Institut IGH d.d. — Management Reports 2013

Oct 31, 2013

Institut IGH d.d.

Janka Rakuše 1, 10000 Zagreb, CROATIA Tel: +385 1 6125 125, Fax: +385 1 6125 401, igh@igh.hr, www.igh.hr

MANAGEMENT BOARD REPORT ON BUSINESS RESULTS OF THE INSTITUT IGH AND ITS SUBSIDIARIES IN THE PERIOD FROM 1 JANUARY TO 30 SEPTEMBER 2013

The INSTITUT IGH, d.d., Zagreb, and its subsidiaries, provide professional services in the field of testing, design and project validation, works supervision and project management in the architectural and civil engineering spheres of design, and also conduct scientific research.

Institut IGH d.d. has 18 subsidiary companies providing services either in its core activity or in associated fields of activity, the exception being one subsidiary company that provides services in the field of hotel industry and tourism.

The registered seat of the mother company Institut IGH, d.d. is situated in Zagreb, Janka Rakuše 1, company registration No.: MB 3750272, personal identification No. OIB 79766124714.

A total of 822 persons were employed with the Institut IGH d.d. and its subsidiaries on 30 September 2013.

Supervisory Board and Management Board of Institut IGH, d.d.

The company's Supervisory Board members are:

Franjo Gregorić, President Dušica Kerhač, Member Branko Kincl, Academician, Member Vlatka Rajčić, Member Ante Stojan, Member Vlado Čović, Member Ryvkin Grigory Evseevich, Member

SPLIT 21 000 Matice hrvatske 15 Tel:021/558-666 Fax:021/465-335

RUEKA 51 000 Slavka Tomašića 5 Tel:051/206-100 Fax: 051/206-106

OSIJEK 31 000 Drinska 18 Tel:031/253-101 Fax:031/253-104

VARAŽDIN 42 000 Hallerova aleja 7 Tel:042/210-970, 042/210-722 Fax:042/211-285

DUBROVNIK 20 000 Vukovarska 8 Tel:020/412-489, 020/411-628 Fax:020/412-489

PULA 52 100 Rizzijeva 40 Tel:052/508-220 Fax:052/508-221

KARLOVAC 47 000 Primorska 16 Tel:047/416-987, 047/416-988 Fax:047/416-989

SISAK 44 000 Ferde Hefelea b.b. Tel:044/571-255 Fax:044/571-256

ZADAR 23 000 Dobriše Cesarića 1 Tel:023/220-910. 023/323-299 Fax:023/323-225

Mjerodavni sud: Tigovački sud u Zagrebu,
registarski uložak s matičnim brojem (MBS) 080000959

Temelini kapital 105.668.000,00 kn uplačen u cijelosti
Broj izdanih dienica: 264.170, nominalno Vrijednost dionice 400 kn

MB: 3750272 018: 79766124714 Poslovno banka: Zagrebacka banka d.d. Ziro-ročun
2360000-1101243767
Bevizni ročun kod
Zagrebačke banke d.d. Zagreb SWIFT kod- ZARAHR2X

IBAN: HR7723600001101243767

praf.dr.sc. Jure Radić, predsjednik Uprave eniomin Mezhibovskiy, član Uprave Željko Grzunov, dipl.oec., član Uprave
mr.sc. Željko Štromar, član Uprave mr.sc. Tomislav Alpeza, član Uprave

Nadzorni odbor: dr. sc. Franjo Gregorić, predsjednik

The Company's Management Board members are:

Jure Radić, President Veniamin Mezhibovskiy, Member Željko Štromar, Member Željko Grzunov, Member Tomislav Alpeza, Member

Share capital

The Company's share capital amounts to HRK 105,668,000, and consists of 264.170 ordinary shares mark IGH-R-A, nominal value of 400 HRK.

Business results of the Institut IGH d.d. and the Institut IGH d.d. Group in the period from 1 January to 30 September 2013

In the first half-year, the institut IGH d.d. realized the total non-consolidated revenues of HRK 196,836,393 which is a 4.9% decrease with respect to the same period last year. At the same time, the company significantly reduced its operating expenses and the salaries were lowered by 12.63% at the half-year nonconsolidated level, while other material costs were reduced by 18.01%. Therefore, the INSTITUT IGH d.d. realized the operating profit of HRK 15.260.140 at the nonconsolidated level but, considering the fact that the full amount of interest is still being charged to the company, and will be charged until the end of the prebankruptcy settlement procedure, the INSTITUT IGH d.d. realized in the period from 1 January to 30 September 2013 the loss of HRK 11.819.009 at the non-consolidated level, unlike the same period last year when the loss of HRK 46.449.213 was announced.

At the consolidated level, the company realized the total revenue of HRK 227.830.349, which is by 11.74% lower when compared to the same period last year. This is a result of integral restructuring of group members whose negative effects on the core activity the mother company strived to minimize. Consolidated revenues in the third quarter amounted to HRK 67,026,474 and were lower by 29.03 percent if compared to the total revenues realized over the same period last year. The restructuring process was continued at the consolidated level as well and, in

this respect, significant savings were made in the area of operating expenses. Consequently, salary costs were reduced by 18.55% when compared to the same period last year, while material costs were reduced by 30.32% with respect to the same period last year. At the consolidated level, the company also realized the operating profit of HRK 15,134,486 but, considering the fact that the full amount of interest is charged and will be charged to the company until the end of the prebankruptcy settlement procedure, the company announced loss at the consolidated level. This loss was considerably reduced in the period from 1 January to 30 September 2013 when it amounted to HRK 35,242,133, while the corresponding loss amounted to HRK 62,380,764 in the same period last year.

The company places a particular emphasis on the fact that, on the non-consolidated level, it realized in the first half-year the EBITDA in the amount of HRK 23,955,891 (financial revenue of the company excluded), while the EBITDA at the consolidated level amounted to HRK 17.953.894 (financial revenue of the company also excluded). This result is a confirmation of strong business operations of the mother company and the group, and of considerable potential for continuation of business activity and growth once the company is restructured through the pre-bankruptcy settlement.

INSTITUT IGH d.d. points out that on 17 May 2013 the company submitted to the Financial Agency, Regional Centre - Zagreb, its Proposal for the Start of the Regular Pre-Bankruptcy Settlement Procedure pursuant to Article 39 of the Act on Financial Operations and Pre-Bankruptcy Settlement (OG No. 108/12 and 114/12) for reasons specified in Art. 16. Par. 2. of the Act, together with the Proposal for Determination of Provisional Measures in compliance with Art. 48, Par. 3 of the Act.

On 10 June 2013, the Settlement Council reached the Decision (Class: UP-I/110/07/13-01/4279, Reg.No: 04-06-13-4279-39) about the start of the prebankruptcy settlement procedure over the issuer as debtor.

The hearing for the determination of claims was held on 24 July 2013 and FINA defined the creditors' claims by its Decision of 26 July 2013 Reg. No: 04-06-13-4279-562, class: UP-I/110/07/13-01/4279.

The hearing for voting was held on 6 September 2013 and, after the vote, the financial restructuring plan was accepted by the necessary majority of votes.

On 10 September 2013, the Settlement Council adopted the Decision (Class: UP-I/110/07/13-01/4279, Reg. No.: 04-06-13-4279-669), and on 15 October 2013 the Decision on Error Correction (Class: UP-I/110/07/13-01/4279, Reg. No.: 04-06-13-4279-712) by which the Council accepted the modified plan for financial restructuring of the Company. The Decision has become operative and so the proposal was submitted on 21 October 2013 to the Commercial Court - Zagreb for conclusion of the pre-bankruptcy settlement.

Business results achieved at the non-consolidated and consolidated levels until the end of the third quarter on the business year of 2013, especially when taking into account the approved financial restructuring model and pre-bankruptcy settlement proposal, point to the sustainability and profitability of the company's core activity. The company is completing the process of restructuring and optimization of operating expenses at a much faster rate than proposed in the adopted financial restructuring model, which resulted in the double-digit reduction of business expenses, especially with regard to material expenses and salaries. On the day of this report, the company has contracts in progress in the amount of HRK 455 million.

Through finalisation of the pre-bankruptcy settlement procedure and continued operative restructuring activities, the Company is making its best efforts to create proper conditions for successful continuation of work, and for realization of EBITDA margins and total revenues in full accordance with the Company's publiclyannounced five-year business plan.

Zagreb, 31 October 2013

On behalf of Management Board of Institut IGH d.d.:

Prof. Jure Radić, PhD CE President of Management Board

Institut IGH d.d.

Janka Rakuše 1, 10000 Zagreb, CROATIA Tel: +385 1 6125 125, Fax: +385 1 6125 401, igh@igh.hr, www.igh.hr

STATEMENT OF MANAGEMENT BOARD ON THE RESPONSIBILITY FOR PREPARING FINANCIAL REPORTS FOR THE INSTITUT IGH, JSC

The Company's Management Board has to ensure that the INSTITUT IGH d.d. financial reports for the third quarter of 2013 are prepared in accordance with the Accountancy Law (Official Gazette 146/05) and in keeping with international accounting standards (Official Gazette 136/09, 08/10, 27/10, 65/10, 120/10, 58/11, 140/11) issued by the International Accounting Standards Board (IASB), so that these documents provide a true and unbiased picture of the Company's financial standing, business results, change in capital, and cash flow for the period under consideration.

After making due enquiries, the Management Board has a reasonable expectation that the Company has adequate resources to continue operation in the foreseeable future. Accordingly, the Management Board has prepared its financial reports under assumption that the Company will continue to operate for an unlimited period of time.

During preparation of financial reports, the Management Board is responsible:

• for the selection and, thereafter, for consistent use of appropriate accounting policies;
• for giving reasonable and sensible assessments and estimates;
• for applying valid financial reporting standards and for making public and explaining every materially significant discrepancy discovered in financial reports;
• for preparing financial reports under assumption of an unlimited period of operation, except in cases when such assumption is inappropriate.

The Management Board is responsible for keeping proper accountancy records that will depict, to an acceptable level of accuracy, the financial standing and business results of the Company, in full compliance with the Accountancy Law and international accounting standards issued by the International Accounting Standards Board (IASB). The Management Board is also responsible for protecting and safeguarding the Company's assets, and hence for undertaking every measure it deems necessary to prevent and discover cases of fraud and other illegal activity.

Signed on behalf of the Management Board:

Prof. Jure Radić, Ph.D. (Civ. Eng.), President of Management Board

Željko Grzunov, B.Econ., Management Board Member

Institut IGH, d.d. Zagreb Janka Rakuše 1 10000 Zagreb

30 October 2013

.
Mjerodavni sud: .
Trgovački sud u Zagrebu, registarski uložak iotičnim brojem (MBS) 080000959

Temelini kapital 105.668.000,00 kn uplaćen u cijelosti Broj izdanih dionica 264.170, nominalne
Vrijednost dionice 400 kn

018: 79766124714 Poslovno banka: Zagrebacka banka d.d. Tučun 210-10001
2360000-1101243767
Devizni račun kod
Zagrebačke banke d.d. Zagreb
SWiFT kod: ZABAHR2X

IBAN: HR7723600001101243767

M8: 3750272

oref dr.sr. Jure Radić, predsjednik Uprave Veniamin Mezhibovskiy, član Uprave
Željko Grzunov, dipl.oec., član Uprave
mr.sc. Željko Štromar, član Uprave mr.sc. Tomislav Alpezo, član Uprave

05

ladzomi odbor: dr. sc. Franto Gregurić, predsjednik

SPLIT 21 000 Matice hrvatske 15 Tel:021/558-666 Fax:021/465-335

RIJEKA 51 000 Slavka Tomašića 5 Tel: 051/206-100 Fax:051/206-106

OSIJEK 31 000 Drinska 18 Tel:031/253-101 Fax:031/253-104

VARAŽDIN 42 000 Hallerova aleja 7 Tel:042/210-970, 042/210-722 Fax: 042/211-285

DUBROVNIK 20 000 Vukovarska 8 Tel:020/412-489, 020/411-628 Fax:020/412-489

PULA 52 100 Rizzijeva 40 Tel:052/508-220 Fax:052/508-221

KARLOVAC 47 000 Primorska 16 Tel:047/416-987. 047/416-988 Fax:047/416-989

SISAK 44 000 Ferde Hefelea b.b. Tel: 044/571-255 Fax:044/571-256

ZADAR 23 000 Dobriše Cesarića 1 Tel:023/220-910, 023/323-299 Fax:023/323-225

Attachment 1.
Reporting period:		01.01.2013	do		30.09.2013
				Quarterly financial statement of the entrepreneur - TFI-POD
Tax number (MB):	03750272
Company registration number (MBS):	80000959
Personal identification number (OIB):	79766124714 Issuing company: INSTITUT IGH D.D.
Postal code and place:	10000		ZAGREB
Street and house number: JANKA RAKUŠE 1
E-mail adress: jgh@igh.hr
	Internet adress: http://www.institutigh.com
unicipality/city code and name:	ZAGREB 133
County code and name:	GRAD ZAGREB 21				Number of employees (quarter end)	672
Consolidated report:	NO				NKD code:	7219
pmpanies of the consolidation subject (according to IFRS			Seat:		MB:
Bookkeeping service:
	Contact person: SPINDERK JADRANKA
Telephone: 01 6125 444	(please enter only contact person's family name and name)	the contract of the contract of the		Telefaks: 01 6125 404
E-mail adress: igh@igh.hr
Family name and name: prof. dr. JURE RADIĆ, dipl. ing. građ., Željko Grzunov, dipl. oec.	(person authorized to represent the company)
Documents to be published: and notes to financial statements	2. Statement of persons responsible for the drawing-up of financial statements 3. Report of the Management Board on the Company Status			1. Financial statements (balance sheet, profit and loss statement, cash flow statement, statement of changes in equity,
	ogre.	M.P.		(signature of the person authorized to represent the company)

BALANCE SHEET as of 30.09.2013.

$\hat{\rho}$

INSTITUT IGH D.D.
Position	AOP	Previous period	Current period
$\mathbf{1}$	$\overline{2}$	3	4
A) RECEIVABLES FOR SUBSCRIBED AND NON - PAID CAPITAL	001		614.555.960
B) LONG - TERM ASSETS (003+010+020+029+033)	002	615.653.014 6.122.867	5.895.787
I. INTANGIBLE ASSETS (004 to 009)	003 004	$\mathbf{0}$	$\mathbf 0$
1. Assets development 2. Concessions, patents, licence fees, merchandise and service brands, software and other rights	005	3.529.440	2.572.841
3. Goodwill	006	0	0
4. Prepayments for purchase of intangible assets	007	$\mathbf 0$	0
5. Intangible assets in preparation	008	2.593.427	3.322.946
6. Other intangible assets	009	$\Omega$	$\mathbf 0$
II. TANGIBLE ASSETS (011 to 019)	010	384.543.616	377.952.106
1. Land	011	106.777.588	106.777.588
2. Buildings	012	188.949.216	181.825.590
3. Plant and equipment	013	822.158	724.581
4. Instuments, plant inventories and transportation assets	014	1.425.935	1.157.202
5. Biological assets	015	$\mathbf 0$	$\mathbf 0$
6. Prepayments for tangible assets	016	24.080	231.950
7. Tangible assets in preparation	017	29.518.535	30.209.091
8. Other material assets	018	303.336	303.336
9. Investment in buildings	019	56.722.768	56.722.768
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020 021	222.831.971 166.046.942	228.087.284 172.286.600
1. Shares (stocks) in related parties	022	39.991.807	40.032.207
2. Loans given to related parties 3. Participating interests (shares)	023	0	0
4. Loans to entrepreneurs in whom the entity hold participating interests	024	$\Omega$	$\bf{0}$
5. Investment in securities	025	$\Omega$	$\mathbf 0$
6. Loans, deposits and similar assets	026	1.092.825	1.079.678
7. Other long - term financial assets	027	15.700.397	14.688.799
8. Investments accounted by equity method	028	C	$\mathbf 0$
IV. RECEIVABLES (030 to 032)	029	2.154.560	2.620.783
1. Receivables from related parties	030	0	$\mathbf 0$
2. Receivables based on trade loans	031	2.154.560	2.620.783
3. Other receivables	032	0	$\bf{0}$
V. DEFERRED TAX ASSETS	033	$\mathbf 0$	$\mathbf 0$
C) SHORT TERMS ASSETS (035+043+050+058)	034	228.566.151	234.829.050
I. INVENTORIES (036 to 042)	035	4.274.005	3.462.590
1. Row material	036	$\Omega$	$\mathbf 0$
2. Work in progress	037 038	247.493 2.646.935	247.493 2.646.935
3. Finished goods	039	1.379.577	568.162
4. Merchandise 5. Prepayments for inventories	040	0	0
6. Long - term assets held for sale	041	$\mathbf 0$	$\mathbf 0$
7. Biological assets	042	$\overline{0}$	$\mathbf 0$
II. RECEIVABLES (044 to 049)	043	133.661.758	133.378.381
1. Receivables from related parties	044	18.336.501	2.685.237
2. Accounts receivable	045	68.139.070	85.461.976
3. Receivables from participating entrepreneurs	046	146.963	146.963
4. Receivables from employees and shareholders	047	775.907	758.190
5. Receivables from government and other institutions	048	5.515.259	1.660.254
6. Other receivables	049	40.748.058	42.665.761
III. SHORT - TERM FINANCIAL ASSETS (051 to 057)	050	89.817.710	97.315.119
1. Shares (stocks) in related parties	051	0	0
2. Loans given to related parties	052	11.608.421	15.694.139
3. Participating interests (shares)	053	$\Omega$	0 75.277.036
4. Loans to entrepreneurs in whom the entity hold participating interests	054 055	72.441.725	C
5. Investment in securities	056	5.767.564	6.339.451
6. Loans, deposits and similar assets 7. Other financial assets	057	$\mathbf{0}$	4.493
IV. CASH AT BANK AND IN CASHIER	058	812.678	672.960
D) PREPAID EXPENSES AND ACCRUED INCOME	059	3.387.336	433.256
E) TOTAL ASSETS (001+002+034+059)	060	847.606.501	849.818.266
F) OFF-BALANCE SHEET NOTES	061	95.998.011	74.373.641

LIABILITIES AND CAPITAL
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	107.892.190	96.471.883
I. SUBSCRIBED CAPITAL	063	105.668.000	105.668.000
II. CAPITAL RESERVES	064	52.011.040	0
III. RESERVES FROM PROFIT (066+067-068+069+070)	065	8.068.491	$\mathbf 0$
1. Reserves prescribed by law	066	3.171.600
2. Reserves for treasury stocks	067	6.343.200	1.446.309
3. Treasury stocks and shares (deduction)	068	1.446.309	1.446.309
4. Statutory reserves	069	$\Omega$	$\mathbf 0$
5. Other reserves	070	$\overline{0}$	$\overline{0}$
IV. REVALUATION RESERVES	071	161.382.667	161.382.667
V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074)	072	305.182.937	-158.759.775
1. Retained earnings	073	305.182.937	398.702
2. Accumulated loss	074	$\Omega$	159.158.477
VI. PROFIT / LOSS FOR THE CURRENT YEAR (076-077)	075	-524.420.945	$-11.819.009$
1. Profit for the current year	076	$\Omega$
2. Loss for the current year	077	524.420.945	11.819.009
VII. MINORITY INTEREST	078	0	0
B) PROVISIONS (080 to 082)	079	14.826.843	13.674.663
1. Provisions for pensions, severance pay and similar liabilities	080	1.550.087	1.550.087
2. Reserves for tax liabilities	081	$\mathbf 0$	$\Omega$
3. Other reserves	082	13.276.756	12.124.576
C) LONG TERM LIABILITIES (084 to 092)	083	260.769.741	216.018.470
1. Liabilities to related parties	084	$\Omega$	0
2. Liabilities for loans, deposits etc.	085	$\mathbf 0$	$\mathbf 0$
3. Liabilities to banks and other financial institutions	086	142.879.410	107.572.263
4. Liabilities for received prepayments	087	$\mathbf 0$	$\mathbf 0$
5. Accounts payable	088	245.600	93.309
6. Liabilities arising from debt securities	089	67.910.616	68.504.337
7. Liabilities to entrepreneurs in whom the entity holds participating interests	090		0
8. Other long-term liabilities	091	9.885.554	$\Omega$
9. Deferred tax liability	092	39.848.561	39.848.561
D) SHORT - TERM LIABILITIES (094 to 105)	093	456.400.328	505.768.646
1. Liabilities to related parties	094	1.657.261	1.501.848
2. Liabilities for loans, deposits etc.	095	7.542.636	3.658.034
3. Liabilities to banks and other financial institutions	096	266.904.025	297.877.117
4. Liabilities for received prepayments	097	12.859.124	11.923.493
5. Accounts payable	098	94.880.206	92.401.994
6. Liabilities arising from debt securities	099	7.545.624	7.611.593
7. Liabilities to enterpreneurs in whom the entity holds participating interests	100	$\Omega$	$\mathbf 0$
8. Liabilities to employees	101	14.600.048	15.156.945
9. Liabilities for taxes, contributions and similar fees	102	18.310.027	32.704.222
10. Liabilities to share - holders	103	418.051	0
11. Liabilities for long term assets held for sale	104	0	$\mathbf 0$
12. Other short - term liabilities	105	31.683.326	42.933.400
E) DEFERRED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	7.717.399	17.884.604
F) TOTAL CAPITAL AND LIABILITIES (062+079+083+093+106)	107	847.606.501	849.818.266
	108	95.998.011	74.373.641
G) OFF-BALANCE SHEET NOTES APPENDIX TO BALANCE SHEET (only for consolidated financial statements)
A) CAPITAL AND RESERVES	109
1. Attributed to equity holders of parent company
2. Attributed to minority interests	110

PROFIT AND LOSS ACCOUNT
for period 01.01.2013. to 30.09.2013.

portou 01.01.2010. to 00.00.2010. INSTITUT IGH D.D.
Position	AOP		Previous period		Current period
		Cummulative	Periodical	Cummulative	Periodical
1	$\overline{2}$	3	4	5	6
I. OPERATING REVENUES (112+113)	111	189.351.131	62.157.566	185.923.527	51.003.886
1. Sales revenues	112	180.088.219	58.110.667	177.154.606	49.742.791
2. Other operating revenues	113	9.262.912	4.046.899	8.768.921	1.261.095
II. OPERATNG EXPENSES (115+116+120+124+125+126+129+130)	114	215.261.133	87.512.060	170.663.387	53.145.072
1. Changes in the value of work in progress and finished goods	115
2. Material costs (117 to 119)	116	63.913.578	20.579.509	52.398.378	16.947.206
a) Raw material and material costs	117	8.926.570	3.100.142	8.695.751	2.545.651
b) Costs of goods sold	118			811.415	$\bf{0}$
c) Other external costs 3. Staff costs (121 to 123)	119	54.987.008	17.479.367	42.891.212	14.401.555
a) Net salaries and wages	120	89.170.590	27.922.432	77.907.430	25.198.677
b) Costs for taxes and contributions from salaries	121	50.788.212	16.031.903	44.716.771	14.278.331
c) Contributions on gross salaries	122	25.875.839	8.159.092	22.793.650	7.550.947
4. Depreciation	123	12.506.539	3.731.437	10.397.009	3.369.399
5. Other costs	124	10.064.588	3.136.583	8.515.749	2.838.583
6. Impairment (127+128)	125 126	29.633.745	15.335.835	20.993.508	5.972.769
a) Impairment of long-term assets (excluding financial assets)		19.276.323	19.027.413 $\mathbf 0$	8.504.672	1.962.588
b) Impairment of short-term assets (excluding financial assets)	127	$\mathbf 0$		0	$\Omega$
7. Provisions	128	19.276.323	19.027.413	8.504.672	1.962.588
8. Other operating expenses	129	1.064.969	1.064.969	232.879	94.407
III. FINANCIAL INCOME (132 to 136)	130	2.137.340	445.319	2.110.771	130.842
1. Interest income, foreign exchange gains, dividends and similar income from related	131	17.672.634	11.196.829	10.913.866	1.700.229
	132	4.547.832	1.648.109	5.076.123	1.691.153
2. Interest income, foreign exchange gains, dividends and similar income from non-related 3. Share in income from affiliated entrepreneurs and participating interests	133	9.507.784	7.282.886	4.883.738	0
4. Unrealized gains (income) from financial assets	134	3.378.429	2.223.989	0	$\mathbf 0$
5. Other financial income	135			$\mathbf 0$	$\mathbf 0$
IV. FINANCIAL EXPENSES (138 to 141)	136	238.589	41.845	954.005	9.076
1. Interest expenses, foreign exchange losses and similar expenses from related parties	137	36.992.047	13.047.374	37.992.015	16.462.288
2. Interest expenses, foreign exchange losses and similar expenses from non - related	138	159.829	24.841	70.094	19.587
3. Unrealized losses (expenses) on financial assets	139 140	35.635.057	12.341.887	37.698.095	16.420.542
4. Other financial expenses	141	1.197.161	680.646	0 223.826
V. INCOME FROM INVESTMENT SHARE IN PROFIT OF ASSOCIATED ENTREPRENEURS	142	$\bf{0}$	0	0	22.159
VI. LOSS FROM INVESTMENT SHARE IN LOSS OF ASSOCIATED ENTREPRENEURS	143	$\mathbf{0}$	0	0	0 $\mathbf 0$
VII. EXTRAORDINARY - OTHER INCOME	144	0	0	$\mathbf 0$	$\mathbf 0$
VIII. EXTRAORDINARY - OTHER EXPENSES	145	$\mathbf 0$		$\Omega$
IX. TOTAL INCOME (111+131+142 + 144)	146	207.023.765	73.354.395	196.837.393	52.704.115
X. TOTAL EXPENSES (114+137+143 + 145)	147	252.253.180	100.559.434	208.655.402	69.607.360
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	$-45.229.415$	-27.205.039	$-11.818.009$	-16.903.245
1. Profit before taxation (146-147)	149		$\Omega$	$\mathbf 0$	0
2. Loss before taxation (147-146)	150	45.229.415	27.205.039	11.818.009	16.903.245
XII. PROFIT TAX	151	1.219.798
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	-46.449.213	$-27.205.039$	$-11.818.009$	-16.903.245
1. Profit for the period(149-151)	153	$\mathbf 0$	$\mathbf 0$	$\mathbf 0$
2. Loss for the period (151-148)	154	46.449.213	27.205.039	11.818.009	16.903.245
APPENDIX to Profit and Loss Account (only for consolidated financial statements)
XIV. PROFIT OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company	155
2. Attributed to minority interests	156
STATEMENT OF COMPREHENSIVE INCOME (IFRS)
I. PROFIT OR LOSS FOR THE PERIOD (= 152)	157	$-46.449.213$	-27.205.039	$-11.818.009$	$-16.903.245$
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX(159 to 165)	158	$\bf{0}$	$\circ$	0	0
1. Exchange differences on translation of foreign operations	159	$\bf{0}$	0	0	0
2. Movements in revaluation reserves of long-term tangible and intangible assets	160	0	0	0	$\pmb{0}$
3. Profit or loss from revaluation of financial assets available for sale	161	$\mathbf 0$	0	0	0
4. Gains or losses on efficient cash flow hedging	162	0	0	$\pmb{0}$	0
5. Gains or losses on efficient hedge of a net investment in foreign countries	163	0	$\mathbf 0$	$\mathbf 0$	0
6. Share in other comprehensive income / loss of associated companies	164	0	$\mathbf 0$	$\bf{0}$	0
7. Actuarial gains / losses on defined benefit plans	165	0	$\mathbf 0$	$\bf{0}$	0
III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	166	$\mathbf 0$	$\mathbf{0}$	$\mathbf 0$	0
IV. NET OTHER COMPREHENSIVE INCOME/ LOSS FOR THE PERIOD (158-166)	167	0	0	0	$\mathbf 0$
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD(157+167)	168	$-46.449.213$	-27.205.039	$-11.818.009$	$-16.903.245$
APPENDIX to Statement of comprehensive income (only for consolidated financial statements) VI. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company	169
2. Attributed to minority interests	170

STATEMENT OF CASH FLOWS - Indirect method period 01.01.2013. to 30.09.2013.

Legal entity : INSTITUT IGH D.D.
Position	AOP	Previous period	Current period
$\mathbf{1}$	$\overline{\mathbf{2}}$	3	4
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax	001	$-45.229.415$	-11.819.009
2. Depreciation	002	10.064.588	8.515.749
3. Increase in short-term liabilities	003	$\Omega$	52.430.432
4. Decrease in short term receivables	004	O
5. Decrease in inventories	005	23.507.482	811.415
6. Other cash flow increases	006	107.596.731
I. Total increase in cash flow from operating activities (001 to 006)	007	95.939.386	49.938.587
1. Decrease in short - term liabilities	008	148.918.286
2. Insrease in short - term receivables	009	0	2.783.230
3. Increase in inventories	010	0
4. Other cash flow decreases	011	0	33.129.115
II. Total decrease in cash flow from operating activities (008 to 011)	012	148.918.286	35.912.345
A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (007-012)	013	0	14.026.242
A2) NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	52.978.900
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash flow from sale of long - term tangible and intangible assets	015	279.610	413.716
2. Cash inflows from sale of equity and debt financial instruments	016	0	2.840.209
3. Interest receipts	017	699.523	328.716
4. Dividend receipts	018	0
5. Other cash inflows from investing activities	019	358.860	5.271.448
III. Total cash inflows from investing activities(015 to 019)	020	1.337.993	8.854.089
1. Cash outflows for purchase of long - term tangible and intangible assets	021	3.897.289	1.079.796
2. Cash outflows for purchase of equity and debt financial instruments	022	4.187.209	8.162.661
3. Other cash outflows from investing activities	023	75.991.343	2.961.613
IV. Total cash outflows from investing activities (021 to 023)	024	84.075.841	12.204.070
B1) NET INCREASE OF CASH FLOW FROM INVESTING ACTIVITIES(020-024)	025
B2) NET DECREASE OF CASH FLOW FROM INVESTING ACTIVITIES(024-020)	026
CASH FLOW FROM FINANCING ACTIVITIES		82.737.848	3.349.981
1. Cash receipts from issuance of equity and debt financial instruments
2. Cash inflows from loans, debentures, credits and other borrowings	027	155.770.260
3. Other cash inflows from financing activities	028	166.031.068	2.106.625
V. Total cash inflows from financing activities (027 to 029)	029	0
1. Cash outflows for repayment of loans and bonds	030	321.801.328	2.106.625
2. Dividends paid	031	195.084.768	12.819.383
	032	0
3. Cash outflows for finance lease	033	449.954	103.221
4. Cash outflows for purchase of own stocks	034	0	0
5. Other cash outflows from financing activities	035
VI. Total cash outflows from financing activities (031 do 035)	036	195.534.722	12.922.604
C1) NET INCREASE OF CASH FLOW FROM FINANCING ACTIVITIES (030-036)	037	126.266.606
C2) NET DECREASE OF CASH FLOW FROM FINANCING ACTIVITIES (036-030)	038		10.815.979
Total increases of cash flows $(013 - 014 + 025 - 026 + 037 - 038)$	039	$\Omega$
Total decreases of cash flows $(014 - 013 + 026 - 025 + 038 - 037)$	040	9.450.142	139.718
Cash and cash equivalents at the beginning of period	041	12.942.441	812.678
Increase in cash and cash equivalents	042	$\Omega$
Decrease in cash and cash equivalents	043	9.450.142	139.718
Cash and cash equivalents at the end of period	044	3.492.299	672.960

T FQU $\leq$ VGES	0.201 an na
CHAN
$\frac{\mu}{C}$ AFNT STATEM	1.01.201

from

	AOP	Previous
		year	Current year
ᡪ	2	M	4
1. Subscribed capital	PO0	105.668.000	105.668.000
2. Capital reserves	002	52.011.040	0
3. Reserves from profit	003	8.068.491	0
4. Retained earnings or accumulated loss	DO4	305.182.937	$-158.759.775$
year 5. Profit / loss for the current	005	$-524.420.945$	$-11.819.009$
tangible assets 6. Revaluation of long - term	006	159.394.244	159.394.244
ssets 7. Revaluation of intangible a	007		$\circ$
8. Revaluation of financial assets available for sale	008	1.988.423	1.988.423
9. Other revaluation	009	$\circ$	$\circ$
s (AOP 001 to 009) 10. Total capital and reserve	010	107.892.190	96.471.883
arising from net investments in foreign operations 11. Currency gains and losses	D11
12. Current and deferred taxes (part)	012
13. Cash flow hedging	013
14. Changes in accounting policies	014
rors in prior periods 15. Correction of significant er	015
16. Other changes in capital	016
se in capital (AOP 011 to 016) 17. Total increase or decreas	017	0	0
17 a. Attributed to equity holders of parent company	018
17 b. Attributed to minority interst	019

ltems decreasing the capital are entered with a negative number sign
Data entered under AOP marks 001 to 009 are entered as situation on the Balance Sheet date