Annual Report • Apr 27, 2012
Annual Report
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| 6. Address book…………………………………………………………………130 | |
|---|---|
| income………………………………………………………………………………………………………………… | 129 |
| statements128 5. Decision proposal About usage of Net |
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| 4. Decision proposal about acceptance of Annual financial |
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| p) Notes to the unconsolidated financial statements ………………………81 | |
| o) Unconsolidated Cash Flow report ………………………………80 | |
| n) Unconsolidated Report on changes of capital 78 | |
| m) Unconsolidated Balance sheet……………76 | |
| l) Unconsolidated Profit and loss account ……………………75 | |
| k) Independent Auditor's report………73 | |
| j) Responsibility for the financial statements …………………………………72 | |
| ………………………71 | |
| i) AD Plastik d.d unconsolidated financial statement and independent Auditor's report | |
| h) Notes to the consolidated financial statements………………………………28 | |
| g) Consolidated Cash Flow report……27 | |
| f) Consolidated Report on Changes of capital…………26 | |
| e) Consolidated Balance sheet ………………….………23 | |
| d) Consolidated Profit and loss account……………………22 | |
| c) Independent Auditor's report21 | |
| report …………………………………19 b) Responsibility for the financial statements……………………….…20 |
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| a) AD Plastik d.d and its subsidiaries consolidated financial statement and independent Auditor's | |
| 3. Financial report……………………………………………………18 | |
| d) Environmental protection………………………………………………………17 | |
| c) Employees………………………………………………………………16 | |
| b) Market and expected development of the company……………13 | |
| a) Business overview in 2011 and key indicators …………………8 | |
| 2. Events during 2011 and business overview …………8 | |
| g) Declaration on the implementation of corporate governance code 6 | |
| f) Information for investors…………………………………………5 | |
| e) Information about realization of ESOP program ……………4 | |
| d) Management………………………………………………………………4 | |
| c) Ownership structure ……………………………………………3 | |
| b) Foundation and development of AD Plastik, subsidiaries and associated companies 3 | |
| a) Address to shareholders: MR. Josip Boban, president of the board AD Plastik Inc. ………2 | |
| 1. General report…………………………………………………………2 |
business in the 2011 for AD Plastik Group meant a continuation of successful business, because we retained market position and created conditions for further growth. During 2011, we continued activities related to the growth of sales on foreign markets, which resulted in sales increase on existing locations and foundation of new subsidiaries in Serbia and Russia.
For production in Croatia the most significant was a new project Edison, which is being developed by Renault and Daimler Chrysler. AD Plastik is nominated for exterior and interior positions, and the project is significant because it means long-term stability position for AD Plastik in the region and increase of the customer base (Daimler Chrysler). Start of production is planned for late 2013 and the plan is to increase capacity for more than 30% compared to the current production.
Intensive activities in the Russian market have accelerated our decision on establishment of a new plant in Kaluga, and our previous subsidiary ADP Luga was renamed in AD Plastik Kaluga. With this plant, investment cycle for expansion of production is completed in the Russian market and now we have full coverage of the market with production on three locations – in Samaran, Sankt Petersburg and Moscow-Kaluga area. Start of production at the new location in Kaluga is planned for May 2012, in production technology for isolation, and will be extended to the technologies of thermal forming and injection molding. Kaluga plant is important because near the plant car manufacturers Renault, PSA, Volkswagen, Mitsubitshi are located which ensures stabile development of this location.
Our company in Togliatti implemented number of new projects, and in final stage is the project for a new Nissan vehicle in Russia. With this project AD Plastik for first time enters into supplier panel for this customer. During 2011 our plant in Luga implemented a large number of new projects for customers Ford, Avtoframos, Hyundai and Nissan, what created preconditions for production increase in this year.
In accordance with the strategic objectives and business plans, in the last quarter of 2011 we founded a new company in Mladenovac, the Republic of Serbia. AD Plastik has entered into an agreement with the new customer Fiat, for production of plastic parts for a new car. This creates new opportunities for production increase in Serbia, but also for production on other Fiat locations. As well, we are planning to expand production for other customers in this region. By purchasing this plant we are resolving supply issue of raw materials for carpets manufacturing for the Russian market.
In Romania our joint venture continued with stable growth of production and delivery, and the company in Slovenia also had a stable business.
Activities of optimization are delivering constant savings in managing costs, and improving profitability, which is evident in the continuous increase of the results of the Group.
In 2011 AD Plastik Group realized kuna 64.7 million in net profit, and we confirmed the fact that AD Plastik is a stable company. Considering new business agreements with customers we expect a positive trend to be continued in the future.
Among business events from the previous year it is important to notice a change in the ownership structure from mid-2011. Shares that were in the ownership of Prevent were sold on public auction at the Zagreb Stock Exchange, and funds, legal entities and natural persons have become the new shareholders. Also we implemented the ESOP project in which the employees and management bought a new pack of 166.200 shares and increased their participation in ownership to 18 %. We believe that current ownership structure will ensure the continuation of the planned strategy.
In the future, we shall continue to work with full engagement by all our employees, on implementation of Groups strategic development plans, with the intent to justify the confidence of existing shareholders.
The share capital of the parent company AD Plastik Inc. amounts kuna 419.958.400, and is divided into 4.199.584 shares with a nominal value of kuna 100.00.
Shareholders are legal and natural persons from Croatia and abroad, who exercise their rights through the General Assembly and the Supervisory Board in accordance with laws of the Republic of Croatia.
Ownership structure of AD Plastik Group on December 31st, 2011
In June 2011, block of shares in the ownership of Prevent was sold. Funds, legal entities and natural have become new shareholders.
In accordance with the Companies Act and the Statute of the Company, Company's management structure is consisted of the Supervisory Board and the Management Board. These are two separate bodies, and no one can be a member of both Boards.
The Company"s Management Board has five members who are responsible for specific areas of business. They meet at least twice a month and reach management decisions.
The Management Board got mandate from October 01st, 2011. In February 2012 Board member Nenad Marković resigned for personal reasons.
| President of the Board |
|---|
| Member |
| Member |
| Member |
| Member |
| Nikola Zovko | President of the Supervisory Board |
|---|---|
| Marijo Grgurinović | Vice-president of the Supervisory Board |
| Ivka Bogdan | Member |
| Dimitrij Leonidovič Drandin | Member |
| Tomislav Dulić | Member |
| Nadezhda Anatolyevna Nikitina | Member |
| Igor Anatoljevič Solomatin | Member |
Company"s meeting of shareholders is acting in accordance with the Companies Act of the Republic of Croatia and with the Statute.
During 2011 company disposed with own shares. On December 31st, 2011 company had 3.743 own shares, which makes 0,0891% of the total number of company shares.
In November 2011 we implemented a new ESOP program, by which management and employees, including shares previously acquired, raised its ownership stake in the company on approximately 18 % of shares.
With new ESOP program, the employees bought shares at a price of kuna 120.00, with the repayment period of 5-10 years, with fixed interest rate of 6% per year. In ESOP program total of 143 employees participated and they bought 166.200 shares of ADPL-R-A. The lock up period for these shares is 5-10 years, depending on individual employers contract. At the acquisition date, on November 03rd, 2011, closing stock price ADPL-R-A on the Zagreb Stock Exchange amounted kuna 102.56.
AD Plastik Inc. issued a total of 4.199.584 ordinary shares to the name, each with a nominal value of kuna 100.00. The shares are listed on the official market on the Zagreb Stock Exchange. Mark of the stock is ADPL-R-A, and ISIN: HRADPLRA0006. In 2011 the share price movement is shown in the following picture:
Title: ADPL-R-A stock chart from January 01st, 2011 to February 29th, 2012.
Source: ZSE
Total ADPL-R-A stock turnover on Zagreb stock exchange in 2011 amounted kuna 134.818.736,00, which represents growth of 241,71% from turnover in 2010, when total turnover with ADPL-R-A stock amounted kuna 39.454.152,80.
In 2011 the company paid dividend to the amount of kuna 7.5 per share.
Announcement of results for the first quarter of 2012 (Consolidated report): 30.04.2012. General Assembly of AD Plastik Inc. will take place (orientation): 19.07.2012. Announcement of results for first six months in 2012 (Consolidated report): 31.07.2012. Announcement of results for first nine months in 2012 (Consolidated report): 31.10.2012. Announcement of results for the last quarter of 2012: 15.02.2013. Note: these data are subject to change.
Stjepan Laća, Corporate communications manager, phone: 021/206-401, fax: 021/275-401, e-mail: [email protected]
Ad Plastik Inc. Solin (hereinafter: Company) apply the Code of Corporate Governance, which was written by the Croatian Agency for Supervision of Financial Services (hereinafter referred to as: Hanfa) and the Zagreb Stock Exchange Inc. Zagreb, and was adopted by the decision of Hanfa on April 26th, 2008 and published in the Official Gazette of the Republic of Croatia no. 46/07, as well as on the website of the Zagreb Stock Exchange (hereinafter referred to as: Code).
In 2010 the Company complied with the provisions of the Code, with certain exceptions, occurred primarily because of the process of coordinating practices of the Company with the rules of the Code. Deviations from the Code are as follows:
Information on the securities of the members of the Board and of the Supervisory Board, the Company did not publish on its website. These data are published on the web sites of the Zagreb Stock Exchange.
The Supervisory Board is not composed of independent members.
The Supervisory Board did not make an evaluation of its work in the preceding period.
Record of all income and benefits received by a member of the Board from the Company were publicly published in the Annual Report of the Company.
The Company did not publish the amount of compensation for the independent external auditor for the executed audit.
Description of certain deviations from the Code and reasons for the stated discrepancies the Company explains in detail in the answers to the annual questionnaire that is part of the Code and which has been delivered and published on the web sites of the Zagreb Stock Exchange, as well as on the Company's own web site.
In the future the Company plans to comply with the provisions of the Code, taking into account the acceptability of certain provisions of the Code, all in accordance with the legal regulations and distinctive international standards of corporate management. Annual Year Report of Group AD Plastik d.d. 8 2010.
Internal supervision in the Company is conducted by the Controlling department and informs the Management Board through the report on the conducted monitoring (findings and suggestions of improvement).
Supervision and coordination of Management business reporting on the business results include:
The Company has no majority owner. The largest shareholder is the Open joint stock company, OAO Holding Autokomponenti from Sankt-Petersburg, Russian Federation, which owns 1.259.875 shares which represents 30% of the share capital of the Company.
Supervisory Board appoints and recalls the Board Members of the Company and its President. In accordance with the Articles of association, the mandate of the Board members lasts up to 5 years with the possibility of reappointment. Management Board manages the Company's operations at its own risk, and each member of the Board is authorized to represent the company individually.
The Management Board on 31.12.2012. was composed of five members: President of the Board, Board Member responsible for the development, sale and purchase, Board Member responsible for controlling, accounting and finance, Board member responsible for human resources, legal department, organization and IT and Board member responsible for logistics, quality, and manufacturing and production functions.
In accordance with the Statute of the Company, the Management Board needs to require the consent of the Supervisory Board for misappropriation and/or acquisition of real estates, misappropriation and/or acquisition of shares, i.e. shares in companies, adoption of annual business plan, including the Company's budget.
The Company"s Management Board is not authorized to reach the decision on shares issuing. Management Board may decide to acquire its own shares in the manner and under the conditions as prescribed by the Companies Act.
The Supervisory Board consists of seven members (since February 20th, 2008). The mandate of the Supervisory Board members lasts for four years and they may be re-elected, i.e. appointed. Four members are elected by the General Assembly, one member of the Supervisory Board is appointed by the Company's works council, while two members, in accordance with the Statute of the Company, is appointed by the shareholder of the Open joint stock company OAO Holding Autokomponenti from Saint-Petersburg, Russian Federation.
The Supervisory Board is responsible for the appointment and dismissal of members of the Management Board, and supervision of the management of the Company's business.
Company"s General Assembly decides on the amendments to the Statute. Proposal to amend the Statute may be given by the Management Board, Supervisory Board and Company"s shareholders who individually or collectively hold shares with a nominal amount greater than 15% of the share capital of the Company.
The main business activity of the Group AD Plastik is production of plastic parts for the automobile industry. In addition, the Company also produces packaging for food industry, household products, etc.
Source: ADP
Operating revenue of the Group AD Plastik is constantly increasing, and this can be seen from the lower image. Consolidated revenues of the Group with associated companies in full amount (marked light blue) for a period of five years grew by 50%, while consolidated revenue excluding associated companies in the same period grew by 13%.
Title: Operating revenue of AD Plastik Group (in mil.kn)
EBITDA in the same period grew by 62%.
Title: EBITDA of AD Plastik Group (in mil. kn)
Source:ADP
EBIT of the Group in the period from 2007 until 2011 recorded an increase of 160%.
Title: EBIT of AD Plastik Group (in mil. kn)
Net profit of the Group has had steady growth, with the exception of the negative 2008. In 2011 net profit rose by 20% compared to the 2010.
Title: Net profit AD Plastik Group (in mil. kn)
Source: ADP
Gross fee paid to auditor, for audit services was 577.138,36 kn.
In 2011 total realized consolidated income amounts kuna 736 million, from which kuna 721 million are operating revenue.
Consolidated financial statements for 2011 included next dependent companies: PHR Russia, ADP Luga – Russia, ADP Novo Mesto - Slovenia, ADP Mladenovac - Serbia and SG Plastik - Croatia. In consolidated financial statements mutual transactions from related companies were eliminated from the balance sheet, income statement and cash flow.
In 2011 parent company AD Plastik Inc. realized a net profit increase by kuna 29.3 million comparing last year. Without dividend pay out parent company net income would be 28,06 million kuna. Operating income increased for 7.5 mil kuna, while operating decreased for 0,1 million kuna. EBITDA increased for 9,8%, i.e. EBITDA is for 6.2 million kuna higher.
In 2011 we launched production for PSA projects, and we completed products development, and started production for Renault Twingo Wind.
Currently we are working on development of new products for Peugeot, through 8 projects. In January 2012 we started production for two of them. Renault projects refer to the products for exterior of Twingo Phase 2. Serial production for this project started in November 2011.
Also, Renault nominated AD Plastik for exterior and interior products for the Edison program, and we started their development phase. Edison is a joint venture from Renault and Daimler Chrysler, and is related to the production of Twingo with 4 seats, and Smart with 4 and 2 seats. Mass production is expected to start by the end of 2013.
Beside the car industry projects, in 2011 significant project was initiated. This was a project for production of plastic plug for Cedevita Go, an innovative packaging for multivitamin preparation. Investment in this project started in last quarter of 2011 and serial production is planned for mid-2012.
ZAO PHR Tolyatti, subsidiary reported an increase in operating revenue in 2011 year compared to the previous year by 31.1%, while operating expenses had higher annual growth rate of 35.8%, which resulted in reduction of EBIT margin. However, EBITDA in absolute amount increased by 40.7% in 2011 compared to 2010. Profit before tax for 2011 amounted kuna 10.67 million.
In 2011 we initiated projects related to product development for new customer Nissan, and the development of new positions for customer Avtoframos in the production of parts for vehicle Fluence / Megane (project name L38/B32). In 2011 we adopted a new production technology for production of dynamic seals.
In 2011 ADP NOVO MESTO, subsidiary, continued with stable business and realized net profit to the amount of kuna 861.000, with EBITDA reaching kuna 2.2 million. In 2011 operating revenue was higher by 2.5%.
Euro APS, associated company from Romania, generated higher revenue than the previous year for kuna 51.9 million, while operating expenses increased by kuna 33.1 million. All this led to the increase in EBIT and EBITDA margins. In 2011 net profit increased by kuna 17.9 million. Major project started for the new Logan Sondero in 2011.
In early 2012 subsidiary ZAO ADP LUGA was renamed in ADP KALUGA, due to tax losses going forward.
FADP Luga had 74% greater realization of manufacturing compared to the previous year. Company had 425 employees, and that was 45% more than in 2010.
In 2011 company implemented a large number of new projects, and the most significant are: Ford Focus, Nissan P32E and Renault Duster, and we also won nomination for Hyundai Accent, whose serial production is planned for mid 2012.
It is important to emphasize that at this location company adopted a new production technology foaming.
The adoption of new technology confirms Group's aim to expand manufacturing and confirms its position on the market of automotive industry, with further strengthening of its competitive advantages.
In 2011 Group AD Plastik consolidated net profit amounted kuna 64.7 million. Consolidated net income includes income of the parent company with associated companies to the amount of HRK 79.5 million without included consolidated eliminations (dividends…), net income from Russia's PHR kuna 10.6 million, net income from AD Plastik Novo Mesto kuna 0.9 million, ADP LUGA net income of kuna 0.5 million, and SG Plastik with net income of kuna 0.05 million, and ADP Mladenovac net loss of kuna 0,03 million. Net income of parent company with unconsolidated associated companies and paid dividends is consisted of net income in Croatian company to the amount of kuna 51.8 million, net income from the Romanian company Euro APS to the amount of 31.9 million kuna, and net loss of Russian company in Luga to the amount of kuna 4.3 million.
At the end of 2011 total assets of the Group amounted kuna 1.202 million.
Long-term liabilities decreased by kuna 12.9 million and current liabilities increased by kuna 105.8 million, compared to the previous year.
Loans increased by kuna 11.3 million on 31.12.2011 compared to 31.12.2010.. Reasons for increase, are related to exchange rate of EUR compared to the HRK (because loans denominated in EUR-s) and start of financing for new plants in Mladenovac and Kaluga. AD Plastik borrowed funds to company ADP ESOP Ltd. to finance purchases of new shares, with adequate guarantees for all workers involved in this program. On December 31st, 2011 coefficient of total debt ratio amounts 0.40.
Company's liquidity is good, and all liabilities to customers, suppliers, employees, government, banks and counterparties are properly executed.
The Group has a stable balance with well-balanced ratios in the balance sheet. Implemented measures for rationalization of the operational costs have yielded positive results and created good conditions for increased profit in the future.
| Financial ratios | 2011 | 2010 | 2009 |
|---|---|---|---|
| Debt ratio | 0.40 | 0.38 | 0.41 |
| Debt to equity | 0.68 | 0.58 | 0.68 |
| Financial stability ratio | 0.95 | 0.87 | 0.81 |
| Stockholders Equity (in millions kn) | 702.1 | 667.9 | 613.2 |
| Assets (in millions kn) | 1,201.5 | 1,072.9 | 1,030.3 |
| BVPS (Book Value per share) | 167.53 | 159.03 | 146.01 |
| EPS (earnings per share) | 15.40 | 12.92 | 3.84 |
| ROE (Return on equity) | 9.68% | 8.85% | 2.64% |
| ROA (Return on assets) | 6.03% | 5.16% | 1.56% |
| EBIT margin | 7.09% | 4.72% | 3.65% |
| EBITDA margin | 13.81% | 11.60% | 12.17% |
| Net profit margin | 8.78% | 6.76% | 2.65% |
| Dividend per share | 2.47* | 7.50 | 1.5 |
* related to advance of paid dividend for 2011
Sales plan for 2011 was made on the basis of car manufacturers forecasts, specialized services and market trend projections. In the parent company vehicles represented realization and exceeded planned expectations. Renault, PSA, Ford i Hella achieved quantity realization, that has enabled better utilization rate of existing manufacturing resources, which has, with fulfillment of contractual obligations and the internal productivity, ensured better financial results.
In the last quarter of 2011 for Renault Croatia program we successfully finished project for redesigned Twingo. Successful collaboration between Renault and AD Plastik in this region is continuing by winning nomination for the Edison Project (Renault and Daimler joint venture, with adding Daimler to customer portfolio of AD Plastik). The Company invests significant funds in this project with a focus on new, fully automated painting line for plastic parts.
Daimler`s inclusion in customers portfolio of AD Plastik has started with nomination for the position of the fan shroud, which is going to be delivered to locations Revoz, Novo Mesto, Renault factory and Hambach, Daimler factory in France. Cooperation between Renault and Daimler continues on Kangoo project in which AD Plastik is competing to win the nomination for the painted door trims.
PSA program offers a lot of opportunities, as we have built good relationship with their technical and purchasing teams. New agreement between PSA and GM will bring new opportunities but also will have an impact on their global purchasing strategy. From AD Plastik`s side, specific actions have been taken especially to access use of alternative commodities, in order to get new projects in Croatian and Russian market.
Programs outside auto industry recorded a decrease in sales, which is mainly caused by households drop in standard of living and reduction in demand, but partly due global division of this market. The management of this program continues with implementation of previously planned activities focused at better positioning of these programs in the medium term development plan.
EAPS Romania continued with positive trend in sales growth for 2011. Renault's strategic positioning as the market leader in the segment of low-budget cars, and good sales of these vehicles have resulted in demand for larger quantities, and new vehicle models. For such a good result, special emphasis, besides Logan and Sandero, should be put for program Duster, but also on production of spare parts for other markets. Currently Renault is working on creation of a new Logan model, which will replace the previously mentioned models and ensure the future stability of this company. Joint commercial developing presentation of AD Plastik and Faurecia in front of Renault provided stable future of this plant for the next period. AD Plastik is developing independently roof lining for new Logan, modification and continuation production of sun visors for new Logan (start of production in 2012).
Image:New Dacia Logan
Source: ADP
Car manufacturers in the Russian market have increased previous announcements used for making plan for 2011. Simultaneously, in this fast growing market we have completed, or we are in the process of completion of several projects for new vehicles in the future, to ensure stable growth of the Company. It is particularly important to emphasize Renault-AutoVAZ RF90 joint project, and Nissan LB1A (serial production in AutoVAZ, Tolyatti). AD Plastik has successfully completed realization of interior and exterior positions on these projects. In this way we confirmed ability to complete complex projects in challenging conditions, and justified the trust of our long-term partners (Renault, AutoVAZ), but also of our new customer Nissan.
It is important to note that we have successfully developed new technology of rubber extrusion, and we started with serial production of sealing modules for a new vehicle VAZ 2190.
Title: AutoVAz quality reward for ZAO PHR in 2011
Source: ADP
Global strategic objectives of AD Plastik for the Russian market have not changed compared to previous years. With the previous location (ZAO PHR) in Tolyatti, in Samara region, FADP Luga (St. Petersburg region - joint venture of AD Plastik and the French company Faurecia Automotive Holdings), AD Plastik opened new plant in AD Plastik Kaluga (Moscow region). Production for this plant is planned to start in the middle of 2012.
With opening of this location, Company completed strategic positioning in the major automotive centers in Russia and created conditions for further stable development of business activities in this extremely important market for all car manufacturers,. As a synergy result of company's successful strategic thinking and operational services, it won a nomination for the Logan vehicle in the Russian market. This vehicle will replace the existing Logan and Sandero in the future. Start of production is planned for 2013. Beside this, in the Russian market AD Plastik is nominated for new Peugeot programs.
Volkswagen is one of the most stable global vehicle manufacturers, and has a large number of brands and locations. Despite their strategy to have global suppliers, AD Plastik has a good chance to gain nomination in the Russian market, thanks to its strategic positioning and reputation for reliable supplier.
In 2011 AD Plastik won nominations for blow molded air-ducts in blowing technology for vehicle L0/330 Fiat-Serbia. Start of serial production is expected in middle of 2012. Aware of the importance of Fiat's arrival in Serbia for region development in the automotive segment, AD Plastik bought M-Prointex plant in Mladenovac. This location is situated halfway between Belgrade and Kragujevac, and was renewed for the production of new products for FIAT. We continued with production of the existing range of products (textile felts for the construction, footwear and furniture industry), and with partial renewal of equipment, felt manufacturing for car interior carpets for needs of Russian and other markets.
The strategy of products and technologies:
AD Plastik has 4 main technologies:
- Objective is to extend the use of the different expertise and business we have with one customer to other customers, ex. of grab-handles with PSA that should be developed for Renault, VW, Fiat and others. This can be done with minimum effort as AD Plastik already has knowledge about requirements of development and production.
- Second objective is to define products with added value and minimum impact on logistics costs, ex. sun visors can be produced in Serbia and delivered in Western European countries. Then we plan to implement specific commercial processes to demonstrate strong business case, so we could convince targeted car producers.
- Third objective is to get in-house production of material for strategic products like carpets (with acquisition of Serbian plant) or seals in order to become independent from our material suppliers/competitors.
- Fourth objective, would be with the new paint line, which will offer capacity on the older refurbished paint shop to paint interior parts (less and less competitors in the market due to
bankruptcies, acquisitions, etc.) and for spare parts (potential business on bumpers and exterior trims for Ford and GM).
Development of innovations and improved solutions will also be necessary to get additional business, since advantage of close location and low labor costs are no longer sufficient to ensure competitive advantage.
In terms of global strategy, AD Plastik continues to focus its business development on low and middle class cars, which are less susceptible to variation in sales. AD Plastik`s main advantage is presence in Eastern Europe, especially Russia, which is one of the fastest growing markets in the automotive segment.
People integrated into the system of AD Plastik make a strong and competent unit for the automotive industry. AD Plastik Croatia has 872 employees. The average age of employees is 41 years.
Source: ADP
Instead of the insurance concept for permanent job, concept of continuous development is being offered, as well as permanent training and education, which provide employment for all the time through which people develop along with the company.
Number of employees in parent company, subsidiaries and associates on December 31st, 2011 amounted 2.489 employees (in 2010 2.375 employees)
| 2011 | 2010 | |
|---|---|---|
| AD Plastik Inc. | 872 | 875 |
| ZAO ADP Luga | 3 | 3 |
| ZAO PHR | 490 | 536 |
| AD Plastik Ltd. | 41 | 36 |
| Euro APS | 658 | 734 |
| FADP Holding | 425 | 191 |
In the staff education structure, highly educated staff makes 23% of all our employees. It is the staff that possesses specific expertise applicable to the automotive industry, which supports the Company"s concept for enhancing company's production and development component.
The Company regularly, on an annual basis, measures and assesses the degree of motivation and satisfaction of its employees. Significant resources are invested for improving indicators of motivation and satisfaction, according to the measurement results. Therefore, the rate of voluntary fluctuations is low, and for 2011 the monthly average is 0.13%.
The company has developed system of recognition, evaluation and rewarding of improvements.
Relations between Management and unions are at high level and that level is maintained, when they are negotiating on implementation of the Collective Agreement.
In September 2011 in Solin practical training program under the IPA 2008 twinning project "Implementation of the new Environmental Protection Act harmonized with EU legislation in offenses cases against the environment" was successfully executed. The project was initiated by the Directorate of Inspection of the Ministry of Environmental and Nature Protection, in close cooperation with the Austrian environment Agency, which in implementation of this project, besides its experts, used experts from the Netherlands and Sweden.
The project objective was to encourage improvements through effective implementation of new legislation in cases of offenses and criminal acts against the environment. The main project activities were divided according to the basic subject areas into two components:
Component 1 - Development of procedures for coordinated implementation of the Environmental Protection Act.
Component 2 - Capacity strengthening in all agencies involved in project implementation.
According to the requirements of the standard ISO 14001 at Zagreb location, system of environmental protection was implemented and certified.
3. Financial reports
a) AD Plastik d.d., Solin and its subsidiaries Consolidated financial statements and Independent Auditor's Report For the year ended 31 December 2011
Pursuant to the Accounting Act of the Republic of Croatia, the Management is responsible for ensuring that financial statements are prepared for each financial year in accordance with International Financial Reporting Standards ("the IFRSs"), which give a true and fair view of the financial position and results of operations of AD Plastik d.d., Solin ("the Company") and its subsidiaries ("the Group") for that year.
After making appropriate enquiries, the Management has a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. For this reason, the Management continues to prepare the financial statements on a going-concern basis.
In preparing those financial statements, the responsibilities of the Management Board include ensuring that:
The Management Board is responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Company and the Group and must also ensure that the financial statements comply with the Accounting Act. The Management Board is also responsible for safeguarding the assets of the Company and the Group, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Signed on behalf of the Management by:
Josip Boban, President of the Management Board
| e)PROFIT AND LOSS ACCOUNT (in thousands of kuna) | 31/12/2011 | 31/12/2010 as | |
|---|---|---|---|
| Notes | restated | ||
| Sales | 7 | 721,730 | 696,952 |
| Other income | 8 | 14,686 ____ |
105,325 ____ |
| Total income | 736,416 ____ |
802,277 ____ |
|
| Decrease/(Increase) in the value of work in progress and | (973) | (2,020) | |
| finished products | |||
| Cost of raw material and supplies | 9 | 345,680 | 320,854 |
| Cost of goods sold | 10 | 26,273 | 65,171 |
| Service costs | 13 | 47,880 | 59,859 |
| Staff costs | 11 | 142,637 | 134,634 |
| Depreciation and amortisation | 12 | 49,482 | 55,208 |
| Other external expenses | 14 | 62,895 | 37,463 |
| Other operating expenses | 15 | 7,466 | 77,700 |
| Provisions for risks and charges | 16 | 2,842 ____ |
15,545 ____ |
| Total operating expenses | 684,182 ____ |
764,414 ____ |
|
| Profit from operations | 52,234 ____ |
37,863 ____ |
|
| Financial income | 17 | 58,525 | 70,233 |
| Financial expenses | 18 | (40,210) ____ |
(48,453) ____ |
| Net profit from financial activities | 18,315 ____ |
21,780 ____ |
|
| Profit before taxation | 70,549 ____ |
59,643 ____ |
|
| Income tax expense | 19 | 5,881 ____ |
9,372 ____ |
| Profit for the year | 64,668 ____ |
50,271 ____ |
|
| Other comprehensive income | - ____ |
1,697 ____ |
|
| Total comprehensive income | 64,668 ____ |
51,968 ____ |
|
| Profit attributable to: | |||
| Equity holders of the Company | 64,663 | 50,255 | |
| Non-controlling interests | 5 | 16 | |
| Total comprehensive income attributable to: | |||
| Equity holders of the Company | 64,663 | 51,952 | |
| Non-controlling interests | 5 | 16 |
| e) CONSOLIDATED BALANCE SHEET (in thousands of kuna) |
Notes | 31/12/2011 | 31/12/2010 as restated |
1/1/ 2010 as restated |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Intangible assets | 21 | 41,387 | 43,568 | 59,379 |
| Tangible assets | 22 | 537,993 | 515,419 | 512,536 |
| Investments in subsidiaries | 23 | 84,334 | 72,841 | 27,262 |
| Other financial assets | 24 | 75,272 | 28,628 | 64 |
| Deferred tax assets | 19 | 994 ____ |
771 ____ |
- ____ |
| Total non-current assets | 739,980 ____ |
661,227 ____ |
599,241 ____ |
|
| Current assets | ||||
| Inventories | 25 | 72,996 | 57,466 | 57,308 |
| Trade receivables | 26 | 155,946 | 152,395 | 172,461 |
| Other receivables | 27 | 45,435 | 49,730 | 60,225 |
| Current financial assets | 28 | 34,983 | 11,587 | 24,035 |
| Cash | 29 | 36,042 | 64,951 | 58,445 |
| Prepaid expenses and accrued income | 30 | 116,165 ____ |
75,549 ___ |
58,542 ___ |
| Total current assets | 461,567 ____ |
411,678 ____ |
431,016 ____ |
|
| TOTAL ASSETS | 1,201,547 ____ |
1,072,905 ____ |
1,030,257 ____ |
| e) CONSOLIDATED BALANCE SHEET (in thousands of | 31/12/2010 | 1/1/ 2010 as | ||
|---|---|---|---|---|
| kuna) | Notes | 31/12/2011 | as restated | restated |
| Equity | ||||
| Share capital | 31 | 419,958 | 419,958 | 419,958 |
| Reserves | 218,938 | 188,926 | 171,478 | |
| Profit for the year | 64,663 | 50,255 | 16,269 | |
| Non-controlling interests | 12 ____ |
41 ____ |
768 ____ |
|
| Total equity | 703,571 ____ |
659,180 ____ |
608,473 ____ |
|
| Long-term provisions | 32 | 4,829 | 3,332 | - |
| Long-term borrowings | 33 | 79,842 | 92,831 | 124,239 |
| Other non-current liabilities | 33 | 69 ____ |
74 ____ |
68 ____ |
| Total non-current liabilities | 84,740 ____ |
96,237 ____ |
124,307 ____ |
|
| Advances received | 34 | 121,247 | 82,414 | 55,424 |
| Trade payables | 35 | 120,630 | 93,148 | 102,903 |
| Short-term borrowings | 36 | 130,575 | 106,257 | 116,592 |
| Other current liabilities | 37 | 28,191 | 21,751 | 21,197 |
| Short-term provisions | 32 | 10,385 | 12,213 | - |
| Accrued expenses and deferred income | 38 | 2,208 ____ |
1,705 ____ |
1,361 ____ |
| Total current liabilities | 413,236 ____ |
317,488 ____ |
297,477 ____ |
|
| Total liabilities | 497,976 ____ |
413,725 ____ |
421,784 ____ |
|
| TOTAL EQUITY AND LIABILITIES | 1,201,547 ____ |
1,072,905 ____ |
1,030,257 ____ |
| f) CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY ((in thousands of kuna) |
Share capital |
Capital reserves |
Legal reserves |
Reserves for own shares |
Treasury shares |
Retained earnings |
Total equity attributable to the equity holders of the Company |
Non controlling interests |
Total |
|---|---|---|---|---|---|---|---|---|---|
| Balance at 31 December 2009 | 419,958 | 168,973 | 5,039 | 11,763 | (11,763) | 18,466 | 612,436 | 768 | 613,204 |
| Correction of the result for the current year (see Note 5) |
(4,731) | (4,731) | - | (4,731) | |||||
| Balance at 31 December 2009 - as restated |
419,958 | 168,973 | 5,039 | 11,763 | (11,763) | 13,735 | 607,705 | 768 | 608,473 |
| Allocation of the prior-year profit | - | - | 1,101 | - | - | (1,101) | - | - | - |
| Changes in non-controlling interests | - | - | - | - | - | - | - | (743) | (743) |
| Exchange differences on investments in foreign subsidiaries |
- | 16,214 | - | - | - | (11,225) | 4,989 | - | 4,989 |
| Dividends paid | - | - | - | - | - | (6,103) | (6,103) | - | (6,103) |
| Revaluation of fixed assets | - | 1,696 | - | - | - | - | 1,696 | - | 1,696 |
| Valuation of own shares | - | - | - | 194 | (194) | - | - | - | - |
| Distributions to employees | - | 597 | - | (597) | 597 | - | 597 | - | 597 |
| Profit for the year | - | - | - | - | - | 54,225 | 54,225 | 16 | 54,241 |
| Balance at 31 December 2010 | 419,958 | 187,480 | 6,140 | 11,360 | (11,360) | 49,531 | 663,109 | 41 | 663,150 |
| Correction of the result for the current year (see Note 5) |
- | - | - | - | - | (3,970) | (3,970) | - | (3,970 |
| Balance at 31 December 2010 - as restated |
419,958 | 187,480 | 6,140 | 11,360 | (11,360) | 45,561 | 659,139 | 41 | 659,180 |
| Changes in non-controlling interests | - | - | - | - | - | - | - | (34) | (34) |
| Exchange differences on investments in foreign subsidiaries |
- | 3,989 | 3 | - | - | (4,659) | (667) | - | (667) |
| Dividends paid | - | - | - | - | - | (30,672) | (30,672) | - | (30,672) |
| Valuation of own shares | - | - | - | 114 | (114) | - | - | - | - |
| Distributions to employees | - | 1,608 | - | (1,962) | 1,962 | 354 | 1,962 | - | 1,962 |
| Sale of own shares | - | 229 | - | (9,134) | 9,134 | 8,905 | 9,134 | - | 9,134 |
| Profit for the year | - | - | - | - | - | 64,663 | 64,663 | 5 | 64,668 |
| Balance at 31 December 2011 | 419,958 | 193,306 | 6,143 | 378 | (378) | 84,152 | 703,559 | 12 | 703,571 |
| g) | CONSOLIDATED STATEMENT OF CAH FLOW ((in thousands of kuna) |
|
|---|---|---|
| Cash flows from operating activities | 31/12/2010 | |
|---|---|---|
| 31/12/2011 | as restated | |
| Profit for the year | 64,668 | 50,271 |
| Income tax expense | 5,881 | 9,372 |
| Depreciation and amortisation | 49,482 | 55,208 |
| Gains from sale of assets | 1,322 | 61,022 |
| Impairment allowance on trade receivables | 582 | 1,016 |
| Increase in long-term and short-term provisions | (331) ____ |
15,560 ____ |
| Profit/(loss) from operations before working capital changes | 121,604 ____ |
192,449 ____ |
| Decrease in inventories | (15,530) | (158) |
| Decrease/(increase) in trade receivables | (4,133) | 13,708 |
| (Increase)/decrease in other receivables | 4,295 | 10,511 |
| Decrease in trade payables | 27,482 | (9,755) |
| Increase in advances received | 38,833 | 26,990 |
| Decrease in other current liabilities | 1,592 | 1,370 |
| Decrease in accrued expenses and deferred income | 503 | 344 |
| Increase in prepaid expenses | (40,616) ____ |
(17,007) ____ |
| Cash generated from/(used in) operations | 134,030 | 218,452 |
| Sale of own shares | ____ 9,134 |
____ - |
| Investments in subsidiaries | (11,493) | (45,579) |
| Purchases of property, plant and equipment, and intangible assets | (71,197) | (102,405) |
| Investments in Funds | 8,278 | (11,078) |
| Short-term loans | (29,267) | 23,526 |
| Long-term loans | (49,051) | (28,564) |
| Cash (used in)/generated from investing activities | ____ (143,596) |
____ (164,100) |
| Dividends paid | ____ (30,672) |
____ (6,103) |
| Loans | 185,115 | 44,342 |
| Repayments of borrowings | (173,786) | (86,085) |
| Cash generated from financing activities | ____ (19,343) |
____ (47,846) |
| Net cash flow | ____ (28,909) |
____ 6,506 |
| At 1 January | ____ 64,951 |
____ 58,445 |
| Net cash inflow | (28,909) | 6,506 |
| At 31 December | 36,042 ____ |
64,951 ____ |
The following amendments to the existing standards issued by the International Accounting Standards Board and interpretations issued by the International Financial Reporting Interpretations Committee are effective for the current period:
The adoption of the amended and revised Standards and Interpretation has not lead to changes in the Group's accounting policies.
At the date of authorization of these financial statements the following Standards, revisions and Interpretations were in issue but not yet effective:
The Group has elected not to adopt these Standards, revisions and Interpretations in advance of their effective dates and anticipates that the adoption of these standards, revisions and interpretations will have no material impact on the consolidated financial statements in the period of initial application.
Set out below are the principal accounting policies consistently applied in the preparation of the financial statements for the current and prior years.
These financial statements are prepared in accordance with International Financial Reporting Standards and Croatian laws.
The financial statements of the Group have been prepared on the historical cost basis, in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board and Croatian laws.
The Group maintains its accounting records in the Croatian language, in Croatian Kuna and in accordance with Croatian laws and the accounting principles and practices observed by enterprises in Croatia.
The preparation of financial statements in conformity with International Financial Reporting Standards (IFRSs) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 4. These consolidated financial statements have been prepared under the assumption that the Group will continue as a going concern.
The consolidated financial statements of the Group represent aggregate amounts of assets, liabilities, capital and reserves of the Group as of 31 December 2011, and the results of its operations for the year then ended. Some of the financial captions have been reclassified in these financial statements compared to the prior year, as the management is of the opinion that the reclassification provides a better presentation of the financial statements as a whole.
The accounting policies are consistently applied by all the Group entities.
The consolidated financial statements of the Group comprise the consolidated financial statements of the Company and its subsidiaries.
Subsidiaries are entities controlled by the Company. Control is present when the Company is entitled to determine, directly or indirectly, the financial and business policies of the investee so as to derive benefits from its operations. The financial statements of the subsidiaries are included in the Group financial statements on a consolidated basis from the date that control commences until the date that control ceases.
Intra-group balances and transactions, and any unrealised gains arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.
Revenue is measured at the fair value of the consideration received or receivable for products, goods or services sold in the regular course of operations.
Revenues are stated net of value added tax, estimated returns, discounts and rebates. Revenue is recognised when the amount of the revenue can be measured reliably and when future economic benefits are expected to flow into the Group.
Product sales are recognised when the products are delivered to, and accepted by the customer and when the collectability of the receivables is virtually certain.
Income from the manufacture of tools for a known customer
Income from the manufacture of tools is recognised using the stage-of-completion method to determine the amount of income and costs attributable to a certain period.
Interest income is recognised on a time basis, using the effective interest method. Interest earned on balances with commercial banks (demand and term deposits) is credited to income for the period as it accrues. Interest on trade debtors is recognised as income upon settlement.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are included in profit or loss in the period in which they are incurred.
Transactions in foreign currencies are translated into Croatian kunas at the rates of exchange in effect at the dates of the transactions. Cash, receivables and payables denominated in foreign currencies are retranslated at the rates of exchange in effect at the date of the statement of financial position. Gains and losses arising on translation are included in the statement of comprehensive income for the year. At 31 December 2011, the official exchange rate of the Croatian kuna against 1 euro (EUR) was HRK 7.53042 (31 December 2010: HRK 7.385173 for 1 EUR).
Income tax expense represents the sum of the tax currently payable and deferred tax. Income tax is recognised in the income statement, except where it relates to items recognised directly in equity, in which case it is also recognised in equity. Current tax represents tax expected to be paid on the basis of taxable profit for the year, using the tax rate enacted at the balance sheet date, adjusted by appropriate prior-period items.
Under Croatian tax regulations, group entities are not subject to taxation on a consolidated bases, and tax losses cannot be transferred within group entities. Subsidiaries are subject to taxation in their respective jurisdictions.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates in effect at the balance sheet date.
The measurement of deferred tax liabilities and assets reflects the amount that the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred taxes are not discounted and are classified in the balance sheet as non-current assets and/or noncurrent liabilities. Deferred tax assets are recognised only to the extent that it is probable that the related tax benefit will be realised. At each balance sheet date, the Company reviews the unrecognised potential tax assets and the carrying amount of the recognised tax assets.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities.
In the case of a business combination, the tax effect is taken into account in calculating goodwill or in determining the excess of the acquirer"s interest in the net fair value of the acquiree"s identifiable assets, liabilities and contingent liabilities over cost.
Tangible fixed assets are recognised initially at cost and subsequently at cost less accumulated depreciation. The initial cost of property, plant and equipment comprises its purchase price, including import duties and nonrefundable sales taxes and any directly attributable costs of bringing an asset to its working condition and location for its intended use. Maintenance and repairs, replacements and improvements of minor importance are expensed as incurred. Where it is obvious that expenses incurred resulted in increase of expected future economic benefits to be derived from the use of an item of tangible or intangible assets in excess of the originally assessed standard performance of the asset, they are added to the carrying amount of the asset. Gains or losses on the retirement or disposal of tangible fixed assets are included in the statement of comprehensive income in the period they occur. Depreciation commences on putting an asset into use. Depreciation is provided so as to write down the cost or revalued amount of an asset over the estimated useful life of the asset using the straight-line method as follows:
| Depreciation rate in 2011 |
Depreciation rate in 2010 |
|
|---|---|---|
| 1. Tangible assets | ||
| Buildings | 1.50-4.00 | 1.50-4.00 |
| Machinery | 7.00-10.00 | 7.00-10.00 |
| Tools, furniture, office and laboratory equipment and accessories, measuring and control instruments Vehicles |
10.00-20.00 20.00 |
10.00-20.00 20.00 |
| IT equipment | 20.00 | 20.00 |
| Other | 10.00 | 10.00 |
| 2. Intangible assets | 20.00 | 20.00 |
At each reporting date the Gruop reviews the carrying amounts of its tangible and intangible assets to determine whether there is an indication that the assets may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
An associate is an entity over which the Company has significant influence but which is neither a subsidiary nor a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.
The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting. Under this method, the Group's share in the profit or loss of associates is recognised in the income statement from the date of acquisition of significant influence until the date on which significant influence is lost.
Investments are recognised initially at cost and are subsequently adjusted by the changes in the acquirer's share of the net profit of the investee. Where the Group's share of losses in an associate is equal to or higher than the equity investment in the associate, no further losses are recognised, except where the Group has assumed an obligation or committed to make a payment on behalf of the associate.
Inventories of raw material and spare parts are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average cost method. Net realisable value represents the estimated selling price in the ordinary course of business less all variable selling costs.
Cost of work in progress and finished products comprises the cost of raw material and supplies, direct labour and other costs and the portion of overheads directly attributable to work in progress.
Small inventory is written off when put in use.
The cost of product inventories i.e. the production costs is based on direct material used, the cost of which is determined using the weighted average cost method, then direct labour costs, and fixed overheads at the actual level of production which approximates the normal capacities, as well as variable overheads that are based on the actual use of the production capacities. Merchandise on stock is recognised at purchase cost.
Trade debtors and prepayments are carried at nominal amounts less an appropriate allowance for impairment for uncollectible amounts.
Impairment is made whenever there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, the probability of bankruptcy proceedings at the debtor, or default or delinquency in payment are considered objective evidence of impairment. The amount of the impairment loss is determined as the difference between the asset"s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The impairment losses on trade receivables are recognised in the income statement within 'Expenses'.
Management provides for doubtful receivables based on a review of the overall ageing of all receivables and a specific review of significant individual amounts receivable. The allowance for amounts doubtful of collection is charged to the statement of comprehensive income for the year.
Cash comprises account balances with banks, cash in hand, deposits and securities at call or with maturities of less than three months.
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event and it is probable (i.e. more likely than not) that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
Provisions are reviewed at each date of the statement of financial position and adjusted to reflect the current best estimate. Where the effect of discounting is material, the amount of the provision is the present value of the expenditures expected to be required to settle the obligation, determined using the estimated risk free interest rate as the discount rate. Where discounting is used, the reversal of such discounting in each year is recognised as a financial expense and the carrying amount of the provision increases in each year to reflect the passage of time.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the date of the statement of financial position, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
In the normal course of business the Group makes payments, through salary deductions, to mandatory pension funds on behalf of its employees as required by law. All contributions made to the mandatory pension funds are recognised as salary expense when accrued. The Group does not operate any other retirement benefit plan and, consequently, has no other obligations in respect of the retirement benefits for its employees. In addition, the Group is not obliged to provide any other post-employment benefits.
Termination benefits are payable when employment is terminated by the Group before the normal retirement date. The Group recognises its termination benefit obligations in accordance with applicable union agreements.
Benefits falling due more than 12 months after the reporting date are discounted to their present value.
For defined benefit retirement benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each reporting date. Actual gains and losses are recognised in the period in which they arise.
Past service cost is recognised immediately to the extent that the benefits are already vested. Otherwise, it is amortised on a straight-line basis over certain period until the benefits become vested.
Financial assets and financial liabilities included in the accompanying financial statements consist of cash and cash equivalents, marketable securities, trade and other receivables, trade and other payables, long-term receivables, loans, borrowings and investments. The details of the recognition and measurement of those items are presented in the corresponding policies.
Investments are recognised and derecognised on a trade date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs, except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value.
The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.
Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.
Financial assets available for sale are classified as current assets if the management intends to realise those assets within 12 months from the date of the statement of financial position. Every purchase and sale transaction in recognised on the settlement date. Investments are recognised initially at cost, which represents the fair value of the consideration given, including transaction costs. Available-for-sale investments are subsequently measured at fair value, with no deduction of transaction costs, by reference to their market prices prevailing at the date of the statement of financial position. Investments whose fair values cannot be determined are carried at cost and reviewed for impairment at each reporting date.
The effective interest method is a method of calculating the amortised cost of a financial asset or liability, and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial asset or liability, or, where appropriate, a shorter period.
Financial assets are assessed for indicators of impairment at each date of the statement of financial position. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted. For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset"s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate.
The carrying amount of a financial asset is reduced through the use of an allowance account. When a trade receivable is uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account.
The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire; or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement.
Contingent liabilities have not been recognised in these financial statements. They are not disclosed unless the possibility of outflow of resources embodying economic benefits is remote. A contingent asset is not recognised in the financial statements but it is disclosed when the inflow of economic benefits becomes probable.
Events after the date of the statement of financial position that provide additional information about the Company"s position at that date (adjusting events) are reflected in the financial statements. Post-year-end events that are not adjusting events are disclosed in the notes when material.
In the application of the Group"s accounting policies, which are described in Note 3, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on past experience and other factors that are considered to be relevant. Actual results may differ from those estimates.
The estimates and underlying assumptions are continually reviewed. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of revision and future periods if the revision affects both current and future periods.
Areas of estimation include, but are not limited to, depreciation periods and residual values of property, plant and equipment, and of intangible assets, value adjustment of inventories, impairment of receivables, and litigation provisions. The key areas of estimation in applying the Company"s accounting policies that had a most significant impact on the amounts recognized in the financial statements were as follows:
As described in the Note 3.8, the Group reviews the estimated useful lives of property, plant and equipment at the end of each annual reporting period. Property, plant and equipment are recognised initially at cost, less accumulated depreciation.
Availability of taxable profits against which the deferred tax assets could be recognised
A deferred tax asset is recognized only to the extent that it is probable that the related tax benefit will be realised. In determining the amount of deferred taxes that can be recognised significant judgements are required, which are based on the probable quantification of time and level of future taxable profits, together with the future tax planning strategy.
Impairment allowance on trade receivables
Management provides for doubtful receivables based on a review of the overall ageing of all receivables and a specific review of significant individual amounts receivable. The allowance for amounts doubtful of collection is charged to the statement of comprehensive income for the year.
Actuarial estimates used in determining the retirement benefits
The cost of defined benefits is determined using actuarial estimates. Actuarial estimates involve assumptions about discount rates, future salary increases and the mortality or fluctuation rates. Because of the long-term nature of those plans, there is uncertainty surrounding those estimates.
During 2011 the Group corrected within the Parent the tax calculation for the years 2006 up to including 2010 by charging the effect to the retained earnings balance at 31 December 2010.
The correction for the years 2006 up to including 2009 were made, by decreasing other reserves at 1 January 2010, and increasing the tax liability by a total amount of HRK 4,731 thousand.
In the 2010 financial statements, the income tax was corrected by reducing the net profit for the year by HRK 3,970 thousand.
The total effect of the resulting restatement on the financial statements for the year ended 31 December 2009 is as follows:
| Notes | As originally reported |
As restated | The resulting increase/ (decrease) |
|
|---|---|---|---|---|
| Equity | ||||
| Share capital | 30 | 419,958 | 419,958 | - |
| Reserves | 176,209 | 171,478 | (4,731) | |
| Profit for the year | 16,269 | 16,269 | - | |
| Non-controlling interests | 768 ____ |
768 ____ |
- ____ |
|
| Total equity | 613,204 ____ |
608,473 ____ |
(4,731) ____ |
|
| Advances received | 34 | 55,424 | 55,424 | - |
| Trade payables | 35 | 102,903 | 102,903 | - |
| Short-term borrowings | 36 | 116,592 | 116,592 | - |
| Other current liabilities | 37 | 16,466 | 21,197 | 4,731 |
| Short-term provisions | 32 | - | - | - |
| Accrued expenses and deferred income | 33 | 1,361 ____ |
1,361 ____ |
- ____ |
| Total current liabilities | 292,746 ____ |
297,477 ____ |
4,731 ____ |
| The total effect of the resulting restatement on the financial statements for the year ended 31 December | ||||
|---|---|---|---|---|
| 2010 is as follows: |
| Notes | As originally reported |
As restated | The resulting increase/ (decrease) |
|
|---|---|---|---|---|
| Equity | ||||
| Share capital | 30 | 419,958 | 419,958 | - |
| Reserves | 193,657 | 188,926 | (4,731) | |
| Profit for the year | 54,225 | 50,255 | (3,970) | |
| Non-controlling interests | 41 ____ |
41 ____ |
- ____ |
|
| Total equity | 667,881 ____ |
659,180 ____ |
(8,701) ____ |
|
| Advances received | 34 | 82,414 | 82,414 | - |
| Trade payables | 35 | 93,148 | 93,148 | - |
| Short-term borrowings | 36 | 106,257 | 106,257 | - |
| Other current liabilities | 37 | 13,050 | 21,751 | 8,701 |
| Short-term provisions | 32 | 12,213 | 12,213 | - |
| Accrued expenses and deferred income | 33 | 1,705 ____ |
1,705 ____ |
- ____ |
| Total current liabilities | 308,787 ____ |
317,488 ____ |
8,701 ____ |
The Group has adopted IFRS 8 Operating Segments with effect from 1 January 2009. IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segments and to assess their performance.
Segment revenue analysis by country:
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Slovenia | 250,840 | 237,991 |
| Russia | 237,999 | 168,721 |
| Germany | 121,274 | 159,231 |
| France | 83,876 | 87,077 |
| Croatia | 16,478 | 20,853 |
| Romania | 7,534 | 9,375 |
| Other countries | 3,829 ____ |
13,704 ____ |
| 721,730 ____ |
696,952 ____ |
Sales represent amounts receivable (excluding excise and similar duties) for goods sold and services rendered.
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Foreign sales | 693,492 | 676,098 |
| Domestic sales | 28,238 ____ |
20,854 ____ |
| 721,730 ____ |
696,952 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Income from sale of assets | 3,493 | 67,992 |
| Income from sale of own shares | 2,941 | - |
| Rental income | 2,478 | 69 |
| Income from bonuses provided by suppliers | 2,698 | 4,786 |
| Income from recharged service costs | 1,830 | 4,794 |
| Income from consumption of own products, goods and services | 1,018 | 1,858 |
| Income from sale of inventories | - | 19,559 |
| Income from damages collected | 183 | 504 |
| Other operating income | 45 ____ |
5,763 ____ |
| 14,686 ____ |
105,325 ____ |
| 345,680 ____ |
320,854 ____ |
|
|---|---|---|
| Other expenses | 5,082 ____ |
6,964 ____ |
| Electricity | 14,538 | 19,760 |
| Direct materials | 326,060 | 294,130 |
| 31/12/2011 | 31/12/2010 |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Cost of goods sold | 24,082 | 59,988 |
| Cost of direct material sold | 1,162 | 2,193 |
| Cost of spare parts sold | 528 | 2,093 |
| Other costs of goods sold | 501 ____ |
897 ____ |
| 26,273 ____ |
65,171 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Net wages and salaries | 76,248 | 73,606 |
| Taxes and contributions out of salaries | 26,471 | 27,431 |
| Contributions on salaries | 21,280 | 20,585 |
| Provisions for bonuses to employees | 1,960 | - |
| Other staff costs | 16,678 ____ |
13,012 ____ |
| 142,637 ____ |
134,634 ____ |
Other staff costs comprise various supports, transportation costs, per diems, overnight accommodation costs and business travel costs, reimbursement of a portion of costs for the use of personal cars for business purposes and other business related costs.
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Depreciation | 32,163 | 36,109 |
| Amortisation | 17,319 ____ |
19,099 ____ |
| 49,482 ____ |
55,208 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Transport | 25,296 | 28,621 |
| Rental costs | 6,106 | 6,862 |
| Regular and preventive maintenance costs - machinery | 3,765 | 5,360 |
| Commissions | 2,149 | 2,829 |
| Forwarding and shipping costs | 1,121 | 1,396 |
| Telecommunications and information system costs | 1,108 | 1,275 |
| Communal fees | 1,181 | 1,155 |
| Water supply | 1,037 | 1,031 |
| Tool modification costs | 987 | 2,016 |
| Other expenses | 5,130 ____ |
9,314 ____ |
| 47,880 ____ |
59,859 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Temporary service costs - manufacture of tools | 40,848 | 10,842 |
| Professional service cost | 5,052 | 2,865 |
| Bank charges | 2,409 | 2,282 |
| Communal fees for the use of construction plots | 1,425 | 1,425 |
| Insurance premiums | 1,092 | 1,686 |
| Cost of goods provided free of charge | 805 | 1,309 |
| Entertainment | 783 | 350 |
| Other fees (Supervisory Board) | 607 | 284 |
| Customer complaints | 198 | 1,220 |
| Net book value of disposed intangible fixed assets | 27 | 1,199 |
| Gifts for employees' children | 574 | 227 |
| Professional training costs | 512 | 273 |
| Payment operation charges | 505 | 546 |
| Forest reproduction levies | 317 | 362 |
| Occupational Health and Safety service costs | 190 | 312 |
| Water management fee | 164 | 216 |
| Translation service costs | 175 | 181 |
| Net book value of disposed intangible fixed assets | 26 | 3,675 |
| Other non-material costs | 2,473 | 1,757 |
| Other external costs | 4,713 ____ |
6,452 ____ |
| 62,895 ____ |
37,463 ____ |
Most of other external costs comprise manufacturing of tools for the production of car spare parts per orders of the ultimate car manufacturers and include the cost of the tools, tool modification services, transportation and other handling charges.
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Property tax | 1,565 | 1,947 |
| Sale of assets | - | 54,887 |
| Sale of inventories | - | 19,055 |
| Other expenses | 5,901 ____ |
1,811 ____ |
| 7,466 ____ |
77,700 ____ |
| 2,842 ____ |
15,545 ____ |
|
|---|---|---|
| Provisions for tax disputes | - ____ |
5,320 ____ |
| Litigation provisions | 247 | 3,730 |
| Vacation accruals | 934 | 3,163 |
| Provisions under actuarial calculations | 1,661 | 3,332 |
| 31/12/2011 | 31/12/2010 |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Dividend income | 27,681 | 15,146 |
| Foreign exchange gains | 21,246 | 48,428 |
| Interest income | 6,418 | 4,846 |
| Other finance revenue | 3,180 ____ |
1,813 ____ |
| 58,525 ____ |
70,233 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Foreign exchange losses | 26,060 | 36,414 |
| Interest expense | 9,988 | 11,134 |
| Other finance costs | 4,162 ____ |
905 ____ |
| 40,210 ____ |
48,453 ____ |
Income tax comprises the following:
| 31/12/2011 | 31/12/2010 as | |
|---|---|---|
| restated | ||
| Current tax | 6,104 | 10,143 |
| Deferred tax | (223) ___ |
(771) ___ |
| 5,881 ___ |
9,372 ___ |
|
Deferred tax, as presented in the statement of financial position, is as follows:
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Balance at 1 January | 771 | - |
| Deferred tax assets recognised | 223 ___ |
771 ___ |
| Balance at 31 December | 994 ___ |
771 ___ |
| 2011 | Opening balance |
Credited / (Charged) to statement of comprehensive income |
Closing balance |
|---|---|---|---|
| Temporary differences: Provisions for long-service and termination benefits Balance at 31 December |
771 _ 771 _ |
223 _ 223 _ |
- 994 _ 994 _ |
| 2010 | Opening balance |
Credited / (Charged) to statement of comprehensive income |
Closing balance |
| Temporary differences: | - | ||
| Provisions for long-service and termination benefits | - ___ |
771 ___ |
771 ___ |
| Balance at 31 December | - ___ |
771 ___ |
771 ___ |
| 31/12/2011 | 31/12/2010 as restated |
|
|---|---|---|
| Group profit | 70,549 ___ |
59,643 ___ |
| Entertainment | 426 | 198 |
| 30 % of the cost of use of private cars | 378 | 445 |
| Taxable deficits | - | 16 |
| Costs of forced collection of taxes and other levies | 27 | - |
| Fines and penalties | 72 | 77 |
| Interest from related-party relationships | 2 | - |
| Written-off receivables | 261 | 1,163 |
| Provisions | 3,105 | 3,954 |
| Other taxable revenues | 1,962 ___ |
1,696 ___ |
| Tax base increasing items | 6,233 ___ |
7,549 ___ |
| Dividend income | (26,817) | - |
| Subsequent collection of written-off receivables | (101) | (241) |
| Other operating expenses from prior periods | (1,487) | - |
| Other non-taxable revenues | (39) | - |
| Government grants for training and education | (229) ___ |
(123) ___ |
| Tax base decreasing items | (28,673) ___ |
(364) ___ |
| Income tax base before the utilisation of tax losses brought forward | 48,109 | 66,828 |
| Tax losses brought forward | - ___ |
(4,605) ___ |
| Tax base | 48,109 ___ |
62,223 ___ |
| Tax at the weighted average rate | 9,345 | 10,143 |
| Tax reliefs | (3,241) ___ |
- ___ |
| Current tax liability | 6,104 ___ |
10,039 ___ |
In the preparation of the 2010 financial statements the Parent applied, based on the interpretation of the conditions specified by the Act, a lower tax rate of 3 percent instead of the 20 percent rate. For the lower corporate income tax rate to be applied, the applicable Act on the Promotion of Investments requires that two conditions are met in cumulative: the investment has to be realised and new jobs related to the investment have to opened without reducing the total number of employees. In the period subsequent to obtaining the incentive measure beneficiary status, the Company invested in the construction of manufacturing facilities, purchased new equipment (except for the painting line), opened the planned number of new jobs related to the investment, but the total number of employees was not increased compared to the crisis year of 2008 in which the Company became the beneficiary of the inventive measures. The resulting error from the prior period has been corrected.
Basic earnings per share are determined, by dividing the Group's net profit by the weighted average number of ordinary shares in issue during the year, excluding the average number of ordinary shares redeemed and held by the Company as treasury shares. There were no circumstances that would give rise to a dilution of the earnings per share reported above.
| 31/12/2011 | 31/12/2010 as restated |
|
|---|---|---|
| Net profit attributable to the Company shareholders | 64,668 | 54,255 |
| Weighted average number of shares | 4,195,841 ___ |
4,075,805 ___ |
| Basic earnings per share (in HRK) | 15.41 ___ |
13.31 ___ |
| Licences | Software | Projects | Total | |
|---|---|---|---|---|
| Cost | ||||
| Balance at 31 December 2009 | 67 | 2,743 | 100,009 | 102,819 |
| Additions | - | 365 | 6,598 | 6,963 |
| Disposals and retirements | - ___ |
- ____ |
(3,675) ____ |
(3,675) ____ |
| Balance at 31 December 2010 | 67 ___ |
3,108 ___ |
102,932 ___ |
106,107 ___ |
| Additions | - | 315 | 14,835 | 15,150 |
| Disposals and retirements | (12) ____ |
- ____ |
- ____ |
(12) ____ |
| Balance at 31 December 2011 | 55 ___ _ |
3,423 ___ _ |
117,767 ____ |
121,245 ___ _ |
| Accumulated depreciation | ||||
| Balance at 31 December 2009 | - | 393 | 43,037 | 43,440 |
| Charge for the year | - ____ |
305 ____ |
18,794 ____ |
19,099 ____ |
| Balance at 31 December 2010 | - ___ |
698 ___ |
61,841 ___ |
62,539 ___ |
| Charge for the year | - ____ |
629 ____ |
16,690 ____ |
17,319 ____ |
| Balance at 31 December 2011 | - ___ _ |
1,327 ___ _ |
78,531 ____ |
79,858 ___ _ |
| Net book value | ||||
| At 31 December 2011 | 55 ___ |
2,096 ___ |
39,236 ___ |
41,387 ___ |
| At 31 December 2010 | 67 ___ |
2,410 ___ |
41,091 ___ |
43,568 ___ |
Projects comprise investments in the development of new products that are expected to generate revenue in future periods. Consequently, the costs are amortised over the period in which the related economic benefits flow into the Group.
| Land | Buildings | Plant and equipment |
Assets under constructio n |
Other | Total | |
|---|---|---|---|---|---|---|
| Cost | ||||||
| Balance at 31 December 2009 | 124,603 | 244,680 | 372,637 | 12,811 | 440 | 755,171 |
| Additions | 2,017 | 28,988 | 10,873 | 53,071 | 1,390 | 96,339 |
| Transfer from assets under development |
8,573 | 33,230 | 18,485 | (62,086) | 1,798 | - |
| Disposals and retirements | (573) | (46,061) | (10,707) | - | (6) | (57,347) |
| Balance at 31 December 2010 | 134,620 | 260,837 | 391,288 | 3,796 | 3,622 | 794,163 |
| Additions | 759 | 22,194 | 15,776 | 17,055 | 263 | 56,047 |
| Transfer from assets under development |
- | 1,663 | 2,486 | (4,249) | 100 | - |
| Disposals and retirements | - | - | (1,310) | - | - | (1,310) |
| Balance at 31 December 2011 | 135,379 | 284,694 | 408,240 | 16,602 | 3,985 | 848,900 |
| Accumulated depreciation | ||||||
| Balance at 31 December 2009 Charge for the year 2010 |
- - |
51,621 3,240 |
190,666 32,631 |
- - |
348 238 |
242,635 36,109 |
| Balance at 31 December 2010 | - | 54,861 | 223,297 | - | 586 | 278,744 |
| Charge for the year 2011 | - | 4,319 | 27,167 | - | 677 | 32,163 |
| Balance at 31 December 2011 | - | 59,180 | 250,464 | - | 1,263 | 310,907 |
| Net book value | ||||||
| At 31 December 2011 | 135,379 | 225,514 | 157,776 | 16,602 | 2,722 | 537,993 |
| At 31 December 2010 | 134,620 | 205,976 | 167,991 | 3,796 | 3,036 | 515,419 |
At 31 December 2011, the net book value of tangible assets pledged as collateral with commercial banks amounts to HRK 254,165, and the balance of short-term and long-term loans secured by those assets is HRK 210,417.
| Name of associate | Principal activity | Country of incorporation and |
Ownership interest in % | Amount of equity investment, HRK'000 |
||
|---|---|---|---|---|---|---|
| business | 2011 | 2010 | 2011 | 2010 | ||
| EURO AUTO PLASTIC | Manufacture of other vehicle spare parts and |
|||||
| SYSTEMS | accessories Manufacture of other |
Mioveni, Romania | 50.00% | 50.00% | 66,778 | 50,786 |
| FAURECIA AD PLASTIK ROMANIA (FAAR) |
vehicle spare parts and accessories Manufacture of other |
Mioveni, Romania | 49.00% | 49.00% | 258 | 258 |
| FAURECIA ADP HOLDING |
vehicle spare parts and accessories |
Nanterre, France | 40.00% | 40.00% | 17,298 | 21,557 |
| 84,334 | 72,601 |
| Country of incorporation and |
Amount of equity investment |
Share in the result for the |
Amount of equity investment |
||
|---|---|---|---|---|---|
| Name of associate | business | year | Dividends paid | ||
| 31/12/2010 | 31/12/2011 | ||||
| EURO AUTO PLASTIC SYSTEMS |
Mioveni, Romania | 50,786 | 31,940 | 15,948 | 66,778 |
| FAURECIA AD PLASTIK ROMANIA (FAAR) |
Mioveni, Romania | 258 | - | - | 258 |
| FAURECIA ADP HOLDING | Nanterre, France | 21,557 | (4,259) | - | 17,298 |
| 72,601 | 27,681 | 15,948 | 84,334 |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Long-term loans to associates | 53,309 | 28,564 |
| Long-term loans to unrelated companies | 24,738 | 432 |
| Other financial assets | 64 | 64 |
| Current portion of long-term loan receivables | (2,839) ____ |
(432) ____ |
| 75,272 ____ |
28,628 ____ |
A long-term investment loan with a variable interest and maturity in 2014 was granted to an associate. Loan has been secured with adequate collaterals.
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Raw material and supplies on stock | 39,899 | 42,629 |
| Work in progress | 2,531 | 2,806 |
| Finished products | 11,093 | 8,624 |
| Merchandise | 19,473 ____ |
3,407 ____ |
| 72,996 ____ |
57,466 ____ |
| 155,946 ____ |
152,395 ____ |
|
|---|---|---|
| Impairment allowance on receivables | (12,040) ____ |
(11,458) ____ |
| Foreign trade receivables | 152,959 | 146,736 |
| Domestic trade receivables | 15,027 | 17,117 |
| 31/12/2011 | 31/12/2010 |
The average credit period on sales is 72 days. The Company has provided for all for all receivables handed over to the courts for collection, regardless of the past due period, as well as for all receivables that are past due and assessed as doubtful of collection.
The Company seeks and obtains from its domestic customers debentures as collaterals in the amount of the receivables.
Set out below is an analysis of major trade receivables:
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Revoz, Slovenia | 56,234 | 49,110 |
| Visteon Deutschland, Germany | 31,061 | 31,575 |
| OAO Avtovaz, Russia | 30,181 | 23,790 |
| Peugeot Citroen Automobiles, France | 5,689 | 5,931 |
| Renault SAS , France | 5,802 | 5,297 |
| Other debtors | 39,019 ____ |
42,905 ____ |
| 167,986 ____ |
158,608 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Balance at beginning of the year | 9,719 | 9,115 |
| Additionally impaired during the year | 598 | 697 |
| Amounts collected or eliminated during the year | (72) ____ |
(93) ____ |
| Total impairment allowance on domestic trade receivables | 10,245 ____ |
9,719 ____ |
| Balance at beginning of the year | 1,739 | 1,386 |
| Additionally impaired during the year | 200 | 1,074 |
| Amounts collected or eliminated during the year | (144) ____ |
(721) ____ |
| Total impairment allowance on foreign trade receivables | 1,795 ____ |
1,739 ____ |
| Total impairment allowance | 12,040 ____ |
11,458 ____ |
Movements in the impairment allowance on domestic trade receivables were as follows:
All receivables provided for are under litigation or included in bankruptcy estate. Ageing analysis of impaired receivables:
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| 0 - 731 days | 640 | 125 |
| Over 732 days | 11,400 ____ |
11,333 ____ |
| 12,040 ____ |
11,458 ____ |
Ageing analysis of receivables past due but not impaired:
| 8,481 ____ |
9,386 ____ |
|
|---|---|---|
| Over 365 days | 1,856 ____ |
1,636 ____ |
| 1 - 365 days | 6,625 | 7,750 |
| 31/12/2011 | 31/12/2010 |
| 31/12/2011 | 31/12/2010 |
|---|---|
| Trade receivables 4,549 |
3,034 |
| Interest receivable 6,911 ____ |
2,211 ____ |
| 11,460 ____ |
5,245 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Receivables from the State and state institutions institutions | 19,266 | 24,370 |
| Prepayments made | 22,845 | 20,588 |
| Due from employees | 736 | 932 |
| Other receivables | 2,588 ____ |
3,840 ____ |
| 45,435 ____ |
49,730 __ |
Amounts due from the State and state institutions comprise receivables from the State Budged in respect of VAT refund, refunds from the Croatian Health Insurance Fund and similar.
Foreign prepayments comprise prepayments made for purchases of production equipment and tools.
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Short-term investments in investment funds | 2,800 | 11,078 |
| Short-term loans to subsidiaries | 14,977 | - |
| Other short-term loans | 6,790 | - |
| Other deposits | 7,577 | 77 |
| Current portion of long-term loan receivables | 2,839 ____ |
432 ____ |
| 34,983 ____ |
11,587 __ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Current account balance | 7,512 | 9,562 |
| Deposits with a term of up to 3 months | 28,530 ____ |
55,389 ____ |
| 36,042 ____ |
64,951 ____ |
Accrued income in the amount of HRK 110,035 thousand (2010: HRK 69,250 thousand) represent amounts relating to the manufacture of tools for a known customer. Income from the manufacture of tools is recognised using the stage-of-completion method to determine the amount of income and costs attributable to a certain period.
| _ 116,165 _ |
_ 75,549 _ |
|
|---|---|---|
| Prepaid operating expenses | 2,916 | 2,899 |
| Other accrued income | 3,214 | 3,400 |
| Other accrued income on tools | 110,035 | 69,250 |
| 31/12/2011 | 31/12/2010 |
Subscribed capital amounts to HRK 419,958 thousand and consists of 4,199,580 shares, with a nominal value of HRK 100.00 per share (2010: HRK 419,958 thousand, 4,199,580 shares, with a nominal value of HRK 100 each). The shareholders with over 2 percent of the shares at 31 December 2011 were as follows:
| Number | Ownership | |||
|---|---|---|---|---|
| Shareholder | Headquarters | of shares | in % | Type of account |
| OAO Holding Autokomponenti | Saint Petersburg, Russia | 1,259,875 | 30.00% | Primary account |
| ADP-ESOP d.o.o. | Zagreb, Croatia | 219,312 | 5.22% | Primary account |
| PBZ d.d. | Zagreb, Croatia | 192,809 | 4.59% | Custody account |
| HYPO ALPE-ADRIA-BANK | ||||
| d.d./RAIFFEISEN MANDATORY | ||||
| PENSION FUND | Zagreb, Croatia | 175,502 | 4.18% | Pension fund |
| Bakić Nenad | Zagreb, Croatia | 126,968 | 3.02% | Primary account |
| Long-term: | |||
|---|---|---|---|
| 31 December 2011 |
31 December 2010 |
31 December 2011 |
31 December 2010 |
| - | - | 1,897 | 1,936 |
| 1,050 | - | 2,007 | 1,396 |
| 3,838 | 3,730 | - | - |
| - | 5,320 | - | - |
| 2,508 | 3,163 | 925 | - |
| 1,960 | - | - | - |
| 1,029 | - | - | - ____ |
| 10,385 | 12,213 | 4,829 | 3,332 ____ |
| _ _ |
Short-term: _ _ |
_ _ |
According to the Collective Agreement, the Company has the obligation to pay long-service (jubilee awards), retirement and other benefits to employees. The Company operates a defined benefit plan for qualifying employees. Retirement and long-service benefits are defined in the Union Agreement. No other post-retirement benefits are provided.
Long-service benefits are paid for full years of service in the month of the current year in which the service is determined as completed.
The present value of defined benefit obligations and the related current and past service cost have been determined using the Projected Credit Unit method.
Key assumptions used in calculating the required provisions are the discount rate of 6.21% and the rate of fluctuation of 1.07%.
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Long-term borrowings | 113,989 | 123,170 |
| Current portion of long-term borrowings | (34,147) ____ |
(30,339) ____ |
| 79,842 | 92,831 | |
| Other non-current liabilities | 69 ____ |
74 ____ |
| 79,911 ____ |
92,905 ____ |
Long-term borrowings comprise HBOR investment loans and bear interest at a rate of 4 percent, as well as longterm loans from commercial banks with interest rates ranging from 3.16 to 6 percent. AD Plastik d.d. services regularly all of its obligations under those borrowings, in line with the terms and conditions of the underlying loan agreements.
Movements in long-term borrowigs during the year:
| 2011 | 2010 | |
|---|---|---|
| Balance at 1 January | 123,170 | 153,194 |
| New loans raised | 20,000 | - |
| Amounts repaid | (29,182) | (30,024) |
| Long-term loans refinanced using short-term loans | - ____ |
- ____ |
| Total long-term borrowings | 113,988 ____ |
123,170 ____ |
| 121,247 ____ |
82,414 ____ |
|
|---|---|---|
| Foreign customers | 120,254 ____ |
79,933 ____ |
| Domestic customers | 993 | 2,481 |
| 31/12/2011 | 31/12/2010 |
Advances received from foreign customers represent cash advanced for ordered tools.
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Domestic trade payables | 17,018 | 16,741 |
| Foreign trade payables | 103,612 ____ |
76,407 ____ |
| 120,630 ____ |
93,148 ____ |
| 31/12/2011 | 31/12/2010 |
|---|---|
| 94,858 | 75,000 |
| 1,568 | 916 |
| 34,147 | 30,339 |
| 2 ____ |
2 ____ |
| 130,575 ____ |
106,257 ____ |
Short-term borrowings represent revolving facilities provided by commercial banks and short-term HBOR loans for export and import preparation, with an interest rate of 5 percent.
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| as restated | ||
| Due to the State and State institutions | 24,366 | 14,849 |
| Amounts due to employees | 3,163 | 6,553 |
| Dividends payable | 658 | 16 |
| Other current liabilities | 4 ____ |
333 ____ |
| 28,191 ____ |
21,751 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Due to the State and State institutions | 972 | 593 |
| Amounts due to employees | - | 56 |
| Other current liabilities ____ |
1,236 | 1,056 ____ |
| ____ | 2,208 | 1,705 ____ |
The Company's gearing ratio, expressed as the ratio of net debt to equity, can be expressed as follows:
| 31/12/2011 | 31/12/2010 as restated |
|
|---|---|---|
| Short-term borrowings | 130,575 | 106,257 |
| Long-term borrowings | 79,842 | 92,831 |
| Cash and cash equivalents | 36,042 ____ |
64,951 ____ |
| Net debt | 174,375 ____ |
134,137 ____ |
| Equity Net debt-to-equity ratio |
703,571 24.78% |
659,180 20.35% |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Financial assets | ||
| Loans and receivables | 331,421 | 268,054 |
| Financial assets at fair value through profit or loss | 10,300 | 11,154 |
| Cash and cash equivalents | 36,042 | 64,951 |
| Financial liabilities | ||
| Trade payables | 245,771 | 182,538 |
| Borrowings | 210,417 | 199,088 |
At the reporting date there are no significant concentrations of credit risk for loans and receivables designated at fair value through the statement of comprehensive income.
The Treasury function of the Group provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, fair value interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk.
The Company seeks to minimise the effects of these risks. The Group uses hedging instruments to hedge its exposure to currency risk on a part of the borrowings.
The largest markets on which the Group provides its services and sells its products comprise the EU market and the market of the Russian Federation. The management determines the prices of its products separately for domestic and foreign markets by reference to the market prices.
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates relative to the interest rate, which applies to the financial instrument. Interest rate cash flow risk is the risk that the interest cost of an instrument will fluctuate over time. The interest rate risk exposure is low, as there are no financial instruments at variable rates.
The Group is exposed to credit risk through loans and trade receivables. Loans are granted to its subsidiaries and as such credit risk is under the control of the Company. Trade receivables are presented net of allowance for bad and doubtful accounts.
The five largest customers of the Company are Revoz, Slovenia; Renault, France; Visteon, Germany, Peugeot Citroen Automobiles, France; and OAO Avtovaz, Russia. Revenues generated by the sales to these business partners represent 92 percent of the total sales.
It is the policy of the Group to transact with financially sound companies where there is no risk of collection.
The Group undertakes certain transactions denominated in foreign currencies. Hence, exposures to exchange rate fluctuations arise. The carrying amounts of the Group"s foreign-currency denominated monetary assets and monetary liabilities at the reporting date are provided in the table below using exchange rates of the Croatian National Bank:
| Assets | Liabilities | Net position | ||||
|---|---|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |
| EUR | 166,588 | 201,526 | 258,740 | 234,776 | (92,152) | (33,250) |
| RUR | 68,287 | 67,726 | 443 | 27,028 | 67,844 | 40,698 |
| USD | 337 | 645 | 307 | 1,406 | 30 | (761) |
| GBP | 13 | 9 | 21 | - | (8) | 9 |
| CHF | - | 17 | 20 | (17) | (20) | |
| 235,225 | 269,906 | 259,528 | 263,230 | (24,303) | 6,676 |
The Group is mainly exposed to the countries using euro as their currency. The following table details the Company"s sensitivity to a 2-percent decrease of the Croatian kuna in 2011 and 2010 against the euro. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end. A negative number below indicates a decrease in profit where the Croatian kuna changes against the relevant currency for the percentage specified above.
| EUR impact | ||||
|---|---|---|---|---|
| 2011 | 2010 | |||
| Change in exchange differences | (1,837) | 814 |
Ultimate responsibility for liquidity risk management rests with the Management Board. The Group manages its liquidity using banking facilities (overdrafts) and by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
The following tables detail the Group"s remaining contractual maturity for its non-derivative financial assets and liabilities. The tables have been drawn up based on the undiscounted cash flows of financial assets and liabilities based on the earliest date on which the Group can require payment i.e. can be required to pay.
| Up to 1 month |
1 to 3 months |
3 months to 1 year |
1 to 5 years |
Over 5 years |
Total | ||
|---|---|---|---|---|---|---|---|
| 2011 | Average interest rate |
||||||
| Assets | |||||||
| Non-interest | 79,769 | 89,141 | 35,237 | 299,904 | |||
| bearing | 11,423 | 84,334 | |||||
| Interest bearing | 11.81% | 6,538 ___ |
2,501 ___ |
36,380 | 83,132 _ _ ___ |
14,205 | 142,756 ___ |
| 86,307 ___ |
91,642 ___ |
71,617 | 94,555 _ _ ___ |
98,539 | 442,660 ___ |
||
| Liabilities | |||||||
| Non-interest bearing |
29,608 | 59,730 | 13,404 | 96,662 | - | 199,404 | |
| Interest bearing | 4.30% | 20,689 __ |
8,244 ___ |
102,390 ___ |
80,940 __ |
5,870 __ |
218,133 ___ |
| _ 50,297 ___ |
67,974 ___ |
115,794 | _ 177,602 _ _ ___ |
_ 5,870 |
417,537 ___ |
||
| 2010 | |||||||
| Assets | |||||||
| Non-interest bearing |
131,502 | 80,066 | 533 | - | - | 212,101 | |
| Interest bearing | 11% | 11,155 ___ |
774 ___ |
2,864 | 39,021 _ _ ___ |
- | 53,814 ___ |
| 142,657 ___ |
80,840 ___ |
3,397 | 39,021 _ _ ___ |
- | 265,915 ___ |
||
| Liabilities | |||||||
| Non-interest bearing |
59,880 | 39,836 | - | - | - | 99,716 | |
| Interest bearing | 4.7 % | 3,917 ___ |
2,764 ___ |
82,468 ___ |
84,824 __ |
17,100 __ |
191,073 ___ |
| 63,797 ___ |
42,600 ___ |
82,468 ___ |
84,824 ________ |
17,100 ________ |
290,789 ___ |
||
Financial instruments held to maturity in the ordinary course of business are carried at the lower of cost and net amount less repaid portion.
The fair value represents the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction, except in the event of a forced sale or liquidation. The fair value of a financial instrument is its quoted market price, or the amount obtained using the discounted cash flow method.
At 31 December 2011, the carrying amounts of cash, receivables, short-term liabilities, accrued expenses, short-term borrowings and other financial instruments approximate their fair values due to the short-term maturity of these financial instruments.
These financial statements were approved by the Management Board of AD Plastik d.d. and authorised for issue on 23 April 2012.
For AD Plastik d.d. Solin:
Josip Boban President of the Management Board
i) AD Plastik d.d., Solin Unconsolidated financial statements and Independent Auditor's Report For the year ended 31 December 2011
Pursuant to the Accounting Act of the Republic of Croatia, the Management is responsible for ensuring that financial statements are prepared for each financial year in accordance with International Financial Reporting Standards ("the IFRSs"), which give a true and fair view of the financial position and results of operations of AD Plastik d.d., Solin (the "Company") for that year.
The Company has also prepared its consolidated financial statements in accordance with International Financial Reporting Standards.
After making appropriate enquiries, the Management has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Management continues to prepare the financial statements on a going-concern basis.
In preparing those financial statements, the responsibilities of the Management Board of the Company include ensuring that:
The Management Board of the Company is responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Company and must also ensure that the financial statements comply with the Accounting Act. The Management is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Signed on behalf of the Management by:
| l) PROFIT AND LOSS ACCOUNT(in thousands of kuna) | Notes | 31/12/2011 | 31/12/2010 as restated |
|---|---|---|---|
| Sales | 6 | 557,692 | 541,305 |
| Other income | 7 | 11,008 ____ |
20,568 ____ |
| Total income | 568,700 ____ |
561,873 ____ |
|
| Decrease in the value of work in progress and finished products | 1,625 | 1,925 | |
| Cost of raw material and supplies | 8 | (263,554) | (274,840) |
| Cost of goods sold | 9 | (26,270) | (23,389) |
| Service costs | 10 | (40,362) | (46,545) |
| Staff costs | 11 | (106,797) | (106,002) |
| Depreciation and amortisation | 12 | (39,625) | (41,073) |
| Other operating expenses | 13 | (63,380) | (39,787) |
| Provisions for risks and charges | 14 | (737) ____ |
(10,225) ____ |
| Total operating expenses | (539,100) ____ |
(539,936) ____ |
|
| Profit from operations | 29,600 ____ |
21,937 ____ |
|
| Finance revenue | 15 | 61,472 | 34,660 |
| Finance cost | 16 | (36,215) ____ |
(35,820) ____ |
| Profit / (loss) from financing activities | 25,257 ____ |
(1,160) ____ |
|
| Profit before taxation | 54,857 ____ |
20,777 ____ |
|
| Income tax expense | 17 | (3,021) ____ |
(4,004) ____ |
| Profit for the year | 51,836 ____ |
16,773 ____ |
|
| Other comprehensive income | - | 1,696 | |
| Total comprehensive income | 51,836 ____ |
18,469 ____ |
| m) UNCONSOLIDATED BALANCE SHEET (in thousands | Notes | 31/12/2010 | 01/01/2010 | |
|---|---|---|---|---|
| of kuna) | 31/12/2011 | as restated | as restated | |
| ASSETS | ||||
| Non-current assets | ||||
| Intangible assets | 19 | 36,409 | 41,069 | 54,660 |
| Tangible assets | 20 | 425,254 | 440,520 | 414,535 |
| Investments in subsidiaries and associates | 21 | 127,259 | 127,240 | 93,018 |
| Other financial assets | 22 | 128,182 | 66,016 | 44,423 |
| Deferred tax assets | 17 | 888 ____ |
667 ____ |
- ____ |
| Total non-current assets | 717,992 ____ |
675,512 ____ |
606,636 ____ |
|
| Current assets | ||||
| Inventories | 23 | 34,962 | 37,165 | 37,297 |
| Trade receivables | 24 | 122,953 | 149,383 | 196,482 |
| Other receivables | 25 | 49,698 | 37,412 | 31,164 |
| Current financial assets | 26 | 37,713 | 19,037 | 41,616 |
| Cash and cash equivalents | 27 | 29,719 | 58,618 | 50,771 |
| Prepaid expenses and accrued income | 28 | 116,103 ____ |
75,527 ____ |
58.540 ____ |
| Total current assets | 391,148 ____ |
377,142 ____ |
415,870 ____ |
|
| TOTAL ASSETS | 1,109,140 ____ |
1,052,654 ____ |
1,022,506 ____ |
| Annual Year Report of Group AD Plastik d.d | ||||
|---|---|---|---|---|
| m) UNCONSOLIDATED BALANCE SHEET (in | 31/12/2010 | 01/01/2010 | ||
| thousands of kuna) | 31/12/2011 | as restated | as restated | |
| Notes | ||||
| Equity | ||||
| Share capital | 29 | 419,958 | 419,958 | 419,958 |
| Reserves | 200,063 | 202.866 | 196,075 | |
| Profit for the year | 51,836 | 16,773 _ _ ____ |
10,601 | |
| Total equity | 671,857 | 639.597 _ _ ____ |
626,634 | |
| Long-term provisions | 30 | 3,388 | 3,332 | - |
| Long-term borrowings | 31 | 79,842 _ _ |
92,831 | 124,239 |
| Total non-current liabilities | 83,230 | 96,163 _ _ ____ |
124,239 | |
| Advances received | 32 | 109,718 | 80,430 | 55,658 |
| Trade payables | 33 | 84,720 | 66,327 | 82,274 |
| Short-term borrowings | 34 | 125,336 | 143,223 | 116,673 |
| Other current liabilities | 35 | 22,715 | 18,316 | 15,678 |
| Short-term provisions | 30 | 9,356 | 6,893 | - |
| Accrued expenses and deferred income | 36 | 2,208 | 1,705 _ _ ____ |
1,350 |
| Total current liabilities | 354,053 | 316,894 _ _ ____ |
271,633 | |
| Total liabilities | 437,283 | 413,057 _ _ ____ |
395,872 | |
| TOTAL EQUITY AND LIABILITIES | 1,109,140 | 1,052,654 _ _ ____ |
1,022,506 | |
| n) UNCONSOLIDATED REPORT ON CHANGES OF CAPITAL (in thousands of kuna) |
Share capital |
Capital reserves |
Legal reserves |
Reserves for own shares |
Treasury shares |
Retained earnings |
Total |
|---|---|---|---|---|---|---|---|
| Balance at 31 December 2009 |
419,958 | 189,131 | 4,984 | 11,763 | (11,763) | 17,292 | 631,365 |
| Correction of the result for the current year (see Note 5) |
- | - | - | - | - | (4,731) | (4,731) |
| Balance at 31 December 2009 - as restated |
419,958 | 189,131 | 4,984 | 11,763 | (11,763) | 12,561 | 626,634 |
| Allocation of the prior-year profit |
- | - | 1,145 | - | - | (1,145) | - |
| Dividends paid | - | - | - | - | - | (6,103) | (6,103) |
| Revaluation of fixed assets | - | 1,696 | - | - | - | - | 1,696 |
| Valuation of own shares | - | - | - | 194 | (194) | - | - |
| Distributions to employees | - | 597 | - | (597) | 597 | - | 597 |
| Profit for the year | - | - | - | - | - | 20,743 | 20,743 |
| Balance at 31 December 2010 |
419,958 | 191,424 | 6,129 | 11,360 | (11,360) | 26,056 | 643,567 |
| Correction of the result for the current year (see Note |
|||||||
| 5) | - | - | - | - | - | (3,970) | (3,970) |
| Balance at 31 December 2010 - as restated |
419,958 | 191,424 | 6,129 | 11,360 | (11,360) | 22,086 | 639,597 |
| Dividends paid | - | - | - | - | - | (30,672) | (30,672) |
| Valuation of own shares |
- | - | - | 114 | (114) | - | - |
| Distributions to employees | - | 1,608 | - | (1,962) | 1,962 | 354 | 1,962 |
| Sale of own shares | - | 229 | - | (9,134) | 9,134 | 8,905 | 9,134 |
| Profit for the year | - | - | - | - | - | 51,836 | 51,836 |
| Balance at 31 December 2011 |
419,958 | 193,261 | 6,129 | 378 | (378) | 52,509 | 671,857 |
| O) UNCONSOLIDATED CASH FLOW REPORT | ||
|---|---|---|
| Cash flows from operating activities | 31/12/2011 | 31/12/2010 |
| Profit for the year | 51,836 | 20,743 |
| Income tax expense | 3,021 | 4,004 |
| Depreciation and amortisation | 39,651 | 41,073 |
| Loss from sale of assets | 515 | 6,689 |
| Impairment allowance on trade receivables | 582 | 957 |
| Interest expense | 9,433 | 11,475 |
| Interest income | (11,521) | (10,119) |
| Increase in long-term and short-term provisions | 2,519 ____ |
10,225 ____ |
| Profit from operations before working capital changes | 96,036 ____ |
85,047 ____ |
| Decrease in inventories | 2,203 | 132 |
| Decrease in trade receivables | 25,848 | 46,142 |
| (Increase)/decrease in amounts due from the state | (1,493) | 6,399 |
| Increase in other receivables | (10,793) | (12,647) |
| Increase/(decrease) in trade payables | 18,393 | (15,947) |
| Increase in advances received | 29,288 | 24,772 |
| Increase/(decrease) in other current liabilities | 21,396 | (4,625) |
| Increase in accrued expenses and deferred income | 503 | 355 |
| Increase in prepaid expenses | (40,576) | (16,987) |
| Income tax paid | (1,170) | " |
| Payments made under a tax decision | (4,731) | - |
| Interest paid | (8,994) | (12,256) |
| Cash generated from/(used in) operations | _ 125,910 _ |
100,385 ____ |
| Investments in subsidiaries | (19) | (34,222) |
| Interest received | 11,521 | 10,119 |
| Purchases of property, plant and equipment, and intangible assets | (20,240) | (58,459) |
| Investments in Funds | (8,278) | (11,078) |
| Short-term loans | (6,990) | 33,657 |
| Long-term loans | (65,574) ____ |
(21,593) ____ |
| Cash (used in)/generated from investing activities | (89,580) ____ |
(81,576) ____ |
| Dividends paid | (30,672) | (6,103) |
| Proceeds from short-term borrowings | 139,229 | 44,342 |
| Repayment of short-term borrowings | (173,786) | (49,201) |
| Cash generated from financing activities | (65,229) ____ |
(10,962) ____ |
| Net cash flow for the year | (28,899) ____ |
7,847 ____ |
| At 1 January | 58,618 | 50,771 |
| Net cash inflow | (28,899) | 7,847 |
| At 31 December | 29,719 ____ |
58,618 ____ |
The following amendments to the existing standards issued by the International Accounting Standards Board and interpretations issued by the International Financial Reporting Interpretations Committee are effective for the current period:
The adoption of the amended and revised Standards and Interpretations has not lead to any changes in the Company's accounting policies.
At the date of authorization of these financial statements the following Standards, revisions and Interpretations were in issue but not yet effective:
The Company has elected not to adopt these Standards, revisions and Interpretations in advance of their effective dates and anticipates that the adoption of these standards, revisions and interpretations will have no material impact on the financial statements of the Company in the period of initial application.
Set out below are the principal accounting policies consistently applied in the preparation of the financial statements for the current and prior years.
These financial statements are prepared in accordance with International Financial Reporting Standards and Croatian laws.
The financial statements of the Company have been prepared on the historical cost basis, in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board and Croatian laws.
The Company maintains its accounting records in the Croatian language, in Croatian Kuna and in accordance with Croatian laws and the accounting principles and practices observed by enterprises in Croatia.
The preparation of financial statements in conformity with International Financial Reporting Standards (IFRSs) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 4.
The financial statements of the Company represent aggregate amounts of assets, liabilities, capital and reserves of the Company as of 31 December 2011, and the results of operations for the year then ended. Some of the financial captions have been reclassified in these financial statements compared to the prior year, as the management is of the opinion that the reclassification provides a better presentation of the financial statements as a whole. Consolidated financial statements AD Plastik d.d. and subsidiaries for the year ended 31 December 2011 have been issued on 23rd April 2012.
The Company also prepares its consolidated financial statements in accordance with International Financial Reporting Standards, which include the financial statements of the Company as the parent and the financial statements of the subsidiaries controlled by the Company. In these financial statements, investments in entities controlled by the Company or in which the Company has significant influence are carried at cost less impairment if any. For a full understanding of the financial positions of the Company and its subsidiaries as a group, and the results of their operations and their cash flows for the year, users are advised to read the consolidated financial statements of the Group AD Plastik d.d. ("the Group"). Details of the investments are presented in Note 21.
Revenue is measured at the fair value of the consideration received or receivable for products, goods or services sold in the regular course of operations.
Revenues are stated net of value added tax, estimated returns, discounts and rebates. Revenue is recognised when the amount of the revenue can be measured reliably and when future economic benefits are expected to flow into the Company.
Product sales are recognised when the products are delivered to, and accepted by the customer and when the collectability of the receivables is virtually certain.
Income from the manufacture of tools for a known customer
Income from the manufacture of tools is recognised using the stage-of-completion method to determine the amount of income and costs attributable to a certain period.
Interest income is recognised on a time basis, using the effective interest method. Interest earned on balances with commercial banks (demand and term deposits) is credited to income for the period as it accrues. Interest on trade debtors is recognised as income upon settlement.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are included in profit or loss in the period in which they are incurred.
Transactions in foreign currencies are translated into Croatian kunas at the rates of exchange in effect at the dates of the transactions. Cash, receivables and payables denominated in foreign currencies are retranslated at the rates of exchange in effect at the date of the statement of financial position. Gains and losses arising on translation are included in the statement of comprehensive income for the year. At 31 December 2011, the official exchange rate of the Croatian kuna against 1 euro (EUR) was HRK 7.53042 (31 December 2010: HRK 7.385173 for EUR 1).
Income tax expense represents the sum of the tax currently payable and deferred tax. Income tax is recognised in the income statement, except where it relates to items recognised directly in equity, in which case it is also recognised in equity. Current tax represents tax expected to be paid on the basis of taxable profit for the year, using the tax rate enacted at the balance sheet date, adjusted by appropriate prior-period items.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates in effect at the balance sheet date.
The measurement of deferred tax liabilities and assets reflects the amount that the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred taxes are not discounted and are classified in the balance sheet as non-current assets and/or non-current liabilities. Deferred tax assets are recognised only to the extent that it is probable that the related tax benefit will be realised. At each balance sheet date, the Company reviews the unrecognised potential tax assets and the carrying amount of the recognised tax assets.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities.
In the case of a business combination, the tax effect is taken into account in calculating goodwill or in determining the excess of the acquirer"s interest in the net fair value of the acquiree"s identifiable assets, liabilities and contingent liabilities over cost.
Tangible fixed assets are recognised initially at cost and subsequently at cost less accumulated depreciation. The initial cost of property, plant and equipment comprises its purchase price, including import duties and nonrefundable sales taxes and any directly attributable costs of bringing an asset to its working condition and location for its intended use. Maintenance and repairs, replacements and improvements of minor importance are expensed as incurred. Where it is obvious that expenses incurred resulted in increase of expected future economic benefits to be derived from the use of an item of tangible or intangible assets in excess of the originally assessed standard performance of the asset, they are added to the carrying amount of the asset. Gains or losses on the retirement or disposal of tangible fixed assets are included in the statement of comprehensive income in the period they occur. Depreciation commences on putting an asset into use. Depreciation is provided so as to write down the cost or revalued amount of an asset over the estimated useful life of the asset using the straight-line method as follows:
| Depreciation rates in 2011 | Depreciation rates in 2010 | |
|---|---|---|
| 3. Tangible assets | ||
| Buildings | 1.50 | 1.50 |
| Machinery | 7.00 | 7.00 |
| Tools, furniture, office and laboratory equipment and accessories, measuring and control instruments |
10.00 | 10.00 |
| Vehicles | 20.00 | 20.00 |
| IT equipment | 20.00 | 20.00 |
| Other | 10.00 | 10.00 |
| 4. Intangible assets | 20.00 | 20.00 |
At each reporting date the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is an indication that the assets may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cashgenerating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
An associate is an entity over which the Company has significant influence but which is neither a subsidiary nor a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.
The results and assets and liabilities of associates are incorporated in these financial statements using the equity cost of accounting.
Inventories of raw material and spare parts are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average cost method. Net realisable value represents the estimated selling price in the ordinary course of business less all variable selling costs.
Cost of work in progress and finished products comprises the cost of raw material and supplies, direct labour and other costs and the portion of overheads directly attributable to work in progress.
Small inventory is written off when put in use.
The cost of product inventories i.e. the production costs is based on direct material used, the cost of which is determined using the weighted average cost method, then direct labour costs, and fixed overheads at the actual level of production which approximates the normal capacities, as well as variable overheads that are based on the actual use of the production capacities.
Merchandise on stock is recognised at purchase cost.
Trade debtors and prepayments are carried at nominal amounts less an appropriate allowance for impairment for uncollectible amounts.
Impairment is made whenever there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, the probability of bankruptcy proceedings at the debtor, or default or delinquency in payment are considered objective evidence of impairment. The amount of the impairment loss is determined as the difference between the asset"s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The impairment losses on trade receivables are recognised in the income statement within 'Expenses'.
Management provides for doubtful receivables based on a review of the overall ageing of all receivables and a specific review of significant individual amounts receivable. The allowance for amounts doubtful of collection is charged to the statement of comprehensive income for the year.
Cash comprises account balances with banks, cash in hand, deposits and securities at call or with maturities of less than three months.
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable (i.e. more likely than not) that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where the effect of discounting is material, the amount of the provision is the present value of the expenditures expected to be required to settle the obligation, determined using the estimated risk free interest rate as the discount rate. Where discounting is used, the reversal of such discounting in each year is recognised as a financial expense and the carrying amount of the provision increases in each year to reflect the passage of time.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the date of the statement of financial position, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
In the normal course of business the Company makes payments, through salary deductions,to mandatory pension funds on behalf of its employees as required by law. All contributions made to the mandatory pension funds are recorded as salary expense when incurred. The Company does not have any other retirement benefit plan and, consequently, has no other obligations in respect of the retirement benefits for its employees. In addition, the Company is not obliged to provide any other post-employment benefits.
Termination benefits are payable when employment is terminated by the Company before the normal retirement date. The Company recognises its termination benefit obligations in accordance with the applicable Union Agreement.
Benefits falling due more than 12 months after the reporting date are discounted to their present value.
For defined benefit retirement benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each reporting date. Actual gains and losses are recognised in the period in which they arise.
Past service cost is recognised immediately to the extent that the benefits are already vested. Otherwise, it is amortised on a straight-line basis over certain period until the benefits become vested.
Financial assets and financial liabilities included in the accompanying financial statements consist of cash and cash equivalents, marketable securities, trade and other receivables, trade and other payables, long-term receivables, loans, borrowings and investments. The details of the recognition and measurement of those items are presented in the corresponding policies.
Investments are recognised and derecognised on a trade date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs, except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value.
The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.
Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.
Financial assets available for sale are classified as current assets if the management intends to realise those assets within 12 months from the date of the statement of financial position. Every purchase and sale transaction in recognised on the settlement date. Investments are recognised initially at cost, which represents the fair value of the consideration given, including transaction costs. Available-for-sale investments are subsequently measured at market value, with no deduction of transaction costs, by reference to their market prices prevailing at the date of the statement of financial position. Investments whose fair values cannot be determined are carried at cost and reviewed for impairment at each reporting date.
The effective interest method is a method of calculating the amortised cost of a financial asset or liability, and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial asset or liability, or, where appropriate, a shorter period.
Financial assets are assessed for indicators of impairment at each date of the statement of financial position. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted. For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset"s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate.
The carrying amount of a financial asset is reduced through the use of an allowance account. When a trade receivable is uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account.
The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire; or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement.
Contingent liabilities have not been recognised in these financial statements. They are not disclosed unless the possibility of outflow of resources embodying economic benefits is remote. A contingent asset is not recognised in the financial statements but it is disclosed when the inflow of economic benefits becomes probable.
Events after the date of the statement of financial position that provide additional information about the Company"s position at that date (adjusting events) are reflected in the financial statements. Post-year-end events that are not adjusting events are disclosed in the notes when material.
In the application of the Company"s accounting policies, which are described in Note 3, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on past experience and other factors that are considered to be relevant. Actual results may differ from those estimates.
The estimates and underlying assumptions are continually reviewed. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of revision and future periods if the revision affects both current and future periods.
Areas of estimation include, but are not limited to, depreciation periods and residual values of property, plant and equipment, and of intangible assets, value adjustment of inventories, impairment of receivables, and litigation provisions. The key areas of estimation in applying the Company"s accounting policies that had a most significant impact on the amounts recognized in the financial statements were as follows:
As described in the Note 3.8, the Company reviews the estimated useful lives of property, plant and equipment at the end of each annual reporting period. Property, plant and equipment are recognised initially at cost, less accumulated depreciation.
Availability of taxable profits against which the deferred tax assets could be recognised
A deferred tax asset is recognized only to the extent that it is probable that the related tax benefit will be realised. In determining the amount of deferred taxes that can be recognised significant judgements are required, which are based on the probable quantification of time and level of future taxable profits, together with the future tax planning strategy. In 2011, deferred tax assets on available tax differences were recognised.
Impairment allowance on trade receivables
Management provides for doubtful receivables based on a review of the overall ageing of all receivables and a specific review of significant individual amounts receivable. The allowance for amounts doubtful of collection is charged to the statement of comprehensive income for the year.
Actuarial estimates used in determining the retirement benefits
The cost of defined benefits is determined using actuarial estimates. Actuarial estimates involve assumptions about discount rates, future salary increases and the mortality or fluctuation rates. Because of the long-term nature of those plans, there is uncertainty surrounding those estimates.
During 2011 the Company corrected accounting errors it subsequently identified in it"s corporate income tax calculations for the years 2006 up to and inclusive of 2010. The Company charged the effect of the correction of the accounting error to Retained Earnings balance at 31 December 2010.
The corrections for the years 2006 up to inclusive 2009 were made by reducing the balance of other reserves at 1 January 2010, and increasing the income tax liability for a total amount of HRK 4,731 thousand.
In the 2010 financial statements, the income tax was corrected by reducing the net profit for the year by HRK 3,970 thousand.
The total effect of the resulting restatement on the financial statements for the year ended 31 December 2009 is as follows:
| Notes | As originally reported |
As restated | The resulting increase/ (decrease) |
|
|---|---|---|---|---|
| Equity | ||||
| Share capital | 29 | 419.958 | 419,958 | - |
| Reserves | 200.806 | 196,075 | (4,731) | |
| Profit for the year | 10.601 ____ |
10,601 ____ |
- ____ |
|
| Total equity | 631.365 ____ |
626,634 ____ |
(4,731) ____ |
|
| Advances received | 32 | 55.658 | 55,658 | - |
| Trade payables | 33 | 82.274 | 82,274 | - |
| Short-term borrowings | 34 | 116.673 | 116,673 | - |
| Other current liabilities | 35 | 10.947 | 15,678 | 4,731 |
| Short-term provisions | 30 | - | - | - |
| Accrued expenses and deferred income | 36 | 1.350 ____ |
1,350 ____ |
- ____ |
| Total current liabilities | 266.902 ____ |
271,633 ____ |
4,731) ____ |
The total effect of the resulting restatement on the financial statements for the year ended 31 December 2010 is as follows:
| Notes | As originally reported |
As restated | The resulting increase/ (decrease) |
|
|---|---|---|---|---|
| Equity Share capital |
29 | 419,958 | 419,958 | - |
| Reserves | 207,597 | 202,866 | (4,731) | |
| Profit for the year | 20,743 ____ |
16,773 ____ |
3,970 ____ |
|
| Total equity | 648,298 ____ |
644,327 ____ |
(8,701) ____ |
|
| Advances received | 32 | 80,430 | 80,430 | - |
| Trade payables | 33 | 66,327 | 66,327 | - |
| Short-term borrowings | 34 | 143,223 | 143,223 | - |
| Other current liabilities | 35 | 9,615 | 18,316 | 8,701 |
| Short-term provisions | 30 | 6,893 | 6,893 | - |
| Accrued expenses and deferred income | 36 | 1,705 ____ |
1,705 ____ |
- ____ |
| Total current liabilities | 308,193 ____ |
316,894 ____ |
8,701 ____ |
| Notes | As originally reported |
As restated | The resulting increase/ (decrease) |
|
|---|---|---|---|---|
| Profit before taxation | 20,777 ____ |
20,777 ____ |
- ____ |
|
| Income tax expense | 17 | 34 ____ |
4,004 ____ |
3,970 ____ |
| Profit for the year | 20,743 ____ |
16,773 ____ |
(3,970) ____ |
|
| Other comprehensive income | 1,696 | 1,696 | - | |
| Total comprehensive income | 22,439 ____ |
18,469 ____ |
(3,970) ____ |
Sales represent amounts receivable (excluding excise and similar duties) for goods sold and services rendered.
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Foreign sales | 538,265 | 520,452 |
| Domestic sales | 19,427 ____ |
20,853 ____ |
| 557,692 ____ |
541,305 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Income from sale of Property, pland and equipment | 3,751 | 9,506 |
| Income from sale of own shares | 2,941 | - |
| Income from bonuses provided by suppliers | 2,698 | 4,786 |
| Income from consumption of own products, goods and services | 1,018 | 1,858 |
| Income from damages collected | 183 | 504 |
| Other operating income | 417 ____ |
3,914 ____ |
| 11,008 ____ |
20,568 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Direct materials | 137,148 | 144,017 |
| Indirect materials | 93,010 | 92,913 |
| Electricity | 12,163 | 13,350 |
| Direct packaging | 10,349 | 10,147 |
| Preventive maintenance of machinery | 2,014 | 2,075 |
| Gas for heating in the production process | 1,732 | 2,099 |
| Other materials | 1,239 | 2,067 |
| Regular maintenance of machinery | 818 | 1,208 |
| Other expenses | 5,081 ____ |
6,964 ____ |
| 263,554 ____ |
274,840 ____ |
Cost of goods sold in the amount of HRK 26,270 thousand (2010: HRK 23,389 thousand) represents the cost of merchandise on stock sold to third parties.
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Re-export costs | 23,132 | 16,246 |
| Cost of direct material sold | 1,162 | 2,193 |
| Cost of merchandise | 946 | 1,960 |
| Cost of spare parts sold | 528 | 2,093 |
| Other costs of goods sold | 502 ____ |
897 ____ |
| 26,270 ____ |
23,389 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Transport | 20,496 | 23,855 |
| Rental costs | 5,184 | 5,341 |
| Regular and preventive maintenance costs - machinery | 3,692 | 4,409 |
| Commissions | 2,149 | 2,829 |
| Tool modification costs | 987 | 2,016 |
| Telecommunications and information systems | 937 | 1,158 |
| Communal fees | 992 | 1,145 |
| Water supply | 950 | 967 |
| Forwarding and shipping costs | 893 | 1,162 |
| Regular and preventive maintenance costs - buildings | 587 | 608 |
| Other expenses | 3,496 ____ |
3,055 ____ |
| 40,362 ____ |
46,545 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Net wages and salaries | 54,258 | 55,794 |
| Taxes and contributions out of salaries | 22,607 | 23,248 |
| Contributions on salaries | 13,564 | 13,948 |
| Provision for bonuses | 1,960 | - |
| Other staff costs | 14,408 ____ |
13,012 ____ |
| 106,797 ____ |
106,002 ____ |
|
Other staff costs comprise per diems, overnight accommodation costs and business travel costs, reimbursement of a transporation costs to work and other business related costs.
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Depreciation | 22,727 | 22,442 |
| Amortisation | 16,898 ____ |
18,631 ____ |
| 39,625 ____ |
41,073 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Temporary service costs - tools | 40,848 | 10,842 |
| Professional service cost | 4,850 | 2,350 |
| Other non-material costs | 2,473 | 1,757 |
| Bank charges | 1,750 | 1,559 |
| Communal fees for the use of construction plots | 1,425 | 1,425 |
| Insurance premiums | 1,092 | 1,686 |
| Cost of goods provided free of charge | 805 | 1,309 |
| Entertainment | 595 | 270 |
| Gifts for employees' children | 574 | 227 |
| Other fees (Supervisory Board) | 607 | 284 |
| Payment operation charges | 505 | 546 |
| Forest reproduction levies | 317 | 362 |
| Professional training costs | 287 | 140 |
| Customer complaints | 198 | 1,220 |
| Occupational Health and Safety service costs | 190 | 223 |
| Translation service costs | 175 | 181 |
| Water management fee | 164 | 216 |
| Net book value of disposed tangible fixed assets | 27 | 6,619 |
| Net book value of disposed intangible fixed assets | 26 | 1,924 |
| Other expenses | 6,472 ____ |
6,647 ____ |
| 63,380 ____ |
39,787 ____ |
|
Most of other external costs comprise manufacturing of tools for the production of car spare parts per orders of the ultimate car manufacturers and include the cost of the tools, tool modification services, transportation and other handling charges.
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Provisions under actuarial calculations | 1,145 | 3,332 |
| Vacation accruals | (655) | 3,163 |
| Litigation provisions | 247 ____ |
3,730 ____ |
| 737 ____ |
10,225 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Dividend income | 26,817 | - |
| Foreign exchange gains | 20,131 | 22,728 |
| Interest income | 11,521 | 10,119 |
| Other finance revenue | 3,003 ____ |
1,813 ____ |
| 61,472 ____ |
34,660 ____ |
| 31/12/2010 |
|---|
| 23,440 |
| 11,475 |
| 905 ____ |
| 35,820 ____ |
| 31/12/2011 22,851 9,433 3,931 _ 36,215 _ |
Income tax comprises the following:
| 31/12/2011 | 31/12/2010 as | |
|---|---|---|
| restated | ||
| Current tax | 3,242 | 4,671 |
| Deferred tax | (221) ___ |
(667) ___ |
| 3,021 ___ |
4,004 ___ |
|
Deferred tax, as presented in the statement of financial position, is as follows:
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Balance at 1 January | 667 | - |
| Deferred tax assets recognised | 221 ___ |
667 ___ |
| Balance at 31 December | 888 ___ |
667 ___ |
Deferred tax assets arise from the following:
| 2011 | Opening balance |
Credited / (Charged) to statement of comprehensive income |
Closing balance |
|---|---|---|---|
| Temporary differences: Provisions for long-service and termination benefits Balance at 31 December |
667 _ 667 _ |
221 _ 221 _ |
- 888 _ 888 _ |
| 2010 | Opening balance |
Credited / (Charged) to statement of comprehensive income |
Closing balance |
| Temporary differences: | - | ||
| Provisions for long-service and termination benefits | - ___ |
667 ___ |
667 ___ |
| Balance at 31 December | - ___ |
667 ___ |
667 ___ |
| 31/12/2011 | 31/12/2010 as restated |
|
|---|---|---|
| Profit for the year | 54,857 ___ |
20,777 ___ |
| 70% of entertainment expenses | 426 | 198 |
| 30 % of the cost of use of private cars | 378 | 445 |
| Taxable deficits | - | 16 |
| Costs of forced collection of taxes and other levies | 27 | - |
| Fines and penalties | 72 | 77 |
| Interest from related-party relationships | 2 | - |
| Written-off receivables | 261 | 1,163 |
| Provisions | 3,105 | 3,954 |
| Other taxable revenues | 1,962 ___ |
1,696 ___ |
| Tax base increasing items (PD Return Form) | 6,233 ___ |
7,549 ___ |
| Dividend income | (26,817) | - |
| Subsequent collection of written-off receivables | (101) | (241) |
| Other operating expenses from prior periods | (1,487) | - |
| Other non-taxable revenues | (39) | - |
| Government grants for training and education | (229) ___ |
(123) ___ |
| Tax base decreasing items (PD Return Form) | (28,673) ___ |
(364) ___ |
| Income tax base before the utilisation of tax losses brought forward | 32,417 | 27,962 |
| Tax losses brought forward | - ___ |
(4,605) ___ |
| Tax base | 32,417 ___ |
23,357 ___ |
| Tax at the rate of 20% | 6,483 | 4,671 |
| Tax reliefs | (3,241) ___ |
- ___ |
| Current tax liability | 3,242 ___ |
4,671 ___ |
Movements in long-term borrowings during the year:
| 2011 | 2010 | |
|---|---|---|
| Balance at 1/1/ | - | 4,605 |
| Utilisation of tax losses brought forward | - ___ |
(4,605) ___ |
| Balance at 31/12 | - ___ |
- ___ |
The income tax rate effective in the Republic of Croatia for the years 2011 and 2010 was 20%.
The Company is entitled to incentive measures, which it utilised in 2011 in accordance with the Act on the Promotion of Investments.
The Ministry of Economy, Labour and Entrepreneurship issued on 6 April 2012 a certificate certifying that the Company, as the Applicant, meets the terms and conditions specified in the Act on the Promotion of Investments (Official Gazette No. 138/06) and is awarded the status of the incentive measure beneficiary.
Under the Investment Project reported in the period of the incentive measure beneficiary status (2011), the Company invested into the plastic packaging project for foods and opened new jobs in connection with the investment project.
In the preparation of the 2010 financial statements the Company applied, based on the interpretation of the conditions specified by the Act, a lower tax rate of 3 percent instead of the 20 percent rate. For the lower corporate income tax rate to be applied, the applicable Act on the Promotion of Investments requires that two conditions are met in cumulative: the investment has to be realised and new jobs related to the investment have to opened without reducing the total number of employees. In the period subsequent to obtaining the incentive measure beneficiary status, the Company invested in the construction of manufacturing facilities, purchased new equipment (except for the painting plant), opened the planned number of new jobs related to the investment, but the total number of employees was not increased compared to the crisis year of 2008 in which the Company became the beneficiary of the inventive measures. Due to this prior period has been corrected.
There is no formal procedure in Croatia for determining the final taxes upon filing the corporate income and value-added tax returns. However, tax returns are subject to inspection by the Tax Authorities at any time over the next three years from the end of the year for which the tax returns have been filed.
Deferred tax assets recognised arise on the temporary differences in provisions for retirement and long-service benefits.
Basic earnings per share are determined, by dividing the Company's net profit by the weighted average number of ordinary shares in issue during the year, excluding the average number of ordinary shares redeemed and held by the Company as treasury shares. There were no circumstances that would give rise to a dilution of the earnings per share reported above.
| 31/12/2011 | 31/12/2010 as restated |
|
|---|---|---|
| Net profit attributable to the Company shareholders | 51,836 | 16,773 |
| Weighted average number of shares | 4,195,841 ___ |
4,075,805 ___ |
| Basic earnings per share (in HRK) | 12.35 ___ |
4.12 ___ |
| Cost | Licences | Software | Projects | Total |
|---|---|---|---|---|
| Balance at 31 December 2009 | 67 | 393 | 96,170 | 96,630 |
| Additions | - | 365 | 6,598 | 6,963 |
| Disposals and retirements | - | - | (1,923) | (1,923) |
| Balance at 31 December 2010 | 67 ___ |
758 ___ |
100,845 ___ |
101,670 ___ |
| Additions | - | 315 | 11,961 | 12,276 |
| Disposals and retirements | (12) ____ |
- ____ |
- ____ |
(12) ____ |
| Balance at 31 December 2011 | 55 ____ |
1,073 ____ |
112,806 ____ |
113,934 ____ |
| Accumulated amortisation | ___ | |||
| Balance at 31 December 2009 | - | 393 | 41,577 | 41,970 |
| Charge for the year | - | 30 | 18,601 | 18,631 |
| Balance at 31 December 2010 | ___ | 423 ___ |
60,178 ___ |
60,601 ___ |
| Charge for the year | ____ | 234 ____ |
16,690 ____ |
16,924 ____ |
| Balance at 31 December 2011 | ____ | 657 ____ |
76,868 ____ |
77,525 ____ |
| Net book value | ||||
| At 31 December 2011 | 55 ___ |
416 ___ |
35,938 ___ |
36,409 ___ |
| At 31 December 2010 | 67 ___ |
335 ___ |
40,667 ___ |
41,069 ___ |
Projects comprise investments in the development of new products that are expected to generate revenue in future periods. Consequently, the costs are amortised over the period in which the related economic benefits flow into the Company.
| Land | Buildings | Plant and equipment |
Assets under construction |
Other | Total | |
|---|---|---|---|---|---|---|
| Cost | ||||||
| Balance at 31 December 2009 | 124,030 | 197,907 | 306,399 | 3,644 | 440 | 632,420 |
| Additions | 2,017 | - | - | 51,176 | - | 53,193 |
| Transfer from assets under development | 8,573 | 27,120 | 16,626 | (54,097) | 1,778 | - |
| Disposals and retirements | - | - | (14,608) | - | (3) | (14,611) |
| Balance at 31 December 2010 | 134,620 | 225,027 | 308,417 | 723 | 2,215 | 671,002 |
| Additions | 759 | - | - | 7,205 | - | 7,964 |
| Transfer from assets under development | - | 1,663 | 2,486 | (4,249) | 100 | - |
| Disposals and retirements | - | - | (1,310) | - | - | (1,310) |
| Balance at 31 December 2011 | 135,379 | 226,690 | 309,593 | 3,679 | 2,315 | 677,656 |
| Accumulated depreciation Balance at 31 December 2009 |
- | 51,588 | 165,949 | - | 348 | 217,885 |
| Charge for the year | - | 2,976 | 19,338 | - | 128 | 22,442 |
| Disposals and retirements | - | - | (9,842) | - | (3) | (9,845) |
| Balance at 31 December 2010 | - | 54,564 | 175,445 | - | 473 | 230,482 |
| Charge for the year | - | 3,390 | 18,765 | - | 572 | 22,727 |
| Disposals and retirements | - | - | (807) | - | - | (807) |
| Balance at 31 December 2011 | - | 57,954 | 193,403 | - | 1,045 | 252,402 |
| Net book value | ||||||
| At 31 December 2011 | 135,379 | 168,736 | 116,190 | 3,679 | 1,270 | 425,254 |
| At 31 December 2010 | 134,620 | 170,463 | 132,972 | 723 | 1,742 | 440,520 |
At 31 December 2011, the net book value of tangible assets pledged as collateral with commercial banks amounts to HRK 254,165, and the balance of short-term and long-term loans secured by those assets is HRK 205,178 thousand.
| Name of subsidiary | Principal activity | Country of incorporation and |
Ownership interest in % | Amount of equity investment, HRK'000 |
||
|---|---|---|---|---|---|---|
| business | 2011 | 2010 | 2011 | 2010 | ||
| AD PLASTIK d.o.o. | Manufacture of other vehicle spare parts and accessories Manufacture of other |
Novo Mesto, Slovenia |
100.00% | 100.00% | 204 | 204 |
| ZAO PHR | vehicle spare parts and accessories Manufacture of other |
Samara, Russian Federation |
99.95% | 99.90% | 13,465 | 13,463 |
| ZAO ADP LUGA | vehicle spare parts and accessories Business and other |
Luga, Russian Federation |
100.00% | 100.00% | 61,012 | 61,012 |
| SG PLASTIK d.o.o. | management consultancy Manufacture of other |
Solin, Republic of Croatia |
100.00% | 50.00% | 250 | 250 |
| ADP d.o.o. | vehicle spare parts and accessories |
Mladenovac, Serbia | 100.00% | 100.00% | 17 | - |
| 74,948 | 74,929 |
| Name of associate | Principal activity | Country of Ownership interest in % incorporation and |
Amount of equity investment, HRK'000 |
|||
|---|---|---|---|---|---|---|
| business | 2011 | 2010 | 2011 | 2010 | ||
| EURO AUTO PLASTIC SYSTEMS |
Manufacture of other vehicle spare parts and accessories |
Mioveni, Romania | 50.00% | 50.00% | 21,755 | 21,755 |
| FAURECIA AD PLASTIK ROMANIA (FAAR) |
Manufacture of other vehicle spare parts and accessories |
Mioveni, Romania | 49.00% | 49.00% | 336 | 336 |
| FAURECIA ADP HOLDING |
Manufacture of other vehicle spare parts and accessories |
Nanterre, France | 40.00% | 40.00% | 30,220 | 30,220 |
| 52,311 | 52,311 | |||||
| Total investments in subsidiaries and associates | 127,259 | 127,240 |
Based on the Decision of the Commercial Court of 31 August 2011, SG Plastik d.o.o. became a subsidiary fully owned by AD Plastik d.d.
Set out below is a summary of financial information about the subsidiaries:
| AD PLASTIK d.o.o., Novo Mesto, Slovenia | 31/12/2011 | 31/12/2010 |
|---|---|---|
| Total assets | 68,539 | 61,325 |
| Total liabilities | 65,598 | 59,306 |
| Net assets | 2,941 ____ |
2,019 ____ |
| Share in the net assets of the associate | 100.00% ____ |
100.00% ____ |
| ZAO PHR, Samara, Russian Federation | 31/12/2011 | 31/12/2010 |
|---|---|---|
| Total assets | 156,203 | 126,810 |
| Total liabilities | 128,453 | 98,129 |
| Net assets | 27,750 ____ |
28,681 ____ |
| Share in the net assets of the associate | 99.95% ____ |
99.90% ____ |
| ZAO ADP LUGA, Luga, Russian Federation | 31/12/2011 | 31/12/2010 |
| Total assets | 44,898 | 48,924 |
| Total liabilities | 1,845 | 487 |
| Net assets | 43,053 ____ |
48,437 ____ |
| Share in the net assets of the associate | 100.00% | 100.00% |
| SG PLASTIK d.o.o., Solin, Croatia | 31/12/2011 | 31/12/2010 |
| Total assets | 512 | 2,816 |
| Total liabilities | 1 | 2,311 |
| Net assets | 511 ____ |
505 ____ |
| Share in the net assets of the associate | 100.00% | 50.00% |
| ADP d.o.o, Mladenovac, Serbia | ||
| Total assets | 15,587 | - |
| Total liabilities | 15,601 | - |
| Net assets | (14) 31/12/2011 ____ |
- 31/12/2010 ____ |
| Share in the net assets of the associate | 100.00% ____ |
- ____ |
ADP d.o.o. is a new company established in the Republic of Serbia upon its registration on 6 December 2011 at the Primary Court in Kragujevac under the entry number OV-II-1697/11.
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Long-term loans to subsidiaries | 53,478 | 44,839 |
| Long-term loans to associates | 53,309 | 28,564 |
| Long-term loans to unrelated companies | 24,739 | 432 |
| Other financial assets | 64 | 64 |
| Current portion of long-term loan receivables | (3,408) ____ |
(7,883) ____ |
| 128,182 ____ |
66,016 ____ |
Long-term loans to subsidiaries and associates comprise long-term investment loans which bear interest at a rate of 7 percent for loans denominated in euro and 12.4 percent on loans with a currency protection clause, repayable over a period from four to eight years.
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Raw material and supplies on stock | 18,049 | 21,218 |
| Finished products | 8,850 | 7,184 |
| Spare parts | 5,646 | 6,309 |
| Work in progress | 2,333 | 2,430 |
| Small items and packaging | 4 | 12 |
| Merchandise | 80 ____ |
12 ____ |
| 34,962 ____ |
37,165 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Foreign trade receivables | 119,966 | 143,724 |
| Domestic trade receivables | 15,027 | 17,117 |
| Impairment allowance on receivables | (12,040) ____ |
(11,458) ____ |
| 122,953 ____ |
149,383 ____ |
The average credit period on sales is 61 days. The Company has provided for all for all sued debtors, regardless of the past due period, as well as for all receivables that are past due and assessed as doubtful of collection.
The Company seeks and obtains from its domestic customers debentures as collaterals in the amount of the receivables.
Set out below is an analysis of major trade receivables:
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Visteon Deutschland, Germany | 30,358 | 31,575 |
| Revoz, Slovenia | 24,535 | 55,385 |
| Hella Saturnus Slovenia | 5,703 | 4,641 |
| Euro Auto Plastic Systems, Romania | 4,549 | 2,506 |
| Ford, Germany | 3,225 | 2,389 |
| Mecaplast, France | 2,041 | 2,219 |
| Belje, Croatia | 1,291 | 2,527 |
| Peugeot Citroen Automobiles, France | 1,017 | 1,325 |
| Zvijezda; Croatia | 815 | 1,080 |
| Other debtors | 61,459 ____ |
57,194 ____ |
| 134,993 ____ |
160,841 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Balance at beginning of the year | 9,719 | 9,115 |
| Additionally impaired during the year | 598 | 697 |
| Amounts collected or eliminated during the year | (72) ____ |
(93) ____ |
| Total impairment allowance on domestic trade receivables | 10,245 ____ |
9,719 ____ |
| Balance at beginning of the year | 1,739 | 1,386 |
| Additionally impaired during the year | 200 | 1,074 |
| Amounts collected or eliminated during the year | (144) ____ |
(721) ____ |
| Total impairment allowance on foreign trade receivables | 1,795 ____ |
1,739 ____ |
| Total impairment allowance | 12,040 ____ |
11,458 ____ |
All receivables provided against are under litigation or included in bankruptcy estate. Ageing analysis of impaired receivables:
| 0 - 731 days 640 |
125 |
|---|---|
| Over 1827 days 11,400 ____ |
11,333 ____ |
| 12,040 ____ |
11,458 ____ |
Ageing analysis of receivables past due but not impaired:
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| 1 - 365 days | 24,880 | 26,683 |
| Over 365 days | 1,892 ____ |
4,700 ____ |
| 26,772 ____ |
31,383 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Trade receivables | 51,729 | 80,475 |
| Interest receivable | 402 ____ |
- ____ |
| 52,131 ____ |
80,475 ____ |
|
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Due from the state | 16,926 | 15,433 |
| Foreign prepayments made | 15,099 | 15,583 |
| Domestic prepayments made | 7,746 | 5,004 |
| Amounts due from employees | 410 | 930 |
| Other receivables | 9,517 ____ |
462 ____ |
| 49,698 ____ |
37,412 __ |
Amounts due from the State and state institutions comprise receivables from the State Budged in respect of VAT refund, refunds from the Croatian Health Insurance Fund and similar. Domestic and foreign prepayments comprise prepayments made for purchases of production equipment and tools.
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Short-term loans to subsidiaries | 14,977 | - |
| Other deposits | 7,505 | 4 |
| Other short-term loans | 6,790 | - |
| Current portion of long-term loan receivables | 3,408 | 7,883 |
| Short-term investments in investment funds | 2,800 | 11,078 |
| Short-term loans to subsidiaries | 2,161 | - |
| Transit guarantee deposit funds | 72 ____ |
72 ____ |
| 37,713 ____ |
19,037 __ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Current account balance | 587 | 221 |
| Foreign account balance | 587 | 3,002 |
| Transitory account | (4) | - |
| Cash in hand | 19 | 6 |
| Deposits with a term of up to 3 months | 28,530 ____ |
55,389 ____ |
| 29,719 ____ |
58,618 ____ |
Accrued income in the amount of HRK 110,035 thousand (2010: HRK 69,250 thousand) relates to the manufacture of tools for a known customer. Income from the manufacture of tools is recognised using the stage-of-completion method to determine the amount of income and costs attributable to a certain period.
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Other accrued income on tools | 110,035 | 69,250 |
| Other accrued income | 3,214 | 3,400 |
| Prepaid operating expenses | 2,854 ____ |
2,877 ____ |
| 116,103 ____ |
75,527 ____ |
Subscribed capital amounts to HRK 419,958 thousand and consists of 4,199,580 shares, with a nominal value of HRK 100.00 per share (2010: HRK 419,958 thousand, 4,199,580 shares, with a nominal value of HRK 100 each). The shareholders with over 2 percent of the shares at 31 December 2011 were as follows:
| Number of | Ownership | |||
|---|---|---|---|---|
| Shareholder | Headquarters | shares | in % | Type of account |
| OAO Holding | Saint Petersburg, Russia | 1,259,875 | 30.00% | Primary account |
| ADP-ESOP d.o.o. | Zagreb, Croatia | 219,312 | 5.22% | Primary account |
| PBZ d.d. | Zagreb, Croatia | 192,809 | 4.59% | Custody account |
| HYPO ALPE-ADRIA-BANK | ||||
| d.d./RAIFFEISEN MANDATORY | ||||
| PENSION FUND | Zagreb, Croatia | 175,502 | 4.18% | Pension fund |
| Bakić Nenad | Zagreb, Croatia | 126,969 | 3.02% | Primary account |
| Total: | 1,974,467 |
| Short-term: | Long-term: | |||
|---|---|---|---|---|
| 31 December 31 December 2011 2010 |
31 December 2011 |
31 December 2010 |
||
| Jubilee awards (long-service benefits) | - | - | 1,897 | 1,936 |
| Termination benefits | 1,050 | - | 1,491 | 1,396 |
| Legal actions | 3,838 | 3,730 | - | - |
| Vacation accrual | 2,508 | 3,163 | - | - |
| Bonuses to employees | 1,960 ____ |
- ____ |
- ____ |
- ____ |
| 9,356 ____ |
6,893 ____ |
3,388 ____ |
3,332 ____ |
| Jubilee awards (long service benefits) |
Termination benefits |
Legal actions |
Vacation accrual |
Bonuses | Total | |
|---|---|---|---|---|---|---|
| Balance at 1 January 2011 |
1,936 | 1,396 | 3,730 | 3,163 | - | 10,225 |
| Credited/(charged) to statement of comprehensive income Increase/(decrease) in |
||||||
| provisions | (39) ____ |
1,145 | 108 _ _ _ _ ____ |
(655) | 1,960 | 1,469 |
| Balance at 31 December 2011 |
1,897 ____ |
2,541 | 3,838 _ _ _ _ ____ |
2,508 | 1,960 | 11,694 |
According to the Union Agreement, the Company has the obligation to pay long-service (jubilee awards), retirement and other benefits to employees. The Company operates a defined benefit plan for qualifying employees. Retirement and long-service benefits are defined in the Union Agreement. No other post-retirement benefits are provided.
Long-service benefits are paid for full years of service in the month of the current year in which the service is determined as completed.
The present value of defined benefit obligations and the related current and past service cost have been determined using the Projected Credit Unit method.
Key assumptions used in calculating the required provisions are the discount rate of 6.21% and the rate of fluctuation of 1.07%.
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Long-term borrowings | 113,988 ____ |
123,170 ____ |
| 113,988 | 123,170 | |
| Current portion of long-term borrowings | ||
| (34,146) ____ |
(30,339) ____ |
|
| Total long-term borrowings | 79,842 ____ |
92,831 ____ |
Long-term borrowings comprise HBOR investment loans and bear interest at a rate of 4 percent, as well as longterm loans from commercial banks with interest rates ranging from 4 to 6,1 percent. AD Plastik d.d. services regularly all of its obligations under those borrowings, in line with the terms and conditions of the underlying loan agreements.
Movements in long-term borrowings during the year:
| 2011 | 2010 | |
|---|---|---|
| Balance at 1 January | 123,170 | 153,194 |
| New loans raised | 20,000 | - |
| Amounts repaid | (29,182) ____ |
(30,024) ____ |
| Total long-term borrowings | 113,988 ____ |
123,170 ____ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Domestic customers | 993 | 2,481 |
| Foreign customers | 108,725 ____ |
77,949 ____ |
| 109,718 ____ |
80,430 ____ |
|
| 33 TRADE PAYABLES |
||
| 31/12/2011 | 31/12/2010 | |
| Foreign trade payables | 67,702 | 49,586 |
| Domestic trade payables | 17,018 ____ |
16,741 ____ |
| 84,720 ____ |
66,327 ____ |
| 125,336 ____ |
143,223 ____ |
|
|---|---|---|
| Other short-term financial liabilities | - ____ |
2 ____ |
| Short-term borrowings - interest payable | 1,568 | 1,261 |
| Current portion of long-term borrowings | 34,147 | 30,339 |
| Short-term borrowings - principal payable | 89,621 | 111,621 |
| 31/12/2011 | 31/12/2010 | |
Short-term loans represent revolving facilities provided by commercial banks and short-term HBOR loans for export and import preparation, with the interest rate of 5 percent.
| 2011. | 2010. | |
|---|---|---|
| Balance at 1 January | 143.223 | 116.673 |
| New loans raised | 118.229 | 103.325 |
| Amounts repaid | (136.116) ____ |
(76.775) ____ |
| Total short term loans | 125.336 ____ |
143.223 ____ |
| 31/12/2011 | 31/12/2010, | 31/12/2010 | |
|---|---|---|---|
| as restated | |||
| Due to the State and State institutions | 17,596 | 8,346 | 4,376 |
| Amounts due to employees | 5,080 | 5,227 | 5,227 |
| Other current liabilities | 39 | 12 _ _ ____ |
12 |
| 22,715 | 13,585 _ _ ____ |
9,615 |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Due to the State and State institutions | 972 | 593 |
| Amounts due to employees | - | 56 |
| Other current liabilities ____ |
1,236 | 1,056 ____ |
| ____ | 2,208 | 1,705 ____ |
The transactions carried out with related companies are summarized below:
| Trade receivables and payables | Receivables | Liabilities | ||
|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | |
| AD PLASTIK d.o.o. , Slovenia | 17,366 | 48,472 | 8 | 14 |
| ZAO PHR, Russia | 34,765 | 76,841 | 212 | 289 |
| ZAO ADP LUGA , Russia | - | - | - | 36,966 |
| SG PLASTIK d.o.o., Croatia | - | 528 | - | - |
| ADP d.o.o., Serbia | - _ _ |
- | - ____ |
- ____ |
| 52,131 _ _ |
125,841 | 220 ____ |
37,269 ____ |
|
| Trading transactions | ||||
| Income | Expenses | |||
| Operating income and expenses | 2011 | 2010 | 2011 | 2010 |
| AD PLASTIK d.o.o. , Slovenia | 157,589 | 156,820 | 202 | 94 |
| ZAO PHR, Russia | 49,967 | 25,192 | 2,590 | 2,534 |
| ZAO ADP LUGA , Russia | - | 13,688 | - | 929 |
| SG PLASTIK d.o.o. Croatia | 4 | 2,956 | - | - |
| ADP d.o.o. Serbia | - | - | - | - |
| _ _ | ____ | ____ |
| 2011 | 2010 | 2011 | 2010 |
|---|---|---|---|
| 461 | 1,300 | 282 | 609 |
| 15,967 | 7,225 | 3,522 | 1,581 |
| 4,975 | 4,880 | 4,480 | 3,383 |
| - | - | - | - |
| - | - | - | - ____ |
| 21,403 | 13,405 | 8,284 | 5,573 ____ |
| Income _ _ _ _ |
Expenses _ _ |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Salaries | 9,142 ____ |
7,789 ____ |
| 9,142 ____ |
7,789 ____ |
The Company's gearing ratio, expressed as the ratio of net debt to equity, can be expressed as follows:
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Short-term borrowings | 125,336 | 143,223 |
| Long-term borrowings | 79,842 | 92,831 |
| Cash and cash equivalents | 29,719 ____ |
58,618 ____ |
| Net debt | 175,459 | 177,436 |
| ____ | ____ | |
| Equity | 671,857 | 644,328 |
| Net debt-to-equity ratio | 26.12% | 27.54% |
| 31/12/2011 | 31/12/2010 | |
|---|---|---|
| Financial assets | 478,597 | 442,272 |
| Investments in subsidiaries and associates | 127,259 | 127,240 |
| Loans | 128,182 | 73,899 |
| Trade receivables | 122,953 | 149,383 |
| Other receivables | 60,185 | 22,055 |
| Financial assets at fair value through profit or loss (statement of | 10,300 | 11,078 |
| comprehensive income) | ||
| Cash | 29,718 | 58,617 |
| Financial liabilities | 404,735 | 388,050 |
| Loans | 205,178 | 236,054 |
| Trade payables | 199,557 | 151,996 |
At the reporting date there are no significant concentrations of credit risk for loans and receivables designated at fair value through the statement of comprehensive income.
Company"s Treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, fair value interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk.
The Company seeks to minimise the effects of these risks. The Company does not enter into, or trade in financial instruments, including derivative financial instruments, for speculative purposes.
The largest markets on which the Company provides its services and sells its products comprise the EU market and the market of the Russian Federation. The management determines the prices of its products separately for domestic and foreign markets by reference to the market prices.
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates relative to the interest rate, which applies to the financial instrument. Interest rate cash flow risk is the risk that the interest cost of an instrument will fluctuate over time. The interest rate risk exposure is low, as there are no financial instruments at variable rates.
The Company is exposed to credit risk through loans and trade receivables. Loans are granted to its subsidiaries and as such credit risk is under the control of the Company. Trade receivables are presented net of allowance for bad and doubtful accounts.
The six largest customers of the Company are AD Plastik, Slovenia, Visteon Germany, Hella Saturnus Slovenia, Revoz Slovenia, Peugeot France, and Ford Motor Germany. Revenues generated by the sales to these business partners represent 92 percent of the total sales.
It is the policy of the Company to transact with financially sound companies where there is no risk of collection.
The Company undertakes certain transactions denominated in foreign currencies. Hence, exposures to exchange rate fluctuations arise. The carrying amounts of the Company"s foreign-currency denominated monetary assets and monetary liabilities at the reporting date are provided in the table below using exchange rates of the Croatian National Bank:
| At 31 December | Assets | Liabilities | Net position | |||
|---|---|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |
| EUR | 207,968 | 270,178 | 219,139 | 224,246 | (11,171) | 45,932 |
| RUR | 83,105 | 28,619 | 32,412 | 36,971 | 50,693 | (8,352) |
| USD | 337 | 645 | 307 | 1,406 | 30 | (761) |
| GBP | 13 | 9 | 21 | - | (8) | 9 |
| CHF | - | - | 17 | 20 | (17) | (20) |
| _ | _ | __ | __ | _ | _ | |
| 291,423 | 299,451 | 251,896 | 262,643 | 39,527 | 36,808 | |
| _ | _ | __ | __ | _ | __ |
The Company is mainly exposed to the countries using euro as their currency. The following table details the Company"s sensitivity to a 2-percent decrease of the Croatian kuna in 2011 and 2010 against the euro. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end. A negative number below indicates a decrease in profit where the Croatian kuna changes against the relevant currency for the percentage specified above.
| EUR impact | |||
|---|---|---|---|
| 2011 | 2010 | ||
| Change in exchange differences | (223) | 918 |
Ultimate responsibility for liquidity risk management rests with the Management Board. The Company manages its liquidity using banking facilities (overdrafts) and by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
The following tables detail the Company"s remaining contractual maturity for its non-derivative financial assets and liabilities. The tables have been drawn up based on the undiscounted cash flows of financial assets and liabilities based on the earliest date on which the Company can require payment i.e. can be required to pay.
| Up to 1 month |
1 to 3 months |
3 months to 1 year |
1 to 5 years |
Over 5 years |
Total | ||
|---|---|---|---|---|---|---|---|
| 2011 | Average interest rate |
||||||
| Assets | |||||||
| Non-interest | |||||||
| bearing | 76,987 | 83,876 | 24,580 | - | 127,259 | 312,702 | |
| Interest bearing | 9.96% | 7,180 ___ |
8,410 ___ |
54,805 | 124,281 _ _ ___ |
21,312 | 215,988 ___ |
| 84,167 ___ |
92,286 ___ |
79,385 | 124,281 _ _ ___ |
148,571 | 528,690 ___ |
||
| Liabilities | |||||||
| Non-interest | |||||||
| bearing | 29,608 | 59,730 | 13,404 | 96,662 | - | 199,404 | |
| Interest bearing | 4.53% | 22,257 __ |
8,244 ___ |
102,390 ___ |
80,940 __ |
5,870 __ |
219,701 ___ |
| _ 51,865 ___ |
67,974 ___ |
115,794 | _ 177,602 _ _ ___ |
_ 5,870 |
419,105 ___ |
||
| 2010 | Average interest rate |
||||||
| Assets | |||||||
| Non-interest | |||||||
| bearing | 127,306 | 69,210 | 11,485 | - | 127,240 | 335,241 | |
| Interest bearing | 11% | - ___ |
3,817 ___ |
23,451 | 76,690 _ _ ___ |
11,357 | 115,315 ___ |
| 127,306 ___ |
73,027 ___ |
34,936 | 76,690 _ _ ___ |
138,597 | 400,556 ___ |
||
| Liabilities | |||||||
| Non-interest | |||||||
| bearing | 40,527 | 31,030 | - | - | - | 71,557 | |
| Interest bearing | 4.7 % | 3,917 ___ |
27,875 ___ |
98,585 ___ |
84,735 __ |
17,026 __ |
232,138 ___ |
| 44,444 ___ |
58,905 ___ |
98,585 | _ 84,735 _ _ ___ |
_ 17,026 |
303,695 ___ |
38.9. Fair value of financial instruments
Financial instruments held to maturity in the ordinary course of business are carried at the lower of cost and net amount less repaid portion.
The fair value represents the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction, except in the event of a forced sale or liquidation. The fair value of a financial instrument is its quoted market price, or the amount obtained using the discounted cash flow method.
At 31 December 2011, the carrying amounts of cash, receivables, short-term liabilities, accrued expenses, short-term borrowings and other financial instruments approximate their fair values due to the short-term maturity of these financial instruments.
These financial statements were approved by the Management Board of AD Plastik d.d. and authorised for issue on 23 April 2012.
For AD Plastik d.d. Solin:
Josip Boban President of the Management Board
Pursuant to clause 300 d. Companies Act and clause 29 of AD PLASTIK`s Inc., Solin, Statue, the Supervisory Board of AD PLASTIK dd Solin, OIB: 48351740621, on 31/05/2012. year brings
| 1. Balance with the sum of assets and liabilities of kn 1,109,140,157.00 |
|||
|---|---|---|---|
| 2. Second Profit and loss data: | |||
| -Total revenues | kn 630,826,453.00 | ||
| - Total expenditure | kn 575,970,310.00 | ||
| - Profit before taxation of | kn 54,856,143.00 |
||
| - Income tax | kn 3,020,441.00 |
||
| - Profit for the year | kn 51,835,702.00 |
||
| 3. Statement of Cash Flows for 2011. year | |||
| with data on the Net decrease in cash and | |||
| cash equivalents of | kn 2,041,192.00 | ||
| 4. Notes to Financial Statements |
II. Acceptance of the Consolidated Financial Statements of Group AD PLASTIK for 2011. year as follows:
| 1. Balance with the sum of assets and liabilities of | kn 1,201,548,169.00 | |
|---|---|---|
| 2. Profit and loss data: | ||
| - Total revenues of | kn 799,200,540.00 | |
| - Total expenditure | kn 728,651,458.00 | |
| - Profit before taxation of | kn | 70,549,082.00 |
| - Income tax | kn | 5,880,690.00 |
| - Profit for the year | kn | 64,668,392.00 |
| - Minority interest income | kn | 5.311.00 |
| - Net income Group | kn | 64,663,081.00 |
| 3. Statement of Cash Flows for 2011. year | ||
| with data on the Net decrease in cash and | ||
| cash equivalents of | kn | 2,049,437.00 |
Supervisory Board
President
Pursuant to clause 275. Part 1, point 2 Companies Act and clause 33 of AD Plastik Inc, Solin, Statute, Supervisory Board of AD Plastik Solin on day __.07.2012. brings:
Net income of AD Plastik, Solin from year 2011., after tax, is 51.835.702,00 kuna and is being used on following:
1. Dividend payout 33.566.728,00 kn 2. Other reserves 18.568.974,00 kn
General assembly President
Management Board JOSIP BOBAN, President of the Management Board Matoševa 8, 21210 Solin, Hrvatska Tel. +385 21 20 65 00, Fax. + 385 21 20 64 95 e-mail: [email protected]
MLADEN PEROŠ, Board Member Matoševa 8, 21210 Solin, Hrvatska Tel. +385 21 20 64 88, Fax. + 385 21 20 64 89 e-mail: [email protected]
IVICA TOLIĆ, Board Member Matoševa 8, 21210 Solin, Hrvatska Tel. +385 21 20 64 88, Fax. + 385 21 20 64 89 e-mail: [email protected]
KATIJA KLEPO, Board Member Matoševa 8, 21210 Solin, Hrvatska Tel. +385 21 20 64 88, Fax. + 385 21 20 64 89 e-mail: [email protected]
Subsidiaries abroad ZAO PHR 443057 SAMARA Krasnoglinski rajon Zas. Vintai RUSSIAN FEDERATION Tel. +7 846 978 1234, Fax. + 7 846 978 1231 e-mail: [email protected]
AD PLASTIK d.o.o. Belokranjska 4, 8000 Novo Mesto, REPUBLIC SLOVENIA Tel. +386 7 337 9820, Fax. + 386 7 337 9821 e-mail: [email protected]
EURO APS s.r.l. 115400 Mioveni, Judetul Arges, Strada Uzinei 2A, ROMANIA Tel. +40 755 016 858 e-mail: [email protected]
188230 LUGA Lenjingradska oblast Ul. Bolshaya Zarechnaya 1A RUSSIAN FEDERATION Tel. + 7 1372 218 10 Mob. +385 91 200 99 17 e-mail: [email protected]
Rue Heinnape 2 Nanterre FRANCE Tel. +33 1 72 36 73 07 e-mail: [email protected]
Ulica Kralja Petra I 334, SERBIA
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