Siguldas CMAS

Annual / Quarterly Financial Statement • Feb 26, 2010

Joint stock company SIGULDAS _ _ _ CILTSLIETU _ v UN MAKSLIGAS APSEKLOSANAS STACIJA

-

INTERIM STATEMENT for 12 months of 2009

Index ofContents

	Page
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
Report on Management Liability	23

Information on the Company

Company's name	SIGULDAS CILTSLIETU UN MAKSaGAS APSEKL08ANAS 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-2 I 50
Shareholders holding more than 5% ofthe total number of voting shares	SIA "Siguldas miiksllgiis apsek/osanas stacija" (49.8%), registration No. 40003311954
Members ofthe Board	Nils Ivars Feodorovs, Chairman ofthe Board Sarmlte Arcimovica, Member ofthe Boardfrom 20.07.2009 Valda Miilniece, Member ofthe Board Miira Buka, Member ofthe Board until 30.06.2009
Members of the Council	Inita Bedrlte, Chairman ofthe Council Maija Beca, Deputy Chairman ofthe Council Erika Everte, Member ofthe Council So/vita Arcimovica, Member ofthe Council Renia Bejere, Member ofthe Council
Reporting year	01.01.2009 - 31.12.2009
Auditors	Anita Sondore Sworn Auditor Certificate No. 129
	AUDITS A.S., SIA "Piladii", Llgatne rural parish, Cesu district, LV-4108, Latvia Sworn Auditors' Commercial Company's license No. 27

AlanagementRepon

Type of Operations

JSC "Siguldas ciltslietu un rnakslIgas 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 ofCompany's Activities in tbe 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 decrease ofnet turnover was mainly caused by the amendments in the regulation of allocation ofstate'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 ofthe 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 ofprovided 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.

lis Ivars Feodorovs Chairman ofthe Board Member ofthe Board Member ofthe Board

¢</~

Sarmite Arcimovi~a Valda Malniece

Profit or loss account for the period ended 31 December 2009

	Note	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Net sales	3	715477	821463	1018032	1 168836
Changes in stock ofready-made goods and unfinished products	4	27110	22135	38574	31496
Other operating income	5	5944	23919	8458	34033
Costs of materials:		(258985)	(342436)	(368503)	(487243)
a) raw materials and auxiliary costs of materials		(192852)	(235920)	(274404)	(335684)
b) other external costs		(66133)	(106516)	(94099)	(151559)
Personnel costs:	6	(342759)	(316280)	(487703)	(450025)
a) salaries for work		(268228)	(250814)	(381655)	(356876)
b) state social insurance compulsory contributions		(64 181)	(60368)	(91 321)	(85896)
c) other social insurance costs		(10350)	(5098)	(14727)	(7253)
Write-off of assets and values:		(81068)	(72 593)	(115 348)	(103291)
a) depreciation of fixed assets and amortization ofintangible assets		(69578)	(72 166)	(99000)	(102682)
b) write-off of value of current assets above the normal deductions		(11 490)	(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	(8569)	(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	3106	6047	4419
Other taxes	10	(1091)	(913)	(1 552)	(1299)
Tbe profit or loss for tbe year		129096	82878	183687	117925
Equity per 1 sbare (EPS)	21	0.306	0.196	0.435	0.279

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

Chairman ofthe Board Member ofthe Board

~d7t:c?;ne- ⁷

lis Ivars Feodorovs SarmIte Arcimovi~a

(jihd(

Valda MiUniece Member ofthe Board

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	11	2	22	2	31
Fixed assets
Land parcels, buildings and constructions and perennial plantings		155767	169845	221637	241669
Equipment and machinery		62059	106862	88302	152051
Other fixed assets and inventory		15509	13 425	22067	19103
Prepayments for fixed assets			149		211
Fixed assets total	12	233335	290281	332006	413034
Investment properties	13	120000	16245	170745	23114
Biological assets		40729	42704	57952	60762
Long-term financial investments
Other securities and investments	14	3480	3480	4952	4952
Long-term financial investments total		3480	3480	4952	4952
Long-term investments total		397546	352732	565657	501893
Current assets
Stock
Raw materials, basic materials and auxiliary materials		11 773	17422	16752	24789
Ready-made goods and goods for sale	15	299798	265421	426574	377 661
Prepayments for goods		397	1314	565	1869
Stock total		311968	284157	443891	404319
Receivables
Trade receivables	16	82704	79076	117677	112 515
Other receivables	17	8194	3970	11659	5649
Prepaid expenses	18	6072	5897	8639	8390
Receivables total		96970	88943	137975	126554
Short-term financial investments
Other securities and share holding in capitals	19	21 100	5026	30023	7151
Short-term financial investments total		21100	5026	30023	7151
Cash	20	168116	171725	239208	244342
Current assets total		598154	549851	851097	782366
Assets total		995700	902583	1416754	1284259

-

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	601078	601078
Retained earnings:
Retained earnings carried forward from previous years		359638	310555	511 719	441880
Retained earnings ofthe reporting year		129096	82878	183687	117925
Shareholders' equity total		911174	815873	1296484	1160883
Payables
Long-term payables
Deferred tax liabilities	22	5712	9961	8127	14174
Long-term payables total		5712	9961	8127	14174
Short-term payables
Prepayment received from customers		421	573	599	815
Trade payab1es		30887	23182	43949	32985
Taxes and social insurance payments	23	15505	18979	22062	27004
Other payab1es		10 201	11906	14514	16940
Accrued liabilities	24	21800	22109	31019	31458
Short-term payables total		78814	76749	112143	109202
Payabies total		84526	86710	120270	123376
Shareholders' equity and liabilities total		995700	902583	1416754	1284259

Notes on pages 9 to 22 form an integral part of these fmancia1 statements.

Chairman ofthe Board Member ofthe Board

~-C/,J2'~£CF- ~ '

lls Ivars Feodorovs SarrnIte Arcimovi~a

• Valda Malniece Member ofthe Board

Cash .flow statementlor the period ended 31 December 2009

	2009 LVL Note	2008 LVL	2009 EUR	2008 EUR
Cash flow from operating activities
Income from sale of goods and provision of services	853290	926110	1214 122	1317735
Payments to suppliers, employees, other expenses arising from basic operations	(790627)	(836506)	(1124961)	(1 190241)
Other Company's basic income or expenses	9449	30044	13445	42749
Gross cash flow from basic operations	72112	119648	102606	170243
Expenses for tax payments	(14 163)	(13 489)	(20152)	(19193)
Net cash flow from operating activities	57949	106159	82454	151050
Cash flow from investing activities
Purchase of fixed assets and intangible investments	(12611)	(31 980)	(17944)	(45504)
Income from sale offixed assets		6123		8712
Dividends received	440		626
Purchase of securities	(15000)	(5000)	(21343)	(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)		(35802)
Dividends paid	(33795)	(42244)	(48086)	(60 108)
Net cash flow from financing activities
Resnlt of foreign exchange rate fluctuations	(33795)	(67406)	(48086)	(95910)
	(592)	(743)	(841)	(1057)
Increase/decrease of cash and its equivalents	(3609)	32433	(5134)	46147
Cash and its equivalents at the beginning of the period	171725	139292	244342	198195
Cash and its equivalents at the end ofthe period	20 168116	171725	239208	244342

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

" Nils Ivars Feodorovs

~ ~t:~~.7@

SarmIte Arcimovica

"- (!fo<VaIda Malniece

Chairman ofthe Board Member ofthe Board Member ofthe Board

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

	Share capital	Retained earnings	Retained earnings for the reporting year	Shareholders' equity total
	LVL	LVL	LVL	LVL
31.12.2007	422440	278728	74071	775239
Profit for 2007 transferred to retained earnings of previous 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		(33795)		(33795)
Retained earnings for the reporting year			129096	129096
31.12.2009	422440	359638	129096	911174

	Share capital EUR	Retained Retained earnings earnings for the reporting		Shareholders' equity total
		EUR	year EUR	EUR
31.12.2007	601 078	396594	105393	1103065
Profit for 2007 transferred to retained earnings of previous years		105393	(105393)
Dividends for 2007		(60108)		(60108)
Retained earnings for the reporting year			117925	117925
31.12.2008	601078	441880	117925	1160883
Profit for 2008 transferred to retained earnings of previous years		ll7925	(ll7925)
Dividends for 2008		(48086)		(48086)
Retained earnings for the reporting year			183687	183687
31.12.2009	601078	511 719	183687	1296484

Notes on p~9 ^t~2 f0rIIl ~gral part ofthese f:ncial statements.

N' Ivars Feodorovs Sarmile Arcimovil!a Valda Malniece Chairman ofthe Board Member ofthe Board Member ofthe Board

(1) General information on the Company

AS "Siguldas ciltslietu un maksllgas apseklo~anas stacija" (hereinafter - the Company) was registered in the Register of Enterprises ofthe 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 ofpreparation ofthe 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 ofthe 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 account, which occurred 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 ofpreparing 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 and the date of receipt or issuance ofinvoice. 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 ofthe 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 offinancial assets and liabilities

Fair value of fmancial 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 currencies, the currency risk is not material.

Reporting period

The reporting period is 12 months from I January to 31 December 2009.

Revaluation offoreign currencies

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

	31.12.2009	31.12.2008
EUR	0.702804	0.702804
USD	0.489	0.495

Currency exchange rate differences arising from settlements in currencies or 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 ofincome

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 ofgoods

Income is recognized when the Company has transferred to the purchaser major risks and indemnities related to the title ofgoods.

Provision ofservices

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

Balances offixed assets have been counted in the annual count offixed 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 ofreceivables is the current value ofplanned 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 ofliabilities can be fairly assessed.

Corporate income tax

COIporate 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%.

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 fmancial 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 ofthat 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 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 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	2008	2009	2008
	LVL	LVL	EUR	EUR
Livestock sperm	360943	398316	513576	566753
Milk laboratory services	192912	233559	274489	332324
Treatment ofsupervisory data	55561	69362	79056	98693
Inspection of cows	29409	27663	41845	39361
Artificial insemination oflivestock	22962	25243	32672	35917
Immune-genetic laboratory services	6771	11 041	9634	15710
Other income	46919	56279	66760	80078
	715477	821463	1018032	1168836

Distribution of net sales according to the geographical markets:

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Latvia	714982	821463	1 017327	1168836
Estonia	495		705
	715477	821463	1018032	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	(1975)	(4 110)	(2810)
	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	64 216	59792	91371	85076
Changes in provisions for vacation reserve	(309)	3018	(439)	4294
Health insurance	7327	3318	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	1863	1 701	2651
Business trip expenses	785	3250	1117	4624
Selling expenses	4365	6278	6211	8933
Company's management and administrative expenses	17703	17379	25189	24728
Audit of the financial statement	1500	1500	2134	2134
Other costs	5383	6111	7660	8695
	30931	36381	44012	51765

(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	1529	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		8
	108927	8237	154989	11720

(9) Interest payments and similar costs

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Interest payments		925		1316
Losses from foreign currency exchange rate fluctuations	680	1078	968	1534
Contractual penalties and fmes		10		14
Employees' leisure and other costs not connected with operating activities	7889	10 978	11225	15620
	8569	12 991	12193	18484

(10) Other taxes

	2009 LVL		2009 EUR	2008 EUR
Real estate tax	1091	------	1552	------ 1299
	1091		1552	=---= 1299
		-~~-

(11) Intangible assets

	Concessions, patents, licenses, trade marks and similar rights	Concessions, patents, licenses, Total trade marks and similar rights		Total
	LVL	LVL	EUR	EUR
Initial value
31.12.2008	720	720	1024	1024
Purchased
Disposed
31.12.2009	720	720	1024	1024
Accrued depreciation
31.12.2008	698	698	993	993
Calculated depreciation	20	20	29	29
Depreciation 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	255107	354 427	77152	149	686835
Purchased		2884	9727		12611
Transferred			149	(149)
Disposed			(1077)		(1077)
31.12.2009	255107	357311	85951		698369
Accrued depreciation
31.12.2008	85262	247565	63727		396554
Calculated depreciation	14078	47687	7792		69557
Depreciation of excluded fixed assets			(1077)		(1077)
31.12.2009	99340	295252	70442		465034
Book value as at 31.12.2008	169845	----­ 106862	13425	--------­ 149	290281
Book value as at 31.12.2009	155767	----­ 62059	=~~- IS 509		233335
As at 31 December 2008, the cadastral value of real estate -land and constructions -			--------­	was LVL 230 216

As at 31 December 2008, the cadastral value of real estate -land and constructions - was LVL 230 216 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	977278
Purchased		4104	13 840		17944
Transferred			211	(211)
Disposed			(1 532)		(1532)
31.12.2009	362985	508408	122297		993690
Accrued depreciation
31.12.2008	121316	352253	90675		564 244
Calculated depreciation	20032	67853	11087		98972
Depreciation of excluded fixed assets			(1532)		(1 532)
31.12.2009	141348	420106	100230		661684
Book value as at 31.12.2008	241 669	152051	19 103	211	413034
Book value as at 31.12.2009	221 637	88 302	22 067	--------------------==----------­	332 006
		-------~--------

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 revaluatiou	103755	103755	147631	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	295995	255730	421 163	363871
Other goods for sale	3803	9691	5411	13 790
	299 798	265421	426574	377 661

(16) Trade receivables

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Accounting value oftrade receivables	86679	79097	123333	112545
Provisions for doubtful trade receivables		(21)	(5656)
	82704	79076	117677	112 515
(17) Other receivables
	2009 LVL	2008 LVL	2009 EUR	2008 EUR
VAT for received goods and services	1298	927	1847	1319
Overpayment oftaxes	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	1370	1616	1949	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
			21100			5026
		2009			2008
	Number	Market	Amount	Number	Market	Amount
		price	EUR		price	EUR
SEB Lats reserve fund	15044	1.99566	30023	3885	1.84075	7151
			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 L VL 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		3198
Cash in bank	LVL		47141		55646
Cash in bank	EUR	11 700	8223	61015	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	35140
			168116		171725

Break-down of cash according to currencies:		2009		2008
		Currency	EUR	Currency	EUR
Cash in hand	LVL	2612	3717	3198	4550
Cash in bank	LVL	47141	67076	55646	79176
Cashin bank	EUR		11700		61015
Deposits in credit institutions (with due dates not exceeding 90 days)	LVL	75000	106715	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	421440	421440	599655	599655
Shares owned by the Board without voting rights	1000	1000	1423	1423
	422440	422440	601078	601078

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 ofshares.

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 ofthe 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	129096	82878	183687	117925
Average weighted number of shares during the year	422440	422440	422440	422440
	0.306	0.196	0.435	0.279

(22) Provisions for deferred tax

	2009	2008	2009	2008
	LVL	LVL	EUR	EUR
Temporary differences in fixed assets depreciation	59881	88518	85203	125950
Provisions for vacations	(21800)	(22 109)	(31019)	(31458)
Total temporary differences	38081	66409	54184	94492
Deferred tax provisions at the beginning of the period	9961	13 067	14174	18593
Increase or decrease	(4249)	(3 106)	(6047)	(4419)
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	Calculated in 2009	Paid in 2008	Balance as at 31.12.2009
	LVL	LVL	LVL	LVL
Corporate income tax	(2826)	9208	(13 072)	(6690)
Value added tax	8090	98575	(101414)	5251
Social insurance contributions	6954	88207	(88608)	6553
Personal income tax	3903	47639	(47869)	3673
Real estate tax		1091	(1091)
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	(2826)			(6690)
Tax due	18979			15505

Tax type	Balance as at 31.12.2008	Calculated in 2009	Paid in 2009	Balance as at 31.12.2009
	EUR	EUR	EUR	EUR
Corporate income tax	(4021)	13 102	(18600)	(9519)
Value added tax	11511	140260	(144299)	7472
Social insurance contributions	9895	125507	(126078)	9324
Personal income tax	5552	67785	(68111)	5226
Real estate tax		1552	(1 552)
Nature resource tax	30	117	(121)	26
Business risk duty	16	183	(185)	14
	22983	348506	(358 946)	12543
Including:	2008			2009
	EUR			EUR
Tax overpaid	(4021)			(9519)
Tax due	27004			22062

(24) Accrued liabilities

	2009 LVL	2008 LVL	2009 EUR	2008 EUR
Vacation reserve	21800	22109	31019	31458
	21800	22109	31019	31458

(25) Number of persons employed by the Company

	2009	2008
Average number ofpersons employed during the reporting year	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	5541	9485	7884
Board Members' salaries for work, including state social insurance contributions	29438	26165	41886	37229
Total remuneration to management members	36104	31706	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 ofthe 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.

Report on Management Liability

According to the information being at our disposal, the Financial Statement for twelve 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 makslIgas apseklo~anas 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 12 months of 2009 have not been audited by Sworn Auditor.

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

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