Auditor's report on financial statement of CNPC - AI DAN MUNAI JSC (Kazakhstan) for 2004

/IRBIS, February 24, 06/ - CNPC - AI DAN MUNAI JSC (Kyzylorda, hereinafter - company), whose common shares are circulating in Kazakhstan stock exchange's (KASE) official "B" listing category, has presented to KASE auditor's report compiled by PricewaterhouseCoopers (Almaty) on the company's consolidated financial statement for 2004, which was made in compliance with international financial reporting standards (IFRS). According to audited data, result of the company's financial and economic activity as of December 31 2003-2004 is as follows (th. KZT, unless otherwise specified): ------------------------------------------------------------ as of as of Indicator Dec 31, 03 Dec 31, 04 ------------------------------------ ---------- ---------- Authorized capital (paid-up) 43,600 43,600 Shareholders' equity 1,544,347 2,904,475 Total assets 5,787,849 8,236,880 Net circulating assets -1,089,684 763,404 Accounts receivable 103,961 685,721 Liabilities, total 4,243,502 5,332,405 Borrowed loans 4,027,508 5,172,978 Accounts payable 182,709 99,709 Sales volume 1,979,580 4,982,995 Cost of goods sold 546,579 878,457 Net income of the year 238,460 1,360,128 ------------------------------------ ---------- ---------- Calculated by audited data: ------------------------------------ ---------- ---------- Return on sales (ROS), % 72.39 82.37 Return on equity (ROE), % 15.44 46.83 Return on assets (ROA), % 4.12 16.51 Net earnings per 1 shares (EPS), KZT 5,469.27 31,195.60 Balance cost of 1 shares, KZT 35,420.80 66,616.40 ------------------------------------------------------------ Price earnings ratio (P/E) was not calculated in connection with absence of trades on the company's shares. Audit of the company's consolidated financial statement and its subsidiary organizations (hereinafter - Group) was made by PricewaterhouseCoopers in compliance with international auditing standards. Consolidated financial statement of the Group for 2004 includes financial statement of the company and its subsidiary organizations, which are not disclosed in audit report. In the report auditor draws attention that he was not present in inventory of the company's holdings, reflected in its balance as of December 31, 2004 in the amount KZT155.1 m., and could not make sure in their number by the other audit procedures, and also the following moments, which in the opinion of auditor could entail correction of the company's financial statement for the year, ended December 31, 2004: 0. absence of corresponding information about oil and gas reserves of the company; 1. absence of independent evaluation of fair value of exploitation wells of the company; 2. absence of evaluation of amount of reserves on dismantling of oil and gas production assets and renewal of sites. In the opinion of PricewaterhouseCoopers excluding influence of corrections, necessity in which could rise in connection with the above, consolidated financial statement in all significant aspects objectively reflects the Group's financial position as of December 31, 2004, and also results of its activity and cash flow for the year, ended by the mentioned date in compliance with IFRS. The company's primary activities - maintenance of oil and gas operations on the territory of the Republic of Kazakhstan, including exploration and drilling, production, preparation and processing, transportation and storage, marketing and trade, export of hydrocarbons and products of their processing. [2006-02-24]