Auditing report on 2000 financial statements of Kazakhstan Temir Joly NSE (Kazakhstan)

/KASE, June 29, 01/ - Kazakhstan Temir Joly NSE OJSC (Astana), in accordance with the listing requirements, provided the Kazakhstan Stock Exchange (KASE) with auditing report of Ernst&Young (Almaty, Kazakhstan) made on its 2000 consolidated financial statements. Based data of an independent auditor the following are financial and economic results of the issuer's activity as of December 31, 2000 and 1999 (in th. KZT): ------------------------------------------------------------- Indicator 1999 2000 --------------------------------------- --------- --------- Authorized capital (paid) 10,820 10,820 Shareholders' equity 682,350 773,328 Total assets 1,028,959 1,035,937 Net working capital -11,515 48,235 Accounts receivable 63,106 44,252 Liabilities 346,609 262,609 Long-term loans 132,067 89,207 Short-term loans 13,124 41 890 Accounts payable (net) 189,772 119,634 Sales 660,747 866,818 Cost of sales 569,291 680,193 Net income (loss) 113,567 90,978 --------------------------------------- --------- --------- Calculated based on the auditor's data: --------------------------------------- --------- --------- Return on sales (ROS), % 13.8 21.5 Return on equity (ROE), % 16.6 11.8 Return on assets (ROA), % 11.0 8.8 ------------------------------------------------------------- Auditing of Kazakhstan Temir Joly NSE and its affiliates was conducted by Ernst&Young according to International Accounting Standards. Audited financial report is different from the report of issuer which was prepared according to book keeping standards of Kazakstan, as a result of its correction in order to meet International Accounting Standards (IAS). The consolidated financial report of group was determined in USD, because the significant part if income and liabilities of Group denominated in different currencies, for which USD is a common exchange currency. The auditing report states that besides corrections that could be defined by results if Dec. 31, 1998 (at presence of the auditor), consolidated financial statements and of the Group provide reliable presentation of economic situation as of Dec.31, 2000, 1999 in all essential aspects according to IAS.