CJSC "NOC "KAZAKHOIL" (Kazakhstan): financial ratios

/KASE, Galina Tsalyuk, May 25, 00/ - Following are the main ratios of financial and economic activities of CJSC "NOC "KAZAKHOIL" published due to the entrance of the bonds of the company into official list of the securities of Kazakhstan stock exchange (KASE) under category "A". The table was made on the basis of financial statements, presented by the issuer to KASE, and the data of the auditing report made by "Ernst & Young" (Almaty, Kazakhstan). The company presented the following statements made in accordance with the Kazakhstani accounting standards (KAS): unconsolidated financial statements (balance sheet, income and cash flow statements) for the year 1997, consolidated financial statements for the year 1998 (balance sheet, income statement), and for the year 1999 (balance sheet, income and cash flow statements). Data from the financial statements, presented by the issuer, are shown below (in th. KZT, unless otherwise indicated): Ratio As of Jan.1,99 As of Jan.1,00 --------------------------- -------------- -------------- Authorized capital (paid) 4,112,564 10,996,378 Shareholders' equity 98,448,536 136,036,707 Book value of the assets 191,067,336 301,476,112 Net working capital 3,474,261 29,600,089 Accounts receivable (net) 65,423,002 74,394,726 Total liabilities 92,618,800 165,439,405 Loans received 16,508,609 19,668,851 Accounts payable 71,351,978 139,544,077 Sales (services offered) 65,338,076 72,886,642 Net income (loss) 1,913,344 18,038,975 Return on sales (ROS), % 58.93 98.60 Return on equity (ROE), % 1.94 13.26 Return on assets (ROA), % 1.00 5.98 --------------------------- -------------- -------------- The data of the year 1997 are not presented in the table, since KAS #13 "Consolidated financial statement and accounting of investments into affiliated company", KAS #14 "Accounting of the investments into affiliated company" and KAS #15 "Reflecting the participation in joint stock ventures in financial statements" went into effect in 1998. Also, CJSC "NOC "KAZAKHOIL" presented auditing reports, made by "Ernst & Young" (Almaty, Kazakhstan) in accordance with International accounting standards, based on consolidated financial statements of the company for the years 1997-1998. The company did not present auditing report on its 1999 financial statements, because, according to the letter from "Ernst & Young", the compilation of the financial statements is getting complicated due to the fact that it requires the consolidation of more than 40 different companies, joint ventures and investments, with the biggest of them requiring separate consolidation and preparation of consolidated financial statements. Based on the financial statement preparation plan, presented by the auditor, final version of CJSC "NOC "KAZAKHOIL" financial statements will be ready on August 15, 2000. By 1999 financial statements the company presented auditing report made by CJSC "BDO Kazakhconsulting" (Almaty, Kazakhstan), and in accordance with that financial statements give a reliable and accurate picture of the company's financial situation as of January 1, 2000 in all essential aspects on the basis of accounting methods adopted in Kazakhstan. Data of the auditing report are presented below (in th. USD, unless otherwise indicated): Ratio As of Jan.1,98 As of Jan.1,99 ---------------------------- -------------- -------------- Authorized capital (paid) 37 54,425 Shareholders' equity 1,063,971 1,853,579 Book value of the assets 2,412,817 3,603,744 Net working capital -120,951 -109,949 Accounts receivable (net) 663,979 813,545 Total liabilities 1,348,846 1,750,165 Loans received 910,878 974,640 Accounts payable 353,066 664,488 Sales (services offered) 1,009,546 664,878 Net income (loss) (6,875) 373,729 Return on sales (ROS), % 44.17 28.45 Return on equity (ROE), % - 20.16 Return on assets (ROA), % - 10.37 ---------------------------- -------------- -------------- According to the auditing report, "Ernst & Young" does not express its opinion regarding the results of financial and economic activities of the company, and correspondingly, regarding its shareholders' equity and cash flows in 1997 and 1998 due to significant limitations in the volumes of following procedures: - confirmation of current value of the inventory, reflected in the balance sheet as of December 31, 1997, to identify the need for the correction of the results and beginning balance of undistributed income in 1998; - confirmation of the reliability of the depreciation expenses; - confirmation of the sufficiency of the reserves, formed to restore beginning natural condition of the deposit sites; - absence of cash flow statements for the year 1997. Due to the facts mentioned above, "Ernst & Young" does not express its opinion regarding the financial situation of the company as of December 31, 1997 and regarding its results as of indicated date. At the same time, it is mentioned in the report that 1998 balance sheet gives a reliable representation of "NOC "KAZAKHOIL" financial situation as of December 31, 1998 in accordance with International accounting standards issued by the Committee on International accounting standards.