Siguldas CMAS

Annual / Quarterly Financial Statement • Feb 28, 2017

Joint Stock Company SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA

INTERIM REPORT for Twelve Months of 2016

Index of Contents

	Page
Information on the Company	3
Management Report	4
Profit or Loss Account	5
Balance sheet	6
Cash flow statement	8
Statement on changes in shareholders' equity	9
Notes to the Financial Statements	10
Report on Management Liability	23

Information on the Company

Company's name	SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA
Company's legal status	Joint stock company
Registration number, place and date	40003013295, Riga, 26 July 1991
	Registration in the Commercial Register on 19 June 2004
Legal address	'Kalnabeites' 8, Sigulda parish, Sigulda municipality, LV-2150
Shareholders holding more than 5% of the total number of voting shares	'Siguldas mākslīgās apsēklošanas stacija' Ltd. (49.92%), registration No. 40003311954
	Oļegs Radčenko (5.20%)
	Swedbank AS Clients account (5.07%)
Members of the Management Board	Nils Ivars Feodorovs, Chairman of the Management Board, holding 400 shares Sarmīte Arcimoviča, Member of the Management Board, holding 4 124 shares Valda Mālniece, Member of the Management Board, holding 14 260 shares
Members of the Supervisory Board	Inita Bedrīte, Chairman of the Supervisory Board, holding 1 084 shares Maija Beča, Deputy Chairman of the Supervisory Board, holding 3 066 shares Ērika Everte, Member of the Supervisory Board, holding 2 208 shares Solvita Arcimoviča, Member of the Supervisory Board, holding 430 shares Jekaterina Kreise, Member of the Supervisory Board, holding 3 683 shares
Reporting period	01.01.2016 – 31.12.2016
Previous reporting period	01.01.2015 – 31.12.2015
Auditors	Vija Dzene Sworn Auditor Certificate No. 108
	V. Dzenes Audits Ltd. Hospitalu street 8 Riga, LV-1013, Latvia Sworn Auditors' Commercial Company's license No. 120

Management Report

Types of Operations

JSC 'Siguldas ciltslietu un mākslīgās apsēklošanas stacija' (hereinafter referred to as the Company) is one of the largest high-quality breeding bull semen producers and suppliers in Latvia. The second largest field of the Company's basic economic activities is the milk testing services. The Company also provides other breeding related services – consultations on issues of cattle breeding, feeding and keeping, evaluation of cow exterior, artificial insemination of cows, initial processing of the supervisory data.

Brief Description of the Company's Activities in the Reporting Year and Financial Condition

The Company's net turnover in 2016 was 1.1 million euros, which is by 34 thousand euros or 3.1% less than in 2015 due to the overall economic crisis in the milk market of Latvia.

The proportion of the revenue from the Company's basic economic activities, if compared to year 2015, had not changed substantially − the revenue from the sales of the bull semen comprised 51.4% of the net turnover, whereas the milk laboratory services and processing of supervisory data services, taken together, accounted for 37.0% of the net turnover.

In 2016 the revaluation of the investment properties into the actual value resulted in loss of 7 thousand euros, whereas in 2015 it accounted for loss of 18 thousand euros.

Compared to 2015, the profit before taxes in the reporting year has increased by 8 thousand euros, and was 103 thousand euros.

The Company's commercial profitability in 2016 was 9.6%, 1.0% points up if compared to 2015.

Future Prospects and Development

By increasing the operational efficiency of its business, the Company will continue to work on the expansion of its marketed product and service volume.

Post-Balance-Sheet Events

During the period of time in between the closing of the balance sheet and the day the report is being signed by the Board, there have been no significant events or extraordinary circumstances taking place that may influence the results of the reporting year and the Company's financial condition.

Branches and Representative Offices Abroad

The Company has no branch offices, nor any representative offices abroad.

Chairman of the Management Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Member of the Management Board

Member of the Management Board, Manager of the Financial and Accounting department

Profit or loss account for the period ended 31 December 2016

	Note	2016 EUR	2015 EUR
Net sales	3	1 070 645	1 105 143
a) from agricultural activities		1 070 645	1 105 143
Changes in stock of ready-made goods and unfinished products	4	62 397	17 309
Other operating income	5	25 199	15 157
Costs of materials:		(464 083)	(443 564)
a) raw materials and auxiliary costs of materials		(352 790)	(329 681)
b) other external costs		(111 293)	(113 883)
Personnel costs:	6	(456 891)	(460 609)
a) salaries for work		(364 397)	(367 444)
b) state social insurance compulsory contributions		(82 697)	(83 677)
c) other social insurance costs		(9 797)	(9 488)
Depreciation adjustments:		(63 888)	(65 057)
a) depreciation adjustments of fixed and intangible assets		(44 882)	(45 616)
b) depreciation adjustments of current assets which the company considers to be above the normal write-off amounts		(19 006)	(19 441)
Other operating costs	7	(70 826)	(73 722)
Income from shareholding:		15	11
a) in capitals of associated companies		15	-
Profit or loss before enterprise income tax		102 568	94 668
Enterprise income tax for the reporting year		(18 254)	(20 111)
Profit or loss after enterprise income tax calculation		84 314	74 557
Revenue or expenses from the changes in the deferred tax assets or liabilities in the balance	22	1 008	1 111
The profit or loss for the year		85 322	75 668
Equity per 1 share (EPS)	19	0,202	0,179

Notes on pages 10 to 22 form an integral part of these financial statements.

Chairman of the Management Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Member of the Management Board

Member of the Management Board, Manager of the Financial and Accounting department

Balance sheet as on 31 December 2016

Assets	Note	2016 EUR	2015 EUR
Long-term investments
Intangible assets
Concessions, patents, licenses, trademarks and similar rights		1 332	1 672
Intangible assets total	8	1 332	1 672
Fixed assets
Land parcels, buildings and constructions		110 297	125 567
Technological equipment and machinery		9 850	15 636
Other fixed assets and inventory		44 004	41 322
Fixed assets total	9	164 151	182 525
Investment properties	10	87 000	94 000
Biological assets	11	58 786	61 779
Long-term financial investments
Investments in capital of associated companies	12	84 053	83 954
Other securities and investments	13	683	683
Long-term financial investments total		84 736	84 637
Long-term investments total		396 005	424 613
Current assets
Stock
Raw materials, basic materials and auxiliary materials		13 992	19 100
Ready-made goods and goods for sale	14	634 513	587 213
Prepayments for goods		2 439	1 024
Stock total		650 944	607 337
Receivables
Trade receivables	15	183 308	167 892
Other receivables	16	2 597	7 136
Prepaid expenses	17	10 584	9 566
Receivables total		196 489	184 594
Cash	18	364 548	350 009
Current assets total		1 211 981	1 141 940
Assets total		1 607 986	1 566 553

Balance sheet as on 31 December 2016

Shareholders' equity and liabilities	Note	2016 EUR	2015 EUR
Shareholders' equity
Share capital	19	591 416	591 416
Other reserves	20	1 213	1 213
Retained earnings or loss carried forward from previous years		850 185	816 761
Profit or loss of the reporting year		85 322	75 668
Shareholders' equity total		1 528 136	1 485 058
Provisions
Other provisions	21	-	7 399
Provisions total		-	7 483
Payables
Long-term payables
Deferred tax liabilities	22	1 721	2 729
Long-term payables total		1 721	2 729
Short-term payables
Prepayment received from customers		480	656
Trade payables		19 766	20 388
Taxes and social insurance payments	23	34 523	32 936
Other payables		17 037	17 387
Accrued liabilities	24	6 323	-
Short-term payables total		78 129	71 367
Payables total		79 850	74 096
Shareholders' equity and liabilities total		1 607 986	1 566 553

Notes on pages 10 to 22 form an integral part of these financial statements.

Chairman of the Management Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Member of the Management Board

Member of the Management Board, Manager of the Financial and Accounting department

Cash flow statement for the period ended 31 December 2016

	Note	2016 EUR	2015 EUR
Cash flow from operating activities
Income from sale of goods and provision of services		1 275 588	1 304 685
Payments to suppliers, employees, other expenses arising
from basic operations		(1 188 144)	(1 210 168)
Gross cash flow from basic operations		87 444	94 517
Expenses for enterprise income tax payments		(14 067)	(37 164)
Net cash flow from operating activities		73 377	57 353
Cash flow from investing activities
Purchase of capital shares of associated company		(99)	-
Purchase of fixed assets and intangible investments		(26 168)	(25 449)
Income from sale of fixed assets		826	996
Earnings from investment denomination		-	11
Received dividends		15	-
Net cash flow from investing activities		(25 426)	(24 442)
Cash flow from financing activities
Subsidies received as a state support		9 082	9 262
Dividends paid		(42 244)	(50 693)
The difference of the share value − resulting from the denomination of the Company's shares – paid		-	(8 449)
Net cash flow from financing activities		(33 162)	(49 880)
Result of foreign exchange rate fluctuations		(250)	(162)
Net increase or decrease of cash and its equivalents		14 539	(17 131)
Cash and its equivalents balance at the beginning of the
reporting year		350 009	367 140
Cash and its equivalents balance at the end of the reporting year	18	364 548	350 009

Notes on pages 10 to 22 form an integral part of these financial statements.

Chairman of the Management Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Member of the Management Board

Member of the Management Board, Manager of the Financial and Accounting department

Statement on changes in shareholders' equity for the period ended 31 December 2016

	Share capital	Other reserves	Retained earnings carried forward from previous	Profit of the reporting year	Shareholders' equity total
	EUR	EUR	years EUR	EUR	EUR
31.12.2014	601 078	-	711 538	155 916	1 468 532
Profit of 2014 transferred to retained earnings of previous years Dividends for 2014	- -	- -	155 916 (50 693)	(155 916) -	- (50 693)
The denomination of the Company's shares from lats to euro Profit for the reporting year	(9 662) -	1 213 -	- -	- 75 668	(8 449) 75 668
31.12.2015	591 416	1 213	816 761	75 668	1 485 058
Profit of 2015 transferred to retained earnings of previous years Dividends for 2015 Profit of the reporting year	- - -	- - -	75 668 (42 244) -	(75 668) - 85 322	- (42 244) 85 322
31.12.2016	591 416	1 213	850 185	85 322	1 528 136

Notes on pages 10 to 22 form an integral part of these financial statements.

Chairman of the Management Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Member of the Management Board

Member of the Management Board, Manager of the Financial and Accounting department

(1) General information on the Company

JSC 'Siguldas ciltslietu un mākslīgās apsēklošanas stacija' (hereinafter - the Company) was registered in the Register of Enterprises of the Republic of Latvia on 26 July 1991 and was reregistered in the Commercial Register of the Republic of Latvia on 19 June 2004.

The Company's basic activities are agriculture and the types of business are as follows:

• production and sale of agricultural products high-quality breeding animals semen,
• making of milk analyses,
• evaluation of cow exterior,
• artificial insemination of cows,
• milk recording data processing,
• animals breeding organization.

(2) Significant accounting principles

Underlying principles of preparation of the Financial Statements

The Company's Financial Statements have been prepared according to the Law On Annual Reports and Consolidated Annual reports of the Republic of Latvia. The Profit or Loss Account was prepared based on the period costs method. The Cash Flow Statement was prepared according to the direct method.

Complying the regulation stated in Article 13 Part 5 Chapter 2 of the Law On Annual Reports and Consolidated Annual reports, the Company acknowledges, assesses, shows in its financial report and provides explicative information on investment properties, biological actives and deferred tax liabilities in compliance with the international accounting standards.

Due to the regulations of the Law On Annual Reports and Consolidated Annual reports pertaining to the annual reports which start in January 1, 2016 coming in force, the management of the Company has made amendments to its financial report as follows:

• the classification of the real estate tax in the profit or loss calculation the real estate expenses have been stated according to their actual nature – as part of the other expenses (instead of position 'Other taxes' as before);
• the classification of other interest income and similar income in the profit or loss calculation previously classified as other interest income and similar income, now income which has been stated according to its actual nature is shown as part of other operating income;
• the classification of interest payments and similar costs in the profit or loss calculation previously classified as interest payments and similar costs, now expenses which have been stated according to their actual nature are shown as part of other operating expenses;
• the classification of fixed assets in the balance sheet positions 'Perennial plantings' and 'Technological equipment and machinery' have been shown as separate positions of fixed assets.

Comparative indicators for the year 2015 have been re-classified in order to ensure the comparability of positions.

Accounting principles used

The items of the Financial Statements have been evaluated according to the following accounting principles:

• It is assumed that the Company will be a going concern;
• The same evaluation methods have been used, which were used in the previous year;

• Evaluation was done with sufficient prudence:

  • The Financial Statements include solely the profit gained until the balance sheet date,
  • All expected risk amounts and losses have been taken into account, which occurred during the reporting year or in previous years, also if they were known during a certain period of time between the balance sheets date and the day of preparing the Financial Statements,
  • All value decreasing and depreciation amounts have been taken into account irrespective whether the reporting year was closed with profit or loss;

• reporting year related income and costs were recognized irrespective of the payment date and the date of receipt or issuance of invoice. Costs have been agreed with the income in the reporting period;

• components of asset and liabilities items have been recognized separately;
• the opening balance of the reporting year agrees with the closing balance of the previous year;
• all items have been recognized, which materially influence assessment or decision-making process of the users of the annual report, insignificant items are merged and they are detailed in the Appendix;
• operating transactions in the reporting year have been recognized in the Financial Statements by taking into account their economic substance and contents, rather than legal form.

Financial instruments

Fair value of financial assets and liabilities

Fair value of financial assets and liabilities reflect the amount, for which it is possible to exchange assets or perform liabilities in a deal between well informed, interested and financially independent persons. If in the Company's management opinion, fair value of financial assets and liabilities materially differs from the value recognized in the balance sheet, then the fair value of these assets and liabilities is recognized in the Notes to the Financial Statements.

Financial risks management

Credit risk

The Company's management has developed credit policy, which is constantly controlled. Client evaluation is done for all customers above a fixed amount. The Company cooperates with clients who have proper credit assessment.

Currency risk

Based on the current structure of Company's financial assets and liabilities held in foreign currencies, the currency risk is not material.

Reporting period

The reporting period is twelve months from 1 January to 31 December 2016.

Revaluation of foreign currencies

The Company's functional currency and the currency used in the Financial Statements is euro (EUR) – the sole legal mean of payment in the Republic of Latvia since January 1, 2014. All transactions in foreign currencies are converted into euro according to the euro foreign exchange reference rate published by the European Central Bank on the day of particular transaction being performed.

Monetary assets and liabilities, which are shown in foreign currencies, are converted into euro according to the fixed euro foreign exchange reference rate published by the European Central Bank on the last day of the reporting period.

		31.12.2016	31.12.2015
USD		1.05410	1.08870

Currency exchange rate differences arising from settlements in currencies or when recognizing assets and liabilities by using currency exchange rates, which differ from the initial currency exchange rates used for accounting of transactions, are recognized in the profit or loss account in net value.

Recognition of income

Income is recognized according to the conviction about the Company's possibility to gain economic benefit and in the amount, in which it is possible to state it, less value added tax and sales-related discounts. When recognizing income, also the following provisions are taken into account.

Sale of goods

Income is recognized when the Company has transferred to the purchaser major risks and indemnities related to the title of goods.

Provision of services

Income from services is recognized in the period when the services are provided.

Penalty and delay charges

Income from penalty and delay charges is recognized at the moment of their receipt.

Interest

Income is recognized according to the respective period of time.

Long-term and short-term items

Long-term items include amounts whose receipt, payments or write-off terms are due later after the end of the respective reporting year. Amounts, which are receivable, payable or written off during the year, are recognized in short-term items.

Leasing transactions

Financial leasing

In cases when fixed assets are purchased on the conditions of financial leasing and the related risks and return are taken over, these fixed assets are recognized in the value, for which they could be purchased with immediate payment. Leasing interest payments and similar payments are included in the profit or loss account of that period when they occurred.

Intangible assets and fixed assets

In the balance sheet, all intangible assets and fixed assets are reflected at their purchase prices, less depreciation. Depreciation is calculated from the first date of the next month after their commissioning and finished on the first date of the subsequent month after it is excluded from fixed assets. Depreciation is calculated according to the straight line method and is written off during the useful life time of respective fixed assets by choosing the following annual depreciation rates as fixed by the management:

Intangible assets:

Licenses	5 years
Fixed assets:
Buildings and constructions	10, 20, 25, 40 and 59 years
Equipment and machinery	5, 6 and 7 years
Computer hardware and communication equipment	5 years
Inventory and tools	3 and 5 years
Other fixed assets	2 and 3 years

Balances of fixed assets have been counted in the annual count of fixed assets.

Investment properties

Investment properties – land in possession of the stock company, which market value is expected to grow. Investment properties have been filed according to their purchase value. No later than at the end of the year of account the investments properties are being revalued according to their real market value considering any other activities related to particular property. The revaluation is performed by a certified evaluator. Any changes in the market value of the investments properties are being shown in the profit and loss account.

Biological assets

Biological assets are assets, which are characterized by regeneration and changes in value as a result of growth. The Company in biological assets includes breeding animals – breeding bulls which are kept for getting agricultural products for sale. Biological assets are recognized in the purchase value.

Stock

Stock is recognized in the lowest cost or net sales value. All stock is assessed by using the average weighted method.

Net sales value is the sales price of stock fixed during normal Company's operations, less the stock completion and selling costs. In cases when the stock net selling value is lower than their cost price, provisions are made for these stocks for decrease of their value down to the net sales value.

All direct costs, which are related to production of breeding animals - bull semen, during the year are booked in the profit or loss account and are adjusted at the end of the year when evaluating stocks according to the lowest sales value or cost price and including them in stocks as "Ready-made goods and goods for sale".

Trade receivables and other receivables

Receivables are recognized in the balance sheet in the amortized value, less provisions for doubtful and bad debts. Provisions for doubtful and bad debts are made in cases when there is objective evidence to the fact that the Company will not be able to receive the debts in full value according to the initially fixed repayment dates. Provisions for doubtful and bad debts are the difference between the amortized purchase value of receivables and the recoverable value. The recoverable value of receivables is the current value of planned cash flow.

Provisions

Provisions are recognized when the Company has liabilities (legal or substantial) due to some past event and there is a probability that the performance of these liabilities will require outflow of economic resources from the Company, and the amount of liabilities can be fairly assessed.

Corporate income tax

Corporate income tax for the reporting period consists of the tax calculated for the reporting period and deferred tax. Corporate income tax is recognized in the profit or loss account.

Calculated tax

The tax calculated for the reporting period has been calculated in compliance with the requirements of the Law "On Corporate Income Tax" by fixing the taxable income and applying the statutory rate of 15%.

Deferred tax

Deferred corporate income tax is calculated for temporary time differences, which are caused due to differences in the value of assets and liabilities in the financial statements (book-keeping) and its value for tax purposes. The mentioned differences are mainly due to different fixed assets depreciation rates applied in tax and financial accounting, provisions made and losses transferred according to the Company's income tax declaration. Deferred tax is calculated by applying the statutory tax rate 15%.

Subsidies

Amounts, which are received as a state support for agricultural, i.e., for covering of expenses for maintaining high-quality breed bulls, are included in the income of that reporting period when they are received.

Use of assumptions

When preparing the financial statements, the Company's management has to make calculations and assumptions, which impact recognition of assets and liabilities included in the financial statements as at the day of preparing the financial statements, as well as the income and expenses recognized in the specific reporting period. Management has made profit or loss assessment and considers that the financial statements reflect the true financial condition based on all currently available information.

(3) Net sales

Sales include income gained during the year from the Company's basic activities – sales of products and provision of services without value added tax and less discounts.

Type of operations	2016 EUR	2015 EUR
Livestock sperm	550 724	569 115
Milk laboratory services	283 413	289 340
Treatment of supervisory data	112 232	117 193
Cow exterior appraisal	931	4 935
Artificial insemination of livestock	42 840	43 806
Other income	80 505	80 754
	1 070 645	1 105 143

Distribution of net sales according to the geographical markets:

	2016 EUR	2015 EUR
Latvia	1 070 645	1 105 143
	1 070 645	1 105 143

(4) Changes in stock of ready-made goods and unfinished products

	2016 EUR	2015 EUR
Changes in sperm stock value	87 618	47 297
Written-off sperm	(22 228)	(18 292)
Changes in stud bull herd value	(2 993)	(11 696)
	62 397	17 309

(5) Other operating income

	2016 EUR	2015 EUR
Revenue from exclusion of fixed assets	826	996
Income from foreign currency exchange rate fluctuations	-	843
State support for agricultural	9 082	9 262
Recovered doubtful and bad debts	13 620	4 056
Other income	1 671	-
	25 199	15 157

(6) Personnel costs

	2016 EUR	2015 EUR
Salaries for work	351 006	354 885
Life insurance with cash value accrual	14 267	12 628
State social insurance contributions	82 897	83 691
Changes in liabilities to personnel for unused vacation	(1 076)	(84)
Health insurance	7 583	7 410
Other costs	2 214	2 079
	456 891	460 609

(7) Other operating expenses

	2016 EUR	2015 EUR
Insurance payments	4 349	1 966
Business trip expenses	4 509	1 740
Selling expenses	2 007	1 792
The costs of accreditation and employee training	1 305	1 566
The costs of security services	1 280	1 270
Taxes applied on the vehicles	2 222	1 335
Company's management and administrative expenses	11 442	11 768
Regulated securities market expenses	9 633	9 648
Mandatory audit of the annual report	1 600	1 600
Loss from foreign currency exchange rate fluctuations	1 444	-
Loss from investment property revaluation	7 000	18 000
Employees' leisure and similar costs	13 897	12 697
Real estate tax	1 845	1 854
Other costs	8 293	8 486
	70 826	73 722

(8) Intangible assets

	Concessions, patents, licenses, trademarks and similar rights	Total
	EUR	EUR
Initial value
31.12.2015	2 725	2 725
Purchased	-	-
Disposed	-	-
31.12.2016	2 725	2 725
Accrued depreciation adjustments
31.12.2015	1 053	1 053
Annual write-off of the value	340	340
Adjustments to accrued depreciation of excluded intangible assets	-	-
31.12.2016	1 393	1 393
Book value as at 31.12.2015	1 672	1 672
Book value as at 31.12.2016	1 332	1 332

	Concessions, patents, licenses, trademarks and similar rights
	EUR	EUR
Initial value
31.12.2014	1 025	1 025
Purchased	1 700	1 700
Disposed	-	-
31.12.2015	2 725	2 725
Accrued depreciation adjustments
31.12.2014	1 025	1 025
Annual write-off of the value	28	28
Adjustments to accrued depreciation of excluded intangible assets	-	-
31.12.2015	1 053	1 053
Book value as on 31.12.2014	-	-
Book value as on 31.12.2015	1 672	1672

(9) Report on movement of fixed assets

	Land, buildings and constructions	Perennial plantings	Technological equipment and machinery	Other fixed assets and inventory	Total
	EUR	EUR	EUR	EUR	EUR
Initial value
31.12.2015	362 641	15 376	324 376	276 408	978 801
Purchased	-	-	-	26 168	26 168
Dispossessed or liquidated	-	-	-	(7 473)	(7 473)
31.12.2016	362 641	15 376	324 376	295 103	997 496
Accrued depreciation adjustments
31.12.2015	237 074	15 376	308 740	235 086	796 276
Calculated depreciation	15 270	-	5 786	23 486	44 542
Depreciation of dispossessed or liquidated fixed assets	-	-	-	(7 473)	(7 473)
31.12.2016	252 344	15 376	314 526	251 099	833 345
Book value as on 31.12.2015	125 567	-	15 636	41 322	182 525
Book value as on 31.12.2016	110 297	-	9 850	44 004	164 151

As on 31 December 2016, the cadastral value of real estate – land and constructions – was EUR 158 087.

	Land, buildings and constructions	Perennial plantings	Technological equipment and machinery	Other fixed assets and inventory	Total
	EUR	EUR	EUR	EUR	EUR
Initial value
31.12.2014	362 641	15 376	324 376	254 788	957 181
Purchased	-	-	-	23 749	23 749
Dispossessed or liquidated	-	-	-	(2 129)	(2 129)
31.12.2015	362 641	15 376	324 376	276 408	978 801
Accrued depreciation adjustments
31.12.2014	221 749	15 376	294 048	221 644	752 817
Calculated depreciation Depreciation of dispossessed or	15 325	-	14 692	15 571	45 588
liquidated fixed assets	-	-	-	(2 129)	(2 129)
31.12.2015	237 074	15 376	308 740	235 086	796 276
Book value as on 31.12.2014	140 892	-	30 328	33 144	204 364
Book value as on 31.12.2015	125 567	-	15 636	41 322	182 525

As on 31 December 2015, the cadastral value of real estate – land and constructions – was EUR 158 087.

(10) Investment properties

	Land	Total
	EUR	EUR
Book value as on 31.12.2014	112 000	112 000
Increase/decrease of value due to revaluation	(18 000)	(18 000)
Book value as on 31.12.2015	94 000	94 000
Increase/decrease of value due to revaluation	(7 000)	(7 000)
Book value as on 31.12.2016	87 000	87 000

(11) Biological assets

	Breeding bulls	Total
	EUR	EUR
Book value as on 31.12.2014	73 475	73 475
Purchased	17 308	17 308
Dispossessed	(29 004)	(29 004)
Book value as on 31.12.2015	61 779	61 779
Purchased	30 678	30 678
Dispossessed	(33 671)	(33 671)
Book value as on 31.12.2016	58 786	58 786

(12) Investments in capital of associated companies

	2016			2015
	% from total share		% from total share
	capital	EUR	capital	EUR
'Animal Breeders Association of Latvia' Ltd.
(SIA "Latvijas šķirnes dzīvnieku audzētāju savienība" )
Legal address: Republikas laukums 2, Rīga, LV-1010,
Latvia	36,4	84 053	36,3	83 954
		84 053		83 954

(13) Other securities and investments

EUR
683
683
683
683

(14) Ready-made products and goods for sale

	2016 EUR	2015 EUR
Bull semen	625 570	572 387
Other goods for sale	8 943	14 826
	634 513	587 213
(15) Trade receivables
	2016 EUR	2015 EUR
Accounting value of trade receivables	219 815	203 555
Provisions for doubtful trade receivables	(36 507)	(35 663)
	183 308	167 892
(16) Other receivables
	2016 EUR	2015 EUR

15 500
1 918 6 105
664 531

(17) Prepaid expenses

The item recognizes the costs made during the reporting year, but referring to the next reporting periods.

	2016 EUR	2015 EUR
Advertising costs	454	191
Insurance	8 193	7 219
Press and legislation updates' subscription	1 003	1 207
Server maintenance and similar costs	568	574
Other prepaid expenses	366	375
	10 584	9 566

(18) Cash in EUR and foreign currencies according to the European Central Bank's foreign exchange reference rates

Break-down of cash according to currencies:	2016		2015
		Currency	EUR	Currency	EUR
Cash in hand	EUR	-	1 961	-	8 203
Cash in bank	EUR	-	362 587	-	341 806
			364 548		350 009

(19) Share capital

Since 21 May 2007 Company's shares are quoted on the Second List of Nasdaq Riga Stock Exchange (ISIN code: LV0000100600). The Company's share capital has been formed of shareholders' investments.

The total number of shares as per 31.12.2016 is 422 440, the nominal value of one share is 1.40 euro.

The total number of shares as per 31.12.2015 was 422 440, the nominal value of one share – 1.40 euro.

	2016 EUR	2015 EUR
Bearer shares with voting rights	590 016	590 016
Shares owned by the Board without voting rights	1 400	1 400
	591 416	591 416

421 440 shares or 99.8% of the share capital are bearer shares, which give equal rights to receive dividends, receipt of liquidation quota and voting rights in the Shareholders' Meeting.

Owners of 421 440 bearer shares according to the latest available full shareholders list requested from the Latvian Central Depository.

	2016	2015
	31.10.2016 %	16.04.2015 %
'Siguldas mākslīgās apsēklošanas stacija' Ltd	49.92	49.92
Oļegs Radčenko	5.20	5.18
Swedbank AS Clients account	5.07	2.95
Inita Bedrīte, Chairman of the Supervisory Board	0.26	0.26
Maija Beča, Deputy Chairman of the Supervisory Board	0.73	0.73
Ērika Everte, Member of the Supervisory Board	0.52	0.52
Solvita Arcimoviča, Member of the Supervisory Board	0.10	0.10
Jekaterina Kreise, Member of the Supervisory Board	0.87	0.87
Sarmīte Arcimoviča, Member of the Management Board	0.91	0.91
Valda Mālniece, Member of the Management Board	3.31	3.31
Other shareholders	33.11	35.25
	100.00	100.00

1 000 shares or 0.24% of the share capital, which are not included in the regulated market, are personnel registered shares, which may be obtained only by Members of the Board, and they give equal rights only to receipt of dividend and liquidation quota.

Owners of the Company's personnel registered shares according to the Company's carried shareholders registry.

	31.12.2016 number	31.12.2015 number
Nils Ivars Feodorovs, Chairman of the Management Board	400	400
Sarmīte Arcimoviča, Member of the Management Board	300	300
Valda Mālniece, Member of the Management Board	300	300
	1 000	1 000

There are no share alienation restrictions, nor the necessity to receive the Company's or other shareholders' consent for alienation of shares.

There are no restrictions on voting rights, nor any other similar restrictions.

Profit per share

Profit per one share is calculated by dividing the profit of the reporting period with the average weighted number of shares during the year.

	2016 EUR	2015 EUR
Profit of the reporting period	85 322	75 668
Average weighted number of shares during the year	422 440	422 440
	0.202	0.179

(20) Other Reserves

	2016 EUR	2015 EUR
The difference of the share value resulting from the denomination of the
Company's shares from lats to euro	1 213	1 213
	1 213	1 213

(21) Other Provisions

	2016 EUR	2015 EUR
Provisions for vacations	-	7 399
	-	7 399

(22) Deferred tax liabilities

	2016 EUR	2015 EUR
Temporary differences in fixed assets depreciation	17 796	25 594
Calculated liabilities to personnel for unused vacation	(6 323)	(7 399)
Total temporary differences	11 473	18 195
Deferred tax liabilities at the beginning of the period	2 729	3 840
Increase or decrease	(1 008)	(1 111)
Deferred tax liabilities at the end of the period	1 721	2 729

(23) Taxes and social insurance payments

Tax type	2016 EUR	2015 EUR
Value added tax	12 703	12 394
Personal income tax	8 014	7 338
Social insurance payments	13 742	13 128
Nature resource tax	51	63
Business risk state fee	13	13
	34 523	32 936

Tax overpaid declared in position 'Other receivables'

(24) Accrued liabilities

	2016 EUR	2015 EUR
Calculated liabilities to personnel for unused vacation	6 323	-
	6 323	-

(25) Information on the number of management members and remuneration

	2016 EUR	2015 EUR
Remuneration to five Supervisory Board members for execution of functions,
including social insurance payments	10 990	10 989
Remuneration to three Management Board members for execution of
functions, including social insurance payments	44 810	44 145
Total remuneration to the management members	55 800	55 134

There are no special regulations put in place to regulate the election of the Management Board members, the change of the composition of the Management Board and amendments to the Articles of Association.

All Management Board members have equal Company's representation rights. The chairman of the Management Board represents the Company separately, but other Management Board members may represent the Company only collectively.

There is no agreement signed between the Company and the Management Board members ensuring any kind of compensation.

(26) Average number of employees

2016	2015
Supervisory Board members (all employees perform the functions of the
Supervisory Board member as an extra work in addition to principal work
duties) 4	4
Management Board members (two employees perform the functions of the
Management Board member as an extra work in addition to principal work
duties) 3	3
Other employees 28	29
35 Total average number of employees	36

Report on Management Liability

Based on information at the Management Board's possession the Interim Report for Twelve Months of 2016 has been prepared according to the effective requirements of legislative enactments and provide a true and fair view of the joint stock company's 'Siguldas ciltslietu un mākslīgās apsēklošanas stacija' assets, liabilities, financial condition and profit, and the management report of the interim report contains true information.

Interim Report for Twelve Months of 2016 has not been audited by a sworn auditor.

Chairman of the Management Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece

Member of the Management Board, Manager of the Production and Marketing department

Member of the Management Board, Manager of the Financial and Accounting department