Joint Stock Company
‘SIGULDAS CILTSLIETU UN
MĀKSLĪGĀS APSĒKLOŠANAS
STACIJA’
ANNUAL REPORT
for 2021
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Index of Contents
2
Page
Information on the Company 3
Management Report 4
Profit or Loss Account 5
Balance sheet 6
Cash flow statement 8
Statement on changes in shareholders’ equity 9
Notes to the Financial Statements 10
Report on Management Liability 24
Independent Auditors’ Report 25
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Information on the Company
3
Company’s name
SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA
Company’s legal status
Joint stock company
Registration number, place and date
40003013295, Riga, 26 July 1991
Registration in the Commercial Register on 19 June 2004
Legal address
‘Kalnabeites 8’, Sigulda, Sigulda municipality, LV-2150
Shareholders holding more than 5% of the
total number of voting shares
‘Siguldas mākslīgās apsēklošanas stacija’ Ltd. (49.92%),
registration No. 40003311954
SCI AG (5.95%)
Bartholomäus-Arnoldi-Str. 82, DE-61250 Usingen, Germany
Oļegs Radčenko (5.19%)
Members of the Management Board
Nils Ivars Feodorovs, chairman of the Management Board, holding 400
shares
Sarmīte Arcimoviča, member of the Management Board, holding
4 124 shares
Valda Mālniece, member of the Management Board, holding 14 260
shares
Members of the Supervisory Board
Inita Bedrīte, chairwoman of the Supervisory Board, holding 1 084 shares
Maija Beča, deputy chairwoman of the Supervisory Board, holding 3 066
shares
Baiba Mecauce, member of the Supervisory Board, holding 10 304
shares
Guntis Mecaucis, member of the Supervisory Board, holding 5 448
shares
Jānis Tūtāns, member of the Supervisory Board, holding 1 084 shares
Reporting period
01.01.2021 – 31.12.2021
Previous reporting period
01.01.2020 – 31.12.2020
Auditors
Olga Kuzmiča
Sworn Auditor
Certificate No. 207
‘Orients Audit & Finance’ Ltd.
Gunāra Astras street 8B
Riga, LV-1082, Latvia
Sworn Auditors’ Commercial Company’s license No. 28
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Management Report
4
Types of Operations
JSC ‘Siguldas ciltslietu un mākslīgās apsēklošanas stacija’ (hereinafter referred to as the Company) is one of the largest
high-quality breeding bull semen producers and suppliers in Latvia. The second largest field of the Company’s basic
economic activities is the milk testing services. The Company also provides other breeding related services –
consultations on issues of cattle breeding, feeding and keeping, evaluation of cow exterior, artificial insemination of cows,
initial processing of the supervisory data.
Brief Description of the Company’s Activities in the Reporting Year and Financial Condition
The Company’s net turnover in 2021 was 1.4 million euros, which is by 153 thousand euros or 12.3% bigger than in
2020.
The Covid-19 outbreak did not substantially affect the Company's business, financial condition and economic indicators.
The proportion of the revenue from the Company’s basic economic activities, if compared to year 2020, had not changed
substantially − the revenue from the sales of the bull semen comprised 58.8% of the net turnover, whereas the milk
laboratory services and processing of supervisory data services, taken together, accounted for 31.3% of the net turnover.
2021 ended with a profit of 97 thousand euros. Compared to 2020, profit before taxes for the reporting year has
decreased by 7 thousand euros, mainly due to the increase in costs of materials.
In 2021 there are no major events that have affected the financial statement, as well as no significant risks that the
company might be confronted with and which could have an impact on its financial situation and performance.
Future Prospects and Development
By increasing the operational efficiency of its business, the Company will continue to work on the expansion of its
marketed product and service volume.
Post-Balance-Sheet Events
After the end of the financial year, a number of restrictive measures related to the war in Ukraine have entered into force
in the Republic of Latvia and other countries, which is reducing the country's economic development. It is not to be
foreseen how the situation will develop in the future, and therefore there is uncertainty about economic development. The
Company's management constantly evaluates the situation. At present, the Company's operations have not been
affected by the restrictions, nor has there been any decrease in cash flow. The Company's management believes that
the introduced restrictions will not significantly affect the Company's operations.
Branches and Representative Offices Abroad
The Company has no branch offices, nor any representative offices abroad.
Proposals Regarding the Use of the Company’s Profit or Losses
The proposal of the Board is – not to use up the profit of the reporting year, but instead to pay out the retained earnings
of 33 795.20 euro, shown in the balance sheet as at December 31, 2017, in dividends, which is 0.08 euro per share.
Nils Ivars Feodorovs
Sarmīte Arcimoviča
Valda Mālniece
Chairman of the Management
Board
Member of the Management
Board
Member of the Management
Board, Manager of the
Financial and Accounting
department
18 March 2022
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Profit or loss account
5
Note
2021
EUR
2020
EUR
Net sales
3
1 389 544
1 236 904
a) from agricultural activities
1 389 544
1 236 904
Changes in stock of ready-made goods and unfinished products
4
(4 348)
30 132
Other operating income
5
61 177
63 112
Costs of materials:
(672 269)
(554 663)
a) raw materials and auxiliary costs of materials
(557 973)
(448 270)
b) other external costs
(114 296)
(106 393)
Personnel costs:
6
(493 561)
(478 648)
a) salaries for work
(393 590)
(380 057)
b) state social insurance compulsory contributions
(88 900)
(87 204)
c) other social insurance costs
(11 071)
(11 387)
Depreciation adjustments:
(106 749)
(114 354)
a) depreciation adjustments of fixed and intangible assets
(57 495)
(57 826)
b) depreciation adjustments of current assets which the
company considers to be above the normal write-off amounts
(49 254)
(56 528)
Other operating costs
7
(73 148)
(75 665)
Profit or loss before enterprise income tax
100 646
106 818
Enterprise income tax for the reporting year
3 850
2 750
Profit or loss after enterprise income tax calculation
96 796
104 068
The profit or loss for the year
96 796
104 068
Earnings per 1 share (EPS)
17
0.229
0.246
Notes on pages 10 to 23 form an integral part of these financial statements.
Nils Ivars Feodorovs
Sarmīte Arcimoviča
Valda Mālniece
Chairman of the Management
Board
Member of the Management
Board
Member of the Management
Board, Manager of the
Financial and Accounting
department
18 March 2022
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Balance sheet
6
Assets
Note
2021
EUR
2020
EUR
Long-term investments
Intangible assets
Concessions, patents, licenses, trademarks and similar
rights
1 478
3 090
Intangible assets total
8
1 478
3 090
Fixed assets (fixed assets, investment properties)
Fixed assets
Immovable properties - land parcels, buildings and
constructions
123 771
143 231
Productive animals and perennial plantings
33 586
45 093
Technological equipment and machinery
1 095
2 555
Other fixed assets and inventory
34 969
20 604
Prepayments for fixed assets
3 200
-
Fixed assets total
9
196 621
211 483
Investment properties
10
68 000
68 000
Long-term financial investments
Other securities and investments
11
684
684
Long-term financial investments total
684
684
Long-term investments total
266 783
283 257
Current assets
Stock
Raw materials, basic materials and auxiliary materials
24 211
21 347
Ready-made goods and goods for sale
12
856 983
781 719
Prepayments for goods
-
6 535
Stock total
881 194
809 601
Receivables
Trade receivables
13
259 828
234 331
Other receivables
14
5 659
1 239
Prepaid expenses
15
8 895
10 078
Accrued income
29 951
29 975
Receivables total
304 333
275 623
Cash
16
358 805
360 288
Current assets total
1 544 332
1 445 512
Assets total
1 811 115
1 728 769
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Balance sheet
7
Shareholders’ equity and liabilities
Note
2021
EUR
2020
EUR
Shareholders’ equity
Share capital
17
591 416
591 416
Retained earnings or loss carried forward from previous years
968 685
911 086
Profit or loss of the reporting year
96 796
104 068
Shareholders’ equity total
1 656 897
1 606 570
Payables
Short-term payables
Prepayment received from customers
25 003
973
Trade payables
50 334
40 328
Taxes and social insurance payments
18
42 469
42 253
Other payables
19 815
22 021
Accrued liabilities
19
16 597
16 624
Short-term payables total
154 218
122 199
Payables total
154 218
122 199
Shareholders’ equity and liabilities total
1 811 115
1 728 769
Notes on pages 10 to 23 form an integral part of these financial statements.
Nils Ivars Feodorovs
Sarmīte Arcimoviča
Valda Mālniece
Chairman of the Management
Board
Member of the Management
Board
Member of the Management
Board, Manager of the
Financial and Accounting
department
18 March 2022
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Cash flow statement
8
Note
2021
EUR
2020
EUR
Cash flow from operating activities
Income from sale of goods and provision of services
1 688 142
1 479 439
Payments to suppliers, employees, other expenses arising
from basic operations
(1 596 852)
(1 342 984)
Gross cash flow from basic operations
91 290
136 455
Expenses for enterprise income tax payments
(3 829)
(2 692)
Net cash flow from operating activities
87 461
133 763
Cash flow from investing activities
Purchase of fixed assets and intangible investments
(56 133)
(39 882)
Income from dispossession of fixed assets
9 088
8 372
Net cash flow from investing activities
(47 045)
(31 510)
Cash flow from financing activities
Subsidies received as a state support
7 941
8 559
Dividends paid
(46 469)
-
Net cash flow from financing activities
(38 528)
8 559
Result of foreign exchange rate fluctuations
(3 371)
(2 132)
Net increase or decrease of cash and its equivalents
(1 483)
108 680
Cash and its equivalents balance at the beginning of the
reporting year
360 288
251 608
Cash and its equivalents balance at the end of the reporting
year
16
358 805
360 288
Notes on pages 10 to 23 form an integral part of these financial statements.
Nils Ivars Feodorovs
Sarmīte Arcimoviča
Valda Mālniece
Chairman of the Management
Board
Member of the Management
Board
Member of the Management
Board, Manager of the
Financial and Accounting
department
18 March 2022
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Statement on changes in shareholders’ equity
9
Share
capital
Other
reserves
Retained
earnings
carried
forward
from
previous
years
Profit of the
reporting
year
Shareholders’
equity total
EUR
EUR
EUR
EUR
EUR
31.12.2019
591 416
-
860 743
50 343
1 502 502
Profit of 2019 transferred to retained
earnings of previous years
-
-
50 343
(50 343)
-
Profit of the reporting year
-
-
-
104 068
104 068
31.12.2020
591 416
-
911 086
104 068
1 606 570
Profit of 2020 transferred to retained
earnings of previous years
-
-
104 068
(104 068)
-
Dividends distributed
-
-
(46 469)
-
(46 469)
Profit of the reporting year
-
-
-
96 796
96 796
31.12.2021
591 416
-
968 685
96 796
1 656 897
Notes on pages 10 to 23 form an integral part of these financial statements.
Nils Ivars Feodorovs
Sarmīte Arcimoviča
Valda Mālniece
Chairman of the Management
Board
Member of the Management
Board
Member of the Management
Board, Manager of the
Financial and Accounting
department
18 March 2022
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Notes to the Financial Statements
10
(1) General information on the Company
JSC ‘Siguldas ciltslietu un mākslīgās apsēklošanas stacija’ (hereinafter - the Company) was registered in the Register of
Enterprises of the Republic of Latvia on 26 July 1991 and was reregistered in the Commercial Register of the Republic of
Latvia on 19 June 2004.
The Company’s basic activities are agriculture and the types of business are as follows:
- production and sale of agricultural products – high-quality breeding animals semen,
- making of milk analyses,
- evaluation of cow exterior,
- artificial insemination of cows,
- milk recording data processing,
- animals breeding organization.
(2) Significant accounting principles
Underlying principles of preparation of the Financial Statements
The Company’s Financial Statements have been prepared according to the Law On Annual Reports and Consolidated
Annual reports of the Republic of Latvia. According to Section 5 of the Law on Annual Reports and Consolidated Annual
reports, the Company is classified as a small company according to the last two years figures. Taking into account the
legal requirements for commercial companies whose transferable securities are listed on a regulated market, the
Company applies requirements that are binding on a large company. The Profit or Loss Account is been prepared based
on classification according to expense types. The Cash Flow Statement was prepared according to the direct method.
Complying the regulation stated in Article 13 Part 5 Chapter 2 of the Law On Annual Reports and Consolidated Annual
reports, the Company acknowledges, assesses, shows in its financial report and provides explicative information on
investment properties in compliance with the international accounting standards.
Accountig principles used
The items of the Financial Statements have been evaluated according to the following accounting principles:
- It is assumed that the Company will be a going concern;
- The same evaluation methods have been used, which were used in the previous year;
- Evaluation was done with sufficient prudence:
The Financial Statements include solely the profit gained until the balance sheet date,
All expected risk amounts and losses have been taken into account, which occurred during the reporting
year or in previous years, also if they were known during a certain period of time between the balance
sheets date and the day of preparing the Financial Statements,
All value decreasing and depreciation amounts have been taken into account irrespective whether the
reporting year was closed with profit or loss;
- reporting year related income and costs were recognized irrespective of the payment date and the date of
receipt or issuance of invoice. Costs have been agreed with the income in the reporting period;
- components of asset and liabilities items have been recognized separately;
- the opening balance of the reporting year agrees with the closing balance of the previous year;
- all items have been recognized, which materially influence assessment or decision-making process of the users
of the annual report, insignificant items are merged and they are detailed in the Appendix;
- operating transactions in the reporting year have been recognized in the Financial Statements by taking into
account their economic substance and contents, rather than legal form.
Financial instruments
Fair value of financial assets and liabilities
Fair value of financial assets and liabilities reflect the amount, for which it is possible to exchange assets or perform
liabilities in a deal between well informed, interested and financially independent persons. If in the Company’s
management opinion, fair value of financial assets and liabilities materially differs from the value recognized in the
balance sheet, then the fair value of these assets and liabilities is recognized in the Notes to the Financial Statements.
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Notes to the Financial Statements
11
Financial risks management
Credit risk
The Company’s management has developed credit policy, which is constantly controlled. Client evaluation is done for all
customers above a fixed amount. The Company cooperates with clients who have proper credit assessment.
Currency risk
Based on the current structure of Company’s financial assets and liabilities held in foreign currencies, the currency risk is
not material.
Reporting period
The reporting period is twelve months from 1 January to 31 December 2021.
Revaluation of foreign currencies
The Company’s functional currency and the currency used in the Financial Statements is euro (EUR). All transactions in
foreign currencies are converted into euro according to the euro foreign exchange reference rate published by the
European Central Bank on the day of particular transaction being performed.
Monetary assets and liabilities, which are shown in foreign currencies, are converted into euro according to the fixed euro
foreign exchange reference rate published by the European Central Bank on the last day of the reporting period.
31.12.2021
31.12.2020
USD
1.13260
1.122710
Currency exchange rate differences arising from settlements in currencies or when recognizing assets and liabilities by
using currency exchange rates, which differ from the initial currency exchange rates used for accounting of transactions,
are recognized in the profit or loss account in net value.
Recognition of income
Income is recognized according to the conviction about the Company’s possibility to gain economic benefit and in the
amount, in which it is possible to state it, less value added tax and sales-related discounts. When recognizing income,
also the following provisions are taken into account.
Sale of goods
Income is recognized when the Company has transferred to the purchaser major risks and indemnities related to the title
of goods.
Provision of services
Income from services is recognized in the period when the services are provided.
Penalty and delay charges
Income from penalty and delay charges is recognized at the moment of their receipt.
Interest
Income is recognized according to the respective period of time.
Long-term and short-term items
Long-term items include amounts whose receipt, payments or write-off terms are due later after the end of the respective
reporting year. Amounts, which are receivable, payable or written off during the year, are recognized in short-term items.
Leasing transactions
Financial leasing
In cases when fixed assets are purchased on the conditions of financial leasing and the related risks and return are taken
over, these fixed assets are recognized in the value, for which they could be purchased with immediate payment.
Leasing interest payments and similar payments are included in the profit or loss account of that period when they
occurred.
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Notes to the Financial Statements
12
Intangible assets and fixed assets
In the balance sheet, all intangible assets and fixed assets are reflected at their purchase prices, less depreciation.
Depreciation is calculated from the first date of the next month after their commissioning and finished on the first date of
the subsequent month after it is excluded from fixed assets. Depreciation is calculated according to the straight line
method and is written off during the useful life time of respective fixed assets by choosing the following annual
depreciation rates as fixed by the management:
Intangible assets:
Licenses
5 years
Fixed assets:
Buildings and constructions
10, 20, 25, 40 and 59 years
Productive animals
4 years
Equipment and machinery
5, 6 and 7 years
Computer hardware and communication
equipment
5 years
Inventory and tools
3 and 5 years
Other fixed assets
2 and 3 years
Balances of fixed assets have been counted in the annual count of fixed assets.
The Company capitalizes its fixed assets valued over 70 euro with useful life exceeding one year. Depreciation for
improvements and other low costs items with the value less than 70 euro is recognized by 100 % after commissioning.
If sufficient evidence is acquired that the future economic benefit associated with subsequent repair or reconstruction
costs will flow to the Company, which exceeds the return set previously, costs are capitalized as additional costs to the
fixed asset.
Net gains or losses from disposal of fixed assets is calculated as the difference between the carrying amount of the fixed
asset and proceeds from sale, and recognized in the income statements during the period when disposal are incurred.
If it is possible to conclude due to any kind of occurrence or circumstances that residual value of fixed or intangible
assets could not reach its recoverable value, appropriate value of fixed or intangible asset is to be decreased until
recoverable value. Recoverable value is calculated as the highest of fair value less costs to sell or value in use.
Productive animals meet the value criteria of fixed assets and are included in fixed assets.
Investment properties
Investment property is property (land plots, building or part of building) held by the owner or by lessee under a finance
lease to earn rentals or for capital appreciation rather than use in the production or supply of goods or services or for
administrative purposes or sale in the ordinary course of business. For the land with uncertain future use (if the Company
has not determined that it will use the land as owner occupied or short term sale in the ordinary course of business, it is
assumed that land is held for capital appreciation), it is classified as investment property.
Investment property of the company– land in possession of the stock company, which market value is expected to grow.
Investment properties have been filed according to their purchase value. No later than at the end of the year of account
the investments properties are being revalued according to their real market value considering any other activities related
to particular property. The revaluation is performed by a certified evaluator. Any changes in the market value of the
investments properties are being shown in the profit and loss account.
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Notes to the Financial Statements
13
Evaluation using a comparable transaction method was carried out by a certified evaluator:
2021 – LTD ‘Eiroeksperts’
2020 – LTD ‘Eiroeksperts’
Stock
Stock is recognized in the lowest cost or net sales value. All stock is assessed by using the average weighted method.
Net sales value is the sales price of stock fixed during normal Company’s operations, less the stock completion and
selling costs. In cases when the stock net selling value is lower than their cost price, provisions are made for these
stocks for decrease of their value down to the net sales value.
All direct costs, which are related to production of breeding animals - bull semen, during the year are booked in the profit
or loss account and are adjusted at the end of the year when evaluating stocks according to the lowest sales value or
cost price and including them in stocks as “Ready-made goods and goods for sale”.
Trade receivables and other receivables
In the balance sheet receivables are recognized in the recoverable value, provisions for doubtful receivables having been
deducted. Provisions for doubtful debts are made in cases when there is objective evidence to the fact that the Company
will not be able to receive the debts in full value according to the initially fixed repayment dates. Provisions for doubtful
debts are the difference between the amortized purchase value of receivables and the recoverable value. The
recoverable value of receivables is the current value of planned cash flow.
Cash
For the purposes of the cash flow statement, cash and cash equivalents comprise cash, the balances of the current bank
account and other current liquid financial assets with maturities up to 90 days.
Provisions
Provisions are liabilities related to current or previous years events and at the preparation of financial statements it is
probable that an outflow of resources will be required to settle the obligation and its amount can be reliably estimated.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation.
Subsidies
Amounts, which are received as a state support for agricultural, i.e., for covering of expenses for maintaining high-quality
breed bulls, are included in the income of that reporting period when they are received and all material conditions for the
grant are fulfilled.
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Notes to the Financial Statements
14
Taxes
Corporate income tax for the financial year
Corporate income tax is payable on the distribution of profits and the conditional distribution of profits. Distributed and
notionally distributed profits are taxed at the rate of 20 percent of the gross amount, or 20/80 of net costs. Corporate
income tax on the payment of dividends is recognized in the profit and loss account as an expense in the period in which
the dividends are declared and, in the case of other retained earnings, as incurred.
Use of assumptions
When preparing the financial statements, the Company’s management has to make calculations and assumptions, which
impact recognition of assets and liabilities included in the financial statements as at the day of preparing the financial
statements, as well as the income and expenses recognized in the specific reporting period. Management has made
profit or loss assessment and considers that the financial statements reflect the true financial condition based on all
currently available information.
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Notes to the Financial Statements
15
(3) Net sales
Sales include income gained during the year from the Company’s basic activities – sales of products and provision of
services without value added tax and less discounts.
Type of operations
2021
EUR
2020
EUR
Sale of Livestock sperm
816 768
701 928
Milk laboratory services
343 053
332 685
Treatment of supervisory data
91 559
93 654
Artificial insemination of livestock
33 691
26 555
Other income
104 473
82 082
1 389 544
1 236 904
Distribution of net sales according to the geographical markets:
2021
EUR
2020
EUR
Latvia
1 389 544
1 236 904
1 389 544
1 236 904
(4) Changes in stock of ready-made goods and unfinished products
2021
EUR
2020
EUR
Changes in the value of semen stocks produced
41 204
68 954
Written-off sperm
(45 552)
(38 822)
(4 348)
30 132
(5) Other operating income
2021
EUR
2020
EUR
Income from investment property revaluation
-
7 000
State support for agricultural
7 941
8 559
Recovered doubtful and bad debts
52 239
45 791
Profit from foreign currency exchange rate fluctuations
-
110
Other income
997
1 652
61 177
63 112
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Notes to the Financial Statements
16
(6) Personnel costs
2021
EUR
2020
EUR
Salaries for work
376 796
362 854
Life insurance with cash value accrual
15 647
16 833
State social insurance contributions
88 756
87 091
Changes in liabilities to personnel for unused vacation
1 291
484
Health insurance
8 546
8 810
Other costs
2 525
2 576
493 561
478 648
(7) Other operating expenses
2021
EUR
2020
EUR
Insurance payments
4 582
4 775
Selling expenses
6 378
1 010
The costs of accreditation and employee training
2 226
1 468
The costs of security services
1 286
1 320
Labour protection expenditure
2 980
2 398
Company’s management and administrative expenses
9 576
10 981
Regulated securities market expenses
11 271
11 032
Mandatory audit of the annual report
3 900
3 600
Loss from foreign currency exchange rate fluctuations
5 506
-
Net loss from dispossession of fixed assets
6 025
19 720
Employees’ leisure and similar costs
6 949
6835
Real estate tax
1 862
1 855
Other costs
10 607
10 671
73 148
75 665
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Notes to the Financial Statements
17
(8) Intangible assets
Concessions,
patents, licenses,
trademarks and
similar rights
EUR
Initial value
31.12.2020
10 785
Purchased
-
Disposed
-
31.12.2021
10 785
Accrued depreciation adjustments
31.12.2020
7 695
Annual write-off of the value
1 612
Adjustments to accrued depreciation of excluded intangible assets
-
31.12.2021
9 307
Book value as at 31.12.2020
3 090
Book value as at 31.12.2021
1 478
Concessions,
patents, licenses,
trademarks and
similar rights
EUR
Initial value
31.12.2019
10 785
Purchased
-
Disposed
-
31.12.2020
10 785
Accrued depreciation adjustments
31.12.2019
5 771
Annual write-off of the value
1 924
Adjustments to accrued depreciation of excluded intangible assets
-
31.12.2020
7 695
Book value as at 31.12.2019
5 014
Book value as at 31.12.2020
3 090
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Notes to the Financial Statements
18
(9) Report on movement of fixed assets
Land,
buildings
and
construc-
tions
Productive
animals
and
perennial
plantings
Technological
equipment
and machinery
Other
fixed assets
and
inventory
Prepayments
for fixed
assets
Total
EUR
EUR
EUR
EUR
EUR
EUR
Initial value
31.12.2020
467 494
71 529
306 399
288 265
-
1 133 687
Purchased
-
18 570
-
34 363
3 200
56 133
Dispossessed or
liquidated
-
(39 630)
-
(29 290)
-
(68 920)
31.12.2021
467 494
50 469
306 399
293 338
3 200
1 120 900
Accrued depreciation
adjustments
31.12.2020
324 263
26 436
303 844
267 661
-
922 204
Calculated
depreciation
19 460
14 964
1 460
19 816
-
55 700
Depreciation of
dispossessed or
liquidated fixed assets
-
(24 517)
-
(29 108)
-
(53 625)
31.12.2021
343 723
16 883
305 304
258 369
-
924 279
Book value as on
31.12.2020
143 231
45 093
2 555
20 604
-
211 483
Book value as on
31.12.2021
123 771
33 586
1 095
34 969
3 200
196 621
As on 31 December 2021, the cadastral value of real estate – land and constructions – was EUR 158 539.
Land,
buildings and
constructions
Perennial
plantings
Technological
equipment and
machinery
Other
fixed assets
and inventory
Total
EUR
EUR
EUR
EUR
EUR
Initial value
31.12.2019
467 494
69 003
307 064
293 300
1 136 861
Purchased
-
34 726
-
5 156
39 882
Dispossessed or liquidated
-
(32 200)
(665)
(10 191)
(43 056)
31.12.2020
467 494
71 529
306 399
288 265
1 133 687
Accrued depreciation
adjustments
31.12.2019
304 802
15 376
303 049
258 038
881 265
Calculated depreciation
19 461
15 167
1 460
19 814
55 902
Depreciation of dispossessed or
liquidated fixed assets
-
(4 107)
(665)
(10 191)
(14 963)
31.12.2020
324 263
26 436
303 844
267 661
922 204
Book value as on 31.12.2019
162 692
53 627
4 015
35 262
255 596
Book value as on 31.12.2020
143 231
45 093
2 555
20 604
211 483
As on 31 December 2020, the cadastral value of real estate – land and constructions – was EUR 158 087.
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Notes to the Financial Statements
19
(10) Investment properties
Land
EUR
Book value as on 31.12.2019
61 000
Increase/decrease of value due to revaluation
7 000
Book value as on 31.12.2020
68 000
Increase/decrease of value due to revaluation
-
Book value as on 31.12.2021
68 000
(11) Other securities and investments
EUR
Purchase value as on 31.12.2020
684
Book value as on 31.12.2020
684
Purchase value as on 31.12.2021
684
Book value as on 31.12.2021
684
(12) Ready-made products and goods for sale
2021
EUR
2020
EUR
Bull semen
839 983
762 966
Other goods for sale
17 000
18 753
856 983
781 719
(13) Trade receivables
2021
EUR
2020
EUR
Accounting value of trade receivables
328 460
309 449
Provisions for doubtful trade receivables
(68 632)
(75 118)
259 828
234 331
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Notes to the Financial Statements
20
(14) Other receivables
2021
EUR
2020
EUR
VAT for received goods and services
258
794
VAT on advances received from customers
258
794
Other receivables
981
1
1 239
795
(15) Prepaid expenses
The item recognizes the costs made during the reporting year, but referring to the next reporting periods.
2021
EUR
2020
EUR
Advertising costs
120
120
Insurance
6 112
7 445
Press and legislation updates’ subscription
1 274
1 288
Server maintenance and similar costs
273
257
Other prepaid expenses
1 116
968
8 895
10 078
(16) Cash
Break-down of cash according to currencies:
2021
2020
Currency
EUR
Currency
EUR
Cash in hand
EUR
-
1 182
-
2 144
Cash in bank
EUR
-
357 623
-
358 144
358 805
360 288
(17) Share capital
Since 21 May 2007 Company’s shares are quoted on the Second List of Nasdaq Riga Stock Exchange (ISIN code:
LV0000100600). The Company’s share capital has been formed of shareholders’ investments.
The total number of shares as per 31.12.2021 is 422 440, the nominal value of one share is 1.40 euro.
The total number of shares as per 31.12.2020 was 422 440, the nominal value of one share – 1.40 euro.
2021
EUR
2020
EUR
Bearer shares with voting rights
590 016
590 016
Shares owned by the Board without voting rights
1 400
1 400
591 416
591 416
421 440 shares or 99.8% of the share capital are bearer shares, which give equal rights to receive dividends, receipt of
liquidation quota and voting rights in the Shareholders’ Meeting.
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Notes to the Financial Statements
21
Owners of 421 440 bearer shares
31.12.2021
%
31.12.2020
%
‘Siguldas mākslīgās apsēklošanas stacija’ Ltd
49.92
49.92
Inita Bedrīte, chairman of the Supervisory Board
0.26
0.26
Maija Beča, deputy chairman of the Supervisory Board
0.73
0.73
Baiba Mecauce, member of the Supervisory Board
2.44
2.44
Guntis Mecaucis, member of the Supervisory Board
1.29
1.29
Jānis Tūtāns, member of the Supervisory Board
0.25
0.25
Sarmīte Arcimoviča, member of the Management Board
0.91
0.91
Valda Mālniece, member of the Management Board
3.31
3.31
Other shareholders
40.89
40.89
100.00
100.00
1 000 shares or 0.24% of the share capital, which are not included in the regulated market, are personnel registered
shares, which may be obtained only by Members of the Board, and they give equal rights only to receipt of dividend and
liquidation quota.
Owners of the Company’s personnel registered shares according to the Company’s carried shareholders registry.
2021
number
2020
number
Nils Ivars Feodorovs, chairman of the Management Board
400
400
Sarmīte Arcimoviča, member of the Management Board
300
300
Valda Mālniece, member of the Management Board
300
300
1 000
1 000
There are no share alienation restrictions, nor the necessity to receive the Company’s or other shareholders’ consent for
alienation of shares.
There are no restrictions on voting rights, nor any other similar restrictions.
Earnings per share
Earnings per one share is calculated by dividing the profit of the reporting period with the average weighted number of
shares during the year.
2021
EUR
2020
EUR
Profit or loss of the reporting period
96 796
104 068
Average weighted number of shares during the year
422 440
422 440
0.229
0.246
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Notes to the Financial Statements
22
(18) Taxes and social insurance payments
Tax type
2021
EUR
2020
EUR
Value added tax
20 003
20 494
Personal income tax
7 486
6 885
Social insurance payments
14 788
14 701
Nature resource tax
103
103
Enterprise income tax
79
58
Business risk state fee
10
12
42 469
42 253
Tax overpaid declared in position ‘Other receivables’
(19) Accrued liabilities
2021
EUR
2020
EUR
Calculated liabilities to personnel for unused vacation
12 997
11 707
Accrued accounts payable
3 600
4 917
16 597
16 624
(20) Information on the number of management members and remuneration
2021
EUR
2020
EUR
Remuneration to five Supervisory Board members for execution of functions
9 240
9 211
Social insurance payments from remuneration to five Supervisory Board
members for execution of functions
2 487
2 151
Remuneration to three Management Board members for execution of
functions
36 717
36 607
Social insurance payments from remuneration to three Management Board
members for execution of functions
8 600
8 818
Total remuneration to the management members
57 044
56 787
There are no special regulations put in place to regulate the election of the Management Board members, the change of
the composition of the Management Board and amendments to the Articles of Association.
All Management Board members have equal Company’s representation rights. The chairman of the Management Board
represents the Company separately, but other Management Board members may represent the Company only
collectively.
There is no agreement signed between the Company and the Management Board members ensuring any kind of
compensation.
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Notes to the Financial Statements
23
(21) Average number of employees
2021
number
2020
number
Supervisory Board members (all employees perform the functions of the
Supervisory Board member as an extra work in addition to principal work
duties)
3
3
Management Board members (two employees perform the functions of the
Management Board member as an extra work in addition to principal work
duties)
3
3
Other employees
26
26
Total average number of employees
32
32
(22) Post-Balance-Sheet Events
After the end of the financial year, a number of restrictive measures related to the war in Ukraine have entered into force
in the Republic of Latvia and other countries, which is reducing the country's economic development. It is not to be
foreseen how the situation will develop in the future, and therefore there is uncertainty about economic development. The
Company's management constantly evaluates the situation. At present, the Company's operations have not been
affected by the restrictions, nor has there been any decrease in cash flow. The Company's management believes that
the introduced restrictions will not significantly affect the Company's operations.
The outbreak of Covid-19 will not have a substantial impact on the Company's operations, financial situation and
economic performance.
Nils Ivars Feodorovs
Sarmīte Arcimoviča
Valda Mālniece
Chairman of the Management
Board
Member of the Management
Board, Manager of the
Production and Marketing
department
Member of the Management
Board, Manager of the
Financial and Accounting
department
18 March 2022
JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’
Annual Report for 2021
Report on Management Liability
24
The management of JSC ‘Siguldas ciltslietu un mākslīgās apsēklošanas stacija’ (hereinafter - the Company) is
responsible for the preparation of the financial statements of the Company. The financial statements are prepared in
accordance with the source documents and present fairly the financial position of the Company as of 31 December 2021
and the results of their operations and cash flows for the year then ended.
The Management Board confirms that the financial statements and notes to the financial statements contained on
pp. 3-23 have been prepared on the basis of source documents and the decisions adopted and the assessments made
were conservative and prudent. The accounting policy compared to the preceding year has not changed. The
Management Board confirms that the financial statements have been prepared on a going-concern basis
The Management is responsible for keeping a proper accounting system, preservation of Company’s assets, and for
detection and prevention of fraud and other irregularities in the Company. The Management is also responsible for
compliance with the requirements of Latvian laws as well as European Union regulations applicable to the Company.
Nils Ivars Feodorovs
Sarmīte Arcimoviča
Valda Mālniece
Chairman of the Management
Board
Member of the Management
Board, Manager of the
Production and Marketing
department
Member of the Management
Board, Manager of the
Financial and Accounting
department
18 March 2022
Independent Auditor’s Report
To the shareholders of JSC ‘’Siguldas ciltslietu un mākslīgās apsēklošanas
stacija’’
Our Opinion on the Financial Statements
We have audited the accompanying financial statements of JSC ‘’Siguldas ciltslietu un mākslīgās apsēklošanas
stacija’’ (“the Company”) set out on pages 5 to 23 of the accompanying annual report, which comprises:
• the balance sheet as of 31 December 2021,
• the profit and loss statement for the year then ended,
• the statement of changes in equity for the year then ended,
• the statement of cash flows for the year then ended, and
• the notes to the financial statements, which include a summary of significant accounting policies and other
explanatory notes.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of JSC
‘’Siguldas ciltslietu un mākslīgās apsēklošanas stacija’’ as at 31 December 2021, and of its financial performance
and its cash flows for the year then ended in accordance with the ‘Law On the Annual Reports and Consolidated
Annual Reports’ of the Republic of Latvia.
Basis for Opinion
In accordance with the Law on Audit Services of the Republic of Latvia, we conducted our audit in accordance
with International Standards on Auditing adopted in the Republic of Latvia (ISAs). Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report.
We are independent of the Company in accordance with the International Ethics Standards Board for Accountants
International Code of Ethics for Professional Accountants (including International Independence Standards) and
independence requirements included in the Law on Audit Services of the Republic of Latvia that is relevant to our
audit of the financial statements in the Republic of Latvia. We have also fulfilled our other professional ethical
responsibilities and objectivity requirements in accordance with the International Code of Ethics for Professional
Accountants (including International Independence Standards) and Law on Audit Services of the Republic of
Latvia.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and informing our opinion thereon, and we do not provide a separate opinion on
these matters.
We have determined the matter described below to be the key audit matter to be communicated in our report.
Key audit matter
How our audit addressed that matter
Inventory valuation
As disclosed in Note 12 to the financial statements, as
of December 31, 2021, the Company's finished goods
and goods for sale amount to EUR 856 983, which is
47% of the Company's total assets as of December 31,
2021. The calculation of the cost of the inventory is a
complex process due to the specifics of the
Company’s operation. The process requires
management assumptions regarding the allocation of
the production overhead costs. Due to the above
circumstances,
we consider the valuation of inventory to be a key
audit matter.
We obtained an understanding of the
manufacturing process by discussing it with the
Company's management and evaluated whether the
accounting policies for inventory valuation meet
the requirements of the Latvian legislation.
On a random selection basis, we tested the
adequacy of the cost of specific goods items.
We performed analytical procedures over the
accuracy of the costing elements and cost of
inventory by comparing them to prior periods.
We selected a sample of finished goods and
compared their book value to the subsequent selling
price to identify whether the selling price of any
items was lower than the book value.
We have also assessed whether the disclosures in
the financial statements are in accordance with
Latvian legislation.
Other Matter
Reporting on Other Information
The Company management is responsible for the other information. The other information comprises:
• Information about the Company, as set out on page 3 of the accompanying Annual Report,
• the Management Report, as set out on page 4 of the accompanying Annual Report,
• the Statement on Management Responsibility, as set out on page 24 of the accompanying Annual Report,
• Corporate governance report prepared by the Company's management as a separate document and publicly
available on the Company's website http://www.sigmas.lv/
• Remuneration Report prepared by the Company's management as a separate document and publicly available
on the Company's website http://www.sigmas.lv/.
Our opinion on the financial statements does not cover the other information included in the Annual Report, and
we do not express any form of assurance conclusion thereon, except as described in the Other reporting
responsibilities in accordance with the legislation of the Republic of Latvia related to other information section
of our report.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed and in light of the knowledge and understanding of the entity and its
environment obtained in the course of our audit, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Other reporting responsibilities in accordance with the legislation of the Republic of Latvia related to other
information
In addition, in accordance with the Law on Audit Services of the Republic of Latvia with respect to the
Management Report, our responsibility is to consider whether the Management Report is prepared in accordance
with the requirements of the ‘Law On the Annual Reports and Consolidated Annual Reports’ of the Republic of
Latvia.
Based solely on the work required to be undertaken in the course of our audit, in our opinion:
• the information given in the Management Report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
• the Management Report has been prepared in accordance with the requirements of the ‘Law On the
Annual Reports and Consolidated Annual Reports’ of the Republic of Latvia.
In accordance with the Law on Audit Services of the Republic of Latvia with respect to the Statement of Corporate
Governance, our responsibility is to consider whether the Statement of Corporate Governance includes the
information required in section 56.1, first paragraph, clause 3, 4, 6,, 8 and 9, as well as section 56.2, second
paragraph, clause 5, and third paragraph of the Financial Instruments Market Law and if it includes the information
stipulated in section 56.2 second paragraph, clause 1, 2, 3, 4, 7 and 8 of the Financial Instruments Market Law.
In our opinion, the Statement of Corporate Governance includes the information required in section 56.1, first
paragraph, clause 3, 4, 6, 8, and 9, as well as section 56.2, second paragraph, clause 5, and third paragraph of the
Financial Instruments Market Law and it includes the information stipulated in section 56.2 second paragraph,
clause 1, 2, 3, 4, 7 and 8 of the Financial Instruments Market Law.
In accordance with the Law on Audit Services of the Republic of Latvia with respect to the Remuneration
Statement, our responsibility is to consider whether the Remuneration Statement includes the information required
in Section 59.
4
of the Financial Instrument Market Law and whether significant non-conformities have been
established in the Remuneration Statement in relation to the financial information indicated in the annual
Statement;
In our opinion, the Remuneration Statement includes the information required in section 59.
4
of the Financial
Instrument Market Law and no material inconsistencies with the annual report identified.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation of the financial statements that give a true and fair view in
accordance with the ‘Law On the Annual Reports and Consolidated Annual Reports’ of the Republic of Latvia
and for such internal control as management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic
alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance
with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that
achieves a fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence and objectivity, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated
in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Other reporting responsibilities and confirmations required by the legislation of the Republic of Latvia and the
European Union when providing audit services to public interest entities
We were appointed as auditors by shareholders’ resolution of 23 April 2021 to audit the financial statements of
JSC “Siguldas ciltslietu un mākslīgās apsēklošanas stacija” for the year ended 31 December 2021. Our total
uninterrupted period of engagement is [3] years, covering the periods ending 31 December 2019 to 31 December
2021.
We confirm that:
•as referred to in paragraph 37.6 of the Law on Audit Services of the Republic of Latvia we have not provided to
the Company the prohibited non-audit services (NASs) referred to in EU Regulation (EU) No Article 5 (1) of
Regulation (EU) No 537/2014. We also remained independent of the audited entity in conducting the audit.
During the period covered by our statutory audit, we have not provided other services to the Company in addition
to the audit.
The responsible certified auditor on the audit resulting in this independent auditors’ report is Olga Kuzmiča.
SIA Orients Audit & Finance
Licence No. 28
Natālija Zaiceva Olga Kuzmiča
Member of the Board Sworn Auditor
Certificate No. 207
Riga, Latvia
March 18, 2022