zinas par uznem VEF_EN

ZIŅAS PAR UZŅĒMUMU
Title of enterprise
Joint stock company VEF
Legal type of enterprise
Public joint stock company
Registred:
On April 15, 1991 in the Register of Enterprises of the Republic of Latvia,
re-registred on December 7, 2000 with Nbr. 000300132
On April 14, 2004 registered in the Commercial Register, Nbr.
40003001328
LV 40003001328
Taxpayers' Reg. Nbr.
Legal address
Brīvības gatve 214, Rīga, LV-1039, Republic of Latvia
phone: 7270618, fax: 7552201
Equity capital 1:
Ls 1829908 as on December 31, 2006
Core businesses:
Shareholders 2:
Capital investments in other
enterprises:
Chief executive officer:
Members of the Board:
*Production and servicing of specialised electronic devices for payment
registration (taximeters)
*Power supply - distribution of power;
*Letting and renting of real-estate property
As on December 31, 2006:
*VEF KOMUNIKĀCIJU SERVISS SIA- 44.87% or 821 071 shares;
*FUND ADMINISTRATE LLC - 14.34% or 262 326 shares;
*State Social Insurance Agency - 5.33 % or 97 582 shares;
*Other shareholders - 35.46% or 648 929 shares:
No
Chairman of the Board of the Company:
GINTS FEŅUKS (personal code 260568-11802)
TAMĀRA KAMPĀNE (personal code 270952-10924)
AIVARS VĪTOLIŅŠ (personal code 260158-13123)
Members of the Supervisory
Council:
PĒTERIS AVOTIŅŠ (personal code 300670-11300)
ANDRIS DENIŅŠ (personal code 230757-11563)
INTS KALNIŅŠ (personal code 201169-11286)
GUNTIS LIPIŅŠ (personaL kode 190547-10703)
JĀNIS LĀMA ( personal code 120776-11669)
Period of account:
01.01.2006. - 31.12.2006.
Qualified auditor:
Olga Millere (personal code 131241-10723) Certificate Nbr.40.SIA"DOMA AUDĪTS" Licence Nbr.41
1
Paid-up and registred equity capital
Equity capital of the Company is divided into1 829 908 common shares
Nominal value of a common share is 1 LVL (one Latvian lat).
2
3
Doma Audits SIA
Silmacu iela 4, Rfga, LV-I012, Latvija, talr. +371 7360370Jakss +371 7373578, e-pasts: [email protected]
Vien. reg. Nr. 40003497135, PVN reg. Nr. LV40003497135, A/S "SEB Latvijas Unibanka H,kods: UNLALV2X, konts: LV22UNLAOOOI020469024
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INDEPENDENT AUDITOR'S REPORT
To
Joint-Stock Company
"VEF"
shareholders
1. Report on financial statements
We have audited the attached 2006 financial statements of Joint-Stock Company
"VEF", that are presented from pages 1. to 18. The audited financial statements include
balance sheet as of December 31, 2006, report on profits and losses for 2006, statement of
shareholders' equity and cash flow statement, as well as significant accounting principles
summary and other explanatory information as appendices.
Management resvonsibilitv for vrevarinz the financial statements.
Management is responsible for the preparation of these financial statements and for
information that is included in them, true reflection in accordance with the Latvian
Republic Annual Report Law. This responsibility involves such inner control organization,
implementation and upkeep, that ensures the financial statements, that do not contain
essential misstatements due to fraud or mistakes, ensures the financial statements
preparation and true reflection, adequate accounting policy selection and usage, as well as
accounts, that are appropriate to conditions, preparation.
Auditor's responsibilitv
We are responsible for our acknowledgement on these financial statements, based
on our audit. We conducted our audit in accordance with International Standards of
Auditing that are recognized in Latvia. Those standards require us to follow ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement.
The audit includes procedures that are conducted to obtain audit evidence for the
amounts, shown in the financial statements, and for other included in the financial
statements information. Procedures are chosen, based on auditor's professional assessment,
including assessment of the risk of essential misstatements due to fraud or mistakes in the
financial statements. Conducting assessment of this risk, auditor takes into account the
inner control, that is organized to ensure the preparation of the financial statements and
information, that is included in them, true reflection, with the aim to determine audit
procedures appropriate to conditions, but not with the aim to give acknowledgement on
control effectiveness. The audit also includes assessment of the accounting principles in use
Doma Audits SIA
Silmacu iela 4, Rfga, LV-1012, Latvija, talr. +371 7360370,fakss +371 7373578, e-pasts: [email protected]
Vien. reg. Nr. 40003497135, PVNreg. Nr. LV40003497135, A/S "SEE Latvijas Unibanka", kods: UNLALV2X
konts: LV22UNLAOOOI020469024
and assessment of significant assumptions made by the company's management, as well as
overall evaluation of the information, included in the financial statements.
We believe that the audit evidences, obtained by us, are sufficient and appropriate
for giving acknowledgement on our audit.
Acknowledzement
In our opinion, the financial statements referred to above present clear and fair
overview of the financial condition of Joint-Stock Company "VEF" as of December 31,
2006, as well as of the financial results of operations and cash flows in 2006, in accordance
with Latvian Republic Annual Report Law,
2. Report on conformity of report of the management
We have examined the report of the management for the year of 2006 that is on
page 2., and we did not reveal essential unconformities between financial information,
shown in this report of the management, and information, included in the 2006 financial
statements.
Olga Millere
Sworn auditor in charge
Certificate NrAO
Chairman of the board of directors ofLLC "DOMA AUDITS":
Riga, Latvia
April 10, 2007
2
Management Report
To the Annual report of 2006
Business profile
JSC VEF is a public joint stock company that does business by developing its realestate property and renting office spaces, producing taximeters VEF TS1 and providing
after-sale service, as well as providing a power distribution service to businesses
located in the territory of the former state enterprise VEF.
In 2006 the annual net turnover of JSC VEF was 678 724 LVL that is for 237 901 LVL
or 35.5% more than in the previous year of account.
Most important activities in 2006
JSC VEF continues in a planned manner development of its real-estate property and
offering long-term rent of office spaces.
On December 11, 2006 the last, 3rd stage of the reconstruction of the administrative
building at Brīvības gatve 214 was completed; thus, completely finishing
reconstruction and improvement works in this building. All office spaces available in
this building are rented.
Further development of business and plans
Currently, there takes place a RFQ process to select a producer of reconstruction
projects for the buildings located in Riga at Ūnijas iela 4 (nbr.5 and 7) and Bērzaunes
str.7a. Reconstruction works are planned to be started in 2007-2008. To sustain
infrastructure of these objects and planning further improvements in power and
communications systems, there is a project under development that will be carried out
this year in order to build new high-voltage power cables and transformer substations,
and also to lay down optic fiber cables.
Proposals on income distribution or loss coverage
The accounted annual income of 13 842 LVL is planned to be spent to cover losses
carried from the previous years.
Earnings per share (EPS)
EPS on 31.12.2006. – 0.00756 LVL – 0.0108 EUR
EPS on 31.12.2005. – 0.00631 LVL – 0,0100 EUR
Chairman of the JSC VEF Board G.Feņuks
VEF
JSC
FINANCIAL STATEMENTS
2006
31.12.
" VEF"
JSC,LV40003001328
PROFIT AND LOSSES ACCOUNT FOR YEAR, WHICH ENDS ON DECEMBA 31,2006.
1
2
Net turnover
Cost of goods sold
1
3
LVL
31.12.2006
LVL
31.12.2005
EUR
31.12.06 0.702804
EUR
31.12.05 0.702804
4
5
4
5
440 823
965 737
627 235
306 303
-491 531
134 520
474 206
66 977
-110 715
8 815
34 089
4 855
-90 987
010
678 724
020
-345 450
Gross profit
030
Selling expenses
040
333 274
Administrative expenses
2
050
-77 811
Other income from operations
3
060
23 958
Other expenses from operations
4
070
-63 946
Income from securities and long-term loans
5
090
Finansial services income
6
100
Long-term financial investments and shotr-term
securities value depreciation
Finansial services expenses
-129 670
Profit before taxes
130
86 729
Other taxes
160
-32 154
Net profit
-
924
120
Deferred tax
-
219
191 405
-
13 842
3 200
-
42 864
-184 504
25 715
123 404
14 152
-45 751
-
G.Feņuks
6 908
312
-
4 553
-
60 991
36 589
-
20 136
-57 958
11 563
Member
Board
Chairman of the Board
95 300
12 543
1 315
-
-
435 830
81
-40 733
190
-
57
110
7
-
19 695
of
T.Kampane
16 453
ASSETS
Comm.
Nr.
Final balance
Beginning balance
LVL
LVL
EUR
EUR
31.12.2006
31.12.2005
31.12.2006
31.12.2005
0.702804
0.702804
LONG-TERM INVESTMENTS
Intangible assets
Concessions,patents,licences
Total intangible assets
90
90
95
95
128
128
135
135
4 315 346
33 885
19 715
3618454
69283
9628
315267
6140184
48214
28052
5148596
98581
13699
448585
4 368 946
4012632
6216450
5709461
4 369 036
4012727
6216578
5709596
Fixed Assets
Land,buildings and other property
Equipment and machinery
Other fixed assets and inventory
Construction in progress
Total fixed assets
Total long-term investments
Current assets
Inventory
13685
13685
Goods for sale
Total inventory
19472
19472
Debtors
Customers and client debts
Other debtors
Future period expenses
Accrued income
Total debtors
20005
84 078
14 820
25220
144 123
162483
7210
25996
195689
28465
119632
21087
35885
205069
231192
10259
36989
278440
Cash
153 233
235718
218031
335397
Total Current assets
297 356
445092
423099
633309
TOTAL ASSETS
4 666 392
4457819
6639678
6342905
LIABILITIES
Nr.
Stockholder's Equity
Common stock
Long-term investments revaluation reserve
Accumulations :
other accumulations
Total accumulation
Retained earnings from the previous years
Retained earnings of the financial years
Total stockholder's equity
Final balance
Comm.
o
Beginning balance
LVL
LVL
EUR
EUR
31.12.2006
31.12.2005
31.12.2006
31.12.2005
0.702804
0.702804
1 829 908
432 868
1829908
432868
2603724
615916
2603724
615916
586 037
586037
833856
833856
-1 556 131
13 842
1 306 524
-1 567 695
11563
1 292 681
-2214175
19695
1859016
-2230630
16453
1839320
PROVISIONS
Other provisions
Total stockpiles
5 398
5 398
7681
7681
LIABILITIES
Long-term liabilities
Borrowings from credit institutions
Prepayments from buyers
Other liabilities
Deferred tax liability
Total long-term liabilities
2 777 492
32882
147263
40733
2 998 370
Current liabilities
Borrowings from credit institutions
Prepayments from buyers
Accounts payable
Taxes and social security payments
Other liabilities
Future period income
Total current liabilities
2 691 060
8359
244113
2 943 532
248 032
3952014
46787
209536
57958
4266296
3829033
11893
347342
4188268
352918
1000
189751
1423
269992
33 121
881
52 448
21 618
356 100
3832
27023
221 606
47127
1254
74627
30760
514365
Total liabilities
3 354 470
3 165 138
4772981
4503585
TOTAL LIABILITIES&STOCKHOLDER'S
EQUITY
4 666 392
4 457 819
6639678
6342905
Chairman of the Board
Gints Feņuks
Member of the Board
5452
38450
315317
Tamāra Ka
JSK "VEF",LV40003001328
CASH FLOW STATEMENT FOR YEAR, WHICH ENDS ON DECEMBER 31,2006.
2006
31.12.
2005
31.12.
2006
31.12.
2005
31.12.
LVL
LVL
EUR
0.702804
EUR
0.702804
CASH FLOW FROM OERATING ACTIVITIES
Profit before outstanding items and taxes (+)
Adjustments:
fixed assets depreciation ( +)
intangible assets depreciation (+)
increase/decrease in provisions
profit or losses from exchange rates fluctuation (+/-)
income from long-term securities and loans
finansial service income
long-term finansial investments and short-term securities value
depreciation
finacial services income
Profit or losses before adjustments from current assets and liabilities
86 729
25 715
123 404
36 589
60 749
5
5 398
-32 889
43 963
5
86 438
7
7 681
-46 797
62 554
7
924
13
-57
-219
3 200
1 315
18
-81
-312
4 553
129 670
42 864
184 343
60 990
250 586
115 484
356 391
164 319
51 566
13 685
189 332
61 554
675
1 617 045
73 372
19 472
269 395
87 583
960
2 300 848
505 169
-129 670
1 794 758
-42 864
718 791
-184 504
2 553 711
-60 990
375 499
1 751 894
534 126
2 492 719
375 499
1 751 894
534 126
2 492 721
CASH FLOWS FROM INVESTING ACTIVITIES :
Fixed assets purchase
Interest received
-715 218
924
-1 723 449
219
-1 017 664
1 315
-2 436 595
312
Net cash used in investing activities :
-714 294
-1 723 230
-1 016 349
-2 436 283
Adjustments:
debtors : increase (-); decrease (+)
inventory: increase (-); decrease (+)
liabilities: increase (-); decrease (+)
Gross cash provide by operating activities
Payments for financial
Income tax payments
Net cash provided by operating activities before outstanding items:
Cash flow from outstanding items (-/+)
Net cash provided by operating activities :
CASH FLOWS FROM FINANCING ACTIVITIES:
Income from investments in fixed capital
Borrowings received
Grants and donations received
Expenses for borrowings repayment
57
537 231
81
764 411
-248 032
3 956
-22 850
-352 918
5 629
-32 513
Net cash provided by financing activities :
289 199
-18 837
411 493
-26 803
Exchange rate fluctuation result :
-32 889
13
-46 797
18
Net cash flom
-82 485
9 840
-117 366
14 001
CASH AT BEGINNING OF YEAR
CASH AT END OF YEAR
235 718
153 233
225 878
235 718
335 396
218 031
321 395
335 396
Gints Feņuks
paraksts
Tamāra Kampāne
paraksts
"VEF" JSC,LV40003001328
STATEMENT OF CHANGES IN EQUITY FOR YEAR,
WHICH ENDS ON DECEMBER 31,2006.
Stockholder's eguity
Balance at the beginning of the financial year
Increase from
Decrease from
Balance at the end of the financial year
Long-term investments revaluation reserve
Balance at the beginning of the financial year
Increase from
Decrease from
Balance at the end of the financial year
Accumulations
Balance at the beginning of the financial year
Increase from
Decrease from
Balance at the end of the financial year
Retained earnings
Balance at the beginning of the financial year
Profit or losses of the finacial year
Dividendes
Included in accumulations
Balance at the end of the financial year
Stockholder's eguity (total)
Balance at the beginning of the financial year
Balance at the end of the financial year
Chairman of the Board
Member of the Board ___________________________
Gints Feņuks
Tamāra Kampāne
31.12.2006
EUR
0.702804
31.12.2005
EUR
0.702804
31.12.2006
LVL
31.12.2005
LVL
1829908
1829908
2603724
2603724
1829908
1829908
2603724
2603724
432868
432868
615916
615916
432868
432868
615916
615916
586037
586037
833855
833855
586037
586037
833855
833855
-1556131
13842
-1567695
11563
-2214175
19695
-2230630
16453
-1542289
-1556132
-2194464
-2214177
1292681
1306524
1281118
1292681
1839320
1859016
1822867
1839320
JSC VEF
FINANCIAL STATEMENTS’ APPENDIXES
FOR YEAR, WHICH ENDS ON DECEMBER 31, 2006
1.
ACCOUNTING AND ASSESSMENT METHODS – COMMON PRINCIPLES
Basis for financial statements preparation
Financial statements are being prepared in compliance with Latvian laws “On bookkeeping” and “On the
Annual Accounts of Undertakings”.
Profit and losses account is prepared according to the turnover method. Accounting policy provides the
financial statements give information that is appropriate for their users to make decisions and conclusions.
The policy is reliable. The financial statements correctly reveal the financial condition and operating results of
the company – showing not only legal side of transactions, but also their economical matter, and are complete
in all essential aspects.
Accounting principles used
The items of the financial statements are valued according to the following accounting principles:
a) it is assumed that the company will operate in the future;
b) assessment methods used are the same as used in the previous financial year;
c) assessment is made with mere caution:
-
only profit earned before the date of the annual report is included in the financial statements
all projected risk amounts and losses that appeared in the financial year or in the previous
years are taken into account, even those which became known in the period of time between
the date of the annual report and the day when the financial statements are drawn up
- all value decreases and depreciation amounts are calculated and taken into account,
regardless of the financial year result (profit or losses)
d) revenues and expenditures connected with the financial year are taken into account, regardless of
payment date and invoice receiving or writing out date;
e) assets and liabilities and net worth items have been assessed independently;
f) the initial balance sheet of the financial year coincides with the previous financial year final balance
sheet;
g) all items that have an essential influence on the financial statements’ users evaluation or decision
taking have been taken into account, non-significant items have been combined and they are shown
in details in the appendixes to the financial statements;
h) business operations during the financial year are shown by their economical content and nature
instead of their legal form.
Financial year
Financial year is 12 months, from 01.01.2006 to 31.12.2006.
Money and foreign currency revaluation
Amounts shown in these financial statements are in Latvian national currency – lats (LVL).
All monetary assets and liabilities are recalculated to lats, using the official exchange rate of the Latvian Bank
that is set on the last day of the financial year.
1
JSC VEF
FINANCIAL STATEMENTS’ APPENDIXES
FOR YEAR, WHICH ENDS ON DECEMBER 31, 2006
Long-term and short-term items
Long-term items include amounts, whose receiving, discarding or payment terms become due more than 1
year after the end of the respective financial year. Amounts that are due to be received, paid or discarded
during the next year, are included in short-term items.
Fixed assets and nonmaterial investment depreciation
Fixed assets and non-material investments are shown by purchase price minus depreciation. Depreciation is
calculated on the straight-line basis, using as a basis the following rates:
Fixed assets
Property
Equipment and machinery
Other fixed assets
1%
20%
25%
Income tax
Income tax for the financial year consists of calculated tax and deferred tax. Income tax is included in the
profit and losses account.
Income tax for the financial year is calculated according to the law” On the income tax of Undertakings”,
determining taxable income and using 15% rate, set by the law.
Deferred income tax is calculated for the difference between assets and liabilities value in the financial
statements and assets and liabilities value for tax purposes. Deferred income tax is calculated using 15% rate,
set by the law. The above-mentioned difference mainly comes from the different fixed assets depreciation
rates used in the financial and tax accounting. Increase of provisions for bad receivables is not taken into
account, calculating deferred income tax, due to mere caution principle.
Credit line
There is a credit line opened in JSC “SEB Latvijas Unibanka”. It is included in the long-term liabilities and
the balance at the end of the financial year is 3 025 523 LVL (4 304 932 EUR).
2