OJSC "KEGOC" (Kazakhstan): financial ratios

/IRBIS, June 28, 00/ - Following are financial and economic ratios of OJSC "KEGOC" (Astana). It is made by the data of the Listing commission of Kazakhstan stock exchange (KASE). When making this report the KASE specialists used the materials presented by OJSC "KEGOC" based on the listing requirements: consolidated financial statements (balance sheet, income statement and cash flow statements) for the years 1997-1999, as well as balance sheet and income statement for the first quarter of 2000. These financial statements were made in accordance with the Kazakhstani accounting standards (KAS). Moreover, the KASE has auditing report of "Arthur Andersen" (Almaty, Kazakhstan) made in accordance with International accounting standards on consolidated financial statements of OJSC "KEGOC" for the years 1997- 1998, as well as report of "KPMG Janat" (Almaty, Kazakhstan) on financial statements of KEGOC for 1999 (international standard). The information is given due to the fact that the bonds of RGP were entered into KASE official list of securities under category "A". FINANCIAL STATEMENT DATA PRESENTED BY THE ISSUER Following is the table created by the KASE specialists based on financial statements of OJSC "KEGOC" (in th. KZT, unless otherwise specified). As of Jan.1, As of Jan.1, As of Jan.1, As of Apr.1, Ratio 98 99 00 00 ------------------------- ------------ ------------ ------------ ------------ Authorized capital (paid) 59,633,300 74,069,630 74,905,777 74,905,777 Shareholders' equity 73,464,564 72,892,379 68,163,900 68,470,599 Book value of the assets 74,799,582 75,549,639 69,183,252 69,388,770 Net working capital 6,850,538 4,190,338 2,956,333 4,352,181 Accounts receivable 6,987,068 5,636,244 2,654,902 3,113,958 Liabilities, total 1,335,018 2,657,260 1,019,352 918,171 Sales (services offered) 3,375,730 10,562,362 8,081,361 2,448,394 Net income (loss) 118,153 (2,185,979) (4,855,632) 306,699 Return on sales (ROS), % 20.75 13.49 9.73 30.24 Return on equity (ROE), % 0.16 - - 0.45 Return on assets (ROA), % 0.16 - - 0.44 ------------------------- ------------ ------------ ------------ ------------ AUDITING REPORT DATA Following is the table created by the KASE specialists based on auditing report of "Arthur Andersen" and "KPMG Janat" (in th. KZT, unless otherwise specified). Ratio As of Jan.1, 98 As of Jan.1, 99 As of Jan.1, 00 ------------------------- --------------- --------------- --------------- Authorized capital (paid) 59,633,300 74,069,630 74,905,777 Shareholders' equity 73,310,136 72,892,379 68,163,900 Book value of the assets 74,645,154 75,549,389 69,173,252 Net working capital 6,850,788 4,190,588 2,956,333 Accounts receivable (net) 6,717,120 5,540,334 2,159,256 Liabilities, total 1,335,018 2,657,010 1,019,352 Sales (services offered) 3,375,730 10,562,362 8,081,361 Net income (loss) 118,153 (2,185,979) (4,855,632) including: provisions 36,374 1,522,632 2,962,721 Return on sales (ROS), % 20.75 13.49 9.73 Return on equity (ROE), % 0.002 - - Return on assets (ROA), % 0.16 - - ------------------------- --------------- --------------- --------------- Based on auditing report of "Arthur Andersen", as of December 31, 1998 the loss of OJSC "KEGOC" was lowered due to the creation of following reserves: - on obsolete objects of incomplete construction for KZT2,000,430.0 th., which caused fixed assets and other long-term assets to be overvalued; - on old stock and obsolete inventory for KZT191,287.0 th., which caused inventory to be overvalued; - on bad debts for KZT1,621,557.0 th., which caused current assets to be overvalued. In 1998 report the auditor notes that in 1998 OJSC "KEGOC" , taking into account his remarks, recalculated depreciation expenses of certain assets that caused depreciation expenses in 1997 to decrease approximately by KZT154,428.0 mln. In opinion of "Arthur Andersen", financial statements of OJSC "KEGOC" give reliable representation of the company's financial situation in all aspects as of December 31, 1997 and 1998, of its income statements and cash flow statements from January 1 through December 31, 1998 and from September 1 through December 31, 1997 in accordance with Kazakhstani accounting standards In its 1999 auditing report "KPMG Janat" notes that as of December 31, 1999 OJSC "KEGOC" did not created reserves on objects of incomplete construction, which is to be completed, as well as on objects that were passed to the company by the government of Kazakhstan as a contribution into authorized capital. The company conducts talks with the government to get a permission to write off these assets by decreasing the authorized capital. As of December 31, 1999 the cost of incomplete construction is probably overvalued by KZT1,641,549 th. If the talks with the government are not successful, then the company will probably incur additional loss of KZT1,641,549 th. at the end of 2000. In the opinion of "KPMG Janat", financial statements give reliable representation of the company's financial situation in all aspects as of December 31, 1999, of its income statements and cash flow statements as of indicated dates in accordance with Kazakhstani accounting standards. The auditing report is conditional.