ANNUAL REPORT - KORADO, as

KORADO, a.s.
Financial Statements for the year ended 31 December 2010
7. IMPAIRMENT PROVISIONS
Impairment provisions reflect a temporary diminution in value of assets (see Notes 4, 5 and 6).
Changes in the impairment provision accounts (in CZK thousands):
Impairment provisions against: Balance as at Changes Balance as at
31. 12. 2009 31. 12. 2010
Long-term financial assets 173,606 (15,179) 158,427
Inventory 2,142 (424) 1,718
Receivables – statutory 11,584 (68) 11,516
Receivables – other 13,166 7,184 20,350
Total 200,498 (8,487) 192,011
Legal impairment provisions are created in compliance with
the Act on Provisions.
Impairment provisions against receivables from group companies
(see Note 4c).
8. SHORT-TERM FINANCIAL ASSETS
As at 31 December 2010 short term financial assets in the
amount of CZK 3,465 thousand were pledged as security for
loans from UniCredit Bank Czech Republic, a.s. (see Note 13).
9. OTHER ASSETS
As at 31 December 2010 and 2009, prepaid expenses included
in particular the costs of CZK 5,039 thousand and
CZK 3,440 thousand, respectively, incurred in loan refinanc-
The movements in the capital accounts during 2010 and 2009 were as follows (in CZK thousands):
Balance as at Increase Decrease Balance as at
31. 12. 2009 /Transfers /Transfers 31. 12. 2010
Number of shares 2,402 - - 2,402
Basic capital 840,700 - - 840,700
Other capital funds 48 - - 48
Differences arising from revaluation of assets and liabilities (48,108) 10,568 (10,412) (47,952)
Legal reserve fund 41,425 3,320 - 44,745
Retained earnings 367,921 63,075 - 430,996
Profit for the current year 66,395 19,644 (66,395) 19,644
As at 31 December 2010 and 2009, ownership interests in
subsidiaries and associates denominated in foreign currencies
were recalculated at the year-end exchange rate pub-
ing that have been accrued over the term of the loan and are
amortized over the period of loan repayment. Expenses of
CZK 3,440 thousand and CZK 1,147 thousand, respectively,
were charged to finance costs in 2010 and 2009. Prepaid
expenses also include lease installments, property insurance
and software maintenance costs, which are charged to income
for the year in which they were incurred.
In 2010 unbilled revenues include, in particular, a credit note
from Korado Bulgaria and in 2009 supplier bonuses.
10. EQUITY
The basic capital of the Company consists of 2,402 registered
shares fully subscribed and paid, with a nominal value
of CZK 350 thousand.
lished by the Czech National Bank, with any arising exchange
rate differences being posted to revaluation accounts.
The Annual General Meetings held on 30 June 2010 and 30 June 2009, respectively, approved the following profit
distribution for 2009 and 2008 (in CZK thousands):
Profit for 2009 66,395 Profit for 2008 26,895
Allocation to legal reserve fund (3,320) Allocation to legal reserve fund (1,345)
Undistributed profits added to retained earnings 63,075 Undistributed profits added to retained earnings 25,551
Retained earnings as at 31 December 2010 430,996 Retained earnings as at 31 December 2009 367,921
Annual Report 2010 39