Auditor's report on financial statement of TNC Kazchrome JSC for 2004

/IRBIS, Galina Tsalyuk, September 2, 05/ - TNC Kazchrome JSC (Aktobe, hereinafter - company), whose shares are circulating in Kazakhstan stock exchange's (KASE) official "B" listing category, has presented to KASE auditor's report of Global Audit LLP (Almaty) made on the company's consolidated financial statement for 2004, which was prepared in compliance with Kazakhstan accounting standards (KAS). According to auditor's data result of the company's financial and economic activity for 2004 is as follows (th. KZT, unless otherwise indicated): ------------------------------------------------------ as of as of Indicator Dec 31, 03 Dec 31, 04 ------------------------------- ---------- ----------- Authorized capital (paid) 7,903,485 7,903,485 Shareholders' equity 46,626,065 79,949,454 Total assets 56,619,634 91,147,489 Net working capital 15,344,929 40,350,744 Accounts receivable 7,431,944 25,125,185 Total liabilities 9,975,173 11,176,060 Accounts payable 6,784,182 8,488,186 Borrowed loans 1,078,387 110,598 Sales volume 76,034,264 128,666,729 Cost of goods sold 38,665,510 56,995,217 Net income for the year 12,599,244 34,061,611 ------------------------------- ---------- ----------- Calculated by audited data: ------------------------------- ---------- ----------- Return on sales (ROS), % 49.15 55.70 Return on equity (ROE), % 27.02 42.60 Return on assets (ROA), % 22.25 37.37 Earnings per 1 share (EPS), KZT 1,752.17 4,583.50 Book value of 1 share, KZT 5,899.43 10,115.72 ------------------------------------------------------ Price earnings ratio (P/E) was not calculated due to absence of market price of the company's common shares by the mentioned dates. Audit of the company's consolidated financial statement and its subsidiary organizations (hereinafter - Group) for 2004 was made by Global Audit LLP in compliance with Kazakhstan auditing standards. Consolidated financial statement of the Group includes financial statement of the company and its three subsidiary organizations - Molservice AZF JSC (Northern-Kazakhstan obl., Kyzylzharski region, village Bishkul), Aksuisk Company Akbulak LLP (Pavlodar obl., Aksu), where the company is the only owner, and Donskaya tank farm (Aktubinsk obl., Khromtau), where the company is 68% owner from total number of floated shares. In the opinion of Global Audit LLP consolidated financial statement in all essential aspects represents authentic and objective picture of the Group's financial position as on December 31, 2004, results of financial and economic activity, cash flow and changes in equity capital for 2004 in compliance with KAS. Company's primary activities - production of ferrous metals, extraction and concentration of ores for ferrous metallurgy. [2005-09-02]