The Results of Financial Activity

The balance profit of the company for 2000 was about 481 mln Rbl., payments to the budget in the form of profit taxes were 133 mln Rbl., net profit which remained at the disposal of the Company - 307 mln Rbl. Currency on the balance amounted to 5005 mln Rbl. to $1,6 bln. Net assets somewhat raised against the 1999 level and totaled 2217,3. According to the results of 2000 the Company's profitability was 82,4%. The cash liquidity ratio at the end of the year was 1,3, indicating that the Company had enough cash to settle all its short-term liabilities. Internal funds availability ratio was 0,44, which is indicative of the Company's stable financial situation.

Moscow Bank, Surgutneftegazbank were main banks Nafta Moskva did business with in 2000.The account-based turnover of the Company last year amounted to 2 bln USD.

Business meetings with Sberbank and Vneshtorgbankbank and with Moscow branches of the largest Western banks are being held in order to provide investments for the Company. Besides Nafta Moskva's affiliates have credit lines totaling to 100 mln USD in the first class European banks to back the Company's operations.

In 2000 Arthur Andersen became an international auditor for the Company. A GAAP i balance reflecting the activity of Nafta Moskva in years 1998 and 1999 was made as well as a consolidated financial report.

Starting from September 2000 in order to understand financial results of different programs financial reports are monthly prepared, then a consolidated report is made which covers the activities of all the companies constituting the Nafta Moskva group. And the final product is a consolidated report for the whole group of companies Nafta Moskva.

A unified system of planning and accounting which includes business planning of funds' flow and revenues, budgeting of administrative expenditures and capital investments is applied in the Company.

The existing system allows to increase controllability of the Company and responsibility of the management for business results, provides the executives with unbiased information to make proper decisions. The reports prepared by Nafta Moskva on its own is checked and documented by Arthur Andersen. Thanks to the planning system the cost of GAAP audit is lowered.

In 2001 it is planned to switch to the parallel double currency automatic accounting by Russian and GAAP standards.