Industrial Holding Bulgaria Plc
Interim Consolidated Financial Statements
For the period ended 30 September 2012
Consolidated Income StatementFor the period ended 30 September / / /
In BGN thousand / Note / 30 September 2012 / 30 September 2011
Revenue / 7 / 65,323 / 89,752
Other operating income / 8 / 2,153 / 2,072
Increase (reduction) of work in progress / 9 / (1,526) / 14,350
Capitalised expenses on own assets creation / 10 / 34,904 / 131
Costs of materials / - / (49,574) / (53,820)
Costs of hired services / - / (13,961) / (19,434)
Depreciation and amortization costs / 18,19 / (7,714) / (7,015)
Payroll costs / 13 / (17,805) / (17,245)
Cost of assets sold / - / (898) / (539)
Other operating expenses / 14 / (4,981) / (7,788)
Operating profit/(loss) / 5,921 / 464
Financial income / 326 / 543
Financial expenses / (6,281) / (4,500)
Net financial income / 16 / (5,955) / (3,957)
Profit of associates reported under the capital method / 20 / 76 / 3,207
Operating profit/(loss) prior to taxation / 42 / (286)
Tax expenses / 17 / (1,808) / (467)
Operating profit/(loss) after taxation / (1,766) / (753)
Profit/(loss) distribution
For the majority owners of the company / (402) / 2,943
For the non-controlling interest / (1,364)) / (3,696)
(1,766), / (753)
Income per share for the majority owner
Basic earnings per share (in BGN) / 27 / (0,006) / 0,045
The Income Statement should be considered together with the notes thereto, which form integral part of the Consolidated Financial Statements presented on pages 8 to 50.
Daneta Zheleva / Ms. Toshka Vassileva
Chief Executive Officer / Chief Accountant
Consolidated Statement of Comprehensive Income For the period ended 30 September
In BGN thousand / Note / 30 September 2012 / 30 September 2011
Operating profit/(loss) after taxation / (1,766), / (753)
Other comprehensive income
Land revaluation / - / -
Tax effects from revaluation / 17, 31 / - / -
Hedging effects / 13 / 66 / (320)
Other changes / 2 / (4)
Other comprehensive income for the period, net of tax / 68 / (324)
Total comprehensive income for the period / (1,698)) / (1,077)
Total comprehensive income for:
For the majority owners of the company / (333) / 2,622
For the non-controlling interest / (1,365) / (3.699)
Total comprehensive income for the period / (1,698)) / (1,077)
The Income Statement should be considered together with the notes thereto, which form integral part of the Consolidated Financial Statements presented on pages 8 to 50.
Consolidated Statement of Financial Position
As of 30 September
In BGN thousand / Note / 30 September 2012 / 2011Assets
Property, plant and equipment / 18 / 342,931 / 321,120
Intangible Assets / 19 / 4,502 / 4,658
Goodwill / 19 / 6,212 / 6,212
Investments in associates reported under the capital method / 20 / 1,841 / 17,837
Other investments / 21 / 5 / 5
Long-term receivables / 22 / 4,645 / 7,214
Total non-current assets / 360,136 / 357,046
Assets held for sale / 18 / 1,700
Inventories / 23 / 45,459 / 67,023
Trade and other receivables / 24 / 21,507 / 10,968
Cash and cash equivalents / 25 / 4,414 / 11,075
Total current assets / 73,080 / 89,066
Total assets / 433,216 / 446,112
Equity
Share Capital / 26 / 67,978 / 67,978
Premium reserve / 30,604 / 30,604
Reserves / 62,513 / 63,083
Retained earnings (net) / 67,107 / 66,870
Capital and reserves of majority owners / 228,202 / 228,535
Non-controlling interest / 11,997 / 13,673
Total equity and reserves / 240,199 / 242,208
Liabilities
Borrowings / 28 / 53,455 / 106,465
Debenture loan / 28 / 21,587 / 21,528
Other long-term payables / 29 / 785 / 408
Provisions / 30 / - / 45
Income of hired people / 30а / 32 / 222
Deferred tax liabilities / 31 / 5,989 / 6,187
Total non-current liabilities / 81,848 / 134,855
Borrowings / 28 / 73,096 / 23,056
Debenture loan / 28 / - / -
Interest charged on debenture loan / 28 / 790 / 357
Trade and other payables / 32 / 36,647 / 44,862
Provisions / 30 / 477 / 748
Income of hired people / 30а / 159 / 26
Total current liabilities / 111,169 / 69,049
Total equity and liabilities / 433,216 / 446,112
The Income Statement should be considered together with the notes thereto, which form integral part of the Consolidated Financial Statements presented on pages 8 to 50.
Consolidated Cash Flow Statement
For the period ended 30 September 2012
In BGN thousand / Note / 30 September 2012 / 30 September 2011Operating cash flow
Proceeds from clients / 60,651 / 67,141Payments to suppliers / (31,641) / (52,408)
Remuneration related payments / (16,989) / (16,537)
Paid corporate profit tax, net / (981) / (821)
Interest received (paid) / (5,586)
Foreign exchange differences / (111) / (261)
Other proceeds (payments) / 1,614 / 2,477
Net operating cash flow / 12,543 / (5,995)
Investment cash flow
Proceeds from sale of non-current tangible assets / 743 / 933Payments for acquisition of non-current tangible assets and their economic construction / (23,721) / (48,093)
Recovered loans and interest / 933 / 3,058
Loans granted / (910) / (391)
Purchase of investments / - / (1,326)
Received dividends from investments / 1,098 / 99
Proceeds from sale of investments / 15,255 / 544
Interest received on loans, deposits and current accounts / 227 / 136
Other proceeds (payments) / (3,904) / (36)
Net investment cash flow / (10,279) / (45,076)
Financial cash flow
Proceeds from securities issue / - / 9,987Received debenture loan / - / -
Credits and loans received / 24,986 / 90,998
Credits and borrowings repaid / (28,059) / (44,508)
Dividends paid / (306) / (311)
Loan interests, charges and commission fees paid / (5,338) / (4,980)
Other proceeds (payments) / (208) / (167)
Net financial cash flow / (8,925) / 51,019
Net increase in cash and cash equivalents / (6,661) / (52)
Cash and cash equivalents as of 1 January / 25 / 11,075 / 8,906
Cash and cash equivalents as at 30 September / 25 / 4,414 / 8,854
The Income Statement should be considered together with the notes thereto, which form integral part of the Consolidated Financial Statements presented on pages 8 to 50.
5
INDUSTRIAL HOLDING BULGARIA PLCConsolidated Equity Statement
For the period ended 30 September 2011
In BGN thousand /
Note / Share Capital / Premium reserve / Additional and statutory reserves / Hedging reserve / Revaluation reserve / Retained earnings / Total for the Group / Non-controlling interest / Total
Balance as of 1 January 2011 / 58,282 / 30,313 / 11,264 / (335) / 56,465 / 68,179 / 224,168 / 26,529 / 250,697
Total comprehensive income for the period
Profit and loss / - / - / - / - / - / 2,943 / 2,943 / (3,696) / (753)
Other comprehensive income
Hedging effects, net of taxes / 0 / - / - / - / (320) / - / - / (320) / - / (320)
Other movements in revaluation reserve / - / - / - / - / (149) / 149 / - / - / -
Other changes / - / - / (7) / - / - / 6 / (1) / (3) / (4)
Total other comprehensive income / - / - / (7) / (320) / (149) / 155 / (321) / (3) / (324)
Total comprehensive income for the period / - / - / (7) / (320) / (149) / 3,098 / 2,622 / (3,699) / (1,077)
Transactions with shareholders reported in the Statement of Equity
Contributions by and allocations to shareholders
Acquisition of non-controlling shareholding / 29 / 99 / 65 / 193 / (193)
Profit distribution for reserves / - / - / 526 / - / - / (526) / - / - / -
Loss reserve coverage / - / - / (4,946) / - / - / 4,946 / - / - / -
Dividends paid / - / - / - / - / - / - / - / (311) / (311)
Capital increase / 26 / 9,696 / 291 / - / - / - / - / 9,987 / - / 9,987
Total transactions with shareholders / 9,696 / 291 / (4,391) / - / 99 / 4,485 / 10,180 / (504) / 9,676
Transfer from revaluation reserve of assets sold to retained profit / - / - / - / - / - / - / - / - / -
Balance as of 30 September 2011 / 67,978 / 30,604 / 6,866 / (655) / 56,415 / 75,762 / 236,970 / 22,326 / 259,296
Consolidated Equity Statement (continued)
For the Period Ended 30 June 2012
In BGN thosand /
Note / Share Capital / Premium reserve / Additional and statutory reserves / Hedging reserve / Revaluation reserve / Retained earnings / Total for the Group / Non-controlling interest / Total
Balance as of 1 January 2012 / 67,978 / 30,604 / 7,569 / (685) / 56,199 / 66,870 / 228,535 / 13,673 / 242,208
Total comprehensive income for the period
Profit and loss / - / - / - / - / - / (402) / (402) / (1,364) / (1,766)
Other comprehensive income
Hedging effects, net of taxes / 16 / - / - / - / 66 / - / - / 66 / - / 66
Other movements in revaluation reserve – sale of subsidiary / - / - / - / (1,086) / 1,086 / - / - / -
Other changes / 3 / 3 / (1) / 2
Total other comprehensive income / - / - / 66 / (1,086) / 1,089 / 69 / (1) / 68
Total comprehensive income for the period / - / - / - / 66 / (1,086) / 687 / (333) / (1.365) / 1,698)
Transactions with shareholders reported in the Statement of Equity
Contributions by and allocations to shareholders
Profit distribution for reserves / - / - / 707 / - / - / (707) / - / - / -
Dividends paid / - / - / - / - / - / - / - / (311) / (311)
Loss reserve coverage / - / - / (257) / - / - / 257 / - / - / -
Other changes
Total transactions with shareholders / - / - / 450 / - / - / (450) / - / (311) / (311)
-
Transfer from revaluation reserve of assets sold to retained profit / - / - / - / - / - / - / - / - / -
Balance as of 30 September 2012 / 67,978 / 30,604 / 8,019 / (619) / 55,113 / 67,107 / 228,202 / 11,997 / 240,199
The Income Statement should be considered together with the notes thereto, which form integral part of the Consolidated Financial Statements presented on pages 8 to 50.
50
INDUSTRIAL HOLDING BULGARIA PLCNotes to the consolidated financial statements
1 / Status and scope of operations
Industrial Holding Bulgaria PLC (the Company or the Holding) is a public limited company having its seat in Sofia, Bulgaria and address of management at 42 Damyan Gruev Blvd, Sofia 1000. The consolidated statements of the Company for the period ended 30 June 2012 comprise the statements of the Company and its subsidiaries (together referred to as the “Group”), as well as the interests of the Group in associates.
The scope of activity of the Group include production of and trading in heavy machinery, shipbuilding, ship repairs and transportation, furniture production, real estate transactions, port services and accompanying activities from /to ships and land transport vehicles, maintenance and repairs and other services.
Industrial Holding Bulgaria and some of the subsidiaries are listed on the Bulgarian Stock Exchange – Sofia.
2 / Basis of preparation
(а)
/Statement of compliance
These Consolidated Financial Statements have been prepared in compliance with the International Financial Reporting Standards (IFRS) adopted by the European Union (EU).The consolidated financial statements were approved for publication by the management of the Company on 29 November 2012.
/
These Interim Consolidated Financial Statements should be considered in relation to the Annual Consolidated Financial Statements of the Group as of 31 December 2011.
(b)
/Basis of valuation
/ These Consolidated Financial Statements have been prepared based on historical cost with the exception of the following material articles in the statement of financial position:· Derivative financial instruments measured at fair value;
· Land, buildings, plant and equipment, which have been presented at a revalued amount less the accumulated depreciation and impairment losses
· Financial assets measured at fair value through gains and loss;
· Financial assets available for sale, which have been valued at their fair value.
· Liability regarding defined income plan reported at present value
(c) / Functional currency and reporting currency
These Consolidated Financial Statements are presented in BGN, which is the functional currency of the Company and the Group. The financial data in the Annual Financial Statements are given in BGN thousand.
(d) / Use of estimates and assumptions
The drafting of the consolidated financial statements under IFRS requires that the management makes judgments, estimates and assumptions which affect the application of the accounting policies and of the reported amounts of the assets, liabilities, gains and losses. The actual results may differ from such estimates.
2 / Basis of preparation (continued)
(d) / Use of estimates and assumptions (continued)
The expectations and key assumptions are revalued on a current basis. The revaluation of the accounting estimates is recognized for the period when the estimate is revalued when the revaluation affects only this period, or in the period of revaluation and future periods if the revaluation affects future periods.
(e) / Going concern
The Financial Statements are prepared on the basis of the assumption that the Group is a going concern and will continue to operate in the foreseeable future.
3 / Significant accounting policies
The significant accounting policies described below are consistently applied over all periods included in these Financial Statements.
Certain comparative figures were reclassified to conform with the representation for the current year.
(а)
/Basis of consolidation