SOCIETATEA SERVICII ENERGETICE OLTENIA S.A.

Transcription

1 FINANCIAL STATEMENTS FOR THE PERIOD ENDED ON DECEMBER 31, 2017 SOCIETATEA SERVICII ENERGETICE OLTENIA S.A. FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH ORDER OF THE MINISTER OF PUBLIC FINANCE NO. 1802/2014 AS AMENDMENTS FOR THE FISCAL YEAR ENDED DECEMBER 31,

2 FINANCIAL STATEMENTS FOR THE PERIOD ENDED ON DECEMBER 31, 2017 Contents Page Financial statements Balance sheet 3-6 Profit and loss account 7-9 Cash Flow Statement 10 Statement of changes in equity Notes to the financial statements

3 FINANCIAL STATEMENTS FOR THE PERIOD ENDED ON DECEMBER 31, 2017 Balance at: Description Row No. 1 January December 2017 A B 1 2 A. NON-CURRENT ASSETS I. INTANGIBLE ASSETS 1. Set-up costs Development costs Concession rights, patents, licenses, trademarks and other - - similar rights and other intangible assets Goodwill Intangible assets exploration and evaluation of mineral - - resources Advances and intangible assets in progress TOTAL (row 01 to 05) II. PROPERTY, PLANT AND EQUIPMENT 1. Land and buildings 08 45,229,275 41,966, Technical equipment and machinery , , Other equipment, fixture and fittings 10 6,340 3, Real estate investments Tangible in progress Investment property under construction Tangible exploration and evaluation of mineral resources Bearer biological assets Advances TOTAL (row 08 to 16) 17 45,717,786 42,168,490 III. FINANCIAL ASSETS 1. Shares held in subsidiaries Loans to subsidiaries Investments in associates Loans to associates Other long term investments Other loans * TOTAL (row 18 to 23) NON CURRENT ASSETS TOTAL (rd ) 25 45,717,927 42,168,490 B. CURRENT ASSETS l. INVENTORIES 1. Raw materials and consumables ,570 2,766, Work in progress * 27 8,615 5, Finished goods and goods for resale * Advances ,226 31,830 TOTAL (row 26 to 29) 30 1,070,051 2,804,415 II. TRADE RECEIVABLES 1. Trade receivables 1), * 31 8,535,632 9,097, Receivables from subsidiaries *, ** Receivables from associates Other receivables ** , ,268 3

4 FINANCIAL STATEMENTS FOR THE PERIOD ENDED ON DECEMBER 31, 2017 Balance at: Row 1 January 31 December Description No A B Subscribed un-paid share capital * TOTAL (row 31 to 35) 36 8,859,116 9,605,556 III. SHORT TERM INVESTMENTS 1. Shares held in subsidiaries Other short term investments TOTAL (row 37 to 38) 39 IV. PETTY CASH AND BANK ACCOUNTS 40 3,416,492 2,544,820 CURRENT ASSETS TOTAL (row ) 41 13,345,659 14,954,791 C. PREPAYMENTS (row ) 42 71,144 32,278 Amounts taken over a period of up to one year 43 71,144 32,278 Amounts taken over a period exceeding one year D. LIABILITIES: AMOUNTS PAYABLE IN A PERIOD BELOW ONE YEAR 1. Debenture loans, separate disclosure of convertible debenture loans Bank loans Advance payments received from customers 47 65,587 27, Trade payables 48 2,519,899 2,339, Trade notes payable Amounts due to subsidiaries *** Amounts due to associates *** Other payables including payables to the state budget and social security payables *** 52 27,593,334 39,162,577 TOTAL (row 45 to 52) 53 30,178,820 41,529,559 E. NET CURRENT ASSETS/NET CURRENT LIABILITIES (rd ) 54-16,762,017-26,542,490 F. TOTAL ASSETS LESS CURRENT LIABILITIES (row ) 55 28,955,910 15,626,000 G. LIABILITIES: AMOUNTS PAYABLE IN A PERIOD ABOVE ONE YEAR 1. Debenture loans, separate disclosure of convertible debenture loans Bank loans Advance payments from customers Trade payables , Trade notes payable Amounts due to subsidiaries *** Amounts due to associates *** Other payables including payables to the state budget and social security payables *** 63 15,885,267 - TOTAL (row 56 to 63) 64 16,701,757-4

5 FINANCIAL STATEMENTS FOR THE PERIOD ENDED ON DECEMBER 31, 2017 Balance at: Row 1 January 31 December Description No A B 1 2 H. PROVISIONS 1. Provisions for employee benefits Provisions for taxes Other provisions ,049 - TOTAL (row 65 to 67) ,049 - I. DEFERRED INCOME 1. Investment subsidies ( row 70 to 71) 69 2,777 2,777 Amounts taken over a period of up to one year Amounts taken over a period exceeding one year 71 2,777 2, Deferred income total (row ) Amounts to be transferred to income in a period below one year * Amounts to be transferred to income in a period above one year * Deferred income corresponding to assets received by transfer from clients ( row 76 to 77 ) Amounts taken over a period of up to one year Amounts taken over a period exceeding one year Negative goodwill TOTAL (row ) 79 2,777 2,777 J. CAPITAL AND RESERVES I. CAPITAL 1. Subscribed paid in capital 80 70,241,800 70,241, Subscribed unpaid capital Patrimony Patrimony of research institutes Other elements of own equity TOTAL (row 80 to 84) 85 70,241,800 70,241,800 II. SHARE PREMIUM III. REVALUATION RESERVE 87 61,359,717 57,623,579 IV. RESERVES 1. Legal reserves Statutory or contractual reserves Other reserves , ,927 TOTAL (row 88 to 90) , ,927 Own shares Gains in respect of own shares instruments Losses in respect of own shares instruments V. PROFIT OR LOSS CARRIED FORWARD C BALANCE D BALANCE ,853,

6 FINANCIAL STATEMENTS FOR THE PERIOD ENDED ON DECEMBER 31, 2017 Balance at: Row 1 January 31 December Description No A B 1 2 VI. PROFIT OR LOSS FOR THE YEAR C BALANCE D BALANCE 98 10,169,373 - Profit appropriation 99 EQUITY TOTAL (row ) ,984,327 15,623,223 Public patrimony Privat patrimony EQUITY TOTAL (row ) (row ) ,984,327 15,623,223 Special Administrator Legal Administrator Prepared by, MUSTAFA SINAN MUSAT SI ASOCIATII IORDACHE DORINA 6

7 STATEMENT OF PROFIT OR LOSS FOR THE PERIOD ENDED ON 31 DECEMBER 2017 Row Financial year Item description no A B Turnover (row ) 01 17,508,937 19,150,979 Production sold 02 17,443,417 19,131,103 Income from sale of goods for resale 03 65,520 19,876 Trade discounts granted Interest Income recorded by the entities erased from the 05 General Register, still having lease contracts in progress * - - Income from subsidies related to income Income related to the cost of production of C Balance work in progress D Balance 08 30, Incomes from the production of tangible and intangible 09 assets Income from revaluation of tangible assets Income from real estate investment production Income from subsidies Other operating income 13 6,455,255 2,701,516 - out of which, income from negative goodwill out of which, income from investment subsidies 15 1,356 - OPERATING INCOME TOTAL (row ) 23,933,968 21,849, a) Raw materials and consumables expenses 17 3,994,010 3,846,426 Other material expenses , ,143 b) Other external expenses (with energy and water) , ,280 c) Goods for resale expenses 20 68,062 10,149 Trade discounts received Personnel expenses (row ), out of which: 22 9,967,598 9,322,964 a) Salaries and wages 1) 23 8,099,224 7,521,165 b) Social security expenses 24 1,868,374 1,801, a) Value adjustment to tangible and intangible assets (row ) 6,698, ,895 a.1) Expenses 26 6,722,414 4,653,820 a.2) Income 27 24,241 4,114,925 b) Value Adjustment to current assets (row 29-30) 28 1,228,926-2,059,843 b.1) Expenses 29 2,820, ,433 b.2) Income 30 1,591,350 2,820, Other operating expenses (row 32 la 38) 31 12,737,171 6,108, Third party services expenses 32 2,935,515 1,787, Expenses with other taxes, duties and similar payments , , Environmental protection costs Expenses from revaluation of tangible assets Expenses related calamities and other similar events Other expenses 37 8,992,038 3,662,792 Refinancing interest expenses of the entities erased from the 38 General Register, still having lease contracts in progress * - - Adjustments for provisions (row 40-41) 39 (1,062,061) (267,049) - Expenses , Income 41 1,329, ,049 OPERATING EXPENSES TOTAL (row 17 to ) 42 34,104,077 17,975,803 7

8 STATEMENT OF PROFIT OR LOSS FOR THE PERIOD ENDED ON 31 DECEMBER 2017 Item description Row Financial year no A B 1 2 OPERATING PROFIT/LOSS: - Profit (row 16-42) 43-3,873,837 - Loss (row 42-16) 44 10,170, Income from participating interests out of which, income from affiliates Interest income * ,279 - out of which, income from affiliates Income from subsidies for interest due Other financial income out of which, income from affiliates FINANCIAL INCOME TOTAL (row ) , Value adjustments to financial assets and financial investments 53 held as current assets (row 54-55) Expenses Income Interest expense * 56 - out of which, expenses in relation with affiliates Other financial expenses FINANCIAL EXPENSES TOTAL (row ) FINANCIAL PROFIT/LOSS: - Profit (row 52-59) ,340 - Loss (row 59-52) TOTAL INCOME (row 16+52) 62 23,934,704 21,850,980 TOTAL EXPENSES (row 42+59) 63 34,104,077 17,975, GROSS PROFIT OR LOSS: - Profit (row 62-63) 64-3,875,177 - Loss (row 63-62) 65 10,169, Income tax Other taxes not disclosed among the above items FINANCIAL YEAR NET PROFIT OR LOSS : - Profit (rd ) 68-3,875,177 - Loss (row ) 69 10,169,373 - Special Administrator Legal Administrator Prepared by, MUSTAFA SINAN MUSAT SI ASOCIATII IORDACHE DORINA 8

9 STATEMENT OF CASH FLOW FOR THE PERIOD ENDED ON 31 DECEMBER Cash flows from operating activities Gross Profit (10,169,373) 3,875,177 Adjustments for : Amortization/Additional Depreciation 2,607,490 1,580,297 Provisions on trade receivables 267,049 - Profit/(Loss) on sale or disposal of tangible and intangible assets (1,705,282) (813,505) Financial income,net 736 1,279 Financial expenses - - Operating profit before changes in working capital (8,999,380) 4,643,248 Changes in net working capital: Decrease / (Increase) in trade and other receivables and otherwise 8,535,632 9,097,288 (Increase ) / decrease in inventories (727,366) 132,823 (Decrease) / Increase in trade and other payables 756,782 (910,773) Deferred income - - Cash generated from operating activities (434,332) 12,962,586 Cash flows from investing activities Payments for acquisitions of intangible assets - - Payments for acquisitions of tangible assets - - Interest received - - Net cash from investing activities - - Cash flows from financing activities - - Proceeds from short-term borrowings - - Proceeds from affiliates borrowings - - Interest paid - - Dividends paid - - Net cash from financing activities - - Net descrese /increase in cash and cash equivalents (434,332) 12,962,586 Cash and cash equivalents at the beginning of the financial year 972,646 3,416,492 Cash and cash equivalents at the end of the financial year 3,416,492 2,544,820 Special Administrator Legal Administrator Prepared by, MUSTAFA SINAN MUSAT SI ASOCIATII IORDACHE DORINA

10 STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED ON 31 DECEMBER 2017 Element of equity Balance at 31 December 2016 Increases Decreases Balance at 31 December 2017 Total, of which Through transfer Total, of which Through transfer Subscribed capital 70,241, ,241,800 Revaluation reserves 61,359, ,736,138 3,736,138 57,623,579 Legal reserves Other reserves 405, ,927 Profit / Loss carried forward 109,853,744 10,399,282 10,399,282 3,729,766 3,729, ,523,260 Profit / Loss of the year Profit Profit appropriation (10,169,373) 29,052,493 29,052,493 15,007,943 15,007,766 3,875,177 Total Equity 11,984,327 39,451,775 39,451,775 22,473,847 22,473,847 15,623,223 The profit recorded for the year 2017 is 3,875,177 RON and will be distributed to cover the losses recorded in previous years. Special Administrator Legal Administrator Prepared by, MUSTAFA SINAN MUSAT SI ASOCIATII IORDACHE DORINA 10

11 STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED ON 31 DECEMBER 2017 PROPERTY, PLANT AND EQUIPMENT as of Name of the immobilization element *) Balance at the beginning of the financial year Increases Gross value **) Cessions, transfers and other discounts Balance at the end of the financial year Balance at the beginning of the financial year Value adjustments ***) Amortizations and adjustments for depreciation Adjustments registered Discounts during the or replays financial year Balance at the end of the financial year = = =4-8 Intangible assets Setup expenses and development expenses 2, ,121 2, ,121 - Other immobilizations - licenses, inf. software 5,090, ,090,715 5,090, ,090,715 - Advance payments and intangible assets in progress TOTAL 5,092, ,092,836 5,092, ,092,836 - Imobilizari corporale Lands 17,678, ,562 17,280, , , , ,474 16,285,039 Construction 35,783,562-2,730,495 33,053,067 7,523,518 2,078,048 3,383,080 6,218,486 26,834,581 Technical installations and machines 12,826, ,826,547 12,344,375-23,000 12,321, ,172 Other installations, machinery and furniture 157,003-33, , ,662-30, ,760 3,980 Advances and tangible assets in progress TOTAL 66,445,187-3,161,320 63,283,867 20,727,399 3,073,522 4,145,826 19,655,095 43,628,772 Financial assets ADJUSTMENTS FOR DEPRECIATION TOTAL TOTAL 71,538,022-3,161,320 68,376,703 25,820,235 3,073,522 4,145,826 24,747,931 43,628,772 The useful lives used to compute the depreciation of the property, plant and equipment are the legal ones, and the calculation method used is the linear one. The Company records the property, plant and equipment based on the revaluation method. Net value Net book value Special Administrator Sinan MUSTAFA Judicial Administrator MUSAT&ASOCIATII Chief Financial Officer, Dorina IORDACHE 11

12 NOTES ON THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED ON 31 DECEMBER 2017 EXPLANATORY NOTES ON BALANCE SHEET NO. 2 PROVISIONS Provision s name*) Balance at In account/ nondeductible expenses Transfers in 2017 From account/ non-taxable incomes Balance as of = Adjustments for non-collected clients 549, , , ,016 Provisions for disputes 267, ,049 - Adjustments for depreciation of 1,864, ,610 1,864, ,610 stocks and production in progress Adjustments for disputes, fines and 406,183 42, ,183 42,806 penalties, compensations, damages and other uncertain debts TOTAL 3,087, ,432 3,087, ,432 Value adjustments for stocks depreciation are set for stocks that have not moved for more than 365 days. Adjustments for depreciation of receivables - various debtors in the balance at the end of the exercise amounting to RON 42,806 are related to the amounts included in the Debtors account according to Appendix 2a Adjustments for depreciation of receivables - balance-sheet clients at the end of the exercise amounting to RON 535,016 include value adjustments calculated for non-collected invoices from clients according to ANNEX 2b. For uncertain clients who are also creditors registered at the creditors' statement of assets and liabilities, it will be proposed to approval the compensation of the debts with the receivables. In accordance with the procedures applicable within the company, the provisions and adjustments made in the previous exercise and found in the balance at are taken entirely into non-taxable incomes and the new values are registered at nondeductible tax expenses. 12

13 NOTES ON THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED ON 31 DECEMBER 2017 EXPLANATORY NOTES ON BALANCE SHEET NO. 3 PROFIT TAX At the end of the financial year 2017, the Company recorded profit of 3,875,177 RON, as follows: 1. Result from operating: 3,873,836 lei 2. Financial result: 1,341lei The calculation of the fiscal exercise result complied with the provisions of the Tax Code in force, adjusting the accounting result with non-taxable deductions and incomes, respectively with non-deductible expenses, as follows: Calculation s elements Gross book value -10,169,373 3,785,177 Deductions / non-taxable incomes 2,944,700 7,202,250 Other items of the nature of taxable incomes 2,124, ,198 Legal reserve 405, ,927 Non-deductible expenses 8,868,953 4,917,475 Fiscal result -6,776,006 1,073,027 Fiscal losses from previous years 109,853, ,523,260 Fiscal loss to recover the next years 116,629, ,893,983 where: Deductions / non-taxable income: Fiscal amortization 2,124, ,198 Incomes from provisions resuming 2,944,400 7,202,250 Incomes from penalties and lack of management 0 Expenses resulting from the diminished value of assets following 0 revaluation Total: 5,069,359 7,667,448 Other items of the taxable income type are reserves from the revaluation of tangible assets, taxable according to OUG 34/2009. Non-deductible expenses Profit tax expense account Expenses with fines of 6581,02; 6581,03 accounts - - accounting depreciation expense ct , ,944 fuel and related VAT expenses ct 602 si water ,878 37,818 other non-deductible expenses (depreciation of unused buildings) 12,997 12,592 other non-deductible expenses (penalties, inactive suppliers) 1, expenses for depreciation of assets 1,705, ,555 expenses resulting from the diminished value of assets following 6,692,000 3,833,955 revaluation TOTAL 8,868,933 4,917,475 Special Administrator Sinan MUSTAFA Judicial Administrator MUSAT&ASOCIATII Drafted Chief Financial Officer, Dorina IORDACHE 13

14 NOTES ON THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED ON 31 DECEMBER 2017 EXPLANATORY NOTES ON BALANCE SHEET No. 4 ANALYSIS OF THE OPERATING RESULT IN 2017 Name of indicators A 1 2 Net turnover 17,508,937 19,150,979 Sold Production 17,443,417 19,131,103 Income from sale of goods 65,520 19,876 Income related to the cost of production in progress 30,224 2,855 Income from the revaluation of property, plant and equipment - - Other operating income 6,455,255 2,701,516 OPERATING INCOME 23,933,968 21,849,640 Expenses on raw materials and consumables 3,994,010 3,846,426 Other material expenses 112, ,143 Other external expenses (energy and water) 359, ,280 Expenses on goods 68,062 10,149 Trade discounts received Expenses on personnel 9,967,598 9,322,964 Expenses(ct ) 6,722,414 4,653,820 Value adjustments for current assets 1,228,926 (2,059,843) Expenses (ct ) 2,820, ,433 Incomes (ct ) 1,591,350 2,820,276 Other operating expenses 12,737,171 6,108,838 Expenses on external benefits 2,935,515 1,787,575 Expenses with other taxes, taxes and similar payments; expenses representing transfers and contributions due under special 809, ,460 normative acts (ct *) Expenses from revaluation of corporeal immobilization (ct. 655) Other expenses (Ct ) 8,992,038 3,662,792 OPERATING INCOME - TOTAL 34,104,077 17,975,803 OPERATING PROFIT (10,170,109) 3,873,837 Special Administrator Sinan MUSTAFA Judicial Administrator MUSAT&ASOCIATII Chief Financial Officer, Dorina IORDACHE 14

15 NOTES ON THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED ON 31 DECEMBER 2017 EXPLANATORY NOTE ON BALANCE SHEET NO. 5 LIABILITIES AND RECEIVABLES IN 2017 A. RECEIVABLES Balance at Balance at RON term of liquidity under 1 year over 1 year A 1= I. Long term receivables (acc.267) 76, , Suppliers-debtors for suppliers for services and works , (ct.4092) Customers (accounts ) 9,079,690 9,458,204 9,231, ,630 Personnel receivables and social security (accounts 108, , ) Value Added Tax Receivable (ct.4424) Other receivables with the state and public institutions 188,586 29, (ct ) Intercompany recharges (accounts ) Sundry debtors (ct ) 348, , II. TOTAL CURRENT ASSETS (rd.2 la 9) 9,725,113 10,020,944 9,231, ,630 III. ADJUSTMENTS FOR DEPRECIATION OF 620, , RECEIVABLES (will be subtract) (ct.49(1+5+6)) TOTAL RECEIVABLES (rd ) 9,180,577 9,648,363 9,231, ,630 Suppliers-debtors, amounting to RON 11,665, represent the advances paid to the service providers, which will be closed at the date of receiving the invoices. Commercial receivables (customers) represents mainly the value of maintenance and repair services or building, energy sector upgrades provided to third parties and related parties (for details on transactions and balances with affiliated parties, see paragraph C. of this note). The balance of customers is presented in Appendix 5a. The detail of the doubtful customers or customers with open litigations is presented in Attachment No. 5b. Other receivables are the amounts for which have been presented monthly claims for recovery from the Health House of Bucharest the value of the contribution for the incapacity for work (0.85%) and the postponed VAT amount to the suppliers that apply the VAT system to the collection. 15

16 NOTES ON THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED ON 31 DECEMBER 2017 The sundry debtors include: Name of debt wrongful salary rights - - refurbishment utilities, fines 10,456 3,479 Other debitors 337, ,120 TOTAL 348, ,599 For doubtful customers and sundry debtors, the Company recorded depreciation adjustments in compliance with the legal provisions in force and with the accounting policies presented in Explanatory Note 2. B. Debts Balance at 12/31/ Balance at 12/31/2017 Payment Term under 1 year 1 5 years A 1= I. Total financial liabilities, out of which: long-term and medium-term bank loans (ct.162) short-term loans (ct ) interests on bank loans (ct ) other loans and financial liabilities (ct ) II.Other debts total, of which: 33,867,703 41,464,253 41,464,253 - suppliers total(ct ) ,339,235 2,339,235 - creditor clients (ct.419) 65,587 27,747 27,747 - debts to the social security budget (ct ) 6,508,159 5,836,960 5,836,960 - debts to special fund budgets (ct ) 42,587 30,023 30,023 - debts to the state budget (ct ) 8,681,005 4,952,887 4,952,887 - debts to local budgets (ct ) 1,334,710 1,556,678 1,556,678 - various creditors (ct.462) 26,282,689 26,254,226 26,254,226 - debts to other creditors 466, ,497 - (ct etc.) 374,286 0 III. Incomes recorded in advance (ct.472) TOTAL DEBTS (rd ) 33,942,823 41,464,253 41,464,253 - Other financial liabilities include the performance guarantee from the suppliers, according to Annex 5c.

17 NOTES ON THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED ON 31 DECEMBER 2017 Suppliers - total, amounting to lei, represent the amounts owed to the suppliers of materials, immobilizations and services as at , detailed on maturities in Annex no.5d. Debts to employees, the State Budget, local budgets and the Social Insurance Budget and Special Funds are made up of current debts, due on C. Affiliated parties Affiliated parties, as well as a brief description of their activities and their relationship with the Company, are as follows: Affiliated party Activity Main relationships with the Company FISE ElectricaServ Maintenance and repair services in the field of electricity distribution Receivables resulting from scission and sales of maintenance and repairs, transport and services Transilvania Sud, group company Maintenance and repair services in the field of electricity distribution Sales of maintenance and repairs, transport and services Special Administrator Sinan MUSTAFA Judicial Administrator MUSAT&ASOCIATII Drafted Chief Financial Officer, Dorina IORDACHE 17

18 NOTES ON THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED ON 31 DECEMBER 2017 EXPLANATORY NOTE ON BALANCE SHEET NO. 6 PRINCIPLES, ACCOUNTING POLICIES AND METHODS (INFORMATION FOR THE FISCAL YEAR 2017) a) Accounting regulations applied to the preparation and presentation of financial statements Law 31/1990 with subsequent amendments and completions The accounting policies of SC SERVICII ENERGETICE OLTENIA SA Law no.227 / 2015 regarding the Tax Code, updated OMFP 1802/2014, modified and updated b) There were no deviations from accounting principles and policies, valuation methods, and other provisions in accounting regulations c) The values presented in the financial statements are comparable Special Administrator Sinan MUSTAFA Judicial Administrator MUSAT&ASOCIATII Drafted Chief Financial Officer, Dorina IORDACHE 18

19 NOTES ON THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED ON 31 DECEMBER 2017 EXPLANATORY NOTE - NO. 7 PARTICIPATIONS AND FINANCING SOURCES (INFORMATION ON THE FISCAL YEAR 2017) a) the existence of any participation certificates, transferable securities, convertible bonds, presenting the information required in Subsection 8.2; Yes. - No. X not the case b) subscribed share capital / assets of the entity in lei 70,24,1800 c) the number and total value of each type of issued shares Number: 7,024,180 Shares value - 1: 10 Shares value - 2: 0 * fully paid YES * the number of shares for which it was requested, without result, the realization of the not the case payments d) redeemable shares: * the closest date and the redemption deadline; not the case * the mandatory or non-binding nature of the redemption; not the case * the amount of any redemption premium; not the case e) shares issued during the financial year: * shares type; not the case * number of issued shares; not the case * the total nominal value and the value received at the distribution; not the case * distribution rights: not the case * the number, description and value of the corresponding shares; not the case * period of exercise of rights; not the case * the price paid for distributed shares; not the case f) issued bonds: * type of issued bonds; not the case * the amount issued and the amount received for each type of bond; not the case 19

20 NOTES ON THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED ON 31 DECEMBER 2017 * bonds issued by the entity, held by a nominated person or empowered by it not the case * the nominal value; not the case * the value recorded at the time of payment. not the case g) certificates of participation, securities, convertible bonds * Explanation; not the case At the beginning of 2017 the subscribed and paid-up share capital of the company was 70,241,800 lei, divided into 7,024,180 nominative shares, with a nominal value of 10 lei / share. SC ENERGY SERVICES OLTENIA SA - does not have participations in shares and shares in other companies, did not buy or issue bonds in the exercise year 2017 Special Administrator Sinan MUSTAFA Judicial Administrator MUSAT&ASOCIATII Drafted Chief Financial Officer, Dorina IORDACHE 20

21 S.C. SERVICII ENERGETICE OLTENIA S.A.IN INSOLVENCY SPECIAL ADMINISTRATOR REPORT DRAWN UP FOR THE FINANCIAL EXERCISE ENDED ON DECEMBER 31, 2017 EXPLANATORY NOTE ON BALANCE SHEET NO.8 INFORMATION ABOUT EMPLOYEES AND MEMBERS OF THE BOARD OF DIRECTORS, MANAGEMENT AND SUPERVISORY BODIES (information for fiscal year 2017) a) contractual obligations regarding the payment of pensions to former members of the boards of directors, management and supervisory bodies the total amount of commitments for each category administration NO NO management NO NO supervision NO NO b) the amount of advances made to members of the boards of directors, management and supervisory bodies c) the amount of credits given to the members of the administrative, management and supervisory bodies during the financial year principalele clauze ale creditului NO NO amount repaid by this date NO NO future obligations such as the warranties assumed NO NO d) employees: actual average number with breakdown per category TESA foremen 8 8 workers The Company has no contractual obligations to pay pensions to former administrators and directors, and did not give credits to administrators and directors during the financial year Treasury advances paid to the General Director are given under the Mandate Agreement. The company's salary expenses in the year Expenses on personnel salaries 8,099,224 9,521,165 Gift voucher costs 47,550 10,400 Contribution of the company to social security 1,293,447 1,252,014 Contribution of the company to Unemployment Benefit 40,201 38,042 Contribution of the company to health insurance 487, ,952 Other salary expenses 124,402 34,914 Total 10,092,000 11,323,487 The company had 8 part-time employees on and 33 employees employed for determined period to Special Administrator Sinan MUSTAFA Judicial Administrator MUSAT&ASOCIATII Drafted Chief Financial Officer, Dorina IORDACHE 21

22 S.C. SERVICII ENERGETICE OLTENIA S.A.IN INSOLVENCY SPECIAL ADMINISTRATOR REPORT DRAWN UP FOR THE FINANCIAL EXERCISE ENDED ON DECEMBER 31, 2017 EXPLANATORY NOTE NO.9 CALCULATION AND ANALYSIS OF THE MAIN ECONOMIC AND FINANCIAL INDICATORS FOR THE YEAR A. Indicators of liquidity Lei Balance indicator Lei Balance indicator Current liquidity indicator Quick liquidity Indicator B. Risk indicators Overall indebtedness (%) C. Activity indicators Number of storage days (no. days) Customer-to-customer rotation speed (days) Suppliers credit rotation speed (days) Speed of rotation of fixed assets (number of rotations) Rotation Speed of Total Assets (Times Number) C. Long-term solvency indicators Current assets 13,345,659 14,954, Short term debts 30,178,820 41,529,559 (Current Assets Stocks) 12,275,608 10,541, Short term debts 30,178,820 16,935,305 Debts >1 year* , % Own capitals 11,984,327 15,623,223 Average stock *100/ 34,214,100 34,337,100 2 Cost of sales) 13,915,909 9,378,457 Balance customers at *365/ 3,285,079,205 3,452,244, Value of invoices issued 21,856,893 23,738,721 Balance suppliers at *365/ 1,186,252, ,820,775 Value of invoices issued 9,331,667 7,895,689 Turnover/ 17,508,937 19,150, Fixed assets 45,717,927 42,168,490 Turnover / 17,508,937 19,150, Fixed assets 59,063, Overall solvency (%) Total Assets 59,063, % % %

23 S.C. SERVICII ENERGETICE OLTENIA S.A.IN INSOLVENCY SPECIAL ADMINISTRATOR REPORT DRAWN UP FOR THE FINANCIAL EXERCISE ENDED ON DECEMBER 31, 2017 Total debts 30,178,820 41,529,559 From the analysis of the economic and financial indicators achieved in 2017 compared to those realized in 2016, the following are observed: A. Liquidity indicators reflect the Company's ability to meet its short-term liabilities. The values of the liquidity indicators registered by the Company at the close of the financial years for 2017 are above the safety level (which is around 1), which shows that there is a guarantee of covering the current debts of the current assets. These indicators are down compared to the previous year. B. Risk indicators (Total Liability Ratio) is 0 as compared to the previous year due to the long-term debt of the company. C. Activity indicators The number of days of storage is 2 days The rate of rotation of debts represents the number of days in which customer debts are recovered. This indicator decreased by a percentage from the previous year due to outstanding claims recovered in the year The rotation rate of credit-to-provider is the average number of days of credit that the Company obtained from commercial creditors. This indicator increased by 3% over the previous year, due to the increase in suppliers' payment scales. The rotation speed of fixed assets and the rotation speed of total assets are the effectiveness of asset management and total assets by the number of rotations made to achieve turnover. These indicators show a slight increase over the previous year. D. The long-term solvency indicators (Total Solvency) are determined as a ratio between the total assets and the total debts and indicate the degree of coverage of the total debts by the Company's total assets and express the safety they enjoy by long term creditors. At the end of the previous year, this indicator was 196%, and at the end of 2017 it fell to 138%. Special Administrator Sinan MUSTAFA Judicial Administrator MUSAT&ASOCIATII Drafted Chief Financial Officer, Dorina IORDACHE 23

24 S.C. SERVICII ENERGETICE OLTENIA S.A.IN INSOLVENCY SPECIAL ADMINISTRATOR REPORT DRAWN UP FOR THE FINANCIAL EXERCISE ENDED ON DECEMBER 31, 2017 EXPLANATORY NOTE NO.10 OTHER INFORMATION CONCERNING THE FISCAL YEAR 2017 a) Information on the presentation of the reporting entity SC. SERVICII ENERGETICE OLTENIA SA with headquarter in Craiova, Brestei street no. 5 Dolj carries out its activity in accordance with the applicable Romanian legislation, corroborated with the provisions of the Articles of Incorporation. The accounting records of the company are kept in Romanian and in the national currency. The company has performed energy service activities, according to the contracts concluded, starting from the beginning of the financial year, and had an average number of 219 employees. b) Information on the entity's relationships with subsidiaries, associates, or other companies in which they hold participations It is explained in explanatory note no. 5 c) Conversion bases used to express in national currency the assets and liabilities, incomes and expenses originally denominated in a foreign currency The leu / euro exchange rate is 4,6597 lei for 1 euro, according to the BNR mention of d) Turnover: * on business segments: Maintenance auto 15,248,052 17,286, , ,898 projection 261, ,027 selling goods 65,519 19,875 tenancy 1,222,961 1,537,391 total 17,057,166 19,324,120 e) Events after the balance sheet date that are of importance and whose non-presentation could affect the ability of users of the financial statements to make valuations and make informed decisions * the nature of the event: During the year 2017 there were no financial leasing or operational leasing contracts. f) fees paid to auditors / censors, or fees paid for other certification services * the fee paid to financial auditors is in the amount of 25,000 * fees paid to law enforcement officers and lawyers 0 10,750 * fee paid to the legal administrator, MUSAT & ASOCIATII SRL 1,883, ,025 *fee paid to UNPIR 0 24

25 S.C. SERVICII ENERGETICE OLTENIA S.A.IN INSOLVENCY SPECIAL ADMINISTRATOR REPORT DRAWN UP FOR THE FINANCIAL EXERCISE ENDED ON DECEMBER 31, 2017 g) expected trade effects not arrived to maturity Not the case h) commitments in the form of guarantees of any kind During the years 2016 and 2017, no fiscal control was carried out. cash management guarantees 47,429 47,429 good execution guarantees given to customers 76, ,435 good performance guarantees provided by suppliers 255,165 35,302 Special Administrator Sinan MUSTAFA Judicial Administrator MUSAT&ASOCIATII Drafted Chief Financial Officer, Dorina IORDACHE 25

26 S.C. SERVICII ENERGETICE OLTENIA S.A.IN INSOLVENCY SPECIAL ADMINISTRATOR REPORT DRAWN UP FOR THE FINANCIAL EXERCISE ENDED ON DECEMBER 31, 2017 EXPLANATORY NOTE NO. 11 Total value 12/31/2016 from which Operat. stocks Slow Movement Stocks STOCKS Stocks with no moving Total value 12/31/2017 from which Operat. stocks Slow Movement Stocks Stocks with no moving 0 5= = Auxiliary materials 1,262, , , ,744 1,258, ,031 46, ,945 Non-technological fuel 6,458 6, ,559 3, Spare parts 1,485, ,252 47,678 1,055,678 1,550, ,848 38,397 1,087,980 Other consumables 15,114 6,735 1,423 6,956 8,986 1, ,303 Inventory items 36,770 24,423 1,152 11, , ,067 1,438 6,619 Packing 9,890 1, ,003 7, ,923 Works and services in 8, , progress Total 2,825, , , ,686, ,955, ,019, , ,843, There is a total increase of 132,823 lei as compared to , about 1,05% due to: - removing from the management, based on consumer bills, the materials that were used for the works performed to the beneficiary. Non-moving stocks are mainly composed of: - Materials remaining in the Central Warehouse of Energy Services Oltenia Craiova during the separation from SDFE - materials commissioned for various works by SDFE - (Oltenia Energy Services Company was centralized for SDFEE) - and when the SDFEE was privatized in CEZ, they were not taken over, respectively: - Current Transformers of Low Voltage SIMEN Ploiesti Type; - Safety features 24 KV - Eximprod type; - Current transformers of low voltage Electroputere Craiova Type; - Car parts for cars that are no longer part of the car fleet. Special Administrator Sinan MUSTAFA Judicial Administrator MUSAT&ASOCIATII Drafted Chief Financial Officer, Dorina IORDACHE 26

27 S.C. SERVICII ENERGETICE OLTENIA S.A.IN INSOLVENCY SPECIAL ADMINISTRATOR REPORT DRAWN UP FOR THE FINANCIAL EXERCISE ENDED ON DECEMBER 31, 2017 EXPLANATORY NOTE NO. 12 MONEY AVAILABILITY Balance at Balance at Name Bank accounts 3,410,843 2,540,288 2 Cash at the cash desk 5,650 3,833 3 Cash at the end of the period ( 3=1+2) 3,416,493 2,544,121 4 Checks to be collected 0 5 Cash advances Assimilated accounts 0 7 Assimilated accounts ( 7 = ) 0 8 Cash and Assimilated Assets (8 = 3 + 7) 3,416,493 2,544,821 Special Administrator Sinan MUSTAFA Judicial Administrator MUSAT&ASOCIATII Drafted Chief Financial Officer, Dorina IORDACHE 27

28 S.C. SERVICII ENERGETICE OLTENIA S.A.IN INSOLVENCY SPECIAL ADMINISTRATOR REPORT DRAWN UP FOR THE FINANCIAL EXERCISE ENDED ON DECEMBER 31,2017 NOTE 13 DISTRIBUTION OF PROFIT IN 2017 DESTINATION Lei VALUE NET PROFIT TO BE DISTRIBUTED: 3,875,177 - legal reserve covering accounting losses 3,875,177 - dividends, etc. NOT DISTRIBUTED PROFIT: 0 In 2017 the company registered a profit of 3,875,177 lei. Between 01 January December 2017, SC Energia Oltenia SA recorded a result of operating activity of: 3,873,836 lei and a result from the financial activity: 1,341 lei resulting in an accounting profit of 3,875,177 lei. For the same period the company recorded: Non-taxable incomes of 7,202,250 lei Non-deductible expenses of 4,917,475 lei According to art. 19 of the updated Law 227/2015, SC Energie Servicii Oltenia SA registered on a fiscal result in the amount of lei. Taking into account the tax loss from the previous years, of 116,523,260 lei, the tax loss to be recovered in the following years is 115,893,983 lei. Special Administrator Sinan MUSTAFA Judicial Administrator MUSAT&ASOCIATII Drafted Chief Financial Officer, Dorina IORDACHE