Public Joint Stock Company HALS-Development Auditor Raises 'Going Concern' Doubt

GALS-Development PAO, formerly Sistema-Gals OAO, is a Russia-based company engaged in the real estate sector. The Company focuses on the whole life cycle of its projects, from the conceptual design stage to the property management. It specializes on the residential and office buildings, shopping centers, high-end housing, single family houses, apartment buildings and land development. The Company's revenues are derived from the sale of completed development projects, both residential and commercial, as well as the sale of rights for land and rental income from completed development projects held as investments. The Company's operations are conducted in the Russian Federation and the Commonwealth of Independent States (CIS) countries. It operates through four subsidiaries located domestically. In 2012, the Company acquired a 100% stake in StroyPromObject OJSC. As of December 31, 2011, the Company's major shareholder was Bank VTB OAO with a stake of 31.5%.