 2003 The main subject of the LP "AlmatyGazContrakt" is the sale of natural gas to various categories of consumers. The main activity of LLC "AlmatyGazContrakt" is the sale of natural gas to consumers in the private and collective sectors of the city of Almaty, as well as carrying out work related to the disconnection of gas supply to consumers of private and collective sectors that violate the order of payment and terms of consumption of natural gas and gas supply connection to the written request of customers .

According to the order of the Antimonopoly Office of the city of Almaty, the Committee for Protection of Competition of the Ministry of Industry and Trade of the Republic of Kazakhstan as of December 29, 2006 A partnership is included in the State Register of market participants who hold a monopoly position in the relevant product market in Almaty on the service "sales of natural gas through distribution pipelines ".

Sale price (tariff) for natural gas for the population of the city of Almaty is coordinated with the Department of the Republic of Kazakhstan Agency for Regulation of Natural Monopolies in Almaty.

GAS TRANSPORTATION:

3. LLP "Almaty gas networks"

It is based on May 21, 2001. The gas-distributing organization which main objective includes transportation of natural gas on city networks, and also operation of city gas infrastructure.

The main objectives of LLP "Almaty gas networks":

- ensuring gas supply with natural gas of the population, enterprises, organizations and establishments of Almaty;

- the organization of reception of natural gas from suppliers and ensuring uninterrupted supply of the city with it according to the signed contracts;

- operation of gas pipelines, means of electrochemical protection and the constructions being on balance of the company;

- delivery to the enterprises and the organizations of specifications on gasification of objects, means of electrochemical protection, coordination of projects and participation in acceptance of objects of a gas economy in operation;

- service in accordance with the established procedure gas pipelines of natural gas and gas equipment, means of electrochemical protection, intra house gas equipment, and also carrying out on a contract basis preventive maintenance, repairs and commissioning;

- design of systems of gas supply;

- installation, repair of systems of gas supply and means of electrochemical protection;

- installation of measuring devices of systems of the accounting of gas;

- rendering of services to the enterprises, organizations, establishments.

As a part of LLP "Almaty gas networks" there is the following production base (services) of the enterprise:

- Emergency and dispatching service (performs works on localization of emergencies on objects of a gas economy of the city of Almaty);

- Service of operation of gas pipelines of high and average pressure (carries out works on safe operation and maintenance of gas pipelines of high and average pressure);

- Service of operation of gas pipelines of low pressure (carries out works on safe operation and maintenance of gas pipelines of low pressure and constructions on it);

- Service of protection against electrochemical corrosion (conducts works on operation and maintenance of means of electrochemical protection);

- Service of the accounting of gas (carries out the account, collecting and processing of information on receipt and a consumption of natural gas in a gas pipeline system, service, installation - dismantle of devices of the account in actual fact).

CONSTRUCTION AND REPAIR OF GAS-DISTRIBUTING NETWORKS:

4. "AGN-Service" LLP

It is created 29. 10. 2003. A production activity carries out since January, 2004. The founder of Association is JSC Kaztransgaz-Almaty.

The main object of activity is:

- repair of systems of gasification of inhabited and household objects;

- elimination of emergencies on a gas pipeline system of Almaty and Almaty area;

- shutdown / connection of subscribers for untimely payment;

- installation of the intra house gas pipeline;

- construction of the main gas pipelines of high, average and low pressure;

- service of gas pipelines and gas equipment, means of electrochemical protection, intra house gas equipment, and also carrying out on a contract basis preventive maintenance, repair and commissioning;

- works on accession to a functioning gas pipeline;

- repair construction works;

- design of systems of gas supply;

- installation of systems of gas supply and means of electrochemical protection;

- installation of measuring devices of systems of the accounting of gas.

COLLECTING UTILITY BILLS (GAS BILLING):

5. LLP "Customer billing center" Almatygaz "

JSC "ARC" Almatyintergaz "was founded May 21, 2001 The purpose of the company include: gathering information on the consumption of natural gas a population of Almaty, billing customers for natural gas, as well as organizing and supervising the collection of payments from consumers' collective and private residential sectors, legal entities and entrepreneurs for their consumption of natural gas.

To date, LLP "ARC" Almatygaz "has six city branches. For the convenience of consumers, not only of natural gas, and any other utilities in January 2003 opened an operating room - the first in Central Asia, the terminal mass of customer service municipal market. For customer convenience to a new operating room available cash settlement departments of the bank, where you can make not only utility but also the special payments (registration fee and taxes). Here is the reception and delivery of cash. Availability of cash settlement department of the bank in the operating room significantly facilitates financial transactions between the company and the client.

The main activities of the company and include:

- Providing services to enterprises, organizations, institutions and citizens;

- Maintenance of claims of customer utility by proxy;

- Maintenance payments to contractors of utilities;

- Development and improvement of standard documentation in the economic relationship in the provision of public services;

- Development of new advanced technologies;

- To attract investors and foreign countries;

- Acquisition and alienation of the ROK and the foreign countries of all kinds of movable and immovable property, securities, leasing buildings or separate rooms;

- Commercial activities;

- Foreign-economic activity.

REPAIR AND CHECKING OF DEVICES OF THE ACCOUNTING OF GAS:

6. LLP "GazControlPribor"

The company operates in accordance with the certificate of accreditation for the right calibration of measuring instruments, issued by the authorized body - the Committee for Technical Regulation Metrology of the Ministry of Industry and Trade of the Republic of Kazakhstan, is valid until 23.07.2010 year.

The state lab is equipped with professionals who are registered in the Registry of the state system to ensure traceability of the Republic of Kazakhstan with the assignment of skills - verification officers of measuring thermal variables. Specialists performing calibration of measuring instruments, have been trained on the course "Verification and calibration of measuring thermal variables."

In its activities the company is guided by the laws of the Republic of Kazakhstan "On ensuring the unity of measurements", "Certification", "On Standardization" and "On Licensing".

The company provides repair services for residential, diaphragm, rotary, turbine and vortex meters of gas in accordance with the State license number 0001168 MA series of the year 01.04.2002, issued by the Committee on Standardization, Metrology and Certification of the Ministry of Economy and Trade of the Republic of Kazakhstan.

The main consumer of services is TOO "Almaty gas networks' share of total services is more than 90%.

The company is also in October 2010 became involved in a new activity - the implementation of the gas in the Almaty region.

Chapter 2. Analysis of financial and economic activities of the company