Annual report - HSE

Provisions for termination and jubilee benefits (10)
in €
Provisions for termination and jubilee benefits 31 December 2012 31 December 2011
Termination 472,685 547,497
Jubilee benefits 193,020 187,201
TOTAL 665,705 734,698
At the end of 2012, the company discloses provisions for termination and jubilee benefits
in the amount of EUR 665,705, created on the basis of actuarial calculation as at 31
December 2012.
The actuarial calculation was based on:
• the number of employees in the company as at 31 December 2012 (gender, age, overall
and pension qualifying period of service, average net and gross salary for the period July
– September 2012);
• method for calculating termination and jubilee benefits in the company;
• average gross salary growth of 1.9% in 2013, 1.5% in 2014 and 2015 and 3.0% per year in
the following years; and
• discount interest rate of 4.6%; and
• employee turnover by age category.
In 2012, the company created provisions for termination and jubilee benefits in the amount
of EUR 66,452 and drew them for payment of jubilee benefits in the amount of EUR
135,445.
Other provisions (11)
in €
Other provisions 31 December 2012 31 December 2011
For lawsuits 6,501,957 7,982,714
TOTAL 6,501,957 7,982,714
Among other provisions, the company discloses the following:
• provision, created in 2008, for lawsuits filed by the company TDR-Metalurgija d.d.- v
stečaju and its related companies and employees. Two of four proceedings before the
court have been solved in the benefit of the company, while no decision has been reached
in the other two cases. The amount includes also default interest.
• provision, created in 2007, for the fee requested as compensation for limited area use,
charged to the company on the basis of the Decree on the concession for the exploitation
of the Drava river for the generation of electricity (Official Gazette of RS no. 1/08). The
provision was reversed in 2012. Six out of seven legal proceedings against the company
have been solved in favour of the company (four in 2012). For this reason, the company
expects that the last legal action will also be solved in its favour.
in €
Changes of other provisions
For lawsuits
Balance as at 01/01/2011 7,657,477
Annual Report HSE 2012
4 Financial Report of the company HSE
138
Creation, increase 554,761
Decrease - drawing -229,524
Balance as at 31/12/2011 7,982,714
Balance as at 01/01/2012 7,982,714
Creation, increase 412,947
Decrease - reversal -1,893,704
Balance as at 31/12/2012 6,501,957