Financial statement

Revenues from electricity sold

22

13,221,560

13,859,090

Other operational revenues

23

627,081

918,663

13,848,641

14,777,753

Lignite production costs

24, 25, 26,27, 28

(6,535,531)

(5,814,234)

Amortization and depreciation

24

(1,654,815)

(1,514,952)

Expenses for employees

25

(1,646,029)

(1,577,716)

Maintenance and insurance costs

26

(365,254)

(467,811)

Raw material and expendables

27

(1,709,462)

(3,720,123)

Other operational revenues

28

(854,394)

(791,096)

Value adjustments and write-off of irrecoverable receivables

29

(986,788)

(578,340)

Income from operations

96,368

313,481

Revenues from financing activities

30

114,326

79,900

30

(277,285)

(250,586)

(162,959)

(170,686)

(66,591)

142,795

Tax expense

31

(65,973)

(95,033)

(Loss) / Profit for the financial year

(132,564)

47,762

Other comprehensive income for the year

-

-

Total comprehensive income for the year

(132,564)

47,762

Non-current assets

Land, plants and equipment

6

39,878,841

36,170,775

Intangible assets

6

465,722

470,814

Investments in subsidiaries

7

609,939

609,939

Financial assets available for sale

8

1,857

9,357

Long-term receivables

9

1,361,574

2,291,217

Long-term deposits

10

-

960

Other financial assets

11

13,471

13,454

42,331,404

39,566,516

Current assets

Inventories

12

2,797,696

2,738,717

Receivables from buyers and other receivables

13

4,260,486

4,622,932

Prepaid expenses

14

1,112,288

1,434,473

Short-term deposits in banks

15

20,171

3,000

Cash and cash equivalents

16

97,068

654,176

8,287,709

9,453,298

Total assets

50,619,113

49,019,814

Capital and reserves

Equity

31,738,878

31,738,878

Reserves

1,193,140

1,145,378

Other capital

1,429,601

1,429,662

Retained earnings

91,595

271,921

Total capital and reserves

17

34,453,214

34,585,839

Non-current liabilities

Loans at interest

18

9,989,010

7,605,732

Provisions

19

673,361

589,151

Deferred assistance

20

30,848

33,426

10,693,219

8,228,309

Current liabilities

Loans at interest

18

1,399,516

1,467,918

Liabilities towards suppliers and other current liabilities

21

4,073,164

4,737,748

5,472,680

6,205,666

Total liabilities

16,165,899

14,433,975

Total capital and reserves and liabilities

50,619,113

49,019,814

Operations

(Loss) / Profit before taxation

(66,591)

142,795

Adjustments for:

Depreciation and amortization

2,249,127

2,031,023

Value adjustment of financial assets available for sale

7,500

-

Value adjustment of deposits

3,000

-

Value adjustment and write-off of irrecoverable receivables

976,288

578,340

Foreign exchange gains, net

46,376

3,128

Interest expenses

203,291

227,398

Shortages

2,042

943

Land re-cultivation provisions

93,064

93,047

Employee benefits provisions

-

20,000

Revenues from release of employee benefits provisions

(4,422)

-

Provisions for potential losses in litigations

47,389

83,611

Value of land, plants and equipment sold and removed from inventory, not written-off

4,421

5,260

Receivables from transfer of assets of the liquidated subsidiary ROIS dooel, Novaci

-

(229)

Receivables from write-off of liabilities

(3,041)

(15,835)

(Receivables) from amortization of deferred assistance

(2,315)

(4,631)

Receivables from assessment of land, plants and equipment, net

-

(105,521)

Receivables from participation in income of subsidiaries

(84,053)

(26,423)

Operational income before changes in working capital

3,472,076

3,032,906

Changes in working capital

Inventories

(36,260)

(110,221)

Long-term receivables, receivables from buyers and other receivables

764,389

(185,078)

Liabilities to suppliers and other liabilities and provisions

(740,641)

580,344

3,459,564

3,317,951

Interest paid

(247,474)

(206,970)

Income tax paid

(115,162)

(135,142)

3,096,928

2,975,839

Investments

Purchase of land, plants and equipment and intangible assets, net of receivables

(5,981,650)

(6,225,741)

Collection of / (Investments in) deposits in banks

(19,211)

103,540

Repaid loans from domestic legal entities

(17)

(8)

Investments in subsidiaries

-

(7,037)

Receivables from participation in income of receivables

84,053

26,423

(5,916,825)

(6,102,823)

Financial activities

Receivables from loans, net

2,300,242

1,976,360

Dividends paid

(37,453)

-

2,262,789

1,976,360

Net changes of cash

(557,108)

(1,150,624)

Cash at beginning of year

16

654,176

1,804,800

Cash at year end

16

97,068

654,176

As on 1 January 2013

31,738,878

1,145,378

1,429,662

271,921

34,585,839

Allocation of 2012 profits

-

47,762

-

(47,762)

-

Other

-

 -

(61)

 -

(61)

Transactions with owners

-

47,762

(61)

(47,762)

(61)

(Loss) for the year

-

-

-

(132,564)

(132,564)

Other comprehensive income

-

-

-

-

-

Total comprehensive income

-

-

-

(132,564)

(132,564)

As on 31 December 2013

31,738,878

1,193,140

1,429,601

91,595

34,453,214

As on 1 January 2012

31,738,878

1,138,356

1,429,654

268,634

34,575,522

Legal reserves set aside

-

7,022

-

(7,022)

-

Dividends

-

-

-

(37,453)

(37,453)

Other

-

-

8

-

8

Transactions with owners

-

7,022

8

(44,475)

(37,445)

Profit for the year

-

-

-

47,762

47,762

Other comprehensive income

-

-

-

-

-

Total comprehensive income

-

-

-

47,762

47,762

As on 31 December 2012

31,738,878

1,145,378

1,429,662

271,921

34,585,839

Revenues from sale of electricity to EVN Makedonija AD, Skopje

11,375,553

11,692,292

Revenues from sale of electricity to Mepso AD, Skopje

958,417

898,495

Revenues from sale of overnight surpluses

667,421

1,169,991

Revenues from sale of electricity, heating energy and heated water to qualified and end users

220,169

98,312

13,221,560

13,859,090

Revenues from sale of other products and services

394,931

468,464

Revenues from participation in income of subsidiaries

84,053

26,423

Compensation against insured damages

50,827

116,059

Release of employee benefits provisions

4,422

-

Write-off of short-term liabilities

3,041

15,835

Revenues from amortization of deferred assistance

2,315

4,631

Revenues from rent

1,477

1,418

Penalties collected

279

106,716

Income from assessment of land, plants and equipment (Note 6)

-

105,624

Receivables from transfer of assets of the liquidated subsidiary ROIS dooel, Novaci

-

229

Receivables from discounts

-

23

Other

85,736

73,241

627,081

918,663

Depreciation

2,121,727

1,914,499

Amortization

127,400

116,524

Expenses for the year

2,249,127

2,031,023

Less: lignite production costs

(594,312)

(516,071)

1,654,815

1,514,952

Net wages, personal income tax and contributions

3,170,384

2,898,158

Other mandatory compensations for employees

224,992

168,095

Employee benefits provisions

-

20,000

3,395,376

3,086,253

Les: lignite production costs

(1,749,347)

(1,508,537)

1,646,029

1,577,716

Maintenance costs

3,268,382

2,666,037

Insurance costs

212,309

208,304

3,480,691

2,874,341

Les: lignite production costs

(3,115,437)

(2,406,530)

365,254

467,811

Spare parts

797,233

901,105

Crude oil

779,273

878,187

Natural gas

305,851

285,071

Raw material

175,114

 246,750

Water

112,358

111,873

Liquid fuel

110,638

133,116

Purchase cost of electricity sold

88,475

1,908,931

Lubricants and oils

11,980

20,900

Electricity consumed

11,728

12,153

Sundry consumed

11,297

30,367

Central heating costs

4,228

14,969

2,408,175

4,543,422

Les: lignite production costs

(698,713)

(823,299)

1,709,462

3,720,123

System services for provision of capacity

186,518

185,087

Transportation services

125,562

38,109

Other production services

116,744

117,437

Sponsorships and donations

110,990

76,699

Land re-cultivation provisions

93,064

93,047

Service agreements expenses

89,697

230,517

Water charge

73,978

72,897

Additionally paid taxes as per PRO inspection report

51,526

-

Provisions for litigations

47,389

83,611

Marketing

33,830

8,754

Utilities

30,604

31,311

Bank fees

22,753

25,196

Mediation services for sales of electricity surpluses

18,815

102,850

Telephone and postal expenses

12,565

13,044

Entertainment

12,941

12,692

Ongoing protection at work expenses

11,194

10,179

Electricity distribution expenses

10,040

14,258

Legal expenses

9,372

8,015

Interest on tax as per PRO inspection report

9,213

-

Membership fees

6,886

9,998

Value of land, plants and equipment sold and removed from inventory, not written-off

4,421

5,260

Professional training

3,491

1,550

Shortages

2,042

943

Taxes and contributions not dependent on results

235

324

Incorrectly reported value added tax in previous years

-

16,850

Loss from assessment of land, plants and equipment (Note 6)

-

103

Other expenses

148,246

192,162

1,232,116

1,350,893

Less: lignite production costs

(377,722)

(559,797)

854,394

791,096

Revenues from financial activities

Revenues from interest

86,708

59,840

Revenues from foreign exchange gains

27,618

20,060

114,326

79,900

Financial expenses

Interest expenses

(177,748)

(213,961)

Foreign exchange losses

(73,994)

(23,188)

Penalty interest expenses

(25,543)

(13,437)

(277,285)

(250,586)

Financial result, net

(162,959)

(170,686)

Denar accounts in banks

86,069

267,701

Foreign currency accounts in banks

10,913

186,510

Earmarked cash

-

199,846

Cash on hand

86

119

97,068

654,176

1 January 2013

122,986

-

1,022,392

1,145,378

Mandatory reserves set aside

2,388

-

-

2,388

Investment reserves set aside

-

45,374

-

45,374

31 December 2013

125,374

45,374

1,022,392

1,193,140

1 January 2012

115,964

-

1,022,392

1,138,356

Reserves set aside in the course of the year

7,022

-

-

7,022

31 December 2012

122,986

-

1,022,392

1,145,378

Receivables from buyers

Domestic buyers

3,173,567

3,111,091

Short-term portion of receivables from public institutions per agreements

698,003

239,337

Foreign buyers

4,311

432,609

3,875,881

3,783,037

Less: provisions for impairment

(139,838)

(130,968)

3,736,043

3,652,069

Receivables from subsidiaries

100,630

256,707

Less: provisions for impairment

-

-

100,630

256,707

Receivables from interest

1,115,286

1,046,811

Less: provisions for impairment

(1,041,709)

(557,521)

73,577

489,290

Other current receivables

Non-harmonized receivables from internal relations (transactions between organizational units)

20,871

-

Receivables against IBRD loan

108,621

137,187

Receivables against loans extended to other domestic legal entities

8,784

8,797

Receivables from employees

7,827

7,767

Receivables against income tax

36,601

29,999

Receivables against value added tax

151,757

24,827

Receivables from insurance companies

24,331

24,845

358,792

233,422

Less: provisions for impairment

(8,556)

(8,556)

350,236

224,866

4,260,486

4,622,932

Liabilities to suppliers

- Domestic

2,920,544

3,117,902

- Foreign

73,671

436,329

2,994,215

3,554,231

Other liabilities

Liabilities to subsidiaries

451,042

357,883

Liabilities for wages

162,736

163,480

Liabilities for contributions and taxes on wages

91,353

90,683

Other liabilities to employees

67,600

42,479

Liabilities for interest in operations

26,355

38,826

Liabilities against leasing agreements

194

1,276

Liabilities against collective agreement

5

178

Advances from buyers

-

3,528

Liabilities against VAT

-

100,076

Liabilities for dividends

-

37,453

Other liabilities

32,164

62,399

831,449

898,261

Expenses calculated in advance

Expenses for an L/C for purchase of equipment, calculated in advance

130,009

181,701

Other expenses calculated in advance

40,129

82,924

Calculated installments for IBRD loan

191

6,610

Not invoiced costs for electricity purchased

-

14,021

170,329

285,256

Deferred revenues

Deferred revenues against assumed claims (Note 9)

77,171

-

77,171

-

4,073,164

4,737,748