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

MODIFIED OPINION
In our opinion, except for the effect of the matters discussed in paragraph a) above, the 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.
EMPHASIS OF MATTER
a) Going concern
Without qualifying our opinion, we draw attention to Note 2 to the financial statements, describing the matters
regarding the ability of the Company to continue as a going concern. The explanation provided shows that the
business operations could be maintained in the longer term with continuous support of the Parent. As a result, the
accounting principles applied are based on the assumption that the Company will be able to continue as a going
concern. Our opinion is not modified in respect of this matter.
b) Accounting policy for leases
As described in Note 1 to the accompanying financial statements, the HEP d.d. 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 HEP d.d. 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.
Deloitte d.o.o.
Branislav Vrtačnik, Certificated Auditor
Zagreb, 25 May 2011
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HEP ANNUAL REPORT 2010 CHAPTER 7 - REPORTS BY HEP GROUP COMPANIES WITH FINANCIAL STATEMENTS