FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a or 15d-16 of
the Securities Exchange Act of 1934
Slovak Statutory Company Financial Statements for the year ended
December 31, 2002
EuroTel Bratislava, a.s.
(Exact name of co-registrant and parent guarantor as specified in its Articles of Association)
Vajnorska 100/A
831 03 Bratislava
Slovak Republic
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F x Form 40-F ¨
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ¨ No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with rule 12g3-2(b):82 N/A
PricewaterhouseCoopers Slovensko, s.r.o. Hviezdoslavovo nám. 20 815 32 Bratislava Slovak Republic Telephone +421 (0) 2 5441 4101 Facsimile +421 (0) 2 5441 4102 |
REPORT OF INDEPENDENT AUDITORS
To the shareholders of EuroTel Bratislava, a.s.:
| 1 | We have audited the accompanying financial statements of EuroTel Bratislava, a.s. for the year ended 31 December 2002. Our audit has been carried out in accordance with Slovak auditing guidelines issued by the Slovak Chamber of Auditors and with International Standards on Auditing. |
| 2 | The Board of directors of the Company are responsible for the preparation of the financial statements and for maintaining accounting records that are complete, supportable and accurate in accordance with relevant laws of the Slovak Republic. Our responsibility is to express an opinion on these financial statements based on the results of our audit. |
| 3 | Our audit was planned and performed so as to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examination, on a test basis, of evidence supporting the amounts and disclosures in the financial statements. An audit also includes an assessment of the accounting principles applied and significant estimates made by the Company’s management, and an evaluation of the overall presentation of those financial statements. We believe that our audit provides a reasonable basis for our opinion. |
| 4 | In our opinion, the accompanying financial statements present fairly, in all material respects, the assets, liabilities, equity and the financial position of EuroTel Bratislava, a.s. at 31 December 2002 and the results of its operations for the year then ended in accordance with the Accounting Act of the Slovak Republic. |
Bratislava, 3 March 2003
PricewaterhouseCoopers Slovensko, s.r.o. | Mária Frühwaldová | |||
SKAU licence No.: 161 | SKAU Decree No.: 047 |
VAT Reg. No. of PricewaterhouseCoopers Slovensko, s.r.o. (DIČ) 35739347/600
Spoločnost’ je zapísaná v Obchodnom registri Okresného súdu Bratislava 1, pod vložkou č. 16611/B.
The company is registered in the Commercial Register of Bratislava 1 District Court, ref. No. 16611/B.
Balance Sheet Úč POD 1-01 |
FMFč.j.V/1-31 388/1992 as amended by MF SR č.65/502/1994
Accounting entity files 2 copies of the statements together with
the corporation tax return
with the allocated tax office.
Full Scope Balance Sheet
for the year ended | 31 December | 2002 | ||
(Sk thousands) |
Year | Month | IČO | ||
2002 | 12 | 35705019 | ||
Type of delivery | ||||
x ordinary | ||||
¨ correcting | ||||
¨ supplementary | ||||
¨ repeated | ||||
Accounting entity name
EuroTel Bratislava, a. s.
Entity address:
Street and No.
Vajnorská 100/A
ZIP | Town | |||
83103 | Bratislava | |||
Phone area code | Phone number | Fax number | ||
02 | 49555087 | 49555069 |
Sent on: | Signature of a statutory representative or a person that is the accounting entity: | Person responsible for bookkeeping: (name and signature): | Person responsible for financial statements (name and signature): | |||
19.2.2003 | Michael Günther | |||||
Rahul Narain Saxena | Ivan Bošňák | Adriana Jonásová |
Line a | ASSETS b | Line no. c | Current period | Prior year | ||||||||
Gross value 1 | Adjustment 2 | Net value 3 | Net value 4 | |||||||||
| TOTAL ASSETS I. 02+03+28+55 | 001 | 22,019,727 | 8,262,041 | 13,757,686 | 13,008,711 | |||||||
A. | Receivables for subscribed share capital (353) | 002 | 0 | 0 | 0 | 0 | ||||||
B. | Non-current assets I. 04+12+22 | 003 | 16,610,964 | 7,321,169 | 9,289,795 | 6,598,456 | ||||||
B.I. | Intangible fixed assets – total of I. 05 to 11 | 004 | 5,883,444 | 2,873,438 | 3,010,006 | 903,749 | ||||||
B.I.1. | Startup (Incorporation) expenses (011) – /071, 091A/ | 005 | 0 | 0 | 0 | 0 | ||||||
2. | Research and development (012) – /072, 091A/ | 006 | 0 | 0 | 0 | 0 | ||||||
3. | Software (013) – /073, 091 A/ | 007 | 3,160,196 | 1,966,222 | 1,193,974 | 322,626 | ||||||
4. | Licences, know-how, copyright and other valuable rights (014) – /074, 091A/ | 008 | 1,053,214 | 884,513 | 168,701 | 260,814 | ||||||
5. | Other intangible assets (018, 019) – /078, 079, 091A/ | 009 | 28,125 | 22,703 | 5,422 | 5,523 | ||||||
6. | Intangible fixed assets not yet in use (041) – 093 | 010 | 1,640,509 | 0 | 1,640,509 | 314,786 | ||||||
7. | Advance payments on account of intangible fixed assets (051) – 095A | 011 | 1,400 | 0 | 1,400 | 0 | ||||||
B.II. | Tangible fixed assets – total I. 13 to 21 | 012 | 10,069,627 | 4,447,731 | 5,621,896 | 5,020,112 | ||||||
B.II.1. | Land (031) – 092A | 013 | 148 | 0 | 148 | 148 | ||||||
2. | Buildings, production halls and structures (021) – /081, 092A/ | 014 | 163,399 | 49,665 | 113,734 | 55,803 | ||||||
3. | Machinery, transport vehicles, furniture, fixtures, fittings (022, 023, 024) – /082, 083, 084, 092A/ | 015 | 9,158,845 | 4,338,629 | 4,820,216 | 4,280,984 | ||||||
4. | Permanent crop stands (025) – /085, 092A/ | 016 | 0 | 0 | 0 | 0 | ||||||
5. | Livestock and draught animals (026) – /086, 092A/ | 017 | 0 | 0 | 0 | 0 | ||||||
6. | Other tangible fixed assets (028, 029, 032) - /088, 089, 092A/ | 018 | 95,069 | 59,437 | 35,632 | 20,866 | ||||||
7. | Capital work in progress (042) – 094 | 019 | 622,175 | 0 | 622,175 | 599,298 | ||||||
8. | Advance payments on account of tangible fixed assets (052) – 095A | 020 | 29,991 | 0 | 29,991 | 63,013 | ||||||
9. | Provision for acquired assets +/-097 +/-098 | 021 | 0 | 0 | 0 | 0 | ||||||
B.III. | Financial investments – total of I. 23 to 27 | 022 | 657,893 | 0 | 657,893 | 674,595 | ||||||
B.III.1. | Investments in subsidiaries (061) – 096A | 023 | 772 | 0 | 772 | 791 | ||||||
2. | Investments in associates (062) – 096A | 024 | 0 | 0 | 0 | 0 | ||||||
3. | Other equity investments (063) – 096A | 025 | 0 | 0 | 0 | 0 | ||||||
4. | Loans to enterprises in the Group (066) – 096A | 026 | 0 | 0 | 0 | 0 | ||||||
5. | Other investments (067, 069) - 096A | 027 | 657,121 | 0 | 657,121 | 673,804 | ||||||
C. | Current assets I. 29+36+42+51 | 028 | 4,841,968 | 940,872 | 3,901,096 | 5,683,212 | ||||||
C.I. | Inventory total I. 30 to 35 | 029 | 309,607 | 12,456 | 297,151 | 260,862 | ||||||
C.I.1. | Raw material (112,119) – 191 | 030 | 50,606 | 1,426 | 49,180 | 78,094 | ||||||
2. | Work in progress and semifinished goods (121,122) – /192,193/ | 031 | 0 | 0 | 0 | 0 | ||||||
3. | Finished goods (123) – 194 | 032 | 0 | 0 | 0 | 0 | ||||||
4. | Livestock (124) – 195 | 033 | 0 | 0 | 0 | 0 | ||||||
5. | Merchandise (132,139) – 196 | 034 | 259,001 | 11,030 | 247,971 | 182,768 | ||||||
6. | Advance payments on account of inventories (314A) – 391A | 035 | 0 | 0 | 0 | 0 | ||||||
C.II. | Non-current receivables total I. 37 to 41 | 036 | 29,308 | 0 | 29,308 | 4,187 | ||||||
C.II.1. | Trade receivables (311A, 312A, 313A, 314A, 315A) – 391A | 037 | 29,308 | 0 | 29,308 | 4,187 | ||||||
2. | Receivables from partners and consortium members (354A, 355A, 358A) – 391A | 038 | 0 | 0 | 0 | 0 | ||||||
3. | Receivables from enterprises with controlling interest (351A) – 391A | 039 | 0 | 0 | 0 | 0 | ||||||
4. | Receivables from enterprises with significant interest (351A) – 391A | 040 | 0 | 0 | 0 | 0 | ||||||
5. | Other receivables (335A, 375A, 378A) – 391A | 041 | 0 | 0 | 0 | 0 | ||||||
C.III. | Current receivables total l. 43 to 50 | 042 | 1,971,587 | 928,416 | 1,043,171 | 796,490 | ||||||
C.III.1. | Trade receivables (311A, 312A, 313A, 314A, 315A) – 391A | 043 | 1,870,175 | 928,416 | 941,759 | 779,968 | ||||||
2. | Receivables from partners and consortium members (354A, 355A, 358A, 398A) – 391A | 044 | 1,100 | 0 | 1,100 | 1,100 | ||||||
3. | Social security (336A) – 391A | 045 | 0 | 0 | 0 | 0 | ||||||
4. | State – tax refunds due (341, 342, 343, 345) – 391A | 046 | 96,350 | 0 | 96,350 | 15,039 | ||||||
5. | State – Deferred tax asset (371) – 391A | 047 | 0 | 0 | 0 | 0 | ||||||
6. | Receivables from enterprises with controlling interest(351A) – 391A | 048 | 0 | 0 | 0 | 0 | ||||||
7. | Receivables from enterprises with significant interest (351A) – 391A | 049 | 0 | 0 | 0 | 0 | ||||||
8. | Other receivables (335A, 375A, 378A) – 391A | 050 | 3,962 | 0 | 3,962 | 383 | ||||||
C.IV. | Cash and cash equivalents – total I. 52 to 54 | 051 | 2,531,466 | 0 | 2,531,466 | 4,621,673 | ||||||
C.IV.1. | Cash in hand (211, 213, +/-261) | 052 | 4,397 | 0 | 4,397 | 4,166 | ||||||
2. | Bank accounts (221A) | 053 | 839,178 | 0 | 839,178 | 940,217 | ||||||
3. | Short term financial assets (251, 253) – /291, 293/ | 054 | 1,687,891 | 0 | 1,687,891 | 3,677,290 | ||||||
D. | Other assets – accruals and prepayments – total I. 56 a 60 | 055 | 566,795 | 0 | 566,795 | 727,043 | ||||||
D.I. | Accruals and prepayments – total I. 57 to 59 | 056 | 420,636 | 0 | 420,636 | 599,323 | ||||||
D.I.1. | Prepaid expenses (381, 382) | 057 | 372,189 | 0 | 372,189 | 387,017 | ||||||
2. | Accrued income (385) | 058 | 0 | 0 | 0 | 0 | ||||||
3. | Unrealised foreign exchange losses (386) | 059 | 48,447 | 0 | 48,447 | 212,306 | ||||||
D.II. | Estimated receivables (388) | 060 | 146,159 | 0 | 146,159 | 127,720 | ||||||
| Control total – I. 01 to 60 | 888 | 87,932,749 | 33,048,164 | 54,884,585 | 51,907,124 | |||||||
Line a | LIABILITIES AND EQUITY b | Line c | Current 5 | Prior year 6 | ||||
| TOTAL LIABILITIES AND EQUITY I. 62+79+105 | 061 | 13,757,686 | 13,008,711 | |||||
A | Equity – I. 63+66+71+75+78 | 062 | 3,495,037 | 2,751,282 | ||||
A.I | Share capital – I. 64+65 | 063 | 3,733,700 | 3,733,700 | ||||
A.I.1. | Base capital (411 alebo +/-491) | 064 | 3,733,700 | 3,733,700 | ||||
2. | Treasury shares (/-/252) | 065 | 0 | 0 | ||||
A.II. | Capital funds – total I. 67 to 70 | 066 | 1,036 | 1,036 | ||||
A.II.1. | Share premium (412) | 067 | 0 | 0 | ||||
2. | Other capital funds (413) | 068 | 1,036 | 1,036 | ||||
3. | Revaluation reserve for assets (+/-414) | 069 | 0 | 0 | ||||
4. | Revaluation reserve for equity investments (+/-415) | 070 | 0 | 0 | ||||
A.III. | Funds from profit – I. 72+73+74 | 071 | 49,622 | 49,622 | ||||
A.III.1. | Legal reserve fund (421) | 072 | 49,622 | 49,622 | ||||
2. | Non-distributable fund (422) | 073 | 0 | 0 | ||||
3. | Statutory and other funds (423, 427) | 074 | 0 | 0 |
Line a | LIABILITIES AND EQUITY b | Line c | Current 5 | Prior year 6 | ||||
A.IV. | Retained earnings I. 76+77 | 075 | -1,033,076 | -1,665,320 | ||||
A.IV.1 | Retained profits from previous years (428) | 076 | 0 | 0 | ||||
2. | Loss brought forward from previous years (/-/429) | 077 | -1,033,076 | -1,665,320 | ||||
A.V. | Profit (loss) for the current year /+-/ I. 0l-(+63+66+71+75+79+105) | 078 | 743,755 | 632,244 | ||||
B. | Liabilities I. 80+84+91+101 | 079 | 8,931,989 | 9,153,484 | ||||
B.I. | Provisions I. 81+82+83 | 080 | 121,586 | 319,109 | ||||
B.I.1. | Legal provisions (451) | 081 | 0 | 0 | ||||
2. | Provision for foreign exchange losses (454) | 082 | 48,447 | 212,306 | ||||
3. | Other provisions (459) | 083 | 73,139 | 106,803 | ||||
B.II. | Non-current liabilities – total I. 85 to 90 | 084 | 7,301,430 | 7,483,080 | ||||
B.II.1. | Liabilities to enterprises with controlling interest (471A) | 085 | 7,301,350 | 7,483,000 | ||||
2. | Liabilities to enterprises with significant interest (471A) | 086 | 80 | 80 | ||||
3. | Non-current advance payments received (475A) | 087 | 0 | 0 | ||||
4. | Bonds and debentures issued (473A, /-/255A) | 088 | 0 | 0 | ||||
5. | Non-current bills of exchange payable (478A) | 089 | 0 | 0 | ||||
6. | Other non-current liabilities (474A, 479A) | 090 | 0 | 0 | ||||
B.III. | Current liabilities – total I. 92 to 100 | 091 | 1,508,973 | 1,351,295 | ||||
B.III.1. | Trade liabilities (321, 322, 324, 325, 475A, 478A, 479A) | 092 | 798,036 | 791,883 | ||||
2. | Liabilities to partners and consortium members (364, 365, 366, 367, 368, 398A, 478A, 479A) | 093 | 0 | 0 | ||||
3. | Liabilities to employees (331, 333, 479A) | 094 | 25,402 | 22,767 | ||||
4. | Social security insurance payable (336A, 479A) | 095 | 12,673 | 11,421 | ||||
5. | State – Tax liabilities and subsidies payable (341, 342, 343, 345, 346, 347) | 096 | 7,467 | 6,834 | ||||
6. | State – Deferred tax liability (371) | 097 | 662,895 | 515,655 | ||||
7. | Liabilities to enterprises with controlling interest (361A, 471A) | 098 | 0 | 0 | ||||
8. | Liabilities to enterprises with significant interest (361A, 471A) | 099 | 0 | 0 | ||||
9. | Other liabilities (379, 474A, 479A) | 100 | 2,500 | 2,735 | ||||
B.IV. | Bank loans and borrowings – total l.102 to 104 | 101 | 0 | 0 | ||||
B.IV.1. | Non-current bank loans (461A) | 102 | 0 | 0 | ||||
2. | Current bank loans (231, 232, 461A, 221A) | 103 | 0 | 0 | ||||
3. | Other current borrowings (241, 249, 473A, /-/255A) | 104 | 0 | 0 | ||||
C. | Other liabilities – accruals and deferred income – I. 106 + 110 | 105 | 1,330,660 | 1,103,945 | ||||
C.I. | Accruals and deferred income – total I. 107 to 109 | 106 | 703,020 | 276,992 | ||||
C.I.1. | Accruals (383) | 107 | 276,542 | 0 | ||||
2. | Deferred income (384) | 108 | 425,012 | 275,198 | ||||
3. | Unrealised foreign exchange gain (387) | 109 | 1,466 | 1,794 | ||||
C.II. | Estimated payables (389) | 110 | 627,640 | 826,953 | ||||
| Control total – total I. 61 to 110 | 999 | 53,659,349 | 50,575,647 |
Income Statement Úč POD 2-01 |
FMFč.j.V/1-31 388/1992 as amended by MF SR č.65/502/1994
Accounting entity files 2 copies of the statements together with
the corporation tax return
with the allocated tax office.
Full Scope Income Statement
for the year ended | 31 December | 2002 | ||
| (Sk thousands) |
| Year | Month | IČO | ||
2002 | 12 | 35705019 | ||
| Type of delivery | ||||
| x ordinary | ||||
| ¨ correcting | ||||
| ¨ supplementary | ||||
| ¨ repeated | ||||
Accounting entity name
EuroTel Bratislava, a. s.
Entity address:
Street and No.
Vajnorská 100/A
ZIP | Town | |||
83103 | Bratislava | |||
Phone area code | Phone number | Fax number | ||
02 | 49555087 | 49555069 |
| Sent on: | Signature of a statutory representative a person that is the accounting entity: | Person responsible for bookkeeping: (name and signature): | Person responsible for financial (name and signature): | |||
19.2.2003 | Michael Günther | |||||
| Rahul Narain Saxena | Ivan Bošňák | Adriana Jonásová | ||||
| Line a | T E X T | Line No. c | Actual results in | |||||
| current period 1 | prior year 2 | |||||||
I. | Sales of merchandise (604) | 01 | 671,095 | 784,965 | ||||
A. | Costs of merchandise sold (504) | 02 | 1,425,744 | 1,500,954 | ||||
+ | Gross margin I. 01-02 | 03 | -754,649 | -715,989 | ||||
II. | Production I. 05+06+07 | 04 | 8,560,804 | 7,173,775 | ||||
II.1. | Sales of own products and services (601,602) | 05 | 8,514,778 | 7,122,570 | ||||
2. | Change in inventory of finished goods and work in progress (+/– acc. group 61) | 06 | 0 | 0 | ||||
3. | Own work capitalised (acc. group 62) | 07 | 46,026 | 51,205 | ||||
B. | Production costs I. 09+10 | 08 | 3,963,927 | 3,337,122 | ||||
B.1. | Raw material and energy used in production (501 to 503) | 09 | 256,646 | 301,068 | ||||
B.2. | Services (acc. group 51) | 10 | 3,707,281 | 3,036,054 | ||||
+ | Value added I. 03+04-08 | 11 | 3,842,228 | 3,120,664 | ||||
C. | Staff costs total I. 13 to 16 | 12 | 600,757 | 518,959 | ||||
C.1. | Wages and salaries (521,522) | 13 | 471,379 | 403,164 | ||||
C.2. | Remuneration of members of the board of companies and co-operatives (523) | 14 | 0 | 0 | ||||
C.3. | Social security costs (524,525,526) | 15 | 113,173 | 99,413 | ||||
C.4. | Employee welfare costs (527,528) | 16 | 16,205 | 16,382 | ||||
D. | Indirect taxes and fees (acc. group 53) | 17 | 9,304 | 8,734 | ||||
E. | Depreciation of tangible and intangible fixed assets (551) | 18 | 1,653,100 | 1,518,827 | ||||
III. | Revenue from sale of fixed assets and raw material (641,642) | 19 | 22,082 | 4,636 | ||||
F. | Carrying value of fixed assets and raw material sold (541,542) | 20 | 5,570 | 1,487 | ||||
IV. | Release of provisions for liabilities and charges and accrued operating revenue (652,654,655) | 21 | 405,982 | 281,106 | ||||
G. | Creation of provisions for liabilities and charges and accrued operating expenses (552,554,555) | 22 | 363,049 | 366,286 | ||||
V. | Release of provisions (operating) (657,659) | 23 | 270,561 | 280,951 | ||||
H. | Creation of provisions (operating) (557,559) | 24 | 496,181 | 331,338 | ||||
VI. | Other operating revenue (644,645,646,648) | 25 | 190,176 | 214,967 | ||||
I. | Other operating expenses (543 to 546,548) | 26 | 163,382 | 93,079 | ||||
VII. | Reclassification of operating revenue (-)(697) | 27 | 0 | 0 | ||||
J. | Reclassification of operating costs (-)(597) | 28 | 0 | 0 | ||||
* | Operating profit | 29 | 1,439,686 | 1,063,614 | ||||
F+2 | ||||||||
# | ||||||||
VIII. | Revenue from sale of securities (661) | 30 | 0 | 0 | ||||
K. | Sold securities (561) | 0 | 0 | |||||
IX. | Income from financial investments I. 33+34+35 | 32 | 69,729 | 16,685 | ||||
IX.1. | Income from investments in subsidiaries and associates (665A) | 33 | 0 | 0 | ||||
2. | Income from other equity investments (665A) | 34 | 0 | 0 | ||||
3. | Income from other investments (665A) | 35 | 69,729 | 16,685 | ||||
X. | Income from short term financial assets (666) | 36 | 137,563 | 160,410 | ||||
XI. | Release of financial provisions for liabilities and charges (674) | 37 | 386,679 | 942,774 | ||||
L. | Creation of financial provisions for liabilities and charges (574) | 38 | 230,600 | 212,317 | ||||
XII. | Release of provisions (financial) (679) | 39 | 0 | 0 | ||||
M. | Creation of provisions (financial) (579) | 40 | 0 | 0 | ||||
XIII. | Interest income (662) | 41 | 51,515 | 67,522 | ||||
N. | Interest expense (562) | 42 | 801,283 | 914,281 | ||||
XIV. | Other financial revenue (663,668) | 43 | 428,585 | 305,831 | ||||
O. | Other financial expenses (563,568) | 44 | 580,077 | 706,588 | ||||
XV. | Reclassification of financial revenue (-)(698) | 45 | 0 | 0 | ||||
P. | Reclassification of financial expenses (-)(598) | 46 | 0 | 0 | ||||
* | Profit (loss) from financial activities | 47 | -537,889 | -339,964 | ||||
| I. 30-31+32+36+37-38+39-40+41-42+43-44+(-45)-(-46) | ||||||||
I. | Tax on income from ordinary activities I. 049+050 | 48 | 147,240 | 133,356 | ||||
I.1. | — payable (591,595) | 49 | 0 | 10,150 | ||||
2. | — deferred (592) | 50 | 147,240 | 123,206 | ||||
* | Tax on income from ordinary activities I. 48 | 51 | 147,240 | 133,356 | ||||
** | Net profit from ordinary activities I. 29+47-51 | 52 | 754,557 | 590,294 | ||||
XVI. | Extraordinary revenue (acc. group 68) | 53 | 6,960 | 67,139 | ||||
S. | Extraordinary expenses (acc. group 58) | 54 | 17,762 | 25,189 | ||||
T. | Tax on income from extraordinary activities I. 56+57 | 55 | 0 | 0 | ||||
T.1. | — payable (593) | 56 | 0 | 0 | ||||
2. | — deferred (594) | 57 | 0 | 0 | ||||
* | Extraordinary profit/(loss) I. 53-54-55 | 58 | -10,802 | 41,950 | ||||
U. | Profit (loss) share transferred to owners’ account (596) | 59 | 0 | 0 | ||||
*** | Net profit/(loss) for the period I. 52+58-59 | 60 | 743,755 | 632,244 | ||||
| Control total total I. 01 to 60 | 99 | 40,626,290 | 35,675,344 | |||||
CASH FLOW STATEMENT | Current period, 2002 | Prior period, 2001 | ||||
EuroTel Bratislava, a.s. | ||||||
A | Cashflow from operating activities | |||||
Z | Profit | 901,797 | 723,650 | |||
S | Loss | 0 | 0 | |||
A.1. | Non-cash transactions included in profit from ordinary activities | 1,959,796 | 1,703,195 | |||
A.2. | Working capital changes | 1,427,710 | -501,621 | |||
A.3. | Interest expense [+] | 801,283 | 914,281 | |||
A.4. | Interest income [-] | -258,808 | -227,932 | |||
A* | Profit before tax from ordinary activities adjusted for non-cash transactions, changes in working capital, interest income and expense (total Z. or S. + A.1.+ A.2.+ A.3.+ A.4.) | 4,831,778 | 2,611,573 | |||
A.5. | Items excluded from operating activities. | -16,512 | -3,149 | |||
A.6. | Specific items | 5,674 | -3,149 | |||
A** | Cashflow before optionally reported and other items included in operating activities (total A* + A.5. + A.6.) | 4,820,940 | 2,605,275 | |||
A.7. | Optionally reported items | 205,952 | 219,106 | |||
A.8. | Other items belonging to operating activities and not included above | 0 | 0 | |||
A*** | Net cashflow from operating activities (total A** + A.7. + A.8.) | 5,026,892 | 2,824,381 | |||
B. | Cash from from investing activities | 0 | 0 | |||
B.1. | Capital expenditure (total B.1.1. Až B.1.3 or. B.1.4.) | -4,413,285 | -1,818,009 | |||
B.2. | Receipt from sale of fixed assets (total B.2.1. to B.2.3) | 22,082 | 4,636 | |||
B.3. | Cashflow from rental of a set of movable and immovable property rented out as a unit (total B.3.1. and B.3.2.) | 0 | 0 | |||
B.4. | Cashflow from loans given to / received from related parties (total B.4.1. and B.4.2.) | 0 | 0 | |||
B.5. | Specific items (total B.5.1. to B.5.3) | 0 | 0 | |||
B.6. | Optionally reported items (total B.6.1. to B.6.6) | 0 | 0 | |||
B.7. | Other cashflows from investing activities not reported above [+,-] | 0 | 593 | |||
B*** | Net cashflow from investing activities | -4,391,203 | -1,812,780 | |||
C. | Net cashflow from operating and investing activities (total A***+B***) | 635,689 | 1,011,601 | |||
D. | Cashflow from financing activities | 0 | 0 | |||
D.1. | Increase/Decrease in non-current and current liabilities (total D.1.1. to D.1.7.) | 0 | -687,088 | |||
D.2. | Cashflow from equity transactions (total D.2.1. to D.2.6.) | 0 | 0 | |||
D.3. | Specific items (total D.3.1. to D.3.3.) | 0 | 0 | |||
D.4. | Optionally reported items | -736,497 | -857,473 | |||
D.5. | Other items included in cashflow from financing activities not included above [+,-] | 0 | 0 | |||
D*** | Net cashflow from financing activities (total D.1. to D.5.) | -736,497 | -1,544,561 | |||
E. | Foreign exchange losses charged to income statement (total E.1. + E.2.) | 0 | 0 | |||
E.1. | Foreign exchange gains (account 663) (+) | 0 | 0 | |||
E.2. | Foreign exchange losses (account 563) (-) | 0 | 0 | |||
F. | Increase/decrease in cash and cash equivalents [+,-] (total A***+B***+D***+E.=(H.-G.) | -100,808 | -532,960 | |||
G. | Cash and cash equivalents at the beginning of the accounting period (at 1.1.) | 944,383 | 1,477,343 | |||
H. | Cash and cash equivalents at the end of the accounting period (at 31.12.) (G.+ A***+B***+D***+E.) | 843,575 | 944,383 |
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 1. | GENERAL |
| a) | EuroTel Bratislava, a.s. (“the Company”) was established and incorporated in the Commercial Register on 16 December 1996. The Company’s registered address being Vajnorská 100/A, 831 03 Bratislava; its corporate ID (IČO) is 35 705 019. |
| b) | Effective July 16, 2002, the Company was awarded the license (“the License”) for the implementation and operation of a public mobile telecommunication network based on the Universal Mobile Telecommunication System (“UMTS”) standard. The License also provides for control of related radio frequencies by the Company, under the terms of the license the Company will acquire control of frequencies no later than September 30, 2003. The Company is then obliged to launch commercial UMTS services within 30 months from the assumption of control of frequencies. The License is valid through to 2022 when the Company has the option to request its prolongation. |
| c) | Core business activities of the Company as per its record in the Commercial Register: |
| — | Establishment and operation of Public Mobile Telecommunications Networks (“PMTNs”) using frequencies assigned by the licenses granted by the Slovak Telecommunication Office; |
| — | Provision of public mobile telecommunication services via the above PMTNs; |
| — | Establishment and operation of a public data network based on data packet commutation; |
| — | Provision of public data services via the public telecommunications networks; |
| — | Assembly and maintenance of telecommunication devices connected to the Public Switched Telephone Network (“PSTN”); |
| — | Purchase and sale of goods to the final customers or to the resellers; |
| — | Consultancy in the area of the public mobile cellular radiotelephony network; |
| — | Consultancy in the area of the public data packet networks; |
| — | Publishing technical magazines; |
| — | Organization and operation of knowledge-based games; |
| — | Intermediation activities in the area of trade, services, and production; |
| — | Advertising and promotional activities; |
| — | Renting of movable items – leasing; |
| — | Real estate and non-residential premises letting, including provision of other than basic related services; and |
| — | Intermediation in buying, selling, and letting real estate. |
| d) | The members of the Board of Directors at 31 December 2002 were: |
Name | Position | |
Michael Günther | Chairman | |
Rahul Narain Saxena | Vice-chairman | |
Fridbert Gerlach | Member | |
Robert Leo Lewis | Member | |
Peter Stropko | Member |
Page 1 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 1. | GENERAL (continued) |
| e) | The members of the Supervisory Board at 31 December 2002 were: |
Name | Position | |
Jozef Pavlík | Chairman | |
Mark von Lillienskiold | Member | |
Farshid Ebrahimi-Ghajar | Member | |
Pavol Gašpar | Member | |
Beáta Lacíková | Member | |
Luigi Franco Pina | Member |
| f) | The structure of shareholders at 31 December 2002 was as follows: |
Name | Share in the registered capital | ||||
Absolute amount SKK ‘000 | Percentage | ||||
Slovenské telekomunikácie, a.s. (“ST”) | 1,988,580 | 53 | %* | ||
Atlantic West, B.V. (“AWBV”) | 1,745,120 | 47 | %* | ||
| *The exact percentage of shareholdings is 51.0000084235% of the economic interest and 53.2603% of the voting rights, respectively, held by Slovak Telecom and 48.9999915765% of the economic interest and 46.7397% of the voting rights, respectively, held by AWBV. These numbers are rounded to the nearest percent for convenience purposes. |
| The Company is a joint venture of its shareholders. Based on the Shareholders’ Agreement of EuroTel Bratislava, a.s. dated 3 December 1996, certain major decisions regarding the operations of the Company have to be supported by the representatives of both shareholders. |
| g) | The Company is part of the groups of companies. Consolidated financial statements for the largest group of companies are prepared by Deutsche Telekom AG, AT&T Wireless Services, Inc. And Verizon Communications. Consolidated financial statements for the smallest group of companies are prepared by Slovenské telekomunikácie, a.s., nám. Slobody 1, Bratislava. The consolidated financial statements are available at Slovenské telekomunikácie, a.s., nám. Slobody 1, Bratislava. |
| h) | The number of staff at December 31, 2002 was 1,156 (at 31 December 2001: 1,025), 147 of which are management (at 31 December 2001: 103). |
Staff number at December 31, 2002 | Total personnel costs (SKK ‘000) | Wages and salaries (SKK ‘000) | Remuneration paid to management (SKK ‘000) | Social security costs (SKK ‘000) | Social costs (SKK ‘000) | |||||||||
former | existing | |||||||||||||
Employees total | 1,156 | 600,757 | 436,332 | 16,589 | 18,458 | 113,173 | 16,205 | |||||||
Management | 147 | 139,300 | 81,488 | 16,589 | 18,458 | 20,455 | 2,310 | |||||||
| i) | Members of the statutory body (Board of Directors) were not paid any emoluments in 2002. The current members of the Supervisory Board were paid bonuses at SKK 30 thousand, included in “Wages”. |
| j) | On 25 April 2002, the ordinary General Meeting of shareholders approved the individual financial statements of the Company together with the proposal for distribution of the 2001 profit. |
Page 2 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 2. | ACCOUNTING POLICIES AND GENERAL ACCOUNTING PRINCIPLES |
| a) | Basic accounting principles |
The ordinary financial statements have been prepared in accordance with the requirements of Act 563/1991 Coll. on Accounting as amended, on the going concern basis and the historical cost convention.
| b) | Intangible assets |
Purchased intangible assets are stated at cost, which includes the acquisition price and the related acquisition costs including capitalized interest. At 31 December 2002, the Company did not acquire any intangible assets as gifts and produced no intangible assets internally.
The Company used a depreciation plan based on the expected economic useful lives of intangible assets, ranging from three to five years. The licenses granted by the Telecommunications Office of the Slovak Republic are depreciated over 5 years even in cases when their periods of validity and estimated useful lives exceed such period.
Intangible assets with a useful life exceeding one year and with acquisition cost lower than SKK 40,000 are considered low-value intangible assets. Low-value intangible assets with the acquisition price less than SKK 5,000 are written off when put in use; the Company keeps operational records to track such assets. Low-value intangible assets with the acquisition cost from SKK 5,001 up to SKK 40,000 are depreciated on a straight-line basis according to their economic useful lives.
| c) | Tangible fixed assets |
Purchased tangible fixed assets are stated at cost, which includes the acquisition price and the related acquisition costs including capitalized interest. The Company creates provisions against items of tangible fixed assets, where the carrying value of an asset exceeds its value in use. In 2002, the Company did not receive any tangible fixed assets as gifts and did not produce any tangible fixed assets internally.
Tangible fixed assets are depreciated on a straight-line basis according to their expected economic useful lives, which are as follows:
Years of depreciation | ||
Buildings and structures | 15 | |
Machines and machinery | 2 –10 | |
Other tangible fixed assets | 3 |
As a result of differences between the depreciation for tax and accounting purposes, the Company accounts for deferred taxes.
Tangible fixed assets with a useful life exceeding one year and with the acquisition cost lower than SKK 20,000 are considered low-value tangible fixed assets. Low-value tangible fixed assets with an acquisition price less than SKK 5,000 are written off when put in use; the Company keeps operational records to track such assets. Low-value tangible fixed assets with an acquisition price from SKK 5,001 up to SKK 20,000 are fully depreciated when put in use, except for specific categories, which are depreciated on the basis of their economic useful lives.
Page 3 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 2. | ACCOUNTING POLICIES AND GENERAL ACCOUNTING PRINCIPLES (continued) |
| d) | Leased assets |
At 31 December 2002 the Company did not use any assets acquired under financial leasse.
| e) | Financial investments |
Financial investments are carried at acquisition cost. No provision was made for financial investments at 31 December 2002.
| f) | Inventories |
Inventories are carried at acquisition cost less any provisions. Acquisition cost includes the acquisition price and costs relating to the acquisition (transport, commission, customs duty, insurance). Inventories consist of purchased goods (mobile phones with accessories, routers, DPN, and modems) for resale; spare parts for mobile phones, base stations and data nodes, SIM cards and consumables. Purchased goods and spare parts for mobile phones are carried at the pre-set acquisition cost (“standard cost”), with separate accounting for any variations from the actual acquisition cost and additional acquisition costs. The variations from the actual acquisition cost and additional acquisition costs are expensed monthly, depending on the amount of goods sold, using a method described below to account for valuation differences.
Consumables and spare parts for base stations and data nodes are carried at the actual acquisition cost using the FIFO method to account for their consumption. SIM cards are carried using the weighted average accounting method.
In the Company’s analytical records, the acquisition cost is analyzed into the acquisition price and other acquisition costs. The arising valuation variance expense was charged on a monthly basis in the following amount:
% of valuation variance = | (opening valuation variance + additions to valuation variance)/(opening balance of inventories + additions to inventories) | |
Valuation variance expense = | actual consumption x % of valuation variance |
Consumption of inventories is accounted for using cost used to value the items in stock. A provision is created against obsolete and slow moving inventories and other inventories, where their carrying value exceeds net realizable value.
| g) | Construction contracts |
In 2002, the Company did not recognise construction contracts.
| h) | Receivables, accruals and prepayments |
Receivables, accruals and prepayments are stated at their nominal value less provisions for doubtful and bad debts and for receivables from companies in bankruptcy.
Page 4 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 2. | ACCOUNTING POLICIES AND GENERAL ACCOUNTING PRINCIPLES (continued) |
| i) | Current financial assets |
Current financial assets, which include cash, duty stamps, and highly liquid securities, are stated at cost. No provision was made for financial assets at 31 December 2002.
| j) | Liabilities, accruals and deferred income |
| Liabilities, | accruals and deferred income are stated at their nominal value. |
| k) | Provisions |
Provisions for liabilities and charges are stated at the amount necessary to cover the known or probable risks and losses from business activities.
The Company sets up provisions for specific purposes based on facts known at the time of their creation. These facts are statistically evaluated and used to estimate their future occurrence or development (the loyalty scheme EuroTel Club provision for future redemption of credits awarded to customers, provision for retirement bonuses paid to employees according to the Labour Code). Provisions are also created in absolute amounts based on valid contractual relationships related to future periods. Provisions for unrealized foreign exchange losses and for losses related to the holding of short-term bonds are also set up in absolute amounts.
The Company also sets up general provisions based on identifying and evaluating risks from its business activities.
| l) | Principles for setting up provisions against the value of assets |
Provisions for fixed assets are created against tangible and intangible fixed assets, if the value in use is significantly lower than their book value.
Provisions for receivables are created for receivables at risk, which have been identified during the analysis of receivables. The Company uses written communication with clients as well as a third party to verify the debtor’s financial situation to assess the credit risk.
Receivables are analyzed to specific credit risk categories and a provision is calculated using percentages assigned to such credit risk categories.
Provisions for inventories are created in accordance with the accounting principle of prudence for obsolete stock, where the Company expects decreasing demand and the selling price has decreased due to age of inventories. The stock-take records support this indirect decrease of inventory value.
The amount of provision is calculated using an analysis of inventories sold in the past periods and using informed assessment of their future sales. A pre determined provision percentage is applied to individual types of inventories and expected future sale time periods.
Page 5 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 2. | ACCOUNTING POLICIES AND GENERAL ACCOUNTING PRINCIPLES (continued) |
| m) | Revenues |
Revenues from the sale of goods and services are stated net of discounts and VAT. In general, revenues are recognized when the goods or services are provided to customers. Monthly access fees, invoiced one month in advance are deferred until the services are rendered. Airtime revenues are billed one month in arrears and are accrued, via estimated receivables, so as to be recognized when the services were rendered. Sales of Easy vouchers are deferred to the period when the minutes were used. Revenues from the sale of mobile phones and accessories are recognized at the time of sale.
| n) | Foreign currency translation |
Transactions in foreign currency are converted and accounted for in accordance with the National Bank of Slovakia (“NBS”) exchange rate valid on the day of the transaction (payables when the related purchase invoice is received, receivables when the sales invoice is issued, cash on the day of the transaction with the bank account or cash in hand).
All assets and liabilities recorded in foreign currency were at the balance sheet data converted using the NBS foreign exchange rate. Provisions were made for unrealized foreign exchange losses and charged to the income statement. Unrealized foreign exchange gains are not posted to the income statement. Foreign exchange differences from cash in hand, bank accounts and short-term financial investments are recognized in the income statement.
| o) | Additional pension plan |
At present, the Company does not offer any additional pension insurance plan to its employees. The Company makes regular contributions to the statutory pension plan.
| p) | Deferred tax |
Due to temporary differences between depreciation of tangible and intangible fixed assets for accounting and tax purposes, the Company accounted for the deferred tax liability at 31 December 2002.
| r) | Research and development |
At 31 December 2002, the Company did not recognise any costs related to research and development.
| s) | Changes in accounting |
No changes were made in the accounting, valuation or manner of depreciation. Certain balances included in the comparative financial statements have been reclassified to conform to the current year presentation.
Page 6 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 3. | INTANGIBLE ASSETS |
| (Balance sheet, line 004 ) |
Acquisition costs
Type of asset | Balance sheet line – column 1 | 1 January 2002 SKK ‘000 | Additions SKK ‘000 | Transfers SKK ‘000 | 31 December 2002 SKK ‘000 | ||||||
Software | 007 | 1,808,761 | — | 1,351,435 |
| 3,160,196 | |||||
Valuable rights | 008 | 1,053,214 | — | — |
| 1,053,214 | |||||
Other intangible assets | 009 | 26,622 | — | 1,503 |
| 28,125 | |||||
Assets in the course of construction | 010 | 314,786 | 2,587,263 | (1,261,540 | ) | 1,640,509 | |||||
Advance payments for intangible fixed assets | 011 | — | 92,798 | (91,398 | ) | 1,400 | |||||
Total | 3,203,383 | 2,680,061 | 0 |
| 5,883,444 | ||||||
Accumulated depreciation and provisions
Type of asset | Balance sheet line – column 2 | 1 January 2002 SKK ‘000 | Additions SKK ‘000 | 31 December 2002 SKK ‘000 | ||||
Software | 007 | 1,486,135 | 480,087 | 1,966,222 | ||||
Valuable rights | 008 | 792,400 | 92,113 | 884,513 | ||||
Other intangible assets | 009 | 21,099 | 1,604 | 22,703 | ||||
Total | 2,299,634 | 573,804 | 2,873,438 | |||||
Net book value
Type of asset | Balance sheet line – column 3 | 1 January 2002 SKK ‘000 | 31 December 2002 SKK ‘000 | |||
Software | 007 | 322,626 | 1,193,974 | |||
Valuable rights | 008 | 260,814 | 168,701 | |||
Other intangible assets | 009 | 5,523 | 5,422 | |||
Assets in the course of construction | 010 | 314,786 | 1,640,509 | |||
Advances paid for intangible fixed assets | 011 | — | 1,400 | |||
Total | 903,749 | 3,010,006 | ||||
Low value intangible assets directly expensed amounted to SKK 126 thousand in 2002 (SKK 165 thousand in 2001).
Page 7 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 4. | TANGIBLE FIXED ASSETS |
| (Balance sheet line 012) |
Acquisition cost
Type of asset | Balance sheet | 1 January 2002 SKK ‘000 | Additions SKK ‘000 | Disposals SKK ‘000 | Transfers SKK ‘000 | 31 December 2002 SKK ‘000 | ||||||||
Land | 013 | 148 | — | — |
| — |
| 148 | ||||||
Buildings, halls and constructions | 014 | 98,071 | — | (22,919 | ) | 88,247 |
| 163,399 | ||||||
Machines and machinery | 015 | 7,571,664 | — | (112,852 | ) | 1,700,033 |
| 9,158,845 | ||||||
Other tangible FA, low value FA | 018 | 71,713 | — | (8,735 | ) | 32,091 |
| 95,069 | ||||||
Assets in the course of construction | 019 | 599,298 | 1,601,350 | — |
| (1,578,473 | ) | 622,175 | ||||||
Advances paid for tangible FA | 020 | 63,013 | 208,876 | — |
| (241,898 | ) | 29,991 | ||||||
Total | 8,403,907 | 1,810,226 | (144,506 | ) | 0 |
| 10,069,627 | |||||||
Accumulated depreciation and provisions
Type of asset | Balance sheet | 1 January 2002 SKK ‘000 | Additions SKK ‘000 | Disposals SKK ‘000 | 31 December 2002 SKK ‘000 | ||||||
Buildings halls and constructions | 014 | 42,268 | 29,426 | (22,029 | ) | 49,665 | |||||
Machines and machinery | 015 | 3,290,680 | 1,193,501 | (145,552 | ) | 4,338,629 | |||||
Other tangible fixed assets—low value FA | 018 | 50,847 | 15,973 | (7,383 | ) | 59,437 | |||||
Total | 3,383,795 | 1,238,900 | (174,964 | ) | 4,447,731 | ||||||
Net book value
Type of asset | Balance sheet | 1 January 2002 SKK ‘000 | 31 December 2002 SKK ‘000 | |||
Land | 013 | 148 | 148 | |||
Buildings halls and constructions | 014 | 55,803 | 113,734 | |||
Machines and machinery | 015 | 4,280,984 | 4,820,216 | |||
Other tangible fixed assets—low value FA | 018 | 20,866 | 35,632 | |||
Assets in the course of construction | 019 | 599,298 | 622,175 | |||
Advances paid for tangible FA | 020 | 63,013 | 29,991 | |||
Total | 5,020,112 | 5,621,896 | ||||
Page 8 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 4. | TANGIBLE FIXED ASSETS (continued) |
Included in additions to accumulated depreciation is creation of provisions against selected technical equipment where the carrying value exceeded value in use in the total amount of SKK 122,723 thousand.
Low value tangible fixed assets directly expensed amounted to SKK 5,207 thousand in 2002 (SKK 4,286 thousand in 2001). At 31 December 2002 the Company has not recognised any assets pledged as security for loans.
Fixed assets and inventories are covered by insurance with Allianz poistǒvňa, a.s. The limit for the insured benefit is SKK 5,234,000 thousand (SKK 3,000,000 thousand at 31 December 2001). The insurance period starts on 1 January 2002 and terminates 31 December 2002.
At 31 December 2002, the Company had no assets under finance leasing.
Page 9 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 5. | FINANCIAL INVESTMENTS |
| (Balance sheet line 022 and 023) |
On 29 December 1999, Euro Tel Bratislava established a wholly owned subsidiary – Slovak Wireless Finance Company B.V. (“SWFC”) with registered seat in the Netherlands (Amsteldijk 166, 1079LH, Amsterdam).
Name and address of the company | % share in | Shareholders’ equity | Profit/loss | |||||||
31 December 2001 SKK ‘000 | 31 December 2002 SKK ‘000 | 31 December 2001 SKK ‘000 | 31 December 2002 SKK ‘000 | |||||||
Subsidiary SWFC | 100 | 10,837 | 17,994 | 5,982 | 7,176 | |||||
Total | 100 | 10,837 | 17,994 | 5,982 | 7,176 | |||||
Equity interest in the subsidiary is carried at acquisition cost.
In 2001 the Company purchased the SWFC bonds at EUR 15 million in the open market. Bonds totalling to SKK 657,121 thousand were posted to balance sheet, line 027 „Other financial investments”. Income from the financial investments amounted to SKK 69,729 thousand at 31 December 2002.
1 January 2002 SKK ‘000 | Accrued Coupon SKK ‘000 | FX difference SKK ‘000 | 31 December 2002 SKK ‘000 | |||||||
Shares and ownership interest in companies with controlling interest | 791 | — | (19 | ) | 772 | |||||
Other financial investments | 673,804 | (340 | ) | (16,343 | ) | 657,121 | ||||
Total | 674 595 | (340 | ) | (16,362 | ) | 657,893 | ||||
Page 10 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 6. | INVENTORIES |
| (Balance sheet line 029) |
2002 SKK ‘000 | 2001 SKK ‘000 | |||
Material and spare parts | 49,180 | 78,094 | ||
Goods | 247,971 | 182,768 | ||
Total | 297,151 | 260,862 | ||
Inventories at a carrying value of SKK 309,607 thousand at 31 December 2002 (SKK 280 036 thousand at 31 December 2001) are shown net of a provision of SKK 12,456 thousand (SKK 19,174 at 31 December 2001) for slow moving (obsolete) inventories to reflect the net realisable value of SKK 297,151 thousand (SKK 260,862 at 31 December 2001).
Provision for inventories can be analysed as follows
2002 SKK ‘000 | 2001 SKK ‘000 | |||||
Balance at 1 January | 19,174 | 33,504 | ||||
Creation of provision | 171,405 | 191,298 | ||||
Release of provision | (178,123 | ) | (205,628 | ) | ||
Balance at 31 December | 12,456 | 19,174 | ||||
Inventories at book value of SKK 297,151 thousand (SKK 260,862 thousand at 31 December 2001) are covered by the insurance policy for all Company’s assets. The limit for the insurance benefit is set out in Section 4 Tangible fixed assets (page 9 of the Notes to financial statements).
Page 11 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 7. | RECEIVABLES, ACCRUALS AND PREPAYMENTS |
(Balance sheet, lines 037, 042 and 055)
31 December 2002 SKK ‘000 | 31 December 2001 SKK ‘000 | |||
Short term receivables | ||||
Trade receivables | 1,870,175 | 1,598,753 | ||
Other receivables | 3,962 | 383 | ||
Receivables from shareholders | 1,100 | 1,100 | ||
Government—tax receivables | 96,350 | 15,039 | ||
Total | 1,971,587 | 1,615,275 | ||
Long-term receivables | ||||
Trade receivables | 29,308 | 4,187 | ||
Total | 29,308 | 4,187 | ||
The gross value of receivables totalling to SKK 1,971,587 thousand (SKK 1,615,275 at 31 December 2001) are stated net of provision of SKK 928,416 thousand (SKK 818,785 thousand at 31 December 2001) for bad and doubtful debts and for receivables from debtors in bankruptcy to reflect the net realisable value of SKK 1,043,171 thousand (SKK 796,490 thousand at 31 December 2001).
Ageing analysis of receivables is as follows:
31 December 2002 SKK ‘000 | 31 December 2001 SKK ‘000 | |||
Receivables within the due date | 1,017,741 | 756,923 | ||
Overdue receivables | 953,846 | 858,352 | ||
Total | 1,971,587 | 1,615,275 | ||
Page 12 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 7. | RECEIVABLES, ACCRUALS AND PREPAYMENTS (continued) |
At 31 December 2001, the Company has created a bad-debt provision as follows:
2002 SKK ‘000 | 2001 SKK ‘000 | |||||
Balance at 1 January | 818,785 |
| 753,815 |
| ||
Creation of provision | 202,052 |
| 140,040 |
| ||
Release of provision | (92,421 | ) | (75,070 | ) | ||
Balance at 31 December | (928,416 | ) | 818,785 |
| ||
At 31 December 2002 the Company did not recognise any pledged receivables.
Accruals and prepayments:
Balance sheet line | 31 December 2002 SKK ‘000 | |||
Deferred expense: | 057 | 372,189 | ||
Of that: | ||||
Prepaid rent | 64,831 | |||
Deferred expenses relating to the provision of loan | 246,797 | |||
Foreign exchange differences | 059 | 48,447 | ||
Estimated receivables | 060 | 146,159 | ||
Total | 566,795 | |||
At 31 December 2002 the significant items in the accruals and prepayments include deferred expenses relating to the provision of loan of SKK 246,797 thousand from SWFC, which includes legal fees, professional services of consulting companies, and bank charges. Unrealised foreign exchange differences relating to the loan from SWFC amount to SKK 16,581 thousand and unrealised foreign exchange differences relating to repurchased SWFC bonds amount to SKK 29,626 thousand. Significant items in estimated receivables relate to interest income from securities held to maturity at SKK 51,060 thousand and revenues from telecommunication services provided to customers in December 2002 that will be invoiced in January 2003 at SKK 62,446 thousand.
Page 13 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 8. | FINANCIAL ASSETS |
(Balance sheet line 051)
Structure of financial assets:
31 December 2002 SKK ‘000 | 31 December 2001 SKK ‘000 | |||
Cash | ||||
Cash on hand | 4,010 | 994 | ||
Bank accounts—current | 6,300 | 8,932 | ||
Bank accounts—term | 832,878 | 934,030 | ||
Cash equivalents | ||||
Meal vouchers | 387 | 427 | ||
Other financial assets | ||||
Debentures | 1,687,891 | 3,677,290 | ||
Total | 2,531,466 | 4,621,673 | ||
The Company did not create provisions for financial assets at 31 December 2002.
| 9. | SHAREHOLDER’S EQUITY |
(Balance sheet line 062 )
The Company’s share capital amounted to SKK 3,733,700 thousand at 31 December 2002 (at 31 December 2001: SKK 3,733,700 thousand). Nominal value per share is SKK 1,000. EuroTel Bratislava, a.s. is a joint venture of Slovenské telekomunikácie (“ST”) and Atlantic West B.V. (“AWBV”), a company existing under the laws of the Netherlands. AWBV is owned by American companies Verizon Communications and AT&T Wireless Services, Inc. ST and AWBV hold 53% and 47% of the voting rights, respectively. ST and AWBV are entitled to 51% and 49% of the Company’s profit, respectively (see note 1f, page 2).
The share capital is divided into two classes of shares. There are 3,561,470 ordinary shares with a nominal value of SKK 1,000 per share with one vote pertaining to each share. There are 172,230 priority shares with a nominal value of SKK 1,000 per share with one vote pertaining to each share.
Page 14 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 9. | SHAREHOLDER’ EQUITY (continued) |
Movements in shareholder’s equity (in SKK thousand):
Balance sheet line | 1 January 2002 | 31 December 2002 | ||||||
Share capital | 064 | 3,733,700 |
| 3,733,700 |
| |||
Other capital funds | 068 | 1,036 |
| 1,036 |
| |||
Statutory reserve fund | 072 | 49,622 |
| 49,622 |
| |||
Profit/loss of previous periods: Loss carried forward from previous periods | 077 | (1,665,320 | ) | (1,033,076 | ) | |||
Profit/loss for the current period | 078 | (632,244 | ) | 743,755 |
| |||
Total shareholder’s equity | 062 | 2,751,282 |
| 3,495,037 |
| |||
At 31 December 2002 the Company has not recognised subscribed share capital not recorded in the Commercial Register.
On 25 April 2002 the General Meeting of the Company approved the individual financial statements and proposal for distribution of the 2001 profit. Loss carried forward from previous periods at SKK 1,665,320 thousand was reduced by the 2001 accounting profit at SKK 632,244 thousand, and amounts to SKK 1,033,076 thousand.
Proposed distribution of 2002 profit will be approved by the Company’s General Meeting on March 25, 2003
| 10. | PROVISIONS |
(balance sheet line 080)
1 January 2002 SKK ‘000 | Creation of provision SKK ‘000 | Release of provisions SKK ‘000 | 31 December 2002 SKK ‘000 | ||||||
Provisions for unrealised FX losses | 212,306 | 48,447 | (212,306 | ) | 48,447 | ||||
Other provisions | |||||||||
Warranty provision | 95 | — | (95 | ) | — | ||||
Provision for leased premises | 37,000 | 10,000 | (35,000 | ) | 12,000 | ||||
General risk provision | 34,500 | — | (34,500 | ) | — | ||||
Provision for losses from held securities | 9,892 | 181,248 | (171,979 | ) | 19,161 | ||||
Provision for other fines | — | 500 | — |
| 500 | ||||
Provision for retirement bonuses | — | 1,000 | — |
| 1,000 | ||||
Provision for EuroTel Klub | 25,316 | 51,300 | (36,138 | ) | 40,478 | ||||
Total | 319,109 | 292,495 | (490,018 | ) | 121,586 | ||||
Page 15 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 11. | LIABILITIES, ACCRUALS AND DEFERRED INCOME |
(Balance sheet line 084, 091 and 105)
Analysis of liabilities by time to maturity:
Within 1 year SKK ‘000 | Over 4 years SKK ‘000 | Total SKK ‘000 | ||||
Liabilities at 31 December 2002 | ||||||
Trade liabilities | 686,990 | — | 686,990 | |||
Other direct taxes | 7,467 | — | 7,467 | |||
Deferred tax liability | 662,895 | — | 662,895 | |||
Payables to employees | 25,402 | — | 25,402 | |||
Payables to social fund | 12,673 | — | 12,673 | |||
Advances received | 111,046 | — | 111,046 | |||
Other payables | 2,500 | — | 2,500 | |||
Long-term liabilities to related parties | — | 7,301,430 | 7,301,430 | |||
Deferred expenses and accrued income | 1,330,660 | — | 1,330,660 | |||
Total | 2,839,633 | 7,301,430 | 10,141,063 | |||
As a result of differences between the depreciation for tax and accounting purposes, the Company accounts for a deferred tax liability of SKK 662,895 thousand as at 31 December 2002.
Analysis of liabilities by due date:
31 December 2002 SKK ‘000 | 31 December 2001 SKK ‘000 | |||
Liabilities within due date | 10,141,063 | 9,938,320 | ||
Total | 10,141,063 | 9,938,320 | ||
At 31 December 2002 the Company has not recognised any overdue liabilities.
The Company has not recognised any pledged liabilities or liabilities from issue of bonds.
Page 16 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 11. | LIABILITIES, ACCRUALS AND DEFERRED INCOME (continued) |
Social fund
2002 SKK ‘000 | 2001 SKK ‘000 | |||||
Balance at 1 January | 2,735 |
| 2,139 |
| ||
Creation: | ||||||
From costs | 4,550 |
| 3,660 |
| ||
Withdrawal: | ||||||
Canteen catering and workforce regeneration | (3,874 | ) | (1,924 | ) | ||
Social aid, transportation | (911 | ) | (1,140 | ) | ||
Balance at 31 December | 2,500 |
| 2,735 |
| ||
Accrued expenses and deferred income
Balance sheet line | 31 December 2002 SKK ‘000 | |||
Accrued expenses | 107 | 276,542 | ||
Deferred income | 108 | 425,012 | ||
Foreign exchange gains | 109 | 1,466 | ||
Estimated liabilities | 110 | 627,640 | ||
Total | 1,330,660 | |||
At 31 December 2002 the significant items recorded in the accrued expenses and deferred income accounts represented estimated payables in respect of the interest on the loan from SWFC in the amount of SKK 212,339 thousand and charges for international roaming and interconnection of the network with other providers of telecommunication services (Orange, Nextra, Slovenské telekomunikácie) amounting to SKK 154,794 thousand. Investments not invoiced amounted to SKK 255,610 thousand. Deferred income was recognised at the amount of SKK 425,012 thousand and represented particularly prepaid customers and monthly charges for NMT, GSM and DNS invoiced in advance.
Page 17 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 12. | LONG-TERM INTERCOMPANY LIABILITIES |
(Balance sheet line 084)
23 March 2000 SWFC, a wholly owned subsidiary issued series-A bonds with 11¼% interest rate at the amount of EUR 175 million representing SKK 7,699,300 thousand. The Series-A bonds at the amount of EUR 172.2 million were exchanged for Series-B bonds with 11.25% interest rate. The bonds are guaranteed by the Company and are due on 30 March 2007.
In March 2000 SWFC provided a loan to the Company at EUR 175 million, representing SKK 7,699,300 thousand. The interest rate applicable to 30 September 2000 was 11.55% p.a. and 11.38% p.a. from 30 September 2000.
At 31 December 2002 the outstanding principle of the loan from SWFC at EUR amounted to SKK 7,301,350 thousand.
Terms and conditions under which the bonds were issued limit the re-payment of subordinated loans from shareholders including interest.
At 31 December 2002 the Company did not recognise loans provided by banking institutions.
| 13. | REVENUES |
(Income statement line 001 and 005)
Revenues from own production and goods by major products:
2002 SKK ‘000 | 2001 SKK ‘000 | |||
Revenues from the mobile communication services | 8,708,195 | 7,434,174 | ||
Revenues from the public data network services | 477,678 | 473,361 | ||
Total sales | 9,185,873 | 7,907,535 | ||
| 14. | REVENUES FROM FINANCIAL INVESTMENTS |
(Income statement line 035)
At 31 December 2002 the Company reported total revenues from financial investments at SKK 69,729 thousand (SKK 16,685 thousand at 31 December 2001), which represent interest on long-term securities purchased from SWFC and held to maturity.
| 15. | REVENUES FROM SHORT-TERM FINANCIAL ASSETS |
(Income statements line 036)
At 31 December 2002 the Company reported revenues from short term financial assets at total amount of SKK 137,563 thousand (SKK160,410 thousand at 31 December 2001), which represented interest on purchased bonds.
Page 18 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 16. | INTERESTS |
(Income statement lines 041 and 042)
Interest expense
Type of loan received | Amount of interest SKK ‘000 | ||
Long term loan from SWFC | 828,210 |
| |
Capitalised interest | (26,975 | ) | |
Other | 48 |
| |
Total | 801,283 |
| |
Interest income
At 31 December 2002 total interest income amounted to SKK 51,515 thousand (67,522 thousand at 31 December 2001) representing particularly interest on term deposits at SKK 51,376 thousand (SKK 66,878 thousand at 31 December 2001).
| 17. | EXTRAORDINARY REVENUES |
(Income statement line 053)
At 31 December 2002 the Company reported total extraordinary revenues at SKK 6,960 thousand (SKK 67,139 thousand at 31 December 2001).
| 18. | EXTRAORDINARY EXPENSE |
(Income statement line 054)
At 31 December 2002, the Company’s extraordinary expenses amounted to SKK 17,762 thousand (at 31 December 2001: SKK 25,189 thousand).
Page 19 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 19. | OPERATING LEASES |
The company reports liabilities to a number of third parties for the lease of administration and commercial spaces in which the Company has its own assets. The contracts with such third parties are concluded for a period from 1 to 11 years. The aggregated minimum amount of future rental payments arising from irrevocable rental agreements is as follows:
Period | 31 December 2002 SKK ‘000 | 31 December 2001 SKK ‘000 | ||
2002 | — | 140,793 | ||
2003 | 166,595 | 129,391 | ||
2004 | 146,914 | 135,557 | ||
2005 | 132,233 | 141,607 | ||
2006 | 111,008 | 140,097 | ||
2007 | 103,679 | 119,369 | ||
2008 – 2013 | 586,098 | 727,642 | ||
Total | 1,246,527 | 1,534,456 | ||
Rental payments expensed in 2002 amounted to SKK 261,404 thousand (SKK 264,513 thousand in 2001).
| 20. | OTHER FINANCIAL OBLIGATIONS |
In 2002, the Company concluded a cross currency interest rate swap contracts to secure approximately 50% the interest payments denominated in EUR payable on 31 March 2003, 30 September 2003 and 31 March 2004 against the risk of change in the SKK/EUR exchange rate. According to the terms of these contracts the Company agreed to pay fixed SKK cash flow of SKK 215,156 in exchange for a receipt of a fixed EUR cash flow of EUR 4,979 thousand on each of the above days, at an average rate of of approximately 43.21 SKK to EUR.
At 31 December 2002, the fair value of financial derivative contracts amounted to a loss of SKK 12,620 thousand.
At 31 December 2002 the Company had contractual obligations to acquire fixed assets in the amount of SKK 239,918 thousand (SKK 309,672 thousand at 31 December 2001). The above-mentioned obligations relate particularly to the construction of network, major proportion of the payments will be made within one year. The Company may withdraw from these obligations without significant penalties.
The Company did not recognise other financial liabilities that are not disclosed in the accounting or in balance sheet.
Page 20 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 21. | INFORMATION ON MEMBERS OF STATUTORY, SUPERVISORY, ADMINISTRATION, MANAGING AND OTHER BODIES OF THE COMPANY |
At 31 December 2002 the members of statutory, supervisory and managing bodies received cash and in-kind incomes amounting to SKK 35,905 thousand (SKK 17,842 thousand at 31 December 2001).
| 22. | RELATED PARTIES |
The Company carried out arm’s length transactions with the following related parties: Slovenské telekomunikácie, a.s., T-Mobile International, Eurotel Praha (Czech Republic), AWBV (The Netherlands), Rádiomobil (Czech Republic), T-Mobile (Germany), T-Mobile Austria, T-Mobile USA, T-Mobile UK, T-Mobile Netherlands, HT Mobile Communications (Croatia), Westel Mobile TeleCommunications (Hungary), Vodafone Omnitel (Italy), Mobile TeleSystems (Russia), Ukrainian Mobile Communications (Ukraine) a PTC (Poland). Transactions carried out with individual related parties during the accounting period are shown below:
2002 SKK ‘000 | 2001 SKK ‘000 | |||
Sale | ||||
Revenues for services—Slovenské telekomunikácie | 943,299 | 972,070 | ||
Sale of services to Eurotel Praha | 83,285 | 83,361 | ||
Sale of services to other related parties | 139,165 | 102,326 | ||
Purchase | ||||
Purchase of services from Slovenskéch telekomunikácie | 811,371 | 756,741 | ||
Rent paid to Slovenské telekomunikácie | 35,260 | 41,255 | ||
Purchase of services from Eurotel Praha | 43,035 | 33,470 | ||
Purchase of services from other related parties | 85,923 | 53,410 | ||
Services paid to T-Mobile | 19,008 | 3,744 | ||
Services paid to AWBV | 22,360 | 33,476 |
31 December 2002 SKK ‘000 | 31 December 2001 SKK ‘000 | |||
Receivables | ||||
Trade receivables, Slovenské telekomunikácie | 140,206 | 84,116 | ||
Trade receivables from other related parties | 32,056 | 20,788 | ||
Payables | ||||
Trade payables, Slovenské telekomunikácie | 96,715 | 63,676 | ||
Trade payables, AWBV | 1,001 | 6,293 | ||
Trade payables to other related parties | 16,890 | 1,728 | ||
Loans received from SWFC | 7,301,350 | 7,483,000 | ||
Loans received from ST | 48 | 48 | ||
Loans received from AWBV | 32 | 36 |
Page 21 of 23
EuroTel Bratislava, a.s. Notes to the Financial Statements For the year ended 31 December 2002 |
| 23. | POST BALANCE SHEET EVENTS |
There have been no post-balance sheet events that would have a significant impact on the true and fair view of the Company’s financial statements and that would require adjustment to, or disclosure in, these financial statements.
Bratislava, 19 February, 2003
Prepared by Jana Sadloňová, Head of Accounting Department
/S/ MICHAEL GÜNTHER | /S/ RAHUL NARAIN SAXENA | |||
Michael Günther Chairman of the Board of Directors | Rahul Narain Saxena Vice-Chairman of the Board of Directors |
/S/ IVAN BOšŇÁK | /S/ ADRIANA JONÁSOVÁ | |||
Ivan Bošňák Chief Financial Officer/Procurator | Adriana Jonásová Controller |
Page 22 of 23
EuroTel Bratislava, a.s.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| EuroTel Bratislava, a.s. | ||||
Date: June 17, 2003 | ||||
| By: | /s/ Robert Chvátal | |||
| Robert Chvátal | ||||
| Chief Executive Officer | ||||
| By: | /s/ Ivan Bošňák | |||
| Ivan Bošňák | ||||
| Chief Financial Officer | ||||
Page 23 of 23