Siguldas CMAS

Interim / Quarterly Report • Nov 24, 2011

Joint stock company SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA

INTERIM STATEMENT for 9 months of 2011

Index of Contents

Information on the Company	3
Profit or Loss Account	4
Balance sheet	5
Cash flow statement	7
Statement on changes in shareholders' equity	8
Notes to the Financial Statements	9
Report on Management Liability	22

Page

Information on the Company

Company's name	SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA
Company's legal status	Joint stock company
	40003013295, Riga, 26 July 1991
Registration number, place and date	Registration in the Commercial Register on 19 June 2004
Legal address	"Kalnabeites"8, Sigulda parish, Sigulda area, LV-2150
Shareholders holding more than 5% of the total number of voting shares	SIA "Siguldas mākslīgās apsēklošanas stacija" (49.8%), registration No. 40003311954
Members of the Board	Nils Ivars Feodorovs, Chairman of the Board Sarmīte Arcimoviča, Member of the Board Valda Mālniece, Member of the Board
Members of the Council	Inita Bedrīte, Chairman of the Council Maija Beča, Deputy Chairman of the Council Ērika Everte, Member of the Council Solvita Arcimoviča, Member of the Council Renia Beķere, Member of the Council until 27.04.2011 Jekaterina Kreise, Member of the Council from 27.04.2011
Reporting year	01.01.2011 – 30.09.2011
Auditors	Anita Sondore Sworn Auditor Certificate No. 129
	AUDITS A.S., SIA "Pīlādži", Līgatne parish, Līgatne area, LV-4108, Latvia

Sworn Auditors' Commercial Company's license No. 27

Profit or loss account for the period ended 30 September 2011

	Note	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Net sales	3	589 391	554 683	838 629	789 243
Changes in stock of ready-made goods and unfinished products	4	7 461	25 985	10 616	36 974
Other operating income	5	15 177	10 318	21 595	14 680
Costs of materials:		(254 460)	(213 130)	(362 064)	(303 256)
a) raw materials and auxiliary costs of materials		(200 281)	(166 717)	(284 975)	(237 217)
b) other external costs		(54 179)	(46 413)	(77 089)	(66 039)
Personnel costs:	6	(240 100)	(255 595)	(341 632)	(363 679)
a) salaries for work		(188 145)	(200 209)	(267 707)	(284 872)
b) state social insurance compulsory contributions		(44 472)	(47 302)	(63 278)	(67 304)
c) other social insurance costs		(7 483)	(8 084)	(10 647)	(11 503)
Write-off of assets and values:		(29 719)	(51 452)	(42 286)	(73 209)
a) depreciation of fixed assets and amortization of intangible assets		(29 719)	(51 452)	(42 286)	(73 209)
Other operating costs	7	(21 267)	(21 331)	(30 261)	(30 352)
Other interest income and similar income	8	3 112	5 041	4 427	7 173
Interest payments and similar costs	9	(2 784)	(2 506)	(3 961)	(3 566)
Profit or losses before taxes		66 811	52 013	95 063	74 008
Enterprise income tax for the reporting year		(9 682)	(7 675)	(13 776)	(10 921)
Other taxes	10	(1 111)	(1 107)	(1 581)	(1 575)
The profit or loss for the year		56 018	43 231	79 706	61 512
Equity per 1 share (EPS)	22	0.133	0.102	0.189	0.146

Notes on pages 9 to 21 form an integral part of these financial statements.

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece

Chairman of the Board Member of the Board Member of the Board

Balance sheet as at 30 September 2011

Assets	Note	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Long-term investments
Intangible assets
Concessions, patents, licenses, trade marks and similar rights		-	-	-	-
Intangible assets total	11	-	-	-	-
Fixed assets
Land parcels, buildings and constructions and perennial plantings		128 724	145 252	183 158	206 675
Equipment and machinery		67 560	29 721	96 129	42 289
Other fixed assets and inventory		6 814	12 190	9 696	17 344
Fixed assets total	12	203 098	187 163	288 983	266 308
Investment properties	13	95 000	120 000	135 173	170 745
Biological assets		53 377	48 166	75 948	68 535
Long-term financial investments
Investments in capital of associated
companies	14	47 372	47 062	67 404	66 963
Other securities and investments	15	480	480	683	683
Long-term financial investments total		47 852	47 542	68 087	67 646
Long-term investments total		399 327	402 871	568 191	573 234
Current assets
Stock
Raw materials, basic materials and auxiliary materials		10 656	12 467	15 163	17 738
Ready-made goods and goods for sale	16	324 913	315 327	462 310	448 670
Prepayments for goods		197	733	280	1 043
Stock total		335 766	328 527	477 753	467 451
Receivables
Trade receivables	17	99 793	119 764	141 993	170 409
Other receivables	18	1 802	6 195	2 564	8 814
Prepaid expenses	19	2 687	3 329	3 823	4 737
Receivables total		104 282	129 288	148 380	183 960
Short-term financial investments
Other securities and shareholding in capitals	20	21 643	21 526	30 795	30 629
Short-term financial investments total		21 643	21 526	30 795	30 629
Cash	21	138 971	134 022	197 738	190 696
Current assets total		600 662	613 363	854 666	872 736
Assets total		999 989	1 016 234	1 422 857	1 445 970

Balance sheet as at 30 September 2011

Shareholders' equity and liabilities	Note	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Shareholders' equity
Share capital	22	422 440	422 440	601 078	601 078
Retained earnings:
Retained earnings carried forward from
previous years		451 471	454 939	642 386	647 320
Retained earnings of the reporting year		56 018	43 231	79 706	61 512
Shareholders' equity total		929 929	920 610	1 323 170	1 309 910
Payables
Long-term payables
Deferred tax liabilities	23	1 318	5 712	1 875	8 127
Long-term payables total		1 318	5 712	1 875	8 127
Short-term payables
Prepayment received from customers		613	4 146	872	5 898
Trade payables		29 104	29 812	41 412	42 419
Taxes and social insurance payments	24	13 092	24 180	18 629	34 405
Other payables		9 025	9 974	12 841	14 192
Accrued liabilities	25	16 908	21 800	24 058	31 019
Short-term payables total		68 742	89 912	97 812	127 933
Payables total		70 060	95 624	99 687	136 060
Shareholders' equity and liabilities total		999 989	1 016 234	1 422 857	1 445 970

Notes on pages 9 to 21 form an integral part of these financial statements.

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

Cash flow statement for the period ended 30 September 2011

	Note	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Cash flow from operating activities
Income from sale of goods and provision of services		720 305	651 762	1 024 902	927 373
Payments to suppliers, employees, other expenses arising from basic operations		(668 856)	(609 334)	(951 696)	(867 004)
Other Company's basic income or expenses		4 976	11 748	7 080	16 716
Gross cash flow from basic operations		56 425	54 176	80 286	77 085
Expenses for tax payments		(12 141)	(6 407)	(17 275)	(9 116)
Net cash flow from operating activities		44 284	47 769	63 011	67 969
Cash flow from investing activities
Purchase of fixed assets and intangible investments		(75 167)	(4 809)	(106 953)	(6 843)
Purchase of capital shares of other company		-	(44 062)	-	(62 694)
Dividends received		1 593	1 360	2 267	1 935
Net cash flow from investing activities		(73 574)	(47 511)	(104 686)	(67 602)
Cash flow from financing activities
Dividends paid		(38 020)	(33 795)	(54 098)	(48 086)
Net cash flow from financing activities		(38 020)	(33 795)	(54 098)	(48 086)
Result of foreign exchange rate fluctuations		(1 939)	(557)	(2 759)	(793)
Increase/ decrease of cash and its
equivalents		(69 249)	(34 094)	(98 532)	(48 512)
Cash and its equivalents at the beginning of the period		208 220	168 116	296 270	239 208
Cash and its equivalents at the end of the period	21	138 971	134 022	197 738	190 696

Notes on pages 9 to 21 form an integral part of these financial statements.

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

Statement on changes in shareholders' equity for the period ending 30 September 2011

	Share capital	Retained earnings	Retained earnings for the reporting	Shareholders' equity total
	LVL	LVL	year LVL	LVL
31.12.2009	422 440	359 638	129 096	911 174
Profit for 2009 transferred to retained earnings of previous years	-	129 096	(129 096)	-
Dividends for 2009	-	(33 795)	-	(33 795)
Retained earnings for the reporting year	-	-	43 231	43 231
30.09.2010	422 440	454 939	43 231	920 610
31.12.2010	422 440	454 939	34 552	911 931
Profit for 2010 transferred to retained earnings of previous years Dividends for 2010	- -	34 552 (38 020)	(34 552) -	- (38 020)
Retained earnings for the reporting year	-	-	56 018	56 018
30.09.2011	422 440	451 471	56 018	929 929

	Share capital	Retained earnings	Retained earnings for the reporting	Shareholders' equity total
	EUR	EUR	year EUR	EUR
31.12.2009	601 078	511 719	183 687	1 296 484
Profit for 2009 transferred to retained earnings of
previous years	-	183 687	(183 687)	-
Dividends for 2009	-	(48 086)	-	(48 086)
Retained earnings for the reporting year	-	-	61 512	61 512
30.09.2010	601 078	647 320	61 512	1 309 910
31.12.2010	601 078	647 320	49 164	1 297 562
Profit for 2010 transferred to retained earnings of
previous years	-	49 164	(49 164)	-
Dividends for 2010	-	(54 098)	-	(54 098)
Retained earnings for the reporting year	-	-	79 706	79 706
30.09.2011	601 078	642 386	79 706	1 323 170

Notes on pages 9 to 21 form an integral part of these financial statements.

Chairman of the Board Member of the Board Member of the Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece

(1) General information on the Company

AS "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,
• inspection of immune-genetic origin of cattle,
• 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 9 months from 1 January to 30 September 2011.

Revaluation of foreign currencies

The Company's functional currency and the currency used in the Financial Statements is the Republic of Latvia national currency Lat (LVL). All transactions in foreign currencies are translated to Lats according to the exchange rate set by the Central Bank of Latvia on the day of making the respective transaction.

Monetary assets and liabilities, which are expressed in foreign currency, are translated to Lats to the exchange rate set by the Central Bank of Latvia on the last day of the reporting year.

	30.09.2011	30.09.2010
EUR	0.702804	0.702804
USD	0.516	0.517

Currency exchange rate differences arising from settlements in currencies or when recognizing assets and liabilities y 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	20 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 highquality 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	2011	2010	2011	2010
	LVL	LVL	EUR	EUR
Livestock sperm	298 473	281 168	424 689	400 066
Milk laboratory services	146 258	142 621	208 107	202 932
Treatment of supervisory data	55 987	50 678	79 662	72 108
Inspection of cows	16 232	19 201	23 096	27 321
Artificial insemination of livestock	18 680	17 384	26 580	24 735
Immune-genetic laboratory services	8 038	8 589	11 437	12 221
Other income	45 723	35 042	65 058	49 860
	589 391	554 683	838 629	789 243

Distribution of net sales according to the geographical markets:

	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Latvia	589 391	554 683	838 629	789 243
	589 391	554 683	838 629	789 243

Earnings from agricultural activities represented in net sales:

	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Earnings from agricultural activities	589 391	554 683	838 629	789 243
	589 391	554 683	838 629	789 243

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

	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Changes in sperm stock value	1 054	18 548	1 499	26 391
Changes in stud bull herd value	6 407	7 437	9 117	10 583
	7 461	25 985	10 616	36 974
(5) Other operating income
	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Revenue from exclusion of fixed assets	6 596	-	9 385	-
State support for agricultural	4 976	10 318	7 081	14 680
Insurance reimbursement	3 605	-	5 129	-
	15 177	10 318	21 595	14 680

(6) Personnel costs

	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Salaries for work	188 145	200 209	267 707	284 872
State social insurance contributions	44 472	47 302	63 278	67 304
Health insurance	5 910	7 176	8 409	10 211
Other costs	1 573	908	2 238	1 292
	240 100	255 595	341 632	363 679

(7) Other operating expenses

	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Insurance payments	1 190	599	1 694	852
Business trip expenses	1 379	1 367	1 963	1 946
Selling expenses	1 742	1 541	2 478	2 193
Company's management and administrative
expenses	12 064	13 216	17 165	18 804
Other costs	4 892	4 608	6 961	6 557
	21 267	21 331	30 261	30 352

(8) Other interest income and similar income

	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Income from shareholding in the company
capitals	1 593	1 360	2 266	1 935
Income from securities	91	426	129	606
Interest income	-	1 431	-	2 036
Contractual penalties from clients	-	137	-	195
Recovered doubtful and bad debts	1 428	1 396	2 032	1 987
Other income	-	291	-	414
	3 112	5 041	4 427	7 173

(9) Interest payments and similar costs

	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Losses from foreign currency exchange rate
fluctuations	1 030	1 149	1 466	1 635
Contractual penalties and fines	10	-	14	-
Employees' leisure and other costs not connected
with operating activities	1 348	1 346	1 918	1 915
Other costs	396	11	563	16
	2 784	2 506	3 961	3 566

(10) Other taxes

	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Real estate tax	1 111	1 107	1 581	1 575
	1 111	1 107	1 581	1 575

(11) Intangible assets

	Concessions, patents, licenses, trade marks and similar rights	Total	Concessions, patents, licenses, trade marks and similar rights	Total
	LVL	LVL	EUR	EUR
Initial value
31.12.2010	720	720	1 024	1 024
Purchased	-	-	-	-
Disposed	-	-	-	-
30.09.2011	720	720	1 024	1 024
Accrued depreciation
31.12.2010	718	718	1 022	1 022
Calculated depreciation	-	-	-	-
Depreciation of excluded investments	-	-	-	-
30.09.2011	720	720	1 024	1 024
Book value as at 31.12.2010	-	-	-	-
Book value as at 30.09.2011	-	-	-	-

(12) Report on movement of fixed assets

	Land, buildings and constructions	Technological equipment and machinery	Other fixed assets
	LVL	LVL	LVL	LVL
Initial value
31.12.2010	255 107	359 809	85 905	700 821
Purchased	-	74 661	505	75 166
Disposed	-	(51 295)	(2 047)	(53 342)
30.09.2011	255 107	383 175	84 363	722 645
Accrued depreciation
31.12.2010	114 061	338 537	75 042	527 640
Calculated depreciation	12 322	12 843	4 554	29 719
Depreciation of excluded fixed
assets	-	(35 765)	(2 047)	(37 812)
30.09.2011	126 383	315 615	77 549	519 547
Book value as at 31.12.2010	141 046	21 272	10 863	173 181
Book value as at 30.09.2011	128 724	67 560	6 814	203 098

As at 30 September 2010, the cadastral value of real estate – land and constructions - was LVL 113 994 As at 30 September 2011, the cadastral value of real estate – land and constructions - was LVL 113 853

	Land, buildings and constructions	Technological equipment and machinery	Other fixed assets	Total
	EUR	EUR	EUR	EUR
Initial value
31.12.2010	362 985	511 962	122 232	997 179
Purchased	-	106 233	718	106 951
Disposed	-	(72 986)	(2 913)	(75 899)
30.09.2011	362 985	545 209	120 037	1 028 231
Accrued depreciation
31.12.2010	162 294	481 695	106 776	750 765
Calculated depreciation	17 533	18 275	6 478	42 286
Depreciation of excluded fixed
assets	-	(50 890)	(2 913)	(53 803)
30.09.2011	179 827	449 080	110 341	739 248
Book value as at 31.12.2010	200 691	30 267	15 456	246 414
Book value as at 30.09.2011	183 158	96 129	9 696	288 983

As at 30 September 2010, the cadastral value of real estate – land and constructions - was EUR 162 199 As at 30 September 2011, the cadastral value of real estate – land and constructions - was EUR 161 998

(13) Investment properties

	Land	Total	Land	Total
	LVL	LVL	EUR	EUR
Book value as at 31.12.2009	120 000	120 000	170 745	170 745
Increase/decrease of value due to revaluation	-	-	-	-
Book value as at 30.09.2010	120 000	120 000	170 745	170 745
Book value as at 31.12.2010	95 000	95 000	135 173	135 173
Increase/decrease of value due to revaluation	-	-	-	-
Book value as at 30.09.2011	95 000	95 000	135 173	135 173

(14) Investments in capital of associated companies

	2011				2010
	% from total share capital	LVL	EUR	% from total share capital	LVL	EUR
Ltd "Animal Breeders Association of Latvia" (SIA "Latvijas šķirnes dzīvnieku audzētāju savienība" )
Legal address: Republikas laukums 2, Rīga,
LV-1010, Latvia	26.6	47 372	67 404	26.3	47 062	66 963
		47 372	67 404		47 062	66 963

(15) Other securities and investments

	LVL	EUR
Purchase value as at 30.09.2010	480	683
Book value as at 30.09.2010	480	683
Purchase value as at 30.09.2011	480	683
Book value as at 30.09.2011	480	683

(16) Ready-made products and goods for sale

	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Bull semen	317 859	307 992	452 273	438 233
Other goods for sale	7 054	7 335	10 037	10 437
	324 913	315 327	462 310	448 670

(17) Trade receivables

	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Accounting value of trade receivables	105 358	122 343	149 911	174 079
Provisions for doubtful trade receivables	(5 565)	(2 579)	(7 918)	(3 670)
	99 793	119 764	141 993	170 409

(18) Other receivables

	2011 LVL	2010 LVL	2011 EUR	2010 EUR
VAT for received goods and services	926	828	1 318	1 178
Overpayment of taxes	-	4 315	-	6 139
Other receivables	876	1 052	1 246	1 497
	1 802	6 195	2 564	8 814

(19) Prepaid expenses

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

	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Advertising costs	47	102	67	145
Insurance	2 390	2 758	3 401	3 925
Press subscription	10	24	14	34
Other prepaid expenses	240	445	341	633
	2 687	3 329	3 823	4 737

(20) Other securities and shareholding in capitals

		2011			2010
	Number	Market	Amount	Number	Market	Amount
		price	LVL		price	LVL
SEB Lats reserve fund	15 044	1.43863	21 643	15 044	1.43086	21 526
			21 643			21 526
		2011			2010
	Number	Market	Amount	Number	Market	Amount
		price	EUR		price	EUR
SEB Lats reserve fund	15 044	2.04699	30 795	15 044	2.03593	30 629
			30 795			30 629

Money market fund shares have no guaranteed interest rate. In 2011, the profitability was about 0.56 %. Exclusion of money market fund shares is carried out at the Company's request.

(21) Cash in LVL and foreign currencies according to the LCB exchange rate

Break-down of cash according to currencies:		2011		2010
		Currency	LVL	Currency	LVL
Cash in hand	LVL	-	6 911	-	8 326
Cash in bank	LVL	-	131 043	-	123 911
Cash in bank	EUR	1 447	1 017	2 540	1 785
			138 971		134 022

Break-down of cash according to currencies:	2011			2010
		Currency	EUR	Currency	EUR
Cash in hand	LVL	6 911	9 834	8 326	11 847
Cash in bank	LVL	131 043	186 457	123 911	176 309
Cash in bank	EUR	-	1 447	-	2 540
			197 738		190 696

(22) Share capital

The Company's shares are quoted on NASDAQ OMX Riga Stock Exchange's second listing. The Company's share capital consists of shareholders' investments. The total number of shares is 422 440, the nominal value per share is 1 Lat.

	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Ordinary common shares with voting rights	421 440	421 440	599 655	599 655
Shares owned by the Board without voting rights	1 000	1 000	1 423	1 423
	422 440	422 440	601 078	601 078

421440 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.

1000 shares or 0.2% 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.

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.

	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Profit of the reporting period Average weighted number of shares during the	56 018	43 231	79 706	61 512
year	422 440	422 440	422 440	422 440
	0.133	0.102	0.189	0.146

(23) Provisions for deferred tax

	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Temporary differences in fixed assets
depreciation	25 694	59 881	36 559	85 203
Provisions for vacations	(16 908)	(21 800)	(24 058)	(31 019)
Total temporary differences	8 786	38 081	12 501	54 184
Deferred tax provisions at the beginning of
the period	1 318	5 712	1 875	8 127
Increase or decrease	-	-	-	-
Deferred tax provisions at the end of the period	1 318	5 712	1 875	8 127

(24) Taxes and social insurance payments

Tax type	Balance as at	Calculated in	Paid in	Balance as at
	31.12.2010	2011	2011	30.09.2011
	LVL	LVL	LVL	LVL
Corporate income tax	1 348	9 682	(11 030)	-
Value added tax	9 321	76 155	(83 266)	2 210
Social insurance contributions	9 414	66 179	(68 714)	6 879
Personal income tax	6 482	38 180	(40 703)	3 959
Real estate tax	-	1 111	(1 111)	-
Nature resource tax	28	90	(84)	34
Business risk duty	11	88	(89)	10
	26 604	191 485	(204 997)	13 092
Including:	2010			2011
	LVL			LVL
Tax overpaid	-			-
Tax due	26 604			13 092
Tax type	Balance as at	Calculated in	Paid in	Balance as at
	31.12.2010	2011	2011	30.09.2011
	EUR	EUR	EUR	EUR
Corporate income tax	1 918	13 776	(15 694)	-
Value added tax	13 262	108 359	(118 476)	3 145
Social insurance contributions	13 395	94 164	(97 771)	9 788
Personal income tax	9 223	54 325	(57 915)	5 633
Real estate tax	-	1 581	(1 581)	-
Nature resource tax	40	128	(119)	49
Business risk duty	16	125	(127)	14
	37 854	272 458	(291 683)	18 629
Including:	2010			2011
	EUR			EUR
Tax overpaid	-			-
Tax due	37 854			18 629
Tax overpaid declared in position "Other receivables"

(25) Accrued liabilities

	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Vacation reserve	16 908	21 800	24 058	31 019
	16 908	21 800	24 058	31 019

(26) Number of persons employed by the Company

	2011	2010
Average number of persons employed during the reporting year	38	42

(27) Information on remuneration to Council, Board and Managements Members

	2011 LVL	2010 LVL	2011 EUR	2010 EUR
Council Members' salaries for work, including
state social insurance contributions Board Members' salaries for work, including	5 282	4 941	7 516	7 030
state social insurance contributions	22 184	22 319	31 565	31 757
Total remuneration to management members	27 466	27 260	39 081	38 787

There are no special regulations worked out, which would regulate election of Board Members, changes in the composition of the Board and amending of the Articles of Association.

All Board Members have equal Company's representation rights. The Chairman of the Board represents the Company separately, but other Board Members can represent the Company only both together.

There is no agreement signed between the Company and the Board Members, which provides any compensation.

Report on Management Liability

According to the information being at our disposal, the Interim Financial statement for nine months of 2011 have 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 Financial statement for nine months of 2011 have not been audited by Sworn Auditor.

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece

Chairman of the Board Member of the Board, Head of Production and Marketing Department

Member of the Board, Head of Financial and Accounting Department