MOORE STEPHENS - Brunata

AUDIT 

REV1ZJJSKE USlUGE, ZAGREB 

MOORE STEPHENS 

AUDIT ZAGREB 

BRUNATA d.o.o., 

Zagreb, Croatia 

Annual Financial Statements 

and the Independent Auditor's Report 

for the year ended 

30 April 2012 

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CONTENTS 

Page 

Responsibility for the Financial Statements 1 

Independent Auditor’s Report 2 

Statement of comprehensive income 3 

Statement of financial position 4 - 5 

Statement of Changes in Equity 6 

Statement of Cash Flows 7 

Notes to the Financial Statements 8 - 23 

BRUNATA d.o.o., Zagreb, Croatia

.. 

.. 

RESPONSIBILITY FOR THE FINANCIAL STATEMENTS 

Management Board of the Company BRUNATA d.o.o., Zagreb, Senoina 19 ("the Company") is responsible 

for ensuring that the financial statements for the year ended 30 April 2012 are prepared in accordance with 

the International Financial Reporting Standards to give a true and fair view of the financial position, the 

results of operations, the changes in equity and the cash flows of the Company for that period. 

- 

After making enquiries, the Board has a reasonable expectation that the Company has adequate resources 

to continue in operational existence for the foreseeable future. Accordingly, the Board has adopted the 

going concern basis in preparing the financial statements of the Company. 

In preparing those financial statements, the responsibilities of the Board include ensuring that: 

suitable accounting policies are selected and then applied consistently; 

• judgments and estimates are reasonable and prudent; 

- the 

• applicable financial reporting standards are followed, subject to any material departures disclosed and 

explained in the financial statements; and 

financial statements are prepared on the going concern basis unless such assumption is not 

appropriate. 

The Board is responsible for keeping proper accounting records, which disclose with reasonable accuracy 

at any time the financial position and the results of operations of the Company and their compliance with the 

International Financial Reporting Standards. The Board is also responsible for safeguarding the assets of 

the Company and hence for taking reasonable steps for the prevention and detection of fraud and other 

irregularities. 

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RUNATA d.o.o., Zagreb 

Senoina 19 

10000 Zagreb 

Croatia 

... 

21 May 2012

AUDIT 

REVIZUSKE USlUGE, ZAGREB 

MOORE STEPHENS 

AUDIT ZAGREB 

AUDIT d,o.o. za revizijske usluge 

Bastijanova 52 A 

10000 Zagreb 

HRVATSKA 

Tel: + 385 (0) I 3667994 

+ 385 (0) I 3667995 

+ 385 (0) I 3667996 

Fax: + 385 (0) I 3667997 

E-mail: audit-revizija@audit.hr 

INDEPENDENT AUDITOR'S REPORT 

To the owners of the company BRUNATA d.o.o., Zagreb, Croatia 

1. We have audited the accompanying annual financial statements of the company BRUNATA d.o.o., 

Zagreb, Senoina 19, Croatia ("the Company") for the year ended 30 April 2012, which comprise of the Statement 

of financial position as of that date, the Statement of comprehensive income, the Statement of changes in equity 

and the Statement of cash flows for the year then ended, and the accompanying Notes to the financial statements 

which concisely set out the principal accounting policies and other disclosures. 

Responsibility of the Company's management 

2. The preparation and a fair presentation of the enclosed financial statements according to the International 

Financial Reporting Standards and also those internal controls which are determined by the Company's 

management as necessary to enable preparation of the financial statements free from material misstatements 

whether due to fraud or error are the responsibility of the Company's management. 

Responsibility of Auditor 

3. Our responsibility is to express an opinion on the enclosed financial statements based on audit performed. 

We conducted our audit in accordance with International Standards on Auditing. Those standards require that we 

comply with ethical requirements and plan and perform audit to obtain reasonable assurance that the financial 

statements are free from material misstatements. 

An audit includes performing of procedures to obtain audit evidence supporting the amounts and disclosures in the 

financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the 

risks of material misstatements in the financial statements, whether due to fraud or error. In making those risk 

assessments, the auditor considers internal controls relevant to the entity's preparation and fair presentation of the 

financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the 

purpose of expressing an opinion on the effectiveness of the entity's internal controls. An audit also includes 

evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made 

by Company's management, as well as evaluating the overall presentation of the financial statements. 

We believe that auditing proof and evidence being collected by us are sufficient and suitable as the basis for our 

opinion. 

Opinion 

4. In our opinion, the accompanying financial statements, in all material respects, give a true and fair view of 

the financial position of the Company as at 30 April 2012, the results of operations and the cash flows of the 

Company for the year then ended in accordance with the In ernational Financial Reporting Standards. 

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Zdenko Balen, certified auditor, member of the Mana' ement / 

STATEMENT OF COMPREHENSIVE INCOME 

For the year 1 May 2011 to 30 April 2012 

2011/2012 2010/2011 

Note in HRK in HRK 

Sales revenues 3 7,158,963 6,482,333 

Other operating revenues 4 37,156 39,519 

Operating revenues 7,196,119 6,521,852 

Raw material and material costs 5 (285,095) (382,278) 

Costs of goods sold 6 (2,748,095) (2,249,115) 

Other external costs 7 (1,983,630) (1,982,900) 

Material costs (5,016,820) (4,614,293) 

Net salaries and wages (660,087) (570,943) 

Costs for taxes and contributions from salaries (417,982) (381,300) 

Contributions on gross salaries (185,672) (163,786) 

Staff costs (1,263,741) (1,116,029) 

Depreciation 8 (61,861) (56,583) 

Other costs 9 (173,818) (212,817) 

Other operating expenses 10 (149,578) (53,129) 

Operating expenses (6,665,818) (6,052,851) 

Interest income, foreign exchange gains and 

similar income from related parties 37,335 7,345 

Interest income, foreign exchange gains and 

similar income from non-related parties and other entities 2,809 1,225 

Financial income 11 40,144 8,570 

Interest expenses, foreign exchange losses and 

similar expenses from related parties (410,281) (324,195) 

Interest expenses, foreign exchange losses and 

similar expenses from non-related parties and other entities (10,153) (4,537) 

Financial expenses 12 (420,434) (328,732) 

TOTAL INCOME 7,236,263 6,530,422 

TOTAL EXPENSES (7,086,252) (6,381,583) 

PROFIT BEFORE TAXATION 150,011 148,839 

Profit tax 13 - - 

PROFIT FOR THE PERIOD 25 150,011 148,839 

The accompanying notes from 1 to 36 set out below form an inseparable part 

of these financial statements. 

KONČAR – ___________________________ D.D., ZAGREB 

BRUNATA d.o.o., Zagreb, Croatia 

3

STATEMENT OF FINANCIAL POSITION 

As at 30 April 2012 

30 April 

2012 

30 April 

2011 


ASSETS 

Concessions, patents, license fees, merchandise 

and service brands, software and other rights - 3,197 

Intangible assets 14 - 3,197 

Instruments, plant inventories and transportation assets 131,571 162,000 

Tangible assets 15 131,571 162,000 

Loans, deposits and similar assets 71,630 36,793 

Financial assets 16 71,630 36,793 

LONG-TERM ASSETS 203,201 201,990 

Merchandise 1,457,293 1,393,137 

Inventories 17 1,457,293 1,393,137 

Receivables from related parties 18 138,999 66,800 

Accounts receivable 19 6,875,155 5,254,477 

Receivables 7,014,154 5,321,277 

Loans given to related parties 438,706 116,199 

Financial assets 20 438,706 116,199 

Cash at bank and in cashier 21 296,846 4,932 

SHORT-TERM ASSETS 9,206,999 6,835,545 

Prepaid expenses and accrued income 22 115,874 34,347 

TOTAL ASSETS 9,526,074 7,071,882 


4

STATEMENT OF FINANCIAL POSITION 

As at 30 April 2012 – continued 

30 April 

2012 

30 April 

2011 


LIABILITIES AND CAPITAL 

Subscribed capital 23 4,959,200 440,000 

Accumulated loss 24 (3,009,233) (3,158,072) 

Profit for the current year 25 150,011 148,839 

CAPITAL AND RESERVES 2,099,978 (2,569,233) 

Loan from related parties - 3,956,640 

Long-term liabilities 26 - 3,956,640 

Liabilities to related parties 27 6,972,564 5,016,223 

Liabilities to banks and other financial institutions 28 - 255,431 

Accounts payable 29 16,195 12,250 

Liabilities due to employees 30 54,134 47,642 

Liabilities for taxes, contributions and similar fees 31 383,203 352,929 

Short-term liabilities 7,426,096 5,684,475 

TOTAL CAPITAL AND LIABILITIES 9,526,074 7,071,882 




5

STATEMENT OF CHANGES IN EQUITY 


30 April 

2010 

Transfer 

from/to 

Profit 

for the 

current year 

30 April 

2011 

in HRK in HRK in HRK in HRK 

Subscribed capital 440,000 - - 440,000 

Accumulated loss (3,195,734) 37,662 - (3,158,072) 

Profit for the current year 37,662 (37,662) 148,839 148,839 

Total (2,718,072) - 148,839 (2,569,233) 

Note 

30 April 

2011 

Additional 

capitalization 

Transfer 

from/to 

Profit 

for the 

current year 

30 April 

2012 

in HRK in HRK in HRK in HRK in HRK 

Subscribed capital 23 440,000 4,519,200 - 4.959.200 

Accumulated loss 24 (3,158,072) - 148,839 - (3.009.233) 

Profit for the current year 25 148,839 - (148,839) 150,011 150.011 

Total (2,569,233) 4,519,200 - 150,011 2.099.978 




6

STATEMENT OF CASH FLOWS 


I 

II 

2011/2012 2010/2011 


CASH FLOW FROM OPERATING ACTIVITIES 

Profit before tax 150,011 148,839 

Depreciation 61,862 56,583 

Increases in short-term liabilities 1,741,621 3,546,638 

Decrease in prepaid expenses and accrued income - 129,854 

Total increase in cash flow from operating activities 1,953,494 3,881,914 

Decrease in short-term liabilities - - 

Increase in short-term receivables (1,692,877) (2,998,527) 

Increase in prepaid expenses and accrued income (81,527) - 

Increase in inventories (64,156) (814,170) 

Total decrease in cash flow from 

operating activities (1,838,560) (3,812,697) 

NET CASH FLOW FROM OPERATING ACTIVITIES 114,934 69,217 

CASH FLOW FROM INVESTING ACTIVITIES 

Increase of capital 4,519,200 - 

Total cash inflows from investing activities 4,519,200 - 

Cash outflows for purchase of long-term 

tangible and intangible assets (28,235) (54,144) 

Total cash outflows from investing activities (28,235) (54,144) 

TOTAL CASH FLOW FROM INVESTING ACTIVITIES 4,490,965 (54,144) 

III 

CASH FLOW FROM FINANCING ACTIVITIES 

Cash inflows from loans, debentures, 

credits and other borrowings - 53,751 

Total cash inflows from financing activities - 53,751 

Cash outflows for the financing activities (357,345) (152,992) 

Cash outflows from loan debentures (3,956,640) - 

Total cash outflows from financial activities (4,313,985) (152,992) 

TOTAL CASH FLOW FROM FINANCING ACTIVITIES (4,313,985) (99,241) 

TOTAL NET CASH FLOW 291,914 (84,168) 

CASH AND CASH EQUIVALENTS 

AT BEGINNING OF PERIOD 21 4,932 89,100 

CASH AND CASH EQUIVALENTS 

AT END OF PERIOD 21 296,846 4,932 

INCREASE/(DECREASE) IN CASH 

AND CASH EQUIVALENTS 291,914 (84,168) 




7

NOTES TO THE FINANCIAL STATEMENTS 


1. GENERAL 

1.1. Activity 

The principal activities of the BRUNATA d.o.o., Zagreb, Šenoina 19, Croatia (’’the Company’’) are: 

- buying and selling merchant goods; 

- commercial intermediation on domestic and foreign markets; 

- manufacturing measuring equipment and assembly; 

- providing services in measuring energy consumption. 

1.2. Employed 

The number of staff employed by the Company at 30 April 2012 was 6 employees (At 30 April 2011 was 5 

employees). 

1.3. Management Board 

The members of the Management Board are as follows: 

Jens Peter, managing director 

Eva Fisher Hansen, managing director 

Karolina Osipowska Byczkowska, procurist 

Jasmina Zećirević, procurist 


8


For the year 1 May 2011 to 30 April 2012 – continued 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

Set out below are the principal accounting policies. 

2.1. Statement of adjustment and basis of presentation 

Financial statements of the Company for the year 1 May 2011 to 30 April 2012 are prepared in accordance 

with the International Financial Reporting Standards (‘’IFRS’’). 

Financial statements have been prepared by the application of basic accounting presumption of the 

business event inception upon which the effects of operations are recognized when arisen and are shown in 

the financial statements for the period to which they relate and with the basic accounting assumption that 

going concern concept is applied. 

2.2. Reporting currency 

The financial statements of the Company are prepared in Croatian kuna (’’HRK’’) as a measuring and 

reporting currency of the Company. 

2.3. Revenue recognition 

Sales of goods and services are recognized when goods are delivered and services are rendered, and the 

title has passed. Interest income is accrued on a time basis, by reference to the principal outstanding and at 

the applicable effective interest rate. 

2.4. Borrowing costs 

Borrowing costs are charged to the statement of income in the period in which they are incurred. 

2.5. Foreign currency transactions 

Transactions in currencies other than HRK are initially recorded at the rates of exchange prevailing on the 

dates of the transactions. Monetary assets, receivables and liabilities denominated in such currencies are 

retranslated at the rates prevailing on the balance sheet date. Gains and losses arising on translation are 

included in the income statement for the current year. 

At 30 April 2011 the official rate of Croatian kuna was 7.53 HRK for 1 EUR (At 31 April 2010 was 7.35 

HRK). 

2.6. Income tax 

The tax currently payable is based on the result for the year, adjusted by non-taxable and tax nondeductible 

items. Income tax is calculated using tax rates that have been enacted by the balance sheet 

date. 


9



2.7. Intangible and tangible assets 

Long-term intangible and tangible assets initially are carried at historical acquisition cost which comprises 

purchase price, import duties and non-refundable sales taxes, after deduction of commercial discounts and 

rebates, as well as all other costs directly attributable to bringing the asset to its working condition for its 

intended use. 

Long-term intangible and tangible assets are recognized if it is likely that future benefits attributable to the 

property will inflow to the Company, and if the cost of acquisition of an asset can be reliably measured, and 

if a single purchase value of property exceeds HRK 3,500. 

After first recognition, the property is carried at historical acquisition cost less accumulated depreciation and 

any accumulated impairment losses. 

Maintenance and repairs, replacements and improvements of minor importance are expensed as incurred. 

Where it is obvious that expenses incurred resulted in increase of expected future economic benefits to be 

derived from the use of an item of long-term intangible or tangible property in excess of the originally 

assessed standard performance of the asset, they are added to the carrying amount of the asset. Gains or 

losses on the retirement or disposal of long-term intangible and tangible asset are included in the statement 

of comprehensive income in the period in which they occur. 

Depreciation commences on putting an asset in use, i.e. when it is at the location and in a condition 

necessary for utilization. Depreciation count of property ceases when the property is classified as property 

held for sale. Depreciation is charged so as to write-off the cost or valuation of each asset, other than land 

and long-term intangible and tangible property under construction, over their estimated useful lives, using 

the straight-line method, on the following basis: 

Depreciation rate 

(from – to %) 

Concessions, patents, licence fees, merchandise and 

service brands, software and other rights 50 

Instruments, plant inventories and transportation assets 20 – 50 

2.8. Financial assets 

Financial property represents the cash, the investments in cash, objects and the cession of rights with an 

intention of securing of income and is classified at the balance sheet date, as follows: 

- investments held to the maturity date; 

- advances, loans and receivables. 


10



2.9. Inventories 

Inventories are stated at the lower of cost and net realizable value. 

Net realizable value represents the estimated selling price during a normal course of operations less all 

estimated costs of completion and necessary costs to be incurred in selling. 

If the value of inventories is higher than the estimated net selling price, an allowance is created and 

charged to statement of comprehensive income for the current year. 

Small inventories, packing and car tyres are written-off by 100% at the moment when they are put into use. 

2.10. Receivables 

Receivables are initially measured at fair value. At each statement of financial position date, receivables, 

which collection is expected in a period longer than a year, are stated at depreciated cost by the application 

of effective interest rate method less impairment value. Short-term receivables are stated at initially 

recognized nominal amount less corresponding amount of value provision for estimated uncollectible 

amounts and the value decreases. 

The value of receivables is decreased and the impairment losses arise only and exclusively if an objective 

evidence exists in respect of a value decrease resulted from a certain or more events arisen after the initial 

recognition of property, when such event has the impact to the estimated future cash flows from receivables 

which can be reliably determined. At each statement of financial position date, it is estimated whether an 

objective evidence in respect of a value decrease of a single receivable exists. If an objective evidence 

exists in respect of a value decrease of receivables, the amount of loss is measured as a difference 

between a net book value and the estimated future cash flows. Net book value of receivables will be 

decreased directly or by using a separate account of value provision. The amount of a loss is recognized by 

charging the statement of comprehensive income for the current year. 

2.11. Cash at bank and in cashier 

Cash consists of balances with banks and cash in hand. 

2.12. Impairment 

At each statement of financial position date, the Company reviews the carrying amounts of its assets to 

determine whether there is any indication that those assets have suffered an impairment loss. If any such 

indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the 

impairment loss. If the recoverable amount of an asset is estimated to be less than its carrying amount, the 

carrying amount of the asset is reduced to its recoverable amount. 


11



2.13. Financial instruments 

Financial instruments are classified as assets, liabilities or equity instruments in accordance with applicable 

contracts. Interest, gains and losses on financial instruments classified as financial assets or liabilities are 

recognized as income or expense when they arise. 

Financial assets and financial liabilities are recognized on the Company's statement of financial position 

when the Company becomes a party to the contractual provisions of the instrument. 

Receivables are stated at their nominal value as reduced by appropriate allowances for estimated 

irrecoverable amounts. 

Liabilities are stated at their nominal amounts. 

Interest-bearing bank borrowings and overdrafts are recorded at the proceeds received and to the extent of 

approved overdraft facility. 

The Management of the Company believes that the fair values of all assets and liabilities stated in the 

statement of financial position are not materially different from their carrying amounts. 

2.14. Provisions 

A provision is recognized only when the Company has a present obligation as a result of a past event and if 

it is probable that an outflow of resources embodying economic benefits will be required to settle the 

obligation, and if a reliable estimate can be made of the amount of the obligation. Provisions are reviewed 

at each statement of financial position and adjusted to reflect the current best estimate. 

2.15. Contingent liabilities and assets 

Contingent liabilities are not recognized in the financial statements but disclosed in notes to the financial 

statements. 

A contingent asset is not recognized in the financial statements but disclosed in the moment when an inflow 

of economic benefits is probable. 

2.16. Subsequent events 

After the statement of financial position date events that provide additional information about the Company’s 

position at the statement of financial position date (adjusting events) are reflected in the financial 

statements. Post-year-end events that are not adjusting events are disclosed in the notes to the financial 

statements when material. 


12



3. SALES REVENUES 

2011/2012 2010/2011 

in HRK in HRK 

Revenue from sale of products in Croatia 7,158,963 6,482,333 

Total 7,158,963 6,482,333 

4. OTHER OPERATING REVENUES 

2011/2012 2010/2011 

in HRK in HRK 

Surpluses 2,107 - 

Income from donations 3,747 39,195 

Other income 31,302 324 

Total 37,156 39,519 

5. RAW MATERIAL AND MATERIAL COSTS 

2011/2012 2010/2011 

in HRK in HRK 

Raw material and material costs 203,042 307,655 

Energy 79,815 70,892 

Costs of spare parts and small inventory 2,238 3,731 

Total 285,095 382,278 

6. COSTS OF GOODS SOLD 

Costs of goods sold in the amount of HRK 2,748,095 (2010/2011 in the amount of HRK 2,249,115) relate to 

the purchase value of goods sold. 


13



7. OTHER EXTERNAL COSTS 

2011/2012 2010/2011 

in HRK in HRK 

Telephone cost, postal services and transport 161,404 193,953 

External services of manufacturing and sale services - 942,341 

Maintenance (services) 59,846 78,852 

Rental costs and lease 145,880 137,353 

Advertising and promotion and trade fairs 37,692 126,231 

Municipal services 20,982 21,900 

Intellectual and personal services 352,234 417,830 

Other costs 1,205,592 64,440 

Total 1,983,630 1,982,900 

8. DEPRECIATION 

2011/2012 2010/2011 

in HRK in HRK 

Depreciation of intangible assets 3,197 5,481 

Depreciation of tangible assets 58,664 51,102 

Total 61,861 56,583 

9. OTHER COSTS 

2011/2012 2010/2011 

in HRK in HRK 

Daily allowances and travelling costs 32,129 83,962 

Compensation of costs to employees 19,880 8,910 

Banking services and payment traffic costs 50,932 33,533 

Insurance premiums 51,846 32,857 

Entertainment expenses 9,233 20,573 

Contributions, memberships and similar appropriations 5,660 16,194 

Other costs 4,138 16,788 

Total 173,818 212,817 


14



10. OTHER OPERATING EXPENSES 

2011/2012 2010/2011 

in HRK in HRK 

Deficit 4,817 - 

Write-offs of receivables 75,345 - 

Subsequently ascertained expenses 16,600 22,314 

Subsequently approved rebates and discounts 45,719 20,123 

Donations, sponsorships 1,845 8,900 

Other operating expenses 5,252 1,792 

Total 149,578 53,129 

11. FINANCIAL INCOME 

2011/2012 2010/2011 

in HRK in HRK 

Related parties 

Foreign exchange gains 37,335 - 

Other financial income - 7,345 

37,335 7,345 

Non-related parties 

Interest income 2,809 - 

Foreign exchange gains - 1,225 

2,809 1,225 

Total 40,144 8,570 

12. FINANCIAL EXPENSES 

2011/2012 2010/2011 

in HRK in HRK 

Related parties 

Interest expenses 131,496 219,151 

Foreign exchange losses 278,785 105,044 

410,281 324,195 

Non-related parties 

Interest expenses 10,153 4,537 

10,153 4,537 

Total 420,434 328,732 


15



13. PROFIT TAX 

13.1. The reconciliation of accounting profit to taxable profit was made as follows: 

2011/2012 2010/2011 

in HRK 

in HRK 

Accounting profit 150,011 148,839 

Tax non-deductible expenses 264,511 267,999 

414,522 416,838 

Tax loss carried forward (2,301,870) (2,718,708) 

Tax loss to be carried forward (1,887,348) (2,301,870) 

The applicable income tax rate for 2011/2012 and 2010/2011 was 20%. 

13.2. Tax losses to be carried forward for the purpose of reducing taxable profit are available for the 

Company in the period of next five (5) years. 

As at 30 April 2012, total net losses carried forward are determined in the amount of HRK 1,887,348. 

The benefits of tax losses carried forward have not been recognized in these financial statements because 

of uncertainty as to whether the conditions to utilize them will exist in the future periods. 


16



14. INTANGIBLE ASSETS 

Concessions, patents, 

licence fees, 

merchandise and 

in HRK 

service brands 

software and 

other rights 

Cost 

At 30 April 2011 10,962 

At 30 April 2012 10,962 

Accumulated depreciation 

At 30 April 2011 7,765 

Depreciation charge for May 2011 to April 2012 3,197 

At 30 April 2012 10,962 

Net book value 

At 30 April 2012 - 

At 30 April 2011 3,197 

15. TANGIBLE ASSETS 

Instruments, 

in HRK 

plant inventories 

and transportation 

assets 

Cost 

At 30 April 2011 330,866 

Additions 28,235 

At 30 April 2012 359,101 

Accumulated depreciation 

At 30 April 2011 168,866 

Depreciation charge for May 2011 to April 2012 58,664 

At 30 April 2012 227,530 

Net book value 

At 30 April 2012 131,571 

At 30 April 2011 162,000 


17



16. FINANCIAL ASSETS 

30 April 

2012 

in HRK 

30 April 

2011 

in HRK 

Loans, deposits and similar assets 

Warranties upon operative lease 66,200 36,793 

Loan to the employee 5,430 - 

Total 71,630 36,793 

17. INVENTORIES 

30 April 

2012 

in HRK 

30 April 

2011 

in HRK 

Merchandise from related parties 1,169,179 1,346,953 

Goods in transit from related parties 244,573 - 

Other merchandise 43,541 46,184 

Total 1,457,293 1,393,137 

18. RECEIVABLES FROM RELATED PARTIES 

30 April 

2012 

in HRK 

30 April 

2011 

in HRK 

Brunata A/S, Denmark - 1,853 

Brunata d.o.o., Serbia 121,932 48,281 

Bru-Pol Silesia Sp.z.o.o., Poland 17,067 16,666 

Total 138,999 66,800 


18



19. ACCOUNTS RECEIVABLE 

30 April 

2012 

in HRK 

30 April 

2011 

in HRK 

Domestic accounts receivable 6,875,155 5,254,477 

Total 6,875,155 5,254,477 

20. FINANCIAL ASSETS 

30 April 

2012 

in HRK 

30 April 

2011 

in HRK 

Loans give to related parties 

Brunata d.o.o., Serbia 438,706 116,199 

Total 438,706 116,199 

21. CASH AT BANK AND IN CASHIER 

30 April 

2012 

in HRK 

30 April 

2011 

in HRK 

Current account balance 295,612 - 

Foreign currency account balance 675 511 

Cash in hand – HRK 559 4,421 

Total 296,846 4,932 

22. PREPAID EXPENSES AND ACCRUED INCOME 

The amount of HRK 115,874 (At 30 April 2011 the amount of HRK 34,347) relates to prepaid expenses of 

the future period. 


19



23. SUBSCRIBED CAPITAL 

Subscribed capital is established in nominal value amounting to HRK 4,595,200 (At 30 April 2011 in the 

amount of HRK 440,000) and relates to the stake of Brunata International A/S, Denmark. 

Basic capital is increased from the amount of HRK 440,000 for the amount of HRK 4,519,200 carrying into 

the rights – receivables by a part of the owners, i.e. loans in the amount of HRK 4,051,348 and the interest 

in the amount of HRK 467,852. 

24. ACCUMULATED LOSS 

in HRK 

At 30 April 2011 (3,158,072) 

Profit for the year 2010/2011 (see Note 25) 148,839 

At 30 April 2012 (3,009,233) 

25. PROFIT FOR THE CURRENT YEAR 

In 2011/2012 the Company generated net profit in the amount of HRK 150,011 (2010/2011 profit in the 

amount of HRK 148,839). 

Profit of the Company from 2010/2011 in the amount of HRK 148,839 was allocated to accumulated loss 

(see Note 24). 

26. LONG-TERM LIABILITIES 

30 April 

2012 

in HRK 

30 April 

2011 

in HRK 

Loan from related parties 

Brunata International A/S, Denmark - 3,956,640 

Total - 3,956,640 


20



27. LIABILITIES TO RELATED PARTIES 

30 April 

2012 

in HRK 

30 April 

2011 

in HRK 

Brunata A/S, Denmark 6,946,752 4,637,502 

Brunata International A/S, Denmark - 327,990 

Bru-Pol Silesia Sp.z.o.o., Poland 25,812 50,731 

Total 6,972,564 5,016,223 

28. LIABILITIES TO BANKS AND OTHER FINANCIAL INSTITUTIONS 

30 April 

2012 

in HRK 

30 April 

2011 

in HRK 

Raiffeisenbank Austria d.d., Zagreb - 255,431 

Total - 255,431 

29. ACCOUNTS PAYABLE 

30 April 

2012 

in HRK 

30 April 

2011 

in HRK 

Domestic suppliers 16,195 12,250 

Total 16,195 12,250 

30. LIABILITIES DUE TO EMPLOYEES 

30 April 

2012 

in HRK 

30 April 

2011 

in HRK 

Liabilities for net wages and salaries 54,134 47,642 

Total 54,134 47,642 


21



31. LIABILITIES FOR TAXES, CONTRIBUTIONS AND SIMILAR FEES 

30 April 

2012 

in HRK 

30 April 

2011 

in HRK 

Taxes and surtaxes 17,050 14,843 

Liabilities for a value added tax 329,557 304,825 

Liabilities for contributions, etc. 36,596 33,261 

Total 383,203 352,929 

32. STATEMENT OF CASH FLOWS 

Statement of cash flows during 2011 was prepared on the basis of indirect method. 

33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT 

33.1. Managing financial risk objectives 

The Company controls and manages financial risks which could have the inflow to the operations of the 

Company by internal reports on risks where the exposures to risks are analyzed on the basis of a degree 

and character of market risk, interest risk, credit risk, currency risk and solvency risk. 

33.2. Market risk 

The Company operates in the Croatian market. 

There were no significant changes of market risk influence to Company’s operations. 

33.3. Interest rate risk 

Interest rate risk is a risk that the value of a financial instrument will fluctuate due to changes in market 

rates relative to the interest rate applicable to the financial instrument. Interest rate cash flow risk is the risk 

that the interest cost of an instrument will fluctuate over time. 

There were no significant changes of interest risk influence to Company’s operations. 

33.4. Credit risk 

Credit risk is a risk that the other contractual party would not be able to perform its financial liabilities and 

thus cause financial losses for the Company. 

Financial assets that potentially expose the Company to credit risk consist mainly of cash, money 

equivalents and trade receivables. Trade receivables have been adjusted for the allowance for bad and 

doubtful accounts. 

There were no significant changes of credit risk influence to Company’s operations. 


22


For the year 1 May 2011 to 30 April 2012 - continued 

33.5. Currency risk 

The official currency of the Company is Croatian kuna ("HRK"). However, certain transactions denominated 

in foreign currencies are translated into Croatian kuna by applying the exchange rates in effect at the 

balance sheet date 1statement of financial position, and is consequently, the Company potentially exposed 

to risks of changes in currency rates. 

33.6. Solvency risk 

Solvency risk is risk that the Company would not be able to fulfill its financial liabilities to the other 

contractual party. 

Company manages solvency risk in the way that observes continuously and analyses expected and actual 

cash flow on the basis of maturity of financial property and liabilities. 

34. POTENTIAL LIABILITIES 

Upon the estimate of the Company's management, at 30 April 2012 the Company has no significant 

potential liabilities. 

35. AFTER THE BALANCE SHEET DATE EVENTS 

After the Balance sheet date, there were no events which could inflow materially to the annual financial 

statements of the Company for 2011/2012 and consequently, which should have been notified. 

36. PREPARATION AND THE APPROVAL OF THE FINANCIAL STATEMENTS 

The financial statements, set out on previous pages, were prepared by the Management Board of the 

Company, and authorized for issue on 21 May 2012. 

BRUNATA d.o.o., zagreb, Croatia 

23

MOORE STEPHENS - Brunata

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