Auditing report on 2000 financial statements of SHAHARMUNAIGAS OJSC (Kazakhstan)

/KASE, Jan 8, 02/ - SHAHARMUNAIGAS OJSC (Almaty region), in accordance with the listing requirements, provided the Kazakhstan Stock Exchange (KASE) with auditing report of PriceWaterhousCoopers (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 (in thousands, KZT, unless otherwise indicated): -------------------------------------------------------------------------------- 1999 2000 Indicator ---------------------------------------------------------- --------- --------- Authorized capital 1,200 3,625 Shareholders' equity 1,602,566 1,600,952 Total assets 1,627,815 1,610,831 Net working capital 1,598,968 916,375 Accounts receivable, total 1,607,007 1,608,094 Financial assistance (non-interest loans) to affiliated parities - 1,110,471 Liabilities, total 25,249 9,879 Accounts payable 25,249 9,879 Sales 70,087 15,476 Cost of sales 37,538 8,621 Net income (loss) 1,601,803 1,607 ---------------------------------------------------------- --------- --------- Calculated based on the auditor's data: ---------------------------------------------------------- --------- --------- Return on sales (ROS), % 46.4 44.3 Return on equity (ROE), % 100.0 0.1 Return on assets (ROA), % 98.4 0.1 -------------------------------------------------------------------------------- Auditing of SHAHARMUNAIGAS OJSC was made according to Kazakhstani and international accounting standards. In the opinion of auditor, financial statements give a reliable and objective picture of SHAHARMUNAIGAS OJSC financial situation as of December 31, 2000. The statements are presented in accordance with the Kazakhstani accounting standards. Declining to make stipulations the auditor notes that company is undertaking substantial volumes of operations with affiliated parties. The terms and conditions of such operations could differ from that conducted between non- affiliated parties. According to Appendix 15 of the auditor's conclusion, the company conducted following types of affiliated operations in 2000: - receipt of gratuitous financial assistance from Munaigas OJSC - KZT11,150th. - receipt of short-term financial assistance (free interest loan) from Munaigas OJSC - KZT2,606th. - granting of short-term financial assistance (free interest loan) to Munaigas OJSC - KZT354th. - granting of short-term financial assistance (free interest loan) to Turan LLP - KZT794,372th. - granting of short-term financial assistance (free interest loan) to Renata LLP - KZT313,950th. - purchasing of securities from Kikjan LLP - KZT243,393th. - purchasing of securities from Yangul LLP - KZT125,000th. - sales of securities of Kikjan LLP - KZT243,393th. - sales of securities of Yangul LLP - KZT125,000th. Primary activities of the company: extraction, preparation, realization and processing of oil and oil products, transportation, processing, export-import operations, construction and exploitation of gas stations, gas tanks and stores.