Annual Report - Končar Distribution and Special Transformers Inc.

Notes to the financial statements - continued
28. PROVISIONS
1 January 2011
Additional provisions
Release of provisions
31 December 2011
Additional provisions
Release of provisions
31 December 2012
Warranty
costs
HRK
Legal
court
cases
HRK
Retirement
and
jubilee
rewards
HRK
Total
HRK
118,761,031 — 1,173,500 119,934,531
14,955,642 — - 14,955,642
— — (58,912) (58,912)
133,716,673 — 1,114,588 134,831,261
4,840,833 — 348,792 5,189,625
— — - -
138,557,506 — 1,463,380 140,020,886
29. LONG TERM LIABILITIES
Liabilities towards banks and other financial institutions
Raiffeisen bank Austria d.d., Zagreb - CBRD program
Splitska bank SG - CBRD program
Less: Current portion
Total
31/12/2012 31/12/2011
HRK
HRK
51,002,758 9,299,544
15,068,793 —
(8,346,736) (3,576,748)
57,724,815 5,722,796
Long-term liabilities towards banks and financial institutions relate to three loans from Raiffeisen bank Austria d.d. and one
loan from Splitska bank d.d. from the CBRD program for financing the economy’s development.
The first loan, in the amount of HRK 15 million at the annual interest rate of 4% and with the due date of 31 December of
2014, was granted in January 2005 for the purchase of equipment and the re-construction of production capacities. The
collateral for the loan is a mortgage over the Company’s equipment.
The second loan, in the amount of EUR 1,025,233 with an annual interest rate of 4% and a due date on 31 December
2014, was approved in April 2006 for financing the investments in the production capacities (the construction of a production
hall). The collateral for the loan is a mortgage over the Company’s real estates.
The third loan was approved in October 2011 in amount of EUR 5,999,293 at the annual interest rate of 4% for financing
investment in HV Laboratory. The repayment start on 30 September 2014 and due date is on 30 June 2022. The collateral
for the loan is a mortgage over the Company’s real estates.
The fourth loan from CBRD program is realized through Splitska bank d.d. and was approved in September 2012. Part
of this loan is granted by CBRD in amount of HRK 7.5 million and part granted by Splitska bank d.d. in amount of EUR
1,014,288 at the annual interest rate of 4%. The repayment start on 31 March 2013 and due date is on 30 September 2015.
The collateral for the loan is a mortgage over the Company’s real estates. Purpose of the loan is the settlement of trade
payables.
The mortgage over the Company’s non-current assets amounts to EUR 36.7 million (Note 18).
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