Auditor's report on financial statement of Kazakhstan Mortgage Company CJSC (Kazakhstan) for 2004

/IRBIS, Galina Tsalyuk, March 19, 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 KPMG Janat (Almaty) (2003 fiscal year was audited by Ernst & Young), which was made on the company's financial statement for 2004 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 Dec 31, 03 Dec 31, 04 --------------------------------------- ---------- ---------- AUTHORIZED CAPITAL (PAID) 2,500,000 2,500,000 Shareholders' equity 2,759,480 3,113,285 Total assets 10,068,411 29,392,970 Sum of liquid assets 1,858,810 3,023,094 Loans to clients 8,178,255 26,298,757 Loan to financial institution 7,308,931 26,279,685 Liabilities, total 7,269,364 26,216,954 Issued bonds 251,876 598,406 Total revenues 8,503 8,815 Total expenses 117,602 253,416 Net income 142,777 353,805 --------------------------------------- ---------- ---------- Calculated according to auditor's data: --------------------------------------- ---------- ---------- Return on equity (ROE), % 5.17 11.36 Return on assets (ROA), % 1.42 1.20 --------------------------------------------------------------- Audit of financial statement of Kazakhstan Mortgage Company CJSC for 2004, was conducted by KPMG Janat 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). [2005-03-19]