Siguldas CMAS

Interim / Quarterly Report • Aug 26, 2010

Joint stock company SIGULDAS CILTSLIETU UN MAKSLIGAS APSEKLOSANAS STACIJA

INTERIM STATEMENT 6 months of 2010

Index ofContents

r

	Page
Information on the Company	3
Interim 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

•

Company's name	SIGULDAS ClLTSLlETU UN STAClJA
Company's status	Joint stock company
	26 1991
Registration place and date	Registration in the Commercial on 19 June 2004
Legal address	"8, SiguJda parish, area, LV-2I50
Shareholders HV',UU.'", more than 5% of the total number of
Members of the Board	Nils lvars Chairman Board fUFrllJV1Ll.t Member Board Sannlle Member ofthe Board Valda
Members of the Council	Chairman ofthe Coullcil Chairman Council Member ofthe Council rClmOVlCU. Member Council Member ofthe Council
Reporting year	01.01.2010. 30.06.2010.
Auditors	Anita Sondore Sworn Auditor No. 129
	AUDITS A.S, SIA "Pfliidii", Sworn Auditors' Commercial vVIft&'Uft 's license No. 27

Interim Management Report

The basic economic activity of the Stock Company has invariably been production and sale of bull semen, comprising 49% of its net turnover in the accounting period. Milk analysing and data processing services comprise 36% of company's net turnover.

The net turnover in the flTst six months in 2010 has decreased by 4% in comparison to the corresponding period in 2009. The profit has accordingly dropped by 52%.

The decrease of the net turnover was due to the lower price policy implemented by the Stock Company in regard of its client's lowered purchasing capacity due to economic crisis.

The commercial profitability over the first six months in 2010 was 10% in comparison to 19% in 2009.

Company has additionally invested LVL 39 521 (EUR 56 233) in Ltd "Animal Breeders Association of Latvia" (SIA "Latvijas sl}irnes dZIvnieku audzetaju savienIba") capital, thus obtaining constitutive stake in a company comprised by 22.6% of voting rights.

• / ~~ ~JI{CtJl{~

Z Ivars Feodorovs SarmTte Arcimovica Valda Mainiece Chairman ofthe Board Member ofthe Board Member o/the Board

25 August 2010

Profit or loss accountfor the period ended 30 June 2010

	Note	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Net sales	3	345062	358631	490979	510287
Changes in stock of ready-made goods and unfinished products	4	36530	74365	51 978	105 812
Other operating income	5	8805	3796	12529	5401
Costs of materials:		(136769)	(132767)	(194605)	(188911)
a) raw materials and auxiliary costs of materials		(108054)	(103716)	(153 747)	(147575)
b) other external costs		(28 715)	(29051)	(40858)	(41 336)
Personnel costs:	6	(169496)	(176966)	(241 171)	(251 800)
a) salaries for work		(130609)	(135602)	(185840)	(192945)
b) state social insurance compulsory contributions		(30968)	(32 266)	(44063)	(45910)
c) other social insurance costs		(7 919)	(9098)	(11 268)	(12 945)
Write-off of assets and values:		(34733)	(42415)	(49421)	(60352)
a) depreciation of fixed assets and amortization of intangible assets		(34733)	(35 024)	(49421)	(49835)
b) write-off of value of current assets above the normal deductions			(7 391)		(10517)
Other operating costs	7	(15 136)	(18482)	(21 536)	(26298)
Other interest income and similar income	8	2857	2298	4064	3270
Interest payments and similar costs	9	(2 428)	(1 992)	(3 455)	(2 834)
Profit or losses before taxes		34692	66468	49362	94575
Enterprise income tax for the reporting year		(6250)	(8278)	(8 893)	(11 778)
Other taxes	10	(1 107)	(1 091)	(1 575)	(1 552)
The profit or loss for the year		27335	57099	38894	81245
Equity per 1 share (EPS)	22	0.065	0.135	0.092	0.192

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

.- ~ P1 7 ;;J(L/jt,,' ~ J/( Nils Ivars Feodorovs SarmTte ArcimOvica Valda Malniece

25 August 2010

Chairman ofthe Board Member ofthe Board Member ofthe Board

Balance sheet as at 30 June 2010

Assets	Note	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Long-term investments
Intangible assets
Concessions, patents, licenses, trade marks and similar rights			12		17
Intangible assets total	11		12		17
Fixed assets
Land parcels, buildings and constructions and perennial plantings		148715	162 811	211 602	231 659
Equipment and machinery		40998	85907	58335	122 235
Other fixed assets and inventory		13 915	13 343	19799	18986
Fixed assets total	12	203628	262 061	289736	372 880
Investment properties	13	120000	16245	170745	23114
Biological assets		51012	32461	72 583	46188
Long-term financial investments
Investments in capital of associated
comparues	14	42521	3000	60502	4269
Other securities and investments	15	480	480	683	683
Long-term financial investments total		43001	3480	61185	4952
Long-term investments total		417641	314259	594249	447151
Current assets
Stock
Raw materials, basic materials and auxiliary materials		8741	11 028	12437	15 691
Ready-made goods and goods for sale	16	327 702	347337	466278	494216
Prepayments for goods		519	1414	739	2012
Stock total		336962	359779	479454	511 919
Receivables
Trade receivables	17	127493	89 186	181 406	126900
Other receivables	18	7571	2410	10773	3429
Prepaid expenses	19	2878	3658	4095	5205
Receivables total		137942	95254	196274	135534
Short-term financial investments
Other securities and shareho1ding in capitals	20	21472	5201	30551	7400
Short-term financial investments total		21472	5201	30551	7400
Cash	21	87542	155049	124561	220615
Current assets total		583918	615283	830840	875468
Assets total		1 001 559	929542	1425089	1 322619

Balance sheet as at 30 June 2010

Shareholders' equity and liabilities	Note	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Shareholaen' equity
Share capital	22	422 440	422440	601 078	601 078
Retained earnings:
Retained earnings carried forward from prevIOus years		454939	359638	647320	511 719
Retained earnings of the reporting year		27 335	57099	38894	81 245
Shareholders' equity total		904714	839177	1 287292	1 194042
Payables
Long-term payables
Deferred tax liabilities	23	5712	9961	8 127	14 174
Long-term payables total		5712	9961	8127	14174
Short-term payabJes
Prepayment received from customers		3240		4610
Trade payables		30670	18 265	43640	25988
Taxes and social insurance payments	24	25781	30124	36682	42863
Other payables		9642	9906	13 719	14094
Accrued liabilities	25	21 800	22 109	31 019	31 458
Short-term payables total		91 133	80404	129670	114403
Payables total		96845	90365	137797	128577
Shareholders' equity and liabilities total		1 001 559	929542	1425089	1322619

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

/~~ (

Z s Ivars Feodorovs SarmIte ArcLmovic

25 August 20 I 0

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Chairman 0/the Board Member o/the Board Member o/the Board

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'- Valda Malniece

Cash flow statementfor the period ended 30 June 2010

	Note	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Cash flow from operating activities
Income from sale of goods and provision of services		377 028	422853	536462	601 666
Payments to suppliers, employees, other expenses arising from basic operations		(383344)	(397 680)	(545450)	(565 848)
Other Company's basic income or expenses		10232	5776	14559	8219
Gross cash flow from basic operations		3916	30949	5571	44037
Expenses for tax payments		(6407)	(6828)	(9 116)	(9 715)
Net cash flow from operating activities		(2491)	24121	(3545)	34322
Cash flow from investing activities
Purchase of fixed assets and intangible investments		(4557)	(6794)	(6484)	(9667)
Purchase of capital shares of other company		(39521)		(56 233)
Net cash flow from investing activities		(44078)	(6794)	(62717)	(9667)
Cash flow from financing activities
Dividends paid		(33 795)	(33 795)	(48086)	(48086)
Net cash flow from financing activities		(33795)	(33795)	(48086)	(48086)
Result of foreign exchange rate fluctuations		(210)	(208)	(299)	(296)
Increase/decrease of cash and its equivalents		(80574)	(16676)	(114647)	(23 727)
Cash and its equivalents at the beginning of the period		168116	171 725	239208	244342
Cash and its equivalents at the end of the period	21	87542	155049	124561	220615

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

25 August 2010

~4~/' ~~ Li./;zt L _ ___ / ~ ~

N' s Ivars Feodorovs SarmIte Arcimovita Valda MiHniece Chairman ofthe Board Member ofthe Board Member ofthe Board

./"'."" ~r')C

•

Statement on changes in shareholders' equity for the period ending 30 June 2010

	Share capital	Retained earnings	Retained earnings for the reporting	Shareholders' equity total
	LVL	LVL	year LVL	LVL
31.12.2008	422 440	310555	82878	815873
Profit for 2008 transferred to retained earnings of
prevIOus years		82878	(82878)
Dividends for 2008		(33 795)		(33 795)
Retained earnings for the reporting year			57099	57099
30.06.2009	422440	359638	57099	839177
31.12.2009	422440	359638	129096	911 174
Profit for 2009 transferred to retained earnings of
previous years		129096	(129096)
Dividends for 2009		(33 795)		(33795)
Retained earnings for the reporting year			27 335	27335
30.06.2010	422440	454939	27335	904714

	Share capital	Retained earnings	Retained earnings for the reporting year	Shareholders' equity total
	EUR	EUR	EUR	EUR
31.12.2008	601 078	441 880	117925	1 160883
Profit for 2008 transferred to retained earnings of
previous years		117925	(117 925)
Dividends for 2008		(48086)		(48 086)
Retained earnings for the reporting year			81 245	81245
30.06.2009	601078	511 719	81245	1 194042
31.12.2009	601078	511 719	183687	1 296484
Profit for 2009 transferred to retained earnings of
previous years		183687	(183 687)
Dividends for 2009		(48086)		(48086)
Retained earnings for the reporting year			38894	38894
30.06.2010	601 078	647320	38894	1 287292

Notes on pages 10 to 22 fonn an int~al part of these financial statements. /' ./

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Chairman ofthe Board Member ofthe Board Member ofthe Board

25 August 2010

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i's Ivars Feodorovs SarmIte Arclmovlca

Valda Mainiece

(1) General information on the Company

AS "Siguldas ciltslietu un makslIgas apseklosanas stacija" (hereinafter - the Company) was registered in the Register of Enterprises of the Republic of Latvia on 26 July 1991 and was reregistered in the Commercial Register of the Republic of Latvia on 19 June 2004.

The Company's basic activities are agriculture and the types of business are as follows:

• Production and sale of agricultural products high-quality breeding animals semen,
• making of milk analyses,
• evaluation of cow exterior,
• artificial insemination of cows,
• inspection of immune-genetic origin of cattle,
• milk recording data processing,
• animals breeding organization.

(2) Significant accounting principles

Underlying principles 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 of the Financial Statements have been evaluated according to the following accounting principles:

• It is assumed that the Company will be a going concern;
• The same evaluation methods have been used, which were used in the previous year;
• Evaluation was done with sufficient prudence:
  • The Financial Statements include solely the profit gained until the balance sheet date,
  • All expected risk amounts and losses have been taken into 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 of preparing the Financial Statements,
  • All value decreasing and depreciation amounts have been taken into account irrespective whether the reporting year was closed with profit or loss;
• reporting year related income and costs were recognized irrespective of the payment date and the date of receipt or issuance of invoice. Costs have been agreed with the income in the reporting period;
• components of asset and liabilities items have been recognized separately;
• the opening balance of the reporting year agrees with the closing balance of the previous year;
• all items have been recognized, which materially influence assessment or decision-making process of the users of the annual report, insignificant items are merged and they are detailed in the Appendix;
• operating transactions in the reporting year have been recognized in the Financial Statements by taking into account their economic substance and contents, rather than legal form.

Financial instruments

Fair value offinancial assets and liabilities

Fair value of financial assets and liabilities reflect the amount, for which it is possible to exchange assets or perform liabilities in a deal between well informed, interested and financially independent persons. If in the Company's management opinion, fair value of fmancial 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 management has credit policy, which is VW"C"U1J controlled, Client evaluation is done for all customers above a fixed amount. The Company cooperates with clients who have proper credit assessment.

risk

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

Reporting period

The reporting period is 6 months from 1 to 30 June 2010,

Revaluation offoreign currencies

The functional currency and the currency used in the Financial Statements is the Republic of Latvia national currency Lat (LVL) , All transactions in currencies are translated to Lats to the rate set by the Central Bank of Latvia on the day of the respective transaction,

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

	30.06.2010	30.06.2009
EUR	0.702804	0.702804
USD	0.573	0.501

of transactions, ..AI,,,CUlI','O rate differences from settlements in currencies or when using currency exchange rates, which differ from the initial currency exchange rates used for are in the or loss account in net value,

Recognition ofincome

Income is amount, in which it is also the following to the conviction about the possibility to economic benefit and in the to state it, less value added tax and sales-related discounts. When 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 of

Provision

Income from services is rec:ogmz:ed in the period when the services are provided.

Income from Vl',LU"",;U at the moment of their

Interest

Income is to the of time,

Long-term and short-term items

include amounts whose payments or write-off terms are due later after the end of the year. Amounts, which are receivable, or written off the year, are in short-term items.

Leasing transactions

Financial leasing

In cases when fixed assets are purchased on the conditions of financial and the related risks and return are taken over, these fixed assets are in the for which they could be with immediate payment. ~VU"'H~ interest and similar payments are included in the profit or loss account of that when occurred.

Intangible assets and fIXed assets

In the balance all intangible assets and fixed assets are reflected at their less depreciation. is calculated from the first date of the next month after their commissioning and finished on the first date month after it is excluded from fixed assets. Depreciation is calculated according to the line method and is written off the useful life time of fixed assets by choosing the following annual VV'.UUVH rates as fixed by the

5 years
20 years
5,6 and 7 years
5 years
3 and 5 years
2 and 3 years

Balances of fixed assets have been counted in the annual count of fixed assets.

Investment properties

loss account. Investment properties land in possession of the stock company, which market value is expected to grow. Investment properties have been filed to their value. No later than on the end of the year of account the ~rf,,,,,,,rtic.e are being revalued according to their real market value considering any other activities related to Any in the market value of the investments are shown in the profit and

Biological assets

assets are assets, which are characterized by and changes in value as a result of The Company in biological assets includes animals bulls, which are for agricultural products for sale. Biological assets are recognized in the purchase value.

Stock

Stock is in the lowest cost or net sales value. All stock is assessed by the average method.

Net sales value is the sales price of stock fixed normal operations, less the stock completion and costs. In cases when the stock net value is lower than their cost price, 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, the year are booked in the 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 them in stocks as and for sale".

Trade receivables and other receivables

Receivables are in the balance sheet in the amortized value, less 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 to the fixed repayment dates. Provisions for doubtful and bad debts are the difference between the amortized value of receivables and the recoverable value. The recoverable value of receivables is the current value of planned cash flow.

Provisions

Provisions are when the has liabilities (legal or due to some past event and there is a ne]'to]rm"m(:e of these liabilities will outflow of economic resources from the Company, and the amount of liabilities can be fairly assessed,

Corporate income tax

Corporate income tax for the consists of the tax calculated for the rPfYH1'in and deferred tax, Corporate income tax is recognized in the profit or loss account.

Calculated tax

The tax calculated for the period has been calculated in compliance with the requirements of the Law "On Corporate Income Tax" by fixing the taxable income and applying the rate of 15%.

un''''r'Nl 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 and its value for tax purposes, The mentioned differences are mainly due to different fixed assets depreciation rates in tax and fmancial made and losses transferred according to the Company's income tax declaration. Deferred tax is calculated by the tax rate 15%.

Subsidies

Amounts, which are received as a state support for agricultural, for covering of expenses for breed bulls, are included in the income of that rf>n{'\rtm when are received.

Use ofassumptions

the financial statements, the management has to make calculations and assumptions, which of assets and liabilities included in the financial statements as at the day of the financial statements, as well as the income and expenses in the has made profit or loss assessment and considers that the fmancial statements reflect the true financial condition based on all 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	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Livestock sperm	169662	179232	241407	255024
Milk laboratory services	92029	92 962	130945	132273
Treatment of supervisory data	33703	26673	47955	37952
inspection of cows	11 458	14 121	16303	20093
Artificial insemination of livestock	11 803	11 811	16794	16806
Immune-genetic laboratory services	6442	3 172	9166	4514
Other income	19965	30660	28 409	43625
	345062	358631	490979	510287

Distribution of net sales according to the geographical markets:

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Latvia	345062	358 136	490979	509583
Estonia		495		704
	345062	358631	490979	510287

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

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Changes in sperm stock value	26247	84607	37347	120385
Written-off sperm
Changes in stud bull herd value	10283	(10242)	14 631	(14573)
	36530	74365	51978	105812
Other operating income (5)	2010	2009	2010	2009
	LVL	LVL	EUR	EUR
State support for agricultural	8805	------------------ 3796	12529	5401
	8805	3796	12 529	5401 ====~

Notes to Statements

(6) Personnel costs

-

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Salaries for work	130609	135602	185840	192 945
State social insurance contributions	30968	32266	44063	45910
Health insurance	7236	7278	10296	10355
Other costs	683	1820	972	2590
	169496	176966	241 171	251800

Other operating expenses

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Insurance payments	562	1092	799	1554
Business trip expenses	977	733	1 391	1043
Selling expenses	1 342	3073	1910	4372
Company's management and administrative
expenses	9153	8699	13 023	12377
Audit of the financial statement		1570		2234
Other costs	3102	3315	4413	4718
	15136	18482	21536	26298

(8) Other interest income and similar income

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Income from securities	371	175	528	249
Interest income	1427	I 981	2030	2819
Contractual penalties from clients	4	125	5	178
Recovered doubtful and bad debts	1 055	15	1 501	21
Other income		2		3
	2857	2298	4064	3270

(9) Interest payments and similar costs

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Losses from foreign currency exchange rate fluctuations Employees' leisure and other costs not connected	I 362	446	1 938	635
with operating activities	1066	1 546	1 517	2 199
	2428	1992	3455	2834

(10) Other taxes

-

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Real estate tax	1 107	1 091	1 575	1552
	1107	1091	1575	1552

(11) Intangible assets

	Concessions, patents, licenses, trade marks and similar rights	Total	Concessions, patents, licenses, trade marks and similar rights
	LVL	LVL	EUR	EUR
Initial value
31.12.2009	720	720	1024	1024
Purchased
Disposed
30.06.2010	720	720	1024	1024
Accrued depreciation
31.12.2009	718	718	1022	1022
Calculated depreciation	2	2	2	2
Depreciation of excluded investments
30.06.2010	720	720	1024	1024
Book value as at 31.12.2009	2	2	2	2
Book value as at 30.06.2010

(12) Report on movement of fixed assets

	Land, buildings and constructions	Technological equipment and machinery	Other fixed assets	Total
	LVL	LVL	LVL	LVL
Initial value
31.12.2009	255 107	357311	85951	698369
Purchased		2498	2527	5025
			(1400)	(1 400)
30.06.2010	255107	359809	87078	701994
Accrued depreciation
31.12.2009	99340	295252	70442	465034
Calculated	7052	23559	4 121	34732
of excluded fixed assets			(1400)	(1 400)
30.06.2010	106392	318811	73163	498366
Book value as at 31.12.2009	155767	62059	15509	233335
Book value as at 30.06.2010	148715	40998	13 915	203628

As at 30 June 2009, the cadastral value of real estate -land and constructions - was LVL 245 152 As at 30 June 2010, the cadastral value of real estate -land and constructions - was LVL 113 994

	Land, buildings and constructions	Technological equipment and machinery	Other fixed assets	Total
	EUR	EUR	EUR	EUR
Initial value
31.12.2009	362985	508408	122297	993690
Purchased		3554	3595	7149
			(1 992)	(1992)
30.06.2010	362985	511 962	123900	998847
Accrued depreciation
31.12.2009	141348	420106	100230	661684
Calculated	10035	33521	5863	49419
Depreciation of excluded fixed assets			(1 992)	(l992)
30.06.2010	151383	453627	104 101	709111
Book value as at 31.12.2009	221 637	88302	22067	332006
Book value as at 30.06.2010	211 602	58335	19799	289736

As at 30 June 2009, the cadastral value of real estate land and constructions - was EUR 348 820 As at 30 June 2010, 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 31.12.2008	16245	16245	23114	23114
Increase/decrease of value due to revaluation
Book value as at 30.06.2009	16245	16245	23114	23 114
Book value as at 31.12.2009	120000	120000	170745	170745
Increase/decrease of value due to revaluation
Book value as at 30.06.2010	120000	120000	170745	170745

(14) Investments in capital of associated companies

		2010			2009
	% from total share capital	LVL	EUR	% from total share capital	LVL	EUR
Ltd "Animal Breeders Association of Latvia" (SIA "Latvijas s~irnes dZlvnieku audzetaju savienlba" )
Legal address: Republikas laukums 2, Riga,
LV-I0lO, Latvia	22 .6	42521	60502	7.4	3000	4269
		42521	60502		3000	4269
Other securities and investments (15)
					LVL	EUR
Purchase value as at 30.06.2009					480	683
Book value as at 30.06.2009					480	683
Purchase value as at 30.06.2010					480	683
Book value as at 30.06.2010					480	683
(16) Ready-made products and goods for sale
		2010		2009	2010	2009
		LVL		LVL	EUR	EUR
Bull semen		316 384	343 311		450 174	488488
Other goods for sale		11 318	4026		16 104	5728

(17) Trade receivables

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Accounting value of trade receivables	130413	89207	185 561	126930
Provisions for doubtful trade receivables	(2920)	(21 )	(4 155)	(30)
	127493	89186	181 406	126900

327702

347337

466278

494216

(18) Other receivables

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
VAT for received goods and services	741	867	1055	1234
Overpayment of taxes	5740	286	8 167	407
Other receivables	1090	1 257	1 551	1 788
	7571	2410	10773	3429

-

(19) Prepaid expenses

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

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Advertising costs	48	152	68	216
Insurance	2803	3493	3989	4970
Press subscription	27	13	38	19
	2878	3658	4095	5205

(20) Other securities and shareholding in capitals

		2010			2009
	Number	Market	Amount	Number	Market	Amount
		price	LVL		price	LVL
SEB Lats reserve fund	15044	1.42722	21472	3885	1.33879	5201
			21472			5201
		2010			2009
	Number	Market	Amount	Number	Market	Amount
		price	EUR		price	EUR
SEB Lats reserve fund	15044	2.03075	30551	3885	1.90493	7400
			30551			7400

Money market fund shares have no guaranteed interest rate. In 2010, the profitability was about 3.54 %. Exclusion of money market fund shares is carried out at the Company's request.

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

Break-down of cash according to currencies:		2010		2009
		Currency	LVL	Currency	LVL
Cash in hand	LVL		5469		3217
Cash in bank	LVL		79211		95062
Cash in bank	EUR	4073	2862	21 288	14961
Deposits in credit institutions (with due dates not
exceeding 90 days)	LVL				41 809
			87542		155049
Break-down of cash according to currencies:		2010		2009
		Currency	EUR	Currency	EUR
Cash in hand	LVL	5469	7781	3217	4577
Cash in bank	LVL	79211	112 707	95062	135 261
Cash in bank	EUR		4073		21288
Deposits in credit institutions (with due dates not
exceeding 90 days)	LVL			41809	59489
			124561		220615

(22) 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 422440, the nominal value per share is 1 Lat.

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Ordinary common shares with voting rights	421440	421 440	599655	599655
Shares owned by the Board without voting rights	1000	1000	1423	1423
	422440	422440	601 078	601 078

421440 shares or 99.8% of the share capital are ordinary common shares with voting rights, which give equal rights to receive dividends, receipt of liquidation quota and voting rights in the Shareholders' Meeting.

1000 shares or 0.2% of the share capital, which are not included in the regulated market, are personnel shares, which may be obtained only by Members of the Board, and they give equal rights only to receipt of dividend and liquidation quota.

There are no share alienation restrictions, nor the necessity to receive the Company's or other shareholders' consent for alienation of shares.

There are no restrictions on voting rights, nor any other similar restrictions.

Profit per share

Profit per one share is calculated by dividing the profit of the reporting period with the average weighted number of shares during the year.

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Profit of the reporting period	27 335	57099	38894	81 245
A verage weighted number of shares during the year	422 440	422440	422 440	422 440
	0.065	0.135	0.092	0.192

(23) Provisions for deferred tax

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Temporary differences in fixed assets depreciation	59881	88518	85203	125950
Provisions for vacations	(21 800)	(22 109)	(31 019)	(31 458)
Total temporary differences	38081	66409	54 184	94492
Deferred tax provisions at the beginning of	9961	13 067	14174	18593
the period
Increase or decrease	(4249)	(3 106)	(6047)	(4 419)
Deferred tax provisions at the end of the period	5712	9961	8127	14174

(24) Taxes and social insurance payments

Tax type	Balance as at 31.12.2009	Calculated in 2010	Paid in 2010	Balance as at 30.06.2010
	LVL	LVL	LVL	LVL
Corporate income tax	(6690)	6250	(5 300)	(5740)
Value added tax	5251	50598	(43622)	12227
Social insurance contributions	6553	42538	(41055)	8036
Personal income tax	3673	27 897	(26 107)	5463
Real estate tax		I 107	(I 107)
Nature resource tax	18	66	(40)	44
Business risk duty	10	65	(64)	11
	8815	128521	(117295)	20041
Including:	2009 LVL			2010
Tax overpaid				LVL
	(6690) 15505			(5 740)
Tax due				25781
Tax type	Balance as at	Calculated in	Paid in	Balance as at
	31.12.2009	2010	2010	30.06.2010
	EUR	EUR	EUR	EUR
Corporate income tax	(9 519)	8893	(7 541)	(8 167)
Value added tax	7472	71 994	(62069)	17397
Social insurance contributions	9324	60527	(58416)	11435
Personal income tax	5226	39693	(37 147)	7772
Real estate tax		1 575	(I 575)
Nature resource tax	26	94	(57)	63
Business risk duty	14	92	(91 )	15
	12 543	182868	(166896)	28515
Including:	2009			2010
	EUR			EUR
Tax overpaid	(9 519)			(8 167)
Tax due	22062			36682

(25) Accrued liabilities

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Vacation reserve	21 800	------------ 22 109	31019	31458 -----~
	21800	22109 ~~	31 019	31 458 ~~--

(26) Number of persons employed by the Company

	___ 2_0_1_0	____ 2---'0---'0'--9
Average number of persons employed during the reporting year	42	42

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

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Council Members' salaries for work, including state social insurance contributions Board Members' salaries for work, including	3294	3005	4687	4276
state social insurance contributions	15259	13 426	21 712	19 103
Total remuneration to management members	18553	16431	26399	23379

There are no special regulations worked out, which would regulate election of Board Members, changes in the composition of the Board and amending of the Articles of Association.

All Board Members have equal Company's representation rights. The Chairman of the Board represents the Company separately, but other Board Members can represent the Company only both together.

There is no agreement signed between the Company and the Board Members, which provides any compensations.

Report on Management Liability

According to the information being at our disposal, the Financial Statement for six months of the 2010 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 maksllgas apseklosanas stacija" assets, liabilities, financial condition and profit.

Interim statements for six months of 20 I 0 have not been audi ted by Sworn Auditor.

•/~< :::::=:;= ~'(/Ilt J.;Y- N" s Ivars Feodorovs Sar;;rtte Arcirnovio(' "'Valda Malmece

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

25 August 20 I 0