Auditing report on 2000 financial statements of OJSC "UKTMK" (Kazakhstan)

/KASE, Aug 3, 01/ - OJSC "UKTMK" (Ust-Kamenogorsk), in accordance with the listing requirements, provided KASE the auditing report of "Deloitte & Touche" (Almaty, Kazakhstan) made on 2000 financial statements of the issuer. Based on independent auditor, the following are the results of the issuer in 2000 and 1999 (in th. KZT): Indicator 1999 2000 ------------------------------------------------- --------- --------- Authorized capital (with adjustment to inflation) 24.021 24,021 Shareholders' equity 6.811,466 6,958,955 Total assets 8,611,578 7,946,324 Net working capital 1,436,963 1,584,174 Accounts receivable (net) 469,446 245,714 Accounts payable 1,175,729 778,473 Sales (services offered) 5,939,705 5,538,777 Cost of goods sold (services offered) 4,705,163 4,672,291 Net income 2,446 173,449 ------------------------------------------------- --------- --------- Calculated by the data of auditing report: ------------------------------------------------- --------- --------- Return on sales (ROS), % 20.78 15.64 Return on equity (ROE), % 0.04 2.49 Return on assets (ROA), % 0.03 2.18 Earnings per share (EPS), KZT - 173.94 Price earnings ratio (P/E) 6,312.17 6,448.85 Book value of a share, KZT 6.087.93 6.312.17 ----------------------------------------------------------------------- Auditing was conducted by "Deloitte & Touche" in accordance with International accounting standards, hence, financial statements of OJSC "UKTMK" were properly corrected to make it comply with International accounting standards (IAS). As the company keeps its records based on the accounting principles accepted in Kazakhstan, that differ much from those of IAS, there are some discrepancies in financial ratios calculated by the auditor and the issuer. Paid authorized capital of the company (KZT21,582 th.) was shown by the auditor with KZT2,439 th. adjustment to the inflation, in accordance with IAS. In the opinion of "Deloitte & Touche", financial statements give reliable picture of financial situation of OJSC "UKTMK" in all essential aspects as of December 31, 2000, as well as its results and cash flow statements based on International accounting standards. Common (KZ1P05502017, trade cod - UTMK) and preferred (KZ1P05502012, trade cod - UTMKp) shares of UKTMK OJSC were included in official list of KASE securities, A category, on Oct 16 of 1997. The main type of company's activity - production and distribution of non ferrous mettals (tytanic sponge of high quality, trade magnium)