Siguldas CMAS

Annual / Quarterly Financial Statement • Apr 8, 2010

Joint stock company SIGlJLDAS CILTSLIETU UN - - - - '" MAKSLIGAS APSEKLOSANAS STACIJA

ANNUAL for 2009

Index ofContents

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	23
Report on Management Liability	24

Page

Information on the Company

Company's name	SIGULDAS CILTSLIETU UN MAKSLlGAS APSEKLOSANAS 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, L V-2150
Shareholders holding more than 5% of the total number ofvoting shares	SIA "Siguldas maksligas apseklosanas stacija" (49.8%), registration No. 40003311954
Members of the Board	Nils lvars Feodorovs, Chairman ofthe Board, holding 400 shares Sarmite Arcimovica, Member ofthe Boardfrom 20.07.2009, holding 3824 shares Valda Malniece, Member ofthe Board, holding 14 260 shares Mara Buka, Member ofthe Board until 30.06.2009, holding 12 249 shares
Members ofthe Council	Inita Bedrite, Chairman ofthe Council, holding 1 084 shares Maija Bei!a, Deputy Chairman ofthe Council, holding 3066 shares Erika Everte, Member ofthe Council, holding 2 208 shares Solvita Arcimovica, Member ofthe Council, holding 430 shares Renia Beljere, Member ofthe Council, holding 4 136 shares
Reporting year	01.01.2009 31.12.2009
Auditors	Anita Sondore Sworn Auditor Certificate No. 129
	AUDITS A.S., SIA "PiladZi", Lfgatne parish, Lfgatne area, L V-41 08, Latvia Sworn Auditors' Commercial Company's license No.2 7

Management Report

Type of Operations

JSC "Siguldas ciltslietu un maksiTgas apseklo~anas 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 2009 was 715 thous. lats, which is by 106 thous. lats or 12.9% less than in 2008. The deCJease of net turnover was mainly caused by the amendments in the regulation of allocation of state's support for milk laboratories monitoring the quality of cow and goat milk from livestock under their supervision as well as for the date processing services of these data and the implemented price policy of the stock company.

Compared to 2008, the profit before taxes for the year of account has increased by 40 thous. lats and comprise 135 thous. lats. The major share of it (104 thous. lats) is from the increase of value of investment properties after revaluation.

The Company's commercial profitability in 2009 was 18.9%, which is an increase of 7.3% points against the profitability of 2008.

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, which is 0.08 lats per share.

( Nils Ivars Feodorovs Sarmlte Arcimovica VaJda Malniece Chairman 0/the Board Member o/the Board Member o/the Board

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Profit or loss accountfor the period ended 31 December 2009

	Note	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Net sales	3	715477	821 463	1 018032	1168836
Changes in stock of ready-made goods and unfinished products	4	27 110	22 135	38574	31496
Other operating income	5	5944	23919	8458	34033
Costs of materials:		(258985)	(342436)	(368 503)	(487243)
a) raw materials and auxiliary costs of materials		(192852)	(235 920)	(274404)	(335684)
b) other external costs		(66133)	(106516)	(94099)	(151559)
Personnel costs:	6	(342759)	(316280)	(487 703)	(450025)
a) salaries for work		(268228)	(250814)	(381 655)	(356876)
b) state social insurance compulsory contributions		(64 181)	(60368)	(91 321)	(85 896)
c) other social insurance costs		(10 350)	(5 098)	(14727)	(7253)
Write-off of assets and values:		(81 068)	(72 593)	(115348)	(103 291)
a) depreciation of fixed assets and amortization of intangible assets		(69 578)	(72 166)	(99000)	(102682)
b) write-off of value of current assets above the normal deductions		(11490)	(427)	(16348)	(609)
Other operating costs	7	(30931)	(36381)	(44012)	(51 765)
Other interest income and similar income	8	108927	8237	154989	11 720
Interest payments and similar costs	9	(8 569)	(12991)	(12 193)	(18484)
Profit or losses before taxes		135146	95073	192 294	135277
Enterprise income tax for the reporting year		(9208)	(14388)	(13 102)	(20472)
Deferred tax costs	22	4249	3 106	6047	4419
Other taxes	10	(1 091)	(913)	(1 552)	(1 299)
The profit or loss for the year		129096	82878	183687	117925
Equity per 1 share (EPS)	21	0.306	0.196	0.435	0.279

Notes on pages 10 to 22 form an integral part of these fmancial statements. ,

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^INils Ivars Feodorovs Sarmite Arcimovica Valda Malniece Chairman o/the Board Member o/the Board Member 0/the Board

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Balance sheet as at 31 December 2009

Assets	Note	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Long-term investments
Intangible assets
Concessions, patents, licenses, trade marks and similar rights		2	22	2	31
Intangible assets total	II	2	22	2	31
Fixed assets
Land parcels, buildings and constructions and perennial p iantings		155767	169845	221 637	241 669
Equipment and machinery		62059	106862	88302	152051
Other fixed assets and inventory		15509	13425	22067	19 103
Prepayments for fixed assets			149		211
Fixed assets total	12	233335	290281	332006	413 034
Investment properties	13	120000	16245	170745	23 114
Biological assets		40729	42704	57952	60762
Long-term financial investments
Other securities and investments	14	3480	3480	4952	4952
Long-term financial in vestments total		3480	3480	4952	4952
Long-term investments total		397546	352732	565657	501 893
Current assets
Stock
Raw materials, basic materials and auxiliary materials		11 773	17 422	16 752	24789
Ready-made goods and goods for sale	15	299798	265421	426574	377 661
Prepayments for goods		397	1314	565	1869
Stock total		311 968	284157	443891	404319
Receivables
Trade receivables	16	82704	79076	117677	112515
Other receivables	17	8 194	3970	II 659	5649
Prepaid expenses	18	6072	5897	8639	8390
Receivables total		96 970	88943	137975	126554
Short-term financial investments
Other securities and shareholding in capitals	19	21 100	5026	30023	7151
Short-term financial investments total		21 100	5026	30023	7151
Cash	20	168 116	171 725	239208	244342
Current assets total		598154	549851	851 097	782366
Assets total		995700	902583	1416754	1 284259

Balance sheet as at 31 December 2009

Shareholders' equity and liabilities	Note	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Shareholders' equity
Share capital	21	422440	422440	601 078	601078
Retained earnings:
Retained earnings carried forward from previous years		359 638	310555	511 719	441 880
Retained earnings of the reporting year		129096	82878	183687	117 925
Shareholders' equity total		911 174	815873	1 296484	1 160883
Payables
Long-term payables
Deferred tax liabilities	22	5712	9961	8 127	14174
Long-term payables total		5712	9961	8127	14174
Short-term payables
Prepayment received from customers		421	573	599	815
Trade payables		30887	23 182	43949	32985
Taxes and social insurance payments	23	15505	18979	22062	27 004
Other payables		10201	II 906	14514	16940
Accrued liabilities	24	21 800	22 109	31 019	31458
Short-term payables total		78814	76749	112143	109202
Payables total		84526	86710	120270	123376
Shareholders' equity and liabilities total		995700	902583	1416754	1284259

Notes on pages 10 to 22 form an integral part of these fmancial statements.

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Nils lvars Feodorovs SarmTte Arcimovica Chairman ofthe Board Member ofthe Board

Vajda Malniece Member ofthe Board

Cash flow statement for the period ended 31 December 2009

	Note	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Cash flow from operating activities
Income from sale of goods and provision of services		853290	926 11 0	1 2 J4 122	1317735
Payments to suppliers, employees, other expenses arising from basic operations		(790627)	(836506)	(1 124 961)	(1190241)
Other Company's basic income or expenses		9449	30044	13 445	42749
Gross cash flow from basic operations		72 112	119648	102606	170243
Expenses for tax payments		(14 163)	(13 489)	(20 152)	(19193)
Net cash flow from operating activities		57949	106159	82454	151 050
Cash flow from investing activities
Purchase of fixed assets and intangible investments		(12611)	(31 980)	(17944)	(45504)
Income from sale of fixed assets			6 123		8712
Dividends received		440		626
Purchase ofsecurities		(15 000)	(5 000)	(21 343)	(7 114)
Income from the sales of securities			25280		35970
Net cash flow from investing activities		(27171)	(5577)	(38661)	(7936)
Cash flow from financing activities
Expenses for purchase of a leased fixed asset			(25 162)		(35 802)
Dividends paid		(33 795)	(42244)	(48086)	(60 108)
Net cash flow from financing activities		(33795)	(67406)	(48086)	(95910)
Result of foreign exchange rate fluctuations		(592)	(743)	(841)	(1 057)
Increase/decrease of cash and its equivalents		(3609)	32433	(5134)	46147
Cash and its equivalents at the beginning of the period		171 725	139292	244342	198195
Cash and its equivalents at the end of the period	20	168 116	171 725	239208	244342

Notes on pages 10 to 22 form an integral part of these fmancial statements.

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Nils I\iars Feodorovs Chairman ofthe Board

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SarmTte Arcimovica Member ofthe Board

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Valda Malniece Member ofthe Board

Statement on changes in shareholders' equity for the period ending 31 December 2009

	Share capital LVL	Retained earnings LVL	Retained earnings for the reporting year LVL	Shareholders' equity total LVL
31.12.2007	422440	278728	74071	775239
Profit for 2007 transferred to retained earnings of prevlOUS years		74071	(74071)
Dividends for 2007		(42244)		(42244)
Retained earnings for the reporting year			82878	82878
31.12.2008	422440	310555	82878	815873
Profit for 2008 transferred to retained earnings of prevIOus years		82878	(82878)
Dividends for 2008		(33 795)		(33 795)
Retained earnings for the reporting year			129096	129096
31.12.2009	422440	359638	129096	911 174

	Share capital	Retained earnings	Retained earnings for the reporting	Shareholders' equity total
	EUR	EUR	year EUR	EUR
31.12.2007	601 078	396594	105393	1 103065
Profit for 2007 transferred to retained earnings of previous years		105 393	(l05393)
Dividends for 2007		(60 108)		(60108)
Retained earnings for the reporting year			117925	117925
31.12.2008	601 078	441 880	117925	1 160883
Profit for 2008 transferred to retained earnings of previous years		117925	(117 925)
Dividends for 2008		(48086)		(48086)
Retained earnings for the reporting year			183687	183 687
31.12.2009	601078	511 719	183687	1 296484

Notes on pages 10 to 22 form an integral part of these financial statements.

Nils Ivars Feodorovs SarrnIte Arcimovica Chairman ofthe Board Member ofthe Board

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Valda MiHniece Member ofthe Board

7 Apri12010

(1) General information on the Company

• the was in the Register of 1.'-"''''01'-' of the Republic ciltslietu un makslIgas apseklosanas stacija" ntpFr\r1'CP~ of the Republic of Latvia on 26 July 1991 and was of Latvia on 19 June 2004,

The basic activities are agriculture and the

• Production and sale of agricultural products animals semen,
• of milk analyses,
• evaluation of cow exterior,
• artificial insemination
• of lITllTIUlle-!;en,enc of
• milk rp('nrrl,ma
• animals breeding organization.

(2) Significant accounting principles

Underlying principles ofpreparation Financial Statements

The Company's Financial Statements have been to the Law On Annual Reports of the Republic of Latvia and the obligatory applicable Latvian ""'-Vl,uH,U'", Standards. The Profit or Loss Account was prepared based on 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 according to the following accounting principles:

• It is assumed that the Company will be a concern;
• The same evaluation methods have been which were used in the previous year;
• Evaluation was done with sufficient
  • The Financial Statements include the profit gained until the balance sheet date,
  • All expected risk amounts and losses have been taken into account, which occuned during the r"",rwt"" were known during a certain period of time between the balance the Financial Statements, years, also if
  • amounts have been taken into account inespective whether the All value
• year related income and costs were inespective of the payment date and the date of receipt or issuance of invoice, Costs have been with the income in the reporting period;
• of asset and liabilities items have been separately;
• VjJ'wl;'")', balance of the year agrees with the closing balance of the year;
• all items have been which influence assessment or decision-making process of the users of the annual and are detailed in the Appendix;
• transactions in the year have been in the Financial Statements into account their economic substance and contents, rather than form.

Financial instruments

Fair value assets and liabilities

in the Fair value of fmandal assets and liabilities reflect the amount, for which it is possible to liabilities in a deal between well interested and financially independent persons. management faiT value of financial assets and liabilities materially differs from the value balance then the fair value of these assets and liabilities is recognized in the Notes to the Financial Statements,

Financial risks management

Credit risk

The vv"up,,,uy all customers above a fixed amount. The which is constantly controlled. Client evaluation is done for with clients who have proper credit assessment.

risk

Based on the current structure of Company's fmancial assets and liabilities held in foreign currencies, the currency risk is not material.

Reporting period

The rPM,Artm is 12 months from 1 January to 31 December 2009.

Revaluation currencies

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

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

	31.12.2009	31.12.2008
EUR	0.702804	0.702804
USD	0.489	0.495

from settlements in currencies or when assets and liabilities y nv,.,w"..,v rates used for accounting of transactions, Currency nv"",,OV rates, which differ from the initial currency or loss account in net value.

Recognition ofincome

Income is ('{'en-rimo to the conviction about the Company's to economic benefit and in the to state it, less value added tax and sales-related discounts. When income, are taken into account.

Sale ofgoods

Income is when the has transferred to the purchaser risks and indenmities related to the title of goods.

Provision

Income from services is in the when the services are

and

is at the moment of their receipt.

Interest

Income is recognized according to the of time.

Long-term and short-term items

Long-term items include amounts whose which are payments or write-off terms are due later after the end of the respective reporting year. payable or written off during the year, are 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 andfIXed 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:

Fixed assets: 20 years Buildings and constructions	5 years
5, 6 and 7 years Equipment and machinery
Computer hardware and communication 5 years equipment
3 and 5 years Inventory and tools
2 and 3 years Other fixed assets

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%.

Def erred 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 pmposes. 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 ofassumptions

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 fmancial 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 fmancial 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	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Livestock sperm	360943	398316	513 576	566753
Milk laboratory services	192912	233559	274489	332324
Treatment of supervisory data	55561	69362	79056	98693
Inspection of cows	29409	27663	41 845	39361
Artificial insemination of livestock	22962	25243	32672	35917
Immune-genetic laboratory services	6771	11 041	9634	15710
Other income	46919	56279	66760	80078
	715477	821463	1 018032	1168836

Distribution of net sales according to the geographical markets:

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Latvia	714982	821463	1 017 327	1 168836
Estonia	495		705
	715477	821463	1 018032	1168836

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

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Changes in sperm stock value	41 179	67070	58592	95432
Written-off sperm	(12094)	(40825)	(17208)	(58088)
Changes in stud bull herd value	(1 975)	(4 110)	(2 810)	(5 848)
	27110	22135	38574	31496

(5) Other operating income

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
State support for agricultural	5944	------------------ 23919	8458	34033
	5944	23919	8458	34033 ====~

(6) Personnel costs

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Salaries for work	268502	248372	382044	353401
State social insurance contributions	64216	59792	91 371	85076
Changes in provisions for vacation reserve	(309)	3018	(439)	4294
Health insurance	7327	3 318	10425	4721
Other costs	3023	1 780	4302	2533
	342759	316280	487703	450025

(7) Other operating expenses

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Insurance payments	1 195	I 863	I 701	2651
Business trip expenses	785	3250	I 117	4624
Selling expenses	4365	6278	6211	8933
Company's management and administrative expenses	17703	17379	25 189	24728
Audit of the financial statement	1 500	1 500	2134	2 134
Other costs	5383	6 111	7660	8695
	30931	36381	44012	51 765

(8) Other interest income and similar income

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Income from shareholding in the company capitals	440		626
Income from securities	1074	50	I 529	71
Income from investment property revaluation	103755		147631
Interest income	3505	6125	4987	8715
Contractual penalties from clients	132	1097	187	1 561
Recovered doubtful and bad debts	15	964	21	1372
Other income	6	1	8
	108927	8237	154989	11 720

(9) Interest payments and similar costs

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Interest		925		1316
currency exchange rate fluctuations	680	1078	968	I 534
Contractual and fmes		10		14
Employees' leisure and other costs not connected with operating activities	7889	10978	II 225	15620
	8569	12 991	12 193	18484

(10) Other taxes

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Real estate tax	1 091	913	1552	1299
	1091	913	1552	1299

(11) Intangible assets

	similar	Total	Concessions, patents, licenses, trade marks and similar rights	Total
	LVL	LVL	EUR	EUR
Initial value
31.12.2008	720	720	1024	1024
Purchased
31.12.2009	720	720	1024	1024
Accrued depreciation
31.12.2008	698	698	993	993
Calculated	20	20	29	29
of excluded investments
31.12.2009	718	718	1022	1022
Book value as at 31.12.2008	22	22	31	31
Book value as at 31.12.2009	2	2	2	2

(12) Report on movement of fixed assets

	Land, buildings and constructions	Technological equipment and machinery	Other fixed assets	Prepayments for fixed assets	Total
	LVL	LVL	LVL	LVL	LVL
Initial value
31.12.2008	255 107	354427	77152	149	686835
Purchased		2884	9727		12611
Transferred			149	(149)
Disposed			(1 077)		(1 077)
31.12.2009	255 107	357311	85951		698369
Accrued depreciation
31.12.2008	85262	247565	63727		396554
Calculated depreciation	14078	47687	7792		69557
Depreciation of excluded fixed assets			(1 077)		(1 077)
31.12.2009	99340	295252	70442		465034
Book value as at 31.12.2008	169845	106862	13 425	149	290281
Book value as at 31.12.2009	155767	62059	15509		233335

As at 31 December 2008, the cadastral value of real estate - land and constructions - was LVL 230216 As at 31 December 2009, the cadastral value of real estate - land and constructions - was L VL 113 994

	Land, buildings and constructions	Technological equipment and machinery	Other fixed assets	Prepayments for fixed assets	Total
	EUR	EUR	EUR	EUR	EUR
Initial value
31.12.2008	362985	504304	109778	211	977 278
Purchased		4 104	13840		17944
Transferred			211	(211 )
Disposed			(1 532)		(1 532)
31.12.2009	362985	508408	122297		993690
Accrued depreciation
31.12.2008	121 316	352253	90675		564244
Calculated depreciation	20032	67853	11 087		98972
Depreciation of excluded fixed assets			(1 532)		(1 532)
31.12.2009	141348	420 106	100230		661 684
Book value as at 31.12.2008	241669	152051	19103	211	413 034
Book value as at 31.12.2009	221637	88302	22067		332006

As at 31 December 2008, the cadastral value of real estate -land and constructions - was EUR 327 568 As at 31 December 2009, 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 31.12.2007	16245	16245	23114	23114
Increase/decrease of value due to revaluation
Book value as at 31.12.2008	16245	16245	23114	23114
Increase/decrease of value due to revaluation	103 755	103 755	147 631	147631
Book value as at 31.12.2009	120000	120000	170745	170745

(14) Other securities and investments

	LVL	EUR
Purchase value as at 31.12.2008	3480	4952
Book value as at 31.12.2008	3480	4952
Purchase value as at 31.12.2009	3480	4952
Book value as at 31.12.2009	3480	4952

(15) Ready-made products and goods for sale

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Bull semen	295 995	255730	421 163	363 871
Other goods for sale	3803	9691	5411	13790
	299798	265421	426574	377 661

(16) Trade receivables

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Accounting value of trade receivables	86679	79097	123 333	112 545
Provisions for doubtful trade receivables	(3 975)	(21 )	(5 656)	(30)
	82704	79076	117677	112 515
(17) Other receivables	2009 LVL	2008 LVL	2009 EUR	2008 EUR
V A T for received goods and services	1 298	927	1 847	1 319
Overpayment of taxes	6690	2826	9519	4021
Other receivables	206	217	293	309
	8194	3970	11659	5649

(18) Prepaid expenses

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

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Advertising costs	672	757	956	1077
Insurance	3670	3 141	5222	4469
Press subscription	360	383	512	545
Other prepaid expenses	1 370	1 616	1 949	2299
	6072	5897	8639	8390

(19) Other securities and shareholding in capitals

		2009			2008
	Number	Market	Amount	Number	Market	Amount
		price	LVL		price	LVL
SEB Lats reserve fund	15044	1.40256	21 100	3885	1.29369	5026
			21 100			5026
		2009			2008
	Number	Market	Amount	Number	Market	Amount
		price	EUR		price	EUR
SEB Lats reserve fund	15044	1.99566	30023	3885	1.84075	7 151
			30023			7151

Money market fund shares have no guaranteed interest rate. In 2009, the profitability was about 8.4 %. Exclusion of money market fund shares is carried out at the Company's request.

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

Break-down of cash according to currencies:			2009	2008
		Currency	LVL	Currency	LVL
Cash in hand	LVL		2612		3 198
Cash in bank	LVL		47 141		55646
Cash in bank	EUR	11 700	8223	61 015	42881
Deposits in credit institutions (with due dates not exceeding 90 days)	LVL		75000		70000
Deposits in credit institutions (with due dates not exceeding 90 days)	EUR	50000	35 140
			168116		171 725

Break-down of cash according to currencies:		2009		2008
		Currency	EUR	Currency	EUR
Cash in hand	LVL	2612	3717	3 198	4550
Cash in bank	LVL	47 141	67076	55646	79176
Cash in bank	EUR		11 700		61 015
Deposits in credit institutions (with due dates not exceeding 90 days)	LVL	75000	106 715	70000	99601
Deposits in credit institutions (with due dates not exceeding 90 days)	EUR		50000
			239208		244342

(21) 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.

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Ordinary common shares with voting rights	421 440	421 440	599655	599655
Shares owned by the Board without voting rights	1 000	1 000	1 423	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.

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.

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Profit of the reporting period A verage weighted number of shares during the year	129096	82878	183687	117925
	422440	422 440	422 440	422 440
	0.306	0.196	0.435	0.279

(22) Provisions for deferred tax

,.---

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Temporary differences in fixed assets depreciation	59881	88518	85203	125 950
Provisions for vacations	(21 800)	(22 109)	(31019)	(31 458)
Total temporary differences	38081	66409	54 184	94492
Deferred tax provisions at the beginning of the period	9961	13067	14174	18593
Increase or decrease	(4249)	(3 106)	(6047)	(4 419)
Deferred tax provisions at the end of the period	5712	9961	8127	14174

(23) Taxes and social insurance payments

Tax type	Balance as at 31.12.2008 LVL	Calculated in 2009 LVL	Paid in 2008 LVL	Balance as at 31.12.2009 LVL
Corporate income tax	(2826)	9208	(13072)	(6690)
Value added tax	8090	98575	(101414)	5251
Social insurance contributions	6954	88207	(88 608)	6553
Personal income tax	3903	47639	(47869)	3673
Real estate tax		1 091	(1 091)
Nature resource tax	21	82	(85)	18
Business risk duty	11	129	(130)	10
	16153	244931	(252269)	8815
Including:	2008			2009
	LVL			LVL
Tax overpaid	(2 826)			(6690)
Tax due	18979			15505

Tax type	Balance as at 31.12.2008 EUR	Calculated in 2009 EUR	Paid in 2009 EUR	Balance as at 31.12.2009 EUR
Corporate income tax	(4021 )	13 102	(18600)	(9 519)
Value added tax	11 511	140260	(144299)	7472
Social insurance contributions	9895	125507	(126078)	9324
Personal income tax	5552	67785	(68 111)	5226
Real estate tax		1 552	(1 552)
Nature resource tax	30	117	(121 )	26
Business risk duty	16	183	(185)	14
	22983	348506	(358946)	12543
Including:	2008			2009
	EUR			EUR
Tax overpaid	(4 021)			(9 519)
Tax due	27004			22062

(24) Accrued liabilities

	2008 LVL	2009 EUR	2008 EUR
Vacation reserve	22 109	------------ 31 019	31458
	22109	= ===== =====­ 31 019	31 458

(25) Number of persons employed by the Company

A verage number of persons employed during the reporting year	2009	------ 2008
	42	====== 44

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

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Council Members' salaries for work, including state social insurance contributions	6666	5 541	9485	7884
Board Members' salaries for work, including state social insurance contributions	29438	26 165	41 886	37229
Total remuneration to management members	36104	31 706	51371	45113

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 compensations.

INDEPENDENT AUDITOR'S REPORT

To the Shareholders of AS SIGUlDAS CilTSLIETU UN MAKSliGAS APSEKlOSANAS STACIJA

Report on the Financial Statements

I have audited the accompanying financial statements on pages 5 to 22 of AS SIGUlDAS CllTSLIETU UN MAKSLIGAS APSEKlOSANAS STACIJA, which comprise the balance sheet as of 31 December 2009 and the income statement, statement of changes in equity and cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory notes.

Management"s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with the requirements of the Annual Accounts Act of the Republic of Latvia. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility

My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with International Standards on Auditing acknowledged in Latvia. Those Standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's jUdgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

In my opinion, the accompanying financial statements give a true and fair view of the financial position of AS SIGUlDAS CilTSLI ETU UN MAKSLIGAS APSEKlOSANAS STACIJA as of 31 December 2009, and of its financial performance and its cash flows for the year then ended in accordance with the requirements of the Annual Accounts Act of the Republic of Latvia.

Report on the Management Report

I have also read the Management Report for the year 2009, which is set out on page 4 and I did not identify any material inconsistencies between the financial information contained in this Management Report and that contained in the financial statements for 2009.

SIA ,,AUDITS A.S." Certified Auditors' Commercial Company License No. 27

i :/.cu. --/'

Anita Sondore Certified Auditor Certificate No. 129 Board Member

L"igatne, Latvia April 7, 2010

Report on Management Liability

According to the information being at our disposal, the Aru1Ual Report for 2009 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 apseklo~anas stacija" assets, liabilities, financial condition and profit.

The Management Report contains true information.

Nils Ivars Feodorovs ~~ Valda Mallllece

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