DRAVA, KUPA, RJE»INA, LOKVARKA, LI»ANKA LIKA, DOBRA ...

108
HEP ANNUAL REPORT 2010
CHAPTER 6 - FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS OF THE HEP GROUP (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2010
23. CAPITAL AND RESERVES
The original registration of share capital on 12 December 1994 was made in German Marks (DEM 5,784,832 thousand).
On 19 July 1995, the share capital was reregistered in Croatian Kuna in the value of HRK 19,792,159 thousand. The
share capital consists of 10,995,644 ordinary shares, with a nominal value of HRK 1,800 each.
The value adjustment of the investment in NPPK in respect of exchange differences was charged to equity.
Exchange differences in NPPK as of 31 December 2010 amounted to HRK 131,472 (HRK 17,354 thousands in
2010, HRK 4,005 thousands in 2009).
Retained earnings in the amount of HRK 816,246 thousand comprise prior year profits in the amount of HRK
118,245 thousand, transferred loss in the amount of HRK 723,302 thousands, profit for the year in the amount of
HRK 1,421,303 thousand. The non-controlling interest attributable to RWE amounts to HRK 76,993 thousand of which
HRK 14,063 thousand represent dividends attributable to the foreign equity holder.
CAPITAL RESERVES
31 December 2010 31 December 2009
HRK’000 HRK’000
Opening balance of reserves (2,038,472) (1,891,069)
Transfer from retained earnings 1,008,073 -
Exchange differences – NPPK 17,354 (148,826)
Fair valuation of shares 7,499 1,423
(1,005,546) (2,038,472)
RETAINED EARNINGS
31 December 2010 31 December 2009
HRK’000 HRK’000
Opening balance 403,018 267,174
Correction of opening balance (2) -
Transfer to reserves (1,008,073) -
Profit for the year 1,421,303 135,844
816,246 403,018
Based on General Assembly decision dated from June 30,2010 about distribution of profits from 2009 and retained
earnings from prior year transfer in amount of HRK 1,008,073 thousand was done to cover negative reserves from
previous years.
On 2 April 2011, the Government of the Republic of Croatia adopted a decision on the distribution of profit,
that a minimum of half of the current year’s profit of companies owned by the Republic of Croatia that operate with
profit should be distributed. The decision should be ratified in the General Shareholders’ Meeting of the Company.