Auditor's report on financial statements of Kazakhtelecom JSC (Kazakhstan) for 2003

/IRBIS, Galina Tsalyuk, May 12, 04/ - Kazakhtelecom JSC (Astana), whose securities are circulating in Kazakhstan stock exchange's (KASE) "А" listing category, has presented KASE auditor's report prepared by Deloitte (Almaty) on the company's financial statements for 2002 reported in compliance with Kazakhstan Accounting Standards (KAS). Following describes company's results and financial position for the period that ended December 31, 2002 and 2003 (in KZT th. unless otherwise stated). -------------------------------------------------------------------------- Indicator 2002 2003 ------------------------------------------------- ---------- ----------- Authorized capital (paid minus withdrawn) 9,483,669 9,483,669 Shareholders' equity 48,495,945 62,962,214 Total assets 87,023,032 106,789,175 Net working capital -7,103,258 2,304,477 Accounts receivable (net) 11,715,567 14,431,976 Liabilities, total 38,527,087 43,826,961 Borrowed loans (excl bonds) 22,435,579 25,345,120 Floated bonds 3,896,250 3,605,500 Accounts payable 9,231,146 9,720,846 Service fees 56,804,354 65,880,642 Cost of rendered services 33,276,064 37,940,746 Net profit 12,147,203 17,827,279 ------------------------------------------------- ---------- ----------- It's been calculated according to auditor's data: ------------------------------------------------- ---------- ----------- Return on sales (ROS), % 41.42 42.41 Return on equity (ROE), % 25.05 28.31 Return on assets (ROA), % 13.96 16.69 Book value of one share, KZT 4,281.80 5,559.05 Earnings per share (EPS), KZT 1,101.01 1,621.03 Price earnings ratio (Р/Е) 2.78 2.20 -------------------------------------------------------------------------- Audit was preformed by Deloitte in compliance with International and Kazakhstan Standards on Auditing. The company has no significant in regards to financial statements daughter enterprises in which it maintained controlling stake. Long-term investments where Kazakhtelecom's stake exceeded 20% (GSM Kazakhstan LLP, Almaty, 49.0% of paid in chartered capital, Altel JSC, 50.0% of voting shares, Nursat CJSC 41.25% of voting shares) were accounted for by equity mehod. In the auditor's opinion the financial statements exactly in all essential aspects reflect financial position of Kazakhtelecom as of December 31 of 2003, results of its of financial and economic activity and cash flow for the year, which ended by the same mentioned date, in compliance with KAS. Company's primary activities - telephone, telegraph, TV and radio communication of all types. [2004-05-12]