ASM External Audit Report FINAL EN

Financial Statements and Auditor’s Report To: Board of Directors Azeri Star Microfinance LLC From: SMART AUDIT LLC Introduction “SMART AUDIT” have audited the accompanying balance sheet of “Azeri Star Microfinance”, non-banking credit organization (hereinafter referred to as “the Company”)as of December 31, 2007 and the related statements of income, changes in equity and cash flows for the period then ended, and a summary of significant accounting policies and other explanatory notes. Management is responsible for the preparation and fair presentation of this financial information. Our responsibility is to express a conclusion on this financial information based on our audit. Scope of audit We conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan and perform our audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles and significant estimates made by the management, as well as evaluating overall financial presentation. We believe that our audit provides a reasonable basis for our opinion. Conclusion Based on our audit, nothing has come to our attention that causes us to believe that the accompanying financial information does not ...