Auditor's report on financial statement of Kazakhstan Mortgage Company CJSC (Kazakhstan) for 2003

/IRBIS, Galina Tsalyuk, March 29, 04/ - Kazakhstan Mortgage Company CJSC (Almaty), whose bonds are circulating in the official "А" listing category of Kazakhstan stock exchange Inc. (KASE), has presented KASE auditor's report made by Ernst & Young (Almaty), which was made on the company's financial statement for 2003 prepared in compliance with International accounting standards (IAS). Result of the company's financial and economic activity as of December 31 of 2003 is as follows, in accordance with the auditor's data (th. KZT, unless otherwise specified): -------------------------------------------------------------- Indicator 2002 2003 --------------------------------------- --------- ---------- Authorized capital (paid) 1,500,000 2,500,000 Shareholders' equity 1,616,703 2,759,480 Total assets 2,134,840 10,068,411 Sum of liquid assets 987,864 1,858,810 Loans to clients 1,025,562 8,178,255 Loan to financial institution 100,975 - Liabilities, total 518,137 7,308,931 Issued bonds 510,572 7,269,364 Total revenues 163,012 423,212 Total expenses 96,309 280,435 Net income 66,703 142,777 --------------------------------------- --------- ---------- Calculated according to auditor's data: --------------------------------------- --------- ---------- Return on equity (ROE), % 4.13 5.17 Return on assets (ROA), % 3.12 1.42 -------------------------------------------------------------- Audit of financial statement of Kazakhstan Mortgage Company CJSC, which was made in compliance with IAS, was conducted by Ernst & Young in compliance with International auditing standards. In the auditor's opinion the financial statement exactly in all essential aspects reflects the company's financial condition as of December 31 of 2003, and also results of its financial and economic activity and cash flow for the year, which ended by the mentioned date, in compliance with IAS. Company's primary activities - loan operations (giving credits in monetary form on the terms of paying off, urgency and giving back), factoring operations (purchasing of rights of payment requirement from consumer of goods (works, services) with assumption of the risk of non-payment). [2004-03-29]