Auditor's report on consolidated financial statement of RG Brands JSC (Kazakhstan) for year 2004

/IRBIS, Galina Tsalyuk, May 17, 04/ - RG Brands JSC (Almaty), whose bonds are circulating in Kazakhstan stock exchange's (KASE) official "А" listing category, has presented to KASE auditor's report of Deloitte & Touche (Almaty) on company's consolidated financial statement for year 2004 prepared in compliance with international accounting standards (IAS). According to audited data consolidated result of company's financial and economic activity as of December 31 of 2004 is as follows (th. KZT, unless otherwise specified): ------------------------------------------------------------ as of as of Indicator Dec 31, 03 Dec 31, 04 ------------------------------------ ---------- ---------- Authorized capital (paid) 1,478,023 1,800,000 Shareholders' equity 1,903,924 3,096,515 Assets, total 6,839,024 10,377,127 Net working capital 3,110,283 3,752,398 Accounts receivable, total 3,826,645 4,975,395 Liabilities, total 4,935,100 7,280,574 Borrowed loans (excluding bonds) 925,057 870,414 Liabilities on bonds 2,340,430 2,247,786 Long-term rent liabilities (leasing) 231,820 714,986 Accounts payable 1,329,058 3,334,785 Sales volume 3,945,145 10,713,306 Cost of goods sold 3,133,327 7,569,591 Net income 208,411 991,896 ------------------------------------ ---------- ---------- Calculated by audited statement: ------------------------------------ ---------- ---------- Return on sales (ROS), % 20.58 29.34 Return on equity (ROE), % 10.95 32.03 Return on assets (ROA), % 3.05 9.56 ------------------------------------------------------------ Audit of consolidated financial statement of the company and its subsidiary companies (hereinafter-Group) was performed by Deloitte in compliance with international auditing standards. The Group accounted for activities in compliance with Kazakhstan accounting standards (IAS). Group's financial statement made in compliance with KAS was correspondingly corrected in order to make it conforming to IAS. The group's consolidated financial statement for 2004 comprises financial statements of RG Brands OJSC and its daughter companies: PRG Bottlers JSC (Almaty, production and bottling of nonalcoholic gas drinks, company owns 100% of total number of offered shares), Tealand LLP (Almaty, packing and sale of tea, company owns 100% stake in the paid authorized capital), Kosmis LLP (Kostanay, milk production, 100%), Uni Commerce Ltd LLP (Almaty, trade, 99.9%), Express Trading Ltd (Bishkek, 99.9%). In the auditor's opinion consolidated financial reports in all essential aspects for sure reflect financial position of RG Brands OJSC and its daughter companies as of December 31 of 2004, results of their financial and economic activity and cash flow for the year, which ended by that date, in compliance with IAS. Company's primary activities - production and sale of natural juices and drinks, rendering of marketing services. [2005-05-17]