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Annual Report

Annual Report

 

Report of Annual Financial Statement for the Year 2000

 

         The joint stock company showed an economic result in the amount of 56 thousand CZK for the year 2000. The planned goal in the amount of 11 mil. CZK was thus not achieved, but compared to the resulting loss of 11,7 mil. CZK for the year 1999 it represents a substantial improvement.
         Revenues for the year 2000 slightly surpassed, in spite of the stagnation of the domestic market, the level from 1999 and reached the sum of 324,9 mil. CZK, of which 320,3 mil CZK for the sale of products. Export exceeded the limit of 200 mil. CZK and nearly reached a 64 % share of the revenues. In the area of expenses by means of a number of minor organizational and rationalization measures in the production costs sector negation of unfavourable influences, manifested by the increase of the price of inputs, was achieved and dampened in the economic results. Approximately 6 mil. CZK were saved in costs in the area of direct costs and the same amount in the area of overhead expenses. By further steps in cost saving, including personal expenses connected with a rapid decrease of employment, the firm achieved an operating profit in the sum of 11,3 mil. In the field of economic results from financial operations success was achieved in under-usage of the boundary of 9,6 mil. CZK, which mainly represents interest costs and exchange rate losses due to the influence of the strengthening rate of exchange of CZK/EUR. In the scope of the net result from extraordinary activities the sum of 1,6 mil. CZK represents costs related with redundancy payments paid out to employees pursuant to the law.
         A look at the balance of assets and liabilities shows a positive trend. The structure of stocks has slightly improved and their total has remained on the same level as in 1999. Improved controlling has resulted in a decrease of receivables, while maintaining the same revenues, by nearly 7 mil. CZK. All bad receivables outstanding for more than one year have been attended to by creation of provisions.
         The capital of the company has remained at the value of 229 mil. CZK which means a nominal 1.141 CZK per one share. The company does not report any retained losses of previous years. The slight increase of obligations on the side of liabilities does not apply to obligations after maturity, but indicates better delivery terms from our suppliers, acquired on the basis of many years of confidence. A prudential investment policy has also contributed to the financial stability of the firm, when 14.8 mil. CZK of investments were paid of which over 3 mil. from own internal investment activity during activities related with modernization of the machinery. Also stability in the area of provided bank credits and the fact, that the firm is properly repaying long-term investment loans (approx. 12,6 mil. CZK annually) is a contribution to the financial stability and the company continually reports appropriate credit exposure.
         The company has an operating profit (11,3 mil. CZK as compared with operating loss of 2,1 mil. CZK in the previous year). It has no commitments overdue to any state institutions or banks or to its suppliers. It has generated a positive cash flow. We are of the opinion it can thus be perceived as a good partner in the full scope of its business and financial environment and that this characteristic is a good starting point for a more dynamic development in the following years.
         The annual financial statements have been verified, for a number of years, by an audit performed by KPMG Česká republika Audit, spol. s r.o. (license No 71) and as in previous years, it has issued an unqualified opinion. The audit was performed from 17 to 21 April and found no breach of accounting procedures.

 

Auditors' report (quotation)

 

         "In our opinion the financial statements present fairly, in all material respects, the assets, liabilities and equity of Elektroporcelán Louny a.s. as of 31 December 2000 and the financial results for the year 2000 in accordance with the Act on Accounting and relevant legislation of the Czech Republic.
         We have also verified compliance of other financial information set forth in this annual report with the audited financial statements. In our opinion this information in all material respects is in compliance with the financial statements we have verified."

In Prague, 21 June 2001
KPMG Česká republika - Audit, spol. s r.o.
License No 71


Ondřej Duda
Decree No 12

 

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