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

/IRBIS, Galina, Tsalyuk, August 4, 05/ - KazTransOil JSC (Astana), whose bonds are circulating in Kazakhstan stock exchange's (KASE) official "A" listing category, has presented to KASE the auditor's report made by Ernst & Young (Almaty) made on the company's consolidated financial statement for year 2004, which was made in compliance with Kazakhstan accounting standards (KAS). According to audited statement the result of the company's financial and economic activity as of December 31 of 2003 and 2004 is as follows (th. KZT, unless otherwise indicated): -------------------------------------------------------------------- as of as of Indicator Dec 31, 03 Dec 31, 04 ------------------------------------------ ----------- ----------- Authorized capital (paid) 32,884,575 32,916,055 Shareholders' equity 146,980,740 174,496,390 Total assets 204,756,747 261,016,352 Net working capital 41,640,036 65,590,775 Accounts receivable (net) 5,936,515 8,733,968 Total liabilities 57,776,007 86,519,962 Borrowed loans (excluding bonds) 17,022,004 15,889,819 Accounts payable 15,132,341 20,633,605 Bonds issued 21,633,000 39,000,000 Incomes from sales 59,863,942 63,773,638 Cost of goods sold 33,545,369 36,227,682 Net income of the year 10,266,773 7,810,402 ------------------------------------------ ----------- ----------- Calculated according to audited statement: ------------------------------------------ ----------- ----------- Return on sales (ROS), % 43.96 43.19 Return on equity (ROE), % 6.99 4.48 Return on assets (ROA), % 5.01 2.99 -------------------------------------------------------------------- Audit of the company's consolidated financial statement was made by Ernst & Young in compliance with Kazakhstan auditing standards. The consolidated financial statement for year 2004 comprises financial statements of KazTransOil JSC and its subsidiaries - KTO Service JSC (the company owns 100% of shares), North-West pipeline company MunayTas CJSC (51.0%) and Kazakhstan-Chinese pipeline LLP (50% in the paid authorized capital), which, in its turn, is the only owner of KCP Finance B.V., registered in Netherlands with the purpose of bonds issue. The consolidated financial statement for year 2003 comprises financial statement of the company and KTO Service JSC. In the auditor's opinion, the consolidated financial statement in all essential aspects represents the impartial and objective picture about the company's consolidated financial condition as of December 31 of 2004, consolidated revenues and expenditures and cash flow for the year, which ended by this date, in compliance with KAS. Company's primary activities: rendering services on oil transportation, including oil transportation by pipeline, sea and railway traffic, and services on transportation of products of oil refining and water through the system of own pipelines, services on unload and load of oil products. [2005-08-04]