Financial statement of Towarzystwo Finansowe SKOK S.A.

Transcription

1 Financial statement of Towarzystwo Finansowe for the period from 1 January to 31 December 2014 Gdańsk, 27 February

2 I. INTRODUCTION TO FINANCIAL STATEMENT Name (company): Seat: Address: GENERAL INFORMATION OF COMPANY Towarzystwo Finansowe Spółdzielczych Kas Oszczędnościowo-Kredytowych Spółka Akcyjna Gdańsk Arkońska 11 Street, Gdańsk Telephone: (+48 58) Fax: (+48 58) Internet website: The core business activity of the Company according to the Polish Classification of Business Activities is: 6519Z - other activity supporting financial services excluding insurance and pension funds. Supervisory Board In the reporting period the composition of the Supervisory Board was unchanged. At the day of the final preparation of this statement, the composition of the Supervisory Board presented as follows: Grzegorz Michał Bierecki Chairman of Supervisory Board, Grzegorz Paweł Buczkowski Deputy Chairman of Supervisory Board, Jarosław Szymon Bierecki Member of Supervisory Board, Andrzej Sosnowski Member of Supervisory Board, Andrzej Paweł Szumański Member of Supervisory Board. Management Board At the day of final preparation of this statement, the composition of the Management Board presented as follows: Ewa Bereśniewicz-Kozłowska President of Management Board, Cezary Godziuk Member of Management Board, Marcin Golas Member of Management Board, Alicja Kuran-Kawka Member of Management Board, Tomasz Krasiński Member of Management Board. On 6 May 2014 the Supervisory Board of the Company, due to the fact that on 16 June 2014 the current term of office of the members of the Management Board terminated, passed a resolution in which the above mentioned persons were appointed to the composition of the Management Board. Pursuant to 12 (3) of the Articles of Association the members of the Management Board are appointed to a joint term of office of 5 years which initiated on 17 June 2014 and at this day the mandates of these persons expired within the previous term of office. 2

3 SELECTED FINANCIAL DATA PLN (k) EUR (k) SELECTED FINANCIAL DATA year 2014 year 2013 year 2014 year 2013 period period period period I Sales revenues II Gross sales profit (loss) III Sales profit (loss) IV Operating profit (loss) V Gross profit (loss) VI Net profit (loss) VII Operating cash flow VIII Investing cash flow IX Net financial cash flow (10 730) (30 365) (2 562) (7 211) X Total amount of net cash flow XI Total amount of assets XII Liabilities and accruals XIII Share capital (fund) XIV Equity capital XV Quantity of shares XVI Profit (loss) per one ordinary share (PLN/EUR) XVII Profit (loss) per one preferred share (PLN/EUR) XVIII Accounting value per one share (PLN/EUR) The financial data presented in EUR was calculated according to the below rules: particular positions of assets and liabilities according to the average exchange rate of the National Bank of Poland being effective at the balance sheet date i.e. at the day of 31 December 2014: PLN and for the comparative data according to the average exchange rate of the National Bank of Poland being effective at the balance sheet date i.e. on 31 December PLN ; particular positions of the profit and loss statement and the cash flow statement according to an average constituting the arithmetic mean of exchange rates specified by the National Bank of Poland, being effective at the last day of each ended month i.e. for the period from 1 January 2014 to 31 December 2014 PLN and for the comparative data according to an exchange rate constituting the arithmetic mean of exchange rates specified by the National Bank of Poland, being effective at the last day of each ended month i.e. for the period from 1 January 2013 to 31 December 2013 PLN Profit (loss) per one ordinary share for each period is calculated through the dividing the net profit shared by Shareholders held ordinary shares for a particular period by the quantity of ordinary shares in a particular reporting period. 3

4 The profit (loss) diluted per one ordinary share for each period is calculated through dividing the net profit shared by Shareholders holding ordinary shares for a particular period by average weighted diluted quantity of ordinary shares in a particular reporting period. The profit (loss) per one preferred share for each period is calculated through dividing the net profit shared by Shareholders holding preferred shares for a particular period by the quantity of preferred shares in a particular reporting period. The accounting value per one share is calculated through dividing the equity capital at the end of particular period by the quantity of shares at the end of particular period. 4

5 BALANCE SHEET AS OF 31 DECEMBER 2014 ASSETS ASSETS Register no. Bottom-line as of Bottom-line as of Fixed assets Intangible property Tangible fixed assets Long-term financial assets Other long-term investment Deferred income tax assets Other long-term accruals Current assets Reserves Short-term trade receivables short-term receivables from related entities short-term receivables from other entities Current income tax, customs duty, insurance receivables Other short-term receivables Short-term financial assets Cash means and their equivalents Cash means in dispensers Short-term accruals ASSETS IN TOTAL

6 BALANCE SHEET AT THE DAY OF 31 DECEMBER 2014 A. LIABILITIES LIABILITIES Register no. Bottom-line as of Bottom-line as of EQUITY CAPITAL Share capital Own shares (negative value) 12 (65) (60) Above par own share issuance supplementary capital Other supplementary capital Other reserve capital Other reserve capital for financing the acquisition of own shares Profits (losses) of previous years 0 0 Result of financial year Net profit write-off within financial year (negative value) 16 0 (4 771) LIABILITIES AND LIABILITIES RESERVES Reserves Deferred income tax reserves Pension reserves and similar reserves long-term short-term Other reserves Long-term liabilities Financial leasing liabilities Other financial liabilities IFCB Short-term liabilities Trade liabilities and other liabilities Credits, loans and issued debt securities Other financial liabilities IFCB Financial leasing liabilities Current income tax liabilities Special funds Deferrals LIABILITIES IN TOTAL Accounting value Quantity of shares in pieces Accounting value per share ( in PLN) 1,84 1,82 6

7 PROFIT AND LOSS STATEMENT AND OTHER TOTAL INCOMES FOR THE PERIOD FROM 1 JANUARY TO 31 DECEMBER 2014 Profit and loss statement (calculative variant) Regist er from to for period from to Sales revenues Including sales revenues service sales revenues from related entities Service sales revenues Goods and materials sales revenues Sales prime cost (cost of sold products, services, goods and materials) Cost of sold finished goods 0 0 Cost of sold services Cost of sold goods and materials Gross sales profit (loss) Sales costs General management costs Sales profit (loss) Other operating revenues Other operating costs Operating profit (loss) Financial revenues Financial costs Profit (loss) before taxation Income tax current part deferred part 24 (469) 112 Profit (loss) from continuing operations Net profit (loss) from discontinued operations 0 0 Net profit (loss) Net profit (loss) per one ordinary share: 30 PLN / share PLN / share from continuing operations from discontinued operations 0 0 Total other income statement Regist er from to For period from to Net profit (loss) Changes in revaluation surplus 0 0 Profits/losses defined benefit plan 0 0 Profits/losses from revaluation of financial assets for resale 0 0 Translation differences 0 0 Effective portion of profits/losses on cash flow hedging instruments 0 0 Total incomes

8 STATEMENT OF CHANGES IN EQUITY FOR PERIOD FROM 1 JANUARY TO 31 DECEMBER 2014 Statement of changes in equity Share capital Supplementary capital Own shares Other reserve capitals Changes in equity Other reserve capitals regarding financiation of own shares purchase Net financial result of financial year Previous years profit/loss Bottom line as of 1 January (60) Net profit for the period from 1 January 2013 to 31 December Capital increase shares issue Division of financial result Resolution of Ordinary General Meeting of Shareholders (4 847) Division of financial result Resolution of Ordinary General Meeting of Shareholders (224) Dividends (4 736) Dividend advance for the year (4 77 Bottom line as of 31 December (60) (4 77 Statement of changes in equity Share capital Supplementary capital Own shares Other reserve capitals Changes in equity Other reserve capitals regarding financiation of own shares purchase Net financial result of financial year Previous years profit/loss Bottom line as of 1 January (60) (4 77 Net profit for period from 1 January 2014 to 31 December Shares issue Division of financial result (15 722) Division of financial result Resolution of Ordinary General Meeting of Shareholders (6 181) Dividends (9 541) 4 7 Creation of reserve capital Resolution of Ordinary General Meeting of Shareholders as of 22 December (1 000) Purchase of own shares 0 0 (5) Bottom line as of 31 December (65) Net profi write-o within financ year Net profi write-o within financ year 8

9 CASH FLOW STATEMENT REGARDING PERIOD FROM 1 JANUARY TO 31 DECEMBER 2014 Cash flow statement (direct method) from to for period from to Operating cash flow Profit before taxation Corrections: Depreciation Investing (Profit) loss including sales of tangible fixed assets Profit (loss) on exchange rates differences 0 0 Interests costs Obtained dividends (8 174) (12 858) Operating cash means before changes in working capital have been considered Change in inventory 473 (135) Change in receivables Change in liabilities (3 064) Change in reserves 239 (187) Change in accruals Other corrections GC write-off Operating cash means Paid income tax (816) (1 370) Operating net cash means Investing cash flow Expenses on acquisition of intangible and tangible fixed assets (2 472) (7 163) Proceeds from sales of intangible and tangible fixed assets Proceeds from financial assets in related entities 18 0 Expenses on financial assets from related entities (3 000) 0 Expenses on acquisition of other investments (2 236) (2 327) Obtained dividends Investing net cash means Financial cash flow Net proceeds from issue of shares 0 0 Expenses on acquisition of own shares (5) 0 Increase in share capital 0 0 Other IFCBfinancial proceeds Other IFCB financial expenses (42 000) (1 000) Proceeds from credits and loans Credit and loans repayment 0 (28 466) Financial leasing repayment (552) (918) Paid interests (4 647) (5 475) Withdrawal of dividends and other withdrawals for owners (4 770) (9 506) Financial net cash means (10 730) (30 365) Net increase (decrease) of cash means and cash means equivalents Cash means and their equivalents at the period beginning Change in currency translation of cash means and their equivalents 0 0 Cash means and their equivalents at the period end including: Limited power to dispose cash means

10 II. ADDITIONAL EXPLANATORY INFORMATION OF FINANCIAL STATEMENT 1. Assumption of continued business activities, financial statements comparativeness, reporting currency and applied rounding level An assumption regarding the financial statement in the presented period states that the business activity of the Company will be continued in predicted future and there are no reasons indicate that the business fails. The Management Board of the Company confirms that the presented financial statement introduces the financial condition, results and cash flows in a reliable way. The financial statement includes the data for the period from 1 January 2014 to 31 December There are presented the comparative financial data for the period from 1 January 2013 to 31 December The reporting and presenting currency of this financial statement is the Polish zloty and each amount is specified in thousand Polish zlotys (unless stated otherwise). Compliance with International Financial Reporting Standards The financial statement for the period from 1 January 2014 to 31 December 2014 was drafted according to the International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) approved by the European Union and to the related interpretations announced as European Commission regulations. New standards and standards interpretations Standards awaiting EU approval Financial instruments 9 IFRS effective for annual periods beginning on 1 January 2018 or later. Regulating accruals 14 IFRS effective for annual periods beginning on 1 January 2016 or later. Regulating acquisition of stake in own business 11 IFRS effective for annual periods beginning on 1 January 2016 or later. Revenues from clients contracts 15 IFRS effective for annual periods beginning on 1 January 2017 or later. Amendments to 16 IFRS and 38 IAS Explanation of admissible depreciation method effective for annual periods beginning on 1 January 2016 or later. Amendments to 16 IAS and 41 IAS Agriculture: manufacturing plants effective for annual periods beginning on 1 January 2016 or later. Amendments to 27 IAS Property rights method in separate financial statement effective for annual periods beginning on 1 January 2016 or later. 10

11 Amendments to 10 IFRS, 12 IFRS and 28 IAS Investing entities: Application of consolidation exemption effective for annual periods beginning on 1 January 2016 or later. Amendments to 10 IFRS and 28 IAS Sales or submission of assets between investor and associated entities or joint venture effective for annual periods beginning on 1 January or later. Amendments to 1 IAS Disclosures effective for annual periods beginning on 1 January 2016 or later. Corrections to IFRS (period ) effective for annual periods beginning on 1 January 2016 or later. Standards published and approved by EU, but which do not come into effect Interpretation of Public fees 21 IFRIC effective for annual periods beginning on 1 January 2014 or later, effective for annual periods beginning on 17 June 2014 or later in EU. Corrections to IFRS (period ) effective for annual periods beginning on 1 July 2014 or later, effective for annual periods beginning on 1 February 2015 or later in EU. Corrections to IFRS (period ) effective for annual periods beginning on 1 July 2014 or later, effective for annual periods beginning on 1 January 2015 or later in EU. The company has decided not to seize the anterior application of above standards, amendments to standards and interpretations opportunity. The impact of the above standards application regarding accounting principles applied by the Company is currently analyzed. Amendments to standards and new interpretations which come to effect at first time in year 2014 Amendments to "Investing entities 10 IFRS, 12 IFRS and 27 IAS. Amendments define investing entities and introduce an exception from subsidiaries consolidation requirement for investing entities. Investing entity does not consolidate its subsidiaries. Instead of this it estimates its subsidiary shareholding in the fair value of the financial result. Amendments to "Financial instruments: presentation 32 IAS assets compensation and financial liabilities. Amendments specify compensation principles and focus on four core areas: a) explanation about "the possession of the enforceable right to compensation ; b) simultaneous compensations and settlements; c) securities compensation; d) account unit for compensation needs. Amendments to "Loss of assets value 36 IAS Disclosure of non-financial assets recovery value. The slight amendments to 36 IAS concern the information disclosure of assets recovery value in which write off regarding loss of recovery value was made and when the recovery value based on the fair value reduced by disposal costs. Amendments to "Financial instruments: diminishment and estimation 39 IAS Novation of financial derivatives and further securities accounting application. The slight amendments permit further applying security accounting principles due to the derivative instrument novation (indicated 11

12 as a security instrument) in this manner that it becomes a central counterparty, provided that certain conditions will be met. "Consolidated financial statement 10 IFRS and "Separate financial statements 27 IAS. 10 IFRS Standard replaces the part of the previous "Consolidated and separate financial statements 27 IAS Standard. 10 IFRS modifies a control definition. Pursuant to the new definition an investor has a control over an investing entity when a) he has authority over this entity, b) is exhibited on or has a right to a variable returns from the involvement in this entity and c) has an authority to impact their return amounts. If an investor has a control over an investing entity, he has to comply with three criteria. "Joint contractual arrangements 11 IFRS 11 IFRS specifies the classification and the joint contractual arrangements settlement manner, which are controlled by two or more parties. "Information disclosure regarding shares in other entities 12 IFRS 12 IFRS is a new standard regulating information disclosure issues and is applied to entities holding shares in subsidiaries, joint contractual arrangements, associated entities and/or non-consolidated structured entities. The application of these amendments does not affect the financial condition, the business activity results of the Company and also the information scope presented in the financial statement of the Company. 2. Applied accounting principles The financial statement is drafted in compliance with the historical cost conception excluding the quotation updates of some fixed assets and financial instruments which are estimated in revaluated amounts or fair value at the end of each reporting period according a certain accounting policy. Accounting core principles applied by the Company are presented below. Intangible assets The initial value of the intangible assets constitutes a purchase price or a manufacturing cost. At the day of balance sheet the intangible assets are estimated according to purchase prices or manufacturing costs reduced by depreciation and redemption write-offs and also permanent value loss write-offs. Intangible assets of depreciation are written off by a straight-line method. The annual depreciation rates for intangible assets are as follow: - licenses and software from 24 to 96 months. The initial value of intangible assets up to PLN 3, is depreciated once in the month in which the assets are brought into use. The initial value of intangible assets above PLN 3, is depreciated basing on rates established according to the estimated useful economic life. The depreciation begins from a month in which an intangible asset brings into use. The useful economic life is verified periodically (not rarer than at the end of each financial year). 12

13 The intangible assets regarding their permanent value loss are verified if there are circumstances or changes indicating that the balance sheet of intangible assets may not be possible to recovered. However, the verification succeeds not rarer than at the end of each reporting period. Goodwill The goodwill constitutes a difference between the purchase price of certain entity or its organized part and lower than it fair value of intercepted net assets. The goodwill is specified in intangible assets. The goodwill specified in intangible assets is allocated for impairment testing and is indicated in a balance sheet basing on an initial value decreased by cumulated loss value write-offs. The impairment testing of goodwill is carried out once a year if there are reasons indicating the possibility of losing goodwill. The goodwill loss write-offs are not reversed in subsequent periods. Tangible fixed assets The initial value of tangible fixed assets constitutes a purchase price or a manufacturing price. At the day of balance sheet the fixed assets are estimated according to purchase prices or manufacturing costs reduced by depreciation or redemption write-offs and also by permanent value loss write-offs. The depreciation of every tangible fixed assets are written off by a straight-line method unless there are reasons admitting that the application of other depreciation method would permit more solid reflection of economic profits from a certain fixed asset as well as its depreciation. The Company applies annual depreciation rates for basic fixed assets groups: - premises and civil engineering facilities from 120 to 480 months - technical devices and machines from 36 to 172 months - transport means from 24 to 84 months - other fixed assets from 24 to 96 months The depreciation begins from a month in which component of assets has been brought into use. If a depreciation period and annual depreciation rates for tangible fixed assets above PLN 3, are established, the estimated life of certain fixed asset is considered. Validity of applied tangible fixed assets depreciation rates is verified periodically (not rarer than at the end of each financial year). This verification consists in the analysis of every fixed asset life period controlled by the Company. The depreciation rates are changed from a subsequent reporting period. Useful life of assets longer than a year, but with an individual value not exceeding PLN 3,500, depreciates under the purchase date with a full initial value. The capital work in progress is not depreciated. 13

14 The tangible fixed assets regarding their permanent loss of value are verified if there are circumstances or changes indicating that the tangible fixed assets balance sheet may not be possible to recover. The verification succeeds not rarer than at the end of each reporting period. If there are reasons indicating that the balance sheet exceeds the estimated recovery value, the value of assets or resorts generating cash means is reduced to the level of recovery value. Right to perpetual usufruct is specified by an entity as fixed assets, which are not depreciated, in ledgers. The initial value is established basing on a purchase price. At the day of balance sheet, it is estimated according to a purchase price reducing by permanent value loss write-offs. Leasing Lease contracts, which transfer substantially all of the risks and rewards from the ownership of the assets being the object of the contract, are classified by the Company as the financial lease contracts. The object of financial leasing is specified at the day of assets leasing initiation as a fixed asset and the liability is specified also simultaneously according to a lower value of these two: fair value of asset constituting a leasing object or current value of minimal leasing fees. The leasing fees are divided between the financial costs and the reduction of liabilities balance in a way obtaining fixed interest rates from outstanding liability amounts. The financial costs are specified directly in the profit and loss statement. The fixed assets being the object of the financial lease contract are depreciated in a way specified for the own fixed assets. However, if the transfer of ownership right regarding the contractual object (the enjoyment of right to repurchase after ended leasing period) is uncertain, the fixed assets used under the financial lease contracts are depreciated within shorter of these two periods: predicted useful life or leasing period. The lease contract according to which a lessor retains all the risks and all the loans arising from the ownership of leasing object is classified as an operational lease contract. Leasing fees regarding operational leasing are written off in costs included in the profit and loss statement and by a straight-line method within the leasing duration. Subsidies The subsidies are not specified until there is no certainty that the Company meets necessary conditions for obtaining them and obtains the subsidies. The subsidies are specified in the balance sheet in the position of future revenues and are indicated in the profit and loss statement systematically within the useful life of the assets component. The other subsidies are specified systematically in the revenues amount and period corresponding with the costs which are to be compensated. The subsidies which constitute the compensation of incurred costs are specified in the profit and loss statement in which they are accrued. Long-term investments (financial assets) The assets and financial liabilities are specified in the financial statement of the Company upon the Company becomes the binding contractual party of this instrument. The Company classifies the possessed financial instruments into one of four categories: 14

15 - instruments intended for trade which include instruments which have been purchased to achieve a short-term profits from the fluctuations of their market prices. These profits are to be taken not later than within twelve months from the purchase date, - held-to-maturity investments, which include the assets not being the derivative instruments, with established or possibly specified payments and with an established maturity date to which the entity has an intention and is able to possess them to a lapse of maturity date, - loans and receivables which are financial assets not being derivative instruments, with established or possibly specified payments, which are not quoted on an active market, - instruments for sale for all other instruments. Upon the initial specification, the component of financial assets or financial liability are estimated in an fair value increased, for the component of assets or financial liability unqualified as estimated in an fair value through the financial result, by transaction costs which may be assigned for acquisition or issuance of financial assets or financial liabilities component. Instruments intended for trade are estimated according to an fair value considered as an amount for which a component of assets may be sold or a liability regarding transactions between two well informed, interested and unrelated parties may be regulated. The differences from the estimation of components concern the entity results. Loans and receivables as well as investments held-to-maturity date are estimated according to a depreciated cost with the application of efficient interest rate. Instruments intended for sale are estimated according to an fair value and differences from an estimation are intended for a capital from estimation update. In the event of debentures for estimation update capital there are specified the differences between an instrument value established by an efficient return rate and an fair value. If there is no possibility to establish truly an fair value and the assets have a maturity date, a depreciated cost amount is established with an efficient interest rate application. If the assets do not have the established maturity date, the estimation is made as a purchase price. Reserves The reserves of materials are estimated according to a lower of two values: of purchase price and net sales price. A material register is provided basing on a purchase price. Material outgoings are established according to FIFO method. Trade receivables and other receivables Short-term receivables are specified in nominal values corrected by appropriate write-offs revaluating doubtful receivables value. The revaluation write-offs are estimated with a risk level regarding a certain receivable. The risk level is estimated in each event upon its disclosure not later than the balance sheet date. The amounts of created write-offs revaluating the receivable value concern the profit and loss statement. Long-term receivables are estimated as a corrected purchase price. 15

16 Short-term investments Short-term investments include current assets when they are paid and matured or intended for sale within 12 months from the balance sheet date. Cash means and short-term deposits indicated in the balance sheet include cash means in a bank and an union and short-term deposits of a primary maturity date not exceeding three months. Other financial assets indicate cash means in dispensers of Towarzystwo Finansowe which are used in the business activity of the Company. Short-term accruals The costs of accruals are executed, if they concern the future reporting periods. In the position of short-term accruals there is specified an incurred expenses amount as of the balance sheet date, but which constitutes the costs of the future financial period and the assets being revenues regarding the financial statement of a financial period and not being receivables as of the balance sheet date under the law. The indication of this position in the balance sheet date ensures the compensation of revenues and a proportionality regarding their costs. The costs of deferrals are executed in the amount of probable liabilities concerning a current reporting period. Liability reserves They are estimated not rarer than at the balance sheet date in a truly justified estimated value. It concerns reserves which are created for retirement pension benefits and similar certain or highly probable liabilities which amounts may be truly estimated, particularly for losses from transactions within their duration including granted warranties, sureties, credit operations, financial results of pending legal proceedings. Short-term liabilities The Liabilities from trade, regarding the fact that differences between an estimation according to a depreciation cost and an estimation according to a nominal value are not essential, are indicated as the nominal value of the balance sheet. The financial liabilities, which are paid under a contract through the release of financial assets different than cash means or exchange for financial instruments is estimated pursuant to an fair value. Revenues and costs The Company provides a costs registry in a calculation system and drafts a calculative variant of profit and loss statement. The revenues and the costs are estimated and indicated according to an accrual principle, i.e. in periods which they concern. 16

17 The revenue is established pursuant to the payment fair value decreased by the value added tax (VAT) including cash discounts and discounts. The revenues from transactions regarding services are indicated basing on sales invoices which are the value reflection of the advanced level of transaction execution at the balance sheet date. Benefits for employees The benefits for employees include remunerations and components for social insurances, paid leaves and sick leaves, bonuses, severance pay of employment termination and other unpaid things or services. Employees have a right to severance and pension payments which are paid once upon an initiation of retirement and to jubilee awards. At each balance sheet date the Company valuates actuarially the employment costs for the future severance and pension payments and for the jubilee awards. The above costs are specified as deferrals and in the financial statement are demonstrated as liability reserves. The Company provides a program of certain contributions for all qualified employees under the Company Pension Contract concluded pursuant to the Employed Pension Programs Act as of 20 April The employed pension program was registered under the decision of the Financial Supervisory Commission as of 18 January On the grounds of the contract the Company undertakes to transfer the basic contributions of the employees to investment funds managed by Towarzystwo Funduszy Inwestycyjnych Spółdzielczych Kas Oszczędnościowo Kredytowych S.A. The basic contributions are calculated as the certain remuneration percentage of a certain employee and are financed by the Company. The costs of the above benefits are transfer red to the remuneration costs. In this event the Company as an employer deducts a certain contribution from the remuneration of an employee. The Company is particularly liable for a punctual and an appropriate calculation, deduction and contribution transfer to the account of the pension program participants. Costs of external finance The costs of external finance, which may be allocated directly as a purchase, construction or manufacturing of adjusted assets component, are registered as a part of purchase price or a manufacturing cost of this assets component. The other costs of external finance are indicated as the costs in a period in which they are incurred. Financial result The financial result for a certain reporting period include all the revenues and costs of this period and the income tax indicated in the profit and loss statement including a current and deferred part. Income tax The income tax is estimated on the grounds of the taxation basis of a certain period and includes a deffered tax. The deferred part constitutes a difference between the reserves and the deferred tax assets at the end and at the beginning of a reporting period. The component of deferred tax 17

18 assets is indicated regarding all the negative temporary differences and tax loss possible for deduction established with the consideration of caution principle. The component of reserves for the deferred income tax is indicated with regards to all positive temporary differences. Assumption regarding estimations The accounting principles concerning a core future assumption and a source of uncertainty regarding estimations are specified in the separate items in the Accounting Principle Section. 3. Changes in accounting principles and data presentation The accounting principles have not been changed. This financial statement has been drafted with the application of the same presentation principles for the current and comparative period, with adjustment of comparative period to the presentation principles change in the statement in the current period. 18

19 4. Risk management and security operations Risk regarding macroeconomic situation in country There is a risk that in the event of the aggravation of the economic situation in Poland and the reduction of consumption demand, the development dynamic of the Company may be aggravated. The Management Board of the Company analyzes currently the macroeconomic situation, adjusting the activity schedule to the requirements of market, legal and economic environment. Risk regarding change in currency exchange The Company executes settlements of some transactions in foreign currencies (USD and EUR). The fluctuations of currencies affect mainly the value of revenues for cash transfer service benefits and the value of investing expenditures which the settlement basis are foreign currencies. In the purpose of currency risk minimization the employees liable for currency conversion transactions monitor currently in the financial and accounting system the foreign currencies possessing by the Company and compare the exchange of currency purchase with the actually available currencies in the exchange market for which the sales transactions may be executed. In addition, the actual needs of the Company are also analyzed currently in the scope of the foreign currencies quantity necessary for the settlements with Clients. Risk regarding changes in legal regulations The changes in taxing law as well as in regulations regarding banking sector and payment and financial services and securities market may cause the increase in the business activity costs of the Company, decrease in operational margins and reduction of profitability. The risk factors regarding the international payment organization regulations (MasterCard and Visa) may have a similar impact. The Card Settlement Team and the Financial Analysis Department currently analyze the separate activity territories and the influence of regulations regarding margins. The legal team analyzes currently the legal environment of the Company ensuring the appropriate legal basis of the enterprise functionality. Competition risk There is the risk of loss the market position by the Company due to the business initiation in the Polish market by other entities providing services in the same scopes as the Company. Using the newest researches, report and market data the Sales Department analyzes currently the market position of the Company, the registry of suppliers providing the competitive business activity to the Company, verifies the competitiveness of its quotations and distribution modes as well as service promotions, provides an anti-churn activity and particular individual solutions for Recipients. Risk regarding interest rate change Due to the usability of foreign capital the Company is affected by the change in interest rates. The risk management of interest rates consists in current monitoring of market situation. In the 19

20 reporting period as well as in the comparative period the Company did not apply the instruments securing against interest rate risk. III. EXPLAINING INFORMATION TO FINANCIAL STATEMENT 1. Intangible assets The change in intangible assets in the period from 1 January 2014 to 31 December 2014 Goodwill Patents and licenses; computer software Advances for intangible assets Total Net balance sheet value as of 1 January Gross purchase increase Gross disposal, liquidation decrease 0 (113) 0 (113) Increase or decrease arising from transfer to WN conversion 0 0 (9) (9) Value loss revaluation write-offs (284) 0 0 (284) Revaluation write-offs reverse Increase in redemption for period (depreciation) 0 (4 432) 0 (4 432) Decrease in redemption in period Currency differences Other changes Net balance sheet value as of 31 December Stan na dzień Wartość bilansowa brutto Suma dotychczasowego umorzenia i odpisów aktualizujących (858) (17 065) 0 (17 923) Wartość bilansowa netto Bottom-line as of 31 December 2014 Gross balance sheet value Amount of accumulated depreciation and revaluation writeoffs (1 142) (21 409) 0 (22 551) Net balance sheet value The intangible value are owned by the Company and do not constitute the object of the liabilities security. In off-balance sheet approach there are no intangible assets. The licenses include the tool software used in the business activity of the Company and the licenses for computer software. At the reporting day the Company executed the test of impairment of goodwill created after the connection of Global Cash sp. z o.o. with Towarzystwo Finansowye The valuation was made pursuant to the discounted cash flows (DCF) method arising from the prognosis of revenues, costs and results. The result of the executed test is the necessity to establish the value of the revaluation write-offs. The loss value write-off of the amount of PLN 284,000 has been 20

21 indicated in the profit and loss statement in the position of the other operational costs. The Company also writes off the above mentioned goodwill loss of the amount of PLN 1,142, Tangible fixed assets The change is the tangible fixed assets in the period from 1 January 2014 to 31 December 2014 Lands Premises Machines and devices Transport means Leasing transport means Other fixed assets Fixed assets under construction/ advances for fixed assets Balance sheet value as of 1 December Purchase increase Disposal lliquidation decrease 0 0 (973) (267) (214) (63) 0 (1 517) Increase or decrease arising from transfers 0 0 (1 852) (1 899) (2 564) Value loss revaluation write-offs Revaluation write-offs reverse Increase in redemption for period (depreciation) 0 (348) (4 136) (187) (392) (5 718) 0 (10 781) Decrease in redemption in period Decrease in transfer redemption Other changes transfer between the ŚT groups (508) 0 (6) (6) Net balance sheet value as of 31 December Total Bottom-line as of 1 January 2014 Gross balance sheet value Amount of accumulated depreciation and revaluation write-offs Net balance sheet value (1 925) (15 285) (662) (773) (22 181) 0 (40 826) Bottom-line as of 31 December 2014 Gross balance sheet value Amount of accumulated redemption and revaluation write-offs Net balance sheet value (2 273) (16 676) (852) (768) (27 788) 0 (48 357) The fixed tangible assets are owned by the Company. The object of the liabilities security regarding the fixed assets is described in the Register No. 21 in the IFCB position. In the off-balance sheet approach there are no fixed assets. In the presented period the value loss revaluation write-offs were not created. 21

22 3. Long-term receivables for period from from to to Value at beginning of period 0 0 Increase (decrease) in fair value within period 0 0 Value at end of period Long-term financial assets at day of Shares of TZ SKOK Sp. z o.o. S.K A Stock in Kasa Krajowa 5 5 Investing and Forward Commercial Bill (referred to IFCB) from ecard S.A Total: Granted loans from to for period from to Bottom-line at beginning of period 0 0 increases interests 0 0 decreases 0 0 loans repayments 0 0 revaluation write-offs 0 0 reclassification to assets intended for sale 0 0 Bottom-line at end of period 0 0 Stocks and shares Bottom-line at beginning of period increase shares purchase in TZ SKOK Sp. z o.o. S.K A 0 0 decrease stocks in Kasa Krajowa 0 0 decreased (revaluation write-off) 0 0 Bottom-line at end of period Investing and Forward Commercial Bills (refferred to IFCB) Bottom-line at beginning of period 0 0 Increase purchase of IFCB from ecard S.A Bottom-line at end of period LONG-TERM FINANCIAL ASSETS, TOTAL As of 31 December 2014 the Company holds 144,170, registered shares of Towarzystwo Zarządzające SKOK Sp. z o.o. spółka komandytowo-akcyjna which constitutes 42.27% of one share in the primary capital. 22

23 5. Other long-term investments The change in other long-term investments value at day of Long-term investments Total: from to for period from to Value at beginning of period acquisition of long-term investments increases or decreases arising from estimation 166 (468) value revalution write off (2 853) (3 202) Value at end of period In the position of the other long-term investments the Company indicates the value of movables. These movables are leased by other entities under contracts. 6. Deferred tax income assets The change in deferred tax income assets for period from to for period from to Deferred tax income assets at beginning of period including: transferred to financial result transferred to own capital 0 0 transferred to goodwill or negative goodwill 0 0 Increases regarding financial statement for period due to negative temporary differences concerning: balance sheet valuation of settlements and fixed assets 0 26 tax losses for deduction in subsequent years 0 0 interests from IFCB (63) 6 creation of reserves on employment benefit 35 0 unpaid remunerations and Social Insurance Institution (ZUS) Decrease in financial result for period due to negative temporary differences concerning: creation of reserves on employment benefits 0 33 interests from valuation of IFCB termination of asset established for foreign services 5 0 Deferred tax income assets at end of period including: transferred to financial result 15 (398) transferred to own capital 0 0 transferred to goodwill or negative goodwill

24 7. Reserves Detail at day of Materials Production in Progress 0 0 Finished products 0 0 Goods Advances for deliveries Net total amount of reserves materials revaluation write-off 76 0 production in progress revaluation write-off 0 0 goods revaluation write-off 0 0 Gross total amount of reserves balance sheet value indicated as fair value decreased by sales costs 0 0 balance sheet value constituting liabilities security 0 0 There is no security of liabilities regarding the reserves. from to for period from to Value of reserves specified as period cost (depreciation cost of materials) Reserve value write-offs specified as period cost 76 0 Reserve value write-offs reversed in period

25 8. Short-term trade receivables and other short-term receivables at day of receivables from related entities for trade of repayment period: To 12 months above 12 months 0 0 other 0 0 claimed in court 0 0 receivables from other entities for trade of repayment period: to 12 months above 12 months 0 0 for taxes, subsidies, custom fees, social and health insurance and other benefits other claimed in court 0 0 Total of net short-term receivables trade receivables value revaluation write-offs Total of gross short-term receivables TRADE RECEIVABLES OF OUTSTANDING REPAYMENT PERIOD FROM BALANCE SHEET DATE na dzień from 1 month outstanding above 1 month to 3 months outstanding above 3 months to 6 months outstanding above 6 months to 1 year above 1 year Total (gross) amount of trade receivables trade receivables value revaluation write-offs Total (net) amount of trade receivables Trade receivables value revaluation write-offs at day of Bottom-line at beginning of period decrease close of court case (742) 0 increase concerns liabilities submitted in bankruptcy proceeding increase concerns liabilities claimed in court 90 0 Bottom-line at end of period

26 9. Short-term financial assets at day of Investing and Forward Commercial Bills (referred to IFCB) Total: from to for period from to Investing and Forward Commercial Bills (referred to IFCB) Bottom-line at beginning of period 0 0 increase acquisition of IFCB from ecard S.A Bottom-line at end of period Cash means and their equivalents in dispensers At the day of the current reporting period and at the balance sheet date of the previous reporting period the amount of financial means of the Company constitutes respectively PLN 128, and 115, On 31 December 2014 the cash means of limited disposal ability of the amount of PLN 80, constitute cash dispenser means. at day of cash means and other cash assets: cash assets in cashbox and on accounts other cash means (deposits and coupons) 0 0 other cash assets dispensers Cash means and their equivalents and cash means in cash dispensers in total As of 31 December 2013 the value of cash means in foreign currencies amounts to: EUR 36,514.17; USD ; GBP ; which constitutes PLN 162, As of 31 December 2014 the value of cash means in foreign currencies amounts to: EUR 62,539.99; USD 3,343.09; GBP 1.04; which constitutes PLN 278, The fair value of cash means is related to the balance sheet value of these means due to the short maturity date. 26