“ZETATRANS” JSC PODGORICA...“ZETATRANS” JSC, PODGORICA FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015. 7 Balance sheet ( in Eur) Note 2015. 2014. Long term assets

ReviKo

“ZETATRANS” JSC PODGORICA

FINANCIAL STATEMENTS FOR THE YEAR ENDED AS OF

31. DECEMBER 2015.

“ZETATRANS” JSC PODGORICA

FINANCIAL STATEMENTS FOR THE YEAR ENDED AS OF

31. DECEMBER 2015. WITH INDEPENDENT AUDITOR REPORT

Content Page Presentation letter 1-4 Independent auditor report 5 Income statement for the year ended December 31, 2015. 6 Balance sheet as of December 31, 2015. 7 Statement of changes in equity 8 Cash flow statement 9 Notes to financial statements 10 - 28

5

To Board of Directors and Shareholders of “ZETATRANS” JSC PODGORICA

Independent auditor report

1. We have audited the accompanying financial statements of “ZETATRANS” JSC Podgorica

(the “Company”) which comprise the balance sheet as of 31 December 2015 and the income

statement, statement of changes in equity and cash flow statement for the year then ended and a

summary of significant accounting policies and other explanatory notes.

Management’s Responsibility for the Financial Statements

2. Management is responsible for the preparation and fair presentation of these financial statements

in accordance with the requirements of the Law on Accounting and Auditing of the Republic of

Montenegro and IFRS. This responsibility includes: designing, implementing and maintaining internal

controls relevant to the preparation and fair presentation of financial statements that are free from

material misstatement, whether due to fraud or error; selecting and applying appropriate accounting

policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit. We

conducted our audit in accordance with International Standards on Auditing. Those Standards require that

we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance

whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in

the financial statements. The procedures selected depend on the auditor’s judgment, including the

assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the entity’s

preparation and fair presentation of the financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies

used and the reasonableness of accounting estimates made by management, as well as evaluating the

overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our audit opinion.

Opinion

4. In our opinion the accompanying financial statements present fairly, in all material respects,

the financial position of the Company as of December 31, 2015, and of its financial performance and

its cash flows for the year then ended in accordance with the Law on Accounting and Auditing of the

Republic of Montenegro.

“Reviko“ doo Podgorica

In Podgorica, 11.02.2016. Keković Dragiša, Licenced auditor

“ZETATRANS” JSC, PODGORICA

FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015.

6

Income statement (in Eur)

Note 2015. 2014.

Operating revenue

Service income 3.1, 4 5.200.059 4.850.027

Other operating gains - -

5.200.059 4.850.027

Operating expenses Cost of services rendered 3.2, 5 (1.592.016) (1.263.536)

Materilas 3.2, 6 (144.741) (161.609)

Employee expenses 3.5, 7 (1.633.890) (1.792.173)

Depreciation costs and provision 3.9, 8 (440.487) (451.831)

Other operating expenses 3.2, 9 (928.040) (802.882)

(4.739.174) (4.472.031)

Profit from operation 460.885 377.996

Financial income 3.3, 3.4, 10 51.884 72.714 Financial expense 3.3, 3.4, 10 - -

Financial income (net) 51.884 72.714

Other incomes 11 471.499 504.985

Other expenses 12 (453.022) (465.315)

Profit from other activities 18.477 39.670

Profit from business operation 531.246 490.380

Net result from dicontinued operation

Profit before tax 531.246 490.380

Other items

Tax expense for the period Current profit tax 3.6, 13 (31.798) (65.755) Deferred tax 13 (11.555) (14.092)

(43.353) (79.847)

Profit after tax 487.893 410.533

Earnings per share

Earnings per share 14 0,0593 0,0499

Reduced (splitted) earning per share

Podgorica, 31.01.2016. JSC “Zetatrans”, Podgorica

Dalibor Stojanov, Executive director



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Balance sheet

( in Eur)

Note 2015. 2014.

Long term assets

Intangibles 3.7, 15 43.816 5.245

Property, plant and equipment 3 8, 16 18.039.843 18.305.466

Long term financial placements available for sale 3.11,18 1.442 6.606

18.085.101 18.317.317

Non current assets held-for-sale 3.12,17 -

Current assets

Inventory 3.13,19 84.375 225.959

Short ter receivables, placements and

Cash

Trade receivables 3.14,20 2.319.226 1.918.766

Short term financial placements 3.11, 21 1.430.000 1.600.000

Cash and cash equivalents 3.15, 22 197.485 200.982

VAT and prepayments 86.192 71.221

4.117.278 4.016.928

Total assets 22.202.379 22.334.245

Equity and liability

Equity

Share equity 23 10.508.792 10.508.792

Reserve 14.629 14.629

Revaluation reserve 3.16 9.560.802 9.579.077

Reatained earnings 552.872 709.542

Total net equity 20.637.095 20.812.040

Long term provision and long term

liabilities

Long term provision 3.19, 24 37.709 27.709

Long term liabilities

Other long term liabilities - -

Deferred taxes 3.6 270.554 258.999

Short term liabilities

Short term financial liabilities - 3.526

Short term trade payables 3.18, 25 535.709 501.143

Other short term liabilities and accruals 26 658.989 632.625

VAT liabilities 30.525 32.448

Corporate income tax liabilities 31.798 65.755

1.257.021 1.235.497

Total equity and liability 22.202.379 22.334.245

Podgorica, 31.01.2016. JSC “Zetatrans”, Podgorica




8

Statement of changes in equity

(in Eur)

Non

realised

gains from

Share

Revaluation

securities

held

Legal

Retained

Decsription equity reserve for sale reserve earnings Total

As of 1. 01. 2014. 10.508.792 9.580.859 3.829 14.629 1.281.139 21.389.248

Dividends - - - - (986.509) (986.509)

Subsequent measurement of

long term financial - - 2.777 2.777

placements

Actuarial report - - - (4.009) (4.009)

Transfer on sale - (8.388) 8.388 -

Profit for the year - - - - 410.533 410.533

As of 31. December 2014. 10.508.792 9.572.471 6.606 14.629 709.542 20.812.040

As of 1. 01. 2015. 10.508.792 9.572.471 6.606 14.629 709.542 20.812.040

Dividends - - - - (657.673) (657.673)

Correction - (4.331) 4.331 - - -

Subsequent measurement of

long term financial

placements - - (5.164) - - (5.164)

Transfer on sale - (13.111) - - 13.111 -

Profit for the year - - - - 487.893 487.893

As of 31. December 2015. 10.508.792 9.555.029 5.773 14.629 552.872 20.637.095

Podgorica, 31.01.2016. JSC “Zetatrans,” Podgorica




9

Cash flow statement

( in Eur)

2015. 2014.

Cash flows from oerating activities

Cash receipts from operating activities

Sale and advances received 7.295.129 10.396.381

Interest received from operating activities

Other receipts from operating activities

Cash payments from operating activities

Cash payments to suppliers and advances paid (4.470.023) (7.379.639)

Cash payments to employees (1.608.044) (1.774.211)

Interest paid

Income tax paid (65.755) (89.005)

Cash payments of other public duties (551.930) (604.922)

Net cash from operating activities 599.377 548.604

Cash flows from investment activities

Cash receipts from investment activities

Proceedings from sale of shares (net receipts)

Proceedings from sale of PPE 712 9.531

Other financial placements (net receipts)

Interest received 38.500 83.067

Dividends received

Cash outflow from investment activities

Purchase of shares (net outflow)

Purchase of PPE (192.955) (139.309)

Other financial placements (net outflow)

Other outflows from investment activities

Net cash from investment activities (153.743) (46.711)

Cash flows from finance activities

Cash inflows from finance activities

Share issue

Inflow from long term and short borrowings (net inflow)

Other long term and short term liabilities

Cash outflows from finance activities

Redeemed own shares

Outflow from long term and short term borrowings (net outflow)

Finanace leasing (3.526) (3.525)

Dividends paid (615.605) (902.509)

Net cash from finance activities (619.131) (906.034)

Net cash flow (173.497) (404.141)

Cash at the begining of period 1.800.982 2.205.123

Foreign exchange differences

Cash at the end of period 1.627.485 1.800.982

Podgorica, 31.01. 2016. JSC “Zetatrans” Podgorica




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1. General information

“Zetatrans” JSC Podgorica, Logistic services ( the Company) was founded in 1965. as a business

society for public transport and repairs under the name RSCG “Zetatrans”.

Based on the Decision of owners and management transaformation Number 5693 from 18.04.1996.,

the Company has been registered as joint stock company within the Commercial Court of

Montenegro, under the Resolution No FI 2846/96 from 25.12.1996.

In accordance to the Company Law ( »Official Gazette of Montenegro« No 6 from 2002), the Company has been registered with the Central Reister of Commercial Court in Podgorica on 13.08.2002, under the registration number 4-0003234/001.

Primary activity of the Company is international and national shipping, international and national

transportation, public and customs warehaousing and foreign trade. Management bodies of the Company are the Shareholders Assembley as the highest body, Board of Directors as a highest management body, Executive director and Company Secretary. Shareholders Assemly represent all the owners of the Company and their authorised representatives. Board of Directors consit of 3 members whose memebership expires on a first regula annual Shareholders Assembey meeting. Memebers of Board of Directors are elected by Shareholders Assembley..

As of 31. Dcember 2015. the Company employs 132 employees (as of 31. December 2014. 139

employees).

The address of the Company’s registered office is in Podgorica, Ćemovsko polje bb.

2. Basis for preparation and presentation of financial statements

a) Basis for preparation The financial statements of the Company have been prepared in accordance with Law on Accounting and Auditing of Montenegro (“OGM”, No.69/2005 and No 80/2008) and Decision on appliance of International Accounting Stanards (“IAS”) in Montenegro (“OGM”, No.69/2002). According to this, the International Financial Reporting Standards (IFRS) are applied on the financial statements starting from January 1, 2003. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of land and financial investment available for sale. All amounts in the Financial statements are expressed in EUR , representning the financial and

reporting currency of the Company.

b) Accounting estimates and assumptions

Presentation of financial statements require appliance of accounting estimates and assumptions which affect the presented amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of preparation of financial statements, as well as the value of incomes and expenses during the reporting period. These estimates and assumptions are based on the available information on the date of preparation of financial statements and may differ from the actual result. The estimates and assumptions mostly relate to the impairment provision for operating receivable, estimated usefull life of PPE and other provisions.

c) Going concern concept The financial statements are prepared in accordance with the going concern concept, which assumes that the Company will continue its operations for the foreseeable future.



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3. Summary of significant accounting policies

The principal accounting policies applied in the preparation of 2015. financial statements are set out below: 3.1. Revenues The Company recognizes revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity. Revenues relate mostly to sale of shipping services rendered on international and national market. Revenues collected in cash are included in the amount of completed payment for the parking services, Cash received revenues relate to parking services, revenues from border crossings and revenues

from services provided using the scales

Revenue is shown net of value-added tax, returns, rebates and discounts. For receivables not paid within the 180 days, impairment provision is created within the position of other expenses of income statement. Incomes related to collection of these receivables are recorded separately at the moment of collection. 3.2. Operating expenses Operating expenses comprise all expenses directly attributable to Company primary activity. Recognized expenses are directly attributable to recognized revenues in the income statement for the period. Expenses are recognized in the income statement also when the obligation has recognized and no criteria for assets recognition is met.

3.3. Foreign currency translation

Transactions in foreign currencies during the year are translated into EUR at the official exchange

rates applicable on the day of transaction.

All receivables and liabilities denominated in foreign currencies are translated into EUR using the

official exchange rate at the balance sheet date.

Positive and negative foreign exchange differences arising from translation of assets and liabilities

denominated in foreign currencies and translation of business changes during the year are

recognized in the income statement. 3.4. Financial incomes and expenses Financial incomes and expenses comprise interest incomes related to receivables and placements and interest expenses. Interest incomes and expenses are recognized at the accounting period when they occured, according to the contractual obligations. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement Additionaly, incomes arising from long term placements in other companies and banks are recognized in the income statement in period when occured.



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3. Summary of significant accounting policies (continued)

3.5. Employee benefits

Pension obligation

According to the regulations ruling in Montenegro, the Company is obliged to withold and pay, on

behalf of employees, contributions to the state social funds. These obligations include contributions

for employees ( on behalf on employee and on behalf on emplyer) calcuted using the rates

prescribed by relevant regulations. Contribution expenses are included in the income statement.

The Company has no further payment obligations once the contributions have been paid. Prepaid

contributions are recognized as an asset to the extent that a cash refund or a reduction in the future

payments is available.

Jubilee awards and retirement benefits According to the Individual collective agreement, the Company is obliged to pay retiremnt benefits in amount of 20 minimal salaries in Montenegro, and amounts of in the range between 100 and 300 euros for jubilee awards depending on the years of service within the Company. During 2007, the Company engaged chartered actuar and applied for the first time the IAS 19-

Employee benefits. Long-term liabilities jubilee awards and retirement benefits after meeting the

conditions stated at the present value of expected future payments to employees upon actuarial

report as at 31.12.2015.

3.6. Income tax

Current income tax

Company income tax is calculated and paid in accordance with the tax regulations in Montenegro. Company income tax is calculated using the 9 % on the taxable base. Tax base represents profit calculated according to the legal requirements corrected for the incomes and expenses not recognized for tax purposes in accordance with the Company income tax law (article 8 and 9 for correction of incomes and articles 10 to 20 for corrections of expenses). Capital gains are included in the tax base for the year in the amount of 100%. Loss from current period can be carried forward to offset only the future taxable profits for the period not longer than 5 years.

Deferred tax Deferred tax liability represent the amount of tax liabilities that will be payed in future period. Deferred tax liability resulted from the diffrent calulation of accounting and taxable profit. Deferred tax is calculated using the actual or expected tax rate on the taxable temporary differences. Taxes, contributions and other legal obligations not depending on the operating result Taxes, contributions and other legal obligations not depending on the operating result include taxes and contributions paid according to the state and municipality regulations. These taxes and contributions are include in the position of Other operating expenses in the income statement.



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3.7. Intangible assets Intangible asstes are recognized at cost. Subsequent measuremnt are stated at cost less accumulated

depreciation and impairment.

Intangible assets mostly relate to computer software and licenses. Usefull life of intangible assets is

determined in accordance with the contracts for use of those assets, and for software in accordance

with their estimated useful lives.

According to the Article 13 of the Company income tax Law, the tax depreciation is calculated

differently from the accounting depreciation. The tax depreciation for software is calculated using

the deggressive method, while other intangible are amortised using the straight-line method.

3.8. Property and equipment

Property and equipment represent assets whose usefull life is longer than 1 year.

Initial recognition of property and equipment are stated at cost. Cost includes expenditure that is

directly attributable to the acquisition of the items.

After initial recognition of buildings and equipment, subsequent measuremnt of those are stated at

cost less accumulated depreciation and impairment.

Purchase value, in accordance with the changed accounting policy, the estimated value as of

30.09.2007. performed by independent apprisal.

Valuation of land is performed by fer value method on 31.10.2014.

After the initial recognition, land is measured using the revaluation method, or at fair value less any

subsequent total impairment losses.

Negative effects of the fair value adjustment is offset aginst the previously created revaluation

reserve, while the remaing amount is recorded at the position of expenses in the Income statement.

Positive effects from fair value adjustments are recorded within the revaluation reserve.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as

appropriate, only when it is probable that future economic benefits associated with the item will

flow to the Company and the cost of the item can be measured reliably. Maintenance and repair costs are recognized in the income statement. Gains and losses on disposals are determined by comparing proceeds with carrying amount and are

recognized within "Other income/expenses", in the income statement.



14


3.9. Depreciation Depreciation on property and equipment is calculated using the straight-line method to allocate their

cost or revalued amounts to their residual values over their estimated useful lives.

Depreciation charge is calculated starting from next month from the date of acquire of new fixed

assets. Estimated useful life used for calculation of depreciation and applied rates are as follows:

Estimated

remaining

Depreciation

Depreciation rate

Group of fixed assets useful life rate per tax balance

(years) (%) (%)

Buildings

- offices 40 2,5 5,0 - warehouses 20-40 2,5- 5,0

Containers 4-8 25,0-12,5 20,0

Outside installations 8-9 12,5-11,0 20,0

Office furniture and equipment 3-10 33,3-10,00 20,0

Vehicles 3-6 33,3-16,66 20,0

Forklifts, pallets trolleys 3-8 33,3-12,5 15,0

Computers 4 25,0 30,0

According to the Article 13, paragraph 6 of the Company income tax Law ( “Official Gazette of Montenegro” No 40 from 2008) , tax depreciation is different from accounting depreciation. Tax depreciation of buildings is calculated using the straight-line method, while for the depreciation of other fixed assest degressive method is used.

3.10. Impairment of non financial assets Business policy of the Company requires for Company to disclose information about fair value of assets and liabilities for which available official market information exist and when there is indication that the fair value significantly differ from the carrying value in Company records. The Company management estimates risk related to the possibility that assets carrying value will not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss is charged to the income statement, unless the related asset is presented in financial statements at revalued amount when an impairment loss is deducted from revaluation reserve. Cancellation of impairment is presented as an income, unless the asset is presented in financial statements at revalued amount when cancellation of impairment is treated as an increase of revaluation reserve.



15


3.11. Financial placements

Finansijski placements are classified as: - long term financial placements available for sale and term

deposits with banks.Classification of the financial assets depends on the natiure and purpose of

financial asset and has been determined at the moment of initial recognition.

Financial investments avaialable for sale

Financial investments avaialable for sale are carried throug throgh the indefinite period of time and

can be sold for liquidty purposes, or because the change occured either in intereset rate or market

value of shares. Avaialbe for sale financial intruments include investments in shares traded on

Montenegrin stock markets.

Securities classified as available for sale financial instruments are initially recognized at cost. The

cost include all other directly attributable expenses ( such as transaction expenses). Available-for-

sale financial instruments are subsequently carried at fair value. Changes in the fair value of

investments classified as available-for-sale are recognized in equity. When securities classified as

available-for-sale are sold or impaired, the accumulated fair value adjustments recognized in equity

are included in the income statement as 'gains and losses from investment securities'.

The Company assesses at each balance sheet date whether there is objective evidence that a

financial asset or a group of financial assets is impaired. If any such evidence exists for available-

for-sale financial assets, the cumulative loss – measured as the difference between the acquisition

cost and the current fair value, less any impairment loss on that financial asset previously

recognized in profit or loss – is removed from equity and recognized in the income statement.

Impairment losses recognized in the income statement on equity instruments are not reversed

through the income statement.

Term deposits

Term deposits are stated at nominal value.

3.12. Non current assets held-for-sale

Non-current assets are recognized as assets held for sale and stated at the lower of carrying amount

and fair value less costs to sell if their carrying amount is to be recovered principally through a sale

transaction rather than through a continuing use. Difference between carrying amount and lower fair

value is stated in the income statement as the impairment loss.

The asset can be recognized as an asset held for sale only when the sale of assets is feasible and

when the asset can be sold in its current condition. Sale of asset must be feasible within the period

of one year starting from the date of recognition of the asset as the assets held for sale.



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3.13. Inventory Inventories are stated at the lower of cost and net realizable value. Net realizable value represents the value at which the inventory can be sold in normal operational conditions after deduction for sale expenses.

An inventory impairment loss is recognized in the income statement when the net realizable value is

lower than cost. Damaged inventories are fully written off.

Inventories are determined using the weighted average method.

3.14. Trade receivables

Trade receivables are stated at invoiced value deducted for provision for impairment.

A provision for impairment of trade receivables is established when there is objective evidence that

the Company will not be able to collect all amounts due according to the original terms of

receivables. Significant financial difficulties of the debtor, probability that the debtor will enter

bankruptcy or financial reorganization, and default or delinquency in payments more than 180 days

overdue are considered indicators that the trade receivable is impaired.

An impairment loss is stated in the income statemnt under other expenses. Subsequent recoveries of

amount previously written off are credited to ‘other income’ in the income statement.

3.15. Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less.

3.16. Revaluation reserve

Revauation reserve arise from the effect of performed revaluation of property, plant and equipment

in accordance with the alternative accounting treatment permitted by IAS 16 – Property, plant and

equipment.

Increases in the carrying amount arising on revaluation of property, plant and equipment are

credited to revaluation reserves in equity. Decreases that offset previous increases of the same asset

are charged against revaluation reserves directly in equity; all other decreases are charged to the

income statement.

The effect of the revaluation of individual asset after disposal is stated directly as increase in

retained earnings or deduction of accumulated loss.

Impairment loss of an revalued asset is treated as deduction of already created revaluation reserve.

In cases when an impairment loss is higher that revaluation reserve, difference is charged to income

statement.



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3.17. Leasing A lease is classified as a finance lease in all cases where all the risks and benefits incidental to ownership of assets are transferred to the Company. All other leases are classified as operating leases. The lease subject is recognized as an asset and as a liability at fair value excluding the amount of interest payment of future rents. Each lease payment includes interest and principal payments to the annuity calculated. Interest expenses are charged to income statement on a pro rata basis on the outstanding balance of the rent. Depreciation of the asset being leased is performed during the life of the asset or over the lease period, depending on which of the two periods is shorter.

3.18. Trade payables

Trade payables are stated at invoiced value.

3.19. Provision, contingent assets and liablities

Provisions are recognized when: the Company has a present legal or constructive obligation as a

result of past events; it is probable that an outflow of resources will be required to settle the

obligation; and the amount has been reliably estimated. Provision for legal claims are recognized

when management of the Company estimates that it is probable that an outflow of resources will be

required to settle the legal claim.

Contingent liablities are recognized in the financial statements. Contingent liablities are disclosed in

the notes to financial statements, except in case when there is probability that an outflow of

resources will be insignificant.

Contingent assets are recognized in financial statemnts. Contingent assets are disclosed in the notes

to financial statements only in case when there is probability that an inflow of resources will be

significant. 3.20. Fair value Business policy of the Company requires for Company to disclose information about fair value of assets and liabilities for which available official market information exist and when there is indication that the fair value significantly differ from the carrying value in Company records. The Company management estimates risk related to the possibility that assets carrying value will not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. According to management opinion, amounts disclosed in these financial statements reflect values

that are, in the given circumstances, most appropriate for the reporting purposes.



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4. Income (in Eur)

Service income 2015. 2014.

Service income on domestic market 4.515.576 4.444.497 Service income on foreign market 684.483 405.530

5.200.059

4.850.027

5. Cost of services rendered (in Eur) 2015. 2014.

Cost of services on domestic market 564.744 438.847

Cost of services on foreign market 1.027.272 824.689

1.592.016

1.263.536

6. Cost of materials, fuels and energy (in Eur) 2015. 2014.

Office expenses 40.905 40.177

Other materials 3.243 3.334

Fuel and lubricants 66.897 73.591

Used fuels and energy 33.696 44.507

144.741

161.609

7. Employees expenses (in Eur) 2015. 2014.

Salaries-gross 1.375.513 1.496.914 Social contributions paid by employer 165.170 159.144 Redundancy payment- net 20.061 54.618 Jubilee awards 3.900 1.000 Other payments to employees 10.239 9.086

Daily allowances and transportation cost for business trips 33.953 32.053

Costs of unused annual holidays 25.054 39.358

1.633.890

1.792.173



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8. Depreciation and provision (in Eur) 2015. 2014.

Depreciation of PPE 428.049 449.221

Depreciation of intangible assets 2.438 2.610

Provision cost- court claims 10.000 -

440.487

451.831

Depreciation costs for 2015. in amount of 430.487 € (2014: 451.831 €) have been calculated in accordance with the Note 3.9. 9. Other operating expenses (in Eur) 2015. 2014.

Representation 41.065 21.987

Phone 62.622 65.991

Intereuropa related expenses 72.161 71.717

Cost related to regional manager of Intereuropa 57.122 57.217

Maintenance 72.425 63.132

Rentals 105.950 106.473

Advertising 20.239 9.805

Insurance premiums 26.679 18.811

Lawyer and audit services 20.108 23.834

Consulting costs 131.850 21.081

Services from students and other similar organizations 18.072 60.382

Utilities 24.144 34.235

Security 42.809 23.747

Other services 16.941 23.217

Sponsorship 31.635 14.700

Transaction and bank fees 10.921 12.800

Commision fee of guarantees 40.774 41.065

Court and other taxes 2.740 7.992

Taxes 72.891 73.296

Previous years expenses 18.167 7.655

Registration, municipality services and others 38.725 43.745

928.040

802.882

10. Financial incomes and expenses

(in Eur) 2015. 2014.

Financial incomes Interest income 51.884 72.714 Financial expenses -

-

Net financial income

51.884

72.714



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11. Other incomes (in Eur) 2015. 2014.

Inventory surplus - Gains from sale of property and equipment 712 8.796 Collection of bad debts 457.415 463.958 Collection of written off receivables 7.730 1.839 Income from sales of securities 2.818 - Income from prior years 101 51 Release of lonfg term provision - 27.091 Other incomes 2.723 3.250

471.499

504.985

12. Other expenses (in Eur) 2015. 2014.

Write off of trade receivables overdue more 180 days 389.211 464.593

Write off uncollectible receivables - 98

Write off and disposal of PPE - 50

Write off goods 63.811 574

453.022

465.315

13. Income tax

(in Eur)

2015. 2014.

Current tax 31.798 65.755

Deferred tax 11.555 14.092

43.353

79.847

Following table represent the adjustment of the income tax in accordance to the financial statements

and tax statements:

(in Eur)

2015. 2014.

Profit before tax 490.380

Tax calculated at 9% 47.812 44.134

Tax effects of the expenses not recognized for taxable purposes (4.459) 35.713

Incomes recognized as an deduction of tax base (11.555) (14.092)

Current tax

31.798

65.755



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14. Earnings per share

(in Eur)

2015. 2014.

Profit after tax 487.893 410.533

Number of shares 8.220.912 8.220.912

0,0593

0,0499

15. Intangible assets

(in Eur)

Software Licences Total

Cost

As of 1.01. 2015. 27.579 11.897 39.476

Addition 40.305 704 41.009

Write off (975) - (975)

As of 31.12. 2015. 66.909 12.601 79.510

Accumulated depreciation

As of 1.01. 2015. 26.931 7.300 34.231

Write off (975) - (975)

Depreciation charge for 2015. - 2.438 2.438

As of 31.12.2015. 25.956 9.738 35.694

Net book amount

as of 31.12.2015. 40.953 2.863 43.816

Net book amount

as of 31.12. 2014. 648 4.597 5.245



22

16. Property and equipment

Changes in property and equipment during 2015 are presented in the following table:

(in Eur)

Land Buindings Equipment

and

vehicles

Investm

in third

party

assets

Tools Construc

tion in

progress

Total

Cost

As of 1.01. 2015. 6.037.474 14.888.446 1.266.374 35.251 123.636 83.499 22.434.680

Addition - 7.173 52.039 - - 113.191 172.403

Transfer - 157.302 - - - (157.302) -

Prenos na AVR - - - (9.909) - - (9.909)

Sale - - (2.860) - - - (2.860)

Write off - (1.080) (15.036) (25.342) (118.212) - (159.670)

As of 31.12. 2015. 6.037.474 15.051.841 1.300.517 - 5.424 39.388 22.434.644

Accumulated

Depreciation

As of 1.01. 2015. - 2.943.398 1.045.394 22.210 118.212 - 4.129.214

Depreciation charge

for 2015 - 348.071 76.846 3.132 - - 428.049

Sale - - (2.860) - - - (2.860)

Write off - (1.012) (15.036) (25.342) (118.212) - (159.602)

As of 31.12. 2015. - 3.290.457 1.104.344 - - - 4.394.801

Net book amount

As of 31.12.2015. 6.037.474 11.761.384 196.173 - 5.424 39.388 18.039.843

Net book amount

As of 31.12 2014. 6.037.474 11.945.048 220.980 13.041 5.424 83.499 18.305.466

17. Non current assets held-for-sale (in Eur) 2015. 2014.

Business premises in Sarajevo, Federation of

Bosnia and Hercegovina 105.656 105.656

Business premises in Priština, Kosovo 77.477 77.477

183.133 212.714

Impairment according to the Decision (183.133) (212.714)

As of 31. December - -

. In 2012. impairment of value of non current assets held for sale has been perfromed in accordance

with the Decision of Board of Directors which relates to impairment of business premises outside

Montenegro for which acquring over full disposition of the property is in process with relevant legal

authorities



23

18. Long term financial placements available for sale

(in Eur) 2015. 2014.

Novi prvoborac AD Herceg Novi - 794

Luka Bar AD Bar 758 4.900

Kontejnerski terminal ad, Bar 490 620

Montenegrobanka ad, Podgorica 194 292

1.442

6.606

Subsequent measurement of available-for-sale financial instruments has been performed as of 31.12.2015. at fair value. Changes in the fair value of investments classified as available-for-sale are recognized in equity. 19. Inventory (in Eur) 2015. 2014.

Goods for wholesale 54.345 114.459

Materials - 85

Prepayments 30.030 229.399

Impairment of prepayments - (117.984)

84.375

225.959

20. Trade receivables

(u Eur) 2015. 2014.

Trade receivables: Domestic 1.571.342 1.590.669 Foreign 139.603 35.255 Minus: Impairment (267.708) (390.741)

1.443.237 1.235.183

Receivables from employees 65.025 51.533

Receivables for interest 31.156 17.772

Receivables for prepaid surtax 991 991

Receivables from refund of sick leave 72.025 63.297

Other receivables 706.792 549.990

875.989 683.583

2.319.226 1.918.766

Other receivables in amount of 706.792 € (in 2014. they were 549.990€) represent debt taken from

A-KOP ltd Podgorica in amount of 549.990 €, by Agreement of Cession from 26.03.2014. and

Agreement on assumption of debt fro 31.05.2013. There was a mortgage (Mortgage Agreement UZZ

321/2014, of 01.06.2014.) as a collateral in favor of Zetatrans JSC, Podgorica.

Other receivables including customs duty,paid in favour of Vuk Petrol Ltd, Kotor in amount of

145.213 € and receivables from one person, in amount of 11.589 € are both secured by a mortgage.



24

Following table represents the aging structure of receivables:

(in Eur)

2015.

Undue receivables 314.733

Receivables overdue up to 30 daysa 291.796

Receivables overdue from 31 to 60 days 128.010




Receivables overdue from 1 to 3 years 136.950

Receivables overdue over 3 years 25.016

Trade receivables - gross

1.710.945

Movements in the provision for impairment loss for trade receivables during 2015 and 2014. are

presented in the following table:

(in Eur) 2015. 2014.

As of 1. January 508.725 579.094

Collected during the year (Note 4) 457.415 (463.958)

Additional provision during the year (Note 8) 389.211 464.593

Write off (172.813) (71.364)

As of 31. December

267.708

508.725

21. Short term financial placements

Short term financial placements as of 31.12.2015. in amount of 1.430.000 € (2014. 1.600.000 €)

relate to term deposits in:

- Prva banka JSC Podgorica, the placement in amount of 1,100,000 € has been deposited

1.04.2015. for 12 month with interest rate of 3.80 % p.a;

- Zapad Bank JSC, Podgorica, the placement in amount of 330,000 € has been deposited

21.10.2015. for 366 days with interest rate of 2,10 % p.a;

22. Cash and cash equivalents

(in Eur) 2015. 2014.

Petty cash 1.375 2.916 Gyro accounts 156.995 185.326 Foreign account 26.050 10.292 Other cash assets – letter of credit 13.065 2.448

197.485 200.982 Term deposits

Foreign exchange accounts held with foreign banks 1.150.936 1.150.936 Minus: Impairment (1.150.936) (1.150.936)

- -

197.485 200.982

Foreign exchange accounts held with foreign banks in amount of 1.150.936 € as of 31.12.2015.

represents amounts deposited with LHB International Handelsbank AG, Frankfurt am Main, Germany



25

in amount of 1.181.885 USD and 236.969 €, which have been blocked in accordnace with order from

High state prosecutor of Germany. (Accoring to Decision of National Court in Augsburg, funds are

deposited with the Court). Until the date of preparation of these financial statements, Company still

does not have disposition over stated amounts.

23. Share equity

Structure of shareholders equity as of 31.12.2015. and 31.12.2014. as registered in Central Depository

Agency is presented in following table: (in Eur) 31.December 2015. 31. December 2014.

No of

shares

Nominal

value

% No of

shares

Nominal

value

%

Legal entities

Intereuropa d.d. Kopar 5.694.425 7.279.183 69.27 5.694.425 7.279.183 69,27

Zetagradnja doo. Podgorica 187.706 239.945 2.28 187.706 239.945 2,28

Zveza bank RZZOJ, Austria 67.481 86.261 0.82 67.481 86.261 0,82

EK - Custody account 1 42.898 54.837 0.52 - - -

MK Invest 25.736 32.898 0.31 23.386 29.894 0,28

Custody account 5 16.290 20.823 0.20 16.290 20.823 0,20

CG Broker-diler AD 22.807 29.154 0.28 14.185 18.133 0,17

Others 14.526 18.569 0.18 14.420 18.203 0,18

6.071.869 7.761.670 73,86 6.017.713 7.692.442 73,20

Individuals 2.149.043 2.747.122 26.14 2.203.199 2.816.349 26,80

8.220.912 10.508.792 100,00 8.220.912 10.508.792 100,00

Nominal value of share is 1,2783 €. All shares have been issued as ordinary and registered with Central Depository Agency. Zetatrans

shares are quoted on Stock markets in Montnegro. Fair value per share as of 31.12.2015. amounts to

0,6200 € (in 31.12.2014. amounted 0,7600 €).

Shareholders Assembly as of 12.06.2015. adopted Decision on dividends payment from profit in

amount of 657.673 Eur. Dividenst can be collected by shareloders existed as of 12.06.2015. according

to the register from Central Depository Agency.

Changes in shareholders equity in 2015 and 2014 are presented in the Statement of changes in equity.



26

24. Long term provision (in Eur)

2015. 2014.

Provision for legal claims 10.000 - Employee benefits Redundancy payments 11.527 11.527 Jubilee awards 16.182 16.182 As of 31. December

37.709

27.709

Changes in long term provision during 2015 were as follows:

(in Eur) Collected during the year (Note 4) Provision

for legal

claims

Redundancy

payments

Jubilee

awards

As of 1. January - 11.527 16.182

Increase during the year 10.000 - -

Decrease of provision - - -

Increase/Decrease based on the assesement of actuary - - -

As of 31. December 10.000 11.527 16.182

25. Short term trade payables

(in Eur) 2015. 2014.

Trade payables Advances received 11.846 38.331

Trade payables- domestic 274.173 232.529 Trade payables- foreign 190.636 164.071 Related parties 44.764 38.737

Liabilities for guarantees 14.290 27.475

535.709

501.143

Following table represents the aging structure of payables:

(in Eur)

2015.

Undue payables 217.383

Payables overdue up to 30 days 201.235

Payables overdue from 31 do 60 days 21.879




More than 1 year 775

Total trade payables- domestic and foreign 509.573



27

26. Other short term liabilities and accruals (in Eur) 2015. 2014.

Liabilities for net salaries 80.291 82.313 Liabilities for personal income tax 23.027 13.061

Social contributions payable by employees 48.112 29.655

Social contribuations payable by employer 15.235 15.790

Costs of unused annual holidays 25.054 39.358

Liabilities for dividends 409.026 407.927

Liabilities for redudancy 9.000 -

Witholding tax on dividends 38.521 38.439

Deferred income 5.701 -

Other liabilities 5.022 6.082

658.989

632.625

Liabilities related to taxes and contrubutions relate to unpaid salaries for December 2015.

Liabilities for dividens mainly relate to unpiad dividends from profit distibution in 2007, 2008, 2009,

2010, 2011,2012, 2013 and 2014.

27. Related party transactions (in Eur) 2015. 2014.

Service incomes

Intereuropa d.d. Koper 59.929 81.749

Intereuropa Skoplje 36.001 -

Intereuropa RTC d.d. Sarajevo 202 676

AD Intereuropa logističke usluge, Beograd 31.621 34.388

Intereuropa Kosova L.L.C. Priština 708 801

Intereuropa logisičke usluge d.o.o. Zagreb 2.825 9.177

131.286 126.791

Service expences

Intereuropa d.d. Koper 162.043 277.380

Intereuropa RTC d.d. Sarajevo - 470


Intereuropa d.o.o. Zagreb 1.415 949

Intereuropa Kosova L.L.C. Priština 60 59

218.428 325.932

(in Eur) 2015. 2014.

Receivable balances

Intereuropa d.d. Kopar 25.804 3.339

Intereuropa logističke usluge doo Zagreb 1.675 -


Intereuropa RTC d.d. Sarajevo 126 -

Intereuropa Kosovo L.L.C. Priština 129 -

33.212 8.902

Payable balances

Intereuropa d.d. Kopar 39.997 32.916


Intereuropa d.o.o. Zagreb 242 63

44.764 38.737



28

28. Court claims

As of 31.12.2015, there were court claims proceedings against the Company from five former

employees. A contingent liability is estimated at 35.000 €. This loss (contingent liability) includes

compensation for damages salary reimbursement and annulment of the termination of employment

notices. The Company has set aside a provision in amount of 10.000 €. (Remark 24.)

The Company will not be exposed to other losses that would have material impact in this relation.

Court cases initiated by the Company mainly relate to uncollected receivables from business

transactions. The value of court claims on 31.12.2015. amounts to 688.644 €.

29. Contingent liabilities

The Company issued guarantees (custom guarantees) in amount of 3.340.000 EUR. This guarantee is

secured by mortgages on company real estates, registered in the immovable property no 333 KO

Dajbabe, in favor of the issuer AD NLB Montenegro, Podgorica. Management of the Company does

not expect to be exposed significantly on potential obligations based on issued guarantees.

30. Foreign exchange

Official foreign exchage rate for USD that was used during preparation of these financial statements as

of 31.12.2015. amounted to 0,9152 EUR (as of 31.12. 2014. amounted EUR 0,82236).

Documents

“ZETATRANS” JSC PODGORICA...“ZETATRANS” JSC, PODGORICA FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015. 7 Balance sheet ( in Eur) Note 2015. 2014. Long term assets