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

/IRBIS, Galina Tsalyuk, August 16, 05/ - Rakhat JSC (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 2004 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 2004 is as follows (th. KZT, unless otherwise specified): -------------------------------------------------------------- as of as of Indicator Dec 31, 03 Dec 31, 04 -------------------------------------- ---------- ---------- Authorized capital (paid) 900,000 900,000 Shareholders' equity 2,486,367 3,043,386 Total assets 4,198,676 4,415,163 Net working capital 962,372 1,251,136 Accounts receivable 416,101 637,209 Liabilities, total 1,712,257 1,371,777 Borrowed loans 964,656 1,030,795 Accounts payable 697,923 254,586 Sales volume 7,536,454 8,895,290 Cost of goods sold 6,072,904 6,882,119 Net income for the year 477,787 545,283 -------------------------------------- ---------- ---------- Calculated by audited data: -------------------------------------- ---------- ---------- Return on sales (ROS), % 19.42 22.63 Return on equity (ROE), % 19.22 17.92 Return on assets (ROA), % 11.38 12.35 Book value of 1 share, KZT 690.66 845.39 Earnings per 1 common share (EPS), KZT 132.72 151.47 -------------------------------------------------------------- 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. The company has 11 subsidiaries situated in various regions of Kazakhstan (Rakhat-Aktau LLP, Rakhat-Aktobe LLP, Rakhat-Astana LLP, Rakhat- Karaganda LLP, Rakhat-Kostanay LLP, Rakhat-Oral LLP, Rakhat- Taldykorgan LLP, Rakhat-Shymkent LLP, TH Rakhat-Shymkent LLP, Rakhat- K LLP, Rakhat-TR LLP), and one subsidiary in Kyrgyzstan - Almatinskiye konfety (Bishkek). Primary activities of 10 subsidiaries are sale of confectonery produced by the company, Rakhat-K LLP - hotel services and rent of building, Rakhat-TR LLP - transportation services. The company is the only owner of its 11 subsidiaries, the company's stake in the paid authorized capital of Rakhat-TR LLP is 99.9%. In auditor's opinion the consolidated financial statement in all essential aspects for sure reflects the company's financial condition as of December 31 of 2004, results of its financial and economic activity and cash flow and changes in equity capital for the year, which ended by the mentioned date, in compliance with KAS. Company's primary activities - production and sale of confectionery and other foodstuffs. [2005-08-16]