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Institut IGH d.d. Management Reports 2014

Feb 18, 2014

2091_10-k_2014-02-18_f1f92295-0433-44e3-8f57-feacb2803ef4.pdf

Management Reports

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Institut IGH d.d.

Janka Rakuše 1, 10000 Zagreb, CROATIA Tel: +385 1 6125 125, Fax: +385 1 6125 401, [email protected], www.igh.hr

MANAGEMENT BOARD REPORT

ON BUSINESS RESULTS OF THE INSTITUT IGH AND ITS

SUBSIDIARIES IN THE PERIOD FROM 1 JANUARY TO 31 DECEMBER 2013

The INSTITUT IGH d.d. submits provisional unaudited non-consolidated and consolidated basic financial reports for the business year of 2013. These basic financial reports do not represent the Company's Consolidated Annual Report in the sense of Article 250b of the Companies Act.

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.

The Institut IGH d.d. has 20 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.

The total of 744 persons were employed with the Institut IGH d.d. and its Fax:023/323-225 subsidiaries on 31 December 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, and Ryvkin Grigory Evseevich, Member

Temelini kapital 105.668.000,00 km uplačen u cijelosti
Braj Izdanih dianica:
264.170, nominalna Vrijednost djonice 400 kn MB: 3750272

OIB: 79766124714

Paslavna banka:
Zagrebacka banka d.d.

2360000-1101243767 .
Devizni račun kod
Zagrebačke banke d.d. Zagreb SWIFT kod- ZARAHRZX IBAN: HR7723600001101243767

prof.dr.sc. Jure Radić, predsjednik Uprave doc. dr. sc. Jelena Bleiziffer, član Uprave
Željko Grzunov, dipl.oec., član Uprave

Nadzorní odbor: dr. sc. Franjo 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 Divkovićeva 2/C Tel:052/508-220 Fax:052/508-221

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

The Company's Management Board members are: Jure Radić, President of the Management Board, Željko Grzunov, Member of the Management Board, and Jelena Bleiziffer, Member of the Management Board.

Share capital

The Company's share capital amounts to HRK 105,668,000, and consists of 264.170 ordinary shares marked IGH-R-A, each with the 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 31 December 2013

In 2013, the Institut IGH d.d. realized the total non-consolidated revenues of HRK 268,657,000, the operating profit prior to depreciation (EBITDA) of HRK 18.9 million, and the net operating loss of HRK 41.0 million which is due to financial operation results, harmonisations of financial assets, and reduction (potential loss) of tangible assets to which liens of creditors that did not participate in the pre-bankruptcy settlement are inscribed.

In fact, the Company instituted on 17 May 2013 the pre-bankruptcy settlement procedure and, on 5 December 2013 the Commercial Court - Zagreb approved by its decision the achievement of the pre-bankruptcy settlement. However, this decision has not become legally valid as on the day of publication of this report. It should be noted that the Institut IGH d.d. presented financial effects of the prebankruptcy settlement with its creditors in its provisional financial reports for 2013.

It should be emphasized that despite the current situation that is quite unfavourable to normal conduct of business activities, the company has realized the income similar to that realized in the previous year of 2012. In addition, the company reduced its operating expenses by 32,6%, and achieved the planned EBITDA in accordance with the Financial and Operational Restructuring Plan.

At the consolidated level, the company realized the revenue of HRK 309.402.000, which is comparable to the revenue realized in 2012 and is the result of

comprehensive restructuring of the group members. The restructuring process is also under way at the consolidated level where significant savings have been made on the side of expenses. Consequently, salary costs were reduced by 17.8% when compared to the same period last year, while material costs were reduced by 31.4% which resulted in the operating profit prior to depreciation (EBITDA) of HRK 21.1 million. The consolidated net operating loss for 2013 amounts to HRK 50.0 million and is primarily due to negative operating results of associated companies, and to reduction (potential loss) of tangible assets to which liens of creditors that did not participate in the INSTITUT IGH d.d. pre-bankruptcy settlement are inscribed.

On the day of 31 December 2013, and despite the fact that the pre-bankruptcy settlement procedure has significantly reduced the company's competitive edge with regard to participation in service contract procurement procedures, the company had contracts in progress in the amount of HRK 380.3 million.

Business results achieved at the non-consolidated and consolidated levels in 2013, together with the accepted model of financial and operational restructuring through the achieved pre-bankruptcy settlement, point to the sustainability and profitability of the company's core activity, which guarantees realization of EBITDA margins in accordance with the Company's publicly-announced five-year business plan.

Zagreb, 17 February 2013

On behalf of the Management Board of Institut IGH d.d.: President of the Management Board Prof. Jure Radić, PhD CE, Member of the Management Board Željko Grzunov, B.Econ.

Institut IGH d.d.

Janka Rakuše 1, 10000 Zagreb, CROATIA Tel: +385 1 6125 125, Fax: +385 1 6125 401, [email protected], 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 year ended 31. December 2013 are prepared in accordance with the Accountancy Law (Official Gazette 146/05) and in keeping with international accounting Slavka Tomašića 5 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 $Fax:051/206-106$ 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 VARAŽDIN 42 000 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; $\bullet$
  • 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). 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 023/323-299 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

14 February 2013

Aliendovni sud .
Trgavački sud u Zagrebu registarski uložal motičnim brojem (MBS) 080000959

amelini kapital 105.668.000,00 kn uplaćen u cijelosti Broj izdanih dionica 264.170, nominaln tjednost dionica 400 kn MR-3750272 018: 79766124714 Paslovno bonka Zagrebacka banka d.d. zno-rocun
2360000-1101243767
Devizni ročun kod
Zegrebačke banke d.d. Zagreb SWIFT kod: ZABAHR23 ISAN: HR7723600001101243767

$\mu d c$

oprava:
prof.dr.sc. Jure Radić, predsjednik Uprave
doc. dr. sc. Jelena Bleiziffer, član Uprave
Željko Grzunov, dipl.oec., član Uprave

$110016$

Nadzarni odbor:

dr. sc. Franjo Gregarić, predsjednik

dionicko

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

RIJEKA 51 000 Tel:051/206-100

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

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 Divkovićeva 2/C Tel:052/508-220 Fax:052/508-221

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

Attachment 1.
Reporting period:
01.01.2013 do 31.12.2013
Quarterly financial statement of the entrepreneur - TFI-POD
Tax number (MB): 03750272
Company registration number
(MBS):
80000959
Personal identification
number (OIB):
Issuing company: INSTITUT IGH D.D.
79766124714
Postal code and place: 10000 ZAGREB
Street and house number: JANKA RAKUŠE 1
E-mail adress: [email protected]
Internet adress: http://www.institutigh.com
unicipality/city code and name: ZAGREB
133
County code and name: GRAD ZAGREB
21
Number of employees 648
Consolidated report: NO (quarter end)
NKD code:
7219
pmpanies of the consolidation subject (according to IFRS Seat: MB:
Bookkeeping service:
Contact person: ŠPINDERK JADRANKA
Telephone: 01 6125 444 (please enter only contact person's family name and name) Telefaks: 01 6125 404
E-mail adress: [email protected]
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
1. Financial statements (balance sheet, profit and loss statement, cash flow statement, statement of changes in equity,
2. Statement of persons responsible for the drawing-up of financial statements
3. Report of the Management Board on the Company Status
05 (signature of the person authorized to represent the company)
Talibois a

BALANCE SHEET

$\overline{a}$

as of 31.12.2013.

as or 31.12.2013.
INSTITUT IGH D.D.
Position AOP Previous period Current period
1 $\overline{2}$ 3 4
A) RECEIVABLES FOR SUBSCRIBED AND NON - PAID CAPITAL
B) LONG - TERM ASSETS (003+010+020+029+033)
001
I. INTANGIBLE ASSETS (004 to 009) 002 615.653.014 656.474.980
1. Assets development 003
004
6.122.867
C
5.415.910
0
2. Concessions, patents, licence fees, merchandise and service brands, software and other rights 005 3.529.440 2.822.483
3. Goodwill 006 O 0
4. Prepayments for purchase of intangible assets 007 C 0
5. Intangible assets in preparation 008 2.593.427 2.593.427
6. Other intangible assets 009 0 0
II. TANGIBLE ASSETS (011 to 019) 010 384.543.616 344.942.993
1. Land 011 106.777.588 103.950.205
2. Buildings 012 188.949.216 158.008.230
3. Plant and equipment 013 822.158 786.416
4. Instuments, plant inventories and transportation assets 014 1.425.935 1.517.140
5. Biological assets 015 0
6. Prepayments for tangible assets 016 24.080 74.599
7. Tangible assets in preparation 017 29.518.535 28.538.115
8. Other material assets 018 303.336 303.336
9. Investment in buildings 019 56.722.768 51.764.952
III. LONG-TERM FINANCIAL ASSETS (021 to 028) 020 222.831.971 303.815.612
1. Shares (stocks) in related parties 021 166.046.942 278.715.624
2. Loans given to related parties 022 39.991.807 17.074.602
3. Participating interests (shares) 023 508.700
4. Loans to entrepreneurs in whom the entity hold participating interests 024 ſ 0
5. Investment in securities 025 0
6. Loans, deposits and similar assets 026 1.092.825 886.814
7. Other long - term financial assets 027 15.700.397 6.629.872
8. Investments accounted by equity method 028 n
IV. RECEIVABLES (030 to 032) 029 2.154.560 2.300.465
1. Receivables from related parties 030
2. Receivables based on trade loans 031 2.154.560 2.300.465
3. Other receivables 032 0 0
V. DEFERRED TAX ASSETS 033 $\Omega$
C) SHORT TERMS ASSETS (035+043+050+058) 034 228.566.151 100.339.263
I. INVENTORIES (036 to 042) 035 4.274.005 1.445.168
1. Row material 036 0
2. Work in progress 037 247.493 247.493
3. Finished goods 038 2.646.935 629.513
4. Merchandise 039 1.379.577 568.162
5. Prepayments for inventories 040 0 $\pmb{0}$
6. Long - term assets held for sale 041 $\Omega$ $\Omega$
7. Biological assets 042 $\overline{0}$
II. RECEIVABLES (044 to 049) 043 133.661.758 85.622.148
1. Receivables from related parties 044 18.336.501 2.977.885
2. Accounts receivable 045 68.139.070 72.217.224
3. Receivables from participating entrepreneurs 046 146.963
4. Receivables from employees and shareholders 047 775.907 689.972
5. Receivables from government and other institutions 048 5.515.259 3.837.752
6. Other receivables 049 40.748.058 5.899.315
III. SHORT - TERM FINANCIAL ASSETS (051 to 057) 050 89.817.710 9.189.839
1. Shares (stocks) in related parties 051
2. Loans given to related parties 052 11.608.421 3.863.649
3. Participating interests (shares) 053 0
4. Loans to entrepreneurs in whom the entity hold participating interests 054 72.441.725 0
5. Investment in securities 055 0
6. Loans, deposits and similar assets 056 5.767.564 5.326.190
7. Other financial assets 057 $\Omega$
IV. CASH AT BANK AND IN CASHIER 058 812.678 4.082.108
D) PREPAID EXPENSES AND ACCRUED INCOME
E) TOTAL ASSETS (001+002+034+059)
059 3.387.336 934.976
060 847.606.501 757.749.219
F) OFF-BALANCE SHEET NOTES 061 95.998.011 49.001.545
LIABILITIES AND CAPITAL
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078) 062 107.892.190 69.072.025
I. SUBSCRIBED CAPITAL 063 105.668.000 105.668.000
II. CAPITAL RESERVES 064 52.011.040
III. RESERVES FROM PROFIT (066+067-068+069+070) 065 8.068.491 23.505.600
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 0 $\Omega$
5. Other reserves 070 $\theta$ 23.505.600
IV. REVALUATION RESERVES 071 161.382.667 139.684.348
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 $-41.026.148$
1. Profit for the current year 076
2. Loss for the current year 077 524.420.945 41.026.148
VII. MINORITY INTEREST 078
B) PROVISIONS (080 to 082) 079 14.826.843 9.703.558
1. Provisions for pensions, severance pay and similar liabilities 080 1.550.087 1.277.055
2. Reserves for tax liabilities 081
3. Other reserves 082 13.276.756 8.426.503
C) LONG TERM LIABILITIES (084 to 092) 083 260.769.741 395.103.158
1. Liabilities to related parties 084 0 1.410.209
2. Liabilities for loans, deposits etc. 085 0
3. Liabilities to banks and other financial institutions 086 142.879.410 303.362.186
4. Liabilities for received prepayments 087 $\Omega$
5. Accounts payable 088 245.600 32.920.835
6. Liabilities arising from debt securities 089 67.910.616
7. Liabilities to entrepreneurs in whom the entity holds participating interests 090 $\Omega$
8. Other long-term liabilities 091 9.885.554 22.488.841
9. Deferred tax liability 092 39.848.561 34.921.087
D) SHORT - TERM LIABILITIES (094 to 105) 093 456.400.328 270.371.759
1. Liabilities to related parties 094 1.657.261 1.638.530
2. Liabilities for loans, deposits etc. 095 7.542.636 356.575
3. Liabilities to banks and other financial institutions 096 266.904.025 110.880.426
4. Liabilities for received prepayments 097 12.859.124 5.562.198
5. Accounts payable 098 94.880.206 34.108.339
6. Liabilities arising from debt securities 099 7.545.624 76.376.430
7. Liabilities to enterpreneurs in whom the entity holds participating interests 100 $\Omega$
8. Liabilities to employees 101 14.600.048 12.262.450
9. Liabilities for taxes, contributions and similar fees 102 18.310.027 11.567.527
10. Liabilities to share - holders 103 418.051 $\Omega$
11. Liabilities for long term assets held for sale 104 0 $\mathbf{0}$
12. Other short - term liabilities 105 31.683.326 17.619.284
E) DEFERRED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD 106 7.717.399 13.498.719
F) TOTAL CAPITAL AND LIABILITIES (062+079+083+093+106) 847.606.501 757.749.219
G) OFF-BALANCE SHEET NOTES 107
APPENDIX TO BALANCE SHEET (only for consolidated financial statements) 108 95.998.011 49.001.545
A) CAPITAL AND RESERVES
1. Attributed to equity holders of parent company
2. Attributed to minority interests 109
110

$\mathcal{M}^{\pm}$ .

$\bar{b}$

PROFIT AND LOSS ACCOUNT for period 01.01.2013. to 31.12.2013.

$\mathbf{z} = \mathbf{z}$ .

$\tilde{a}$

INSTITUT IGH D.D.
Position
AOP Previous period Current period
Cummulative Periodical Cummulative Periodical
1 $\boldsymbol{2}$ 3 4 5 6
OPERATING REVENUES (112+113) 111 250.527.194 61.176.063 268.657.747 82.734.220
1. Sales revenues 112 227.483.421 47.395.202 226.581.092 49.426.486
2. Other operating revenues 113 23.043.773 13.780.861 42.076.655 33.307.734
II. OPERATNG EXPENSES (115+116+120+124+125+126+129+130) 114 740.566.453 525.305.320 290.984.184 120.320.797
1. Changes in the value of work in progress and finished goods 115
2. Material costs (117 to 119) 116 96.985.070 33.071.492 72.891.145 20.492.767
a) Raw material and material costs 117 13.174.525 4.247.955 11.422.784 2.727.033
b) Costs of goods sold 118 $\mathbf{0}$ $\mathbf 0$ 811.415 $\circ$
c) Other external costs 119 83.810.545 28.823.537 60.656.946 17.765.734
3. Staff costs (121 to 123) 120 117.566.192 28.395.602 102.503.484 24.596.054
a) Net salaries and wages 121 67.292.978 16.504.766 59.321.749 14.604.978
b) Costs for taxes and contributions from salaries 122 33.992.386 8.116.547 29.488.794 6.695.144
c) Contributions on gross salaries 123 16.280.828 3.774.289 13.692.941 3.295.932
4. Depreciation 124 13.600.683 3.536.095 11.723.958 3.208.209
5. Other costs 125 48.435.333 18.801.588 29.812.675 8.819.167
6. Impairment (127+128) 126 49.957.417 30.681.094 18.843.168 10.338.496
a) Impairment of long-term assets (excluding financial assets) 127 $\mathbf 0$ $\Omega$ $\epsilon$ $\mathbf 0$
b) Impairment of short-term assets (excluding financial assets) 128 49.957.417 30.681.094 18.843.168 10.338.496
7. Provisions 129 17.245.792 16.180.823 1.474.145 1.241.266
8. Other operating expenses 130 396.775.966 394.638.626 53.735.609 51.624.838
III. FINANCIAL INCOME (132 to 136) 131 16.343.510 1.959.348 24.959.447 14.046.581
1. Interest income, foreign exchange gains, dividends and similar income from related 132 6.268.591 1.720.759 6.040.919 964.796
2. Interest income, foreign exchange gains, dividends and similar income from non-related 133 4.928.213 $\circ$ 6.381.544 1.498.806
3. Share in income from affiliated entrepreneurs and participating interests 134 5.117.043 $\mathbf 0$ 302.980 302.980
4. Unrealized gains (income) from financial assets 135 $\Omega$
5. Other financial income 136 29.663 238.589 12.234.004 11.279.999
IV. FINANCIAL EXPENSES (138 to 141) 137 48.918.234 15.214.569 43.659.158 5.667.143
1. Interest expenses, foreign exchange losses and similar expenses from related parties 138 256.857 97.028 70.094 $\circ$
2. Interest expenses, foreign exchange losses and similar expenses from non - related 139 46.999.850 14.653.175 37.698.095 $\mathbf 0$
3. Unrealized losses (expenses) on financial assets 140 n 0 5.561.803 5.561.803
4. Other financial expenses 141 1.661.527 464.366 329.166 105.340
V. INCOME FROM INVESTMENT SHARE IN PROFIT OF ASSOCIATED ENTREPRENEURS 142 $\Omega$ $\mathbf 0$ $\Omega$
VI. LOSS FROM INVESTMENT SHARE IN LOSS OF ASSOCIATED ENTREPRENEURS 143 Ω 0 0 $\mathbf 0$
VII. EXTRAORDINARY - OTHER INCOME 144 $\mathbf 0$ $\mathbf 0$
VIII. EXTRAORDINARY - OTHER EXPENSES 145 $\mathbf 0$ $\mathbf 0$
IX. TOTAL INCOME (111+131+142 + 144) 146 266.870.704 63.135.411 293.617.194 96.780.801
X. TOTAL EXPENSES (114+137+143 + 145) 147 789.484.687 540.519.889 334.643.342 125.987.940
XI. PROFIT OR LOSS BEFORE TAXATION (146-147) 148 -522.613.983 -477.384.478 $-41.026.148$ -29.207.139
1. Profit before taxation (146-147) 149
2. Loss before taxation (147-146) 150 522.613.983 477.384.478 41.026.148 29.207.139
XII. PROFIT TAX 151 1.806.962 587.164 $\Omega$ $\Omega$
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151) 152 -524.420.945 -477.971.642 $-41.026.148$ -29.207.139
1. Profit for the period (149-151) 153 $\mathbf 0$ $\mathbf 0$
2. Loss for the period (151-148) 154 524.420.945 477.971.642 41.026.148 29.207.139
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 -524.420.945 -477.971.642 $-41.026.148$ $-29.207.139$
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX(159 to 165) 158 137.711.031 137.711.031 $-26.625.793$ $-26.625.793$
1. Exchange differences on translation of foreign operations 159 $\circ$ $\mathsf{o}$
2. Movements in revaluation reserves of long-term tangible and intangible assets 160 142.195.601 142.195.601 $-24.637.370$ -24.637.370
3. Profit or loss from revaluation of financial assets available for sale 161 $-4.484.570$ $-4.484.570$ $-1.988.423$ $-1.988.423$
4. Gains or losses on efficient cash flow hedging 162 0 $\mathbf{O}$
5. Gains or losses on efficient hedge of a net investment in foreign countries 163 $\mathbf 0$ $\overline{0}$ $\circ$
6. Share in other comprehensive income / loss of associated companies 164 $\Omega$ $\mathbf 0$
7. Actuarial gains / losses on defined benefit plans 165
III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD 166 28.439.120 28.439.120 $-5.325.159$ $-5.325.159$
IV. NET OTHER COMPREHENSIVE INCOME/ LOSS FOR THE PERIOD (158-166) 167 109.271.911 109.271.911 $-21.300.634$ $-21.300.634$
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD(157+167) 168 -415.149.034 -368.699.731 $-62.326.782$ -50.507.773
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 31.12.2013.

$\overline{\phantom{a}}$

Legal entity : INSTITUT IGH D.D.
Position AOP Previous
period
Current period
1 $\overline{2}$ 3 4
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax 001 -522.613.984 $-41.026.148$
2. Depreciation 002 13.600.683 11.723.958
3. Increase in short-term liabilities 003
4. Decrease in short term receivables 004 97.300.904 50.491.970
5. Decrease in inventories 005 2.828.837
6. Other cash flow increases 006 427.743.872 173.792.619
I. Total increase in cash flow from operating activities (001 to 006) 007 16.031.475 197.811.236
1. Decrease in short - term liabilities 008 66.807.230 180.247.249
2. Insrease in short - term receivables 009
3. Increase in inventories 010
4. Other cash flow decreases 011
II. Total decrease in cash flow from operating activities (008 to 011) 012 66.807.230 180.247.249
A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (007-012) 013 17.563.987
A2) NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007) 014 50.775.755
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash flow from sale of long - term tangible and intangible assets 015 2.242.687 570.957
2. Cash inflows from sale of equity and debt financial instruments 016 $\Omega$ 2.840.209
3. Interest receipts 017 363.742
4. Dividend receipts 018 0
5. Other cash inflows from investing activities 019 9.051.030 5.271.448
III. Total cash inflows from investing activities(015 to 019) 020 11.293.717 9.046.356
1. Cash outflows for purchase of long - term tangible and intangible assets 021 5.137.528 1.514.127
2. Cash outflows for purchase of equity and debt financial instruments 022 66.000 8.162.661
3. Other cash outflows from investing activities 023 19.698.187 2.820.894
IV. Total cash outflows from investing activities (021 to 023)
B1) NET INCREASE OF CASH FLOW FROM INVESTING ACTIVITIES(020-024) 024 24.901.715 12.497.682
B2) NET DECREASE OF CASH FLOW FROM INVESTING ACTIVITIES(024-020) 025
CASH FLOW FROM FINANCING ACTIVITIES 026 13.607.998 3.451.326
1. Cash receipts from issuance of equity and debt financial instruments
2. Cash inflows from loans, debentures, credits and other borrowings 027 105.925.832
3. Other cash inflows from financing activities 028 37.565.098 2.106.625
V. Total cash inflows from financing activities (027 to 029) 029
030 143.490.930 2.106.625
1. Cash outflows for repayment of loans and bonds 031 80.159.015 12.819.383
2. Dividends paid 032
3. Cash outflows for finance lease 033 254.710 130.473
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 80.413.725 12.949.856
C1) NET INCREASE OF CASH FLOW FROM FINANCING ACTIVITIES (030-036) 037 63.077.205
C2) NET DECREASE OF CASH FLOW FROM FINANCING ACTIVITIES (036-030) 038 0 10.843.231
Total increases of cash flows $(013 - 014 + 025 - 026 + 037 - 038)$ 039 0 3.269.430
Total decreases of cash flows $(014 - 013 + 026 - 025 + 038 - 037)$ 040 1.306.548
Cash and cash equivalents at the beginning of period 041 2.119.226 812.678
Increase in cash and cash equivalents 042 3.269.430
Decrease in cash and cash equivalents 043 1.306.548
Cash and cash equivalents at the end of period 044 812.678 4.082.108

STATEMENT OF CHANGES IN EQUITY
01.01.2013 to 31.12.2013

$\ddot{\phantom{a}}$

from 01.01.2013 $\overline{c}$ 31.12.2013
AOP Previous Current year
year
2 ω 4
1. Subscribed capital POO 105.668.000 105.668.000
2. Capital reserves 002 52.011.040
3. Reserves from profit 8.068.491 23.505.600
4. Retained earnings or accumulated loss 305.182.937 $-158.759.775$
5. Profit / loss for the current year $-524.420.945$ $-41.026.148$
6. Revaluation of long - term tangible assets 159.394.244 139.684.348
7. Revaluation of intangible assets 0 $\circ$
8. Revaluation of financial assets available for sale 1.988.423 O
9. Other revaluation $\circ$
10. Total capital and reserves (AOP 001 to 009) 000000000000000000000000000000000000000 107.892.190 69.072.025
11. Currency gains and losses arising from net investments in foreign operations
(part)
12. Current and deferred taxes
13. Cash flow hedging
14. Changes in accounting policies
15. Correction of significant errors in prior periods
16. Other changes in capital
17. Total increase or decrease in capital (AOP 011 to 016) 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