Auditor's report on financial statement of UKPF JSC (Kazakhstan) for year 2004

/IRBIS, Galina Tsalyuk, July 5, 05/ - Ust-Kamenogorsk Poultry farm JSC (UKPF JSC, Eastern Kazakhstan oblast, Molodezhnyi village, hereinafter - company), whose bonds are circulating in the official "A" listing category of Kazakhstan stock exchange (KASE), has presented to KASE auditor's report made by PricewaterhouseCoopers (Almaty) on the bank's financial statement for 2004, which was prepared in compliance with Kazakhstan accounting standards (KAS). Result of the bank's financial and economic activity in year 2004 is as follows, in accordance with audited statement (th. KZT, unless otherwise specified): ----------------------------------------------------------------- As of As of Indicator Dec 31, 03 Dec 31, 04 ----------------------------------------- ---------- ---------- Authorized capital (paid minus withdrawn) 273,227 242,730 Shareholders' equity 1,329,343 1,334,683 Total assets 1,972,379 2,199,696 Net working capital 185,235 344,262 Accounts receivable, net 80,024 210,598 Liabilities, total 643,036 865,013 Borrowed loans (excluding bonds) 292,611 151,907 Liabilities on bonds 143,061 466,974 Accounts payable 207,364 203,375 Volume of sales 1,749,137 1,960,806 Prime cost of sales 1,283,094 1,597,974 Net income for the year 222,053 89,648 ----------------------------------------- ---------- ---------- Calculated by audited statement: ----------------------------------------- ---------- ---------- Return on sales (ROS), % 26.64 18.50 Return on equity (ROE), % 16.70 6.72 Return on assets (ROA), % 11.26 4.08 ----------------------------------------------------------------- Audit of company's financial statement for 2004 was conducted by PricewaterhouseCoopers in compliance with Kazakhstan auditing standards. Auditor noted, that in company's accounting balance for 2004 assets include objects of social sphere for total amount KZT107.1 m., what in the opinion of auditor contradicts to preparation and submission of financial statements according to KSA, as these objects, being nonproductive, do not bring economic profit. Auditor considers, that due to this amount of company's undistributed profit as on December 31, 2004 is overstated for the mentioned amount. In the opinion of PricewaterhouseCoopers, except above, financial statement in all essential aspects for sure reflects the company's position as on December 31, 2004, results of its financial economic activity and cash flow for the year, ended by the mentioned date, in compliance with KAS. The company's primary activities - raising and growing of hens "broiler", processing, packing and sale of hen's meat and derivative production, conducting of activity, which accompanies to the primary one (for example, public utilities for population and organizations). [2005-07-05]