Auditor's report on financial statement of KazTransOil JSC (Kazakhstan) for 2003

/IRBIS, Galina, Tsalyuk, July 1, 04/ - KazTransOil JSC (Astana) has presented to KASE the auditor's report made by Ernst & Young (Almaty) on the company's consolidated financial statement for 2003, which was made in compliance with Kazakhstan accounting standards (KAS). According to audited financial statement's data the result of the company's financial and economic activity as of December 31 of 2003 is as follows (th. KZT, unless otherwise indicated): ---------------------------------------------------------- Indicator 2002 2003 -------------------------------- ----------- ----------- Authorized capital (paid) 32,884,575 32,884,575 Shareholders' equity 138,731,637 146,190,935 Total assets 183,482,412 188,665,966 Net working capital 51,732,764 41,351,322 Accounts receivable (net) 13,149,272 10,083,030 Total liabilities 44,750,775 42,475,031 Borrowed loans (excluding bonds) 3,216,658 2,129,574 Accounts payable 9,856,496 14,468,102 Bonds issued 28,008,000 21,633,000 Income from sales 54,168,714 58,424,521 Cost of goods sold 28,955,088 33,328,722 Net income 13,737,595 9,303,647 ---------------------------------------------------------- Calculated According to audited statement: ---------------------------------------------------------- Return on sales (ROS), % 46.55 42.95 Return on equity (ROE), % 9.90 6.36 Return on assets (ROA), % 7.49 4.93 ---------------------------------------------------------- Audit of the company's financial statement was made by Ernst & Young in compliance with Kazakhstan auditing standards. The financial statement for the year 2003 comprises financial statements of KazTransOil JSC and belonging to it by 100% subsidiary company KTO Service CJSC, which was founded by KazTransOil JSC in 2003. In the auditor's opinion, the consolidated financial statement represents the impartial and objective picture about the company's consolidated financial condition as of December 31 of 2003, consolidated revenues and expenditures and cash flow for the year, which ended by this date, in compliance with KAS. Company's primary activities: rendering services on oil transportation, including oil transportation by pipeline, sea and railway traffic, and services on transportation of products of oil refining and water through the system of own pipelines, services on unload and load of oil products. [2004-07-01]