Siguldas CMAS

Quarterly Report • Nov 26, 2009

Joint stock company SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA

INTERIM STATEMENT for 9 months of 2009

Index of Contents

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

JSC "SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA" Interim statement for 9 months of 2009

Information on the Company

Company's name	SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOSANAS 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 rural parish, Sigulda area, LV-2150
Shareholders holding more than 5% of the total number of voting shares	SIA "Siguldas mākslīgās apsēklošanas stacija" (49.8%), registration No. 40003311954
Members of the Board	Nils Ivars Feodorovs, Chairman of the Board Sarmīte Arcimoviča, Member of the Board from 20.07.2009 Valda Malniece, Member of the Board Mara Buka, Member of the Board until 30.06.2009
Members of the Council	Inita Bedrīte, Chairman of the Council Maija Beča, Deputy Chairman of the Council Erika Everte, Member of the Council Solvita Arcimoviča, Member of the Council Renia Bekere, Member of the Council
Reporting year	01.01.2009-30.09.2009
Auditors	Anita Sondore Sworn Auditor Certificate No. 129
	AUDITS A.S., SIA "Pīlādži", Līgatne rural parish, Cēsu district, LV-4108, Latvia Sworn Auditors' Commercial Company's license No. 27

3

Profit or loss account for the period ended 30 September 2009

	Note	2009 LVL	2008 LVL	2009 13 OFF	2008 BOR
Net sales	3	553 391	632 627	787 405	900 147
Changes in stock of ready-made goods and unfinished products	4	93 200	53 425	133 179	76 016
Other operating income	5	5 770	18 040	8 210	25 669
Costs of materials:		(197 040)	(247 371)	(280 362)	(351 977)
a) raw materials and auxiliary costs of materials		(150 387)	(183 058)	(213 980)	(260 468)
b) other external costs		(46 653)	(64 313)	(66 382)	(91 509)
Personnel costs:	6	(267 512)	(234 504)	(380 635)	(333 668)
a) salaries for work		(208 167)	(185 121)	(296 195)	(263 403)
b) state social insurance compulsory contributions		(49 690)	(44 710)	(70 703)	(63 617)
c) other social insurance costs		(9 655)	(4 673)	(13 737)	(6 648)
Write-off of assets and values:		(59 672)	(52 536)	(84 906)	(74 752)
a) depreciation of fixed assets and amortization of intangible assets		(52 226)	(52 320)	(74 309)	(74 445)
b) write-off of value of current assets above the normal deductions		(7 446)	(216)	(10 597)	(307)
Other operating costs	7	(22 158)	(30 139)	(31 528)	(42 885)
Other interest income and similar income	8	3 231	6 534	4 596	9 298
Interest payments and similar costs	9	(2 415)	(6 479)	(3 437)	(9 219)
Profit or losses before taxes		107 194	139 597	152 522	198 629
Enterprise income tax for the reporting year		(12 088)	(13 224)	(17 200)	(18 816)
Other taxes	10	(1 091)	(913)	(1 552)	(1 299)
The profit or loss for the year		94 015	125 460	133 770	178 514
Equity per 1 share (EPS)	20	0.223	0.297	0.317	0.423

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

Mils Ivars Feodorovs Chairman of the Board

25 November 2009

Sarmīte Arcimoviča Member of the Board

Valda Mālniece Member of the Board

Balance sheet as at 30 September 2009

Assets	Note	2009 LVL	2008 LVL	2009 FOTOR	2008 BUR
Long-term investments
Intangible assets
Concessions, patents, licenses, trade marks and similar rights		7	27	9	38
Intangible assets total	11	7	27	9	38
Fixed assets
Land parcels, buildings and constructions and perennial plantings		159 293	173 363	226 654	246 674
Equipment and machinery		73 945	112 322	105 214	159 819
Other fixed assets and inventory		12 850	16 033	18 284	22813
Fixed assets total	12	246 088	301 718	350 152	429 306
Investment properties		16 245	16 245	23 114	23 114
Biological assets		40 729	55 049	27 052	78 328
Long-term financial investments
Other securities and investments	13	3 480	3 480	4 952	4 952
Long-term financial investments total		3 480	3 480	4 952	4 952
Long-term investments total		306 549	376 519	436 179	535 738
Current assets
Stock
Raw materials, basic materials and auxiliary materials		14 831	14 836	21 103	21 110
Ready-made goods and goods for sale	14	361 065	287 910	513 750	409 659
Prepayments for goods		1 166	1 778	1 659	2 530
Stock total		377 062	304 524	536 512	433 299
Receivables
Trade receivables	15	104 595	92 544	148 825	131 678
Other receivables	16	1 925	15 204	2 740	21 633
Prepaid expenses	17	3 999	3 201	5 689	4 555
Receivables total		110 519	110 949	157 254	157 866
Short-term financial investments
Other securities and shareholding in capitals	18	20 627		29 350
Short-term financial investments total		20 627		29 3:20
Cash	19	154 829	152 975	220 302	217 664
Current assets total		663 037	568 448	943 418	808 829
Assets total		969 586	944 967	1 379 597	1 344 567

JSC "SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA" Interim statement for 9 months of 2009

Balance sheet as at 30 September 2009

601 078
441 879
178 514
1 221 471
18 293
18 593
1310
28 889
29 137
18 003
27 164
104 503
123 096
1 344 567

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

Nils Ivars Feodorovs Chairman of the Board

25 November 2009

Sarmīte Arcimoviča Member of the Board

Valda Mālniece Member of the Board

JSC "SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA" Interim statement for 9 months of 2009

Cash flow statement for the period ended 30 September 2009

	2009 LVL Note	2008 LVL	2009 13 OFF	2008 BUIR
Cash flow from operating activities
Income from sale of goods and provision of services	638 442	689 947	908 420	981 706
Payments to suppliers, employees, other expenses arising from basic operations	(596 035)	(630 083)	(848 082)	(896 527)
Other Company's basic income or expenses	7 809	49 465	1111	70 382
Gross cash flow from basic operations	50 216	109 329	71 449	155 561
Expenses for tax payments	(10 353)	(9 499)	(14 731)	(13 516)
Net cash flow from operating activities	39 863	99 830	56 718	142 045
Cash flow from investing activities
Purchase of fixed assets and intangible investments	(8 018)	(24 752)	(11 405)	(35 218)
Income from sale of fixed assets		5 913		8 413
Dividends received	440		626
Purchase of securities	(15 000)		(21 343)
Net cash flow from investing activities	(22 578)	(18 839)	(32 122)	(26 805)
Cash flow from financing activities
Expenses for purchase of a leased fixed asset		(25 162)		(35 802)
Dividends paid	(33 795)	(42 244)	(48 086)	(60 108)
Net cash flow from financing activities	(33 795)	(67 406)	(48 086)	(95 910)
Result of foreign exchange rate fluctuations	(386)	98	(550)	139
Increase/decrease of cash and its equivalents	(16 896)	13 683	(24 040)	19 469
Cash and its equivalents at the beginning of the period	171 725	139 292	244 342	198 195
Cash and its equivalents at the end of the period	19 154 829	152 975	220 302	217 664

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

Nils Ivars Feodorovs Chairman of the Board

25 November 2009

Sarmīte Arcimoviča Member of the Board

Valda Mālniece Member of the Board

Statement on changes in shareholders' equity for the period ending 30 September 2009

	Share capital	Retained earnings	Retained earnings for the reporting	Shareholders' equity total
	ILVL	LVL	year LAVL	DVIL
31 22007	422 440	278 728	74 071	775 239
Profit for 2007 transferred to retained earnings of previous years		74 071	(74 071)
Dividends for 2007		(42 244)		(42 244)
Retained earnings for the reporting year			125 460	125 460
30.09.2008	422 440	310 555	125 460	858 455
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			94 015	94 015
30.09.2009	422 440	359 638	94 015	876 093

	Share capital	Retained earnings	Retained earnings for the reporting year	Shareholders' equity total
	BOOR	131 OIR	13 OFR	BOOR
31.12.2007	601 078	396 594	105 393	1 103 065
Profit for 2007 transferred to retained earnings of previous years		105 393	(105 393)
Dividends for 2007		(60 108)		(60 108)
Retained earnings for the reporting year			178 514	178 514
30.09 2008	601 078	441 879	178 514	1 22 12 71
31.12.2008	601 078	441 880	117 925	1 160 883
Profit for 2008 transferred to retained earnings of previous years		117 925	(117925)
Dividends for 2008		(48 086)		(48 086)
Retained earnings for the reporting year			133 770	133 770
30.09.2009	601 078	511 719	18:770	1 246 567

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

Nils Ivars Feodorovs Chairman of the Board

Sheiming

Sarmīte Arcimoviča Member of the Board

Valda Mālniece Member of the Board

25 November 2009

(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 accurred 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 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 currency risk is not material.

Reporting period

The reporting period is 9 months from 1 January to 30 September 2009.

Revaluation of foreign currencies

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

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

	30.09.2009	30.09.2008
EUR	0.702804	0.702804

Currency exchange rate differences arising from settlements in 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 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.

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 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 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 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 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 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 Company's basic activities - sales of products and provision of services without value added tax and less discounts.

Type of operations	2009 ILMIL	2008 LML	2009 3 OFF	2008 I 31 OIR
Livestock sperm	284 237	314 084	404 433	446 901
Milk laboratory services	144 060	175 208	204 979	249 299
Treatment of supervisory data	41 491	52 031	59 036	74 033
Inspection of cows	23 218	11 591	33 036	16 493
Artificial insemination of livestock	18 444	19 299	26 244	27 460
Immune-genetic laboratory services	4 660	8 406	6631	11 961
Other income	37 281	52 008	53 046	74 000
	553 391	632 627	787 405	900 147

Distribution of net sales according to the geographical markets:

	2009 LVL	2008 LVL	2009 CHOIR	2008 COR
Latvia	552 896	632 627	786 700	900 147
Bstonia	495		705
	553 391	632 627	787 405	900 147

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

	2009 LAVIS	2008 IDVIL	2009 13 OIR	2008 13 OFF
Changes in sperm stock value	95 574	70 569	135 989	100 409
Written-off sperm		(25 379)		(36 111)
Changes in stud bull herd value	(1 975)	8 235	(2 810)	11 718
	ਰੇਤੇ ਵੇਰੇਰੇ	53 425	133 179	76 016

(5) Other operating income

	2009 LVL	2008 ICML	2009 BUIR	2008 BOR
State support for agricultural	5 770	19 427	8 210	27 643
Other income		(1 387)		(1 974)
	5 770 /	18 040	8210	25 669

(6) Personnel costs

	2009 LVIL	2008 ICVIL	2009 BUR	2008 13 OFF
Salaries for work	208 167	185 121	296 195	263 403
State social insurance contributions	49 690	44 710	70 703	63 617
Health insurance	7 278	3318	10 355	4721
Other costs	2 377	ા 355	3 382	1927
	267 512	234 504	380 635	333 668

(7) -Other operating expenses

	2009 LMC	2008 LVL	2009 FOR OIR	2008 TELOIR
Insurance payments	1 158	1 781	1 647	2 534
Business trip expenses	733	2 437	1 043	3 468
Selling expenses	3 508	5817	4 991	8 277
Company's management and administrative expenses	11 030	14 042	15 695	19 980
Audit of the financial statement	1 570	950	2 234	1 352
Other costs	4 159	5112	5918	7 274
	22 158	30 139	31 528	42 885

(8)

	2009	2008	2009	2008
	LVL	ICMIL	BIR	BIOIR
Income from shareholding in the company capitals	440		626
Income from securities	601	24	8 રેર	34
Interest income	2 040	4757	2 902	6769
Contractual penalties from clients	132	752	188	1 070
Recovered doubtful and bad debts	15	964	21	1 372
Income from foreign currency exchange rate fluctuations		37		53
Other income	3		4
	3 231	6 534	4 596	9 298

(9) Interest payments and similar costs

	2009 LVL	2008 IDMIL	2009 13 Off	2008 I DIOIR
Interest payments		925		1 316
Losses from foreign currency exchange rate fluctuations	409		582
Contractual penalties and fines		10		14
Employees' leisure and other costs not connected with operating activities	2 006	5 544	2 855	7 889
	2 415	6 479	3 437	9 219

(10) Other taxes

2009 2008 2009 LVL LVL BUR Real estate tax 1 091 913 1 552 1 091 913 1552
2008 BOR 1 299			1 299

(11) Intangible assets

	Concessions, patents, licenses, trade marks and similar rights	Total	Concessions, patents, licenses, trade marks and similar rights	Total
	LVL	LVL	13.00 R	BUR
Initial value
31.12.2008	720	720	1 024	1 024
Purchased
Disposed
30.09.2009	720	720	1 024	1 024
Accrued depreciation
31.12.2008	698	698	993	993
Calculated depreciation	ાર	15	22	22
Depreciation of excluded investments
30.09.2009	713	713	1 015	1 015
Book value as at 31.12.2008	22	22	31	31
Book value as at 30.09.2009	7	7	9	9

(12) Report on movement of fixed assets

	Land. buildings and constructions	Technological equipment and machinery	Other fixed assets	Prepayments for fixed assets	Total
	LVL	IML	LVL	LVL	LVL
Initial value
31 2 2008	255 107	354 427	77 152	149	686 835
Purchased		2 884	5 134		8 018
Transferred			149	(149)
Disposed			(776)		(776)
30.09.2009	255 107	357 311	81 659		694 077
Accrued depreciation
31.12.2008	85 262	247 565	63 727	-	396 554
Calculated depreciation	10 552	35 801	5858		52 211
Depreciation of excluded fixed assets			(776)		(776)
30.09.2009	95 814	283 366	68 809		447 989
Book value as at 31.12.2008	169 845	106 862	13 425	149	290 231
Book value as at 30.09.2009	159 293	73 945	12 850		246 088

As at 30 September 2008, the cadastral value of real estate - land and constructions - was LVL 230 216 As at 30 September 2009, the cadastral value of real estate - land and constructions - was LVL 245 152

	Land, buildings and constructions	Technological equipment and machinery	Other fixed assets	Prepayments for fixed assets	Total
	13101R	BOR	I 30 OFR	13101R	BOR
Initial value
31.12.2008	362 985	504 304	109 778	211	977 278
Purchased		4 104	7 301		11 405
Transferred			211	(211)
Disposed			(1 104)		(1 104)
30.09.2009	362 985	508 408	116 186		987 579
Accrued depreciation
31.12.2008	12 316	352 253	90 675		564 244
Calculated depreciation	15 015	50 941	8 331		74 287
Depreciation of excluded fixed assets			(1 104)		(1 104)
30.09.2009	136 331	403 194	97 902		637 427
Book value as at 31.12.2008	241 669	152 051	19 103	211	413 034
Book value as at 30.09.2009	226 654	105 214	18 284	-	320 11-2

As at 30 September 2008, the cadastral value of real estate - land and constructions - was EUR 327 568 As at 30 September 2009, the cadastral value of real estate - land and constructions - was EUR 348 820 JSC "SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA" Interim statement for 9 months of 2009

Notes to the Financial Statements

(13) Other securities and investments

Book value as at 30.09.2009	3 480	4 952
Purchase value as at 30.09.2009	3 480	4 952
Book value as at 30.09.2008	3 480	4 952
Purchase value as at 30.09.2008	3 480	4 952
	LMB	THUR

(14) Ready-made products and goods for sale

	2009 ICVIL,	2008 ICVIL	2009 BOR	2008 13 OFF
Bull semen	357 024	277 835	508 000	395 324
Other goods for sale	4 041	10 075	5 750	14 335
	361 065	287 910	513 750	409 659

Trade receivables (15)

	2009 LVL	2008 ILVIL	2009 13 OR	2008 DIOIR
Accounting value of trade receivables	104 616	92 943	148 855	132 246
Provisions for doubtful trade receivables	(21)	(399)	(30)	(568)
	104 595	92 544	148 825	131 678

Other receivables (16)

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	2009 LVL	2008 LVL	2009 BUR	2008 BIOIR
VAT for received goods and services	920	797	1 310	1 134
Overpayment of taxes		2
Other receivables	1 005	14 405	1 430	20 496
	1 925	15 204	2 740	21 633

(17) Prepaid expenses

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

	2009 LAVL	2008 LMC	2009 BUR	2008 BOR
Advertising costs	152	252	216	359
Insurance	3 569	2 629	5 078	3741
Press subscription	8		11
Other prepaid expenses	270	320	384	455
	3 999	3 201	5 689	4 555

(18)

		2009			2008
	Number	Market price	Amount LVE	Number	Market price	Amount LVL
SEB Lats reserve fund	15 044	1.37110	20 627 20 627
	Number	2009 Market price	Amount BOR	Number	2008 Market price	Amount BiOIR
SEB Lats reserve fund	15 044	1.95090	29 350 29 350			-

Money market fund shares have no guaranteed interest rate. In 2009, the profitability was about 8 %. Exclusion of money market fund shares is carried out at the Company's request.

(19) 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		6 696		7 981
Cash in bank	LVL		64 638		144 994
Cash in bank	FIOR	11 888	8 355
Deposits in credit institutions (with due dates not exceeding 90 days)	LVL		40 000
Deposits in credit institutions (with due dates not exceeding 90 days)	BUR	50 000	35 140
			154 829		152 975

Break-down of cash according to currencies:	2009		2008
		Currency	13 OR	Currency	Total Office
Cash in hand	LVL	6 696	9527	7 981	11 356
Cash in bank	LVIL	64 638	91 972	144 994	206 308
Cash in bank	Eigir		11 888
Deposits in credit institutions (with due dates not exceeding 90 days)	LVL	40 000	56 915
Deposits in credit institutions (with due dates not exceeding 90 days)	BUR		50 000
			220 302		217 664

(20) 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 LAZE	2008 ILMIC	2009 I 3 OIR	2008 BIR
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 alienations, 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 ICML	2008 LWC	2009 13 01 3	2008 BUR
Profit of the reporting period	94 015	125 460	133 770	178 514
Average weighted number of shares during the year	422 440	422 440	422 440	422 440
	0.2.23	0.297	0.317	0.423

(21) Provisions for deferred tax

	2009 LVL	2008 LAVIC	2009 13000R	2008 I 3 OIR
Temporary differences in fixed assets depreciation	88 518	106 205	125 950	151 116
Provisions for vacations	(22 109)	(19 091)	(31 458)	(27 164)
Total temporary differences	66 409	87 114	94 492	123 952
Deferred tax provisions at the beginning of the period	9 961	13 067	14 174	18 293
Increase or decrease
Deferred tax provisions at the end of the period	9 961	13 067	14 174	18 593

(22) Taxes and social insurance payments

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Tax type	Balance as at 31.12.2008	Calculated in 2009	Paid in 2008	Balance as at 30.09.2009
	LVL	LVL	LVL	LVL
Corporate income tax	(2 826)	12 088	(9 262)
Value added tax	8 090	77 381	(76 731)	8 740
Social insurance contributions	6 954	68 255	(68 205)	7 004
Personal income tax	3 903	36 457	(36 456)	3 904
Real estate tax		1 091	(1 091)
Nature resource tax	21	ર્ણ રિ	(65)	21
Business risk duty	11 16 158	98 195 435	(98) (191 908)	11 19 680
Including:	2008			2009
	LVL			LVL
Tax overpaid	(2 826)
Tax due	18 979			19 680
Tax type	Balance as at 31.12.2008	Calculated in 2009	Paid in 2009	Balance as at 30.09.2009
	I 31 OIR	TBI OFF	BIOIR	I 3 BIR
Corporate income tax	(4 021)	17 200	(13 179)
Value added tax	11 511	110 103	(109 178)	12 436
Social insurance contributions	9 895	97 118	(97 047)	9 966
Personal income tax	5552	51 875	(51 872)	ર 555
Real estate tax		1 552	(1 552)
Nature resource tax	30	92	(92)	30
Business risk duty	16	139	(139)	16
	22 983	278 079	(273 059)	28 003
Including:	2008 13 OR			2009 EUR
Tax overpaid	(4 021)
Tax due	27 004			28 003
Accrued liabilities (23)
	2009 LVL	2008 LVL	2009 BUR	2008 BOR
Vacation reserve	22 109	19 091	31 458	27 164
	22 109	19 091	31 458	27 164

(24) Number of persons employed by the Company

	2009	2008
Average number of persons employed during the reporting year

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

	2009 LVL	2008 LVL	2009 13 ORR	2008 E UR
Council Members' salaries for work, including state social insurance contributions	4 991	4 599	7 102	6 544
Board Members' salaries for work, including state social insurance contributions	21 276	18 224	30 273	25 930
Total remuneration to management members	26 267	22 823	37 375	32 474

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 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.

Report on Management Liability

According to the information being at our disposal, the Financial Statement for nine months of the 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 mākslīgās apsēklošanas stacija" assets, liabilities, financial condition and profit.

No interim management report enclosed since there have been no significant changes against the former interim management report.

Interim statements for 9 months of 2009 have not been audited by Sworn Auditor.

Nils Ivars Feodorovs

Chairman of the Board

Sarmīte Arcimoviča

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

Valda Mālniece

Member of the Board, Head of Financial and Accounting Department

25 November 2009