The Group KD Group and KD Group dd

The Group KD Group Annual Report 2009
Notes to Consolidated Financial Statements as at and for the year ended 31 December 2009
Following the annulment of the above Order for updated report, the Agency issued a new Order for updated report No..
40105-2559/08-27 of 17 December 2008, which is, based on the legal action brought by the insurance company on 5 January
2010, again under judicial review. The lawsuit is currently in progress. Since instituting proceedings against the Order for
updated report and the Decision of the Agency No. 40109-221/09-27 of 11 February 2009, by which the Agency decided on
objection to the Order for the updated report does not stay the execution thereof, the insurance company on 26 January 2010
reconciled insurance technical provisions and investments in accordance with the Order for updated report and the Decision.
As at 31 January 2010 the insurance company formed insurance technical provisions for guaranteed minimum payment of
endowment on the life insurance assets covering mathematical provisions in the amount of EUR 6,127,227. The difference to
the full amount of insurance technical provisions arising from the value of units in structured debt securities of Asia Garant
and Asia Garant + was recognised within unit-linked assets in the amount of EUR 305,014.
On 20 January 2010 legal action was brought to the court against the Decision of the Ministry of Finance, Directorate for the
System of Tax, Customs and Other Public Revenues, Division for Administrative Procedure at II. Degree in Tax and Customs
Matters No. DT-499-02-32/2007 of 10 December 2009, rejecting the company's appeal against first instance decision of the
Ministry of Finance, Tax Administration of the Republic of Slovenia, the Special Tax Office, No. DT 0610-11/2007 0203 10 of
19 June 2007. Taxes and fees the payment of which was required in the said decision were paid already in 2007.
On 12 January 2010 at the time when the preparation of these financial statements was drawing to its end, the inspectors of
the Tax Administration of the Republic of Slovenia began the examination of the corporate income tax for the year 2008. The
tax inspection is expected take three months; hence by the time the annual report and accounts for 2009 drawn up by the
reporting entity were completed, no decision has been issued by the tax authorities.
On 10 February 2010, the Supervisory Board of Adriatic Slovenica deliberating on the basis of the notice given by Mr. Marko
Rems resigning his position of a member of the Management Board dated 25 November 2009 relieved him of his duty. Until
the appointment of a new member of the Management Board, the insurance company Adriatic Slovenicaa will be run by the
two-memebr Management Board composed of two members.
On 19 March 2010, a report about the measures taken to remedy the infringement specified in the decision issued by the
Insurance Supervision Agency was sent to the Slovenian supervisory authority. By the time of the publication of this Annual
Report for 2009, the insurance company has not received any feedback.
The following companies are in the process of winding up:
KD Asset Management b.v., the Netherlands
KD Investment Belgrade
KD Private Equity Belgrade
KD Securities EAD Sofia, Bulgaria
R.E.Invest d.o.o., Slovenia
The companies SC KD Fond de Pensii s.a., Romania and KD Capital Management, Romania are currently in the process of
being sold.
173