Aktsiaselts Tallink Grupp - NASDAQ OMX Baltic

FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED AUGUST 31, 2005
NOTES TO THE FINANCIAL STATEMENTS—(Continued)
Note 12 OTHER FINANCIAL ASSETS AND PREPAYMENTS (Continued)
As of August 31, 2005 the receivables from subsidiaries consists of the following loans granted to
subsidiaries:
(1) to Tallink Ltd in the amount of EEK 120,997,000 (2004: EEK 120,997,000) with 2014 as the maturity
date and interest rate of 6%;
(2) to Victory Line Ltd in the amount of EEK 347,000,000 (2004: EEK 496,630,000) with a non-agreed
maturity date and an interest rate of 0%. In the opinion of the Parent’s management there is not a
material impact on the financial statements from not using the effective interest rate, as
Victory Line Ltd is a fully-owned subsidiary of the Parent. Therefore, the specified loan carrying
amount has not been adjusted with the effective interest rate in either company’s financial statements.
The split between current and non-current assets has been made based on the estimate of the Parent’s
management of the actual payments in the next financial year.
The short-term portion of the loans specified above in the total amount of EEK 158,685,000 (2004:
EEK 147,821,000) has been recorded under current receivables (see Note 8).
As of August 31,2005 and 2004 other receivables and prepaid expenses of the Group included long-term
prepayment (term-less).
As of August 31,2005 the balance of other receivables and prepaid expenses of the Parent includes the
additional prepayments made for the new ships of Tallink Sea Line Ltd and Tallink Hansaway Ltd (subsidiaries).
The specified prepayments have been recorded as a prepayment for property, plant and equipment in the balance
sheet of the Group—see also Note 13.
Note 13 PROPERTY, PLANT AND EQUIPMENT
for the year ended August 31
Land and
Plant and
Construction in
progress &
The Group
buildings Ships equipment prepayments Total
Book value as of August 31, 2003 ........... 8,291 3,523,802 24,246 345,745 3,902,084
Additions ............................... 4,333 2,626,260 27,268 (263,397) 1 2,394,464
Disposals ............................... 0 0 (631) 0 (631)
Depreciation for the year ................... (1,246) (230,040) (13,693) 0 (244,979)
Book value as of August 31, 2004 ........... 11,378 5,920,022 37,190 82,348 6,050,938
Additions ............................... 1,667 149,244 12,954 193,404 1 357,269
Disposals ............................... 0 0 (975) 0 (975)
Depreciation for the year ................... (1,458) (251,184) (17,870) 0 (270,512)
Book value as of August 31, 2005 ........... 11,587 5,818,082 31,299 275,752 6,136,720
As of August 31, 2004
—cost .................................. 17,516 6,801,988 91,558 82,348 6,993,410
—accumulated depreciation ................
As of August 31, 2005
(6,138) (881,966) (54,368) 0 (942,472)
—cost .................................. 19,183 6,933,884 95,764 275,752 7,324,583
—accumulated depreciation ................ (7,596) (1,115,802) (64,465) 0 (1,187,863)
1 The amount of additions of construction in process and prepayments includes also transfers from construction in process and
prepayments to ships in the total amount of EEK 345,745,000 and EEK 82,128,000 in the financial year ended August 31, 2005 and
2004, respectively.
For more information about the leased assets see also Note 15.
During the financial year the Group has capitalised borrowing costs as a part of the ship cost in the amount
of EEK 0 (2004: EEK 672,000)—100% of borrowing expenses related to the loans received to finance the
building of ships.
F-22