Latvijas Juras medicinas centrs

Quarterly Report • Nov 30, 2014

LATVIJAS JURAS MEDICINAS CENTRS JSC

CONSOLIDATED INTERIM REPORT FOR THE 9 MONTHS OF 2014

PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS

LATVIJAS JURAS MEDICINAS CENTRS JSC

TABLE OF CONTENTS	PAGE
INFORMATION ABOUT PARENT COMPANY	3
COUNCIL AND BORD OF THE GROUP	4
MANAGEMENT REPORT	5 – 6
STATEMENT OF MANAGEMENT'S RESPONSIBILITIES	7
CONSOLIDATED FINANCIAL STATEMENTS	8 – 12
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	8 – 9
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT	10
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	11
CONSOLIDATED STATEMENT OF CASH FLOWS	12
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	13 – 22

INFORMATION ABOUT PARENT COMPANY LATVIJAS JURAS MEDICINAS CENTRS JSC

COMPANY NAME:	LATVIJA JURAS MEDICINAS CENTRS JSC
LEGAL STATUS:	Joint stock company
REGISTRATION:	Registered in Latvian Register of Enterprises at 27.08.2004
	Registration Number: 40003306807
LEGAL ADDRESS:	23, Patversmes street, Riga, LV-1005, Latvia
SHARES	800 000 public registered shares with face value 1.40 EUR
	ISIN code: LV0000100741
MAJOR SHAREHOLDERS:	Ilze Birka 17.50% Mārtiņš Birks 17.50% Ilze Aizsilniece 11.45% Guna Švarcberga 10.36% Jānis Birks 8.66% Adomas Navickas 6.35%
REPORTING PERIOD:	01.01.2014. - 30.09.2014.
AUDITORS NAME AND ADDRESS:	System audit Ltd. Licence No.53 Matisa street 19-6 Riga, LV-1001 Latvia Certified auditor in charge: Irina Saksaganska Certificate No.41

COUNCIL AND BORD OF THE GROUP LATVIJAS JURAS MEDICINAS CENTRS JSC

Council of the Group		Number of shares owned at
From April 28, 2010 till the consolidated financial statements signing day		30.09.2014
Position	Name
Chairman of the Council	Mārtiņš Birks	140 000
Member of the Council	Viesturs Šiliņš	3 038
Member of the Council	Ineta Gadzjus	-
Member of the Council	Jevgēņijs Kalējs	5 283
Member of the Council	Uldis Osis	-

Board of the group

From August 18, 2009 till April 30, 2014

Position	Name
Chairman of the Board	Jānis Birks	69 317
Member of the Board	Marta Aizsilniece	1 624
Member of the Board	Andris Vīgants	700

From May 1, 2014 till the consolidates financial statements signing day

Position	Name
Chairman of the Board	Jānis Birks	81 338
Member of the Board	Vita Švarcberga	2 885
Member of the Board	Juris Imaks	-

LATVIJAS JURAS MEDICINAS CENTRS JSC

MANAGEMENT REPORT

Type of activity

JSC Latvijas Juras medicinas centrs (LJMC) is a certified, high level and all available private medical authority that consists of: Sarkandaugava outpatient health care center Patversmes 23, Riga, Central Hospital Patversmes 23 Riga, Vecmīlgrāvis hospital and Ziemeļu diagnostic Center Vecmīlgrāvja 5. Līnija 26, Riga, Vecmīlgrāvis primary health care center Melīdas 10, Riga. In 2014 average number of LJMC employees is 360.

2013 LJMC is included in the LR Health inspection approved list of agencies providing medical tourism services i.e. LJMC services as a trusted partner, and it gives an idea about the Latvian healthcare system as a whole, because it includes only those medical institutions that are registered in the register of medical institutions for at least 3 years and over the last three years, the medical institution has been in control.

On March 2013 JSC Latvijas Juras medicinas centrs "Ziemeļu diagnostikas centrs" received a quality certificate ISO 9001:2008 in functional diagnostics and radiology from DVN Certification OY/AB, Finland. This certificate is valid till March 14, 2016. The work on the initiation of ISO quality standards in the other structural units continues.

LJMC have concluded cooperation agreements with all the health insurance companies.

LJMC shares are quoted on "NASDAQ OMX Riga" in the second list. Full information about the company is provided: www.ljmc.lv

Activity in the reference year and future development

2013 LJMC completed an ambitious 3-year investment project of 2.3 million EUR. Investment project entailed two major sections: the Medical Center's old building complex renovation and redevelopment of the areas adjacent to the modern medical standards, and secondly, investment in new equipment, medical equipment, and to raise the competitiveness of the Baltic market, attracting medical patients from both the EU and the Baltic and offering high quality medical examinations. The investment project was launched with the support from ERAF.

Of the investment project tasks was to put together the LJMC family doctor practices, thus was created the modern family physician practice Center, located in the LJMC Riga Northern District at Vecmīlgrāvī. Since a new family doctor practices LJMC Center was created number of new customers increased by 25%.

Building renovation project is one of the goals was to create a new ambulatory health care center in Sarkandaugava Patversmes 23, earlier provided inpatient health care services. Redirection of inpatient health care service to ambulatory health care service improve the future effectiveness, maximize LJMC resources and provide better medical care to patients.

In April 2014 LJMC won a tender regarding the right to provide medical care with PSKUS patients for 1 years.

LJMC as one of 2014 development directions has raised foreign patients association. LJMC combines excellent doctors in Latvia and a knowledgeable medical staff, so the quality of the medical study is tall and competitive outside Latvian. It shows the increasing number of foreign patients, as well as the fact that the LJMC has included official medical tourism service provider register kept by the LR Health inspection. LJMC in 2014 continue attract medical tourists from the EU. To attract more new foreign and local patients, LJMC in 2014 has detected investment objectives: implementation of innovative solutions in the medical service, staff training in patient care, continue national policies on the hospital redirection, providing investment in Vecmīlgrāvis hospital.

Financial performance

This financial statement has been prepared in accordance with the European Union accepted International Financial Reporting Standards (IFRS), based on the principle of a continuing business. The report is prepared in euro. Currency exchange rate till 31.12.2013. - EUR/LVL 0.702804.

The 2014th 9 month LJMC has worked according to the budget: revenue plan has been fulfilled for 103.63% and expenditure is met by 96.38%.

The 2014th 9 month LJMC profit before taxes is EUR 188 120. In 2014 LJMC planned investment is expected to amount to EUR 430 000.

MANAGEMENT REPORT

Risk management

LJMC potential financial risk management sought to reduce the negative impact on the financial position of the company, the exercise of control and analysis package.

Exposed to the credit risk of financial assets consist mainly of cash, trade receivables and other debtors

Credit risk management carried out regular customer LJMC control procedures and measures for recovering of debts, thus ensuring timely identification and resolution of problems.

LJMC followed prudent liquidity risk management, ensuring appropriate resources are made available for settlement of obligations within the time limits laid down. LJMC does not use borrowed funds.

Important Events after the Balance Sheet Date

Along with LR accession to the European Economic and Monetary Union 01.01.2014. LJMC action will not be subject to the exchange rate of the euro at risk.

2014 August LJMC is signed contract with "Selva buve" for first floor renovation in Vecmīlgrāvis hospital.

2014 September LJMC organized extraordinary shareholders meeting and elected Pricewaterhouse Coopers SIA (registration number: 40003142793, license No.5) as auditor of Latvijas Jūras medicīnas centrs JSC for the audit of annual report and consolidated annual report for 2014 and denominated 800 000 (eight hundred thousand) shares of Latvijas Jūras medicīnas centrs JSC with the nominal value of 1 LVL (one lat) each from lats to euro by stipulating that the share capital after the denomination shall be split into 800 000 (eight hundred thousand) shares with the nominal value of 1.40 EUR (one euro forty cents) each with the total share capital of the Company after denomination being 1 120 000 EUR (one million one hundred twenty thousand euro).

The contract has been concluded with a national health service of the country paid the provision of medical services, to the extent provided for in the 2014 budget.

Chairman of the Management Board

Jānis Birks

Member of the Management Board

Vita Švarcberga

Member of the Management Board

Juris Imaks

LATVIJAS JURAS MEDICINAS CENTRS JSC STATEMENT OF MANAGEMENT'S RESPONSIBILITIES

Consolidated financial statements are prepared to the best of our knowledge, in accordance with International Financial Reporting Standards adopted by the European Union. These financial statements give a true and fair view of the financial position of the Group and of its financial perfomance for the period ended 30 June 2014 in all essential aspects. In preparing those financial statements, management:

• selected suitable accounting policies and then apply them consistently,
• made judgments and estimates that are reasonable and prudent,
• prepared the financial statements on the going concern basis to presume that the Group will continue in business.

The Management Board is responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time to ensure that financial statements drawn up from them comply with International Financial Reporting Standards as adopted by EU. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.The managment Board is also responsible for operation of the Company in compliance with the legislation of the Republic of Latvia.

Chairman of the Board Janis Birks

Member of the Board Vita Svarcberga

Member of the Board Juris Imaks

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 30 SEPTEMBER 2014 AND 31 DECEMBER 2013 LATVIJAS JURAS MEDICINAS CENTRS JSC

	September 30, 2014	December 31, 2013	September 30, 2013	Notes
ASSETS	EUR	EUR	EUR
Long-term investments:
Intangible assets:
Other intangible (fixed) assets	11 208	19 707	23 169	2
Total intangible assets	11 208	19 707	23 169
Pamatlīdzekļi:
Land and buildings	2 079 576	2 268 288	2 333 490
Technological equipment and machines	675 085	829 711	897 024
Other fixed assets and fixtures	47 086	65 255	64 570
Unfinished building	156 571	156 571	156 571
Advance payments for fixed assets	42 215	-	-
Total fixed assets	3 000 533	3 319 825	3 451 655	2
Long-term financial assets:
Investment in associates	186 369	183 676	192 532	3
Total financial assets	186 369	183 676	192 532
Total lonf-term investments	3 198 110	3 523 208	3 667 355
Current assets:
Invetories:
Raw materials	113 461	84 873	79 554	4
Total Inventories	113 461	84 873	79 554
Debitors:
Trade receivables	221 948	164 235	177 623	5
Other receivables	4 547	15 882	8 452	6
Deffered expenditure	5 118	3 681	4 900	7
Total debitors	231 613	183 798	190 975
Cash funds	1 516 127	1 132 437	845 137	8
Total current assets	1 861 201	1 401 108	1 115 667
TOTAL ASSETS	5 059 310	4 924 316	4 783 022

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 30 SEPTEMBER 2014 AND 31 DECEMBER 2013 LATVIJAS JURAS MEDICINAS CENTRS JSC

	September 30, 2014	December 31, 2013	September 30, 2013	Notes
LIABILITIES	EUR	EUR	EUR
Equity capital:
Share capital	1 120 000	1 138 297	1 138 297	9
Reserves:
c) reserves provided by the Articles of Association	63 819	45 522	45 522
d) fixed asset's revaluation reserve	686 622	790 653	825 337	23
Retained earnings:
Undistributed profit	2 147 050	1 836 539	1 686 252
Total sharehoders' equity	4 017 491	3 811 011	3 695 409
Non-controlling interests	-	-
Total equity capital	4 017 491	3 811 011	3 695 409
Provisions for liabilities and charges:
Provisions for vacations	107 711	107 896	69 253
Deffered tax provisions	92 897	111 229	132 740	22
Total provisions	200 608	219 125	201 992
Non-current liabilities:
Deffered income	506 753	501 577	572 904	10
Total non-current liabilities	506 753	501 577	572 904
Current liabilities:
Advance payments	1 613	5 783	10 783	11
Trade Payables	75 725	87 764	74 046	12
Deffered income	23 776	47 551	-	10
Taxes and social security payments	105 623	113 987	107 967	13
Other payables	127 721	137 518	119 921	14
Total current liabilities	334 458	392 603	312 717
Total liabilities	841 211	894 180	885 621
TOTAL LIABILITIES	5 059 310	4 924 316	4 783 022

CONSOLIDATED COMPREHENSIVE INCOME STATEMENT FOR THE YEARS ENDED 30 SEPTEMBER 2014 AND 31 DECEMBER 2013 LATVIJAS JURAS MEDICINAS CENTRS JSC

	September 30, 2014	December 31, 2013	June 30, 2013	Notes
	EUR	EUR	EUR
Net sales	4 025 732	5 081 473	3 694 817	15
Cost of goods sold	(3 638 367)	(5 121 929)	(3 885 139)	16
Gross profit or loss	387 365	(40 456)	(190 321)
Administrative expenses	(331 795)	(460 667)	(340 930)	17
Other operating income	136 951	177 445	116 173	18
Other operating expenses	(7 857)	(2 180)	(14 010)	19
Income from investment in associate	967	(8 856)	-	20
Interest income and similar income	2 489	-	425	21
Profit (loss) before taxes	188 120	(334 713)	(428 663)
Corporate income tax	-	15 390		22
NET PROFIT OR LOSS	188 120	(319 323)	(428 663)
Other comprehensive income for the year, net of tax TOTAL COMPREHENSIVE INCOME FOR THE	-	(1 865)	-
YEAR	188 120	(321 188)	(428 663)
Profit attribute to:
Owners of LJMC	188 120	(321 188)	(428 663)
Non-controlling interest	-	-
Total comprehensive income attributable to	188 120	(321 188)	(428 663)
EBITDA	639 992	355 655	97 635
Number of shares	800 000	800 000	800 000
Earning per share (EPS)	0.24	(0.40)	(0.54)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARS ENDED 30 SEPTEMBER 2014 AND 31 DECEMBER 2013 LATVIJAS JURAS MEDICINAS CENTRS JSC

	Share capital	Reserves provided by the Articles of Association	Properties revaluation reserve	Undistribute d profit	Non controlling interest	Total
	EUR	EUR	EUR	EUR	EUR	EUR
At 31 December 2012	1 138 297	45 522	929 363	1 992 674	1 865	4 107 720
Depriciation of revaluation surplus	-	-	(163 189)	163 189	-	-
Deffered tax on revaluation surplus	-	-	24 479	-	-	24 479
Total comprehensive income for the year	-	-	-	(319 324)	(1 865)	(321 188)
At 31 December 2013	1 138 297	45 522	790 653	1 836 539	-	3 811 011
Undistributed profit	(18 297)	18 297	-	-	-	-
Paid dividends	-	-	-	-	-	-
Depriciation of revaluation surplus	-	-	(122 391)	122 391	-	-
Deffered tax on revaluation surplus	-	-	18 360	-	-	18 360
Total comprehensive income for the year	-	-	-	188 120	-	188 120
At 30 September 2014	1 120 000	63 819	686 622	2 147 050	-	4 017 491

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEARS ENDED 30 SEPTEMBER 2014 AND 31 DECEMBER 2013 LATVIJAS JURAS MEDICINAS CENTRS JSC

	September 30, 2014	December 31, 2013	September 30, 2013	Notes
	EUR	EUR	EUR
I Cash flows from operating activities
1. Net income before tax	188 120	(334 713)	(428 663)
Adjustments:
a) depreciation of fixed assets	441 330	663 534	516 444	2
b) depreciation of intengibles	10 549	13 315	9 853	2
c) loss (gain) on sale of fixed assets	-	(3 695)	2 620	18,19
d) provisions	-	38 644	-
e) ERAF income recognized in profit or loss	(23 775)	(47 551)	-	18
f) net loss on acquisition of a subsidiary shares	-	635	-
g) interest income	-	-	(425)	20
h) (gain) / loss from investments in associates	(967)	8 856	-	19
2. Changes in operating current assets and liabilities Corrections:	325 129	339 025	99 829
a) receivables	(47 815)	(59 931)	(67 108)
b) inventory	(28 588)	12 803	18 122
c) current liabilities 3. Gross operating cash flow	(114 383) 134 343	(27 415) 264 482	(85 486) (34 643)
4. Paid corporate income tax	;	-		12
5. Net cash used in operating activities	134 343	264 482	(34 643)
II Cash flow used in investment activities 1. Net cash outflow on acquisition af a subsidiary 2. Purchase of fixed assets 3. Income from sale of fixed assets 4. Received dividends form the associate	(1 757) (124 082) - 967	(2 500) (167 532) 6 355 -	- (152 276) - -	2
5. Received interest	2 489	-	425	20
6. Net cash from investment activities	(122 383)	(163 677)	(151 850)
III Cash flows used in financing activities -	-	-	-
7. Net cash from financing activities	-	-	-
IV Net increase (decrease) in cash	11 960	100 805	(186 494)
V Cash at the beginning of the period	1 132 437	1 031 632	1 031 632
VI Cash at the end of the period	1 516 127	1 132 437	845 137

LATVIJAS JURAS MEDICINAS CENTRS JSC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS ENDED 30 SEPTEMBER 2014 AND 31 DECEMBER 2013

GENERAL INFORMATION

"Latvijas Juras Medicinas Centrs" is a joint-stock company (the Company) incorporated in the Republic of Latvia on 27 August 1996. The consolidated financial statements incorporate the financial statements of the Company and its subsidiary - "Juras medicina" Ltd. (the Group).

The Group's main activity is health care services.

1. ACCOUNTING PRINCIPLES

Basis of consolidation

The consolidated financial statements have been prepared in accordance with the International financial reporting standards adopted by the European Union. Enclosed financial statements are prepared in EUR.

There is no difference in the dates of the Statements of financial position of the Company and its subsidiary.

The interest of minority shareholders is stated at the minority proportion of the net assets.

All significant intercompany transactions and balances among Group companies are eliminated on consolidation.

The net assets' portion attributed to the parent company are offset with the investment and have been eliminated. The retained earnings portion attributed to the parent company are earned after the acquisition date of shares are included in the consolidated retained earnings.

Foreign currency

Transactions denominated in foreign currencies are converted into Lats by the official exchange rate of the Bank of Latvia at the date of transaction. Monetary assets and liabilities are converted by the excahnge rate of the Bank of Latvia as on the date of statements of financial position.

The applicable rate used for the principal currencies were the follows:

	September 30, 2014	December 31, 2013
EUR	0.702804	0.702804

Gain or loss on conversion is posted to the statement of comprehensive income on the official exchange rate of the Bank of Latvia as of the statement of financial postion date and recognized in the period when they incurred.

Exchange differences rising on the settlement of monetary items are recognized in the period in which they arise.

Cash and cash equivalents

The statement on cash flows is prepared according to IAS 7.

Trade receivables

Trade receivables are stated at their net realizable value. Trade receivables represent the gross balance due from customers less provision, if any, for doubtful accounts receivable. Provision for doubtful accounts receivable at the balance sheet date represents the estimated amounts of probable losses that might have been incurred at the statement of financial position date based on individual evaluation of each debtor.

Inventory

Inventories are stated at the lower of cost or market, using FIFO method.

Fixed assets

Fixed assets excluding real estate are stated at historical cost, less accumulated depreciation. The cost of the item comprises its purchase price, including import duties and any directly attributable costs of bringing the asset to working condition for intended use. The cost of self-constructed asset is determined using the same principles as for an acquired asset. Only assets with its useful life more than one year are capitalized. Depreciation is calculated based on the historical cost.

Separate accounts are used for assets acquired by EU funding.

LATVIJAS JURAS MEDICINAS CENTRS JSC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS ENDED 30 SEPTEMBER 2014 AND 31 DECEMBER 2013

Repair and maintenance costs are expensed when incurred. Capital expenditures such as refurbishment of buildings and improvements to structural elements are recognized as an asset if the expenditures improve the condition of the asset beyond its original estimated life.

Land and buildings (real estate) are accounted according to the revaluation model, recognized at the fair value determined from market-based evidence.Buildings are revaluated as on 31.12.2011 based on the cadastral value as fair value. Accumulated depreciation at the date of the revaluation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount of the asset. Depreciation is calculated based on the revalued amount. The depreciation charge for each period is recognised in the statement of income.

The increase (decrease) in the value of buildings and constructions is reflected in the Statement of comprehensive income under "Gains (losses) from revaluation of properties". Revaluation decreases are charged first against the revaluation surplus in equity related to the specific asset, and any excess against profit or loss.

Depreciation is provided on all fixed assets based on historical cost. Depreciation on fixed assets are computed using the straight-line method over the estimated average useful lives:

Buildings:	20 years
Machinery and equipment:	3 years
Other fixed assets:	5 years

For tax purposes, depreciation on tangible fixed assets is calculated under the double declining balance method over the period established in accordance with prevailing tax legislation.

Investments in associates

Investments in associates are initially recognized at the cost.

Revenue recognition

Sales of goods are recognized when goods are delivered and title has passed.

Dividends

Dividends are recognized as liabilities in the Company financial statements after the Company shareholders made a decision to pay.

Deferred income

Government grants are accounted according to IAS 20. A government grant is recognised only when there is reasonable assurance that the Company will comply with any conditions attached to the grant and the grant will be received.

The grant is recognised as income in the statement statement of profit or loss and other comprehensive income the period necessary to match them with the related costs, for which they are intended to compensate, on a systematic basis.

Government grants related to assets, including non-monetary grants, are accounted for at fair value, presented as deferred income in the statement of financial position, which are recognised as income from the different exercises on a systematic and rational, over the life of the related assets.

Property revaluation surplus

The revaluation surplus is included in other comprehensive income and accrued amount is reflected in equity under the heading "Investment revaluation reserve". According to IASs 16, p.41, the revaluation surplus included in equity is transferred directly to retained earnings. The surplus transferred is the difference between depreciation based on the revalued carrying amount of the asset and depreciation based on the asset's original cost. Transfers from revaluation surplus to retained earnings are not made through profit or loss.

Taxation

LATVIJAS JURAS MEDICINAS CENTRS JSC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS ENDED 30 SEPTEMBER 2014 AND 31 DECEMBER 2013

Deferred taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in opinion of management, it is more likely than not that some proportion or all deferred tax assets will not be realized.

Deferred tax on revaluation surplus is reflected in the Statement of other comprehensive income.

Risk Management

The Management Board is responsible for setting up risk management guidelines and risk monitoring.

The Company has identified the major risk factors and developed policies and mechanisms to control these factors.The major risks are defined as:

Market risk: a country's economic deterioration, changes in the public and the insurer health care and its financing policy, competition, changes in utility tariffs, etc. can significantly affect the demand for Groups services and its profitability.

Operational risk: The possibility of suffering losses caused by inadequate or failed internal pace of the medical treatment process, actions of staff or systems, or external events impact. Patient dissatisfaction with the quality of medical services, treatment process organization or staff attitudes in the long term can lead to a fall in income and even financial claims.

Credit Risk: The inability of insurance companies and patients to pay for the services in time and in full amount.

Liquidity risk: unable to meet the legally enforceable requirements without major damage and inability to cope with unplanned changes in Groups resources and / or market conditions related to the fact that it does not have sufficient liquid assets.

Risk control mechanisms include: appropriate risk policies, investment planning, cash flow planning, budgeting and control, liquidity control, the medical treatment process organization and control, sanitary compliance control, staff skill development, implementation of advanced technologies, employee involvement in risk assessment and control.

Reclassification

Real estate tax was reclassified in Statement of profit or loss from Other operating expenses to Cost of goods sold.

2. TOTAL FIXED ASSETS AND OTHER INTANGIBLE (FIXED) ASSETS

As on 30 September 2014 and 31 December 2013

fixed assets are composed follows:

EUR	Intangible assets	Land and buildings	Technological equipment and machines	Other fixed assets and fixtures	Fixed assets add-ons	Advance payments for fixed assets	Unfinished buildings	Total
Historical cost
At 31 December 2012	64 610	4 685 210	3 792 707	501 438	-	4 727	156 571	9 205 263
Additions	11 347	27 279	87 114	46 519	-	(4 727)	-	167 532
Transfers	-	-	-	-	-	-	-	-
Disposals	(3 917)	(1 851)	(196 925)	(42 811)	-	-	-	(245 504)
At 31 December 2013	72 040	4 710 638	3 682 896	505 146	-	-	156 571	9 127 291
Additions	2 050	-	76 372	3 445	-	42 215	-	124 082
Transfers	(3 334)	-	(157 815)	(42 263)	-	-	-	(203 412)
At 30 September 2014	70 756	4 710 638	3 601 453	466 328	-	42 215	156 571	9 047 961
Accumulated depreciation	-
At 31 December 2012	42 935	2 183 514	2 679 758	447 549	-	-	-	5 353 756
Charge for the year	13 315	97 494	370 311	32 535	-	-	-	513 655
Charge for the period for revaluated fixed assets	-	163 193	-	-	-	-	-	163 193
Disposals	(3 917)	(1 851)	(196 884)	(40 193)	-	-	-	(242 845)
At 31 December 2013	52 333	2 442 350	2 853 185	439 891	-	-	-	5 787 759
Charge for the year	10 549	66 318	231 001	21 617	-	-	-	329 485
Charge for the period for revaluated fixed assets	-	122 394	-	-	-	-	-	122 394
Disposals or change in classification	(3 334)	-	(157 818)	(42 266)	-	-	-	(203 418)
At 30 September 2014	59 548	2 631 062	2 926 368	419 242	-	-	-	6 036 220
Net book value
At 31 December 2012	21 675	2 501 696	1 112 949	53 889	-	4 727	156 571	3 851 507
At 31 December 2013	19 707	2 268 288	829 711	65 255	-	-	156 571	3 339 532
At 30 September 2014	11 208	2 079 576	675 085	47 086	-	42 215	156 571	3 011 741

3. INVESTMENT IN ASSOCIATES

	2014		2013 EUR
	EUR
		Ieguldījumu	Kapitāla	Ieguldījum
	Kapitāla daļa (%)	summa	daļa (%)	u summa
Participationg interests in associated enterprises
Participation in "Neirozu klinika" Ltd.	45.32	186 369	45.32	183 676
Total participating interests in associated enterprises		186 369		183 676
4. RAW MATERIALS
	2014		2013
	EUR		EUR
Pharmaceutical	113 123		84 579
Advance payments to supplier of goods	299		185
Other materials	39		110
Total	113 461		84 874
5. TRADE RECEIVABLES
	2014		2013
	EUR		EUR
Riga's health department	121 689		70 691
P.Stradiņa klīniskā universitātes slimnīca	33 145		24 996
Insurance BTA SE	7 256		10 444
Gjensidege Baltic	4 962		10 195
Compensa Life Vienna Insurance group	4 011		5 488
Ergo Latvija AAS	10 177		4 485
IF Latvija AAS	5 104		4 441
SEESAM Latvija	3 087		3 849
Balta AAS	2 645		2 331
Latvian railway JSC	1 722		1 722
University of Latvia	1 112		1 043
Olla M SIA	1 655		885
Ministry of Interior – health and social department	737		868
Balva AAS	30		795
Baltijas apdrošināšanas nams	2 021		660
Biogen Idec Ltd.	-		178
Other customers	32 215		29 123
Bad debt provisions	(9 620)		(7 960)
Total	221 948		164 234
6. OTHER RECEIVABLES
	2014		2013
	EUR		EUR
Taxes overpaid (note No.12)	6		5 111
VAT for unpaid invoices	-		-
Other receivables	4 541		10 771
Total	4 547		15 882
7. DEFFERED EXPENDITURE	2014		2013
	EUR		EUR
Assurance	5 118		3 681
Total	5 118		3 681
8. CASH FUNDS
	2014		2013
Cash in bank	1 497 035		1 128 052
Cash in hands	19 092		4 385
Total	1 516 127		1 132 437

9. SHARE CAPITAL

	2014		2013
		Kapitāla	Akciju	Kapitāla
Shareholders:	Akciju skaits	daļa %	skaits	daļa %
Ilze Birka	140 000	17.50%	140 000	17.50%
Mārtiņš Birks	140 000	17.50%	140 000	17.50%
Ilze Aizsilniece	91 565	11.45%	91 565	11.45%
Guna Švarcberga	82 917	10.36%	82 917	10.36%
Jānis Birks	69 317	8.66%	69 317	8.66%
Adomas Navickas	50 825	6.35%	50 825	6.35%
Other shareholders (shares less than 5%)	225 376	28.17%	225 376	28.17%
Total	800 000	100.00%	800 000	100.00%
Share equity	1 120 000		1 138 297
10. DEFFERED INCOME
	2014		2013
	EUR		EUR
ERAF project reimbursement:
Short-term part	23 776		47 551
Long-term part	506 753		501 577
Total	530 529		549 128
11. ADVANCE PAYMENTS
	2014		2013
	EUR		EUR
Riga's health department	-		4 169
Other advances	1 613		1 614
Total	1 613		5 783
12. TRADE PAYABLES
	2014		2013
	EUR		EUR
Medilink SIA	17 419		14 930
Latvenergo Rīgas elektrotīkls	-		10 397
Sistēmu Audits SIA	-		8 608
Latvijas Gāze	1 695		4 956
Zitari SIA	-		2 639
Rīgas Ūdens	1 485		1 104
Akadēmiskā histoloģijas laboratorija SIA	-		322
Tradintek SIA	1 857		-
Other suppliers	53 269		44 810
Kopā	75 725		87 766

13. TAXES AND SOCIAL SECURITY PAUMENTS

	As of 31.12.2013	Calculated	Paid	Returned	As of 30.09.201 4.
	EUR	EUR	EUR	EUR	EUR
Value added tax	1 635	23 831	(24 031)	-	1 435
Social insurance	72 377	632 386	(632 051)	(5 105)	67 607
Personal income tax	39 001	351 258	(354 650)	-	35 609
Corporate income tax	(5 105)	-	-	5 105	-
Unemployment duty	114	1 060	(1 060)	-	114
Natural resources tax	858	2 602	(2 602)	-	858
Corporate transport tax	-	-	-	-	-
Real estate tax	(6)	7 945	(7 945)	-	(6)
Total, including	108 874	1 019 082	(1 022 339)	-	105 617
due to the budget	113 985				105 623
overpayment	(5 111)				(6)
14. OTHER PAYABLES
		2014 EUR		2013 EUR
Salaries		126 539		136 098
Trade union		670		761
Deposited salary		512		659
Total		127 721		137 518
15. NET SALE
		2014		2013
		EUR		EUR
Medical ambulant services		2 745 926		3 294 993
Medical hospital services		683 536		909 783
Insurance payments		280 245		321 414
VS ZDC ambulant services		195 425		278 847
Inpatient Care		95 599		153 771
Stomatology services		6 254		52 833
Family doctors		-		31 868
Residents training		10 009		20 859
Services - minimum fixed part		8 211		13 144
Other income		527		3 961
Total		4 025 732		5 081 473
16. COST OF GOODS SOLD
		2014		2013
		EUR		EUR
Salaries and wages		1 654 970		2 232 465
Fixed assets depreciation		451 872		676 843
Medical goods		487 803		636 675
Social tax		380 026		524 391
Public utilities		155 701		249 382
VAT - expenses		167 231		245 431
Repair expenses		102 336		153 499
Fixed assets depreciation		44 736		61 077
Security expenses		16 241		40 014
Medical researches		30 325		38 583
Provisions for vacations		-		38 536
Feeding expenses		20 740		31 639
Computer maintenance, repair		15 639		27 908
Household goods		26 293		26 007
Real estate tax		-		18 048

16. COST OF GOODS SOLD (continued) `

	2014	2013
	EUR	EUR
Advertising	18 125	6 511
Office expenses	10 409	11 315
Utilities	2 810	7 114
Insurance expenses	4 376	5 949
Transport expense	9 335	9 182
ERP system maintanance	9 816	6 229
Employees trainings	3 262	2 942
Allowances to employees	934	1 281
Unemployment duty	1 060	1 481
Gifts to employees	199	710
Accruals for doubtful debts	1 661	4 010
Rent of equipment	7 117	569
Received discounts	-	(8 580)
Other operating expenses	15 350	72 718
Total	3 638 367	5 121 929
	2014	2013
Average number of employees	360	355
17. ADMINISTRATIVE EXPENSES
	2014	2013
	EUR	EUR
Salaries and wages	173 252	247 957
Social tax	40 275	58 392
Board remuneration	29 591	36 716
Board chairperson remuneration	26 777	30 977
Council members remuneration	14 343	19 123
Communication expenses	7 366	11 807
Council chairperson remuneration	6 147	8 196
Board members social tax	6 480	7 610
Chairperson of the Board social tax	6 317	7 463
Audit expenses	1 130	7 114
Office expenses	5 816	6 759
Bank expenses	6 317	6 010
Council members social tax	3 014	4 118
Legal services	398	2 001
Chairperson of the Council social tax	1 481	1 975
Presentation expenses	976	1 615
Other administrative expenses	2 115	2 834
Total	331 795	460 667
18. OTHER OPERATING INCOME
	2014	2013
	EUR	EUR
Rent income	78 001	95 823
ERAF income: fixed assets depreciation	23 775	47 551
Hotel services – food	10 254	15 360
Utilities for tenants	5 960	6 076
Net gain from sale of fixed assets	-	3 695
Laundry income	1 268	1 005
Solarium income	2 195	512
Other income	15 498	7 423
Total	136 951	177 445

19. OTHER OPERATING EXPENSES

	2014	2013
	EUR	EUR
Penalties	-	232
Loss from fixed assets disposals	-	-
Other expenses	7 857	1 948
Total	7 857	2 180
20. INCOME FROM INVESTMENT IN ASSOCIATE
	2014	2013
	EUR	EUR
Neurology clinic Ltd.	967	-8 856
Total	967	-8 856
21. INTEREST INCOME AND SIMILAR INCOME
	2014	2013
	EUR	EUR
Interest income	2 489	-
Total	2 489	-
22. CORPORATE INCOME TAX
	2014	2013
	EUR	EUR
Calculated Corporate income tax	-	-
Deferred Corporate income tax	-	15 390
Total	-	15 390
22. CORPORATE INCOME TAX (continued)
	2014	2013
	EUR	EUR
Profit (loss) before tax	188 120	(334 713)
Loss from subsidiary	-	14 994
Income from the evaluation of the associate company	-	(8 856)
Theaoretically calculated corporate income tax, rate
15%	28 218	(49 286)
Permanent differencies	-	11 827
Calculated corporate income tax	28 218	-
Deffered tax
Temporary difference between financial statement	(686 233)	(686 233)
Temporary difference of fixed assets revaluation	(40 794)	(163 185)
Accruals for vacations	107 711	107 896
Total temporary differencies	(619 316)	(741 522)
Tax rate applied	15%	15%
Deferred tax liabilities	(92 897)	(111 229)
Recognized deferred tax liabilities	92 897	111 229