Quarterly Report • Sep 20, 2016
Quarterly Report
Open in ViewerOpens in native device viewer
..... Sediu Social: Piata Montreal, nr.10,Cladirea
World Trade Center, intrarea F,etaj1, biroul nr.1.50 011469, Sector 1, Bucuresti, Romania Sediu Administrativ: Str. Golului, Nr.1, 320053, Reșița, Romania
Tel: +40-(0)255-217111 - Fax: +40-(0)255-223082 [email protected] · http://www.ucmr.ro
U.C.M. Resita S.A.
societate in insolventa in insolvency en procedure collective
According to the Regulation C.N.V.M. no. 1/2006
Date of the report: 16.11.2015 Name of the issuing company: U.C.M. Resita S.A. Registered office: Montreal Square, No. 10, World Trade Center Building, Entrance F. 1st Floor, Office no. 1.50, Sector 1, Bucharest Administrative headquarters: Resita, Golului Street, no. 1, 320 053, Caras-Severin County Phone No.: 0255/217111; Fax: 0255/223082 Unique registration code: 1056654 Number at the Trade Register Office: J 40/13628/2011 Subscribed and paid-up capital: 10,993,390.40 lei Regulated market where the issued securities are traded: Bucharest Stock Exchange Important events to report: Quarterly Report for the third quarter of 2015
S.C. U.C.M. Resita S.A. informs the general public about the availability of the Report for the third quarter of the year 2015 starting on 16.11.2015, 10 AM.
Please note that the financial statements at 30.09.2019 were not audited.
The Quarterly Report can be found, as of 16.11.2015, on the website http://www.ucmr.ro
As of the same date, the persons interested may, on written request, obtain a copy of these documents. The application will be submitted/sent directly to the administrative headquarters of the company (workstation) located in Resita, Golului Street, no. 1, 320053, Caras-Severin County or at fax number 0255/223082.
Pagina 1 din 1
(Company in insolvency, en procedure collective)
Interim Separate Financial Statements prepared in accordance with the Order of the Minister of Finance no. 1286/2012 on September 30, 2015
(Company in insolvency, en procedure collective)
Interim Separate Financial Statements on September 30, 2015
[All amounts are given in lei (RON) unless otherwise stated]
| Report of Special Trustees on September 30, 2015 | page | $3 - 6$ |
|---|---|---|
| Statement of Special Trustees | page | 7 |
| Statement of Financial Position | page | 8 |
| Statement of overall result | page | 9 |
| Statement of Changes in Shareholders' Equity | page | 10 |
| Statement of Cash Flows | page | 11 |
| Indicators | page | 12 |
| Explanatory Notes to the Interim Financial Statements | page | $13 - 26$ |
(Company in insolvency, en procedure collective)
The reports for the III quarter of 2015 have been prepared in accordance with OMF 1286/2012, relating to approval of accounting regulations compliant with the European Directives and with OMF 1013/24.07.2013 for the approval of the accounting reporting system on 30.09.2015.
The statement of assets, liabilities and equity on 30.09.2015 is as follows:
| Lei | ||
|---|---|---|
| No. | Balance sheet items | 30.09.2015 |
| Fixed assets | 188.608.193 | |
| 2 | Current assets | 264.131.470 |
| 3 | Prepayments | 549.131 |
| TOTAL ASSETS | 453.288.794 | |
| 4 | Liabilities | 670.949.339 |
| 5 | Revenues in advance | 1.337.863 |
| 6 | Provisions | 246.472.627 |
| Equity | (465.471.035) | |
| TOTAL LIABILITIES | 453.288.794 |
Compared to the beginning of 2015, on 30.09.2015 the total assets registered a decrease of 2.07%, due to the decrease in fixed assets by 3.16% and by 1.46% in current assets.
The stocks increased by 13.62%, of which the production in progress increased by 58.92% and the stock of raw materials and consumables decreased by 23.47%.
In terms of current liabilities, they increased by 0.94%.
In the company's assets were recorded the following changes compared with the existing values at the beginning of 2015.
| No. | Designation of indicators | Differences |
|---|---|---|
| Fixed assets | (6.164.033) | |
| Current assets | (3.910.644) | |
| Prepayments | 515.162 |
The existing current assets registered the following evolution compared to the end of previous year:
| Lei | ||
|---|---|---|
| No. | Designation of indicators | Differences |
| Stocks, of which: | 1.078.634 | |
| 1.a | - raw materials and consumables | (825.946) |
| 1.b | - fixed assets held for sale | |
| 1.c | - production in progress | 1.909.634 |
| 1.d | - finished products and goods | (5.054) |
| 2 | Other current assets, of which: | (4.989.278) |
| 2.a | - receivables | (669.269) |
| 2.b | - short-term financial investments | (4.243.029) |
| 2.c | - cash on hand | (76.980) |
(Company in insolvency, en procedure collective)
In the company's liabilities, the economic changes compared to the beginning of 2015, are as follows:
| No. | Designation of indicators | Differences |
|---|---|---|
| Equity | (11.975.101) | |
| Liabilities | 6.249.431 | |
| -3 | Revenues in advance | (604.156) |
| Provisions for risks and expenses | (3.229.689) |
The profit and loss account highlights the following indicators:
| Lei | |||
|---|---|---|---|
| No. | Designation of indicators | 30.09.2014 | 30.09.2015 |
| 1 | Turnover (2+3-4) | 16.348.854 | 23.603.105 |
| $\overline{2}$ | Production sold | 16.388.569 | 23.637.425 |
| 3 | Revenues from sale of goods | 18.616 | 4.608 |
| 4 | Trade discounts granted | 58.331 | 38.928 |
| 5 | Chances in stocks: Credit balance |
137.718 | 941.836 |
| Debit balance | Ω | O | |
| 6 | Capitalized production | 464.838 | 51.295 |
| 7 | Production of accounting year (1+/-5+6) | 16.951.410 | 24.596.236 |
| 8 | Other operating revenues | 411.128 | 4.547.082 |
| 9 | Operating revenues, total (7+8) | 17.362.538 | 29.143.318 |
| 10 | Financial revenues, total | 1.165.737 | 1.095.769 |
| Total revenues (9+10) | 18.528.275 | 30.239.087 |
The structure of operating revenues is as follows:
| No. | Designation of indicators | 30.09.2014 | 30.09.2015 |
|---|---|---|---|
| Turnover | 94.16% | 80.99% | |
| 2 | Changes in stocks | 0.79% | 3.23% |
| 3 | Capitalized production | 2.68% | 0.18% |
| 4 | Other operating revenues | 2.37% | 15.60% |
| TOTAL | 100.00% | 100.00% |
The expenses that have a higher share in the total expenses of the company are shown below:
| Lei | |||
|---|---|---|---|
| No. | Designation of indicators | 30.09.2014 | 30.09.2015 |
| Material expenses | 3.555.500 | 7.010.004 | |
| 2 | Other external expenses (energy and water) | 2.969.388 | 3.439.958 |
| 3 | Expenses on goods | ||
| 4 | Expenses with the personnel | 21.718.132 | 21.760.552 |
| 5 | Adjustments | 20.252.742 | 2.542.744 |
| 6 | Other operating expenses | 4.624.311 | 4.760.588 |
| Operating expenses, total | 53,120,073 | 39.513.846 |
(Company in insolvency, en procedure collective)
Compared to the same period of 2014, on 30.09.2015 was noticed a decrease in operating expenses by 25.61%, this was due mainly to "Value adjustments on tangible and intangible assets, real estate investments and biological assets measured at cost" as well as the "Adjustments for provisions".
The structure of operating expenses is as follows:
| Lei | |||
|---|---|---|---|
| No. | Designation of indicators | 30.09.2014 | 30.09.2015 |
| Material expenses | 6.69% | 17.74% | |
| $\overline{2}$ | Other external expenses (energy and water) | 5.59% | 8.71% |
| 3 | Expenses on goods | 0.00% | $0.00\%$ |
| 4 | Expenses with the personnel | 40.88% | 55.07% |
| 5 | Adjustments | 38.13% | 6.44% |
| 6 | Other operating expenses | 8.71% | 12.05% |
| TOTAL | 100.00% | 100.00% |
The evolution of the results is shown below:
| Lei | |||
|---|---|---|---|
| No. | Designation of indicators | 30.09.2014 | 30.09.2015 |
| Operating revenues | 17.362.538 | 29.143.318 | |
| 2 | Operating expenses | 53.120.073 | 39.513.846 |
| 3 | Operating result | (35.757.535) | (10.370.528) |
| 4 | Financial revenues | 1.165.737 | 1.095.769 |
| 5 | Financial expenses | 2.639.968 | 2.453.948 |
| 6 | Financial result | (1.474.231) | (1.358.179) |
| 7 | Profit tax | ||
| 8 | Net result of the accounting year | (37.231.766) | (11.728.707) |
The net result of the accounting year at the end of the III quarter of 2015 is materialized in a net loss of 11,728,707 lei, decreasing by 68.50% compared to the same period of 2014 when net loss recorded was of 37,231,766 lei.
SC UCM Resita SA continued its activity in the III quarter of 2015 in accordance with the status of company in insolvency proceedings, with the intention of reorganization, as a company which has retained the right of management through the Special Trustees, under the supervision of the Official Receiver.
The management of the Company has been and is concerned about the ongoing monitoring of expenses, in order to ensure the economic - financial balance, to keep its business partners and to attract new ones in order to increase the revenues, so as to overcome this difficult phase.
On 30.09.2015, the turnover achieved by SC UCM Resita S.A. was of 23,603,105 lei, growing by 44.37% compared to the same period of 2014.
(Company in insolvency, en procedure collective)
Even in the current economic situation, the Company has a strategic position, a tradition and a particular technical potential that can be considered as basic premises in the development of production and service activities in future periods.
Special Trustees:
Cosmin URSONIU
Nicoleta Liliana IONETE
(Company in insolvency, en procedure collective
The Special Trustees of the Company hereby declare that they assume their responsibility for the preparation of the Interim Financial Statements on September 30, 2015.
The Special Trustees of the Company confirm, regarding the Interim Financial Statements on September 30, 2015 the followings:
This statement is in accordance with Art. 30 of the Accounting Law No. 82/1991, republished.
(Company in insolvency, en procedure collective
| Reference Statement of financial position IAS $1.10(a)$ , 113 |
Balance sheet items | Balance on 31.12.2014 |
Balance on 30.09.2015 |
|---|---|---|---|
| IAS 1.54(a) | Tangible fixed assets | 185.742.620 | 179.298.181 |
| IAS 1.54(c) | Intangible fixed assets | 35.444 | 20.294 |
| Financial fixed assets | 8.994.162 | 9.289.718 | |
| Total of fixed assets | 194.772.226 | 188.608.193 | |
| IAS 1.54(h) | Trade receivables and receivables from related p | 20.576.166 | 20.785.860 |
| IAS1.54(g) | Stocks | 7.918.960 | 8.997.594 |
| IAS 1.54(o), 56 |
Deferred tax receivables | 229.169.276 | 229.169.276 |
| IAS1.54(h) | Other receivables | 5.011.512 | 4.132.548 |
| IAS 1.54(i) | Cash and cash equivalents | 5.366.200 | 1.046.192 |
| Expenses in advance | 33.969 | 549.131 | |
| Total current assets | 268.076.083 | 264.680.601 | |
| TOTAL ASSETS | 462.848.309 | ||
| 453.288.794 | |||
| IAS 1.54(m) | Loans bearing interest | 35.176.816 | 37.985.297 |
| $IAS$ $1.54(k)$ | Suppliers and other trade payables | 36.668.743 | 36.825.131 |
| $IAS$ $1.54(k)$ | Taxes and other debts | 571.448.258 | 574.732.819 |
| $IAS1.54(o)$ , | Deferred tax debts | ||
| 56 $\overline{IAS1.54(l)}$ |
Provisions | 21.406.091 | 21.406.091 |
| LAS 1.55. | 249.702.316 | 246.472.627 | |
| 20.24 | Revenues in advance | 1.942.019 | 1.337.863 |
| Total debts | 916.344.243 | 918.759.828 | |
| Total assets minus Total debts | (453.495.934) | (465.471.035) | |
| Registered capital | 601.685.084 | 601.685.084 | |
| Revaluation reserves | 179.945.016 | 174.270.642 | |
| Legal reserves | 1.947.065 | 1.947.065 | |
| Other reserves | 16.088.620 | 16.088.620 | |
| Carried over result | (1.253.770.751) | (1.247.733.739) | |
| Current result | 641.086 | (11.728.707) | |
| Profit sharing, establishing of legal reserves | (32.054) | ||
| Total equity | (453.495.934) | (465.471.035) | |
| TOTAL LIABILITIES | 462.848.309 | 453.288.794 |
Special Trustees:
Cosmin URSONIU
Nicoleta Liliana IONETE
Res M Polvens Insolvență = en p
(Company in insolvency, en procedure collective
$-Lei -$
| Reference Statement of overall result IAS 1.10(b), 81(a) |
Explanations | Balance on 30.09.2014 |
Balance on 30.09.2015 |
|---|---|---|---|
| LAS 1, 82(a) LAS 1.99.103 |
Operating revenues | 17.224.820 | 28.201.482 |
| IAS 1.99, 103 | Cost of sales | 36.896.962 | 28.524.541 |
| Gross operating profit (loss) | (19.672.142) | (323.059) | |
| LAS 1.99, 103 | Distribution costs | 12.820 | 10.215 |
| Administrative expenses | 16.072.573 | 10.037.254 | |
| IAS 1, 82(a) IAS 1.99,103 |
Financial revenues | 1.165.737 | 1.095.769 |
| IAS 1.82(b) | Financial expenses | 2.639.968 | 2.453.948 |
| IAS 1.85 | Result before tax | (37.231.766) | (11.728.707) |
| IAS 1.82(d), IAS 12.77 | Income tax expenses | ||
| Net profit (loss) | (37.231.766) | (11.728.707) | |
| Establishing of legal reserves under Law 31/1990 | |||
| IFRS 5.33(a), 1.82(e) | Profit attributable to: | ||
| IAS 1.83(b)(ii) | Owners of the Company | ||
| $IAS$ $1.83(h)$ | Non-controlling interests |
| Ċ ĭ J ί ۷ |
č Ξ |
|---|---|
| E C |
|
| ر م |
. רְ |
| F | |
Interim Separate Financial Statements on September 30, 2015 [All amounts are given in lei (RON) unless otherwise stated]
Lei-
| Explanation / Description | Registered capital |
Revaluation reserves | reserves legal |
representing surplus from Carried over result |
reserves Other |
Carried over result | Current result accounting of the |
sharing Profit |
Total |
|---|---|---|---|---|---|---|---|---|---|
| revaluation reserves |
year | ||||||||
| N | n | L) | 6 | œ | o. | å | |||
| Balance on 01 January 2015 | 601.685.084 | 179.945.015 | 1.947.065 | 210.327.619 | 16.088.620 | (1.464.098.370) | 641.086 | (32.054) | (453.495.934) |
| Changes in equity - September 30, 2015 | |||||||||
| Transfer of surplus from revaluation reserves | (5.674.374) | 5.674.374 | |||||||
| Transfer of the result of the accounting year 2014 to the | |||||||||
| carried over result | 609.032 | (609.032) | ٥ | ||||||
| Account closing - profit sharing | (32.054) | 32.054 | |||||||
| Registration of accounting errors from previous years to the | |||||||||
| carried over result | (246.393) | (246.393) | |||||||
| Increases in legal reserves from the result of the current | |||||||||
| accounting year | |||||||||
| Restatement of IFRS, of which: | |||||||||
| Adjustment of benefit provisions for employees' retirement | |||||||||
| Impact impozit amanat recunoscut pe seama rezultatului | |||||||||
| reportat | |||||||||
| Net result of the current accounting year | (11.728.707) | (11.728.707 | |||||||
| Balance on September 30, 2015 IFRS | 601.685.084 | 174.270.641 | 1.947.065 | 216.001.993 | 16.088.620 | (1.463.735.732) | (11.728.707) | (465.471.035) | |
The legal reserves of the Company on September 30, 2015, established under the Law of Trading Companies, are in amount of 1,947,065 lei.
The legal reserve of the Company is partially formed under the Law of Trading C
their balance reaches 20% of the registered capital of the CoMpanes,;
We note that on September 30, 2015 the Company has Wret reached the maximum level of the legal reserves.
(Company in insolvency, en procedure collective
| No. | September 30, 2014 | September 30, 2015 | |
|---|---|---|---|
| A | B | 3 | $\overline{3}$ |
| OPERATING ACTIVITIES | |||
| Net profit + Result carried over from correction of accounting errors | 1 | (37.446.837) | (11.975.100) |
| Adjustments for: | |||
| Adjusting the value of tangible and intangible assets | $\overline{2}$ | 16.494.548 | 6.523.189 |
| Adjusting the value of financial assets | 3 | (147.682) | (276.909) |
| Expenses / (Revenues) with adjustments for depreciation of current | |||
| assets | 4 | (526.374) | (797.453) |
| Adjustments to the provisions for risks and expenses | 5 | 4.225.974 | (3.229.689) |
| Expenses with the donations granted | 6 | 2.500 | 1.500 |
| Revenues from interests and other financial income | 7 | (594.840) | (419.005) |
| Expenses with interests and other financial income | 8 | 2.368.391 | 3.143.215 |
| Cash flow before changes in working capital (row 1 to 8) | 9 | (15.624.320) | (7.030.252) |
| Decrease / (Increase) - customers and other assimilated accounts | 10 | 6.244.518 | 11.214 |
| Decrease / (Increase) in stocks | 11 | (208.263) | (224.346) |
| (Decrease) / Increase - suppliers and other assimilated accounts | $\overline{12}$ | 4.408.501 | 2.925.642 |
| Cash flow from operating activities (row 9 to 12) | 13 | (5.179.564) | (4.317.742) |
| Revenues from interests | 14 | 282.364 | 53.993 |
| Net Increase / (Decrease) in restraint cash | 15 | 243.521 | (132.169) |
| Cash flow obtained from operating activities (row 13 to 15) INVESTING ACTIVITIES |
16 | (4.653.679) | (4.395.918) |
| Cash payments for long-term purchasing of land and other assets | 17 | (458.298) | (63.600) |
| Net cash used in investing activities (row 17) | 18 | ||
| FINANCING ACTIVITIES | (458.298) | (63.600) | |
| Subsidies granted | 19 | (2.500) | (1.500) |
| Revenues from dividends | 20 | 56.489 | 8.840 |
| Net cash used in financing activities (row 19 to 20) | 21 | 53.989 | 7.340 |
| Net Increase / (Decrease) in cash and cash equivalents (row 16+18+21) | 22 | (5.057.988) | (4.452.178) |
| Cash and cash equivalents at the beginning of the year | 23 | 12.959.804 | 5.008.465 |
| Cash and cash equivalents at the end of the period (row 22+23) | 24 | 7.901.816 | 556.287 |
Cosmin URSONIU
Nicoleta Liliana IONETE
(Company in insolvency, en procedure collective
Interim Separate Financial Statements on September 30, 2015 [All amounts are given in lei (RON) unless otherwise stated]
| Indicator | Calculation method | Value |
|---|---|---|
| 1. Current liquidity | $1 = 2/3$ | 0,39 |
| 2. Current assets (lei) | 264.131.470 | |
| 3. Current liabilities (lei) | 3 | 670.949.339 |
| 4. Level of indebtedness | $4 = 5/6$ | #N/A |
| 5. Borrowed capital (lei) | 5 | 0 |
| 6. Capital employed (lei) | 6 | (465.471.035) |
| 7. Turnover ratio of customer debits (days) | $7 = 8/9 \times (365/4*3)$ | 224 |
| 8. Average balance of trade receivables (lei) | 19.273.812 | |
| 9. Turnover (lei) | g | 23.603.105 |
| 10. Turnover ratio of fixed assets (days) | $10 = 11/12 \times (365/4^*3)$ | 2.187 |
| 11. Fixed assets (lei) | 188.608.193 | |
| 12. Turnover (lei) | 12 | 23.603.105 |
Special Trustees:
Cosmin URSONIU
(Company in insolvency, en procedure collective)
IAS 1.138 (a), (b), UCM RESITA S.A. - (company in insolvency, en procedure collective) is a joint stock company with the headquarters in Romania.
IAS 1.51(a)-(c) The separate financial statements, in accordance with IFRS, has been prepared for the interim accounting year ended on September 30, 2015.
The main activity of the Company is the manufacture of engines and turbines (except aircrafts, vehicles and motorcycles) - CAEN Code: 2811.
The Company was incorporated and registered at ONRC based on the Government Decision (GD) no. 1296/1990 completed and modified by GD no. 334/1991, operating under the laws of Romania.
On September 30, 2015 the registered office of UCMR was in Bucharest, Montreal Square 10, World Trade Center Building, Entrance F, 1st Floor, Office no. 1.50, Sector 1, as mentioned in Endorsement no. 26024/ 21.01.2013, registered at ONRC at no.J40/13628/2011, Fiscal Code RO 1056654, and the administrative headquarters in Resita, Golului Street No. 1.
The main activity of the Company consists in manufacturing and marketing of hydro power units (hydraulic turbines, valves, regulators and hydro generators), hydro mechanical equipment, large hydraulic servomotors, bearings and half-bearing shells, spare parts for Diesel engines and the like.
The Company also provides services for rehabilitation and improvement, specialized engineering and technical assistance in areas related to its main field of activity.
Company's products and services are delivered / rendered both on domestic and foreign markets.
On the domestic market, the main customers are the ones who have as object of activity production of hvdroelectric power, especially HIDROELECTRICA and NIDROSERV, the main foreign customers being also those in the production of hydroelectric power (Austria, Hungary, India, Turkey, etc.).
These separate financial statements have been prepared assuming that the Company will continue its activity without significant changes in the foreseeable future.
IAS 1.16 The Separate Financial Statements have been prepared in accordance with the provisions of Ministerial Order no. 1286/2012 for the approval of Accounting Regulations in compliance with the International Financial Reporting Standards (IFRS) applicable to companies whose marketable securities are admitted to trading on a regulated market (OMPF 1286/2012).
The undersigned, Cosmin URSONIU and Liliana Nicoleta IONETE, in position of Special Trustees of the Company, accept the liability for drawing up the Yearly Separate Financial Statements on September 30. 2015 and confirm that they are in compliance with the applicable Accounting Regulations and the Company will conduct its work under the condition of continuity.
The Company drawn up the Interim Separate Financial Statements for the accounting year on September 30, 2015 in accordance with OMPF 1286/2012, as amended and supplemented.
(Company in insolvency, en procedure collective
[All amounts are given in lei (RON) unless otherwise stated]
These provisions meet the requirements of International Financial Reporting Standards (IFRS) adopted by the European Union (EU), except for IAS 21 - The Effects of change in foreign exchange rates on functional currency.
In order to prepare these Separate Financial Statements in accordance with the legislative requirements in Romania, the functional currency of the Company is considered to be RON ("Romanian LEU").
The Separate Financial Statements presented have been prepared on a historical cost basis.
For all periods up to and including the year ended 31 December 2011, the Company has prepared the Separate Financial Statements in accordance with the accounting principles generally accepted in Romania (OMPF 3055/2009, as amended).
Even if the Company holds shares in three companies and is controlling these companies, the Company has decided not to prepare consolidated financial statements given that these companies are in insolvency/ bankruptcy proceedings. The Company also holds a total of 23 shares in the Romanian Commodities Exchange (BRM), which represents 0.29% of the registered capital of BRM.
The Separate Financial Statements for the year ended on 31 December 2012 were the first of this kind that the Company has prepared in accordance with IFRS, year when it was applied also IFRS1- "First-time Adoption of IFRS".
These Interim Separate Financial Statements have not been audited.
The Company does not apply IFRS issued and not adopted on September 30, 2015 and cannot estimate the impact of non-application of these provisions on the individual financial statements, and intends to apply these provisions only at their entry into force.
In accordance with IAS 27 "Consolidated and Separate Financial Statements", the Company should present consolidated financial statements that strengthen the investments in subsidiaries.
In preparing the consolidated financial statements should be combined the financial statements of the parent company and those of its subsidiaries, item by item, by summing together all similar items of assets, liabilities, equity, revenues and expenses.
On September 30, 2015 the Company has three subsidiaries, two of which are in bankruptcy and their value in the financial statements of the parent company is 0 and the financial assets have been impaired to an extent of 100%, and hold 23 shares in the Romanian Commodities Exchange (BRM), which represents 0.29% of the registered capital of BRM.
Since the subsidiary EUROMETAL Ltd is in bankruptcy, but with no final decision in this regard, and against the subsidiary UCM TURNATE Ltd was initiated the bankruptcy procedure in February 2014, the impact of consolidation of financial statements is practically insignificant.
Thus, in view of the above, the Company has decided not to present consolidated financial statements, considering that the consolidated financial information that should be provided in the statement of financial position and the statement of overall result on September 30, 2015 would not be different significantly from the interim separate financial statements of the Company on September 30, 2015.
The items included in the separate financial statements of the Company are measured using the currency of the economic environment in which the entity operates ("the functional currency"), that means RON.
(Company in insolvency, en procedure collective
[All amounts are given in lei (RON) unless otherwise stated]
According to IAS 1.51 (d), (e), these separate financial statements are presented in RON and all financial information is in RON, rounded to 0 decimal, unless stated otherwise.
Preparation of separate financial statements in conformity with IFRS requires management's use of professional judgments, estimates and assumptions that affect application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses. The actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed regularly. The revisions of the accounting estimates are recognized in the period in which the estimate was reviewed and in future affected periods.
The Company does not apply certain IFRS or new provisions of IFRS issued and not adopted at the date of drawing up the financial statements.
The Company cannot estimate the impact of non-application of these provisions on the financial statements and intends to apply these provisions with the date of their entry into force.
The Company applies IAS 1 - Presentation of Financial Statements (2007) revised, which entered into force on 1 January 2009.
As a result, in the Statement of Changes in Shareholders' Equity, the Company presents to shareholders all amendments thereto.
Comparative information has been reconciled so that they conform to the revised standard. As the impact of changes in accounting policy is reflected only on presentation aspects, there is no impact on earnings per share.
IAS 1 "Presentation of Financial Statements" is governing the basis for presentation of financial statements for general purpose, in order to ensure comparability both with the entity's financial statements for previous periods and with the financial statements of other entities.
The currency used by the Company for evaluation and reporting is the "Romanian Leu" ("RON").
IAS 29. "Financial Reporting in Hyperinflationary Economies", requires that financial statements of companies that are reporting in the currency of a hyperinflationary economy should be made in terms of the current monetary unit at the date of the balance sheet and all amounts must be restated in the same conditions. IAS 29 states that reporting of operating results and financial position in local currency without restatement related to inflation is useless, since the money lose their purchasing power so quickly that a comparison between the value of transactions or of other events that occur at different moments, even within the same reporting period, is wrong. IAS 29 suggests that an economy should be considered hyperinflationary if certain conditions are met; one of them being that the cumulative rate of inflation over a period of three years exceeds 100%.
By 31 December 2003, adjustments were made to reflect the application of IAS 29 "Financial Reporting in Hyperinflationary Economies".
(Company in insolvency, en procedure collective
[All amounts are given in lei (RON) unless otherwise stated]
Application of IAS 29 to specific categories of transactions and balances in the financial statements is presented below:
The monetary assets and liabilities have not been revalued to apply IAS 29 because they are already expressed in terms of the current monetary unit at the date of the balance sheet.
Equity components have been restated by applying the inflation index for the month in which the assets. liabilities and equity components were initially recorded in the financial statements (the date of purchase or contribution) until 31 December 2003. The remaining non-monetary assets and liabilities are not restated using the inflation index, considering that their value is updated as a result of the application of alternative accounting treatments of evaluation during the previous periods.
Preparation of individual financial statements in conformity with IFRS requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, of contingent assets and liabilities at the date of the financial statements and of the reported amounts of revenues and expenses registered during the reporting period. The actual results may be different from these estimates. The estimates are periodically reviewed and, if adjustments are required these are reported in the profit and loss account for the period in which they become known.
The uncertainties related to these estimates and assumptions may cause, in the future, significant adiustments of the values presented in the financial statements, as a result of insolvency proceedings which the Company is involved.
These adjustments are likely to significantly affect the Company's assets that can no longer be achieved under normal operating conditions, in this case being required a massive depreciation in value (possibly more than 50%) due to the very probable recovery by enforcement and / or by the procedure of insolvency. a situation that causes a corresponding damage to the profit and loss account.
In the process of applying the Company's accounting policies, the management has made estimates for provisions, impairment of receivables and stocks, which have significant effect on the values stated in the individual financial statements.
The shares held by the Company are classified (shown) at nominal values and, in accordance with the Law of Trading Companies (L 31/1990) and the articles of incorporation their total value is to be found in the registered capital.
The dividends on holdings of shares (capital), established under Decision of the General Meeting of Shareholders, are recognized as a liability in the period in which their distribution is approved.
The investments held in affiliated entities are presented in the separate financial statements of the Company at cost less any impairment.
The dividends receivable from affiliated entities are recognized when it is set the right of the Company to receive payment.
(Company in insolvency, en procedure collective
The fixed assets, except lands and buildings, are recognized according to the requirements of OMFP 1286/2012 and are shown in the accounts at cost, less the accumulated depreciation and the impairment losses.
The buildings are stated at fair value based on periodic assessments, at least every three years, carried out by independent external evaluators. Any accumulated depreciation at the date of revaluation is eliminated from the gross carrying amount of the asset and the net amount is recorded as revalued amount of the asset. The buildings are stated at revalued amounts on 31.12.2014 and the lands at revalued amount on 31.12.2011.
If a fixed asset includes significant components that have different useful lives, they are accounted (depreciated) individually.
The expenses with repairs or maintenance of fixed assets are made to restore or maintain the value of these assets and are recognized in the comprehensive income on the date they are made, while the expenses made in order to improve the technical performance are capitalized and depreciated over the remaining period of depreciation for that fixed asset.
The fixed assets are depreciated from the month following the date of purchase or the date of commissioning, as appropriate, using their lifetime periods.
Depreciation is calculated using the straight-line method over the lifetime of the fixed assets and/or their components, which is accounted separately.
The terms of depreciation used are as follows:
| • Constructions | $6 - 50$ years | |
|---|---|---|
| • Equipment and machinery | $2-28$ years | |
| $\bullet$ | Other installations, tools and furniture | $2 - 15$ years |
The land and fixed assets in progress are not depreciated and the ongoing investments are depreciated from the date of commissioning.
The estimated useful lives and the depreciation method are reviewed periodically, to ensure they are consistent with the projected evolution of economic benefits generated by the tangible assets.
Tangible assets are derecognized from the balance sheet when the asset exits the equity or when no benefits are expected from the use of the asset. Losses or gains on disposal/sale of fixed assets are recognized in the statement of the comprehensive income.
The intangible assets acquired by the Company are recognized and presented at cost, less accumulated depreciation and impairment losses.
(Company in insolvency, en procedure collective
Depreciation is recognized in the comprehensive income, on a straight line basis, over the estimated lifetime (service life) of the intangible asset.
Most of the intangible assets recorded by the Company are represented by the software programs, which are depreciated linearly over a period of 3 years.
According to IAS 36 Depreciation of Assets, the value of tangible and intangible assets is reviewed annually to identify circumstances that indicate their depreciation.
Whenever the net value of the asset exceeds its recoverable amount, depreciation of its value is recognized in the statement of the comprehensive income for tangible and intangible assets.
The recoverable amount represents the highest value between the net selling price of an asset and its value in use. The net selling price represents the amount obtainable from the sale of the asset in a normal transaction, and the value in use represents the present value of future cash flows estimated if continuing to use the asset and from its sale at the end of its service lifetime. The recoverable amounts are estimated for individual assets or, if this is not possible, for the cash-generating units. Reversal of impairment losses recognized in previous years may occur when there is an indication that the impairment losses recognized for that asset no longer exist or has decreased; the cancellation shall be recorded as revenue.
In accordance with IAS 39 "Financial Instruments: Acknowledgment and assessment", the Company's financial assets are classified into the following categories: held-to-maturity and loans and receivables originated by the Company.
The investments with fixed or determinable payments and fixed maturity, other than loans and receivables originated by the Company, are classified as held-to-maturity.
These financial assets are recognized in the historical cost or at the value determined by their acquisition contract, the cost of acquisition including also the transaction costs, the gains and losses being recognized in the statement of the comprehensive income when the financial assets are derecognized or impaired, as well as through the depreciation process.
Derecognizing of financial assets occurs when the rights to receive cash flows from the asset have expired. or the Company has transferred its rights to receive cash flows from the asset (directly or through a "passthrough" commitment). All normal purchases and sales of financial assets are recognized at the transaction date, i.e. the date when the Company commits to purchase an asset. Normal purchases and sales are those that require delivery of assets within the period generally accepted by the regulations or conventions valid on that market.
The Company has no financial assets at fair value registered in the profit and loss account or financial assets available for sale.
In accordance with IAS 39 "Financial Instruments: Acknowledgment and assessment", the Company's financial debts are classified into the following categories: loans, trade debts and other debts.
(Company in insolvency, en procedure collective
[All amounts are given in lei (RON) unless otherwise stated]
The trade debts are stated at nominal amounts payable for goods or services received. Short and long term loans are initially recognized at the nominal value, representing the amount received under this head, not including the specific costs (fees, interest).
The gains and losses are recognized in the statement of the comprehensive income on derecognizing of debts, as well as through the depreciation process. Derecognizing of financial debts occurs if an obligation is fulfilled, canceled or expires. The financial assets and debts are compensated only if the Company has a legally enforceable right to make compensations and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.
The leasing contracts in which the Company takes substantially the risks and benefits of ownership are classified as financial leasing. The amounts due are included in the short or long term debts, the elements of interest and other costs of financing being recorded in the profit and loss account during the contract period. Assets held under the financial leasing contracts are reflected in the accounting system using the accounts of tangible and intangible assets and are depreciated over their useful lifetime.
The rates paid to the lessor plus the interest is highlighted as a debt in the account 406 "Debts from operations of financial leasing".
The leasing contracts in which a significant portion of the risks and benefits of ownership are assumed by the lessor are classified as operating leasing contracts, the payments (expenses) made under such contracts being recognized in the comprehensive income on a straight-line basis during the contract period, the leased assets are recorded in the accounting system of the lessee, in the off-balance sheet accounts.
Functional currency and presentation currency: the financial statements of the Company are prepared using the currency of the economic environment in which operates.
The functional currency and the currency used for presentation of financial statements is the Romanian Leu ("RON").
Transactions in foreign currency are translated into RON applying the exchange rate at the transaction date.
The monetary assets and liabilities denominated in foreign currencies are revalued in RON at the exchange rate at the balance sheet date.
The gains and losses resulting from differences in foreign exchange rate, realized or unrealized, are recorded in the statement of the comprehensive income.
The exchange rates on September 30, 2015 and 2014 are as follows:
| September 30, 2014 | September 30, 2015 |
|---|---|
| 4.4114 | 4.4167 |
| 3.5019 | 3.9342 |
| 5.6735 | 5.9770 |
| 3.6568 | 4.0442 |
(Company in insolvency, en procedure collective)
[All amounts are given in lei (RON) unless otherwise stated]
The stocks are recorded in the accounting system at the minimum value between the cost and the net value realizable.
The net realizable value represents the estimated selling price to be received under ordinary course of activity, less the costs related to sell.
The value of stocks is based on the weighted average cost, including expenses incurred in acquiring them and bringing to the current location, and in the case of stocks produced by the Company (semi-finished and finished goods, work in progress); the cost includes an appropriate percentage from the indirect costs, depending on the organization of production and the current activity. The inventory method used is that of "perpetual inventory".
At the annual inventory of stocks, the Company identifies the stocks that are not intended for sale contracts in progress or have not been identified as useful in current manufacturing costs or future projects.
The Company's management analyzes and proposes/decides the adjustments (depreciation) of stocks according to the accounting policy approved in this respect and the results of the inventory.
The inventory of stocks shall be made according to the internal procedure and the inventory manual, related both to the needs of the Company and the law in force.
Trade receivables are stated at their nominal value less the adjustments for their depreciation, the adjustments that are carried out where there is objective data and information about the fact that the Company will not be able to collect all amounts in due time.
The Company records depreciations of 100% for trade receivables older than 360 days and for those in dispute.
The cash includes the cash in hand and in bank accounts. Cash equivalents are short-term investments, highly liquid, which can be quickly converted into a sum of money, with the original maturity of maximum three months and have an insignificant risk of change in value.
Records of them are kept on banks, currencies, respectively on pay desks and cash advances holders being evaluated, in case of foreign currency by using their exchange rate (reference rate) with the national currency (RON) released by the National Bank of Romania (BNR).
The debts are initially recognized at the fair value of the consideration to be paid and include the payable amounts, invoiced or not, for goods, works and services.
The costs related to loans are recorded as an expense in the period in which they occur, except the case when the loans are for the construction of assets that are qualified for capitalization. The Company classifies its loans on short-term and long-term, depending on the maturity specified in the credit agreement.
The loans are initially recognized at the net value of withdrawals. They are subsequently carried at the depreciated cost, using the method of effective interest rate, the difference between the value of withdrawals and the redemption value being recognized in the net profit of the period, during the entire loan period.
(Company in insolvency, en procedure collective)
The government grants are recognized when there is reasonable assurance that the grant will be received and all related conditions will be fulfilled. When the grant relates to an expense item, it is recognized as income over the period necessary to match, on a systematic basis, the grant with the costs to be offset. When the grant relates to an asset, it is recognized as deferred income and taken to income in equal amounts over the expected life of the related asset.
When the Company receives non-monetary grants, the asset and the grant are recorded at gross and nominal value and they are reflected in the comprehensive income over the expected life and the patterns of consumption of the benefit related to the underlying asset in equal annual installments. When the credits or similar forms of assistance are provided by the government or similar institutions at an interest rate below the rate applicable on the market, the effect of this favorable interest is regarded as additional government grant.
The Company contributes for its employees by paying contributions to Social Security (pension, health) giving them some benefits upon retirement, according to the period of work in the company (a reward up to 4 average gross salaries per company for a working period in UCM Resita over 25 years, respectively up to 2 average gross salaries per company for a for a working period in UCM Resita under 25 years). These contributions are recognized as an expense when the services are rendered.
In addition to the grants and allowances provided expressly by law, the Company gives to its employees the following benefits:
Both the Company and its employees are legally obliged to pay monthly social security contributions, administered by ANAF and the County Pension Houses. As a result, the Company has no legal obligation to pay in future other amounts related to pension contributions. The Company does not contribute to any other pension plan or retirement benefits and has no other obligations such as those mentioned for its employees.
The tax on profit or losses of the year comprises current tax and deferred tax. The assets and liabilities for current profit tax, for current and prior periods, are recognized at the value expected to be reimbursed by or paid to the taxation authorities.
The current profit tax is calculated in accordance with tax legislation in force in Romania and is based on the results reported in the statement of the comprehensive income of the Company, prepared in accordance with local accounting standards, after adjustments performed for tax purposes. The current profit tax is applied to the accounting profit, as adjusted in accordance with tax legislation at a rate of 16%.
(Company in insolvency, en procedure collective
[All amounts are given in lei (RON) unless otherwise stated]
The tax losses may be carried forward for a period of five years for tax losses realized until December 31, 2008, and for a period of seven years for tax losses carried thereafter.
The deferred profit tax reflects the tax effect of temporary differences between the carrying amount of assets and liabilities used for financial reporting purposes and the tax values used in order to calculate current profit tax. The deferred profit tax, recoverable or payable, is determined using tax rates that are expected to be applicable in the year in which the temporary differences will be recovered or settled. Assessment of the deferred profit tax, payable or recoverable, reflects the tax consequences that would follow from the manner in which the Company expects to realize or settle the carrying amount of its assets and liabilities at the date of the balance sheet.
The assets and liabilities from the deferred tax are recognized regardless of when the temporary differences are likely to be realized.
The assets and liabilities from the deferred tax are not updated. The assets from the deferred tax are recognized when it is probable that there will be sufficient future taxable profits against which the deferred tax can be used. The liabilities from the deferred tax are recognized for all taxable temporary differences.
The revenues from sale of goods are recognized in the comprehensive income at the date when the risks and benefits of ownership on the goods are transferred to the buyer which, in most cases, coincides with the date of invoice (delivery) thereof.
The revenues from the goods sold (delivered) and services rendered are recognized on an accrual basis, respectively at the date of delivery / provision (transfer of ownership) to the customer.
The revenues from interest are recognized in installments (proportionally) as they are invoiced / are generated according to contracts/agreements under which the loans were granted on an accrual basis.
The revenues are recognized when there is no significant uncertainty regarding recovery of the counter benefits due and associated costs or possible returns on the assets.
The expenses are classified and recognized based on the principle of their connection to revenues, respectively their allocation on products, services which make these revenues.
The production cost of stocks is followed on projects and, within these projects, on each individual product and includes direct costs related to production (direct materials, direct labor, and other direct costs attributable to products, including design costs) and the share of indirect costs of production allocated rationally as related to their manufacture.
The general administrative expenses, selling expenses and unallocated share of fixed overhead products (indirect production costs that are relatively constant, regardless of the volume of production) are not included in the cost of stocks but are recognized as expenses in the period in which they occurred.
The Company applies the principle of separation of accounting years for the recognition of revenues and expenses that are classified in three categories (operational, financial and exceptional).
The management believes that the fair values of the Company's financial instruments are not significantly different from their carrying values, due to the short terms of settlement, reduced transaction costs and/or the variable interest rate that reflects current market conditions.
(Company in insolvency, en procedure collective
A provision is recognized when, and only when the Company has a current obligation (legal or constructive) as a result of a past event and if it is probable (more likely to succeed than not be realized) as an output of resources embodying economic benefits, will be required to settle the obligation, and it can make a reasonable estimate of the amount of the obligation. The provisions are reviewed at the end of each accounting vear and are adjusted to reflect the current best estimate. When the effect of money value in time value is significant, the value of the provision is the present value of the expenses required to settle the obligation.
The contingent debts are not recognized in the financial statements. They are disclosed in notes, unless the case when the possibility of an outflow of resources embodying economic benefits is very small.
A contingent asset is not recognized in the financial statements but is disclosed in notes when an inflow of economic benefits is probable.
The events subsequent to the date of the balance sheet are those events, favorable and unfavorable, that occur between the date of the balance sheet and the date when the financial statements are authorized for issue.
The events subsequent to the date of the balance sheet that provide additional information about the Company's position at the date of the balance sheet are subsequent events that led to adjustment of the financial statements.
The events subsequent to the date of the balance sheet that provide information about the conditions that arose after the balance sheet date don't require adjustment of the financial statements and are disclosed in the notes, if they are significant.
A party is considered to be affiliated if by ownership, contractual rights, and family relationship, or otherwise, has the power to control directly or indirectly or to influence significantly the other party.
Affiliated parties include also individuals such as main owners, management and members of the Board of Directors and their families.
According to the International Financial Reporting Standards, an entity is affiliated to a reporting entity if it meets any of the following conditions:
A person who has control or joint control over the reporting entity, has significant influence over the entity or is a member of the key personnel of the entity's management;
(Company in insolvency, en procedure collective
The entity is controlled or jointly controlled by a person or an affiliate member of its family, if that person:
Accounting errors found in the financial statements at the date of their drawing up may refer either to the current accounting year or in previous accounting years, correction will be performed at the date when becoming aware of them.
When recording the operations required to correct the accounting errors, are applied the provisions of IAS 8 - "Accounting Policies, Changes in Accounting Estimates and Errors", stating that the entity must correct retrospectively significant errors of the period in the first set of financial statements which publication was approved after their discovery, by means of: restating the comparative amounts for the prior period presented in which the error occurred or if the error occurred before the first prior period.
According to OMFP 1286/2012, correction of errors related to previous accounting years does not require publication of the revised yearly financial statements for that accounting year, and their correction is performed based on the retained earnings account, without affecting the result of the current accounting vear.
In order to correct the errors for the current accounting year, the accounting entries made wrong are corrected prior to the approval of yearly financial statements, by reversing (red recording / with minus sign or by reverse entry method) the incorrect entry and, simultaneously, the appropriate registration of the operation in question.
The Company creates legal reserves according to Art. 183 of Law 31/1990.
Given the provisions of OMFP 1286 / 201.2, the Company creates legal reserves from the profit of the entity, within the quotas and limits set by the law, but also from other sources provided by the law.
The company considered necessary a change in the accounting policy for recognizing the surplus from revaluation of tangible fixed assets in order to incorporate it into a separate reserve account, as the assets are used by the Company (in proportion as they are depreciated), respectively when the assets are out of the accounting records.
Thus, starting with 2010, it was decided to recognize as accomplished the differences from revaluation of fixed assets in proportion as they are depreciated.
At the meeting of the Board of Directors held on 30.11.2011 was decided to open the general procedure of insolvency, with the intention to reorganize the activity, in this respect the necessary documents being submitted to the Law Court of Bucharest.
By conclusion of the meeting dated 06.12.2011, the syndic judge ordered the opening of insolvency proceedings with the intention to reorganize the activity. The Company the right to manage the activity and to administrate the equity, rights held under the supervision of the Official Receiver.
(Company in insolvency, en procedure collective
[All amounts are given in lei (RON) unless otherwise stated]
In order to reorganize the activity, the Company must submit a restructuring plan in accordance with Law 85/2006 on insolvency proceedings.
The Company Hidroelectica SA reentered in insolvency, following the Decision of the Court of Appeal Bucharest dated 25.02.2014. This led to restrictions of the amounts allocated for the investment plan, as well as for repairs and rehabilitation, but also will reduce its ability to conclude new contracts, which will directly affect the Company's activity.
The Company is considering the high need of repair and modernization projects from S.C. Hidroelectrica S.A., knowing that most of the hydro power plants in Romania are at the end of their life time, in addition, the design costs can be reduced significantly, since such works/services have been made before.
Given the expectations for the development of current activities (operational) and tightening of the general conditions to get credit, the Company has developed a financial restructuring program designed to assure proper operation and compliance with the payment schedules negotiated or to be negotiated with the main categories of creditors.
In preparing these interim financial statements, the management of the Company also supports his statement of compliance with the principle of continuity by the contracts concluded and in progress, namely strategic projects with regard to the Romanian energy system or of other partners.
In order to support business continuity, we state that:
As a result of the final judgments, a new category of claims was born at the Company's Table of Creditors. namely, the category of wage receivables, according to Article 123, paragraph 2 of the Law 85/2006, as follows:
During the meeting held on 20.05.2015, the Committee of Creditors approved extension of the validity of the Guarantee Agreement, credit contract No. 165/21.07.2001, concluded between BCR and UCM Resita until 31.12.2015.
The Minutes of the Committee of Creditors, no. 2947/02.03.2015, ordered appointment of the evaluator DARIAN DRS SA, member of ANEVAR, in order to determine the value of guarantees in accordance with Article 41, paragraph 2 of Law 85/2006.
(Company in insolvency, en procedure collective)
[All amounts are given in lei (RON) unless otherwise stated]
By the indictment of 11.05.2015 issued by the Prosecutor's Office attached to the High Court of Cassation and Justice, the Directorate for Investigating Organized Crime and Terrorism, the Territorial Office of Caras-Severin, in the case no. 7-D/P/2014 was ordered to send to trial the defendants Chebutiu Adrian, Preda Adrian Coriolan and Chebutiu Lăcrimioara-Sofia. From this document results that the defendants Chebutiu Adrian, Preda Adrian Coriolan and Chebutiu Lăcrimioara-Sofia framed an organized criminal group aiming misappropriation of SC U.C.M. Resita S.A., within the meaning to take possession of the know-how consisting of technologies, documents, drawings, manuals, industrial designs in the interest of S.C. HYDRO-ENGINEERING S.A.
U.C.M. Resita S.A. and INET AG have formulated and submitted to the court the request to set as civil party in the criminal proceedings against the defendants prosecuted, requesting to enforce them jointly and severally to pay provisional damages in amount of 17 million Euro, at the exchange rate of B.N.R. valid at the day of payment. The hearing in the case No. 1541/115/2015 was established by the Law Court Arad on 19.11.2015.
Further action is taken in order to:
Planning to increase the efficiency of the Company's business, the Official Receiver, represented by the consortium of VF INSOLVENTA S.P.R.L and EURO INSOL S.P.R.L., has ordered dismissal of 100 employees as of 12.10.2015.
By the final judgment dated 13.10.2015 taken in the file no. 29410/3/2012/a1, before the Court of Law Bucharest, Section VII, was rejected the appeal of UCM Resita. Thus, the claim upheld in the Table of Creditors of the customer Libarom Agri S.R.L. is in amount of 3,706,200 lei, representing the exchange rate difference between the date of the down payment invoice and the date of delivery.
Following the reorganization of the activity and an assessment of the personnel needed, temporary suspension without termination of employment within the period December 16, 2015 - February 29, 2016 was ordered for the personnel of the Company from the working sectors where there is no full load.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.