Latvijas Juras medicinas centrs

Annual / Quarterly Financial Statement • Mar 21, 2014

LATVIJAS JŪRAS MEDICĪNAS CENTRS JSC

FINANCIAL REPORT FOR THE YEAR 2013

PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS

Rīga 2014

LATVIJAS JŪRAS MEDICĪNAS CENTRS JSC TABLE OF CONTENTS

	PAGE
INFORMATION ABOUT PARENT COMPANY	3
COUNCIL AND BOARD OF THE GROUP	4
MANAGEMENT REPORT	5-6
STATEMENT OF MANAGEMENT'S RESPONSIBILITIES
FINANCIAL STATEMENTS	8 - 12
STATEMENT OF FINANCIAL POSITION	8 - 9
COMPREHENSIVE INCOME STATEMENT	10
STATEMENT OF CHANGES IN EQUITY	11
STATEMENT OF CASH FLOWS	12
NOTES TO THE FINANCIAL STATEMENTS	13-22
INDEPENDENT AUDITOR'S REPORT	23

LATVIJAS JŪRAS MEDICĪNAS CENTRS JSC INFORMATION ABOUT PARENT COMPANY

COMPANY NAME:	LATVIJAS JŪRAS MEDICĪNAS 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 str., Riga, LV - 1005, Latvia
SHARES	800 000 public registered shares with face value 1,00 LVL
	ISIN code:LV0000100741
	1 200 registered shares listed in the register of the Board
MAJOR SHAREHOLDERS:	Ilze Birka 17.5%
	Mārtiņš Birks 17.5%
	Ilze Aizsilniece 11.4%
	Guna Švarcberga 10.4% Jānis Birks 8.7%
	Adomas Navickas 6.4%
SUBSIDIARY COMPANY:	"Juras medicIna" Ltd. - 100.00%
	Registration Number: 40003171237
	28 December 1993
	5 Vecmilgravja str., Linija 28, Riga, LV 1015
REPORTING PERIOD:	1 January 2013 - 31 December 2013
AUDITORS NAME AND ADDRESS:	System audit Ltd.
	Licence No.53
	Matisa str. 19-6
	Riga, LV-1001
	Latvia Certified auditor in charge:
	Irina Saksaganska
	Certificate No.41

Council of the company

From April 28, 2010 till the financial statements signing day

Position Name

Chairman of the Council Martins Birks Member of the Council Viesturs Shilinsh Member of the Council Ineta Gadzjus Member of the Council Jevgenijs Kalejs Member of the Council Uldis Osis

Board of the company

From August 18, 2009 till the financial statements signing day

Position Name

Chairman of the Board Janis Birks Member of the Board Marta Aizsilniece Member of the Board Andris Vigants

LATVIJAS JŪRAS MEDICĪNAS CENTRS JSC

MANAGEMENT REPORT

Type of activity

JSC Latvian maritime medicine centre (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 2013 average number of LJMC employees is 355.

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 Joint-stock company Latvijas Jūras medicīnas 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 reporting year and future development

2013 LJMC completed an ambitious 3-year investment project of 1.6 million LVL. 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%.

One of the goals of Building renovation project was to create a new ambulatory health care centre in Sarkandaugava Patversmes 23, earlier provided inpatient health care services. Redirection of inpatient health care service to ambulatory health care service improves the future effectiveness, maximizes LJMC resources and provides better medical care to patients.

In May 2013 LJMC won a tender regarding the right to provide medical care with Paul Stradins Clinical University Hospital patients for 1 years.

As one of 2014 development directions LJMC focuses on attracting foreign patients. LJMC combines excellent doctors in Latvia and a knowledgeable medical staff, so the quality of the medical study is deep and competitive both in and out of Latvia. It resulted in increasing number of foreign patients, as well as including LJMC in the official medical tourism service provider register kept by the LR Health inspection. LJMC in 2013 mainly attracted medical tourists from EU. To attract more new foreign and local patients, LJMC in 2014 has set the investment objectives: implementation of innovative solutions in the medical service, staff training in patient care, continue state policy on the hospital redirection, providing investment in Vecmīlgrāvis hospital.

Financial performance

In 2013 the audited 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 Latvian lats and euro. Currency exchange rate EUR/LVL 0.702804.

2013 LJMC has worked according to the budget: revenue plan has been fulfilled for 98.8% and expenditure is met by 101.5%.

LATVIJAS JŪRAS MEDICĪNAS CENTRS JSC

MANAGEMENT REPORT

LJMC financial indicators for the last 3 years:

	2013	2012	2011
Net sales (milj. LVL)	3,57	3,79	3,52
Investment in long-term asset (milj. LVL)	0.12	0.49	1.04
Assets at the end of the year (milj. LVL)	3,50	3,74	3,94
Loss after taxes (LVL)	-207,224	-53,937	-85,385
EBITDA (LVL)	257,663	439,768	332,373
Liquidity (CR)	3,60	2,98	2,01
Credit rate (DR)	0,18	0,18	0,20
Return on equity (ROE), %	-7,6%	-1,9%	-2,9%
Loss after taxes on share(LVL)	-0.26	-0.07	-0.11
LJMCshare market price at the end of the year(LVL)	1,5	1,9	1,25

The LJMC audited financial statements 2013 shows that LJMC loss before taxes was LVL 218 029. The loss was planned because the company sells intensive investment policy to focus on the company's competitiveness and profitability in the future. In 2014 LJMC planned investment is expected to amount to EUR 430 000.

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.

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.

Proposal of the Management Board to cover the loss

The Management Board proposes LJMC 2013 loss to be covered by the previous year the accumulated profit.

Chairman of the Management Board Jānis Birks

Member of the Management Board Marta Aizsilniece

Member of the Management Board Andris Vigants

Rīga, 2014. gada 20. marts

LATVIJAS JŪRAS MEDICĪNAS CENTRS JSC STATEMENT OF MANAGEMENT'S RESPONSIBILITIES

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 Company and of its financial perfomance for the period ended 31 December 2013 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 Company 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 Marta Aizsilniece

Member of the Board Andris Vigants

Riga, 20 March, 2014.

7

LATVIJAS JŪRAS MEDICĪNAS CENTRS JSC STATEMENT OF FINANCIAL POSITION AS OF 31 DECEMBER 2013 AND 31 DECEMBER 2012

	December 31, 2013	December 31, 2012	Notes
ASSETS	LVL	IML
Long-term investments:
Intangible assets:
Concessions, patents, licenses, trademarks and similar rights	13,850	15,233	2
Total intangible assets	13,850	15,233
Fixed assets
Land and buildings	1,557,407	1,721,447
Technological equipment and machines	583,124	782,185
Other fixed assets and fixtures	46,140	38,152
Fixed assets add-ons (EU fonds)
Advance payments for fixed assets		3,322
Total fixed assets	2,186,671	2,545,106	2
Long-term financial assets
Investment in affiliates	202,739	200,982	3
Investment in associates	99,534	99,534	4
Total financial assets:	302,273	300,516
Total long-term investments:	2,502,794	2,860,855
Current assets:
Invetories
Raw materials	59,519	68,372	5
Advance payments for goods	130	275	6
Total Inventories	59,649	68,647
Debtors:
Trade receivables	115,425	77,594	7
Other receivables	21,530	6,677	8
Deffered expenditure	2,587	2,783	9
Total debtors	139,542	87,054
Cash funds	795.074	724,211	10
Total current assets	994,265	879,912
TOTAL ASSETS	3,497,059	3,740,767

LATVIJAS JŪRAS MEDICĪNAS CENTRS JSC ### STATEMENT OF FINANCIAL POSITION AS OF 31 DECEMBER 2013 AND 31 DECEMBER 2012

	December 31, 2013	December 31, 2012	Notes
LIABILITIES	LVL	LVL
Equity capital:
Share capital	800,000	800,000	### 11
Long-term financial assets revaluation reserve	555,674	653,160	###
Reserves:			###
Reserves provided by the Articles of Association	31,993	31,993	###
Retained earnings	1,327,135	1,419,669	### ###
Total shareholders' equity	2,714,802	2,904,822	###
Provisions for liabilities and charges:			### ###
Provisions for vacations	75,700	48,617	###
Deferred tax provisions	78,191	106,200	### 23
Total provisions	153,891	154,817	### ###
Long-term Liabilities:			###
Deferred income	352,510	385,929	### 12
Total Long-term Liabilities:	352,510	385,929	###
Short-term Liabilities:			### ###
Advance payments	4,064	12,840	### 13
Trade Payables	61,681	63,091	### 14
Deferred income	33,419	33,419	15
Taxes and social security payments	80,089	85,280	16 ###
Other payables	96,603	100,569	17 ###
Total Short-term Liabilities:	275,856	295,199	### ###
Total liabilities	628,366	681,128	###
TOTAL EQUITY, PROVISIONS AND LIABILITIES	3,497,059	3,740,767	### ###

D e c e m b e r

3 1 ,

2

LATVIJAS JŪRAS MEDICĪNAS CENTRS JSC COMPREHENSIVE INCOME STATEMENT FOR THE YEARS ENDED 31 DECEMBER 2013 AND 31 DECEMBER 2012

2013, 12 month period LVL	2012, 12 month period LVL	Notes
3,571,280	3,789,337	18
(3,590,720)	(3,606,777)	19
(19,440)	182,560	###
(322,581)	(332,944)	20
124,915	105,301	21
(923)	(4,552)	22
-	27	###
-	7,746	23
(218,029)	(41,862)
10,805	(12,075)	24
(207,224)	(53,937)
(207,224)	(53,937)
800,000	800,000
-0.26	-0.07
-7.6%	-1.9%

LATVIJAS JŪRAS MEDICĪNAS CENTRS JSC STATEMENT OF CHANGES IN EQUITY FOR THE YEARS ENDED 31 DECEMBER 2013 AND 31 DECEMBER 2012

	Share capital	Reserves provided by the Articles of Associatio n	Properties revaluation reserve	Undistribut ed profit	Total
	LVL	LVL	LVL	LVL	LVL
At 31 December 2011	800,000	31,993	750,642	1,358,921	2,941,556
Depriciation of revaluation surplus	-	-	(114,685)	114,685	-
Deffered tax on revaluation surplus	-	-	17,203	-	17,203
Total comprehensive income for the year	-	-	-	(53,937)	(53,937)
At 31 December 2012	800,000	31,993	653,160	1,419,669	2,904,822
Depriciation of revaluation surplus	-	-	(114,690)	114,690	-
Deffered tax on revaluation surplus	-	-	17,204	-	17,204
Total comprehensive income for the year	-	-	-	(207,224)	(207,224)
At 31 December 2013	800,000	31,993	555,674	1,327,135	2,714,802

LATVIJAS JŪRAS MEDICĪNAS CENTRS JSC STATEMENT OF CASH FLOWS FOR THE YEARS ENDED 31 DECEMBER 2013 AND 31 DECEMBER 2012

	2013	2012	NOTES
	LVL	LVL
Cash flows from operating activities
Net income before tax	(218,029)	(41,862)
Adjustments:
a) depreciation of fixed assets	475,692	481,630	2
b) provisions	27,083	(35,486)
c) loss (gain) on sale of fixed assets	(2,597)	409	21, 22
d) interest income	-	(27)
e) Deferred income	(33,419)	-	19
2. Changes in operating current assets and liabilities Corrections	248,730	404,664
a) receivables	(52,488)	78,609
b) inventory	8,998	(1,511)
c) current liabilities	(19,343)	(269,522)
3. Gross operating cash flow	185,897	212,240
4. Paid corporate income tax	-	(3,570)	12
5. Net cash used in operating activities	185,897	208,670
II. Cash flow used in investment activities
1. Purchase of shares of subsidiaries	(1,757)	-
2. Purchase of fixed assets	(117,743)	(492,864)	2
3. Income from sale of fixed assets	4,466	373
4. Received interest	-	27	20
5. Net cash from investment activities	(115,034)	(492,464)
III. Cash flows used in financing activities
1. Settlement of loans	-	157,350
2. Net cash from financing activities	-	157,350
IV. Net increase (decrease) in cash	70,863	(126,444)
V. Cash at the beginning of the period	724,211	850,655
VI. Cash at the end of the period	795,074	724,211

1. GENERAL INFORMATION

"Latvijas Juras Medicinas Centrs" is a joint-stock company (the Company) incorporated in the Republic of Latvia on 27 August 1996.

The Company's main activity is health care services.

2. ACCOUNTING PRINCIPLES

Basis of preparation of financial statements

The financial statements have been prepared in accordance with the International financial reporting standards adopted by the European Union. Enclosed financial statements are prepared in the national currency of Latvia, the lats (LVL).

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:

	December 31, 2013	December 31, 2012
EUR	0.702804	0.702804
USD	0.535	0.544

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

Cash includes cash on hand and demand deposits with credit institutions. The statement on cash flow is prepared using indirect method, making adjustments affecting the net profit reconciling with the changes in cash during the year.

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.

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
Revaluated part of the buildings	15 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

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.

2. TOTAL FIXED ASSETS AND OTHER INTANGIBLE ASSETS

As on 31 December 2013 and 31 December 2012

fixed and intangible assets are composed as follows:

LVL	Intangible assets	Land	Buildings and structures and perennial plants	Machinery and equipment	Other fixed assets	Fixed assets add-ons (EU fonds)	Advance payments for fixed assets	Total
Historical cost
At 31 December
2011	26,377	423,357	2,146,346	2,523,307	336,551	411,569	6,033	5,873,540
Additions	19,031	-	686,326	173,570	28,217	(411,569)	(2,711)	492,864
Transfers	-	-	-	-	-	-	-	-
Disposals	-	-	-	(31,347)	(13,193)	-	-	(44,540)
At 31 December
2012	45,408	423,357	2,832,672	2,665,530	351,575	-	3,322	6,321,864
Additions	7,975	-	19,172	61,224	32,694	-	(3,322)	117,743
Disposals or change
in classification	(2,753)	-	(1,301)	(138,400)	(30,088)	-	-	(172,542)
At 31 December
2013	50,630	423,357	2,850,543	2,588,354	354,181	-	-	6,267,065
Accumulated depreciation
At 31 December
2011	25,645	-	1,365,848	1,635,072	297,088	-	-	3,323,653
Charge for the year	4,530	-	54,049	279,620	28,746	-	-	366,945
Charge for the period for revaluated fixed
assets	-	-	114,685	-	-	-	-	114,685
Disposals	-	-	-	(31,347)	(12,411)	-	-	(43,758)
At 31 December
2012	30,175	-	1,534,582	1,883,345	313,423	-	-	3,761,525
Charge for the year	9,358	-	68,519	260,256	22,866	-	-	360,999
Charge for the period for revaluated fixed
assets	-	-	114,693	-	-	-	-	114,693
Disposals or change
in classification	(2,753)	-	(1,301)	(138,371)	(28,248)	-	-	(170,673)
At 31 December
2013	36,780	-	1,716,493	2,005,230	308,041	-	-	4,066,544
Net book value
At 31 December
2011	732	423,357	780,498	888,235	39,463	411,569	6,033	2,549,887
At 31 December 2012	15,233	423,357	1,298,090	782,185	38,152	-	3,322	2,560,339
At 31 December 2013	13,850	423,357	1,134,050	583,124	46,140	-	-	2,200,521

The balance value of the buildings excluding reevaluation adjustments as on 31-12-2013 is 402.054 EUR.

3. INVESTMENT IN AFFILIATES

"Juras medicIna" Ltd. - 100.00% Total	2013 LVL 202,739 202,739	2012 LVL 200,982 200,982
4. INVESTMENT IN ASSOCIATES
	2013	2012
	LVL	LVL
"Neirozu klinika" Ltd. - 45.32%	99,534	99,534
Total	99,534	99,534

5. RAW MATERIALS

	2013	2012
	LVL	LVL
Pharmaceutical	50,380	56,086
Medicine in departments	9,063	12,035
Other materials	76	251
Total	59,519	68,372

6. ADVANCE PAYMENTS FOR GOODS

	2013	2012
	LVL	LVL
Statoil Ltd.	130	275
Total	130	275
7. TRADE RECEIVABLES
	2013	2012
	LVL	LVL
Riga's health department	49,682	6,981
P.Stradiņa klīniskā universitātes slimnīca	17,567	17,475
Insurance BTA SE	7,340	20,606
Gjensidige Baltic	7,165	3,488
Compensa Life Vienna Insurance group	3,857	973
Ergo Latvija AAS	3,152	2,384
IF Latvija AAS	3,121	1,746
SEESAM Latvija	2,705	2,068
Skruvite GS	2,681	2,776
Balta AAS	1,638	478
Rīgas Pshiatrijas un Narkoloģijas centrs	1,230	-
Latvijas dzelzcels AS	1,210	1,210
Latvijas Universtate	733	2,932
Akrona 12	636	3,382
Olla M Ltd.	622	1,161
Ministry of Interior – health and social
department	610	848

7. TRADE RECEIVABLES(turpinājums)

	2013 LVL		2012 LVL
Balva AAS	559		724
Grinko Genadijs	500		1,000
Baltijas apdrosinasanas nams	464		1,134
Biogen Idec Ltd.	-		125
Other customers Bad debt provisions	15,547 (5,594)		8,879 (2,776)
Total	115,425		77,594
8. OTHER RECEIVABLES
	2013 LVL		2012 LVL
Short-term loan to Juras medicina Ltd. (annual
interest 5.3%)	10,368		-
Taxes overpaid (note No.15)	3,592		3,592
VAT for unpaid invoices Venden Ltd.	2,834 198		2,042 198
Advances to employees	41		90
Other receivables	4,497		755
Total	21,530		6,677
9. DEFFERED EXPENDITURE
	2013		2012
	LVL		LVL
Assurance	2,587		2,783
Total	2,587		2,783
10. CASH FUNDS
	2013		2012
	LVL		LVL
Cash in banks
Swedbank LVL Citadele bank LVL	642,260 45,264		571,279 18,060
Unibank Ridzenes branch LVL	33,031		23,726
Unibanka Ridzenes branch EUR	30,303		30,303
Swedbank Multi-currency Account	27,717		15,742
DNB Nord LVL	10,196		3,392
Swedbank Card	3,210		3,602
State cash LVL	11		51,697
Cash on hands	3,082		6,410
Total	795,074		724,211
11. SHARE CAPITAL	2013		2012
	Number of		Number of
Shareholders:	shares	Share %	shares	Share %
Ilze Birka	140,000	17.50%	140,000	17.50%
Martins Birks	140,000	17.50%	140,000	17.50%
Ilze Aizsilniece	91,565	11.45%	91,565	11.45%
Guna Shvarcberga	82,917	10.36%	82,917	10.36%
Janis Birks	69,317	8.66%	67,983	8.50%
Adomas Navickas	50,825	6.35%	39,508	4.94%
Other shareholders (shares less than 5%)	225,376	28.17%	238,027	29.75%
Total Share equity	800,000 800,000	100.00%	800,000 800,000	100.00%

12. DEFERRED INCOME

		2013		2012
		LVL		LVL
ERDF project reimbursement		352,510		385,929
Total		352,510		385,929
13. ADVANCE PAYMENTS
		2013		2012
		LVL		LVL
VEK advance payment (94)		2,930		2,930
Latvijas aptieka Ltd.		1,000		1,000
Nacionālais veselības centrs		-		8,767
Other advances for treatment of employees		134		143
Total		4,064		12,840
14. TRADE PAYABLES
		2013		2012
		LVL		LVL
MedilinkLtd.		10,493			-
Latvenergo Rigas elektrotikls		7,307		7,866
Sistēmu Audits Ltd.		6,050		4,232
Latvijas Gaze		3,483			-
Zītari Ltd		1,855		2,556
Rigas Udens		776		687
Academic histologic laboratory		226		107
Tradintek Ltd.		-		38,223
Other suppliers		31,491		9,420
Total		61,681		63,091
15. DEFERRED INCOME
		2013		2012
		LVL		LVL
ERDF project reimbursement		33,419		33,419
Total		33,419		33,419
16. TAXES AND SOCIAL SECURITY PAYMENTS
	As of 31- 12-12	Calculated	Paid	Returned	As of 31-12- 13
	LVL	LVL	LVL	LVL	LVL
Value added tax	976	22,582	(22,409)	-	1,149
Social insurance	53,619	618,000	(620,767)	-	50,852
Personal income tax	30,428	337,005	(340,033)	-	27,400
Corporate income tax	(3,588)	-	-		- (3,588)
Corporate vehicle transport tax	-	180	(180)	-	-
Unemployment duty	89	1,034	(1,041)	-	82
Natural resources tax	168	1,128	(690)	-	606

Real estate tax	(4)	3,699	(3,699)	-	(4)
Total, including	81,688	983,628	(988,819)	-	76,497
due to the budget	85,280				80,089
overpayment	(3,592)				(3,592)

17. OTHER PAYABLES

	2013	2012
	IVL	IVL
Salaries	95,606	99,587
Trade union	122	642
Deposited salary	875	340
Total	96,603	100,569
18. NET SALES
	2013	2012
	IVL	LVL
Medical ambulant services	2,315,734	2,392,942
Medical hospital services	639,399	695,142
Insurance payments	225,891	211,859
VS ZDC ambulant services	195.975	160,918
Inpatient Care	108,071	197,189
Stomatology services	37,131	45,349
Family doctors	22,397	27,801
Residents training	14,660	26,081
Ms registra uzturesana	9,238	9,238
Other income	2,784	22,818
Total	3,571,280	3,789,337

.....

19. COST OF GOODS SOLD

LVL 1,568,985 1,519,865 475,688 481,630 447,458 476,031 368,544 356,915 175.267 178.972
172,490 223,260
107,880 136,695
42,925 રુજે રહેતું રેતુર
28,122 23,802
27,083 (35,487)
22,236 26,952
19,614 18,035
18,278 21,748
27,116 17,880
7,952 6,639
6,682 6,453
5,000 5,000
4,576 12,545
4,378 3,434
4,181 3,397
3.699 3.699
2,818 (1,904)
2.068 6.751
1,038 1,035
900 1,200
499 રતેર
400
(10,292 ) (6,030)
51,105 62,100
3,590,720 3,606,777

......

20. ADMINISTRATIVE EXPENSES

	2015	2012
	LVL	LVL
Salaries and wages	173,737	182,855
Social tax	40,912	43,000
Board remuneration	25,483	21,113
Board chairperson remuneration	21,771	21,869
Council members remuneration	13,440	13,440
Communication expenses	8,298	10,669
Audit expenses	5,000	5,000
Council chairperson remuneration	5,760	5,760
Board members social tax	5,270	4,417
Chairperson of the Board social tax	5,245	5,268
Office expenses	4,750	5,745
Bank expenses Council members social tax	4,111	3,968
	2,894	2,906
Administrative expenses	1,981 1,388	1,919 1,388
Legal services	1,135	2,057
Presentation expenses Other administrative expenses	1,406
		1,570
Total	322,581	332,944
21. OTHER OPERATING INCOME
	2013	2012
	LVL	LVL
Rent income	67.345	51,055
ERAF income: fixed assets depreciation	33,419	20,392
Hotel services - food	10,795	12,337
Utilities for tenants	4,270	9,937
Net gain from sale of fixed assets	2,597
Laundry income	706	861
Solarium income	360	477
Other income	5,423	10,242
Total	124,915	105,301
22. OTHER OPERATING EXPENSES
	2013	2012
	LVL	LVL
Penalties	21	રેરતે
Loss from fixed assets disposals		409
Other expenses	902	3,784
Total	923	4,552
23. INTEREST INCOME AND SIMILAR INCOME
	2013	2012
	LVL	LVL
Interest income		27
Ieņēmumi no līdzdalības koncerna meitas un
asociēto sabiedrību kapitālos		7,746
Total		7,773
24. CORPORATE INCOME TAX
	2013	2012
	LVL	LVL
Calculated Corporate income tax
Deferred Corporate income tax	(10,805)	12,075
Total	(10,805)	12,075

24. CORPORATE INCOME TAX (CONTINUED ...)

	2013	2012
	LVL	LVL
Profit (loss) before tax	(218,029 )	(41,862 )
Theaoretically calculated corporate income tax,
rate 15%	(32,704 )	(6,279 )
Permanent differencies	5,323	5,323
Calculated corporate income tax	-	-
Deffered tax
Temporary difference between financial statement depreciation and depreciation for tax
purposes	(482,287 )	(377,274 )
Temporary difference of fixed assets
revaluation	(114,687 )	(379,345 )
Accruals for vacations	75,700	48,617
Total temporary differencies	(521,274 )	(708,002 )
Tax rate applied	15%	15%
Deferred tax liabilities	78,191	106,200
Recognized deferred tax liabilities	78,191	106,200

25 Transactions with related parties

In the Year 2013, there has been one transactions with the related party: loan for real estate tax payment (See Note 8).

26 Contingent laibilities

Management of the Company is not aware of any guarantees issued, court cases and other contingencies that could affect the Company's financial condition as on December 31, 2013.