Annual report 2005 - Sava dd

| notes to the consolidated financial statements in accordance with IFRS |
2005 2004
No. of Sava d.d. shares owned by Gorenjska Banka 52,500 52,500
Stake of Gorenjska Banka d.d. in Sava d.d. 2.62% 2.62%
1 7 7 |
Estimating fair values
Securities available for sale
The fair value of a available-for-sale securities that are
listed equals the quoted market price on the balance
sheet date. The fair value of shares and stakes of unlisted
companies is estimated on the basis of last known
transactions.
Interest-bearing loans and borrowings
The fair value is estimated as a discounted value of
expected cash flows from the principal and interests,
whereby the effective interest rate equals the contracting
interest rate, which fluctuates and mainly changes every
three months (3-month Euribor).
Current receivables and liabilities
For receivables and liabilities with a remaining life of
less than one year, the notional amount is deemed to
reflect the fair value.
30. Contingencies
At 31 December 2005 the Sava Group presents no
contingencies. All known liabilities are included in the
consolidated financial statements.
31. Related parties
Related parties include subsidiaries and associates,
members of supervisory boards, board of management
of the parent company and subsidiaries in the Group and
their close family members.
Relations with subsidiaries
Business relations among the companies of the Sava
Group relate to the purchase and sale of raw materials,
finished products and merchandise. Services provided
within the Sava Group companies are mainly rents for
real estate and equipment, the use of the trade mark and
services by competence centres.
Transactions among related parties are performed on an
arm's length basis.
For loans which associates borrowed from banks and are
presented in the consolidated financial statements under
liabilities to banks guarantees were issued by the parent
company. The guarantees at 31/12/2005 totalled
10,353,612,000 tolars. Issued guarantees are considered
insurance contracts according to IFRS 4.
Relations with associates
Gorenjska Banka d.d., Kranj is the most important
associate of Sava d.d.:
The companies in the Sava Group raise loans with and make deposits in Gorenjska Banka. Terms and conditions for
these transactions equal those effective for other companies with a similar rating.
Survey of transactions with Gorenjska Banka d.d.
(SIT in thousands)
2005 2004
Balance of raised borrowings at 01/01 5,043,095 3,402,002
Hiring new borrowings 3,672,250 5,765,880
Repayment of borrowings -3,657,905 -4,124,787
Balance of raised borrowings at 31/12 5,057,440 5,043,095
Balance of paid deposits at 31/12 100,313 0