Ekolamp - Annual report

Annual Report 2014

5. Significant Balance Sheet and Profit and Loss Account Items

5.1. Fixed Assets:

a) Intangible Fixed Assets:

Acquisition Value

Incorporation expenses

Software

Software less than TCZK 60

Audio-visual works

Acquisition of intangible assets

Total

1 Jan. 2014

0

1 938

212

478

0

2 628

Transfer

0

0

0

0

0

0

Increases

0

0

0

0

0

0

Decreases

0

0

0

0

0

0

31 Dec. 2014

0

1 938

212

478

0

2 628

 

Accumulated Depreciation

Incorporation expenses

Software

Software less than TCZK 60

Audio-visual works

Acquisition of intangible assets

Total

1 Jan. 2014

0

1 722

204

293

0

2 219

Transfer

0

0

0

0

0

0

Depreciation costs

0

186

8

73

0

267

Accum. depreciation
to decreases

0

0

0

0

0

0

31 Dec. 2014

0

1 908

212

366

0

2 486

 

Adjustments

Incorporation expenses

Software

Software less than TCZK 60

Audio-visual works

Acquisition of intangible assets

Total

1 Jan. 2014

0

0

0

0

0

0

Increase

0

0

0

0

0

0

Decrease

0

0

0

0

0

0

31 Dec. 2014

0

0

0

0

0

0

 

 

 

 

 

 

Opening balance

0

216

8

184

0

408

Closing balance

0

30

0

112

0

142


b) Tangible Fixed Assets:

Acquisiti-
on Value

Build-
ings

Contai-
ner

Machi-
nery and equip-
ment

Machi-
nery and equipment less than TCZK 40

Means of Trans-
port

Small pooling bin

Long-term Advance pay-
ments

Total

1 Jan.
2014

0

23 141

1 537

1 459

1 985

2 925

0

31 047

Transfer

0

0

0

0

0

0

0

0

Increases

50

2 050

0

164

0

0

0

2 264

Decreases

0

-468

0

-157

0

0

0

-625

31 Dec.
2014

50

24 724

1 537

1 466

1 985

2 925

0

32 687

 

Accumu-
lated De-
preciation

Build-
ings

Contai-
ner

Machi-
nery and equip-
ment

Machi-
nery and equipment less than TCZK 40

Means of Trans-
port

Small pooling bin

Long-
term Advance pay-
ments

Total

1 Jan.
2014

0

19 004

1 350

1 249

562

1 752

0

23 917

Transfer

0

0

0

0

0

0

0

0

Depreciation
costs

6

1 457

145

138

397

547

0

2 690

Accum. depreciation
to decreases

0

-460

0

-157

0

0

0

-617

31 Dec.
2014

6

20 001

1 495

1 230

959

2 299

0

25 990

 

Adjustments

Build-
ings

Contai-
ner

Machi-
nery and equipment

Machi-
nery and equipment less than TCZK 40

Means of Trans-
port

Small pooling bin

Long-term Advance payments

Total

1 Jan. 2014

0

0

0

0

0

0

0

0

Increase

0

0

0

0

0

0

0

0

Decrease

0

0

0

0

0

0

0

0

31 Dec. 2014

0

0

0

0

0

0

0

0

 

 

 

 

 

 

 

 

Opening balance

0

4 138

187

209

1 423

1 173

0

7 130

Closing balance

44

4 723

42

236

1 026

626

0

6 697


c) Financial Leases:

The company did not have any financial lease in current and previous accounting period.

d) Operating leases:

The company leases office premises under a fixed-term contract until 31 December 2020 with an optional premature termination as at 31 December 2016 and 31 December 2018. The total annual costs related to this lease were in amount of TCZK 1 654 as at 31 December 2014 (previous period TCZK 1 265).

e) Lien, right of user and other person’s property:

The company did not have any assets under the right of lien, right of user or any other person’s property in current and previous accounting period.

5.2. Low- value tangible and intangible fixed assets

In accordance with the accounting policy described in note 2(a) above, the company has charged to the profit and loss account certain low-value tangible and intangible assets in the year in which they were acquired. The cumulative acquisition cost of low-value tangible and intangible assets in operative documentation is as follows:

Balance as at 31 Dec.

2014

2013

Low-value tangible fixed assets

529

511

Low-value intangible fixed assets (software)

78

45

Total

607

556


5.3. Financial Assets

In the current and previous accounting periods, the company held no short-term or long-term financial assets except cash.

5.4. Inventory

The company held no inventory in the current and previous accounting periods.

5.5. Receivables and Payables

a) Trade Receivables:

Short-term trade receivables amount to TCZK 10 835 (previous period TCZK 17 993) of which TCZK 189 (previous period TCZK 146) are more than 180 days overdue. As at 31 December 2014 an adjustment for doubtful receivables was TCZK 177 (previous period TCZK 142).

b) Receivables Valued at Fair Value:

The company does not have any receivables held for trade and therefore it did not make the revaluation to the fair value in the current and previous accounting periods.

c) Long-term Receivables:

Long-term trade receivables in the amount of TCZK 540 (previous period TCZK 535) are especially deposits in the amount of TCZK 511 in accordance with the lease contract. These deposits mature on 31 December 2020.

d) Other receivables:

Long-term trade receivables in the amount of TCZK 540 (previous period TCZK 535) are especially deposits in the amount of TCZK 511 in accordance with the lease contract. These deposits mature on 31 December 2020.

e) Trade Payables:

Short-term trade payables amount to TCZK 4 253 (previous period TCZK 17 382) of which TCZK 6 (previous period TCZK 51) are more than 180 days overdue.

f) Long-term Payables:

The company had no long-term payables in the current and previous accounting periods.

g) Receivables / Payables resulting from Social Security and Health Insurance:

Receivable + / Payable -

31 Dec. 2014

31 Dec. 2013

Social Security

-148

-178

Heath Insurance

-69

-77

Total

-217

-255

h) Tax Receivables / Payables:

Asset + / Liability -

31 Dec. 2014

31 Dec. 2013

Road tax

0

-6

Real-estate Transfer Tax

0

0

Real-estate Tax

0

0

Consumption Tax

0

0

VAT

501

-136

Wage tax

-77

-113

Corporate Income Tax – due

211

132*

Gift Tax

0

0

Total

635

-123

* On row 054 of Balance Sheet – State – tax receivables – the amount of advance payments on income tax was reduced by the provision for income tax in the whole amount, paid advance payments for income tax was in the amount of TCZK 395 as at 31 December 2013. In 2014 the company did not account for income tax provision.

The company had no tax arrears to Financial Authority in the current and previous accounting periods.

5.6. Estimated receivables

The company did not disclose any estimated receivables in the current and previous accounting periods.

5.7. Estimated payables

The estimated payables in the amount of TCZK 1 444 (previous period TCZK 1 151) relates especially to the estimate of non-invoiced refunds claimed by the participants of the collective system and third parties exporting luminaires and lamps from the Czech Republic.

5.8. Other assets

Deferred income in the amount of TCZK 171 (previous period TCZK 238) is especially interest from a term deposit and a consolidation report for the year 2014 and settled refunds.

5.9. Other liabilities

Accrued expenses in the amount of TCZK 217 (previous period TCZK 4 081) include especially consultancy services for the year 2014, settling of electricity and contributions for collection in the year 2014.

5.10. Employees and Management

a) Employees and Management Information:

31 Dec. 2014

Number of employees

Wage and Salary Costs

Social and Health security

Other Social Costs

Personnel Costs Total

Employees

8

4 510

1 605

400

6 515

Management/ Executives

1

1 240

431

48

1 719

Total

9

5 750

2 036

448

8 234

 

31 Dec. 2013

Number of employees

Wage and Salary Costs

Social and Health security

Other Social Costs

Personnel Costs Total

Employees

8

5 164

1 800

391

7 355

Management/ Executives

1

1 147

352

45

1 544

Total

9

6 311

2 152

436

8 899

b) Governing and Supervisory Board Members Remunerations and Credits:

The company provided remuneration to the board members in the amount of TCZK 24 in current accounting period (previous period TCZK 24).

In the current and previous accounting periods, no loans were provided to the members of the governing or supervisory board.

Company cars are made available for use by the executive officers. The company reimburses the members of the Supervisory Board for travelling costs related with their participation in meetings of the Supervisory Board, the General Meeting, and in other important meetings (flight tickets, hotels, car rentals etc.).

5.11. Adjustments

The company recorded adjustments to receivables in the amount of TCZK 177 (previous period TCZK 142).

5.12. Own Equity

The statement of changes in own equity is included in the financial statements.

The profit of the year 2013 in amount of TCZK 0 was approved based on the General Meeting which took place on 9 June 2014.

On 10 March 2014 the General meeting decided on the following issues:

  • Approval of interim financial statements for the period 1 January 2013 – 30 September 2013,
  • Cancelation of a legal reserve fund and its transfer to reserves for fulfilment of future electrowaste liabilities
  • Distribution of freed business share of former partner NARVA B.E.L./ČR s.r.o. to the three separate shares that were bought by the parent companies of the existing partners, more precisely in one case by the existing partner of the company (see note 1),
  • Approval of the new text of association statutes that reflect changes in legislation (New Civil Code, Business Corporations Act) and changes in distribution of business shares.

5.13. Provisions

The company recorded a reserve for future costs related to the collection, recycling, and disposal of luminaires and lamps and future costs related to the operation of collective system in the amount of TCZK 321 828 (previous period TCZK 321 600).

The company shows a reserve for future liquidation of electronic equipment; it consists of a part determined for liquidation of lamps and a part determined for liquidation of luminaires. The amount of the reserve is determined based on a calculation model.

The existing model of calculating reserves for future liquidation of electronic equipment is being used for computing reserves for liquidation of lamps only, it is described above. The reserve for liquidation of luminaires cannot be calculated with sufficient accuracy by this method because luminaires have a very long life, may be used secondarily and there is unclear legislation. Nevertheless, it is very probable that the existing amount of the reserve for luminaires does not exceed the potential future liabilities of the company connected with the collection and disposal of luminaires that are going to be placed on the Czech market in the following periods.

The amount of the reserve for recycling of lamps is affected significantly by the following factors:

  • Useful life of lamps: it is determined based on the experience of similar collective systems in the European Union,
  • Estimate of the market share of EKOLAMP in the liquidation of electronic equipment in the Czech Republic: optimistic and pessimistic scenarios of the development of market share are applied,
  • Specification of expenses on liquidation: the level of either direct costs or total costs is calculated. Unlike direct costs, the total costs include also overhead costs incurred on the organization of the collection of electronic equipment and marketing costs.

If a reserve for liquidation of lamps is calculated at total costs, the calculation model of the reserves for liquidation of lamps shows amounts which are nearing or exceed the existing booked reserve for liquidation of electronic equipment both in the optimistic and the pessimistic scenarios. The created reserve for liquidation of electronic equipment should cover also the expenses on the liquidation of luminaires. However, such expenses are not included in the calculation.

The above assumptions imply that the current provision for future disposal of electrical and electronic equipment (lamps and luminaires) may not be sufficient in the future, and therefore it leads to annual recalculation of estimate of future liabilities, which has been covered by reserves, and in relation to the development of estimated future costs and revenues.

5.14. Long-term bank credits and loans

The company used no bank credit or loan in the current and previous accounting periods.

5.15. Derivatives

The company did not use any derivatives in the current and previous accounting periods.

5.16. Subsidy Received for the Investment and Operational Purposes

The company did not receive any subsidies for the investment and operational purposes in the current and previous accounting periods.

5.17. Income tax due

a) Due Tax and Retrospective Assessments of the Previous Periods Due Tax:

The income tax due for the current accounting period amounts to TCZK 137 (previous period TCZK 262). The company did not create any income tax provision in the current accounting period.

b) Deferred tax:

The company did not account for deferred tax in the current and previous accounting periods, there is no title for accounting for deferred tax.

5.18. Significant Profit and Loss Account Items

a) Sales:

Sales of the company are fees for collecting, recycling and disposal of luminaires and lamps. A unit fee for recycling is paid by all participants and the final amount depends on the amount of luminaires and lamps placed on the Czech market in the reporting period. The unit fee for luminaires amounts to CZK 2,50 without VAT (previous period CZK 5,21 without VAT) and CZK 8,40 without VAT for lamps (previous period CZK 8,40 without VAT).

Sales of the company amount to TCZK 47 856 (previous period TCZK 73 978) in the current accounting period. All of company’s revenues for the year 2014 and 2013 were realized in the Czech Republic.

b) Services:

Description

2014

2013

Operation of the system

16 647

21 689

PR and marketing

2 667

13 167

Overhead cost

13 932

18 879

Total

33 246

53 735

c) Ostatní provozní výnosy a ostatní provozní náklady:

2014

2013

Other operating revenues

16

58

Other operating expenses

231

657

Other operating expenses includes especially insurance expenses.

d) Financial revenues and financial expenses:

2014

2013

Revenues from sales of securities and ownership interests

22

0

Sold securities and ownership interests

-22

0

Interest revenues

954

1 464

Interest expenses

0

0

Exchange profits/losses

-69

-117

Other financial revenues/expenses

-43

-51

Total

842

1 296

Revenues from sales of securities and ownership interests in the amount of TCZK 22 and expenses on sold securities and ownership interests in the amount of TCZK 22 reflect the settlement of the freed business share from NARVA B.E.L./ČR s.r.o., for more information see page 2, paragraph Changes and Supplements in the Commercial Register in the Accounting Period.

e) Extraordinary revenues and extraordinary expenses:

The company did not have any extraordinary revenues and expenses in the current and previous accounting periods.

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