Annual Report • Apr 24, 2017
Annual Report
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PREPARED IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED BY EU
Translation from Latvian
| Information on the Group | 3 - 4 |
|---|---|
| Statement of management's responsibility | 5 |
| Management report | 6 |
| Corporate governance statement | 7 |
| Profit or loss account | 8 |
| Comprehensive income statement | 8 |
| Balance sheet | 9 |
| Statement of changes in equity | 10 |
| Cash flow statement | 11 |
| Notes | 12 - 36 |
| Independent Auditors' report | 37 - 40 |
2
Name of the Company
Legal status of the Company
Number, place and date of registration
Operations as classified by NACE classification code system
Address
Names and addresses of shareholders (from 30.10.2013)
Ultimate parent company
Names and positions of Board members
Names and positions of Council members
Responsible person for accounting
Financial year
Name and address of the auditor
ExpressCredit SIA
Limited liability company
40103252854 Commercial Registry Riga, 12 October 2009
NACE2 64.92 Other credit granting NACE2 47.79 Retail sale of second-hand goods in stores
Raunas street 44 k-1, Riga, LV-1039 Latvia
Lombards24.lv, SIA (till 05.05.2015. Express Holdings, SIA) (51.00% - till 18.06.2015, 67.55% from 18.06.2015 till 23.12.2015, 65.86% from 23.12.2015 - 29.12.2016, 65.9942% from 29.12.2016), Raunas street 44k-1, Riga, Latvia
AE Consulting, SIA (24.50% till 18.06.2015. 32.45% - from 18.06.2015 - 23.12.2015, 31.64% - from 23.12.2015 - 29.12.2016, 31.5058% from 29.12.2016), Posma street 2, Riga, Latvia
Private individuals (2.5% - from 23.12.2015)
AS EA investments, reģ. Nr. 40103896106 Raunas street 44k-1, Riga, Latvia
Agris Evertovskis - Chairman of the Board Kristaps Bergmanis - Member of the Board Didzis Admidins - Member of the Board
leva Judinska-Bandeniece - Chairperson of the Council Uldis Judinskis - Deputy Chairman of the Council Ramona Miglane - Member of the Council
Santa Šoldre - Chief accountant
1 January - 31 December 2016
SIA Potapoviča un Andersone Certified Auditors' Company Licence Nr. 99 Üdens Street 12-45, Riga, LV-1007 Latvia
Responsible Certified Auditor Kristīne Potapoviča Certificate No. 99
Subsidiary
Date of acquisition of the subsidiary
Number, place and date of registration of the subsidiary Address of the subsidiary
Operations as classified by NACE classification code system of the subsidiary
Subsidiary
Date of acquisition of the subsidiary
Number, place and date of registration of the subsidiary Address of the subsidiary
Operations as classified by NACE classification code system of the subsidiary
Subsidiary
Date of acquisition of the subsidiary
Number, place and date of registration of the subsidiary Address of the subsidiary
Operations as classified by NACE classification code system of the subsidiary
Subsidiary
Date of acquisition of the subsidiary
Number, place and date of registration of the subsidiary Address of the subsidiary
Operations as classified by NACE classification code system of the subsidiary
SIA ExpressInkasso (parent company interest in subsidiary - 100%)
22.10.2010
40103211998; Riga, 27 January 2009
Raunas Street 44 k-1; Riga, LV 1039, Latvia
66.1 Financial support services except insurance and pension accrual
SIA MoneyMetro (from 30.04.2015. līdz 29.07.2016. SIA Banknote, till 30.04.2015 - SIA Rīgas pilsētas lombards) (parent company interest in subsidiary -100%)
23.02.2015
40003040217, Riga, 06 December 1991
Raunas Street 44 k-1, Riga, LV 1039, Latvia (till 30.04.2015 - Kalēju street 18/20, Riga)
64.92 Other financing services
SIA EC Finance (parent company interest in subsidiary -100%)
01.12.2015
40103950614, Riga, 01 December 2015
Raunas Street 44 k-1, Riga, LV 1039, Latvia
64.20 Activities of holding companies
SIA EC Investments (parent company interest in subsidiary - 100%)
06.11.2015
40103944745, Riga, 06 November 2015
Raunas Street 44 k-1, Riga, LV 1039, Latvia
64.20 Activities of holding companies
The management of SIA "ExpressCredit" group is responsible for the financial statements.
Based on the information available to the Board of the parent company of the financial statements are prepared on the basis of the relevant primary documents and statements in accordance with International Financial Reporting Standards as adopted by the European Union and present a true and fair view of the Group's assets, liabilities and financial position as at 31 December 2016 and its profit and cash flows for 2016.
The management of the parent company confirms that the accounting policies and management estimates have been applied consistently and appropriately. The management of the parent company confirms that the consolidated financial statements have been prepared on the basis of the principles of prudence and going concern.
The management of the parent company confirms that is responsible for maintaining proper accounting records and for monitoring, controlling and safeguarding the Group's assets. The management of the parent company is responsible for detecting and preventing errors, irregularities and/or deliberate data manipulation. The management of the parent company is responsible for ensuring that the Group operates in compliance with the laws of the Republic of Latvia.
The management report presents fairly the Group's business development and operational performance.
Agris Evertovskis Chairman of the Board
Riga, 21 April 2017
Kristaps Bergmanis Member of the Board
Didzis Ādmīdiņš
Member of the Board
The Group's operations during the period has been successful. In 2016 the new amendments to legislation came into force, which led to significantly lower interest rates on consumer loans. Consequently, in line with expectations, total revenues in the period fell by 14.8% against 2015 and reached 15 423 987 euro.
The Group's strategy in year 2016 included the increase in loan portfolio and reduction of the cost base.
According to the strategy, substantial investments were made in the Group's "Banknote" product and brand awareness. During the period a new consumer credit brand "MoneyMetro" was developed and implemented in three branches of the Group. Facilitated demand for the Group's lending services resulted in increase of the loan portfolio.
In 2016 Group invested in IT development and carried out business process optimization, which helped to develop lending services and provide cost reduction, the work on the training of personnel was carried out in order to improve and maintain high quality and efficient customer service.
By implementing strategy and all the measures the following financial results of the Group were achieved:
the Group's total assets at 31 December 2016 was 16 million euro;
Consolidated profit of 2016 was 960 717 euro (in 2015 EUR 1,436,086 euro).
Compared with the 2015 second half results of 2016 the consolidated profit for the period was 30% higher and amounted to 0.65 million Euro (2015 second half of the year 0.5 million).
The Group's loan portfolio growth has been funded from the cooperation with the mutual lending platform, as well as at the end of 2016 the Group issued closed new bond issue in the amount of 5 million euro.
During the period from 1 January 2016 to 31 December, continued to work on the branch network efficiency. As at 31 December 2016 the Group had 91 branches in 39 cities in Latvia (31.12.2015. - 96 branches in 40 cities).
The Group is not exposed to significant foreign exchange rate risk because basic transaction currency is euro. Significant amount of funding of the Group consist of fixed coupon rate bonds, so that the Group is not significantly exposed to variable interest rate risk. Accurate application of the prudent strategies chosen has allowed the Group to successfully manage its financial risks, particularly the liquidity and credit risk.
There are no subsequent events since the last date of the reporting year, which would have a significant effect on the financial position of the Company as at 31 December 2016.
On 19 January 2017, SIA ExpressCredit made a contribution in the 100% share capital of subsidiary in Bulgaria in the amount of EUR 500 000. Subsidiary established in order to obtain authorization for pawnshop and consumer lending. The company has not yet decided on a specific start-up time and volume.
In 2017 the Company plans to strengthen its market leading position in IT development, improving the branch network, investing in brand and product visibility and enhancing customer service quality. It is planned that the Group's loan portfolio will increase, and profit dynamics will be higher than 2016 results.
The Parent Company's board recommends the profit of 2016 to pay out in dividends, restrictions applied to debt securities emissions.
Agris Evertovskis
Chairman of the Board
Riga, 21 April 2017
Kristaps Bergmanis Member of the Board
Didzis Admidiņš Member of the Board
6
The corporate governance report of SIA "ExpressCredit" for 2016 has been prepared in accordance with the Riga Stock Exchange Corporate Governance principles issued in 2005 and recommendations as to their implementation.
The corporate governance report has been prepared by the Board and reviewed by the Council of SIA "ExpressCredit".
The corporate governance principles have been tailored to match the needs of SIA "ExpressCredit" as closely as possible, and in 2016 SIA "ExpressCredit" complied with most of the principles. Having regard to the "comply or explain" principle, the report presents the information on the principles which have not been complied with or have been complied with partly by SIA "ExpressCredit" and the circumstances causing non-compliance in 2016.
The report will be submitted to AS NASDAQ OMX Riga (hereinafter - the Stock Exchange) concurrently with the audited financial statements SIA "ExpressCredit" for 2016 for publishing on the website of the Stock Exchange: http://www.baltic.omxnordicexchange.com/, and the website of SIA .;ExpressCredit.lv in the section "For investors" in Latvian and English.
Agris Evertovskis Chairman of the Board Kristans Bergmanis Member of the Board
Didzis Admīdiņš Member of the Board
Riga, 21 April 2017
| Parent company 2016 EUR |
Group 2016 EUR |
Parent company 2015 EUR |
Group 2015 EUR |
||
|---|---|---|---|---|---|
| Net sales | (1) | 4 795 253 | 4 796 333 | 7 691 132 | 8 124 967 |
| Cost of sales | (2) | (3 449 335) | (3 449 335) | (5 629 077) | (6 039 408) |
| Interest income and similar income |
(3) | 10 298 728 | 10 627 654 | 9 547 347 | 9 974 805 |
| Interest expenses and similar expenses |
(4) | (1 396 899) | (1 396 128) | (1 161 072) | (1 161 962) |
| Gross profit | 10 247 747 | 10 578 524 | 10 448 330 | 10 898 402 | |
| Selling expenses | (5) | (5 720 376) | (5 923 936) | (5 163 687) | (5 327 877) |
| Administrative expenses | (6) | (1 989 331) | (2 005 892) | (2 663 375) | (2 738 289) |
| Other operating income | (7) | 135 651 | 37 332 | 49 816 | 60 588 |
| Other operating expenses | (8) | (1 454 053) | (1 482 195) | (1 118 598) | (1 185 869) |
| Profit before taxes | 1 219 638 | 1 203 833 | 1 552 486 | 1 706 955 | |
| Corporate income tax for the reporting year |
(9) | (226 027) | (244 763) | (206 856) | (220 676) |
| Deferred tax | (9) | 1 647 | 1 647 | 26 185 | 26 185 |
| Current year's profit | 995 258 | 960 717 | 1 371 815 | 1 512 464 | |
| Earnings per share | 0.67 | 0.64 | 3.21 | 3.54 | |
| Diluted earnings per share | 0.67 | 0.64 | 3.21 | 3.54 | |
| Comprehensive income statement for 2016 | |||||
| 2016 EUR |
2016 EUR |
2015 EUR |
2015 EUR |
||
| Current year's profit | 995 258 | 960 717 | 1 371 815 | 1 512 464 | |
| Other comprehensive income | |||||
| Total comprehensive income | 995 258 | 960 717 | 1 371 815 | 1 512 464 |
Notes on pages from 12 to 36 are integral part of these financial statements.
Agris Evertovskis
Chairman of the Board
Riga, 21 April 2017
Kristaps Bergmanis
Member of the Board
Didzis Ādmidiņš
Member of the Board
Santa Šoldre
Chief accountant
| Balance sheet as at 31 December 2016 | Parent | Group | Parent | Group | |
|---|---|---|---|---|---|
| company | company | ||||
| Assets | Notes | 31.12.2016. | 31.12.2016. | 31.12.2015. | 31.12.2015. |
| EUR | EUR | EUR | EUR | ||
| Long term investments | |||||
| Fixed assets and intangible assets, | |||||
| goodwill | (10) | 423 115 | 581 905 | 516 180 | 643 796 |
| Loans and receivables | (15) | 964 108 | 964 108 | 545 068 | 545 068 |
| Loans to shareholders and | |||||
| management | (12) | 1 216 601 | 1 216 601 | 875 267 | 875 267 |
| Participating interest in subsidiaries | (11) | 885 828 | 888 828 | ||
| Other investments | 20 | ||||
| Deferred tax asset | (13) | 145 252 | 145 252 | 143 605 | 143 605 |
| Total long-term investments: | 3 634 904 | 2 907 886 | 2 968 948 | 2 207 736 | |
| Current assets | |||||
| Goods for sale | (14) | 700 715 | 700 715 | 1 138 410 | 1 138 410 |
| Loans and receivables | (15) | 9 619 773 | 10 591 251 | 6 126 947 | 6 455 956 |
| Receivables from affiliated | |||||
| companies | (16) | 330 821 | 169 146 | 435 490 | 105 855 |
| Other debtors | (17) | 248 337 | 249 958 | 102 075 | 297 436 |
| Deferred expenses | (18) | 74 666 | 92 741 | 33 192 | 35 163 |
| Assets held for sale | (11) | 1 000 | 1 000 | ||
| Cash and bank | (19) | 1 127 231 | 1 279 410 | 439 271 | 493 591 |
| Total current assets: | 12 102 543 | 13 084 221 | 8 275 385 | 8 526 411 | |
| Total assets | 15 737 447 | 15 992 107 | 11 244 333 | 10 734 147 | |
| Liabilities | |||||
| Shareholders' funds: | |||||
| Share capital | (20) | 1 500 000 | 1 500 000 | 426 861 | 426 861 |
| Prior years' retained earnings | 78 216 | 345 348 | 279 540 | 387 704 | |
| Current year's profit | 995 258 | 960 717 | 1 371 815 | 1 512 464 | |
| Total shareholders' funds: | 2 573 474 | 2 806 065 | 2 078 216 | 2 327 029 | |
| Creditors: | |||||
| Long-term creditors: | |||||
| Bonds issued | 5 213 760 | ||||
| Other borrowings | (21) | 5 213 760 | 5 489 648 | 5 489 648 | |
| Total long-term creditors: | (22) | 1 292 032 | 1 292 032 | 666 741 | 666 741 |
| 6 505 792 | 6 505 792 | 6 156 389 | 6 156 389 | ||
| Short-term creditors: | |||||
| Bonds issued | (21) | 1 017 773 | 1 017 773 | 1 016 271 | 1 016 271 |
| Other borrowings | (22) | 4 847 977 | 4 847 977 | 384 846 | 384 846 |
| Accounts payable to affiliated | |||||
| companies | (23) | 7 376 | 181 | 772 709 | 18 985 |
| Trade creditors and accrued | 713 488 | 735 137 | |||
| liabilities | (24) | 675 450 | 681 271 | ||
| Taxes and social insurance | (25) | 71 567 | 79 182 | 160 452 | 149 356 |
| Total short-term creditors: | 6 658 181 | 6 680 250 | 3 009 728 | 2 250 729 | |
| Total liabilities and shareholders' | |||||
| funds | 15 737 447 | 15 992 107 | 11 244 333 | 10 734 147 | |
Notes on pages from 12 to 36 are integral part of these financial statements.
Agris Evertovskis Chairman of the Board
Kristaps Bergmanis Member of the Board
Didzis Ādmidiņš
Member of the Board
Santa Šoldre Chief accountant
Riga, 21 April 2017
9
| Statement of changes in equity of the Parent Company's for the year ended 31 December 2016 | |||
|---|---|---|---|
| -- | -- | -- | -------------------------------------------------------------------------------------------- |
| Share capital | Prior years' retained |
Current year's profit |
Total | |
|---|---|---|---|---|
| EUR | earnings EUR |
EUR | EUR | |
| As at 31 December 2014 | 426 861 | 279 540 | 1 309 562 | 2 015 963 |
| Dividends paid | - | (1 309 562) | - | (1 309 562) |
| Profit transfer | 1 309 562 | (1 309 562) | ||
| Profit for the year | 1 371 815 | 1 371 815 | ||
| As at 31 December 2015 | 426 861 | 279 540 | 1 371 815 | 2 078 216 |
| Dividends paid | (700 000) | (700 000) | ||
| Profit transfer | 873 139 | 498 676 | (1 371 815) | |
| Enlarged share capital | 200 000 | 200 000 | ||
| Profit for the year | 995 258 | 995 258 | ||
| As at 31 December 2016 | 1 500 000 | 78 216 | 995 258 | 2 573 474 |
| Share capital | Prior years' retained |
Current year's profit |
Total | |
|---|---|---|---|---|
| EUR | earnings EUR |
EUR | EUR | |
| As at 31 December 2014 | 426 861 | 295 703 | 1 401 563 | 2 124 127 |
| Dividends paid | (1 309 562) | (1 309 562) | ||
| Profit transfer | 1 | 1 401 563 | (1 401 563) | |
| Profit for the year | 1 512 464 | 1 512 464 | ||
| As at 31 December 2015 | 426 861 | 387 704 | 1 512 464 | 2 327 029 |
| Dividends paid | (700 000) | (700 000) | ||
| Prior years' retained earnings of subsidiary sold |
18 319 | 18 319 | ||
| Profit transfer | 873 139 | 657 644 | (1 530 783) | |
| Enlarged share capital | 200 000 | 200 000 | ||
| Profit for the year | 960 717 | 960 717 | ||
| As at 31 December 2016 | 1 500 000 | 345 348 | 960 717 | 2 806 065 |
Notes on pages from 12 to 36 are integral part of these financial statements.
| Parent company |
Group 2016 |
Parent company 2015 |
Group 2015 |
|
|---|---|---|---|---|
| 2016 EUR |
EUR | EUR | EUR | |
| Cash flow from operating activities | ||||
| Profit before extraordinary items and taxes | 1 219 638 | 1 203 833 | 1 552 486 | 1 706 955 |
| Adjustments for: | ||||
| a) fixed assets and intangible assets | ||||
| depreciation | 233 036 | 234 023 | 237 959 | 245 730 |
| b) accruals and provisions (except for | ||||
| provisions for bad debts) | 570 492 | 640 283 | 238 706 | 238 706 |
| (82 940) | (82 940) | |||
| c) write-off of provisions | 1 347 105 | 1 371 747 | 982 449 | 1 032 538 |
| d) cessation results | (10 298 728) | (10 627 654) | (8 853 994) | (9 272 220) |
| e) interest income | 1 165 893 | |||
| f) interest and similar expense | 1 396 899 | 1 395 958 | 1 118 598 | |
| g)( profit)/ loss on fixed assets disposal | (3 804) | (3 804) | (961) | 35 811 |
| h) other adjustments | 17 091 | 33 409 | 24 867 | 24 867 |
| Loss before adjustments of working | ||||
| capital and short-term liabilities | (5 601 211) | (5 835 145) | (4 699 890) | (4 821 720) |
| Adjustments for: | ||||
| a) (increase) decrease in consumer | ||||
| loans issued (core business) and other | ||||
| debtors | (6 502 259) | (6 544 325) | (1 436 010) | (1 020 785) |
| b) stock (increase)/decrease | 520 635 | 520 635 | (401 626) | (235 253) |
| c) trade creditors' (decrease)/ increase | ക്കുടെ | 65 857 | 144 098 | 83 607 |
| (11 581 899) | (11 792 978) | (6 393 428) | (5 994 151) | |
| Gross cash flow from operating activities | (218 776) | (394 407) | ||
| Corporate income tax payments | (211 168) | (349 888) | ||
| Interest income | 10 254 557 | 10 545 467 | 8 950 345 | 9 368 570 |
| Interest paid | (1 400 376) | (1 395 958) | (1 101 448) | (1 148 743) |
| Net cash flow from operating activities | (2 938 886) | (2 862 245) | 1 105 581 | 1 831 269 |
| Cash flow from investing activities | ||||
| Acquisition of affiliated, associated or other | ||||
| (886 000) | (849 233) | |||
| companies shares or parts | ||||
| Earnings from the disposal of shares in | ||||
| subsidiaries | 2 000 | 2 000 | ||
| Acquisition of fixed assets and intangibles | (144 438) | (174 365) | (249 510) | (267 655) |
| Proceeds from sales of fixed assets and | ||||
| intangibles | 8 272 | 8 272 | 10 631 | 10 631 |
| Loans issued/repaid (other than core | ||||
| business of the Company) (net) | 292 565 | 343 709 | 196 470 | 278 599 |
| Net cash flow from investing activities | 158 399 | 179 616 | (928 409) | (827 658) |
| Cash flow from financing activities | ||||
| Proceeds of the capital share investment | 200 000 | 200 000 | 3 884 400 | |
| Loans received and bonds issued (net) | 10 529 796 | 10 529 796 | 3 884 400 | |
| Redemption/purchase of bonds | (1 250 000) | (1 250 000) | (1 000 000) | (1 000 000) |
| Loans repaid | (5 252 083) | (5 252 083) | (2 450 019) | (3 222 728) |
| Finance lease payments | (59 266) | (59 265) | (59 848) | (59 848) |
| Dividends paid | (700 000) | (700 000) | (1 309 562) | (1 309 562) |
| Net cash flow from financing activities | 3 468 447 | 3 468 448 | (935 029) | (1 707 738) |
| Net cash flow of the reporting year | 687 960 | 785 819 | (757 857) | (704 127) |
| Cash and cash equivalents at the | ||||
| beginning of the reporting year | 439 271 | 493 591 | 1 197 128 | 1 197 718 |
| Cash and cash equivalents at the end of | ||||
| reporting year | 1 127 231 | 1 279 410 | 439 271 | 493 591 |
Notes on pages from 12 to 36 are integral part of these financial statements.
These financial statements have been prepared based on the accounting policies and measurement principles as set out below.
These financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union (EU). The financial statements are prepared based on historic cost method. In cases when reclassification not affecting prior year profit and equity is made, the relevant explanations are provided in the notes to the financial statements.
The preparation of financial statements in accordance with IFRS requires the use of significant estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the information on contingent assets and liabilities at the balance sheet date and the revenues and costs for the reporting period. Although these estimates are based on the information available to the management regarding the current events and actions, the actual results may differ from the estimates used. Critical assumptions and judgements are described in the relevant sections of the financial statements.
Amendment to IFRS 11 "Joint arrangements" on acquisition of an interest in a joint operation (effective for annual periods beginning on or after 1 January 2016)
Amendment to IAS 16 "Property, plant and equipment" and IAS 38 "Intengible assets" on depreciation and amortisation (effective for annual periods beginning on or after 1 January 2016)
Amendments to IAS 16 "Property, plant and equipment" and IAS 41 "Agriculture" regarding bearer plants (effective for annual periods beginning on or after 1 January 2016)
Amendments to IAS 27 "Separate financial statements" on the equity method (effective for annual periods beginning on or after 1 January 2016)
Amendments to IAS 1 "Presentation of financial statements" regarding disclosure initiative effective for annual periods beginning on or after 1 January 2016)
Amendments to IFRS 10 "Consolidated financial statements", IFRS 12 "Disclosure of Interests in Other Entities" and IAS 28 "Investments in associates and joint ventures" (effective for annual periods beginning on or after 1 January 2016)
Annual improvements 2014 (effective for annual periods beginning on or after 1 January 2016). The amendments include changes that affect 4 standards:
The following new and amended IFRS and interpretations come into force in 2015, but do not apply to the Company's operations and have no impact on these financial statements:
Amendments to IAS 19 "Employee benefits plans" regarding defined bendorsed by EU for annual periods beginning on or after 1 February 2015).
· IFRS 2 "Share-based payment"
· IFRS 3 "Business Combinations
· IFRS 8 "Operating segments"
· IAS 16 "Property, plant and equipment" and IAS 38 "Intangible assets"
· IAS 24 "Related party disclosures"
The following new and amended IFRS and interpretations are published and come into force in financial periods on or after 2017 or not yet endorsed by EU:
IFRS 9 "Financial Instruments: Classification and Measurement" (effective for annual periods beginning on or after 1 January 2018). Key features of the new standard are:
· Financial assets are required to be classified into three measurement categories: those to be measured subsequently at amortized cost, those to be measured subsequently at fair value through other comprehensive income (FVOCI) and those to be measured subsequently at fair value through profit or loss (FVPL).
· Classfication for debt instruments is driven by the entity's business model for managing the financial assets and whether the contractual cash flows represent solely payments of principal and interest (SPPI). If a debt instrument is held to collect, it may be carried at amortized cost if it also meets the SPPI requirements that meet the SPPI requirement that are held in a portfolio where an entity both holds to collect assets may be classified as FVOCI. Financial assets that do not contain cash flows that are SPPI must be measured at FVPL (for example, derivatives). Embedded derivatives are no longer separated from financial assets but will be included in assessing the SPPI condition.
· Investments in equity instruments are always measured at fair value. However, management can make an irrevocable election to present changes in fair value in other comprehensive instrument is not held for trading. If the equity instrument is held for trading, changes in fair value are presented in profit or loss.
· The entities that defer the application of IFRS 9 will continue to apply the existing financial instruments Standard - IAS 39. Main changes of the standard affect that companies will further present their own credit risk impact of changes position that is estimated in fair value, calculated in profit or loss.
Notes (continued) Accounting policies (continued)
The following new and amended IFRS and interpretations are published and come into force in financial periods on or after 2017 or not yet endorsed by EU (continued):
IFRS 9 "Financial Instruments: Classification and Measurement" (effective for annual periods beginning on or after 1 January 2018). Key features of the new standard are (continued):
· IFRS 9 introduces a new model for recognition of value reductions - the expected credit loss (ECL) model. The model has three level approach, based on changes in financial assets credit quality, comparing with initial measurements. New changes in aractise will mean initial credit loss recognition equal to 12-month ECL even if financial assets do not contain signals of value loss. If significant growth of credit risk occurs, value loss measurements have to be done by using lifetime ECL. The model includes some operational simplifications for trade receivables, contract assets and lease receivables.
· Credit risk management requirements are improved for credit management systems matching purposes. The standard allows to choose accounting policies between IFRS 9 and IAS 39 because IFRS 9 has not yet regulated for measuring restrictions of marco risks.
IFRS 9 will be effective for annual periods of Parent company and Group after its endorsing by EU. The Board estimates no influence on financial reports of Parent company and Group according to changes in IFRS 9, comparing to current classified on fexperied credit loss and financial instruments.
Amendment to IFRS 10, Consolidated Financial Statements, and IAS 28 Investments in Associates and Joint Ventures (not yet endorsed in the EU).
IFRS 16 "Leasing" (issued on 13 January 2016 and effective for annual periods beginning on or after 1 January 2019, not yet endorsed in the EU).
Amendments to IAS 12, "Income taxes", recognition of Deferred Tax Assets for Unrealized Losses (issued on 19 January 2016 and effective for annual periods beginning on or after 1 January 2017, not yet endorsed in the EU).
Amendments to IAS 7 "Statement of Cash Flows "(issued on 29 January 2016 and effective for annual periods beginning on or after 1 January 2017, not yet endorsed in the EU).
Amendments to IFRS 15, Revenue from Contracts with Customers (issued on 12 April 2016 and effective for annual periods beginning on or after 1 January 2018, not yet endorsed in the EU).
Amendments to IFRS 2 "Share-based Payment "(issued on 20 June 2016 and effective for annual periods beginning on or after 1 January 2018, not yet endorsed in the EU).
Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts - Amendments to IFRS 4 (issued on 12 September 2016 and effective, depending on the approach, for annual periods beginning on or after 1 January 2018).
· IFRS 12 "Disclosure of Interests in Other Entities" (effective for annual periods beginning on or after 1 January 2017, not yet endorsed in the EU)
• IFRS 1 "First-time Adoption of International Reporting Standards" (effective for annual periods beginning on or after 1 January 2018, not yet endorsed in the EU)
· IAS 28 "Investments in Associates and Joint Ventures" (effective for annual periods beginning on or after 1 January 2018, not yet endorsed in the EU)
• IFRIC 22 "Foreign Currency Transactions and Advance Consideration" (issued on 8 December 2016 and effective for anual periods beginning on or after 1 January 2018, not yet endorsed in the EU)
· Transfers of Investment Property - Amendments to IAS 40 (issued on 8 December 2016 and effective for annual periods beginning on or after 1 January 2018, not yet endorsed in the EU)
Board of the Parent company and Group decided not to initiate new standards and interpretations before endorsing them in EU. There are no other new or revised standards or interpretations that would be expected to have a material impact on the Company.
The items in the financial statements have been measured based on the following accounting principles:
Asset and liability recognition is performed on historical cost basis. All financial assets and liabilities are classified as held to maturity or loans and receivables.
The consolidated financial statements have been prepared under the cost method. The consolidation are the Group's parent company and the subsidiaries in which the Group's parent company holds, directly or indirectly, more than a half of the voting rights, or the right to control their financial and operating policies is acquired otherwise. Where the Group owns more than a half of the share capital of another company without controlling the company, the respective company is not consolidated. The subsidiaries of the Group are consolidated from the Group has taken over control, and the consolidation is terminated when the control cease to exist. Where the date of the share purchase agreement or the date of the decision of shareholders on making further investments is fundamentally different from the date of on which share ownership changes or the registration date as recorded in the Register) of Enterprises, the date of agreement shall be considered the date of the share purchase or the date of the investment, unless the agreement provides otherwise. The Group's all inter-company transactions and balances and unrealised profit on transactions between group companies are eliminated; unrealised losses are eliminated as well, except for the cases when the expenses are not recoverable. Where necessary, the accounting and measurement methods applied by the Group's subsidiaries have been changed to bring them in compliance with the Group's accounting and measurement methods.
In these statements the minority interest in the Group's consolidated subsidiaries and their income statement have been presented separately.
Net revenue represents the total value of goods sold and services provided during the year net of value added tax.
The Company presents interest income in the Profit and loss account prior to calculation of gross profit, as this income is related to the basic activities of the Company - charging interest for loans issued in return to pledge held as security or loans issued on other conditions. Interest income is recognised using accruals principle. Interest income is not recognised from the moment the recoverability of principal is considered doubtful. Penalty interest is recognised on a cash basis.
Other income is recognised based on accruals principle.
Of collection exists, is recognised based on cash principle.
Expenses are recognised based on accruals principle in the period of the moment of payment. Expenses related to financing of loans is recognised in the period of liability origination and included in the profit and similar expenses".
Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The financial statement items are denominated in euro (EUR), which is the Company's functional and presentation currency.
All transactions in foreign currencies are translated into the exchange rates at the date of the respective transaction. Foreign exchange gains and losses resulting from the settlement of such translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement of the respective period. At the balance sheet date the rates set by the Bank of Latvia were:
| 31.12.2016 | 31.12.2015 |
|---|---|
| EUR | EUR |
| 1.05410 | 1.08870 |
Fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an am's length transaction. Fair values of financial assets or liabilities, including derivative financial instruments in active markets are based on quoted market prices. If the market for a financial asset or liability is not active (and for unlisted securities) the Group establishes fair value by using valuation techniques. These include the use of discounted cash flow analysis, option pricing models and recent comparative transactions as appropriate and may reguire the application of management and estimates.
Where, in the opinion of the Management, the fair values of financial assets and liabilities differ materially from their book values such fair values are separately disclosed in the notes to the accounts.
Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial instrument. An incremental cost is one that would not have been incurred if the transaction costs include fees and commissions paid to agents (including employees acting agents), advisors, brokers and dealers, levies by regulatory agencies and securities exchanges, and transfer taxes and duties. Transaction costs do not include debt premiums or discounts, financing costs or internal administrative or holding costs.
Amortised cost is the amount at which instrument was recognition less any principal recayments plus accrued interest and for financial assets less any write-down for incurred interest includes amortisation of transaction costs deferred at initial recognition or discount to maturity amount using the effective interest method. Accrued interest income and accrued including both accrued coupon and amortised discount or premium (including fees deferred at origination, if any) are not presented separately and are included in the carrying values of related items on the balance sneet.
The effective interest method of calculating the amortised cost of a financial liability and of allocaling the interest income or interest expense over the relevant period. The rate that exactly discounts estimated future cash payments or receipts through the of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability. When calculating the effective interest rate the Group estimates cash flows considering all contractual terms of the financial instrument (for example, prepayment options) but does not consider future credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts.
Financial assets and liabilities are offset and net amount reported in the is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realize the lability simultaneously.
All intangible assets and fixed assets are intactible assets and fixed assets are recorded at historic of net of depreciation and permanent diminution is anortisation is calculated on a straight-ine basis to write down each assel to its estimated residual value over its estimated useful life as follows:
vears
| Buildings | 20 |
|---|---|
| Constructions | 5 |
| ntangibles | 3 - 5 |
| Other fixed assets | 3 - 5 |
| Low value inventory (worth over 71 EUR) | 3 |
The residual values, remaining useful lives and methods of depreciation are reviewed and, if required, adjusted and intangibles recognition is terminated in case of its liguidation or when to fully be unlike in of the respective asset. Any profit or loss connected with the temination of recognition (calculated as difference between the disposal gains and net book value as at the moment of dereognition), is recognised in the profit or loss account in the period when derecognition occurs. Leasehold improvements are written down on a straight-line basis over the shorter of the estimated useful life of the leasehold improvement and the term of the lease. Current repairs and maintenance costs are charged to profit and loss account in the respective costs are incurred.
Goodwill arises on the acquisition of subsidiaries and represents the excess of the net fair value of share of equity acquired. The recognised goodwill is reassessed at least on an annual basis to make sure no permanent diminution in value has ocurred. In case such diminution in value is recognised in the income statement of the respective year.
In the financial statements the investments in associated companies are carried at equity method the value of the investment at the balance sheet date comprises the value of the associated company corresponding to the share of investment and the book value of the positive goodwill arising at the acquisition of the investment.
At the vear-end the amount of the reported item is increased by reference to the Company's share in the profit or loss of the associated company during the year (in the post-acquisition period), or other changes in equity, as well as by the reduction of the goodwill arising at acquisition to its recoverable amount. Unrealised profit on inter-company transactions is presented in the year following the reporting year in which the shareholders adopt a decision on profit distribution.
Notes (continued) Accounting policies (continued)
Intangible assets which are not put into operation or which do not have a useful life are not amortised; their value is reviewed annually. The value of the assets subject to depreciation is reviewed whenever any events or circumstances support that their carying value may not be recoverable. Impairment losses are recognised in the amount representing the carving value of the asset and its recoverable amount is the higher of the respective assets fair value less the costs to sell and the value in use. In order to determinent, assets are grouped based on the smallest group of assets that independently generales cash flow (cash generating units).
A geographical segment provices products or services within a particular economic environment that is subject to other economic environments characterized by different risks and benefits. A business segment is a share of assets and operations, noviding products and services that are subject to other business segments of different risks and benefits.
Inventores are stated at the lower of cost or market price. Inventories are measured using the weighted FIFO method. The Company assesses at each balance sheet date whether there is objective evidence that inventories are impared and makes provisions for slowmoving or damaged inventories loss is recognised in the period such invention off the marks of the makes provision in alow to the period profit and loss account.
Collateral is repossessed following the foreclosure on loans that are in default. Seized assets are measured at the lower of cost or net realisable value and reported within "Inventories".
Accounts receivable comprise loans and other receivables (other debtors, advances and deposits) that are non-derivalive financial assets with fixed or deterninable payments. Loans are carried at amortised cost is defined as the fair value of cash onsideration given to originate those loans and receivables are recognised when east is advanced to the firsten on derecognised on repayments. The Company has granted consumer loans to customers throughout its market in beloginised on area may have an impact on the borrowers' ability to repay their devel. The conionio condition of the nice in alle the loan is past due according to the renegotiated terms.
From October 2015 SIA "Express Cred issuance of pledged loans (except pledges in the form of golden and silver articles) with new lending conditions, that assume 10% case of band program sale of the vinn or golder and short allocle received by SIA "ExpressCredit" from the sale of the pledge, decreased by the VAT pleages are made available for sale ater 30 days of default, however, they continue to he status of the pledge and the loan recipient has the rights to buy out the pledge befor the sale. In the financial statements these pleasified as loans issued. In case a surplus originates upon a sale of the pledge and the related osts (loan issued, internediary and holding commissions), the upon issions), the upper as an or nised as the liability of the company to the loan recipient. The loan recipient does not chievels in the amount due within the 10 year term as defined in Article 1895 of the loan recipient has not claim the surplus within the legally defined time limits, SA "ExpressCredit" recognises the income is outside VAT legislation and is not VAT taxable.
The Company assesses at each balance sheet date whether there is objective evidence that loans are impaired. If any such evidence exists, the amount of the allowances for loan in as assessed as the difference between the carrying amount and the reoverede amount, being the present value of expected cash flows including amounts recoverable from collated in the orient it the orient it the orient it the orient in interest rate. The assessment of the evidence for impairment and the enount of the emount of the enount of the investment of impriment ouvis freversal requires the application of management's judgements judgements and estimates on inpuntinent on the vin factors including but not limited to the identification of non-performing have and estinates consider relevalue of collateral (if taken) as well as other relevant factors affecting loan onlying to bolleteral values. These judgements and estimates are reviewed periodically and as adjustments become necessary, the benings in the period in which hey become known. The Management of the Company have made their best estimates of losses based on misjective evidence of impartment and believe those estimates presented in the financial statements are reasonable in light of available information.
When loans cannot be recovered they are written of and charged against allowances for loan impairment losses. They are not written off until all the necessary legal procedures have been completed and the amount of the loss is finally determined.
The provision in the allowance account is reversed if the estimated recovery value exceeds the carrying amount.
(n) Trade and other receivables (continued)
In accordance with the provisioning policy developed by the Company (for non-secured consumer loans with the term of repayment up to 2 years) provisions are made based on the payment delay analysis at following rates:
| Days of delay | Provision made |
|---|---|
| 0 | 0.3% |
| 1-15 | 6% |
| 16-30 | 18% |
| 31-60 | 32% |
| 61-90 | 42% |
| 91-180 | 47% |
| 181-360 | 67% |
| 360-720 | 92% |
| 721+ | 100% |
Provisions for interest income debts is made in accordance with the policies set by the management of the Company. In accordance with the provisioning policy the Company calculates the provision required based on prior experience of loan volumes that turn out to be doubli eat by the management making of such debts. The provision for interest accrued is made in accordance with the provisioning policis set by the management making sure that see interest course in accorded in accounted with the provision in policies with the provision in the basis for pincipal recoverability testing.
The recoverability of other debtors, advances and deposits paid is valued on individual basis if there are any indications of net book value of the asset exceeding its recoverable amount.
Where the property, plant and equipment are acquired under a finance lease arrangement and the Company takes over the related risks and rewards, the property, plant and equipment items are a mangened at the could be purchased for an elation instrument payment. Leasing interest is charged to the profit and loss in the period in which it an which at will
The type of lease in which the lessor retains a significant part of the risks and rewards pertaining to ownership, is classified as operating lease. Lease payments and prepayments for a lease (net of in the reveloning to owner in the lessor) are charged to the profit and loss under a straight-line method over the lease term.
The corporate income tax expense is included in the financial statements based on the management's calculations made in accordance with the requirements of Latined tax is provided for using liability method on all temporary of firemes arising between the tax bases of assets and their carrying movied of the financial statements. The principal temporary differences arise from depreciation of property, plant and equipment at different rates and tax the fiture taxation perios. Deferred tax assets are recognised only to the extent that recovery is probable.
The amount of provision for unused annual leave is determined by multiplying the average daily pay of employees during the last 6 months by the number of accued but unused as a cases the end of the everage any pay of employees during mast on mortis paid out till the date of annual report preparation and treats the reporting year. The reporting period.
Initially borowings are reognised at the proceeds received net of transaction costs incurred. In subsequent periods, borrowings are stated at anothed cost which is decircuive interest method. The difference between the proceeds received, not of transaction costs and the redemption value of the borrowing is gradually recognized in the profit and Iss account over the term of the borrowing.
For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, balances of current accounts with banks and short-term deposits with a maturity term of up to 90 days.
Dividends due to the shareholders are recognized in the financial statements as a liability in the shareholders approve the disbursement of dividends.
Accounting policies (continued)
(v) Financial risk management
The activities of the Company expose it to different financial risks:
(u1.1) foreign currency risk: (u1.2) credit risk:
(u1.3) operational risk;
(u1.4) market risk:
(u1.5) liquidity risk;
(u1.6) cash flow and interest rate risk.
per in the finance face hist.
The Company's overall isk management is focused on the uncertainty of financial markets and among of the United Management in company of orial institutin is rocles on the uncertainty of finance and ans bredoce its alvese effects on the
Companys finance indicators. The Finance Director is rese seeks to find solutions. The Finance Director is responsible for risk management. The Finance Director ide
person or organ online in the local market and its exposure to foreign exchange risk is low. With the current income-expense strom in any operator many in the exposure to foreign exchange risk is low. Vith the curent income-spense
structure additional monitoring risk has been assessed ne lorder ri are not dealer monitoring procedures for currency risk monitoring are not deep
are used on the account that the overall currency risk has been assessed as low.
he Company has a credit risk concentional specifics – issuance of loans against niedge, as well as issuance of no and issues a aron'ni concernation is operations specifics – issuance of loans against nedge, as wel as issuance of
issues realed to timely coverage of short-tem libilitie issues and ro otimedia will all hir-fasel nist of asset recorrestliin short-tem liputity on the may neutin short-tem in one more morner of morten mornion the contraction of charge of shorteent liabilites. The Company's policies and adequate provisioning for potential loss.
(1 system of the risk due to external factors namely (natural disasters, crines, etc.) or internal ones (lT system crash, fraud, will be was a roo hot de to skelliai issues rimes, etc.) or internal ones (IT system crash, frau,
violation of liternal regulations insufficiential onth). Operation of the man of more including instilling methods to tentify, aperation of the Company caries a chrain hard.
be managed using several methods to identif, analyse, eport and reduce of the opend micilions including methods to identify, and reduce the operational risk. Alor and mindments.
of the operational risk is carried out as systematic approval of ne and processes with the risk environment of the activity.
promotive now received, as well as many elated to the fiutuations of interest rates between the loans granted and funding
reeived, as well as demand for the Company atemps intenses interes the counted woll as demand for the Company's services fluctuations. The Company attempts to
the expected cash flows, diversifying the product range and fixing funding resourc
The Company complies with the prudence principle in the management of its liquidity risk and maintains sufficient fund. The management of the Company has an rine production in the management of its lighting sufficient funds. The Che management
of the Company's liabilities are shortes and make current forests of the Company's liabilities. The management is of the current forests based on anticipality.
of the Company's liabilities are shortean is of the opinin the Company will be a liquity by its operating are cher labilites. The management is of the Company will be abe to seure ardicient of financial support of the company is cerain of financial suppor
(person of the roof nate risk
As the Company has borrowings and finance lease obligations, the Company's cash flows done depend on the changes in market feate onligations, the Company's sash flows related of inncing costs to some extent depend on the current market depend on the current market rates o interest. The risk of fileres in increst party and related cash flow depend on the current market taps of the care of the circultures of the have been ho have in hackating mered by the fact that a number of loans received have because and the rest creat
The Comments of Corvative Inalities in its operations. Deivations in its operations inancialinstiments are initially recognized in a shirting as eleficity the manual instruments in its personal instruments are initialy recognized
at for vale on the cated the contract measurd fair value at the balace are carred as as all ure lait nereater measured at lie balance shet de. Dervin finance insteal nancis instruments.
are caried as assets if their firi value is positive. Any in the fair as assess it for fair value is postive and as llabilities if fair value is negative. Any gains or losses arising due to the
16 - 1
The carrying value of financial assets and liabilities approximates their fair value. See also note (f).
Accounting policies (continued)
(v) Financial risk management (continued)
In order to ensure the continuation of the Company's activities, while maximizing the relum to stakeholders capital management, optimization of the debt and equity balance is performed. The Company's capital structure consists of borrowings from related persons, third party loans and loans from credit institutions and finance lease liabilities, cash and equity, comprising issued share capital, retained earnings and share premium. At year-end the ratios were as follows:
| Parent company |
Group | Parent company |
Group | |
|---|---|---|---|---|
| 31.12.2016 | 31.12.2016 | 31.12.2015 | 31.12.2015 | |
| EUR | EUR | EUR | EUR | |
| Loan and lease liabilities | 12 371 542 | 12 371 542 | 7 557 506 | 7 557 506 |
| Cash and bank | (1 127 231) | (1 279 410) | (439 271) | (493 591) |
| Net debts | 11 244 311 | 11 092 132 | 7 118 235 | 7 063 915 |
| Equity | 2 573 473 | 2 806 064 | 2 078 216 | 2 327 029 |
| Liabilities / equity ratio | 4.81 | 4.41 | 3.64 | 3.25 |
| Net liabilities / equity ratio | 4.37 | 3.95 | 3.43 | 3.04 |
The preparation of financial statements in accordance with International Financial Reporting Standards as adopted by the EU and Latvian law requires the management to rely on estimates and assumptions that affect the reported amounts of assets and liabilities and offbalance sheet assets and liabilities at the date of financial statements, as well as the revenues reporting in the reporting period. Actual results may differ from these estimates.
The following judgements and key assumptions concerning the future are critical, and other causes of inaccuracies in the calculations as at the date of financial statements, with a significant risk of causing a material chance sheet value of assets and libilities within the next financial year:
Related parties include the shareholders, members of the parent company of the Company, their close family members and companies in which the said persons have control or significant influence.
Post-oeriod-end events that provide additional information at the balance sheet date (adjusting events) are reflected in the financial statements. Post-period-end events that are not adjusting events are disclosed in the notes when material.
Contingent liablities are not recognised in the financial statements. They are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. A contingent asset is not recognised in the financial statements but disclosed when an inflow of economic benefits is probable.
Earnings per share are calculated by dividing the net profit or loss for the year attributable to the weighted-average number of shares outstanding during the year.
| Parent company |
Group | Parent company |
Group | |
|---|---|---|---|---|
| 2016 | 2016 | 2015 | 2015 | |
| EUR | EUR | EUR | EUR | |
| Income from sales of goods | 2 162 766 | 2 163 846 | 5 472 927 | 5 503 519 |
| Income from sales of gold scrap | 1 958 284 | 1 958 284 | 1 947 151 | 2 350 149 |
| Income from sales of vehicles | 19 523 | 19 523 | 64 014 | 64 014 |
| Other income, loan and mortgage realization and | ||||
| storage commissions | 654 680 | 654 680 | 207 040 | 207 285 |
| 4 795 253 | 4 796 333 | 7 691 132 | 8 124 967 |
| 2016 | 2016 | 2015 | 2015 | |
|---|---|---|---|---|
| EUR | EUR | EUR | EUR | |
| Sales of product in Latvia | 2 182 289 | 2 183 369 | 5 536 941 | 5 567 533 |
| Sales of product to EU | ||||
| Sales of gold scrap in Latvia | 1 958 284 | 1 958 284 | 1 947 151 | 2 350 149 |
| Sales of services in Latvia | 654 680 | 654 680 | 207 040 | 207 285 |
| Sales of services in EU | ||||
| 4 795 253 | 4 796 333 | 7 691 132 | 8 124 967 | |
| (2) Cost of sales |
||||
| 2016 | 2016 | 2015 | 2015 | |
| EUR | EUR | EUR | EUR | |
| Cost of pledges taken over | 3 436 835 | 3 436 835 | 5 610 314 | 6 020 600 |
| Goods and accessories purchased | 12 500 | 12 500 | 18 763 | 18 808 |
| 3 449 335 | 3 449 335 | 5 629 077 | 6 039 408 |
*In 2015 there has been made reclassification of net book values of debtors debts sold of Group in amount of 1 543 EUR, excluding from costs of sales and including in selling expenses of the Group.
| 10 298 728 | 10 627 654 | 9 547 347 | 9 974 805 | |
|---|---|---|---|---|
| Accrued interest income | 44 170 | 78 710 | (96 350) | (96 350) |
| Interest income on unsecured loans | 6 233 252 | 6 527 638 | 5 937 341 | 6 177 487 |
| Interest income on mortgage loans | 23 327 | 23 327 | 37 536 | 37 536 |
| Interest income on loans to the vehicle pledges | 70 799 | 70 799 | 177 465 | 177 465 |
| Interest income on pledges realization* | 834 440 | 834 440 | 30 376 | 30 376 |
| Interest income on loans issued against pledge | 3 092 740 | 3 092 740 | 3 460 979 | 3 648 291 |
| EUR | EUR | EUR | EUR | |
| 2016 | 2016 | 2015 | 2015 | |
* Interest income on mortgage realization separated from interest income on loans issued against pledge.
| Parent company |
Group | Parent company |
Group | |
|---|---|---|---|---|
| 2016 EUR |
2016 EUR |
2015 EUR |
2015 EUR |
|
| Bonds' coupon expense | 904 891 | 904 891 | 1 057 803 | 1 057 803 |
| Interest expense on lease | 6 726 | 6 726 | 5 051 | 5 051 |
| Interest expense on other borrowings | 485 112 | 484 341 | 97 694 | 98 493 |
| Net loss on foreign exchange | 170 | 170 | 524 | 615 |
| 1 396 899 | 1 396 128 | 1 161 072 | 161 962 |
| Parent | Group | Parent | Group | |
|---|---|---|---|---|
| company | company | |||
| 2016 | 2016 | 2015 | 2015 | |
| EUR | EUR | EUR | EUR | |
| Salary expenses | 2 157 638 | 2 217 421 | 2 028 651 | 2 132 013 |
| Social insurance | 505 974 | 520 077 | 476 522 | 497 899 |
| Provisions for unused annual leave and bonuses | 12 606 | 17 908 | 35 154 | 35 154 |
| Rental expense | 818 199 | 831 348 | 807 882 | 862 600 |
| Utilities expense | 210 879 | 212 793 | 212 177 | 217 766 |
| Non-deductible VAT | 207 357 | 220 005 | 226 589 | 256 598 |
| Communication expenses | 63 887 | 65 224 | 57 867 | 60 903 |
| Maintenance expenses | 51 068 | 53 871 | 59 297 | 82 941 |
| Depreciation of fixed assets | 193 937 | 195 264 | 237 959 | 245 494 |
| Security expenses | 24 222 | 24 312 | 26 674 | 27 076 |
| Goods and fixed assets write-off | 209 785 | 209 785 | 227 132 | 250 987 |
| Advertising | 397 702 | 406 395 | 390 989 | 408 858 |
| Business trip expenses | 6 488 | 6 488 | 7 527 | 8 778 |
| Provisions for doubttul debtors and illiquid stocks | 634 848 | 704 639 | 117 300 | (55 903) |
| Transportation expenses | 79 446 | 79 446 | 81 636 | 81 636 |
| Renovation expenses | 60 597 | 60 784 | 41 736 | 41 736 |
| Other expenses | 85 743 | 98 176 | 128 595 | 173 341 |
| 5 720 376 | 5 923 936 | 5 163 687 | 5 327 877 |
* In 2015 there has been made reclassification of net book values of debts sold of Group in amount of 1543 EUR, excluding from costs of sales and including in selling expenses of the Group.
| 2016 | 2016 | 2015 | 2015 | |
|---|---|---|---|---|
| EUR | EUR | EUR | EUR | |
| Salary expenses | 1 279 135 | 1 279 135 | 1 854 083 | 1 868 545 |
| Social insurance | 300 183 | 300 183 | 338 100 | 343 628 |
| Provisions for unused annual leave and bonuses | (56 831) | (56 831) | 48 783 | 48 783 |
| Office rent | 49 536 | 49 536 | 55 544 | 55 554 |
| Office expenses | 33 480 | 33 480 | 39 552 | 44 476 |
| Bank commission | 103 913 | 106 288 | 29 062 | 30 988 |
| Audit expense | 13 500 | 15 759 | 12 500 | |
| Communication expenses | 20 214 | 20 214 | 17 509 | 12 500 17 573 |
| State fees and duties, licence expense | 24 455 | 26 878 | 34 354 | 64 666 |
| Legal advice | 37 588 | 39 834 | 29 542 | 32 428 |
| Information database subscriptions, maintenance | 128 398 | 132 644 | 156 968 | |
| Membership fees in professional organizations | 41 296 | 41 496 | 26 084 | 162 129 |
| Other administrative expenses | 14 464 | 17 276 | 21 294 | 26 084 30 935 |
| 1 989 331 | 2 005 892 | 2 663 375 | 2 738 289 |
| Parent | Group | Parent | Group | |
|---|---|---|---|---|
| company | company | |||
| 2016 | 2016 | 2015 | 2015 | |
| EUR | EUR | EUR | EUR | |
| Income from the cession | 4 320 | 4 320 | ||
| Income from the dividends | 92 315 | |||
| Other income | 43 336 | 37 332 | 45 496 | 56 268 |
| 135 651 | 37 332 | 49 816 | 60 588 | |
| (8) Other operating expenses |
||||
| 2016 | 2016 | 2015 | 2015 | |
| EUR | EUR | EUR | EUR | |
| Fines | 2 688 | 2 688 | 1 608 | 1 754 |
| Other expenses | 19 337 | 19 337 | 56 848 | 57 215 |
| Goods written-off above trade loss norm | 38 423 | 38 423 | 59 362 | 59 362 |
| Donations | 46 500 | 50 000 | 32 000 | 35 000 |
| Losses from cession | 1 347 105 | 1 371 747 | 968 780 | 1 032 538 |
| 1 454 053 | 1 482 195 | 1 118 598 | 1 185 869 | |
| a) Corporate income tax for the reporting year |
||||
| 2016 | 2016 | 2015 | 2015 | |
| EUR | EUR | EUR | EUR | |
| Deferred corporate income tax charge (see | ||||
| Note 13) | (1 647) | (1 647) | (26 185) | (26 185) |
| Corporate income tax charge for the current year | 226 027 | 244 763 | 206 856 | 220 676 |
| 224 380 | 243 116 | 180 671 | 194 491 |
Corporate income tax differs from the theoretically calculated tax amount:
| Profit before taxation | 1 219 638 | 1 203 833 | 1 552 486 | 1 706 955 |
|---|---|---|---|---|
| Theoretically calculated tax at a tax rate of 15 % | 182 946 | 180 575 | 232 873 | 256 043 |
| Expenses not deductible for tax purposes | 80 959 | 105 041 | (25 002) | (31 802) |
| Donations | (39 525) | (42 500) | (27 200) | (29 750) |
| 224 380 | 243 116 | 180 671 | 104 704 |
| Concessions, patents, trademarks and similar rights |
Other intangible assets |
Other fixed assets and inventory |
Advances | Leasehold improvements |
Total | |
|---|---|---|---|---|---|---|
| EUR | EUR | EUR | EUR | EUR | EUR | |
| Cost | ||||||
| 31.12.2015 | 33 902 | 905 693 | 46 858 | 325 971 | 1 312 424 | |
| Additions | 6 637 | 10 000 | 55 088 | 59 109 | 13 604 | 144 438 |
| Disposals | (61 260) | (61 260) | ||||
| 31.12.2016 | 40 539 | 10 000 | 899 521 | 105 967 | 339 575 | 1 395 602 |
| Depreciation | ||||||
| 31.12.2015 | 14 188 | 549 506 | 232 550 | 796 244 | ||
| Charge for 2016 | 9 200 | 556 | 184 180 | - | 39 099 | 233 035 |
| Disposals | (56 792) | (56 792) | ||||
| 31.12.2016 | 23 388 | 556 | 676 894 | - | 271 649 | 972 487 |
| Net book value | ||||||
| 31 2 2016 | 17 151 | 9 444 | 222 627 | 105 967 | 67 926 | 423 115 |
| Net book value | ||||||
| 31.12.2015 | 19 714 | 356 187 | 46 858 | 93 421 | 516 180 |
As at 31 December 2016 the residual value of the fixed assets acquired under the terms of financial lease was 164 557 euro (31.12.2015: 179 293 euro). The ownership of those fixed assets will be transferred to the Group only after settlement of all lease liabilities.
| Concessions, patents, trademarks and |
Other intangible assets |
Other fixed assets and inventory |
Advances | Goodwill | Leasehold improvements |
Total |
|---|---|---|---|---|---|---|
| EUR | EUR | EUR | EUR | EUR | EUR | EUR |
| 33 902 | 905 693 | 46 858 | 127 616 | 1 440 040 | ||
| 6 637 | 25 034 | 67 056 | 59 109 | 18 764 | 176 600 | |
| (61 260) | (61 260) | |||||
| 40 539 | 25 034 | 911 489 | 105 967 | 127 616 | 344 735 | 1 555 380 |
| 14 188 | 549 506 | 232 550 | 796 244 | |||
| 9 200 | 850 | 184 701 | 39 272 | 234 023 | ||
| (56 792) | (56 792) | |||||
| 23 388 | 850 | 677 415 | - | 271 822 | 973 475 | |
| 17 151 | 24 184 | 234 074 | 105 967 | 127 616 | 72913 | 581 905 |
| 19 714 | 356 187 | 46 858 | 127 616 | 93 421 | 643 796 | |
| similar rights | 325 971 |
The Parent company is the sole shareholder of the subsidiary SlA "Expresslnkasso" (100%), of the subsidiary SlA "MoneyMetro" (100%), of the subsidiary Sla "EC Finance" (100%) and of the subsidiary SlA "MoneyMetro"
was signed an agreement for selling 100%) and of the subsidiary SlA "EC Investments" was signed an agreement for elling 100% shares of the subsidiary SlA "EC hivesments" (100%). On 1 February 2016
1 EUR ner each, which are of the subsidiary SlA "EC Investmen 1 EUR per each, which are not yet paid (payment tem is agreed as 31.12.00) and more and a nominal value
1 EUR per each, which are not yet paid (payment tem is agreed as 31.12 "Assets held for sale" (see point C of the current note).
| Name | Acquisition price of subsidiaries |
Participating interest in share capital of subsidiaries |
||
|---|---|---|---|---|
| 31.12.2016. | 31.12.2015. | 31.12.2016. | 31.12.2015. | |
| EUR | EUR | % | 9/0 | |
| SIA Expressinkasso SIA MoneyMetro from 23.02.2015 SIA EC Finance from 01.12.2015. SIA EC Investments from 06.11.2015. |
2 828 880 000 3 000 |
2 828 880 000 3 000 3 000 |
100 100 100 100 |
100 100 100 100 |
| 885 828 | 888 828 |
| Name | Shareholders' funds | Profit/ (loss) for the period | |||
|---|---|---|---|---|---|
| Address | 31.12.2016. EUR |
31.12.2015. EUR |
2015 EUR |
2015 | |
| SIA Expressinkasso | Raunas street 44k-1. | EUR | |||
| LV-1039 Riga, Latvia | 233 209 | 203 306 | 122 218 | 92 315 |
Basic operations of SIA ExpressInkasso are debt collection services.
| SIA MoneyMetro (from 30.04.2015. till 29.07.2016. SIA Banknote, till 30.04.2015- SIA Rīgas pilsētas lombards) |
Raunas street 44k-1, LV-1039 Riga, Latvia |
||||
|---|---|---|---|---|---|
| 754 712 | 819 039 | (64 327) | (39 847) | ||
| Basic operation of SIA MoneyMetro is providing consumer lending services. | |||||
| SIA EC Finance from 01.12.2015. |
Raunas street 44k-1, LV-1039 Riga, Latvia |
2 883 | 3 000 | (117) | |
| Basic operations of SIA EC Finance are activities of holding companies. | |||||
| SIA EC Investments from 06.11.2015 |
Raunas street 44k-1. LV-1039 Riga, Latvia |
N/A | (15 319) | N/A | (18 319) |
Basic operations of SIA EC Investments are activities of holding companies.
On 01.02.2016. the agreement was signed for selling 3 000 (three thousand) shares (100%) with nominal value 1 EUR per each of SA EC Investments in Selling s U00 (thee thrusand) shares (100%) with nominal value 1 EUR per each
of 2 000 EUR is received in sening so segreed in amount of 3 000 EUR. On of 2 000 EUR is received. The remaint of 3 000 EUR. On 30.12.2013. the part of payment in amount
in the Company's comosition of partner in amount of 1 000 EUR is agreed to be in the Company's composition of participants will be made no later than 31.2.2017.
| EUR | |
|---|---|
| Participating interest in SIA EC Investments shares as at 31.12.2015. | |
| Paid part of SIA EC Investments shares | 3 000 |
| (2 000) | |
| Assets held for sale 31.12.2016. | 1 000 |
| Loans to members | ||||
|---|---|---|---|---|
| Cost | EUR | |||
| 31.12.2015. | 875 267 | |||
| Loans issued | 1 007 840 | |||
| Loans repaid | (666 506) | |||
| 31.12.2016. | 1 216 601 | |||
| Net book value as at 31.12.2016 | ||||
| Net book value as at 31.12.2015 | 1 216 601 | |||
| 875 267 |
Interest on borrowing is 0% – 2.67% per annum. The loan maturity - 31 December 2018 (including the loan principal amount meller on birdling is tri- 2.07% per annum. he loan maturity - 1 Pecoverability of the loan principal amount
and accued interest). The Company's management has assessed th provision is not necessary. Loans are not secured. Loans are denominated in euro.
| 2016 EUR |
2015 EUR |
|
|---|---|---|
| Deferred tax asset at the beginning of the reporting year. | 143 605 | 117 420 |
| Increase of deferred tax asset during the reporting year (see Note 9) | 1 647 | 26 185 |
| Deferred tax asset at the end of the reporting year | 145 252 | 143 605 |
| Deferred tax has been calculated from the following temporary differences between assets and liabilities values for financial and tax purposes: |
||
| 31.12.2016. | 31.12.2015. | |
| EUR | EUR | |
| Temporary difference on fixed assets depreciation | 3 504 | 10 946 |
| Temporary difference on provisions for unused annual leave and bonuses |
||
| Temporary difference on provisions for slow moving and obsolete stock | (42 195) | |
| Deferred tax asset | (148 756) | (112 356) |
| (145 252) | (143 605) | |
| (14) Goods for sale of the Parent company and the Group | ||
| 31.12.2016. | 31.12.2015. | |
| EUR | EUR | |
| Goods for sale and pledges taken over | 742 486 | |
| Gold scrap | 189 478 | 1 155 443 297 156 |
| Provision for obsolete stock and inventory impairment | (231 249) | (314 189) |
| 700 715 | 1 138 410 | |
| a) Age analysis of stock |
||
| 31.12.2016. | 31.12.2015. | |
| EUR | EUR | |
| Outstanding for 0-180 days | 355 372 | 535 910 |
| Outstanding for 181-360 days | 208 003 | 441 564 |
| Outstanding for more than 360 days | 368 589 | 475 125 |
| Total stock | 931 964 | 1 452 599 |
| Provision for obsolete stock b) |
||
| 2016 | 2015 | |
| EUR | EUR | |
| Provisions for obsolete stock at the beginning of the year Written-off |
314 189 | 162 451 |
| Additional provisions | (337 146) | (635 893) |
| Provisions for obsolete stock at the end of the year | 254 206 | 787 631 |
| 231 249 | 314 189 |
(15) Loans and receivables
| Parent company |
Group | Parent | Group |
|---|---|---|---|
| 31.12.2016. | 31.12.2016. | 31.12.2015. | 31.12.2015. |
| EUR | EUR | EUR | EUR |
| 55 955 | 55 955 | 156 022 | 156 022 |
| 908 153 | 908 153 | 389 046 | |
| 964 108 | 964 108 | 545 068 | 545 068 |
| 1 808 673 | 1 808 673 | 2 535 083 | |
| 673 763 | 673 763 | ||
| 7 863 648 | 8 870 377 | 3 791 853 | 4 120 862 |
| 554 721 | 589 261 | 510 551 | 510 551 |
| (1 281 032) | (1 350 823) | (710 540) | |
| 9 619 773 | 10 591 251 | 6 126 947 | 6 455 956 |
| 10 583 881 | 11 555 359 | 6 672 015 | 7 001 024 |
| company 389 046 2 535 083 (710 540) |
All loans are issued in euro.
b
Long term receivables for the loans issued don't exceed 5 years.
In 30 June 2016 and 1 December 2016 were concluded contracts with SlA "Expressinkass" about cession of bad receivable amounts. The carrying value of the caim amount - accordingly EUR 1 202 estila States (about dession of backers).
according to the independent evolunters i eseasonaly EUR 1 20 acording to the independent evaluators' assessment – accordingly EUR 3 446, from ensalion
the issued hans within the Group was resembly EUR 360 868 and EUR 168 363. Loss from the issued loans within the Group were reognised in the current your 10 and 17 October 2016 and 17 October 2016 the subsidiary company SIA "Express likes of society with a third near en a 17 October 2016 the subsidiary
of the claim in the subsidiary's background a third party for the bat received ano of the claim in the subsidiary's balace stority to the bad receivale anount cession. The carrying value accordingly EUR 231 Salaro enot - acoordingly EUR 255 827 and EUR 203 364, the anount of come of contribution of
The claims in amount of EUR 2 538 391 (31.12.2015: EUR 2 233 622) are secured by the value of the collateral. Claims against debtors for loans issued against please is news by pletges, whose fair value is about EUR 4 235 140, which is 1.6 times higher than the carving value, therefore provisions for verdue loans are not made. All pledges, for which lost imes
delaved, becomes the Groun's roosing for overder on the Al delayed, becomes the Group's property and are realized in the Group's stores.
| Parent company |
Group | Parent company |
Group | |
|---|---|---|---|---|
| 31.12.2016. | 31.12.2016. | 31.12.2015. | 31.12.2015. | |
| EUR | EUR | EUR | EUR | |
| Receivables not yet due | 7 858 894 | 8 491 645 | ||
| Outstanding 1-30 days | 1 520 508 | 5 306 083 | 5 307 491 | |
| Outstanding 31-90 days | 1 577 284 | 440 750 | 440 750 | |
| Outstanding 91-180 days | 1 077 219 | 1 103 429 | 480 773 | 480 773 |
| Outstanding for 181-360 days | 869 553 | 871 591 | 566 021 | 566 021 |
| 224 905 | 415 356 | 509 602 | 704 883 | |
| Outstanding for more than 360 days | 313 834 | 446 877 | 79 326 | 211 646 |
| Total claims against debtors for loans issued | 11 864 913 | 12 906 182 | 7 382 555 | 7 711 564 |
| Provisions for bad and doubtful trade and other receivables | ||||
| Parent | Group | Parent | Group | |
| company | company | |||
| 2016 | 2016 | 2015 | ||
| EUR | EUR | 2015 | ||
| Provisions for bad and doubtful receivables | EUR | EUR | ||
| at the beginning of the year | ||||
| Written-off | 710 540 | 710 540 | 676 893 | 676 893 |
| Additional provisions | (36 001) | (36 001) | (4 945) | (4 945) |
| 606 493 | 676 284 | 38 592 | 38 592 | |
| Provisions for bad and doubtful receivables at the | ||||
| end of the year | 1 281 032 | 1 350 823 | 710 540 | 710 540 |
| Parent company |
Group | Parent company |
Group | |
|---|---|---|---|---|
| 31.12.2016. EUR |
31.12.2016. EUR |
31.12.2015. EUR |
31.12.2015. EUR |
|
| Debts for goods and fixed assets sold, prepayment ExpressCreditEesti OU liability for loan issued and loan interest |
20 949 | 107 | 1 408 | 1 408 |
| SIA Banknote (prev. A.Kredīts) liability for loan | 5 031 | 5 031 | ||
| issued , loan interest and services delivered SIA Expressinkasso debt for the assigned rights of |
150 613 | 150 613 | 99 379 | 99 379 |
| claim Liabilities of the Parent company's board for the loan |
289 113 | |||
| issued and loan interest SIA EC Investments liability for loan issued and loan interest |
18 426 | 18 426 | 37 | 37 |
| SIA MoneyMetro liability for loan issued, loan interest | 40 522 | |||
| and debt for the assigned rights of claim | 48 518 | |||
| Subsidiaries debts for dividends | 92 315 | |||
| 330 821 | 169 146 | 435 490 | 105 855 |
The interest rate on loans to related parties – 2.67-4.23 %. All loans and other claims denominated in euro.
| Parent company |
Group | Parent company |
Group | |
|---|---|---|---|---|
| 31.12.2016. | 31.12.2016. | 31.12.2015. | 31.12.2015. | |
| EUR | EUR | EUR | EUR | |
| Receivables not yet due | 309 552 | 168 736 | 386 309 | 43 340 |
| Outstanding for 1-180 days | 21 269 | 410 | 49 181 | 62 515 |
| Outstanding for 181-360 days | ||||
| Outstanding for more than 360 days | ||||
| Total receivables from affiliated companies | 330 821 | 169 146 | 435 490 | 105 855 |
| Other debtors (17) |
||||
| 31.12.2016. | 31.12.2016. | 31.12.2015. | 31.12.2015. | |
| EUR | EUR | EUR | EUR | |
| Loans to employees and other third parties | 3 916 | 3 916 | 16 513 | 16 513 |
| Guarantee deposit | 63 576 | 65 197 | 64 074 | 86 305 |
| Other debtors | 182 929 | 182 929 | 23 572 | 196 702 |
| Provisions for bad and doubtful other debtors | (2 084) | (2 084) | (2 084) | (2 084) |
| 248 337 | 249 958 | 102 075 | 297 436 | |
| a) Provisions for bad and doubtful other debtors |
||||
| 2016 | 2015 | |||
| Provisions for bad and doubtful other debtors | EUR | EUR | ||
| at the beginning of the year | 2 084 | |||
| Written-off | (1 408) | 1 659 | ||
| Additional provisions | 1 408 | (149) 574 |
||
| Provisions for bad and doubtful other debtors | ||||
| at the end of the year | 2 084 | 2 084 | ||
| b) Parent company other debtors by currency, translated into EUR: |
||||
| 31.12.2016. | 31.12.2016. EUR |
% | 31.12.2015. EUR |
31.12.2015. % |
| EUR | Car Car Carolin a class of the Career of Children College of Children College of Children College of Children College of Children % |
VI . I dan a has V J. EUR |
31.12.2015. ్దం |
|
|---|---|---|---|---|
| EUR Provisions EUR |
228 497 (2 084) |
91.17 | 103 351 (2 084) |
99.22 |
| CZK USD |
1 104 12 270 |
0.45 | ||
| PLN Total other debtors |
8 550 | 4.94 3.44 |
808 | 0.78 |
| 248 337 | 100% | 102 075 | 100% |
Notes (continued)
| Group other debtors by currency, translated into EUR: | 31.12.2016. | 31.12.2016. | 31.12.2015. | 31.12.2015. |
|---|---|---|---|---|
| EUR | 0/0 | EUR | % | |
| EUR | 230 118 | 91.23 | 296 753 | 99.08 |
| Provisions EUR | (2 084) | (2 084) | ||
| CZK | 1 104 | 0.44 | ||
| USD | 12 270 | 4.91 | 2 767 | 0.92 |
| PLN | 8 550 | 3.42 | ||
| Total other debtors | 249 958 | 100% | 297 436 | 100% |
| Parent company |
Group | Parent company |
Group | |
|---|---|---|---|---|
| 31 222016. | 31.12.2016. | 31.12.2015. | 31.12.2015. | |
| EUR | EUR | EUR | EUR | |
| Repayable upon request | 129 672 | 131 293 | 64 074 | 86 305 |
| Receivables not yet due | 87 926 | 87 926 | 35 910 | 204 858 |
| Outstanding for 1-30 days | 873 | 873 | ||
| Outstanding for 31-90 days | 435 | 435 | ||
| Outstanding for 91-180 days | 29 151 | 29 151 | 4 182 | |
| Outstanding for 181-360 days | 515 | 515 | ||
| Outstanding for more than 360 days | 2 364 | 2 364 | 3 660 | 3 660 |
| Provisions | (2 084) | (2 084) | (2 084) | (2 084) |
| Total other debtors | 248 337 | 249 958 | 102075 | 207 426 |
| Parent company |
Group | Parent company |
Group | |
|---|---|---|---|---|
| 31.12.2016. | 31.12.2016. | 31.12.2015. | 31.12.2015. | |
| EUR | EUR | EUR | EUR | |
| Insurance License for lending services and debt recovery |
4 521 | 4 521 | 6 942 | 6 942 |
| services | 14 350 | 28 575 | 15 051 | 16 192 |
| Prepayment for rent and other costs | 55 795 | 59 645 | 11 199 | 12 029 |
| Total deferred expenses | 74 666 | 92 741 | 33 192 | 35 163 |
| (19) Cash and bank |
||||
| 31.12.2016. | 31.12.2016. | 31.12.2015. | 31.12.2015. | |
| EUR | EUR | EUR | EUR | |
| Cash at bank | 897 966 | 999 688 | 255 599 | 289 924 |
| Cash in hand | 229 265 | 279 722 | 183 672 | 203 667 |
| 1 127 231 | 1 279 410 | 439 271 | 493 591 |
All the Parent company's and the Group's cash is in euro.
The Parent Company's share capital has been increased on 29 December 2016, and as at 31.12.2016. it consists of 1 500 000
ordinary shares, each of them with a nominal volue o more cases company o that ouplar nas been niceased on 29 December 2016, and as at 31.72.2016. it only shares of 1.60 0
ordinary shares, each of them with a nominal value of E
| Parent company |
Group | Parent company |
Group | |
|---|---|---|---|---|
| 31.12.2016. | 31.12.2016. | 31.12.2015. | 31.12.2015. | |
| EUR | EUR | EUR | EUR | |
| Bonds issued | 5 224 000 | 5 224 000 | 5 500 000 | 5 500 000 |
| Bonds commission | (10 240) | (10 240) | (10 352) | (10 352) |
| Total long-term part of bonds issued | 5 213 760 | 5 213 760 | 5 489 648 | 5 489 648 |
| Bonds issued | 1 000 000 | 1 000 000 | 1 000 000 | |
| Bonds commission | (13 203) | (13 203) | 1 000 000 | |
| Interest accrued | 30 976 | 30 976 | (18 182) 34 453 |
(18 182) 34 453 |
| Total short-term part of bonds issued | 1 017 773 | 1 017 773 | 1 016 271 | 1 016 271 |
| Bonds issued, total | 6 224 000 | 6 224 000 | 6 500 000 | 6 500 000 |
| Interest accrued, total | 30 976 | 30 976 | 34 453 | 34 453 |
| Bonds commission, total | (23 443) | (23 443) | (28 534) | (28 534) |
| Bonds issued net | 6 231 533 | 6 231 533 | 6 505 919 | 6 505 919 |
As at the date of signing of the annual report the Parent company of the Group has registered secured bonds (ISIN LV0000801280) with the Latvia Central Depository of the Showing terms = number of financial instruments 5 000 with the nominal value of 400 euro, with the total nominal value of 2000 of mindal instruments 5 000 with the end once a month on the 25" date. The principal member in a querie in the enount of 50 euro per bond is part one a month on
25 November 2018. On 28 March 2014 the publican a querier of 50 euro p 25 November 2018. On 28 March 2014 the public of the amount of the bonds . The maturity of the bonds started.
As at the date of signing of the annual report the Parent company of the Group has registered bonds (ISIN LV000801322) with the Latvia Central Deposition on the following terms – number of financial instruments 3 500 with the nominal value of 1000 euro, with the total nominal value of 3 500 early - 15%, coupon is paid once a morth on the morth on the 2000 million the 25" alte. The principal amount is to be repaid once in the amount of 125 euro per bond starting 25 March 2019. The maturity of the maturity of to or open onto in a quarter in the alliodin of 125 euro per oond starting 25 March 2019. The maturity of
list was started list was started.
As at the date of signing of the annual report the Parent company of the Group has registered bonds (ISIN LV000802213) with the Latvia Central Depositor on the following terms -number of securities (15)N LV000802213) with 31.12.2016.: 974. Nominal value 1 000 euro per each with the total not individe of securities situated on the annual report: 1 574 with a Nominal value 1 000 euro per each, nominal value of 1 574 000 euro. Coupon rate - 14%, coupon is paid once a ronth on the 25" date. The principal amount (EUR 100 per each bond) is to be repaid on 25.10.2021. Issued bonds are not in public trade. Bonds are issued starting from 19.10.2016.
The bonds (ISN LV0000801280) are secured by the commercial pledge of the total assets and shares of the Group, as well as future components of these assess. The bonds are also secured by the financial pleage of the Group, as well as
instruments (if existent) of the Group beld of AS "Posicial in instruments (if existent) of the Group als also secured by the interest assets and financial assets proprionately to the orderner in case of pledge realisation if the parent company has breached their conditions of coupon payment or principal repayment.
The following pledge agreements with the total pledge value of EUR 6 million are concluded. The pledge agreements have been concluded with the following persons/entities:
Each pledge guarantees the claim in the total claim amount:
with the Parent company on 100% shares of SIA "EkspressInkasso";
with a subsidiary SIA "Ekspresslokated" on aggregate movable property and future components of these assets;
with the Parent company on aggregate movable property and future with the Parent company on aggregate movable property and future components of these assets.
are excluded from the pleting are excluded from the pledge listing
| newsen nom no nie knowge llouily Gross minimum payments |
future NPV of future minimum payments |
Interest expenses* |
Gross minimum payments |
future NPV of future Interest minimum payments |
expenses | |
|---|---|---|---|---|---|---|
| erm: | 31.12.2016 | 31 2 2016 | 31.12.2016 | 31.12.2015 | 31.12.2015 | 31.12.2015 |
| EUR | EUR | EUR | EUR | EUR | EUR | |
| up to one year | 1 839 693 | 1 000 000 | 839 693 | 1 915 833 | 1 000 000 | 915 833 |
| - 5 years | 6 858 484 | 5 224 000 | 634 484 | 7 760 781 | 5 500 000 | 2 260 781 |
| 8 698 177 | 6 224 000 | 2 474 177 | 9 676 614 | 6 500 000 | 3 176 614 |
* literest expenses are calculated by base sum of bonds issued at a nominal value on 31.12.2016. As at the of signing of the anual report the bonds are issued in a total nominal value of 3 1.2.2016. As at the date of signing of
term up to one veal with furrest expenses in ament of 0.000 EUR (1 term up to one year) with future interest expenses in amount of 2 800 200 EUR of them are repayable in a tem
up to one year). up to one year).
| Parent company |
Group | Parent company |
Group | |
|---|---|---|---|---|
| 31.12.2016. EUR |
31.12.2016. EUR |
31.12.2015. EUR |
31.12.2015. EUR |
|
| Long-term finance lease | 113 074 | 113 074 | 166 741 | 166 741 |
| Other long-term loans | 1 178 958 | 1 178 958 | 500 000 | 500 000 |
| Total other long-term loans | 1 292 032 | 1 292 032 | 666 741 | 666 741 |
| Short-term finance lease | 51 483 | 51 483 | 54 846 | 54 846 |
| Other short-term loans | 4 796 494 | 4 796 494 | 330 000 | 330 000 |
| Total other short-term loans | 4 847 977 | 4 847 977 | 384 846 | 384 846 |
| Total other loans | 6 140 009 | 6 140 009 | 1 051 587 | 1 051 587 |
The Parent company has acquired fixed assets on finance lease. As at 31 December 2016 the interest rate was set as 3 M Euribor + 5.5% and 6M Euribor + 3-3.5%.
The Parent company has received loans from private individuals and legal entities. The interest is charged from 11% to 15 % p.a. The loans are received without security granted.
Total future minimum lease payments - present value and interest expense for Parent company other borrowings and borrowings from affiliated companies:
| Gross future minimum payments 31.12.2016 EUR |
NPV of future minimum payments 31 222016 EUR |
Interest expenses 31.12.2016 EUR |
Gross future minimum payments 31.12.2015 EUR |
NPV of future minimum payments 31.12.2015 EUR |
Interest expenses 31.12.2015 EUR |
|
|---|---|---|---|---|---|---|
| Term: | ||||||
| up to one year | 5 490 134 | 4 847 977 | 642 157 | 490 549 | 384 846 | 105 703 |
| 2 - 5 years | 1 487 705 | 1 292 032 | 195 673 | 699 255 | 666 741 | 32 514 |
| 6 977 839 | 6 140 009 | 837 830 | 1 189 804 | 1 051 587 | 138 217 |
Total future minimum lease payments – present value and interest expense for Group other borrowings from affiliated companies:
| Gross future minimum payments 31.12.2016 EUR |
NPV of future minimum payments 31.12.2016 EUR |
Interest expenses 31.12.2016 EUR |
Gross future minimum payments 31.12.2015 EUR |
NPV of future minimum payments 31.12.2015 EUR |
Interest expenses 31 2 2015 EUR |
|
|---|---|---|---|---|---|---|
| Term: | ||||||
| up to one year | 5 490 134 | 4 847 977 | 642 157 | 490 549 | 384 846 | 105 703 |
| 2 - 5 years | 1 487 705 | 1 292 032 | 195 673 | 699 255 | 666 741 | 32 514 |
| 6 977 839 | 6 140 009 | 837 830 | 1 189 804 | 1 051 587 | 138 217 |
| Parent | Group | Parent | Group | |
|---|---|---|---|---|
| company 31.12.2016. |
31 2 2016. | company 31.12.2015. |
31 2 2015. | |
| EUR | EUR | EUR | EUR | |
| Debt to SIA MoneyMetro for permanent share | ||||
| purchase, realized goods and fixed assets Accrued liabilities for facilities management and |
755 013 | |||
| utilities to SIA Banknote | 889 | 889 | ||
| Loan from AS Naudasklubs | 16 550 | 16 550 | ||
| Interest accrued on AS Naudasklubs Debt for the services provided by |
257 | 257 | ||
| the SIA AE Consulting Debt for received payments of the assigned rights of |
181 | 1 289 | ||
| claim to SIA ExpressInaksso | 7 376 | |||
| Total liabilities to related parties | 7 376 | 181 | 772 709 | 18 985 |
| Parent | Group | Parent | Group | |
|---|---|---|---|---|
| company | company | |||
| 31.12.2016. | 31 2 2016. | 31.12.2015. | 31 2 2015. | |
| EUR | EUR | EUR | EUR | |
| Debts to suppliers | 166 090 | 173 985 | 144 253 | 147 926 |
| Salaries | 153 442 | 160 042 | 166 172 | 168 162 |
| Vacation liabilities* | 239 440 | 244 742 | 283 675 | 283 675 |
| Amounts due to loan recipients | 96 738 | 96 738 | 35 991 | 35 991 |
| Other liabilities | 57 778 | 59 630 | 45 359 | 45 517 |
| 713 488 | 735 137 | 675 450 | 681 271 |
* Reclassification from vacation accrual to vacation liabilities, calculated using accurate average earnings of employees on 31.12.2016.
| 31.12.2016. | 31.12.2016. | 31.12.2015. | 31.12.2015. | |
|---|---|---|---|---|
| EUR | % | EUR | % | |
| EUR | 593 977 | 83.25 | 674 420 | 99.85 |
| GBP | 112 496 | 15.77 | 1 030 | 0.15 |
| CZK | 4 109 | 0.57 | ||
| USD | 2 906 | 0.41 | ||
| Total trade creditors and accrued liabilities | 713 488 | 100% | 675 450 | 100% |
Group's trade creditors by currency, translated into EUR:
| 31.12.2016. | 31 12 2016. | 31.12.2015. | 31.12.2015. | ||
|---|---|---|---|---|---|
| EUR | % | EUR | % | ||
| EUR | 615 610 | 83.74 | 680 241 | 99.85 | |
| GBP | 112 512 | 15.30 | 1 030 | 0.15 | |
| CZK | 4 109 | 0.56 | - | ||
| USD | 2 906 | 0.40 | |||
| Total trade creditors and accrued liabilities | 735 137 | 100% | 681 271 | 100% | |
| b) | Ageing analysis of trade creditors: | ||||
| 31.12.2016. | 31.12.2016. | 31.12.2015. | 31.12.2015. | ||
| EUR | EUR | EUR | EUR |
| 713 488 | 735 137 | 675 450 | 681 271 |
|---|---|---|---|
| 7 888 | 512 | 70 724 | 72 607 |
| 705 600 | 734 625 | 604 726 | 608 664 |
Parent company's taxes and social insurance
| VAT | Corporate income tax |
Real estate tax* |
Business risk charge |
Social insurance |
Payroll tax |
Vehicles tax |
Natural resource tax |
Total | |
|---|---|---|---|---|---|---|---|---|---|
| EUR | EUR | EUR | EUR | EUR | EUR | EUR | EUR | EUR | |
| Liabilities | |||||||||
| 31.12.2015. Charge for |
22 302 | (95 487) | 104 | 99 425 | 130 576 | 3 532 | 160 452 | ||
| 2016 Penalties calculated |
171 129 | 226 027 | 269 | 1 280 | 1 165 330 | 660 648 | 13 340 | 2 238 023 | |
| for 2016 Transferred |
30 | 122 | - | 1804 | 1 956 | ||||
| to other taxes Paid in 2016 |
432 (183 015) |
110 (211 400) |
(269) | (1 305) | 745 (1 174 886) |
(1 287) (744 441) |
(13 548) | (2 328 864) | |
| Liabilities/ (overpaid) 31.12.2016. |
10 878 | (80 628) | 79 | 90 614 | 47 300 | 3 324 | 71 567 |
Group's taxes and social insurance
| VAT | Corporate income tax |
Real estate tax" |
Business risk charge |
Social insurance |
Payroll tax |
Vehicles tax |
Natural resource |
Total | |
|---|---|---|---|---|---|---|---|---|---|
| EUR | EUR | EUR | EUR | EUR | EUR | EUR | tax EUR |
EUR | |
| Liabilities | |||||||||
| 31.12.2015. Charge for |
18 613 | (104 491) | 101 | 100 489 | 131 098 | 3 532 | 14 | 149 356 | |
| 2016 Penalties calculated |
171 323 | 244 763 | 269 | 1 306 | 1 185 710 | 672 044 | 13 340 | 2 288 755 | |
| for 2016 Transferred |
30 | 122 | 1 804 | 1 956 | |||||
| to other taxes | 446 | 110 | 745 | (1 287) | (14) | ||||
| Correction | 2 783 | 2 783 | |||||||
| Paid in 2016 | (182 243) | (219 008) | (269) | (1 328) | (1 192 745) | (754 527) | (13 548) | (2 363 668) | |
| Liabilities / overpaid) 31.12.2016. |
10 952 | (78 504) | 79 | 94 199 | 49 132 | 3.324 | 70 187 |
* Real estate tax payments are performed also for the leased premises in Riga, GogoJa Street.
| 2016 | 2015 | |
|---|---|---|
| Average number of employees during the reporting year of the Parent | ||
| company | 288 | 303 |
| Average number of employees during the reporting year of the Group | 294 | 304 |
| (27) Management remuneration |
||
| 31.12.2016. | 31.12.2015. | |
| EUR | EUR | |
| Board members' remuneration: | ||
| salary expenses | 82 655 | 523 313 |
| social insurance | 19 499 | 27 797 |
| 102 154 | 551 110 |
Council members do not receive any remuneration for their work as council members.
During the year loans in the amount of the work as council members.
During the year loans in the amount of EUR 267 400 were issued to the board members. Loans in the 10 100 251 000 were repaid during the Los 201 400 were issued to the board members. Loans in the amount of
251 000 were repaid during the reporting period. Net loans in the amount No other bonuses or incentive plans for the board members implemented.
Based on the nature of the services the Parent Company's operations can be divided as follows.
| Sale of pledges taken over |
Secured loans | Non-secured loans | Other activities | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| EUR | 2016 | 2015 | 2016 | 2015 | 2016 | |||||
| 2015 | 2016 | 2015 | 2016 | 2015 | ||||||
| Assets Liabilities of the |
966 279 | 1 388 670 | 3 367 571 | 3 110 871 | 8 874 669 | 4 499 318 | 2 528 928 | 2 245 474 | 15 737 447 | 11 244 333 |
| segment | 52 950 | 158 821 | 3 153 806 | 2 888 504 | 7 831 524 | 4 220 870 | 2 125 694 | 1 897 922 | 13 163 974 | 9 166 117 |
| Income Net performance |
691 238 | 1 866 919 | 4 675 986 | 3 888 086 | 6 136 910 | 5 773 917 | 140 512 | 80 480 | 11 644 646 | 11 609 402 |
| of the segment Net financial income |
(136 240) | 50 835 | 726 060 | 982 863 | 399 383 | 371 726 | 6 055 | (33 609) | 995 258 | 1 371 815 |
| (expenses) Profit/(loss) |
(57) | (94) | (325 133) | (437 513) | (1 030 393) | (639 395) | (41 316) | (84 070) | (1 396 899) | (1 161 072) |
| before taxes | (166 954) | 57 530 | 889 748 | 1 112 307 | 489 424 | 420 684 | 7 420 | (38 035) | 1 219 638 | 1 552 486 |
| Corporate income tax |
30 715 | (6 695) | (163 690) | (129 445) | (90 041) | (48 957) | (1 365) | 4 426 | (224 380) | (180 671) |
| Other information Fixed assets and intangible assets (NBV) Depreciation and amortisation |
141 038 | 172 060 | 141 038 | 172 060 | 141 038 | 172 060 | 423 115 | 516 180 | ||
| during the | ||||||||||
| reporting period | (64 646) | (79 320) | (64 646) | (79 320) | (64 646) | (79 319) | (193 937) | (237 959) | ||
| Loans issued | 2 538 391 | 2 641 784 | 8 045 490 | 4 030 231 | 1 547 422 | |||||
| Loans received | 2 820 497 | 2 629 374 | 7 432 949 | 3 802 918 | 2 118 095 | 1 310 757 1 897 923 |
12 131 303 12 371 542 |
7 982 772 8 330 215 |
||
| EUR | Based on the nature of the services the Group's operations can be divided as follows. Sale of pledges taken over |
Secured loans | Non-secured loans | Other activities | Total | |||||
| 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | ||||
| 2015 | 2016 | 2015 | ||||||||
| Assets Liabilities of the |
966 279 | 1 388 670 | 3 367 571 | 3 138 031 | 10 176 812 | 5 002 272 | 1 481 445 | 1 205 174 | 15 992 107 | 10 734 147 |
| segment Income |
51 374 | 157 819 | 3 097 552 | 2 637 906 | 8 809 503 | 3 874 983 | 1 227 613 | 1 736 410 | 13 186 043 | 8 407 118 |
| Net performance | 692 318 | 1 890 178 | 4 675 986 | 4 075 398 | 6 465 836 | 6 010 020 | 140 512 | 83 225 | 11 974 652 | 12 058 821 |
| of the segment Net financial income |
(126 892) | 143 976 | 754 290 | 1 045 292 | 405 210 | 357 696 | (71 890) | (34 500) | 960 717 | 1 512 464 |
| (expenses) Profit/(loss) |
(57) | (117) | (298 582) | (437 502) | (1 060 490) | (639 667) | (36 999) | (84 676) | (1 396 128) | (1 161 962) |
| before taxes | (159 002) | 162 490 | 945 167 | 1 179 708 | 507 750 | 403 693 | (90 083) | (38 936) | ||
| Corporate income tax |
32 111 | (18 514) | (190 878) | (134 416) | (102 541) | (45 997) | 18 192 | 4 436 | 1 203 833 (243 116) |
1 706 955 |
| Other information Fixed assets and intangible assets (NBV) Depreciation and amortisation during the |
141 038 | 172 060 | 141 038 | 172 060 | 299 828 | 172 060 | 127 616 | 581 905 | (194 491) 643 796 |
|
| reporting period | (64 646) | (81 831) | (64 646) | (81 831) | (65 973) | (81 832) | (195 264) | (245 494) | ||
| Loans issued | ||||||||||
| Loans received | 2 538 391 | 2 641 784 | 9 016 968 | 4 359 240 | 1 385 747 | 981 122 | 12 941 106 | 7 982 146 | ||
| 2 772 695 | 2 380 411 | 8 379 096 | 3 459 669 | 1 219 750 | 1 736 411 | 12 371 542 |
The Company has concluded 92 rental agreements effective as at 31.12.2016. The term of the agreements varies from 1 to 9 The Sompany has concided 92 fental agreements effective as at 31.12.2016. The tem of the agreements varies from from the from the
| 31.12.2016. EUR |
31.12.2015. EUR |
|
|---|---|---|
| < 1 year 2 - 4 years 5 years and more |
796 393 1 100 348 109 912 |
882 204 1 905 992 |
| 2 006 653 | 141 047 2 929 243 |
In the annual report there are presented only those related parties with whom have been transactions the reporting year or in the comparative period.
| Related party | Transactions in 2016 |
Transactions in 2015 |
|---|---|---|
| Parent company's owners | ||
| "Lombards24.lv", SIA (previously "Express Holdings", SIA), reg. No.40103718685 |
||
| "AE Consulting", SIA, reg. No. 40003870736 | × X |
× |
| "Ebility", SIA, reg. No. 40103720891 | × | |
| Didzis Admīdiņš, p.c 051084-11569 | NA × |
× |
| Kristaps Bergmanis, p.c. 040578-13052 | × | N/A N/A |
| Companies and individuals under common control or significant influence | ||
| Agris Evertovskis, p.c. 081084-10631 | × | × |
| Edgars Bilinskis, p.c. 310782-10537 | N/A | × |
| "Dotcom Enterprises", AS ( now "ALPS Investments", AS), reg. No. 40103684497 |
N/A | |
| X | ||
| Subsidiary | ||
| "ExpressInkasso", SIA, reg. No. 40103211998 | X | |
| "MoneyMetro", SIA, reg. No. 40003040217 | X | × |
| "EC Investments", SIA, reg. No. 40103944745 till 01.02.2016. | X | × |
| "EC finance", SIA, reg. No. 40103950614 | × | × × |
| Other related companies | ||
| "Naudasklubs" SIA, reg. No. 40103303597 | × | × |
| "Banknote" SIA, (previously "A.Kredīts", SIA) reg. No. 40103501494 | X | X |
| "ExpressCreditEesti" OU, reg. No. 12344733 till 27.10.2016. | × | × |
| "Tigo.lv" SIA, (Iliquidated 27.05.2016), reg. No. 40103653497 | N/A | |
| "PH investīcijas", SIA, reg. No. 42103057909 | N/A | × × |
All the transactions have been performed at market rates.
| 2016 | 2015 | |
|---|---|---|
| Parent company transactions with: | EUR | EUR |
| Owners of the parent company | ||
| Cession of loans | ||
| Loans received | 320 547 | |
| Loans repaid | 9 500 | |
| Loans issued | 9 500 | |
| 992 265 | 1 649 189 | |
| Loan repayment received Interest paid |
663 237 | 2 069 749 |
| Interest received | ||
| Dividends paid | 8 467 | 34 417 |
| Services received | 700 000 | 1 309 562 |
| Services delivered | 2 210 | 3 455 |
| 120 | ||
| Goods sold | 6 797 | 24 951 |
| Fixed assets sold | ||
| Investment in shares | 200 000 | 268 |
100 - 100
I
1
1
| Related party transactions (continued) | ||
|---|---|---|
| 2016 | 2015 | |
| Parent company's transactions with: Subsidiaries |
EUR | EUR |
| Cession of loans | ||
| 529 232 | 623 429 | |
| Loans received | 41 888 | 199 00 |
| Loans repaid | 41 888 | 199 000 |
| Loans issued | 75 163 | 92 480 |
| Loan repayment received | 7 600 | 52 480 |
| Interest paid | 771 | |
| Interest received | 18 | |
| Dividends paid Services received |
92 315 | |
| Services delivered | 1 411 | |
| Goods sold | 12 433 | 10 065 |
| Goods delivered | 7 140 | 206 |
| Fixed assets recieved | 3 570 | |
| Fixed assets sold | 63 606 | |
| 2 910 | ||
| 2016 | 2015 | |
| Parent company's transactions with: | EUR | EUR |
| Subsidiaries | ||
| Interest paid | 771 | 2 500 |
| Interest received | 18 | 799 |
| Shares received | 6 000 | |
| Takeover of company independent parts | 528 216 | |
| Companies and individuals under common control or significant | ||
| influence | ||
| Loans received | 1 868 500 | |
| Loans repaid | 1 868 500 | |
| Loans issued | 267 400 | 1 969 900 |
| Loan repayment received | 251 000 | 1 975 050 |
| Interest paid Interest received |
11 923 | |
| Services delivered | 2 026 | 7 059 |
| Bonds sold | 385 219 | |
| Other related companies | ||
| Loans received | 16 900 | |
| Loans repaid | 16 550 | 350 |
| Loans issued | 89 550 | 869 620 |
| Loan repayment received | 24 389 | 886 870 |
| Interest paid | 79 | 257 |
| Interest received Services received |
3 622 | 20 289 |
| 64 631 | 84 174 | |
| Services delivered Goods sold |
1 030 | 10 790 |
| Goods received | 800 | |
| 20 636 | ||
| Fixed assets received Fixed assets sold |
702 | |
| Group's transactions with: | ||
| Owners of the parent company Cession of loans |
||
| 338 925 | ||
| Loans received | a 500 | |
| Loans repaid | 9 500 | |
| Loans issued | 992 265 | 1 649 189 |
| Loan repayment received | 663 237 | 2 100 749 |
| Interest paid | ||
| Interest received | 8 467 | 76 610 |
| Dividends paid | 700 000 | 1 309 562 |
| Services received | 2 210 | 4 925 |
| Services delivered | 120 | |
| Goods sold | 24 951 | |
| Fixed assets sold | 6 797 | 268 |
| nvestment in Shares | 200 020 |
| Group's transactions with: | 2016 | 2015 |
|---|---|---|
| Companies and individuals under common control or significant | EUR | EUR |
| influence | ||
| Loans received | 7 000 | 1 868 500 |
| Loans repaid | 7 000 | 1 868 500 |
| Loans issued | 267 400 | 1 969 900 |
| Loan repayment received | 251 000 | |
| Interest paid | 1 999 603 | |
| Interest received | 11 923 | |
| Bonds sold | 2 026 | 7 393 |
| 385 219 | ||
| Other related companies | ||
| Loans received | 16 900 | |
| Loans repaid | 16 550 | |
| Loans issued | 89 550 | 350 869 620 |
| Loan repayment received | 4 580 | 886 870 |
| Interest paid | 79 | 257 |
| Interest received | 3 622 | 20 289 |
| Services received | 115 109 | 84 174 |
| Services delivered | 1 030 | |
| Goods sold | 10 790 | |
| Goods received | 800 | |
| Fixed assets received | 20 636 | |
| Fixed assets sold | 702 | |
As at 31 December 2016 the Parent company has issued guarantees to other companies (only to legal entities) for the purchase of cars under the terms of financial seny no looking to other Companies (only of economics (on the gurrantee is effective till 2021. For other information and class of on 2 con 164 of 104 of 104 and management for the Parent company's fixed assets acquired the terms of financial lease see in Note 10.
SIA "ExpressCredit" made a contribution of 100% shares in subsidiary located in Bulgaria in amount of EUR 500 000. Subsidiary is established in order to obtain authorization for pawnshops and consumer lending area in Bulgaria. The company has not decided a specific start-up time and volume.
As at the date of signing of the annual report the number of securities situated (ISIN LV000802213): 1 574 with a Nominal value 1 000 euro per each, which accounts total Nominal value of 1 574 000 euro (on 31.12.2016. 974 wil.
There are no other subsequent events since the last date of the reporting year, which would have a significant effect on the financial position of the Company as at 31 December 2016.
Agris Evertovskis Chairman of the Board
Riga, 21 April 2017
Kristaps Bergmanis Member of the Board
Didzis Ādmīdins Member of the Board
Santa Soldre Chief accountant
POTAPOVIČA ANDERSONE
Ūdens iela 12-45, Rīga, LV-1007, Latvija T +371 67607902 F +371 67807092 www.p-a.lv
Independent Auditor's Report
We have audited the accompanying separate financial statements and consolidated financial statements of SIA "ExpressCredit" ("the Company") and its subsidiaries ("the Group") set out on pages 8 to 36 of the accompany of consolidated annual report, which comprise:
· the notes to the separate and consolidated financial statements, which include a summary of significant accounting policies and other explanatory notes.
In our opinion, the accompanying separate and consolidated financial statements give a true and fair view of the separate and consolidated financial position of SIA "ExpressCredit" and its subsidiaries at 31 December 2016, and of their separate and consolidated financial performance and consolidated and consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS).
In accordance with the Law on Audit Services of the Republic of Latvia we conducted our audit in accordance with International Standards on Auditing adopted in the Republic of Latvia (ISAs). Our radition of standards are further described in the Auditor's Responsibilities for the Separate and Consolitation Financial Statements section of our report.
We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) and independence requirements included in the Lucit Services of the Republic of Latvia that are relevant to our audit of the separate and consolidated financial statements in the Republic of Latvia. We have also fulfilled our other professional ethics responsibilities and objectivity requirements in accordance with the IESBA Code and Law on Audit Services of the Republic of Latia.
We believe that the audit evidence we have obtained is sufficient and oppropriate to provide a basis for our opinion. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the separate and consolidated financial statements of the current period. These matters were addressed in the context of we do not provide and consolidated financial statements as a whole, and in forming our opinion therent, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report:
The net balance sheet value of loans and receivables amount to EUR 10 583 881 in the separate financial statements and EUR 11 555 359 in the consolidated financial statements of the Group.
Detailed information on this balance sheet item is included in Note 15 to the financial statements (financial information) and section (n) of the accounting policies (accounting principles and policies for bad debt provisioning).
The loans and receivables are included in the balance sheet in net realisable values and consist of the gross values of loan principal reclaimable, interest income accrued as at the balance sheet date net of provisions created in accordance with the bad debt provisioning
Our audit procedures, amidst others, included the following:
policies as developed by the management of the Group.
As the financing services offered by the Group are adjusted and developed to comply with the requirements of the varying market circumstances. then timely and efficient management decisions are needed in order to evaluate the adequacy of the provisioning policy determined and make required improvements in order to ensure that loans and receivables (inclusive of interest income accrued) are presented in the values that do not exceed net recoverable values of the respective assets
We consider this to be one of the key audit matters as loans and receivables represent material portion of assets both of the Parent company and the Group and the valuation of these assets involves significant decisions and judgements applied.
Net sales of goods and related services presented in the financial statements of the separate financial statements amount EUR 4 795 253, and interest and similar income in the respective financial statements amount to EUR 10 298 728. The relevant income positions of the Group amount to EUR 4 796 333 and EUR 10 627 654 respectively.
Detailed information on the relevant income items is presented in Notes 1 and 3 to the financial statements (financial information) and section (d) of the accounting policies (income recognition principles description).
The Group has over 90 branches in 39 cities in Latvia and this requires implementation and maintenance of adequate and consistent income accounting and control procedures, that is why income recognition and control matters are considered to be one of the key audit matters.
The value of goods for sale in the balance sheet both in separate and consolidated financial statements amounts to EUR 700 715, and consists of gross value of goods for sale of EUR 931 964 and provisions for slow moving items in the amount of EUR 231 249.
Detailed information on goods for sale is included in Note 14 to the financial statements (financial information) and section (I) of the accounting policies (accounting principles).
We consider this to be one of the key audit matters as goods for sale represent material part of the Group's assets and significant element of judgement is present in valuation of the respective asset.
Our audit procedures, amidst others, included the following:
Our audit procedures, amidst others, included the following:
The Group management is responsible for the other information. The other information comprises:
Our opinion on the separate and consolidated financial statements does not cover the other information included in the separate and consolidated annual report, and we do not express any form of assurance conclusion thereon, except as described in the Other reporting responsibilities in accordance with the Republic of Lavia section of our report.
In connection with our audit of the separate and consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the separate and consolidated financial statements or our knowledge obtained in the noonelise appears to be materially misstated
If, based on the work we have performed and in light of the knowledge and understanding of the Group and its environment obtained in the course of our audit, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
In addition, in accordance with the Law on Audit Services of the Republic of Latvia with respect to the Management Report, our responsibility is to consider whether the Management Report is prepared in accordance with the requirements of the 'Law On the Annual Reports and Consolidated Annual Reports' of the Republic of Lawy. Based solely on the work required to be undertaken in the course of onraaudit, in our opinion:
In accordance with the Law on Audit Services of the Republic of Latvia with respect to the Statement of Corporate Governance, our responsibility is to consider whether the Statement of Corporate Governance includes the information required in section 56.1, first paragraph, clause 3, 4, 6,, 8 and 9, as well as section 56.2, second paragraph, clause 5, and third paragraph of the Financial Instruments Market Law and if it includes the information stipulated in section 56.2 second paragraph, clause 1, 2, 3, 4, 7 and 8 of the Financial Instruments Market Law.
In our opinion, the Statement of Corporate Governance includes the information required in section 56.1, first paragraph, clause 3, 4, 6,, 8 and 9, as well as section 56.2, second paragraph, clause 5, and third paragraph of the Financial Instruments Market Law and it includes the information stipulated in section 56.2 second paragraph of the 1, 2, 3, 4, 7 and 8 of the Financial Instruments Market Law.
Management is responsible for the preparation of the separate and consolidated financial statements that give a true and fair view in accordance with IFRS and for such internal consolutics in and allemines is necessary to enable the preparation of the separate and consolidated financial statements that are from material misstation of whether due to fraud or error.
In preparing the separate and consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group of to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's separate and Group's consolidated financial reporting process.
Our objectives are to obtain reasonable assurance about whether the separate and consolidated financial statements as a whole are free from material misstatement, whether the ocparate and consonution indical statements conducted in econdones with ISA will shares is a high level of assurance, but is not a guarantee that and a conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could measonably be expection to influence the economic decisions of users taken on the basis of these separate and consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
· I ldentify and assess the risks of material misstatement of the separate and consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
We communicate with those charged with in a manier that direction.
of the audit and significant a discuss including among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and objectivity, and to comment we france of them all relatin effical matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with governance, we determine those matters that of any armances that were of most significance in the audit of the separate and consolidated financial statements of most matters inativer of most the key audit matter . We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter of when, in edremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The responsible certified audit resulting in this independent auditors' report is Kristīne Potapoviča.
On behalf of SIA Potapoviča un Andersone, Udens street 12-45, Riga, LV-1007 Certified Auditors Company licence No. 99
Kristīne Potapoviča Responsible Certified Auditor Certificate No. 99 Chairman of the Board
21 April 2017
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