Consolidated annual financial statements for the year 2011

Transcription

Tankerska plovidba Group
Consolidated Annual Financial Statements and
Independent Auditor`s Report
for 2011
CONTENTS
PAGE
Responsibility for financial statements
3
Independent Auditor`s Report
4
Financial Statements:
Consolidated income statement and statement
of comprehensive income
6
Consolidated balance sheet
8
Consolidated statement of cash flows
9
Consolidated statement of changes in equity
11
Notes forming part of the consolidated financial statements 12-45
INDEPENDENT AUDITOR`S REPORT TO THE SHAREHOLDERS OF
TANKERSKA PLOVIDBA GROUP
From 5th October 2011 to 27th June 2012 we have audited the consolidated financial statements
of “TANKERSKA PLOVIDBA” shipping stock company, Zadar (“the Company”) and its
subsidiaries (together “ the Group”) which comprise the accompanying consolidated balance
sheet as at 31st December 2011, consolidated income statement and statement of comprehensive
income for 2011, consolidated statement of cash flows and consolidated statement of changes in
equity for the year then ended, and a presentation of significant accounting policies and notes to
the consolidated financial statements. The statements are stated on page 6 up to page 45.
Management`s responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated
financial statements in accordance with International Financial Reporting Standards applicable in
the European Union. These responsibilities include: designing, implementing and maintaining
internal control relevant to the preparation and fair presentation of financial statements that are
free from misstatement, whether due to fraud or error; selecting and applying appropriate
accounting policies and making accounting estimates that are reasonable in the determined
circumstances.
Auditor`s responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on
our audit. We conducted our audit in accordance with International Standards on Auditing. Those
standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance whether the consolidated financial statements are without material
misstatement.
An audit involves performing procedures in order to obtain audit evidence about the amounts and
disclosures in the consolidated financial statements. The procedure selected depends on the
auditor`s judgement, including the assessment of the risks of material assessments. In making
those risk assessments, the auditor considers internal control, relevant to the entity’s preparation
and fair presentation of the consolidated financial statements in order to determine audit
procedures that are appropriate in the existing circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity`s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by the management, as well as evaluating the overall presentation of
consolidated financial statements.
We believe that the audit evidences we have obtained are sufficient and appropriate to provide a
basis for our audit opinion.
4
CONSOLIDATED INCOME STATEMENT AND STATEMENT OF
COMPREHENSIVE INCOME
(For the year ended 31 December 2011)
HRK
Description
Note
Jan-Dec 2011
Jan-Dec 2010
2
3
4
5
1
11/10
+/- %
6=4/5
Income statement
1.
1.1.
1.2.
2.
2.1.
2.2.
2.3.
2.4.
2.5.
REVENUES FROM ORDINARY
ACTIVITIES
Sales revenue
Other revenues
COSTS FROM ORDINARY
ACTIVITIES
Operating costs and cost of goods sold
Personnel costs
Depreciation
Value adjustment and provisions
Other costs
3
4
5
6
7
8
1.005.887.504
1.131.980.586
-11,1
905.720.980
100.166.524
1.017.598.203
114.382.383
-11,0
-12,4
(1.057.091.621)
(1.064.768.168)
-0,7
(318.512.710)
(237.656.131)
(217.351.190)
(0)
(283.571.590)
(257.983.517)
(258.951.268)
(237.093.844)
(0)
(310.739.539)
23,5
-8,2
-8,3
-8,7
(51.204.117)
67.212.418
-176,2
3.
RESULT FROM ORDINARY
ACTIVITIES
4.
NET FINANCIAL
(EXPENSES)/REVENUES
9
(40.773.227)
11.198.641
-464,1
Financial revenues
Financial expenses
9
9
5.384.267
(46.157.494)
42.164.386
(30.965.745)
-87,2
49,1
5.
PROFIT/(LOSS) FROM INVESTMENT
IN ASSOCIATES
14
1.970.850
2.265.997
-13,0
6.
PROFIT/(LOSS) FROM ORDINARY
ACTIVITIES BEFORE TAX
(90.006.494)
80.677.056
-211,6
7.
INCOME TAX
(325.830)
(264.767)
23,1
8.
ATTRIBUTED TO MINORITY
INTERESTS
(158.352)
(92.813)
70,6
9.
PROFIT/(LOSS) FROM CONTINUING
OPERATIONS
(90.490.676)
80.319.476
-212,7
10.
PROFIT(LOSS) FROM
DISCONTINUING OPERATIONS
0
0
11.
PROFIT/(LOSS) FOR THE PERIOD
(90.490.676)
80.319.476
-212,7
(144,65)
129,58
-211,6
4.1.
4.2.
Earnings/(losses) per share (HRK)
10
11
6
CONSOLIDATED STATEMENT OF CASH FLOWS
(For the year ended 31 December 2011)
HRK
Description
Note
Jan-Dec 2011
Jan-Dec 2010
1
2
3
4
5
I.
1.
OPERATING ACTIVITIES
Profit/loss for the period after tax
Adjustments for:
Income tax expense
Depreciation of property, plant
and equipment
Depreciation of intangible assets
Profit/loss of investment in
associates
Profit/loss on sale of property,
plant and equipment and
intangible assets
Profit/loss on sale of securities
and shares
Interest expense/revenue (net)
Impairment in trade receivables
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
II.
1.
2.
3.
4.
5.
6.
7.
8.
9.
11/10
+/- %
6=4/5
(90.332.324)
80.412.289
-212,3
10
7
325.830
217.280.484
264.767
237.013.645
23,1
-8,3
7
14
70.706
(1.970.850)
80.199
(2.265.997)
-11,8
-13,0
(42.026.353)
(61.807.899)
-32,0
9
0
(4.619)
9
41.032.953
0
25.912.527
0
58,4
Operating profit before working
capital changes
124.380.446
279.604.912
-55,5
Increase/decrease in inventories
Increase/decrease in current
receivables
Increase/decrease in current
liabilities
Other increase/decrease of
cash flow
Income taxes paid
Interest paid
Interest received
CASH FLOW FROM
OPERATING ACTIVITIES
(16.807.192)
(37.283.315)
(9.924.079)
(18.236.054)
69,4
104,4
50.648.028
12.601.501
301,9
(49.723.997)
(77.549.336)
-35,9
(219.549)
(41.298.617)
2.782.000
32.477.804
(265.373)
(28.797.465)
4.520.577
161.954.683
-17,3
43,4
-38,5
-79,9
(421.493.077)
(147.411.431)
185,9
(59.098)
61.989.741
(42.966)
72.496.603
37,5
-14,5
(28.193.885)
11.686
-241.362,1
48.521
(3.828.000)
4.106.086
8.400.000
(71.883.375)
12.893
(4.170.009)
3.992.162
8.400.000
5.131.770
276,3
-8,2
2,9
0,0
-1.500,8
(450.913.087)
(61.579.292)
632,2
INVESTING ACTIVITIES
Purchase of property, plant and
equipment
Purchase of intangible assets
Proceeds from sale of long term
assets
Net expenditures/proceeds from
purchase/sale of financial assets
Proceeds from dividends
Loans given
Repayment of given loans
Government grant received
Other expenditures/proceeds
from investing activities
CASH FLOW FROM
INVESTING ACTIVITIES
9
Notes to the financial statements as at 31 December 2011 (forming
part of the consolidated financial statements)
NOTE 1: GENERAL INFORMATION
TANKERSKA PLOVIDBA d.d. Zadar („the Company“) is a joint stock company incorporated
and domiciled in the Republic of Croatia. The registered office is at Zadar, Božidara
Petranovića 4.
Company`s shares are quoted on the official market of Zagreb stock exchange.
The core business of the Company is:
1. Transport of freight (cargo) over seas and coastal waters
2. Transport of passengers over seas and coastal waters
3. Service activities incidental to sea transportation:
 Salvage and towage of ships;
 Supply of ships, boat and yachts with motor fuel;
 Pilotage in coastal waters of Republic of Croatia;
 International freight (cargo) transport by road;
 Wholesale trade and commission trade of ships, ship`s equipment and inventory,
technical equipment and spare parts for ship`s maintenance and repair;
 Import in own name of office equipment, stationery and accessories;
 Wholesale of crude, liquid and gaseous oils and related products.
At 31st December 2011 the Group had 1.109 employees: 156 employees in administration, 63
seamen in full time employment and 890 seamen on contract. (31.12.2010. 1.074 employees:
154 employees in administration, 66 in full time employment and 854 seamen on contract).
Up to 9th of December 2011 members of Supervisory Board were as follows:
Svetko Koščica
Dragan Gaćina
Lenko Milin
Ivan Pupovac
Mladen Vučetić
President
Member
Member
Member
Member
From 9th of December 2011 members of Supervisory Board were as follows:
Ivan Pupovac
Nikola Koščica
Luka Kolanović
Ivica Pijaca
Željko Belić
President
Member
Member
Member
Member
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Up to 1st of February 2012 members of the Managing Board were as follows:
Ive Mustać
Ivica Čičmir-Vestić
Petar Kragić
Chairman of the Board
Member of the Board
Member of the Board
From 1st of February 2012 and up to publishing of these reports members of the Managing
Board were as follows:
Lenko Milin
Ivica Čičmir-Vestić
Joško Jurin
Chairman of the Board
Member of the Board
Member of the Board
The ownership structure of the Company at 31 December 2011 was as follows:
Number of
shares
Share of
ownership %
Silba Participations B.V.
PBZ d.d./Custodial consolidated client account
Societe Generale-Splitska banka d.d./Allianz
ZB d.o.o. for AZ Mandatory pension fund
Raiffeisenbank Austria d.d./ R PS
Raiffeisenbank Austria d.d./ RBA
Čičmir-Vestić Ivica
Kragić Petar
Mustać Ive
Milin Lenko
Gaćina Dragan
Others
519.104
9.139
82,87
1,46
5.155
3.127
2.200
1.939
1.936
1.929
1.925
1.922
78.009
0,82
0,50
0,35
0,31
0,31
0,31
0,31
0,31
12,45
Total
626.385
100,00
These financial statements for the year ended 31 st December 2011 comprise of the financial
statements of TANKERSKA PLOVIDBA d.d., its subsidiaries abroad (shipping companies
operating internationally) that TANKERSKA PLOVIDBA d.d. operates from a single
headquarter, under a unique name and management, and for which it is in obligation to keep
business books and prepare financial statements for the full operations in the country and
abroad according to the article 429. paragraph 3. of the Maritime Code (Official Gazette of the
Republic of Croatia no.181/04., 76/07., 146/08. and 61/11.), of the other subsidiaries and of the
Group`s interest in associates.
At 27h June 2012 the Board approved the financial statements to be issued to the Supervisory
Board. The Board and the Supervisory Board left to the General Assembly to approve the
financial statements.
Accounting policies given below were applied consistently for all periods presented in these
consolidated financial statements.
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NOTE 2: PRINCIPAL ACCOUNTING
POLICIES
Basis of accounting policies applied in the financial statements are listed below:
a) Statement of compliance
The consolidated financial statements of the Group have been prepared in accordance with
laws and regulations of Republic of Croatia and International Financial Reporting Standards
adopted by the European Union.
The applied accounting policies are unchanged in relation to the previous year. The Group did
not adopt any new and changed IFRS and their interpretations which affect financial position,
financial result or require additional disclosures in financial statements.
Standards, amendments and interpretations adopted by the European Union and the Croatian
Board and effective
Following new or amended standards and interpretations issued which are or have become
effective during the year and had no effect on amounts published in this report:
• 2010 Annual Improvements to IFRS 1, IFRS 3, IFRS 7, IAS 1, IAS 27, IAS 34 and IFRIC
13 (effective for annual periods beginning on or after 1 January 2011),
• 2010 Annual improvements to IFRSs – amendments of transitional requirements to IAS 21,
IAS 28, IAS 31, IAS 32 and IAS 39 (effective for annual periods beginning on or after 1
January 2011),
• IAS 24 (amended) Related parties (effective for annual periods beginning on or after 1
January 2011),
• IFRS 1 First time adoption of IFRS amendments – limited exemption from comparative
IFRS 7 disclosures for first-time adopters (effective for annual periods beginning on or after
1 January 2011),
• IFRIC 14 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and
their Interaction (amendments effective for annual period beginning on or after 1 January
2011),
• IFRIC 19 – Extinguishing Financial Liabilities with Equity Instruments (effective for annual
periods beginning on or after 1 January 2011).
Standards, amendments and interpretations to existing standards that are not yet effective
At the date of authorization of these consolidated financial statements, certain new standards,
amendments and interpretations to existing standards have been published but are not yet
effective and were not adopted by the Group for the year ended 31 December 2011:
• IFRS 9 Financial Instruments (new standard effective for annual periods beginning on or
after 1 January 2015),
• IFRS 10 Consolidated financial statements (new standard effective for annual periods
beginning on or after 1 January 2013),
• IFRS 11 Joint arrangements (new standard effective for annual periods beginning on or
after 1 January 2013),
14
•
•
•
•
•
•
•
•
•
•
•
IFRS 12 Disclosure of interests in other entities (new standard effective for annual periods
beginning on or after 1 January 2013),
IAS 27 and IAS 28 (consequential amendments due to above mentioned new consolidation
standards - effective for annual periods beginning on or after 1 January 2013),
IFRS 13 – Fair value measurement (new standard effective for annual periods beginning
on or after 1 January 2013),
IAS 1 (revised) Presentation of Financial Statements (amendments effective for annual
periods beginning on or after 1 July 2012),
IAS 19 (revised) Employee benefits (amendments effective for annual periods beginning on
or after 1 January 2013),
IAS 32 – Financial instruments: Presentation amendments to application guidance on the
offsetting of financial assets and financial liabilities (effective for annual periods beginning
on or after 1 January 2014),
IFRS 1 First time adoption of IFRS replacement of fixed dates for certain exceptions
(effective for annual periods beginning on or after 1 July 2011),
IFRS 1 First time adoption of IFRS additional exemptions for entities ceasing to suffer from
severe hyperinflation (effective for annual periods beginning on or after 1 July 2011),
IFRS 7 Financial instruments: Disclosures (amendments effective for annual periods
beginning on or after 1 July 2011 or 1 January 2013),
IFRS 7 Financial instruments: Disclosures (amendments requiring disclosures about the
initial application of IFRS 9 effective for annual periods beginning on or after 1 January
2015),
IAS 12(revised) Income taxes (limited scope amendment effective for annual periods
beginning on or after 1 January 2012).
Management anticipates that all of the above stated interpretations and standards will be
adopted in the Group’s consolidated financial statements for the first period beginning after the
effective date of the pronouncement and its application should not have a material impact on
the Group’s consolidated financial statements.
b) Basis of reporting
Financial statements of the Group are prepared on the historical cost basis, except for
available-for sale financial assets which are stated at fair value.
Financial statements of the Group are prepared on a going concern basis.
Financial statements of the Group are presented in Croatian Kuna (HRK).
The preparation of consolidated financial statements in conformity with IFRS requires
management to make judgements, estimates and assumptions that affect the application of
policies and reported amounts of assets, liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and on various other factors that
are believed to be reasonable under the circumstances, the results of which form the starting
point for making the estimates about carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results may be differed from these estimates.
The mentioned estimates and associated assumptions are the subject of regular reviewed. The
influence of the estimate correction is recognised in the period in which the correction of
15
estimate is done if the correction affects only that period, or in the period of correction and
future periods if the correction affects both current and future periods.
Consolidated financial statements include the financial statement of TANKERSKA PLOVIDBA
d.d. ZADAR and of the following subsidiaries owned by Tankerska plovidba:
 Shipping companies engaged in international shipping
1. PULZAR MARITIME CORPORATION, MONROVIA, LIBERIA
2. PULZAR MARITIME TWO LIMITED, VALLETTA, MALTA
3. CORISLES SHIPPING CORPORATION LIMITED, MONROVIA, LIBERIA
4. DONAT MARITIME CORPORATION, MONROVIA, LIBERIA
5. DIADORA SHIPPING COMPANY LTD., MONROVIA, LIBERIA
6. RIVA SHIPPING COMPANY LIMITED, MONROVIA, LIBERIA
7. RIVA G. SHIPPING COMPANY LIMITED, MONROVIA, LIBERIA
8. RIVA N. SHIPPING COMPANY LIMITED, MONROVIA, LIBERIA
9. RIVA TANKER SHIPPING COMPANY LTD., MONROVIA, LIBERIA
10. FONTANA SHIPPING COMPANY LIMITED, MONROVIA, LIBERIA
11. PUNTA MARITIME LTD., VALLETTA, MALTA
12. PUNTA TWO MARITIME LTD., VALLETTA, MALTA
13. DALMATIA MARITIME LTD., VALLETTA, MALTA
14. AENONA MARITIME LTD., VALLETTA, MALTA
15. DONAT MARITIME LTD., VALLETTA, MALTA
16. JADERA MARITIME LTD., VALLETTA, MALTA
17. ANASTASIA MARITIME LTD., VALLETTA, MALTA
18. TEUTA SHIPPING COMPANY LTD, MONROVIA, LIBERIA
19. JADERA MARITIME LTD, MONROVIA LIBERIA
20. PUNTA MARITIME LTD, MONROVIA, LIBERIA
21. PUNTA TWO MARITIME LTD, MONROVIA, LIBERIA
 Other companies
22. ALAN SHIPPING COMPANY LIMITED, LONDON, GREAT BRITAIN
23. RTD D.O.O., ZADAR, CROATIA
24. REKREACIJSKO TURISTIČKI CENTAR NIN D.O.O., NIN, CROATIA
25. STAMBENO GOSPODARSTVO TANKER D.O.O., ZADAR, CROATIA
26. AENONA D.D., ZADAR, CROATIA
All stated companies are 100% owned by Tankerska plovidba, except the company “Stambeno
gospodarstvo Tanker” d.o.o. Zadar where Tankerska plovidba d.d. has 33,67% ownership and
controlling influence and company “Aenona” d.d. Zadar where Tankerska plovidba has 55%
ownership.
Accounting of the companies with registered office in Liberia and Malta is conducted in US$
according to the regulations of the Republic of Croatia, and the accounting of the company with
registered office in UK is conducted in GBP in accordance with the UK regulations. Items of the
balance sheet and of profit and loss account are translated at middle exchange rate of Croatian
National Bank on the balance sheet date, and that was at 31.12.2011 5,819940 HRK for 1 US$
and 8,986181 HRK for 1 GBP (31.12.2010 5,568252 HRK for 1 US$ and 8,608431 HRK for 1
GBP).
16
c) Foreign currencies
Transactions in foreign exchanges are translated in domestic currency using middle exchange
rate of Croatian National Bank currency prevailing at the date of transaction. Monetary assets
and liabilities in foreign currency are translated into domestic currency according to middle
exchange rate of the Croatian National Bank valid at the date of balance sheet. Foreign
exchange gains and losses resulting from the settlement of such transactions are recognised in
the income statement within financial revenues or financial expenses.
Assets and liabilities, revenues and expenses and cash flows of foreign entities are translated
into domestic currency according to the middle exchange rate of Croatian National Bank valid
at the end of the year, except in the case of significant currency fluctuations during the period,
when the currency exchange rate on transaction date is applied. All resulting exchange
differences are recognised in a separate component of equity. Exchange differences resulting
from the translation of the net investment in foreign entities are included in equity under
translation reserve. At the sale of foreign entity, exchange differences are recognized in the
income statement.
d) Intangible assets
Goodwill arising on acquisition represents the excess of the cost of a business acquisition over
the fair value of the Group`s share of net identifiable assets of the acquired subsidiary or
associate at the date of acquisition.
Goodwill arising on the acquisition of the subsidiary is treated as intangible assets. In respect of
associate, goodwill is included in the carrying amount of the investment in the associate.
Goodwill is stated at cost less accumulated impairment losses.
Goodwill is allocated to cash generating units and tested annually to determine impairment.
The allocation of goodwill is made to those cash generating units expected to benefit from the
business combination in which the goodwill arose.
When the Group disposes of an operation within a cash-generating unit, the goodwill
associated with the operation disposed of is:
• included in the carrying amount of the operation when determining the gain or loss on
disposal and
• measured on the basis of the relative values at the date of disposal of the operation disposed
and the portion of the cash- generating unit retained.
Intangible assets acquired by the Group, with a finite life of application, are stated at cost less
accumulated depreciation and impairment of assets. Intangible assets consists of software
whose estimated use and the expected lifetime is 5 years. Subsequent expenditure is
capitalised only if it is probable that it increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure is recognised in the income statement as
an expense as incurred.
Depreciation is recognised in the income statement on a straight-line basis over the estimated
useful life of intangible assets from the date on which they are available for use.
17
e) Property, plant and equipment
Items of property, plant and equipment, that meet the criteria for recognition as an asset, are
stated at cost. Cost includes all costs directly attributable to bring the asset to a working
condition for its intended use.
After the initial recognition as assets, a single item of property, plant and equipment is stated at
cost less accumulated depreciation and accumulated impairment losses.
Gains and losses from disposal of the property, plant and equipment are recognized within
other revenues or expenses in the income statement depending on achieved results. When
revaluated assets are sold, the amounts included in revaluation reserves are transferred to
retained earnings.
Subsequent expenditures related to the already recognized item of property, plant and
equipment, are capitalised as an increase in value of property when it is probable, that because
of these additional costs, will accrue additional future economic benefits and when these
expenditures improve the condition of the property beyond the originally recognized. All other
subsequent expenditure is recognized as an expense in the period incurred.
Depreciation is carried out separately for each major asset (vessels) according to the
depreciation age of 16 years for tankers and 20 years for bulk carriers less for scrap value,
taking in consideration the work in three shifts according to the decision of the Supervisory
Board at the Fourth meeting in 1995.
Depreciation is calculated according to the expected lifetime of use and rates derived from it,
depending on the group and subgroup of tangible assets, applying the straight-line method.
Depreciation is calculated within the rates established by the Profit Tax Act (Official Gazette of
the Republic of Croatia, 177/04., 90/05., 57/06., 146/08. and 80/10.):
- Buildings
- Transport vehicles
- Computers and telecommunications equipment
- Office equipment
- Furniture
2%
20%
25%
20%
10%
Depreciation starts in the month following the month in which the asset is ready for its intended
use.
Land is not depreciated as it is considered to have an unlimited lifetime. Assets in the course of
construction represent unfinished property and are carried at cost.
f) Investment in subsidiaries and associates
Subsidiaries are entities in which the Company has the power, directly or indirectly, to exercise
control over their operations. Control is achieved where the Company has the power to govern
the financial and operating policies of an entity so as to obtain benefit from its activities.
Financial statements of subsidiaries are included in consolidated financial statements from the
date that the control commences until the date that control ceases.
18
Associates are entities in which the Group holds between 20% and 50% of voting rights and
has significant influence, but which it does not control. Significant influence is the power to
participate in the financial and operating policy decisions of the investee but it is not control or
joint control over those policies. Investments in associates are accounted for by the equity
method of accounting.
All intra-group transactions between Group entities are eliminated in full on consolidation.
g) Financial assets
Investments are classified in the following categories: investments held-to-maturity,
investments held-for-trading and investments available-for-sale.
Investments with fixed or determinable payments and with fixed maturity in which the Group
has a positive intent and ability to hold to maturity, with exception of loans and receivables
derived from the Group, are classified as held-to-maturity.
Investments acquired principally for the purpose of generating a profit from short term
fluctuations in price, are classified as investments held-for-trading. All other investments,
except loans and receivables derived from the Group, are classified as available-for-sale.
Investments available-for-sale are classified as current assets if the Group has the intention of
holding the investment for less than 12 months from the balance sheet date. Each investment
sale and purchase is recognized on settlement date.
Investments are first recorded at cost, and that is fair value of compensation given for them,
including transaction costs.
Investments available-for-sale and investment held-for-trading, after the initial recognition are
recorded at their fair value with no reduction for transaction cost, based on their market price at
the balance sheet date.
Gains or losses arising from fair value adjustment of investments available-for-sale, are
recognized directly in the reserves which are recorded for this purpose, until the investment is
sold or otherwise disposed, or till it is considered impaired. At the time of sale the cumulative
gain or loss previously recognised in capital (reserves) is recognised in net profit or loss for the
corresponding period.
Financial assets and financial liabilities are recognized in the Group`s balance sheet when the
group becomes party to the contract of financial instrument. Although, in the case of normal
sale or purchase (sale or purchase of financial assets under the contract which terms require
delivery of the assets within the period established by legislation or agreement on the
organised market), the date of settlement is essential for initial recognition or non-recognition.
Financial assets are derecognized when the money is collected or the rights to receive the
money from assets expired. Financial liabilities are derecognized when the contracted liabilities
are cancelled or the term for recognition expired.
h) Inventories
Inventories are measured at the lower of cost or net realizable value. Stocks of materials, spare
parts and small inventory are stated at purchase costs.
19
Cost of material and spare parts are based on first- in, first- out basis. Small inventory is written
off entirely following the start of use.
The purchase cost includes the costs of purchase of inventory and the costs incurred in
bringing the inventories to their present location and condition.
i) Receivables
Receivables represent the right to collect determined amounts from customers or other debtors
with regard to the Group's operations. Receivables from the customers and other receivables
are stated at fair value of given compensation and are recorded at depreciation cost, after
correction for impairment value. Impairment correction of bad and disputed receivables is done
individually for each receivable when the payment of partial or total due amount of receivables
based on management estimates is uncertain.
j) Impairment of assets
The carrying amounts of the Group’s assets, other than inventories and deferred tax assets,
are reviewed at each reporting balance sheet date to determine whether there is any indication
of impairment. If any such indications exists, the asset`s recoverable amount is estimated.
Assets that are subject to deprecation are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognized in the profit and loss account whenever the carrying amount
of an asset or its cash-generating unit exceeds its recoverable amount. Such impairment
losses are shown in the income statement.
For goodwill, intangible assets that have an indefinite useful life and intangible assets that are
not yet available for use, the recoverable amount is estimated at each balance sheet date.
Impairment losses recognised in respect to cash generating units, are allocated first to reduce
the carrying amount of any goodwill allocated to the cash-generating unit (or group of units),
and then proportionally to reduce the carrying amount of other assets in the units (or group of
units).
When a decline in the fair value of an available-for-sale financial assets has been recognized
directly in equity, and there is objective evidence that the assets is impaired, the difference
between the acquisition cost (net of equity repayments and amortization) and current fair value,
less impairment losses previously recognized in income statement, is transferred from equity
into income statement.
The recoverable amount of the Group investment in held-to-maturity securities and receivables
carried at depreciation cost is calculated as the present value of estimated future cash flows,
discounted at the original effective interest rate (that is, the effective interest rate computed at
initial recognition of these financial assets). Receivables with a short duration are not
discounted.
The recoverable amount of other assets is the greater of their fair value less costs to sell and
value in use. In assessing value in use, the estimated cash flows are discounting to their
20
present value using a pre-tax discount rate that reflects current market assessment of the time
value of money and the risks specific to the asset. For an asset that does not generate
independent cash inflows, the recoverable amount is determined for the cash generating unit to
which the asset belongs.
An impairment loss related to held-to-maturity security or receivables carried at cost or
amortised cost is reversed if the subsequent increase in recoverable amount can be related
objectively to an event occurring after the impairment loss was recognised.
An impairment loss in respect of an investment in an equity instrument classified as availablefor-sale is not reversed directly in income statement. Reversal of the impairment loss of assets
is directly approved to the equity.
If the fair value of a debt instrument classified as available-for–sale increases and the increase
can be related objectively to an event occurring after the impairment loss was recognised in the
income statement, then the impairment loss is reversed, and the reversed amount is
recognised in the income statement.
An impairment loss in respect of goodwill is not reversed.
In respect to other assets, an impairment loss is reversed when there is an indication that the
impairment losses recognised in prior period (assessed at each balance sheet date) have
decreased or may no longer exist. An impairment loss is reversed if there has been a change in
the estimates used to determine the recoverable amount.
An impairment loss is reversed only to extent that the asset`s carrying amount does not exceed
the carrying amount that would have been determined, net of deprecation or amortisation, if no
impairment loss had been recognised.
k) Cash and cash equivalents
Cash and cash equivalents, for the purpose of the balance sheet and the statement of cash
flows, consist of cash on hand and balances with banks, and highly liquid investments that are
easily converted to known cash amounts with original maturities of three months or less, and
which are subject to insignificant risk of changes in value.
l) Share capital
Share capital consists of ordinary shares. Direct dependent costs associated with issuance of
ordinary shares are recognized as a reduction of capital.
The amount paid for the purchase of share capital, including direct dependent costs, is
recognized as a reduction in capital and reserves. Purchased own shares are classified as
treasury shares and are a deductible item of the total capital and reserves.
m) Interest bearing liabilities
Interest bearing liabilities are measured initially at fair value of the proceeds received, less
attributable transaction costs. In subsequent periods, they are stated at amortised cost using
the effective interest method. All differences between proceeds (net of transaction costs) and
21
the redemption value are recognised in the income statement over the period of the borrowings
using the effective interest rate method.
n) Provisions
A provision is recognized when the Group has a present obligation (legal or constructive) as a
result of a past event and it is probable that an outflow of resources which constitute the
economic benefits will be required to settle the obligation and a reliable estimate of the amount
can be made.
The amounts of provisions are determined by discounting the expected future cash flows at a
pre-tax discount rate that reflects current market assessments of the time value of money and,
where applicable, the risk specific to the liability.
o) Trade and other payables
Trade and other payables are initially measured at fair value and then subsequently at
amortised cost.
p) Employee benefits
Contributions to the mandatory pension fund are included as cost in the income statement at
the period in which they are incurred.
A liability for employees benefits is recognised in provisions based on the Group`s formal plan
and when past practice has created a valid expectation by the Management Board or key
employees that they will receive a bonus and the amount if bonus can be determined before
the time of issuing the financial statements. Liabilities for bonus are expected to be settled
within 12 months of the balance sheet date and are measured at the amounts expected to be
paid when they are settled.
Short-term employee liabilities are not discounted and are recognised as an expense when the
service is provided.
Provision is recognized in an amount which is expected to be paid as a current cash bonus or
profit distribution plan if the Group has a present legal or constructive obligation to pay that
amount as a result of performed service in the past by the employee and if the obligation can
be reliably measured.
q) Revenue recognition
Sales, which are reported net of returns, rebates and discounts, as well as net of taxes directly
connected with the sale of products and services rendered, represent amounts invoiced to third
parties. Revenue is recognized at the time when services are rendered, and the company
dispatches goods, or performs service as this is the point at which significant risks and rewards
of ownership of the goods are transferred to the customer.
Revenue from services is recognised according to the stage of performed service, namely
when there is no significant uncertainty regarding the provision of service or associated costs.
22
Revenues from freight are realized in two basic forms: time charter and voyage charter.
Revenues from time charter are covered by the method of the contract completion as there is
no uncertainty concerning the compensation for done service since T/C rent is paid in advance
for the agreed period of 15 days or for a month. The same method is applied to voyage charter.
r) Leases
Leases of property, plant, equipment and intangible assets where the Group accepts all the
benefits and risks of ownership are classified as financial leasing. Financial leasing is
capitalised at the estimated present value of the related lease payments. Each lease payment
is allocated to the liability and financial expenses in order to obtain a constant rate on the
remaining financial situation. The corresponding liability for the rent, reduced for the financial
expenses are recorded in other non-current liabilities. Interest component of the financial
expenses is charged to the income statement over the lease period. Property, plant, equipment
and intangible assets acquired according to the contract of financial leasing are depreciated
over the useful life of assets.
Leases of assets where lessor retains the benefits and risks of ownership are classified as
operating leasing. Operating lease payments are recognized as an expense on a straight-line
basis over the lease term. If the operating lease terminates before the expiration of the lease
term, all payments to the lessor in the form of penalty, are recognized as an expense in the
period in which the termination occurred.
s) Net financial (expenses) / revenues
Net financial (expenses) / revenue comprise of interest payable on borrowings and loans,
interest on invested funds, dividend income, foreign exchange gains and losses, gains and
losses of financial property fair value changed stated in the income statement at fair value.
Interest income is recognised in the income statement as it accrues, taking into account the
effective yield on the asset. Dividend income is recognised in the income statement on the date
that the Group`s right to receive dividend payments is established.
t) Taxes
Corporate income taxes are computed under the laws and regulations of the country in which
the respective Group company is registered.
Corporate tax for the year comprises current tax and deferred tax. Income tax is recognised in
the income statement except to the extent that it relates to items recognised directly in equity,
in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates
enacted at the balance sheet date and all adjustments to tax payable in respect of previous
periods. Deferred tax is calculated using the balance sheet liability method, providing for
temporary differences between the carrying amounts of the assets and liabilities for financial
reporting purposes and the amount used for taxation purposes. The amount of deferred tax is
based on the expected realisation or settlement of the carrying value of assets and liabilities,
using tax rates enacted or substantially enacted at the balance sheet date.
23
A deferred tax assets is recognised only to the extent that it is probable that future taxable
profits will be available against which the assets can be utilised. Deferred tax assets are
reduced to the extent that it is no longer probable that the related tax benefit will be realised.
u) Dividends
Dividends are recognised in the statement of changes in equity and disclosed as liability in the
period in which were approved by the Company`s shareholders.
v) Government grants
Government grants related to the assets – purchase of vessels is presented in the balance
sheet as a deductible item in calculating the carrying value of the assets. Government grant is
recognized as income over the useful life of the assets which is depreciated, by reduction of
depreciation costs.
Government grants related to the assets – purchase of vessel received after delivery of vessels
are presented in the balance sheet as deferred income. Government grant is recognized as
income in periods and ratios in which it is depreciated.
z) Comparatives
Comparative figures have been adjusted to conform to presentation in the current year, where
necessary.
24
NOTE 3: SALES REVENUE
2011
0
898.378.326
350.701.895
547.676.431
7.342.654
905.720.980
Freight on domestic market
Freight on international market
- from that : time charter
voyage charter
Sales revenue - related companies
TOTAL
HRK
2010
0
1.009.714.680
438.846.222
570.868.458
7.883.523
1.017.598.203
NOTE 4: OTHER REVENUES
Revenue from rent
Written-off receivables collected
Revenue from revaluation reserve
release
Revenue from insurance
Gain from sale of property, plant and
equipment
Revenue from government grants
Other revenue
TOTAL
2011
77.187
18.163
43.079.160
HRK
2010
70.172
4.248
41.216.167
3.298.438
42.048.374
2.553.509
61.842.035
3.699.574
7.945.628
100.166.524
3.539.583
5.156.669
114.382.383
Gain from sale of property, plant and equipment is mostly related to profit from sale of vessel
“Sali” after deducting its net carrying value and sale related expenses (HRK 42.042.374).
NOTE 5: OPERATING COSTS AND
COSTS OF GOODS SOLD
2011
62.068.686
255.413.105
961.713
69.206
318.512.710
Consumption of raw materials
Energy used
Costs of goods sold
Small inventory cost
TOTAL
25
HRK
2010
67.656.480
189.148.505
1.099.027
79.505
257.983.517
NOTE 6: PERSONNEL COSTS
Net salaries of employees in full
employment
Wages of seamen on contract
Taxes and contributions paid from
salaries
Contributions on salaries
Severance compensations
Reimbursement to employees (travel
expenses, daily allowance)
TOTAL
2011
32.352.168
HRK
2010
33.198.262
148.597.269
18.466.101
161.993.795
19.546.837
8.246.591
366.442
29.627.560
9.183.710
969.966
34.058.698
237.656.131
258.951.268
NOTE 7: DEPRECIATION
Depreciation of intangible assets:
- at regular rates
Depreciation of property, plant and
equipment:
- at regular rates
- revaluation reserve release
TOTAL
2011
70.706
70.706
HRK
2010
80.199
80.199
217.280.484
174.201.324
43.079.160
217.351.190
237.013.645
195.797.478
41.216.167
237.093.844
NOTE 8: OTHER COSTS
2011
11.022.694
41.033.807
957.955
111.395.625
10.359.023
1.135.334
28.288.356
19.140.277
16.176.679
2.799.932
22.021
41.239.887
283.571.590
Transport and postal services
Maintenance
Rent
Port expenses
Agency fees
Costs of loading and unloading cargo
Commission to brokers and agents
Insurance premiums
Banking services
Donations
Loss on sales of long term assets
Other
TOTAL
26
HRK
2010
11.564.118
47.017.090
925.126
126.525.162
11.695.737
1.637.562
33.601.649
22.969.307
5.422.610
8.533.832
34.136
40.813.210
310.739.539
NOTE 9: NET FINANCIAL
(EXPENSES)/ REVENUES
HRK
2011
2010
4.600.147
0
48.521
1.970.850
4.499.649
0
12.893
2.265.997
211.205
524.394
0
7.355.117
37.093.643
553.582
4.619
44.430.383
(46.157.494)
0
0
0
(30.965.745)
0
0
0
(46.157.494)
(30.965.745)
(38.802.377)
13.464.638
Financial revenues
Interest
Interest – related companies (Note 22)
Dividend revenue
Revenue from share in profits – related
companies (Note 14)
Net foreign exchange gains
Other financial revenues
Profit from sale of securities
Total financial revenues
Financial expenses
Interest
Net foreign exchange losses
Other financial expenses
Losses from disposal of sharesrelated companies
Total financial expenses
NET FINANCIAL (EXPENSES)/REVENUES
NOTE 10: INCOME TAX
By article 429. subsection 1. of Maritime Code (“Official Gazette of the Republic of Croatia” no.
181/04., 76/07., 146/08. and 61/11.) it is prescribed that the companies that are registered and
carry out shipping activities do not pay income tax realized by the ships engaged in
international shipping.
According to the provisions of the article 429. subsections 2. and 3. of the Maritime Code the
companies from subsection 1. of the same article do not pay income tax realised from sale of
ships, from sale of shares in shipping companies which operate in international shipping, as
well as on any income from dividends on shares they have in shipping companies which
operate in international shipping. If the companies from subsection 1. manage these interests
from a single seat of management, under unique name and leadership, they are obligated to
maintain accounts and prepare financial statements for the business at home and abroad.
Following the above stated, according to the tax return for 2011 the Company had no obligation
to pay income tax in Croatia.
27
Income tax refers to the income tax of the company “Alan Shipping Company Limited” in United
Kingdom in the amount of HRK 233.380 (31.12.2010.: HRK 225.816) and the company
“Stambeno gospodarstvo Tanker” d.o.o. Zadar in the amount of HRK 92.450 (31.12.2010.:
HRK 36.157). The company “Aenona” d.d. Zadar according to the tax return for 2011 had no
obligation to pay income tax (31.12.2010.: HRK 2.794).
Tax losses of the subsidiaries expiry 5 years after the year in which they are incurred.
Availability of tax losses in future periods for the Group is as follows:
Tax losses from 2005 - expiry 31.12.2010
Tax losses which cannot be carried forward
TOTAL
2011
1.172.345
1.413.459
2.544.761
2.700.040
3.110.909
3.749.866
(1.172.345)
13.519.035
2010
1.132.137
1.172.345
1.413.459
2.544.761
2.700.040
3.110.909
(1.132.137)
10.941.514
NOTE 11: EARNINGS PER SHARE
Profit /(loss) for the year
Weighted average of total numbers of shares at
year end
Profit /(loss) per share (HRK)
2011
(90.490.676)
625.580
2010
80.319.476
619.834
(144,65)
129,58
The Group states basic earnings per share for ordinary shares. Basic earnings per share is
calculated by dividing profit (loss) for the year applicable to ordinary shares with average
number of ordinary shares during the period.
Basic and fully diluted earnings per share are equal since the Group does not have diluted
potential ordinary shares.
28
NOTE 12: INTANGIBLE ASSETS
HRK
Intangible
assets
Goodwill
Intangible
assets under
construction
Total
Cost
At 1 January 2010
Increases
Transfer of assets under
construction
Reductions
Effects of FX differences
At 31 December 2010
6.168.114
3.260.409
6.168.114
3.297.139
12.816.435
22.281.688
At 1 January 2011
Increases
construction
Reductions
At 31 December 2011
6.168.114
3.297.139
12.816.435
2.038.818
(352.826)
22.281.688
2.038.818
0
43.125
11.116.982
1.742.578
(43.125)
(6.395)
352.826
(6.395)
(5.581)
6.168.114
20.545.505
1.742.578
0
(5.581)
3.644.384
14.502.427
24.314.925
At 1 January 2010
Charge for the year
Impairment losses
Reductions
At 31 December 2010
269.519
80.199
0
269.519
80.199
344.389
0
344.389
At 1 January 2011
Charge for the year
Impairment losses
Reductions
At 31 December 2011
344.389
70.706
0
344.389
70.706
Accumulated depreciation and impairment losses
(5.329)
(5.329)
(4.651)
(4.651)
410.444
0
410.444
Carrying value
At 1 January 2010
At 31 December 2010
6.168.114
6.168.114
2.990.890
2.952.750
11.116.982
12.816.435
20.275.986
21.937.299
At 1 January 2011
At 31 December 2011
6.168.114
6.168.114
2.952.750
3.233.940
12.816.435
14.502.427
21.937.299
23.904.481
Non tangible assets under constructions refer to investment in project “Medical Tourism Centre
Nin”.
29
NOTE 13: PROPERTY, PLANT AND
EQUIPMENT
HRK
Land and
buildings
Plant and
equipment
Investment
in property
Assets under
construction
Total
Cost
At 1 January 2010
Increases
construction
Reductions
At 31 December 2010
At 1 January 2011
Increases
constructions
Reductions
At 31 December 2011
37.549.752
3.195.502.584
10.092.550
628.525.998
603.566.593
3.846.711.479
146.832.983
(628.525.998)
146.832.983
0
379.168
37.928.920
(106.455.637)
298.397.581
4.015.970.526
667.989
10.760.539
56.736.098
178.609.676
(106.455.637)
356.180.836
4.243.269.661
37.928.920
4.015.970.526
10.760.539
178.609.676
419.642.918
(419.587.173)
4.243.269.661
419.642.918
0
472.187
11.232.726
8.041.596
186.707.017
(238.901.042)
189.214.348
4.613.225.885
419.587.173
268.025
38.196.945
(238.901.042)
180.432.540
4.377.089.197
Accumulated depreciation and impairment losses
At 1 January 2010
Charge for the year
Impairment losses
Reductions
At 31 December 2010
8.599.948
789.158
1.345.385.216
236.224.487
1.353.985.164
237.013.645
98.078
9.487.184
(99.378.817)
124.653.788
1.606.884.674
(99.378.817)
124.751.866
1.616.371.858
At 1 January 2011
Charge for the year
Impairment losses
Reductions
At 31 December 2011
9.487.184
793.313
1.606.884.674
216.487.171
1.616.371.858
217.280.484
73.484
10.353.981
(220.488.878)
71.675.641
1.674.558.608
(220.488.878)
71.749.125
1.684.912.589
At 1 January 2010
At 31 December 2010
28.949.804
28.441.736
1.850.117.368
2.409.085.852
10.092.550
10.760.539
603.566.593
178.609.676
2.492.726.315
2.626.897.803
At 1 January 2011
At 31 December 2011
28.441.736
27.842.964
2.409.085.852
2.702.530.589
10.760.539
11.232.726
178.609.676
186.707.017
2.626.897.803
2.928.313.296
Carrying value
No borrowing costs have been capitalized during 2010 and 2011.
Assets under construction include costs of building ships – product tankers no. S-5054, S-5065
in the amount of HRK 185.947.083 and commercial building constructions costs – Central
warehouse at Gaženica in the amount of HRK 759.934.
30
In 2011 the Group took delivery of following vessels:
• Product/chemical tanker dwt 52.554 t – m/t “Velebit” (newbuilding no. 711);
• Product/chemical tanker dwt 51.935 t – m/t “Vinjerac” (newbuilding no. 712).
At 31 December 2011 the net carrying amount of leased assets is HRK 285.221 (2010.: HRK
364.300).
Total net carrying amount of the assets over which there is a mortgage as security for the loans
is HRK 2.671.874.134 (2010.: HRK 2.386.070.492).
NOTE 14: INVESTMENTS IN
ASSOCIATES
Net carrying amount of investment in associates includes:
1.
31 December 2011.
Amount in Ownership
HRK
part %
31 December 2010.
Amount in Ownership
HRK
part %
Shipyard Viktor Lenac
d.d., Rijeka, Croatia
85.370.384
55.682.384
TOTAL
85.370.384
48,41%
37,34%
55.682.384
The company participated in increase of share capital of company “Shipyard Viktor Lenac” d.d.,
Rijeka by payment in cash amounting to HRK 29.688.000, whereby increasing its ownership
share to 48,41%.
Changes of investments in associate of the Group during the year were as follows:
HRK
Net carrying value
Investment cost
Share in profit of associate in 2008
Carrying value of investment
2011
85.370.384
20.206.889
2.337.222
2.265.997
1.970.850
112.151.342
2010
55.682.383
20.206.889
2.337.222
2.265.997
80.492.491
Abbreviated version of financial information of associate:
HRK
2011
335.581.422
110.771.986
352.133.818
4.071.164
Total assets
Total liabilities
Revenues
Profit
31
2010
276.605.756
80.777.727
325.291.445
6.068.552
NOTE 15: FINANCIAL ASSETS
Financial assets – non current
Available-for-sale investments
Held-to-maturity investments
Total investments
Secured housing loans to employees
Loans to buildings - unsecured
Loans to students
Given loans – related companies (Note
2011
1.991.895
0
1.991.895
2.544.090
204.037
2.136.749
0
HRK
2010
4.012.393
0
4.012.393
2.677.464
317.352
1.997.316
0
4.884.876
129.166.237
4.645.252
140.688.260
4.992.132
48.822.070
4.645.252
62.471.847
22)
Total given loans
Deposits and pledges
Other non-current investments
Total financial assets – non current
Investments available-for-sale are evaluated at fair value, except those which are not traded in
active market, and which are recognised at amortized cost less impairment.
Loans to employees were granted for the purchase of housing with maturity up to 30 years and
are carried at amortized costs (net of impairment allowance) using market rates for discounting.
Deposits and pledges are mostly related to cash deposits held as collateral for loans taken.
Financial assets - current
Available-for-sale investments
Held-to-maturity investments
Total investments
Given loans
Given loans – related companies
(Note
2011
110.342
0
110.342
2.684.958
0
HRK
2010
108.213
0
108.213
2.928.762
0
2.684.958
0
0
2.795.300
2.928.762
0
0
3.036.975
22)
Total given loans
Deposits and pledges
Other current investments
Total financial assets – current
32
NOTE 16: INVENTORIES
2011
60.582.363
599.282
169.525
636.916
2.965.064
(636.916)
64.316.234
Bunker and lubes
Material
Spare parts
Small inventory
Food
Small inventory impairment
TOTAL
HRK
2010
43.894.218
612.849
169.525
600.915
2.832.450
(600.915)
47.509.042
NOTE 17: TRADE AND OTHER
RECEIVABLES
Trade receivables – gross
Trade receivables – impairment
Trade receivables – net
Trade receivables – related companies (Note 22)
Other receivables – related companies (Note 22)
Total receivables – related companies
Receivables from employees
Receivables from the state
Receivables for government grants
Prepaid expenses
Accrued income
Other receivables
TOTAL
2011
48.945.640
(39.406)
48.906.234
0
8
8
406.781
8.401.248
29.869.485
3.911.699
20.599.049
3.227.488
115.321.992
HRK
2010
27.053.895
(39.406)
27.014.489
0
8
8
333.339
22.498.389
36.992.145
426.459
4.222.465
3.371.866
94.859.160
Included in the trade receivables are debtors with the amount of HRK 3.839.980 (2010.: HRK
12.394.061) which are due on the balance sheet date and for which the reservation for
impairment losses was not created. There were no significant changes in the quality of these
receivables and the same are still considered payable. The Group does not hold any collateral
for payment these receivables.
33
Age structure of trade receivables for which no reservations were created:
1 -90 days
91 -180 days
181 - 365 days
More than 365 days
TOTAL
2011
3.182.238
289.558
0
368.184
3.839.980
HRK
2010
12.025.700
349.667
0
18.694
12.394.061
2011
0
0
0
39.406
39.406
HRK
2010
0
0
0
39.406
39.406
2011
1.216.846
0
47.348.129
341.259
48.906.234
HRK
2010
1.171.509
0
25.414.590
428.390
27.014.489
Age structure of the impaired trade receivables:
1 -90 days
91 -180 days
181 - 365 days
Over 365 days
TOTAL
Currency structure - trade receivables:
HRK
EUR
USD
Other currencies
TOTAL
NOTE 18: CASH AND CASH
EQUIVALENTS
2011
287.598.204
1.056.745
117.880.023
406.534.972
Cash with banks
Cash in hand
Deposits
TOTAL
34
HRK
2010
322.586.702
978.708
254.788.985
578.354.395
NOTE 19: CAPITAL AND RESERVES
(i)
At 31 December 2011 the authorized, issued and paid-up share capital comprised
626.385 ordinary shares (2010.: 626.385). All shares have a nominal value of HRK
600,00.
The holders of ordinary shares are entitled to receive dividends, as declared from time
to time and are entitled to one vote per share at meetings of the Company.
The immediate parent company of Tankerska plovidba d.d. is Silba Participations B.V.,
a company founded in the Netherlands. The ultimate parent company is a TrustBetriebsstiftung Tankerska Plovidba d.d. Privatstiftung with registered office in Austria.
Beneficiaries of this trust are the employees of Tankerska plovidba d.d.
(ii)
At 31 December 2011 the Company held 1.251 treasury shares (31. December 2010:
190). Treasury shares represent 0,20% of share capital (2010.: 0,03%).
In 2011 the Company purchased 7.093 own shares, and disposed of 6.032 own
shares. Reserves for own shares were created from Company’s profits. The Company
distributed of 6.032 own shares to members of the Board and employees according to
Resolution of Company’s shareholders assembly on 29th of August 2008 approving
profit participation to members of the Board and employees in Company’s shares.
(iii)
At 31 December 2011 the amount of legal reserves within legal and other reserves was
HRK 18.792.081 (2010.: HRK 18.791.774). Legal reserve is created in accordance with
the Croatian laws which require that 5% of the year profit is transferred in this reserve
until it reaches 5% of the issued share capital. Legal reserve in the amount of 5% of
the issued share capital can be used to cover the losses of the current and previous
years.
Legal and other reserves include HRK 29.000.000 (2010.: HRK 29.000.000) of
reserves for treasury shares that cannot be used for distribution to the shareholders.
(iv)
At 31 December 2011 revaluation reserve in the amount of HRK 329.884.063 (31.
December 2010: HRK 356.834.128) was created based on revaluation of the ships
carried out in 2003 and 2004. Release of revaluation reserve in the income statement
in the amount of HRK 43.079.160 (2010.: HRK 41.216.167) represents the difference
between depreciation based on revaluated carrying amount of assets and depreciation
based on original costs of assets.
(v)
The translation reserve comprises all foreign exchange differences arising from the
conversion of the financial statements of foreign business entities.
(vi)
At 31 December 2011 retained earnings of the Company were HRK 1.084.066.640
(2010.: HRK 1.162.055.076) and retained earnings of the Group were HRK
1.092.736.120 (2010.: HRK 1.171.672.385).
35
NOTE 20: INTEREST BEARING
LIABILITIES
2011
HRK
2010
0
42.235
1.645.440.910
0
1.645.483.145
0
144.191
1.183.260.747
48.922
1.183.453.860
Current interest bearing liabilities
2011
Unsecured loans
1.150.000
Current portion of non-current interest bearing liabilities
Financial lease
108.679
Secured bank loans
214.831.404
Unsecured bank loans
51.107
TOTAL
216.141.190
Total interest bearing liabilities
1.861.624.335
2010
1.150.324
Non-current
interest
liabilities
Unsecured loans
Financial lease
Secured bank loans
TOTAL
bearing
115.680
378.656.265
195.689
380.117.958
1.563.571.818
Terms and conditions for repayment of interest bearing liabilities at 31 December 2011 are as
follows:
HRK
Total
Secured bank loans
Unsecured loans
Financial lease
At 31 December 2011
1.860.272.314
51.107
1.150.000
150.914
1.861.624.335
1 year or
less
214.831.404
51.107
1.150.000
108.679
216.141.190
2 -5 years
916.575.865
0
0
42.235
916.618.100
More than 5
years
728.865.045
0
0
0
728.865.045
Secured bank loans have a variable interest rate based on LIBOR and EURIBOR plus a margin
that ranges from 1,0625% to 4,1%.
36
Terms and conditions for repayment of interest bearing liabilities at 31 December 2010 were as
follows:
HRK
Total
Secured bank loans
Unsecured loans
Financial lease
At 31 December 2010
1.561.917.012
244.611
1.150.324
259.871
1.563.571.818
1 year or
less
378.656.265
195.689
1.150.324
115.680
380.117.958
2 -5 years
783.078.018
48.922
0
144.191
783.271.131
More than 5
years
400.182.729
0
0
0
400.182.729
Secured bank loans had a variable interest rate based on LIBOR and EURIBOR plus a margin
that ranged from 1% to 3%.
During 2011, Company received new long term loan amounting to HRK 247.929.444 , with
interest rate of LIBOR+1,75%, to be repaid in 40 quarterly instalments for financing of
newbuilding no. 711 (m/t “Velebit”) amounting to HRK 123.964.722 and newbuilding no. 712
(m/t “Vinjerac”) amounting to HRK 123.964.722, and a long term loan amounting to HRK
81.479.160, with interest rate of LIBOR+4,10%, to be repaid in 12 quarterly instalments for
financing of newbuilding no. 711 (m/t “Velebit”).
In the same period Company received new long term loan amounting to HRK 866.442.200 with
interest rate of LIBOR+2,90%, to be repaid in 24 quarterly instalments for refinancing of
existing loan for vessel “Hrvatska” amounting to HRK 130.803.152, for refinancing of existing
loan for vessel “Alan Veliki” amounting to HRK 119.308.770, for refinancing of existing loan for
vessel “Donat” amounting to HRK 145.498.500, for refinancing of existing loan for vessel “Dugi
Otok” amounting to HRK 180.131.230, for refinancing of existing loan for vessel “Olib”
amounting to HRK 190.294.448 and for financing working capital amounting to HRK
100.406.100.
Also in order to finance working capital, Company received new long term loan MODEL A+
amounting to HRK 25.000.000, with interest rate Croatian Ministry of Finance 91 day treasury
bills + 3,3% and 2,8%, to be repaid in 12 quarterly instalments, and new long term loan MODEL
A+ amounting to HRK 25.000.000, with interest rate Croatian Ministry of Finance 91 day
treasury bills + 3,3% and 2,8%, to be repaid, with bullet instalment 3 years from the loan
drawdown.
Company made repayment of existing bank loans according to previously published terms of
repayment.
37
NOTE 21: TRADE AND OTHER
PAYABLES
Trade payables
Trade payables – related companies
2011
68.927.537
1.381.735
HRK
2010
45.126.792
0
16.692.266
2.274.979
15.552.583
10.691.340
49.395.304
1.231.595
675.909
166.823.248
17.789.254
2.970.406
10.505.364
6.451.980
50.798.747
6.637.967
176.777
140.457.287
2011
13.405.135
2.613.080
51.049.582
3.241.475
70.309.272
HRK
2010
6.217.996
3.786.704
24.037.004
11.085.088
45.126.792
(Note 22)
Liabilities toward employees
Contributions and taxes
Advances received
Accruals
Deferred income
Liabilities for share in profits
Other liabilities
TOTAL
Trade payables – currency structure:
HRK
EUR
USD
Other currencies
TOTAL
38
NOTE 22: TRANSACTIONS WITH
THE RELATED PARTIES
HRK
Subsidiaries and key shareholders
Sales to related companies
Sales to subsidiaries
Sales to associates
Sales to key shareholders
Purchase from related companies
Purchases from subsidiaries
Purchases from associated
Purchases from key shareholders
Receivables from related companies
Receivables from subsidiaries
Receivables from associated
Receivables from key shareholders
Liabilities to related companies
Liabilities to subsidiaries
Liabilities to associated
Liabilities to key shareholders
Given loans
Shipyard Viktor Lenac d.d.
Total given loans to related companies
2011
2010
0
0
0
0
0
0
0
0
0
17.866.392
0
17.866.392
0
13.613.428
0
13.613.428
0
8
0
8
0
8
0
8
0
1.381.735
0
1.381.735
0
0
0
0
0
0
0
0
Transactions between related companies are carried out by normal market rates.
Key management
Key management of the Company includes executive management which consists of the
Members of the Board and of the directors of main organisational units.
Total amount of compensation to key management for 2011 amounts to HRK 15.289.632
(2010.: HRK 18.012.890). At the end of the year the members of the Executive Management
and the Supervisory Board owned 10928 ordinary shares (2010.: 9187 shares). During the year
the Supervisory Board had total compensation of HRK 495.072 (2010.: HRK 464.635). The
Company did not have any loans to the members of the Supervisory Board.
39
NOTE 23: FINANCIAL
INSTRUMENTS
The Group`s activities expose it to a variety of financial risks, including the effects of: market
risk (including foreign exchange risk, interest rates and price risk), credit risk and liquidity risk.
Exposure to currency, interest rate and credit risk, arises in the ordinary course of Group`s
operations.
Risk management policies associated with managing financial resources, may be briefly
summarized as follows:
Foreign exchange risk
Foreign exchange risk is the risk of changes of value financial instruments due to change in
exchange rate changes. The Company operates internationally and is exposed to changes of
US currency as significant amount of receivables and foreign revenues are stated in this
currency. Additionally, the Company has a number of investments in foreign subsidiaries,
whose net assets are exposed to currency translation risks. Current Group policies do not
include active hedging.
A fluctuation of 10% in the exchange rate for USD on outstanding USD denominated monetary
items would not have a material impact on the Group`s profit.
Interest rate risk
Interest rate risk is the risk of change in value of financial instruments due to changes in market
interest rates. The risk of interest rate in cash flow is a risk that the interest expenditure on
financial instruments will be variable during the period. Since the Group invests its liquid assets
in deposits with short maturities, this risk is limited to long term deposits with financial
institutions (note 15).
Credit risk
Credit risk is the risk of failure by one party to meet commitments to the financial instruments,
what could cause the financial loss to the other party. Maximum exposure to credit risk is
expressed in the highest value of each of the financial asset in balance sheet. Basic financial
assets of the Group consist of cash and of account balance with banks, trade receivables and
other receivables, and of investments. Credit risk in liquid funds is limited as the counterparty is
often the bank that most international agencies assessed with high credit ratings. Credit risk of
the Group is mostly connected with trade receivables. Amounts of these receivables are stated
in the balance sheet net of impairment for bad and disputed receivables. The Group has no
significant concentrations of credit risk, as their exposure is dissipated on a large number of
other parties and clients.
Liquidity risk
Liquidity risk, which is considered the risk of financing, is the risk of difficulties which the Group
may encounter in collecting funds to meet commitments associated with financial instruments.
40
The Group has significant interest bearing non-current liabilities for loans with variable interest
that expose the Group to the risk of cash flows.
Fair values
Management`s estimates of fair values of financial assets and liabilities, together with carrying
amounts stated in the balance sheet are as follows:
HRK
Note
15
14
17
15
15
20
24
21
Financial assets available-for-sale
Investments in associates
Trade and other receivables
Secured loans to employees
Other loans and advances
Interest bearing liabilities
Other non-current liabilities
Trade and other payables
2011
Carrying value
Note
2.102.237
2.102.237
112.151.342
112.151.342
115.321.992
115.321.992
2.544.090
2.544.090
9.670.996
9.670.996
1.861.624.335 1.861.624.335
27.109.846
27.109.846
166.823.248
166.823.248
Fair value of financial assets and liabilities is based on quoted market prices at balance sheet
date, if it is available. Where the market price is not available, the Group estimates fair value
based on publicly available information from external sources or where applicable on technique
of discounted cash flows.
For receivables/payables with a remaining life of less than one year, the notional amount is
deemed to reflect the fair value. All other receivables/payables are discounted to determine the
fair value.
Capital management
Primary goal of the Group`s capital management is to provide support to business and to
maximize value to the shareholders. The Group manages capital and adjusts in light of
changed economic conditions. In order to maintain and to adjust the capital structure, the
Group can adjust the dividend payments to the shareholders, return the capital to the
shareholders, or issue new shares. There was no change in the goals, policies and processes
during the year completed at 31 December 2011 and at 31 December 2010.
Gearing ratio on the day of reporting was as follows
Total interest bearing liabilities (non-current and
current loans)
Deduction for cash and cash equivalents
Net liabilities
Capital and reserves
Gearing ratio
41
2011
1.861.624.335
2010
1.563.571.818
406.534.972
1.455.089.363
1.737.121.196
83,76%
578.354.395
985.217.423
1.783.312.533
55,25%
NOTE 24: COMMITMENTS AND
CONTINGENCIES
Capital commitments
The purchase costs of property, plant, equipment and intangible assets as contracted with
suppliers but not settled at 31 December 2011 are as follows:
2011
419.326.677
419.326.677
Newbuildings
TOTAL
HRK
2010
802.106.701
802.106.701
Operating lease commitments – where a Group is the lessee
The Group has contractual commitments under operating lease arrangements. The future
aggregate minimum lease payments under non-cancellable operating leases are as follows:
2011
343.913
951.531
0
1.295.444
Within 1 year
More than 1 and less than 5 years
5 years or more
TOTAL
HRK
2010
699.461
400.003
0
1.099.464
During 2011 the amount of HRK 957.955 was recognised as an expense in respect of
operating leases (2010.: HRK 925.126).
Operating lease commitments – where a Group is the lessor
The Company leases business premises in Zadar. The future aggregate minimum lease
receipts under non-cancellable operating leases are as follows:
2011
69.535
120.086
150.108
339.729
Within 1 year
More than 1 and less than 5 years
5 years or more
TOTAL
HRK
2010
68.699
119.789
149.736
338.224
During 2011 the amount of HRK 77.187 was recognised as income in respect of operating
leases (2010.: HRK 70.172).
42
Commitments for capital investments
As a result of investments in “Shipyard Viktor Lenac” d.d., at 31 December 2011 the Company
has commitments for capital investments as follows:
2011
15.080.268
15.080.268
“Shipyard Viktor Lenac” d.d.
UKUPNO
HRK
2010
15.080.268
15.080.268
Uljanik and Tankerska, in the process of purchasing “Shipyard Viktor Lenac” d.d. from Croatian
Ministry of Finance, took over the commitment to invest in the further development of shipyard
technology in accordance with a program of restructuring and developing, within the period of
no more than 5 years, as a part of purchase price (HRK 58.279.315 namely HRK
29.139.657,50 each). According to the agreement between Tankerska and Uljanik, it was
agreed that both parties should have equal number of shares after bankruptcy restructuring is
completed. In order to achieve this Tankerska took over to invest funds amounting to HRK
43.199.047 and obtain shares in the amount of HRK 28.118.779 from Uljanik.
The amount of HRK 27.109.846 (2010.: 27.109.846) is stated within non-current commitments
towards “Uljanik” d.d. Pula, while the amount of HRK 15.080.268 is stated in the off-balance
sheet items.
Contingencies
At 31 December 2011 the Group was involved with law suits incidental to its business and
personal injury claims. Management, based on the advice of legal counsel, believes that the
ultimate outcome of these matters will not have a material adverse effect on the Group’s
financial statements.
During 2011 Company has received state financial support for vessels “Dugi Otok”
(newbuilding. no. 460) and “Olib” (newbuilding. no. 461) amounting to HRK 8.400.000 (HRK
4.200.000 each) under the condition that the same are not sold at least five years from the date
of delivery, (five years period for these vessel ends at 16th of September 2013 and 5th of
February 2014), which the Company intends to honour. In the case of failure to comply with this
requirement, the Company has agreed to refund together with interest following amounts: US$
2.519.244,55 (newbuilding. no. 460) and US$ 2.519.244,55 (newbuilding. no. 461).
In the same period, Company has gained the right for state financial support for vessel “Velebit”
(newbuilding no. 711) amounting to US$ 4.058.992,08 and for vessel “Vinjerac” (newbuilding
no. 712) amounting to US$ 4.292.381,05, and has irrevocably transferred these rights to
shipyard BI 3. Maj d.d. Rijeka (formerly 3. Maj Shipyard d.d. Rijeka), by which it settles a part of
delivery price of the vessel. To the date of publishing of these reports, Company has not
received the financial support and does not have information that it has been transferred to the
shipyard directly.
In the case of failure to comply with requirement not to sell the vessels at least five years from
the date of delivery (five years period for these vessel ends at 14th of April 2016 and 25th of
October 2016), which the Company intends to honour, Company has agreed (after it receives
the support) to refund together with interest following amounts: US$ 4.058.992,08 (newbuilding
no. 711) and US$ 4.292.381,05 (newbuilding no. 712).
43
NOTE 25: SIGNIFICANT
ACCOUNTING ESTIMATES AND
JUDGEMENTS
In the process of applying the Group`s accounting policies, the Management has made the
following judgements, apart from those involving estimates, and which have a significant impact
on the amounts reported in financial statements:
Revenue recognition
Revenue is recognized in the moment when the goods are shipped or services performed, and
when a significant part of risk and rewards of ownership of the goods is transferred to the
buyer. Estimate of the expected return of the goods and other discounts is deducted from the
sales revenue and recorded as calculated liabilities or provisions. Such estimates were based
on analysis of existing contractual or legal obligations, historical trends and experience of the
Group.
Income tax
The income tax calculation is made on the basis of Group`s interpretation of the currently
applicable laws and regulations.
Impairment of receivables
Assessment of the irrecoverable amount of sales of goods and services is done on balance
sheet date (and per month) according to the estimated probability of doubtful receivable
settlement. Each client is assessed separately according to status of receivables due for
payment (i.e. the client’s account is blocked, the legal proceedings started), according to a
phase the legal dispute is in and according to the collateral taken (for example bills of
exchange).
Provisions for contingencies
The Group recognises provisions as a result of legal actions initiated against the Group for
which is likely to lead to outflow of funds in order to settle receivables from the Group and if the
amounts can be reliably estimated. During the estimation of provisions, the Group takes in
consideration professional legal advice.
Note 26: SUBSEQUENT EVENTS
AFTER BALANCE SHEET DATE
At 27th of February 2012 Company sold vessel “Frankopan”, and made a profit amounting to
HRK 37.986.457 after deducting net carrying value and sale related expenses.
44

Consolidated annual financial statements for the year 2011

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