AS “R
ĪGAS KUĢU BŪVĒTAVA
”
Not audited
Interim report
for a period 01.01.2023 - 30.06.2023
Riga, 2023
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
2
Content
Page
Information about the company3
Management Report4
Statement on Management Liability7
Profit or Loss Statement8
Balance Sheet9
Statement of Changes in Equity11
Cash Flow Statement12
Annexes13
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
3
Information about the company
Name of the company
Rīgas kuģu būvētava
Legal status of the company
Joint Stock Company
Registration Number, venue and date
40003045892, Riga, 5 December 1991
Registered with the Commercial Register
26 August 2004, Riga
Address
Gāles iela 2, Riga, LV-1015
Main types of operations of the company
Lease and management of own or leased real
estate, NACE2 68.20
Building of ships and floating structures, NACE2 30.11
Management Board
Member of the
Management
Board
Member of the
Management
Board
Einārs Buks, holding the position from 18.08.2017, right
of representation jointly with one Board Member
Deniss Parfens, holding the position from
07.01.2021, right of representation jointly with
one Board Member
Supervisory Board
As from 30.06.2022.
Chairman of the Supervisory Board
Chairman of the Supervisory Board:
Member of the Supervisory Board:
Member of the Supervisory Board
Member of the Supervisory Board
Vasilijs Meļņiks Deputy
Aleksandrs Čerņavskis
Irina Meļņika
Gahramans Guseinovs
Ainārs Tropiņš
Report prepared by
Chief Accountant Ināra Tužilova
Report period
Preceding report period
01 January – 30 June 2023
01 January – 30 June 2022
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
4
AS “Rīgas kuģu būvētava”
Management Report
To Interim Report 2023
About the company
AS “Rīgas kuģu būvētava”, hereinafter - the Company, is operating and
performing manufacturing processes in compliance with the international
quality management standards ISO 9001:2015, ISO 14001:2015 and ISO
45001:2018.
Operational financial
results and the financial
condition
In 6 months of 2023 the total net turnover of the Company amounted to
933,925 EUR, where in comparison, in 6 months of year 2022 the total net
turnover amounted to 740,776 EUR.
The Company has closed the report period with a loss of 455,853 EUR (the
gross loss during the six months of 2022 was 130,116 EUR accordingly),
however, during six months of 2023 the net loss amounted to 110,571 EUR
(during six months of 2022 there was net profit of 1,986,219 EUR.
As the market situation changed in 2022, the demand for use of the assets
owned and leased by the Company has increased, therefore in 2023 the
Company focused its operations on management and leasing of the its own
and leased real estate (NACE2 68.20).
The total assets of the Company have not substantially changed during the
reporting period compared to the beginning of the year.
Profitability analysis – profitability ratios analyse the efficiency of the
Company’s management decisions in fulfilling financial tasks, where the
optimum profitability ratio should be positive, and the higher the ratio, the
better the profitability:
30.06.202330.06.2022
Gross profit ratio (gross profit/net sales)
(48.8)%(17.5)%
Gross profit ratio shows the relationship between net sales and direct costs.
Companies use this indicator to calculate the extent to which changes in net
turnover affect gross margin.
Net Profit Margin (net profit / net turnover of the report period)
(11.8)%258%
The Company uses this indicator to determine its ability to generate profit.
Return on equity (profit of the reporting period / shareholders’ equity) (6)%
62.5%
Return on equity shows how effectively the capital invested by the owners of
the Company is used. The company uses this indicator to determine how much a
potential investor will earn from each euro invested.
Return on assets (profit of the reporting period / total assets)
(1.4)%20.6%
The Company uses this indicator to calculate the percentage of profit a
company earns in relation to its overall resources.
The negative gross profit index is the consequence of transition of the
Company to other types of economic operations
. Shipbuilding and repair
services were no longer provided in 2023, and during the reporting period the
Company had substantial costs of maintenance and improvement of the
infrastructure. By selling the biggest asset of the economic operation, in
particular, the floating docks which were previously used for provision of ship
repair services, the Company was able to close the reporting period withprofit.
There is the potential to use owners equity and also the Company assets in a
much more profitable way by transferring to other types of economic
operation, for example, lease and maintenance of own infrastructure.
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
Capital structure analysis - capital structure ratios show capital structure of
the Company and how much additional liabilities the Company is able to
assume.
Liquidity analysis — liquidity ratios represents the Company’s short-term
financial ratios and liquidity and indicate whether Company’s current assets
will be sufficient to meet the Company’s obligations when they become due.
Substantial risks and
unclear circumstances
Further development of the
Company and events after
the end of the reporting
period
The equity capital of the Company as on 30 June 2023 has decreased and at the
moment of preparation of the interim report it amounts to 1,823,776 EUR, while
on 30 June 2022 it was 3,177,866 EUR.
Since the moment of approval of the plan of measures of the legal protection
proceedings until preparation of the interim report, the plan of the measures of
the legal protection proceedings has been amended several time, the last
amendments were approved on 01 November 2022 by adjusting the planned
revenue and expenditure of the Company, as well as the schedule of covering
creditors’ claims without changing the total amounts of liabilities to be
5
30.06.202330.06.2022
Current Ratio (current assets / current liabilities)
1.351.36
The Company uses this indicator to calculate the extent to which current assets
of the Company are able to meet current liabilities.
Analysis of the indices of the last two years reveal that the liquidity of the
Company has improved during the reporting period, as, in compliance with
amendments of LPP (Legal protection proceedings), a schedule of covering
creditors’ claims which is more suitable to the Company cash flow has been
approved. Expansion of the Company operations can be expected in future
periods, improving the possibilities of the Company to cover its current
liabilities from current assets.
The major risks of the Company are the market risk and the liquidity risk. The
Company management is trying to minimise the potential negative impact of
financial risks upon the Company’s financial position. The Company follows
the cautious liquidity risk management by securing access to relevant credit
resources for performing its liabilities within the set terms. According to the
owner’s strategy, the Company has to provide a positive operational cash flow.
30.06.202330.06.2022
Assets-to-equity ratio (total assets / equity)
4.183.02
The Company uses this indicator to determine the proportion of cash invested
by the Company’s owners to the Company’s assets. The higher the proportion of
the equity the more stable the finance structure of the Company is.
Debt-to-equity ratio (total liabilities/ shareholders’ equity)
2.996.78
The Company uses this indicator to determine the extent to which the
Company is dependent on borrowed capital. A high index means that the
Company is extensively using borrowed capital, which causes additional costs
to the Company in the form of interest payments.
Total-debt-to-total-assets ratio (total liabilities / total assets)
0.760.67
The Company uses this indicator to determine relationship between the
Company’s long-term and short-term liabilities and total assets.
Following the sale of floating docks, the value of assets of the Company has
considerably decreased, which has caused decrease of the assets-to-equity
ratio. Sale of fixed assets has provided the opportunity to cove a major part of
liabilities, thus reducing dependence of the Company on borrowed capital.
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
6
covered. The further operation of the Company depends on the ability of the
Company to implement the legal protection plan and to settle liabilities to its
creditors within the defined terms by complying with all the conditions of the
plan.
The Company attests that the amendments to the plan of measures of the LPP
prepared by it and approved by the court will allow maintaining the current
profile of operations and indicate that the financial liabilities to both secured
creditors and unsecured creditors will be satisfied within sixty months as from
the moment of approval of the plan of measures of the LPP, i.e. until year
2024.
In 2023 and until the preparation of the interim report the Company has been
able to fulfil its liabilities according to the plan of measures of LPP. The
further operation of the Company depends on the ability of the Company to
implement the legal protection plan and to settle liabilities to its creditors
within the defined terms by complying with all the conditions of the plan. The
Company continuous implementation of measures in the area of process
efficiency and costs optimisation, at the same time looking for solutions for
expanding the Company operations resulting in preparation of the Company
forecasts and operational financial operation results envisaging profit.
Although the Company has clear perspective of restoring its operations, it is
also known that the time will be needed for optimising its staffing, restoring
the flow of the current assets, diversifying production and attracting
investment.
This conclusion is basedon the information available at the momentof signing
the present financial statement, and the impact of further events on the future
operation of the Company may differ from the management’s assessment.
It is also planned to continue employment legal relationship with the current
employees of the Company in compliance with concluded employment
agreements and it is not planned to change the location of the Company.
The conflict in Ukraine and related events take place during the time of
substantial global economic uncertainty and instability, in the result their
consequences may amplify the general impact on the market conditions. The
Company management has not identified direct effect of the above events to
further economic activity of the Company.
During the reporting period there have not been any major or extraordinary
circumstances which would affect the results and the financial position of the
Company.
Research and development
measures
During the interim report period the Company has not performed any research
and development measures.
Company shares
During the interim report period the Company has not repurchased or sold its
shares.
The Company does not have representation offices or subsidiaries abroad.
Board Member
Einārs Buks
Board Member
Deniss Parfens
Company subsidiaries and
representative offices
abroad
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
.
7
Statement on Management Liability
The Company management is responsible for preparation of the financial statement
The management of the Company hereby confirms that, based on the information available at the moment of preparation of the
report, the financial statements provide a true and clear presentation of the financial position of the Company as of 30 June 2023
and its performance and cash flow according to all the substantial aspects. The management confirms that appropriate
accounting policies have been used and applied consistently, and reasonable and prudent conclusions and estimates have been
made in the preparation of the financial statements.
The management of the Company also confirms that the above financial statements have been prepared in compliance with the
requirements of the laws and regulations of the Republic of Latvia, and the management has applied a going concern
principle.
The Company management attests that, in preparation of the interim report, it has followed the same principles of recognition
and evaluation of items as in preparation of the annual report.
The management of the Company is also responsible for keeping proper accounting records, for safeguarding the assets of the
Company and detection and prevention of fraud and other irregularities.
On behalf of the Company management:
Board Member
Einārs Buks
Board Member
Deniss Parfens
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
8
PROFIT OR LOSS STATEMENT
Annexes
30.06.2023
Eur
Net turnover
27
from other types of core activities
Production costs of sold products, purchase costs of
sold goods or provided services
28
933,925
933,925
(1,389,778)
30.06.2023
Eur
740,776
740,776
(870,892)
Gross profit or loss
Administration costs
Other revenue of economic operations
Other costs of economic operations
Other interest income and similar revenue
29
30
31
32
from other entities
33
Interest payments and similar expenses
to other entities
Profit or loss before the corporate income tax
Corporate income tax for the report period
(455,853)
(114,268)
468,660
(7,804)
2645
2645
(3951)
(3951)
(110,571)
(130,116)
(98,321)
5,250,000
(2,975,279)
4313
4313
(64,378)
(64,378)
1,986,219
Report period profit or loss(110,571)
1,986,219
Annexes from page 13 to page 31 are an integral part of these financial statements.
Board Member
Einārs Buks
Board Member
Deniss Parfens
Report prepared by
Chief Accountant
Ināra Tužilova
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
9
BALANCE SHEET
ASSETS
Annexes
30.06.2023
30.06.2022
Eur
Eur
Long-term investment
II Fixed assets
Real estate
3,504,074
3,504,074
206,425
145,108
891,884
3,504,296
-
land plots, buildings and engineering constructions
Other fixed assets and inventory
Creation of fixed assets and
costs of unfinished construction
Advance payments for fixed assets
Total fixed assets
6664
3,862,271
-
4,396,180
III Long-term financial investment
Other securities and investment
Other loans and other long-term debtors
Total long-term financial investment
38
39
36 -39
235
1,470,000
1,470,235
235
2,153,790
2,154,025
Total long-term investment5,332 5066,550,205
Current assets
I Inventories
Raw materials, core materials and auxiliary materials
Advance payments for reserves
Total provisions
40 45,910
87,483
133,393
107,525
108,269
215,794
II Receivables
Trade receivables
Other receivables
Costs of future periods
Accrued revenue
Total receivables
41 302,895
42 1,722,000
43 167
105,591
2,130,653
913,669
898,251
79,175
3900
1,894,995
IV Cash
4428,342
944,300
Total current assets
2,292 388
3,055,089
Total Assets
7,624,894
9,605,294
Annexes from page 13 to page 31 are an integral part of these financial statements.
Board Member
Einārs Buks
Board Member
Report prepared by
Chief Accountant
Deniss Parfens
Ināra Tužilova
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
10
BALANCE SHEET
LIABILITIES
Annexes
Owners equity
Share capital (fixed capital)
30.06.2023
Eur
30.06.2022
Eur
Long-term investment revaluation reserve
45
35
16,340,950
21,573
16,340,950
237,921
266,962
266,962
Reserves:
Other reserves
Retained profit
Undistributed profit or uncovered loss of the preceding years
Report period retained profit or loss
Total retained profit
(14,695,138)
(110,571)
14,805,709
(15,654,186)
1,986,219
13,667,967
Total equity capital
1,823 776
3,177,866
18
Provisions
Other provisions
Total provisions
-
-
58,781
58,781
Accounts payable
46
47
49
I Long-term creditors
Other loans
Trade payables
Revenue of future periods
Total long-term creditors
2,700,871
1,001,065
413,400
4,115 336
2,443,594
1,187,671
487,937
4,119,202
46
47
48
49
50
51
II Short-term creditors
Other loans
Advances from customers
Trade payables
Taxes and social insurance contributions
Other accounts payable
Revenue of future periods
Unpaid dividends
Accrued liabilities
Total short-term accounts payable
93,939
229,701
705,281
319,845
10,723
157,669
11,746
156,878
1,685 782
422,772
12,431
901,995
558,599
175,038
77,661
11,746
89,203
2,249,445
Total creditors
5,801 118
6,427,428
Total liabilities
7,624 894
9,605 294
Annexes from page 13 to page 31 are an integral part of these financial statements.
Board Member
Einārs Buks
Board Member
Deniss Parfens
Report prepared by
Chief Accountant
Ināra Tužilova
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
11
Reports on changes in equity for the period ended on 30 June 2023
Types of changes
Share capital
Reserves
Total
Retained
profit
Eur
Long-term
Investment
reevaluation
reserve
Eur
Eur
Eur
Eur
Balance as on 31.12.2021
16,340,950
243,228
266,962
(15,701,860
)
1,143 973
Loss of the report period
-
-
-
1,006,722
1,006,722
Reduction in the reporting
period
-
(216,348)
-
-
(216,348)
Balance as on 31.12.2022
16,340,950
21,573
266,962
1,934 347
Profit of the reporting period
(110,571)
-
-
-
(14,695,138
)
(110,571)
Reduction in the reporting
period
-
-
-
Balance as on 30.06.2023
16,340,950
21,573
266,962
14,805,709
1,823 776
Annexes from page 13 to page 31 are an integral part of these financial statements.
Board Member
Einārs Buks
Board Member
Deniss Parfens
Report prepared by
Chief Accountant
Ināra Tužilova
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
12
Cash flow report for
30.06.2023
Eur
Cash flow from operating activities
Revenue from the sale of goods and provision of services
1,395,186
30.06.2022
Eur
2,126,212
(1,494,900)
Payments to suppliers, employees, other principal operations
expenses
(1,640,412)
Other revenue or expenditure of the principal operations of the Company
Gross cash flow from principal operations
Net cash flow from principal operations
(99,714)
(99,714)
485,800
485,800
Investment operations cash flow
Purchase of fixed assets and intangible investment
Revenue from sale of fixed assets and intangible investment
272,000
(56,706)
789,587
Issued loans
Revenue from repayment of loans
Investment operations net cash flow
16,000
288,000
732,881
Financing operations cash flow
Received loans
Expenses for repayment of loans
Financing operations net cash flow
-
(252,000)
(252,000)
(283,335)
(283,335)
Net cash flow of the reporting period
(63,714)
935,346
Cash and its equivalents in the beginning of the reporting period
92,056
8,954
Cash and its equivalents at the end of the reporting period
28,342
Annexes from page 13 to page 31 are an integral part of these financial statements.
944,300
Board Member
Einārs Buks
Board Member
Deniss Parfens
Report prepared by
Chief Accountant
Ināra Tužilova
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
Annexes to the Financial Statement
1) Information provided by the Company
Average number of employees
30.06.2023
39
30.06.2022
38
Number of employees during the report period
including
Board Members
Members of the Council
Other employees
2
5
32
2
5
31
Personnel costs
Work remuneration
State social insurance costs
30.06.2023
Eur
240,424
55,125
295,549
30.06.2022
Eur
384,939
88,825
473,764
Remuneration for performance of functions
Board Members
incl. Work remuneration
State social insurance costs
30.06.2023
Eur
29,714
24,042
5672
30.06.2022
Eur
43.058
34,839
8219
To Members of the Council
incl. Work remuneration
State social insurance costs
26,742
21,638
5104
58,677
47,477
11,200
Summary of major accounting principles
2) General principles
The financial statements of the company have been prepared in compliance with the Laws of the Republic of Latvia
"Accounting Law", "On Annual Reports and ConsolidatedReports", Cabinet Regulation No. 775 (22 December 2015)
"Regulation on Application of the Law Annual Reports and Consolidated Reports".
The Balance Sheet, the Profit or Loss Statement, the Cash Flow Statement and the Report on Change of Equity is
prepared on the basis of the scheme defined by the relevant Annexes of the Law "On Annual Reports and
Consolidated Reports". The Profit or Loss Statement has been prepared in compliance with the method of the
function of expenses.
The Cash Flow Report has been prepared according to the direct method.
The Financial Statement uses the national currency of the Republic of Latvia euro (EUR).
The financial statement provides a true and clear presentation of the Company’s assets, liabilities, financial
conditions and profit or loss and cash flow.
The financial statement was prepared in compliance with the following general principles:
it is assumed that the Company will continue its activities (a going concern basis);
the same accounting policy and valuation methods are used as in the previous report period have been
applied;
the items of the financial statement are recognised and evaluated by using the principle of caution, in
particular, taking into account the following conditions:
a) the financial statement only includes the profit obtained until the date of the Balance Sheet;
b) all liabilities, as well as foreseeable risk amounts and losses occurred during the report period or preceding
years are considered, including when they were revealed during the period between the date of the Balance
Sheet and the day when the report was signed by the management, the authorised personor the management
body,
13
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
Annexes to the Financial Statement
14
c)all the amounts of reduction of the value and depreciation have been assessed and taken into account
irrespective of whether the report period has been closed with the profit or loss;
amounts are presented in the items of the Balance Sheet and the Profit or Loss Statement according to the
principle of accrual, in particular, revenue and expenses are presented considering the time of incurring them
and not the time of receipt or spending of money. Revenue and expenses related to the report period are
presented irrespective of the date of receipt of a payment or invoice;
costs are aligned with revenue within relevant report periods;
assets and liabilities items of the Balance Sheet are evaluated separately;
any set-off between assets and liabilities of the Balance Sheet or revenue and expenditure items of the Profit
or Loss Statement is prohibited,
it a long-term investment item is excluded or liquidated, also the revenue and costs related to excluding the
relevant item are mutually set-off. The net value, i.e.
the profit or loss of alienation of long-term investment items assessed as the difference between the Balance
Sheet value of the excluded item and revenue and expenses of its alienation or liquidation is presented in the
Profit or Loss Statement, upon the condition that gross amounts are presented in the Annex to the financial
statement;
amounts are presented in the assessment items of the Balance Sheet and the Profit or Loss Statement taking
into account the content and substance of economic transactions instead of their legal form only;
the items of the Balance Sheet and the Profit or Loss Statement are assessed based on their acquisition costs or
production costs. The acquisition costs are the price of purchase of a good or a service (by deducting received
discounts), to which the additional expenses are added. Production costs comprise the costs of acquisition of
raw materials, core materials and auxiliary materials and other expenses which are directly related to
production of the relevant item. The production costs may include also portions of the costs which are indirectly
related to the production of the item, if these costs can be related to the same time period.
The relevant items of the Balance Sheet, the Profit or Loss Statement, the Cash Flow Statement and the Statement of
Changes in Equity contain important financial information which has a considerable impact on the assessment or
decision making of the users of the report. Minor amounts which do not considerably affect the assessment or decision
making of the users of the report are presented in the above components of the financial statement under the summary
items of similar financial information, the details of these amount are presented below in the Annex to the financial
statement.
3) Use of estimations
In preparing the financial statements the Board of the Company has made several estimations and assumptions which
affect the balance of some of the items of the Balance Sheet and the Profit or Loss Statement included in the financial
statements and the amount of eventual liabilities. Future events may affect the above estimations and assumptions.
Any impact of the change of such estimations and assumptions on the performance of the Company are presented in
financial statements upon establishing it.
Use of estimations and major assumptions
The legislation of the Republic of Latvia provides that, in preparing financial statements, the Company management
makes estimations and assumption which affect the assets and liabilities presented in the statement and out of the
Balance Sheet on the day of preparation of the financial statement and the presented revenue and expenses of the
report period. Actual results may differ from such estimations.
The major assumptions and estimations regarding the future, as well as the most important causes of uncertainty on the
Balance Sheet date causing a substantial risk that major adjustments of the net accounting values of the Balance Sheet
assets or liabilities could be done during the next report period, are presented below.
Provisions for doubtful and bad debts
The Company management assesses the accounting value of receivables and evaluates their recovery potential by
making provisions for doubtful and bad debts if necessary.
Net sales value of inventories
The Company management evaluates the net sales value of inventories based on the information regarding the
expected prices and sales costs, as well as evaluates the physical condition of inventories during the annual inventory
review. In cases when the sales value of inventories is below the costs of inventories, provisions are made for
inventories.
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
15
Annexes to the Financial Statement
Terms of useful use of fixed assets
The terms of useful use of fixed assets are reviewed on each Balance Sheet date and. if necessary, they are modified
in order to reflect the current view of the Company management regarding the remaining effective term of use of
assets considering the technology change, the remaining economic term of use and the physical condition of assets.
Accounting value of fixed assets
The Company management evaluates the accounting value of fixed assets and assesses if there are any features
indicating that the recoverable amount of assets is below their accounting value. The Company management assesses
and recognises the loss from the decrease of the value of fixed assets on the basis of estimations regarding their future use,
alienation or sale.
Accounting value of issued loans
The Company management assesses the issued loans and evaluates their recovery potential by making provisions for
doubtful loans.
Accounting value of investment in related and associated companies
The Company management evaluates the accounting value of investment in the capital of related and associated
companies and assesses if there are any features indicating that the recoverable amount of these assets is below their
accounting value. The Company management assesses and recognises loss from the reduction of value of the
investment in the capital of related companies on the basis of the estimations of their future yield.
4) Recognition of revenue
Principal operations of the companyLease and management of own or leased real
The net turnover consists of the total amount of sold products and provided services during a year minus granted discounts
and the Value Added Tax.
Revenue is recognised in compliance with the following principles:
Revenue from sale of goods in Latvia is recognised when the buyer has accepted the goods. Revenue from
sale of goods outside Latvia is recognised according to the terms of supply of goods.
Revenue from provision of services is recognised according to the degree of completion of the relevant
transaction.
Revenue from penalties and late payment penalties are recognised at the moment of receipt.
Interest income is recognised on the basis of the proportional time split taking into account the actual
profitability of the asset.
Dividends are recognised at the moment when legal rights to them are obtained.
The royalties are recognised according to the accrual principle in compliance with the relevant agreement.
The other revenue of economic operations include various other revenue (for instance, the profit from alienation of
long-term investment items or from currency exchange rate fluctuations, revenue from received insurance
compensations, received financial aid or financial support), which is not directly related to the core operations of the
Company, but which has been received in the result of the economic operation or arise from it.
5) Principles of recognition of expenses
Costs are presented in the Profit or Loss Statement according to the accrual principle considering the time of incurring
them and not the time of spending money thereof. Expenses related to the report year are presented irrespective of the
date of receipt of a payment or invoice. Costs are aligned with revenue within relevant report periods.
6) d) Re-evaluation of foreign currencies in euro
All the transactions in foreign currencies are converted to euro according to the currency exchange rate applied in the
accounting in force in the beginning of the transaction date.
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
16
Annexes to the Financial Statement
7) Intangible investment
Intangible investment consists mainlyof the rightof use gained for payment, licences, patents, concessions and similar
rights. Intangible investment is evaluated based on their initial costs value by deducting accrued depreciation.
Depreciation is assessed according to the linear method by applying the annual depreciation rate of 20%. In a case of
exception, if the term of effective use of an item of intangible value of development costs cannot be reliably estimated,
their initial value is written off gradually by splitting it per years over a time period not exceeding 10 years (each such
case is explained in the annex to the financial statement by stating the duration of the term during which the initial
value of the relevant item is scheduled to be written off).
8) Fixed assets
Fixed assets are evaluated based on their initial costs value by deducting accrued depreciation. Depreciation is
assessed according to the linear method by applying the following depreciation rates set by the management on the
basis of the estimation of the effective term of use of fixed assets in relation to the following categorisation of the fixed
assets included in the financial accounting:
Item in the financial statement
Depreciation
rate %
Category in the financial
accounting
Buildings
1.5 - 12.5
Engineering constructions
1.5 - 12.5
1.43 - 25
Technological equipment the operation of
which changes the substance properties
Equipment and technical machinery
Furniture and office equipment
Computers and accessories
Cars
Tools and inventory
10 ; 12.5
10 ; 12.5
20
15 ; 20
8;10;12.5;15.20;50
Land plots, buildings and
engineering constructions
Land plots, buildings and
engineering constructions
Technological equipment and
machinery
Other fixed assets
Other fixed assets
Other fixed assets
Other fixed assets
Other fixed assets
Estimated remaining values and periods of effective use of assets are reviewed and adjusted as necessary on each
reporting date.
The Company capitalises fixed assets the value of which exceeds EUR 150 and the term of effective use of which
exceeds 1 year. Depreciation of improvements and other inventory whose value does not exceed EUR 150, is
calculated as 100% following their commissioning.
The costs of the current repair and maintenance of fixed assets are included in the Profit or Loss Statement of the
period when they were incurred.
The recognition of the accounting value of the items of fixed assets is discontinued when it is alienated or if no
economic benefit is expected from further use of the asset.
9) Re-evaluation of long-term investment
By deviating from the provisions of the Law "On Annual Reports and Consolidated Reports", the items of fixed assets
whose value considerably exceeds their acquisition costs or production costs, or their evaluation on the Balance Sheet of
the preceding year, can be re-evaluated according a higher value if it can be assumed that the value increase will be
long-term. However, when on the date of the Balance Sheet it is established that there is major and long-term
decrease of the value of fixed assets resulting in the recoverable value being below the accountingvalue on the Balance
Sheet, the Company recognises reduction of the value of assets which is written off as expenses of the reporting period
when it was established. If there are no longer basis for reduction of the value of fixed assets, their evaluation
according to their lowest value is discontinued by recognising the amount written off as expense when the reduction of
the value was established as revenue.
The difference resulting from the re-evaluation between the evaluation according to the acquisition costs or production
costs and the evaluation according to the re-evaluation, if this difference is positive (hereinafter - the increase of the
value), is included in the relevant assets item of the Balance Sheet where the re-evaluated item of fixed assets is
presented and the liabilities item of the Balance Sheet "Provision of re-evaluation of long-term investments" under
Section "Equity". The provision of re-evaluation of long-term investment does not include the amount by which
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
17
Annexes to the Financial Statement
the increase of the amount resulting from the re-evaluation fully or partially compensates the adjustment for the value
decrease of the same fixed assets item which were included as costs in the Profit or Loss Statement of the preceding
report years. This amount is included in the Profit or Loss Statement as revenue in the report period where the increase of
the value of the fixed assets item was established.
The depreciation of the re-evaluated fixed assets item in the relevant report period is assessed based on the value of this
item in the relevant report period and is included as costs in the Profit or Loss Statement according to the same amount.
The provision of the re-evaluation of the long-term investment is reduced if the re-evaluated fixed assets item is
alienated, liquidated or there are no longer basis for increasing its value, or by performing the assessmentof the annual
depreciation of the re-evaluated fixed assets item. The reduction of the re-evaluation provision is included as revenue in
the Profit or Loss Statement in the report period when this reduction was made.
The re-evaluation provision of the long-term investment is not paid out, is not distributed as dividends and not used
for covering loss, increase of the share capital, formation of other provisions or any other purpose.
In compliance with Part Five of Section 6 of the Law on Corporate Income Tax, in determining the income subject to the
Corporate Income Tax, the results of re-evaluation of the items of the Balance Sheet and off Balance Sheet (except re-
evaluation of assets due to change of the foreign currency exchange rate) are not taken into account.
10) Reserves
Raw materials and materials are evaluated in the report according to the FIFO method (first in, first out).
The Company applies the same method of determination of the value of the use of reserves and balances for all the
reserves of a similar type and use.
The value of reserves is adjusted to achieve that on the Balance Sheet date they are assessed according to the lowest of
the acquisition costs or production costs, or the lowest market price on this date, or in special cases - according to their
net sale value. The adjustments for the decrease of the value of reserves may be discontinued when there are no longer
basis for the value reduction.
11) Accounts receivable
Receivables are evaluated by following the principle of caution by only presenting the actual receivables on the Balance
Sheet.
Special provisions for doubtful debts are created in cases when, according to the management’s view, the recovery of
these debts is doubtful, by evaluating individually each debtor. The decrease of the value of reserves is the difference
between the Balance Sheet value of the asset and the present value of the estimated future cash flow by discounting it
according to the effective interest rate. The reserve amount is included in the Profit or Loss Statement under the item
"Other costs of economic operations". Bad debts are written off as the loss of the report period.
12) Investments in subsidiaries and associates of the Group and other investments
Investments in daughter companies (i.e. the companies where the Company holds more than 50% of the equity capital or
which it controls in any other way) are measured initially at cost. Control is achieved where the Company has the power
to govern the financial and operating policies.
Associates are all entities over which the Company has significant influence but not control, generally accompanying a
shareholding of between 20% and 50% of the voting rights. Significant influence is the power to participate in the
financial and operating policy decisions of the investee company but is not control or joint control over those policies.
Investments in associates are initially measured at cost.
Other financial investments represent investments in the share capital of another company which does not exceed
20% of the company’s total share capital.
Long-term investment, including investment in the Group daughter and association companies, are accounted for
according to the acquisition value which is adjusted in cases of long-term increase or decrease of their value. If any
events or change of circumstances indicate that the Balance Sheet value of the investment could be unrecoverable, the
value of the relevant fixed assets is reviewed in order to identify the value deterioration. Loss from the value reduction are
recognised in the Profit or Loss Statement.
13) Accrued liabilities
The Balance Sheet item "Accrued liabilities" includes clearly known amounts of liabilities to suppliers of goods and
providers of services for the goods or services received during the reporting period, for which the provided
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
18
Annexes to the Financial Statement
source document for payment (invoice) has not been received on the date of the Balance Sheet due to the terms of
delivery, purchase or the contract or other reason.
The Company creates reserves for liabilities to employees for unused vacation.
The accrued costs of unused vacations are estimated by multiplying the average daily wage of employees during the
last six months of the report period with the number of unused vacation days at the end of the report period.
14) Corporate Income Tax
The Corporate Income Tax, in compliance with the requirements of the Law "On Corporate Income Tax", consists of the
Corporate Income Tax assessed for the report period which is recognised in the Profit or Loss Statement. The
Corporate Income Tax is assessed for the distributed profit (dividends) and the conditional distributed profit by which the
Corporate Income Tax base is increased.
15) Cash and cash equivalents
For the purpose of the cash flow statement, cash and cash equivalents consist of the balances of the current bank accounts
and
short-term deposits with the term up to 90 days.
16) Financial assistance and aid, donations and gifts
The received financial aid is included in the revenue in the report period when the financial aid or assistance was
received.
The financial aid and support received for creating fixed assets is accounted for as the revenue of future periods which is
gradually included in the during the term of effective use of the fixed assets received or purchased for the received
financial aid. The other subsidies are applied to the results of the report period in the period of receipt of the subsidies. If
during following years after inclusion of the received financial aid in the Balance Sheet or the Profit or Loss
Statement it has been revealed that any of the conditions of the provider of the financial aid has not been complied with
and the received financial aid or any its part has to be received, then, if the amount of the received financial aid was
included in the Balance Sheet item “Revenue of future periods” and has not been fully included in the revenue of the
relevant reporting periods, for the purpose of writing off the repayable financial aid amount, first the balance of the
item "Revenue of future periods” is used by only including the balance of the repaid financial aid amount not covered
by this item in the costs of the report period.
If the Company is assured that all the conditions related to the receipt of financial assistance will be fulfilled and the
repayment of the eligible expenses will be received, the Company includes the financial aid to be received in the
revenue prior to the receipt of the repayment of eligible expenses. This amount is presented in the financial statement
under the item "Accrued revenue".
17) Financial liabilities, provided guarantees and other eventual liabilities not included on the Balance Sheet
17.1. Liabilities regarding signed rent and lease agreements which are important for the company operations
The Company has concluded land and pier lease contracts with Riga Free Port Authority. The contracts are in force till
31 August 2028. The Company has the priority right to extend the contract terms following the expiring of the contract
terms.
17.2. information regarding pledging or other encumbering of the Company assets
On 14 December 2017 Ship Bond No.2 for the pledge of the tug boat “Orkāns” and Ship Bond No. 3 for the pledge of
the floating crane „CELTNIS 24” was issued in favour of AS “Latvenergo” as the security of the liabilities of AS “Rīgas
kuģu būvētava” and recorded in the Latvian Ship Register and they are in force until full satisfaction of the secured
liabilities. The amount of the secured claim is 190,000 EUR and 270,000 EUR. The Balance Sheet value of the pledged
floating devices is as follows as on 31 December 2022: the value of the tug boat “Orkāns” of EUR 43,884 and the value of
the floating crane “CELTNIS 24” (SPK-23) 112,012.
The Company has not issued any other guarantees or securities, it does not have any retirement liabilities and similar
liabilities to its former members of management bodies.
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
19
Annexes to the Financial Statement
17.3. Not recognised claims
17.3.1.
In 2021 court proceedings were started regarding cancellation of a lease contract and recovery of damage,
where the claimant as a lessee has brought a claim against the Company as the lessor for reimbursement of the
lessee’s expenses for its investment in the Company infrastructure not approved by the Company. As the
Company does not admit this claim and the court proceedings are ongoing at the moment, no adjustments
regarding this litigation were made in the financial statement. The next court hearing is scheduled for 2023.
17.3.2.
In 2022 the claimant as a subcontractor has brought a claim against the Company for recovery of a partial
payment for provided services. The claimant’s claim was satisfied by default judgment of Riga City Court
dated 22 November 2023, however, the Company does not admit this claim and has filed an appeal. The court
proceedings are continued, the next court hearing has not been scheduled. No adjustments were made in the
financial statement regarding this litigation.
18) Litigations
During the reporting period the Company was involved in one litigation which has been concluded at the moment of
preparation of the report:
18.1. In 2021 the Company performed a ship repair, however, due to the reason that damage was caused to the ship
due to the fault of involved subcontractors during performance of the repair, the Company did not receive the
last payment for the performed ship repair. As the Company reimbursed the damage caused to the ship before,
the Company submitted a claim for recovery of the debt to the court. During the period until preparation of the
report, by the judgment of London Arbitration dated 20 February 2023, the ship owner was obliged to make
the final payment for provided services and the payment has been received.
19) Substantial events after the Balance Sheet date which do not relate to the report period and therefore are
not included on the Balance Sheet or the Profit or Loss Statement
Events following the end of the report period which provide additional information about the financial condition of the
company as on the dateofpreparing the Balance Sheet (correcting events) are reflected in the Financial Statements. If
events following the end of the report period are not correcting events they are reflected in Annexes to the Financial
Statements only if they are major.
20) Associated companies
Associated companies are the companies under substantial impact of another company which is secured by holding
minimum 20 and not above 50 per cent of shareholders’ votes in this company.
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
20
Annexes to the Financial Statement
21) Comparable information
According to the legal requirements the titles of certain items of the Profit or Loss Statement and the Balance Sheet
have been changed, and items have been re-classified by re-classifying the comparable indices of the preceding period in
compliance with the principles applied in the report period, thus the financial indices of the report period are
mutually comparable:
Values of items
following re-
classification
Eur
Costs not related to
economic
operations
Eur
Values of items
before re-
classification
Eur
2,163,536
(14,710)
2,178,246
Production costs of sold products,
sold goods or provided services
purchase costs
Other costs of economic operations
96,372
14,710
81,662
22) Related parties
Related parties are the Company shareholders, the Board members, their close family members and the companies
where the above parties have a control or substantial impact.
All the transactions with related parties during the report period are not substantial and conform with the usual market
conditions.
23) Subscribed shares during the report period
There have been no subscriptions to the Company shares during the report period.
24) Agreements not included in the Balance Sheet and affecting the assessment of the Company’s financial position
The Company does not have any agreements affecting the assessment of the Company’s financial position not
included in the Balance Sheet.
25)
Information about associated companies
Participation
share
Owners
equity
Profit or
loss
Owners equity
Profit or
loss
Report 2022 has not been audited.
26) Research and development measures and own shares
The Company does not have research and development measures and it has not repurchased its shares in the report period.
NameRegistered address 30.06.2023
%
30.06.2023
Eur
2023
Eur
Participatio
n
share
30.06.2022
%
30.06.2022
Eur
2022
Eur
SIA "Rem ars
Granula"
Gāles iela 2, Riga
49.79%236,787
49.79%236,837(50)
236,787
236,837(50)
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
21
Annexes to the Financial Statement
27)
Net turnover
30.06.2023
Eur
30.06.2022
Eur
Revenue from infrastructure lease
933,925
933,925
740,776
740,776
Split per types of operation
NACE code
30.06.2023
30.06.2022
Eur
Eur
Leasing and management of own or leased real
estate
6820
933,925
740,776
933,925
740,776
Split per geographic regions
Germany
The Netherlands
Belgium
Finland
Latvia
Cyprus
Russia
UK
State code
DE
NL
BE
FI
LV
CY
RU
GB
36,364
11,723
-
-
835,130
50,708
-
-
933,925
-
-
-
-
740,776
-
-
-
740,776
28)
Production costs of sold products, purchase costs of sold goods or
provided services
Material costs
Subcontractors’ services
Personnel wages
State social insurance mandatory contributions
Depreciation of fixed assets and intangible investment
Utilities costs
Lease costs of the land, premises and machinery
Transportation costs
Real Estate Tax
Infrastructure maintenance costs
Costs of waste removal and disposal
Other production costs
30.06.2023
Eur
6872
17,079
240,424
55,125
76,119
777,206
30,961
1178
78,729
6887
87,121
9077
1,389,778
30.06.2022
Eur
47,619
158,791
192,470
27,771
93,930
164,403
30,076
185
79,440
7558
1151
67,498
870,892
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
22
Annexes to the Financial Statement
29)
Administration costs
30.06.2023
Eur
30.06.2022
Eur
4828
3441
55,215
107
6259
-
7767
1976
1066
5912
38,129
3871
16,200
23,400
Administration wages
State social insurance contributions
Business trip costs
Transportation expenses
Legal services
Representation expenditure
Communication costs
Costs of maintenance of the office
Ancillary expenses of cash turnover
Annual report audit costs
Supervision of the legal protection plan
Other administration costs
4654
16,801
21,780
1183
114,268
98,321
30)
Other revenue of economic operations
Net revenue from sale of long-term investment
30.06.2023
Eur
468,600
30.06.2022
Eur
5,250,000
468,600
5,250,000
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
23
Annexes to the Financial Statement
31)
Other costs of economic operations
Expenses of writing-off doubtful and bad receivables
30.06.2022
Eur
2,975,279
30.06.2023
Eur
7804
-
Loss from the sale of foreign currency and decrease of the exchange rate
Penalties, late payment penalties and contractual penalties
Expenses according to the court judgement
Adjustments in the result of inventory of accounts
Expenses of preceding periods
Costs not related to economic operations
Donations
Other costs
7804
2,975,279
32)
Other interest income and similar revenue
Interest income for loans
30.06.2023
Eur
2,645
2645
30.06.2022
Eur
4313
4313
33)
Interest payments and similar expenses
30.06.2023
Eur
30.06.2022
Eur
Assessed interest of loans
3951
64,378
395164,378
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
24
Annexes to the Financial Statement
35) Re-evaluation reserve
The Balance Sheet value of the reserve of re-evaluation of long-term investment as on 30 June 2023 is the balance of
the re-evaluation reserve of preceding periods as on 31 December 2022.
Long-term investment revaluation reserveEur
Balance
31.12.2022 21,573
Reduction of the re-evaluation provision
Balance
30.06.2023 21,573
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
25
Annexes to the Financial Statement
36)
Long-term financial investment.
Participation in the
capital of associated
companies
Participation in the
capital of associated
companies
1,200,000
1,200,000
At the end of the reporting period
1,200,000
1,200,000
Adjustments for reduction in the value:
In the beginning of the report period
At the end of the reporting period
Balance Sheet value
(1,200,000)
(1,200,000)
-
(1,200,000)
(1,200,000)
-
37)
Loans to associated companies
Debt of SIA "Remars Granula" based on the assignment contract
The principal loan amount of SIA "Remars Granula"
The loan interest of SIA "Remars Granula"
Provisions for debts of doubtful accounts
Balance Sheet value
30.06.2023
Eur
770,000
310,642
244,317
(1,324,959)
-
30.06.2022
Eur
770,000
310,642
244,317
(1,324,959)
-
The debts of associated companies are presented according to the net value by deducting provisions for doubtful debts
from the full amount. During the report period debts written off during preceding periods have not been received and
provisions for new doubtful debts have not been made.
38) Other securities and investment
In 1999 the Company has purchased 33 shares of Baltic International Bank SE (the preceding name is AS “Baltijas
starptautiskā banka”) with the par value 5 LVL or 7.1 EUR. As on 30.06.2023 the Company owns 33 shares where the
par value of a share is 7.1 EUR, which amount to 0.0006 % of the share capital of Baltic International Bank SE
amounting to EUR 235, registered with the Register of Enterprises.
39) Other loans and other long-term debtors
During the reporting period the Company has alienated fixed assets owned by it and a part of the transaction amount is to
be covered until 2027 according to the sales contract.
40)
Raw materials
Raw materials
30.06.2023
Eur
45,910
30.06.2022
Eur
107,525
Reduction of value for slow circulation and obsolete materials
45,910
107,525
30.06.2023
Eur
30.06.2022
Eur
Initial accounting value
In the beginning of the report period
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
26
Annexes to the Financial Statement
41)
Trade receivables
Customers and buyers accounting value
30.06.2023
Eur
302,895
30.06.2022
Eur
913,669
Provisions for debts of doubtful accounts
The trade receivables are presented according to the net value by deducting provisions for doubtful debts from the full
amount. No provisions for new doubtful receivables were created during the reporting period, however, a part of bad
debts for which provisions had been made before were written off.
42)
Other receivables
30.06.2023
Eur
Paid advances for services
Provisions for doubtful advances
Debt for performance of a guarantee *
Accounting value of loans and accrued interest **
Provisions for doubtful loans
Advance settlements
Settlements for other debtors
387,719
(335,304)
611,471
714,000
(634,441)
10,753
967,802
1,722,000
30.06.2022
Eur
405,553
(344,456)
611,471
630,872
(583,196)
-
178,007
898,251
* In 2014 the Company signed a mortgage contract with AS ABLV Bank, by issuing a guarantee for the liabilities of AS
“Remars Rīga” to AS ABLV Bank. All the liabilities to AS ABLV Bank were covered in 2021 and the mortgage over
the Company real estate has been removed. Until 30 June 2023 the Company has covered the loan liabilities of AS
“Remars Rīga” for the amount of 611,471 EUR.
Loans and accrued interest to
SIA Eiro Paint ***
Loans and accrued interest to
SIA Eiroholdings**** Loan
and accrued interest to AS
Remars Rīga *****
*** In 2015 the Company issued a loan to SIA “Eiro Paint” in the amount of EUR 500 000 with the interest rate 6 % per
annum and the repayment term 31 December 2020. During the report period no interest was assessed for the loan
because the economic operation of SIA “Eiro Paint” was suspended on 11 February 2019 and the Company does not
believe it would ever receive this interest. The long-term loan was issued without a security, however, the Company
may re-purchase the machinery bought for the loan amount. In 2020 a provision was made for the doubtful loan issued to
SIA “Eiro Paint” and accrued interest in the amount of EUR 535,520.
Balance Sheet value 302,895913,669
Eur
Eur
-
98,921
-
95,352
95,352
-
79,559
154,483
-
154,483
** Accounting value of loans and accrued interest
30.06.202330.06.2022
Long-term
part
Eur
Total
Long-term
part
Eur
Total
-
Short-
term
part
Eur
535,520
535,520
-
Short-
term
part
Eur
535,520
535,520
98,921
79,559
-714,000714,000154,483630,872785,355
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
27
Annexes to the Financial Statement
**** The Company has issued a loan to the related entity SIA Eiroholdings” in the amount of 88,000 EUR with the
annual interest rate 4 %. The accrued interest should be repaid simultaneously with the principal loan amount. In 2021 the
agreement signed in 2019 was amended by extending the repayment term up to 16 August 2024. The loan was issued
without a security. In 2021 a provision was made for the doubtful loan issued to SIA “Eiroholdings” and accrued
interest in the amount of 47,676 EUR, and in 2022 a provision was made for the remaining part of the loan and accrued
interest in the amount of 51,245 EUR.
***** “Remars Rīga” has partially repaid the loan in 2022. The loan was issued with the annual interest rate 3% and the
accrued interest should be repaid simultaneously with the principal loan amount. In 2021 the agreement signed in 2019
was amended by extending the repayment term up to 31 December 2023. The loan was issued without a security.
43)
Costs of future periods
30.06.2023
Eur
30.06.2022
Eur
73,730
Insurance of the Company property
Insurance of road vehicles
167
167
5445
79,175
44)
Cash
Cash in banks
30.06.2023
Eur
28,342
28,342
30.06.2022
Eur
944,300
944,300
45) Stock capital
AS ’’Rīgas kuģu būvētava’’ was founded in 1991. The value of the stock capital of the company is EUR 16,340,950,
which consists of 11,672,107 bearer’s shares with the par value of a share equal to 1.40 EUR. As on 30.06.2023 the
stock capital of the Company consists of 11,672,107 shares of which amount 10,000,000 shares are traded on the
regulated market and 1,672,107 shares are the shares of a closed issue.
The shares of the company are traded on the regulated market and are listed in the Second List of AS NASDAQ Riga. All
the shares provide equal entitlement to dividends, the receipt of a liquidation quota and voting rights at the general
meeting of shareholders. One share provides the right to 1 vote at the meeting of shareholders.
Amendments of Articles:
1. On 30 December 1998 the stock capital of the Company was increased to EUR 15,651,590.
2. On 30 December 1999 the stock capital of the Company was increased to EUR 16,607,912.
3. Denomination of the stock capital was performed in May 2015. The volume of the stock capital following the
denomination is EUR 16,340,950. The number of shares is 11,672,107, the share par value is 1.40 EUR.
3. In May 2017 it was determined that the Management Board consists of 3 Board Members
(there were 5 Board Members before).
Information about shares and stocks
NominalAccounting
Type ofNumbervaluevalue
shares
Eur
Ordinary registered shares11,672,1071.40
1.40
Eur
16,340,950
16,340,950
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
Annexes to the Financial Statement
28
Shareholders of AS
“Rīgas kuģu
būvētava”
Shares on the
regulated
market of the
Stock Exchange
Number of
shares
Closed
issue
shares
Total
Nominal value
of a share, Eur
Total value
of shares,
Eur
1.40
1.40
AS "Remars-Rīga"
Other
Total
4,673,757
5,326,243
10,000,000
1,145,437
526,670
16,72,107
5,819,194
5,852,913
11,672,107
8,146,872
8,194,078
16,340,950
Other
Shareholders of AS “Rīgas
kuģu būvētava”
AS "Remars-Rīga"
30.06.2023
Eur %
8,146,872 49.86
8,194,07850.14
30.06.2022
Eur %
8,146,872 49.86
8,194,07850.14
Total 16,340,95010016,340,950100
46)
Other loans
Interest of a loan from
the management*
Loans from legal
companies**
* no borrowings.
** In 2014 the Company signed an agreement and received a loan from SA SOGIP SERVICES GENEVA in the
amount of EUR 2 000 000 with an interest rate 6 % per annum. The loan had to be repaid until 22 June 2019. The loan
is not secured by any pledges or guarantees. The accrued assessed interest at the start of the legal protection
proceedings on 16.08.2019 amounted to 178,773 EUR to be covered simultaneously with the principal amount.
Further interest was not assessed following approval of the LPP. In 2020 the loan to SA SOGIP SERVICES GENEVA has
increased by 186,251 EUR because in relation to liquidation of AS “Tosmares kuģubūvētava” the remaining debt of the
Company to a related company was assigned in favour of SA SOGIP SERVICES GENEVA.
In compliance with the amendments to the legal protection proceedings plan approved on 01 November 2022, the loan
and accrued interest should be repaid until 16 August 2024, therefore the debt amount of 2,536,827 EUR to be repaid
more than a year after the end of the reporting period is presented as a long-term borrowing.
** In 2017 and 2018 the Company signed four agreements and received loans from SIA “Eironams” in the amount of
EUR 773 933 with interest rates of agreements of 4 % per annum. The repayment terms of three loan agreements were
year 2018 and year 2021 for one of the agreements. The loans are not secured by any pledges or guarantees. The
accrued assessed interest at the start of the legal protection proceedings on 16.08.2019 amounted to 22,079 EUR to be
covered simultaneously with the principal amount. Further interest was not assessed following approval of the LPP.
In compliance with the amendments to the legal protection proceedings plan approved on 01 November 2022, the loan
and accrued interest should be repaid until 16 August 2024, therefore the debt amount to be repaid more than a year after
the end of the reporting period amounting to 164,044 EUR is presented as a long-term borrowing.
2,700,871
71,889
2,443,594
422,772
2,866,366
2,700,871
93,939
2.794.810
2,443,594
422,772
2,866,366
30.06.2023
Short-
term part
Eur
Total
Eur
Long-term
part
Eur
30.06.2022
Short-
term part
Eur
Total
Eur
Long-term
part
Eur
-
2,772,760
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
Annexes to the Financial Statement
29
** In 2021 the Company signed an agreement and received a loan from the related company SIA “MM INVEST” for the
total amount of 265,000 EUR with the annual interest rate 3.5% and the repayment term of 31 December 2022. The
mortgage to floating docks No.791 and K-4 was registered as the security. The loan was repaid and the mortgage was
removed in 2022.
** In 2021 the Company signed an agreement and received a loan from the related company SIA “EIRO WELDING” for
the total amount of 14,000 EUR with the annual interest rate 13.44% and the repayment term of 31 December 2022.
The loan is not secured by any pledges or guarantees. The loan was repaid in 2022.
According to the loan agreements and the Legal Protection Plans, including all the amendments up to 01 November
2022, there are no parts payable within five years following the Balance Sheet date.
Debts according to the
LPP plan of measures
In compliance with the last amendments of 01 November 2022 of the legal protection proceedings plan approved on
16.08.2019, debts have to be repaid until 16 August 2024 according to the schedule defined by the LPP plan.
48)
Other accounts payable
Wages
Settlements with persons accountable for advances
Overpayment by debtors
Security Deposit
30.06.2023
Eur
2,364
-
70
8289
10,723
30.06.2022
Eur
155,158
11,591
-
8289
175,038
Eur
Eur
47)
Trade payables
31.12.202231.12.2021
Long-term
part
Eur
Total
Long-term
part
Eur
Total
1,305,165
Short-
term
part
Eur
629,385
1,934,550
1,541,671
Short-
term
part
Eur
1,173,856
2,715,527
1 305 165629 3851 934 5501 541 6711 173 8562 715 527
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
Annexes to the Financial Statement
30
49)
Revenue of future periods
Project - reconstruction of the
heat supply system * Project -
implementation of energy
efficiency measures in
production workshops **
* In 2013 and 2014 the Company has received funding from the Latvian Investment and Development Agency in the
amount of 344,085 EUR for development of fixed assets: Agreement No. LIAA/017-PSC-12-0031 “Reconstruction of
the heat supply system of AS “Rīgas kuģu būvētava””. The fixed assets were commissioned in 2014. The received
funding has been gradually transferred to the revenue of the Profit or Loss Statement during the period of 2014-2019
according to the period of productive use of fixed assets. In compliance with the resolution of Kurzeme Regional
Court dated 25 November 2021, the Company has to return the full amount of the received funding and the term for
return is until August 2024 according to the LPP plan. As the received financial aid has to be repaid in full amount, in
compliance with the policy of accounting of financial aid described in Annex 15 and based on the court resolution, the
Company made adjustments in the long-term and short-term items of the Balance Sheet “Revenue of future
periods”. The total amount to be repaid to the Latvian Investment and Development Agency as on 31.12.2022
amounted to 234,893 EUR, and this has been repaid at the moment of preparing the present report.
** In 2013 and 2014 the Company received funding in the amount of EUR 479 807 for establishment of fixed assets
from SIA “Vides investīciju fonds” [Environment Investment Fund]: Agreement No. KPFI-15.2/236 “Performance of
energy efficiency measures in production workshops”. The fixed assets were commissioned in 2014. The received
funding is transferred to the revenues of the Profit or Loss Statement gradually during the remaining term of effective use
of the fixed assets. The amount of 7240 EUR was included in the revenue in the reporting period.
The long-term amount exceeding five years following the Balance Sheet date is 237,374 EUR.
50)
Unpaid dividends
The debt of the Company towards shareholders for unpaid dividends in the amount of EUR 11,746 got established in
2013. The failure to pay dividends is related to the fact that some shareholders have not performed denomination of
their shares until now and these shares are in the initial register of depositories, and there are also unpaid dividends to
liquidated holders of the shares of a closed issue.
51)
Accrued liabilities
For services
Accrued unused vacationcosts
30.06.2023
Eur
72,119
84,759
156,878
30.06.2022
Eur
43,784
45,519
89,203
Eur
6598
72407240
30.06.2023
30.06.2022
Long-term
part
Eur
Total
Long-term
part
Eur
Short-
term
part
Eur
151,071
151,071
Short-Total
term
part
Eur
Eur
70,42170,421
6598
157,669157,66977,66177,661
AS "RĪGAS KUĢU BŪVĒTAVA" FINANCIAL INFORMATION OF SIX MONTHS OF YEAR 2023
GĀLES IELA 2, RIGA, LV-1015, LATVIA, REG. No. 40003045892
31
Annexes to the Financial Statement
52)
Going concern assumption and events following the end of the report period
The equity capital of the Company as on 30 June 2023 is positive and amounts to 1,823,776 EUR. The result of
operation of the Company of 6 months of 2023 was net loss of 110,571 Eur and its current liabilities as on 30 June 2023
are below the current assets.
Since the moment of approval of the plan of measures of the legal protection proceedings until preparation of the
interim report, the plan of the measures of the legal protection proceedings has been amended several time, the last
amendments were approvedon 01 November 2022by adjusting theplanned revenue and expenditureof the Company, as
well as the schedule of covering creditors’ claims without changing the total amounts of liabilities to be covered. The
further operation of the Company depends on the ability of the Company to implement the legal protection plan and to
settle liabilities to its creditors within the defined terms by complying with all the conditions of the plan.
The Company attests that the amendments to the plan of measures of the LPP prepared by it and approved by the court
will allow maintaining the current profile of operations and indicate that the financial liabilities to both secured creditors
and unsecured creditors will be satisfied within sixty months as from the moment of approval of the plan of measures of
the LPP, i.e. until year 2024.
In 2023 and until the preparation of the interim report the Company has been able to fulfil its liabilities according to the
plan of measures of LPP. The further operation of the Company depends on the ability of the Company to
implement the legal protection plan and to settle liabilities to its creditors within the defined terms by complying with all
the conditions of the plan. The Company continuous implementation of measures in the area of process efficiency and
costs optimisation, at the same time looking for solutions for expanding the Company operations resulting in
preparation of the Company forecasts and operational financial operation results envisaging profit.
Although the Company has clear perspective of restoring its operations, it is also known that the time will be needed
for optimising its staffing, restoring the flow of the current assets, diversifying production and attracting investment.
This conclusion is based on the information available at the moment of signing the present financial statement, and
the impact of further events on the future operation of the Company may differ from the management’s assessment. It
is also planned to continueemployment legal relationship with the current employeesofthe Company in compliance
with concluded employment agreements and it is not planned to change the location of the Company.
The conflict in Ukraine and related events take place during the time of substantial global economic uncertainty and
instability, in the result their consequences may amplify the general impact on the market conditions. The Company
management has not identified direct effect of the above events to further economic activity of the Company. During
the reporting period there have not been any major or extraordinary circumstances which would affect the results
and the financial position of the Company.
Board Member
Einārs Buks
Board Member
Deniss Parfens
Report prepared by
Chief Accountant
Ināra Tužilova
29 August 2023