Our Cases & Projects
Anonymized case studies from Leader Audit's practice with concrete numbers. Client names are hidden under non-disclosure agreements (NDA), but the methods, risks and outcomes are real.
Manufacturing: VAT Refund
Client: Manufacturer of construction materials, annual turnover 85 bn UZS, 320 employees, exports products to Kazakhstan, Kyrgyzstan and Tajikistan.
Challenge: The company accumulated 22 bn UZS of input VAT surplus over 2 years due to major investments in a new plant. The Tax Committee twice refused the refund citing 'insufficient supporting documents' and 'discrepancies in reconciliation acts with suppliers'.
Approach:
- Performed a complete inventory of invoices for 24 months, found and corrected 47 discrepancies between the purchase ledger and the State Tax Committee's automated system.
- Prepared comprehensive documentation for export operations with translation of foreign trade contracts and customs declarations (CMR, invoices, transaction passports).
- Agreed a new methodology for recognizing export operations for the 0% VAT rate with the State Tax Committee.
- Supported the field VAT refund audit, attending every tax control event.
Outcome: The refund went through with no additional assessments or penalties. Methodological recommendations were also fixed, allowing the company to now recover VAT quarterly without delays.
- VAT refunded: 18.4 bn UZS
- Refund timeline: 5 months
- Additional assessments: 0 UZS
- Penalties prevented: 1.2 bn UZS
IT: IFRS Transformation
Client: Uzbekistan IT Park resident, fintech platform development, 95 employees, revenue 28 bn UZS, primary clients are CIS and Middle East banks.
Challenge: A foreign investor required 3 years of IFRS financial statements and an independent audit opinion to pass due diligence before an investment round. Deadline — 3 months until deal close.
Approach:
- Collected and normalized data from three different accounting systems: 1C, internal CRM and cap table in Carta.
- Applied IFRS 15 to revenue recognition for subscriptions (SaaS model) accounting for performance obligation separation.
- Capitalized internal software development costs under IAS 38 and IFRS 38 with separation of research and development phases.
- Audited the prepared statements under ISA, issued an unqualified opinion.
Outcome: The deal closed on time. The investor noted the high quality of the statements and detailed disclosures under IFRS 9 (financial instruments) and IFRS 16 (leases).
- Statements prepared: for 3 years
- Opinion type: Unqualified
- Project duration: 11 weeks
- Investment raised: $4.5 M
Retail: Tax Consulting
Client: Retail clothing chain, 18 stores across Uzbekistan, annual turnover 42 bn UZS, 280 employees.
Challenge: The tax inspectorate initiated a field audit with a preliminary estimate of additional assessments of 4.2 bn UZS in VAT, profit tax and social tax. Main claims — economic substantiation of marketing costs and transfer pricing operations with an affiliated importer.
Approach:
- Prepared substantiation files for each of 23 disputed transactions with supporting documents and market price calculations.
- Applied the comparable uncontrolled price (CUP) method to transfer transactions, proving 90% of deals comply with Article 176 of the Uzbek Tax Code.
- Prepared a memorandum on the economic substantiation of marketing costs linked to revenue growth.
- Supported all 14 working meetings with inspectors, achieving partial withdrawal of the initial assessment.
Outcome: Additional assessments reduced from 4.2 bn to 180 mln UZS — through correct positioning, with no appeals or court proceedings. The client preserved working capital and reputation.
- Initially claimed: 4.2 bn UZS
- Final assessments: 180 mln UZS
- Reduction: −95.7%
- Penalties: 0 (all dropped)
Banking: Statutory Audit
Client: Second-tier commercial bank, assets 2.1 trillion UZS, loan portfolio 1.3 trillion UZS, 45 branches, 720 employees.
Challenge: Annual statutory audit under ISA with in-depth review of the loan portfolio, loan loss provisions, and compliance with Central Bank of Uzbekistan prudential requirements.
Approach:
- Applied a sample testing method to the loan portfolio: 142 loans out of 8,200, total sample size 38% of the portfolio.
- Conducted independent collateral valuation for 56 large loans engaging certified appraisers.
- Tested the bank's IFRS 9 ECL model, verified the migration matrix and forward-looking scenarios.
- Agreed 11 adjustments with the bank prior to issuing the opinion, saving the bank a separate disclosure in the annual report.
Outcome: Opinion issued before the reporting deadline to the CBU. The bank passed the Central Bank's review without comments — thanks to preventive adjustments agreed during the audit.
- Sample coverage: 38% of portfolio
- LLP adjustments: +47 bn UZS
- Opinion type: Unqualified
- CBU compliance: 100%
Healthcare: Bookkeeping Restoration
Client: Importer and distributor of pharmaceutical products, 6 regional warehouses, annual turnover 31 bn UZS.
Challenge: After the chief accountant resigned, primary documents for 14 months were missing, inventory discrepancies of 2.8 bn UZS, tax reporting not filed for 4 quarters. Time until scheduled tax inspection — 2 months.
Approach:
- Restored primary documents through requests to counterparties and the e-faktura system — 8,400 invoices and 2,100 waybills.
- Performed a complete inventory of 6 warehouses with photo documentation, identified actual discrepancies of 940 mln UZS (vs the preliminary 2.8 bn estimate).
- Prepared and filed correcting declarations for VAT, profit tax and social tax for the 4 missed periods.
- Implemented a daily reconciliation regulation between warehouse balances and accounting records.
Outcome: We finished before the tax inspection arrived. All missing declarations filed, taxes paid voluntarily — exempting the company from penalties under Article 219 of the Tax Code.
- Documents restored: 10,500 items
- Actual shortage: 940 mln UZS
- STC penalties: 0 (voluntary filing)
- Duration: 7 weeks
M&A: Due Diligence
Client: Buyer — foreign investment fund. Target — manufacturing company in Uzbekistan with 110 bn UZS turnover and 450 employees. Deal size — discussed at $12 M.
Challenge: Financial and tax due diligence before business acquisition. Time constraint — 6 weeks including holidays. Hidden risks not reflected in the seller's management reporting.
Approach:
- Financial DD: revenue quality check (by counterparty, currency, seasonality), EBITDA normalization excluding one-time items.
- Tax DD: assessment of risks in VAT, profit tax, transfer pricing, dispute liabilities.
- Legal DD (with partner counsel): asset encumbrances, corporate rights, licenses and permits.
- Prepared an 84-page DD report with a separate quality of earnings (QoE) section and a quantified risk register.
Outcome: Hidden tax and legal risks of $2.1 M became grounds for revising the deal price. The buyer saved $1.4 M and placed the remainder in escrow for 24 months.
- Hidden risks identified: $2.1 M
- Deal price adjustment: −$1.4 M
- Project duration: 5.5 weeks
- Deal: Closed
Why we share numbers
All cases above are real Leader Audit projects. We cannot disclose client names, but the methodology, identified risks, ISA/IFRS standards applied and outcomes achieved are accurate.
Each case has passed internal review and been agreed with the client before publication. If you recognize your project — it is a coincidence with dozens of similar engagements we handle annually.
We can provide a reference letter from a client in your industry on request — after a mutual NDA is signed.
Related services: Statutory audit · Initiative audit · Tax consulting · VAT refund · Accounting outsourcing
Free consultation: +998 97 410 04 47 · info@leaderaudit.uz · 12 Mustaqillik St, Tashkent.