Siguldas CMAS

Annual Report • Mar 21, 2016

Joint Stock Company SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA

ANNUAL REPORT for 2015

Index of Contents

	Page
Information on the Company	3
Management Report	4
Profit or Loss Account	6
Balance sheet	7
Cash flow statement	9
Statement on changes in shareholders' equity	10
Notes to the Financial Statements	11
Independent Auditors' Report	25
Report on Management Liability	26

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 (5.18%)
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	01.01.2015 – 31.12.2015
Previous reporting period	01.01.2014 – 31.12.2014
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 2015 was 1.1 million euros, which is by 43 thousand euros or 3.8% less than in 2014.

The proportion of the revenue from the Company's basic economic activities, if compared to year 2014, had not changed substantially − the revenue from the sales of the bull semen comprised 51.5% of the net turnover, whereas the milk laboratory services and treatment of supervisory data services, taken together, accounted for 36.8% of the net turnover.

Net turnover, thousand EUR

In 2015 the revaluation of the investment properties into the actual value resulted in loss of 18 thousand euros, whereas in 2014 it accounted for earnings of 25 thousand euros.

Compared to 2014, the profit before taxes in the reporting year had decreased by 86 thousand euros, and was 97 thousand euros.

The Company's commercial profitability in 2015 was 8.7%, 7.2% points down if compared to 2014.

The decrease of the net turnover and the increase of the trade receivables was effected both by the shrinking of the sales market in Russia, due to the sanctions imposed by Russia, and the lifting of quotas on milk production by the European Union in 2015, directly influencing both the milk prices and the market conjuncture, which consequently − due to the lowering of the farmers purchasing power − made the Company revise its price policy.

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.

Management Report

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.

Proposals Regarding the Use of the Company's Profit or Losses

The Board has a proposal to retain the profit of the reporting year and to pay dividends from the profit of the previous years for the amount of 42 244.00 euro, which is 0.10 euro per share.

Chairman of the Management Board

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

Member of the Management Board

Profit or loss account for the period ended 31 December 2015

	Note	2015 EUR	2014 EUR
Net sales	3	1 105 143	1 148 420
Changes in stock of ready-made goods and unfinished products	4	17 309	23 855
Other operating income	5	10 258	11 641
Costs of materials:		(443 564)	(448 525)
a) raw materials and auxiliary costs of materials		(329 681)	(332 379)
b) other external costs		(113 883)	(116 146)
Personnel costs:	6	(460 609)	(464 261)
a) salaries for work		(367 444)	(370 349)
b) state social insurance compulsory contributions		(83 677)	(84 417)
c) other social insurance costs		(9 488)	(9 495)
Write-off of assets and values:		(65 057)	(62 394)
a) depreciation of fixed assets and amortization of intangible assets		(45 616)	(45 850)
b) write-off of value of current assets above the normal deductions		(19 441)	(16 544)
Other operating costs	7	(41 171)	(43 565)
Other interest income and similar income	8	4 910	28 874
Interest payments and similar costs	9	(30 697)	(11 040)
Profit or losses before taxes		96 522	183 005
Enterprise income tax for the reporting year		(20 111)	(26 164)
Deferred tax	24	1 111	710
Other taxes	10	(1 854)	(1 635)
The profit or loss for the year		75 668	155 916
Equity per 1 share (EPS)	21	0.179	0.369

Notes on pages 11 to 24 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

Balance sheet as at 31 December 2015

Assets	Note	2015 EUR	2014 EUR
Long-term investments
Intangible assets
Concessions, patents, licenses, trademarks and similar rights		1 672	-
Intangible assets total	11	1 672	-
Fixed assets
Land parcels, buildings and constructions and perennial plantings		125 567	140 892
Equipment and machinery		46 781	52 979
Other fixed assets and inventory		10 177	10 493
Fixed assets total	12	182 525	204 364
Investment properties	13	94 000	112 000
Biological assets		61 779	73 475
Long-term financial investments
Investments in capital of associated companies	14	83 954	83 954
Other securities and investments	15	683	683
Long-term financial investments total		84 637	84 637
Long-term investments total		424 613	474 476
Current assets
Stock
Raw materials, basic materials and auxiliary materials		19 100	23 112
Ready-made goods and goods for sale	16	587 213	542 671
Prepayments for goods		1 024	519
Stock total		607 337	566 302
Receivables
Trade receivables	17	167 892	148 702
Other receivables	18	7 136	919
Prepaid expenses	19	9 566	6 984
Receivables total		184 594	156 605
Cash	20	350 009	367 140
Current assets total		1 141 940	1 090 047
Assets total		1 566 553	1 564 523

Balance sheet as at 31 December 2015

Shareholders' equity and liabilities	Note	2015 EUR	2014 EUR
Shareholders' equity
Share capital	21	591 416	601 078
Other reserves	23	1 213	-
Retained earnings:
Retained earnings carried forward from previous years		816 761	711 538
Retained earnings of the reporting year		75 668	155 916
Shareholders' equity total		1 485 058	1 468 532
Provisions
Other provisions	23	7 399	7 483
Provisions total		7 399	7 483
Payables
Long-term payables
Deferred tax liabilities	24	2 729	3 840
Long-term payables total		2 729	3 840
Short-term payables
Prepayment received from customers		656	182
Trade payables		20 388	22 533
Taxes and social insurance payments	25	32 936	45 353
Other payables		17 387	16 600
Short-term payables total		71 367	84 668
Payables total		74 096	88 508
Shareholders' equity and liabilities total		1 566 553	1 564 523

Notes on pages 11 to 24 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

Cash flow statement for the period ended 31 December 2015

	Note	2015 EUR	2014 EUR
Cash flow from operating activities
Income from sale of goods and provision of services		1 304 685	1 371 056
Payments to suppliers, employees, other expenses arising from basic operations		(1 210 168)	(1 216 706)
Gross cash flow from basic operations		94 517	154 350
Expenses for enterprise income tax payments		(37 164)	(14 217)
Net cash flow from operating activities		57 353	140 133
Cash flow from investing activities
Purchase of fixed assets and intangible investments		(25 449)	(22 048)
Income from exclusion of fixed assets		996	2 727
Earnings from investment denomination		11	-
Income from the sales of securities		-	31 153
Net cash flow from investing activities		(24 442)	11 832
Cash flow from financing activities
Subsidies received as a state support		9 262	9 092
Dividends paid		(50 693)	(59 142)
The difference of the share value − resulting from the denomination of the Company's shares − paid		(8 449)	-
Net cash flow from financing activities		(49 880)	(50 050)
Result of foreign exchange rate fluctuations		(162)	(679)
Increase/ decrease of cash and its equivalents
Cash and its equivalents at the beginning of the period		(17 131) 367 140	101 236 265 904
Cash and its equivalents at the end of the period	20	350 009	367 140

Notes on pages 11 to 24 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

Statement on changes in shareholders' equity for the period ended 31 December 2015

	Share capital	Other reserves	Retained earnings carried forward from previous	Retained earnings for the reporting year	Shareholders' equity total
	EUR	EUR	years EUR	EUR	EUR
31.12.2013	601 078	-	700 585	70 095	1 371 758
Profit for 2013 transferred to retained earnings of previous years Dividends for 2013 Retained earnings for the reporting year	- - -	- - -	70 095 (59 142) -	(70 095) - 155 916	- (59 142) 155 916
31.12.2014	601 078	-	711 538	155 916	1 468 532
Profit for 2014 transferred to retained earnings of previous years Dividends for 2014 The denomination of the Company's shares from lats to euro Retained earnings for the reporting year	- - (9 662) -	- - 1 213 -	155 916 (50 693) - -	(155 916) - - 75 668	- (50 693) (8 449) 75 668
31.12.2015	591 416	1 213	816 761	75 668	1 485 058

Notes on pages 11 to 24 form an integral part of these financial statements.

Chairman of the Management Board

21 March 2016

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

Member of the Management Board

(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 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.

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 2015.

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.

	31.12.2015	31.12.2014
USD	1.08870	1.21410

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 on 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. 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 – 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	2015 EUR	2014 EUR
Livestock sperm	569 115	609 809
Milk laboratory services	289 340	291 562
Treatment of supervisory data	117 193	117 796
Cow exterior appraisal	4 935	6 654
Artificial insemination of livestock	43 806	44 688
Other income	80 754	77 911
	1 105 143	1 148 420

Distribution of net sales according to the geographical markets:

	2015 EUR	2014 EUR
Latvia	1 105 143	1 148 420
	1 105 143	1 148 420

Earnings from agricultural activities represented in net sales:

	2015 EUR	2014 EUR
Earnings from agricultural activities	1 105 143	1 148 420
	1 105 143	1 148 420

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

	2015 EUR	2014 EUR
Changes in sperm stock value	47 297	40 641
Written-off sperm	(18 292)	(19 037)
Changes in stud bull herd value	(11 696)	2 251
	17 309	23 855

(5) Other operating income

	2015 EUR	2014 EUR
Revenue from exclusion of fixed assets	996	2 549
State support for agricultural	9 262	9 092
	10 258	11 641

(6) Personnel costs

	2015 EUR	2014 EUR
Salaries for work	354 885	357 601
Life insurance with cash value accrual	12 628	12 268
State social insurance contributions	83 691	84 340
Changes in provisions for vacation reserve	(84)	557
Health insurance	7 410	7 562
Other costs	2 079	1 933
	460 609	464 261

(7) Other operating expenses

	2015 EUR	2014 EUR
Insurance payments	1 966	1 663
Business trip expenses	1 740	5 318
Selling expenses	1 792	1 615
The costs of accreditation and employee training	1 566	1 523
The costs of security services	1 270	1 270
Taxes applied on the vehicles	1 335	1 830
Company's management and administrative expenses	11 768	9 305
Regulated securities market expenses	9 648	9 549
Audit of the financial statement	1 600	1 600
Other costs	8 486	9 892
	41 171	43 565

(8) Other interest income and similar income

	2015 EUR	2014 EUR
Income from securities	-	36
Income from foreign currency exchange rate fluctuations	843	-
Recovered doubtful and bad debts	4 056	3 629
Income from investment property revaluation	-	25 205
Other income	11	4
	4 910	28 874

(9) Interest payments and similar costs

	2015 EUR	2014 EUR
Loses from foreign currency exchange rate fluctuations	-	1 671
Loses from investment property revaluation	18 000	-
Employees' leisure and other costs not connected with operating activities	12 697	9 369
	30 697	11 040

(10) Other taxes

	2015 EUR	2014 EUR
Real estate tax	1 854	1 635
	1 854	1 635

(11) Intangible assets

	Concessions, patents, licenses, trademarks and similar rights EUR	Total 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
31.12.2014	1 025	1 025
Calculated depreciation	28	28
Depreciation of excluded investments	-	-
31.12.2015	1 053	1 053
Book value as at 31.12.2014	-	-
Book value as at 31.12.2015	1 672	1672

	Concessions, patents, licenses, trademarks and similar rights	Total
	EUR	EUR
Initial value
31.12.2013	1 025	1 025
Purchased	-	-
Disposed	-	-
31.12.2014	1 025	1 025
Accrued depreciation
31.12.2013	1 025	1 025
Calculated depreciation	-	-
Depreciation of excluded investments	-	-
31.12.2014	1 025	1 025
Book value as at 31.12.2013	-	-
Book value as at 31.12.2014	-	-

(12) Report on movement of fixed assets

	Land, buildings and constructions	Technological equipment and machinery	Other fixed assets	Total
	EUR	EUR	EUR	EUR
Initial value
31.12.2014	378 017	458 136	121 028	957 181
Purchased	-	18 071	5 678	23 749
Disposed	-	-	(2 129)	(2 129)
31.12.2015	378 017	476 207	124 577	978 801
Accrued depreciation
31.12.2014	237 125	405 157	110 535	752 817
Calculated depreciation	15 325	24 269	5 994	45 588
Depreciation of excluded fixed
assets	-	-	(2 129)	(2 129)
31.12.2015	252 450	429 426	114 400	796 276
Book value as at 31.12.2014	140 892	52 979	10 493	204 364
Book value as at 31.12.2015	125 567	46 781	10 177	182 525

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

	Land, buildings and constructions	Technological equipment and machinery	Other fixed assets	Total
	EUR	EUR	EUR	EUR
Initial value
31.12.2013	378 017	479 524	122 811	980 352
Purchased	-	16 409	5 639	22 048
Disposed	-	(37 797)	(7 422)	(45 219)
31.12.2014	378 017	458 136	121 028	957 181
Accrued depreciation
31.12.2013	221 249	418 303	112 456	752 008
Calculated depreciation	15 876	24 473	5 488	45 837
Depreciation of excluded fixed
assets	-	(37 619)	(7 409)	(45 028)
31.12.2014	237 125	405 157	110 535	752 817
Book value as at 31.12.2013	156 768	61 221	10 355	228 344
Book value as at 31.12.2014	140 892	52 979	10 493	204 364

As at 31 December 2014, the cadastral value of real estate – land and constructions - was EUR 158 004

(13) Investment properties

	Land	Total
	EUR	EUR
Book value as at 31.12.2013	86 795	86 795
Increase/decrease of value due to revaluation	25 205	25 205
Book value as at 31.12.2014	112 000	112 000
Increase/decrease of value due to revaluation	(18 000)	(18 000)
Book value as at 31.12.2015	94 000	94 000

(14) Investments in capital of associated companies

			2014
% from		% from
total share capital	total share
	EUR	capital	EUR
36.3	83 954	36.3	83 954
	83 954		83 954
		2015

(15) Other securities and investments

	EUR
Purchase value as at 31.12.2014	683
Book value as at 31.12.2014	683
Purchase value as at 31.12.2015	683
Book value as at 31.12.2015	683

(16) Ready-made products and goods for sale

	2015 EUR	2014 EUR
Bull semen	572 387	528 727
Other goods for sale	14 826	13 944
	587 213	542 671

(17) Trade receivables

	2015 EUR	2014 EUR
Accounting value of trade receivables	203 555	169 603
Provisions for doubtful trade receivables	(35 663)	(20 901)
	167 892	148 702

(18) Other receivables

	2015 EUR	2014 EUR
VAT for received goods and services	531	802
Overpayment of taxes	6 105	-
Other receivables	500	117
	7 136	919

(19) Prepaid expenses

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

	2015 EUR	2014 EUR
Advertising costs	191	188
Insurance	7 219	4 933
Press and legislation updates' subscription	1 207	1 115
Server maintenance and similar costs	574	344
Other prepaid expenses	375	404
	9 566	6 984

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

Break-down of cash according to currencies:		2015		2014
		Currency	EUR	Currency	EUR
Cash in hand	EUR	-	8 203	-	1 270
Cash in bank	EUR	-	341 806	-	365 870
			350 009		367 140

(21) Share capital

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

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

The total number of shares as per 31.12.2014 was 422 440, the nominal value of one share – 1 lats (1.422872 euro).

	2015 EUR	2014 EUR
Bearer shares with voting rights	590 016	599 655
Shares owned by the Board without voting rights	1 400	1 423
	591 416	601 078

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 full shareholders list requested from the Latvian Central Depository.

	16.04.2015. %	15.04.2014. %
'Siguldas mākslīgās apsēklošanas stacija' Ltd	49.92	49.92
Oļegs Radčenko	5.18	5.18
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	38.20	38.20
	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.

	31.12.2015 number	31.12.2014 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.

	2015 EUR	2014 EUR
Profit of the reporting period	75 668	155 916
Average weighted number of shares during the year	422 440	422 440
	0.179	0.369
(22) Other Reserves
	2015 EUR	2014 EUR
The difference of the share value resulting from the denomination of the
Company's shares from lats to euro	1 213	-
	1 213	-
(23) Other Provisions
	2015 EUR	2014 EUR
Provisions for vacations	7 399	7 483
	7 399	7 483
(24) Provisions for deferred tax
	2015 EUR	2014 EUR
Temporary differences in fixed assets depreciation	25 594	33 083
Provisions for vacations	(7 399)	(7 483)
Total temporary differences	18 195	25 600
Deferred tax provisions at the beginning of the period	3 840	4 550
Increase or decrease	(1 111)	(710)
Deferred tax provisions at the end of the period	2 729	3 840

(25) Taxes and social insurance payments

Tax type	Balance as at	Calculated in	Paid in	Balance as at
	31.12.2014	2015	2015	31.12.2015
	EUR	EUR	EUR	EUR
Corporate income tax	10 948	20 111	(37 164)	(6 105)
Value added tax	13 597	164 006	(165 209)	12 394
Social insurance contributions	13 052	120 943	(120 867)	13 128
Personal income tax	7 666	66 951	(67 279)	7 338
Real estate tax	-	1 854	(1 854)	-
Nature resource tax	77	250	(264)	63
Business risk duty	13	161	(161)	13
Tax for the exploitation of the vehicles	-	1 292	(1 292)	-
Tax applied on company owned motorcars	-	43	(43)	-
	45 353	375 611	(394 133)	26 831
Including:	2014			2015
	EUR			EUR
Tax overpaid	-			(6 105)
Tax due	45 353			32 936

Tax type	Balance as at 31.12.2013 EUR	Calculated in 2014 EUR	Paid in 2014 EUR	Balance as at 31.12.2014 EUR
Corporate income tax	(999)	26 164	(14 217)	10 948
Value added tax	13 076	169 589	(169 068)	13 597
Social insurance contributions	-	121 873	(108 821)	13 052
Personal income tax	-	69 771	(62 105)	7 666
Real estate tax	-	1 635	(1 635)	-
Nature resource tax	28	231	(182)	77
Business risk duty	-	157	(144)	13
Tax for the exploitation of the vehicles	-	709	(709)	-
Tax applied on company owned motorcars	-	1 121	(1 121)	-
	12 105	391 250	(358 002)	45 353
Including:	2013			2014
	EUR			EUR
Tax overpaid	(999)			-
Tax due	13 104			45 353

Tax overpaid declared in position 'Other receivables'

(26) Number of persons employed by the Company

	2015	2014
Average number of persons employed during the reporting year	36	36

(27) Information on remuneration of the Supervisory Board and Management Board members

	2015 EUR	2014 EUR
Supervisory Board members' salaries for work, including state social
insurance contributions Management Board members' salaries for work, including state social	10 989	10 366
insurance contributions	44 145	45 371
Total remuneration to the management members	55 134	55 737

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.

Report on Management Liability

According to the information being at our disposal, the Annual Report for 2015 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.

The Management Report contains true information.

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