Quarterly Report • Apr 28, 2017
Quarterly Report
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Separate financial statements For the year ended 31 December 2016 Together with Independent Auditor's Report
| Annual Report of the Company | 1-22 |
|---|---|
| Financial statements and Independent Auditor's Report | |
| Responsibility for the separate financial statements | 23 |
| Independent Auditor's Report | 24 – 30 |
| Separate statement of profit or loss and other comprehensive income | 31 |
| Separate statement of financial position | 32 – 33 |
| Separate statement of changes in shareholders' equity | 34 |
| Separate statement of cash flows | 35 |
| Notes to the separate financial statements | 36 – 85 |
Page
Virovitica, March 2017
| I. | INTRODUCTION AND CORPORATE IDENTITY ……………………….………………………………. | 1 |
|---|---|---|
| II. | Introductory notes……………………………………………………………….………………1 | |
| III. | Corporate identity ……………………………………………………………….……………………………. 1 | |
| IV. | Corporate governance bodies……………………………………………….……………………………2 | |
| V. | SUGAR BEET CONTRACTS AND PURCHASES IN THE MARKETING YEAR 2015/2016 | .3 |
| VI. | RAW MATERIAL PROCESSING, SUGAR PRODUCTION AND SALES …………………….…4 | |
| VII. | Sugar beet processing campaign results in 2016 ………………………………………….……… 4 | |
| VIII. | Technological and output-related raw sugar processing performance ………………5 | |
| IX. | Sugar sales and movements in global prices ……………………………………………………….6 | |
| X. | CREDIT RISK, LIQUIDITY RISK AND CASH-FLOW RISK EXPOSURES ………………………7 | |
| XI. | Financing and liquidity ………………………………………………………………………………….……7 | |
| XII. | Cash flows in 2016 …………………………………………………………………………………………….8 | |
| XIII. | Analysis of balance-sheet structure and movements ………………………………………9 | |
| XIV. | Capital investments in 2016…………………………….………………………….………………………10 | |
| XV. | EMPLOYEES ……………………………………………………………………………….…………………………11 | |
| XVI. | PROFIT AND LOSS | |
| ACCOUNT……………………………………………………………………………………………………………13 | ||
| XVII. | KEY EFFICIENCY RATIOS …………………………………………………………………………………….14 | |
| XVIII. | Debt ratios………………………………………………………………………………………………………14 | |
| XIX. | Activity and profitability ratios ………………………………………………………………………….14 | |
| XX. | OWNERSHIP STRUCTURE AND TRADING IN THE COMPANY'S SHARES ……….………15 | |
| XXI. | ENVIRONMENTAL PROTECTION ………………………………………………………………………16 | |
| XXII. | EXPECTATIONS OF THE COMPANY FOR THE YEAR 2017 ………….……………………………17 | |
| XXIII. | AUDITOR'S OPINION ON THE CONSISTENCY OF THE ANNUAL REPORT WITH THE | |
| AUDITED FINANCIAL STATEMENTS | ||
| XXIV. | APPENDIX 1 - CODE OF CORPORATE GOVERNANCE STATEMENT |
|
| XXV. | APPENDIX 2 - AUDITED FINANCIAL STATEMENTS |
Pursuant to Article 21 of the Accounting Act, VIRO TVORNICA ŠE ERA d.d. Zagreb (hereinafter: "the Company"), as a large entrepreneur, has the obligation to prepare and submit its annual report which is intended for the management and external stakeholders of the enterprise.
The report provides a complex and documented insight into the operations of the company, including all available non-financial and financial information, as well as performance indicators, based on the use of contemporary analytical and statistical methods which comply with applicable international accounting standards.
This Report constitutes, together with the statutory financial statements (Balance Sheet, Profit and Loss Account, Cash Flow Statement) and the notes thereto, a whole.
The Report has been prepared on the basis of data and information from the Production Department, the Sales Department, the Accounting Department, the Planning and Analysis Department, as the owners of the Report, as well as those obtained from VIRO-KOOPERACIJA d.o.o.
Pursuant to Article 7 of the Contract on the Sale of Real Estate, In-process Materials, Spare Parts and Work in Progress dated 27 June 2002, EOS-Z d.o.o. from Zagreb and ROBI d.o.o. from Velika Gorica, as the acquirers of the bankruptcy estate of TVORNICA ŠE ERA VIROVITICA d.d., in bankruptcy, Virovitica, as the debtor-inbankruptcy, committed to form a a new company by contributing the purchased real estate, movable property and other assets and continue the business activity of the debtorin-bankruptcy.
As a result, VIRO, a Croatian production and trade limited liability company (društvo s ograni enom odgovornošću za proizvodnju i trgovinu) was established (hereinafter: "VIRO d.o.o.") on 19 July 2002, the date of entry into the registry of the Commercial Court in Bjelovar, with a registered (subscribed) capital in the amount of HRK 20,000.00 and EOS-Z d.o.o. and ROBI d.o.o. as the founders with the respective initial capital contributions of 51 percent and 49 percent.
Following the full payment of the purchase price to the sellers of the property of the debtor-in-bankruptcy, EOS-Z d.o.o. and ROBI d.o.o. transferred to VIRO d.o.o. the inventories of the in-process materials, spare parts and work in progress, which marked the actual start of the business activity of the new firm, and new indefinite-period employment contracts were signed with 264 employees on 10 September 2002.
Tangible fixed assets were transferred from EOS-Z d.o.o. and ROBI d.o.o. to VIRO d.o.o. in 2003. In the same year, the share capital of the Company was increased to HRK 104,000,000.00.
Based on the Decision adopted in the General Shareholders' Meeting of 21 July 2005 and the entry into the registry of the Bjelovar Commercial Court of 1 September 2005, the Company was transformed from a Croatian limited liability company (d.o.o.) into a Croatian public limited company (dioni ko društvo) and changed its name to VIRO TVORNICA ŠE ERA, dioni ko društvo za proizvodnju i trgovinu (abbreviated firm:
"VIRO TVORNICA ŠE ERA d.d."), with the business shares of HRK 104,000.000.00 being replaced by a total of 1,040,000 registered dematerialised ordinary A-series shares, with a nominal value of HRK 100.00 per share.
The share capital increase was finalised in the first quarter of 2006 by means of cash contributions and public offering of ordinary shares through the trading system of the Zagreb Stock Exchange. The total number of new shares issued was 346,667, all of them registered shares, with a nominal amount of HRK 100.00 each and a total nominal value of HRK 34,666,700.00. The shares were sold at a price of HRK 365.00 each, and the whole issue was subscribed and paid in. As a result, the Company collected a total of HRK 126,533.455.00. Pursuant to the Ruling of the Bjelovar Commercial Court of 17 March 2006, the increase was entered into the Court registry, along with the increase in the share capital by HRK 34,666,700.00, from HRK 104,000,000.00 to HRK 138,666,700.00.
Immediately after the completion of share capital increase process, the shares of the Company were listed on the official Zagreb Stock Exchange Market on 20 April 2006. Based on the Decision adopted by the Shareholders in the General Shareholders' Meeting of 30 August 2006, all the 1,386,667 shares, with a nominal amount of HRK 100.00 each, were replaced with no-par value shares, resulting in the share capital being divided into 1,386,667 registered ordinary shares with no par value.
Based on the Decision adopted by the Shareholders in the General Shareholders' Meeting of 14 December 2006, the Company's share capital was increased by HRK 110,933,360.00, representing a portion transferred from the capital gains and retained earnings, from HRK 138,666,700.00 to HRK 249,600,060.00. The share capital increase was effected without issuing any new shares, and the share capital was divided into 1,386,667 registered ordinary shares with no par value.
Based on the Decision of the Company Shareholders of 29 August 2014, the registered seat of the Company was changed to: Zagreb, Ulica grada Vukovara 269 g.
Viro tvornica še era d.d. has in its ownership portfolio the following companies: Sladorana d.o.o., Županja, a sugar processing company fully (100-percent) owned by VIRO, and, together with Sladorana, an ownership interest of approx. 85 percent in Slavonija Županja d.d., a company primarily engaged in flour production. Viro tvornica še era is also the sole (100-percent) owner of Viro-kooperacija d.o.o.
Supervisory Board:
Management Board
The sugar beet purchases pipeline for the production year 2016 envisaged 6,000 hectares to be sown. The production contract negotiations started in September 2015. The inprocess material for the sawing (mineral fertilisers, seeds, protective agents) were acquired on a timely basis and in sufficient quantities.
The area finally contractually agreed was 5,414 hectares, of which 5,357 were sawn. The contractually agreed area in Croatia was 4,178 hectares, of which 4,132 hectares were sawn, and in Hungary 1,225 hectares were contractually negotiated and sawn.
Because of low sugar prices in 2014 and 2015 and the sugar beet price reduction in 2015, the interest for negotiating the production contracts decreased although the per-tonne price for 2016 was HRK 270 (almost 17.3 percent higher than in the prior year).
The sawing of sugar beet started on 21 March 2016, but was discontinued because of the onset of a rainy period in the third decade of March. The sawing was resumed at the end of March and continued into the beginning of April. Until 5 April, 4,806 hectares (89 % of the total area) were sawn, and until 10 April over 97 percent of the total area was sawn. Repeat sawing took place on 2 hectares only.
Sugar beet sprouted nicely and evenly. The ground coverage ranged from 100,000 to 115,000 plants per hectare, which was on average 110,000 plants per hectare. In 2016, the pest, weed and disease protection of sugar beet was successful. Around 5 percent of the area was treated against beet-root weevil, mainly in the eastern part of the resource area. Weed protection was also successful. With 3 to 4 treatments undertaken in April and May, sugar beet crops were successfully protected against weeds. Thanks to the installation of meteostations and purchases of electronic microscopes, the cercospora progress, intensity and development was monitored and successfully combated, as in the previous two years the disease posed a great problem both in Croatia and the neighbouring countries (the so-called "Cercospora Belt").
The first treatment with fungicides was determined based on a detailed monitoring. The schedule of the remaining treatments during the vegetation period was also defined based on a detailed in-the-field monitoring as well as monitoring the sugar beet crops. Certain new agents and approaches to sugar beet protection from cercospora have been introduced, with the pest being successfully combated with 4 treatments on average. Agro-climatic conditions in the vegetation period favoured the growth and development of the sugar beet crops, especially in July and August when sugar beet requires largest quantities of water, the periods without any longer periods of persistently high day and night temperatures.
The sugar beet harvesting campaign started on 7 September, the harvested crop was transported to the plant on 9 September, and the processing started on 10 September 2016. September 2016 was a very favourable month for harvesting the beet. The precipitation in October was at a level from 80 to 90 mm/m2 , with a total of 11 rainy
days. In October sufficient beet quantities were ensured for an optimum operation of the plant without any problem. Because of the extremely high precipitation in the period from 2 to 12 November, with the rainfall level from 100 to 120 mm/m2, the plant manufactured raw sugar from sugar cane.
The output was much better than in the previous two years, mainly because of improved digestion and higher sugar beet yields. As opposed to the 2014 digestion of 13.57 percent and the 2015 digestion of 14.20 percent, the 2016 digestion increased to 15.96 percent.
The per-sawn hectare output in 2014 was 8.50 tons, in 2015 it was 7.36 tons and in 2016 it reached 11.39 tons, an increase by almost 55 percent, marking the first output above 11 tons of sugar per hectare ever recorded in the past 37 years of production.
In the 2016 campaign a total of 404,023 tons of sugar beet were processed. The actual average yield was 74.35 tons per delivered hectare, the average digestion was 15.96 percent, and the average impurity was 12,90 percent, representing a yield increase by 28.10 percent, an increase in the average digestion by 1.73 percentage points (around 12 %), along with a decrease in impurity by 1.30 percentage points (i.e. 9 %) from 2015.
A novelty in the area of improving the collaboration with the cooperative farmers is the program of promoting crop insurance, with VIRO being among the first ones to implement it in Croatia in 2016. This is an EAFRD funded programme for covering 65 percent of the insurance premium costs, with VIRO covering 15 percent of the cost to cooperative farmers and sugar beet producers only 20 percent, whereby VIRO paid to the insurer participating in this pioneer programme the full policy amount (100%) at the inception.
The production year 2016 was characterised by a very high per-hectare yield of 74.35 tons for sugar beet, a very high digestion of 15.96 percent, and the record-high perhectare sugar yield of 11.39 tons.
Sugar beet was successfully protected from cercospora, and other agrotechnical measures were also properly and timely implemented. Supported by favourable agroclimatic conditions, a record-high yield was achieved in the sugar beet production, with an 80 percent 2016 crop insurance coverage for a considerable number of cooperative farmers out of the rural development programme (EFARD) (65 %) and VIRO funds (15 %).
The 2016 sugar beet processing campaign started on 10 September and lasted until 16 November 2016, with a total processed quantity of 404,022,764 tons of sugar beet.
Out of the total processed 404,022,764 tons of sugar beet, 113,690,000 tons were processed for the Sugar Factory Osijek (Tvornica še era Osijek), with a sugar output of 17,450,000 tons, and 290,332,764 tons were processed for own purposes with a sugar output of 44,468,197 tons.
In addition, 408,809,305 tons of sugar beet were processed for VIRO by other EU member states, out of which 59,950,000 tons of sugar for human consumption.
| No. | TYPE OF PRODUCT | Actual 2015* |
Refining services -outside Croatia 2015 |
Actual 2016* |
Refining services outside Croatia 2016 |
|---|---|---|---|---|---|
| 1. | Sugar, t | 28.089,720 | 40.000,000 | 61.918,197 | 59.950,000 |
| 2. | Molasses, t | 9.072,976 | - | 14.333,272 | - |
| 3. | Dry beet noodles, t | 7.721,322 | - | 17.883,400 | - |
| 4. | Pressed beet noodles, t | 5.037,280 | - | 2.844,240 | - |
* Including the production services for other licensed sugar producers provided in 2015 and 2016.
In 2016 the processing of imported raw sugar took place in several periods. Own raw sugar was processed in the period from 8 June to 2 July, with a total of 32,732.45 tons of raw sugar processed. The 25 day-processing period resulted in a total of 31,809.92 tons of sugar for human consumption, with an average daily output of 1,332.34 tons.
The next processing phase of own raw sugar run in parallel with sugar beet processing in the period from 9 November to 26 November 2016, with a total processed quantity of 12,793.21 tons of sugar beat, of which 12,459.847 tons of retail sugar were produced. In addition, Sladorana Županja produced in November and December 2016 5,943.70 tons of raw sugar for VIRO, of which 5,789,165 tons of sugar for human consumption.
| Item no | Raw cane sugar refining and refined cane sugar production |
Unit of measure |
Actual 2016 | |
|---|---|---|---|---|
| 1. | Sugar | - Total | t | 50,058,932 |
| 1.1. | - Own production | t | 44,269.767 | |
| 1.2. | - Refining service, Županja | t | 5,789,165 | |
| 2. | Molasses | - Total | t | 1,899,476 |
| 2.1. | - Own production | t | 1,661,728 | |
| 2.2. | - Refining service, Županja | t | 237,748 |
The sugar production is structured by two key types of sugar: Beet Sugar and Cane Sugar. The figure below shows that over the last four years since Croatia's accession to the EU the lowest level of beet sugar produced in the factory was reported in 2015 when the Company had to limit the production output at the group level because of a high quantity of out-of-quota sugar being brought forward from the prior year and the production quota limit. Cane Sugar production, which is not subject to the quota system, has remained stable and even over the period.
* Including sugar produced in the factory for other licensed producers.
In the calendar year 2016 the Company the total white sugar quantity sold was 135,161,615 kg, over half of which relate to exports. Given the common distribution and customer requirements, with around 80 percent of the sales are intended for industrial consumption, the analysis by packaging of the goods sold shows that the packaging of 50 kg and above represents the highest share.
Increasing prices are a key feature of the EU and global sugar markets, a trend identified also on the domestic market. In 2016, after exactly five years, an exceptionally rare situation occurred, as in a period of several months (July - October) the average global sugar price (London 5) exceeded the average sugar price on the EU market.
Moreover, the average prices on the EU market in that period were below the prices identified on all major markets. Namely, in that period, the average sugar price in the EU was USD 501, the London exchange price was as high as USD 561, whereas the price in India amounted to USD 535, in Brazil to USD 555, in the USA it was USD 631, in Russia USD 662, and in China it was as high as USD 918.
The movements in the global prices were mostly affected by a lower ratio of sugar stock and sugar consumption, along with the second consecutive marketing year in which the consumption exceeded the production. On the other hand, a slower growth of the average prices on the EU market is a result of multi-annual contracts concluded in periods when the prices were at the record-low levels ever since the European Commission has been monitoring officially the prices of licensed producers, i.e. since 2006.
Still the monthly price movements for 2016 show a year-on-year growth for all the 12 months. A favourable moment for the Company was that it sold sugar at prices higher than those registered in the EU monitoring system, to which all the three Croatian sugar plans have been subject since 2013.
In 2016 VIRO tvornica še era d.d. ensured the funding for the current-year production and other business activities from the following sources:
Current liabilities to suppliers in the total amount of HRK 785,271,785.86 were settled as follows:
| Settlement of trade payables | HRK | % |
|---|---|---|
| Offsetting arrangement | 386,741,477 | 49.2 |
| Wire transfer | 171,614,000 | 21.9 |
| FX money transfers | 105,880,377 | 13,5 |
| Prepayment | 99,138,718 | 12.6 |
| Cession (assignment) | 11,209,675 | 1.4 |
| Advances FX money transfers | 10,687,539 | 1.4 |
Customers settled their liabilities in the total amount of HRK 871,390,741.68 as follows:
| Settlement of trade payables | HRK | % |
|---|---|---|
| Offsetting agreement | 317.438.808 | 36,4 |
| FX money transfers | 216.911.366 | 24,9 |
| Prepayment - FX money transfers | 131.979.525 | 15,1 |
| Wire transfers | 117.859.101 | 13,5 |
| Prepayment - FX money transfers | 38.587.400 | 4,4 |
| Cession | 26.109.411 | 3 |
| Bills of exchange | 22.505.131 | 2,6 |
| I T E M | A M O U N T |
|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |
| Profit before tax | 37,232,143 |
| Depreciation and amortisation | 28,759,248 |
| Increase in current liabilities | 218,992,477 |
| Decrease in current receivables | 19,807,017 |
| Decrease in inventories | |
| Other increases in cash | 20,666,901 |
| I. Total increase in cash flows from operating activities | 325,457,786 |
| Decrease in current liabilities | |
| Increase in current receivables | |
| Increase in inventories | 255,419,802 |
| Other decreases in cash | 6,114,639 |
| II. Total decrease in cash flows from operating activities | 261,534,441 |
| A1) NET INCREASE IN CASH FLOWS FROM OPERATING ACTIVITIES | 63,923,345 |
| A2) NET DECREASE IN CASH FLOWS FROM OPERATING ACTIVITIES | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |
| Cash received from sale of non-current tangible and intangible assets | 217,805 |
| Cash received from sale of equity and debt instruments | |
| Interest received | 1,679,568 |
| Dividends received | 56,703 |
| Other cash received from investing activities | 34,039,033 |
| III. Total cash received from investing activities | 35,993,109 |
| Cash paid for purchases of non-current tangible and intangible assets | 40,711,291 |
| Cash paid to acquire equity and debt financial instruments | |
| Other cash used in investing activities | 5,777,533 |
| IV. Total cash paid in investing activities | 46,488,824 |
| B1) NET INCREASE IN CASH FLOWS FROM INVESTING ACTIVITIES | |
| B2) NET DECREASE IN CASH FLOWS FROM INVESTING ACTIVITIES | 10,495,715 |
| CASH FLOWS FROM FINANCING ACTIVITIES | |
| Cash received on issue of equity and debt instruments | |
| Cash received from loan principal, promissory notes, borrowings and other borrowed funds 177,339,572 | |
| Other receipts from financing activities | 247,628,278 |
| V. Total cash received from financing activities | 424,967,850 |
| Repayments of loan and bond principals | 212,228,499 |
| Dividends paid | |
| Cash paid under finance leases | 5,977,777 |
| Cash paid for purchases of own shares | |
| Other cash used in financing activities | 244,780,147 |
| VI. Total cash paid for financing activities | 462,986,423 |
| C1) NET INCREASE IN CASH FLOWS FROM FINANCING ACTIVITIES | |
| C2) NET DECREASE IN CASH FLOWS FROM FINANCING ACTIVITIES | 38,018,573 |
| Total increase in cash flows | 15,409,057 |
| Total decrease in cash flows | |
| Cash and cash equivalents at beginning of period | 7,002,279 |
| Increase in cash and cash equivalents | 15,409,057 |
| Decrease in cash and cash equivalents | |
| Cash and cash equivalents at end of period | 22,411,336 |
| Item | ASSET ITEM | 31.12.2015 31.12.2016 |
Index |
|---|---|---|---|
| no | Amount in HRK% Amount in HRK% |
||
| $\mathbf{1}$ | $\overline{c}$ | 3 $\overline{4}$ 5 6 |
7(5:3) |
| A) | NON-CURRENT ASSETS (I+II+III+IV) | 63,32 765,801,159 749,273,897 52.65 |
98 |
| $\mathbf I$ | Intangible assets | 86,315 0,01 136,740 0.01 |
158 |
| 1. | Research and development expenses | ||
| 2. | Patents, licences, concessions and similar rights | 86,315 0,01 0.01 136,740 |
158 |
| П | Tangible assets | 168,306,215 13,92 179,990,028 12.65 |
107 |
| 1. | Land and forests | 5,548,592 0,46 5,548,592 0.39 |
100 |
| 2. | Buildings | 5,90 4.80 71,331,533 68,340,805 |
96 |
| 3. | Plant and equipment | 83,772,355 6,93 66,153,617 4.65 |
79 |
| 4. | Prepayments for tangible assets | 307,627 0,03 34,576,964 2.43 |
11,240 |
| 5. | Tangible assets under development | 0.23 0,42 5,112,658 3,286,081 |
64 |
| 6. | Other tangible assets | 0.00 9,300 0,00 9,300 |
100 |
| 7. | Investment property | 0.15 2,224,150 0,18 2,074,669 |
93 |
| Ш | Financial assets | 49,40 39.99 597,408,629 569,147,129 |
95 |
| 1. | Equity shares in related companies | 29.47 419,450,043 34,68 419,450,043 |
100 |
| 2. | Loans to related companies | 14,66 10.48 177,343,482 149,216,583 |
84 |
| 3. | Investments in securities | 3,248 0,00 3,248 0.00 |
100 |
| 4. | Given loans, deposits and down payments | 0.03 611,856 0,05 477,255 |
78 |
| IV. | Receivables | ||
| 1. | Receivables in respect of credit sales | ||
| B) | 36,04 435,839,083 668,453,422 46.97 |
153 | |
| CURRENT ASSETS (V+VI+VII+VIII) | |||
| V. | Inventories | 179,521,872 14,84 434,941,674 30.56 |
242 |
| 1. | Raw material and supplies | 15,634,383 1,29 55,191,037 3.88 |
353 |
| 2. | Finished products | 74,153,867 6,13 213,847,092 15.03 |
288 |
| 3. | Merchandise | 47,598,499 3,94 116,054,925 8.15 |
244 |
| 4. | Prepayments made | 3.48 49,848,620 3.50 42, 135, 123 |
118 |
| VI. | Receivables | 204,219,640 16.89 184,412,623 12.96 |
90 |
| 1. | Receivables from related companies | 5.90 1,259,876 0.09 71,406,529 |
$\overline{c}$ |
| 2. | Trade receivables | 9.39 121,960,367 10.08 133,612,862 |
110 |
| 3. | Amounts due from employees | 2,372 0.00 890 0.00 |
38 |
| 4. | Receivables from the State and other institutions | 10,743,689 0.89 49,421,570 3.47 |
460 |
| 5. | Other receivables | 0.01 106,683 0.01 117,425 |
110 |
| VII. | Financial assets | 45,095,292 3.73 1.88 26,687,789 |
59 |
| 1. | Loans to related companies | 0.14 4,681,963 0.33 1,735,697 |
270 |
| 2. | Securities | ||
| 3 | Given loans, deposits and down payments | 35,656,652 2.95 12,632,314 0.89 |
35 |
| 4. | Other financial assets | 7,702,943 0.64 9,373,512 0.66 |
122 |
| VIII. | Cash with banks and in | 7,002,279 0.58 22,411,336 1.57 |
320 |
| $\mathcal{C}$ | PREPAID EXPENSES | ||
| AND ACCRUED INCOME | 0.64 5,501,947 0.39 7,761,345 |
71 | |
| D) | SHAREHOLDERS' DEFICIT | ||
| E) | TOTAL ASSETS (A+B+C+D) | 100.00 1,423,229,266 100.00 1,209,401,587 |
118 |
| F) | OFF-BALANCE SHEET ITEMS | 281,936,097 23.31 20.49 291,648,942 |
103 |
| Item no |
EQUITY AND LIABILITY ITEM | 31.12.2015 Amount in HRK% |
31.12.2016 Amount in HRK% |
Index | |||||
|---|---|---|---|---|---|---|---|---|---|
| 1 | $\overline{c}$ | 3 | $\overline{4}$ | 5 | 6 | 7(5:3) | |||
| EQUITY AND LIABILITIES (SOURCES OF FUNDS) | |||||||||
| A) | EQUITY | 628, 667, 495 | 51.98 | 665,899,638 | 46.79 | 106 | |||
| 1. | Subscribed capital | 249,600,060 | 20.64 | 249,600,060 | 17.54 | 100 | |||
| 2. | Capital reserves | 10,368,101 | 0.86 | 10,368,101 | 0.73 | 100 | |||
| 3. | Reserves out of profit | 56,346,673 | 4.66 | 56,346,673 | 3.96 | 100 | |||
| 4. | Revaluation reserve | ||||||||
| 5. | Retained | 318,901,121 | 26.37 | 312,352,661 | 21.95 | 98 | |||
| 6. | Profit /(loss) for the year | $-6,548,460$ | $-0.54$ | 37, 232, 143 | 2,62 | $\overline{\phantom{a}}$ | |||
| B) | NON-CURRENT LIABILITIES | 305,499,913 | 25.26 | 229,589,347 | 16.13 | 75 | |||
| 1. | Liabilities for loans, deposits and similar | 4,015,994 | 0.33 | 1,375,750 | 0.10 | 34 | |||
| $\overline{2}$ . | Liabilities to banks and other financial institutions | 301,483,919 | 24.93 | 228, 213, 597 | 16.03 | 76 | |||
| $\mathcal{C}$ | CURRENT LIABILITIES | 274,543,567 | 22.70 | 527,558,401 | 37.07 | 192 | |||
| 1. | Liabilities to related companies | 2,393,482 | 0.20 | 30,738,212 | 2.16 | 1,284 | |||
| 2. | Liabilities for loans, deposits and similar | 7,992,303 | 0.66 | 7,443,244 | 0.52 | 93 | |||
| 3. | Liabilities to banks and other financial institutions | 66,603,095 | 5.51 | 101,174,511 | 7.11 | 152 | |||
| 4. | Advances received | 3,275,008 | 0.27 | 1,302,698 | 0.09 | 40 | |||
| 5. | Trade payables | 104,881,026 | 8.67 | 313,719,185 | 22.04 | 299 | |||
| 6. | Liabilities to employees | 1,155,944 | 0.10 | 1,284,066 | 0.09 | 111 | |||
| 7. | Taxes, contributions and similar | 5,514,605 | 0.46 | 2,101,273 | 0.15 | 38 | |||
| 8. | Obveze s osnove udjela u rezultatu | 31,703 | 0.00 | 30,963 | 0.00 | 98 | |||
| 9. | Other current liabilities | 82,696,401 | 6.84 | 69,764,249 | 4.90 | 84 | |||
| D) | ACCRUED EXPENSES | ||||||||
| AND DEFERRED INCOME | 690,612 | 0.06 | 181,880 | 0.01 | 26 | ||||
| E) | TOTAL EQUITY AND LIABILITIES (A+B+C) | 1,209,401,587 100.00 1,423,229,266 | 100.00 | 118 | |||||
| F) | OFF-BALANCE SHEET ITEMS | 281,936,097 | 17.32 291,648,942 | 20.49 | 103 |
| Item no |
INVESTMENT PURPOSE | Amount in HRK | Amount in EUR $(b1 = HRK 7.53)$ |
$\%$ |
|---|---|---|---|---|
| 1. | Technology and plant maintenance | 1,642,915 | 218,183 | 19.9 |
| 2. | Buildings | 3,071,316 | 407,877 | 37.1 |
| 3. | Business premises and furnishings/equipment | 22,213 | 2,950 | 0.3 |
| 4. | Vehicles and personal cars | 2,747,365 | 364,856 | 33.2 |
| 5. | Telecommunication and office equipment | 107,253 | 14,243 | 1.3 |
| 6. | Others | 355,184 | 47,169 | 4.3 |
| TOTAL (1 to 6) | 7,946,246 | 1,055,278 | 96.1 | |
| 7. | Research and development | 103,691 | 13,770 | 1.3 |
| 8. | Leasing - Factory equipment | 218,595 | 29,030 | 2.6 |
| GRAND TOTAL (1 to 8) | 8,268,531 | 1,098,079 | 100.0 |
The structure of the accrued working hours for 2016 is provided in the table below:
| No. | TYPE OF REMUNERATION | Hours | % |
|---|---|---|---|
| ACCRUED HOURS OF WORK (A+B) | 401,757 | 100.0 | |
| A) | Regular working hours | 401,757 | 100.0 |
| B) | Overtime work | - | 0.0 |
| STRUCTURE OF REGULAR WORKING HOURS (1 to 6) | 100.0 | ||
| 1. | Normal working hours | 292,467 | 72.8 |
| 2. | Annual vacation | 41,605 | 10.4 |
| 3. | National holidays | 16,537 | 4.1 |
| 4. | Sick leave up to 42 days | 6,170 | 1.5 |
| 5. | Sick leave in excess of 42 days | 7,856 | 2.0 |
| 6. | Paid absences and days off | 37,122 | 9.2 |
Based on the accrued working hours, the average number of employees for 2016, including seasonal workers, was 192.41. The structure of the working hours for 2016 allows the identification of the nature of activities performed by the workers as well as the nature of absences, which are provided in the table below:
| Activity and absence types | Av. no. of days |
|---|---|
| Work at the Factory | 190.00 |
| Used annual vacation | 27.03 |
| Used paid national holidays | 10.74 |
| Sick leave up to 42 days | 4.01 |
| Sick leave in excess of 42 days | 5.10 |
| Paid absences and days off | 24.12 |
| The following is the presentation of the fluctuation of employees during the year | |
|---|---|
| (excluding seasonal workers), analysed by the level of qualifications: |
| Structure by level of qualifications |
Balance at: 31.12.2015 |
New arrivals 2016 |
Leavers 2016 |
Balance at: 31.12.2016 |
|---|---|---|---|---|
| University graduate degree | 37 | 0 | 0 | 37 |
| Univ. undergraduate degree | 6 | 0 | 0 | 6 |
| Secondary school certificate | 108 | 5 | 2 | 111 |
| Elementary school certificate | 0 | 0 | 0 | 0 |
| Highly-skilled workers | 0 | 0 | 0 | 0 |
| Skilled workers | 13 | 0 | 0 | 13 |
| Semi-skilled workers | 2 | 0 | 0 | 2 |
| Unskilled workers | 12 | 0 | 0 | 12 |
| TOTAL: | 178 | 5 | 2 | 181 |
| Item no |
ITEM DESCRIPTION | 2015 | 2016 | Index |
|---|---|---|---|---|
| 1. | Operating income | 920,723,764 | 700,509,756 | 2016/2015 76 |
| 1.1 | Sales | 916,069,380 | 696,989,106 | 76 |
| 1.2 | Other operating income | 4,654,384 | 3,520,650 | 76 |
| 2. | Finance income | 11,950,936 | 13,825,221 | 116 |
| 2.1 | Interest, FX diff. and similar - related companies | 2,491,641 | 2,804,648 | 113 |
| 2.2 | Interest, FX diff. and similar - unrelated companies | 9,157,795 | 10,520,573 | 115 |
| 2.3 | Other financial income | 301,500 | 500,000 | 166 |
| I | TOTAL INCOME (1+2) | 932,674,700 | 714,334,977 | 77 |
| 3 | Material expenses | 679,505,672 | 725,178,607 | 107 |
| 3.1 | Cost of raw material and supplies | 338,787,709 | 510,624,754 | 151 |
| 3.2 | Cost of goods sold | 305,901,254 | 181,160,920 | 59 |
| 3.3 | Other external expenses (service costs) | 34,816,709 | 33,392,933 | 96 |
| 4 | Staff expenses | 19,829,901 | 21,966,324 | 111 |
| 5. | Depreciation and impairment of non-current assets | 31,256,001 | 28,759,248 | 92 |
| 6. | Other operating expenses | 10,734,767 | 10,773,515 | 100 |
| 7. | Value adjustment of current assets | |||
| 8. | Other operating expenses | 7,147,289 | 8,195,463 | 115 |
| 9 | Increase of inventories of finished products | 138,523,037 | - | |
| 10 | Decrease in the value of finished products | 168,687,561 | - | |
| 11. | OPERATING EXPENSES (3+4+5+6+7+8-9+10) | 917,161,191 | 656,350,120 | 72 |
| 12 | Financial expenses | 22,061,969 | 20,752,714 | 94 |
| 12.1 | Interest, FX differences and similar - unrelated comp. | 927,316 | 2,957,899 | 319 |
| 12.2 | Interest, FX differences and similar - unrelated comp. | 20,693,318 | 17,292,315 | 84 |
| 12.3 | Unrealised losses (expenses) from financial assets | 502,500 | - | |
| 12.4 | Other financial expenses | 441,335 | - | |
| II | TOTAL EXPENSES (111+12) | 939,223,160 | 677,102,834 | 72 |
| III | PROFIT FOR THE PERIOD BEFORE TAX (I-II) | -6,548,460 | 37,232,143 | - |
| IV | PROFIT (CORPORATE INCOME) TAX | |||
| V | PROFIT FOR THE PERIOD (III-IV) | -6,548,460 | 37,232,143 | - |
| 13 | Other comprehensive income | |||
| VI. | COMPEREHENSIVE INCOME (V + 13) | -6,548,460 | 37,232,143 | - |
| VII | EBIT | 3,562,573 | 44,159,636 | 1,240 |
| VIII | EBITDA | 37,311,479 | 77,593,697 | 208 |
The non-consolidated profit generated by the Company in 2016 amounts to HRK 37.23 million, and the consolidated profit, which includes the profits generated by subsidiaries, amounts to HRK 57.53 million. The Company's EBITDA more than doubled from the prior year's figure (index: 208) and amounts to HRK 77,59 million. EBITDA at the level of consolidated profit or loss, which includes the subsidiaries, shows a somewhat higher increase on an annual level (index: 221), and amounts, in absolute terms, to HRK 143.20 million.
| 7.1. | Asset and leverage ratios | |||
|---|---|---|---|---|
| ------ | -- | -- | --------------------------- | -- |
| Item no |
ITEM DESCRIPTION | Unit of measure |
2015 | 2016 | Index 2016/2015 |
|---|---|---|---|---|---|
| 1. | Current assets | HRK'000 | 435,839,08 | 668,453,42 | 153 |
| 1.1 | Own assets | HRK'000 | 451,901,76 | 479,793,67 | 106 |
| 1.2 | Liabilities (curr. liabilities) | HRK'000 | -16,062,68 | 188,659,75 | - |
| 2 | Non-current assets | HRK'000 | 765,801,16 | 749,273,90 | 98 |
| 2.1 | Own assets | HRK'000 | 169,004,39 | 180,604,02 | 107 |
| % | 22.07 | 24.10 | - | ||
| HRK'000 | 596,796,77 | 568,669,87 | 95 | ||
| 2.2 | Liabilities | % | 77.93 | 75.90 | - |
| 3. | Prepaid expenses | HRK'000 | 7,761,35 | 5,501,95 | 71 |
| 3.1 | Own assets | HRK'000 | 7,761,35 | 5,501,95 | 71 |
| 4 | Shareholders' deficit | HRK'000 | 0.00 | 0.00 | - |
| 5 | Total assets | HRK'000 | 1,209,401,59 | 1,423,229,27 | 118 |
| HRK'000 | 628,667,50 | 665,899,64 | 106 | ||
| 5.1 | Shareholders' equity (1.1+2.1+3.1) | % | 51.98 | 46.79 | - |
| Debt - long-term and short-term liabilities | HRK'000 | 580,734,09 | 757,329,63 | 130 | |
| 5.2 | and shareholders' deficit (1.2.+2.2.+4) | % | 48.02 | 53.21 | - |
| No. | RATIO | 2015 | 2016 | Index 2016/15 |
|---|---|---|---|---|
| a) Activity ratios | ||||
| 1. | Total asset turnover ratio | 0.76 | 0.54 | 71 |
| 2. | Current assets turnover ratio | 1.96 | 1.27 | 65 |
| 3. | Days working capital | 184 | 284 | 154 |
| 4 | Trade receivables | |||
| 4.1 | - Turnover ratio | 7.16 | 4.21 | 59 |
| 4.2 | - Day Sales Outstanding | 50 | 85 | 171 |
| b) Profitability ratios | ||||
| 5 | Net profit margin | -0.70 | 5.21 | - |
| 6. | Gross profit margin (operating profit margin) | 0.39 | 6.30 | 1,616 |
| 7. | EBITDA margin | 3.78 | 10.41 | 275 |
| 8. | Return on Assets (ROA) | -0.54 | 2.62 | - |
| 9. | Return on Equity (ROE) | -1.04 | 5.59 | - |
| 10. | Net profit per employee, in HRK | -36,287 | 193,502 | - |
In late July 2016 changes took place in the ownership structure of the Company. The share of the majority shareholder, Mr. Marinko Zadro, who directly or indirectly, through companies he owns, currently has a share of 55.89 percent. Cristal Union, a renowned French and a largest sugar producer in Europe, became the second-largest shareholder, with an equity share of 17 percent. The association of the Company with Cristal Union has created the opportunities for a firmer access to the global market as well as technology improvements to the production.
| Item no |
SHAREHOLDER | Number of | Ownership |
|---|---|---|---|
| shares | interest, % | ||
| 1. | EOS-Z D.O.O. (1/1) | 308,204 | 22.23 |
| 2. | CRISTAL FINANCIERE (1/1) | 235,734 | 17.00 |
| 3. | ROBIĆ D.O.O. (1/1) | 180,366 | 13.01 |
| 4. | PRIMORSKA BANKA D.D. RIJEKA/INDIV. OMNIBUS ACCOUNT - M. ZADRO | 158,296 | 11.42 |
| 5. | SOCIETE GENERALE-SPLITSKA BANKA D.D./ AZ B-CATEGORY MAND. PF (1/1) | 137,055 | 9.88 |
| 6 | PRIMORSKA BANKA D.D. RIJEKA/OMNIBUS ACC. OF INDIVIDUAL - M. ZADRO | 127,936 | 9.23 |
| 7 | ADDIKO BANK D.D./ PBZ CO B-CATEGORY MANDATORY PF (1/1) | 40,063 | 2.89 |
| 8 | ERSTE & STEIERMAERKISCHE BANK D.D./CSC | 28,488 | 2,05 |
| 9 | ZAGREBAČKA BANKA d.d. AZ PROFIT VOLUNTARY PENSION FUND (1/1) | 25,842 | 1.86 |
| 10 | ADDIKO BANK D.D. RAIFFEISEN B-CATEGORY MANDATORY PF (1/1) | 24,911 | 1.80 |
| 11 | HPB d.d. (1/1) | 23,257 | 1.68 |
| 12 | PRIVREDNA BANKA ZAGREB D.D./A CUSTOMER' OMNIBUS CUSTODY ACC. | 9,265 | 0.67 |
| 13 | MORALIĆ ENVER (1/1) | 7,660 | 0.55 |
| 14 | OTHER INVESTORS AND SMALL SHAREHOLDERS | 79,590 | 5.74 |
| GRAND TOTAL (1 TO 14) | 1,386,667 | 100.00 |
The volume of the Company's shares traded on the Zagreb Stock Exchange during the year amounts to HRK 9,573,458, with the market capitalisation rate at 31 December 2016 amounting to HRK 531.09 million and a value per share in the amount of HRK 383.00. The Company did not hold any own shares at the end of 2016.
Viro tvornica še era is a large consumer of natural gas, the key source of energy in the sugar production. In the sugar beet and raw cane sugar processing campaigns in 2016 a total of 17,683,095 Nm³ of natural gas were consumed.
Air emissions arise at the power plant as a result of natural gas combustion and also from the lime kilns in coke combustion and lime production processes. The emissions are monitored on an annual basis by a certified laboratory and are within the prescribed value ranges, as well as by reference to the Greenhouse Gas Monitoring Plan provided to the Agency and the Ministry of Environment. According to a new resolution, issued as part of the greenhouse gas emission license, lime production emissions are excluded.
The second air emission relates to the emission of solid particles from the beet drying process, together with gas emissions occurring as a result of the natural gas combustion during the drying process, and all the values at this source are also monitored by certified companies. The measured values are within permissible ranges and the measured data have been provided to the Agency and the Ministry.
The factory has its own waste water (anaerobic and aerobic) treatment plant for both own effluents (collected rainfall and process waters) and those of the City of Virovitica.
To reduce the fresh water levels required at certain sugar production stages, water used during the unloading and washing beet at the factory as well as water used in the circular water cooling systems is reclaimed. In this way, Viro achieves significant fresh water savings.
The sugar factory has its own process water production plant, which is also used to generate electricity (a co-generation plant) to cover the factory's own needs. Occasionally, surplus electricity arises in the production process which is then distributed to the power supply grid in the quantities and at prices agreed with the electricity distribution company in charge for the area.
The factory generates hazardous and non-hazardous waste, and both are reported to the Environmental Protection Agency using prescribed reporting forms.
All waste types are collected by certified companies specialised for the disposal of waste in accordance with prescribed guidelines. The production, storage and ex-factory transport documentation has been prepared in accordance with the Waste Act and other rulebooks regulating this area.
Sicne 2013 Viro d.d. has been part of the Emission Trading System.
The starting points of the Company's business and future development plan are the following activity areas:
The plan for the year 2017 envisages further increase in the energy efficiency of the plants and the reconstruction and restoration of certain plant components to maintain the high level of production process safety and improve the level of preparedness of the sugar processing plants following the abolition of the EU sugar quotas on 1 October 2017. Total improvements to take place in 2017 comprise the following:
According to the 2017 production plan and budget, 7,000 hectares have been envisaged for the purpose of sugar beet production, which means that, with a yield of 65 t/ha, about 450,000 tons of sugar beet will be refined, with the expected output comprising 65,000 tons of beet sugar for human consumption, 18,000 tons of molasses and 19,500 tons of dried beet pulp pellets.
In addition to sugar beet and in accordance with the approved status of the refinery of Viro tvornica še era in the EU, at least 40,000 tons of raw cane sugar is to be refined in 2017, with the expected output comprising minimum 38,000 tons of white sugar for human consumption and 1,600 tons of molasses.
As part of the efforts to increase the operational efficiency at the related companies primarily engaged in sugar productions, the plan is to merge Sladorana d.o.o. into the Company, with the Company continuing to operate as a single legal person. The merger will bring further savings and streamline the operations as a result of centralised shares services, which will additionally improve the performance of the Company and enable it to continue in existence within the increasingly fierce competition on the European market expected to occur after the abolition of the quotas.
All questions contained in this questionnaire relate to the period of one business year to which also the annual financial statements relate.
As the shares of Viro tvornica še era d.d. are listed on the regulated Zagreb Stock Exchange market, the Company applies the valid version of the Code of Corporate Governance of the Croatian Financial Services Supervisory Agency and the Zagreb Stock Exchange (www.zse.hr). Pursuant to the positive laws and the Code of Corporate Governance, Viro tvornica še era completed the Annual Questionnaire for 2016, which is an inseparable part of the Code of Corporate Governance and provides details about the corporate governance practice at the Company or any departures from the Code of Corporate Governance, along with the related explanations. This Corporate Governance Code Statement is an inseparable part of the Company's Annual Report for 2016 and is publicly available at the Company's web site (www.secerana.hr) and the official website of the Zagreb Stock Exchange (www.zse.hr).
The appointment and revocation of the members of the Company's Management Board and the election of the Company's Supervisory Board members are governed by the Company's Articles of Association and are fully compliant with the Companies Act. Thus, four Supervisory Board members are elected by the Company's Shareholders' Assembly, and the fifth member is appointed by the Company employees. Neither shareholder is entitled to appoint a member of the Supervisory Board directly. The Management Board of the Company is appointed by the Company's Supervisory Board.
The powers of the General Assembly, the rules of procedure of the Assembly and the rights of the shareholders are regulated by the Company's Articles of Association, which are publicly available and prepared in accordance with the Companies Act. The shareholders' rights are not restricted in any way, and each share entitles to one vote in the General Meeting of the Company's Shareholders. Using the option provided in Article 279(2) of the Companies Act, the Articles of Association specify that attendance at a General Meeting should be announced six days in advance, as clearly indicated in each invitation to the general meeting, to which the appropriate statement of confirmation is attached and delivered to each individual shareholder.
The Company's Articles of Association contain a provision about the so-called authorised share capital, under which the Management Board of the Company may, with the consent of the Company's Supervisory Board, adopt a decision to increase the share capital by maximum HRK 124,800,030.00. The authorisation expires on 20 January 2020.
Diversity Policy: the members of the Company's Management and Supervisory Boards are experts of various profiles, which achieves the balance and stability required to meet the business challenges. Thus, university graduate economists and a master of biotechnology sciences are on the Company's Management Board, while the Supervisory Board consists of a university graduate economist, a university graduate of laws as well as university graduate technology engineers with a considerable experience in food industry. The resumes (CVs) of all the members of the Management and Supervisory Boards are publicly available at the Company's website.
Further details about the members are provided in the Annual Report.
All questions contained in this questionnaire relate to the period of one business year to which also the annual financial statements relate.
1. Has the company adopted the use of the Code of Corporate Governance or its own corporate governance policy?
YES
2. Are there corporate governance code principles adopted as part of the company's internal policies?
YES
3. Does the company disclose in its annual financial statements its compliance with corporate governance principles on the basis of the "comply or explain" principle?
YES
4. In the decision-making process, does the company consider the interests of all its shareholders, in line with the principles of the corporate governance code?
YES
5. Is the company in a cross-shareholding relationship with another company/other companies? (If yes, please explain).
NO
6. Does each share of the company have one voting right? (If not, please explain).
YES
7. Does the company treat all shareholders equally? (If not, please explain).
YES
8. Has the procedure for issuing power of attorney for voting at the general assembly been fully simplified and free of any strict formal requirements? (If not, please explain).
YES
9. Has the company ensured that the shareholders of the company who, for whatever reason, are not able to vote at the assembly in person have proxies who are obliged to vote in accordance with instructions received from the shareholders, at no extra cost for those shareholders? (If not, please explain).
There were no such requests.
YES
12. Does the decision on dividend payment or advance dividend payment include the date on which shareholders are entitled to receive dividend payment and the date or period when the dividend will be paid? (If not, please explain).
YES
13. Is the date of dividend payment or advance dividend payment set to be not later than 30 days after the day on which the decision was made? (If not, please explain).
YES
14. Were any shareholders favoured while receiving their dividends or advance dividends? (If yes, please explain).
NO
15. Are the shareholders allowed to participate and to vote at the general assembly of the company using modern communication technology? (If not, please explain).
NO
There were no such requests from the shareholders.
16. Have the conditions been defined for participating at the general assembly by voting through proxy (irrespective of whether this is permitted pursuant to the law and articles of association), such as registration for participation in advance, certification of powers of attorney? (If yes, please explain).
YES
To optimise the arrangements and preparations for the General Meeting of Shareholders, participation should be confirmed, and the signatory of the person issuing the power of attorney is required to verify the powers to vote, i.e. make decisions.
17. Did the management of the company made the decisions of the general assembly publicly available?
YES
18. Did the management of the company made any information about potential claims challenging the decisions publicly available? (If not, please explain).
NO
No decisions were challenged.
MANAGING AND SUPERVISORY BODIES
Željko Zadro, President of the Management Board Darko Krstić, Member of the Management Board Ivo Rešić, Member of the Management Board
PLEASE PROVIDE THE NAMES OF SUPERVISORY BOARD AND THEIR FUNCTIONS:
Marinko Zadro, President of the Supervisory Board Boris Šimunović, Deputy President of the Supervisory Board Ivan Mišetić, Member of the Supervisory Board Svjetlana Zadro, Member of the Supervisory Board Damir Keleković, Member of the Supervisory Board
19. Did the Supervisory or Management Board adopt a decision on the master plan of its activities, including the list of its regular meetings and data to be made available to Supervisory Board members regularly and in a timely manner? (If not, please explain).
NO; Day-to-day communication applies.
All questions contained in this questionnaire relate to the period of one business year to which also the annual financial statements relate.
20. Have the supervisory or management Board passed its internal rules of procedure? (If not, please explain).
The rules of procedure for the Supervisory Board are specified in the Companies Act and the Company's Articles of Association.
21. Is the supervisory board composed of, i.e. are nonexecutive directors on the management board mostly independent members? (If not, please explain.)
The Supervisory Board members are representatives of the shareholders, workers and include one independent member.
22. Is there a long-term succession plan in the company? (If not, please explain).
Given a shallow organisational structure, we consider this as not necessary.
23. Is the remuneration received by the members of the supervisory or management board entirely or partly determined according to their contribution to the company's business performance? (If not, please explain).
NO
The President of the Supervisory Board receives a monthly remuneration defined by a decision of the General Assembly.
24. Is the remuneration to the members of the supervisory or management board determined by a decision of the general assembly or in the articles of association of the company? (If not, please explain).
25. Have details about all remuneration and other benefits received by each member of the supervisory or management board received from the company or from other persons related to the company, including the structure of such remuneration, been made public? (If not, please explain).
The remuneration information is provided on request..
26. Does every member of the supervisory or management board inform the company of each change relating to the acquisition or disposal of shares of the company, or to the possibility to exercise voting rights arising from the company 's shares, not later than five trading days from such a change? (If not, please explain).
YES
27. Are all transactions involving members of the supervisory or management board or their related persons and the company and its related persons clearly presented in the financial statements of the company? (If not, please explain).
YES
28. Are there any contracts or agreements between the members of the supervisory or management board and the company?
YES
There are contracts concerning the ordinary business activities of the Banks?
29. Were they previously approved by the supervisory or management board? (If not, please explain).
YES
Yes, if such prior approval was required.
30. Are the essential elements of all such contracts or agreements included in the annual report? (If not, please explain).
This is mainly an advisory services contract concluded for a limited term.
31. Did the supervisory or management board establish the appointment committee?
32. Did the supervisory or management board establish the remuneration committee?
33. Did the supervisory or management board establish the audit committee?
34. Was the majority of the committee members selected from the group of independent members of the supervisory board? (If not, please explain).
No such committees have been formed.
35. Did the committee monitor the integrity of the financial information of the company, especially the correctness and consistency of the accounting methods used by the company and the group it belongs to, including the criteria for the consolidation of financial statements of the companies belonging to the group? (If not, please explain).
NO, No such committees have been formed.
36. Did the committee assess the quality of the internal control and risk management systems with the aim of adequately identifying and publishing the main risks the company is exposed to (including the risks related to the compliance with regulations), as well as managing those risks in an adequate manner? (If not, please explain).
NO, No such committees have been formed.
All questions contained in this questionnaire relate to the period of one business year to which also the annual financial statements relate.
37. Has the committee been working on ensuring the efficiency of the internal audit system, especially by preparing recommendations for the selection, appointment, reappointment and dismissal of the head of internal audit department, and with regard to funds at his/her disposal, and the evaluation of the actions taken by the management after findings and recommendations of the internal audit? (If not, please explain).
38. If there is no internal audit function in the company, did the committee consider the need to establish it? (If not, please explain).
NO, no such committee has been formed.
YES
45. Do supervisory board or management board meeting minutes contain all adopted decisions, together with the voting results? (If not, please explain).
YES
46. Has the supervisory or management board evaluated their work over the past period, which includes the evaluation of the contribution and competencies of the individual members, as well as of joint activities of the board, evaluation of the work of the committees established and the evaluation of the company's objectives reached in comparison with the objectives set?
NO
47. Did the company publish a statement on the remuneration policy for the management, managing body and the supervisory board as part of the annual report? (If not, please explain).
NO; The remuneration for the members of the Supervisory Board is determined by a decision of the Company's Assembly. The remuneration for the members of the Management Board is determined in their respective management contracts.
48. Is the statement on the remuneration policy for the management or executive directors permanently available on the website of the company? (If not, please explain).
NO, the Company has not made any such statement.
49. Are detailed data on all remuneration and benefits received by each member of the management or each executive director from the company published in the annual report of the company? (If not, please explain).
NO, the remuneration and benefits are included in the individual employment contracts.
50. Are all forms of remuneration to the members of the management and supervisory board, including options and other benefits of the management, made public, broken down by items and persons, in the annual report of the company? (If not, please explain).
NO, the remuneration for the members of the Supervisory Board is determined by a decision of the Company's Assembly. The remuneration for the members of the Management Board is determined in their respective management contracts.
51. Are all transactions involving members of the management board or executive directors, and persons related to them, and the company and persons related to it, clearly presented in reports of the company? (If not, please explain).
YES
52. Does the report to be submitted by the supervisory or management board to the general assembly include, apart from minimum information defined by law, the evaluation of the overall business performance of the company, of activities of the management of the company, and a special comment on its cooperation with the management? (If not, please explain).
NO
All questions contained in this questionnaire relate to the period of one business year to which also the annual financial statements relate.
53. Does the company have an external auditor?
YES
54. Is the external auditor of the company related with the company in terms of ownership or interests?
NO
55. Is the external auditor of the company providing to the company, him/herself or through related persons, other services?
YES
56. Has the company published the amount of fees paid to the independent external auditors for the audit carried out and for other services provided? (If not, please explain).
NO
58. Are the semi-annual, annual and quarterly reports available to the shareholders?
59. Did the company prepare a calendar of important events?
YES
60. Did the company establish mechanisms to ensure that persons who have access to or possess inside information understand the nature and importance of such information and limitations related to it?
YES
61. Did the company establish mechanisms to ensure monitoring the inside information and possible abuse thereof?
YES
62. Has anyone suffered negative consequences for pointing out to the competent authorities or bodies in the company or outside, shortcomings in the application of rules or ethical norms within the company? (If yes, please explain).
NO
Deloitte d.o.o. ZagrebTower Radnička cesta 80 10 000 Zagreb Croatia Tax id. no (OIB): 11686457780
Tel.: +385 (0) 1 2351 900 Fax: +385 (0) 1 2351 999 www.deloitte.com/hr
We have audited the accompanying annual financial statements of Viro d.d. (the "Company"), which comprise the balance sheet as at 31 December 2016, the profit and loss account, the statement of cash flows and the statement of changes in equity for the year then ended and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, except for the effect of the matter described in the Basis for qualified opinion paragraph, the accompanying separate financial statements present fairly, in all material respects, the financial position of the Company at 31 December 2016, its financial performance and its cash flows for the year then ended in accordance with the Accounting Act and International Financial Reporting Standards adopted by the European Union (IFRSs).
The Company has recognised an investment in its subsidiary Sladorana in the amount of HRK 407,187 thousand. At 31 December 2016 the Company did not assess the recoverability of the carrying amount of the investment in accordance with IAS 36 "Impairment of Assets". As a result, we are not able to determine the potential effect of this matter on the accompanying separate financial statements.
We conducted our audit in accordance with the Act on Auditing and International Standards on Auditing (ISAs). Our responsibilities under those standards are described further in the Auditor's Responsibilities for the Audit of the Annual Financial Statements section of our Independent Auditor's Report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) and have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Registered at the Commercial Court in Zagreb: Reg. No: 030022053; - Registered capital paid in: HRK 44,900.00; Management:
Branislav Vrta nik, Eric Daniel Olcott, Marina Tonžeti , Juraj Moravek, Dražen Nim evi i John Jozef H. Ploem; commercial bank: Zagreba ka banka d.d., Trg bana Josipa Jela i a 10, 10 000 Zagreb, ž. ra un/bank account no. 2360000-1101896313; SWIFT Code: ZABAHR2X IBAN: HR2723600001101896313; Privredna banka Zagreb d.d., Radni ka cesta 50, 10 000 Zagreb, ž. ra un/bank account no. 2340009-1110098294; SWIFT Code: PBZGHR2X IBAN: HR3823400091110098294; Raiffeisenbank Austria d.d., Petrinjska 59, 10 000 Zagreb, ž. ra un/bank account no. 2484008-1100240905; SWIFT Code: RZBHHR2X IBAN: HR1024840081100240905.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/hr/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Deloitte d.o.o. ZagrebTower Radnička cesta 80 10 000 Zagreb Croatia Tax id. no (OIB): 11686457780
Tel.: +385 (0) 1 2351 900 Fax: +385 (0) 1 2351 999 www.deloitte.com/hr
We draw attention to the fact that the Company has prepared the accompanying separate financial statements on the basis of, and in accordance with the requirements of Croatian laws and regulations, and that investments in subsidiaries are presented in these separate financial statements at cost. The Company has also prepared the consolidated financial statements of Viro tvornica šećera d.d. and its subsidiaries, dated 6 April 2017. For a better understanding of the Group as a whole, the users should read the consolidated financial statements in conjunction with these separate financial statements. Our opinion is not modified with respect to this matter.
Registered at the Commercial Court in Zagreb: Reg. No: 030022053; - Registered capital paid in: HRK 44,900.00; Management:
Branislav Vrta nik, Eric Daniel Olcott, Marina Tonžeti , Juraj Moravek, Dražen Nim evi i John Jozef H. Ploem; commercial bank: Zagreba ka banka d.d., Trg bana Josipa Jela i a 10, 10 000 Zagreb, ž. ra un/bank account no. 2360000-1101896313; SWIFT Code: ZABAHR2X IBAN: HR2723600001101896313; Privredna banka Zagreb d.d., Radni ka cesta 50, 10 000 Zagreb, ž. ra un/bank account no. 2340009-1110098294; SWIFT Code: PBZGHR2X IBAN: HR3823400091110098294; Raiffeisenbank Austria d.d., Petrinjska 59, 10 000 Zagreb, ž. ra un/bank account no. 2484008-1100240905; SWIFT Code: RZBHHR2X IBAN: HR1024840081100240905.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/hr/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the annual financial statements for the current period. These matters were addressed in the context of our audit of the annual financial statements as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters.
| Key audit matter | How our audit addressed the key audit matter |
|---|---|
| Complexity of revenue Refer to Notes 4.1 and 4.2 to the separate financial statements |
|
| In 2016 the Company recognised revenue in the amount of HRK 700,510 thousand. Revenue is an important measure used to evaluate the performance of a company. There is a risk that revenue is presented in amounts higher than actually generated by the Company. According to International Accounting Standard 18 "Revenue", revenue is recognised when it is probable that economic benefits will flow into the Company and the revenue can be measured reliably. Accordingly, the Company recognises revenue in accordance with the underlying contracts with customers, when the sales transaction is performed and when goods and all risks associated with the goods are transferred to the customer. Sales of goods are recognized based on the contractually agreed prices less any contractually agreed discounts and returns. |
Our audit approach included both controls testing and substantive procedures, which are the following: · we have tested the internal controls established by the Company; · we have assessed the controls in the information system used as a billing tool, based on the prices contractually agreed with customers; · based on a statistical sample, we have reviewed a sample of issued invoices and verified their compliance with the underlying contracts, agreed prices, delivery notes and the amounts of the revenue recognised; · we have applied analytical procedures to the recognised amounts of revenue, cost of goods sold, movements in the margin and compared them against the relevant indicators. |
| Valuation of inventories Please refer to Note 17 to the separate financial statements |
|
|---|---|
| At 31 December 2016 the Company recognised inventories in the amount of HRK 434,942 thousand, which consist of finished, products, merchandise, raw material and supplies and prepayment made for inventories. Inventories are stated at the lower of cost or net realisable value. The cost consists of all production costs incurred in making the products and includes direct materials, direct labour costs and those overhead costs that have been incurred in bringing inventories to their present location and condition. The Company applies a traditional production cost method. |
· We have reviewed the stock-count reports prepared on the inventory counts performed at warehouses at the end of the financial year and compared the balances with the balances in the Company's books. · We have tested the net realisable value of products and compared it with the cost in order to satisfy ourselves that the products are recognised at the lower of the cost or net realisable value. · We have reviewed the production calculation method and the allocation of all overhead costs to the products. |
| Trade receivables Please refer to Note 18 to the separate financial statements |
|
| The Company is exposed to the risk of problems in recovering its receivables because of a long credit period for trade debtors and the financial condition of individual debtors. The total balance of receivables at 31 December 2016 amounts to HRK 134,873 thousand, of which only HRK 1,260 thousand relate to amounts owed by related parties. Trade receivables are carried at nominal amounts less an appropriate impairment allowance for estimated irrecoverable amounts. The allowance for amounts doubtful of collection is charged to expenses for the year. |
· We have gained the understanding of the Company's policies for measuring receivables and impairment allowance on receivables. · We have reviewed the ageing structure of receivables and satisfied ourselves that the impairment allowance has been made in accordance with the Company's accounting policies. · As regards receivables past due beyond 360 days and not impaired, we have reviewed the underlying collateral provided as a security for the settlement of the receivables. |
Other information is the responsibility of the Management Board. Such other information comprises the information included in the Annual Report, but does not include the financial statements and our auditor's report.
Our opinion on the annual financial statements does not cover the other information.
With respect to our audit of the annual financial statements, it is our responsibility to read other information and, in doing so, consider whether such other information is materially inconsistent with the annual financial statements or the knowledge we acquired during our audit, or materially misstated otherwise. With respect to the Management Report, which is included in the Annual Report, we have also performed the procedures prescribed by the Accounting Act. These procedures include examining whether the Management Report includes required disclosures as set out in Article 21 of the Accounting Act and whether the Corporate Governance Statement includes the information specified in Article 22 of the Accounting Act.
Based on the procedures performed during our audit, to the extent we are able to assess it, we report that:
Based on the knowledge and understanding of the Company's operations and the environment in which it operates we gained during our audit of the annual financial statements, we have not identified any material misstatement in the other information. We have nothing to report to you in this respect.
The Management Board is responsible for the preparation and fair presentation of the separate financial statements in accordance with Croatian Financial Reporting Standards and for such internal control as management determines is necessary to enable the preparation of separate financial statements that are free from material misstatement, whether due to fraud or error.
In preparing annual financial statements, management is responsible for assessing the the Company's ability to continue as a going concern, including, where appropriate, whether the use of the going concern basis of accounting is appropriate. The use of the going concern basis of accounting is appropriate unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the annual financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the annual financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
(All amounts are expressed in thousands of HRK)
| Notes | 2016 | 2015 | |
|---|---|---|---|
| Sales | 4.1 | 696,989 | 916,069 |
| Other income | 4.2 | 3,521 | 4,655 |
| Total operating income | 700,510 | 920,724 | |
| (Decrease) / increase in the value of work in progress and | |||
| finished products | 138,523 | (168,687) | |
| Cost of raw material and supplies | 6 | (510,625) | (338,788) |
| Cost of goods sold | 7 | (181,161) | (305,901) |
| Other external charges | 8 | (33,393) | (34,817) |
| Depreciation and amortisation | 14 | (28,759) | (31,256) |
| Staff costs | 9 | (21,966) | (19,830) |
| Other expenses | 10.1 | (10,774) | (10,735) |
| Other operating expenses | 10.2 | (8,195) | (7,147) |
| Total operating expenses | (656,350) | (917,161) | |
| Profit / (loss) from operations | 44,160 | 3,563 | |
| Financial income | 11 | 13,825 | 11,951 |
| Financial expenses | 12 | (20,753) | (22,062) |
| Net financial loss | (6,928) | (10,111) | |
| Profit / (loss) before taxation | 37,232 | (6,548) | |
| Income tax | 13 | - | - |
| Profit / (loss) for the year | 37,232 | (6,548) | |
| Other comprehensive income | |||
| Items not reclassified subsequently to profit or loss | |||
| Other comprehensive income | - | - | |
| Total comprehensive income / (loss) for the year | 37,232 | (6,548) | |
| Earnings / (loss) per share | |||
| – basic and diluted (in kunas and lipas) | 24 | 26.85 | (4.72) |
(All amounts are expressed in thousands of HRK)
| Notes | 31 December 2016 |
31 December 2015 |
|
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | 14 | 137 | 86 |
| Property, plant and equipment | 14 | 179,990 | 168,306 |
| Investments in subsidiaries | 15 | 418,550 | 418,550 |
| Non-current financial assets | 16 | 150,597 | 178,859 |
| Total non-current assets | 749,274 | 765,801 | |
| Current assets | |||
| Inventories | 17 | 434,942 | 179,522 |
| Trade receivables and receivables from related companies | 18 | 134,873 | 193,367 |
| Receivables from the State and other institutions | 19 | 49,421 | 10,744 |
| Current financial assets | 20 | 26,688 | 45,095 |
| Other receivables | 118 | 109 | |
| Cash and cash equivalents | 21 | 22,411 | 7,002 |
| Prepaid expenses and accrued income | 22 | 5,502 | 7,762 |
| Total current assets | 673,955 | 443,601 | |
| TOTAL ASSETS | 1,423,229 | 1,209,402 |
(All amounts are expressed in thousands of HRK)
| Notes | 31 December 2016 |
31 December 2015 |
|
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Capital and reserves | |||
| Share capital | 23.1 | 249,600 | 249,600 |
| Retained earnings | 349,585 | 312,353 | |
| Capital reserves | 23.2 | 10,368 | 10,368 |
| Reserves out of profit | 23.2 | 56,347 | 56,347 |
| Total equity | 665,900 | 628,668 | |
| Non-current liabilities | |||
| Loans payable and borrowings | 25 | 229,589 | 305,500 |
| Total non-current liabilities | 229,589 | 305,500 | |
| Current liabilities | |||
| Liabilities to related companies | 30 | 30,738 | 2,393 |
| Loans payable and borrowings | 25 | 108,618 | 74,595 |
| Advances received | 27 | 1,303 | 3,275 |
| Trade payables | 26 | 313,719 | 104,881 |
| Other current liabilities | 28 | 73,180 | 89,399 |
| Accrued expenses and deferred income | 29 | 182 | 691 |
| Total current liabilities | 527,740 | 275,234 | |
| TOTAL EQUITY AND LIABILITIES | 1,423,229 | 1,209,402 |
(All amounts are expressed in thousands of HRK)
| Share capital | Capital reserves |
Reserves out of profit |
Revaluation reserve |
Retained earnings |
Total | |
|---|---|---|---|---|---|---|
| Balance at 1 January 2015 |
249,600 | 10,368 | 56,347 | - | 318,901 | 635,216 |
| Loss for the year | - | - | - | - | (6,548) | (6,548) |
| Other comprehensive income | - | - | - | - | - | - |
| Balance at 31 December 2015 | 249,600 | 10,368 | 56,347 | - | 312,353 | 628,668 |
| Loss for the year | - | - | - | - | 37,232 | 37,232 |
| Other comprehensive income | - | - | - | - | - | - |
| Balance at 31 December 2016 | 249,600 | 10,368 | 56,347 | 349,585 | 665,900 |
(All amounts are expressed in thousands of HRK)
| 2016 | 2015 | |
|---|---|---|
| Cash flows from operating activities | ||
| Profit / (loss) for the year | 37,232 | (6,548) |
| Depreciation and amortisation | 28,759 | 31,256 |
| Foreign exchange differences per loans, net | (3,967) | (1,052) |
| Interest expense | 11,818 | 13,933 |
| Interest income | (1,710) | (4,626) |
| Net book value of disposed fixed assets | 7,901 | 2,000 |
| Value adjustment of current assets, net | 480 | 1,679 |
| Operating cash flows before changes in working capital | 80,513 | 36,642 |
| (Increase)/decrease in inventories | (255,420) | 148,884 |
| Decrease / (increase) in trade receivables | 78,131 | (115,840) |
| (Increase)/decrease in other receivables | (38,686) | 31,239 |
| (Increase)/decrease in advances received | (1,972) | 761 |
| Decrease/(increase) in trade payables | 234,225 | (65,567) |
| Increase in other liabilities | (13,912) | (16,194) |
| Increase in prepaid expenses | (509) | (2,622) |
| Cash generated from operations | 82,370 | 17,357 |
| Income taxes paid | (47) | (1,518) |
| Interest paid | (12,049) | (15,697) |
| Net cash generated from operating activities | 70,274 | 142 |
| Cash flows from investing activities | ||
| Given loans and deposits, net | 28,262 | (60,781) |
| Purchases of property, plant and equipment, and intangible assets | (48,395) | (15,522) |
| Net cash (used in) investing activities | (20,133) | (76,303) |
| Cash flows from financing activities | ||
| Proceeds from borrowings | 177,496 | 466,123 |
| Repayments of borrowings Net cash (used in)/generated from financing activities |
(212,228) (34,732) |
(398,060) 68,063 |
| Net decrease in cash and cash equivalents | 15,409 | (8,098) |
| Cash and cash equivalents at the beginning of the year | 7,002 | 15,100 |
| Cash and cash equivalents at the end of the year | 22,411 | 7,002 |
Viro tvornica še era d.d., Zagreb, Ulica grada Vukovara 269g, was entered in the registry of the Commercial Court in Bjelovar on 23 July 2002. The founders of the company were EOS-Z d.o.o. from Zagreb and Robi d.o.o. from Velika Gorica. In 2005 the Company was transformed from a limited liability company into a public limited company. The share capital of the Company amounts to HRK 249,600,060 (2015: HRK 249,600,060), divided into 1,386,667 (2015: 1,386,667) registered ordinary shares with no par value.
In early 2015 the Company changed its registered seat from Virovitica to Zagreb, Ulica grada Vukovara 269 G, which was entered into the register of the Commercial Court in Zagreb on 20 January 2015.
The Company has acquired and holds 3,306,002 (2015: 3,306,002) ordinary shares of Sladorana d.d., Županja, representing 100 % (2015: 100 %) of the equity of the subsidiary. On 7 February 2014 the company was transformed from a public limited company into a limited liability company.
In 2013 the Company acquired and held 22,686 B-series shares of Slavonija nova d.d., Županja, representing 16.72 % of the subsidiary's total net capital. On 15 January 2014 the company was renamed to Slavonija Županja d.d.
The Company's principal activity is sugar production.
At 31 December 2016 and 31 December 2015 the members of the Company's Management Board are the following:
| 1 Željko Zadro | President of the Board | |
|---|---|---|
| 2 Dražen Robić | Member of Management Board | Until 23.09.2016 |
| 3 Darko Krstić | Member of Management Board | Since 23.09.2016 |
| 4 Ivo Rešić | Member of Management Board | Since 23.09.2016 |
At 31 December 2016 and 31 December 2015 the members of the Company's Management Board are the following:
| 1 Marinko Zadro | President of the Supervisory Board | |
|---|---|---|
| 2 Boris Šimunović | Deputy President of the Supervisory | |
| Board | ||
| 3 Ivan Mišetić | Member of the Supervisory Board | |
| 4 Damir Keleković | Member of the Supervisory Board | |
| 5 Hrvoje Godinić | Member of the Supervisory Board | Until 30.08.2016 |
| 6 Zadro Svetlana | Member of the Supervisory Board | Since 30.08.2016 |
The following amendments to the existing standards issued by the International Accounting Standards Board as well as new interpretations issued by the International Accounting Standards Board (IASB) and adopted by the European Union are effective in the current reporting period:
Initial application of new amendments to the existing standards effective for the current reporting period (continued)
· Amendments to various standards "Improvements to IFRSs from the 2010-2012 Cycle", resulting from the annual improvement project of IFRS (IFRS 2, IFRS 3, IFRS 8, IFRS 13, IAS 16, IAS 24, and IAS 38)
primarily with a view to removing inconsistencies and clarifying wording, adopted by the EU on 17 December 2014 (applicable to annual periods beginning on or after 1 February 2015).
· Amendments to various standards "Improvements to IFRSs from the 2012-2014 Cycle" resulting from the annual improvement project of IFRS (IFRS 5, IFRS 7, IAS 19, and IAS 34) primarily with a view to removing inconsistencies and clarifying wording – adopted by the European Union on 15 December 2015 (applicable to annual periods beginning on or after 1 January 2016).
The adoption of the amendments to the existing Standards and Interpretations has not lead to any material changes to the Company's financial statements.
At the date of authorisation of these financial statements, the following new standards and amendments to standards issued by IASB and adopted by the European Union (EU) are not yet effective:
At present, the IFRSs as adopted by the EU do not significantly differ from regulations adopted by the International Accounting Standards Board (IASB) except from the following standards, amendments to the existing standards and interpretations, which were not endorsed for use by the EU as of 6 April 2017 (the effective dates stated below are for the IFRSs in full):
New Standards and amendments to the existing Standards issued by IASB but not yet adopted by the EU (continued)
The Company anticipates that the adoption of the new standards and the amendments to the existing standards will have no material impact on its financial statements in the period of initial application.
At the same time, the hedge accounting issue involving financial assets and financial liabilities remains unregulated, as the principles have not yet been endorsed by the EU.
As assessed by the Company, the application of hedge accounting to the financial assets and financial liabilities from IAS 39 Financial Instruments: Recognition and Measurement" to financial assets and financial liabilities at the balance sheet date would not have a significant impact on the financial statements.
The Company maintains its accounting records in the Croatian language, in Croatian kunas and in accordance with Croatian laws. The financial statements of the Company are prepared on the cost basis, in accordance with International Financial Reporting Standards, as adopted by the European Union, and Croatian laws.
The financial statements are prepared under the going-concern assumption and on the accrual basis of accounting.
Estimates are based on the information available as at the date of preparation of the financial statements, and actual results could differ from those estimates.
At 31 December, the exchange rates of the Croatian kuna against the euro and the US dollar were as follows:
| EUR 1 | USD 1 | |
|---|---|---|
| 2016 | 7.557787 | 7.168536 |
| 2015 | 7.635047 | 6.991801 |
The financial statements of the Company represent aggregate amounts of assets, liabilities, capital and reserves of the Company as of 31 December 2016, and the results of operations for the year then ended.
(All amounts are expressed in thousands of HRK)
Revenue is recognised when it is probable that economic benefits associated with the transaction will flow into the Company and when the amount of the revenue can be measured reliably. Sales are recognised net of taxes and discounts and when the related risks and benefits have passed onto the buyer. Interest income is accrued on a time basis, by reference to the principal outstanding and at the applicable effective interest rates.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are included in profit or loss in the period in which they are incurred.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.
Transactions in foreign currencies are translated into Croatian kunas at the rates of exchange in effect at the dates of the transactions. Cash, receivables and payables denominated in foreign currencies are retranslated at the rates of exchange in effect at the date of the statement of financial position. Gains and losses arising on translation are included in the statement of profit or loss and other comprehensive income for the year.
(All amounts are expressed in thousands of HRK)
The current tax liability is based on taxable profit for the year. Taxable profit differs from the net profit reported in the statement of profit or loss and other comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences, and deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are also not recognised on temporary differences arising from the initial recognition of goodwill.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amounts of its assets and liabilities.
For the purposes of measuring deferred tax liabilities and deferred tax assets on investment properties measured using the fair value model, the carrying amounts of such properties are presumed to be recovered entirely through sale unless the presumption is rebutted. The presumption is rebutted when the investment property is depreciable and is held within a business model whose objective is to consume substantially all of the economic benefits embodied in the investment property over time, rather than through sale. The Management Board of the Company has reviewed the Company's investment property portfolios and concluded that none of them is held under a business model whose objective is to consume substantially all of the economic benefits embodied in the investment properties over time, rather than through sale and determined that the 'sale' presumption set out in the amendments to IAS 12 is not rebutted. As a result, the Company has not recognised any deferred taxes on changes in fair value of the investment properties, as the Company is not subject to any income taxes on the disposal of its investment properties.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.
Property, plant and equipment are recognised initially at cost less accumulated depreciation. The cost of comprises the purchase price of an item of property, plant and equipment, import duties and nonrefundable sales taxes and any directly attributable costs of bringing the item to its working condition and location for its intended use.
Maintenance and repairs, replacements and improvements of minor importance are expensed as incurred. Where it is obvious that expenses incurred resulted in an increase of expected future economic benefits to be derived from the use of an item of property, plant and equipment beyond the originally assessed standard performance of the asset, they are added to the carrying amount of the asset. Gains or losses on the retirement or disposal of fixed assets are recognized as income or expense for the period in which they arise. Depreciation commences on putting an asset into use. Depreciation is provided so as to write down the cost or revalued amount of an asset other than land, property, plant and equipment under development over the estimated useful life of the asset using the straight-line method as follows:
| Type of assets | Useful life | Annual rate |
|---|---|---|
| Buildings | 20 years | 5% |
| Personal cars | 5 years | 20% |
| Intangible assets, equipment, vehicles (other than personal cars), machinery |
4 years | 25% |
| Computers, IT equipment, cell phones and network equipment | 2 years | 50% |
| Other assets not specified above | 10 years | 10% |
In 2016 the depreciation/amortisation rates did not change from those applied in the comparative period.
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where applicable direct labour costs and those overhead costs that have been incurred in bringing inventories to their present location and condition.
Where inventories have to be reduced to the net realisable value, the related impairment is charged to expenses for the year.
Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Small inventory includes items of tangible fixed assets with a useful life over one year, but with a unit cost below HRK 3,500 (2015: HRK 3,500).
Trade receivables and prepayments are carried at nominal amounts less an appropriate allowance for impairment for uncollectible amounts. Management provides for doubtful receivables based on a review of the overall ageing of all receivables and a specific review of significant individual amounts receivable. The allowance for amounts doubtful of collection is charged to expenses for the year.
Cash comprises account balances with banks, cash in hand, deposits and securities at call or with maturities of less than three months.
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable (i.e. more likely than not) that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where the effect of discounting is material, the amount of the provision is the present value of the expenditures expected to be required to settle the obligation, determined using the estimated risk free interest rate as the discount rate. Where discounting is used, the reversal of such discounting in each year is recognised as a financial expense and the carrying amount of the provision increases in each year to reflect the passage of time.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the date of the statement of financial position, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
A restructuring provision is recognised when the Company has developed a detailed formal plan for the restructuring and has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it. The measurement of a restructuring provision includes only the costs directly associated with the restructuring, which are those that are both necessarily entailed by the restructuring and not associated with the ongoing activities of the Company.
Contingent liabilities are not recognised in financial statements. They are disclosed unless the possibility of outflow of resources embodying economic benefits is remote. A contingent asset is not recognised in the financial statements but it is disclosed when the inflow of economic benefits becomes probable.
Events subsequent to the reporting date that provide additional information about the Company's position at the reporting date (adjusting events) are reflected in the financial statements. Subsequent events that are not adjusting events are disclosed in the notes when material.
Financial assets and financial liabilities included in the accompanying financial statements consist of cash and cash equivalents, marketable securities, trade and other receivables, trade and other payables, long-term receivables, loans, borrowings and investments. The details of the recognition and measurement of those items are presented in the corresponding policies.
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are measured initially at fair value. On initial recognition, transaction costs directly attributable to the acquisition or issue of a financial asset and a financial liability (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial asset or financial liability, as appropriate. Transaction costs directly associated with an acquisition of a financial asset or a financial liability at fair value through profit or loss are recognised immediately in profit or loss.
The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.
The effective interest method is a method of calculating the amortised cost of a financial asset or liability, and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial asset or liability, or, where appropriate, a shorter period.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Given loans and receivables, which include trade and other receivables, balances with banks and cash, are measured at amortised cost, determined using the effective interest method, less any impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables where the recognition of interest would be immaterial.
Available-for-sale (AFS) financial assets are non-derivatives that are either designated as AFS or are not classified as (a) loans and receivables, (b) held-to-maturity investments, or (c) financial assets at fair value through profit or loss.
Securities that are traded in an active market are classified as AFS and are stated at fair value at the end of each reporting period. Fair value is the market value, at the date of the statement of financial position, on a regulated securities exchange, by reference to the notification of the Central Depository Agency and taking into account the trading volume. Changes in the carrying amount of AFS monetary financial assets arising from changes in foreign currency rates (see below), interest income calculated using the effective interest method and dividends on AFS equity investments are recognised in profit or loss. Other changes in the carrying amount of available-for-sale financial assets are recognised in other comprehensive income and accumulated under the heading 'Investments revaluation reserve'. When an investment is disposed of or is determined to be impaired, the cumulative gain or loss previously recognised in the investments revaluation reserve is transferred to profit or loss.
The fair value of AFS monetary financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate prevailing at the end of the reporting period. The foreign exchange gains and losses arisen on the retranslation are determined based on the amortised cost of the monetary asset. Other foreign exchange gains and losses are recognised in other comprehensive income.
At the end of each reporting period, AFS equity investments without a quoted market price in an active market and whose fair value cannot be reliably measured as well as derivatives that are linked to and must be settled by delivery of such unquoted equity investments are measured at cost less any identified impairment losses.
Financial assets are assessed for indicators of impairment at each date of the statement of financial position. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted. For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of loan and trade receivables where the carrying amount is reduced through the use of an allowance account. When a trade receivable is uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account.
Changes in the carrying amount of the allowance account are recognised in profit or loss.
Financial instruments are classified as liabilities or equity instruments, in accordance with the substance of the underlying contracts. Interest, dividends, gains and losses on financial instruments classified as financial liabilities are recognised as income or expense when they arise. Financial assets and liabilities are offset when the Company has a legally enforceable right to set off the net amounts reported, or realise the asset and settle the liability simultaneously.
The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire; or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and also recognizes a collateralised borrowing for the proceeds received.
On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss previously recognised in other comprehensive income and accumulated in equity is transferred to profit or loss.
On derecognition of a financial asset other than in its entirety (e.g. when the Company retains an option to repurchase part of a transferred asset), the Company allocates the previous carrying amount of the financial asset between the part it continues to recognise under continuing involvement and the part it no longer recognises, on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognised and the sum of the consideration received for the part no longer recognised and any cumulative gain or loss allocated to it that had been recognised in other comprehensive income is recognised in profit or loss. A cumulative gain or loss that previously recognised in other comprehensive income is allocated between the part that continues to be recognised and the part that is no longer recognised on the basis of the relative fair values of those parts.
Other financial liabilities (including borrowings, trade and other payables) are measured initially at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial asset, or, where appropriate, a shorter period.
A financial guarantee contract is a contract that requires the issuer to make a specified payment to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.
(All amounts are expressed in thousands of HRK)
The Company measures financial guarantee contracts it has issued initially at fair value and subsequently, if they are not designated as at FVTPL, at the higher of:
• the amount of the obligation under the contract, as determined in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets; and
• the amount initially recognised less, where appropriate, cumulative amortisation recognised in accordance with the revenue recognition policies.
The Company derecognises financial liabilities when, and only when, the Company's obligations are discharged, cancelled or they expire. The difference between the carrying amount of a financial liability derecognised and the consideration paid or payable is recognised in profit or loss.
Government grants are not recognized until the fulfilment of the conditions for obtaining government grants and the receipt of aid becomes certain.
Government grants are recognised in profit or loss on a systematic basis over the periods in which the Company recognises as expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets are recognised as deferred revenue in the statement of financial position and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.
Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related costs are recognised in profit or loss in the period in which they become receivable.
The benefit of a government grant approved at an interest rate below the market rate is accounted for as a government grant and disclosed as the difference between the funds received and the fair value of the loan on the basis of the prevailing market interest rates.
The Company identifies operating segments on the basis of internal reports about components of the Company that are regularly reviewed by the chief operating decision-maker in order to allocate resources to the segments and to assess their performance. Details about the operating segments of the Company are disclosed in Note 5 to the separate financial statements.
(All amounts are expressed in thousands of HRK)
In the application of the Company's accounting policies, which are described above, the Management Board is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on past experience and other factors that are considered to be relevant. Actual results may differ from those estimates.
The estimates and underlying assumptions are continually reviewed. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of revision and future periods if the revision affects both current and future periods.
Areas of estimation include, but are not limited to, depreciation periods and residual values of property, plant and equipment, and of intangible assets, value adjustment of inventories, impairment of receivables, and litigation provisions. The key areas of estimation in applying the Company's accounting policies that had a most significant impact on the amounts recognized in the financial statements were as follows:
As described in the Note 3.6, the Company reviews the estimated useful lives of property, plant and equipment as well as of intangible assets at the end of each annual reporting period. Property, plant and equipment as well as intangible assets are recognised at cost less accumulated depreciation, i.e. amortisation.
Management provides for doubtful receivables based on a review of the overall ageing of all receivables and a specific review of significant individual amounts receivable. The allowance for amounts doubtful of collection is charged to the statement of profit or loss and other comprehensive income for the year.
The Company is involved in legal actions which have arisen from the regular course of its operations. The Management Board makes estimates when the probable outcome of a legal action has been assessed, and the provisions are recognised on a consistent basis.
(All amounts are expressed in thousands of HRK)
As described in Note 3.7, the Company reviews, at each reporting date, the carrying amounts of its inventories and recognises impairment if appropriate.
Inventories are stated at the lower of cost and net realisable value.
| 2016 | 2015 | |
|---|---|---|
| Foreign sales | 363,069 | 393,852 |
| Domestic sales | 333,920 | 522,217 |
| 696,989 | 916,069 |
The increase in the sales is a result of significantly lower merchandise sales and income from the sugar beet processing services.
| 2016 | 2015 | |
|---|---|---|
| Surplus | 1,203 | 810 |
| Income from subsequent collection of receivables previously provided | 1,244 | |
| against or written off | 522 | |
| Subsequently approved discounts | 513 | 1,182 |
| Raw material and supplies sales | 217 | 27 |
| Damages collected | 68 | 713 |
| Other income | 998 | 679 |
| 3,521 | 4,655 |
The operating segments were determined based on the similarity in the nature of individual product groups. Two operating segments were identified: "Sugar" and "Molasses and Dry Beet".
The operating segments are included in internal reports. The internal reports are regularly reviewed by the Management Board in order to assess the performance of the segments and to make business decisions.
Set out below is a breakdown of revenue and results of the Company by its reporting segments presented in accordance with IFRS 8 "Operating Segments". The presented sales comprise sales to buyers.
| 2016 | 2015 | |
|---|---|---|
| Sugar | 531,888 | 699,046 |
| Molasses and dry beet | 168,622 | 221,678 |
| 700,510 | 920,724 |
| 2016 | 2015 | 2016 | 2015 | |
|---|---|---|---|---|
| Sugar | 498,358 | 696,341 | 33,530 | 2,705 |
| Molasses and dry beet |
157,992 | 220,820 | 10,630 | 858 |
| 656,350 | 917,161 | 44,160 | 3,563 | |
| 2016 | 2015 | |||
| Operating profit / (loss) | 44,160 | 3,563 |
| Profit / (loss) before tax | 37,232 | (6,548) |
|---|---|---|
| Financial expenses | (20,753) | (22,062) |
| Financial income | 13,825 | 11,951 |
The Sugar segment comprises sugar production.
The Molasses and Dry Beet segment comprises the production of molasses and dry beet.
(All amounts are expressed in thousands of HRK)
The accounting policies of the reportable segments are identical to those of the Company, which are set out in Note 3. Segment loss or profit represents the loss or profit earned by each segment without allocation of financial income and expenses, and it is the measure reported to the chief executive officer for the purposes of resource allocation and assessment of segment performance.
| Segment assets and liabilities | ||
|---|---|---|
| 31.12.2016 | 31.12.2015 | |
| Segment assets | ||
| Sugar | 628,229 | 430,409 |
| Molasses and dry beet | 199,165 | 136,489 |
| Total segment assets | 827,394 | 566,898 |
| Unallocated | 595,835 | 642,504 |
| Total assets | 1,423,229 | 1,209,402 |
| 31.12.2016 | 31.12.2015 | |
| Segment liabilities | ||
| Sugar | 575,030 | 440,914 |
| Molasses and dry beet | 182,299 | 139,820 |
| Total segment liabilities | 757,329 | 580,734 |
| Unallocated | - | - |
| Total liabilities | 757,329 | 580,734 |
For the purposes of monitoring segment performance, all assets other than non-current and current financial assets (investments in subsidiaries, long-term financial assets and given loans and deposits – see Notes 15, 16 and 20, respectively) have been allocated to the segments.
All liabilities are allocated to the segments. Liabilities are allocated to reportable segments in proportion to segment assets.
For the year ended 31 December 2016
(All amounts are expressed in thousands of HRK)
| Depreciation and amortisation |
Additions | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| Sugar | 21,836 | 23,731 | 36,746 | 11,786 |
| Molasses and dry beet | 6,923 | 7,525 | 11,649 | 3,737 |
| Total | 28,759 | 31,256 | 48,395 | 15,523 |
The Company operates in three main geographical areas serving as the basis for sales reporting, whereas all non-current assets are on the Croatian market.
| Sales | ||
|---|---|---|
| 2016 | 2015 | |
| Croatian market | 337,441 | 526,871 |
| EU market | 350,932 | 376,388 |
| Others | 12,137 | 17,465 |
| Total | 700,510 | 920,724 |
Included in the sales in the amount of HRK 700,510 thousand (2015: HRK 920,724 thousand) are sales of HRK 136,216 thousand (2015: HRK 370,078 thousand) generated from the Company's major customer.
For the year ended 31 December 2016
(All amounts are expressed in thousands of HRK)
| 2016 | 2015 | |
|---|---|---|
| Raw material and supplies | 475,602 | 299,348 |
| Energy | 29,597 | 31,568 |
| Spare parts | 4,970 | 7,446 |
| Small inventory | 453 | 421 |
| Other material costs | 3 | 5 |
| 510,625 | 338,788 |
The significant increase in the cost of raw material and supplies in 2016 is a result of processing a higher volume of sugar beet compared with 2015.
Costs of goods sold in the amount of HRK 181,161 thousand (2015: HRK 305,901 thousand) represents expenses incurred on the cost of goods delivered and sold to the customers during the reporting year.
| 2016 | 2015 | |
|---|---|---|
| Transportation | 9,420 | 8,757 |
| Maintenance | 5,950 | 6,071 |
| Bank and payment operation charges | 4,082 | 2,572 |
| Rental and lease expenses | 3,199 | 5,703 |
| External staff services | 2,691 | 2,764 |
| Intellectual services | 1,717 | 1,944 |
| Municipal utility fees and charges | 1,232 | 1,267 |
| Insurance premiums | 1,173 | 2,006 |
| Postal, telephone and telecommunication services | 711 | 607 |
| Intermediation services | 596 | 560 |
| Handling costs | 562 | 383 |
| Data processing services | 441 | 414 |
| Market research services | 128 | 185 |
| Other services | 1,491 | 1,584 |
| 33,393 | 34,817 |
(All amounts are expressed in thousands of HRK)
| 2016 | 2015 | |
|---|---|---|
| Net wages and salaries | 13,579 | 12,246 |
| Taxes and contributions out of salaries | 5,194 | 4,684 |
| Contributions on salaries | 3,193 | 2,900 |
| 21,966 | 19,830 |
At 31 December 2016, the Company had 198 employees (31 December 2015: 188 employees).
| 2016 | 2015 | |
|---|---|---|
| Regulated benefits, contributions and membership fees | 6,308 | 6,280 |
| Awards and gifts to employees | 1,275 | 1,120 |
| Hospitality and entertainment | 972 | 899 |
| Employees' transportation costs | 945 | 818 |
| Employee benefits (per diems, accommodation, support) | 437 | 530 |
| Fees to Supervisory Board members | 439 | 505 |
| Professional education and literature | 119 | 309 |
| Fieldwork allowance | 38 | 38 |
| Other taxes and fees to the fund | 18 | 17 |
| Others | 223 | 219 |
| 10,774 | 10,735 |
For the year ended 31 December 2016
(All amounts are expressed in thousands of HRK)
| 2016 | 2015 | |
|---|---|---|
| Written-off receivables | 3,233 | 1,679 |
| Subsequently approved discounts | 1,253 | 1,401 |
| Cost of raw material and goods sold | 942 | 643 |
| Deficits | 876 | 1,412 |
| Donations | 766 | 699 |
| Written-off inventory | 491 | 1 |
| Subsequently identified expenses from prior years | 402 | 971 |
| Fines, penalties, damages | 9 | 263 |
| Others | 223 | 78 |
| 8,195 | 7,147 |
Subsequently identified expenses from prior years in the amount of HRK 402 thousand (2015: HRK 971 thousand) comprise HRK 282 thousand for the construction works from 2015 on Green Gold, HRK 14 thousand to a sugar customer complaint from 2015, HRK 28 thousand to a difference with respect to customs duties from 2014 and HRK 78 thousand represent other expenses from the prior year.
Write-off of receivables for the year 2016 in the amount of HRK 3,233 thousand comprise the following: write-off of trade receivables in the amount of HRK 214 thousand, write-off of receivables for given loans in the amount of HRK 232 thousand and write-off of given advances in the amount of HRK 2,787 thousand.
Receivables written off in 2015 in the amount of HRK 1,679 thousand comprise the following: trade receivables in the amount of HRK 1,668 thousand and given advances in the amount of HRK 11 thousand.
(All amounts are expressed in thousands of HRK)
| 2016 | 2015 | |
|---|---|---|
| Foreign exchange gains | 8,594 | 6,334 |
| Interest income – related parties | 2,914 | 3,983 |
| Foreign exchange gains – related companies | 1,094 | 649 |
| Interest income – unrelated companies | 666 | 643 |
| Unrealised gains on financial assets | 500 | 301 |
| Other financial income | 57 | 41 |
| 13,825 | 11,951 |
| 2016 | 2015 | |
|---|---|---|
| Interest expense - related companies | 8,860 | 13,006 |
| Foreign exchange losses | 7,459 | 6,270 |
| Foreign exchange losses – related companies | 2,958 | 927 |
| Charges on bank loans | 973 | 1,418 |
| Impairment of financial assets | 503 | - |
| Discounts – losses on the sale of bills of exchange, trade | 441 | |
| receivables | - | |
| 20,753 | 22,062 |
The discounts in the amount of HRK 441 thousand from 2015 relate to the cost of factoring for the discount of bills of exchange.
In 2016 the Company generated a profit in the amount of HRK 37,232 thousand and a tax loss in the amount of HRK 41,701 thousand, and tax losses brought forward amount to HRK 58,933 thousand; therefore, the Company has no income tax liability.
The reconciliation between accounting results and the result for taxation purposes are set out below:
| 2016 | 2015 | |
|---|---|---|
| Profit / (loss) before taxation | 37,232 | (6,548) |
| Income tax at 20% | 7,446 | (1,310) |
| Effect of tax non-deductible expenses and non-taxable income | 894 | (7,376) |
| Effect of unrecognised deferred tax assets arising from tax losses | 8,340 | 8,686 |
| Income tax | - | - |
The tax rate applicable to taxable profit in the Republic of Croatia is 20 % (2015: 20 %).
Tax losses available for carryforward are analysed below:
| Available for carryforward until: | Tax loss | Amount not recognised as deferred tax asset |
|---|---|---|
| 2020 | 17,233 | 3,447 |
| 17,233 | 3,447 |
No deferred tax assets have been recognised in the separate statement of the financial position in respect of unused tax losses carried forward because the availability of sufficient taxable profit in the future that would allow those assets to be utilised is not certain.
In accordance with local regulations, the tax authorities may at any time inspect the Company's books and records within 3 years subsequent to the year in which the tax liability is reported, and may impose additional tax assessments and penalties.
For the year ended 31 December 2016
(All amounts are expressed in thousands of HRK)
| Intangible assets |
Land | Buildings Objekti |
Plant and equipment |
Works of fine art |
Assets under development |
Other tangible assets |
Total | |
|---|---|---|---|---|---|---|---|---|
| Cost | ||||||||
| Balance at 31 December | ||||||||
| 2014 | 3,308 | 5,549 | 118,811 | 299,622 | 9 | 3,297 | 2,990 | 433,586 |
| Additions | 23 | - | 539 | 10,851 | - | 4,110 | - | 15,523 |
| Disposals, retirements, | - | - | - | (171) | - | (1,987) | - | (2,158) |
| Balance at 31 December | ||||||||
| 2015 | 3,331 | 5,549 | 119,350 | 310,302 | 9 | 5,420 | 2,990 | 446,951 |
| Additions | 103 | - | 3,072 | 5,094 | - | 40,126 | 48,395 | |
| Disposals, retirements, | - | - | - | (1,539) | - | (7,683) | (9,222) | |
| shortage Balance at 31 December |
||||||||
| 2016 | 3,434 | 5,549 | 122,422 | 313,857 | 9 | 37,863 | 2,990 | 486,124 |
Intangible assets consist of computer software and licences.
For the year ended 31 December 2016
(All amounts are expressed in thousands of HRK)
| Intangible assets |
Land | Buildings Objekti |
Plant and equipment |
Works of fine art |
Assets under development |
Other tangible assets |
Total | |
|---|---|---|---|---|---|---|---|---|
| Accumulated | ||||||||
| depreciation/amortisation | ||||||||
| Balance at 31 December | ||||||||
| 2014 | 3,200 | - | 42,066 | 201,578 | - | - | 616 | 247,460 |
| Charge for the year | 45 | - | 5,953 | 25,110 | - | - | 149 | 31,257 |
| Disposals, retirements, | - | - | - | (158) | - | - | - | (158) |
| Balance at 31 December | ||||||||
| 2015 | 3,245 | - | 48,019 | 226,530 | - | - | 765 | 278,559 |
| Charge for the year | 53 | - | 6,062 | 22,494 | - | - | 150 | 28,759 |
| Disposals, retirements, | - | - | - | (1,321) | - | - | - | (1,321) |
| Balance at 31 December | ||||||||
| 2016 | 3,298 | - | 54,081 | 247,703 | - | - | 915 | 305,997 |
| NET BOOK VALUE | ||||||||
| At 31 December 2016 | 137 | 5,549 | 68,341 | 66,154 | 9 | 37,863 | 2,075 | 180,127 |
| At 31 December 2015 | 86 | 5,549 | 71,331 | 83,772 | 9 | 5,420 | 2,225 | 168,392 |
(All amounts are expressed in thousands of HRK)
| Principal activity 31.12.2016 | Ownership interest (%) 31.12.2015 |
Ownership interest (%) |
|||
|---|---|---|---|---|---|
| Sladorana d.o.o. | Sugar production | 407,187 | 100.00 | 407,187 | 100.00% |
| Slavonija | Processing and trade of | ||||
| Županja d.d. | grains | 11,343 | 16.72 | 11,343 | 17.58% |
| VIRO – | Storage of goods, | ||||
| kooperacija | laboratory analysis of | ||||
| d.o.o. | samples | 20 | 100.00 | 20 | 100.00% |
| 418,550 | 418,550 |
Following the increase of the share capital of Slavonija Županja d.d. by Sladorana d.o.o. in February 2016, the ownership interest have changed as follows: the share of Sladorana d.o.o. has increased from 67.05% to 68.64%, and the share of VIRO TVORNICA ŠE ERA d.d. has decreased from 17.58% to 16.72%.
| 31.12.2016 | 31.12.2015 | |
|---|---|---|
| Loans given to a subsidiary | 149,217 | 177,344 |
| Given deposits, loans and down payments | 477 | 612 |
| Financial assets available for sale (AFS) | 903 | 903 |
| 150,597 | 178,859 |
Loans to a subsidiary in the amount of HRK 149,217 thousand (31 December 2015: HRK 177,344 thousand) relate to loans given to Sladorana d.o.o. A loan was raised at Raiffeisen bank for the purpose of repayment of loans to other banks taken for Viro tvornica še era d.d. and Sladorana d.o.o., which Sladorana d.o.o. repays as it falls due.
Given deposits, loans and down payments in the amount of HRK 477 thousand (31 December 2015: HRK 612 thousand) comprise loans in the amount of HRK 120 thousand (2015: HRK 120 thousand) given to the employees of Sladorana d.o.o. for purchases of shares as well as the following long-term loans: HRK 202 thousand to Trstenjak Duško (31 December 2015: HRK nil thousand); HRK 0 thousand to Kaladi Milan (31 December 2015: HRK 175 thousand); HRK 155 to Koprivanac Žaklina (31 December 2015: HRK nil thousand); as well as down payments of HRK nil thousand for operating leases (31 December 2015: HRK 317 thousand).
(All amounts are expressed in thousands of HRK)
| 31 December 2016 |
31.12.2015 | |
|---|---|---|
| Finished products | 214,171 | 74,510 |
| Prepayments for inventories | 49,849 | 42,135 |
| Raw material and supplies | 55,191 | 15,634 |
| Merchandise | 116,055 | 47,599 |
| Impairment allowance on inventories | (324) | (356) |
| 434,942 | 179,522 |
At 31 December 2016, the prepayments for inventories comprise advances made for the delivery of goods to Agrokor trgovina d.o.o. in the amont of HRK 21,520 thousand, Belje d.d., Darda, in the amount of HRK 13,365 thousand, Vupik d.d., Vukovar, in the amount of HRK 6,003 thousand and other companies in the amount of HRK 2,262 thousand. At the date of issue of this report, the prepayment for inventories provided to Agrokor trgovna d.o.o. was discharged and amounts to HRK 0 thousand.
| 31.12.2016 | 31.12.2015 | |
|---|---|---|
| Domestic trade receivables | 130,700 | 119,983 |
| Receivables from related companies (Note 30) | 1,260 | 71,467 |
| Foreign trade receivables | 11,217 | 10,701 |
| Impairment allowance on trade receivables | (8,304) | (8,784) |
| 134,873 | 193,367 |
| 31.12.2016 | 31.12.2015 | |
|---|---|---|
| Not yet due | 70,930 | 162,352 |
| 0-90 days past due | 53,398 | 24,787 |
| 90-120 days past due | 1,018 | 286 |
| 120-360 days past due | 1,493 | 1,561 |
| Over 360 days past due | 8,034 | 4,381 |
| 134,873 | 193,367 |
For the year ended 31 December 2016
(All amounts are expressed in thousands of HRK)
| 2016 | 2015 | |
|---|---|---|
| Balance at 1 January | 8,784 | 7,321 |
| New allowances recognised (Note 10.3) | 214 | 1,668 |
| Collection of previously impaired receivables | (694) | (205) |
| Balance at 31 December | 8,304 | 8,784 |
All the receivables provided against were past due beyond 120 days.
| 31.12.2016 | 31.12.2015 | |
|---|---|---|
| VAT receivable | 47,762 | 9,207 |
| Other amounts due from the state | 1,659 | 1,537 |
| 49,421 | 10,744 |
(All amounts are expressed in thousands of HRK)
| 31.12.2016 | 31.12.2015 | |
|---|---|---|
| Given loans | 12,394 | 5,220 |
| Loans to related companies | 4,682 | 31,934 |
| Investments in securities and deposits | 9,374 | 7,703 |
| Given deposits | 238 | 238 |
| 26,688 | 45,095 |
An overview of the given loans at 31 December 2016 is provided in the table below:
| Legal persons | Interest rate |
31.12.2016 | 31.12.2015 |
|---|---|---|---|
| Robi promet d.o.o. | 5.5% | 4,522 | - |
| Fortis factoring d.o.o. Dubrova ki podrumi d.d. Poljoprivredno dobro Gradina d.o.o. Romi promet d.o.o. |
- - - 6% |
3,700 2,957 1,725 1,224 |
1,000 2,957 1,378 - |
| Medion savjetovanje d.o.o. Infinitum factoring d.o.o. Konzum d.d. |
- - - |
554 500 394 |
554 350 380 |
| T.T. d.o.o., Split Visus d.o.o. Tenika-metal d.o.o. Žeza d.o.o. Podravska banka |
- - 6% 7% - |
151 143 111 - - |
151 143 13 1,027 630 |
| Invictus ulaganja d.o.o. | - | - | 100 |
| Others Impairment allowance Total loans to legal persons |
6%-7% | 379 (3,966) 12,394 |
323 (3,793) 5,213 |
| Natural persons | |||
| Others | 7% | 377 | 386 |
| Impairment allowance | (377) | (379) | |
| Total loans to natural persons | - | 7 | |
| Total given loans | 12,394 | 5,220 |
In 2016 the Company recognised impairment allowance on given loans in the amount of HRK 232 thousand (31. December 2015: HRK 0 thousand).
(All amounts are expressed in thousands of HRK)
| 31.12.2016 | 31.12.2015 | |
|---|---|---|
| Giro account balance | 22,247 | 1,458 |
| Foreign currency account balance | 164 | 5,544 |
| 22,411 | 7,002 |
Prepaid expenses in the amount of HRK 5,502 thousand (31 December 2015: HRK 7,762 thousand) comprise a prepaid fee of EUR 12 per ton of produced sugar within the granted quotas for the period January – September 2017 in the total amount of HRK 4,325 thousand (2015: HRK 3,981 thousand), accrued reimbursement expected from HŽ Cargo for 2016 in the amount of HRK nil thousand (31 December 2015: HRK 2,349 thousand), prepaid interest on leases in the amount of HRK 99 thousand (31 December 2015: HRK 331 thousand), accrued fees for issued loans in the amount of HRK 846 thousand (31 December 2015: HRK 1,048 thousand), as well as other prepaid expenses and accrued income in the amount of HRK 232 thousand (31 December 2015: HRK 53 thousand).
At 31 December 2016 the share capital amounts to HRK 249,600 thousand and consists of 1,386,667 shares (31 December 2015: HRK 249,600 thousand, consisting of 1,386,667 shares).
The ownership structure is set out below:
| Number of shares | Ownership in % | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| EOS-Z d.o.o. | 308,204 | 466,500 | 22.23 | 33.64 |
| Cristal financiere, France | 235,734 | - | 17.00 | - |
| Robi d.o.o. | 180,366 | 416,100 | 13.01 | 30.01 |
| Primorska banka d.d., Rijeka / omnibus account of a natural person |
158,296 | - | 11.42 | - |
| Societe Generale – Splitska banka d.d. / AZ MANDATORY PENSION FUND Primorska banka d.d., Rijeka / omnibus |
137,055 | 137,055 | 9.88 | 9.88 |
| account of a legal person | 127,936 | 127,936 | 9.23 | 9.23 |
| Others | 239,076 | 196,032 | 17.23 | 14.14 |
| 1,386,667 | 1,386,667 | 100.00 | 100.00 |
For the year ended 31 December 2016
(All amounts are expressed in thousands of HRK)
| 2016 | 2015 | |
|---|---|---|
| Legal reserves | 12,480 | 12,480 |
| Capital reserves | 10,368 | 10,368 |
| Reserves for own shares | 43,867 | 43,867 |
| 66,715 | 66,715 |
Basic earnings/(loss) per share are determined, by dividing the Company's net profit/(loss) by the weighted average number of ordinary shares outstanding during the year, excluding the weighted average number of ordinary shares redeemed and held by the Company as treasury shares.
| 2016 | 2015 | |
|---|---|---|
| Profit / (loss) for the year attributable to the shareholders of the Company (in HRK'000) Weighted average number of ordinary shares used in the calculation of the |
37,232 | (6,548) |
| basic earnings per share: | 1,386,667 | 1,386,667 |
| Basic earnings / (loss) per share (in kunas and lipas) | 26.85 | (4.72) |
Diluted earnings / (loss) per share are equal to basic (loss) /earnings per share, as there is no basis for adjusting the weighted average number of ordinary shares.
For the year ended 31 December 2016
(All amounts are expressed in thousands of HRK)
| 31.12.2016 | 31.12.2015 | |
|---|---|---|
| Long-term borrowings | ||
| Bank loans | 228,214 | 301,484 |
| Finance lease obligations | 750 | 3,182 |
| Other creditors | 625 | 834 |
| 229,589 | 305,500 | |
| Short-term borrowings | ||
| Bank loans | 13,400 | 13,400 |
| Banks – current portion of long term loans (due within 1 year) | 87,774 | 53,203 |
| Finance lease – current portion of long-term finance leases (due within 1 year) |
2,744 | 5,912 |
| Financial loan | 4,700 | 2,080 |
| 108,618 | 74,595 | |
| Total | 338,207 | 380,095 |
Bank borrowings in the amount of HRK 329,388 thousand (31 December 2015: HRK 368,087 thousand) are secured by registered lien on the Company's properties and equipment.
Debentures have been provided as security instruments for finance leases in the amount of HRK 3,494 thousand (31 December 2015: HRK 9,094 thousand).
The financial loan in the amount of HRK 4,700 thousand (31 December 2015: HRK 2,080 thousand) represents an amount owed to Konzum d.d.
Movements in received bank loans are presented below:
| 2016 | 2015 | |
|---|---|---|
| Balance at 1 January | 368,087 | 295,285 |
| New loans raised | 177,496 | 466,123 |
| Amounts repaid | (212,228) | (392,269) |
| Exchange differences | (3,967) | (1,052) |
| Balance at 31 December | 329,388 | 368,087 |
(All amounts are expressed in thousands of HRK)
Overview of the bank loans (by maturity, interest rate, amount and currency):
| Creditor | Maturity | Interest rate |
Currency | Balance at 31.12.2016 |
|---|---|---|---|---|
| Long-term borrowings | ||||
| 4% + 3m | ||||
| Raiffeisenbank Austria d.d. | 31.03.2021 | EURIBOR | EUR | 315,988 |
| Short-term borrowings | ||||
| Kentbank d.d. | 30.04.2017 | 6% | HRK | 3,400 |
| Kentbank d.d. | 23.05.2017 | 5.5% | HRK | 10,000 |
| Total short-term and long-term | |
|---|---|
| borrowings | 329,388 |
Present value of minimum finance lease payments
| Minimum lease payments |
Finance charges | Present value of minimum lease payments |
||||
|---|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |
| Up to 1 year | 2,744 | 5,912 | 78 | 236 | 2,666 | 5,676 |
| From two to five years | 750 | 3,182 | 21 | 95 | 729 | 3,087 |
| 3,494 | 9,094 | 99 | 331 | 3,395 | 8,763 | |
| Less: future finance charges |
99 | (331) | - | - | ||
| Present value of minimum lease payments |
3,395 | 8,763 | 3,395 | 8,763 |
(All amounts are expressed in thousands of HRK)
| 31.12.2016 | 31.12.2015 |
|---|---|
| 260,646 | 80,070 |
| 53,073 | 24,811 |
| 313,719 | 104,881 |
At 31 December 2016 advances received amount to HRK 1,303 thousand (31 December 2015: HRK 3,275 thousand) and relate to advance payments made by foreign and domestic enterprises for sugar.
| 31 December 2016 |
31.12.2015 | |
|---|---|---|
| Liabilities in respect of issued bills of exchange | 60,674 | 77,293 |
| Taxes, contributions and similar duties payable | 2,101 | 5,515 |
| Liabilities to employees | 1,284 | 1,156 |
| Liabilities in respect of the share in the result | 31 | 32 |
| Other current liabilities | 9,090 | 5,403 |
| 73,180 | 89,399 |
The liabilities for issued bills of exchange represent amounts payable to suppliers of sugar beet and protective substances as follows:
| 31 December 2016 |
31.12.2015 | |
|---|---|---|
| Agrokor d.d., Zagreb | 26,900 | 20,000 |
| Belje d.d., Darda | 16,706 | 36,697 |
| PIK Vinkovci | 9,564 | 10,230 |
| Vupik d.d., Vukovar | 7,504 | 10,366 |
| 60,674 | 77,293 |
Liabilities for the bills of exchange issued to Agrokor trgovina d.o.o., Belje d.d., Darda, PIK Vinkovci d.d. and Vupik d.d. relate to amounts owed to suppliers in respect of prepayments made for deliveries of sugar beet and protection. As of the reporting date, the bill of exchange of Agrokor trgovana d.o.o. was paid and amounts to HRK nil thousand
(All amounts are expressed in thousands of HRK)
| 31 December 2016 |
31 December 2015 |
|
|---|---|---|
| Accrued direct sugar beet costs | 93 | 356 |
| Interest expense | 12 | 55 |
| Other accrued expenses | 77 | 280 |
| 182 | 691 |
Balances and transactions between the Company and its related parties are disclosed below.
Transactions entered into between the Company and its related parties during the year are as follows:
| Sales | Other income | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| SLADORANA d.o.o. | 28,944 | 213,787 | 31 | 223 |
| SLAVONIJA ŽUPANJA d.d. | 7,684 | - | - | |
| OŠTRC PROMET d.o.o. | 984 | - | - | - |
| DALMACIJAVINO SPLIT | ||||
| d.o.o. | 8 | - | - | - |
| 37,620 | 213,787 | 31 | 223 | |
| Operating expenses | ||||
| Selling expenses | Other expenses | |||
| 2016 | 2015 | 2016 | 2015 | |
| SLADORANA d.o.o. | 27,889 | 152,915 | 6 | 3 |
| SLAVONIJA ŽUPANJA d.d. | 9,626 | - | - | - |
| OŠTRC PROMET d.o.o. | ||||
| DALMACIJAVINO SPLIT | 942 | - | - | - |
7
-
38,464 152,915 6 3
-
d.o.o.
-
For the year ended 31 December 2016
(All amounts are expressed in thousands of HRK)
| Financial income | Financial expenses | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| SLADORANA d.o.o. | 2,585 | 3,127 | 2,958 | 927 |
| GRUDSKA PIVOVARA d.o.o. | 1,266 | 1,491 | - | - |
| SLAVONIJA ŽUPANJA d.d. | 157 | 14 | - | - |
| 4,008 | 4,632 | 2,958 | 927 |
Outstanding balances from trading transactions at the end of the reporting period:
| Amounts owed by related parties |
Amounts owed to related parties |
|||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| SLADORANA d.o.o. | - | 70,870 | 30,703 | - |
| OŠTRC PROMET d.o.o. | 1,223 | - | - | - |
| OŠTRC d.o.o. | 27 | 537 | ||
| DALMACIJAVINO SPLIT d.o.o. | 10 | - | 35 | - |
| ROBI PROMET d.o.o. |
- | 60 | - | 150 |
| SLAVONIJA ŽUPANJA d.d. | - | - | - | 2,243 |
| VIRO-KOOPERACIJA d.o.o. | - | - | - | - |
| 1,260 | 71,467 | 30,738 | 2,393 |
| Receivables for given loans | Borrowings | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| SLADORANA d.o.o. SLAVONIJA ŽUPANJA d.d. |
149,217 3,005 |
177,402 - |
- - |
- - |
| GRUDSKA PIVOVARA d.o.o. | - | 30,199 | - | - |
| VIRO-KOOPERACIJA d.o.o. | 1,677 | 1,677 | - | - |
| 153,899 | 209,278 | - | - |
For the year ended 31 December 2016
(All amounts are expressed in thousands of HRK)
| 2016 | 2015 | |
|---|---|---|
| Salaries | 2,216 | 2,199 |
| Others | 269 | 265 |
| 2,485 | 2,464 |
(All amounts are expressed in thousands of HRK)
The Company manages its capital to ensure that it will be able to continue as a going concern, while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Company's overall strategy has remained unchanged since 2012.
The capital of the Company consists of the net debt (which includes received loans and borrowings disclosed in Note 25 less cash and cash equivalents) and shareholders' equity (comprising the registered capital, reserves and retained earnings).
The Treasury of the Company reviews the capital structure of the Company on a regular basis. As part of this review, the Treasury considers the cost of capital and the risks associated with each class of capital. The gearing ratio at the year end was as follows:
| 2016 | 2015 | |
|---|---|---|
| Debt (i) | 338,207 | 380,095 |
| Cash and cash equivalents | (22,411) | (7,002) |
| Net debt | 315,796 | 373,093 |
| Equity (ii) | 665,900 | 628,668 |
| Net debt-to-equity ratio | 47.42 | 59.35 |
(i) Debt consists of short-term and long-term borrowings, as disclosed in Note 25.
(ii) Equity consists of the share capital, retained earnings, including the loss or profit for the year, as well as reserves.
For the year ended 31 December 2016
(All amounts are expressed in thousands of HRK)
| 31. December 2016 |
31 December 2015 |
|
|---|---|---|
| Financial assets | ||
| Non-current financial assets | 150,597 | 178,859 |
| Receivables from related companies | 1,260 | 71,467 |
| Trade receivables | 133,613 | 121,900 |
| Current financial assets | 26,688 | 45,095 |
| Other receivables | 118 | 109 |
| Cash and cash equivalents | 22,411 | 7,002 |
| Prepaid expenses and accrued income | 5,502 | 3,781 |
| 340,189 | 428,213 | |
| Financial liabilities | ||
| Loans payable and borrowings | 229,589 | 305,500 |
| Liabilities to related companies | 30,738 | 2,393 |
| Loans payable and borrowings | 108,618 | 74,595 |
| Advances received | 1,303 | 3,275 |
| Trade payables | 313,719 | 104,881 |
| Other current liabilities | 71,079 | 83,884 |
| Accrued expenses and deferred income | 182 | 691 |
| 755,228 | 575,219 |
The carrying amount reflected above represents the Company's maximum exposure to credit risk for such loans and receivables.
The Company's Treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by degree and magnitude of risks.
These risks comprise market risk (including currency risk and price risk), credit risk, liquidity risk and interest rate risk.
The Company seeks to minimise the effects of these risks. The Company does not enter into, or trade in financial instruments, including derivative financial instruments, for speculative purposes. The Treasury periodically reports about the risk exposures to the Company's Management Board.
The Company's activities expose it primarily to the financial risks arising from movements in sugar prices and raw material required for its production (sugar beet and sugar cane). The Company is also exposed to the risk of fluctuations in foreign exchange and interest rates, which are described in more detail below.
The Company undertakes certain transactions denominated in foreign currencies. Hence, it is exposed to fluctuations in foreign exchange rates.
The carrying amounts of the Company's foreign-currency denominated monetary assets and monetary liabilities at the end of the reporting period are provided in the table below:
| Liabilities | Assets | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| European Union (EUR) | 585,671 | 446,794 | 216,285 | 298,612 |
| USD | 112 | 32 | - | 2,353 |
(All amounts are expressed in thousands of HRK)
The Company is mainly exposed to the fluctuations in the exchange rate of the Croatian kuna against the euro (EUR) and the US dollar (USD) because these are the currencies in which the majority of sugar sales (EUR) and purchases of raw sugar (USD) on international markets are carried out.
The following table analyses the Company's sensitivity to a ten-percent (10%) change in the exchange rate of the Croatian kuna against the relevant foreign currency. Ten percent (10 %) is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents the management's assessment of the reasonably possible change in the foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year end for the 10-percent change in the relevant foreign exchange rate. The sensitivity analysis includes external borrowings, as well as loans to foreign operations of the Company denominated in a currency other than the currency of the lender or the borrower. A positive number below indicates an increase in profit or equity where the Croatian kuna strengthens 10 percent against the relevant currency. For a 10-percent weakening of the Croatian kuna against the relevant currency, there would be an equal and opposite impact on the profit or equity, and the balances below would be negative.
| EUR impact | USD impact | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| Profit or loss | (37,039) | (14,818) | (11) | 232 |
The exposure to the 10-percent change for the relevant currencies is mainly related to the balance of borrowings, trade payables and receivables from related companies denominated in euro (EUR) as well as trade payables denominated in the US dollar (USD).
The Company is exposed to interest rate risk, as it borrows funds at fixed and variable interest rates. The Company manages the interest rate risk by maintaining adequate proportion of fixed-rate and variable-rate loans. The Company's exposures to interest rates on its financial assets and financial liabilities are detailed in the liquidity risk management section of this note.
(All amounts are expressed in thousands of HRK)
The sensitivity analyses below have been determined based on the exposure to interest rates for nonderivative instruments at the end of the reporting period. The following analysis of the sensitivity to variable rate liabilities has been prepared assuming the amount of the liability outstanding at the end of the year was outstanding for the whole year. A 50 basis point increase/decrease is used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.
If interest rates had been 50 basis points higher/lower and all other variables were held constant:
· the Company's loss for the year 2016 would be higher / lower by HRK 443 thousand (2015: loss higher/lower by HRK 650 thousand). This is mainly attributable to the Company's exposure to interest rates on its variable-rate debt.
Credit risk is the risk that the counterparty will default on its contractual obligations resulting in a financial loss to the Company. The Company has adopted a policy of dealing only with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from default. The Company monitors its exposure to, and the creditworthiness of its counterparties on an ongoing basis, and spreads the total value of the concluded transactions over accepted clients. Credit exposure is managed by setting limits to customers.
Credit analysis involves assessing the financial position of the debtor and, where appropriate, insurance coverage is sought for credit guarantees.
The most significant credit risk concentrations arising from the Company's key customers are analysed below:
| Receivables | ||||
|---|---|---|---|---|
| 31 December 2016 | 31 December 2015 | |||
| Customer A | 71,778 | - | ||
| Customer B | 13,299 | - | ||
| Customer C | 5,058 | 4,412 | ||
| Customer D | 4,686 | 3,227 | ||
| Customer E | 3,517 -_---------------- |
8,263 ____ |
||
| 98,338 _____ |
15,902 ____ |
(All amounts are expressed in thousands of HRK)
The Company usually seeks from its customers to furnish bank guarantees, debentures and bills of exchange as instruments of collateral.
Prudent liquidity management implies maintaining sufficient levels of cash, obtaining adequate funding using credit lines and facilities and the ability to settle the liabilities on a timely basis. It also involves matching the maturities of liabilities and maintaining appropriate levels of liquid assets. Ultimate responsibility for liquidity risk management rests with the Management Board. The Company manages its liquidity by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The cash flow forecasts are prepared on a monthly basis (by day) and departures are monitored daily.
The following tables detail the remaining contractual maturities of the Company's non-derivative financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables includes both principal and interest cash outflows. The undiscounted cash outflows on interest at variable rates was derived from interest rate curves at the end of the reporting period. The contractual maturity is defined as the earliest date on which the Company can be required to make the payment.
| Weighted average effective interest rate |
Up to 1 month |
1 to 3 months |
3 months to 1 year |
1 to 5 years |
Total | |
|---|---|---|---|---|---|---|
| 2016 | ||||||
| Non-interest bearing | ||||||
| liabilities | 139,150 | 8,428 | 268,585 | 626 | 416,789 | |
| Interest bearing | 4.93% | 21,985 | 22,915 | 70,812 | 247,654 | 363,366 |
| 161,135 | 31,343 | 339,397 | 248,280 | 780,155 | ||
| 2015 | ||||||
| Non-interest bearing | ||||||
| liabilities | 39,328 | 101,429 | 51,348 | 834 | 192,939 | |
| Interest bearing | 4.22% | 1,336 | 6,258 | 25,755 | 385,351 | 418,700 |
| 40,664 | 107,687 | 77,103 | 386,185 | 611,639 |
(All amounts are expressed in thousands of HRK)
The following tables details the Company's remaining contractual maturity for its non-derivative financial assets. The tables have been drawn up based on the undiscounted cash flows of financial receivables based on the earliest date on which the Company can require payment.
| Weighted average effective interest rate |
Up to 1 month |
1 to 3 months |
3 months to 1 year |
1 to 5 years |
Total | |
|---|---|---|---|---|---|---|
| 2016 | ||||||
| Non-interest bearing assets |
108,308 | 53,364 | 5,776 | 1,646 | 169,094 | |
| Interest-bearing | 5.97% | 4,986 | 14,964 | 37,213 | 123,592 | 180,755 |
| assets | ||||||
| 113,294 | 68,328 | 42,989 | 125,238 | 349,849 | ||
| 2015 | ||||||
| Non-interest bearing assets |
54,692 | 153,023 | 3,541 | 1,263 | 212,519 | |
| Interest-bearing | 7.13% | 3,021 | 1,602 | 54,912 | 170,242 | 229,777 |
| assets | ||||||
| 57,713 | 154,625 | 58,453 | 171,505 | 442,296 |
The fair values of financial assets and financial liabilities are determined as follows:
At 31 December 2016, the carrying amounts of cash, receivables, short-term deposits, receivables, shortterm liabilities, accrued expenses, short-term borrowings and other financial instruments approximate their fair values due to the short-term nature of these assets and liabilities.
(All amounts are expressed in thousands of HRK)
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from the prices).
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).
| 31 December 2016 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial assets available for sale | ||||
| (AFS) | 350 | 903 | - | 1,253 |
| Total | 350 | 903 | - | 1,253 |
| 31 December 2015 | Level 1 | Level 2 | Level 3 | Total |
| Financial assets available for sale | ||||
| (AFS) | 853 | 903 | - | 1,756 |
| Total | 853 | 903 | - | 1,756 |
| 2016 | 2015 |
|---|---|
| 163 | 431 |
| 2016 | 2015 |
| 54 | 146 |
| 151 | |
| 205 | 146 |
| ENJLUƏURE 1 Reporting period: |
|||
|---|---|---|---|
| 1 January 2016 | to | 31 December 2016 | |
| Annual Financial Report-GFI-POD | |||
| Tax Number (MB): 01650971 |
|||
| Registration Number (MBS): 010049135 |
|||
| Personal Identification 04525204420 Number (OIB): Issuer: VIRO TVORNICA ŠEĆERA d.d. |
|||
| Postal Code and Location: 10000 |
ZAGREB | ||
| Street and number: ULICA GRADA VUKOVARA 269 g | |||
| e-mail address: [email protected] | |||
| Internet address: www.secerana.hr | |||
| Code and name for VIROVITICA 491 municipality/city |
|||
| Code and name for county 10 |
VIROVITIČKO-PODRAVSKA | Number of employees 198 |
|
| Consolidated Report NO |
(at the year's end) Business activity code: 1081 |
||
| Entities in consolidation (according to IFRS) | Registered seat: | Tax number (MB): | |
| Book-keeping firm | |||
| Contact person ZDENKA SMOJVER | |||
| (name and surname of the contact person) | |||
| Telephone 033840100 | Telefaks: 033840103 | ||
| e-mail address [email protected] | |||
| Surname and name ŽELJKO ZADRO (authorized representatives) |
|||
| Documents for publication 1. Revised Annual Financial Statements 2. Statements for persons responsible for composing financial statements 3. Management report |
(signature of authorized person) |
| Item | AOP | Last year (net) Current year | |
|---|---|---|---|
| $\overline{a}$ | code 2 1 |
$\overline{3}$ | (net) $\boldsymbol{A}$ |
| ASSETS | |||
| A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL | 001 | ||
| B) LONG-TERM ASSETS (003+010+020+029+033) | 002 | 765.801.159 | 749.273.897 |
| I. INTANGIBLE ASSETS (004 to 009) | 003 | 86.315 | 136.740 |
| 1. Assets development | 004 | ||
| 2. Concessions, patents, licences fees, trade and service marks, software and other rights | 005 | 86.315 | 136.740 |
| 3. Goodwill | 006 | ||
| 4. Prepayments for purchase of intangible assets | 007 | ||
| 5. Intangible assets in preparation | 008 009 |
||
| 6. Other intangible assets | 010 | 168.306.215 | 179.990.028 |
| II. TANGIBLE ASSETS (011 to 019) 1. Land |
011 | 5.548.592 | 5.548.592 |
| 2. Buildings | 012 | 71.331.533 | 68.340.805 |
| 3. Plant and equipment | 013 | 83.772.355 | 66.153.617 |
| 4. Tools, facility inventory and transport assets | 014 | ||
| 5. Biological assets | 015 | ||
| 6. Prepayments for tangible assets | 016 | 307.627 | 34.576.964 |
| 7. Tangible assets in progress | 017 | 5.112.658 | 3.286.081 |
| 8. Other tangible assets | 018 | 9.300 | 9.300 |
| 9. Investments in buildings | 019 | 2.224.150 | 2.074.669 |
| III. LONG-TERM FINANCIAL ASSETS (021 to 028) | 020 | 597.408.629 | 569.147.129 |
| 1. Investments (shares) with related parties | 021 | 419.450.043 | 419.450.043 |
| 2. Loans given to related parties | 022 | 177.343.482 | 149.216.583 |
| 3. Participating interest (shares) | 023 | ||
| 4. Loans to entrepreneurs in whom the entity holds participating interests | 024 | ||
| 5. Investments in securities | 025 | 3.248 | 3.248 |
| 6. Loans, deposits and similar assets | 026 | 611.856 | 477.255 |
| 7. Other long - term financial assets | 027 | ||
| 8. Investments accounted by equity method | 028 029 |
Ö | $\overline{0}$ |
| IV. RECEIVABLES (030 to 032) 1. Receivables from related parties |
030 | ||
| 2. Receivables from based on trade loans | 031 | ||
| 3. Other receivables | 032 | ||
| V. DEFERRED TAX ASSETS | 033 | ||
| C) SHORT TERM ASSETS (035+043+050+058) | 034 | 435.839.083 | 668,453.422 |
| I. INVENTORIES (036 to 042) | 035 | 179.521,872 | 434,941.674 |
| 1. Raw-material and supplies | 036 | 15.634.383 | 55.191.037 |
| 2. Work in progress | 037 | ||
| 3. Finished goods | 038 | 74.153.867 | 213.847.092 |
| 4. Merchandise | 039 | 47.598.499 | 116.054.925 |
| 5. Prepayments for inventories | 040 | 42.135.123 | 49.848.620 |
| 6. Long - term assets held for sales | 041 | ||
| 7. Biological assets | 042 | ||
| II. RECEIVABLES (044 to 049) | 043 | 204.219.640 | 184.412.623 1.259.876 |
| 1. Receivables from related parties | 044 | 71.406.529 121.960.367 |
133.612.862 |
| 2. Accounts receivable | 045 046 |
||
| 3. Receivables from participating parties | 047 | 2.372 | 890 |
| 4. Receivables from employees and members of related parties | 048 | 10.743.689 | 49.421.570 |
| 5. Receivables from government and other institutions 6. Other receivables |
049 | 106.683 | 117.425 |
| III. SHORT TERM FINANCIAL ASSETS (051 to 057) | 050 | 45.095.292 | 26.687.789 |
| 1. Shares (stocks) in related parties | 051 | ||
| 2. Loans given to related parties | 052 | 1.735.697 | 4.681.963 |
| 3. Participating interests (shares) | 053 | ||
| 4. Loans to entrepreneurs in whom the entity holds participating interests | 054 | ||
| 5. Investments in securities | 055 | ||
| 6. Loans, deposits, etc. | 056 | 35.656.652 | 12.632.314 |
| 7. Other financial assets | 057 | 7.702.943 | 9.373.512 |
| IV. CASH AT BANK AND IN CASHIER | 058 | 7.002.279 | 22.411.336 |
| D) PREPAID EXPENSES AND ACCRUED REVENUE | 059 | 7.761.345 | 5.501.947 |
| E) TOTAL ASSETS (001+002+034+059) | 060 | 1,209.401.587 | 1.423.229.266 |
| F) OFF-BALANCE RECORDS | 061 | 281.936.097 | 291.648.942 |
| LIARILITIES AND CAPITAL |
| A) CAPITAL AND RESERVES (063+064+065+071+072+075+078) | 062 | 628.667.495 | 665,899.638 |
|---|---|---|---|
| I. SUBSCRIBED CAPITAL | 063 | 249.600.060 | 249.600.060 |
| III. CAPITAL RESERVES | 064 | 10.368.101 | 10.368.101 |
| III.RESERVES FROM PROFIT (066+067-068+069+070) | 065 | 56.346.673 | 56.346.673 |
| 1. Reserves prescribed by low | 066 | 12.480.003 | 12.480.003 |
| 2. Reserves for treasury shares | 067 | 43.866.670 | 43.866.670 |
| 3. Treasury stocks and shares (deduction) | 068 | ||
| 4. Statutory reserves | 069 | ||
| 5. Other reserves | 070 | ||
| IV. REVALUATION RESERVES | 071 | ||
| V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074) | 072 | 318.901.121 | 312.352.661 |
| 1. Retained earnings | 073 | 318.901.121 | 312.352.661 |
| 2. Accumulated loss | 074 | ||
| VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077) | 075 | $-6.548.460$ | 37.232.143 |
| 1. Profit for the current year | 076 | 37.232.143 | |
| 2. Loss for the current year | 077 | 6.548.460 | |
| IX. MINORITY INTERESTS | 078 | ||
| B) PROVISIONS (080 to 082) | 079 | $\mathbf 0$ | |
| 1. Provisions for pensions, severance pay, and similar liabilities | 080 | ||
| 2. Reserves for tax liabilities | 081 | ||
| 3. Other reserves | 082 | ||
| C) LONG - TERM LIABILITIES (084 to 092) | 083 | 305.499.913 | 229.589.347 |
| 1. Liabilities to related parties | 084 | ||
| 2. Liabilities for loans, deposits etc. | 085 | 4.015.994 | 1.375.750 |
| 3. Liabilities to banks and other financial institutions | 086 | 301.483.919 | 228.213.597 |
| 4. Liabilities for received prepayments | 087 | ||
| 5. Accounts payable | 088 | ||
| 6. Liabilities arising from debt securities | 089 | ||
| 7. Liabilities to entrepreneurs in whom the entity holds participating interests | 090 | ||
| 8. Other long-term liabilities | 091 | ||
| 092 | |||
| 9. Deferred tax liability | 093 | 274.543.567 | 527:558.401 |
| D) SHORT - TERM LIABILITIES (094 to 105) | 094 | 2.393.482 | 30.738.212 |
| 1. Liabilities to related parties | 095 | 7.992.303 | 7.443.244 |
| 2. Liabilities for loans, deposits etc. | 096 | 66.603.095 | 101.174.511 |
| 3. Liabilities to banks and other financial institutions | 097 | 3.275.008 | 1.302.698 |
| 4. Liabilities for received prepayments | 098 | 104.881.026 | 313.719.185 |
| 5. Accounts payable | 099 | ||
| 6. Liabilities arising from debt securities | 100 | ||
| 7. Liabilities to entrepreneurs in whom the entity holds participating interests | 101 | 1.155.944 | 1.284.066 |
| 8. Liabilities to employees | 102 | 5.514.605 | 2.101.273 |
| 9. Liabilities for taxes, contributions and similar fees | 103 | 31.703 | 30.963 |
| 10. Liabilities to share - holders | 104 | ||
| 11. Liabilities for long-term assets held for sale | 105 | 82.696.401 | 69.764.249 |
| 12. Other short - term liabilities E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE |
|||
| PERIOD | 106 | 690.612 | 181.880 |
| F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106) | 107 | 1.209.401.587 | 1.423.229.266 |
| G) OFF-BALANCE RECORDS | 108 | 281.936.097 | 291.648.942 |
| APPENDIX to balance sheet(to be filled in by entrepreneur that prepares consolidated annual financial report) | |||
| CAPITAL AND RESERVES | |||
| 1. Attributed to equity holders of parent company | 109 | ||
| 2. Attributed to minority interest | 110 |
| VIRO TVORNICA ŠEĆERA d.d. | |||
|---|---|---|---|
| Item | AOP code |
Last year | Current year |
| n | $\overline{2}$ | 3 | 4 |
| I. OPERATING REVENUE (112+113) | 111 | 920.723.764 | 700.509.756 |
| 1. Sales revenue | 112 113 |
916.069.380 4.654.384 |
696.989.106 3.520.650 |
| 2. Other operating revenues II. OPERATING EXPENSES (115+116+120+124+125+126+129+130) |
114 | 917.161.191 | 656.350.120 |
| 1. Changes in value of work in progress and finished products | 115 | 168.687.561 | $-138.523.037$ |
| 2. Material costs (117 to 119) | 116 | 679.505.672 | 725.178.607 |
| a) Raw material and material costs | 117 | 338.787.709 | 510.624.754 |
| b) Costs of goods sold | 118 | 305.901.254 | 181.160.920 |
| c) Other external costs | 119 | 34.816.709 | 33.392.933 |
| 3. Staff costs (121 to 123) | 120 | 19,829,901 | 21.966.324 |
| a) Net salaries and wages | 121 | 12.245.975 | 13.578.823 5.194.585 |
| b) Cost for taxes and contributions from salaries | 122 123 |
4,683,623 2.900.303 |
3.192.916 |
| c) Contributions on gross salaries 4. Depreciation |
124 | 31.256.001 | 28.759.248 |
| 5. Other costs | 125 | 10.734.767 | 10.773.515 |
| 6. Impairment (127+128) | 126 | O | IJ $\circ$ |
| a) Impairment of long-term assets (financial assets excluded) | 127 | ||
| b) Impairment of short - term assets (financial assets excluded) | 128 | ||
| 7. Provisions | 129 | ||
| 8. Other operating costs | 130 | 7.147.289 | 8.195.463 |
| III. FINANCIAL INCOME (132 to 136) | 131 | 11.950.936 | 13,825,221 |
| 1. Interest income, foreign exchange gains, dividends and similar income from related parties |
132 | 2.491.641 | 2.804.648 |
| 2. Interest income, foreign exchange gains, dividends and similar income from non - | 133 | 9.157.795 | 10.520.573 |
| 3. Share in income from affiliated entrepreneurs and participating interests | 134 | ||
| 4. Unrealized gains (income) from financial assets | 135 | 301.500 | 500.000 |
| 5. Other financial income | 136 137 |
22.061.969 | 20.752.714 |
| IV. FINANCIAL EXPENSES (138 do 141) 1. Interest expenses, foreign exchange losses, dividends and similar expenses from |
138 | 927.316 | 2.957.899 |
| related parties | 139 | 20.693.318 | 17.292.315 |
| 2. Interest expenses, foreign exchange losses, dividends and similar expenses from non - 3. Unrealized losses (expenses) on financial assets |
140 | 502.500 | |
| 4. Other financial expenses | 141 | 441.335 | |
| V. INCOME FROM INVESTMENT - SHARE IN PROFIT OF ASSOCIATED ENTREPRENEURS | 142 | ||
| VI. LOSS FROM INVESTMENT - SHARE IN LOSS OF ASSOCIATED ENTREPRENEURS | 143 | ||
| VII. EXTRAORDINARY - OTHER INCOME | 144 | ||
| VIII. EXTRAORDINARY - OTHER EXPENSES | 145 | ||
| IX. TOTAL INCOME (111+131+142 + 144) | 146 | 932.674.700 | 714.334.977 |
| X. TOTAL EXPENSES (114+137+143 + 145) | 147 | 939.223.160 | 677.102.834 |
| XI. PROFIT OR LOSS BEFORE TAXATION (146-147) | 148 | $-6,548,460$ | 37.232.143 37.232.143 |
| 1. Profit before taxation (146-147) | 149 150 |
6.548.460 | |
| 2. Loss before taxation (147-146) XII. PROFIT TAX |
151 | ||
| XIII. PROFIT OR LOSS FOR THE PERIOD (148-151) | 152 | $-6.548.460$ | 37.232,143 |
| 1. Profit for the period (149-151) | 153 | 0. | 37.232.143 |
| 2. Loss for the period (151-148) | 154 | 6.548.460 | A. |
| APPENDIX to P&L account (to be filled in by entrepreneur that prepares consolidated financial report) | |||
| XIV. PROFIT OR LOSS FOR THE PERIOD | |||
| 1. Attributed to equity holders of parent company | 155 | ||
| 2. Attributed to minority interest | 156 | ||
| STATEMENT OF OTHER COMPREHENSIVE INCOME (IFRS) | $-6.548.460$ | 37.232.143 | |
| I. PROFIT OR LOSS FOR THE PERIOD (= 152) II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165) |
157 158 |
6 | ٠o |
| 1. Exchange differences on translation of foreign operations | 159 | ||
| 2. Movements in revaluation reserves of long - term tangible and intangible assets | 160 | ||
| 3. Profit or loss from reevaluation of financial assets available for sale | 161 | ||
| 4. Gains or losses on efficient cash flow hedging | 162 | ||
| 5. Gains or losses on efficient hedge of a net investment in foreign countries | 163 | ||
| 6. Share in other comprehensive income / loss of associated companies | 164 | ||
| 7. Actuarial gains / losses on defined benefit plans | 165 | ||
| III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD | 166 | ||
| IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166) | 167 | o | $\overline{\mathbf{0}}$ |
| V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167) | 168 | $-6.548.460$ | 37.232.143 |
| APPENDIX to Statement of other comprenhensive income (to be filled in by entrepreneur that prepares consolidated financial report) | |||
| VI. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD | |||
| 1. Attributed to equity holders of parent company | 169 170 |
||
| 2. Attributed to minority interest |
| for the period | 1.1.2016 | do | 31.12.2016 | ||
|---|---|---|---|---|---|
| AOP | |||||
| Item | code | Last year | Current year | ||
| $\overline{2}$ | 3 | $\mathcal{A}$ | |||
| CASH FLOW FROM OPERATING ACTIVITIES | |||||
| 1. Profit before tax | 001 | $-6.548.460$ | 37.232.143 | ||
| 2. Depreciation | 002 | 31.256.001 | 28,759.248 | ||
| 3. Increase in short term liabilities | 003 | 218.992.477 | |||
| 4. Decrease in short term receivables | 004 | 19.807.017 | |||
| 5. Decrease in inventories | 005 | 148,883,732 | |||
| 6. Other increase in cash flow | 006 | 12.388.084 | 20.666.901 | ||
| I. Total increase in cash flow from operating activities (001 to 006) | 007 | 185.979.357 | 325,457,786 | ||
| 1. Decrease in short term liabilities | 008 | 80.072.247 | |||
| 2. Increase in short term receivables | 009 | 101.163.720 | |||
| 3. Increase in inventories | 010 | 255.419.802 | |||
| 4. Other decrease in cash flow | 011 | 6.273.084 | 6.114.639 | ||
| II. Total decrease in cash flow from operating activities (008 to 011) | 012 | 187,509.051 | 261.534.441 | ||
| A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES | 013 | 63.923.345 | |||
| A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES | 014 | 1.529.694 | 52 U.Y | ||
| CASH FLOW FROM INVESTING ACTIVITIES | |||||
| 1. Cash inflows from sales of long-term tangible and intangible assets | 015 | 13.344 | 217.805 | ||
| 2. Cash inflows from sales of equity and debt instruments | 016 | ||||
| 3. Interests receipts | 017 | 2.683.636 | 1.679.568 | ||
| 4. Dividend receipts | 018 | 40.596 | 56,703 | ||
| 5. Other cash inflows from investing activities | 019 | 47.639.936 | 34.039.033 | ||
| III. Total cash inflows from investing activities (015 to 019) | 020 | 50.377.512 | 35.993.109 | ||
| 1. Cash outflow for purchase of long-term tangible and intangible assets | 021 | 13.536.041 | 40.711.291 | ||
| 2. Cash outflow for acquisition of equity and debt financial instruments | 022 | ||||
| 3. Other cash outflow for investing activities | 023 | 108.420.045 | 5.777.533 | ||
| IV. Total cash outflow for investing activities (021 do 023) | 024 | 121.956.086 | 46.488.824 | ||
| B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024) | 025 | ||||
| B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES | 026 | 71,578.574 | 10.495.715 | ||
| CASH FLOW FROM FINANCIAL ACTIVITIES | |||||
| 1. Cash inflow from issuing property and debt financial instruments | 027 | ||||
| 2. Proceeds from the credit principal, promissory notes, borrowings and other loans | 028 | 465.716.896 | 177,339.572 | ||
| 3. Other proceeds from financial activities | 029 | 338,000.000 | 247.628.278 | ||
| V. Total cash inflows from financial activities (027 to 029) | 030 | 803.716.896 | 424.967.850 | ||
| 1. Cash outflow for repayment of credit principal and bonds | 031 | 392.268.843 | 212,228.499 | ||
| 2. Cash outflow for dividends paid | 032 | ||||
| 3. Cash outflow for financial lease | 033 | 6.627.929 | 5.977.777 | ||
| 4. Cash outflow for purchase of treasury shares | 034 | ||||
| 5. Other cash outflow for financial activities | 035 | 339.809.853 | 244.780.147 | ||
| VI. Total cash outflow for financial activities (031 to 035) | 738.706.625 | 462.986.423 | |||
| C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES | 036 037 |
65.010.271 | |||
| C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES | 038 | 38.018.573 | |||
| Total increase in cash flow $(013 - 014 + 025 - 026 + 037 - 038)$ | 039 | 15.409.057 | |||
| Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$ | 040 | 8.097.997 | |||
| Cash and cash equivalents at the beginning of the period | 041 | 15.100.276 | 7.002.279 | ||
| Increase of cash and cash equivalents | 042 | 15.409.057 | |||
| Decrease of cash and cash equivalents | 043 | 8.097.997 | 0 | ||
| Cash and cash equivalents at the end of the period | 044 | 7.002.279 | 22.411.336 |
| for the period from 1.1.2016 31.12.2016 to |
|||
|---|---|---|---|
| Item | EDP | Previous year | Current year |
| $\mathbf{\hat{i}}$ | $\overline{2}$ | $\overline{\mathbf{3}}$ | $\boldsymbol{A}$ |
| 1. Subscribed capital | 001 | 249.600.060 | 249,600,060 |
| 2. Capital reserves | 002 | 10.368.101 | 10.368.101 |
| 3. Profit reserves | 003 | 56.346.673 | 56.346.673 |
| 4. Retained profit or loss carried forward | 004 | 318.901.121 | 312.352.661 |
| 5. Profit or loss of the current year | 005 | $-6.548.460$ | 37.232.143 |
| 6. Revaluation of fixed tangible assets | 006 | ||
| 7. Revaluation of intangible assets | 007 | ||
| 8. Revaluation of financial property available for sale | 008 | $\Omega$ | |
| 9. 9. Other revaluation | 009 | ||
| 10. Total capital and reserves (EDP 001 through 009) | 010 | 628.667.495 | 665.899.638 |
| 11. Foreign exchange differences from net investments in foreign operations | 011 | ||
| 12. Current and deferred taxes (part) | 012 | ||
| 13. Cash flow protection | 013 | ||
| 14. Changes in accounting policies | 014 | ||
| 15. Correction of significant mistakes from the previous period | 015 | ||
| 16. Other equity changes | 016 | ||
| 17. Total increase or decrease of capital (EDP 011 through 016) | 017 | 0 | 0 |
| 018 | |||
| 17 a. Assigned to holders of parent company's capital | |||
| 17 b. Assigned to minority interest | 019 |
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