REFERENCE: KazTransOil CJSC (Kazakhstan) - financial ratios

/IRBIS, information of the KASE Listing commission, Aug 27, 01/ - The following information is published due to the passing the listing procedure of the Kazakhstan Stock Exchange (KASE) under category "A" by first issue euronotes of KazTransOil CJSC. KazTransOil CJSC provided following financial statements, which are made in compliance with the Kazakhstani Accounting Standards (KAS): balance sheet, income and cash flow statements for the years 1998-2000, as well as intermediate financial statements for the I quarter of 2001. Data from unaudited financial statements of KazTransOil CJSC in th. KZT, unless otherwise specified --------------------------------------------------------------------------- as of as of as of as of Article Jan 1, 99 Jan 1, 00 Jan 1, 01 Apr 1, 01 ------------------------- ---------- ---------- ----------- ----------- Authorized capital (paid) 19,343,214 19,406,071 32,903,713 32,903,713 Shareholders' equity 20,421,533 25,149,100 121,453,747 123,590,743 Book value of the assets 24,531,716 30,877,099 133,275,308 137,885,336 Net working capital 2,695,460 3,654,471 13,697,964 15,769,925 Accounts receivable (net) 4,035,084 4,551,465 6,384,484 6,575,740 Liabilities, total 4,110,183 5,727,999 11,821,561 14,294,593 Loans attracted 471,299 55,347 - - Bonds issued - - 3,628,829 3,922,641 Accounts payable 2,999,852 5,085,762 7,646,257 9,835,583 Services 12,543,605 17,698,345 35,148,218 10,352,766 Sales 7,299,317 10,091,881 23,668,161 6,432,685 Net income (loss) 920,814 5,639,812 7,431,698 2,137,001 Return on sales (ROS), % 41.81 42.98 32.66 37.87 Return on equity (ROE), % 4.51 22.43 6.12 1.73 Return on assets (ROA), % 3.75 18.27 5.58 1.55 --------------------------------------------------------------------------- In January 2000 American Appraisal Inc. conducted re-evaluation of KazTransOil CJSC fixed assets to make them in compliance with market values, which resulted in 5 time increase in shareholders' equity. The property was valued by taking into account their constant use. The property being valued included real estate, that is buildings and construction (including pipelines), machinery and equipment, as well as incomplete construction. All other property, including social purpose assets, net working capital and intangible assets, were removed from the evaluation. Based on the research of American Appraisal Inc., as of March 10, 2000 reasonable market value of the company's fixed assets, including incomplete construction, equaled $811.0m. Annual auditing of the company's financial statements, which is prepared by the Kazakhstani Accounting Standards, is conducted by Arthur Andersen (Almaty, Kazakhstan). The auditing of the company's balance sheet for the first year of existence (1997) was made in compliance with KAS, and for the years 1998-2000 - by KAS and IAS. Data from audited financial statements of KazTransOil CJSC in th. KZT, unless otherwise specified -------------------------------------------------------------- as of as of as of Article Jan 1, 99 Jan 1, 00 Jan 1, 01 ------------------------- ---------- ---------- ----------- Authorized capital (paid) 19,343,214 19,406,071 32,903,713 Shareholders' equity 20,737,029 25,149,100 121,453,747 Book value of the assets 24,532,340 30,877,099 133,275,308 Net working capital 3,880,569 4,546,459 14,750,495 Accounts receivable (net) 4,030,490 4,536,870 6,510,224 Liabilities, (net) 3,795,311 5,727,999 11,821,561 Loans attracted 471,299 55,347 - Bonds issued - - 3,628,829 Accounts payable 2,347,309 4,666,742 6,729,380 Services 8,986,137 17,698,345 35,148,218 Cost of goods sold 7,389,528 10,091,881 23,668,161 Net income (loss) 914,062 5,639,835 7,431,698 Return on sales (ROS), % 17.77 42.98 32.66 Return on equity (ROE), % 4.41 22.43 6.12 Return on assets (ROA), % 3.73 18.27 5.58 -------------------------------------------------------------- Because the company has been established in May 1997, Arthur Andersen only audited the balance sheet of KazTransOil CJSC for the year 1997. In the report made on the basis of this balance sheet, auditor did not confirm the physical stock taking amounting to KZT1.9bn on December 31, 1997, because he was not able to check , as well as noted that there were no reserves on totals of trade and other accounts receivable and there were overdue. In the conclusion it was said that except for these matters, the balance sheet as of December 31, 1997 gives true and reliable picture of the company's condition in all essential aspects based on KAS. In the opinion of Arthur Andersen, financial statements as of December 31, 1998, 1999 and 2000 give true and reliable picture of the company's financial condition in all essential aspects, as well as it results and cash flows in the years ended at these dates based on KAS.