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

INDEPENDENT AUDITOR’S REPORT
(CONTINUED)
MODIFIED OPINION
In our opinion, except for the effect of the matter presented under b) above and the potential effects of the matter
presented under a) above, the unconsolidated financial statements present fairly, in all material respects, the
financial position of the Company at 31 December 2010, the results of its operations and its cash flows for the year
then ended in accordance with International Financial Reporting Standards.
EMPHASES OF MATTER
a) Revenue recognition policy
As described in Note 1 to the accompanying unconsolidated financial statements, the Company recognizes revenue
based on the invoicing of its subsidiary HEP Operator distribucijskog sustava d.o.o., HEP Opskrba d.o.o. and HEP
Operator prijenosnog sustava d.o.o. to the final customers of the Group. However, the receivables from the final
customers remain with the subsidiary. This policy is in accordance with the relevant laws based on group of tariff
laws. Our opinion is not modified in respect of this matter.
b) Accounting policy for leases
As described in Note 1 to the accompanying unconsolidated financial statements, the Company has leased certain
property, plant and equipment under finance lease agreements to its subsidiaries. The leases bear interest to the
extent of the rates applicable to external funding acquired by the Company to construct those assets. These lease
receivables are carried at nominal amounts because of the special organizational framework of the HEP Group. Our
opinion is not modified in respect of this matter.
c) Unconsolidated financial statements
The Company has prepared the accompanying unconsolidated financial statements in accordance with International
Financial Reporting Standards and the requirements imposed by Croatian laws and regulations, and presented its
investments in subsidiaries and associates at cost. The Company has also prepared the consolidated financial statements
of Hrvatska elektroprivreda d.d. and its subsidiaries dated 30 April 2011. For a better understanding of the
operations of the Group as a whole, the consolidated financial statements should be read in conjunction with these
financial statements. Our opinion is not modified in respect of this matter.
Deloitte d.o.o.
Branislav Vrtačnik, Certified Auditor
Zagreb, 25 May 2011
129
HEP ANNUAL REPORT 2010
CHAPTER 6 - FINANCIAL STATEMENTS