Auditor's report on financial statement of KRTH ZANGAR JSC (Kazakhstan) for 2004

/IRBIS, Galina Tsalyuk, June 20, 05/ - KRTH ZANGAR JSC (Almaty, hereinafter - company), whose securities are circulating in the official list of Kazakhstan stock exchange Inc. (KASE): shares - in "B" category, bonds - in "A" category, provided KASE with auditor's report made by Deloitte & Touche (Almaty) on the company's consolidated financial statement for 2004 prepared in compliance with international accounting standards (IAS). Result of the company's financial and economic activity as on December 31, 2004 according to audit statement is as follows (th. KZT, unless otherwise specified): ------------------------------------------------------------- as of as of Indicator Dec 31, 03 Dec 31, 04 ------------------------------------- ---------- ---------- Authorized capital (paid) 233,923 233,923 Total assets 5,359,162 3,350,183 Shareholders' equity 1,878,106 2,375,028 Net working capital -309,806 -279,540 Accounts receivable 3,486,337 1,562,856 Total liabilities 3,481,056 975,155 Borrowed loans 3,128,821 0 Accounts payable 150,613 717,518 Volume of sales 1,099,298 1,131,568 Prime cost of sales 225,006 299,282 Net income for the year 396,388 231,730 ------------------------------------- ---------- ---------- Calculated by audit statement's data: ------------------------------------- ---------- ---------- Return on sale (ROS), % 79.53 73.55 Return on equity (ROE), % 21.11 9.76 Return on assets (ROA), % 7.40 6.92 Net earning per 1 share (EPS), KZT 19.73 11.64* Balance cost of 1 share, KZT 80.29 101.53 ------------------------------------------------------------- * - calculated without dividends on privileged shares. Audit of the company's and subsidiary organizations' (hereinafter - Group) financial statement for the year 2004 was made by Deloitte & Touche in compliance with international auditing standards. Financial statement of the Group, which is made in compliance with Kazakhstan standards of accounting, was properly corrected with a view to bring it in compliance with ISA. Consolidated financial statement of the Group for 2003-2004 includes financial statement of KRTH ZANGAR JSC and its subsidiary organizations - Zangar Engineering LLP, Zangar Securities LLP, Zangar Services LLP (all - Almaty), established in 2002 with 100% stake of the company in their paid authorized capital. Primary type of subsidiary organizations' activity - technical servicing of the company. In their report Deloitte & Touche draws attention to note 14 to financial statement, according to which in March 2005 the Group recalculated rent for June-August 2004 to decrease its cost. As a result of recalculation of rent payment its income from main activity decreased by KZT122.1 m. Auditors of Deloitte & Touche did not have opportunity to check correctness of this recalculation. In the opinion of Deloitte & Touche, except corrections, necessity in which could be in connection with the above note 14, consolidated financial statement in all essential aspects correctly reflects Group's consolidated financial position as on December 31, 2004, and also results of its activity, cash flow and changes in shareholders equity for the period, ended on the above date, according to ISFR. Company's primary activities - rent of trade areas, organization of retail, wholesale and commission trade. [2005-06-20]