Å kodaAuto ANNUAL REPORT 2006 - Skoda Auto

Non-current and current provisions according to the time of expected use of resources:
Balance at 31.12.2005 < 1 year > 1 year Total
Provisions for warranty claims 2,064 3,544 5,608
Provisions for other obligations arising from sales 827 – 827
Provisions for employee benefits 109 334 443
Provisions for the disposal of end-of-life vehicles 58 – 58
Other provisions 552 – 552
Total 3,610 3,878 7,488
Balance at 31.12.2006 < 1 year > 1 year Total
Provisions for warranty claims 2,207 4,514 6,721
Provisions for other obligations arising from sales 770 – 770
Provisions for employee benefits 171 372 543
Provisions for the disposal of end-of-life vehicles 78 – 78
Other provisions 303 – 303
Total 3,529 4,886 8,415
Provisions for other obligations arising from sales include provision for sale discounts, sale bonuses and similar allowances incurred
settlement of which is expected after the balance sheet date, but for which there is a legal or constructive obligation attributable to sales
revenue before the balance sheet date.
Provisions for employee expenses include mainly provisions for long-term employee benefits and severance payments.
Other provisions include mainly provisions for legal fees and penalty interest.
The Company is not involved in any legal cases or arbitration proceedings that could have a significant impact on the financial position
and the financial results (financial statements) of the Company and there are no proceedings expected in the near future. The Company
provides for the probable expenses for existing legal and arbitration proceedings by means of a relevant provision.
18. Cash flow statement
The cash and cash equivalents contained in the cash flow statement do not comprise only cash reported in the balance sheet, but include
also other liquid means in form of short term loans to due within three months of CZK 23,971 million as at 31 December 2006
(31 December 2005: CZK 11,200 million). Cash flows are presented in the cash flows statement and are classified into cash flow from
operating activities, investing activities and financing activities, irrespective of the format of the balance sheet.
Cash flows from operating activities are derived indirectly from profit before tax. Profit before tax is adjusted to eliminate non-cash
expenses (e.g. depreciation and amortisation) and income and changes in working capital.
Investing activities include additions to property, plant and equipment, non-current financial assets, as well as to capitalised development cost.
Financing activities include besides the outflows and inflows of cash from dividend payments, redemption of bonds and factoring liabilities
also outflows and inflows from other financial loans.
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