Siguldas CMAS

Quarterly Report • Nov 26, 2015

Joint Stock Company SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA

INTERIM REPORT for Nine Months of 2015

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	24

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 Board	Nils Ivars Feodorovs, Chairman of the Management Board Sarmīte Arcimoviča, Member of the Management Board Valda Mālniece, Member of the Management Board
Members of the Council	Inita Bedrīte, Chairman of the Supervisory Board Maija Beča, Deputy Chairman of the Supervisory Board Ērika Everte, Member of the Supervisory Board Solvita Arcimoviča, Member of the Supervisory Board Jekaterina Kreise, Member of the Supervisory Board
Reporting period	01.01.2015 – 30.09.2015
Previous reporting period	01.01.2014 – 30.09.2014
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

The basic economic activity of the Joint Stock Company invariably is the production and sale of bull semen, comprising 52.3% of its net turnover in the accounting period, as well as the milk testing and data processing services, which collectively comprise 36.1% of the Company's net turnover. The proportion of the Company's basic activities, if compared to the first nine months of 2014, does not show any significant changes.

Company's net turnover in the first nine months of 2015 was 842.9 thousand EUR, showing a decrease of 3.7% against the corresponding period in 2014, while Company's profit of 103.9 thousand EUR of the first nine months of 2015 shows a decrease of 30.3% against the corresponding period in 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 price and the market conjuncture resulting in lowering of the farmers purchasing power.

The commercial profitability in the first nine months of 2015 was 14.7%, compared to 18.5% in 2014.

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 30 September 2015

	Note	2015 EUR	2014 EUR
Net sales	3	842 942	875 193
Changes in stock of ready-made goods and unfinished products	4	24 778	37 355
Other operating income	5	8 057	6 673
Costs of materials:		(339 360)	(342 834)
a) raw materials and auxiliary costs of materials		(254 511)	(258 131)
b) other external costs		(84 849)	(84 703)
Personnel costs:	6	(344 625)	(347 286)
a) salaries for work		(274 081)	(275 926)
b) state social insurance compulsory contributions		(61 717)	(62 161)
c) other social insurance costs		(8 827)	(9 199)
Write-off of assets and values:		(34 686)	(33 934)
a) depreciation of fixed assets and amortization of intangible assets		(34 686)	(33 934)
Other operating costs	7	(30 803)	(31 636)
Other interest income and similar income	8	4 306	2 989
Interest payments and similar costs	9	(6 588)	(4 232)
Profit or losses before taxes		124 021	162 288
Enterprise income tax for the reporting year		(18 287)	(11 544)
Other taxes	10	(1 854)	(1 635)
The profit or loss for the year		103 880	149 109
Equity per 1 share (EPS)	22	0.246	0.353

Notes on pages 10 to 23 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 30 September 2015

Assets	Note	2015 EUR	2014 EUR
Long-term investments
Fixed assets
Land parcels, buildings and constructions and perennial plantings		129 385	144 861
Equipment and machinery		49 431	59 757
Other fixed assets and inventory
Fixed assets total		11 629	11 681
	12	190 445	216 299
Investment properties Biological assets	13	112 000 69 310	86 795 78 276
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
		456 392	466 007
Current assets
Stock
Raw materials, basic materials and auxiliary materials		18 488	21 763
Ready-made goods and goods for sale	16	579 134	544 602
Prepayments for goods		3 106	275
Stock total		600 728	566 640
Receivables
Trade receivables Other receivables	17 18	243 577 4 907	203 319 539
Prepaid expenses	19	4 310	4 081
		252 794	207 939
Receivables total Short-term financial investments
Other securities and shareholding in capitals	20	-	31 148
Short-term financial investments total		-	31 148
Cash	21	291 183	266 365
Current assets total
		1 144 705	1 072 092
Assets total		1 601 097	1 538 099

6

Balance sheet as at 30 September 2015

Shareholders' equity and liabilities	Note	2015 EUR	2014 EUR
Shareholders' equity
Share capital	22	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		103 880	149 109
Shareholders' equity total		1 513 270	1 461 725
Provisions
Other provisions	24	7 483	6 926
Provisions total		7 483	6 926
Payables
Long-term payables
Deferred tax liabilities	25	3 840	4 550
Long-term payables total		3 840	4 550
Short-term payables
Prepayment received from customers		254	492
Trade payables		28 640	15 073
Taxes and social insurance payments	26	32 725	36 558
Other payables		14 885	12 775
Short-term payables total		76 504	64 898
Payables total		80 344	69 448
Shareholders' equity and liabilities total		1 601 097	1 538 099

Notes on pages 10 to 23 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 30 September 2015

	Note	2015 EUR	2014 EUR
Cash flow from operating activities
Income from sale of goods and provision of services		928 875	1 000 891
Payments to suppliers, employees, other expenses arising from basic operations		(903 702)	(915 073)
Gross cash flow from basic operations		25 173	85 818
Expenses for enterprise income tax payments		(29 235)	(10 545)
Net cash flow from operating activities		(4 062)	75 273
Cash flow from investing activities
Purchase of fixed assets and intangible investments		(20 767)	(21 889)
Income from exclusion of fixed assets		996	-
Earnings from investment denomination		11	-
Net cash flow from investing activities		(19 760)	(21 889)
Cash flow from financing activities
Subsidies received as a state support		7 061	6 673
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		(52 081)	(52 469)
Result of foreign exchange rate fluctuations
		(54)	(454)
Increase/ decrease of cash and its equivalents		(75 957)	461
Cash and its equivalents at the beginning of the period		367 140	265 904
Cash and its equivalents at the end of the period	21	291 183	266 365

Notes on pages 10 to 23 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 30 September 2015

	Share capital	Other reserves	Retained earnings carried forward from previous years	Retained earnings for the reporting year	Shareholders' equity total
	EUR	EUR	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	-	-	70 095	(70 095)	-
Dividends for 2013	-	-	(59 142)	-	(59 142)
Retained earnings for the reporting year	-	-	-	149 109	149 109
30.09.2014	601 078	-	711 538	149 109	1 461 725
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	- -	- -	155 916 (50 693)	(155 916) -	- (50 693)
The denomination of the Company's shares from lats to euro Retained earnings for the reporting year	(9 662) -	1 213 -	- -	- 103 880	(8 449) 103 880
30.09.2015	591 416	1 213	816 761	103 880	1 513 270

Notes on pages 10 to 23 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

(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 nine months from 1 January to 30 September 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.

	30.09.2015	30.09.2014
USD	1.12030	1.25830

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	440 672	469 972
Milk laboratory services	216 545	216 281
Treatment of supervisory data	88 166	88 009
Cow exterior appraisal	4 565	4 919
Artificial insemination of livestock	32 705	32 727
Other income	60 289	63 285
	842 942	875 193
Distribution of net sales according to the geographical markets:
	2015	2014

	842 942	875 193
Latvia	842 942	875 193
	EUR	EUR

Earnings from agricultural activities represented in net sales:

EUR	2014 EUR
842 942	875 193
842 942	875 193

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

	2015 EUR	2014 EUR
Changes in sperm stock value	28 943	30 305
Changes in stud bull herd value	(4 165)	7 050
	24 778	37 355
(5) Other operating income
	2015 EUR	2014 EUR
Revenue from exclusion of fixed assets	996	-

8 057 6 673

State support for agricultural 7 061 6 673

(6) Personnel costs

	2015 EUR	2014 EUR
Salaries for work	264 285	266 368
Life insurance with cash value accrual	9 796	9 558
State social insurance contributions	61 717	62 161
Health insurance	7 432	7 562
Other costs	1 395	1 637
	344 625	347 286

(7) Other operating expenses

	2015 EUR	2014 EUR
Insurance payments	1 507	1 469
Business trip expenses	1 740	2 900
Selling expenses	1 451	1 498
The costs of accreditation and employee training	1 307	1 261
The costs of security services	952	952
Taxes applied on the vehicles	505	1 239
Company's management and administrative expenses	8 515	7 158
Regulated securities market expenses	8 459	8 210
Other costs	6 367	6 949
	30 803	31 636

(8) Other interest income and similar income

	2015 EUR	2014 EUR
Income from securities	-	32
Income from foreign currency exchange rate fluctuations	1 193	-
Recovered doubtful and bad debts	3 102	2 954
Other income	11	3
	4 306	2 989

(9) Interest payments and similar costs

	2015 EUR	2014 EUR
Loses from foreign currency exchange rate fluctuations	-	1 162
Employees' leisure and other costs not connected with operating activities	6 588	3 070
	6 588	4 232

(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	Total
	EUR	EUR
Initial value
31.12.2014	1 025	1 025
Purchased	-	-
Disposed	-	-
30.09.2015	1 025	1 025
Accrued depreciation
31.12.2014	1 025	1 025
Calculated depreciation	-	-
Depreciation of excluded investments	-	-
30.09.2015	1 025	1 025
Book value as at 31.12.2014	-	-
Book value as at 30.09.2015	-	-

	Concessions, patents, licenses, trademarks and similar rights
	EUR	EUR
Initial value
31.12.2013	1 025	1 025
Purchased	-	-
Disposed	-	-
30.09.2014	1 025	1 025
Accrued depreciation
31.12.2013	1 025	1 025
Calculated depreciation	-	-
Depreciation of excluded investments	-	-
30.09.2014	1 025	1 025
Book value as at 31.12.2013	-	-
Book value as at 30.09.2014	-	-

(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	-	15 186	5 581	20 767
Disposed	-	-	(1 590)	(1 590)
30.09.2015	378 017	473 322	125 019	976 358
Accrued depreciation
31.12.2014	237 125	405 157	110 535	752 817
Calculated depreciation	11 507	18 734	4 445	34 686
Depreciation of excluded fixed assets	-	-	(1 590)	(1 590)
30.09.2015	248 632	423 891	113 390	785 913
Book value as at 31.12.2014	140 892	52 979	10 493	204 364
Book value as at 30.09.2015	129 385	49 431	11 629	190 445

As at 30 September 2015, the cadastral value of real estate – land and constructions - was EUR 158 004

	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	5 480	21 889
Disposed	-	(33 529)	(1 577)	(35 106)
30.09.2014	378 017	462 404	126 714	967 135
Accrued depreciation
31.12.2013	221 249	418 303	112 456	752 008
Calculated depreciation	11 907	17 873	4 154	33 934
Depreciation of excluded fixed
assets	-	(33 529)	(1 577)	(35 106)
30.09.2014	233 156	402 647	115 033	750 836
Book value as at 31.12.2013	156 768	61 221	10 355	228 344
Book value as at 30.09.2014	144 861	59 757	11 681	216 299

As at 30 September 2014, the cadastral value of real estate – land and constructions - was EUR 158 004

(13) Investment properties

	Land
	EUR	EUR
Book value as at 31.12.2013	86 795	86 795
Increase/decrease of value due to revaluation	-	-
Book value as at 30.09.2014	86 795	86 795
Book value as at 31.12.2014	112 000	112 000
Increase/decrease of value due to revaluation	-	-
Book value as at 30.09.2015	112 000	112 000

(14) Investments in capital of associated companies

	2015			2014
	% from		% from
	total share capital	total share
		EUR	capital	EUR
'Animal Breeders Association of Latvia' Ltd.
(SIA "Latvijas šķirnes dzīvnieku audzētāju savienība" )
Legal address: Republikas laukums 2, Rīga, LV-1010,
Latvia	36.3	83 954	36.3	83 954
		83 954		83 954

(15) Other securities and investments

	EUR
Purchase value as at 30.09.2014	683
Book value as at 30.09.2014	683
Purchase value as at 30.09.2015	683
Book value as at 30.09.2015	683

(16) Ready-made products and goods for sale

	2015 EUR	2014 EUR
Bull semen	566 884	534 614
Other goods for sale	12 250	9 988
	579 134	544 602

(17) Trade receivables

	2015 EUR	2014 EUR
Accounting value of trade receivables	261 376	210 837
Provisions for doubtful trade receivables	(17 799)	(7 518)
	243 577	203 319

(18) Other receivables

	2015 EUR	2014 EUR
VAT for received goods and services	2 839	254
Other receivables	2 068	285
	4 907	539

(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	122	129
Insurance	3 303	3 236
Press and legislation updates' subscription	716	625
Other prepaid expenses	169	91
	4 310	4 081

(20) Other securities and shareholding in capitals

		2015		2014
	Number	Market price	Amount EUR	Number	Market price	Amount EUR
SEB Euro reserve fund	-	-	-	15 044	2.07046	31 148
			-			31 148

(21) 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	-	19 498	-	6 651
Cash in bank	EUR	-	271 685	-	259 714
			291 183		266 365

(22) 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 30.09.2015 is 422 440, the nominal value of one share is 1.40 euro.

The total number of shares as per 30.09.2014 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 full shareholders list of 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.

	30.09.2015 number	30.09.2014 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	103 880	149 109
Average weighted number of shares during the year	422 440	422 440
	0.246	0.353
(23) 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	-
(24) Other Provisions
	2015 EUR	2014 EUR
Provisions for vacations	7 483	6 926
	7 483	6 926
(25) Provisions for deferred tax

	2015 EUR	2014 EUR
Temporary differences in fixed assets depreciation	33 083	37 263
Provisions for vacations	(7 483)	(6 926)
Total temporary differences	25 600	30 337
Deferred tax provisions at the beginning of the period	3 840	4 550
Increase or decrease	-	-
Deferred tax provisions at the end of the period	3 840	4 550

(26) Taxes and social insurance payments

Tax type	Balance as at 31.12.2014	Calculated in 2015	Paid in 2015	Balance as at 30.09.2015
	EUR	EUR	EUR	EUR
Corporate income tax	10 948	18 287	(29 235)	-
Value added tax	13 597	127 389	(123 353)	17 633
Social insurance contributions	13 052	89 187	(92 549)	9 690
Personal income tax	7 666	49 321	(51 642)	5 345
Real estate tax	-	1 854	(1 854)	-
Nature resource tax	77	147	(181)	43
Business risk duty	13	120	(119)	14
Tax for the exploitation of the vehicles	-	462	(462)	-
Tax applied on company owned motorcars	-	43	(43)	-
	45 353	286 810	(299 438)	32 725
Including:	2014			2015
	EUR			EUR
Tax due	45 353			32 725

Tax type	Balance as at 31.12.2013 EUR	Calculated in 2014 EUR	Paid in 2014 EUR	Balance as at 30.09.2014 EUR
Corporate income tax	(999)	11 544	(10 545)	-
Value added tax	13 076	130 975	(123 713)	20 338
Social insurance contributions	-	89 825	(79 511)	10 314
Personal income tax	-	51 181	(45 335)	5 846
Real estate tax	-	1 635	(1 635)	-
Nature resource tax	28	154	(136)	46
Business risk duty	-	118	(104)	14
Tax for the exploitation of the vehicles	-	494	(494)	-
Tax applied on company owned motorcars	-	745	(745)	-
	12 105	286 671	(262 218)	36 558
Including:	2013			2014
	EUR			EUR
Tax overpaid	(999)			-
Tax due	13 104			36 558

Tax overpaid declared in position 'Other receivables'

(27) Number of persons employed by the Company

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

(28) 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	8 242	7 481
insurance contributions	31 089	33 921
Total remuneration to the management members	39 331	41 402

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 that is at our disposal, the Interim Report for Nine Months of 2015 has been prepared according to the effective requirements of legislative enactments and provide a true and fair view about the joint stock company's 'Siguldas ciltslietu un mākslīgās apsēklošanas stacija' assets, liabilities, financial condition and profit.

Interim Report for Nine Months of 2015 has not been audited by a sworn auditor.

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece

Chairman of the Management Board

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

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