Siguldas CMAS

Annual / Quarterly Financial Statement • Nov 25, 2010

Joint stock company SIGULDAS _ _ _ CILTSLIETU _ 'V UN MAKSLIGAS APSEKLOSANAS STACIJA

INTERIM STATEMENT for 9 months of 2010

Index ofContents

	Page
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	23

Company's name	SIGULDAS CILTSLlETU UN nrW,W,L,J APSEKLOSANAS STACJJA
Company's legal status	Joint stock company
	26 July 1991
and date	on 19 June 2004 Registration in the Commercial
address	area, L V-2150 "Kalnabeites Sigulda parish,
more than 5% of the total Shareholders number shares	S1A registration No. 40003311954
Members of the Board	Chairman Board
	Member ofthe Board Sarm/le Valda Mii/niece, Member ofthe Board
Members of the Council	1nita Bedrlte, Chairman ofthe Council
	Chairman ofthe Council Maija Beca,
	Everte, Member Council
	So/vita Arcimovica, Member ofthe Council
	Renia Belfere, Member ofthe Council
year	01.01.2010 30.09.2010
Auditors	Anita Sondore
	Sworn Auditor
	orT1T1rnro No. 129
	AUDITS AS, SIA
	"PUi.idii", Lfgatne
	area, LV-4108, Latvia
	Sworn Auditors' Commercial Company's license No. 27

Profit or loss accountfor the period ended 30 September 2010

	Note	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Net sales	3	554683	553391	789243	787405
Changes in stock of ready-made goods and unfinished products	4	25985	93599	36974	133 179
Other operating income	5	10318	5770	14680	8210
Costs of materials:		(213 130)	(197040)	(303 256)	(280362)
a) raw materials and auxiliary costs of materials		(166717)	(150387)	(237217)	(213 980)
b) other external costs		(46413)	(46653)	(66039)	(66382)
Personnel costs:	6	(255 595)	(267512)	(363 679)	(380 635)
a) salaries for work		(200209)	(208 167)	(284872)	(296 195)
b) state social insurance compulsory contributions		(47302)	(49690)	(67304)	(70703)
c) other social insurance costs		(8084)	(9 655)	(11 503)	(13 737)
Write-off of assets and values:		(51452)	(59 672)	(73 209)	(84906)
a) depreciation of fixed assets and amortization of intangible assets		(51 452)	(52226)	(73209)	(74309)
b) write-off of value of current assets above the normal deductions			(7446)		(10597)
Other operating costs	7	(21331)	(22 158)	(30 352)	(31 528)
Other interest income and similar income	8	5041	3231	7 173	4596
Interest payments and similar costs	9	(2 506)	(2 415)	(3 566)	(3437)
Profit or losses before taxes		52013	107 194	74008	152522
Enterprise income tax for the reporting year		(7 675)	(12088)	(10921)	(17200)
Other taxes	10	(1 107)	(1 091)	(1 575)	(1 552)
The profit or loss for the year		43231	94015	61512	133770
Equity per 1 share (EPS)	22	0.102	0.223	0.146	0.317

Notes on pages 9 to 22 form an in egral part of these financial statements.

7

SarmTte Arcimovica Valda Ma:lniece Chairman ofthe Board Member ofthe Board Member ofthe Board

/'~/c.::;. : ~~ '-- .......

Assets	Note	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Long-term investments
Intangible assets
trade marks			7		9
Intangible assets total	11		7		9
Fixed assets
		145252	159293	206675	226654
		29721	73945	42289	105214
Other fixed assets and inventory		12 190	12850	17344	18284
Fixed assets total	12	187163	246088	266308	350152
Investment properties	l3	120000	16245	170745	23114
Biological assets		48166	40729	68535	57952
financial investments
Investments in capital of associated
companies	14	47062	3000	66963	4269
Other securities and investments	15	480	480	683	683
Long-term investments total		47542	3480	67646	4952
investments total		402871	306549	573234	436179
Current assets
Stock
basic materials and		12467	14831	17738	21 103
goods and goods for sale	16	315327	361 065	448670	513 750
for		733	1 166	1043	1659
Stock total		328527	377062	467451	536512
Receivables
Trade receivables	17	119764	104595	170409	148825
Other receivables	18	6195	1 925	8814	2740
expenses	19	3329	3999	4737	5689
Receivables total		129288	110519	183960	157254
Short-term financial investments
Other securities and in
	20	21 526	20627	30629	29350
Short-term financial investments total		21526	20627	30629	29350
Cash	21	134022	154829	190696	220302
Current assets total		613 363	663037	872 736	943418
Assets total		1 016234	969586	1445970	1379597

Balance sheet as at 30 September 2010

Shareholders' equity and liabilities	Note	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Shareholders' equity
Share capital	22	422 440	422 440	601078	601078
Retained ea rnings:
Retained earnings carried forward from
prevIOus years		454939	359 638	647320	511 719
Retained earnings 0 f the reporting year		43231	94015	61 512	----- 133770
Shareholders' equity total		920610	876093	1 309910	1 246567
Payables
Long-term payables
Deferred tax liabilities	23	5712	9961	8127	----- 14174
Long-term payables total		5712	9961	8127	14174
Short-term payables
Prepayment received from customers		4146		5898
Trade payables		29812	31 511	42419	44836
Taxes and soc ial insurance payments	24	24 180	19680	34405	28003
Other payables		9974	10232	14 192	14559
Accrued liabilities	25	21 800	22 109	31019	31458
Short-term payables total		89912	83532	127933	----- 118856
Payables total		95624	93493	136 060	----- 133 030
Shareholders' equity and liabilities total		1 016234	969586 ~~~~	1 445 970	1 379 597

Notes on pages 9 to 22 form an integral part of these financial statements.

SarrnIte Arcimovi~a Valda Malniece Member ofthe Board Member ofthe Board

Cash flow statement for the period ended 30 September 2010

	Note	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Cash flow from operating activities
Income from sale of goods and provision of services		651 762	638442	927373	908420
Payments to suppliers, employees, other expenses arising from basic operations		(609334)	(596035)	(867004)	(848082)
Other Company's basic income or expenses		11 748	7809	16716	11 111
Gross cash flow from basic operations		54176	50216	77 085	71449
Expenses for tax payments		(6407)	(10353)	(9 116)	(14731)
Net cash flow from operating activities		47769	39863	67969	56718
Cash flow from investing activities
Purchase of fixed assets and intangible investments		(4809)	(8 018)	(6843)	(11 405)
Purchase of capital shares of other company		(44062)		(62694)
Dividends received		1360	440	1 935	626
Purchase of securities			(15000)		(21 343)
Net cash flow from in vesting activities		(47511)	(22578)	(67602)	(32122)
Cash flow from financing activities
Dividends paid		(33 795)	(33 795)	(48086)	(48086)
Net cash flow from financing activities		(33795)	(33795)	(48086)	(48086)
Result of foreign exchange rate fluctuations		(557)	(386)	(793)	(550)
Increase/ decrease of cash and its equivalents		(34094)	(16896)	(48512)	(24 040)
Cash and its equivalents at the beginning of the period		168116	171725	239208	244342
Cash and its equivalents at the end of the period	21	134022	154829	190696	220302

Notes on pages 9 to 22 form an integral part of these fmancial statements.

'- c= N" s Ivars Feodorovs SarmIte Arcimovica Valda Malniece

Chairman ofthe Board Member ofth e Board Member ofthe Board

.-//' ~ /d-..f0

Statement on changes in shareholders' equity for the period ending 30 September 2010

	Share capital	Retained earnings	Retained earnings for the reporting	Shareholders' equity total
	LVL	LVL	year LVL	LVL
31.12.2008	422440	310555	82878	815873
Profit for 2008 transferred to retained earnings of previous years		82878	(82 878)
Dividends for 2008		(33 795)		(33 795)
Retained earnings for the reporting year			94015	94015
30.09.2009	422440	359638	94015	876093
31.12.2009	422440	359638	129096	911174
Profit for 2009 transferred to retained earnings of
previous years		129096	(129096)
Dividends for 2009		(33 795)		(33 795)
Retained earnings for the reporting year			43231	43231
30.09.2010	422 440	454939	43231	920610

	Share capital	Retained earnings	Retained earnings for the reporting	Shareholders' equity total
	EUR	EUR	year EUR	EUR
31.12.2008	601 078	441 880	117925	1 160883
Profit for 2008 trans felTed to retained earnings of
previous years		117 925	(117925)
Dividends for 2008		(48086)		(48086)
Retained earnings for the reporting year			133 770	133770
30.09.2009	601078	511 719	133770	1 246567
31.12.2009	601078	511 719	183687	1296484
Profit for 2009 transferred to retained earnings of
previous years		183 687	(183687)
Dividends for 2009		(48086)		(48086)
Retained earnings fo r the reporting year			61 512	61 512
30.09.2010	601 078	647320	61512	1 309910

22 for ntegral part of these financial statements.

' .,t--

1Is Ivars Feodoro Chairman ofth e Board Member ofthe Board

ff~

vs Sarrrlite Arcimovica

/ -7 Rt?.-:>~

Valda Malniece Member of the Board

(1) General information on the Company

AS "Siguldas ciltslietu un makslTgas apseklosanas - the Company) was in the Register of ntprnr,'cpc of the 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 breeding animals semen,
• of milk
• artificial insemination

(2) Significant principles

Underlying principles ofpreparation ofthe Financial Statements

KP"nrT\' of The Company's Financial Statements have been prepared to the Law On Annual Latvia and the Latvian Accounting Standards. The Profit or Loss Account was "n.vai''''''' the period costs method. The Cash Flow Statement was to the direct method.

Accounting principles used

The items of the Financial Statements have been evaluated to the following accounting

• It is assumed that the 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 until the balance sheet date,
  • All expected risk amounts and losses have been taken into account, which occurred the rpY>"rtm year or in years, also if they were known a certain period of time between the balance sheets date and the day of preparing the Financial <;:r"tprt1l"
  • All value and depreciation amounts have been taken into account whether the reporting year was closed with profit or loss;
• reporting year related income and costs were recognized lrr~'<""'(' of the payment date and the date of or issuance of invoice. Costs have been agreed with the income in the period;
• components of asset and liabilities items have been recognized
• the opening balance of the 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 ofthe annual report, items are and they are detailed in the
• operating transactions in the year have been in the Financial Statements by into account their economic substance and contents, rather than legal form.

FlJrallcial instrumellts

Fair value offinancial assets and liabilities

Fair value of fmancial assets and liabilities reflect the amount, for which it is to exchange assets or perform liabilities in a deal between well interested and financially persons. If in the Company's management opinion, fair value of fmancial 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 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 financial assets and liabilities held in foreign currencies, the currency risk is not material.

Reporting period

The is 6 months from 1 to 30 September 2010.

Revaluation offoreign currencies

The functional currency and the currency used in the Financial Statements is the Republic of Latvia national currency Lat All transactions in currencies are translated to Lats according to the rate set by the Central Bank of Latvia on the of the respective transaction.

Monetary assets and liabilities, which are pv,'wpccp''; in foreign currency, are translated to Lats to the rate set by the Central Bank of Latvia on the last of the reporting year.

	30.09.2010	30.09.2009
EUR	0.702804	0.702804
USD	0.517	OA8

of transactions, """J"'''UL'.''''' assets and liabilities y rates used for rate differences from settlements in currencies or when "~""'H>"" rates, which differ from the initial currency

Ke'co,,!n,!flGm ofincome

Income is according to the conviction about the 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 income, also the following provisions are taken into account.

Sale

when the ...-VUlL'"'' has transferred to the major risks and indemnities related to the title Income is

Provision

Income from services is '''_''I'.1J:1'''''.'''' in the period when the services are nrcw1I1pri

and delay charges

Income from penalty and delay ~U'U,",'"~ is recognized at the moment of their receipt.

Interest

lncome is recognized to the period of time.

'.IJTllJ-lp.rln and short-term items

items include amounts whose payments or which are write-off terms are due later after the end of the reporting year. or written off the year, are rec:ogmz:ea in short-term items.

Leasing transactions

Financial leasing

In cases when fixed assets are purchased on the conditions of fmancialleasing and the related risks and return are taken over, these fixed assets are recognized in the value, for which they could be with immediate payment. Leasing interest and similar payments are included in the profit or loss account of that period when occurred.

Intangible assets andfIXed assets

In the balance all intangible assets and fixed assets are reflected at their less U1"'('''''''''''' to the straight line method and is written off during the useful life time of respective fixed assets ,",HC}V"U'I', the following annual depreciation rates as fixed by the management:

Intangible assets.

Licenses	5 years
Fixed assets:
J)UC;'U'U'!;" and constructions	20 years
and machinery	5, 6 and 7 years
hardware and communication	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 land in POSSt:SSJIOn of the stock company, which market value is expected to grow. Investment 1"\rr\1"\prt"·~ have been filed to their purchase value. No later than on the end of the year of account the investments 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.

tnr,'lO!!lC;2l assets

J..)"nv,~l ..al assets are assets, which are characterized by "'''l'''1(H'~''l and changes in value as a result of growth. The in biological assets includes animals - which are kept for products for assets are in the purchase value.

Stock

Stock is in the lowest cost or net sales value. All stock is assessed by using the average method.

Net sales value is the sales of stock fixed during normal operations, less the stock completion and costs. In cases when the stock net selling value is lower than their cost are made for these stocks for decrease of their value down to the net sales value.

AU direct costs, which are related to production of animals - bull semen, the year are booked in the or loss account and are at the end of the year when evaluating stocks to the lowest sales value or cost and including them in stocks as "Ready-made and goods for sale".

Trade receivables and other receivables

Receivables are 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 evidence to the fact that the will not be able to receive the debts in full value to the 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 ofreceivables is the current value ofplaIUled cash flow.

Provisions

has liabilities or substantial) due to some past event and there is a probability that the performance of these liabilities will outflow of economic resources from the and the amount of liabilities can be assessed. Provisions are when the

Corporate income tax

period consists of the tax calculated for the reporting period and deferred tax . income tax is ........ ,J."'''u~~.u in the profit or loss account.

Calculated tax

TP."",rtlrlO" ·",.,,,nr'<>t,,, Income Tax" period has been calculated in compliance with the requirements of the Law "On the taxable income and 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 and its value for tax purposes. The mentioned differences are mainly due to different fixed assets made and losses transferred to the Comrmnv' the statutory tax rate 15%. rates applied in tax and financial

Subsidies

Amounts, which are received as a state support for agricultural, i.e., for covering of expenses for maintaining highbreed bulls, are included in the income of that period when are received.

Use ofassumptions

When preparing the financial statements, the ",",VU,,'UH management has to make calculations and umotl(ms. which impact recognition of assets and liabilities included in the financial statements as at the day of fJn.tJ."w,1S statements, as well as the income and expenses in the reporting period. has made or loss assessment and considers that the financial statements reflect the true financial condition based on all available information.

(3) Net sales

Sales include income the year from the Company's basic activities sales of products and of services without value added tax and less discounts.

of operations	2010	2009	2010	2009
	LVL	LVL	EUR	EUR
Livestock sperm	281 168	284237	400066	404433
Milk	142 621	144060	202932	204979
data	50678	41 491	72 108	59036
of cows	19201	23218	27321	33036
Artificial insemination of livestock	17384	18444	24735	26244
laboratory services	8589	4660	12221	6631
Other income	35042	37281	49860	53046
	554683	553391	789243	787405

Distribution of net sales according to the markets:

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Latvia	554683	552896	789243	786700
Estonia		495		705
	554683	553391	789243	787405

from agricultural activities represented in net sales:

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
activities from	554683	553391	789243	787405
	554683	553391	789243	787405

(4) in stock of goods and unfinished products

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
in sperm stock value	18548	95574	26391	135989
Written-off sperm
Changes in stud bull herd value	7437		10 583
	25985	93599	36974	133179
(5) Other operating income
	2010 LVL	2009 LVIo	2010 EUR	2009 EUR
State support for agricultural	10 318	5770	14680	8210
	10318	5770	14680	8210

(6) Personnel costs

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Salaries for work	200209	208 167	284872	296195
State social insurance contributions	47302	49690	67304	70703
Health insurance	7176	7278	10211	10355
Other costs	908	2377	1292	3382
	255595	267512	363679	380635

(7) Other expenses

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
	599	1 158		1647
Insurance			852
Business trip expenses	1367	733	1946	1043
expenses Company's management and administrative	1 541	3508	2193	4991
expenses	13216	11 030	18804	15695
Audit of the financial statement		1570		2234
Other costs	4608	4159	6557	5918
	21331	22158	30352	31528

(8) Other interest income and similar income

	2010	2009	2010	2009
	LVL	LVL	EUR	EUR
Income from shareholding in the company capitals	1 360	440	I 935	626
Income from securities	426	601	606	855
Interest income	1 431	2040	2036	2902
Contractual penalties from clients	137	132	195	188
Recovered doubtful and bad debts	1 396	15	1987	21
Other income	291	3	414	4
	5041	3231	7173	4596

(9) Interest payments and similar costs

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Losses from foreign currency exchange rate
fluctua lions	1 149	409	1 635	582
Employees' leisure and other costs not connected
with operating activities	1346	2006	1 915	2855
Other costs	11		16
	2506	2415	3566	3437

(10) Other taxes

		2010 EUR	2009 EUR
Real estate tax		1 575	-----­ 1 552
		1575	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	1024	1024
Purchased
Disposed
30.09.2010	720	720	1024	1024
Accrued depreciation
31.12.2009	718	718	1022	1022
Calculated depreciation	2	2	2	2
Depreciation of excluded investments
30.09.2010	720	720	1024	1024
Book value as at 31.12.2009	2	2	2	2
Book value as at 30.09.2010

(12) Report on movement of fixed assets

	Land, buildings and cOllstructions	Technological equipment and machinery	Other fixed assets	Total
	LVL	LVL	LVL	LVL
Initial value
31.12.2009	255107	357311	85951	698369
Purchased		2498	2782	5280
			(2965)	(2965)
30.09.2010	255 107	359809	85768	700684
Accrued depreciation
31.12.2009	99340	295252	70442	465034
Calculated depreciation	0515	34836	6101	51452
Depreciation of excluded fixed assets			(2	(2
30.09.2010	109855	330088	73578	513521
Book value as at 31.12.2009	155767	62059	15509	233335
Book value as at 30.09.2010	145252	29721	12190	187163

As at 30 September 2009, the cadastral value of real estate land and constructions - was LVL 245 152 As at 30 September 2010, the cadastral value of real estate -land and constructions - was LVL 113 994

	Land, buildings and constructions	Technoillgical equipment and machinery	Other fixed assets	Total
	EUR	EUR	EUR	EUR
Initial value
31.12.2009	362985	508408	122297	993690
Purchased		3554	3957	7511
			(4 219)	(4
30.09.2010	362985	511962	122035	996982
Accrued depreciation
31.12.2009	141348	420106	100230	661684
Calculated	14962	49567	8680	73209
Depreciation of excluded fixed assets			(4	(4
30.09.2010	156310	469673	104691	730674
Book value as at 31.12.2009	221 637	88302	22067	332006
Book value as at 30.09.2010	206675	42289	17344	266308

As at 30 2009, the cadastral value of real estate land and constructions - was EUR 348 820 As at 30 2010, the cadastral value of real estate land and constructions - was EUR 162 199

(13) Investment properties

	Land	Total	Land	Total
	LVL	LVL	EUR	EUR
Book value as at 31.12.2008	16245	16245	23114	23 114
Increase/decrease of value due to revaluation
Book value as at 30.09.2009	16245	16245	23114	23114
Book value as at 31.12.2009	120000	120000	170745	170745
Increase/decrease of value due to revaluation
Book value as at 30.09.2010	120000	120000	170745	170745

(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 ~~imes dzTvnieku audzetaju savieniba" )
Legal address: Republikas laukums 2, RIga,
LV-10lO, Latvia	26.3	47062	66963	7.4	3000	4269
		47062	66963		3000	4269

(15) Other securities and investments

	LVL	EUR
Purchase value as at 30.09.2009	480	683
Book value as at 30.09.2009	480	683
Purchase value as at 30.09.2010	480	683
Book value as at 30.09.2010	480	683

(l6) Ready-made products and goods for sale

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Bull semen	307992	357024	438233	508000
Other goods for sale	7335	4041	10437	5750
	315327	361065	448670	513 750

(17) Trade receivables

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Accounting value of trade receivables	122343	104616	174079	148855
Provisions for doubtful trade receivables	(2 579)	(21)	(3670)	(30)
	119764	104595	170409	148825

(18) Other receivables

	2010 LVL	2009 LVL	2010 ElJR	2009 EUR
VAT for received and services	828	920	1 178	1310
Overpayment of taxes	4315		6139
Other receivables	1 052	1005	1497	1430
	6195	1925	8814	2740

(19) expenses

The item the costs made the year, but to the next

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
costs	102	152	145	216
Insurance	2758	3569	3925	5078
Press	24	8	34	11
Other	445	270	633	384
	3329	3999	4737	5689

(20) Other securities and shareholding in capitals

		2010			2009
	Number	Market	Amount LVL	Number	Market price	Amount LVL
SEB Lats reserve fund	15044	1.43086	21526	15044	1.37110	20627
			21526			20627
		2010			2009
	Number	Market price	Amount EUR	Number	Market	Amount EUR
SEB Lats reserve fund	15044	2.03593	30629	15044	1.95090	29350
			30629			29350

market fund shares have no guaranteed interest rate. 1n 2010, the profitability was about 2.68 %. Exclusion of money market fund shares is carried out at the vV'"IJ'''" Y request.

(21) Cash in L VL 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		8326		6696
Cash in bank	LVL		123 911		64638
Cash in bank	EUR	2540	1 785	11 888	8355
Deposits in credit institutions (with due dates not
exceeding 90 days)	LVL				40000
Deposits in credit institutions (with due dates not
exceeding 90 days)	EUR			50000	35 140
			134022		154829

-

Break-down of cash according to currencies:		2010		2009
		Currency	EUR	Currency	EUR
Cash in hand	LVL	8326	11 847	6696	9527
Cash in bank	LVL	123 911	176309	64638	91972
Cash in bank	EUR		2540		11 888
Deposits in credit institutions (with due dates not
exceeding 90 days)	LVL			40000	56915
Deposits in credit institutions (with due dates not
exceeding 90 days)	EUR				50000
			190696		220302

(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 422440, the nominal value per share is 1 Lat.

	2010 LVL	2009 LVL	2010 EUR	2009 EllR
Ordinary common shares with voting rights	421440	421 440	599655	599655
Shares owned by the Board without voting rights	1000	1 000	1423	1423
	422440	422440	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.

Notes to the I.LU'~£I.LIL Statements

Profit per share

Profit per one share is calculated by dividing the shares during the year. of the reporting period with the average weighted number of

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Profit of the period	43231	94015	61 512	133770
Average the year	422440	422440	422440	422440
	0.102	0.223	0.146	0.317
(23) Provisions for deferred tax
	2010	2009	2010	2009
	LVL	LVL	EUR	EUR
·"n4."n'·~"'" differences in fixed assets depreciation	59881	88518	85203	125950
Provisions for vacations	(21 800)	109)	(31 019)	(31 458)
Total differences	38081	66409	54184	94492
nr,)VIl.H,,(I" at the " 15,'""6 of the period	5712	9961	8127	14174
Increase or decrease
Deferred tax provisions at the end of the period	5 712	-----==----=-----= 9 961	8127	14174

(24) Taxes and social insurance

Tax type	Balance as at 31.12.2009 LVL	Calculated in 2010 LVL	Paid in 2010 LVL	Balance as at 30.09.2010 LVL
Corporate income tax	(6690)	7675	(5 300)	(4 315)
Value added tax	5251	81675	(74 185)	12741
Social insurance contributions	6553	64976	(64661)	6868
Personal income tax	3673	42787	(41919)	4541
Real estate tax		1 107	(1 107)
Nature resource tax	18	85	(84)	19
Business risk duty	10	98		11
	8815	198403		19865
Including:	2009			2010
	LVL			LVL
Tax overpaid	(6			(43
Tax due	15505			24180

Tax type	Balance as at 31.12.2009 EUR	Calculated in 2010 EUR	Paid in 2010 ElJR	Balance as at 30.09.2010 EUR
Corporate income tax	(95	10921	(7 541)	(6139)
Value added tax	7472	116213	(105556)	18 129
Social insurance contributions	9324	92452	(92004)	9772
Personal income tax	5226	60880	(59645)	6461
Real estate tax		1575	(1
Nature resource tax	26	121	(	27
Business risk	14	140		16
	12543	282302		28266
Including:	2009			2010
	EUR			EUR
Tax	(9519)			(6 139)
Tax due	22062			34405

Tax declared in position "Other receivables"

(25) Accrued liabilities

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Vacation reserve	21 800	22 109	31 019	31458
	21800	22109	31019	31458

(26) Number of persons employed by the Company

	2010	2009
Average number of persons employed during the reporting year	42	43 ~~~~~=

(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	4941	4991	7030	7102
state social insurance contributions	22 319	21 276	31 757	30273
Total remuneration to management members	27260	26267	38787	37375

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 Financial Statement for nine months of the 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 makslIgas apseklosanas stacija" assets, liabilities, financial condition and profit.

Interim statements for nine months of2010 have not been audited by Sworn Auditor.

, s I vars F eoo-onws

Chairman ofthe Board Member ofthe Board, Head Member ofthe Board, Head ofProduction and ofFinancial and Marketing Department in Accounting Department branch ofLaboratory

24 November 2010

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