ReviKo
“ZETATRANS” JSC PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED AS OF
31. DECEMBER 2015.
“ZETATRANS” JSC PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED AS OF
31. DECEMBER 2015. WITH INDEPENDENT AUDITOR REPORT
Content Page Presentation letter 1-4 Independent auditor report 5 Income statement for the year ended December 31, 2015. 6 Balance sheet as of December 31, 2015. 7 Statement of changes in equity 8 Cash flow statement 9 Notes to financial statements 10 - 28
5
To Board of Directors and Shareholders of “ZETATRANS” JSC PODGORICA
Independent auditor report
1. We have audited the accompanying financial statements of “ZETATRANS” JSC Podgorica
(the “Company”) which comprise the balance sheet as of 31 December 2015 and the income
statement, statement of changes in equity and cash flow statement for the year then ended and a
summary of significant accounting policies and other explanatory notes.
Management’s Responsibility for the Financial Statements
2. Management is responsible for the preparation and fair presentation of these financial statements
in accordance with the requirements of the Law on Accounting and Auditing of the Republic of
Montenegro and IFRS. This responsibility includes: designing, implementing and maintaining internal
controls relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
3. Our responsibility is to express an opinion on these 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the 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 management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
4. In our opinion the accompanying financial statements present fairly, in all material respects,
the financial position of the Company as of December 31, 2015, and of its financial performance and
its cash flows for the year then ended in accordance with the Law on Accounting and Auditing of the
Republic of Montenegro.
“Reviko“ doo Podgorica
In Podgorica, 11.02.2016. Keković Dragiša, Licenced auditor
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
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Income statement (in Eur)
Note 2015. 2014.
Operating revenue
Service income 3.1, 4 5.200.059 4.850.027
Other operating gains - -
5.200.059 4.850.027
Operating expenses Cost of services rendered 3.2, 5 (1.592.016) (1.263.536)
Materilas 3.2, 6 (144.741) (161.609)
Employee expenses 3.5, 7 (1.633.890) (1.792.173)
Depreciation costs and provision 3.9, 8 (440.487) (451.831)
Other operating expenses 3.2, 9 (928.040) (802.882)
(4.739.174) (4.472.031)
Profit from operation 460.885 377.996
Financial income 3.3, 3.4, 10 51.884 72.714 Financial expense 3.3, 3.4, 10 - -
Financial income (net) 51.884 72.714
Other incomes 11 471.499 504.985
Other expenses 12 (453.022) (465.315)
Profit from other activities 18.477 39.670
Profit from business operation 531.246 490.380
Net result from dicontinued operation
Profit before tax 531.246 490.380
Other items
Tax expense for the period Current profit tax 3.6, 13 (31.798) (65.755) Deferred tax 13 (11.555) (14.092)
(43.353) (79.847)
Profit after tax 487.893 410.533
Earnings per share
Earnings per share 14 0,0593 0,0499
Reduced (splitted) earning per share
Podgorica, 31.01.2016. JSC “Zetatrans”, Podgorica
Dalibor Stojanov, Executive director
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
7
Balance sheet
( in Eur)
Note 2015. 2014.
Long term assets
Intangibles 3.7, 15 43.816 5.245
Property, plant and equipment 3 8, 16 18.039.843 18.305.466
Long term financial placements available for sale 3.11,18 1.442 6.606
18.085.101 18.317.317
Non current assets held-for-sale 3.12,17 -
Current assets
Inventory 3.13,19 84.375 225.959
Short ter receivables, placements and
Cash
Trade receivables 3.14,20 2.319.226 1.918.766
Short term financial placements 3.11, 21 1.430.000 1.600.000
Cash and cash equivalents 3.15, 22 197.485 200.982
VAT and prepayments 86.192 71.221
4.117.278 4.016.928
Total assets 22.202.379 22.334.245
Equity and liability
Equity
Share equity 23 10.508.792 10.508.792
Reserve 14.629 14.629
Revaluation reserve 3.16 9.560.802 9.579.077
Reatained earnings 552.872 709.542
Total net equity 20.637.095 20.812.040
Long term provision and long term
liabilities
Long term provision 3.19, 24 37.709 27.709
Long term liabilities
Other long term liabilities - -
Deferred taxes 3.6 270.554 258.999
Short term liabilities
Short term financial liabilities - 3.526
Short term trade payables 3.18, 25 535.709 501.143
Other short term liabilities and accruals 26 658.989 632.625
VAT liabilities 30.525 32.448
Corporate income tax liabilities 31.798 65.755
1.257.021 1.235.497
Total equity and liability 22.202.379 22.334.245
Podgorica, 31.01.2016. JSC “Zetatrans”, Podgorica
Dalibor Stojanov, Executive director
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
8
Statement of changes in equity
(in Eur)
Non
realised
gains from
Share
Revaluation
securities
held
Legal
Retained
Decsription equity reserve for sale reserve earnings Total
As of 1. 01. 2014. 10.508.792 9.580.859 3.829 14.629 1.281.139 21.389.248
Dividends - - - - (986.509) (986.509)
Subsequent measurement of
long term financial - - 2.777 2.777
placements
Actuarial report - - - (4.009) (4.009)
Transfer on sale - (8.388) 8.388 -
Profit for the year - - - - 410.533 410.533
As of 31. December 2014. 10.508.792 9.572.471 6.606 14.629 709.542 20.812.040
As of 1. 01. 2015. 10.508.792 9.572.471 6.606 14.629 709.542 20.812.040
Dividends - - - - (657.673) (657.673)
Correction - (4.331) 4.331 - - -
Subsequent measurement of
long term financial
placements - - (5.164) - - (5.164)
Transfer on sale - (13.111) - - 13.111 -
Profit for the year - - - - 487.893 487.893
As of 31. December 2015. 10.508.792 9.555.029 5.773 14.629 552.872 20.637.095
Podgorica, 31.01.2016. JSC “Zetatrans,” Podgorica
Dalibor Stojanov, Executive director
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
9
Cash flow statement
( in Eur)
2015. 2014.
Cash flows from oerating activities
Cash receipts from operating activities
Sale and advances received 7.295.129 10.396.381
Interest received from operating activities
Other receipts from operating activities
Cash payments from operating activities
Cash payments to suppliers and advances paid (4.470.023) (7.379.639)
Cash payments to employees (1.608.044) (1.774.211)
Interest paid
Income tax paid (65.755) (89.005)
Cash payments of other public duties (551.930) (604.922)
Net cash from operating activities 599.377 548.604
Cash flows from investment activities
Cash receipts from investment activities
Proceedings from sale of shares (net receipts)
Proceedings from sale of PPE 712 9.531
Other financial placements (net receipts)
Interest received 38.500 83.067
Dividends received
Cash outflow from investment activities
Purchase of shares (net outflow)
Purchase of PPE (192.955) (139.309)
Other financial placements (net outflow)
Other outflows from investment activities
Net cash from investment activities (153.743) (46.711)
Cash flows from finance activities
Cash inflows from finance activities
Share issue
Inflow from long term and short borrowings (net inflow)
Other long term and short term liabilities
Cash outflows from finance activities
Redeemed own shares
Outflow from long term and short term borrowings (net outflow)
Finanace leasing (3.526) (3.525)
Dividends paid (615.605) (902.509)
Net cash from finance activities (619.131) (906.034)
Net cash flow (173.497) (404.141)
Cash at the begining of period 1.800.982 2.205.123
Foreign exchange differences
Cash at the end of period 1.627.485 1.800.982
Podgorica, 31.01. 2016. JSC “Zetatrans” Podgorica
Dalibor Stojanov, Executive director
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
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1. General information
“Zetatrans” JSC Podgorica, Logistic services ( the Company) was founded in 1965. as a business
society for public transport and repairs under the name RSCG “Zetatrans”.
Based on the Decision of owners and management transaformation Number 5693 from 18.04.1996.,
the Company has been registered as joint stock company within the Commercial Court of
Montenegro, under the Resolution No FI 2846/96 from 25.12.1996.
In accordance to the Company Law ( »Official Gazette of Montenegro« No 6 from 2002), the Company has been registered with the Central Reister of Commercial Court in Podgorica on 13.08.2002, under the registration number 4-0003234/001.
Primary activity of the Company is international and national shipping, international and national
transportation, public and customs warehaousing and foreign trade. Management bodies of the Company are the Shareholders Assembley as the highest body, Board of Directors as a highest management body, Executive director and Company Secretary. Shareholders Assemly represent all the owners of the Company and their authorised representatives. Board of Directors consit of 3 members whose memebership expires on a first regula annual Shareholders Assembey meeting. Memebers of Board of Directors are elected by Shareholders Assembley..
As of 31. Dcember 2015. the Company employs 132 employees (as of 31. December 2014. 139
employees).
The address of the Company’s registered office is in Podgorica, Ćemovsko polje bb.
2. Basis for preparation and presentation of financial statements
a) Basis for preparation The financial statements of the Company have been prepared in accordance with Law on Accounting and Auditing of Montenegro (“OGM”, No.69/2005 and No 80/2008) and Decision on appliance of International Accounting Stanards (“IAS”) in Montenegro (“OGM”, No.69/2002). According to this, the International Financial Reporting Standards (IFRS) are applied on the financial statements starting from January 1, 2003. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of land and financial investment available for sale. All amounts in the Financial statements are expressed in EUR , representning the financial and
reporting currency of the Company.
b) Accounting estimates and assumptions
Presentation of financial statements require appliance of accounting estimates and assumptions which affect the presented amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of preparation of financial statements, as well as the value of incomes and expenses during the reporting period. These estimates and assumptions are based on the available information on the date of preparation of financial statements and may differ from the actual result. The estimates and assumptions mostly relate to the impairment provision for operating receivable, estimated usefull life of PPE and other provisions.
c) Going concern concept The financial statements are prepared in accordance with the going concern concept, which assumes that the Company will continue its operations for the foreseeable future.
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
11
3. Summary of significant accounting policies
The principal accounting policies applied in the preparation of 2015. financial statements are set out below: 3.1. Revenues The Company recognizes revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity. Revenues relate mostly to sale of shipping services rendered on international and national market. Revenues collected in cash are included in the amount of completed payment for the parking services, Cash received revenues relate to parking services, revenues from border crossings and revenues
from services provided using the scales
Revenue is shown net of value-added tax, returns, rebates and discounts. For receivables not paid within the 180 days, impairment provision is created within the position of other expenses of income statement. Incomes related to collection of these receivables are recorded separately at the moment of collection. 3.2. Operating expenses Operating expenses comprise all expenses directly attributable to Company primary activity. Recognized expenses are directly attributable to recognized revenues in the income statement for the period. Expenses are recognized in the income statement also when the obligation has recognized and no criteria for assets recognition is met.
3.3. Foreign currency translation
Transactions in foreign currencies during the year are translated into EUR at the official exchange
rates applicable on the day of transaction.
All receivables and liabilities denominated in foreign currencies are translated into EUR using the
official exchange rate at the balance sheet date.
Positive and negative foreign exchange differences arising from translation of assets and liabilities
denominated in foreign currencies and translation of business changes during the year are
recognized in the income statement. 3.4. Financial incomes and expenses Financial incomes and expenses comprise interest incomes related to receivables and placements and interest expenses. Interest incomes and expenses are recognized at the accounting period when they occured, according to the contractual obligations. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement Additionaly, incomes arising from long term placements in other companies and banks are recognized in the income statement in period when occured.
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
12
3. Summary of significant accounting policies (continued)
3.5. Employee benefits
Pension obligation
According to the regulations ruling in Montenegro, the Company is obliged to withold and pay, on
behalf of employees, contributions to the state social funds. These obligations include contributions
for employees ( on behalf on employee and on behalf on emplyer) calcuted using the rates
prescribed by relevant regulations. Contribution expenses are included in the income statement.
The Company has no further payment obligations once the contributions have been paid. Prepaid
contributions are recognized as an asset to the extent that a cash refund or a reduction in the future
payments is available.
Jubilee awards and retirement benefits According to the Individual collective agreement, the Company is obliged to pay retiremnt benefits in amount of 20 minimal salaries in Montenegro, and amounts of in the range between 100 and 300 euros for jubilee awards depending on the years of service within the Company. During 2007, the Company engaged chartered actuar and applied for the first time the IAS 19-
Employee benefits. Long-term liabilities jubilee awards and retirement benefits after meeting the
conditions stated at the present value of expected future payments to employees upon actuarial
report as at 31.12.2015.
3.6. Income tax
Current income tax
Company income tax is calculated and paid in accordance with the tax regulations in Montenegro. Company income tax is calculated using the 9 % on the taxable base. Tax base represents profit calculated according to the legal requirements corrected for the incomes and expenses not recognized for tax purposes in accordance with the Company income tax law (article 8 and 9 for correction of incomes and articles 10 to 20 for corrections of expenses). Capital gains are included in the tax base for the year in the amount of 100%. Loss from current period can be carried forward to offset only the future taxable profits for the period not longer than 5 years.
Deferred tax Deferred tax liability represent the amount of tax liabilities that will be payed in future period. Deferred tax liability resulted from the diffrent calulation of accounting and taxable profit. Deferred tax is calculated using the actual or expected tax rate on the taxable temporary differences. Taxes, contributions and other legal obligations not depending on the operating result Taxes, contributions and other legal obligations not depending on the operating result include taxes and contributions paid according to the state and municipality regulations. These taxes and contributions are include in the position of Other operating expenses in the income statement.
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
13
3. Summary of significant accounting policies (continued)
3.7. Intangible assets Intangible asstes are recognized at cost. Subsequent measuremnt are stated at cost less accumulated
depreciation and impairment.
Intangible assets mostly relate to computer software and licenses. Usefull life of intangible assets is
determined in accordance with the contracts for use of those assets, and for software in accordance
with their estimated useful lives.
According to the Article 13 of the Company income tax Law, the tax depreciation is calculated
differently from the accounting depreciation. The tax depreciation for software is calculated using
the deggressive method, while other intangible are amortised using the straight-line method.
3.8. Property and equipment
Property and equipment represent assets whose usefull life is longer than 1 year.
Initial recognition of property and equipment are stated at cost. Cost includes expenditure that is
directly attributable to the acquisition of the items.
After initial recognition of buildings and equipment, subsequent measuremnt of those are stated at
cost less accumulated depreciation and impairment.
Purchase value, in accordance with the changed accounting policy, the estimated value as of
30.09.2007. performed by independent apprisal.
Valuation of land is performed by fer value method on 31.10.2014.
After the initial recognition, land is measured using the revaluation method, or at fair value less any
subsequent total impairment losses.
Negative effects of the fair value adjustment is offset aginst the previously created revaluation
reserve, while the remaing amount is recorded at the position of expenses in the Income statement.
Positive effects from fair value adjustments are recorded within the revaluation reserve.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will
flow to the Company and the cost of the item can be measured reliably. Maintenance and repair costs are recognized in the income statement. Gains and losses on disposals are determined by comparing proceeds with carrying amount and are
recognized within "Other income/expenses", in the income statement.
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
14
3. Summary of significant accounting policies (continued)
3.9. Depreciation Depreciation on property and equipment is calculated using the straight-line method to allocate their
cost or revalued amounts to their residual values over their estimated useful lives.
Depreciation charge is calculated starting from next month from the date of acquire of new fixed
assets. Estimated useful life used for calculation of depreciation and applied rates are as follows:
Estimated
remaining
Depreciation
Depreciation rate
Group of fixed assets useful life rate per tax balance
(years) (%) (%)
Buildings
- offices 40 2,5 5,0 - warehouses 20-40 2,5- 5,0
Containers 4-8 25,0-12,5 20,0
Outside installations 8-9 12,5-11,0 20,0
Office furniture and equipment 3-10 33,3-10,00 20,0
Vehicles 3-6 33,3-16,66 20,0
Forklifts, pallets trolleys 3-8 33,3-12,5 15,0
Computers 4 25,0 30,0
According to the Article 13, paragraph 6 of the Company income tax Law ( “Official Gazette of Montenegro” No 40 from 2008) , tax depreciation is different from accounting depreciation. Tax depreciation of buildings is calculated using the straight-line method, while for the depreciation of other fixed assest degressive method is used.
3.10. Impairment of non financial assets Business policy of the Company requires for Company to disclose information about fair value of assets and liabilities for which available official market information exist and when there is indication that the fair value significantly differ from the carrying value in Company records. The Company management estimates risk related to the possibility that assets carrying value will not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss is charged to the income statement, unless the related asset is presented in financial statements at revalued amount when an impairment loss is deducted from revaluation reserve. Cancellation of impairment is presented as an income, unless the asset is presented in financial statements at revalued amount when cancellation of impairment is treated as an increase of revaluation reserve.
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
15
3. Summary of significant accounting policies (continued)
3.11. Financial placements
Finansijski placements are classified as: - long term financial placements available for sale and term
deposits with banks.Classification of the financial assets depends on the natiure and purpose of
financial asset and has been determined at the moment of initial recognition.
Financial investments avaialable for sale
Financial investments avaialable for sale are carried throug throgh the indefinite period of time and
can be sold for liquidty purposes, or because the change occured either in intereset rate or market
value of shares. Avaialbe for sale financial intruments include investments in shares traded on
Montenegrin stock markets.
Securities classified as available for sale financial instruments are initially recognized at cost. The
cost include all other directly attributable expenses ( such as transaction expenses). Available-for-
sale financial instruments are subsequently carried at fair value. Changes in the fair value of
investments classified as available-for-sale are recognized in equity. When securities classified as
available-for-sale are sold or impaired, the accumulated fair value adjustments recognized in equity
are included in the income statement as 'gains and losses from investment securities'.
The Company assesses at each balance sheet date whether there is objective evidence that a
financial asset or a group of financial assets is impaired. If any such evidence exists for available-
for-sale financial assets, the cumulative loss – measured as the difference between the acquisition
cost and the current fair value, less any impairment loss on that financial asset previously
recognized in profit or loss – is removed from equity and recognized in the income statement.
Impairment losses recognized in the income statement on equity instruments are not reversed
through the income statement.
Term deposits
Term deposits are stated at nominal value.
3.12. Non current assets held-for-sale
Non-current assets are recognized as assets held for sale and stated at the lower of carrying amount
and fair value less costs to sell if their carrying amount is to be recovered principally through a sale
transaction rather than through a continuing use. Difference between carrying amount and lower fair
value is stated in the income statement as the impairment loss.
The asset can be recognized as an asset held for sale only when the sale of assets is feasible and
when the asset can be sold in its current condition. Sale of asset must be feasible within the period
of one year starting from the date of recognition of the asset as the assets held for sale.
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
16
3. Summary of significant accounting policies (continued)
3.13. Inventory Inventories are stated at the lower of cost and net realizable value. Net realizable value represents the value at which the inventory can be sold in normal operational conditions after deduction for sale expenses.
An inventory impairment loss is recognized in the income statement when the net realizable value is
lower than cost. Damaged inventories are fully written off.
Inventories are determined using the weighted average method.
3.14. Trade receivables
Trade receivables are stated at invoiced value deducted for provision for impairment.
A provision for impairment of trade receivables is established when there is objective evidence that
the Company will not be able to collect all amounts due according to the original terms of
receivables. Significant financial difficulties of the debtor, probability that the debtor will enter
bankruptcy or financial reorganization, and default or delinquency in payments more than 180 days
overdue are considered indicators that the trade receivable is impaired.
An impairment loss is stated in the income statemnt under other expenses. Subsequent recoveries of
amount previously written off are credited to ‘other income’ in the income statement.
3.15. Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less.
3.16. Revaluation reserve
Revauation reserve arise from the effect of performed revaluation of property, plant and equipment
in accordance with the alternative accounting treatment permitted by IAS 16 – Property, plant and
equipment.
Increases in the carrying amount arising on revaluation of property, plant and equipment are
credited to revaluation reserves in equity. Decreases that offset previous increases of the same asset
are charged against revaluation reserves directly in equity; all other decreases are charged to the
income statement.
The effect of the revaluation of individual asset after disposal is stated directly as increase in
retained earnings or deduction of accumulated loss.
Impairment loss of an revalued asset is treated as deduction of already created revaluation reserve.
In cases when an impairment loss is higher that revaluation reserve, difference is charged to income
statement.
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
17
3. Summary of significant accounting policies (continued)
3.17. Leasing A lease is classified as a finance lease in all cases where all the risks and benefits incidental to ownership of assets are transferred to the Company. All other leases are classified as operating leases. The lease subject is recognized as an asset and as a liability at fair value excluding the amount of interest payment of future rents. Each lease payment includes interest and principal payments to the annuity calculated. Interest expenses are charged to income statement on a pro rata basis on the outstanding balance of the rent. Depreciation of the asset being leased is performed during the life of the asset or over the lease period, depending on which of the two periods is shorter.
3.18. Trade payables
Trade payables are stated at invoiced value.
3.19. Provision, contingent assets and liablities
Provisions are recognized when: the Company has a present legal or constructive obligation as a
result of past events; it is probable that an outflow of resources will be required to settle the
obligation; and the amount has been reliably estimated. Provision for legal claims are recognized
when management of the Company estimates that it is probable that an outflow of resources will be
required to settle the legal claim.
Contingent liablities are recognized in the financial statements. Contingent liablities are disclosed in
the notes to financial statements, except in case when there is probability that an outflow of
resources will be insignificant.
Contingent assets are recognized in financial statemnts. Contingent assets are disclosed in the notes
to financial statements only in case when there is probability that an inflow of resources will be
significant. 3.20. Fair value Business policy of the Company requires for Company to disclose information about fair value of assets and liabilities for which available official market information exist and when there is indication that the fair value significantly differ from the carrying value in Company records. The Company management estimates risk related to the possibility that assets carrying value will not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. According to management opinion, amounts disclosed in these financial statements reflect values
that are, in the given circumstances, most appropriate for the reporting purposes.
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
18
4. Income (in Eur)
Service income 2015. 2014.
Service income on domestic market 4.515.576 4.444.497 Service income on foreign market 684.483 405.530
5.200.059
4.850.027
5. Cost of services rendered (in Eur) 2015. 2014.
Cost of services on domestic market 564.744 438.847
Cost of services on foreign market 1.027.272 824.689
1.592.016
1.263.536
6. Cost of materials, fuels and energy (in Eur) 2015. 2014.
Office expenses 40.905 40.177
Other materials 3.243 3.334
Fuel and lubricants 66.897 73.591
Used fuels and energy 33.696 44.507
144.741
161.609
7. Employees expenses (in Eur) 2015. 2014.
Salaries-gross 1.375.513 1.496.914 Social contributions paid by employer 165.170 159.144 Redundancy payment- net 20.061 54.618 Jubilee awards 3.900 1.000 Other payments to employees 10.239 9.086
Daily allowances and transportation cost for business trips 33.953 32.053
Costs of unused annual holidays 25.054 39.358
1.633.890
1.792.173
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
19
8. Depreciation and provision (in Eur) 2015. 2014.
Depreciation of PPE 428.049 449.221
Depreciation of intangible assets 2.438 2.610
Provision cost- court claims 10.000 -
440.487
451.831
Depreciation costs for 2015. in amount of 430.487 € (2014: 451.831 €) have been calculated in accordance with the Note 3.9. 9. Other operating expenses (in Eur) 2015. 2014.
Representation 41.065 21.987
Phone 62.622 65.991
Intereuropa related expenses 72.161 71.717
Cost related to regional manager of Intereuropa 57.122 57.217
Maintenance 72.425 63.132
Rentals 105.950 106.473
Advertising 20.239 9.805
Insurance premiums 26.679 18.811
Lawyer and audit services 20.108 23.834
Consulting costs 131.850 21.081
Services from students and other similar organizations 18.072 60.382
Utilities 24.144 34.235
Security 42.809 23.747
Other services 16.941 23.217
Sponsorship 31.635 14.700
Transaction and bank fees 10.921 12.800
Commision fee of guarantees 40.774 41.065
Court and other taxes 2.740 7.992
Taxes 72.891 73.296
Previous years expenses 18.167 7.655
Registration, municipality services and others 38.725 43.745
928.040
802.882
10. Financial incomes and expenses
(in Eur) 2015. 2014.
Financial incomes Interest income 51.884 72.714 Financial expenses -
-
Net financial income
51.884
72.714
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
20
11. Other incomes (in Eur) 2015. 2014.
Inventory surplus - Gains from sale of property and equipment 712 8.796 Collection of bad debts 457.415 463.958 Collection of written off receivables 7.730 1.839 Income from sales of securities 2.818 - Income from prior years 101 51 Release of lonfg term provision - 27.091 Other incomes 2.723 3.250
471.499
504.985
12. Other expenses (in Eur) 2015. 2014.
Write off of trade receivables overdue more 180 days 389.211 464.593
Write off uncollectible receivables - 98
Write off and disposal of PPE - 50
Write off goods 63.811 574
453.022
465.315
13. Income tax
(in Eur)
2015. 2014.
Current tax 31.798 65.755
Deferred tax 11.555 14.092
43.353
79.847
Following table represent the adjustment of the income tax in accordance to the financial statements
and tax statements:
(in Eur)
2015. 2014.
Profit before tax 490.380
Tax calculated at 9% 47.812 44.134
Tax effects of the expenses not recognized for taxable purposes (4.459) 35.713
Incomes recognized as an deduction of tax base (11.555) (14.092)
Current tax
31.798
65.755
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
21
14. Earnings per share
(in Eur)
2015. 2014.
Profit after tax 487.893 410.533
Number of shares 8.220.912 8.220.912
0,0593
0,0499
15. Intangible assets
(in Eur)
Software Licences Total
Cost
As of 1.01. 2015. 27.579 11.897 39.476
Addition 40.305 704 41.009
Write off (975) - (975)
As of 31.12. 2015. 66.909 12.601 79.510
Accumulated depreciation
As of 1.01. 2015. 26.931 7.300 34.231
Write off (975) - (975)
Depreciation charge for 2015. - 2.438 2.438
As of 31.12.2015. 25.956 9.738 35.694
Net book amount
as of 31.12.2015. 40.953 2.863 43.816
Net book amount
as of 31.12. 2014. 648 4.597 5.245
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
22
16. Property and equipment
Changes in property and equipment during 2015 are presented in the following table:
(in Eur)
Land Buindings Equipment
and
vehicles
Investm
in third
party
assets
Tools Construc
tion in
progress
Total
Cost
As of 1.01. 2015. 6.037.474 14.888.446 1.266.374 35.251 123.636 83.499 22.434.680
Addition - 7.173 52.039 - - 113.191 172.403
Transfer - 157.302 - - - (157.302) -
Prenos na AVR - - - (9.909) - - (9.909)
Sale - - (2.860) - - - (2.860)
Write off - (1.080) (15.036) (25.342) (118.212) - (159.670)
As of 31.12. 2015. 6.037.474 15.051.841 1.300.517 - 5.424 39.388 22.434.644
Accumulated
Depreciation
As of 1.01. 2015. - 2.943.398 1.045.394 22.210 118.212 - 4.129.214
Depreciation charge
for 2015 - 348.071 76.846 3.132 - - 428.049
Sale - - (2.860) - - - (2.860)
Write off - (1.012) (15.036) (25.342) (118.212) - (159.602)
As of 31.12. 2015. - 3.290.457 1.104.344 - - - 4.394.801
Net book amount
As of 31.12.2015. 6.037.474 11.761.384 196.173 - 5.424 39.388 18.039.843
Net book amount
As of 31.12 2014. 6.037.474 11.945.048 220.980 13.041 5.424 83.499 18.305.466
17. Non current assets held-for-sale (in Eur) 2015. 2014.
Business premises in Sarajevo, Federation of
Bosnia and Hercegovina 105.656 105.656
Business premises in Priština, Kosovo 77.477 77.477
183.133 212.714
Impairment according to the Decision (183.133) (212.714)
As of 31. December - -
. In 2012. impairment of value of non current assets held for sale has been perfromed in accordance
with the Decision of Board of Directors which relates to impairment of business premises outside
Montenegro for which acquring over full disposition of the property is in process with relevant legal
authorities
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
23
18. Long term financial placements available for sale
(in Eur) 2015. 2014.
Novi prvoborac AD Herceg Novi - 794
Luka Bar AD Bar 758 4.900
Kontejnerski terminal ad, Bar 490 620
Montenegrobanka ad, Podgorica 194 292
1.442
6.606
Subsequent measurement of available-for-sale financial instruments has been performed as of 31.12.2015. at fair value. Changes in the fair value of investments classified as available-for-sale are recognized in equity. 19. Inventory (in Eur) 2015. 2014.
Goods for wholesale 54.345 114.459
Materials - 85
Prepayments 30.030 229.399
Impairment of prepayments - (117.984)
84.375
225.959
20. Trade receivables
(u Eur) 2015. 2014.
Trade receivables: Domestic 1.571.342 1.590.669 Foreign 139.603 35.255 Minus: Impairment (267.708) (390.741)
1.443.237 1.235.183
Receivables from employees 65.025 51.533
Receivables for interest 31.156 17.772
Receivables for prepaid surtax 991 991
Receivables from refund of sick leave 72.025 63.297
Other receivables 706.792 549.990
875.989 683.583
2.319.226 1.918.766
Other receivables in amount of 706.792 € (in 2014. they were 549.990€) represent debt taken from
A-KOP ltd Podgorica in amount of 549.990 €, by Agreement of Cession from 26.03.2014. and
Agreement on assumption of debt fro 31.05.2013. There was a mortgage (Mortgage Agreement UZZ
321/2014, of 01.06.2014.) as a collateral in favor of Zetatrans JSC, Podgorica.
Other receivables including customs duty,paid in favour of Vuk Petrol Ltd, Kotor in amount of
145.213 € and receivables from one person, in amount of 11.589 € are both secured by a mortgage.
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
24
Following table represents the aging structure of receivables:
(in Eur)
2015.
Undue receivables 314.733
Receivables overdue up to 30 daysa 291.796
Receivables overdue from 31 to 60 days 128.010
Receivables overdue from 61 to 90 days 166.450
Receivables overdue from 91 to 180 days 163.283
Receivables overdue from 181 to 364 days 484.707
Receivables overdue from 1 to 3 years 136.950
Receivables overdue over 3 years 25.016
Trade receivables - gross
1.710.945
Movements in the provision for impairment loss for trade receivables during 2015 and 2014. are
presented in the following table:
(in Eur) 2015. 2014.
As of 1. January 508.725 579.094
Collected during the year (Note 4) 457.415 (463.958)
Additional provision during the year (Note 8) 389.211 464.593
Write off (172.813) (71.364)
As of 31. December
267.708
508.725
21. Short term financial placements
Short term financial placements as of 31.12.2015. in amount of 1.430.000 € (2014. 1.600.000 €)
relate to term deposits in:
- Prva banka JSC Podgorica, the placement in amount of 1,100,000 € has been deposited
1.04.2015. for 12 month with interest rate of 3.80 % p.a;
- Zapad Bank JSC, Podgorica, the placement in amount of 330,000 € has been deposited
21.10.2015. for 366 days with interest rate of 2,10 % p.a;
22. Cash and cash equivalents
(in Eur) 2015. 2014.
Petty cash 1.375 2.916 Gyro accounts 156.995 185.326 Foreign account 26.050 10.292 Other cash assets – letter of credit 13.065 2.448
197.485 200.982 Term deposits
Foreign exchange accounts held with foreign banks 1.150.936 1.150.936 Minus: Impairment (1.150.936) (1.150.936)
- -
197.485 200.982
Foreign exchange accounts held with foreign banks in amount of 1.150.936 € as of 31.12.2015.
represents amounts deposited with LHB International Handelsbank AG, Frankfurt am Main, Germany
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
25
in amount of 1.181.885 USD and 236.969 €, which have been blocked in accordnace with order from
High state prosecutor of Germany. (Accoring to Decision of National Court in Augsburg, funds are
deposited with the Court). Until the date of preparation of these financial statements, Company still
does not have disposition over stated amounts.
23. Share equity
Structure of shareholders equity as of 31.12.2015. and 31.12.2014. as registered in Central Depository
Agency is presented in following table: (in Eur) 31.December 2015. 31. December 2014.
No of
shares
Nominal
value
% No of
shares
Nominal
value
%
Legal entities
Intereuropa d.d. Kopar 5.694.425 7.279.183 69.27 5.694.425 7.279.183 69,27
Zetagradnja doo. Podgorica 187.706 239.945 2.28 187.706 239.945 2,28
Zveza bank RZZOJ, Austria 67.481 86.261 0.82 67.481 86.261 0,82
EK - Custody account 1 42.898 54.837 0.52 - - -
MK Invest 25.736 32.898 0.31 23.386 29.894 0,28
Custody account 5 16.290 20.823 0.20 16.290 20.823 0,20
CG Broker-diler AD 22.807 29.154 0.28 14.185 18.133 0,17
Others 14.526 18.569 0.18 14.420 18.203 0,18
6.071.869 7.761.670 73,86 6.017.713 7.692.442 73,20
Individuals 2.149.043 2.747.122 26.14 2.203.199 2.816.349 26,80
8.220.912 10.508.792 100,00 8.220.912 10.508.792 100,00
Nominal value of share is 1,2783 €. All shares have been issued as ordinary and registered with Central Depository Agency. Zetatrans
shares are quoted on Stock markets in Montnegro. Fair value per share as of 31.12.2015. amounts to
0,6200 € (in 31.12.2014. amounted 0,7600 €).
Shareholders Assembly as of 12.06.2015. adopted Decision on dividends payment from profit in
amount of 657.673 Eur. Dividenst can be collected by shareloders existed as of 12.06.2015. according
to the register from Central Depository Agency.
Changes in shareholders equity in 2015 and 2014 are presented in the Statement of changes in equity.
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
26
24. Long term provision (in Eur)
2015. 2014.
Provision for legal claims 10.000 - Employee benefits Redundancy payments 11.527 11.527 Jubilee awards 16.182 16.182 As of 31. December
37.709
27.709
Changes in long term provision during 2015 were as follows:
(in Eur) Collected during the year (Note 4) Provision
for legal
claims
Redundancy
payments
Jubilee
awards
As of 1. January - 11.527 16.182
Increase during the year 10.000 - -
Decrease of provision - - -
Increase/Decrease based on the assesement of actuary - - -
As of 31. December 10.000 11.527 16.182
25. Short term trade payables
(in Eur) 2015. 2014.
Trade payables Advances received 11.846 38.331
Trade payables- domestic 274.173 232.529 Trade payables- foreign 190.636 164.071 Related parties 44.764 38.737
Liabilities for guarantees 14.290 27.475
535.709
501.143
Following table represents the aging structure of payables:
(in Eur)
2015.
Undue payables 217.383
Payables overdue up to 30 days 201.235
Payables overdue from 31 do 60 days 21.879
Payables overdue from 61 do 90 days 53.175
Payables overdue from 91 do 180 days 6.704
Payables overdue from 181 do 364 days 8.422
More than 1 year 775
Total trade payables- domestic and foreign 509.573
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
27
26. Other short term liabilities and accruals (in Eur) 2015. 2014.
Liabilities for net salaries 80.291 82.313 Liabilities for personal income tax 23.027 13.061
Social contributions payable by employees 48.112 29.655
Social contribuations payable by employer 15.235 15.790
Costs of unused annual holidays 25.054 39.358
Liabilities for dividends 409.026 407.927
Liabilities for redudancy 9.000 -
Witholding tax on dividends 38.521 38.439
Deferred income 5.701 -
Other liabilities 5.022 6.082
658.989
632.625
Liabilities related to taxes and contrubutions relate to unpaid salaries for December 2015.
Liabilities for dividens mainly relate to unpiad dividends from profit distibution in 2007, 2008, 2009,
2010, 2011,2012, 2013 and 2014.
27. Related party transactions (in Eur) 2015. 2014.
Service incomes
Intereuropa d.d. Koper 59.929 81.749
Intereuropa Skoplje 36.001 -
Intereuropa RTC d.d. Sarajevo 202 676
AD Intereuropa logističke usluge, Beograd 31.621 34.388
Intereuropa Kosova L.L.C. Priština 708 801
Intereuropa logisičke usluge d.o.o. Zagreb 2.825 9.177
131.286 126.791
Service expences
Intereuropa d.d. Koper 162.043 277.380
Intereuropa RTC d.d. Sarajevo - 470
AD Intereuropa logističke usluge, Beograd 54.910 47.074
Intereuropa d.o.o. Zagreb 1.415 949
Intereuropa Kosova L.L.C. Priština 60 59
218.428 325.932
(in Eur) 2015. 2014.
Receivable balances
Intereuropa d.d. Kopar 25.804 3.339
Intereuropa logističke usluge doo Zagreb 1.675 -
AD Intereuropa logističke usluge, Beograd 5.478 5.563
Intereuropa RTC d.d. Sarajevo 126 -
Intereuropa Kosovo L.L.C. Priština 129 -
33.212 8.902
Payable balances
Intereuropa d.d. Kopar 39.997 32.916
AD Intereuropa logističke usluge, Beograd 7.525 5.758
Intereuropa d.o.o. Zagreb 242 63
44.764 38.737
“ZETATRANS” JSC, PODGORICA
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.
28
28. Court claims
As of 31.12.2015, there were court claims proceedings against the Company from five former
employees. A contingent liability is estimated at 35.000 €. This loss (contingent liability) includes
compensation for damages salary reimbursement and annulment of the termination of employment
notices. The Company has set aside a provision in amount of 10.000 €. (Remark 24.)
The Company will not be exposed to other losses that would have material impact in this relation.
Court cases initiated by the Company mainly relate to uncollected receivables from business
transactions. The value of court claims on 31.12.2015. amounts to 688.644 €.
29. Contingent liabilities
The Company issued guarantees (custom guarantees) in amount of 3.340.000 EUR. This guarantee is
secured by mortgages on company real estates, registered in the immovable property no 333 KO
Dajbabe, in favor of the issuer AD NLB Montenegro, Podgorica. Management of the Company does
not expect to be exposed significantly on potential obligations based on issued guarantees.
30. Foreign exchange
Official foreign exchage rate for USD that was used during preparation of these financial statements as
of 31.12.2015. amounted to 0,9152 EUR (as of 31.12. 2014. amounted EUR 0,82236).