Siguldas CMAS

Annual / Quarterly Financial Statement • Mar 28, 2011

Joint stock company SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA

ANNUAL REPORT for 2010

Index of Contents

	Page
Information on the Company	3
Management Report	4
Profit or Loss Account	5
Balance sheet	6
Cash flow statement	8
Statement on changes in shareholders' equity	9
Notes to the Financial Statements	10
Auditor's Report	24
Report on Management Liability	25

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, holding 400 shares Sarmīte Arcimoviča, Member of the Board, holding 3 824 shares Valda Mālniece, Member of the Board, holding 14 260 shares
Members of the Council	Inita Bedrīte, Chairman of the Council, holding 1 084 shares Maija Beča, Deputy Chairman of the Council, holding 3 066 shares Ērika Everte, Member of the Council, holding 2 208 shares Solvita Arcimoviča, Member of the Council, holding 430 shares Renia Beķere, Member of the Council, holding 4 136 shares
Reporting year	01.01.2010 – 31.12.2010
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

Management Report

Type of Operations

JSC "Siguldas ciltslietu un mākslīgās apsēklošanas stacija" (hereinafter referred to as the Company) is one of the largest high-quality breeding animals' semen producers and suppliers in Latvia. The second largest Company's basic area of business is making of milk analyses. In addition, the Company performs other related services – evaluation of cow exterior, artificial insemination of cows, immune-genetic investigation of origin for cattle, milk recording data processing.

Brief Description of Company's Activities in the Reporting Year and Financial Condition

The Company's turnover in 2010 was 751 thous. lats (1 068 thous. euro), which is by 35 thous (50 thous. euro). lats or 4.9% more than in 2009. The increase of net turnover was mainly due to the sales growth.

Compared to 2009, the profit before taxes for the year of account has decreased by 90 thous. lats (129 thous. euro) comprising 45 thous. lats (63 thous. euro). The major share of the profit in 2009 (104 thous. lats (148 thous. euro)) was from the increase of value of investment properties after revaluation. Accordingly the revaluation created 25 thous. lats (36 thous. euro) loss in 2010.

The Company's commercial profitability in 2010 was 5.9% comprising a decrease of 13.0% points against the 2009 year's profitability.

Future Prospects and Further Development

By increasing the Company's operational efficiency, the Company will continue to work in order to expand the scope of its products and the range of provided services.

Post-balance Sheet Events

During the time after the closing of the balance sheet and the day of signing this Report there were no major events or extraordinary conditions, which influence the result for the year and the Company's financial condition.

Branches and representative offices abroad

The Company has no branches, nor representative offices abroad.

Proposals regarding the use of the Company's profit or losses

The Board has a proposal to pay dividends from the profit for the year in the amount of 33 795 lats (48 086 euro), which is 0.08 lats (0.11 euro) per share.

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

Profit or loss account for the period ended 31 December 2010

	Note	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Net sales	3	750 571	715 477	1 067 967	1 018 032
Changes in stock of ready-made goods and unfinished products	4	30 116	27 110	42 852	38 574
Other operating income	5	11 931	5 944	16 976	8 458
Costs of materials:		(287 708)	(258 985)	(409 372)	(368 503)
a) raw materials and auxiliary costs of materials		(221 974)	(192 852)	(315 842)	(274 404)
b) other external costs		(65 734)	(66 133)	(93 530)	(94 099)
Personnel costs:	6	(332 609)	(342 759)	(473 261)	(487 703)
a) salaries for work		(261 749)	(268 228)	(372 436)	(381 655)
b) state social insurance compulsory contributions		(62 467)	(64 181)	(88 882)	(91 321)
c) other social insurance costs		(8 393)	(10 350)	(11 943)	(14 727)
Write-off of assets and values:		(72 824)	(81 068)	(103 619)	(115 348)
a) depreciation of fixed assets and amortization of intangible assets		(65 725)	(69 578)	(93 518)	(99 000)
b) write-off of value of current assets above the normal deductions		(7 099)	(11 490)	(10 101)	(16 348)
Other operating costs	7	(27 121)	(30 931)	(38 589)	(44 012)
Other interest income and similar income	8	5 134	108 927	7 305	154 989
Interest payments and similar costs	9	(32 887)	(8 569)	(46 794)	(12 193)
Profit or losses before taxes		44 603	135 146	63 465	192 294
Enterprise income tax for the reporting year		(13 338)	(9 208)	(18 978)	(13 102)
Deferred tax	23	4 394	4 249	6 252	6 047
Other taxes	10	(1 107)	(1 091)	(1 575)	(1 552)
The profit or loss for the year		34 552	129 096	49 164	183 687
Equity per 1 share (EPS)	22	0.082	0.306	0.116	0.435

Notes on pages 10 to 23 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 31 December 2010

Assets	Note	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Long-term investments
Intangible assets
Concessions, patents, licenses, trade marks and similar rights		-	2	-	2
Intangible assets total	11	-	2	-	2
Fixed assets
Land parcels, buildings and constructions and perennial plantings		141 046	155 767	200 691	221 637
Equipment and machinery		21 272	62 059	30 267	88 302
Other fixed assets and inventory		10 863	15 509	15 456	22 067
Fixed assets total	12	173 181	233 335	246 414	332 006
Investment properties	13	95 000	120 000	135 173	170 745
Biological assets		46 969	40 729	66 831	57 952
Long-term financial investments
Investments in capital of associated
companies	14	47 372	3 000	67 404	4 269
Other securities and investments	15	480	480	683	683
Long-term financial investments total		47 852	3 480	68 087	4 952
Long-term investments total		363 002	397 546	516 505	565 657
Current assets
Stock
Raw materials, basic materials and auxiliary materials		12 874	11 773	18 318	16 752
Ready-made goods and goods for sale	16	311 642	299 798	443 426	426 574
Prepayments for goods		2 000	397	2 846	565
Stock total		326 516	311 968	464 590	443 891
Receivables
Trade receivables	17	67 924	82 704	96 647	117 677
Other receivables	18	1 877	8 194	2 671	11 659
Prepaid expenses	19	5 561	6 072	7 913	8 639
Receivables total		75 362	96 970	107 231	137 975
Short-term financial investments
Other securities and shareholding in
capitals	20	21 552	21 100	30 666	30 023
Short-term financial investments total		21 552	21 100	30 666	30 023
Cash	21	208 220	168 116	296 270	239 208
Current assets total		631 650	598 154	898 757	851 097
Assets total		994 652	995 700	1 415 262	1 416 754

Balance sheet as at 31 December 2010

Shareholders' equity and liabilities	Note	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Shareholders' equity
Share capital	22	422 440	422 440	601 078	601 078
Retained earnings:
Retained earnings carried forward from previous years		454 939	359 638	647 320	511 719
Retained earnings of the reporting year		34 552	129 096	49 164	183 687
Shareholders' equity total		911 931	911 174	1 297 562	1 296 484
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		6 238	421	8 876	599
Trade payables		19 374	30 887	27 566	43 949
Taxes and social insurance payments	24	26 604	15 505	37 854	22 062
Other payables		12 279	10 201	17 471	14 514
Accrued liabilities	25	16 908	21 800	24 058	31 019
Short-term payables total		81 403	78 814	115 825	112 143
Payables total		82 721	84 526	117 700	120 270
Shareholders' equity and liabilities total		994 652	995 700	1 415 262	1 416 754

Notes on pages 10 to 23 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 31 December 2010

	Note	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Cash flow from operating activities
Income from sale of goods and provision of services		936 767	853 290	1 332 899	1 214 122
Payments to suppliers, employees, other expenses arising from basic operations		(820 735)	(790 627)	(1 167 801)	(1 124 961)
Other Company's basic income or expenses		13 361	9 449	19 011	13 445
Gross cash flow from basic operations		129 393	72 112	184 109	102 606
Expenses for tax payments		(6 407)	(14 163)	(9 116)	(20 152)
Net cash flow from operating activities		122 986	57 949	174 993	82 454
Cash flow from investing activities
Purchase of fixed assets and intangible investments		(5 101)	(12 611)	(7 258)	(17 944)
Purchase of capital shares of other company		(44 371)	-	(63 134)	-
Dividends received		1 360	440	1 935	626
Purchase of securities		-	(15 000)	-	(21 343)
Net cash flow from investing activities		(48 112)	(27 171)	(68 457)	(38 661)
Cash flow from financing activities
Dividends paid		(33 795)	(33 795)	(48 086)	(48 086)
Net cash flow from financing activities		(33 795)	(33 795)	(48 086)	(48 086)
Result of foreign exchange rate fluctuations		(975)	(592)	(1 388)	(841)
Increase/ decrease of cash and its equivalents		40 104	(3 609)	57 062	(5 134)
Cash and its equivalents at the beginning of the period		168 116	171 725	239 208	244 342
Cash and its equivalents at the end of the period	21	208 220	168 116	296 270	239 208

Notes on pages 10 to 23 form an integral part of these financial statements.

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

28 March 2011

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece

Statement on changes in shareholders' equity for the period ending 31 December 2010

	Share capital	Retained earnings	Retained earnings for the reporting	Shareholders' equity total
	LVL	LVL	year LVL	LVL
31.12.2008	422 440	310 555	82 878	815 873
Profit for 2008 transferred to retained earnings of
previous years	-	82 878	(82 878)	-
Dividends for 2008	-	(33 795)	-	(33 795)
Retained earnings for the reporting year	-	-	129 096	129 096
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	-	-	34 552	34 552
31.12.2010	422 440	454 939	34 552	911 931

	Share capital	Retained earnings	Retained earnings for the reporting year	Shareholders' equity total
	EUR	EUR	EUR	EUR
31.12.2008	601 078	441 880	117 925	1 160 883
Profit for 2008 transferred to retained earnings of previous years	-	117 925	(117 925)	-
Dividends for 2008	-	(48 086)	-	(48 086)
Retained earnings for the reporting year	-	-	183 687	183 687
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	-	-	49 164	49 164
31.12.2010	601 078	647 320	49 164	1 297 562

Notes on pages 10 to 23 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

(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 and the obligatory applicable Latvian Accounting Standards. 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 12 months from 1 January to 31 December 2010.

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.

	31.12.2010	31.12.2009
EUR	0.702804	0.702804
USD	0.535	0.489

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	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Livestock sperm	372 924	360 943	530 623	513 576
Milk laboratory services	192 119	192 912	273 361	274 489
Treatment of supervisory data	67 490	55 561	96 030	79 056
Inspection of cows	26 089	29 409	37 121	41 845
Artificial insemination of livestock	24 123	22 962	34 324	32 672
Immune-genetic laboratory services	13 737	6 771	19 546	9 634
Other income	54 089	46 919	76 962	66 760
	750 571	715 477	1 067 967	1 018 032

Distribution of net sales according to the geographical markets:

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Latvia	750 571	714 982	1 067 967	1 017 327
Estonia	-	495	-	705
	750 571	715 477	1 067 967	1 018 032

Earnings from agricultural activities represented in net sales:

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Earnings from agricultural activities	750 571	715 477	1 067 967	1 018 032
	750 571	715 477	1 067 967	1 018 032

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

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Changes in sperm stock value	24 126	41 179	34 329	58 592
Written-off sperm	(250)	(12 094)	(356)	(17 208)
Changes in stud bull herd value	6 240	(1 975)	8 879	(2 810)
	30 116	27 110	42 852	38 574
(5) Other operating income
	2010 LVL	2009 LVL	2010 EUR	2009 EUR
State support for agricultural	11 931	5 944	16 976	8 458
	11 931	5 944	16 976	8 458

(6) Personnel costs

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Salaries for work	265 636	268 502	377 966	382 044
State social insurance contributions	63 473	64 216	90 313	91 371
Changes in provisions for vacation reserve	(4 893)	(309)	(6 961)	(439)
Health insurance	7 176	7 327	10 211	10 425
Other costs	1 217	3 023	1 732	4 302
	332 609	342 759	473 261	487 703

(7) Other operating expenses

	2010	2009	2010	2009
	LVL	LVL	EUR	EUR
Insurance payments	745	1 195	1 060	1 701
Business trip expenses	1 367	785	1 946	1 117
Selling expenses	2 119	4 365	3 015	6 211
Company's management and administrative
expenses	15 869	17 703	22 579	25 189
Audit of the financial statement	1 500	1 500	2 134	2 134
Other costs	5 521	5 383	7 855	7 660
	27 121	30 931	38 589	44 012

(8) Other interest income and similar income

	2010 LVL	2009	2010 EUR	2009 EUR
		LVL
Income from shareholding in the company capitals	1 360	440	1 935	626
Income from securities	452	1 074	643	1 529
Income from investment property revaluation	-	103 755	-	147 631
Interest income	1 431	3 505	2 036	4 987
Contractual penalties from clients	137	132	195	187
Recovered doubtful and bad debts	1 463	15	2 082	21
Other income	291	6	414	8
	5 134	108 927	7 305	154 989

(9) Interest payments and similar costs

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Losses from foreign currency exchange rate
fluctuations	1 342	680	1 909	968
Losses from investment property revaluation	25 000	-	35 572	-
Contractual penalties and fines	11	-	16	-
Employees' leisure and other costs not connected
with operating activities	6 534	7 889	9 297	11 225
	32 887	8 569	46 794	12 193

(10) Other taxes

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Real estate tax	1 107	1 091	1 575	1 552
	1 107	1 091	1 575	1 552

(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
31.12.2009	720	720	1 024	1 024
Purchased	-	-	-	-
Disposed	-	-	-	-
31.12.2010	720	720	1 024	1 024
Accrued depreciation
31.12.2009	718	718	1 022	1 022
Calculated depreciation	2	2	2	2
Depreciation of excluded investments	-	-	-	-
31.12.2010	720	720	1 024	1 024
Book value as at 31.12.2009	2	2	2	2
Book value as at 31.12.2010	-	-	-	-

(12) Report on movement of fixed assets

	Land, buildings and constructions	Technological equipment and machinery	Other fixed assets	Total
	LVL	LVL	LVL	LVL
Initial value
31.12.2009	255 107	357 311	85 951	698 369
Purchased	-	2 498	3 071	5 569
Disposed	-	-	(3 117)	(3 117)
31.12.2010	255 107	359 809	85 905	700 821
Accrued depreciation
31.12.2009	99 340	295 252	70 442	465 034
Calculated depreciation	14 721	43 285	7 717	65 723
Depreciation of excluded fixed
assets	-	-	(3 117)	(3 117)
31.12.2010	114 061	338 537	75 042	527 640
Book value as at 31.12.2009	155 767	62 059	15 509	233 335
Book value as at 31.12.2010	141 046	21 272	10 863	173 181

As at 31 December 2009, the cadastral value of real estate – land and constructions - was LVL 113 994 As at 31 December 2010, 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
31.12.2009	362 985	508 408	122 297	993 690
Purchased	-	3 554	4 370	7 924
Disposed	-	-	(4 435)	(4 435)
31.12.2010	362 985	511 962	122 232	997 179
Accrued depreciation
31.12.2009	141 348	420 106	100 230	661 684
Calculated depreciation	20 946	61 589	10 981	93 516
Depreciation of excluded fixed
assets	-	-	(4 435)	(4 435)
31.12.2010	162 294	481 695	106 776	750 765
Book value as at 31.12.2009	221 637	88 302	22 067	332 006
Book value as at 31.12.2010	200 691	30 267	15 456	246 414

As at 31 December 2009, the cadastral value of real estate – land and constructions - was EUR 162 199 As at 31 December 2010, 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 31.12.2008	16 245	16 245	23 114	23 114
Increase/decrease of value due to revaluation	103 755	103 755	147 631	147 631
Book value as at 31.12.2009	120 000	120 000	170 745	170 745
Increase/decrease of value due to revaluation	(25 000)	(25 000)	(35 572)	(35 572)
Book value as at 31.12.2010	95 000	95 000	135 173	135 173

(14) Investments in capital of associated companies

	2010				2009
	% 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	7.4	3 000	4 269
		47 372	67 404		3 000	4 269

(15) Other securities and investments

	LVL	EUR
Purchase value as at 31.12.2009	480	683
Book value as at 31.12.2009	480	683
Purchase value as at 31.12.2010	480	683
Book value as at 31.12.2010	480	683

(16) Ready-made products and goods for sale

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Bull semen	304 816	295 995	433 714	421 163
Other goods for sale	6 826	3 803	9 712	5 411
	311 642	299 798	443 426	426 574
(17) Trade receivables
	2010	2009	2010	2009
	LVL	LVL	EUR	EUR
Accounting value of trade receivables	74 540	86 679	106 061	123 333
Provisions for doubtful trade receivables	(6 616)	(3 975)	(9 414)	(5 656)
	67 924	82 704	96 647	117 677

(18) Other receivables

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
VAT for received goods and services	1 283	1 298	1 826	1 847
Overpayment of taxes	-	6 690	-	9 519
Other receivables	594	206	845	293
	1 877	8 194	2 671	11 659

(19) Prepaid expenses

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

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Advertising costs	451	672	642	956
Insurance	3 660	3 670	5 208	5 222
Press subscription	385	360	548	512
Other prepaid expenses	1 065	1 370	1 515	1 949
	5 561	6 072	7 913	8 639

(20) Other securities and shareholding in capitals

SEB Lats reserve fund	Number 15 044	2010 Market price 1.43257	Amount LVL 21 552	Number 15 044	2009 Market price 1.40256	Amount LVL 21 100
			21 552			21 100
		2010			2009
	Number	Market price	Amount EUR	Number	Market price	Amount EUR
SEB Lats reserve fund	15 044	2.03836	30 666	15 044	1.99566	30 023
			30 666			30 023

Money market fund shares have no guaranteed interest rate. In 2010, the profitability was about 2.12 %. 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:		2010		2009
		Currency	LVL	Currency	LVL
Cash in hand	LVL	-	1 714	-	2 612
Cash in bank	LVL	-	204 883	-	47 141
Cash in bank	EUR	2 310	1 623	11 700	8 223
Deposits in credit institutions (with due dates not
exceeding 90 days)	LVL	-	-	-	75 000
Deposits in credit institutions (with due dates not
exceeding 90 days)	EUR	-	-	50 000	35 140
			208 220		168 116

Break-down of cash according to currencies:		2010		2009
		Currency	EUR	Currency	EUR
Cash in hand	LVL	1 714	2 439	2 612	3 717
Cash in bank	LVL	204 883	291 521	47 141	67 076
Cash in bank	EUR	-	2 310	-	11 700
Deposits in credit institutions (with due dates not
exceeding 90 days)	LVL	-	-	75 000	106 715
Deposits in credit institutions (with due dates not
exceeding 90 days)	EUR	-	-	-	50 000
			296 270		239 208

(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.

	2010 LVL	2009 LVL	2010 EUR	2009 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 ordinary common shares with voting rights, 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 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.

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Profit of the reporting period	34 552	129 096	49 164	183 687
Average weighted number of shares during the
year	422 440	422 440	422 440	422 440
	0.082	0.306	0.116	0.435
(23) Provisions for deferred tax
	2010 LVL	2009 LVL	2010 EUR	2009 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	5 712	9 961	8 127	14 174
Increase or decrease	(4 394)	(4 249)	(6 252)	(6 047)
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 31.12.2009	Calculated in 2010	Paid in 2010	Balance as at 31.12.2010
	LVL	LVL	LVL	LVL
Corporate income tax	(6 690)	13 338	(5 300)	1 348
Value added tax	5 251	111 662	(107 592)	9 321
Social insurance contributions	6 553	87 189	(84 328)	9 414
Personal income tax	3 673	57 746	(54 937)	6 482
Real estate tax	-	1 107	(1 107)	-
Nature resource tax	18	113	(103)	28
Business risk duty	10	129	(128)	11
	8 815	271 284	(253 495)	26 604
Including:	2009			2010
	LVL			LVL
Tax overpaid	(6 690)			-
Tax due	15 505			26 604

Tax type	Balance as at 31.12.2009	Calculated in 2010	Paid in 2010	Balance as at 31.12.2010
	EUR	EUR	EUR	EUR
Corporate income tax	(9 519)	18 978	(7 541)	1 918
Value added tax	7 472	158 880	(153 090)	13 262
Social insurance contributions	9 324	124 059	(119 988)	13 395
Personal income tax	5 226	82 165	(78 168)	9 223
Real estate tax	-	1 575	(1 575)	-
Nature resource tax	26	161	(147)	40
Business risk duty	14	184	(182)	16
	12 543	386 002	(360 691)	37 854
Including:	2009			2010
	EUR			EUR
Tax overpaid	(9 519)			-
Tax due	22 062			37 854

Tax overpaid declared in position "Other receivables"

(25) Accrued liabilities

	2010 LVL	2009 LVL	2010 EUR	2009 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

	2010	2009
Average number of persons employed during the reporting year	41	42

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

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Council Members' salaries for work, including state social insurance contributions Board Members' salaries for work, including	6 588	6 666	9 374	9 485
state social insurance contributions	30 034	29 438	42 734	41 886
Total remuneration to management members	36 622	36 104	52 108	51 371

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 Annual Report for 2010 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.

The Management Report contains true information.

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece

Chairman of the Board Member of the Board, Head of Production and Marketing Department in branch of Laboratory

Member of the Board, Head of Financial and Accounting Department