EX-99 21 ex99-19.htm UNITED ENERGY AUDITED FINANCIAL STATEMENTS Auditor's Report for United Energy, a.s. PricewaterhouseCoopers

PricewaterhouseCoopers Audit, s.r.o.
Exhibit H-1

Katerinska 40
120 00 Prague 2
Czech Republic
Telephone +420 (2) 5115 1111
Facsimile +420 (2) 5115 6111
ID No. 40765521

REPORT OF INDEPENDENT AUDITORS

TO THE SHAREHOLDERS OF UNITED ENERGY, a.s.

We have audited the accompanying balance sheet of United Energy, a.s. as at 31 December 2000, the related income statement and notes, including the statement of cash flows, for the year then ended (“the financial statements”). The financial statements and underlying accounting records are the responsibility of the Company’s Board of Directors. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the Act on Auditors and Auditing Standards of the Chamber of Auditors of the Czech Republic. Those auditing standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion the accompanying financial statements present fairly, in all material respects, the assets, liabilities and equity of United Energy, a.s. as at 31 December 2000, and the results of its operations and its cash flows for the year then ended in accordance with the Act on Accounting and other relevant legislation of the Czech Republic. 


2 March 2001

/s/PricewaterhouseCoopers

PricewaterhouseCoopers Audit, s.r.o.
Represented by

/s/Thomas Linder                                          /s/Ivana Kunova

Thomas Linder                                             Ivana Kunova
Partner                                                   Auditor, Licence No. 1784

PricewaterhouseCoopers Audit, s.r.o. is registered in the Commercial Register with the Municipal Court in Prague, part C section No. 3637 and in the Register of Audit Companies with the Chamber of Auditors of the Czech Republic under Licence No. 21.

                              UNITED ENERGY, a.s.
                      FINANCIAL STATEMENTS - BALANCE SHEET
                                     ASSETS

                                                 12/31/2000     12/31/1999
                                                 ------------  -------------

                                                        (CZK 000's)

Total Assets                                       7,351,583      5,369,011
                                                 ============  =============

Fixed Assets                                       6,747,401      4,840,790
                                                 ------------  -------------

    Intangible Fixed Assets                            4,651            325
                                                 ------------  -------------

      Software                                         3,005            311
      Other Intangible Fixed Assets                        -              5
      Intangible Assets in the Course of Construction  1,646              9
                                                 ------------  -------------

    Tangible Fixed Assets                          6,331,052      4,840,339
                                                 ------------  -------------

      Land                                            43,772         10,273
      Buildings and Constructions                  1,624,883        774,089
      Equipment                                    4,330,939      3,596,360
      Other Tangible Fixed Assets                        388            640
      Tangible Assets in the Course of Construction  216,726        458,240
      Advances Paid for Tangible Fixed Assets        114,344            737
                                                 ------------  -------------

    Long-Term Investments                            411,698            126
                                                 ------------  -------------

      Investments in Group Undertakings              411,643            120
      Investments in Associated Companies of the Group    49              -
      Other Investments                                    6              6
                                                 ------------  -------------

Current Assets                                       581,629        441,740
                                                 ------------  -------------

    Inventories                                      103,874         69,124
                                                 ------------  -------------

      Raw Materials                                  103,874         69,124
                                                 ------------  -------------

    Long-Term Receivables                             13,909            175
                                                 ------------  -------------

      Long-Term Trade Receivables                     13,909            175
                                                 ------------  -------------

    Short-Term Receivables                           213,441        166,633
                                                 ------------  -------------

      Trade Receivables                              159,027        136,196
      Tax Receivables and State Subsidies
         Receivable                                   31,517         30,013
      Other Receivables from Group Undertakings       22,000              -
      Other Receivables                                  897            424
                                                 ------------  -------------

    Financial Assets                                 250,405        205,808
                                                 ------------  -------------

      Cash in Hand                                       415            314
      Cash at Bank                                   149,990         95,494
      Short-Term Investments                         100,000        110,000
                                                 ------------  -------------

Other Assets                                          22,553         86,481
                                                 ------------  -------------

    Accruals and Deferrals                            22,136         86,274
                                                 ------------  -------------

      Prepaid Expenses                                   833            765
      Accrued Revenue                                     34              -
      Unrealized Exchange Rate Losses                 21,269         85,509
                                                 ------------  -------------

    Anticipated Assets                                   417            207
                                                 ------------  -------------


                              UNITED ENERGY, a.s.
                      FINANCIAL STATEMENTS - BALANCE SHEET
                         LIABILITIES AND OWNER'S EQUITY

                                               12/31/2000     12/31/1999
                                               ------------  -------------

                                                      (CZK 000's)

Total Liabilities and Equity                     7,351,583      5,369,011
                                               ============  =============

Equity                                           4,286,863      2,374,145
                                               ------------  -------------

    Registered Capital                           1,912,932      1,006,309
                                               ------------  -------------

      Registered Capital                         1,912,932      1,006,309
                                               ------------  -------------

    Capital Contributions                          252,572            169
                                               ------------  -------------

      Share Premium                                226,656              -
      Other Capital Contributions                   25,916            169
                                               ------------  -------------

    Reserve Funds                                  301,203        160,952
                                               ------------  -------------

      Statutory Reserve Fund                       297,977        158,086
      Statutory and Other Reserves                   3,226          2,866
                                               ------------  -------------

    Retained Earnings                            1,645,004      1,067,855
                                               ------------  -------------

      Retained Profits                           1,645,004      1,067,855
                                               ------------  -------------

    Profit (Loss) for the Current Period (+/-)     175,152        138,860
                                               ------------  -------------

Liabilities                                      3,054,226      2,973,985
                                               ------------  -------------

    Provisions                                      37,253         43,228
                                               ------------  -------------

      Tax-Deductible Provisions                          -         43,228
      Provision for Exchange Rate Losses            21,269              -
      Non-deductible Provisions                     15,984              -
                                               ------------  -------------

    Long-Term Liabilities                            3,315              -
                                               ------------  -------------

      Other Long-Term Liabilities                    3,315              -
                                               ------------  -------------

    Short-Term Liabilities                         668,649      1,334,833
                                               ------------  -------------

      Trade Payables                               303,621        307,271
      Liabilities to Shareholders/Owners               468              -
      Payroll Payable and Other Liabilities
        to Employees                                10,187          6,523
      Liabilities for Social Insurance               7,453          6,423
      Tax Liabilities                                2,331          8,152
      Deferred Tax Liability                       294,339        211,061
      Liabilities to Group Undertakings             50,000        795,136
      Other Payables                                   250            267
                                               ------------  -------------

    Bank Loans & Overdrafts                      2,345,009      1,595,924
                                               ------------  -------------

      Long-Term Bank Loans                       1,038,553      1,276,739
      Short-Term Bank Loans                      1,306,456        319,185
                                               ------------  -------------

Other Liabilities                                   10,494         20,881
                                               ------------  -------------

    Accruals and Deferrals                           1,349              -
                                               ------------  -------------

      Accruals                                       1,349              -
                                               ------------  -------------

    Anticipated Liabilities                          9,145         20,881
                                               ------------  -------------


                              UNITED ENERGY, a.s.
                    FINANCIAL STATEMENTS - INCOME STATEMENT


                                                                   12/31/2000     12/31/1999
                                                                   ------------  -------------

                                                                          (CZK 000's)

Sale of Production (A)                                               2,994,559      2,247,940
                                                                   ------------  -------------

    Sales of Own Products and Services                               2,977,359      2,247,192
    Change in Inventory of Finished Goods and Work in Progress           5,630              -
    Own Work Capitalized                                                11,570            748
                                                                   ------------  -------------

Cost of Sales (B)                                                    1,800,475      1,446,426
                                                                   ------------  -------------

    Raw Materials and Consumables                                    1,461,015      1,121,739
    Services                                                           339,460        324,687
                                                                   ------------  -------------

Added Value (A)-(B) (+)                                              1,194,084        801,514
                                                                   ------------  -------------

Staff Costs (-)                                                        246,434        147,837
                                                                   ------------  -------------
    Wages and Salaries                                                 178,630        108,369
    Emoluments of Board Members                                          1,007            180
    Social Security Costs                                               62,894         37,556
    Other Social Costs                                                   3,903          1,732
                                                                   ------------  -------------
Taxes and Charges (-)                                                    3,392          1,197
Depreciation of Fixed Assets (-)                                       361,307        244,136
Sale of Fixed Assets and Raw Materials (+)                              21,273         52,202
Net Book Amount of Fixed Assets and Raw Materials Sold (-)              13,492         43,045
Provisions Written Back to Operating Income (+)                         43,228         38,964
Amounts Written Back to Operating Assets (+)                            10,988            525
Amounts Written Off Operating Assets (-)                                19,229          1,142
Other Operating Income (+)                                                 839            100
Other Operating Charges (-)                                             54,459         65,977
                                                                   ------------  -------------

Operating Result (C)                                                   572,099        389,971
                                                                   ------------  -------------

Income from Sales of Securities and Shares (+)                          45,390              -
Securities and Shares Sold (-)                                          34,200              -
Provisions Written Back to Financial Income (+)                              -            443
Provisions for Financial Liabilities and Charges (-)                    37,253              -
Interest Income (+)                                                     13,498         16,667
Interest Expense (-)                                                   189,997        187,462
Other Financial Income (+)                                              17,299          5,840
Other Financial Expense (-)                                            147,785          1,136
                                                                   ------------  -------------

Result from Financial Transactions (D)                                (333,048)      (165,648)
                                                                   ------------  -------------

Tax on Profit or Loss on Ordinary Activities (E)                        55,505         89,175
                                                                   ------------  -------------
    -current                                                             1,646              -
    -deferred                                                           53,859         89,175
                                                                   ------------  -------------

Profit or Loss on Ordinary Activities After Taxation (C)+(D)-(E) = (F) 183,546        135,148
                                                                   ------------  -------------

Extraordinary Income (+)                                                10,653          4,010
Extraordinary Charges (-)                                               19,047            298
                                                                   ------------  -------------

Profit or Loss on Extraordinary Items After Taxation (G)                (8,394)         3,712
                                                                   ------------  -------------

Net Profit or Loss for the Financial Period (F)+(G)                    175,152        138,860
                                                                   ============  =============

Profit or Loss Before Taxation                                         230,657        228,035
                                                                   ============  =============




                              UNITED ENERGY, a.s.
                                   CASH FLOW


                                                                             12/31/2000     12/31/1999
                                                                             ------------  -------------

                                                                                    (CZK 000's)

Cash and Cash Equivalents at the Beginning of the Year (P)                       205,808         37,753
                                                                             ------------  -------------

Net Profit (Loss) on Ordinary Activities Before Tax (A)                          239,051        224,323
                                                                             ------------  -------------

Adjustments for Non-Cash Movements (B)                                           591,242        282,159
                                                                             ------------  -------------

    Depreciation of Fixed Assets                                                 363,050        244,573
    Change in General Provisions, Accruals and Prepayments                        64,857       (132,591)
    (Profit)/Loss from Disposal of Fixed Assets                                  (13,164)          (618)
    Net Interest Expense                                                         176,499        170,795
                                                                             ------------  -------------

Net Cash Flows from Ordinary Activities (A) + (B) = (C)                          830,293        506,482
                                                                             ------------  -------------

Working Capital Changes: (D)                                                     (38,020)        62,247
                                                                             ------------  -------------

    (Increase)/Decrease in Receivables                                           (49,545)       135,446
    Increase/(Decrease) in Short Term Payables                                    46,275        (59,418)
    (Increase)/Decrease in Inventories                                           (34,750)       (13,781)
                                                                             ------------  -------------

Net Cash Flows from Ordinary Activities Before Tax (C) + (D) = (E)               792,273        568,729

Interest Paid (F)                                                               (189,997)      (187,462)
Interest Received (G)                                                             13,498         16,667
Income Tax on Ordinary Activities Paid (H)                                        (2,476)             -
Cash Movements Relating to Extraordinary Profit/(Loss)
    Including Tax Paid on Extraordinary Income (I)                                (8,394)         3,712
                                                                             ------------  -------------

Net Cash Flows from Ordinary Activities (E) + (F) + (G) + (H) + (I) = (L)        604,904        401,646
                                                                             ------------  -------------

Acquisitions of Fixed Assets                                                    (546,449)      (444,103)
Proceeds from Sale of Fixed Assets                                                42,523            998
Loans to Related Parties                                                         (22,000)             -
                                                                             ------------  -------------

Net Cash Flows From Investing Activities (M)                                    (525,926)      (443,105)
                                                                             ------------  -------------

Change in Long Term and Short Term Liabilities (J)                                 7,264        211,513
Changes in Equity (K)                                                            (41,645)        (1,999)
                                                                             ------------  -------------

    Direct Payments from Reserves                                                 (3,043)        (1,819)
    Dividends Paid                                                               (38,602)          (180)
                                                                             ------------  -------------

Net Cash Flows from Financing Activities (J) + (K) = (N)                         (34,381)       209,514
                                                                             ------------  -------------

Net Increase (Decrease) in Cash and Cash Equivalents (L) + (M) + (N) = (O)        44,597        168,055
                                                                             ------------  -------------

Cash and Cash Equivalents at the End of the Year (O) + (P)                       250,405        205,808
                                                                             ============  =============