TIDM74JJ
RNS Number : 2091N
Petrol AD
30 August 2011
Consolidated financial statements
as of June 30, 2011
and Notes to the consolidated financial statements
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended June 30, 2011
Six Six
months months Three Three
ended ended months months
June June ended ended
30, 30, June June
2011 2010 30, 2011 30, 2010
Note BGN'000 BGN'000 BGN'000 BGN'000
Revenue 6 634,701 505,506 341,205 267,210
Other income 7 1,607 2,048 808 1,036
Cost of goods sold (590,227) (459,776) (322,922) (245,386)
Materials and consumables 8 (4,339) (4,655) (2,045) (2,149)
Hired services 9 (13,313) (15,467) (7,730) (8,267)
Employee benefits expenses 10 (12,784) (10,715) (6,445) (5,472)
Depreciation and
amortization expenses 14 (7,668) (7,462) (3,713) (3,545)
Other expenses 11 (4,646) (2,371) (3,173) (1,291)
Finance income 12 29,351 3,369 4,508 1,787
Finance costs 12 (16,061) (22,374) (8,725) (12,936)
Share of profit of
associates 16 - 130 - 24
--------- --------- --------- ---------
Profit (loss) before
taxes 16,621 (11,767) (8,232) (8,989)
Income tax benefit
(expense) 13 (375) 845 607 752
--------- --------- --------- ---------
Net profit (loss) for
the period 16,246 (10,922) (7,625) (8,237)
--------- --------- --------- ---------
Attributable to:
Owners of the Parent
company 16,237 (10,831) (7,626) (8,172)
Non-controlling
interest 9 (91) 1 (65)
--------- ---------
Total comprehensive
income for the period 16,246 (10,922) (7,625) (8,237)
========= ========= ========= =========
These consolidated financial statements have been approved on
behalf of Petrol AD by:
Svetoslav Yordanov Daniela Taskova-Stoykova
Executive Director Chief Accountant
August 29, 2011
(The accompanying notes from page 8 to page 39 are an integral
part of these consolidated financial statements)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of June 30, 2011
March December
June 30, 31, 31,
2011 2011 2010
Note BGN'000 BGN'000 BGN'000
Non-current assets
Property, plant and equipment
and intangible assets 14 168,430 171,631 174,284
Investment properties 15 28,272 28,373 28,470
Goodwill 18 18,332 18,332 18,332
Deferred tax assets 13 1,911 852 1,344
Loans granted 19 9,213 7,124 34,902
Compulsory inventory 20 63,980 34,939 34,939
--------
Total non-current assets 290,138 261,251 292,271
-------- -------- --------
Current assets
Inventories 20 31,383 47,632 77,733
Loans granted 19 94,055 93,679 94,437
Trade and other receivables 21 102,603 112,516 83,181
Current income tax receivable 29 267 - -
Cash 22 65,675 7,555 11,321
--------
Total current assets 293,983 261,382 266,672
-------- -------- --------
Total assets 584,121 522,633 558,943
======== ======== ========
Shareholder's equity
Share capital 23 76,401 76,401 76,401
Reserve from adoption
of IFRS 24 18,378 20,436 20,456
Legal reserves 18,864 18,914 18,914
Accumulated loss (63,162) (57,564) (81,177)
-------- -------- --------
Total equity, attributable
the owners of the Parent
Company 50,481 58,187 34,594
-------- -------- --------
Non-controlling interest 52 4,579 4,301
-------- -------- --------
Total equity and reserves 50,533 62,766 38,895
--------
Non-current liabilities
Borrowings 25 42,672 43,090 43,485
Obligations under finance
lease 26 1,793 2,021 2,379
Retirement benefits obligations 27 190 190 190
Total non-current liabilities 44,655 45,301 46,054
-------- -------- --------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of June 30, 2010 (continued)
June March December
30, 31, 31,
2011 2011 2010
Note BGN'000 BGN'000 BGN'000
Current liabilities
Trade and other payables 28 202,871 204,819 228,620
Borrowings 25 284,716 205,527 240,207
Obligations under finance
lease 26 1,325 1,483 1,517
Retirement benefits obligations 27 21 21 21
Current income tax payable 29 - 2,716 3,629
--------
Total current liabilities 488,933 414,566 473,994
-------- -------- --------
Total liabilities 533,588 459,867 520,048
-------- -------- --------
Total equity and liabilities 584,121 522,633 558,943
======== ======== ========
These consolidated financial statements have been approved on
behalf of Petrol AD by:
Svetoslav Yordanov Daniela Taskova-Stoykova
Executive Director Chief Accountant
August 29, 2011
(The accompanying notes from page 8 to page 39 are an integral
part of these consolidated financial statements)
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY
For the period ended June 30, 2011
Non-controlling Total
Equity attributable to the Interest equity
owners of the Parent Company BGN'000 BGN'000
Reserve
from
Share adoption Legal Accumulated
Capital of IFRS reserves loss Total
BGN'000 BGN'000 BGN'000 BGN'000 BGN'000
Balance at
January 1,
2010 76,401 20,657 18,914 (83,918) 32,054 (101) 31,953
Loss for
the period - - - (10,831) (10,831) (91) (10,922)
Total
comprehensive
income - - - (10,831) (10,831) (91) (10,922)
-------- --------- --------- ------------ --------- ---------------- ---------
Reserve of
disposed
assets - (201) - 201 - - -
-------- --------- --------- ------------ --------- ---------------- ---------
Balance at
June 30,
2010 76,401 20,456 18,914 (94,548) 21,223 (192) 21,031
======== ========= ========= ============ ========= ================ =========
Profit for
the period - - - 13,137 13,137 (108) 13,029
Total
comprehensive
income - - - 13,137 13,137 (108) 13,029
-------- --------- --------- ------------ --------- ---------------- ---------
Acquisition of
non-controlling
interest in
acquired
subsidiaries - - - - - 4,601 4,601
Dividends
payable written
off - - - 234 234 - 234
Balance at
December
31, 2010 76,401 20,456 18,914 (81,177) 34,594 4,301 38,895
======== ========= ========= ============ ========= ================ =========
Profit for
the period - - - 16,237 16,237 9 16,246
Total
comprehensive
income - - - 16,237 16,237 9 16,246
-------- --------- --------- ------------ --------- ---------------- ---------
Acquisition
of additional
share in
subsidiary - - - (286) (286) (4,258) (4,544)
Dividends
paid - - - (64) (64) - (64)
Recovered
loss - - (50) 50 - - -
Reserve of
disposed
assets - (2,078) - 2,078 - - -
-------- --------- --------- ------------ --------- ---------------- ---------
Balance at
June 30,
2011 76,401 18,378 18,864 (63,162) 50,481 52 50,533
======== ========= ========= ============ ========= ================ =========
These consolidated financial statements have been approved on
behalf of Petrol AD by:
Svetoslav Yordanov Daniela Taskova-Stoykova
Executive Director Chief Accountant
August 29, 2011
(The accompanying notes from page 8 to page 39 are an integral
part of these consolidated financial statements)
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended June 30, 2010
Six Six Three Three
months months months months
ended ended ended ended
June June June June
30, 30, 30, 30,
2011 2010 2011 2010
BGN'000 BGN'000 BGN'000 BGN'000
Cash flows from operating
activities
Net profit (loss) before
taxes 16,621 (10,831) (8,232) (8,053)
Adjustments for:
Depreciation/amortisation
of property, plant and
equipment and intangible
assets 7,668 7,462 3,713 3,545
Interest expense, bank
fees and commissions,
net 10,662 8,187 3,544 4,255
Shortages and normal loss,
net of excess assets 602 171 28 256
Provisions for unused
paid leave and retirement
benefits 372 287 100 218
Impairment of assets (1) - - -
Loss (gain) on liquidation
of assets 1,431 138 1,452 (85)
Net effect from applying
the equity method - (130) - (24)
Loss on transactions with
derivative - 121 - 121
Gain on sale of property,
plant and equipment 290 (284) 429 (154)
Gain on redeemed bonds (17,365) - - -
Unrealised foreign exchange
differences (1,542) 2,648 255 2,603
--------- ---------
Cash flows provided by
operating activities 18,738 7,769 1,289 2,682
Increase (decrease) in
trade payables (4,716) 7,687 (4,956) 11,955
Decrease (increase) in
inventories 16,707 (17,846) (12,820) (13,005)
Decrease (increase) in
trade receivables (19,274) 7,382 11,791 4,287
--------- --------- --------- ---------
Cash flows provided by
(used in) operating activities 11,455 4,992 (4,696) 5,919
Interest and bank fees
and commissions paid (6,784) (2,124) (3,717) (1,142)
Income taxes paid (4,756) (907) (3,354) (62)
--------- --------- --------- ---------
Net cash provided by (used
in) operating activities (85) 1,961 (11,767) 4,715
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended June 30, 2010 (continued)
Six Six Three Three
months months months months
ended ended ended ended
June June June June
30, 30, 30, 30,
2011 2010 2011 2010
BGN'000 BGN'000 BGN'000 BGN'000
Cash flows from investing
activities
Payments for acquisition
of property, plant and
equipment and intangible
assets (3,183) (4,225) (1,982) (1,276)
Proceeds from sale of
property, plant and equipment 519 452 236 293
Interest received on loans
and deposits granted 876 441 112 433
Net payments from transactions
with derivatives - (121) - (121)
Proceeds from (payments
for) loans and deposits
granted, net (12,507) (13,097) (5,828) (7,521)
--------- ---------
Net cash provided by (used
in) investing activities (14,295) (16,550) (7,462) (8,192)
Cash flows from financing
activities
Proceeds from bank and
trade loans 23,504 2,177 19,166 (2,790)
Payments for bank and
trade loans and bond issue (12,912) (232) (788) 251
Payments on leaseback
agreements (655) - (365) -
Dividends paid (1) (1) - -
Lease payments (778) (932) (386) (466)
--------- ---------
Net cash provided by (used
in) financing activities 9,158 1,012 17,627 (3,005)
Net decrease in cash and
cash equivalents for the
period (5,222) (13,577) (1,602) (6,482)
Cash and cash equivalents
at the beginning of the
period 11,172 18,932 7,552 11,837
--------- ---------
Cash and cash equivalents
at the end of the period
(see also note 22) 5,950 5,355 5,950 5,355
========= ========= ========= =========
These consolidated financial statements have been approved on
behalf of Petrol AD by:
Svetoslav Yordanov Daniela Taskova-Stoykova
Executive Director Chief Accountant
August 29, 2011
(The accompanying notes from page 8 to page 39 are an integral
part of these consolidated financial statements)
Notes
to the consolidated financial statements
as of June 30, 2011
1. Legal status
Petrol AD (the Parent Company) is registered in the city of
Sofia. The registered office of the Parent Company is 43 Cherni
Vruh Blvd, Sofia city. As of June 30, 2011 the majority shareholder
of Petrol AD is Petrol Holding AD with 55.48% ownership of the
share capital (see also note 23).
As of July 1, 1998 Petrol AD is registered as a public company
in the public register of the Financial Supervision Commission.
The main activities of Petrol AD and its subsidiaries (the
Group) are retail and wholesale of oil and non-oil products,
rendering of transport and maintenance services. The Parent Company
is one of the oldest commercial companies in Bulgaria and owns the
largest network of fuel stations in the country.
These consolidated financial statements were approved for issue
by the Management on August 29, 2011.
2. Basis for preparation of the consolidated financial
statements and accounting principles
2.1. General
These financial statements are prepared in accordance with
International Financial Reporting Standards (IFRS), issued by the
International Accounting Standards Board (IASB) and the
interpretations, issued by the International Financial Reporting
Interpretations Committee (IFRIC), as approved by the European
Union (the EU) and applicable in the Republic of Bulgaria.
These financial statements have been prepared on the historical
cost basis.
2.2. Applying new and revised IFRS
2.2.1. Standards and Interpretations effective and adopted in
the current period
The following amendments to the existing standards issued by the
IASB and adopted by the EU are effective for reporting periods
beginning on or after 1 January 2011:
-- Amendments to IAS 24 Related Party Disclosures - Simplifying
the disclosure requirements for government-related entities and
clarifying the definition of a related party, adopted by the EU on
19 July 2010 (effective for annual periods beginning on or after 1
January 2011),
-- Amendments to IAS 32 Financial Instruments:Presentation -
Accounting for rights issues, adopted by the EU on 23 December 2009
(effective for annual periods beginning on or after 1 February
2010),
-- Amendments to IFRS 1 First-time Adoption of IFRS - Limited
Exemption from Comparative IFRS 7 Disclosures for First-time
Adopters, adopted by the EU on 30 June 2010 (effective for annual
periods beginning on or after 1 July 2010),
-- Amendments to IFRIC 14 IAS 19 - The Limit on a defined
benefit Asset, Minimum Funding Requirements and their Interaction -
Prepayments of a Minimum Funding Requirement, adopted by the EU on
19 July 2010(effective for annual periods beginning on or after 1
January 2011),
-- Amendments to various standards and interpretations
"Improvements to IFRSs (2010)" resulting from the annual
improvement project of IFRS published on 6 May 2010 (IFRS 1, IFRS
3, IFRS 7, IAS 1, IAS 27, IAS 34, IFRIC 13) primarily with a view
to removing inconsistencies and clarifying wording, adopted by the
EU on 18 February 2011(amendments are to be applied for annual
periods beginning on or after 1 July 2010 or 1 January 2011
depending on standard/interpretation),
-- IFRIC 19 Extinguishing Financial Liabilities with Equity
Instruments, adopted by the EU on 23 July 2010 (effective for
annual periods beginning on or after 1 July 2010).
2.2.1. Standards and Interpretations effective and adopted in
the current period (continued)
The adoption of the above amendments has not led to any changes
in the Group's accounting policies.
2.2.2. Standards and Interpretations issued by IASB but not yet
adopted
At present, IFRS as adopted by the EU do not significantly
differ from regulations adopted by the International Accounting
Standards Board (IASB) except from the following standards,
amendments to the existing standards and interpretations, which
were not endorsed for use as of the date of authorisation of these
financial statements:
-- IFRS 9 Financial Instruments (effective for annual periods
beginning on or after 1 January 2013),
-- Amendments to IFRS 1 First-time Adoption of IFRS - Severe
Hyperinflation and Removal of Fixed Dates for First-time Adopters
(effective for annual periods beginning on or after 1 July
2011),
-- Amendments to IFRS 7 Financial Instruments: Disclosures -
Transfers of Financial Assets (effective for annual periods
beginning on or after 1 July 2011),
-- Amendments to IAS 12 Income Taxes - Deferred Tax: Recovery of
Underlying Assets (effective for annual periods beginning on or
after 1 January 2012).
-- IFRS 10 Consolidated Financial Statements (effective for
annual periods beginning on or after 1 January 2013),
-- IFRS 11 Joint Arrangements (effective for annual periods
beginning on or after 1 January 2013),
-- IFRS 12 Disclosure of Interests in Other Entities(effective
for annual periods beginning on or after 1 January 2013),
-- IFRS 13 Fair Value Measurement (effective for annual periods
beginning on or after 1 January 2013),
-- Amendments to IAS 27 Separate Financial Statements (effective
for annual periods beginning on or after 1 January 2013),
-- Amendments to IAS 28 Investments in Associates and Joint
Ventures (effective for annual periods beginning on or after 1
January 2013),
The Group anticipates that the adoption of these standards,
amendments to the existing standards and interpretations will have
no material impact on the financial statements of the Group in the
period of initial application.
At the same time, hedge accounting regarding the portfolio of
financial assets and liabilities, whose principles have not been
adopted by the EU, is still unregulated.
According to the Group's estimates, application of hedge
accounting for the portfolio of financial assets or liabilities
pursuant to IAS 39: Financial Instruments: Recognition and
Measurement, would not significantly impact the financial
statements, if applied as at the reporting date.
2.3. Functional and presentation currency of the consolidated
financial statements
Functional currency is the currency of the primary economic
environment in which an entity operates and in which it primary
generates and expends cash. An entity's functional currency
reflects the major transactions, events and conditions that are
significant to the Group.
The Group keeps its records and prepares its financial
statements in the national currency of the Republic of Bulgaria -
the Bulgarian Lev, which is adopted by the Group as its functional
currency.
These consolidated financial statements are presented in
thousand Bulgarian Levs.
2.4. Foreign currency
Transactions in foreign currency are initially recorded at the
official rate of exchange of the Bulgarian National Bank (BNB) as
of the date of the transaction. The foreign exchange rate
differences, arising upon the settlement of these monetary
positions or at restatement of these positions at rates, different
from those when initially recorded, are reported in profit or loss
for the period in which they arise.
The monetary positions denominated in foreign currency as of
June 30, 2011, March 31, 2011 and December 31, 2010 are stated in
these consolidated financial statements at the closing exchange
rate of BNB. The closing exchange rates of BGN against USD for the
respective reporting period of the consolidated financial
statements are as follows:
2.4. Foreign currency (continued)
June 30, 2011: 1 USD = BGN 1.35323
March 31, 2011: 1 USD = BGN 1.37667
December 31, 2010: 1 USD = BGN 1.47276
2.5. Accounting estimates and reasonable assumptions
The preparation of consolidatedfinancial statements in
accordance with IFRS requires management to make certain accounting
estimates and reasonable assumptions that affect some of the
reported amounts of assets, liabilities, revenues and expenses.
These estimates and assumptions are based on the best estimate of
management, taking into account historical experience and analysis
of all factors of significance in the circumstances as of the date
of the consolidatedfinancial statements. The actual results could
differ from those estimates, presented in these consolidated
financial statements.
2.6. Subsidiary companies and consolidation
The consolidated financial statements incorporate the financial
statements of the Parent company and its subsidiaries. A subsidiary
is an entity that is controlled by the Parent company. Control is
the power to govern the financial and operating policies of an
enterprise, so as to obtain benefits from its activities.
In compliance with SIC 12 Consolidation - Special Purpose
Entities, the financial statements of two entities are consolidated
in their capacity of special purpose entities as of January 1, 2009
(see also note 31).
For consolidation purposes, the separate financial statements of
the Parent Company, its subsidiaries and the controlled special
purpose entities have been combined on a line-by-line basis by
adding together items of assets, liabilities, equity, income and
expenses. All intragroup balances as of June 30, 2011, March 31,
2011 and December 31, 2010 and intragroup transactions as of June
30, 2011, March 31, 2011 and 2010, as well as all intragroup
profits and losses, including unrealised profits and losses as of
June 30, 2011, March 31, 2011 and 2010 are eliminated in full. The
carrying amount of the investments in each subsidiary, hold by the
Parent Company or any of the subsidiaries and the Parent Company's
portion of equity of each subsidiary are eliminated.
The results of subsidiaries, which have been acquired or
disposed by the Group during the reporting period, are included in
the consolidated statement of comprehensive income from the date of
the acquisition, till the date at which control ceases.
Non-controlling interest is the equity in a subsidiary not
attributable, directly or indirectly to the Parent Company.
Non-controlling interest is represented within equity in the
consolidated statement of financial position, separately from the
equity of the owners of the parent. In each business combination
the acquirer measure any non-controlling interest in the acquiree
either at fair value or by the proportional share of the
non-controlling interest in the identifiable net assets of the
acquiree.
2.6. Subsidiary companies and consolidation (continued)
Profit or loss or any component of the other comprehensive
income is attributed to the owners of the Parent Company and
non-controlling interests. The total comprehensive income is
attributable to the owners of the Parent Company and
non-controlling interests even if this results in the
non-controlling interests having a deficit balance.
2.7. Associates
An associate is an enterprise over which the Group has
significant influence. Significant influence is the right of
participation in, but not control over, the financial and operating
policy decisions of the investee.
Investments in associates are presented in the statement of
financial position in accordance with IAS 28 Investments in
Associates, using the equity method of accounting, according to
which the investment is recorded initially at cost and adjusted by
post-acquisition changes in the investor's share in the net assets
of the associate.
2.8. Goodwill
Goodwill, arisen in business combination, is recognised as an
asset at the date when control over the company, subject to
business combination, is acquired. Goodwill represents the excess
of the aggregate of the consideration transferred, the amount of
any non-controlling interest in the acquiree and the acquisition
date fair value of the acquirer's previously held equity interest
in the acquiree over the net acquisition date amounts of the
identifiable assets acquired and the liabilities assumed. When the
acquisition cost is lower than the fair value of the net assets
acquired by the Group, the acquirer should reassess the
identification and measurement of the acquiree's identifiable
assets, liabilities and the cost of the business combination and
any excess remaining after that reassessment should be recognised
immediately in profit or loss.
Subsequent to its initial recognition goodwill is not amortised,
in compliance with IFRS 3 Business combinations, applicable for
reporting periods after March 31, 2004. At the end of each
reporting period a test for impairment is performed (see also note
4).
3. Definition and valuation of the statement of financial
position and the statement of comprehensive income items
3.1. Property, plant and equipment and intangible assets
Property, plant and equipment and intangible assets are
initially carried at acquisition cost, including the purchase
price, import duties and non-refundable taxes, as well as any costs
directly attributable to bringing the asset to the location and
condition necessary for it to be capable of operating in the manner
intended by management. After initial recognition, property, plant
and equipment and intangible assets are stated at cost less
accumulated depreciation/amortisation and impairment loss, if any
(see also note 3.3).
When property, plant and equipment include significant items
having various useful lives, such items are reported as separate
assets.
Subsequent costs, including costs for replacement of components
of property, plant and equipment are capitalised in the amount of
the asset, if they satisfy the recognition principle. The carrying
amount of the replaced item is derecognised in accordance with the
requirements of IAS 16 Property, Plant and Equipment. All other
subsequent costs are recognised as expenses for the period as
incurred.
3.1. Property, plant and equipment and intangible assets
(continued)
Depreciation and amortisation are charged over the estimated
useful lives, using the straight-line method.
As of the end of each reporting period, the Group's management
reviews useful lives and amortisation/depreciation methods of the
property, plant and equipment and intangible assets. If differences
between expectations and previous estimates are identified, changes
are made in accordance with IAS 8 Accounting Policies, Changes in
Accounting Estimates and Errors.
The assets' estimated useful lives are as follows:
Useful life 2011 2010
Administrative and trade 25 years 25 years
buildings
Property, plant and equipment 2 - 25 years 2 - 25 years
Vehicles 4 - 10 years 4 - 10 years
Office equipment 7 years 7 years
Intangible assets 2 - 7 years 2 - 7 years
Depreciation of an asset begins in the month following the month
in which it is available for use and ceases at the earlier of the
date that the asset is classified as held for sale, in accordance
with IFRS 5 Non-current Assets Held for Sale and Discontinued
Operations and the date of its derecognition.
Land, assets under construction and fully depreciated assets are
not depreciated.
3.2. Investment properties
Investment property is a property held by the Group to
accumulate rent income or to increase the equity value, or both
(including property under construction for future use as investment
property).
Investment property is measured at its cost less any accumulated
depreciation and accumulated impairment losses, if any (see also
3.3).
Depreciation on investment property is charged in profit or loss
by using the straight-line method, based on its estimated useful
live.
The investment property's estimated useful lives are as
follows:
Useful life 2011 2010
Administrative and trade 25 years 25 years
buildings
Machines, plant and equipment 2, 3 and 2, 3 and
25 years 25 years
Office equipment 7 years 7 years
As of the end of each reporting period, the Group's management
reviews useful lives and depreciation methods of the investment
property. If differences between expectations and previous
estimates are identified, changes are made in accordance with IAS 8
Accounting Policies, Changes in Accounting Estimates and
Errors.
3.3. Impairment of property, plant and equipment, intangible
assets and goodwill
As of the end of each reporting period, the Group's management
estimates if there are indications for impairment of property,
plant and equipment, intangible assets and goodwill. If such
indication exists, the recoverable amount of the asset is
estimated. Where it is not possible to estimate the recoverable
amount of an individual asset, the Group estimates the recoverable
amount of the cash-generating unit, to which the asset belongs.
The recoverable amount is the higher of the asset's fair value
less costs to sell the asset and its value in use. If the
recoverable amount of an asset (or cash-generating unit) is
estimated to be less than its carrying amount, the carrying amount
of the asset (cash generating unit) is reduced to its recoverable
amount. Impairment loss is recognised immediately as expense in
profit or loss unless the asset is revalued when the impairment
loss is reported as decrease in the revaluation reserve.
Where an impairment loss subsequently reverses, the carrying
amount of the asset (cash generating unit) is increased to the
revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognised
for the asset (cash generating unit) in prior years. A reversal of
an impairment loss is recognised immediately as income in profit or
loss.
Impairment loss is recognised for a cash-generating unit to
which goodwill was allocated only if the recoverable amount is
lower than its carrying amount. The impairment loss reduces the
carrying amount of the assets in the cash-generating unit, first
the carrying amount of goodwill is reduced and then, the carrying
amount of other assets in the unit, pro rata on the basis of the
carrying amount of each asset to the total amount of the unit. The
impairment loss of goodwill could not be reversed.
3.4. Inventories
Inventories are stated at lower of cost and net realisable
value. Cost comprises purchase price, transportation, customs
duties and other similar costs. Net realisable value represents the
estimated selling price less all estimated costs to be incurred in
selling.
Upon consumption, the cost of inventories is calculated using
the following methods:
Fuel and other Weighted average cost
goods
Materials Weighted average cost
3.5. Financial instruments
A financial instrument is a contract that gives rights to both a
financial asset of one enterprise and a financial liability or
equity instrument of another enterprise.
Financial assets and liabilities are recognised in the statement
of financial position only when the Group becomes a party to the
contractual provisions of the instrument. Financial assets are
removed from the statement of financial position after the
contractual rights for receiving cash flows have expired or the
asset is transferred and the transfer meets the derecognition
requirements under IAS 39 Financial Instruments: Recognition and
Measurement. Financial liability is removed from the statement of
financial position when, and only when, it is extinguished - that
is when the obligation specified in the contract is discharged,
cancelled, or expires.
On initial recognition financial assets (liabilities) are
measured at fair value. Transaction costs, which are directly
attributable to the acquisition or issue of the financial assets
(liabilities), are included in their value, except when the
financial assets (liabilities) are measured at fair value through
profit or loss.
3.5. Financial instruments (continued)
For the purposes of subsequent measurement, in accordance with
the requirements of IAS 39 Financial Instruments: Recognition and
Measurement, the Group classifies the financial assets and
liabilities as: financial assets (liabilities) at fair value
through profit or loss; loans and receivables; financial
liabilities at amortised cost. Classification in the respective
category depends on the terms of the respective contract. The Group
does not apply this classification of the assets and liabilities
for the purposes of presentation in the statement of financial
position
3.5.1. Financial assets (liabilities), measured at fair value
through profit or loss
After their initial recognition these financial assets measured
at fair value though profit or loss are measured at fair value as
of the end of the reporting period and all differences from this
value are recognised in profit or loss for the period in which they
arise.
3.5.2. Loans granted and receivables
Loans granted and receivables are non-derivative financial
assets with fixed or determinable terms for settlement, which are
not quoted on an active market. The assets from this category are
presented in the statement of financial position of the Group as
receivables on interest-bearing loans, trade and other receivables
and cash.
Receivables on interest-bearing loans, trade and other
receivables
After its initial recognition, trade receivables and receivables
on interest bearing loans are measured at amortised cost by using
the effective interest rate method, less impairment loss, if any.
Current receivables are not subject to amortisation. Impairment
loss is accrued if any objective evidence exists, such as
significant financial difficulties of the borrower, probability the
borrower to be entered into liquidation and other (see also note
3.6.3).
Cash
For the purposes of the statement of cash flows preparation,
cash comprise cash in hand, cash at banks and cash in transfer,
with the exception of restricted cash, which the Group temporarily
has no right to use.
3.5.3. Impairment of financial assets
As of the end of the reporting period, the management reviews
whether there is any indication for impairment of all financial
assets, except for financial assets measured at fair value through
profit or loss. Financial assets are impaired only when there is
any objective evidence that as a result of one or more events
occurred after their initial recognition, the expected cash flows
have declined.
If any such evidence exists regarding assets measured at cost,
the impairment loss is determined as the difference between the
carrying amount and the present value of expected future cash flows
discounted by the present market interest rate for similar
assets.
Impairment loss on loans granted and receivables carried at
amortised cost is measured as the difference between the asset's
carrying amount and the present value of the estimated future cash
flows, discounted by the financial asset's original effective
interest rate. Impairment loss is immediately recognised in profit
or loss. It is recovered if a subsequent increase of the
recoverable amount could be objectively tied to the occurrence of
an event after the date on which the impairment loss was
recognised.
3.5.4. Financial liabilities at amortised cost
After their initial recognition, the Group measures all
financial liabilities at amortised cost except for financial
liabilities measured at fair value through profit and loss;
financial liabilities originating when the transfer of an asset
does not meet the derecognition conditions; agreements for
financial guarantees, engagements for granting loans at an interest
rate that is lower than the market interest rate. These liabilities
are presented in the Company's statement of financial position as
trade and other liabilities and Borrowings.
Trade and other payables
Trade and other payables incur as a result from purchased goods
or services. Current liabilities are not amortised.
Borrowings
Interest bearing loans are initially recognised at fair value,
determined from the cash proceeds less transaction costs. After
initial recognition, interest bearing loans are measured at
amortised cost, as any difference between the initial value and the
value at maturity is recognised in profit or loss over the loan
period, using the effective interest rate method. If no transaction
costs have been incurred in negotiating an interest bearing loan,
the loan is not subject to amortisation. The same applies to bank
overdrafts, where the borrower is entitled to utilise or repay the
borrowed funds many times within the pre-determined overdraft
limit.
Finance costs, including direct costs for obtaining the loan,
are accounted for on an accrual basis using the effective interest
rate method, except for transaction costs on bank overdrafts, which
are recognised in profit or loss on a straight line basis over the
overdraft period.
The effective interest rate method is a method of calculating
the amortised cost of a financial asset or a financial liability
and of allocating the interest income or interest expense over the
relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash payments or proceeds
through the expected life of the financial instrument or, when
appropriate, a shorter period to the net carrying amount of the
financial asset or financial liability. When calculating the
effective interest rate, the Group estimates cash flows considering
all contractual terms of the financial instrument, except for
anticipated future impairment losses. The calculation includes all
fees, transaction costs, premiums or discounts paid or received
between parties to the contract that are an integral part of the
effective interest rate.
Interest bearing loans are classified as current when they are
expected to be settled within twelve month period after the
reporting period.
3.5.5. Share capital and redemption of own shares
The share capital of the Parent Company is presented at
historical cost as of the date of its registration.
When at the end of the reporting period the Group - through
Parent company or subsidiary - has reacquired shares of the Parent
company, their par value is presented as decrease of share capital,
and the difference below or above the par value - in retained
earnings, according to IAS 32 Financial Instruments: Disclosure and
Presentation.
3.6. Deferred income and deferred expenses
The Group has recognised in the statement of financial position
as deferred income and deferred expenses, income and expenses that
are paid in the current, but refer to future reporting periods -
guarantees, insurances, subscriptions, rents and other.
3.7. Retirement benefits obligations
The Government of the Republic of Bulgaria is liable to provide
pensions according to defined retirement benefits schemes. Costs
related to payment of contributions under these schemes are
recognised by the Group in profit or loss in the period they
occur.
In accordance with the Labour Code, the Group has an obligation
to pay retirement benefits to its employees, based on length of
service, age and labour category. In accordance with the
requirements of IAS 19 Employee benefits and its provisions, the
Group recognises the present amount of the benefits as a liability.
All actuarial gains and losses and past service cost is recognised
immediately in profit or loss.
3.8. Income tax
Income tax expense comprises current income tax and deferred
tax.
The current income tax is based on taxable profit for the year
by totalling of the current tax of each company within the Group
specified in the individual tax returns of the Parent Company and
its subsidiaries by applying the effective tax rate according to
the tax legislation as of the date of the financial statements.
Deferred tax is the income tax expected to be payable (recoverable)
on taxable (deductible) temporary differences. Temporary
differences are the differences between the carrying amount of an
asset and a liability in the statement of financial position, and
the corresponding tax basis. Deferred tax is calculated using the
balance sheet liability method. Deferred tax liabilities are
recognised for all taxable temporary differences, whereas deferred
tax assets are recognised for deductible temporary differences,
only to the extent that it is probable that taxable profit will be
available against which the deductible temporary difference can be
utilised.
Deferred tax assets and liabilities are calculated at the tax
rates that are expected to apply in the period when the liability
is settled or the asset realised, based on the information that the
Group is provided for as of the date of the issuance of the
financial statements. Deferred tax is recognised as an expense or
income in profit or loss, except when they relate to items that are
recognised in the same or other period outside profit or loss,
either in other comprehensive income or directly in equity.
In this case the deferred tax is also recognised outside profit
or loss either directly in other comprehensive income or directly
in equity.
Although the taxation in Bulgaria is not performed on a
consolidation basis, the Group has adopted a policy to recognise
deferred tax assets (liabilities) on all temporary differences
arising from the elimination of intra-group unrealised profits from
sales of property, plant and equipment treated as temporary
differences. The reversal of these temporary differences reflects
in subsequent adjustments of depreciation costs in the acquirer or
when the Group derecognises these assets and relevant margins are
realised.
The current amount of deferred tax assets is reviewed at the end
of each reporting period. The Group reduces their amount to the
extent that it is no probable that sufficient profit will be
available against which the deferred tax asset to be utilised.
Deferred tax assets and liabilities are reported on a net basis
when they are subject to a unified tax regime.
In accordance with the tax legislation enforceable for the years
ended 2011 and 2010, the tax rates applied for the calculation of
current tax liabilities of the Group is 10%, respectively. For the
calculation of the deferred tax assets and liabilities as of June
30, 2011, March 31, 2011 and December 31, 2010 the Group has used a
tax rate of 10%.
3.9. Revenue and expenses recognition
3.9.1. Revenue from sales of goods, services and other
income
Revenues and expenses are accounted for on an accrual basis,
regardless of the date of cash receipts and payments. They are
reported in compliance with the matching concept.
Revenue is recognised at the fair value of the consideration
received or receivable, less any discounts allowed and includes the
gross economic benefits received by or due to the Group. The
amounts gathered on behalf of third parties such as sales taxes,
like value added tax, are excluded from the income. Revenue
generated from sale of fuel is reported on its gross amount with
the excise due, which is considered an integral part of the price
of the goods.
Revenue from sales of goods is recognised when:
-- The significant risks and rewards of ownership of the goods
are transferred to the buyer;
-- The Group retains neither continuing managerial involvement
nor effective control over the goods sold;
-- It is probable that the economic benefits associated with the
transaction will flow to the Group;
-- The amount of revenue and costs incurred in respect of the
transaction can be measured reliably.
When the outcome of a transaction involving rendering of
services can be estimated reliably, revenue is recognised by
reference to the stage of completion of the transaction at the end
of the reporting period. When the outcome of a transaction cannot
be estimated reliably revenue is recognised only to the extent that
the expenses recognised are recoverable.
Gain or loss from sales of property, plant and equipment,
intangible assets and materials is reported as other income or
other expense.
When economic benefits are expected to arise during few
reporting periods and their relation with the revenue can be
determined generally or indirectly, expenses are recognised in
profit or loss on the basis of procedures for systematic and
rational distribution.
Profit or loss arising from the exchange of assets is stated at
the amount equal to the difference between the fair value of the
asset received and the carrying amount of the asset exchanged.
3.9.2. Finance income and finance costs
Borrowing costs that may be directly attributed to the
acquisition, construction or production of a qualifying asset
should be capitalised as part of the asset's cost. All other
finance income and finance costs are accrued through profit or loss
for all instruments measured at amortised cost by using the
effective interest rate method.
3.10. Lease
3.10.1 Finance lease
Finance lease is a lease agreement which substantially transfers
all risks and rewards incidental to the ownership of an asset.
Assets acquired under finance lease are recognised at the lower
of their fair value as of the date of acquisition or the present
value of the minimum lease payments. The initial direct expenses
incurred by the lessee are included in the cost of the asset. The
corresponding liability to the lessor is included in the Group's
statements of financial position as obligations under finance
leases.
Lease payments are divided in interest payments and payments on
principal so that a constant interest rate of the residual lease
liability is obtained.
Finance lease causes depreciation expense for depreciable assets
as well as finance expense for each reporting period. The
depreciation policy for depreciable leased assets is consistent
with the same for owned depreciable assets.
For the purpose of presenting the financial instruments in
categories, defined in accordance with IAS 39 Financial
Instruments: Recognition and measurement, liabilities under finance
lease are classified as financial liabilities at amortised
cost.
3.10.2. Operating lease
Costs incurred for assets leased under the operating lease
contracts are recognised through profit or loss over the terms of
the contracts under the straight-line method.
Revenue realised from assets under operating lease contracts is
recognised through profit or loss on a straight-line basis over the
term of the lease contract. Initial costs directly related to the
signing of the lease contract are capitalised in the cost of the
asset and recognised as expenses on a straight-line basis over the
term of the lease contract.
3.10.3. Leaseback agreements
A leaseback transaction is related to the sale of an asset and
the hiring back the same asset. The accounting treatment of the
leaseback depends on the type of the respective lease contract and
the nature of the transaction.
If the leaseback is a finance lease, the transaction is a mean
of granting financing to the lessee by the lessor and the asset
serves as collateral. If according to the provisions of the finance
lease contract there are no changes in the right of use of the
asset by the seller/lessee before and after the transaction, then
the transaction is not within the scope of IAS 17 Leases and is, in
fact, financing. In this case, the proceeds received from the
transaction are presented as Borrowings in the statement of
financial position, while the direct costs incurred by the lessee
during the transaction are deferred for the period of the lease
contract.
3.11. Segment reporting
Operating segments data in these consolidated financial
statements is presented likewise the operating reports submitted to
Group's management. Based on these reports decisions are taken in
respect of the resources to be allocated to the segment and the
results of its activity are evaluated.
4. Critical accounting estimates and key sources of estimation
uncertainty
In the application of the adopted accounting policy, management
makes certain estimates which have significant effect on these
consolidated financial statements. Such estimates, by definition,
may differ from actual results. Due to their nature, they are
subject to constant review and update, and comprise the historical
experience and other factors, including expectation of future
events, which the management believes are reasonable under the
present circumstances.
A critical accounting estimate, which includes significant risk
of considerable adjustments to the carrying amount of assets and
liabilities in subsequent reporting periods, is the test for
impairment of goodwill, arising from business combination. As of
the end of the previous reporting period review of the carrying
amount of the goodwill was performed. As a result goodwill arising
from the acquisition of Naftex Security EAD was impaired (see also
note 18).
5. Segments reporting
The Group has identified the following operating segments based
on the reports presented to the Group's management which are used
in the process of strategic decision making:
-- Wholesale of fuels - wholesale of oil products in Bulgaria in
own storage facilities of the Group; fuel bunkering abroad;
-- Retail of fuels - retail of oil and other products in network
of own petrol stations; servicing of petrol stations and the
belonging commercial objects;
-- Other activities - transportation of fuel with own and hired
vehicles; rental income and other activities.
Wholesale Retail All other
June 30, 2011 of fuels of fuels segments Consolidated
BGN'000 BGN'000 BGN'000 BGN'000
Total segment
revenue 708,289 255,262 9,960 973,511
Inter-group revenue 317,362 12,861 7,001 337,224
Revenue from external
customers 390,927 242,401 2,959 636,287
Adjusted EBITDA 9,647 1,186 167 11,000
Depreciation/amortization 1,091 5,803 774 7,668
Impairment - - 1 1
Wholesale Retail All other
June 30, 2010 of fuels of fuels segments Consolidated
BGN'000 BGN'000 BGN'000 BGN'000
Total segment
revenue 548,542 247,211 1,907 797,660
Inter-group revenue 273,997 15,067 1,042 290,106
Revenue from external
customers 274,545 232,144 865 507,554
Adjusted EBITDA 2,450 11,271 849 14,570
Depreciation/amortization 1,284 5,760 418 7,462
Impairment - - - -
5. Segments reporting (continued)
The policies for recognition of intra-group sales and sales to
external clients for the purposes of the reporting by segments are
not differing from these applied by the Group for revenue
recognition in the consolidated statement of comprehensive
income.
The Management of the Group evaluates the results and assesses
the performance of the segments on the basis of the adjusted
EBITDA. In the calculation of the adjusted EBITDA is not taken into
account the effect of impairment of assets.
The reconciliation of the adjusted EBITDA and the loss before
tax is presented below:
June June
30, 2011 30, 2010
BGN'000 BGN'000
Adjusted EBITDA reporting segments 10,833 13,721
Adjusted EBITDA all other segments 167 849
Depreciation/amortization (7,668) (7,462)
Impairment (1) -
Finance income (expense), net 13,290 (19,005)
Share of profit of associates - 130
-------------- --------------
Profit (loss) before tax 16,621 (11,767)
============== ==============
6. Revenue
Six Six Three Three
months months months months
ended ended ended ended
June June June June
30, 30, 30, 30,
2011 2010 2011 2010
BGN'000 BGN'000 BGN'000 BGN'000
Sale of
goods 628,453 497,241 337,766 263,273
Sale of
services 6,248 8,265 3,439 3,937
------------ ------------ ------------ -------------
634,701 505,506 341,205 267,210
============ ============ ============ =============
7. Other income
Six Six Three Three
months months months months
ended ended ended ended
June June June June
30, 30, 30, 30,
2011 2010 2011 2010
BGN'000 BGN'000 BGN'000 BGN'000
Surplus of
assets 633 759 313 256
Gain from sales of
property, plant and
equipment, incl. 290 284 151 154
Income
from
sales 548 931 270 769
Carrying
amount (258) (647) (119) (615)
Income
from
penalties 204 278 95 122
Insurance
claims 153 142 27 77
Gain from liquidation
of property, plant
and equipment and
materials, incl. 21 - - -
Income
from
sales 21 - - -
Other 306 585 222 427
------------ ------------ ------------ ------------
1,607 2,048 808 1,036
============ ============ ============ ============
8. Materials and consumables
Six Six Three Three
months months months months
ended ended ended ended
June June June June
30, 30, 30, 30,
2011 2010 2011 2010
BGN'000 BGN'000 BGN'000 BGN'000
Fuels and
lubricants 1,818 2,001 938 793
Electricity
and
heating 1,578 1,517 624 636
Spare parts 323 245 145 121
Office
consumables 297 290 148 174
Working
clothes 84 94 79 76
Water 62 64 32 34
Advertising
materials 15 171 6 107
Other 162 273 73 208
----------------- ----------------- --------------- ---------------
4,339 4,655 2,045 2,149
================= ================= =============== ===============
9. Hired services
Six Six Three Three
months months months months
ended ended ended ended
June June June June
30, 30, 30, 30,
2011 2010 2011 2010
BGN'000 BGN'000 BGN'000 BGN'000
Commissions 2,672 2,712 1,580 1,403
Rents 1,494 2,261 695 1,151
Transport 1,343 1,418 921 871
Holding fee 1,210 1,039 605 520
Maintenance and
repairs 1,055 790 642 340
State and
municipal fees 958 596 538 123
Advertising 889 953 589 803
Consulting and
training 684 1,097 506 479
Cash collection
expense 662 589 334 341
Insurances 604 771 311 478
Communications 507 722 329 326
Software
licenses 463 1,039 284 639
Security 262 1,106 153 590
Other 510 374 243 203
------------- ------------- ------------- -------------
13,313 15,467 7,730 8,267
============= ============= ============= =============
10. Employee benefits expenses
Six Six Three Three
months months months months
ended ended ended ended
June June June June
30, 30, 30, 30,
2011 2010 2011 2010
BGN'000 BGN'000 BGN'000 BGN'000
Wages and
salaries 10,481 8,997 5,255 4,610
Social security
contributions
and benefits 2,303 1,718 1,190 862
------------- ------------- ------------- -------------
12,784 10,715 6,445 5,472
============= ============= ============= =============
11. Other expenses
Six Six Three Three
months months months months
ended ended ended ended
June June June June
30, 30, 30, 30,
2011 2010 2011 2010
BGN'000 BGN'000 BGN'000 BGN'000
Loss on liquidation
of non-current assets,
including: - 138 - (85)
Income from
liquidation - (103) - (103)
Carrying amount - 241 - 18
Expropriated assets 1,473 - 1,473 -
Shortages and
written-off
assets 1,216 847 661 491
Taxes and
charges 1,034 797 723 646
Entertainment
expenses and
sponsorship 436 96 121 54
Business trips 191 190 91 96
Penalties and
indemnities 124 38 63 (33)
Scrapped
assets 19 83 - 21
Impairment of
assets 1 - - -
Other 152 182 41 101
------------ ------------ ------------ ------------
4,646 2,371 3,173 1,291
============ ============ ============ ============
12. Finance income and costs
Six Six Three Three
months months months months
ended ended ended ended
June June June June
30, 30, 30, 30,
2011 2010 2011 2010
BGN'000 BGN'000 BGN'000 BGN'000
Finance income
Interest income,
including: 4,228 3,368 2,253 1,786
Interest income
on loans
granted 3,258 2,571 1,451 1,371
Interest income
on trade and
other
receivables 412 769 246 394
Other interest
income 558 28 556 21
Gain from
redeemed own
bonds 17,365 - - -
Foreign exchange
rate gains, net 6,587 - 1,089 -
Other finance
income 1,171 1 1,166 1
29,351 3,369 4,508 1,787
------------- ------------- ------------- -------------
Finance costs
Interest
expenses,
including: (14,634) (10,030) (8,084) (5,027)
Interest
expenses on
debenture
loans (7,360) (8,982) (3,412) (4,530)
Interest
expenses on
bank loans (1,855) (481) (1,043) (265)
Interest
expenses on
obligations
under finance
lease (68) (94) (34) (45)
Interest expense
on reverse
leasing (1,184) - (605) -
Interest
expenses on
trade loans (1,842) (453) (1,534) (409)
Other interest
expenses (2,325) (20) (1,456) 222
Loss from
dealings with
derivatives,
including: - (121) - (121)
Loss on
transactions - (121) - (121)
Foreign exchange
rate losses, net - (10,697) - (6,995)
Bank fees,
commissions and
other costs
financial
expenses (1,427) (1,526) (641) (793)
------------- ------------- ------------- -------------
(16,061) (22,374) (8,725) (12,936)
------------- ------------- ------------- -------------
Finance income
(costs), net 13,290 (19,005) (4,217) (11,149)
============= ============= ============= =============
13. Taxation
Tax expense recognized in profit or loss comprises the amount of
current and deferred income tax in accordance with the requirements
of IAS 12 Income taxes.
Six Six Three Three
months months months months
ended ended ended ended
June June June June
30, 30, 30, 30,
2011 2010 2011 2010
BGN'000 BGN'000 BGN'000 BGN'000
Current tax
expense 936 1,933 458 347
Change in
deferred taxes,
incl.: (561) (2,778) (1,065) (1,099)
Temporary
differences
recognized
during the
year 1,149 (748) (291) 190
Temporary
differences
originated
during the
year (1,710) (2,030) (774) (1,289)
Prior year
adjustments - - - -
------------- -------------
Total tax expense
(benefit) 375 (845) (607) (752)
============= ============= ============= =============
The reconciliation between accounting loss and tax benefit is
presented in the table below:
Six months Six months
ended ended
June June
30, 30,
2011 2010
BGN'000 BGN'000
Accounting profit (loss) 16,621 (11,767)
Applicable tax rate 10% 10%
Tax expense (benefit) at the
applicable tax rate 1,662 (1,177)
Aggregate tax effect from permanent
differences (1,039) 65
Tax effect from unrecognised
during the current year temporary
difference originated during
the current period 190 -
Tax effect from adjustments during
the current year of tax liability
originated in prior period (5) (1)
Recognised tax assets originated
in prior periods 5 -
Tax effect from consolidation
adjustments (438) 268
--------------- ---------------
Tax expense (benefit) 375 (845)
=============== ===============
The deferred tax asset (liability) presented in the consolidated
statement of financial position arises as a result of income tax
charges on deductible temporary differences, the effect of which is
as follows:
March 31, December
June 30, 2011 2011 31, 2010
Temporary Tax Temporary Tax Temporary Tax
difference effect difference effect difference effect
BGN'000 BGN'000 BGN'000 BGN'000 BGN'000 BGN'000
Balance at
the beginning
of the period
Property,
plant and
equipment (27,401) (2,740) (27,401) (2,740) (22,594) (2,261)
Tax loss carry
forward 33,270 3,328 33,270 3,328 1,944 195
Unused paid
leave and
retirement
compensations 1,238 125 1,238 125 2,087 210
Excess of
interest
payments 18,807 1,879 18,807 1,879 30,990 3,098
Investments
in associates (16,869) (1,687) (16,869) (1,687) (16,869) (1,687)
Impairment
of assets 3,844 384 3,844 384 4,110 411
Other 550 55 550 55 1,052 106
----------- -------- ----------- -------- ----------- --------
13,439 1,344 13,439 1,344 720 72
=========== ======== =========== ======== =========== ========
13. Taxation (continued)
March 31, December
June 30, 2011 2011 31, 2010
Temporary Tax Temporary Tax Temporary Tax
difference effect difference effect difference effect
BGN'000 BGN'000 BGN'000 BGN'000 BGN'000 BGN'000
Acquired
through
business
combination
Property,
plant and
equipment - - - - (16,497) (1,649)
Unused paid
leave and
retirement
compensations - - - - 111 10
Excess of
interest
payments - - - - 19 2
Impairment
of assets - - - - 162 17
Other - - - - 6 1
----------- -------- ----------- -------- ----------- --------
- - - - (16,199) (1,619)
=========== ======== =========== ======== =========== ========
Originated
during the
period
Property,
plant and
equipment 207 21 108 11 825 82
Tax loss carry
forward 6,930 693 784 78 33,270 3,327
Unused paid
leave and
retirement
compensations 371 37 272 28 256 25
Excess of
interest
payments 9,082 908 7,871 787 25 2
Impairment
of assets 1 - 1 - 108 11
Other 522 51 386 38 501 50
----------- -------- ----------- -------- ----------- --------
17,113 1,710 9,422 942 34,985 3,497
=========== ======== =========== ======== =========== ========
Recognized
during the
period
Property,
plant and
equipment 1,443 143 132 12 10,865 1,088
Tax loss carry
forward (12,491) (1,249) (13,491) (1,349) (713) (71)
Unused paid
leave and
retirement
compensations (140) (14) (904) (90) (1,216) (120)
Excess of
interest
payments (46) (4) (4) - (10,690) (1,069)
Impairment
of assets (5) (1) (3) - (536) (55)
Other (242) (24) (136) (13) (1,009) (102)
----------- -------- ----------- -------- ----------- --------
(11,481) (1,149) (14,406) (1,440) (3,299) (329)
=========== ======== =========== ======== =========== ========
Adjustments
Property,
plant and
equipment - - 56 6 - -
Tax loss carry
forward - - - - (1,231) (123)
Excess of
interest
payments 2 - - - (1,537) (154)
2 - 56 6 (2,768) (277)
=========== ======== =========== ======== =========== ========
Balance at
the end of
the period
Property,
plant and
equipment (25,751) (2,576) (27,105) (2,711) (27,401) (2,740)
Tax loss carry
forward 27,709 2,772 20,563 2,057 33,270 3,328
Unused paid
leave and
retirement
compensations 1,469 148 606 63 1,238 125
Excess of
interest
payments 27,901 2,789 26,674 2,666 18,807 1,879
Investments
in associates (16,869) (1,687) (16,869) (1,687) (16,869) (1,687)
Impairment
of assets 3,840 383 3,842 384 3,844 384
Other 830 82 800 80 550 55
----------- -------- ----------- -------- ----------- --------
19,129 1,911 8,511 852 13,439 1,344
=========== ======== =========== ======== =========== ========
14. Property, plant and equipment and intangible assets
Plant and Other Assets under Intangible
Land Buildings equipment Vehicles assets construction assets Total
BGN'000 BGN'000 BGN'000 BGN'000 BGN'000 BGN'000 BGN'000 BGN'000
Cost
Balance
at
January
1, 2010 38,855 50,634 147,361 24,752 13,528 9,781 2,415 287,326
Additions - - 313 11 165 3,592 1 4,082
Disposals (28) (64) (1,351) (1,974) (273) - - (3,690)
Transfers - 1,245 4,490 - 502 (6,267) 30 -
Balance
at
June 30,
2010 38,827 51,815 150,813 22,789 13,922 7,106 2,446 287,718
-------- ---------- ---------- --------- -------- ------------- ----------- --------
Additions 298 633 1,296 45 213 2,044 2,739 7,268
Acquisitions
through
business
combinations 6,499 5,519 129 - 156 109 10 12,422
Disposals (434) (108) (224) (4,013) (29) (2) - (4,810)
Transfers (15) 1,680 709 - 146 (2,536) 16 -
Balance
at December
31, 2010 45,175 59,539 152,723 18,821 14,408 6,721 5,211 302,598
-------- ---------- ---------- --------- -------- ------------- ----------- --------
Additions 52 56 721 - 41 2,450 7 3,327
Disposals (124) (15) (4,286) (1,151) (48) (7) (1) (5,632)
Transfers - 133 5,852 - 28 (6,013) - -
Balance
at
June 30,
2011 45,103 59,713 155,010 17,670 14,429 3,151 5,217 300,293
-------- ---------- ---------- --------- -------- ------------- ----------- --------
Accumulated
Depreciation/
Amortization
Balance
at
January
1, 2010 - 19,888 70,715 18,116 8,748 - 1,686 119,153
Charged
for the
period - 726 4,942 1,167 550 - 77 7,462
Disposals - (17) (1,086) (1,955) (90) - (1) (3,149)
-------- ---------- ---------- --------- -------- ------------- ----------- --------
Balance
at
June 30,
2010 - 20,597 74,571 17,328 9,208 - 1,762 123,466
-------- ---------- ---------- --------- -------- ------------- ----------- --------
Charged
for the
period - 904 6,251 972 739 - 147 9,013
Disposals - (83) (211) (3,897) 26 - - (4,165)
Transfers - 309 (311) - 2 - - -
Balance
at December
31, 2010 - 21,727 80,300 14,403 9,975 - 1,909 128,314
-------- ---------- ---------- --------- -------- ------------- ----------- --------
Charged
for the
period - 955 4,562 843 574 - 531 7,465
Disposals - (9) (2,811) (1,069) (26) - (1) (3,916)
Transfers - (4) 4 - - - - -
-------- ---------- ---------- --------- -------- ------------- ----------- --------
Balance
at
June 30,
2011 - 22,669 82,055 14,177 10,523 - 2,439 131,863
-------- ---------- ---------- --------- -------- ------------- ----------- --------
Carrying
amount
at January
1, 2010 38,855 30,746 76,646 6,636 4,780 9,781 729 168,173
======== ========== ========== ========= ======== ============= =========== ========
Carrying
amount
at June
30, 2010 38,827 31,218 76,242 5,461 4,714 7,106 684 164,252
======== ========== ========== ========= ======== ============= =========== ========
Carrying
amount
at December
31, 2010 45,175 37,812 72,423 4,418 4,433 6,721 3,302 174,284
Carrying
amount
at June
30, 2011 45,103 37,044 72,955 3,493 3,906 3,151 2,778 168,430
======== ========== ========== ========= ======== ============= =========== ========
14. Property, plant and equipment and intangible assets
(continued)
As of June 30, 2011 property, plant and equipment with carrying
amount of BGN 37,187 thousand serves as collaterals under bank
loans extended to the Group, the Controlling Company and other
related parties (see also note 33.2).
15. Investment properties
December
June March 31,
30, 31, 2010
2011 2011 BGN
BGN'000 BGN'000 '000
Cost
Balance at the beginning
of the period 28,505 28,505 -
Acquisitions through business
combinations - - 28,592
Acquisitions 5 5
Disposals - - (87)
------------- ------------- ---------
Balance at the end of
the period 28,510 28,510 28,505
------------- ------------- ---------
Accumulated Depreciation
Balance at the beginning
of the period 35 35 -
Charged for the period 203 102 35
------------- -------------
Balance at the end of
the period 238 137 35
------------- ------------- ---------
Carrying amount at the
beginning of the period 28,470 28,470 -
============= ============= =========
Carrying amount at the
end of the period 28,272 28,373 28,470
============= ============= =========
Investment properties amounting to BGN 28,592 thousand were
acquired in November 2010 through business combinations. The
properties were measured at fair value determined by licensed
valuation expert.
As of June 30, 2011, investment properties with carrying amount
of BGN 25,595 thousand serve as collaterals under bank loans
extended to the Group (see also note 25).
16. Investments in associates
As of January 1, 2010 the Group had an investment in associates
of 36.92% from the equity of Eurocapital-Bulgaria AD. In November
2010 the Group acquired additional 53.05% and as of December 31,
2010 its share in the equity is 89.97%. Additional ownership of
10.03% was acquired in April 2011. As of June 30, 2011 the Group
has 100% ownership from the equity of Eurocapital-Bulgaria AD (see
also note 30).
November June
30, 30,
2010 2010
BGN'000 BGN'000
Investment at the beginning of
the period 15,299 15,299
Group's share in the profit of
the associate 53 130
Share of distributed dividends
from associate (260) (260)
---------------- ----------------
Investment at the end of the
period 15,092 15,169
================ ================
17. Investments in other companies
As of June 30, 2011, March 31, 2011 and December 31, 2010 the
Group owns 6.92% of the equity of Capital 3000 AD. The investment
in Capital 3000 AD has been fully impaired in prior reporting
periods.
18. Goodwill
December
June 31,
30, March 2010
2011 31, 2011 BGN
BGN '000 BGN '000 '000
Cost
Cost at the beginning
of the period 19,575 19,575 18,297
Goodwill recognised during
the year through business
combinations - - 1,278
---------- ---------- -----------------
Cost at the end of the
period 19,575 19,575 19,575
---------- ---------- -----------------
Impairment loss
Recognised during the
period - - (1,243)
---------- ---------- -----------------
Impairment loss at the
end of the period (1,243) (1,243) (1,243)
---------- ---------- -----------------
18,332 18,332 18,332
========== ========== =================
As of June 30, 2011 goodwill with carrying amount of BGN 18,332
thousand (March 31, 2011 and December 31, 2010: BGN 18,332
thousand) has arisen as a result of the acquisition of the
subsidiary Naftex Petrol EOOD and BPI EAD.
In November 2010 the Group acquired control in BPI EAD and
Naftex Security EAD and as a result goodwill at the amount of BGN
35 thousand and BGN 1,243 thousand respectively was recognised.
Goodwill arising from the acquisition of Naftex Security EAD was
completely impaired as at the date of the acquisition.
A review for impairment of the carrying amount of goodwill
originated as a result of the acquisition of Naftex Petrol EOOD is
performed as of June 30, 2011 and the method of discounted net cash
flows is used. The method is based on the cash flows forecasts
prepared by the subsidiary's management for four-year period after
June 30, 2011. The assumption that the net cash flows after the
last forecast period will be constant is used. The used discount
rate of 12.76% is calculated as subsidiary's weighted average cost
of capital of the subsidiary. The result of the applied method
shows that the amount of the investment in the subsidiary exceeds
the total amount of net assets and goodwill as of June 30, 2011 and
therefore no impairment loss on goodwill is recognised.
19. Loans granted
June
30, March December
2011 31, 2011 31, 2010
BGN '000 BGN '000 BGN '000
Non-current receivables
Loans to related parties 9,213 7,124 34,902
----------
9,213 7,124 34,902
---------- ---------- ----------
Current receivables
Loans and deposits to
related parties 93,876 93,636 94,320
Loans to third parties 179 43 117
----------
94,055 93,679 94,437
---------- ---------- ----------
103,268 100,803 129,339
========== ========== ==========
Receivables on loans granted to related parties are disclosed in
note 32.
20. Inventories
June
30, March December
2011 31, 2011 31, 2010
BGN '000 BGN '000 BGN '000
Non-current assets
Compulsory stock of fuel 63,980 34,939 34,939
---------- ---------- ----------
63,980 34,939 34,939
---------- ---------- ----------
Current assets
Goods, including: 28,919 45,285 75,347
Fuels 18,954 34,666 63,852
Lubricants and other goods 9,965 10,619 11,495
Materials 2,464 2,347 2,386
---------- ----------
31,383 47,632 77,733
---------- ---------- ----------
95,363 82,571 112,672
========== ========== ==========
As of June 30, 2011 the Group stores compulsory stock of fuel in
compliance with the Mandatory Stock of Crude Oil and Oil Products
Act amounting to BGN 63,980 (March 31, 2011 and December 31, 2010:
BGN 34,939).
As of June 30, 2011 available fuels are pledged as collateral
under utilised by the Group bank loans (see also note 25).
21. Trade and other receivables
June
30, March December
2011 31, 2011 31, 2010
BGN '000 BGN '000 BGN '000
Receivables from customers,
incl. 68,442 81,910 48,610
Initial cost 70,704 84,172 50,631
Allowance for doubtful
debts (2,262) (2,262) (2,021)
Receivables from related
parties 18,359 16,340 19,809
Litigations and writs 9,090 9,020 8,825
Initial cost 3,134 3,064 3,053
Allowance for doubtful
debts (16) (16) (16)
Tax audit act 5,972 5,972 5,788
Guarantees for tender
participation 2,267 2,241 2,284
Advances granted 819 802 810
Refundable taxes, incl. 1,434 794 1,118
VAT 1,301 599 922
Other taxes 133 195 196
Prepaid expenses 460 300 320
Other 1,732 1,109 1,405
---------- ---------- ----------
102,603 112,516 83,181
========== ========== ==========
The Group considers that the carrying amount of trade and other
receivables does not significantly differ from their fair value as
of June 30, 2011, March 31, 2011 and December 31, 2010.
Receivables from related parties are disclosed in note 32.
22. Cash
June
30, March December
2011 31, 2011 31, 2010
BGN '000 BGN '000 BGN '000
Cash at banks 3,577 5,354 7,628
Cash in transit 2,233 2,047 3,410
Cash on hand 140 151 134
---------- ---------- ----------
Cash as of statement of
cash flows 5,950 7,552 11,172
---------- ---------- ----------
Restricted cash 59,725 3 149
---------- ---------- ----------
Cash as of statement of
financial position 65,675 7,555 11,321
========== ========== ==========
As of June 30, 2011 the amount of BGN 59,723 thousand presented
as restricted cash represents collateral under utilised trade loan
(see also note 25).
As of June 30, 2011 cash at the amount of BGN 3,395 thousand
(March 31, 2011: BGN 4,121 thousand; 2010: BGN 6,963 thousand)
serve as collateral under utilised bank loans (see also note
25).
As of December 31, 2010 cash at the amount of BGN 149 thousand
is presented as restricted cash which serves as collateral for the
excise duty payable.
Cash in transit is cash collected from the petrol stations as of
the end of the reporting period which is to be received on the
Group's accounts in the beginning of the next reporting period.
23. Share capital
The share capital of the Group is presented at its nominal
value, according to the court decision for registration.
As of June 30, 2011, March 31, 2011 and December 31, 2010 the
shareholders of the Parent company are as follows:
June March December
30,, 31, 31,
2011 2011 2010
% of % of % of
share share share
Shareholders capital capital capital
Petrol Holding AD 55.48% 55.48% 55.48%
Naftex Petrol EOOD 41.82% 41.82% 41.82%
Ministry of Economics 0.66% 0.66% 0.66%
Other minority shareholders 2.04% 2.04% 2.04%
---------
100% 100% 100%
========= ========= =========
24. Reserve from adoption of IFRS
The reserve from adoption of IFRS as of June 30, 2011, March 31,
2011 and December 31, 2010 amounts to BGN 18,378 thousand, BGN
20,436 thousand and BGN 20,456 thousand, respectively, and it has
been formed as a result of a revaluation of property, plant and
equipment and intangible assets, carried out in the period 1998 -
2001, as well as of revaluation as of December 31, 2002, in
relation to the first time adoption of IFRS in the preparation of
Parent company's separate financial statements.
25. Borrowings
June
30, March December
2011 31, 2011 31, 2010
BGN '000 BGN '000 BGN '000
Non-current liabilities
Loans from financial institutions 3,105 3,274 3,442
Liabilities under leaseback
agreements 39,567 39,816 40,043
----------
42,672 43,090 43,485
========== ========== ==========
Current liabilities
Loans from financial institutions 44,842 44,230 27,326
Debenture loans 146,022 143,977 195,505
Liabilities under leaseback
agreements 1,406 1,497 1,509
Trade loans from related
parties 13,247 13,867 15,867
Trade loans from non-related
parties 79,199 1,956 -
---------- ---------- ----------
284,716 205,527 240,207
========== ========== ==========
327,388 248,617 283,692
========== ========== ==========
25. Borrowings (continued)
The average effective interest rate on loans from financial
institutions is within the range of 4% to 10% (2010: from 4% to
10%). Goods, cash in current accounts, receivables and promissory
notes are pledged as collateral for the loans.
In October 2006 the Parent company issued 2,000 registered,
transferable bonds with fixed annual interest rate of 8.375% and
issue value - 99.507% of the face value, which is determined at EUR
50,000 per one bond. The term of the bond issue is 5 years and the
maturity date is in October 2011. The principal is due in one
payment at the maturity date. As of March 31, 2011 the fair value
of the bonds, based on market prices is 66.5% of the nominal value.
The issue is secured by Group's receivables under loans, granted to
related parties and a corporate guarantee, issued by a subsidiary.
The transaction costs for the bond issue amount to BGN 3,049
thousand. Interest is paid once a year. The annual effective
interest rate is 8.955%. The purpose of the issue is working
capital financing, financing of investment projects and
restructuring of the Group's debt.
In 2011 the Group has repurchased bonds from the issue stated
above with nominal EUR 26,643 thousand at the price of EUR 18,650
thousand. The repurchased bonds are reported in these consolidated
financial statements as decrease of the debenture loan.
In 2011 the Group borrowed from non-related parties the amount
of BGN 77,243 thousand at an interest rate of 9%. The loan at the
amount of BGN 17,808 thousand expires in October 2011 and the loan
at the amount of BGN 59,435 thousand expires in December 2011. Both
loans are secured by assets of the Parent company.
The liabilities under bank loans and leaseback agreements are
secured with pledge of property, plant and equipment, inventory,
cash and receivables of the Group as well as guarantees, promissory
notes and assets of related parties.
The liabilities to related parties are disclosed in note 32.
26. Obligations under finance lease
Present value of
Minimum lease payments minimum lease payments
June March December June March December
30, 31, 31, 30, 31, 31,
2011 2011 2010 2011 2011 2010
BGN BGN BGN BGN BGN BGN
'000 '000 '000 '000 '000 '000
Amounts payable
under finance
leases
Within one year 1,421 1,585 1,634 1,325 1,483 1,517
From one to two
years 721 786 986 664 728 920
From three to
five years 1,165 1,337 1,515 1,129 1,293 1,459
Less: Interest
payable
Within one year (96) (102) (117) - - -
From one to two
years (57) (58) (66) - - -
From three to
five years (36) (44) (56) - - -
------- --------
Present value
of finance lease
obligations 3,118 3,504 3,896 3,118 3,504 3,896
------- ------- --------- -------- -------- ---------
Less: Present
value of finance
lease
obligations with
maturity less
than 1 year (1,325) (1,483) (1,517)
-------- -------- ---------
Present value
of finance lease
obligations with
maturity over
1 year 1,793 2,021 2,379
======== ======== =========
Assets acquired by the Group under finance leases comprise of
vehicles. The lease term of the contracts is between 3 to 5
years.
Management believes that the fair value of the obligations under
finance leases does not differ significantly from their carrying
amount.
Liabilities under finance lease agreements are secured by
promissory notes issued by the Group in favour of the lessors and
expire at the termination date of the respective agreements.
27. Retirement benefits obligations
The Group accrues liabilities for retirement benefits at the
amount of BGN 211 thousand (BGN 21 thousand as short-term portion
and BGN 190 thousand as long-term portion). The amount of the
liabilities is based on an actuary valuation, taking into
consideration assumptions for mortality, disability, employment
turnover, salaries' growth, etc. The present value of the liability
is calculated by applying a discount factor of 4%.
28. Trade and other payables
June
30, March December
2011 31, 2011 31, 2010
BGN '000 BGN '000 BGN '000
Payables to suppliers 140,056 122,994 151,879
Tax payables, incl.: 44,934 65,181 49,457
VAT 11,005 30,820 18,278
Excise duties and other
taxes 33,929 34,361 31,179
Related party payables 2,789 2,465 2,903
Payables to personnel
and social security funds 3,063 2,995 2,932
Advances received 8,433 8,543 18,161
Deferred income 77 161 174
Other 3,519 2,480 3,114
---------- ---------- ----------
202,871 204,819 228,620
========== ========== ==========
Related party payables are disclosed in note 32.
The Group accrues liabilities for unused annual paid leave of
employees in compliance with IAS 19 Employee Benefits. The movement
of these liabilities for the reported periods is as follows:
June
30, March December
2011 31, 2011 31, 2010
BGN '000 BGN '000 BGN '000
Balance at the beginning
of the period 747 747 1,568
Acquisitions through business
combinations - - 111
Accrued during the period 372 273 256
Utilized during the period (141) (92) (1,188)
---------- ---------- ----------
Balance at the end of
the period, including: 978 928 747
========== ========== ==========
Paid leave 831 787 605
Social security contributions 147 141 142
The balance at the end of the period is presented in the
statement of financial position together with the current
liabilities for employee benefits.
The management believes that the carrying amount of the current
liabilities, presented in the consolidated statement of financial
position, approximates their fair value.
29. Current income tax payable
Current income tax includes corporate income tax accruals for
the current period and prior periods up to the amount, which is not
settled at the end of the reporting period.
June
30, March December
2011 31, 2011 31, 2010
BGN '000 BGN '000 BGN '000
Income tax payable as
of January 1 3,629 3,629 662
Accrued corporate income
tax 936 489 4,096
Corporate income tax paid (4,756) (1,402) (1,137)
Offsetting against other
tax payables (receivables) (76) - 8
Income tax (receivable)
payable at the end of
the period (267) 2,716 3,629
========== ========== ==========
30. Subsidiaries
The subsidiaries, included in the consolidation, over which the
Group has control as of June 30, 2011, March 31, 2011 and December
31, 2010 are as follows:
Investment Investment Investment
as of as of as of
June March December
30, 31, 31,
Subsidiary Main activity 2011 2011 2010
Naftex Petrol Wholesale with
EOOD fuels 100% 100% 100%
Petrol Trans Transport
Express EOOD services 100% 100% 100%
Service and
Petrol Technika maintenance of
EOOD fuel stations 100% 100% 100%
Petrol Gas Wholesale with
EOOD fuels 100% 100% 90%
Real estate and
Petrol Properties moveable
EOOD property trade 100% 100% 100%
Naftex Petrol Wholesale with
Trade EOOD fuels 100% 100% -
Management, rent
Elite Petrol and sale of
AD properties 99.99% 99.99% 99.99%
Management, rent
and sale of
properties and
construction
Eurocapital-Bulgaria works through
AD sub-contractors 100% 89.97% 89.97%
BPI EAD Rent of property 100% 100% 100%
Security
services -
Naftex Security personal and
EAD properties 100% 100% 100%
Legal advises,
management and
Jurex Consult consulting
AD services 79.95% 79.95% 79.95%
Varna Storage Management, rent 100% - -
EOOD and sale of
properties
In January 2011 the Parent company purchased the shares of the
minority owner of Petrol Gas OOD at the amount of BGN 1. As a
result the legal form of the subsidiary is changed to EOOD.
In January 2011 Naftex Petrol Trade EOOD, a new subsidiary, was
established. The share capital of the company is BGN 5 thousand, of
which BGN 10 are paid as of the date of these consolidated
financial statements.
31. Special purpose entities
In compliance with SIC 12 Consolidation - Special Purpose
Entities (SPE) and the approved accounting policy, the Group of
Petrol AD consolidates such entities because the substance of the
relationship between the Group and the SPEs indicates that they are
controlled by the Group, as follows:
-- The activities of the SPEs are being conducted on behalf of
Naftex Petrol EOOD according to its specific business needs so that
Naftex Petrol obtains benefits from the SPEs' operations,
-- Naftex Petrol EOOD has the decision-making powers to obtain
the majority of the benefits of the activities of the SPEs,
-- Naftex Petrol has rights to obtain the majority of the
benefits of the SPEs and is therefore exposed to risks incident to
their activities.
The consolidated SPEs controlled by the Group as at June 30,
2011, March 31, 2011 and December 31, 2010 are as follows:
Name of SPE Main activity
Petrol Trade Import of petroleum products
EOOD
Naftex Trade Import of petroleum products
EOOD
32. Disclosure of related parties and transactions
The related parties which the Parent company controls and has
significant influence on are disclosed in notes 30 and 31.
The Parent company is controlled by Petrol Holding AD.
The following transactions with related parties have been
performed during the reporting period:
Related party
Petrol Holding AD Controlling Company and Parent
Company
New Co Zagora EOOD Company under common control
Interhotel Bulgaria Company under common control
Burgas EOOD
BC Izvor AD Company under common control
Ross Oil EOOD Company under common control
Air Lazur - General Company under common control
Aviation EOOD
Transcard D Company under common control
orsko Kazino D Company under common control
ransat AD Company under common control
Varna Business Services Company under common control
EOOD
rans Operator D Company under common control
Transcard Financial Company under common control
Services EAD
ma Sport E D Company under common control
Balneohotel Pomorie Company under common control
AD
PSFC Chernomoretz Company under common control
D
Black Sand Resort Company under common control
AD
SOCCRAT EAD Company under common control
Federal Bulgaria Management Company under common control
AD
Petrol Card Service Company under common control
EOOD
Vratzata OOD Company under common control
Transcard Payment Company under common control
Services EAD
Bulgarian Rose Gardens Company under common control
EOOD
Fransis Residence Company under common control
EOOD
rans Telecom AD Associate of Petrol Holding
AD
ma News D Associate of Petrol Holding
D
Rex Lotto D Associate of Petrol Holding
D
Petrol Engineering Associate of Petrol Holding
AD D
The transactions performed relate primarily to:
-- purchase and sale of liquid fuels;
-- granting and receiving loans;
-- purchase and sale of property, plant and equipment;
-- holding fees and services.
The volume of the transactions performed with related parties
for first three months of 2011 and 2010 is as follows:
32. Related party disclosures (continued)
The transactions performed relate primarily to:
-- purchase and sale of liquid fuels;
-- granting and receiving loans;
-- purchase and sale of property, plant and equipment;
-- Holding fees and services.
In first six months of 2011 and 2010 transactions with related
parties are as follows:
Three Three
Six months Six months months months
ended ended ended ended
Sale of goods, June June June June
services and non-current 30, 30, 30, 30,
assets 2011 2010 2011 2010
Related parties BGN'000 BGN'000 BGN'000 BGN'000
Controlling company 191 108 99 55
Companies under
common control 1,170 876 578 353
Associates - 2 - 1
Associates of
Petrol Holding
AD 27 121 5 45
1,388 1,107 682 454
=========== =========== ======== ========
Three Three
Six months Six months months months
ended ended ended ended
Purchase of goods, June June June June
services and non-current 30, 30, 30, 30,
assets 2011 2010 2011 2010
Related parties BGN'000 BGN'000 BGN'000 BGN'000
Controlling company 1,343 1,942 671 965
Companies under
common control 1,080 2,595 491 1,226
Associates - 123 - 57
Associates of
Petrol Holding
AD 1 12 - 6
2,424 4,672 1,162 2,254
=========== =========== ======== ========
Three Three
Six months Six months months months
ended ended ended ended
June June June June
30, 30, 30, 30,
Finance income 2011 2010 2011 2010
Related parties BGN'000 BGN'000 BGN'000 BGN'000
Controlling company 21,632 2,724 2,518 1,440
Companies under
common control 278 40 165 35
Associates of
Petrol Holding
AD 3 4 1 2
21,913 2,768 2,684 1,477
=========== =========== ======== ========
Three Three
Six months Six months months months
ended ended ended ended
June June June June
30, 30, 30, 30,
Finance costs 2011 2010 2011 2010
Related parties BGN'000 BGN'000 BGN'000 BGN'000
Controlling company 36 - 18 -
Companies under
common control 7 6 2 5
Key management 541 - 251 -
584 6 271 5
=========== =========== ======== ========
32. Related party disclosures (continued)
The outstanding balances with related parties as of June 30,
2011, March 31, 2011 and December 31, 2010 are as follows:
June March December
30, 31, 31,
Related parties 2011 2011 2010
BGN'000 BGN'000 BGN'000
Receivables Receivables Receivables
Controlling company,
including: 110,447 106,629 138,255
Interest-bearing loans
-non-current portion 4,627 2,538 30,727
Interest-bearing loans
- current portion 93,572 93,332 94,016
Companies under common
control 9,549 9,028 8,227
Interest-bearing loans
-non-current portion 4,586 4,586 4,175
Interest-bearing loans
- current portion 304 304 304
Associates of Petrol
Holding AD 299 290 1,446
ey management staff 1,153 1,153 1,103
121,448 117,100 149,031
============ ============ ============
June
30, March December
Related parties 2010 31, 2010 31, 2009
BGN'000 BGN'000 BGN'000
Payables Payables Payables
Controlling company,
incl. 3,094 3,071 3,626
Short-term interest-bearing
loans 1,472 1,472 1,472
Companies under common
control, incl. 437 308 461
Associates of Petrol
Holding AD 17 21 20
Key management staff,
incl. 12,471 12,932 14,683
Short-term interest-bearing
loans 11,775 12,395 14,395
--------- ---------- ----------
16,019 16,332 18,790
========= ========== ==========
33. Contingent assets and liabilities
33.1. Contingent assets
In 2006 the Group invoiced and recognised income from penalties
at the amount of BGN 8,196 thousand which were accrued to
counterparty due to quantitative non-execution of a contract for
fuel supply. As of December 31, 2006 this recorded income was
reversed as the management estimated that the criteria for income
recognition in compliance with IAS 18 Revenue were not met. In this
relation a contingent receivable at the amount of BGN 8,196
thousand occurred for the Group because the receivable from the
Counterparty is not recognised in the financial statements.
32.2. Contingent liabilities
As of March 31, 2011 assets with a carrying amount of BGN 14,664
thousand are mortgaged and pledged as collateral on bank loans,
granted to related parties (see also note 14).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR URVWRAAAWORR
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