Interpipe IFRS Consol 2011 FINAL ... INTERPIPE LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE...

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Transcript of Interpipe IFRS Consol 2011 FINAL ... INTERPIPE LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE...

  • INTERPIPE LIMITED

    Consolidated Financial Statements Year ended 31 December 2011 together with

    Independent Auditor’s Report

  • INTERPIPE LIMITED

    TABLE OF CONTENTS

    DIRECTORS’ REPORT ............................................................................................................................................... 3 STATEMENT OF DIRECTORS’ AND MANAGEMENT’S RESPONSIBILITIES .................................................. 6 INDEPENDENT AUDITOR’S REPORT ................................................................................................................... 7 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 December 2011 Consolidated statement of financial position ................................................................................................................ 9 Consolidated statement of comprehensive income ..................................................................................................... 10 Consolidated statement of changes in equity .............................................................................................................. 11 Consolidated statement of cash flows ......................................................................................................................... 12 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Corporate information ....................................................................................................................................... 13 2. Basis of preparation ........................................................................................................................................... 13 3. Summary of significant accounting policies ...................................................................................................... 14 4. Significant accounting judgements and estimates ............................................................................................. 24 5. Segment information ......................................................................................................................................... 26 6. Property, plant and equipment ........................................................................................................................... 30 7. Intangible assets and goodwill ........................................................................................................................... 32 8. Investments in associates ................................................................................................................................... 33 9. Income tax ......................................................................................................................................................... 34 10. Prepaid current income tax ................................................................................................................................ 37 11. Inventories ......................................................................................................................................................... 37 12. Trade and other accounts receivable .................................................................................................................. 37 13. Prepayments and other current assets ................................................................................................................ 38 14. Taxes recoverable, other than income tax ......................................................................................................... 38 15. Other financial assets ......................................................................................................................................... 38 16. Cash and cash equivalents ................................................................................................................................. 38 17. Borrowings ........................................................................................................................................................ 39 18. Provisions .......................................................................................................................................................... 42 19. Trade and other accounts payable...................................................................................................................... 45 20. Taxes payable, other than income tax ................................................................................................................ 45 21. Advances and other current liabilities ............................................................................................................... 45 22. Cost of sales ....................................................................................................................................................... 46 23. Selling and distribution expenses ...................................................................................................................... 46 24. General and administrative expenses ................................................................................................................. 46 25. Other operating income and expenses ............................................................................................................... 47 26. Operating and non-operating foreign exchange difference................................................................................ 47 27. Finance income .................................................................................................................................................. 47 28. Finance costs ..................................................................................................................................................... 48 29. Equity ................................................................................................................................................................ 48 30. Business combination ........................................................................................................................................ 49 31. Principal subsidiaries ......................................................................................................................................... 50 32. Related party transactions .................................................................................................................................. 51 33. Commitments, contingencies and operating risks ............................................................................................. 52 34. Financial risk management ................................................................................................................................ 53 35. Events after the reporting period ....................................................................................................................... 55

  • INTERPIPE LIMITED DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2011

    3

    The Directors present their Report together with the accompanying consolidated financial statements (the “Consolidated Financial Statements”) of Interpipe Limited (referred to herein as the “Company”) and its subsidiaries (collectively referred to herein as the “Group”), which comprise the consolidated statement of financial position as at 31 December 2011, and the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes.

    Principal Activity and Subsidiaries

    The Company was incorporated under the Companies Law of Cyprus under the name of Ramelton Holdings Limited as a limited liability company on 30 December 2005 and changed its name to Interpipe Limited on 15 May 2007. The registered office and the principal place of business of the Company is Mykinon 12, Lavinia Court, 6th floor, P.C. 1065 Nicosia, Cyprus.

    The Company operates through a number of subsidiaries in various jurisdictions (the list of the subsidiaries is disclosed in Note 31 to the accompanying Consolidated Financial Statements) and has concentration of its business in Ukraine, where its production subsidiaries are located.

    The principal activity of the Company is holding ownership interests in its subsidiaries, their financing and strategic management. The Group’s activities comprise design, manufacture and distribution of steel tubes and solid-rolled railway wheels.

    Development and Performance of the Business

    The Group is the largest manufacturer of steel pipes and railway wheels in Ukraine.

    Its products are exported to 64 countries and sold domestically.

    In 2011, the Group generated revenue from sales of USD 1.7 billion and net profit attributable to the equity holders of the Company amounted to USD 35.7 million. The pipe business segment accounted for 73 per cent of the revenue from sales and 81 per cent of the gross profit and the wheel business segment accounted for 19 per cent of the revenues and 19 per cent of the gross profit in 2011. Further segment information is disclosed in Note 5 to the accompanying Consolidated Financial Statements.

    Issued Capital and Capital Distributions

    Upon its incorporation on 30 December 2005, the Company issued to the subscribers of its Memorandum of Association 1,000 ordinary shares of CY£1 each at par. On 22 December 2006 the Company issued 4,000 additional ordinary shares of CY£1 each at a premium of CY£ 41,033 each for a total premium of CY£164,132 thousand, which is equivalent to USD 361,091 thousand.