Auditing results of consolidated activity of NC KTZh CJSC for 2001

/KASE, July 09, 02/ - NC KTZh CJSC (Kazakhstan temir zholy, Astana), whose bonds are being traded under category "A" of the official listing presented KASE consolidated financial statements for 2001, audited by Ernst&Young (Almaty) in compliance with Kazakhstan standards of audit, made in accordance with Kazakhstan accounting standards. According to consolidated audited financial statements, the results of the company and its daughter enterprises (further- Group) economic activity by December 31, 2001 and 2000 are as follows (in th. KZT, unless otherwise indicated): ------------------------------------------------------ Indicator 2000 2001 ---------------------------- ----------- ----------- Authorized capital (issued) 971,382 971,382 Stockholders' Equity 62,535,921 79,690,356 Total assets 98,444,467 118,472,668 Working capital 4,802,946 7,282,397 Accounts receivable (net) 10,040,014 10,912,116 Total liabilities 35,908,546 38,782,312 Loans made (including bonds) 18,868,267 20,018,343 Bonds issued 2,175,000 3,098,496 Accounts payable 17,040,279 18,763,969 Revenues 122,713,396 148,763,543 Cost of services rendered 74,863,553 101,608,793 Net income (loss) 20,111,099 17,154,435 ------------------------------------------------------ According to the auditor's data it's calculated: ------------------------------------------------------ Return on sales (ROS), % 39.0 31.7 Return on equity (ROE), % 32.2 21.5 Return on assets (ROA), % 20.4 14.5 ------------------------------------------------------ It was noted by the auditor that during 2002 representative state bodies had maintained examination of Group's activity for the period from January 31, 1997 (date of beginning of activity) till December 31, 2001. It was noted by Ernst&Young that its auditors were not able to evaluate possible losses, if any, which might be revealed during the current investigation. According to the auditor's report, consolidated cash flows of the Group for 2000 was not formed and audited due to absence of sufficient information for its preparation using direct method because of incorporating in 1999 and 2000 of some daughter enterprises and branches of the company (which prior made the report using indirect method). Income statement of the Group for 2000-2001 contains not auditing information about corresponding articles of the budget (plan) of the Group for 2001 and deviation of actual results from budgeted ones. The auditor did not express its opinion on mentioned above information in its report. In the auditor's opinion, financial statements of the Group in all significant aspects provide reflection of consolidated assets, liabilities and stockholders' equity, consolidated income statement for two past years, consolidated cash flows statement for 2001, consolidated structure of revenues and expenses (including expenses of the period) for 2000 with an exception of influence of possible corrections, which could appear due to mentioned reservations, and also in cases of revealing of potential losses during examination by representative bodies. Principal activity - transport provision for economic and public needs with transportation of cargo and passengers; provision of external foreign- economic links of Kazakhstan; product export and import execution. [2002-07-09]