Annual Report 2010 - Baltika Breweries

Recommendations

Info

92 OAO Baltika Breweries and subsidiaries 25. Operating leases Non-cancellable operating lease rentals are payable as follows: ’000 RUB 2010 2009 Less than one year 180,599 222,589 Between one and five years 53,126 59,137 More than five years 109,193 239,070 (a) Insurance 342,918 520,796 The Group leases a number of land plots and buildings under operating leases. Lessors for these leases are state authorities and third parties. The leases of land plots typically run for 6–49 years. Leases of buildings typically run for 11 months with an option to renew the lease after that date. The Group has no contingent rent arrangements or subleases. During the year ended 31 December 2010 an amount of RUB 268,848 thousand was recognised as an expense in profit or loss in respect of operating leases (2009: RUB 287,110 thousand). The insurance industry in the Russian Federation is in a developing state and many forms of insurance protection common in other parts of the world are not yet generally available. The Group does not have full coverage for its plant facilities, business interruption, or third party liability in respect of property or environmental damage arising from accidents on Group property or relating to Group operations. Until the Group obtains adequate insurance coverage, there is a risk that the loss or destruction of certain assets could have a material adverse effect on the Group’s operations and financial position (b) Taxation contingencies in the Russian Federation The taxation system in the Russian Federation continues to evolve and is characterised by frequent changes in legislation, official pronouncements and court decisions, which are sometimes contradictory and subject to varying interpretation by different tax authorities. Taxes are subject to review and investigation by a number of authorities, which have the authority to impose severe fines, penalties and interest charges. A tax year remains open for review by the tax authorities during the three subsequent calendar years; however, under certain circumstances a tax year may remain open longer. Recent events within the Russian Federation suggest that the tax authorities are taking a more assertive and substance-based position in their interpretation and enforcement of tax legislation. These circumstances may create tax risks in the Russian Federation that are substantially more significant than in other countries. Management believes that it has provided adequately for tax liabilities based on its interpretations of applicable Russian tax legislation, official pronouncements and court decisions. However, the interpretations of the relevant authorities could differ and the effect on these consolidated financial statements, if the authorities were successful in enforcing their interpretations, could be significant. 26. Capital commitments As at 31 December 2010 the Group had the following commitments relating to property, plant and equipment (31 December 2009: RUB 298,073 thousand): Project 2010 ’000 RUB Baltika-St. Petersburg plant 148,390 Baltika-Rostov plant 31,080 Baltika-Novosibirsk plant 26,018 Baltika-Khabarovsk plant 21,801 Baltika-Yaroslavl plant 17,900 Baltika-Pikra plant 12,553 Baltika-Samara plant 6,488 Baltika-Chelyabinsk plant 3,522 Baltika-Baku plant 2,808 Baltika-Tula plant 1,249 Baltika-Voronezh plant 483 27. Contingencies 28. Related party transactions (a) Control relationships 272,292 The Company’s parent company is Baltic Beverages Holding AB (refer note 1(b)). The Company’s ultimate parent company is Carlsberg A/S and the Company’s ultimate controlling party is the Carlsberg Foundation. Carlsberg A/S produces consolidated financial statements that are available for public use. (b) Management remuneration Key management received the following remuneration during the year, which is included in personnel costs (see note 9): ’000 RUB 2010 2009 Salaries and bonuses 398,169 427,026 Compulsory social security contributions Contributions to defined contribution plan 5,503 12,719 11,003 9,989 Termination benefits 26,427 — 441,102 449,734
Notes to the Consolidated Financial Statements for the year ended 31 December 2010 (c) Transactions with other related parties The Group’s other related party transactions are disclosed below. (i) Revenue ’000 RUB Sale of goods: Transaction value 2010 Transaction value 2009 Outstanding balance 2010 Outstanding balance 2009 Fellow subsidiaries Royalties received 431,237 49,912 134,164 21,813 Fellow subsidiaries Interest received: 570,978 62,767 34,542 — Carlsberg Breweries A/S 2,690 591 50 591 Parent company Services provided: 2,229 597 — 597 Fellow subsidiaries 16,958 — — Equity accounted investee Other income 57,059 24,361 28,594 9,214 Parent company — 79,237 — — 1,081,151 217,465 197,350 32,215 (ii) Expenses ’000 RUB Purchase of goods: Transaction value 2010 Transaction value 2009 Outstanding balance 2010 Outstanding balance 2009 Equity accounted investee 231,072 571,736 38,487 42,902 Carlsberg Breweries A/S 11,379 13,971 — 33,062 Fellow subsidiaries Services received: 57,979 18,380 3,300 7,012 Carlsberg Breweries A/S 96,188 39,430 30,351 — Fellow subsidiaries Royalties paid: 11,610 178 1,805 — Carlsberg Breweries A/S 417,385 630,571 35,209 291,756 Fellow subsidiaries Finance costs: 19,484 18,803 5,987 3,626 Carlsberg Breweries A/S Other expenses: — 101,556 — — Carlsberg Breweries A/S 106,812 150,766 317,336 162,688 951,909 1,545,391 432,475 541,046 During the year ended 31 December 2010 the Group’s purchases of malt from Soufflet, an associate of the Group, amounted to RUB 231,072 thousand (excluding VAT) or 6.9 % of the total value of malt purchases and own production and 30,008 tons or 9.1 % of the total volume of malt purchases and own production. During the year ended 31 December 2009 the Group’s purchases of malt from Soufflet amounted to RUB 571,736 thousand (excluding VAT) or 17.1 % of the total value of malt purchases and own production and 41,926 tons or 12.6 % of the total volume of malt purchases and own production. All outstanding balances with related parties are to be settled in cash within two months of the reporting date. None of the balances are secured. 93
Page 3 and 4:
Contents PRESIDENT’ STATEMENT . .
Page 5 and 6:
President’s Statement Dear Ladies
Page 7 and 8:
The Company in 2010 agencies, Balti
Page 9 and 10:
Company’s Philosophy The Winning
Page 11 and 12:
Main Events of 2010 July July 9 th
Page 13 and 14:
Beer Market. The Company’s Positi
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Brand Portfolio Beer brands Super p
Page 21 and 22:
Baltika No. 20 Jubilee Baltika No.
Page 23 and 24:
Brand Portfolio The Company intends
Page 25 and 26:
Brand Portfolio Each of these award
Page 27 and 28:
Financial Position In 2010, an unpr
Page 29 and 30:
Financial Position Liquidity and ef
Page 31 and 32:
Key Projects Logistics The Company
Page 33 and 34:
Key Projects Quality Management Sys
Page 35 and 36:
Key Projects Renovating Grain Stora
Page 37 and 38:
Key Projects Professional Awards Th
Page 39 and 40:
The Company’s philosophy is based
Page 41 and 42:
Corporate Social Responsibility Lab
Page 43 and 44: Corporate Social Responsibility In
Page 45 and 46: Corporate Social Responsibility Ear
Page 47 and 48: Corporate Social Responsibility Com
Page 49 and 50: Taxes Corporate Social Responsibili
Page 51 and 52: Baltika adheres to best practice co
Page 53 and 54: Anton Artemiev President Governance
Page 55 and 56: Corporate Governance Decreasing cha
Page 57 and 58: Hans Kasper Madsen Born 1961, highe
Page 59 and 60: Corporate Governance The Audit Comm
Page 61 and 62: Corporate Governance Credit risk ma
Page 63 and 64: Securities Shares in Circulation Th
Page 65 and 66: Securities Dividend Policy The Comp
Page 67 and 68: Contents Independent Auditors’ Re
Page 69 and 70: Consolidated Statement of Financial
Page 71 and 72: Consolidated Statement of Comprehen
Page 73 and 74: Consolidated Statement of Cash Flow
Page 75 and 76: Notes to the Consolidated Financial
Page 93: (ii) Interest rate risk Changes in
Page 97 and 98: 2010 Corporate Transactions that ar
Page 99 and 100: Date and Approval Authority No Cont
Page 101 and 102: Date and Approval Authority No Cont
Page 103 and 104: Information for Shareholders and In
Page 105 and 106: Сontact Information To arrange a g
show all

Annual Report 2010 - Baltika Breweries

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?