2011 Annual Report - Italcementi Group

of the favorable ruling obtained in Russia, Sibconcord filed for compulsory execution in Kazakhstan, which was
rejected by the courts in January 2012. Sibconcord has appealed against this ruling.
As contemplated by the contract, Ciments Français began arbitration proceedings (in Istanbul) in accordance
with the regulation of the International Chamber of Commerce. On December 7, 2010, it obtained a favorable
arbitration award recognizing the validity of the resolution of the contract by Ciments Français with the right to
retain the 50 million euro paid by Sibcem. On May 31, 2011, Sibcem obtained the annulment of the arbitration
award from the territorially competent Turkish court; Ciments Français filed an appeal and in the meantime
continued proceedings for the recognition of the award in a number of countries.
India
On the proceedings begun in 2006 by the Indian Antitrust Authority, Zuari Cement Ltd. has drawn up its
defense. No new developments took place.
For the investigation begun in August 2010 by the Indian Antitrust Authority against cement producers,
including the Zuari Cement Ltd. and Sri Vishnu Cement companies, for alleged unfair trading, no developments
took place after the response to the request for information.
At the end of 2007, Zuari signed a contract with Larsen & Toubro (L&T) concerning civil and mechanical works
for the Yerraguntla cement plant. During execution of the contract, L&T requested an additional amount for
alleged extra costs and extended duration of work. In turn, the contract awarder, Zuari Cement, presented a
request for compensation of 29 million euro including penalties for delays and breaches in execution of the
work; also, in July 2011, Zuari Cement terminated the contract for non-fulfillment. In August 2011 L&T sent
Zuari a request for arbitration followed in January 2012 by a request for compensation of 31 million euro. The
proceeding, which is taking place in India, is still underway.
21. Deferred tax assets and Deferred tax liabilities
Total net deferred tax liabilities are analyzed below:
December 31, 2010 Results Other changes December 31, 2011
(in millions of euro)
Benefit on tax loss carryforwards 37.7 2.1 18.1 57.9
Property, plant and equipment (334.0) 9.9 (11.7) (335.8)
Inventories (13.9) 0.5 (1.6) (15.0)
Non-current provisions and Employee benefits 90.9 1.2 10.1 102.2
Other 32.8 20.1 (8.1) 44.8
Total net deferred taxes (186.5) 33.8 6.8 (145.9)
of which:
Deferred tax assets 53.0 76.2
Deferred tax liabilities (239.5) (222.1)
At December 31, 2011, deferred tax liabilities reflected in equity reserves amounted to 1.5 million euro
(deferred tax assets of 1.7 million euro at December 31, 2010).
Off-balance sheet deferred tax assets relating to losses for the year and previous years amounted to
approximately 143.3 million euro (102.4 million euro at December 31, 2010). They related to Group company
losses, reversal of which is not considered reasonably certain at the present time.
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