Siguldas CMAS

Quarterly Report • May 27, 2010

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

INTERIM STATEMENT for 3 months of 2010

Index

Information on the Company	3
Profit or Loss Account	4
Balance sheet	5
Cash flow statement	7
Statement 011 changes in shareholders' equity	8
Notes to the Financial Statements	9
Report on Management Liability	22

Page

Company's name	SIGULDAS CILTSLIETU UN STACIJA
status	Joint stock company
	Riga, 26 July 199f
Registration and date	in the Commercial on 19 June 2004
Legal address	area, LV-2I50
Shareholders llVj,UU',,- more than 5% of the total number of voting shares	stacija" SIA "Siguldas registration No. 400033/1954
Members of the Board	Nils Ivars Board Sarmlle Arcimovica, Member Valda Millniece, Member Board
Members of the Council	Council Member Council Member ofthe Council Member ofthe Council
year	01.01,2010. 31.03.2010.
Auditors	Anita Sondore Sworn Auditor Certificate No. /29
	AUD1TS S1A " Pi/ad'li", Latvia

Sworn Auditors' Commercial Company's license No. 27

Profit or loss account for the period ended 31 March 2010

	Note	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Net sales	3	156 950	168702	223 319	240041
Changes in stock of ready-made goods and unfinished products	4	16420	62209	23364	88516
Other operating income	5	7093	3522	10093	5012
Costs of materials:		(58 862)	(73 276)	(83754)	(104263)
a) raw materials and auxiliary costs of materials		(44768)	(59 109)	(63 699)	(84 105)
b) other external costs		(14094)	(14 167)	(20055)	(20 158)
Personnel costs:	6	(79 531)	(82 486)	(113 162)	(117 367)
a) salaries for work		(61 161)	(63534)	(87024)	(90 401)
b) state social insurance compulsory contributions		(14 547)	(15263)	(20 698)	(21 718)
c) other social insurance costs		(3 823)	(3 689)	(5440)	(5 248)
Write-off of assets and values:		(17 545)	(17772)	(24964)	(25 287)
a) depreciation of fixed assets and amortization of intangible assets		(17 545)	(17772)	(24964)	(25 287)
Other operating costs	7	(10352)	(II 517)	(14729)	(16388)
Other interest income and similar income	8	2 151	I 565	3060	2226
Interest payments and similar costs	9	(I 386)	(1 415)	(I 972)	(2 013)
Profit or losses before taxes		14938	49532	21255	70477
Enterprise income tax for the reporting year		(3 975)	(4303)	(5 656)	(6 123)
Other taxes	10	(I 107)	(1 091)	(1 575)	(I 552)
The profit or loss for the year		9856	44138	14024	62802
Equity per 1 share (EPS)	21	0.023	0.104	0.033	0.149

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

~:( /

"7

SarmTte Arcimovii::a Valda Malniece

~~V!/J!t ~ ~wf··

Chairman ofth e Board Member ofthe Board Member ofthe Board

26 May 2010

Balance sheet as at 31 March 2010

Assets	Note	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Long-term investments
Intangible assets
Concessions, patents, licenses, trade marks and similar rights			17		23
Intangible assets total	I 1		17		23
Fixed assets
Land parcels, buildings and constructions and perennial plantings		152 241	166 328	216619	236664
Equipment and machinery		52501	94880	74703	135003
Other fixed assets and inventory		15222	14327	21 659	20385
Costs of up-building of fixed assets		468		665
Fixed assets total	12	220432	275535	313 646	392052
Investment properties	13	120000	16245	170745	23 114
Biological assets		40729	50118	57952	71312
Long-term financial investments
Other securities and investments	14	3480	3480	4952	4952
Long-term financial in vestments total		3480	3480	4952	4952
Long-term investments total		384641	345395	547295	491453
Current assets
Stock
Raw materials, basic materials and auxiliary materials		10439	14649	14854	20843
Ready-made goods and goods for sale	15	3/1 171	316200	442756	449912
Prepayments for goods		523	1 262	744	1 797
Stock total		322133	332 111	458354	472 552
Receivables
Trade receivables	16	130246	91 173	185 323	129728
Other receivables	17	7724	3703	10991	5268
Prepaid expenses	18	40	50	56	71
Receivables total		138010	94926	196370	135067
Short-term financial investments
Other securities and shareholding in capitals	19	21 371	5 111	30408	7272
Short-term financial in vestments total		21371	5111	30408	7272
Cash	20	137537	161 644	195698	229998
Current assets total		619051	593792	880830	844889
Assets total		1 003692	939187	1428125	1336342

Balance sheet as at 31 March 2010

Shareholders' equity and liabilities	Note	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Shareholders' equity
Share capital	21	422440	422440	601 078	601 078
Retained earnings:
Retained earnings carried forward from previous years		488734	393433	695406	559805
Retained earnings of the reporting year		9856	44 138	14024	62802
Shareholders' equity total		921030	860011	1 310508	1 223685
Payables
Long-term payables
Deferred tax liabilities	22	5712	9961	8 127	14 174
Long-term payables total		5712	9961	8127	14174
Short-term payables
Trade payables		24951	II 053	35502	15727
Taxes and social insurance payments	23	19305	23401	27 469	33297
Other payables		10894	12652	15500	18001
Accrued liabilities	24	21 800	22 109	31 019	31 458
Short-term payables total		76950	69215	109490	98483
Payables total		82662	79176	117617	112657
Shareholders' equity and liabilities total		1003692	939 187	1 428 125	1 336342

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

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Nils Ivars Feodorovs SarmTte Arcimovi~a Chairman ofthe Board Member ofthe Board

Valda Mainiece Member ofthe Board

26 May 2010

Cash flow statementfor the period ended 31 March 2010

	Note	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Cash now from operating activities
Income from sale of goods and provision of services		142 298	191 456	202472	272417
Payments to suppliers, employees, other expenses arising from basic operations		(171 890)	(197 727)	(244578)	(281 340)
Other Company's basic income or expenses		8476	4878	12060	6941
Gross cash now from basic operations		(21 116)	(1 393)	(30046)	(1 982)
Expenses for tax payments		(5082)	(5 394)	(7 231)	(7 675)
Net cash flow from operating activities		(26 198)	(6787)	(37277)	(9657)
Cash now from investing activities
Purchase of fi xed assets and intangible investments		(4 172)	(3 169)	(5 936)	(4 509)
Net cash flow from investing activities		(4 172)	(3 169)	(5 936)	(4509)
Cash now from financing activities
Dividends paid
Net cash flow from financing activities
Result of foreign exchange rate nuctuations		(209)	(125)	(297)	(178)
Increase/decrease of cash and its equivalents		(30579)	(10081)	(43510)	(14344)
Cash and its equivalents at the beginning of the period		168 116	171 725	239208	244342
Cash and its equivalents at the end of the period	20	137537	161644	195698	229998

Notes on pages 9 to 21 fOIm an integral part of these fmancial statements.

~ :::5h,t/)!t ^A

Chairman ofthe Board Member ofthe Board Member ofthe Board

26 May 2010

r

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SarmTte Arcimovica

....-:? /;k! e~ Valda Malniece

Statement on changes in shareholders' equity for the period ending 31 March 2010

	Share capital	Retained earnings	Retained earnings for the reporting year	Shareholders' equity total
	LVL	LVL	LVL	LVL
31.12.2008	422440	310555	82878	815873
Profit for 2008 transferred to retained earnings of previous years		82878	(82 878)
Retained earnings for the reporting year			44138	44 138
31.03.2009	422440	393433	44138	860011
31.12.2009	422440	359638	129096	911 174
Profit for 2009 transferred to retained earnings of previous years		129096	(129096)
Retained earnings for the reporting year			9856	9856
31.03.2010	422440	488734	9856	921 030

	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 transfen"ed to retained earnings of previous years		117 925	(117925)
Retained earnings for the reporting year			62802	62802
31.03.2009	601 078	559805	62802	1 223685
31.12.2009	601 078	511 719	183687	1 296484
Profit for 2009 transfelTed to retained earnings of previous years		183687	(183687)
Retained earnings for the reporting year			14024	14024
31.03.2010	601 078	695406	14024	1310508

Feodorovs

Chairman ofthe Board

Sarmite Arcimovica Member ofthe Board

cJ?q!(

Valda Malniece Member ofthe Board

26 May 2010

--- Notes to Financial Statem ents

(1) General information on the

ciltslietu un - the Company) was in the of of the Republic of Latvia on 26 July 1991 and was "'-"l""~'''' of the Republic of Latvia on 19 June 2004.

of business are as follows: The Company's basic activities are

• animals semen, Production and sale of high-quality
• of milk
• evaluation of cow exterior,
• artificial insemination of cows,
• of
• milk

(2) Significant accounting

Underlying principles a/preparation a/the Financial Statements

The Company's Financial Statements have been to the Law On Annual of the Republic of Latvia and the Latvian Standards. The Profit or Loss Account was based on the costs method. The Cash Flow Statement was prepared to the direct method.

Accoullting principles Ilsed

The items of the Financial Statements have been evaluated to the following accOlmting

• It is assumed that the Company will be a concern;
• The same evaluation methods have been which were used in the previous year;
• Evaluation was done with sufficient prudence:
  • The Financial Statements include the gained until the balance sheet
  • All risk amounts and losses have been taken into account, which occurred the ''',",'VBH',, year or in years, also if were known a certain period of time between the balance sheets date and the day the Financial St:'ltpn1P
  • All value and amounts have been taken into account whether the
• A".... V",H"~vU of the payment date and the date of reporting year related income and costs were or issuance of invoice. Costs have been
• comr;lon.ents of asset and liabilities items have been
• year agrees with the the balance of the
• influence assessment or process of the users all items have been which of the annual report, insignificant items are and are detailed in the Appendix;
• UfJ''''''''''iS transactions in the year have been taking into account their economic substance and contents, rather than v,"""-""-,,,-,, in the Financial Statements

Financial instruments

Fair value ILfl,"'[{,Lut assets and liabilities

I-'V,00""'" to interested and financially assets or perform If in the Company's ""'J!',UUL',U in the ~Vr,H"~V~ in the Notes to the Financial Statements. Fair value of financial assets and liabilities reflect the amount, for which it is liabilities in a deal between well management fair value of financial assets and liabilities balance then the fair value of these assets and liabilities is

Financial risks management

Credit risk

has credit nn,'r"t",,, with clients who have proper credit assessment controlled, Client evaluation is done for all customers above a t1xed amount. The Company The

risk

Based on the cun-ent stmcture of financial assets and liabilities held in the cun-ency risk is not material.

Reporting period

The rpn,f)rtm is 3 months from 1 to 31 March 2010,

Revaluation offoreign currencies

The functional currency and the currency used in the Financial Statements is the cun-ency Lat (LVL), All transactions in cun-encies are translated to Lats according to the of Latvia national rate set by the Central Bank of Latvia on the day of making the respective transaction.

Monetary assets and liabilities, which are the Central Bank of Latvia on the last day of the rpn,f)rtm cun-ency, are translated to Lats to the exchange rate set

	31.03.2010	31.03.2009
EUR	0.702804	0.702804

rate differences arising from settlements in cun-encies or when using currency exchange rates, which differ from the initial currency rates used for are v"p"m"Vu in the profit or loss account in net value.

Recognition ofincome

Income is to the conviction about the to economic benefit and in the to state it, less value added tax and sales-related discounts. When are taken into account.

Sale

Income is rec:ogmz:ed when the '-""''''1'<''':1 has transfen-ed to the purchaser risks and indemnities related to the title of

Provision

Income from services is vv\""""",,-,u in the period when the services are

and delay charges

Income from penalty and delay IS "M')1"""" at the moment of their

fntereSl

Income is "v"E>U'~"U according to the '''0",,,,,'t, of time,

Long-term and short-term items

items include amounts whose payments year. or write-off terms are due later after the end of the payable or written off the year, are ill short-term items.

Notes to the Financial Statements ............ --~~~~~--~~~~~~~~~~~~~~--~~--~-

Leasing transactions

Financial

In cases when fixed assets are on the conditions of fmancial and the related risks and return are taken over, these fixed assets are in the for which could be with immediate Leasing interest payments and similar are included in the profit or loss account of that period when they occurred.

Intangible assets and fixed assets

In the balance all assets and fixed assets are reflected and finished on the first date the less calculated from the first date of the next month after their of the month after it is excluded from fixed assets. to the line method and is 'vvTitten off during the useful life time of rates as fixed by the

assets:

Licenses	5 years
Fixed assets:
UUC"UH1,," and constructions	20 years
and machinery	5, 6 and years
hardware and communication	5 years
Inventory and tools	3 and 5 years
Other fixed assets	2 and 3 years

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

Investment properties

Investment properties land in of the stock company, which market value is to grow. Investment have been filed investments properties are their value. No later than on the end of the year of account the property. Any in the market value of the investments any other activities related to are being shown in the profit and loss account.

assets

('",rnr"H11\/ 101IogiCai assets are assets, which are characterized by and in value as a result of in biological assets includes breeding animals bulls, which are for getting agricultural sale. Biological assets are in the value.

Stock

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

Net sales value is the sales of stock fixed less the stock and costs. In cases when the stock net selling value normal ~V'U~'UH is lower than their cost provisions are made for these stocks for decrease of their value down to the net sales value.

All direct costs, which are related to production of 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 them in stocks as goods 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 evidence to the fact that the Com]:)an:y will not be able to receive the debts in full value according to the initially fixed repayment dates. Provisions for doubtful and bad debts are the difference between the amortized purchase value of receivables and the recoverable value. The recoverable value of receivables is the current value of planned cash flow.

Provisions

Provisions are when the has liabilities (legal or due to some event and there is a probability that the performance of these liabilities will require outflow of economic resources from the and the amount of liabilities can be assessed.

Corporate income tax

period consists of the tax calculated for the period and deferred tax. income tax is in the profit or loss account.

Calculated tax

The tax calculated for the reporting has been calculated in compliance with the rPn'<'ot<: of the Law "On ·"rtv,r<>tp Income Tax" fixing the taxable income and the statutory rate of 15%.

Deferred tax

Deferred A,"",'AT"'!" income tax is calculated for T!"TnT",'" which are caused due to differences in the and its value for tax purposes. The mentioned differences are mainly due to different fixed assets depreciation rates applied in tax and financial accounting, made and losses transferred according to the Company's income tax declaration. Deferred tax is calculated the tax rate 15%.

Subsidies

which are received as a state for for of expenses for maintaining breed bulls, are included in the income of that

Use ofassumptions

When the financial statements, the Company's management has to make calculations and which recognition 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 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 Compa~y'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	75933	82031	108043	116 720
Milk laboratory services	45245	45 351	64378	64529
Treatment of supervisory data	16790	13 156	23890	18719
Inspection of cows	4838	6 187	6884	8803
Artificial insemination of livestock	4459	4700	6344	6687
Immune-genetic laboratory services	2916	1 781	4 149	2534
Other income	6769	15496	9631	22049
	156950	168702	223319	240041

Distribution of net sales according to the geographical markets:

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Latvia	156950	J68 207	223 319	239337
Estonia		495		704
	156950	168702	223319	240041

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

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Changes in sperm stock value	16420	54795	23364	77 966
Written-off sperm
Changes in stud bull herd value		7414		10550
	16420	62209	23364	88516

(5) Other operating income

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
State support for agricultural	7093	3522	------------------ 10093	5012
	7093	3522	10093	5012 ~-~~~=

(6) Personnel costs

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Salaries for work	61 161	63534	87024	90401
State social insurance contributions	14547	15263	20698	21 718
Health insurance	3351	2400	4768	3414
Other costs	472	1 289	672	1 834
	79531	82486	113 162	117367

(7) Other operating expenses

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Insurance payments	519	1018	739	1 448
Business trip expenses	310	347	441	494
Selling expenses	1 147	1 830	1 633	2604
Company's management and administrative expenses	6550	6424	9319	9141
Audit of the financial statement		70		100
Other costs	1 826	1 828	2597	2601
	10352	11 517	14729	16388

(8) Other interest income and similar income

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Income from securities	271	85	385	120
Interest income	1 383	1 356	1 968	1930
Contractual penalties from clients		124		176
Recovered doubtful and bad debts	497		707
	2151	1565	3060	2226

(9) Interest payments and similar costs

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Losses from foreign currency exchange rate fluctuations	725	885	1 032	1 259
Employees' leisure and other costs not connected with operating activities	661	530	940	754
	1386	1 415	1972	2013

(10) Other taxes

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Real estate tax	1 107	----------------- 1 091	1 575	1 552
	1107	1 091	1575	- 1 552

(11) Intangible assets

	Concessions, patents, licenses, trade marks and similar rights	Total	Concessions, patents, licenses, trade marks and similar rights	Total
	LVL	LVL	EUR	EUR
Initial value
31.12.2009	720	720	1024	1024
Purchased
Disposed
31.03.2010	720	720	1024	1024
Accrued depreciation
31.12.2009	718	718	1 022	1022
Calculated depreciation	2	2	2	2
Depreciation of excluded investments
31.03.2010	720	720	1024	1024
Book value as at 31.12.2009	2	2	2	2
Book value as at 31.03.2010

(12) Report on movement of fixed assets

	Land, buildings and constructions	Technological equipment and machinery	Other fixed assets	Costs of up-building of fixed assets	Total
	LVL	LVL	LVL	LVL	LVL
Initial value
31.12.2009	255107	357311	85951		698369
Purchased		2498	I 674	468	4640
Disposed			(I 211)		(1 211)
31.03.2010	255107	359809	86414	468	701 798
Accrued depreciation
31.12.2009	99340	295252	70442		465034
Calculated depreciation	3526	12056	1 961		17543
Depreciation of excluded fi xed assets			(1211)		(1 211)
31.03.2010	102866	307308	71192		481366
Book value as at 31.12.2009	155767	62059	15509		233335
Book value as at 31.03.2010	152241	52501	15222	468	220432

As at 31 March 2009, the cadastral value of real estate -land and constructions - was L VL 230216 As at 31 March 20 I 0, the cadastral value of real estate - land and constructions - was L VL 113 994

	Land, buildings and constructions	Tech nological equipment and machinery	Other fixed assets	Costs of up-building of fixed assets	Total
	EUR	EUR	EUR	EUR	EUR
Initial value
31.12.2009	362985	508408	122297		993690
Purchased		3554	2382	665	6601
Disposed			(1 723)		(1 723)
31.03.2010	362985	511962	122 956	665	998568
Accrued depreciation
31.12.2009	141 348	420 106	100230		661 684
Calculated depreciation	5018	17 153	2790		24961
Depreciation of excluded fixed assets			(1 723)		(1 723)
31.03.2010	146366	437259	101 297		684922
Book value as at 31.12.2009	221 637	88302	22067		332006
Book value as at 31.03.2010	216619	74703	21659	665	313 646

As at 31 March 2009, the cadastral value of real estate -land and constructions - was EUR 327 568 As at 31 march 20 I 0, 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	23 114
Increase/decrease of value due to revaluation
Book value as at 31.03.2009	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 31.03.2010	120000	120000	170745	170745

(14) Other securities and investments

	LVL	EUR
Purchase value as at 31.03.2009	3480	4952
Book value as at 31.03.2009	3480	4952
Purchase value as at 31.03.2010	3480	4952
Book value as at 31.03.2010	3480	4952

(15) Ready-made products and goods for sale

	2010	2009	2010	2009
	LVL	LVL	EUR	EUR
Bull semen	306469	303 131	436066	431 317
Other goods for sale	4702	13069	6690	18595
	311 171	316200	442756	449912

(16) Trade receivables

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Accounting value of trade receivables	133724	91 194	190272	129758
Provisions for doubtful trade receivables	(3 478)	(21 )	(4949)	(30)
	130246	91 173	185323	129728
Other receivables (17)
	2010 LVL	2009 LVL	2010 EUR	2009 EUR
VAT for received goods and services	824	707	1 173	1006
Overpayment of taxes	6690	2826	9519	4021
Other receivables	210	170	299	24 1
	7724	3703	10991	5268

(18) 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
Insurance	40	45	56	63
Press subscription		5		8
	40	50	56	71

(19) Other securities and shareholding in capitals

		2010			2009
	Number	Market	Amount	Number	Market	Amount
		price	LVL		price	LVL
SEB Lats reserve fund	15044	1.42055	21 371	3885	1.31548	5 III
			21 371			5111
		2010			2009
	Number	Market	Amount	Number	Market	Amount
		price	EUR		price	EUR
SEB Lats reserve fund	15044	2.02126	30408	3885	1.87176	7272
			30408			7272

Money market fund shares have no guaranteed interest rate. In 20 I 0, the profitability was about 5.22 %. Exclusion of money market fund shares is carried out at the Company's request.

(20) 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		4651		7312
Cash in bank	LVL		96094		138 142
Cash in bank	EUR	52351	36792	23036	16 190
			137537		161 644

Break-down of cash according to currencies:		2010		2009
		Currency	EUR	Currency	EUR
Cash in hand	LVL	4651	6618	7312	10404
Cash in bank	LVL	96094	136729	138 142	196 558
Cash in bank	EUR		52351		23036
			195698		229998

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

....

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Ordinary conunon shares with voting rights	421 440	421 440	599655	599655
Shares owned by the Board without voting rights	1 000	1 000	1 423	1 423
	422440	422 440	601 078	601078

421440 shares or 99.8% of the share capital are ordinary conunon 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 repOlting period	9856	44 138	14024	62802
Average weighted number of shares during the year	422440	422440	422440	422440
	0.023	0.104	0.033	0.149

(22) Provisions for deferred tax

	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Temporary differences in fixed assets depreciation	59881	88 518	85203	125 950
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 the period	9961	13067	14174	18593
Increase or decrease	(4249)	(3 106)	(6047)	(4 419)
Deferred tax provisions at the end of the period	5712	9961	8127	14174

(23) Taxes and social insurance payments

Tax type	Balance as at	Calculated in	Paid in	Balance as at
	31.12.2009	2010	2010	31.03.2010
	LVL	LVL	LVL	LVL
Corporate income tax	(6690)	3975	(3975)	(6690)
Value added tax	5251	20880	(18247)	7884
Social insurance contributions	6553	19982	(19622)	6913
Personal income tax	3673	12863	(12060)	4476
Real estate tax		I 107	(1 107)
Nature resource tax	18	21	(18)	21
Business risk duty	10	32	(31 )	11
	8815	58860	(55060)	12615
Including:	2009			2010
	LVL			LVL
Tax overpaid	(6690)			(6690)
Tax due	15505			19305

Tax type	Balance as at 31.12.2009 EUR	Calculated in 2010 EUR	Paid in 2010 EUR	Balance as at 31.03.2010 EUR
Corporate income tax	(9 519)	5656	(5 656)	(9 519)
Value added tax	7472	29709	(25 963)	11 218
Social insurance contributions	9324	28432	(27 920)	9836
Personal income tax	5226	18303	(17 160)	6369
Real estate tax		1 575	(1 575)
Nature resource tax	26	30	(26)	30
Business risk duty	14	46	(44)	16
	12543	83751	(78 344)	17950
Including:	2009			2010
	EUR			EUR
Tax overpaid	(9 519)			(9 519)
Tax due	22 062			27 469
(24) Accrued liabilities
	2010 LVL	2009 LVL	2010 EUR	2009 EUR
Vacation reserve	21 800	22 109	31 019	31 458
	21800	22109	31019	31458

(25) Number of persons employed by the Company

A verage number of persons employed during the reporting year	42	42
	2010	------ 2009

(26) 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	1647	I 675	2344	2383
Board Members' salaries for work, including state social insmance contributions	7036	6879	10011	9788
Total remuneration to management members	8683	8554	12 355	12171

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 three months of the 20 I 0 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 makslTgas apseklosanas stacija" assets, liabilities, financial condition and profit.

Interim statements for 3 months of2010 have not been audited by Sworn Auditor.

, / ;f;/1C-(/-";-{J

Sarrn1te Arcimovica

Chairman of th e Board Member ofth e Board, Head Member of th e Board, Head ofProduction and ofFinancial and Marketing Department in Accounting Department branch of Laboratory

26 May 2010