Independent Auditor’s Report
of Visual Connection Financial Statement
The Report has been prepared according to the ISA 700 CZ International Standard on Auditing with the application clause for the Czech Republic and in compliance with Act No. 254/2000 Sb., the Auditors Act. These regulations exactly define the scope and wording of an auditor’s report.
The audited financial statement as at 31 March 2008
(Accounting period from 1 April 207 to 31 March 2008)
of the below company (described in detail in the financial statement, including its areas of business):
Name: | Visual Connection, a. s. |
Registered Office: | Slezská 2526/113, Praha 3, 130 00 |
Company Registration No.: | 18630758 |
Taxpayer Registration No.: | CZ18630758 |
Report for: | Management and General Meeting of the said company Central government authority pursuant to a special act Users of the financial statement |
Auditor, individual: | ing. Jiří Fišer Permanent address: Sarajevská 12/2504, 120 00 Praha 2 Place of business: Ostrá 299/2, 190 15 Praha 9 Chamber of Auditors of the Czech Republic Certificate No.: 1026 |
Contractual Relationship: | Entered into with the authorised representative of the audited company |
Introduction
The auditor’s opinion on the financial statement as a whole and the interpretation of the conclusions made by the auditor from the evidentiary information collected for the purpose of delivering the statement pertaining to this financial statement.
Responsibility of Unit of Account’s Authorised Representative for Financial Statement
The responsibility for the preparation and true representation of financial statement in compliance with the Czech accounting standards lies with the authorised representative of the unit of account. This responsibility also covers the duty to design, implement, and ensure internal controls over the preparation and true representation of the financial statement so that this statement could not contain any substantial inaccuracies due to fraud, error or other, and choose and use suitable accounting methods and make accounting estimations reasonable to a given situation. The authorised representative issues the compulsory management’s statement to financial statement.
Responsibility of the Auditor
The task of the auditor is to audit the financial statement of the company identified in this financial statement (Appendix) and, on the basis of the audit, to issue a statement to the financial statement.
The auditor also takes account of the Statement of the Company’s Management to the Financial Statement Audit.
Audit covers selective verification of the completeness and conclusiveness of the amounts and information contained in the financial statement.
The audit has been carried out in compliance with the Auditors Act, the International Standards on Auditing, and the related application clauses of the Chamber of Auditors of the Czech Republic. As required by these standards, the auditor was bound to follow ethical rules, and plan and carry out the audit in a way to become reasonably certain that the financial statement did not contain any substantial inaccuracies.
Audit covers the application of auditing practices, whose purpose is to collect evidentiary information as to the amounts and facts stated in the financial statement. The choice of auditing practices is the matter of the auditor’s judgement, including the assessment of the risks that the financial statement might contain substantial inaccuracies due to fraud or error. In assessing these risks, the auditor allowed for the internal controls relevant to the preparation and true representation of the financial statement. The point of internal controls assessment is to suggest suitable auditing practices rather than to comment on the effectiveness of the internal controls. Audit also covers the assessment of the suitability of the auditing practices used, of the adequacy of the accounting estimations made by the management, and of the overall presentation of the financial statement and its capacity to give a true picture.
Auditor’s Statement
I believe that the financial statement gives a true and fair picture of the assets, liabilities and financial standing of the company as at 31 March 2008, and of the costs, revenues and profit or loss for the given period in compliance with the Czech accounting regulations.
Report dated: 20 November 2008
round seal: CHAMBER OF AUDITORS, Ing. Jiří Fišer, KA ČR, Auditor No. 1026, Ostrá 299, Praha 9
Auditor signed: /s/ Ing. Jiri Fiser with round seal containing the data identical to those above left
Review of the Report of Relations between Related Entities pursuant to ISA 720 CZ Auditing Guideline for Period of 1 April 2007 to 31 March 2008
Report of the company:
Visual Connection, a. s.
Slezská 2526/113, Praha 3, 130 00
Company Registration No.: 18630758
Taxpayer Registration No.: CZ18630758
I have reviewed the subject-matter accuracy of the data stated in the Report of Relations between Related Entities of the said company as at 31 March 2008. The responsibility for the preparation of the said Report lies with the management of the company. The auditor’s task is to review the Report and make a comment on it.
I have reviewed the Report in compliance with the International Standards on Auditing relevant to such a review, and the related application clauses of the Chamber of Auditors of the Czech Republic (ISRE 2400CZ). These standards require the auditor to plan and carry out the review in a way to become certain to a medium degree that the related entities report contains no substantial inaccuracies. The review is limited particularly to interviewing the company’s employees, using analytical procedures, and verifying subject-matter accuracy of data on a selective basis. That is why the review provides a lower degree of certainty than audit, and contains no auditor’s statement.
Upon the review of the Report in question I have identified no substantial subject-matter inaccuracies in the data stated in the Report of the Relations between Related Entities of the company as at 31 March 2008.
Appendix: Report of Relations between Related Entities
Ing. Jiří Fišer
Auditor of the Chamber of Auditors of the Czech Republic
Registration No. 1026
Ostrá 299, Praha 9, 190 15
/s/ Ing. Jiri Fiser with round seal containing the data identical to those above left
Dated: 20 November 2008
Report by Board of Directors
of Visual Connection, a. s., a joint-stock company,
Slezská 2526/113, Praha 3, Postal Code: 130 00, Company Registration No. 18630758,
Entered in the Commercial Register maintained by the Metropolitan Court in Prague, Section B, File 10959,
of the relations between the controlling, the controlled, and the related entities.
The Board of Directors state the following, according to their knowledge and the statements by shareholders:
A. The entities controlling Visual Connection, a. s. are:
· | Bc. Tomáš Petrů, birth identification no. 730505/5329, address at Nad Okrouhlíkem 2291/5, Praha 8, Postal Code 180 00; |
· | Ing. Jakub Vaněk, birth identification no. 670930/1929, address at Klecanská 826/6, 182 00 Praha 8; |
where in 2007 each of the above individuals held 50% of the shares in the company, meaning that they together held 100% of voting rights. Both individuals hold the identical number of votes, thus neither alone can be claimed to be the controlling entity in the meaning of the first sentence of section 66a(5), Commercial Code. In the meaning of section 66b, Commercial Code they are entities acting in accord, and together they are the controlling entities under the law.
B. The controlled entity in the meaning of section 66a(3) is:
· | VISUAL CONNECTION, spol. s r. o., Jelenia 11, Bratislava, Slovakia, Company Registration No. 31390617, entered in the Commercial Register in Bratislava, file no.: S.r.o. 8536/B, where Visual Connection, a. s., Company Registration No.18630758 was the sole member of the controlled company. |
The Board of Directors of the company also state that, according to their knowledge and the statements by shareholders, no agreement to control a company in the meaning of section 190b, Commercial Code has been entered into.
As no agreement to control a company has been entered into, the Board of Directors of the company have prepared this Report:
A. The following were made between the controlling persons and the controlled entity (i.e. Bc. Tomáš Petrů, Ing. Jakub Vaněk, and Visual Connection, a. s.) in 2007:
1. agreements: Vaněk – issued invoices at an amount of CZK 60,000;
Petrů – received invoices at an amount of CZK 108,000 (residential lease);
2. other acts in law: residential lease contract, received invoices at a total of CZK 108,000;
3. other measures: 0;
4. performance provided by the controlled entity: 0.
No other agreements, performance, other acts in law or measures were made between the controlled and the controlling entities in the relevant period.
B. The following were made between the related entities (i.e. Visual Connection, a. s. and VISUAL CONNECTION, spol. s r. o.) in 2007:
1. agreements:
2. other acts in law:
Issued invoices at an amount of CZK 4,374,000;
Received invoices at an amount of CZK 13,166,000;
3. other measures: 0;
4. performance provided by the controlled entity: 0.
No harm was suffered by the controlled entity out of the above agreements and acts in law.
In Prague on this day of 29 June 2008
/s/ Bc. Tomas Petru | /s/ Ing. Jakub Vanek |
Bc. Tomáš Petrů | Ing. Jakub Vaněk |
Visual Connection, a. s. | Visual Connection, a. s. |
Auditor's Report
for the users of the Annual Report for the period of 1 April 2007 to 31 March 2008 pursuant to the ISA 720 CZ guideline
Annual Report prepared by:
Visual Connection, a. s.
Slezská 2526/113, Praha 3, 130 00
Company Registration No.: 18630758
Taxpayer Registration No.: CZ18630758
I verified the compliance of the Annual Report with the financial statement of the said company for the specified period. The company management is responsible for the Annual Report to contain correct data. The auditor's job is to verify the compliance of the Annual Report with the financial statement and give a statement as to this compliance.
I followed the International Standards on Auditing and the related application clauses of the Chamber of Auditors of the Czech Republic (ISA 720CZ). These standards require that the auditor plan and carry out the audit so as to be able to state with reasonable degree of certainty that the information in the annual report describing the transactions shown in the financial statement complies, in all relevant respects, with the relevant financial statement.
I believe that the audit as carried out provides an adequate basis for the auditor's statement to be made.
I am of the opinion that the information shown in the Annual Report as at 31 March 2008 complies, in all relevant respects, with the financial statement referred to above.
Appendix: Annual Report
Ing. Jiří Fišer
Auditor, Chamber of Auditors of the Czech Republic
Registration No. 1026
Ostrá 299, Praha 9, 190 15
/s/ Ing. Jiri Fiser with round seal containing the data identical to those above left
Dated: 20 November 2008
2007 ANNUAL REPORT
of
Visual Connection, a. s.
a joint-stock company,
Slezská 2526/113, Praha 3, Postal Code 130 00, Company Registration No. 18630758,
Entered in the Commercial Register maintained by the Metropolitan Court in Prague, Section
B, File 10959
I. General
1. Details of the Company
Visual Connection, a. s., Slezská 2526/113, Praha 3, Postal Code: 130 00, company registration no. 18630758, entered in the Commercial Register maintained by the Metropolitan Court in Prague, Section B, File 10959, was set up 8 August 1991 by an entry in the Commercial Register; the legal form of the company was changed from a limited liability company to a joint-stock company as from 1 October 2006.
Company Registration No.: 18630758
Registered Capital: CZK 10,000,000.00
Areas of Business:
· | Purchase of goods for resale, and sale, except for the goods listed in the Schedule to Act No. 455/1991 Sb., the Trade Licensing Act, and the goods excluded under this Act; |
· | Writing of computer graphics applications; |
· | Manufacture of electric machines and apparatuses and electronic plant of low voltage and electric equipment; |
· | Electric plant design; |
· | Computer graphics and information systems consulting; |
· | Intermediation of trade; |
· | Wholesale; |
· | Specialised retail; |
· | Retail outside regular outlets; |
· | Retail in used goods; |
· | Rental and loan of movable property; |
· | Provision of software, and hardware and software consulting; |
· | Data processing, databank services, network administration; |
· | Business of technical consultants for audio, video, graphics, film, animation, effects, web, and streaming; |
· | Preparation and drafting of technical designs; |
· | Organisation of technical training and other educational events, including the trainer's job; |
· | Learning to operate (drive) technical equipment; |
· | Advertising and marketing; |
· | Intermediation of services. |
2. Shareholders
Shareholder/registered office/registration no., address/birth identification no. | Stock of shares Nominal value Votes | |
1. | Bc. Tomáš Petrů birth identification no. 730505/5329, address: Nad Okrouhlíkem 2291/5, Praha 8, Postal Code 180 00 | Four shares (shares 1–4) nominal value CZK 1,000,000 Forty shares (shares 9–48) nominal value CZK 25,000 Total votes 5,000 |
2. | Ing. Jakub Vaněk, birth identification no. 670930/1929, address: Klecanská 826/6, 182 00 Praha 8 | Four shares (shares 5–8) nominal value CZK 1,000,000 Forty shares (shares 49–88) nominal value CZK 25,000 Total votes 5,000 |
3. Bodies of the Company
Authorised representative – Board of Directors
Chair: | Bc. Tomáš Petrů |
birth identification no. 730505/5329, | |
address: Nad Okrouhlíkem 2291/5, | |
Praha 8, Postal Code 180 00 | |
Member: | Ing. Jakub Vaněk, |
birth identification no. 670930/1929, | |
address: Klecanská 826/6, Praha 8, Postal Code 182 00 | |
Member: | Jakub Kabourek |
birth identification no. 750123/0187 | |
address: Dalimilova 1728, Kladno, Postal Code 272 01 | |
Member: | Tomáš Veselý, |
birth identification no. 710130/0019 | |
address: Praha 2, Pod Karlovem 12/1574, Postal Code 120 00 |
Acting on behalf of the Company
The Board of Directors act for the company as follows: the Chair may act independently, otherwise two members must act jointly.
Signing on behalf of the Company
The Chair may sign independently or two members must sign jointly by attaching their respective signatures to the corporate name of the Company.
Supervisory Board: | |
Chair: | Ing. Olga Jedličková |
birth identification no. 685513/2163 | |
address: Květná 704/30, 326 00 Plzeň | |
Member: | Ing. Michal Hudeček |
birth identification no. 570212/1775 | |
address: Praha 9, Veltruská 604/12, Postal Code 190 00 | |
Member: | Radek Pittr |
birth identification no. 690613/1760 | |
address: Nová 643, 332 14 Chotěšov |
4. Substantial or Majority Share in Other Companies
Visual Connection, a. s. is the controlling entity in respect of the following company:
Visual Connection, spol. s r. o. (Ltd.), Jelenia 11, Bratislava, Slovakia, company registration no. 31390617, entered in the Bratislava Commercial Register, file no.: S.r.o. 8536/B; Visual Connection, a. s., company registration no. 18630758 was the sole member of the controlled company.
5. Employees
Average number of employees | 22 | |||
Wages and salaries | 13,977,000 | |||
Social security insurance | 4,294,000 |
6. Amount paid to shareholders – profits: CZK 2,352,942
and that paid to members of the company’s bodies: CZK 0.00
II. Accounting Methods; General Accounting Principles
The accounting period for the company is financial year starting on 1 April and ending on 31 March.
1.1 General Accounting Principles
The financial statements are prepared in compliance with the due maintenance of accounts accounting principles and Act No. 563/1991 Sb., the Accounting Act.
2.1 Valuation Methods
All the company's assets are valued in compliance with Act No. 563/1991, as amended, and the chart of accounts and the accounting procedures for businesses.
(a) Inventories
Purchased goods are valued at the purchase price. The company has no other inventories.
(b) Purchased tangible and intangible fixed assets
Fixed assets are accounted at the costs of acquisition, which may include, apart from the purchase price, the costs of transport, customs duty, and the costs of customs clearance. Fixed assets depreciation method is the accelerated method, and accounting depreciation is identical to tax depreciation.
Tangible fixed assets of the costs of acquisition under CZK 15,000 are entered in account 501 without records.
Tangible fixed assets of the costs of acquisition from CZK 15,000 to CZK 40,000 are depreciated over 24 months. Records in account 022 (according to analytical accounts price and year).
Assets over 40,000 are depreciated according to depreciation groups.
Intangible fixed assets under CZK 60,000 are depreciated over 48 months. Records in account 043 (according to analytical accounts price and year). In 207 software over CZK 60,000 was depreciated according to the depreciation plan.
Securities. The company does not hold any securities, but holds the 100% ownership interest in VISUAL CONNECTION, spol. s r. o.
(c) Animals. The company has no animals.
(d) Valuable rights. Valuable rights are entered in account 014 at the costs of acquisition.
2.2 The company has no assets valued at the reproduction costs of acquisition.
2.3 The costs include the purchase price as well as any costs of transport, customs duty, and customs clearance.
2.4 There were no substantial changes in valuation methods, depreciation procedures, or accounting procedures in 2007.
2.5 No adjustments with effect on taxes were made to receivables in 2007.
2.6 Operational records on fixed assets are maintained on cards and depreciation plans are specified on them. For more info see 2.1.
2.7 Conversions from foreign currencies
The daily exchange rates of the Czech National Bank are used during the year. These rates are also used for conversion of the cash flow of foreign currency petty cash, but the exchange rate is only calculated as at 31 March or the date of the last issue of the given foreign currency.
III. Notes to Balance Sheet and Profit and Loss Account
1. Tangible and intangible fixed assets
(a) Fixed assets itemised (amounts in CZK thousands)
Assets | Costs of Acquisition as at 1 April 2008 (net) | Costs of Acquisition as at 31 March 2008 (net) | Accumulated Depreciation as at 31 March 2008 (corrections) | |||||||||
Total | 2,916 | 11,299 | 16,615 |
Separate movables | 1 212 | 7 814 | 15 192 | |||||||||
Buildings | 52 | 52 | 23 | |||||||||
SW | 92 | 1 096 | 1 385 | |||||||||
Valuable rights | 0 | 0 | 0 | |||||||||
Other long-term tangible assets | 1 408 | 2 158 | 15 | |||||||||
Financial assets | 152 | 152 |
b) Securities (not-own)
2. Receivables / Payables
Receivables as of 31 March | Payables as of 31 March | |||||||
Not due and due within 30 days | 1 146 | 1 665 | ||||||
Overdue by up to 90 days | 2 801 | 4 255 | ||||||
Overdue by up to 180 days | 569 | 588 | ||||||
Overdue by over 180 days | 1 285 | 1 753 |
3. Basic Capital – in Thousands of CZK
As of 31 March 2008 | As of 31 March 2007 | |||||||
Paid-up ordinary stock | 10 000 | 10 000 | ||||||
Reserve fund | 793 | 121 | ||||||
Retained profit / unsettled loss of past periods | 335 | 0 | ||||||
Current profit | 1 123 | 3 360 | ||||||
Equity | 12 251 | 13 481 |
4. Reserves
The Company created no tax-effective/non-effective reserves in 2007.
5. 2007 Revenues – in Thousands of CZK:
Revenues from sales of goods | 135 434 | |||
Change in inventories of own production | 0 | |||
Other sales and operating revenues | 2 899 | |||
Financial revenues | 1 436 | |||
Total revenues from ordinary activities | 198 731 | |||
Extraordinary revenues | 0 |
6. Research and Development Expenses
Separate: 0 – (otherwise included in the project of digitalisation of Langweil’s Model of Prague)
Commentary on Economic Results (Profit/Loss)
The Company’s economic results show significantly improving tendencies in all respects (see the following comparison with past periods)
Profit and Loss Statement (simplified extent) | ||||||||||||||||||||
Economic results | As of 31 Dec. 2002 | As of 31 Dec. 2003 | As of 31 Dec. 2004 | As of 31 Dec. 2005 | As of 31 Dec. 2007 | |||||||||||||||
Revenues from merchandise | 52 559 | 41 585 | 82 054 | 93 715 | 144 925 | |||||||||||||||
Costs of goods sold | 44 480 | 33 179 | 63 309 | 89 044 | 121 601 | |||||||||||||||
Business margin | 8 079 | 8 406 | 18 745 | 4 671 | 23 324 | |||||||||||||||
Production | 7 297 | 7 127 | 12 396 | 40 201 | 44 047 | |||||||||||||||
Revenues from sales of own production and services | 7 297 | 40 201 | 36 247 | |||||||||||||||||
Production consumption | 9 575 | 9 935 | 25 786 | 34 405 | 50 422 | |||||||||||||||
Consumption of materials and energy | 982 | 1 672 | 3 500 | |||||||||||||||||
Services | 8 593 | 32 733 | 46 922 | |||||||||||||||||
Value added | 5 801 | 5 598 | 5 355 | 10 467 | 16 949 | |||||||||||||||
Personnel costs | 4 909 | 4 321 | 4 157 | 6 079 | 9 655 | |||||||||||||||
Wages and salaries | 4 501 | 7 218 | ||||||||||||||||||
Social security and health insurance | 1 491 | 2 250 | ||||||||||||||||||
Social expenses | 87 | 187 | ||||||||||||||||||
Taxes and charges | 11 | 34 | 66 | 57 | 164 | |||||||||||||||
Other operating revenues | 399 | 1 471 | 384 | 664 | 2 877 | |||||||||||||||
Other operating costs | 122 | 394 | 17 | 413 | 963 |
Depreciation of long-term tangible and intangible assets | 953 | 1 422 | 501 | 1 773 | 947 | |||||||||||||||
Proceeds from sales of long-term assets and materials | 16 | 475 | ||||||||||||||||||
Proceeds from sales of long-term assets | 475 | |||||||||||||||||||
Net book value of sold long-term assets and materials | 475 | |||||||||||||||||||
Net book value of sold long-term assets | 475 | |||||||||||||||||||
Change in reserves and provisions in operating area and complex NPO | 282 | |||||||||||||||||||
Operating profit/loss | 205 | 616 | 1 014 | 2 809 | 8 097 | |||||||||||||||
Revenue interest | 3 | 29 | 18 | 15 | ||||||||||||||||
Cost interest | 87 | 80 | 576 | 1 955 | ||||||||||||||||
Financial revenues | 810 | |||||||||||||||||||
Financial expenses | 798 | |||||||||||||||||||
Other financial revenues | 208 | 2 378 | 636 | 2 721 | ||||||||||||||||
Other financial expenses | 501 | 2 618 | 1 457 | 3 139 | ||||||||||||||||
Financial profit/loss | 12 | - 377 | - 291 | - 1 379 | - 2 358 | |||||||||||||||
Income tax on ordinary activities | 119 | 242 | 355 | 621 | 2 379 | |||||||||||||||
Profit/loss from ordinary activities | 98 | - 3 | 368 | 809 | 3 360 | |||||||||||||||
Extraordinary revenues | 11 | |||||||||||||||||||
Extraordinary expenses | 1 | |||||||||||||||||||
Extraordinary profit/loss | 10 | |||||||||||||||||||
Current profit/loss | 108 | - 3 | 368 | 809 | 3 360 | |||||||||||||||
Profit/loss before tax | 227 | 5 739 |
Balance Sheet (simplified extent) | ||||||||||||||||||||
2002 | 2003 | 2004 | 2005 | 2006 (as of 31 March 2007) | ||||||||||||||||
Assets | net | net | net | net | net | |||||||||||||||
TOTAL ASSETS | 28 211 | 21 789 | 30 169 | 66 381 | 61 017 | |||||||||||||||
Receivables for subscriptions | ||||||||||||||||||||
Long-term assets | 2 925 | 1 532 | 1 790 | 2 126 | 2 916 | |||||||||||||||
Long-term intangible assets | 0 | 0 | 91 | 58 | 92 | |||||||||||||||
Software | 58 | 92 | ||||||||||||||||||
Long-term intangible assets under construction | 53 |
Long-term tangible assets | 2 872 | 1 532 | 1 699 | 2 068 | 2 672 | |||||||||||||||
Land | ||||||||||||||||||||
Buildings, halls and structures | 54 | 52 | 52 | |||||||||||||||||
Movable fixed assets | 2 818 | 1 253 | 1 212 | |||||||||||||||||
Other long-term tangible assets | 763 | 1 408 | ||||||||||||||||||
Interests in controlled subjects | 152 | |||||||||||||||||||
Long-term financial assets | 152 | |||||||||||||||||||
Floating assets | 24 940 | 20 015 | 28 200 | 63 908 | 57 423 | |||||||||||||||
Inventories | 4 905 | 5 710 | 4 788 | 17 491 | 30 127 | |||||||||||||||
Unfinished production and semi-finished products | 7 800 | |||||||||||||||||||
Goods | 4 905 | 17 491 | 22 327 | |||||||||||||||||
Short-term receivables | 14 841 | 12 250 | 18 205 | 46 497 | 39 556 | |||||||||||||||
Trade receivables | 14 841 | 45 595 | 35 807 | |||||||||||||||||
Receivables from partners and participants in association | 635 | |||||||||||||||||||
Short-term advances provided | 3 114 | |||||||||||||||||||
Other receivables | 902 | |||||||||||||||||||
Short-term financial assets | 5 194 | 2 055 | 5 207 | - 80 | - 12 260 | |||||||||||||||
Cash | 303 | 209 | 1 245 | |||||||||||||||||
Bank accounts | 4 891 | - 289 | - 13 505 | |||||||||||||||||
Other assets – temporary asset accounts | 346 | |||||||||||||||||||
Accruals | 346 | 242 | 179 | 347 | 678 | |||||||||||||||
Deferred expenses | 293 | 347 | 678 | |||||||||||||||||
Deferred revenues | 53 | |||||||||||||||||||
Liabilities | ||||||||||||||||||||
TOTAL LIABILITIES | 21 789 | 28 211 | 30 169 | 66 381 | 61 017 | |||||||||||||||
Equity | 7 536 | 7 649 | 7 370 | 8 685 | 13 481 | |||||||||||||||
Basic capital | 200 | 200 | 6 000 | 6 000 | 10 000 | |||||||||||||||
Basic capital | 6 000 | 10 000 | ||||||||||||||||||
Reserve funds, indivisible fund and other profit-based funds | 40 | 40 | 40 | 40 | 121 | |||||||||||||||
Statutory reserve fund / indivisible fund | 40 | 40 | 121 | |||||||||||||||||
Profit/loss of past periods | 7 299 | 7 301 | 962 | 1 801 | ||||||||||||||||
Retained profit of past periods | 7 301 | 965 | 1 804 | |||||||||||||||||
Unsettled loss of past periods | - 3 | - 3 | ||||||||||||||||||
Profit/loss of current accounting period | - 3 | 108 | 368 | 809 | 3 360 | |||||||||||||||
Not-own capital | 14 223 | �� | 20 480 | 22 799 | 57 699 | 47 536 | ||||||||||||||
Long-term payables | 580 | 356 | ||||||||||||||||||
Other payables | 580 | 356 | ||||||||||||||||||
Short-term payables | 12 375 | 20 480 | 20 997 | 33 494 | 28 183 | |||||||||||||||
Trade payables | 15 677 | 27 508 | 20 359 | |||||||||||||||||
Payables owed to partners and participants in association | 3 064 | 1 280 | ||||||||||||||||||
Payables – substantial influence | 152 | |||||||||||||||||||
Payables owed to employees | 339 | 230 | 528 |
Liabilities due to social security and health insurance | 166 | 165 | 323 | |||||||||||||||||
Due to state – taxes and subsidies | 1174 | 2080 | 2541 | |||||||||||||||||
Short-term advances received | 970 | 3510 | ||||||||||||||||||
Estimated payables | 991 | 500 | ||||||||||||||||||
Other payables | 270 | 270 | ||||||||||||||||||
Bank loans and financial assistance | 1848 | 1802 | 23625 | 18997 | ||||||||||||||||
Long-term bank loans | 18997 | |||||||||||||||||||
Short-term bank loans | 23652 | |||||||||||||||||||
Other liabilities – temporary accounts of liabilities | 82 | |||||||||||||||||||
Accruals | 30 | 32 | ||||||||||||||||||
Deferred expenses | 32 | |||||||||||||||||||
Estimated payables | 82 |
Distribution of Profits and Dividend Policy of the Company
Visual Connection, a. s. achieved available profits at the total amount of CZK 1,123,000 in 2007. The General Meeting adopted a decision on 24 August 2008 to distribute the profits as follows:
in CZK thousands | ||||
Contribution to the provision fund for 2007 – mandatory | 56 | |||
Contribution to the provision fund for 2007 – other | ||||
Bonuses | ||||
Capitalisation |
Dividends – bearer stock | ||||
Account of undistributed profits | 1,067 | |||
Total | 1,123 |
Strategy and Goals of the Company
Further development of the company should be focused on improving quality of all activities, expanding international presence, and managing and optimizing internal resources. More emphasis will be placed on financial management. Profitability, market expansion, and greater market share and higher sales will continue to be the company’s goals.
1. In the long term, the company will be oriented on strengthening its integration activity in audiovisual technology and seeking higher ratio of jobs with service added value. The company will extend the portfolio of its services and technology in a way to be able to deliver comprehensive jobs, including long-term system support.
2. The company will strengthen its risk management, internal control, and internal audit so as to achieve a continuous assessment process and a real-time availability of the relevant data or that on a monthly basis. If required so in respect of this strengthening, the company will change its structure of management. The changes will be effected by the end of the calendar year 2008.
3. The company will pay attention to improving the qualification of its staff in the long term, prepare an outlook of human resources development of the company as a whole as well as development for individual employees, and periodically examine the competence of its managers.
4. The company will aim at winning recognition from the community in respect of the indisputable professional quality of the company, and will also create its image internationally. The company will continue to develop its environmental policy and continue to act towards its partners, suppliers and customers in this respect.
5. Part of the company’s effort to create a positive image will be participation in professional conferences and trade fairs, regular communication to the professional public by means of articles and press releases, and open days for the general public.
Minimal binding extent of information in compliance with Edict No. 500/2002 of the Collection of Laws | BALANCE SHEET in full format | Business or other name of accounting unit Visual Connection a.s. |
The accounting unit shall forward 1 copy of its financial statement, together with one copy of its income tax declaration, to the competent Inland Revenue office. | as of 31 March 2008 | Registered office or permanent address of accounting unit and place of business if differing from permanent address |
(in thousands of CZK) | Praha 3 130 00 | |
Slezská 2526/113 |
Year | Month | Identification Number | ||
2008 | 03 | 18630758 |
Prior Accounting | |||||||||||||||
Line | Current accounting period | period | |||||||||||||
Identification | ASSETS | no. | Gross | Correction | Net | Net | |||||||||
a | b | c | 1 | 2 | 3 | 4 | |||||||||
TOTAL ASSETS | 001 | 127 796 | - 16 892 | 110 904 | 61 017 | ||||||||||
A. | Receivables for subscriptions | 002 | 1 | 1 | |||||||||||
B. | Fixed assets | 003 | 27 914 | - 16 615 | 11 299 | 2 916 | |||||||||
B. | I. | Intangible fixed assets | 004 | 2 481 | - 1 385 | 1 096 | 92 | ||||||||
B. | I. | 1. | Incorporation expenses | 005 | |||||||||||
2. | Intangible results of research and development | 006 | |||||||||||||
3. | Software | 007 | 2 481 | - 1 385 | 1 096 | 92 | |||||||||
4. | Valuable rights | 008 | |||||||||||||
5. | Goodwill | 009 | |||||||||||||
6. | Other intangible fixed assets | 010 | |||||||||||||
7. | Intangible fixed assets under construction | 011 | |||||||||||||
8. | Advance payments for intangible fixed assets | 012 | |||||||||||||
B. | II. | Tangible fixed assets | 013 | 25 281 | - 15 230 | 10 051 | 2 672 | ||||||||
B. | II. | 1. | Land | 014 | |||||||||||
2. | Buildings, halls and structures | 015 | 75 | - 23 | 52 | 52 | |||||||||
3. | Movable fixed assets | 016 | 23 006 | - 15 192 | 7 814 | 1 212 | |||||||||
4. | Perennial crops | 017 | |||||||||||||
5. | Breeding and draught animals | 018 | |||||||||||||
6. | Other tangible fixed assets | 019 | 2 200 | - 15 | 2 185 | 1 408 | |||||||||
7. | Tangible fixed assets under construction | 020 | |||||||||||||
8. | Advance payments for tangible fixed assets | 021 | |||||||||||||
9. | Adjustments to acquired assets | 022 | |||||||||||||
B. | III. | Financial investments | 023 | 152 | 152 | 152 | |||||||||
B. | III. | 1. | Shares and ownership interests with controlling influence in enterprises | 024 | 152 | 152 | 152 | ||||||||
2. | Shares and ownership interests with substantial influence in enterprises | 025 | |||||||||||||
3. | Other securities and ownership interests | 026 | |||||||||||||
4. | Intercompany loans | 027 | |||||||||||||
5. | Other financial investments | 028 | |||||||||||||
6. | Financial investments in progress | 029 | |||||||||||||
7. | Advance payments for financial investments | 030 |
Print (c) Atlas consulting spol. s r.o. Ostrava
Official stamp: | ||
Inland Revenue Office Prague 3 | allocated | |
Ref. No.: | ||
Presented personally 12 Sept. 2008 | revenue stamps | |
Date: | ||
Attachments | signs |
Prior accounting | |||||||||||||||
Line | Current accounting period | period | |||||||||||||
Identification | ASSETS | no. | Gross | Correction | Net | Net | |||||||||
a | b | c | 1 | 2 | 3 | 4 | |||||||||
C. | Current assets | 031 | 99 373 | - 277 | 99 096 | 57 423 | |||||||||
C. | I. | Inventory | 032 | 50 630 | 50 630 | 30 127 | |||||||||
C. | I. | 1. | Materials | 033 | |||||||||||
2. | Work-in-progress and semi-finished products | 034 | 16 100 | 16 100 | 7 800 | ||||||||||
3. | Finished products | 035 | |||||||||||||
4. | Animals | 036 | |||||||||||||
5. | Merchandise | 037 | 34 530 | 34 530 | 22 327 | ||||||||||
6. | Advance payments for inventory | 038 | |||||||||||||
C. | II. | Long-term receivables | 039 | ||||||||||||
C | II. | 1 | Trade receivables | 040 | |||||||||||
2. | Receivables from companies with controlling influence | 041 | |||||||||||||
3. | Receivables from companies with substantial influence | 042 | |||||||||||||
4. | Receivables from partners and participants in association | 043 | |||||||||||||
5. | Long-term advances paid | 044 | |||||||||||||
6. | Asset reserves | 045 | |||||||||||||
7. | Other receivables | 046 | |||||||||||||
8. | Deferred tax receivable | 047 | |||||||||||||
C. | III. | Short-term receivables | 048 | 47 231 | - 277 | 46 954 | 39 556 | ||||||||
C. | III. | 1. | Trade receivables | 049 | 36 495 | - 277 | 36 218 | 35 807 | |||||||
2. | Receivables from companies with controlling influence | 050 | |||||||||||||
3. | Receivables from companies with substantial influence | 051 | |||||||||||||
4. | Receivables from partners and participants in association | 052 | 1 035 | 1 035 | 635 | ||||||||||
5. | Social security and health insurance | 053 | |||||||||||||
6. | Due from state-tax receivables | 054 | 2 571 | 2 571 | |||||||||||
7. | Short-term advances paid | 055 | 6 085 | 6 085 | 3 114 | ||||||||||
8. | Asset reserves | 056 | |||||||||||||
9. | Other receivables | 057 | 1 045 | 1 045 | |||||||||||
C. | IV. | Short-term financial assets | 058 | 1 512 | 1 512 | - 12 260 | |||||||||
C. | IV. | 1. | Cash | 059 | 258 | 258 | 1 245 | ||||||||
2. | Bank accounts | 060 | 1 254 | 1 254 | - 13 505 | ||||||||||
3. | Short-term securities and interests | 061 | |||||||||||||
4. | Short-term financial assets in progress | 062 | |||||||||||||
D. | I | . | Accruals | 063 | 508 | 508 | 678 | ||||||||
D. | I. | 1. | Deferred expenses | 064 | 508 | 508 | 678 | ||||||||
2. | Complex deferred expenses | 065 | |||||||||||||
3. | Accrued revenues | 066 |
Print (c) Atlas consulting spol. s r.o. Ostrava
Line | Accounting period | ||||||||||
Identification | LIABILITIES | no. | Current | Prior | |||||||
a | b | c | 1 | 2 | |||||||
TOTAL LIABILITIES | 067 | 110 904 | 61 017 | ||||||||
A. | Equity | 068 | 12 251 | 13 481 | |||||||
A. | I. | Registered capital | 069 | 10 000 | 10 000 | ||||||
A. | I. | 1. | Registered capital | 070 | 10 000 | 10 000 | |||||
2. | Own shares and own business interests (-) | 071 | |||||||||
3. | Changes in registered capital | 072 | |||||||||
A. | II. | Capital funds | 073 | ||||||||
A. | II. | 1. | Share premium | 074 | |||||||
2. | Other capital funds | 075 | |||||||||
3. | Gains or losses from revaluation of assets and liabilities | 076 | |||||||||
4. | Gains or losses from revaluation as a result of changes | 077 | |||||||||
A. | III. | Reserve funds, indivisible fund and other funds created from profit | 078 | 793 | 121 | ||||||
A. | III. | 1. | Statutory reserve fund / indivisible fund | 079 | 793 | 121 | |||||
2. | Statutory and other funds | 080 | |||||||||
A. | IV. | Profit (loss) of previous years | 081 | 335 | |||||||
A. | IV. | 1. | Retained earnings from previous years | 082 | 335 | ||||||
2. | Accumulated losses from previous years | 083 | |||||||||
A. | V. | Profit (loss) of current period | 084 | 1 123 | 3 360 | ||||||
B. | Not-own capital | 085 | 97 967 | 47 536 | |||||||
B. | I. | Reserves | 086 | ||||||||
B. | I. | 1. | Reserves according to special legal regulations | 087 | |||||||
2. | Reserves for pensions and similar liabilities | 088 | |||||||||
3. | Income tax reserve | 089 | |||||||||
4. | Other reserves | 090 | |||||||||
B. | II. | Long-term payables | 091 | 176 | 356 | ||||||
B. | II. | 1. | Trade payables | 092 | |||||||
2. | Payables to companies with controlling influence | 093 | |||||||||
3. | Payables to companies with substantial influence | 094 | |||||||||
4. | Payables to partners and participants in association | 095 | |||||||||
5. | Long-term advances received | 096 | |||||||||
6. | Issued obligations | 097 | |||||||||
7. | Long-term bills of exchange to be paid | 098 | |||||||||
8. | Liability reserves | 099 | |||||||||
9. | Other payables | 100 | 176 | 356 | |||||||
10. | Deferred tax liability | 101 |
Print (c) Atlas consulting spol. s r.o. Ostrava
Line | Accounting period | ||||||||||
Identification | LIABILITIES | no. | Current | Prior | |||||||
a | b | c | 1 | 2 | |||||||
B. | III. | Short-term payables | 102 | 48 976 | 28 183 | ||||||
B | III. | 1. | Trade payables | 103 | 27 186 | 20 359 | |||||
2. | Payables to companies with controlling influence | 104 | |||||||||
3. | Payables to companies with substantial influence | 105 | 152 | 152 | |||||||
4. | Payables to partners and participants in association | 106 | |||||||||
5. | Payables to employees | 107 | 1 587 | 528 | |||||||
6. | Payables to social security and health insurance | 108 | 521 | 323 | |||||||
7. | Due to state-taxes and subsidies | 109 | 2 541 | ||||||||
8. | Short-term advances accepted | 110 | 18 834 | 3 510 | |||||||
9. | Obligations issued | 111 | |||||||||
10. | Liability reserves | 112 | 500 | 500 | |||||||
11. | Other payables | 113 | 196 | 270 | |||||||
B. | IV. | Bank loans and assistance | 114 | 48 815 | 18 997 | ||||||
B. | IV. | 1. | Long-term bank loans | 115 | 751 | 18 997 | |||||
2. | Short-term bank loans | 116 | 48 064 | ||||||||
3. | Short-term financial assistance | 117 | |||||||||
C. | I. | Accruals | 118 | 686 | |||||||
C. | I. | 1. | Accrued expenses | 119 | 142 | ||||||
2. | Deferred revenues | 120 | 544 |
Official stamp:
Ing. Jiří Fišer
Auditor No. 1026
Ostrá 299, Praha 9
CHAMBER OF AUDITORS
illegible signature
Produced on: 5 Sept. 2008 | Signature of statutory body of accounting unit or signature of private individual - accounting unit |
Legal form of accounting unit: stock corporation | Registered business activities: purchase of goods to be resold | Legal form of accounting unit: stock corporation |
Print (c) Atlas consulting spol. s r.o. Ostrava
Featuring the minimal binding extent of information in compliance with Edict No. 500/2002 Coll. of the Ministry of Finance | PROFIT AND LOSS STATEMENT in full format | Business or other name of accounting unit Visual Connection a.s. |
The accounting unit shall forward 1 copy of its financial statement, together with one copy of its income tax declaration, to the competent Inland Revenue office. | as of 31 March 2008 (in thousands of CZK) | Registered office or permanent address of accounting unit and place of business if differing from permanent address Praha 3 130 00 Slezská 2526/113 |
Year | Month | Identification Number | ||
2008 | 03 | 18630758 |
Official stamp: | ||
Inland Revenue Office Prague 3 | allocated | |
Ref. No.: | ||
Presented personally 12 Sept. 2008 | revenue stamps | |
Date: | ||
Attachments | signs |
Line | Accounting period | ||||||||||
Identification | TEXT | no. | Current | Prior | |||||||
a | b | c | 1 | 2 | |||||||
I. | Revenues from merchandise | 01 | 135 434 | 144 925 | |||||||
A. | Cost of goods sold | 02 | 85 995 | 121 601 | |||||||
+ | Sales margin | 03 | 49 439 | 23 324 | |||||||
II. | Production | 04 | 67 890 | 44 047 | |||||||
II. | 1. | Revenues from own products and services | 05 | 58 962 | 36 247 | ||||||
2. | Change of inventory of own production | 06 | |||||||||
3. | Capitalisation | 07 | 8 928 | 7 800 | |||||||
B. | Production consumption | 08 | 93 823 | 50 422 | |||||||
B. | 1. | Materials and energy consumption | 09 | 6 936 | 3 500 | ||||||
2. | Services | 10 | 86 887 | 46 922 | |||||||
+ | Added value | 11 | 23 506 | 16 949 | |||||||
C. | Personnel expenses | 12 | 18 268 | 9 655 | |||||||
C. | 1. | Wages and salaries | 13 | 13 977 | 7 218 | ||||||
2. | Remuneration of board and coop members | 14 | |||||||||
3. | Social security expenses | 15 | 3 967 | 2 250 | |||||||
4. | Social expenses | 16 | 324 | 187 | |||||||
D. | Taxes and fees | 17 | 86 | 164 | |||||||
E. | Depreciation of long-term tangible and intangible assets | 18 | 1 557 | 947 | |||||||
III. | Proceeds from disposals of fixed assets and materials | 19 | 475 | ||||||||
III. | 1. | Proceeds from disposals of long-term assets | 20 | 475 | |||||||
2. | Proceeds from disposals of materials | 21 | |||||||||
F. | Net book value of fixed assets and materials sold | 22 | 475 | ||||||||
F. | 1. | Net book value of fixed assets sold | 23 | 475 | |||||||
2. | Materials sold | 24 | |||||||||
G. | Change in reserves and adjustments in operating area and complex expenses | 25 | |||||||||
IV. | Other operating revenues | 26 | 2 899 | 2 877 | |||||||
H. | Other operating expenses | 27 | 738 | 963 | |||||||
V. | V. | Transfer of operating revenues | 28 | ||||||||
I. | Transfer of operating expenses | 29 | |||||||||
* | Operating profit (loss) | 30 | 5756 | 8 097 |
Print (c) Atlas consulting spol. s r.o. Ostrava
Line | Accounting period | ||||||||||
Identification | TEXT | no. | Current | Prior | |||||||
a | b | c | 1 | 2 | |||||||
VI. | Proceeds from sales of securities and ownership interests | 31 | |||||||||
J | Securities and ownership interests sold | 32 | |||||||||
VI. | Revenues from long-term financial assets | 33 | |||||||||
VI. | 1. | Revenues from intercompany securities and ownership interests | 34 | ||||||||
2. | Revenues from other long-term securities and ownership interests | 35 | |||||||||
3. | Revenues from other long-term financial assets | 36 | |||||||||
VII. | Revenues from short-term financial assets | 37 | |||||||||
K | Cost of financial assets | 38 | |||||||||
IX. | Revenues from revaluation of securities and derivatives | 39 | |||||||||
L. | Cost of revaluation of securities and derivatives | 40 | |||||||||
M. | Change in reserves and adjustments in financial area | 41 | |||||||||
X. | Interest revenue | 42 | 27 | 15 | |||||||
N. | Interest expense | 43 | 1 950 | 1 955 | |||||||
XI. | Other financial revenues | 44 | 1 409 | 2 721 | |||||||
O. | Other financial expenses | 45 | 2 789 | 3 139 | |||||||
XII. | Transfer of financial revenues | 46 | |||||||||
P. | Transfer of financial expenses | 47 | |||||||||
* | Profit (loss) from financial operations | 48 | - 3 303 | - 2 358 | |||||||
Q | Income tax on ordinary income | 49 | 1 330 | 2 379 | |||||||
Q | 1. | - due | 50 | 1 330 | 2 379 | ||||||
2. | - deferred | 51 | |||||||||
** | Ordinary income | 52 | 1 123 | 3 360 | |||||||
XIII. | Extraordinary revenues | 53 | |||||||||
R. | Extraordinary expenses | 54 | |||||||||
S. | Income tax on extraordinary income | 55 | |||||||||
S. | 1. | - due | 56 | ||||||||
2. | - deferred | 57 | |||||||||
* | Extraordinary income | 58 | |||||||||
T. | Transfer of profit or loss to partners | 59 | |||||||||
*** | Profit (loss) of current accounting period | 60 | 1 123 | 3 360 |
Produced on: 5 Sept. 2008 | Signature of statutory body of accounting unit or signature of private individual - accounting unit |
Legal form of accounting unit: stock corporation | Registered business activities: purchase of goods to be resold | Note: |
Print (c) Atlas consulting spol. s r.o. Ostrava
APPENDIX TO THE ANNUAL REPORT
for the period 1 April 2007 – 31 March 2008
1. Basic Identification of the Accounting Unit
Name: | Visual Connection, a.s. |
Registered office: | Praha 3, Slezská 2526/113 |
Legal form: | Stock corporation |
Registered business activities: | Purchase of goods to be resold |
Provision of software |
Inland Revenue Office Prague 3 | allocated |
Ref. No.: | |
Presented personally 12 Sept. 2008 | revenue stamps |
Attachments | signs |
Date of establishment of the Accounting Unit: 8 August 1991
Personnel holding more than 20% of the Accounting Unit’s basic capital:
Name | Title | Share | Amount | |||
Changes registered in trade and commercial register in the course of the accounting period under review:
Type of Change | Date of Change (Registration) | |
none | ||
Organisational structure of the Accounting Unit and its principal changes realised in the accounting period under review:
The following changes were realised in the accounting period under review:
Title | Date of Change | Original Member | New Member | |||
2. Proprietary or contractual interests of the Accounting Unit in other companies
Proprietary interests exceeding 20%
Company Name | Registered Office | Share of Basic Capital | Amount of Basic Capital | |||
VISUAL CONNECTION, spol. s r.o. | Bratislava, Seberiniho 4B, Slovakia | 100.00% | SKK 200,000.00 | |||
Agreements and contracts concluded among associates (shareholders) guaranteeing decisive rights:
3. Employees, Personnel Costs
Total Number of Employees | Thereof Mangers | ||||||||||
Current Accounting Period | Prior Accounting Period | Current Accounting Period | Prior Accounting Period | ||||||||
Average number of employees | 22 | 19 | |||||||||
Wage and salary costs | 13 977 | 7 218 | |||||||||
Remuneration for members of statutory bodies | |||||||||||
Remuneration for members of supervisory bodies | |||||||||||
Social security expenses | 4 294 | 2 437 | |||||||||
Social expenses | |||||||||||
Total personnel costs | 18 271 | 9 655 |
(in thousands of CZK)
4. Provided Financial and other Benefits
Financial benefits and benefits in kind provided for current members of statutory bodies | |||||||||||
Benefit Type | Statutory Bodies | Managerial Bodies | Supervisory Bodies | ||||||||
Current Period | Prior Period | Current Period | Prior Period | Current Period | Prior Period | ||||||
Loans and credits | |||||||||||
Provided guarantees | |||||||||||
Additional retirement benefits | |||||||||||
Free use of company vehicles | |||||||||||
Other | |||||||||||
Total |
Financial benefits and benefits in kind provided for former members of statutory bodies | |||||||||||
Benefit Type | Statutory Bodies | Managerial Bodies | Supervisory Bodies | ||||||||
Current Period | Prior Period | Current Period | Prior Period | Current Period | Prior Period | ||||||
Loans and credits | |||||||||||
Provided guarantees | |||||||||||
Additional retirement benefits | |||||||||||
Free use of company vehicles | |||||||||||
Other | |||||||||||
Total |
5. Accounting Methods, General Accounting Principles and Evaluation Methodology
The company’s Financial Statement has been produced in compliance with Act. No. 563/1991 Coll. on accounting, and in compliance with the edict of the Ministry of Finance of the Czech Republic specifying the content of financial statements and the procedures to be used for accounting purposes by commercial subjects.
The company’s Financial Statement is being presented for a transitory period preceding economic year extended to 15 months. All current details concern the said extended period, whilst compared to prior period totalling 12 months.
1. Asset Evaluation Methodology
1.1 Evaluation of Inventories
All inventories are entered into accounts in compliance with the A method of asset evidence.
All inventories released from stock are evaluated in average prices.
All purchased inventories are evaluated in compliance with their real acquisition price, including:
- acquisition costs
- additional acquisition expenses:
- customs duty
- transportation costs
1.2 Evaluation of Tangible and Intangible Assets Produced through Own Activities
none
1.3 Evaluation of Securities and Proprietary Interests
none
1.4 Evaluation of Increase of the Number of Drought and Breeding Animals
none
2. Calculation of the Reproduction Cost of Acquisition
Type of Asset Evaluated by the Reproduction Cost of Acquisition during the Accounting Period under Review | Calculation Method of the Reproduction Cost of Acquisition | |
3. Changes in Evaluation, Depreciation and Accounting Procedures
No changes took place during the accounting period under review.
4. Provisions to Assets
No provisions to assets were created.
5. Depreciation
The Accounting Unit’s plan of accounting depreciation of tangible fixed assets has been produced in compliance with its internal regulation. It is based on methodology used to calculate tax depreciation (for all assets acquired and activated as of 1 Jan.). The Accounting Unit’s accounting and tax depreciation are the same.
The Accounting Unit’s plan of accounting depreciation of intangible fixed assets has been produced in compliance with Art. 28, Sec. 3, Act No. 563/1991 Coll. on accounting. It is based on the principle of full depreciation of each asset entered into books 3 years after its acquisition at the latest. The Accounting Unit’s accounting and tax depreciation are the same.
Tax depreciation – methodology:
- accelerated depreciation
Depreciation of small fixed assets:
- all assets acquired for up to CZK 15,000.00 are recorded in account no. 501
- all assets acquired for CZK 15,000.00 – CZK 40,000.00 are subject to 24-month depreciation
- all assets acquired for up to CZK 40,000.00 are subject to depreciation in accordance with individual depreciation categories
6. Conversion of Foreign Currencies to CZK
All foreign currencies are converted in accordance with the actual daily rates of the Czech National Bank.
6. Commentary on the Balance Sheet and the Profit and Loss Statement
1. Items significantly affecting the assessment of material and financial situation of the Accounting Unit
none
2. Additional assessment of income tax for past accounting periods
Additional Assessment – Reasons | Amount | |
3. Deferred tax for past accounting periods
Deferred Tax | Amount | |
4. Reserves
No reserves have been created.
Prior Period | Current Period | |||||||||||||
Type of reserve | Balance as of 1 Jan. | Additions to reserves | Utilisation of reserves | Balance as of 12 Dec. | Additions to reserves | Utilisation of reserves | Balance as of 12 Dec. | |||||||
Statutory reserves | ||||||||||||||
Other reserves | ||||||||||||||
Total |
(in thousands of CZK)
5. Review of Bank Loans
Year of Maturity | Total Amount of Loans | |||
2008 | 33 904 | |||
2009 | 369 | |||
2010 | 150 | |||
TOTAL | 34 247 |
(in thousands of CZK)
Creditor | Year of Maturity | Amount | Interest | Guarantor | |||||||
eBanka | 2008 | 33 340 | 1 950 | ||||||||
ČSGBL | 2008 | 640 | 115 | ||||||||
ČSGBL | 2009 | 166 | 41 | ||||||||
ČSGBL | 2009 | 51 | 14 | ||||||||
ČSGBL | 2010 | 284 | 49 | ||||||||
ČSGBL | 2010 | 248 | 51 |
(in thousands of CZK)
6. Review of Received Subsidies for Investment and Operational Purposes
Purpose of Subsidy | Provider | Current Period | Prior Period | ||||
ISO Certificate | ČMZRB | 48 | |||||
AVIT for world | Czech Trade | 713 |
(in thousands of CZK)
7. Information on Assets and Liabilities
1. Incorporation Expenses
Current Period | ||||||
Acquisition Date | Amount | Description | ||||
Prior Period | ||||||
Acquisition Date | Amount | Description | ||||
2. Overdue Receivables
Number of Days | Current Period | Prior Period | ||||||||||
Trade Receivables | Other Receivables | Trade Receivables | Other Receivables | |||||||||
Up to 30 | 1 146 | 2 999 | ||||||||||
30 – 60 | 2 399 | 9 582 | ||||||||||
60 – 90 | 402 | 3 013 | ||||||||||
90 – 180 | 569 | 462 | ||||||||||
180 and over | 1 285 | 3 844 |
(in thousands of CZK)
3. Overdue Payables
Number of Days | Current Period | Prior Period | ||||||||||
Trade Receivables | Other Receivables | Trade Receivables | Other Receivables | |||||||||
Up to 30 | 1 665 | 4 997 | ||||||||||
30 – 60 | 4 148 | 988 | ||||||||||
60 – 90 | 107 | 217 | ||||||||||
90 – 180 | 588 | 0 | ||||||||||
180 and over | 1 753 | 1 335 |
(in thousands of CZK)
4. Receivables Whose Maturity Exceeds 5 Years
none
Maturity | Current Period | Prior Period | ||||||||||
Trade Receivables | Other Receivables | Trade Receivables | Other Receivables | |||||||||
5. Payables Whose Maturity Exceeds 5 Years
none
Maturity | Current Period | Prior Period | ||||||||||
Trade Receivables | Other Receivables | Trade Receivables | Other Receivables | |||||||||
6. Intangible Fixed Assets
Asset Group | Acquisition Price | Amortisation | Net Book Value | Increase | Decrease | |||||||||||||||||||||||||||
Current Period | Prior Period | Current Period | Prior Period | Current Period | Prior Period | |||||||||||||||||||||||||||
Software | 1 320 628 | 1 075 642 | - 248 583 | - 984 022 | 1 163 665 | 91 620 | 1 320 628 | - 248 583 | ||||||||||||||||||||||||
Valuable rights | ||||||||||||||||||||||||||||||||
Results of research and development | ||||||||||||||||||||||||||||||||
Other intangible fixed assets | 84 422 | - 84 422 | ||||||||||||||||||||||||||||||
Intangible fixed assets under construction |
7. Tangible Fixed Assets Acquired Through Financial Leasing
(Financial leasing with subsequent purchase of its subject based on individual contracts; all prices are exclusive of VAT, except for cars. Specified either separately for each item or summarily for each group/class of fixed assets)
Current Accounting Period | |||||||||||||||||||||||||
Payable | |||||||||||||||||||||||||
Beginning | Duration | Description | Total Instalments | First Instalment | Paid Instalments | > 1 year | < 1 year | ||||||||||||||||||
5 March 2008 | 60 | Jaguar | 1 460 | 6 | 30 | 291 | 1 139 | ||||||||||||||||||
22 Jan. 2008 | 60 | Mitsubishi | 1 582 | 30 | 108 | 310 | 1 164 | ||||||||||||||||||
5 Dec. 2007 | 36 | Camcorder | 1 431 | 0 | 159 | 477 | 795 | ||||||||||||||||||
5 Nov. 2007 | 36 | Camcorder | 1 397 | 0 | 194 | 465 | 738 | ||||||||||||||||||
1 Nov. 2007 | 60 | Slate 1000 | 8 474 | 0 | 706 | 1 694 | 6 074 | ||||||||||||||||||
12 Oct. 2007 | 36 | Set of AV facilities | 4 097 | 0 | 683 | 1 365 | 2 049 | ||||||||||||||||||
1 Sep. 2007 | 60 | Škoda Octavia | 1 068 | 0 | 124 | 213 | 731 | ||||||||||||||||||
30 March 2007 | 36 | Omneon | 1 417 | 0 | 511 | 472 | 434 | ||||||||||||||||||
26 Jan. 2007 | 60 | Hummer | 3 071 | 0 | 768 | 614 | 1 689 | ||||||||||||||||||
22 Dec. 2006 | 60 | Škoda Octavia | 1 039 | 0 | 276 | 207 | 556 | ||||||||||||||||||
11 Dec. 2006 | 60 | Mercedes Benz | 1 002 | 0 | 267 | 200 | 535 | ||||||||||||||||||
6 Nov. 2006 | 60 | Škoda Roomster | 752 | 0 | 213 | 150 | 389 | ||||||||||||||||||
25 Sep. 2006 | 60 | Škoda Octavia | 1 193 | 0 | 377 | 238 | 578 | ||||||||||||||||||
25 Sep. 2006 | 60 | Škoda Octavia | 1 193 | 0 | 377 | 238 | 578 | ||||||||||||||||||
18 Dec. 2006 | 48 | Cysto Catalyst | 832 | 0 | 277 | 208 | 347 | ||||||||||||||||||
5 Dec. 2006 | 36 | Alfa Romeo | 856 | 0 | 380 | 285 | 191 | ||||||||||||||||||
25 Sep. 2006 | 36 | Audio Mixer | 1 139 | 0 | 600 | 379 | 160 | ||||||||||||||||||
17 March 2006 | 36 | DS NITRIS | 4 431 | 0 | 3 077 | 1 354 | 0 | ||||||||||||||||||
18 Jan. 2006 | 36 | VW Caddy | 712 | 56 | 547 | 165 | 0 | ||||||||||||||||||
5 Oct. 2006 | 36 | PDW-F350L | 1 019 | 0 | 764 | 255 | 0 |
Prior Accounting Period | |||||||||||||||||||||||||
Payable | |||||||||||||||||||||||||
Beginning | Duration | Description | Total Instalments | First Instalment | Paid Instalments | > 1 year | < 1 year | ||||||||||||||||||
26 Jan. 2007 | 60 | Hummer | 3 071 | 0 | 154 | 614 | 2 303 | ||||||||||||||||||
22 Dec. 2006 | 60 | Škoda Octavia | 1 039 | 0 | 69 | 207 | 763 | ||||||||||||||||||
11 Dec. 2006 | 60 | Mercedes Benz | 1 002 | 0 | 67 | 200 | 735 | ||||||||||||||||||
6 Nov. 2006 | 60 | Škoda Roomster | 752 | 0 | 63 | 150 | 539 | ||||||||||||||||||
25 Sep. 2006 | 60 | Škoda Octavia | 1 193 | 0 | 139 | 238 | 816 | ||||||||||||||||||
25 Sep. 2006 | 60 | Škoda Octavia | 1 193 | 0 | 139 | 238 | 816 | ||||||||||||||||||
18 Dec. 2006 | 48 | Cysto Catalyst | 832 | 0 | 69 | 208 | 555 | ||||||||||||||||||
5 Dec. 2006 | 36 | Alfa Romeo | 856 | 0 | 95 | 285 | 476 | ||||||||||||||||||
25 Sep. 2006 | 36 | Audio Mixer | 1 139 | 0 | 221 | 379 | 539 | ||||||||||||||||||
17 March 2006 | 36 | DS NITRIS | 4 431 | 0 | 1 600 | 1 477 | 1 354 | ||||||||||||||||||
18 Jan. 2006 | 36 | VW Caddy | 712 | 56 | 329 | 218 | 165 | ||||||||||||||||||
5 Oct. 2006 | 36 | PDW-F350L | 1 019 | 0 | 255 | 509 | 255 | ||||||||||||||||||
4 March 2005 | 36 | Omneon | 1 138 | 104 | 821 | 317 | 0 | ||||||||||||||||||
20 Jan. 2005 | 36 | Sony Audio Control Panel | 3 914 | 358 | 3 024 | 890 | 0 | ||||||||||||||||||
3 Dec. 2004 | 36 | MCC Smart | 219 | 38 | 178 | 41 | 0 | ||||||||||||||||||
30 July 2004 | 36 | Škoda Octavia | 1 012 | 126 | 937 | 75 | 0 | ||||||||||||||||||
30 June 2004 | 36 | Škoda Octavia | 995 | 120 | 945 | 50 | 0 | ||||||||||||||||||
14 May 2004 | 36 | Škoda Fabia | 368 | 46 | 358 | 10 | 0 |
8. Tangible Fixed Assets Acquired Through Operational Leasing
Current Period | |||||||
Beginning | Duration | Description | Annual Leasing Charge | ||||
Prior Period | |||||||
Beginning | Duration | Description | Annual Leasing Charge | ||||
9. Review of Tangible Assets Subject to Right of Lien
Current Period | |||||||||||
Description | Book Value | Security Form | Purpose | Duration | Obligation | ||||||
Prior Period | |||||||||||
Description | Book Value | Security Form | Purpose | Duration | Obligation | ||||||
10. Assets Not Included in the Balance Sheet
(in acquisition prices)
Current Period | Prior Period | ||||||
Description | Acquisition Price | Description | Acquisition Price | ||||
Total | none | Total |
11. Obligations Not Entered into Books and Not Included in the Balance Sheet
(guarantees accepted on behalf of another company in connection with bank loans, letters of credit or bills of exchange, unless covered by accounting reserves)
Type of Guarantee | Recipient | Current Period | Prior Period | ||||
12. Review of Assets Whose Market Value and Accounting Evaluation Differ Significantly
Current Period | |||||
Assets | Accounting Evaluation | Market Value | |||
Prior Period | ||||||
Assets | Accounting Evaluation | Market Value | ||||
13. Investment Securities and Shares
Review of securities and shares held in the Czech Republic and abroad (controlling and substantial interests).
Current Period | |||||||||||||
Company | Registered Office | Total Interest | Interest in % | Number of Shares / Nominal Value | Dividends in Thousands of CZK | Profit/Loss of Current Year | |||||||
VISUAL CONNECTION spol. s r.o. | Bratislava, Seberiniho 4B, Slovakia | SKK 200 000.00 | 100% | ||||||||||
Prior Period | |||||||||||||
Company | Registered Office | Total Interest | Interest in % | Number of Shares / Nominal Value | Dividends in Thousands of CZK | Profit/Loss of Current Year | |||||||
14. Review of Receivables and Payables Concerning Group Members
Receivables Concerning Group Members | |||||||||||
Current Period | Prior Period | ||||||||||
Debtor | Amount | Maturity | Debtor | Amount | Maturity | ||||||
Payables Concerning Group Members | |||||||||||
Current Period | Prior Period | ||||||||||
Debtor | Amount | Maturity | Debtor | Amount | Maturity | ||||||
15. Information on Receivables and Payables Resulting from Right of Lien and Security Rights
none
Current Period | Prior Period | |||
Receivables subject to right of lien | ||||
Payables subject to right of lien | ||||
Other monitored payables (financial and non-financial) |
16. Extraordinary Events Occurred After the Date of Financial Statement
Date | Change | Effect on Balance Sheet Details | Effect on Profit and Loss Statement Details | In Financial Means | ||||
none |
8. Basic Capital
1. Shares Issued during the Accounting Period under Review
Type of Share | Nominal Value | Evaluation | ||
8 bearer shares | CZK 1 000 000 each | 8 000 000 | ||
80 personal shares | CZK 25 000 each | 2 000 000 | ||
2. Exchangeable Obligations
Type of Obligation | Nominal Value | Evaluation | ||
3. Changes in Basic Capital
Current Period | Prior Period | |||
Ordinary stock | 10 000 | 10 000 | ||
Indivisible fund | ||||
Statutory and other funds | 793 | 121 | ||
Retained profit of past periods | 335 | |||
Unsettled loss of past periods | ||||
Profit/loss of current period | 1 123 | 3 798 | ||
Total basic capital | 12 251 | 13 919 |
(in thousands of CZK)
Profit distribution method of past periods: | |||
- Profit share of Tomáš Petrů | CZK | 1 176 471.00 | |
- Profit share of Jakub Vaněk | CZK | 1 176 471.00 | |
- Reserve fund | CZK | 672 006.00 | |
- Retained profit | CZK | 335 080.20 |
Loss settlement method of past periods:
Proposed profit distribution of current period:
4. Equity
Limited liability company last year
Current Period | |||||||
Associate | Share | Unsettled Investment | Maturity | ||||
Prior Period | |||||||
Associate | Share | Unsettled Investment | Maturity | ||||
9. Revenues from Sales of Products, Goods and Services
Current Period | Prior Period | ||||||||||||
Total | Czech Rep. | Abroad | Total | Czech Rep. | Abroad | ||||||||
Revenues from sales of goods | 135 434 | 129 833 | 5 601 | 144 925 | 139 904 | 5 021 | |||||||
Revenues from sales of own production | |||||||||||||
Revenues from sales of services | 58 962 | 55 898 | 3 064 | 36 247 | 34 557 | 1 690 | |||||||
Utilisation of reserves | |||||||||||||
Other revenues | 13 262 | 13 262 | 0 | 13 888 | 13 888 | 0 | |||||||
Total | 207 658 | 198 993 | 8 665 | 195 060 | 188 349 | 6 711 |
(in thousands of CZK)
Produced on: 5 Sept. 2008 | Produced by: Jitka Popková | Signature of statutory representative: illegible signature |
Note XX Summary of significant difference between Czech GAAP and U.S. GAAP
The annual financial statements included herein of Visual Connection, a.s. were prepared in accordance with accounting principles generally accepted in the Czech Republic (Czech GAAP) which differ in certain significant respects from U.S. GAAP, as described below.
1. Leases
Under U.S GAAP, a lease is either an operating lease or a capital lease. An operating lease records no asset or liability on the financial statements, the amount is expensed as incurred. A capital lease is recorded as both an asset and a liability on the financial statements, at the present value of the lease payments. The basic criteria for capitalization of a lease by lessee are as follows
• The lessor transfers ownership of the asset to the lessee at the end of the lease term.
• A bargain purchase option is given to the lessee. This is an option that allows the lessee, upon termination of the lease, to purchase the leased asset at a price significantly lower than the expected fair market value of the asset.
• The life of the lease is equal to or greater than 75% of the economic life of the asset.
• The present value of the minimum lease payments is equal to or greater than 90% of the fair market value of leased property.
In accordance with Czech GAAP, the Company records all leases as operating leases with no asset or liability on the financial statements and the amount is expensed as incurred.
Official stamp: |
Visual Connection, a.s. |
Slezská 2526/113 |
130 00 Praha 3 |
VAT: CZ18630758 |