Reserves of future expenses and valuation reserves

4.8. Reserves of future expenses and valuation reserves
At the end of accounting period the following reserves are reflected in the accounting sheet-balance:
-
reserves for doubtful debts in the amount of 1 192 393 thousand Rubles
-
reserves for future expenses and payments in the amount of 188 259 thousand Rubles
Information on reserves for contingent liabilities.
Branch of IDGC of Centre, JSC – “Kostromaenergo”
Nature of liability - legal proceedings in progress as of 31.12.2009 on claim of Kostroma Sales Company, JSC against the branch of IDGC of Centre, JSC – Kostromaenergo for the unfounded enrichment due to application in settlements for electric power transmission services of value of declared power taking into account power reserve provided for by the clause 9 of the Order of formation of free manufacturing statement of production and electric power (capacity) deliveries within the framework of UES of Russia over constituent entities of the Russian Federation approved by the Order of Federal Tariff Service of Russia No.225-5/4 dated 04.09.2007 in the amount of 101180481,38 RUR (case No. A31-6083/2009 examined by the Arbitration Court of Kostroma region).
Expected deadline for the fulfillment of liability – for the moment of creation of reserve IDGC of Centre, JSC took an appeal to the Court of Appeal; date of the court session is not fixed. Entry into legal force of decision in abovementioned case is expected to be not earlier than 2010, amount of liability is 101 180 481,38 RUR.
The maximum possible amount of contingent liability (probability of liability attachment is determined in 99,9% (as very high)) according to expert estimation is 101 080 481,38 RUR.
On this fact as of 31.12.2009 the accounting statements provide contingent facts reserve in the amount of 101 080 481 RUR.
Branch of IDGC of Centre, JSC – “Smolenskenergo”
At the conclusion of electric power transmission service contract No. 1 for 2008 with guarantee supplier “Smolenskenergosbyt”, JSC clauses related to the order of determination of points of delivery of electric energy (power) to multifamily residential houses remained unregulated.
During 2008 the branch of IDGC of Centre, JSC – “Smolenskenergo” was forming the volumes of rendered electric power transmission services taking into account volumes of electric power fixed by the accounting meters at input into multifamily residential houses. “Smolenskenergosbyt”, JSC was contesting indicated volumes considering individual accounting meters of residential consumers living in multifamily residential houses to be the points of delivery.
So, following the results of 2008 disagreements concerning rendered electric power transmission services (in compliance with signed acts) were in the amount of 28 978 410,13 RUR (including VAT).
With a view to disagreements IDGC of Centre, JSC – branch “Smolenskenergo” filed an action with arbitration court of Smolensk region against “Smolenskenergosbyt”, JSC and “Zhilishchnik”, JSC for the recovery in joint order.
Abovementioned as for “Zhilishchnik”, JSC is applicable for cases of recovery of indebtedness in a judicial procedure. But there are risks connected with legal proceedings when it will be difficult to recover unfounded enrichment from managing organization by reason of failure of conformation of service rendering base on accounting meters. In many cases there are no accounting meters at the boundary of balance delineation and payment is performed only according to accounting meters installed inside the flat. If there are no accounting meters at the boundary of balance delineation indicators of meters installed in grids of IDGC of Centre, JSC of the branch “Smolenskenergo” near to boundary of balance delineation are not accepted by guarantee supplier and consumers as calculated ones.
In accordance with clause 50-51 of RF Government Ordinance No. 861 dated 27.12.2004 amount of actual electric power losses in power grids is determined as difference between volume of electric power supplied into power grid from other grids or from producers of electric power and volume of electric power consumed by power receivers connected to this grid and transmitted to other grid organisations as well.
Grid organisations have to pay the cost of actual losses occurred in power supply facilities belonged to them less cost of losses provided through the prices (tariffs) for electric power in wholesale market.
Thus, rise of disagreements between the branch “Smolenskenergo” and “Smolenskenergosbyt”, JSC regarding volume of rendered electric power transmission services (i.e. volume of electric power consumed by power receivers connected to this grid) in 2008 stipulates in its turn rise of disagreements regarding volume of electric power losses in power grids.
Therefore disagreements regarding buying of electric power losses (in compliance with signed acts) in 2008 were in the amount of 74 111 163,77 RUR (including VAT).
On this fact as of 31.12.2009 the accounting statements provide reserve for doubtful debts amounting to the indebtedness in respect of rendered electric power transmission service for the period January-December 2008 in the amount of 28 978 410, 13 RUR (including VAT) and contingent facts (liabilities) reserve at buying of electric power losses in the amount of 74 111 163,77 RUR (including VAT).
Branch of IDGC of Centre, JSC – “Belgorodenergo”
As of 31.12.2009 between IDGC of Centre, JSC and Belgorod Sales Company, JSC there are disagreements in the amount of 29 422 683,18 RUR regarding volumes of rendered electric power transmission services and, consequently, regarding volumes of losses in power grids which are subject to compensation under the electric power transmission service contract No. 40009698 dated January 01, 2008 as amended by the additional agreement No. DS3100/00483/03 dated December 23, 2009. Reason of mentioned disagreements was existence between Belgorod Sales Company, JSC and IDGC of Centre, JSC of disputed part regarding the volumes of electric power transmitted to the consumers of Belgorod Sales Company, JSC. Mentioned dispute arose in connection with failure of methodology of determination of electric power transmission volume in the current legislation and unadjusted procedure by the contract as well. Earlier such dispute was subject of proceedings of first and appellate instance arbitration courts. In course of proceedings in case the parties regulated disputed legal relationship voluntary. In accordance with clauses 212 and 136 of Rules of functioning of retail markets of electric power during transitional period of reforming of electric power industry (hereinafter referred to as the Rules of functioning) volume of losses and payment of rendered services is performed on the basis of data received with the help of accounting meters and/or by calculated method in accordance with the Rules of revenue metering approved by the federal body of executive power. Mentioned Rules of revenue metering are still not adopted and not put in force. By reference to the requirements of the clause 159 of the Rules of functioning grid organisation provides collection of data of electric power revenue metering at boundary points of its grids. In view of failure of evidences of fulfillment of requirements of the clauses 121, 136 and 159 of the Rule by the branch of IDGC of Centre, JSC – “Belgorodenergo” and taking into account that the volume of disputed rendered services by grid organisation is not documented risk of probable production of Belgorod Sales Company, JSC before the Arbitration Court of Belgorod region with bill of complaint in respect of recovery of sums which are subject to compensation of electric power losses in grids belonging to the branch of IDGC of Centre, JSC – “Belgorodenergo” on an ownership basis or on another legal foundation arises. Thus, unregulated volume of expenses related to compensation of technological losses in the grids of the branch of IDGC of Centre, JSC – “Belgorodenergo” equals 29 422 683,18 RUR. Degree of possible outcome of legal proceedings in favor of Belgorod Sales Company, JSC is approximately estimated to be equal to 43-45%.
On this fact as of 31.12.2009 the accounting statements provide contingent facts reserve in the amount of 13 067 800 RUR.
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4.9. Shares of the Company (Property Management Department)
As of December 31, 2009 the Authorized capital of the Company was fully paid and consists of:
Name
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Total quantity, shares
|
Par value, RUR
|
Ordinary shares
|
42 217 941 468
|
4 221 794 146,8
|
Preference shares
|
-
|
-
|
Total
|
42 217 941 468
|
4 221 794 146,8
|
List of registered persons holding more than 5% of ordinary shares as of December 31, 2009 without regard to data on customers of nominee holders:
No.
|
Registered persons
|
Name/Full name
|
Ordinary shares
|
% of outstanding shares
|
1
|
Nominee holder
|
Limited Liability Company “Depositary and corporate technologies”
|
21 206 473 501
|
50.2310
|
2
|
Nominee holder
|
Closed Joint-Stock Company “Depositary Clearing Company”
|
7 904 420 657
|
18.7229
|
3
|
Nominee holder
|
Limited Liability Company “Deutche Bank”
|
5 775 353 373
|
13.6799
|
4
|
Nominee holder
|
Closed Joint-Stock Company commercial bank “Citibank”
|
2 572 213 859
|
6.0927
|
4.10. Authorized capital
The Authorized capital of IDGC of Centre, JSC as of 31.03.2008 equaled 4 221 794 146, 80 Rubles it is divided into 42 217 941 468 ordinary registered shares par value of which is 10 kopecks.
4.11. Credits and loans
Indebtedness of IDGC of Centre, JSC under credits and loans as of 01.01.2009 was 9 381 309,47 thousand Rubles including 5 443 505,81 thousand Rubles - under long-term credits, 27 177,84 thousand Rubles – under accrued but not paid interests on long-term credits, 3 890 425,40 thousand Rubles – under short-term credits, 20 200,42 thousand rubles - under accrued but not paid interests on short-term credits
Data on flow of borrowed funds in 2009 is presented in the Table 1.
flow of borrowed funds of IDGC of Centre, JSC in 2009
(thousand Rubles)
Type of indebtedness
|
Indebtedness as of 31.12.2008
|
2-4 quarter, 2008
|
Indebtedness as of 31.12.2009
|
Attracted/
accrued
|
Repaid/
is repaid
|
|
long-term credits
|
5 443 505,81
|
6 930 000,00
|
1 673 952,80
|
10 699 553,01
|
interests on long-term credits
|
27 177,84
|
986 918,04
|
987 399,26
|
26 696,63
|
short-term credits
|
3 890 425,40
|
9 571 467,15
|
13 061 892,55
|
400 000,00
|
interests on short-term credits
|
20 200,42
|
422 645,38
|
442 845,80
|
0,00
|
Credits total
|
9 333 931,21
|
16 501 467,15
|
14 735 845,35
|
11 099 553,01
|
Interests total
|
47 378,26
|
1 409 563,43
|
1 430 245,06
|
26 696,63
|
Total
|
9 381 309,47
|
17 911 030,58
|
16 166 090,41
|
11 126 249,64
|
indebtedness under credits and loans of IDGC of Centre, JSC as of 31.12.2009 will be repaid during the following terms:
In the 1st quarter, 2010 – 827 483,41 thousand Rubles;
In the 2nd quarter, 2010 – 2 022 920,26 thousand Rubles;
In the 3rd quarter, 2010 – 1 685 507,37 thousand Rubles;
In the 4th quarter, 2010 – 1 400 499,41 thousand Rubles.
Total in 2010 credits and loans in the amount of 5 936 410,45 thousand Rubles will be repaid.
From indicated sum indebtedness under credits and loans in the amount of 5 536 410,45 thousand Rubles is reflected on line code 510 “Long-term credits” of accounting sheet-balance in accordance with the Accounting policy of IDGC of Centre, JSC and conditions of credit contracts.
5 163 142,56 thousand Rubles will be paid within the period since 2011 till 2014 including in 2011 – 2 163 588,55 thousand Rubles, in 2012 – 1 433 764,53 thousand Rubles, in 2013 – 894 736,84 thousand rubles, in 2014 – 671 052,64 thousand Rubles.
Sum of interests paid in 2009 and attributed to investment assets equaled 187 253 thousand Rubles.
Sum of available limits on contracts in force of the Company equaled 5 495 768 thousand Rubles as of 31.12.2009.
4.12. Earnings and expenses from ordinary activities
Earnings and expenses for the accounting year are reflected in the profit and loss statement separately on ordinary activities and on other earnings and expenses with disclosure of types and amounts.
For the accounting year the proceeds from rendering of services equaled 49 053 276 thousand Rubles.
Name
|
2009
|
|
|
Total income (line code 010 of form No. 2)
|
49 053 276
|
For the accounting year prime cost of service rendering equaled 43 257 087 thousand Rubles in comparison with last year prime cost increased by 13 013 365 thousand Rubles.
Name
|
2009
|
|
|
Total prime cost (line code 020 of form No. 2)
|
43 257 087
|
4.13. Earnings and expenses
The Company receives proceeds from rendering of the following services:
No.
|
Kinds of proceeds
|
Sum
|
1.
|
Proceeds from electric power transmission
|
46 869 934
|
2.
|
Proceeds from technical connection
|
1 646 694
|
3.
|
Proceeds from execution of other works, rendering of services of industrial nature
|
536 648
|
|
Total proceeds
|
49 053 276
|
|