TŽ Annual Report 2008 in pdf, 7.5 MB - Třinecké železárny

The reserves for repairs of tangible fixed assets (tax deductible) were made for repairs of main production facilities in compliance with the ProvisioningAct. The creation of reserves is based upon a long-term repair plan, timing and budget of repairs.Other reserves consist of reserves for the scrapping of equipment, emission allowances, additionally assessed taxes, real estate transfer tax, employeebonuses and losses incurred in connection with a concluded long-term contract.5.14. Payables5.14.1. Long-Term Payables (CZK thousand)Balance at 31 Dec 2008 Balance at 31 Dec 2007 Balance at 31 Dec 2006Long-term payables– Trade payables 6 888 24 189 6 096– Long-term bills of exchange to be settled 0 0 27 495– Long-term prepayments received 1 360 369 0– Other payables 1 000 0 706– Deferred tax liability 822 055 815 611 883 025– Tax liabilities and grants 0 0 0Total 831 303 840 169 917 322Long-term bills of exchange to be settled reported as of 31 December 2006 reflected the nominal value of bills of exchange issued in order to cover the dueamount arising from the renovation and modernisation of the light section mill. Interest expense on these bills of exchange is recorded as a deferred expense.As of 31 December 2008 and 2007, these bills of exchange are recorded as short-term trade payables.5.14.2. Short-Term Trade Payables (CZK thousand)Balance at 31 Dec 2008 Balance at 31 Dec 2007 Balance at 31 Dec 2006Short-term trade payables– Customers 3 470 877 3 119 305 2 460 840– Bills of exchange to be settled 0 26 620 27 495– Other payables 288 290 1 884Total 3 471 165 3 146 215 2 490 219Aging of Short-Term Trade Payables(CZK thousand)Year Category Before due date Past due date Total1 – 90 days 91 – 180 days 181 – 360 days 1 – 2 years 2 years andgreater2008 Short-term 3 346 560 102 126 9 867 12 716 –88 –16 3 471 1652007 Short-term 3 081 127 61 843 2 850 327 14 54 3 146 2152006 Short-term 2 445 207 43 231 867 29 885 0 2 490 219Payables typically fall due for settlement within 30 days. Significant payables past due more than 90 days predominantly arise from offset agreements inprogress.Other PayablesAs of 31 December 2008, payables associated with social security and the state employment policy contribution amounted to CZK 89,379 thousand, healthinsurance payables totalled CZK 39,143 thousand. The Company has no outstanding social security or health insurance payables. Payables arising fromadditional pension scheme amounted to CZK 4,031 thousand as of 31 December 2008.The category State – tax payables and subsidies principally comprises valued added tax payables, income tax payable and received subsidies.Estimated payables mainly consist of unbilled supplies of work and services and an estimated amount for outstanding vacation days and annual bonusesincluding insurance.Other payables primarily relate to deductions from employee salaries.A N N U A L R E P O R T T Ř I N E C K É Ž E L E Z Á R N Y , a . s . 2 0 0 895