Quarterly report

Liquidity of the Issuer, adequacy of capital and current assets

Indicators characterizing the issuer’s liquidity for the last five completed fiscal years and for the reporting quarter:

Indicator	3Q2007	3Q2006
Own current assets (working capital), RUR ths	-22,699,000	-23,626,531
Fixed assets index	2.48	2.67
Current liquidity ratio	0.26	0.43
Quick liquidity ratio	0.13	0.22
Own funds autonomy ratio	0.36	0.33

The above indicators were calculated according to the methodology recommended by the Federal Financial Markets Service of Russia.
Economic analysis of the Issuer’s liquidity and paying capacity:

Liquidity indicators show the ability of the company to fulfill its short-term liabilities and are based on the principle of the correspondence of a part of current assets and short-term liabilities.

Own current assets (working capital) are understood as the part of own capital allocated to current assets funding. The negative value of own current assets shows that investments are financed from short-term borrowings.

The fixed assets index is an indicator showing ratio of non-current assets and long-term accounts receivable to own capital. The fixed assets index for the analyzed period is higher than the recommended value of 0.9, while the value has been calculated for enterprises with medium capital coefficient. Communication enterprises are considered to be enterprises with a high capital coefficient. In 2007 the fixed assets index made 2.48, in 2006 it was 2.67.

The current liquidity ratio shows the general availability of circulating funds for the short-term debt of the enterprise, the recommended value for Russian enterprises approximating 2.

Quick liquidity ratio is more strict estimation of a company’s liquidity. It estimates the part of current short-tern liabilities that could be covered by a company under critical conditions. It is assumed that inventories have no liquidity value. The optimal value of this indicator is 0.8-1.0.

In the analyzed period (3Q2007-3Q2006) ratios of current liquidity and quick liquidity were less than the recommended standard values. In 2007 ratios of current liquidity and quick liquidity were 0.26 and 0.43 accordingly.

Recently the autonomy ratio in fact remained the same low and was 0.36. The autonomy ratio shows the share of own capital in assets and describes financial independence from creditors.

In 2007 the Issuer plans to receive money from the following sources: moneyed proceeds from core activity and financial resources of domestic and international credit organizations. It will help the Issuer to pay out existing debts in due time in case of lack of funds.

The Issuer’s own funds are not sufficient for fulfillment of short-term obligations and coverage of current operating expenses.
Opinions of the Issuer’s governing bodies concerning the mentioned factors and-or level of their effect on financial and economic activities of the Issuer coincide.
None of the members of the Board of Directors or collective executive body (Management Board) of the Issuer has special opinion on the mentioned factors and-or level of their effect on financial and economic activities of the Issuer reflected in the minutes of the sessions of the Issuer’s Board of Directors or collegiate executive body at which the corresponding matters have been considered.

3. Amount and Structure of Issuer’s Equity and Working capital

1. Amount and Structure of Issuer’s Equity and Working capital

Description	3Q2007	3Q2006
Authorized capital, RUR ths*	1,297,779	1,297,779
Total value of the Issuer’s shares repurchased by the Issuer for their future resale (transfer)	0	0
The Issuer’s reserves formed from the Company’s profit, RUR ths	64,889	64,889
Additional paid-in capital reflecting increase of assets value after revaluation, RUR ths	5,470,541	5,523,340
Difference between the sale price (price of distribution) and par value of the Company’s shares resulted from selling the Company’s shares at the price higher than their nominal value, RUR ths	0	0
Retained net profit of the Issuer, RUR ths **	6,542,447	6,226,767
Total capital value of the Issuer, RUR ths	15,103,314	13,123,440

*The size of the authorized capital of the Issuer corresponds to the constituent documents of the Issuer;

**retained earnings of past years+retained earnings of the reporting year – uncovered loss of past years – uncovered loss of the reporting year

The Issuer’s own capital structure is shown on the basis of financial statements.
Structure and amount of the Issuer’s current assets in accordance with its financial accounts:

Description	3Q2007
	%	RUR ths
Inventories	28.42	1,046,120
VAT on acquired values	23.16	852,664
Accounts receivable (expected in over 12 months after the reporting date)	0.14	5,208
Accounts receivable (expected within 12 months after the reporting date)	41.43	1,525,319
Short-term financial investments	1.02	37,653
Cash and cash equivalent	5.79	213,253
Other current assets	0.02	1,023
Current assets - total	100	3,681,241

Sources of financing the Issuer’s current assets:

According to the Issuer’s policy on financing the Issuer’s working capital "UTK" PJSC uses own funds and borrowings (bank credits and loans) for these purposes.

The Issuer’s policy on financing the Issuer’s working capital:

The issuer conducts the policy of working capital financing based on attracting borrowed funds to cover the scarcity of own working capital. Borrowed funds account for major portion in the sources of "UTK" PJSC working capital financing. The scarcity of own working capital is connected with the Company’s investment program financing aimed at market penetration and improvement of provided services. The Issuer also tries to reduce accounts receivable, to decrease overdue receivables and to increase their turnover period.

Factors that may result in changing the policy of financing the circulating assets

• 
  actions aimed at reduction of accounts receivable, decrease in inventories, acceleration of the working capital turnover.
  

The Company made up a plan of measures for control over turnover of accounts receivable. Actual work with debtors is being monthly analyzed in each branch. "UTK" PJSC works actively with claims and brings suits against bad debtors.

• 
  growth of market prices of working stock and other kinds of inventories;
  
• 
  financial risks associated with the change of interest rates caused by possible alteration of refinancing rates of the Central Bank of the Russian Federation;
  
• 
  change of prices on services provided by the Issuer.
  

Probability of such factors’ occurrence:

• 
  the Issuer’s policy on assets management regarding receivables and inventories is aimed at reduction of their level and turnover period. Possibility of negative influence of the given factor on financing the working capital is estimated as low;
  
• 
  cost of bank credits and the rate of refinancing of the Central Bank of the Russian Federation have a downward tendency. Possibility of adverse effect of the given factor on financing the working capital is estimated as low;
  
• 
  prices of inventories used by the Issuer in its business activity are not liable to the sudden ups and downs of the market. Possibility of adverse effect of the given factor on financing the working capital is estimated as low;
  
• 
  the Issuer’s marketing strategy is aimed at broadening its activity in the market sectors with non-regulated prices and tariffs. Possibility of adverse effect of the given factor on financing the working capital is estimated as low.
  

2. The Issuer’s financial investments

As of September 30, 2007 amount of the Issuer’s financial investments totaled 643,465.9 thousand rubles including 482,001.5 thousand rubles of long-term financial investments.
Financial investment of the issuer, making over 10 per cent of all financial investment as of the end of the period under report.
1) Investments in emissive securities.
Kind, category (type), form of securities: ordinary registered non-documentary shares

Full and abbreviated registered name of the issuer: Open Joint –Stock Company “Health-care center “Orbita”/ OJSC “Health-care center “Orbita”.

Location: Olginka, Tuapse district, Krasnodar Krai, 352840

State registration of securities’ issues:

Date of the issue’s state registration	State registration number of the issue	Authority of state registration of the issue:
20.04.2001	1-01-58003-Р	Regional branch of FCSM of Russia in the Southern federal district

Number of securities owned by the Issuer, pieces: 354,400

Total par value of securities owned by the Issuer, RUR: 354,400,000

Total book value of securities owned by the Issuer, RUR: 354, 400, 000

Balance value of securities of the Issuer’s subsidiaries and associates, RUR: 354, 400, 000

Amount of fixed rate or other income yielded by bonds and other debt emissive securities or procedure of its determination: none

Period of payment: none.

Preference share dividend and procedure of its determination if it is indicated in the Charter of the Issuer –Joint –Stock Company: none

Payout period: none.

Common share dividend (if common share dividend for the current years is not declared, dividend declared for the previous year should be indicated), payout period:

No income has been charged or paid by the securities during the period of the Company’s operation.

Potential losses caused by the bankruptcy of the organizations (enterprises) in which investments have been made:

In the opinion of the Issuer potential losses are limited to book value of investments.

2) Other financial investments:

Other financial investment of the issuer making over 10 per cent of all financial investment as of the end of the fiscal year: no such investments

Potential losses caused by the bankruptcy of the organizations (enterprises) in which investments have been made: none

Provision for impairment of the securities.

In December 2003 pursuant to PBU 19/02 the Issuer created provision for impairment of financial investments.

Size of the provision for impairment of the securities makes:

82,151,601 rubles as of September 30, 2007.

The Issuer’s funds are not placed on deposit or other accounts in banks and other credit organizations which licenses have been suspended or withdrawn or concerning which the decisions on reorganization, liquidation of such credit organizations, starting the procedure of bankruptcy, or recognition of such organizations bankrupt have been accepted.

Accounting Standards according to which the Issuer has made calculations reflected in the present item of the quarterly report:

Financial investments are reflected by the Issuer on account 58 according to PBU 19/02 "Accounting for financial investments" approved by Order of the Ministry of Finance of the Russian Federation №126n of 10.12.2002.

3. Issuer’s Intangible Assets

Structure, Original (replacement) cost of intangible assets and depreciation charged in the last fiscal year and reporting period:

№	Group of intangible assets	Overall value, RUR ths	Depreciation charged, RUR ths
	Reporting date: 30.09.2007.
1	Exclusive rights to trade marks and service marks	146,169	44,429
2	Exclusive rights to usage of isolated natural objects
3	Exclusive rights to software, data bases	1,665,070	1,665,070
	TOTAL	1,811,239	1,709,499

There were no contributions of intangible assets to the authorized capital or on a gratis basis.

Accounting for intangible assets.

Intangible assets are reflected according to “Accounting rules for intangible assets” PBU 14/2000, approved by the Order of the Ministry of Finance of the Russian Federation № 91n of October 16, 2000.
Depreciation charges on intangible assets is determined monthly according to the norms established on the basis of the initial value of such assets and their useful life using linear method.


The projected useful life of intangible assets is determined at their registration by a special commission and approved by the Company’s General Director.


Intangible assets are depreciated on a straight-line basis by accrual of amortization on account 05

"Amortization of intangible assets".