Karazhanbasmunai OJSC (Kazakhstan): financial indices

/IRBIS, Dec.12, 00/ - Following are financial and economic ratios of Karazhanbasmunai OJSC (Aktau), made by the data of the Listing Commission of Kazakhstan Stock Exchange (KASE). The information is published in connection with admission of the first issue bonds of the company into official list of the KASE securities, category "A". The management of Karazhanbasmunai OJSC assumes full responsibility for the reliability of presented information. FINANCIAL STATEMENT DATA PRESENTED BY THE ISSUER Karazhanbasmunai OJSC presented its balance sheet, income and cash flow statements for the years 1997-1999, as well as intermediate statement for the year 2000, which was made in accordance with the Kazakhstani accounting standards (KAS). Financial and economic indicators of Karazhanbasmunai OJSC (in th. KZT, unless otherwise specified) ---------------------------------------------------------------------------- As of As of As of As of Index Jan.1 '98 Jan.1 '99 Jan.1 '00 Oct.1 '00 ---------------------------------------------------------------------------- Authorized capital (paid) 2,161,251 2,161,251 2,161,251 2,161,251 Shareholders' equity 709,048 -221,510 319,414 3,683,860 Book value of the assets 5,691,324 5,431,292 5,180,800 8,894,151 Net working capital -4,237,243 -4,962,456 -4,191,346 6,591 Accounts receivable (net) 350,233 561,545 487,997 2,343,622 Liabilities, total 4,982,276 5,652,802 4,861,386 5,210,291 Bank loans - - - 3,823,239 Accounts payable 4,982,276 5,151,528 4,861,386 1,074,308 Sales 3,345,439 2,194,731 6,184,759 11,986,160 Undistributed profit (deficit) (2,335,544) (3,159,02) (2,540,719) 560,692 Net profit (loss) (1,040,907) (868,486) 573,491 3,363,820 Return on sales (ROS), % 20.40 10.99 73.46 80.17 Return on equity (ROE), % - - 179.54 91.31 Return on assets (ROA), % - - 11.07 37.82 ---------------------------------------------------------------------------- Most of undistributed deficit in 1997 and 1998 caused the assets and shareholders' equity of Karazhanbasmunai OJSC to decrease up to negative in 1998. This circumstance makes it incorrect to calculate the return on equity and assets for these years. AUDITING REPORT DATA 1997 and 1998 financial statements were audited by PricewaterhouseCooper LLP (Almaty, Kazakhstan). The auditing report reads (quote) "... the assessment of the fixed assets did not comply with the KAS bookkeeping norms #6. ... It affects the financial and economic results of the company shown in its statements" (unquote). Except for the corrections that should be made upon conducting assessments under existing record keeping norms, financial statements, in the view of PricewaterhouseCoopers LLP, reflect financial situation of Karazhanbasmunai OJSC objectively and reliably as of December 31, 1998. At that, the auditor paid attention to significant losses of the company, prevalence of current liabilities over current assets and expressed his doubt in the company's ability to work steadily further on. 1999 financial statements and intermediate financial statement as of September 30, 2000 were audited by Arthur Andersen (Almaty, Kazakhstan). The auditor notes, that as of Sep.30,00 Karazhanbasmunai OJSC (quote) "... had no grounded report of an independent appraiser on oil reserves. As a result, we could not get sufficient information to express our opinion regarding the principle that was used to assess the assets of an oil complex... In our opinion, except for the cases of effects of correction entries, if such entries were made, if the Company received justified report on the reserves... financial statements give a reliable and objective picture of Karazhanbasmunai OJSC financial situation as of September 30, 2000 and December 31, 1999, results of its activities and cash flows in nine months ended on September 30, 2000 in accordance with the Kazakhstani accounting standards" (unquote).