Quarterly report

Other information

There are no other data on the issuer and its securities as stipulated by Federal law “On securities market” or other federal laws.

There are no other data on the issuer and its securities not described in the abovementioned sections of the Offering Circular.

ANNEX 1

Financial statements of Public Joint –Stock Company "Southern Telecommunications Company" for the third quarter of 2007

1) Accounting statements for 3Q2007

BALANCE SHEET			Codes
Form No.1 under OKUD			0710001
As of 30 September 2007	Date (year, month, day)		2007	09	30
Company: Public Joint –Stock Company "Southern Telecommunications Company"		under OKPO	01151037
Taxpayer Identification Number 2308025192		TIN	2308025192
Areas of activities: Telecommunications		under ОКVED	64.20; 64.20.11
Organizational & Legal form/Form of Ownership: mixed		under ОКОPF/ОКFS	47/42
Measurement unit: RUR thousand		under ОКЕI	384
Legal address: 66, Karasunskaya Str., Krasnodar, 350000, Russia, tel: [phone]
		Date of approval
		Date dispatched (received)

ASSETS	Notes	Index code	Line code	Opening balance	Closing balance
1	1а	2	2а	3	4
I. NON-CURRENT ASSETS Intangible assets		110	110	113	102
Fixed assets		120	120	33,022,381	32,463,520
Capital investments		130	130	2,221,984	2,744,634
Profitable investment in stocks of materials and capital equipment		135	135
Long-term financial investments		140	140	449,128	523,659
including: investments in subsidiaries			141	431,769	402,693
investments in associates			142	1,484	187
investments in other companies			143	15,875	15,859
Other long-term financial investments			144		104,919
Deferred tax assets		145	145	232,184	245,286
Other non-current assets		150	150	1,796,988	2,052,520
Total for section I		190	190	37,722,778	38,029,720
II.CURRENT ASSETS Inventories		210	210	965,735	1,046,120
including: raw materials, materials and other similar values		211	211	679,725	727,819
expenditures in work-in-process (turnover costs)		213	213
finished products and goods for resale		214	214	22,853	17,500
shipped goods		215	215
deferred expenses		216	216	263,156	300,801
other inventories and expenses		217	217	1	1
Value added tax on acquired values		220	220	1,073,686	852,664
Accounts receivable (expected in over 12 months after the reporting date)		230	230	9,643	5,208
including: buyers and customers		231	231	580	580
advances distributed			232
other debtors			233	9,064	4,628
Accounts receivable (expected within 12 months after the reporting date)		240	240	1,210,568	1,525,319
including: buyers and customers		241	241	685,457	1,094,698
advances distributed			242	101,466	142,030
other debtors			243	423,646	288,592
Short-term financial investments		250	250	121,064	37,653
Monetary funds		260	260	236,923	213,253
Other current assets		270	270	918	1,023
Total for section II		290	290	3,618,538	3,681,241
BALANCE (sum of lines 190+290)		300	300	41,341,316	41,710,961

LIABILITIES	Notes	Index code	Line code	Opening balance	Closing balance
1	1а	2	2а	3	4
III. CAPITAL AND RESERVES Authorized capital		410	410	1,297,779	1,297,779
Additional capital		420	420	5,502,192	5,470,541
Capital reserves		430	430	64,889	64,889
Own shares redeemed from the shareholders		411	440
Retained earnings (uncovered losses) of previous years		470	460	6,788,103	6,542,447
Retained earnings (uncovered losses) of the year under report		470	470	X	1,727,658
Total for section III		490	490	13,652,963	15,103,314
IV. LONG-TERM LIABILITIES Loans and credits		510	510	11,158,198	10,603,827
Including: credits			511	6,367,943	5,192,395
loans			512	4,790,255	5,411,432
Deferred tax liabilities		515	515	1,126,836	1,260,790
Other long-term liabilities		520	520	1,799,084	888,763
Total for section IV		590	590	14,084,118	12,753,379
V. SHORT-TERM LIABILITIES Loans and credits		610	610	8,181,596	9,003,813
Including: credits			611	763,071	2,181,642
loans			612	7,418,526	6,822,171
Accounts payable,		620	620	4,139,078	3,991,265
including: suppliers and contractors		621	621	2,764,786	2,516,992
advances received		625	622	367,651	333,661
Wage arrears		622	623	137,176	146,273
Indebtness to state out-of-budget funds		623	624	79,456	58,288
Tax liabilities		624	625	275,123	297,524
Other creditors		625	626	514,885	638,527
Dividends payable to participants (founders)		630	630	29,167	74,681
Deferred income		640	640	253,062	232,614
Reserves for upcoming expenses		650	650	678,381	278,469
Other short-term liabilities		660	660	322,951	273,426
Total for section V		690	690	13,604,235	13,854,268
BALANCE (sum of the lines 490+590+690)		700	700	41,341,316	41,710,961

Availability statement of valuables recorded on off-balance accounts

Description	Notes	Index code	Line code	At the beginning of the period under report	At the end of the period under report
1	1а	2	2а	3	4
Leased fixed assets		910	901	772,520	792,744
including those under leasing		911	911	12,576	12,576
Inventories accepted for custody		920	902	58,944	172,156
Goods accepted for commission		930	903	2,774	3,248
Bad debts charged to losses		940	904	135,877	156,277
Obligations and payments collaterals (security) received		950	905	787	52,788
Obligations and payments collaterals (security) given		960	906	9,056,377	9,239,563
Depreciation of housing stock		970	907	10,490	9,140
Depreciation of objects equipped with external modern services and utilities and other similar objects		980	908	2,152	2,429
Payments for telecom services			909	129,192	180,353
Statement on the net assets value
Description	Notes	Index code	Line code	At the beginning of the period under report	At the end of the period under report
1	1а	2	2а	3	4
Net assets			1000	13,906,025	15,335,928

CEO _____________ A.V. Andreev Chief Accountant________ __Т.V. Rusinova

(signature) (name) (signature) (name)

___ _______________ 2007

PROFIT AND LOSS STATEMENT			Codes
Form No.2 under OKUD			0710002
For the first nine months of 2007	Date (year, month, day)		2007	09	30
Company: Public Joint –Stock Company "Southern Telecommunications Company"		under OKPO	01151037
Taxpayer Identification Number 2308025192		TIN	2308025192
Areas of activities: Telecommunications		under ОКVED	64.20; 64.20.11
Organizational & Legal form/Form of Ownership: mixed		under ОКОPF/ОКFS	47/42
Measurement unit: RUR thousand		under ОКЕI	384

Description	Notes	Index code	Line code	For the period under report	For the same period of the previous year
1	1а	2	2а	3	4
I. Income from and expenses for normal activities (Net) returns from sale of goods, products, works, services (less the VAT, excise taxes and similar obligatory fees)		010	010	14,584,924	12,866,945
including that from the sales: of communication services			011	13,958,738	12,114,211
Cost of sold goods, products, works and services		020	020	(10,184,547)	(8,948,524)
Including that of communication services			021	(9,741,542)	(8,342,394)
PROFIT (LOSS) FROM SALES (LINES 010 -020)		050	050	4,400,377	3,918,421
II. Operating income and expenses Interest receivable		060	060	19,759	15,009
Interest payable		070	070	(1,394,514)	(1,602,008)
Income from participation in other organizations		080	080	81,069	92,280
Other operating income		090	090	602,093	5,250,697
Other operating expenses		100	100	(1,389,333)	(5,785,435)
PROFIT (LOSS) BEFORE TAXES (LINES 050+060-070+080+090-100+120-130)		140	140	2,319,450	1,888,965
Income tax charges (lines -151+/-152+/-153) including			150	(591,792)	(486,793)
Deferred tax liabilities		142	151	(133,954)	(188,237)
Deferred tax assets		141	152	13,102	(57,596)
Current income tax charge		150	153	(470,940)	(240,960)
NET PROFIT (RETAINED PROFIT (LOSS) OF THE PERIOD UNDER REPORT) (LINES 160+170-180)		190	190	1,727,658	1,402,171
FOR REFERENCE Income tax conditional expense (profit)			201	(556,668)	(453,352)
Fixed tax liabilities		200	202	(96,738)	(102,105)
Fixed tax assets		200	203	61,614	68,663

Description	Notes	Index code	Line code	For the period under report	For the same period of the previous year
1	1а	2	2а	3	4
Base equity income (loss)			301
Watered equity income (loss)			302
*to be filled in the annual accounting report

Explanation of profit and loss items

Description	Index code	Line code	For the period under report		For the same period of the previous year
			profit	loss	profit	loss
1	1а	2	3	4	5	6
Fines, penalties and forfeits, which have been acknowledged or for which (arbitration) court awards on recovery have been received		401	1,087	(355)	886	(41,775)
Profit (loss) of previous years		402	52,957	(79,787)	56,788	(146,506)
Compensation of losses inflicted by failure to fulfill or to fulfill duly the obligations		403	2,463	(534)	1,433	(823)
Foreign exchange differences		404	360,013	(116,958)	2,562	(9,839)
Allocations to evaluation reserves		405	32,039		404,450	(20,732)
Written-off accounts receivable and payable		406	5,695	(5,399)	1,735	(1,843)

CEO _____________ A.V. Andreev Chief Accountant________ __Т.V. Rusinova

(signature) (name) (signature) (name)

___ ____________ 2007

ANNEX 2

Corporate Governance Code (Set of Rules) of Public Joint –Stock Company "Southern Telecommunications Company"