TIDM74JJ
RNS Number : 6680E
Petrol AD
01 June 2012
Consolidated financial statements
as of March 31, 2012
and Notes to the consolidated financial statements
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended March 31, 2012
Note March 31, March 31,
2012 2011
BGN'000 BGN'000
Revenue 6 327,635 293,496
Other income 7 914 799
Cost of goods sold (312,258) (267,305)
Materials and consumables 8 (2,293) (2,294)
Hired services 9 (5,209) (5,583)
Employee benefits expenses 10 (6,360) (6,339)
Depreciation and amortisation expenses 14 (3,473) (3,955)
Other expenses 11 (1,208) (1,473)
Finance income 12 8,391 25,297
Finance costs 12 (8,482) (7,790)
Profit (loss) before taxes (2,343) 24,853
Income tax expense 13 (77) (982)
--------- ---------
Net profit (loss) for the period (2,420) 23,871
--------- ---------
Attributable to:
Owners of the Parent Company (2,421) 23,863
Non-controlling interest 1 8
Total comprehensive income for the
period (2,420) 23,871
========= =========
These consolidated financial statements have been approved on
behalf of Petrol AD by:
Svetoslav Yordanov Daniela Taskova-Stoykova
Executive Director Chief Accountant
May 30, 2012 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of March 31, 2012
Note March 31, December
31,
2012 2011
BGN'000 BGN'000
Non-current assets
Property, plant and equipment and
intangible assets 14 160,989 162,890
Investment properties 15 33,242 33,467
Goodwill 17 18,332 18,332
Deferred tax assets 13 890 668
Interest-bearing loans granted 18 21,034 21,034
Compulsory inventory 19 69,081 69,081
Total non-current assets 303,568 305,472
--------- ----------
Current assets
Inventories 19 54,683 53,178
Interest-bearing loans granted 18 107,630 104,437
Trade and other receivables 20 91,462 85,681
Cash 21 7,999 9,075
Total current assets 261,774 252,371
--------- ----------
Total assets 565,342 557,843
========= ==========
Shareholder's equity
Share capital 22 76,273 76,321
Legal reserves 18,864 18,864
Accumulated loss (117,997) (115,264)
--------- -------------
Total equity, attributable to the
owners of the Parent Company (22,860) (20,079)
--------- -------------
Non-controlling interest 53 52
--------- -------------
Total equity and reserves (22,807) (20,027)
Non-current liabilities
Interest-bearing loans received 23 194,013 205,028
Obligations under finance lease 24 1,523 1,705
Retirement benefits obligations 25 328 328
Total non-current liabilities 195,864 207,061
--------- -------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of March 31, 2012 (continued)
Note March 31, December
31,
2012 2011
BGN'000 BGN'000
Current liabilities
Trade and other payables 26 313,413 281,318
Interest-bearing loans received 23 78,001 88,466
Obligations under finance lease 24 768 949
Retirement benefits obligations 25 22 22
Current income tax payable 27 81 54
Total current liabilities 392,285 370,809
--------- --------
Total liabilities 588,149 577,870
--------- --------
Total equity and liabilities 565,342 557,843
========= ========
These consolidated financial statements have been approved on
behalf of Petrol AD by:
Svetoslav Yordanov Daniela Taskova-Stoykova
Executive Director Chief Accountant
May 30, 2012 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S
EQUITY
For the period ended March 31, 2012
Equity attributable to the owners Non-controlling Total
of the Parent Company interest equity
Share Legal Accumu-lated Total
capital reserves loss
BGN'000 BGN'000 BGN'000 BGN'000 BGN'000 BGN'000
Balance at
January 1, 2011 76,401 18,914 (69,881) 25,434 4,301 29,735
Profit for the
period - - 23,863 23,863 8 23,871
Total comprehensive
income - - 23,863 23,863 8 23,871
--------- ---------- ------------- --------- ---------------- ---------
Acquisition of
additional share
in subsidiary - - (270) (270) 270 -
Balance at
March 31, 2011 76,401 18,914 (46,288) 49,027 4,579 53,606
========= ========== ============= ========= ================ =========
Loss for the period - - (68,607) (68,607) 1 (68,606)
Total comprehensive
income - - (68,607) (68,607) 1 (68,606)
--------- ---------- ------------- --------- ---------------- ---------
Buy back of own
shares (80) - (385) (465) - (465)
Dividends paid - - (64) (64) - (64)
Dividends payable
written off - - 45 45 - 45
Acquisition of
non-controlling
interest - - (15) (15) (4,528) (4,543)
--------- ---------- ------------- --------- ---------------- ---------
Total transactions
with shareholders
in equity (80) - (419) (499) (4,528) (5,027)
--------- ---------- ------------- --------- ---------------- ---------
Loss covered - (50) 50 - - -
--------- ---------- ------------- --------- ---------------- ---------
Total other changes - (50) 50 - - -
--------- ---------- ------------- --------- ---------------- ---------
Balance at
December 31, 2011 76,321 18,864 (115,264) (20,079) 52 (20,027)
========= ========== ============= ========= ================ =========
Loss for the period - - (2,421) (2,421) 1 (2,420)
Total comprehensive
income - - (2,421) (2,421) 1 (2,420)
--------- ---------- ------------- --------- ---------------- ---------
Buy back of own
shares (48) - (312) (360) - (360)
--------- ---------- ------------- --------- ---------------- ---------
Total transactions
with shareholders
in equity (48) - (312) (360) - (360)
Balance at
March 31, 2012 76,273 18,864 (117,997) (22,860) 53 (22,807)
========= ========== ============= ========= ================ =========
These consolidated financial statements have been approved on
behalf of Petrol AD by:
Svetoslav Yordanov Daniela Taskova-Stoykova
Executive Director Chief Accountant
May 30, 2012
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended March 31, 2012
March 31, March 31,
2012 2011
BGN'000 BGN'000
Cash flows from operating activities
Net profit (loss) before taxes (2,343) 24,853
Adjustments for:
Depreciation/amortisation of property,
plant and equipment and intangible assets 3,473 3,955
Interest expense, bank fees and commissions,
net 6,557 7,118
Shortages and normal loss, net of excess
assets 630 574
Provisions for unused paid leave and
retirement benefits 235 272
Impairment of assets - (1)
Gain on liquidation of assets (57) (21)
Gain on sale of property, plant and equipment
and materials (179) (139)
Gain on redeemed bonds - (17,365)
Unrealised foreign exchange differences (5,602) (1,797)
2,714 17,449
Increase in trade payables 32,415 3,066
Decrease (increase) in inventories (1,978) 29,367
Increase in trade receivables (6,214) (33,728)
---------- ----------
Cash flows provided by operating activities 26,937 16,154
Interest and bank fees and commissions
paid (11,895) (3,067)
Income taxes paid (272) (1,402)
---------- ----------
Net cash provided by operating activities 14,770 11,685
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended March 31, 2012 (continued)
March 31, March 31,
2012 2011
BGN'000 BGN'000
Cash flows from investing activities
Payments for acquisition of property,
plant and equipment and intangible assets (1,223) (1,201)
Proceeds from sale of property, plant
and equipment 37 283
Interest received on loans and deposits
granted 1,592 764
Payments for loans and deposits granted,
net (3,374) (6,679)
Net cash used in investing activities (2,968) (6,833)
Cash flows from financing activities
Proceeds from bank and trade loans 12,713 4,338
Payments for bank and trade loans and
bond issue (25,103) (12,124)
Payments on leaseback agreements (199) (290)
Payments for redemption of own shares (360)
Dividends paid - (1)
Lease payments (363) (392)
Net cash used in financing activities (13,312) (8,469)
Net decrease in cash and cash equivalents
for the period (1,510) (3,617)
Cash and cash equivalents at the beginning
of the period 9,075 11,172
Cash and cash equivalents at the end
of the period (see also note 21) 7,565 7,555
========== ==========
These consolidated financial statements have been approved on
behalf of Petrol AD by:
Svetoslav Yordanov Daniela Taskova-Stoykova
Executive Director Chief Accountant
May 30, 2012
Notes
to the consolidated financial statements
as of March 31, 2012
1. Legal status and main activity
Petrol AD (the Company) was registered in Sofia, Bulgaria. The
address of registration of the Company is 43 Cherni Vrah Blvd.,
Sofia. As at the end of the reporting period the majority
shareholder of the Company is Petrol Holding AD (Controlling
Company) with 55.48% ownership of the share capital (see also note
25).
Since July 1, 1998 Petrol AD has been registered as a public
company in the public register of the Commission for Financial
Supervision.
The main activity of the Company and its subsidiaries (the
Group) is retail trade with petroleum products and non-petroleum
goods, transport and other services. The Parent company is one of
the biggest trade companies in the Republic of Bulgaria which owns
the largest network of fuel stations in the country.
These consolidated financial statements were approved for issue
by the Management board on May 30, 2012.
2. Basis of preparation of the financial statements and accounting principles
2.1. General
2.1.1. Compliance
These consolidated financial statements have been prepared in
accordance with the International Financial Reporting Standards
(IFRS), as adopted by the European Union.
These consolidated financial statements have been prepared on a
historical cost basis, except for the provisions and the defined
benefit liability recognised at present value of expected future
payments.
2.1.2. Going concern assumption
These financial statements have been prepared under the going
concern assumption. This suggests that the Group will be able to
repay regularly its bond liabilities, commercial loans and interest
due in accordance with the contractual agreements.
2.2. Application of new and revised IFRS
2.2.1. Standards and interpretations effective and applied during the current reporting period
Some new standards, amendments and interpretations have been
effective for reporting periods beginning on or after January 1,
2012, and have been applied in the preparation of these financial
statements. The adoption of these amendments to existing standards
has not led to changes in the accounting policy of the Group.
2.2.2. Standards and interpretations, issued by the
International Accounting Standards Board (IASB) not yet applied
The following IFRSs, amendments to IFRSs and interpretations are
endorsed for adoption by the European Commission (EC) as at the
date of approval of these financial statements, but are not yet
effective:
-- Amendments to IAS 12 Income taxes - Recovery of Underlying
Assets, issued in December 2010 (effective for annual periods
beginning on or after January 1, 2012). The Group has chosen not to
apply this standard before its effective date. The Management
expects that the application of the standard in the period of
initial application would not have material effect on the financial
statements of the Group.
Standards and interpretations issued by IASB and not yet
endorsed by the European Commission
The following new and revised standards, interpretations and
amendments to existing standards were not endorsed by the EC as of
the reporting date and have not been taken into consideration by
the Group in the preparation of these financial statements. Their
effective dates will depend on the endorsement decision of the
EC.
-- IFRS 9 Financial Instruments (issued in November, 2009) and
Additions to IFRS 9 issued in October, 2010 (effective for annual
periods beginning on or after January 1, 2015;
-- IFRS 10 Consolidated Financial Statements, IFRS 11 Joint
Agreements, IFRS 12 Disclosure of Interest in Other Enterprises and
IFRS 13 Fair Value Measurement, issued in May 2011 (effective for
annual periods beginning on or after, January 1, 2013);
-- IAS 27 Separate Financial Statements (2011) amending IAS 27
(2008) and IAS 28 Investments in associates and joint ventures
(2011) amending IAS 28(2008), issued in May 2011 (effective for
annual periods beginning on or after January 1, 2013);
-- Amendments to IFRS 1 First-time adoption of IFRS - severe
hyperinflation and removal of fixed dates for first-time adopters,
issued in December 2010 (effective for annual periods beginning on
or after July 1, 2012);
-- Amendments to IAS 1 Presentation of Financial Statements -
Presentation of items in Other Comprehensive Income, issued in June
2011 (effective for annual periods beginning on or after July 1,
2012);
-- Amendments to IAS 19 Employee benefits - Improvements in
accounting for employee benefits, issued in June 2011 (effective
for annual periods beginning on or after January 1, 2013);
-- IFRIC 20 Stripping Costs in the Production Phase of a Surface
Mine, issued in December 2011 (effective for annual periods
beginning on or after January 1, 2013);
-- Amendments to IAS 32 Financial Instruments: Presentation -
compensation of financial assets and liabilities, issued in
December, 2011 (effective for annual periods beginning on or after,
January 1, 2014);
-- Amendments to IFRS 7 Financial Instruments: Disclosure -
offsetting financial assets and liabilities, issued in December,
2011 (effective for annual periods beginning on or after January 1,
2013);
-- Amendments to IFRS 1 First-time adoption of IFRS - Government
Loans, issued in March, 2012(effective for annual periods beginning
on or after January 1, 2013);
2.3. Functional and presentation currency of the separate financial statements
Functional currency is the currency of the primary economic
environment, in which the Group operates and primarily generates
and disburses cash. It reflects the main transactions, events and
conditions considered significant for the Group.
The Group's companies keep its records and prepare its financial
statements in the national currency of the Republic of Bulgaria -
Bulgarian Lev (BGN), which is adopted by the Group as a functional
currency.
These consolidated financial statements are presented in
thousands of BGN.
2.4. Foreign currency
Transactions in foreign currency are initially recorded at
amounts denominated in BGN at the official exchange rate of the
Bulgarian National Bank as of the date of the transaction. Foreign
exchange rate differences arising from settlement of foreign
exchange positions or from reporting these positions at rates
different from those of the initial recording, are reported in
profit and loss for the respective period.
Since January 1, 1999 the Bulgarian Lev has been fixed against
the Euro at rate 1.95583 BGN for 1 Euro.
The monetary positions denominated in foreign currency as at
March 31, 2012, December 31, 2011 and March 31, 2011 are stated in
the present consolidated financial statements at the closing
exchange rate of the Bulgarian National Bank. The closing exchange
rates of the BGN against USD as at the end of current and prior
reporting periods are as follows:
March 31, 2012: 1 USD = 1.46438 BGN.
December 31, 2011: 1 USD = 1.51158 BGN.
March 31, 2011: 1 USD = 1.37667 BGN.
2.5. Accounting assumptions and estimates
The application of IFRS requires that the Management makes
certain reasonable assumptions and accounting estimates in the
preparation of these consolidated financial statements, in order to
determine the value of some assets, liabilities, revenue and
expenses. These estimates and assumptions are based on the best
estimate of the Management, taking into consideration the
historical experience and analysis of all factors impacting the
circumstances as of the date of preparation of the consolidated
financial statements. The actual results could differ from the
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 29).
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 March 31, 2012 and December
31, 2011 and intragroup transactions as of March 31, 2012 and 2011,
as well as all intragroup profits and losses, including unrealised
profits and losses as of March 31, 2012 and 2011 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.
2.7. Non-controlling interest
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.
Acquisitions of non-controlling interests are accounted for as
transactions with owners in their capacity as owners and therefore
no goodwill is recognised as a result. Adjustments to
non-controlling interests arising from transactions that do not
involve the loss of control are based on a proportionate amount of
the net assets of the subsidiary.
2.8. Loss of control
n the loss of control, the Group derecognises the assets and
liabilities of the subsidiary, any non-controlling interests and
the other components of equity related to the subsidiary. Any
surplus or deficit arising on the loss of control is recognised in
profit or loss. If the Group retains any interest in the previous
subsidiary, then such interest is measured at fair value at the
date that control is lost. Subsequently it is accounted for as an
equity-accounted investee or as an available-for-sale financial
asset depending on the level of influence retained.
2.9. 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.
2.9. Associates (continued)
When the Group's share of losses exceeds its interest in an
equity-accounted investee, the carrying amount of that interest,
including any long-term interests that form part thereof, is
reduced to zero, and the recognition of further losses is
discontinued except to the extent that the Group has an obligation
or has made payments on behalf of the investee.
2.10. 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).
2.11. Prior period errors
Prior period errors are omissions from and misstatements in a
Group's financial statements for prior periods arising from a
failure to use or misuse of reliable information. This is
information, which was available when the financial statements for
those periods were authorised for issue and could reasonably be
expected to have been obtained and taken into account in the
preparation and presentation of these financial statements. Prior
period errors may occur at recognition, measurement, presentation
or disclosure of items in the financial statements. They are
corrected by retrospective restatement of comparative data or the
opening balances of assets, liabilities and equity (in case of
errors arisen in prior periods, which have not been presented in
the financial statements). Corrections are recognised in the first
set of financial statements authorised for issue after their
discovery including a statements of financial position at the
beginning of the earliest comparative period.
2.12. Changes in accounting policies
The Group changes its accountind policies only if the change is
required by an IFRS or results in the financial statements
providing reliable and more relevant information about the effects
of transactions, other events or conditions on the Group's
financial position, financial performance or cash flows.
Change in accounting policies arising from initial application
of an IFRS or an interpretation, is applied in compliance with the
transitional requirements in that IFRS or an interpretation.
When specific transitional provisions applying to that change
are not available or changes in accounting policy are voluntarily,
such changes are applied retrospectively by adjusting the opening
balance of each affected component of equity for the earliest prior
period presented and the other comparative amounts disclosed for
each prior period presented as if the new accounting policy had
always been applied. When applying an accounting policy
retrospectively, in its consolidated financial statements, the
Group presents an additional statement of financial position at the
beginning of the earliest comparative period.
2.13. Reclassifications
Reclassifications are changes in the presentation of certain
items in the financial statements, in order to improve the true and
fair presentation of information. These reclassifications are made
retrospectively with restatement in the opening balances of each
affected item in the financial statements. Additional statement of
financial position as of the earliest comparative period is
prepared and presented.
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 measured
initially at acquisition cost comprising purchase price, import
duties and non-refundable taxes, as well as any costs which are
directly attributable to bringing the asset to the location and
condition necessary for operating in the manner intended by
Management. Assets acquired through a business combination are
measured at fair value. After initial recognition property, plant
and equipment and intangible assets are carried at cost less
depreciation and amortisation and any impairment losses (see also
note 3.3).
When parts of an item of property, plant and equipment have
different useful lives, they are accounted for as separate
assets.
Subsequent costs including replacement of asset's components are
capitalised in the cost of the asset, only if they meet the
criteria for recognition of property, plant and equipment. The
carrying amount of the replaced items is derecognised in accordance
with the requirements of IAS 16 Property, Plant and Equipment. All
other subsequent costs are expensed in the period when
incurred.
Gains or losses on disposal of property, plant and equipment
(determined as a difference between the proceeds from disposal with
the carrying amount of the asset) are recognised net within other
income/ expenses in profit or loss for the period. When the use of
a property changes from owner-occupied to investment property, it
is reclassified as investment property.
Depreciation and amortisation are recognised over the estimated
useful lives applying the straight-line method. Depreciation and
amortisation are recognised in profit or loss of the current
period.
As at the end of each reporting period, the Group's Management
reviews useful lives and the depreciation/amortisation method of
property, plant and equipment and intangible assets. In case the
Management identifies differences between expectations and previous
accounting estimates, changes are made in accordance with the
requirements of IAS 8 Accounting policies, Changes in Accounting
estimates and Errors.
The estimated useful lives for the current and comparative
periods are as follows:
Useful life 2012 2011
Administrative and trade buildings 25 years 25 years
Machinery, 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/amortisation commences from the beginning of the
month following the month when the asset is available for use, and
ceases at the earlier of the date when 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.
3.1. Property, plant and equipment and intangible assets (continued)
Land, assets under construction and fully depreciated assets are
not depreciated/ amortised.
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 properties are carried at cost less depreciation and
amortisation and any impairment losses (see also note 3.3).
Depreciation and amortisation of investment properties are
recognised in profit or loss of the current period over the
estimated useful lives applying the straight-line method.
The estimated useful lives for the current and comparative
periods are as follows:
Useful life 2012 2011
Administrative and trade buildings 25 years 25 years
Machinery, plant and equipment 2, 3 25 years 2, 3 25 years
Office equipment 7 years 7 years
As at the end of each reporting period, the Group's Management
reviews useful lives and the depreciation/amortisation method of
investment property. In case the Management identifies differences
between expectations and previous accounting estimates, changes are
made in accordance with the requirements of IAS 8 Accounting
policies, Changes in Accounting estimates and Errors.
Gains or losses on disposal of investment property (determined
as a difference between the proceeds from disposal with the
carrying amount of the property) are recognised net within other
income/ expenses in profit or loss for the period.
3.3. Impairment of property, plant and equipment, intangible assets and goodwill
As of the end of the reporting period, the Group's management
estimates if there are any indications of impairment of property,
plant and equipment, intangible assets and goodwill. If any such
indication exists, then the asset's recoverable amount is
estimated. If 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 an asset's fair value
less costs to sell and its value in use. If the recoverable amount
of a certain asset (or a cash-generating unit) is lower than its
carrying amount, the carrying amount of the asset (or a
cash-generating unit) is reduced to its recoverable amount.
Impairment loss is immediately recognised as expense in the profit
or loss.
If the impairment loss subsequently reverses, the carrying
amount of the assets (or the cash-generating unit) is increased to
the revised recoverable amount. This increase cannot exceed the
carrying amount which would have been determined had no impairment
loss been recognized for the asset (cash generating unit) in prior
years. A reversal of an impairment loss is recognised immediately
as income in the 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 the lower of cost and net realisable
value. Cost comprises purchase price, transportation costs, customs
duties, excise duties and other similar costs. Net realisable value
represents the estimated selling price less estimated selling
expenses.
Upon consumption, the cost of inventories is calculated using
the following methods:
Retail of fuels weighted average cost
Wholesale of fuels first in, first out
Materials and other goods weighted average cost
3.5. Financial instruments
A financial instrument is any contract which gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity.
Financial assets and liabilities are recognised in the statement
of financial position when, and only when, the Group becomes a
party to the contractual agreements of the instrument. Financial
assets are derecognised from the statement of financial position
when, and only when, the contractual rights to the cash flows from
the asset expire or the asset is transferred and the transfer meets
the derecognition criteria under IAS 39 Financial instruments:
Recognition and Measurement. Financial liabilities are derecognised
from the statement of financial position only when they are
extinguished, i.e. the liability as per contractual agreement has
been discharged, cancelled or expires.
Upon initial recognition financial assets (liabilities) are
measured at fair value and all transaction costs directly
attributable to the acquisition or issue of the financial assets
(liabilities) except for financial assets (liabilities) at fair
value through profit or loss.
Financial assets and liabilities are offset and the net amount
presented in the statement of financial position when, and only
when, the Group has a legal right to offset the amounts and intends
either to settle on a net basis or to realise the asset and settle
the liability simultaneously.
For the purpose of subsequent measurement in accordance with the
requirements of IAS 39: Financial Instruments: Recognition and
Measurement, the Group classifies its financial assets and
liabilities in the following categories: loans granted and
receivables, financial liabilities at amortised cost. The Group
does not apply this classification of financial assets and
liabilities in their presentation in the statement of financial
position. Information about the respective categories of financial
instruments is included in note 34.
3.5.1. Loans granted and receivables
Loans granted and receivables are non-derivative financial
assets with fixed or determinable terms of settlement, which are
not quoted at an active market. In the statement of financial
position of the Group assets of this category are presented as
receivables on interest-bearing loans, trade and other receivables
and cash.
Interest-bearing loans, trade and other receivables
Subsequent to initial recognition, trade receivables and
receivables on interest-bearing loans are measured at amortised
cost using the effective interest rate method less any impairment
loss. Current receivables are not amortised. Impairment loss is
recognised, if any objective evidence exists that the asset is
impaired, for instance significant financial difficulties of the
debtor, probability that the debtor is entered into liquidation,
etc. (see also note 3.5.2).
3.5.1. Loans granted and receivables (continued)
Cash
For the purpose of the statement of the statement of cash flows,
cash comprises cash in hand and cash at banks. Cash in transit
comprises cash collected from petrol stations as at the end of the
reporting period but actually received in the bank accounts of the
Group in the beginning of the next reporting period.
3.5.2. Impairment of financial assets
As at the end of the reporting period the Management of the
Group reviews whether there are any objective indications of
impairment of all financial assets. A financial asset is considered
impaired, only when there is objective evidence that as a result of
one or more events occurred after its initial recognition expected
cash flows have decreased.
The Group considers evidence of impairment for financial assets
measured at amortised cost (loans and receivables) at both a
specific asset and collective level. All individually significant
assets are assessed for specific impairment. All individually
significant loans and receivables found not to be specifically
impaired are then collectively assessed for any impairment that has
been incurred but not yet identified. Assets that are not
individually significant are collectively assessed for impairment
by grouping together assets with similar risk characteristics.
In assessing collective impairment the Group uses historical
trends of the probability of default (usually overdue over a year),
the timing of recoveries and the amount of loss incurred, adjusted
for management's judgement as to whether current economic and
credit conditions are such that the actual losses are likely to be
greater or less than suggested by historical trends.
When such indications are identified, an impairment loss in
respect of the financial asset measured at acquisition cost is
calculated as the difference between its carrying amount and the
present value of the estimated future cash flows discounted at the
current market interest rate for similar assets.
Impairment loss for loans granted and receivables carried at
amortised cost is calculated as difference between carrying amount
and present value of future cash flows discounted with the initial
effective interest rate. Impairment loss is recognised in profit or
loss. It is recovered if the subsequent increase of the recoverable
amount can be objectively related to an event after the date on
which the impairment loss was recognised.
3.5.3. Financial liabilities carried at amortised cost
Subsequent to initial recognition, the Group measures all
financial liabilities at amortised costs, except for financial
liabilities at fair value through profit or loss, financial
liabilities that arise when a transfer of a financial asset does
not meet the derecognition requirements, financial guarantee
contracts, commitments to provide a loan at a below-market interest
rate. In the statement of financial position these liabilities are
presented as trade and other payables and interest-bearing
loans.
Trade and other payables
Trade and other payables arise as a result of purchase of goods
and services. Current liabilities are not amortised.
Interest-bearing loans
Interest-bearing loans are initially recognised at fair value
determined by the cash proceeds less transaction costs. Subsequent
to initial recognition, interest-bearing loans are measured at
amortised cost and any difference between initial and maturity
value is recognised in profit or loss over the loan period using
the effective interest rate method.
3.5.3. Financial liabilities carried at amortised cost (continued)
Finance costs including direct costs for obtaining the loan are
recognised using the effective interest rate method.
The effective interest rate method is a method of calculating
the amortised cost of a financial asset or liability and of
allocation interest income or expense over the relevant period. The
effective interest rate is the rate that exactly discounts the
expected future cash flows or proceeds to net carrying amount of
the asset and of the liability throughout the life of the financial
instrument, or where appropriate throughout a shorter period. In
calculation the effective interest rate the Group estimates cash
flows considering all contractual terms of the financial instrument
except for expected potential credit impairment losses. The
calculation takes into account taxes, transaction costs, premiums
and discounts paid or received between parties to the contract,
which are an integral part of the effective interest rate.
Interest-bearing loans are classified as current when they are
expected to be settled within a twelve-month period from the
reporting period.
3.5.4. 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. The share
capital also comprises the equity of the special purpose entities
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
Deferred income and deferred expenses in the statement of
financial position comprises revenue and expenses prepaid in the
current period but relating to future periods, such as guarantees,
insurance, subscriptions, rent, etc.
3.7. Retirement benefits obligations
The Government of the Republic of Bulgaria is responsible for
providing pensions under a defined benefit pension plan. Costs
related to payment of contributions under these schemes are
recognised in the profit or loss in the period they are
incurred.
In accordance with the Labour Code, the Group has an obligation
to pay retirement benefits to its employees upon retirement, based
on the length of service, age and labour category. Since these
benefits qualify for defined benefits plan in accordance with IAS
19 Employee benefits, in accordance with the requirements of this
standard the Group recognises the present amount of the benefits
calculated by an actuary expert as a liability. All actuary gains
and losses and past service costs are recognised immediately in
profit or loss.
3.8. Income tax
Income tax 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 consolidated financial
statements.
3.8. Income tax (continued)
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 in respect of all
taxable temporary differences, whereas deferred tax assets for
deductible temporary differences and tax loss are recognised only
if there is a probability for their reversal and if the Group will
be able to generate enough profit, from which they can be deducted.
Deferred tax assets are reviewed at each reporting date and are
reduced to the extent that it is no longer probable that the
related tax benefit is realised.
As at each reporting date the Group reviews its unrecognised
deferred tax assets. The Group recognises deferred tax assets not
recognised in prior periods to the extent to which a probability
has occurred the future taxable profit to allow the recovery of the
deferred tax asset.
Deferred tax assets and liabilities are calculated using the tax
rates that are expected in the period when the asset will be
realised or the liability settled, based on the information the
Group is provided for as at the date of financial statements
preparation. Deferred tax is recognised in profit or loss except
when it relates to a transaction or an event recognised in the same
or other period outside profit or loss in other comprehensive
income or directly in equity. In such cases the deferred tax is
also recognised in other comprehensive income or in equity without
reflecting it in profit or loss.
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.
Deferred tax assets and liabilities are presented on a net basis
if there are legal reasons for netting deferred tax assets and
liabilities and they are related to taxes on profit imposed by the
same tax authorities.
In accordance with the tax legislation enforceable for the years
ended 2012 and 2011 the tax rate applied in calculation of the tax
payables of the Group is 10%. For the calculation of the deferred
tax assets and liabilities as at March 31, 2012 and December 31,
2011 a tax rate of 10% has been used.
In determining the current deferred tax the Group takes into
account the effect of uncertain tax positions and whether
additional taxes or interests may be due. The Group believes that
the accruals for tax payables are adequate for all open tax periods
for a number of factors, including interpretations of tax law and
prior experience. This assessment relies on estimates and
assumptions and may involve a series of judgments about future
events. New information may become available that causes the Group
to change its judgment regarding the adequacy of existing tax
liabilities; such changes to tax liabilities will impact tax
expense in the period that such a determination is made.
3.9. Revenue and expenses recognition
3.9.1. Revenue from sales of goods, services and other income
Revenue and expenses are accounted for on an accrual basis,
regardless of the date of cash receipts and payments.
Revenue is recognised at the fair value of the consideration
received or receivable net of any granted discounts and including
the gross economic benefits received by or due to the Group. The
amounts gathered on behalf of third parties such as sales taxes
(value added tax) are excluded from revenue. Revenue generated from
sale of fuel is reported at 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 has not retained continual participation and
effective control over the management of the goods;
-- It is probable that the economic benefits associated with the
transaction will flow to the Group;
-- The amount of revenue and expenses incurred in respect of the
transaction can be reliably measured.
When the result of a transaction for services rendering 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 reliably
estimated, the revenue is recognised 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.
In exchange of assets, revenue/(expense) is reported as a result
of the exchange transaction to the amount of the difference between
the fair value of the received asset and the carrying amount of the
exchanged asset.
3.9.2. Finance income and finance costs
Borrowing costs, which may be directly attributable to the
acquisition, construction or production of an asset before it is
ready for the intended use or sale, shall be capitalised in the
cost of the asset. All other finance income and costs are accrued
through profit or loss for all instruments measured at amortised
cost using the effective interest rate method.
Gains and losses from exchange rate differences are reported
net.
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 operating lease contracts
are recognised in profit or loss under the straight-line method
over the contract term.
Revenue realised from assets under operating lease contracts is
recognised in profit or loss on a straight-line basis for the
contract term. Initial costs directly related to agreement
conclusion are capitalised in the cost of the asset and are
recognised as expenses on a straight-line basis for the operating
lease contract term..
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. Segments reporting
The information about operational segments 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. Determination of fair values
A number of the Group's accounting policies and disclosures
require the determination of fair value, for both financial and
non-financial assets and liabilities. Fair values have been
determined for measurement and/or disclosure purposes based on the
following methods. When applicable, further information about the
assumptions made in determining fair values is disclosed in the
notes specific to that asset or liability.
4.1. Investment property
The fair value of the investment properties is determined by
using services of a licensed expert valuer with required
professional qualification and experience in the location and
category of property to be valued. The fair value is based on a
market price, which is the estimated price at which a property
could be exchanged on the date of valuation between knowledgeable,
willing parties in normal market conditions after appropriate
marketing, in which the counterparties have acted consciously.
The fair value of land is determined based on the comparative
method and real estate agencies database. Buildings are valued at
more than one method as the market value is defined as the weighted
value of the results obtained by different methods and expert
weights according to the reliability of the information used and
the valuation experience. The valuation of other assets - machines,
equipment, fixtures and other, comes from the information available
and its reliability and faithfulness.. The new recoverable amount
is taken from manufacturers or brokers, exchanges, and foreign
trade organisations, adjusted by coefficients reflecting the
condition of valued assets. For assets with developed secondary
market, the method of market analogues is used.
4.2. Trade and other receivables
Determining the fair value of trade and other receivables
includes the following:
-- analysis of analytical trail balances and reporting of internal transformations;
-- differentiation between receivables and payables, excluding
the presumption of future offsetting of receivables from different
customers;
-- valuation of receivables based on their collectability;
-- revaluation of receivables in foreign currencies at the
respective rates as at the date of the financial statements.
4.3. Debenture loan
The fair value of the bond liability is determined on the basis
of a quotable price as at the date of the financial statement, in
case the instrument is quoted at an active market. In case it is
not actively traded, the fair value is determined on the basis of
alternative valuation techniques. The valuation techniques used
include analysis of discounted cash flows through expected future
cash flows and discount level in relation with the market, the
credit rating of the issuer, etc. The fair value is determined only
for disclosure purposes.
4.4. Trade and other payables
Determining the fair value of trade and other payables includes
the following:
-- complete review of payables as at the date of valuation;
-- identification of overdue payables and determination of interests and penalties due;
-- revaluation of payables in foreign currencies at rates as at
the date of the financial statements .
4.5. Receivables and payables in relation with interest-bearing loans
Fair values of received and granted trade loans are determined
for the purposes of disclosure and are calculated on the basis of
the present value of future cash flows of principals and interest
discounted at a market interest rate as at the date of the
financial statements.
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
Segment information, presented to the Group's management for the
periods ended as of March 31, 2012 and 2011 is as follows:
March 31, 2012 Wholesale Retail All other Total for
of fuels of fuels segments the Group
BGN'000 BGN'000 BGN'000 BGN'000
Total segment revenue 304,760 123,099 2,178 430,037
Inter-group revenue 93,297 6,751 1,440 101,488
Revenue from external
customers 211,463 116,348 738 328,549
Adjusted EBITDA (121) 880 457 1,216
Depreciation/amortisation 636 2,439 398 3,473
Impairment - (5) - (5)
March 31, 2011 Wholesale Retail All other Total for
of fuels of fuels segments the Group
BGN'000 BGN'000 BGN'000 BGN'000
Total segment revenue 327,007 119,748 2,218 448,973
Inter-group revenue 147,100 6,171 1,407 154,678
Revenue from external
customers 179,907 113,577 811 294,295
Adjusted EBITDA 6,458 4,096 748 11,302
Depreciation/amortisation 667 3,049 239 3,955
Impairment - - 1 1
The policies for recognition of revenue from 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.
5. Segments reporting (continued)
The Management of the Group evaluates the results from
performance of the segments on the basis of the adjusted EBITDA[1].
In the calculation of the adjusted EBITDA the effect of impairment
of assets 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:
March 31, March 31,
2012 2011
BGN'000 BGN'000
Adjusted EBITDA reporting segments 759 10,554
Adjusted EBITDA all other segments 457 748
Depreciation/amortisation (3,473) (3,955)
Impairment of assets 5 (1)
Finance expense, net (91) 17,507
Share of profit of associates - -
---------- ----------
Profit (loss) before taxes (2,343) 24,853
========== ==========
Revenue from external sales of segment Wholesale of fuels in the
first quarter of 2012 and 2011 includes sales to the largest
customer of the segment amounting to BGN 45,169 thousand and BGN
57,973 thousand, which represents respectively 21% and 32% from the
total external sales of the segment.
6. Revenue
March 31, March 31,
2012 2011
BGN'000 BGN'000
Sale of goods 324,897 290,687
Sale of services 2,738 2,809
---------- ----------
327,635 293,496
========== ==========
7. Other income
March 31, March 31,
2012 2011
BGN'000 BGN'000
Surplus of assets 492 320
Gain from sales of property, plant and
equipment and materials 179 139
Income from sales 694 278
Carrying amount (515) (139)
Gain from liquidation and sale of non-current
assets and materials 57 21
Income from liquidation of non-current
assets 111 21
Carrying amount (54) -
Insurance claims 108 126
Income from penalties 27 109
Other 51 84
---------- ----------
914 799
========== ==========
8. Materials and consumables
March 31, March 31,
2012 2011
BGN'000 BGN'000
Electricity and heating 1,050 954
Fuels and lubricants 841 880
Spare parts 166 178
Office consumables 128 149
Water 25 30
Working clothes 22 5
Advertising materials 18 9
Other 43 89
---------- ----------
2,293 2,294
========== ==========
9. Hired services
March 31, March 31,
2012 2011
BGN'000 BGN'000
Fees and commissions 766 1,092
State and municipal fees 661 420
Rents 591 799
Holding fee 591 605
Transport 467 422
Maintenance and repairs 465 413
Consulting and training 310 178
Insurances 286 293
Cash collection expense 266 328
Advertising 235 300
Communications 194 178
Security 132 109
Software licenses 119 179
Other 126 267
---------- ----------
5,209 5,583
========== ==========
10. Employee benefits expenses
March 31, March 31,
2012 2011
BGN'000 BGN'000
Wages and salaries 5,143 5,226
Social security contributions and benefits 1,217 1,113
---------- ----------
6,360 6,339
========== ==========
11. Other expenses
March 31, March 31,
2012 2011
BGN'000 BGN'000
Shortages and written-off assets 592 555
Taxes and charges 186 311
Entertainment expenses and sponsorship 165 315
Penalties and indemnities 134 61
Business trips 78 100
Scrapped assets 38 19
Impairment of assets (5) 1
Other 20 111
---------- ----------
1,208 1,473
========== ==========
12. Finance income and costs
March 31, March 31,
2012 2011
BGN'000 BGN'000
Finance income
Interest income, including: 1,924 2,429
Interest income on loans granted 1,776 1,807
Interest income on trade and other receivables 114 166
Other interest income 34 456
Foreign exchange rate gains, net 6,466 5,498
Gain from redeemed own bonds - 17,365
Other finance income 1 5
8,391 25,297
---------- ----------
Finance costs
Interest expenses, including: (7,905) (7,004)
Interest expenses on debenture loans (967) (4,402)
Interest expenses on trade and other payables (1,839) (869)
Interest expenses on bank loans (4,283) (812)
Interest expenses on leasebacks (575) (579)
Interest expenses on trade loans (212) (308)
Interest expenses on obligations under
finance lease (29) (34)
Foreign exchange rate losses, net - -
Bank fees, commissions and other costs
financial expenses (577) (786)
---------- ----------
(8,482) (7,790)
---------- ----------
Finance income (costs), net (91) 17,507
========== ==========
13. Taxation
Tax expense recognised in profit or loss comprises the amount of
current and deferred income tax in accordance with the requirements
of IAS 12 Income taxes.
March 31, March 31,
2012 2011
BGN'000 BGN'000
Current tax expense 299 489
Change in deferred taxes, incl.: (222) 493
Temporary differences recognised during
the year 35 1,440
Temporary differences originated during
the year (340) (942)
Prior year adjustments 83 (5)
Total tax expense (benefit) 77 982
========== ==========
The reconciliation between accounting loss and tax benefit is
presented in the table below:
March 31, March 31,
2012 2011
BGN'000 BGN'000
Accounting profit (loss) (2,343) 24,853
Applicable tax rate 10% 10%
Tax expense (benefit) at the applicable
tax rate (234) 2,485
Aggregate tax effect from permanent differences 80 234
Tax effect from unrecognised during the
current year temporary difference originated
during the current period 699 107
Tax effect from adjustments during the
current year of tax liability originated
in prior period - (1)
Recognised tax assets originated in prior
periods (269) 5
Tax effect from consolidation adjustments (199) (1,848)
---------- ----------
Tax expense 77 982
========== ==========
Tax authorities may inspect the companies in the Group within a
five-year period following the reported tax year and may impose
additional taxes or penalties in accordance with the interpretation
of the tax legislation. The Management of the Group is not aware of
any circumstances which may give rise to a contingent additional
liability in this respect.
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:
13. Taxation (continued)
March 31, 2012 December 31, 2011
Temporary Tax Temporary Tax
difference effect difference effect
BGN'000 BGN'000 BGN'000 BGN'000
Balance at the beginning
of the period
Property, plant and equipment (25,110) (2,510) (27,401) (2,740)
Tax loss carry forward 15,099 1,510 33,270 3,328
Unused paid leave and
other provisions 1,318 130 1,238 125
Excess of interest payments - - 18,807 1,879
Investments in associates (16,869) (1,687) (16,869) (1,687)
Subsequent measurement
of assets 2,366 237 - -
Impairment of assets 21,645 2,164 15,354 1,535
Other, including unpaid
benefits to individuals 8,234 824 550 55
------------ -------- ------------ --------
6,683 668 24,949 2,495
============ ======== ============ ========
Originated during the
period
Property, plant and equipment 73 7 379 39
Tax loss carry forward 1,682 168 15,099 1,510
Unused paid leave and
other provisions 235 24 449 42
Excess of interest payments - - - -
Subsequent measurement
of assets 1,328 132 2,366 237
Impairment of assets - - 11,819 1,181
Other, including unpaid
benefits to individuals 95 9 8,066 807
------------ -------- ------------ --------
3,413 340 38,178 3,816
============ ======== ============ ========
Recognised during the
period
Property, plant and equipment 91 8 1,912 191
Unused paid leave and
other provisions (71) (7) (369) (37)
Excess of interest payments - (261) (26)
Impairment of assets (17) (2) (3,735) (373)
Other, including unpaid
benefits to individuals (346) (34) (382) (38)
------------ -------- ------------ --------
(343) (35) (2,835) (283)
============ ======== ============ ========
Adjustments
Property, plant and equipment (51) (5) - -
Tax loss carry forward - - (33,270) (3,328)
Excess of interest payments - - (18,546) (1,853)
Impairment of assets - - (1,793) (179)
Other, including unpaid
benefits to individuals (782) (78) - -
(833) (83) (53,609) (5,360)
============ ======== ============ ========
Balance at the end of
the period
Property, plant and equipment (24,997) (2,500) (25,110) (2,510)
Tax loss carry forward 16,781 1,678 15,099 1,510
Unused paid leave and
other provisions 1,482 147 1,318 130
Subsequent measurement
of assets 3,694 369 2,366 237
Investments in associates (16,869) (1,687) (16,869) (1,687)
Impairment of assets 21,628 2,162 21,645 2,164
Other, including unpaid
benefits to individuals 7,201 721 8,234 824
------------ -------- ------------ --------
8,920 890 6,683 668
============ ======== ============ ========
14. Property, plant and equipment and intangible assets
Land Buildings Plant Vehicles Other Assets Intangible Total
and assets under assets
equipment construc-tion
BGN'000
BGN'000 BGN'000 BGN'000 BGN'000 BGN'000 BGN'000
BGN'000
Cost
Balance at
January 1,
2011 44,612 57,856 152,723 18,821 14,408 6,721 5,211 300,352
--------- ---------- ----------- --------- --------- --------------- ----------- ---------
Additions - 27 136 - 21 1,160 - 1,344
Transfers - - 109 - - (109) - -
Disposals (51) (8) (301) (680) (3) (7) - (1,050)
--------- ---------- ----------- --------- --------- --------------- ----------- ---------
Balance at
March 31,
2011 44,561 57,875 152,667 18,141 14,426 7,765 5,211 300,646
--------- ---------- ----------- --------- --------- --------------- ----------- ---------
Additions 93 29 1,129 442 112 7,491 394 9,690
Transfers (1,801) (508) 9,400 39 238 (12,746) 60 (5,318)
Disposals (221) (340) (5,586) (3,031) (523) (381) (158) (10,240)
--------- ---------- ----------- --------- --------- --------------- ----------- ---------
Balance at
December 31,
2011 42,632 57,056 157,610 15,591 14,253 2,129 5,507 294,778
--------- ---------- ----------- --------- --------- --------------- ----------- ---------
Additions - - 384 - 60 980 9 1,433
Transfers - - 250 (22) 9 (341) 82 (22)
Disposals (9) (20) (79) (80) (16) - - (204)
--------- ---------- ----------- --------- --------- --------------- ----------- ---------
Balance at
March 31,
2012 42,623 57,036 158,165 15,489 14,306 2,768 5,598 295,985
--------- ---------- ----------- --------- --------- --------------- ----------- ---------
Accumulated
depreciation/
Amortisation
Balance at
January 1,
2011 - 21,714 80,300 14,403 9,975 - 1,909 128,301
Charged for
the period - 478 2,394 423 292 - 266 3,853
Disposals - (5) (268) (630) (3) - - (906)
--------- ---------- ----------- --------- --------- --------------- ----------- ---------
Balance at
March 31,
2011 - 22,187 82,426 14,196 10,264 - 2,175 131,248
--------- ---------- ----------- --------- --------- --------------- ----------- ---------
Charged for
the period - 1,350 6,089 1,258 799 - 803 10,299
Transfers - (179) (1,751) - (20) - - (1,950)
Disposals - (245) (3,946) (2,891) (470) - (157) (7,709)
--------- ---------- ----------- --------- --------- --------------- ----------- ---------
Balance at
December 31,
2011 - 23,113 82,818 12,563 10,573 - 2,821 131,888
--------- ---------- ----------- --------- --------- --------------- ----------- ---------
Charged for
the period - 458 1,799 387 254 - 282 3,180
Transfers - 16 72 (42) - - - 46
Disposals - (13) (25) (68) (12) - - (118)
--------- ---------- ----------- --------- --------- --------------- ----------- ---------
Balance at
March 31,
2012 - 23,574 84,664 12,840 10,815 - 3,103 134,996
--------- ---------- ----------- --------- --------- --------------- ----------- ---------
Carrying amount
at January
1, 2011 44,612 36,142 72,423 4,418 4,433 6,721 3,302 172,051
========= ========== =========== ========= ========= =============== =========== =========
Carrying amount
at March 31,
2011 44,561 35,688 70,241 3,945 4,162 7,765 3,036 169,398
========= ========== =========== ========= ========= =============== =========== =========
Carrying amount
at December
31, 2011 42,632 33,943 74,792 3,028 3,680 2,129 2,686 162,890
Carrying amount
at March 31,
2012 42,623 33,462 73,501 2,649 3,491 2,768 2,495 160,989
========= ========== =========== ========= ========= =============== =========== =========
14. Property, plant and equipment and intangible assets (continued)
As of March 31, 2012 property, plant and equipment with carrying
amount of BGN 41,827 thousand serves as collaterals under bank
loans extended to the Group, the Controlling Company and other
related parties (see also note 31.2).
15. Investment properties
March December
31, 2012 31, 2011
BGN'000 BGN '000
Cost
Balance at the beginning of the period 36,094 30,752
Acquisitions - 5
Transfers 22 -
Balance as at March 31 36,116 30,757
---------- ----------
Acquisitions - 42
Transfers - 5,318
Disposals - (23)
---------- ----------
Balance at the end of the period 36,116 36,094
---------- ----------
Accumulated Depreciation
Balance at the beginning of the period 2,627 49
Charged for the period 293 102
Transfers (46) -
---------- ----------
Balance as at March 31 2,874 151
---------- ----------
Charged for the period - 548
Transfers - 1,950
Disposals - (22)
----------
Balance at the end of the period 2,874 2,627
---------- ----------
Carrying amount at the beginning of the
period 33,467 30,703
========== ==========
Carrying amount at the end of the period 33,242 33,467
========== ==========
The management of the Group makes periodic estimation of the
investment properties fair value. Part of the investment properties
were last appraised as at December 31, 2010 and the other part as
at December 31, 2011. As there was no significant increase or
decrease of the price levels on the real estate market in 2011 and
2012, the management believes that the valuation as at December 31,
2010 still can be used as of the date of these consolidated
financial statements. Estimates of the fair value are made using
the methods of comparable amounts and capital expenditure method
for land and buildings and net asset value and discounted net cash
flows for the petrol storage facilities. For disclosure purposes,
fair value of investment properties of the Group as of March 31,
2012 is around BGN 45,110 thousand.
As of March 31, 2012, investment properties with carrying amount
of BGN 24,658 thousand serve as collaterals under bank loans
extended to the Group (see also note 23).
16. Investments in other companies
As of March 31, 2012 and December 31, 2011 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.
17. Goodwill
March December
31, 2012 31, 2011
BGN '000 BGN '000
Cost 19,575 19,575
Impairment loss (1,243) (1,243)
---------- ----------
18,332 18,332
========== ==========
As of March 31, 2012 goodwill with carrying amount of BGN 18,332
thousand has arisen as a result of the acquisition of the
subsidiary Naftex Petrol EOOD and BPI EAD.
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 March 31, 2012 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
March 31, 2012. The assumption that the net cash flows after the
last forecast period will be constant is used. The used discount
rate of 9.5% is calculated as subsidiary's weighted average cost of
capital of the subsidiary. The result of the applied method shows
that the recoverable amount of the cash flows generated by Naftex
Petrol EOOD exceeds the carrying amount of the goodwill as of March
31, 2012 and therefore no impairment loss on goodwill is
recognized.
18. Interest-bearing loans granted
March December
31, 31,
2012 2011
BGN '000 BGN'000
Long-term loans granted
Interest-bearing loans to related parties 21,034 21,034
Initial cost 25,262 25,262
Impairment loss (4,228) (4,228)
----------
21,034 21,034
---------- ---------
Short-term loans granted
Interest-bearing loans and deposits to related
parties 105,893 102,299
Initial cost 106,916 103,322
Impairment loss (1,023) (1,023)
Interest-bearing loans to non-related parties 1,737 2,138
----------
107,630 104,437
---------- ---------
128,664 125,471
========== =========
Receivables on interest-bearing loans granted to related parties
are disclosed in note 30.
The Group considers that the carrying amount of interest-bearing
loans granted does not differ substantially from their fair value
as of March 31, 2012 and December 31, 2011.
19. Inventories
March December
31, 31,
2012 2011
BGN'000 BGN'000
Non-current assets
Compulsory stock of fuel 69,081 69,081
--------- ---------
69,081 69,081
--------- ---------
Current assets
Goods, including: 52,297 50,705
Fuels 43,078 43,510
Lubricants and other goods 9,219 7,195
Materials 2,386 2,473
---------
54,683 53,178
--------- ---------
123,764 122,259
========= =========
As of March 31, 2012 and December 31, 2011 the Group stores
compulsory stock of fuel in compliance with the Mandatory Stock of
Crude Oil and Oil Products Act amounting to BGN 69,081
thousand.
As of March 31, 2012 available fuels are pledged as collateral
for bank loans received by the Group (see also note 23).
20. Trade and other receivables
March 31, December
31,
2012 2011
BGN'000 BGN'000
Receivables from customers, incl. 74,471 61,172
Initial cost 80,480 67,181
Allowance for doubtful debts (6,009) (6,009)
Litigations and writs 9,155 8,964
Initial cost 3,754 3,563
Allowance for doubtful debts (571) (571)
Tax audit act 5,972 5,972
Receivables from related parties 3,262 3,359
Initial cost 7,095 7,197
Allowance for doubtful debts (3,833) (3,838)
Refundable taxes, incl. 1,731 1,560
VAT 1,600 1,512
Other taxes 131 48
Advances granted 1,105 686
Initial cost 2,154 1,735
Allowance for doubtful debts (1,049) (1,049)
Guarantees for tender participation 960 2,217
Other 778 7,723
Initial cost 1,689 8,634
Allowance for doubtful debts (911) (911)
---------- ---------
91,462 85,681
========== =========
The Group considers that the carrying amount of trade and other
receivables does not significantly differ from their fair value as
of March 31, 2012 and December 31, 2011.
Receivables from related parties are disclosed in note 30.
21. Cash
March 31, December
31,
2012 2011
BGN'000 BGN'000
Cash at banks 4,704 5,826
Cash in transit 2,736 3,126
Cash on hand 125 123
-------------- ---------
Cash as per cash flow statement 7,565 9,075
-------------- ---------
Restricted cash 434 -
-------------- ---------
Cash as per statement of financial position 7,999 9,075
============== =========
As of March 31, 2012 cash at the amount of BGN 434 thousand is
presented as restricted cash which serves as guarantees for tender
participation.
Cash in transit consists of cash collected from the fuel
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
As of March 31, 2012 cash at the amount of BGN 4,325 thousand
(2011: BGN 5,206 thousand) serve as collateral under utilized bank
loans (see also note 23).
22. Share capital
The share capital of the Group is presented at its nominal
value, according to the court decision for registration.
As of March 31, 2012 and December 31, 2011 the shareholders of
the Parent Company are as follows:
Shareholders March December
31, 31,
2012 2011
% of share % of share
capital capital
Petrol Holding AD 55.48% 55.48%
Naftex Petrol EOOD 41.93% 41.89%
Ministry of Economics 0.65% 0.65%
Other minority shareholders 1.94% 1.98%
100.00% 100.00%
============ ============
23. Interest-bearing loans received
March 31, December
31,
2012 2011
BGN'000 BGN'000
Non-current liabilities
Loans from financial institutions 115,484 118,663
Debenture loans 40,578 47,379
Liabilities under leaseback agreements 37,951 38,986
194,013 205,028
========== =============
Current liabilities
Loans from financial institutions 65,813 69,265
Debenture loans 926 6,165
Liabilities under leaseback agreements 2,084 1,561
Trade loans from related parties 9,178 11,475
78,001 88,466
========== =============
272,014 293,494
========== =============
The liabilities to related parties are disclosed in note 30.
23.1. Debenture 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 bond. The bond term is 5 years and the maturity date is
in October 2011. The principal is due in one payment at the
maturity date. At the general meetings of the bondholders conducted
in October and December 2011, it was decided to extend the term of
the issue until January 26, 2017.
The issue is secured by the Group's receivables on granted loans
to related parties and a corporate guarantee issued by a
subsidiary. Interest is paid once a year. The annual effective
interest rate after the extension is 8.7%. The purpose of issue is
providing of working capital, financing in investment projects and
restructuring of a previous Group's debt.
In 2011 the Group repurchased bonds with face value EUR 73,772
thousand. As at December 31, 2011 the remainder of the issued bonds
is with nominal value EUR 87,038 thousand. For presentation
purposes in these consolidated financial statements they are
reduced by the repurchased principal at nominal value EUR 61,993
thousand, of which EUR 55,166 thousand will be cancelled legally in
December 2012, as it serves as collateral of a loan of a related
party.
In 2012 the Group repurchased bonds with face value EUR 3,831
thousand.
The debenture loans are presented in the consolidated financial
statements at amortised cost.
23.2. Leaseback agreements
In prior reporting periods, the Group has signed several
contracts for sale of property in which the seller agrees to
repurchase the assets under finance lease. That scheme, also known
as leaseback, in fact is a mean of granting financing and the asset
serves as collateral. Proceeds from leaseback agreements are
presented as liabilities on received interest-bearing loans (see
also note 3.10.3).
Nominal interest Maturity March December
31, 31,
2012 2011
BGN'000 BGN'000
1m Euribor
Hotel complex in Burgas + 2.25%
(min 0.25%) 07.2023 21,232 21,515
Administrative building 1m Euribor
in Varna + 2.25%
(min 5.25%) 04.2023 5,433 5,513
Administrative building 1m Euribor
in Sofia + 2.25%
(min 5.25%) 04.2023 8,983 9,047
Fuel storage depot in
Svilengrad BIR + 1.75% 12.2020 4,387 4,472
--------- ---------
40,035 40,547
========= =========
The effective interest rate on leaseback agreements is within
the range of 5.57% to 5.71%.
The obligations under leaseback agreements are secured by the
Controlling Company.
23.3. Bank loans
Nominal interest Maturity March December
31, 31,
2012 2011
BGN'000 BGN'000
Investment loan 8.5% 11.2018 119,222 120,279
3m Euribor
+ 3.1% (min
Investment loan 7%) 2.2018 3,329 3,441
Working capital loan 9% 7.2014 44,078 49,528
3m Euribor
+ 7.6% (min
Working capital loan 9%) 12.2014 14,668 14,680
181,297 187,928
========= =========
The average effective interest rate on loans from financial
institutions is within the range of 4% to 10%.
Except the above mentioned collaterals, liabilities of the Group
on loans received from financial institutions are secured with
property, plant and equipment, inventory, cash and receivables of
the Group, as well as guarantees, promissory notes and assets of
related parties.
24. Obligations under finance lease
Minimum lease payments Present value of
minimum lease payments
March December March December
31, 2012 31, 2011 31, 2012 31, 2011
BGN'000 BGN'000 BGN'000 BGN'000
Amounts payable under
finance leases
Within one year 849 1,051 768 949
From one to two years 783 791 731 723
From three to five
years 822 1,026 792 982
Less: Interest payable
Within one year (81) (102) - -
From one to two years (52) (68) - -
From three to five
years (30) (44) - -
Present value of finance
lease obligations 2,291 2,654 2,291 2,654
------------ ----------- ------------ ------------
Less: Present value
of finance lease obligations
with maturity less
than 1 year (768) (949)
------------ ------------
Present value of finance
lease obligations with
maturity over 1 year 1,523 1,705
============ ============
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.
25. Retirement benefits obligations
The Group accrues liabilities for retirement benefits at the
amount of BGN 350 thousand (BGN 22 thousand as short-term portion
and BGN 328 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%.
26. Trade and other payables
March December
31, 31,
2012 2011
BGN'000 BGN'000
Payables to suppliers 210,062 204,339
Tax payables, incl.: 84,300 53,907
VAT 48,756 14,330
Excise duties and other taxes 35,544 39,577
Advances received 12,602 15,538
Payables to personnel and social security
funds 3,079 3,145
Related party payables 1,248 1,805
Deferred income 126 295
Other 1,996 2,289
--------- ---------
313,413 281,318
========= =========
Related party payables are disclosed in note 30.
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:
March December
31, 31,
2012 2011
BGN'000 BGN'000
Balance at the beginning of the period 688 747
Accrued during the period 235 309
Utilised during the period (71) (368)
Balance at the end of the period, including: 852 688
========= =========
Paid leave 725 588
Social security contributions 127 100
The balance at the end of the period is presented in the
consolidated 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.
27. 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.
March 31, December
31, 2011
2012 BGN'000
BGN'000
Income tax payable (recoverable) as of
January 1 54 3,562
Accrued corporate income tax 299 1,834
Corporate income tax paid (272) (5,260)
Income tax receivable used for settlement
of other tax payables - (82)
Income tax payable at the end of the period 81 54
========== ==========
28. Subsidiaries
The subsidiaries, included in the consolidation, over which the
Group has control as of March 31, 2012 and December 31, 2011 are as
follows:
Subsidiary Main activity Investment Investment
as of as of
March December
31, 2012 31, 2011
Naftex Petrol EOOD Wholesale with fuels 100% 100%
Petrol Trans Express
EOOD Transport services 100% 100%
Service and maintenance
Petrol Technika EOOD of fuel stations 100% 100%
Petrol Gas EOOD Wholesale with fuels 100% 100%
Petrol Properties Real estate and moveable
EOOD property trade 100% 100%
Management, rent and
Elite Petrol AD sale of properties 99.99% 99.99%
Management, rent and
sale of properties and
Eurocapital-Bulgaria construction works through
EAD sub-contractors 100% 100%
BPI EAD Rent of property 100% 100%
Security services - personal
Naftex Security EAD and properties 100% 100%
Legal advises, management
Jurex Consult AD and consulting services 79.95% 79.95%
Trade with oil and oil
Varna Storage EOOD products 100% 100%
Naftex Petrol Trade Trade with oil and oil
EOOD products 100% 100%
In January 2011, the Management Board took a decision to tender
purchase of the shares of the minority equity owner of Petrol Gas
EOOD for BGN 1. The offer was accepted by the counter-part, the
transaction was fulfilled and as a result, the legal form of the
subsidiary was changed to sole limited liability company.
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.
In December 2011 the Management Board of the Parent Company
passed a resolution to increase the capital of its subsidiary Varna
Storage EOOD by BGN 18,732 thousand through in-kind contribution of
property, plant and equipment with carrying amount of BGN 3,055
thousand, located in Varna fuel storage depot. As at the date of
these financial statements, the increase in the capital is in
process of registration.
The fair value of the investments in subsidiaries is not
disclosed due to lack of a quoted price at an active market.
29. 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 March 31,
2012 and December 31, 2011 are as follows:
Name of SPE Main activity
Petrol Trade EOOD Import of petroleum products
Naftex Trade EOOD Import of petroleum products
30. Disclosure of related parties and transactions
The related parties which the Parent Company controls and has
significant influence on are disclosed in notes 28 and 29.
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 Burgas Company under common control
EOOD
BC Izvor AD Company under common control
Ross Oil EOOD Company under common control
Air Lazur - General Aviation
EOOD Company under common control
Transcard D Company under common control
Morsko Kazino D Company under common control
Transat AD Company under common control
Varna Business Services
EOOD Company under common control
rans Operator D Company under common control
Transcard Financial Services
EAD Company under common control
ma Sport E D Company under common control
Balneohotel Pomorie AD Company under common control
PSFC Chernomoretz D Company under common control
Black Sand Resort AD Company under common control
SOCCRAT EAD Company under common control
Federal Bulgaria Management
AD Company under common control
Petrol Card Service EOOD Company under common control
Vratzata OOD Company under common control
Transcard Payment Services Company under common control
EAD
30. Disclosure of related parties and transactions(continued)
Related party
Bulgarian Rose Gardens EOOD Company under common control
Francis Residence EOOD Company under common control
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 AD Associate of Petrol Holding 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 2012 and 2011 is as follows:
Related parties March March March March
31, 31, 31, 31,
2012 2011 2012 2011
BGN'000 BGN'000 BGN'000 BGN'000
Sales Sales Purchases Purchase
Controlling Company 95 92 643 672
Companies under common
control 530 592 453 589
Associates of Petrol
Holding AD - 67 - 1
625 751 1,096 1,262
======== ======== ========== =========
Related parties March March March March
31, 31, 31, 31,
2012 2011 2012 2011
BGN'000 BGN'000 BGN'000 BGN'000
Finance Finance Finance Finance
income income cost cost
Controlling Company 1,742 19,114 15 18
Companies under common
control 3 113 - 5
Associates of Petrol
Holding AD - 2 - -
Key management - - 197 290
1,745 19,229 212 313
======== ======== ======== ========
30. Disclosure of related parties and transactions(continued)
As of March 31, 2012 and December 31, 2011 the outstanding
balances with related parties are as follows:
Related parties March December March December
31, 31, 2011 31, 31, 2011
2012 2012
BGN'000 BGN'000 BGN'000 BGN'000
Receivables Receivables Payables Payables
Controlling Company, incl. 127,777 124,268 2,933 3,318
Long-term interest-bearing
loans 21,034 21,034 - -
Short-term interest-bearing
loans 105,893 102,299 1,885 1,869
Companies under common
control, incl. 1,240 1,253 199 182
Associates of Petrol Holding
AD 19 18 1 2
Key management staff,
incl. 1,153 1,153 7,293 9,778
Short-term interest-bearing
loans - - 7,293 9,606
------------ ------------ --------- ----------
130,189 126,692 10,426 13,280
============ ============ ========= ==========
As of March 31, 2012 the Group has granted to its Controlling
Company unsecured interest bearing loans with interest rate in the
range from 3.75% to 9.50%, which are fully disbursed.
The total amount of management remuneration of the members of
the Board of Directors and of the Supervisory Board, included in
the employee benefits expenses amount to BGN 270 thousand (2011:
BGN 286 thousand).
31. Contingent assets and liabilities
31.1. Contingent assets
In 2006 the Group invoiced and recognized 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 has not been recognized in the consolidated financial
statements.
31.2. Contingent liabilities
As a result of the import of fuels in 2011 the Group is obliged
to establish and store fuels for a period of one year starting from
May 1, 2012, under the Mandatory Stocks of Crude Oil and Petroleum
Products Act (MSCOPPA).
As of March 31, 2012 assets with a carrying amount of BGN 13,477
thousand are mortgaged and pledged as collateral on bank loans,
granted to related parties.
[1] EBITDA (earnings before interest, tax, depreciation and
amortisation)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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