JOINT STOCK COMPANY
“LATVIJAS JŪRAS MEDICĪNAS CENTRS”
(Unified registration number: 40003306807)
FINANCIAL STATEMENTS FOR 2021
(18
th
financial year)
PREPARED IN ACCORDANCE WITH THE LAW ‘ON ACCOUNTING’ AND
‘ANNUAL REPORTS AND CONSOLIDATED ANNUAL REPORTS LAW’ OF
THE REPUBLIC OF LATVIA
Riga, 2022
JSC Latvijas Jūras medicīnas centrs
Address: Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Contents
2
Information on the Company
3
Statement of the Board’s Responsibility
4
Management Report
5 – 6
Remuneration Report for 2021
7 – 8
Financial Statements:
Profit and Loss Statement
9
Balance Sheet
10 – 11
Statement of Changes to the Shareholders’ Equity
12
Statement of Cash Flows
13
Notes to the Financial Statements
14 – 28
JSC Latvijas Jūras medicīnas centrs
Address: Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Information on the Company
3
Name of the Company
Latvijas Jūras medicīnas centrs
Legal status
Joint Stock Company
Number, place and date of registration
40003306807
Riga, 27 August 1996
Re-registered with the Commercial Register
On 27 February 2004 under the unified registration number
4000 330 6807
Core business:
Hospital activities (86.10)
Retail sale of medical and orthopaedic goods in specialised
stores (47.74)
Other education n.e.c. (85.59)
General medical practice activities (86.21)
Special medical practice activities (86.22)
Dental practice activities (86.23)
Other human health activities (86.90)
Residential nursing care activities (87.10)
Other residential care activities (87.90)
Other social work activities without accommodation n.e.c.
(88.99)
Physical well-being activities (96.04)
Other personal service activities n.e.c. (96.09)
Registered office
Patversmes iela 23
Riga, LV-1005,
Latvia
Largest shareholders
Ilze Birka (17.50%)
Mārtiņš Birks (17.50%)
SIA ‘POM’ (8.82%)
Guna Švarcberga (10.36%)
Jānis Birks (12.80%)
Adomas Navickas (6.85%)
Names of the Board members, their
positions
Jānis Birks – Chairman of the Board
Juris Imaks – Member of the Board
Anatolijs Ahmetovs – Member of the Board
Names of the Council members, their
positions
Mārtiņš Birks – Chairman of the Council
Viesturs Šiliņš – Deputy Chairman of the Council
Ineta Gadzjus – Member of the Council
Jevgeņijs Kalējs – Member of the Council
Uldis Osis – Member of the Council
Reporting year
1 January 2021 – 31 December 2021
Name and address of the certified auditor
in charge
KPMG Baltics SIA Certified auditor in charge:
Licence No. 55 Rainers Vilāns
Vesetas iela 7 Certificate No. 200
Riga, LV-1013,
Latvia
JSC Latvijas Jūras medicīnas centrs
Address: Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Statement of the Board’s Responsibility
4
The Board of AS Latvijas Jūras Medicīnas Centrs (hereinafter – the Company) is responsible for
preparing the financial statements of the Company.
The financial statement on pages 9 to 28 is prepared based on accounting records and source
documents and present fairly the financial position of Companies as at 31 December 2021 and the
results of its operations, and cash flows for the 12-month period of 2021.
The above mentioned financial statement of the Company is prepared in accordance with the laws
‘On accounting’ and ‘Annual Reports and Consolidated Annual Reports Law’ effective in the Republic
of Latvia, on a going concern basis. Appropriate accounting policies have been applied on a
consistent basis. Prudent and reasonable judgements and estimates have been made by the
Management in the preparation of the financial statement.
The management of the Company is responsible for the maintenance of a proper accounting system,
safeguarding the Company’s assets, and the prevention and detection of fraud and other
irregularities in the Company. The management is also responsible for compliance with laws of the
Republic of Latvia.
Chairman of the Board
Jānis Birks
Member of the Board
Juris Imaks
Member of the Board
Anatolijs Ahmetovs
27 April 2022
JSC Latvijas Jūras medicīnas centrs
Address: Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Management Report
5
Type of business
A/S Latvijas Jūras medicīnas centrs (hereinafter – LJMC or the Company) is a certified and advanced
private medical facility available to everyone, which consists of Sarkandaugava Ambulatory
Healthcare Centre at 23 Patversmes iela, Riga; Central Hospital at 23 Patversmes iela, Riga;
Vecmilgravis Hospital and Northern Diagnostics Centre 26 Vecmilgravja 5.linija; Riga, and
Vecmīlgrāvis Primary Health Care Centre at 10 Melidas iela, Riga. In 2021, the average number of
employees at LJMC was 352. The shares of A/S Latvijas Jūras medicīnas centrs are traded on the
Baltic Secondary list of Nasdaq Riga.
As of 5 September 2013, A/S Latvijas Jūras medicīnas centrs has been included on the list of medical
facilities approved by the Health Inspectorate of Latvia, which provides medical tourism services,
namely, LJMC provides medical tourism services as a reliable partner and this provides an insight
into the overall Latvian health care system because the list only includes those healthcare institutions
which have been registered with the register of health care institutions for at least 3 years and control
has been carried out in the health care institution during the past three years.
LJMC has accredited Clinical Diagnostics Laboratory at 23 Patversmes iela with the Latvian National
Accreditation Bureau.
LJMC has signed cooperation agreements with all health insurance companies operating in Latvia.
LJMC has received certificate No. MSC-50-034 issued by Exova BM TRADA confirming compliance
of the energy management system with ISO 50001:2018.
Activities in the 12 months of 2021 and further development
The Company’s activities in the 12 months of 2021
In 2021, LJMC continued to provide high-quality medical services and attract new patients. Similar
to prior years, also in 2021 LJMC employed excellent doctors from Latvia and competent medical
personnel. Activities of highly qualified and professional personnel allowed LJMC to provide
examinations of competitive and exceptional quality and adherence to strict precautionary standards,
and personnel can ensure safe and accessible services for patients when providing health care
services. LJMC is on the official list of providers of medical tourism services maintained by the Health
Inspection of the Republic of Latvia. In 2021, LJMC published information in the catalogue “Health
Tourism in Latvia”, created and supported by LIDA.
During 2021, LJMC, when providing health care services, adapted flexibly to the normative
documents of the Ministry of Health, which imposed restrictions on preventing and overcoming the
spread of Covid-19. Both secondary ambulatory health care services and daily hospital services, as
well as paid health care services were provided to the extent permitted in the normative documents,
ensuring continuity of activity and the monitoring of the impact of new events and conditions.
In 2021, LJMC promoted paid health care services, ensuring increase in the number of patients living
in Latvia, promoting competitiveness and recognition of LJMC.
The Radiology Department in 2021 provided the full range of diagnostic services (magnetic
resonance, X-ray examinations and ultrasonography) increasing the amount and quality of services
(both state paid services and services paid by patients). PET/CT radiological examinations are
available and payable both by private means and state funds.
In order to ensure compliance with the requirements of GDPR in 2021, LJMC in cooperation with an
independent data protection inspector continued improvement of documents in compliance with the
laws and regulations, continued improvement of renewing the contracts (on the use of medical
facilities in digital form, use of medical information system, insurance company services,
communication services), and began the training process for LJMC staff.
In 2021, LJMC signed agreements with the National Health Service for the provision of state paid
medical services in the amount provided by the budget for 2021.
In 2021, LJMC continued working on ISO. In 2019, LJMC received ISO 9001:2015 quality certification
in functional diagnostics and radiological diagnostics, in-patient medical rehabilitation and day-care
rehabilitation valid until 14 March 2025, and continued updating the hygiene and disinfection plan,
and implementing ISO certification in other units of LJMC.
JSC Latvijas Jūras medicīnas centrs
Address: Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Management Report
6
Further development of the Company
To attract even more patients, in 2021 LJMC will by made investments to introduce innovative
solutions for providing medical services, improve the qualification of the staff and enhance patient
service. Also, LJMC will continue the state policy in re-profiling of hospitals to ambulatory healthcare
institutions, thus adding to the health care service offering. In 2022, the LJMC will continue to further
ensure compliance with precautionary standards in the provision of healthcare services, so that
cooperation between the patients and healthcare professionals could facilitate access to those
services.
Continuing to improve the available services with a highly qualified and professional diagnostic
service, the Radiology Department of LJMC, as one of the most modern and innovative cancer
diagnostic centres in Eastern Europe, will help to increase the flow of local and foreign patients when
a safe flow of patients is restored.
By attracting patients not only from Latvia and other Baltic countries, but also from other EU countries
and offering high-quality medical services, LJMC will increase its competitiveness in the Baltics
medical market.
Financial results
In the 12 months of 2021, LJMC operated in accordance with the budget approved for 2021. The
profit of LJMC is EUR 880 259.
Risk management
LJMC continues carrying out activities seeking to limit the negative impact of potential financial risks
on the financial position of LJMC by implementing a set of control and analysis measures. Financial
assets exposed to credit risk are mostly cash, trade receivables and other receivables. Credit risk is
managed by LJMC by performing regular debtor control procedures and debt collection measures
aiming to identify and solve any problems on a timely basis.
Liquidity risk is managed by LJMC in line with the principle of prudence ensuring that appropriate
credit resources are available to cover liabilities as they fall due. LJMC does not use loans, except
operating leases.
Subsequent events and going concern
No other significant subsequent events have occurred in the period from the year-end to the date of
these financial statements that would require adjustments to be made to these financial statements
and disclosures added to the notes thereto. The Russia-Ukraine war is not expected to have material
effect on the operations of the Company. The Company does not plan to enter into transactions with
Russia, Belarus and Ukraine.
Chairman of the Board
Jānis Birks
Member of the Board
Juris Imaks
Member of the Board
Anatolijs Ahmetovs
27 April 2022
JSC Latvijas Jūras medicīnas centrs
Address: Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Remuneration Report for 2021
7
Introduction
The remuneration report of Joint Stock Company “Latvijas Jūras medicīnas centrs” (hereinafter – the
Company) is prepared according to the remuneration policy to members of the Board and the Council
approved by the decision of the Company’s Shareholders Meeting of 30 November 2020, developed
on the basis of Directive (EU) 2017/828 of the European Parliament and of the Council of 17 May
2017 as regards the encouragement of long-term shareholder engagement, as well as according to
Article 59
3
of the Financial Instrument Market Law, which introduces the directive.
The remuneration report is prepared by the Board and reviewed by the Council of the Company. The
remuneration report is reviewed and approved by the Shareholders’ Meeting alongside other parts
of the annual report.
According to the Audit Services Law of the Republic of Latvia, a sworn auditor is under the obligation
to provide an opinion on whether the information referred to in Section 59.4 of the Financial
Instrument Market Law has been included in the remuneration report and whether significant non-
conformities have been established in the remuneration statement in relation to the financial
information indicated in the annual report.
The remuneration report is published concurrently with the audited annual report of the Company as
a separate part of the annual report in Latvian and English on the Company’s website: in section
“Remuneration report”, as well as on the Nasdaq Riga website: http://www.nasdaqbaltic.com.
Remuneration to the Board and Council
The remuneration policy of the Board and the Council ensures that in 2021 the Company’s strategy,
realization of long-term interests and sustainability, ensuring business continuity, is implemented.
Remuneration to the members of the Council consists only of fixed component of remuneration. In
2021, the following total remuneration was granted and paid to the members of the Council:
Name, surname
Position
Remuneration paid in 2021, EUR
Mārtiņš Birks
Chairman of the
Council
8 195.76
Ineta Gadzjus
Member of the
Council
4 780.92
Viesturs Šiliņš
Member of the
Council
4 780.92
Jevgēņijs Kalējs
Member of the
Council
4 780.92
Uldis Osis
Member of the
Council
4 780.92
In 2020, the total remuneration granted and paid to the members of the Supervisory Board of the
Company was as follows: EUR 27 319.44
Remuneration to the members of the Board consists of a fixed and variable component of
remuneration. In 2021, the following total remuneration was granted and paid to the members of the
Board:
Name, surname
Position
Remuneration paid
in 2021, EUR
Fixed part of
remuneration,
%
Variable part
of
remuneration,
%
Jānis Birks
Chairman of the
Board
67 445
30.45%
69.55%
Juris Imaks
Member of the
Board
59 028
31.7%
68.3%
Anatolijs
Ahmetovs
Member of the
Board
48 477
47.2%
52.8%
In 2020, the total remuneration granted and paid to the members of the Company's Board of Directors
was EUR 165 624.
JSC Latvijas Jūras medicīnas centrs
Address: Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Remuneration Report for 2021
8
Members of the Board and the Council did not receive remuneration from another company
belonging to the same group in the understanding of the Annual Reports and Consolidated Annual
Report Law.
Shares or share options were not granted and offered to members of the Board and the Council.
No variable part of remuneration was reclaimed from members of the Board and the Council.
There were no cases of applying temporary derogations from the remuneration policy.
Section 59
4
, paragraph one, point 3 of the Financial Instrument Market Law requires to report, in a
comparable manner, changes that took place in the last five financial years in remuneration paid to
members of the Board and the Council, performance of the company and average remuneration on
a full-time equivalent basis of employees of the company other than members of the Board and the
Council.
This is the second Remuneration Report prepared by the Company and it covers 2021. In
accordance with Paragraph 66 of the Transitional Provisions of the Financial Instrument Market Law,
a comparison of the changes referred to in Section 59
4
, paragraph one, Clause 3 of the Law is
provided for at least the period of the last five financial years beginning not later than 1 January 2020.
The Company has identified that there are no current annual changes relating to the period beginning
no later than 1 January 2020.
Remuneration to the Board and the Council has not changed significantly during the last 5 years,
performance of the company matches its strategic goals, average remuneration on a full-time
equivalent basis of employees of the company has increased in line with the overall trends of the
labour market.
Chairman of the Board
Jānis Birks
Member of the Board
Juris Imaks
Member of the Board
Anatolijs Ahmetovs
27 April 2022
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021
Address: Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Financial statements
Profit and Loss Statement for 2021
9
Note
31.12.2021
2020
EUR
EUR
1.
Net sales
2
9 363 852
7 080 939
2.
Cost of goods and services
3
(8 146 691)
(6 488 048)
3.
Gross profit
1 217 161
592 891
4.
Administrative expenses
4
(580 253)
(557 818)
5.
Other operating income
5
247 435
241 697
6.
Other operating expenses
6
(3 439)
(2 153)
7.
Profit before corporate income tax
880 904
274 617
8.
Corporate income tax for the reporting
year
7
(645)
(1 062)
9.
Profit for the reporting year
880 259
273 555
Number of shares
800 000
800 000
x
Earnings per share (EUR)*
1.10
0.34
* Profit or loss after corporate income tax / average number of shares during the reporting year.
The accompanying notes on pages 14 to 28 form an integral part of these financial statements.
Chairman of the Board
Jānis Birks
Member of the Board
Juris Imaks
Member of the Board
Anatolijs Ahmetovs
Chief Accountant
Gunta Kaufmane
27 April 2022
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021
Address: Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Balance Sheet as at 31 December 2021
10
Note
31.12.2021
31.12.2020
EUR
EUR
Assets
Long-term assets
I Fixed assets:
1. Land, buildings and engineering structures
4 919 770
4 440 002
2. Equipment and machinery
883 062
244 153
3. Other fixed assets
70 196
76 129
4. Construction in progress
70 407
359 779
Total fixed assets:
8
5 943 435
5 120 063
Total long term investments:
5 943 435
5 120 063
Current assets
I Stock:
1. Raw materials, primary materials and
auxiliary materials
9
156 517
138 556
Total stock:
156 517
138 556
II Receivables:
1. Trade receivables
10
102 008
57 794
2. Other receivables and advanced payments
11
600 254
21 767
3. Prepaid expenses
12
7 270
24 621
4. Accrued income
Prepaid expenses
Prepaid expenses
4. Prepaid expenses
13
429 311
216 782
Total receivables:
1 138 843
320 964
III Cash:
14
1 017 259
1 765 040
Total current assets:
2 312 619
2 224 560
Total assets
8 256 054
7 344 623
The accompanying notes on pages 14 to 28 form an integral part of these financial statements.
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021
Address: Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Balance Sheet as at 31 December 2021
11
Note
31.12.2021
31.12.2020
EUR
EUR
Equity and Liabilities
Shareholders’ equity:
1. Share capital
15
1 120 000
1 120 000
2. Long-term investment revaluation reserve
17
2 472 973
2 472 973
3. Reserves:
b) reserves according to Statutes
63 819
63 819
4. Retained earnings:
a) retained earnings brought forward from
previous years
16
1 803 462
1 585 907
b) profit for the reporting year
880 259
273 555
Total shareholders' equity:
6 340 513
5 516 254
Liabilities:
Long term liabilities:
1. Deferred income
20
628 654
669 617
Total long term liabilities:
628 654
669 617
Short-term liabilities:
1. Customer advances
34 057
1 831
2. Accounts payable to suppliers and contractors
303 198
387 250
3 Taxes and compulsory state social security
contributions
19
249 572
155 019
4. Other creditors
18
277 672
194 938
5. Deferred income
20
58 126
55 513
6. Accrued liabilities
21
364 262
364 201
Total short term liabilities:
1 286 887
1 158 752
Total liabilities:
1 915 541
1 828 369
Total equity and liabilities
8 256 054
7 344 623
The accompanying notes on pages 14 to 28 form an integral part of these financial statements.
Chairman of the Board
Jānis Birks
Member of the Board
Juris Imaks
Member of the Board
Anatolijs Ahmetovs
Chief Accountant
Gunta Kaufmane
27 April 2022
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021
Address: Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Statement of Changes to the Shareholders Equity for 2021
12
Share
capital
Long-term
investment
revaluation
reserve
Reserves
set in the
Company’s
statutes
Retained
earnings
brought
forward from
previous
years
Profit/
(loss) for
the
reporting
year
Total
shareholder's
equity
EUR
EUR
EUR
EUR
EUR
EUR
Balance as at 31
December 2019
1 120 000
2 292 360
63 819
1 861 747
164 160
5 502 086
Profit of 2019
transferred to
retained earnings of
previous years
-
-
-
164 160
(164 160)
-
Result of revaluation
in 2020 (see Note 18)
-
180 613
-
-
-
180 613
Profit for the reporting
year
Dividends for 2017
-
-
-
(440 000)
-
(440 000)
Profit for the reporting
year
-
-
-
-
273 555
273 555
Balance as at 31
December 2020
1 120 000
2 472 973
63 819
1 585 907
273 555
5 516 254
Profit of 2020
transferred to
retained earnings of
previous years
-
-
-
273 555
(273 555)
-
Dividends for 2017
-
-
-
(56 000)
-
(56 000)
Profit for the reporting
year
-
-
-
-
880 259
880 259
Balance as at 31
December 2021
1 120 000
2 472 973
63 819
1 803 462
880 259
6 340 513
The accompanying notes on pages 14 to 28 form an integral part of these financial statements.
Chairman of the Board
Jānis Birks
Member of the Board
Juris Imaks
Member of the Board
Anatolijs Ahmetovs
Chief Accountant
Gunta Kaufmane
27 April 2022
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021 Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Statement of Cash Flows for 2021
13
Note
2021
2020
EUR
EUR
I. Cash flows from operating activities
1. Profit before corporate income tax
880 904
274 617
Adjustments for:
a) impairment of fixed assets
8
286 644
234 829
2. Profit before adjustments for the effect of changes to
current assets and short-term liabilities
1 167 548
509 446
Adjustments for:
a) decrease/ (increase) in trade receivables
(817 879)
13 032
b) decrease/ (increase) in stock
(17 961)
(36 810)
c) increase/ (decrease) in accounts payable to
suppliers and other liabilities
87 591
247 037
3. Gross cash flows from operating activities
419 299
732 705
Corporate income tax
(1 064)
-
Net cash generated from operating activities
418 235
732 705
II. Cash flows from investing activities
a) purchase of fixed and intangible assets
8
(1 110 016)
(515 119)
6. Net cash flows used in investing activities
(1 110 016)
(515 119)
III. Cash flows from financing activities
a) Dividend paid
(56 000)
(440 000)
7. Net cash flows used in financing activities
(56 000)
(440 000)
Net increase/(decrease) in cash and cash
equivalents in the reporting year
(747 781)
(222 414)
Cash and cash equivalents at the beginning of the year
1 765 040
1 987 454
Cash and cash equivalents at the end of the year
15
1 017 259
1 765 040
The accompanying notes on pages 14 to 28 form an integral part of these financial statements.
Chairman of the Board
Jānis Birks
Member of the Board
Juris Imaks
Member of the Board
Anatolijs Ahmetovs
27 April 2022
Chief Accountant
Gunta Kaufmane
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021 Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Notes to the financial statements
14
(1) Information on the Company’s activities and summary of significant accounting
principles
Information on the Company
The legal address AS Latvijas Jūras medicīnas centrs (LJMC or the Company) is 23 Patversmes
iela, Riga, Latvia. The Company was registered with the Commercial Register under the common
registration number 40003306807. The largest shareholders of the Company are Ilze Birka (17.50%),
Mārtiņš Birks (17.50%), Jānis Birks (12.80%), Guna Švarcberga (10.36%), SIA POM (8.82%),
Adomas Navickas (6.85%).
The Board comprises Jānis Birks (Chairperson of the Board), Juris Imaks (Board Member) and
Anatolijs Ahmetovs (Board Member). The Chairperson of the Council is Mārtiņš Birks, Council
Members are Viesturs Šiliņš, Ineta Gadzjus, Jevgēņija Kalējs and Uldis Osis.
The core business of the Company according to NACE rev 2. is Hospital activities (NACE 86.10);
Retail sale of medical and orthopaedic goods in specialised stores (47.74); Education n.e.c. (85.59);
General medical practice activities (86.21); Special medical practice activities (86.22); Dental
practice activities (86.23); Other human health activities (86.90); Residential nursing care activities
(87.10); Other residential care activities (87.90); Other social work activities without accommodation
n.e.c. (88.99); Physical well-being activities (96.04); Other personal service activities n.e.c. (96.09).
Basis of preparation
The financial statements were prepared in accordance with the law ‘On Accounting’ and the ‘Annual
Reports and Consolidated Annual Report Law’ (hereinafter – the Law).
The management believes that the accounting policies used in the preparation of these financial
statements are largely consistent with those used last year.
According to Article 3(6) of the Annual Reports and Consolidated Annual Reports Law, the Company
applies the requirements of the law applicable to large companies as its transferable securities are
included in the regulated market of the Republic of Latvia.
The profit and loss statement was prepared according to the turnover costing method. The cash flow
statement was prepared according to the indirect method. The financial statements are prepared on
the historical cost basis except for fixed assets disclosed under Land, buildings and engineering
structures – land and buildings, which are measured using a revaluation method.
Accounting principles
The financial statements were prepared in accordance with the following policies:
a) Going concern assumption that the Company will continue as a going concern;
b) Consistent valuation principles with those used in the prior year;
c) Items were valued in accordance with the principle of prudence, i.e.:
▪ the financial statements reflect only the profit generated to the balance sheet date;
▪ all incurred liabilities and current or prior year losses have been taken into consideration
even if discovered within the period after the date of the balance sheet and preparation of
the financial statements;
▪ all amounts of impairment and depreciation have been taken into consideration irrespective
of whether the financial result was a profit or loss.
d) Income and expenses incurred during the reporting year have been taken into consideration
irrespective of the payment date or date when the invoice was issued or received; Expenses
were matched with revenue for the reporting period.
e) Assets and liabilities have been valued separately;
f) The opening balance agrees with the prior year closing balance.
g) All material items, which would influence the decision-making process of users of the
financial statements, have been recognised and insignificant items have been combined and
their details disclosed in the notes.
h) Business transactions are recorded taking into account their economic contents and
substance, not the legal form.
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021 Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Notes to the financial statements
15
Related parties
Related parties represent both legal entities and private individuals related to the company in
accordance with the following rules.
a) A person or a close member of that person’s family is related to a reporting entity if that
person:
i. has control or joint control over the reporting entity;
ii. has significant influence over the reporting entity; or
iii. is a member of the key management personnel of the reporting entity or of a parent of the
reporting entity.
b) An entity is related to a reporting entity if any of the following conditions applies:
i. The entity and the reporting entity are members of the same group (which means that each
parent, subsidiary and fellow subsidiary is related to the others);
ii. One entity is an associate or joint venture of the other entity (or an associate or joint venture
of a member of a group of which the other entity is a member);
iii. Both entities are joint ventures of the same third party;
iv. One entity is a joint venture of a third entity and the other entity is an associate of the third
entity;
v. The entity is a post-employment benefit plan for the benefit of employees of either the
reporting entity or an entity related to the reporting entity. If the reporting entity is itself such
a plan, the sponsoring employers are also related to the reporting entity.
vi. The entity is controlled, or jointly controlled by a person identified in (a);
vii. a person identified in (a)(i) has significant influence over the entity or is a member of the key
management personnel of the entity (or of a parent of the entity).
viii. The entity or any member of the group to which the entity belongs provides management
personnel services to the entity or the parent of company of the entity.
Related party transaction – a transfer of resources, services or obligations between a reporting entity
and a related party, regardless of whether a price is charged.
Financial instruments and financial risks
Financial instrument is an agreement that simultaneously results in financial assets of one party and
financial liabilities of the other party.
The key financial instruments held by the Company are financial assets such as trade receivables,
amounts due from related parties and other receivables, and financial liabilities such as prepayments
from clients, accounts payable to suppliers and contractors and other creditors arising directly from
its business activities.
Financial risks connected with the Company's financial instruments, financial risk management
Key financial risks related to the Company’s financial instruments are:
▪ Credit risk is the risk that the Company may incur financial losses if parties to the transactions
fail to fulfil their liabilities under the contracts, and credit risk is primarily connected with trade
receivables;
▪ Currency risk– risk that the Company may suffer unexpected losses arising from fluctuations
in the foreign exchange rates; the Company is not exposed to currency risk as it does not
significant amounts of currencies other than EUR.
▪ Interest rate risk – risk that the Company may incur losses due to fluctuations in interest
rates;
▪ Liquidity risk – risk that the Company will not be able to meet its financial liabilities in due
time.
Management has implemented procedures to control the key risks.
Credit risk
The inability of insurance companies and patients to pay for the services provided by the Company
in due time and in full amount. Most of the services are paid for within a short period of time after the
provision of services or are funded by state or insurance providers, so the credit risk is low.
Interest rate risk
Management believes that interest rate risk is not material.
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021 Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Notes to the financial statements
16
Liquidity risk
The Company has no external loans and it has significant financial resources to settle its liabilities.
Fair value of financial assets and liabilities
Fair value is the amount for which an asset could be exchanged, or a liability settled, between
knowledgeable, willing parties in an arm’s length transaction. Financial assets and financial liabilities
are carried at cost which according to management approximates their fair value at acquisition plus
any related additional expenses. Purchase costs are acquisition costs of goods or services (net of
discounts received) with added additional costs related to the purchase.
Reporting period
The reporting period comprises the 12 months from 1 January 2021 to 31 December 2021.
Currency unit and revaluation of foreign currency
All amounts in these financial statements are expressed in the official currency of Latvia – euro
(EUR), the functional currency of the Company.
Foreign currency transactions are translated into EUR according to currency exchange rates
effective at the date of transaction and determined by reconciliation of the system of the European
Central Bank and other central banks and which is published on the website of the European Central
Bank.
As at the reporting date, all monetary assets and liabilities are translated into EUR according to
exchange rates published on the website of the European Central bank. Non-monetary items of
assets and liabilities are revalued to euros in accordance with the reference exchange rate published
by the European Central Bank on the transaction date.
Exchange rate per EUR 1:
31.12.2021 31.12.2020
USD 1.13260 1.22710
Gain or loss resulting from payments under transactions executed in foreign currencies and the
translation of monetary assets and liabilities denominated in foreign currencies is reflected in the
profit and loss statement of the respective period.
Estimates and judgements
The preparation of financial statements requires the management to make judgements, estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets
and liabilities, income and expense. The actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Changes in
accounting estimates are recognized in the period when those estimates are reviewed and in the
future periods.
Key sources of estimation uncertainty are the following:
(i) Useful lives of fixed and intangible assets
Management estimates the useful lives of fixed and intangible assets in proportion to the expected
duration of use of the asset (its expected capacity or effectiveness) based on historical experience
with similar fixed assets and future plans. Land is not subject to depreciation. For other assets,
depreciation and amortization is calculated on a straight-line basis over the entire useful life of the
respective intangible asset and fixed asset in order to write their value or revalued value down to the
estimated book value at the end of the useful life based on the following rates:
%
Intangible assets
20
Buildings and constructions
2.5 - 2.85
Communication equipment and instruments
33.33
Other fixed assets
20
Current maintenance and repair costs of fixed assets are recognized in the profit and loss statement
as incurred.
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021 Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Notes to the financial statements
17
(ii) Fixed assets
Fixed assets other than land, buildings and constructions are carried at cost less accumulated
depreciation and impairment losses.
Land, buildings and constructions are measured by the Company using the revaluation model. The
balance sheet item Land, buildings and engineering structures of the financial statements of the
Company is presented at revalued value, which equals fair value at the revaluation date net of
subsequent accumulated deprecation and impairment loss.
Based on the Company’s position as at 31 December 2020, the Company has estimated the value
of the balance sheet item ‘Land, buildings and engineering structures’, and in accordance with the
estimation, has determined the carrying amount of all land, buildings and engineering structures in
line with market value and based on evaluation of external certified valuers. For more details on
revaluation please refer to Note 8.
According to the policy, revaluation of a single building or construction requires the whole category
to be revalued. To determine the impact of revaluation at the date of revaluation accrued depreciation
is netted of cost or other value, which replaces cost in the financial statements, and the carrying
amount is increased or decreased according to the revalued value of the building or structure in the
following manner: depreciation accrued to the date of revaluation is initially written-off of the current
carrying amount of fixed asset, and afterwards the residual value is increased or decreased
according to the fair value of fixed asset as a result of revaluation.
In case the fair value of fixed assets at the balance sheet date is lower than their carrying amount,
and such impairment is expected to be permanent, fixed assets are recognized at the lower value.
The revaluation result is recognized in the profit and loss statement except where a previously
recognized increase in the value of fixed assets offsets an impairment loss. In that event, the long
term investment revaluation reserve is decreased by the amount of impairment.
In case the value of fixed assets at the balance sheet date is higher than the valuation on the balance
sheet, fixed assets are revalued to the higher value if the increase in value may be assumed to be
other than temporary. The increase in value resulting from revaluation is recognized under ‘Long
term investment revaluation reserve’. If an increase in the value resulting from revaluation
compensates for the impairment of the same fixed asset which was previously recognized as an
expense in the profit and loss statement, then the increase resulting from revaluation is recognized
as income in the profit and loss statement as incurred. The long term investment revaluation reserve
is decreased when the revalued asset is disposed, is no longer utilized, or the increase of value is
no longer reasonable.
The increase in value recognized in the long term investment revaluation reserve under equity is
reversed by recognizing a decrease in the profit and loss statement upon liquidation or disposal of
the revalued fixed asset.
Receivables
Receivables are disclosed at amortised cost net of impairment allowances. Doubtful debt allowances
are recognized based on an individual management assessment of the recoverability of each
receivable when objective evidence exists that the Company will not be able to recover the full
amount of receivables according to the previously agreed repayment terms. The amount of
allowance represents the difference between the carrying and recoverable amount of receivables.
The allowance is charged to the profit and loss statement.
Provisions
Provisions are recognized when a past event has given rise to a present obligation or losses and the
amount can be estimated reasonably. The likelihood of loss is assessed based on management
assumptions. In order to determine the amount of loss management is required to select an
appropriate calculation method and make specific assumptions connected with the specific risk. No
provisions were made as at 31 December 2021.
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021 Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Notes to the financial statements
18
Revenue recognition
Income from sales of goods
Revenue from the sales of goods is recognized in the profit and loss statement after the risks and
rewards of ownership are transferred to the client.
No revenue is recognized if according to the provisions of the transaction the Company retains
significant risks pertaining to the ownership of goods and the goods can be returned.
Income from services
Income from services provided is recognized in the profit and loss statement as generated. Income
is received and recorded according to signed cooperation agreements.
Rental income
Rental income is recognised on a straight-line basis over the rental term.
Long and short term classification
Amounts with terms of receipt, payment or write off due in more than one year after the balance
sheet date are classified as long term. Amounts to be received, paid or written off within a year are
classified as short term.
Lease transactions
Operating lease – (the Company as a Lessor)
The Company leases premises, which are part of revalued fixed assets. Depreciation is calculated
on a straight-line basis over the entire useful life of the respective fixed asset in order to write its
value down to the estimated carrying amount at the end of the useful life based on the rates set for
similar fixed assets. Income from operating lease and client prepayments is charged to the profit and
loss statement on a straight-line basis over the period of lease.
Operating lease – (the Company as a lessee)
Payments for operating lease are recognized in the profit and loss statement on a straight-line basis
over the period of lease.
Fixed assets
All fixed assets other than land, buildings and constructions are recognised on the balance sheet at
historical cost less depreciation.
For other assets, depreciation and amortization is calculated in accordance with the straight-line
method over the entire useful life of the respective intangible assets and fixed assets in order to write
their value or revalued value down to the estimated book value at the end of the useful life.
The depreciation method is reviewed at least on an annual basis, at the year-end.
Subsequent expenses are added to the book value of the asset or recognized as a separate asset
only where it is highly probable that future benefits related to this item would flow into the company
and expenses of this item can be estimated reliably. Such expenses are written off over the entire
useful life of the respective asset. When capitalizing the costs of installed spare parts, the book value
of the spare parts is written off in the profit and loss statement.
Profit or loss from disposal of fixed assets is calculated as the difference between the carrying
amount of the asset and income generated from sale, and income from the reversal of the revaluation
reserve of the respective fixed asset, and charged to the profit and loss statement as incurred.
Accounting and valuation of stock
Stock is carried at the lower of cost and net realizable value. Stock has been valued according to the
FIFO method. Stock accounting is based on the perpetual method. Stock has been counted during
the annual stock take.
Remuneration
Remuneration is set according to employment contracts, taking into account the changing
requirements and trends of the labour market: by mutual agreement on the application of specific
principles: %, fixed numbers, individual conditions, combined conditions. Employees have access to
the procedure for calculating remuneration (data selection algorithms, data processing procedures,
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021 Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Notes to the financial statements
19
data flow organisation). The Company provides only short-term remuneration benefits to its
employees.
Grants
Grants received for special types of capital investments are treated as deferred income which is
gradually recognised as revenue over the useful life of the fixed assets received or acquired using
grants. Grants received to cover expenses are recognised in the same period when the related
expenses have arisen, if all the conditions of receiving the grant are met.
Corporate income tax
(a) Current tax
On 1 January 2018 the Law on Enterprise Income Tax of the Republic of Latvia entered into force
and set out a new regime for paying taxes. The tax rate is 20% from the taxable base determined by
dividing the value of the amount taxable with corporate income tax by coefficient 0.8, includes:
• distributed profit (dividends calculated, payments equivalent to dividends, conditional dividends),
and
• conditionally distributed profit (such as non-operating expenses and other specific cases provided
for by the law).
The new tax regime is not applicable to the distribution of dividends from profit accumulated to 31
December 2017 and taxed under the previous taxation regime.
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021 Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Notes to the financial statements
20
(2) Net sales
Net sales represents revenue generated during the reporting period from the Company’s basic
activities – sales of services, net of value added tax and discounts.
2021
2020
EUR
EUR
Ambulatory medical services
8 721 772
6 558 049
Services covered by insurance
642 080
522 890
Paid ambulatory medical services
359 565
290 726
Paid in-patient care
282 515
232 164
9 363 852
7 080 939
The Company provides services only in the territory of the Republic of Latvia.
The Company does not disclose information on distribution of net sales by lines of business in
accordance with Regulation No. 1893/2006 (EK) of the European Parliament and European Council
of 20 December 2006, with which the statistic classification of business activity NACE rev 2 is
established, as its disclosure could have a severe negative impact on the interests of the Company.
(3) Cost of goods and services
The item represents costs incurred for generating net sales – such as costs of goods and services
at acquisition cost, and costs related to purchase of goods and services.
2021
2020
EUR
EUR
Remuneration
4 409 742
3 244 861
Medicines, medical materials
864 355
757 676
Compulsory state social security contributions
997 841
750 079
Non-deductible value added tax
372 725
303 825
Lease of equipment
279 627
258 548
Depreciation
286 644
234 829
Utilities and maintenance
224 023
212 814
Office items and equipment, other materials
176 127
153 893
Repair costs
226 154
157 467
Medical examinations and other services
72 284
53 975
IT expenses
13 321
40 350
Advertisement expenses
630
635
Security
26 631
28 614
Changes in doubtful debt allowances
-
63 245
Medical fund risk expenses
13 129
13 531
Transport
17 365
8 873
Office expenses
10 790
7 658
Patient catering expenses
23 593
6 951
Real estate tax
6172
6 173
Insurance
12 494
11 929
Staff training expenses
1 818
1 085
Risk duty
1 445
1 341
Benefits and gifts to employees
1 849
7 973
Changes in cost of accrued vacations
25 098
80 257
Other costs related to services
82 834
81 466
8 146 691
6 488 048
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021 Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Notes to the financial statements
21
(4) Administrative expenses
2021
2020
EUR
EUR
Remuneration
416 643
395 692
Compulsory state social security contributions
95 395
90 942
Communication expenses
19 998
19 612
Audit of the financial statements
21 434
20 650
Office expenses
5 092
7 858
Bank services
10 783
9 597
Legal services
8 802
7 570
Representation expenses
603
1 113
Other
1 503
4 784
580 253
557 818
(5) Other operating income
2021
2020
EUR
EUR
Income from rent
170 490
135 708
Amortisation of funds received from EBRD
10 513
10 513
Other income – tax refund
-
7 165
Other income
66 432
88 311
247 435
241 697
Other income consists of income from catering and laundry service, advertising and beauty care
services.
(6) Other operating expenses
2021
2020
EUR
EUR
Penalties
1 142
974
Other expenses
2 297
1 179
3 439
2 153
(7) Corporate income tax
2021
EUR
2020
EUR
Current tax
645
1 062
645
1 062
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021 Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Notes to the financial statements
22
(8) Fixed assets
Land,
buildings
and
engineering
structures
Equipment and
machinery
Other fixed
assets
Intangible
assets
Construction
in progress
Total
EUR
EUR
EUR
EUR
EUR
EUR
Historical cost
31.12.2020
4 862 253
2 639 190
573 065
80 453
359 779
8 514 740
Additions
-
410 992
36 350
-
662 674
1 110 016
Transfers
596 426
355 620
-
-
(952 046)
-
Disposals
-
(29 837)
(17 325)
-
-
(47 162)
31.12.2021
5 458 679
3 375 965
592 090
80 453
70 407
9 577 594
Accumulated
depreciation and
amortisation
422 251
2 395 037
496 936
80 453
-
3 394 677
31.12.2020
Accumulated
depreciation and
amortisation for the
year
116 658
127 703
42 283
-
286 644
Depreciation of
disposed fixed
assets
-
(29 837)
(17 325)
-
(47 162)
31.12.2021
538 909
2 492 903
521 894
80 453
-
3 634 159
Balance as at
31.12.2019
4 370 610
176 891
107 499
-
4 159
4 659 159
Balance as at
31.12.2020
4 440 002
244 153
76 129
-
359 779
5 120 063
Balance as at
31.12.2021
4 919 770
883 062
70 196
-
70 407
5 943 435
In December 2020, land, buildings and constructions were valued by independent experts. The
valuation was carried out by the independent experts using a combination of the comparable
transactions method and income method.
A new revaluation was not performed on 31 December 2021, as the management assessed that no
significant changes had taken place in the market and the recognised carrying amount did not differ
materially from the fair value of the property.
The fair value of land and building was determined by an external, independent property valuer,
having appropriate recognised professional qualification and recent experience in the location and
category of the property being valued.
The following table shows the valuation technique used in measuring the fair value of core real estate
items included in position ‘Buildings and land’, as well as the significant unobservable inputs used:
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021 Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Notes to the financial statements
23
Type
Valuation method
Significant
unobservable data
Inter-relation between significant
unobservable inputs and fair value
measurement
Buildings and land
in the amount of
EUR 3 000 000 at
Patversmes iela,
Riga
Fair value has been
estimated based on the
average of:
Market comparison
technique: The fair value was
based on results of
comparable sales of similar
buildings.
Discounted cash flow
technique: The model is
based on discounted cash
flows from rendering services
Price per m2 EUR
452
Rent rate per m2 –
EUR 2.3-9
Capacity – 90%
Capitalisation rate –
9%
The fair value would increase
(decrease) if the price per m2 was
higher (lower).
The estimated fair value would
increase (decrease), if:
rent rate would be higher (lower);
capacity percentage would be higher
(lower);
capitalisation rate would be lower
(higher);
Buildings and land
in the amount of
EUR 850 000 at
Vecmīlgrāvja
5.līnija, Riga
Fair value has been
estimated based on the
average of:
Market comparison
technique: The fair value was
based on results of
comparable sales of similar
buildings.
Discounted cash flow
technique: The model is
based on discounted cash
flows from rendering services
Price per m2 EUR
327
Rent rate per m2
EUR 3.5-5
Capacity – 90%
Capitalisation rate –
9%
The fair value would increase
(decrease) if the price per m2 was
higher (lower).
The estimated fair value would
increase (decrease), if:
cent rate would be higher (lower);
capacity percentage would be higher
(lower);
capitalisation rate would be lower
(higher).
Type
Valuation method
Significant
unobservable data
Inter-relation between significant
unobservable inputs and fair value
measurement
Buildings and land
in the amount of
EUR 630 000 at
Melidas iela, Riga
Fair value has been
estimated based on the
average of:
Market comparison
technique: The fair value was
based on results of
comparable sales of similar
buildings.
Discounted cash flow
technique: The model is
based on discounted cash
flows from rendering services
Price per m2 EUR
315
Rent rate per m2
EUR 5
Capacity – 90%
Capitalisation rate –
9.0%
Fair value would increase (reduce), if
the price per m
2
was higher (lower).
The estimated fair value would
increase (decrease), if:
rent rate would be higher (lower);
capacity percentage would be higher
(lower);
capitalisation rate would be lower
(higher).
According to Section 52(2)(2) of the Annual Reports and Consolidated Annual Reports Law,
disclosures are provided concerning revalued fixed assets indicating their value had revaluation not
taken place:
Had revaluation not taken place, the carrying amount of land, buildings and constructions as at
31.12.2021 would be EUR 3 191 888.
Including:
31.12.2021
31.12.2020
EUR
EUR
-historical cost
4 617 716
4 021 290
-accumulated depreciation
(1 425 828)
(1 306 793)
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021 Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Notes to the financial statements
24
(9) Stock
31.12.2021
31.12.2020
EUR
EUR
Medicines in warehouse
121 308
124 285
Medicines in departments
20 639
13 888
Other materials
14 570
383
156 517
138 556
(10) Trade receivables
31.12.2021
31.12.2020
EUR
EUR
Insurance companies
66 802
36 017
Other institutions, companies and individuals
207 057
195 442
Doubtful debt allowance
(171 851)
(173 665)
102 008
57 794
(11) Other receivables
31.12.2021
31.12.2020
EUR
EUR
Overpaid taxes (see Note 20)
6
698
Value added tax on unpaid services
4 786
4 356
Prepayments for fixed assets
571 228
-
Other receivables
24 234
16 713
600 254
21 767
(12) Prepaid expenses
31.12.2021
31.12.2020
EUR
EUR
Rent
-
17 961
Insurance
6 866
6 416
Other
404
244
7 270
24 621
(13) Accrued income
31.12.2021
31.12.2020
EUR
EUR
Accrued income for invoices issued after the year end
429 311
216 782
429 311
216 782
‘Accrued income’ represents invoices from the National Health Service issued after the reporting
period.
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021 Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Notes to the financial statements
25
(14) Cash
By currency:
31.12.2021
31.12.2020
Currenc
y
EUR
Currenc
y
EUR
Current account
USD
5 840
5 156
5 839
4 758
Current account
EUR
-
1 004 291
-
1 756 643
Cash on hand
EUR
-
7 812
-
3 639
1 017 259
1 765 040
(15) Share capital
Share capital of the Company as at 31 December 2021 amounted to EUR 1 120 000 (31.12.2020:
EUR 1 120 000) and consisted of 800 000 shares with nominal value of EUR 1.40.
The share capital of the Company is owned by the following shareholders:
31.12.2021
31.12.2020
Number of
shares
Holding (%)
Number of
shares
Holding (%)
Ilze Birka
140 000
17.50%
140 000
17.50%
Mārtiņš Birks
140 000
17.50%
140 000
17.50%
SIA ‘POM’
70 565
8.82%
-
-
Ilze Aizsilniece
-
-
70 565
8,82%
Guna Švarcberga
82 917
10.36%
82 917
10.36%
Jānis Birks
102 388
12.80%
102 388
12.80%
Adomas Navickas
54 811
6.85%
54 811
6.85%
Other shareholders (up to
5% shares per each)
209 319
26.17%
209 319
26.17%
Total
800 000
100.00%
800 000
100.00%
Share capital (EUR)
1 120 000
1 120 000
All shares of the Company are name (publicly issued shares) shares.
(16) Retained earnings
Retained earnings, including profit for 2021 in the amount of EUR 2 683 721.
(17) Revaluation reserves
Revaluation reserve as at 31 December 2020 includes the result of revaluation of fixed assets. In
2021, the revaluation reserve was not changed.
Long-term investment revaluation reserve
2021
EUR
2020
EUR
Revaluation reserves as at 1 January
2 472 973
2 292 360
Appreciation as a result of revaluation
-
208 538
Decrease as a result of revaluation
-
(27 925)
Revaluation reserves as at 31 December
2 472 973
2 472 973
(18) Other liabilities
31.12.2021
31.12.2020
EUR
EUR
Salaries
277 050
194 505
Payments to the trade union
622
433
277 672
194 938
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021 Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Notes to the financial statements
26
(19) Taxes and compulsory state social security contributions
Balance as at
31.12.2020
Calculated for
2021
Paid in 2021
Balance as at
31.12.2021
EUR
EUR
EUR
EUR
Corporate income tax
568
645
(1 064)
149
VAT
4 060
189 558
(175 931)
17 687
Real estate tax
(6)
6 172
(6 172)
(6)
Natural resources tax
(692)
4 713
(60)
3 961
Risk duty
111
1 445
(1 437)
119
Social contributions
93 581
1 624 712
(1 569 364)
148 929
Personal income tax
56 699
871 884
(849 856)
78 727
Total
154 321
2 699 129
(2 603 884)
249 566
Including:
Overpaid taxes
(698)
(6)
Tax liabilities
155 019
249 572
Overpaid taxes are disclosed under ‘Other receivables’.
(20) Deferred income
31.12.2021
31.12.2020
EUR
EUR
The part of capital grants to be charged to profit or loss within
1 to 5 years
58 126
55 513
The part of capital grants to be charged to profit or loss for
more than 5 years
320 655
332 854
Lease payment of 10 years
236 250
281 250
The part of capital grants to be charged to profit or loss for
more than 5 years
13 623
-
Deferred income, long term
628 654
669 617
The part of capital grants to be charged to profit or loss within
one year
10 929
10 513
Lease payment of 10 years
45 000
45 000
The part of capital grants to be charged to profit or loss within
one year
2 197
-
Deferred income, short term
58 126
55 513
In 2012, the Company received EBRD funding to purchase fixed assets. In 2021, the Company
recognised revenue of EUR 10 513 (2020: EUR 10 513) (see Note 5).
In 2021, the Company received EBRD funding to purchase fixed assets. In 2021, the Company
received funding from CFCA for the purchase of fixed assets in the amount of EUR 17 578
(agreement No. 9.3.2.0/20/a/074). The Company started to revenue recognition in 2022.
The Company received lease payments for the next 10 years amounting to EUR 450 000. In 2021,
the Company recognised revenue of EUR 45 000 (2020: EUR 45 000) according to the terms of
lease agreements that secured lease rights for a specified period and promoted operating activities
in line with the specific classification. Revenue is reflected under ‘Income from rent’, refer to Note 5.
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021 Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Notes to the financial statements
27
(21) Accrued liabilities
31.12.2021
31.12.2020
EUR
EUR
Accrued expenses for unused vacations
364 262
339 164
Accrued liabilities to suppliers
-
25 037
364 262
364 201
(22) Average number of employees by category
2021
2020
Average number of employees in the reporting year:
352
330
incl. Members of the Board
3
3
Members of the Council
5
5
Other employees
344
322
(23) Personnel expenses
Type of costs
2021
EUR
2020
EUR
Remuneration
4 826 385
3 640 553
Compulsory state social security contributions
1 093 236
841 021
5 919 621
4 481 574
(24) Remuneration to management
2021
2020
EUR
EUR
Members of the Board
remuneration (variable and fixed)
174 950
165 624
· compulsory state social security contributions
39 369
39 899
Members of the Council
remuneration
27 319
27 319
· compulsory state social security contributions
6 040
6 182
Other members of the administration
remuneration
214 374
262 812
· compulsory state social security contributions
49 986
60 301
512 038
562 137
(25) Future liabilities
As at 31 December 2021, the Company has no effective future payment liabilities under agreements
related to the purchase of fixed assets (31.12.2020: none).
The management has no information on issued guarantees, legal proceedings and other contingent
liabilities, which could impact the financial position of the Company as at 31 December 2021
(31.12.2020: none).
(26) Related party transactions
In 2021, the Company issued invoices to SIA Kodolmedicīnas klīnika for rent payments in the amount
of EUR 17 864 (2020: EUR 32 560). In 2021, additional provisions were not accrued (2020: EUR
58 821). The outstanding amount of the credit line as at 31 December 2021 is EUR 163 863 (31
December 2020: EUR 163 863). Since December 2021, SIA Kodolmedicīnas klīnika ir not
considered as a related company. The provisions are made as at 31.12.2020 to reduce the impact
of transaction risk in the profit and loss statement.
JSC Latvijas Jūras medicīnas centrs Financial statements for the 12-month
period of 2021 Patversmes iela 23, Riga, LV-1005
Unified registration number: 40003306807
Notes to the financial statements
28
(27) Remuneration to the certified auditor
2021
2020
EUR
EUR
Audit of the financial statements
20 386
20 650
20 386
20 650
(28) Information on operating lease and rent agreements with a significant impact on the
Company’s activities
The Company has 11 effective operating lease agreements regarding equipment. Under these
agreements, lease payments, including VAT, are the following:
In 2020 EUR 386 090
In 2021 EUR 299 530
From 2022 to 2025 EUR 119 281
(29) Subsequent events
No significant subsequent events have occurred in the period from the year-end to the date of these
financial statements that would require adjustments to be made to these financial statements or
disclosures added within the financial statements. The Russia-Ukraine war is not expected to have
material effect on the operations of the Company. The Company does not plan to enter into
transactions with Russia, Belarus and Ukraine.
Chairman of the Board
Jānis Birks
Member of the Board
Juris Imaks
Member of the Board
Anatolijs Ahmetovs
27 April 2022
Chief Accountant
Gunta Kaufmane