“AZVIRT” LIMITED LIABILITY COMPANY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2020 (Continued)
(In thousands of Azerbaijani manats)

25. CONSTRUCTION REVENUE

Year ended Year ended

December 31, December 31,
2020 2019

Revenue from foreign construction contracts 265,863 113,180

Revenue from domestic construction contracts 88,480 99,205
Other revenue 413 -

Total construction revenue 354,756 212,385

As at December 31, 2020 and 2019, included in the construction revenue amounts of AZN 70,566 thousand
and AZN 47,763 thousand derive from one customer, which represent 20% and 23% of total construction
revenue, correspondingly.

26. COSTS OF CONSTRUCTION

Year ended Year ended
December 31, December 31,
2020 2019
(reclassified)
Material expenses (129,345) (68,816)
Subcontractor costs (121,319) (59,592)
Salaries and related expenses (21,504) (16,901)
Fuel expenses (11,855) (6,948)
Transportation expenses (10,580) (9,004)
Depreciation and amortization (8,966) (6,309)
Rental expenses less than 12 months and low value items (4,926) (6,230)
Social security (3,338) (2,543)
Repair and maintenance expenses (2,196) (2,487)
Utility expenses (921) (912)
Professional services (801) (686)
Insurance expenses (542) (503)
Oil and lubricants (382) (407)
Security (262) -
Business trip expenses (238) (157)
Taxes other than income tax (140) (182)
Health and safety expenses (85) (20)
Communication expenses (72) (52)
Others (235) (78)
Total costs of construction (317,707) (181,827)

54