Auditor's report on financial statement of DAGOK Kustanaiasbest OJSC (Kazakhstan) for 2001

/KASE, November 12, 02/ - DAGOK Kustanaiasbest OJSC (Zhetikara, Kostanaiasbest), whose bonds are circulating under stock exchange's official "А" listing category, presented KASE auditor's report, which had been made by PriceWaterhouseCoopers (Almaty) on the company's consolidated financial statement for 2001, which had been prepared in compliance with Kazakhstan accounting standards. According to the auditor's data the following indicators are the results of the company's consolidated financial and economic activity as of December 31 of 2001 (in th. KZT, unless otherwise specified): -------------------------------------------------------------------- Indicator 2000* 2001 ---------------------------------------------- --------- --------- Issued authorized capital (paid) 460,000 460,000 Shareholders' equity 1,139,320 687,782 Total assets 4,327,649 4,678,496 Net working capital -38,300 297,995 Accounts receivable (net) 1,806,156 907,196 Liabilities, total 3,138,271 3,940,628 Attracted credits 939,821 683,492 Accounts payable 2,198,450 2,363,717 Issued bonds - 893 419 Volume of goods sold (services rendered) 2,858,150 3,171,790 Cost of goods sold (services) 1,953,779 2,602,072 Net income (loss) 367,465 (449,992) ---------------------------------------------- --------- --------- It's been calculated on the audited statement: ---------------------------------------------- --------- --------- Return on sales (ROS), % 31.64 17.96 Return on equity (ROE), % 32.25 - Return on assets (ROA), % 8.49 - -------------------------------------------------------------------- * - audited by KPMG Janat (Almaty) Auditing of the consolidated financial statement was made by PriceWaterhouseCoopers in compliance with Kazakhstan auditing standards. According to note 3 of the auditor's report the financial statement of DAGOK Kustanaiasbest OJSC comprises a daughter company's financial statement, the name of which was not shown (according to auditor's report of KPMG Janat for 2000 KAG Asset was the daughter company of DAGOK Kustanaiasbest OJSC, in which the company had market share 90%, which is equal to KZT450.0 m, - note of KASE). It was noted in the auditor's report that a certain part of the company's fixed assets, which had been originally reflected in on initial cost, afterwards (since January 1 of 1993 till January 1 of 1997) was periodically revaluated in accordance with special coefficient on revaluation, which were set by the State statistics committee of the Republic of Kazakhstan. In the auditor's opinion, cost of fixed assets, which was calculated by such the revaluation, does not correspond to the requirements of Kazakhstan accounting standards 6 "fixed assets accounting" KAS, according to which fixed assets are to be reflected either on initial cost or on current cost excluding accumulated depreciation. Difference between cost of fixed assets, which are reflected in these financial reports, and the cost, which are required by KAS 6, can not be exactly determined and may be significant. In auditors' opinion of PriceWaterhouseCoopers, excluding influence of corrections, which may appear concerning methods of evaluation, which is used for determining book value of a part of fixed assets, the presented financial statement in all significant aspects for sure reflects financial situation of DAGOK Kustanaiasbest OJSC as of December 31 of 2001, and results of financial and economic activity and cash flow for the year, which had ended by the mentioned date, in compliance with Kazakhstan accounting standards. The company's primary activities: extraction and concentrating of chrysotile- asbestos and production on this base of commercial asbestos and accompanying building materials. [2002-11-12]