Auditor's report on financial statement of Rakhat OJSC (Kazakhstan) for year 2003

/IRBIS, Galina Tsalyuk, June 22, 05/ - Rakhat OJSC (Almaty), whose common shares are circulating in Kazakhstan stock exchange's (KASE) official "B" listing category, has presented to KASE auditor's report of BDO Kazakhstanaudit LLP (Almaty) made on company's consolidated financial statement for year 2003 prepared in compliance with Kazakhstan accounting standards (KAS). According to audited data consolidated result of company's financial and economic activity as of December 31 of 2003 is as follows (th. KZT, unless otherwise specified): --------------------------------------------------------------- as of as of Indicator Dec 31, 02* Dec 31, 03 -------------------------------------- ----------- ---------- Authorized capital (paid) 600,000 900,000 Shareholders' equity 1,725,004 2,486,367 Assets, total 2,853,850 4,198,676 Net working capital 679,948 962,372 Accounts receivable 551,939 416,101 Liabilities, total 1,128,846 1,712,257 Borrowed loans 633,032 964,656 Accounts payable 495,814 697,923 Sales volume 6,434,036 7,536,454 Cost of goods sold 5,375,576 6,072,904 Net income of the period 283,124 477,787 -------------------------------------- ----------- ---------- Calculated by audited data: -------------------------------------- ----------- ---------- Return on sales (ROS), % 16.45 19.42 Return on equity (ROE), % 16.41 19.22 Return on assets (ROA), % 9.92 11.38 Book value of 1 share, KZT 718.75 690.66 Earnings per 1 common share (EPS), KZT 117.97 132.72 --------------------------------------------------------------- * - non-audited comparative data from auditor's report for year 2003. Price earning ratio (P/E) was not calculated because all deals made in company's shares in 2003-2004, are direct, which can not be considered as market ones. Audit of company's financial statement for year 2004 was performed by BDO Kazakhstanaudit LLP in compliance with international auditing standards. Report of BDO Kazakhstanaudit LLP says this auditor did not audit company's consolidated financial statement for year 2002 and is unable to confirm incoming balance on company's consolidated financial statement for year 2003, which could be corrected in case of making audit for year 2002. In auditor's opinion, excluding influence of corrections, necessity in which might appear because of above-mentioned things, the consolidated financial statement in all essential aspects for sure reflects company's financial condition as of December 31 of 2003, results of its financial and economic activity and cash flow and changes in equity capital for the period, which ended by the mentioned date, in compliance with KAS. Company's primary activities - production and sale of confectionery and other foodstuffs. [2005-06-22]