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ROMCARBON S.A. AND SUBSIDIARIES
AUDITED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
Prepared in accordance with Ministry of Public Finance Order no. 2844/2016
for the approval of Accounting regulations conforming with International Financial
Reporting Standards as adopted by the European Union, with subsequent
amendments
Consolidated Financial Statements
CONTENTS
PAGE
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND OTHER COMPREHENSIVE INCOME
2
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
3 - 4
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
5 - 6
CONSOLIDATED STATEMENT OF CASH FLOWS
7 - 8
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
9 - 55
ADMINISTRATORS’ REPORT
1 - 20
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
The accompanying notes are integral part of these consolidated financial statements.
This is a free translation from the original Romanian version.
1
STATEMENT OF THE COMPREHENSIVE INCOME
Note
Year ended
December 31,
2022
Year ended
December 31,
2021
RON
RON
3
381,985,677
341,319,435
4
4,287,141
4,291,042
11,496,807
4,710,209
5
(263,732,961)
(235,396,370)
6
(78,261,063)
(73,746,328)
7
(14,538,409)
(14,897,799)
8
(30,646,145)
(21,382,633)
9
2,276,748
1,936,380
12,867,795
6,833,936
10
290,047
85,170
11
(2,894,705)
(3,054,857)
44,525,895
0
2,402,565
(1,144,985)
57,191,597
2,719,264
12
(1,066,842)
(928,652)
56,124,755
1,790,612
0
0
56,124,755
1,790,612
56,119,419
1,793,730
5,336
(3,118)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND OTHER
COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
The accompanying notes are integral part of these consolidated financial statements.
This is a free translation from the original Romanian version.
2
Note
Year ended
December 31,
2022
Year ended
December 31,
2021
RON
RON
56,124,755
1,790,612
Other comprehensive income, before tax, gains
(losses) on revaluation
745,264
0
Total OCI that will not be reclassified to profit
or loss, before tax
745,264
0
Gains (losses) on exchange differences on
translation, before tax
0
115
Total OCI that will be reclassified to profit or
loss, before tax
0
115
Total other comprehensive income, before tax
745,264
115
12
273,332
21,017
1,018,596
21,132
Total comprehensive income
57,143,351
1,811,744
57,138,015
1,814,862
5,336
(3,118)
The consolidated financial statements were approved by the Board of Directors and were authorized for
issuance on March 27, 2023.
PREPARED BY,
HUANG LIANG NENG,
VIORICA ZAINESCU,
CARMEN MANAILA,
Chairman of the Board
And General Manager
Financial Manager
Deputy General Manager for
Administrative Operations
For signatures, please refer to the original Romanian version.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
The accompanying notes are integral part of these consolidated financial statements.
This is a free translation from the original Romanian version.
3
STATEMENT OF THE FINANCIAL POSITION
Not
e
December
31,
2022
December
31,
2021
RON
RON
ASSETS
Non-current assets
Property, plant and equipment
13
123,886,765
132,497,914
Investment property
14
9,883,738
10,894,586
Goodwill
15
143,461
143,461
Intangible assets other than goodwill
16
329,100
298,466
Investments accounted for using equity method
17
0
23,324,617
Investments in subsidiaries, joint ventures and associates
297,974
196,974
Other financial non-current assets
1,898
0
Total non-current assets
134,542,936
167,356,018
Current assets
Current inventories
18
65,899,751
54,803,659
Trade and other current receivables
19
60,979,526
53,054,234
Other current financial assets
20
263,414
617,902
Other current non-financial assets
21
4,796,687
4,621,551
Cash and cash equivalents
22
73,869,061
17,596,893
Total current assets other than non-current assets or
disposal groups classified as held for sale or as held for
distribution to owners
205,808,439
130,694,239
Non-current assets or disposal groups classified as held for sale or
as held for distribution to owners
23
3,760,155
3,760,155
Total current assets
209,568,594
134,454,394
TOTAL ASSETS
344,111,530
301,810,412
EQUITY AND LIABILITIES
Capital and reserves
Issued capital
24
26,412,210
26,412,210
Retained earnings
25
77,247,165
49,182,732
Share premium
2,182,283
2,182,283
Other reserves
26
62,917,677
60,227,360
Total equity attributable
to owners of parent
168,759,335
138,004,585
Non-controlling interests
27
920,916
915,581
Total equity
169,680,251
138,920,166
Non-current liabilities
Other non-current provisions
1,429,017
659,623
Total non-current provisions
1,429,017
659,623
Deferred tax liabilities
7,780,659
8,012,574
Other non-current financial liabilities
28
4,044,764
7,623,547
Other non-current non-financial liabilities
30
13,384,594
16,015,575
Total non-current liabilities
26,639,034
32,311,319
Current liabilities
Trade and other current payables
29
63,161,506
55,224,665
Other current financial liabilities
28
74,737,029
67,635,179
Other current non-financial liabilities
30
9,893,710
7,719,083
Total current liabilities other than liabilities included in
disposal groups classified as held for sale
147,792,245
130,578,927
Liabilities included in disposal groups classified as held for sale
0
0
Total current liabilities
147,792,245
130,578,927
Total liabilities
174,431,279
162,890,246
Total equity and liabilities
344,111,530
301,810,412
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
The accompanying notes are integral part of these consolidated financial statements.
This is a free translation from the original Romanian version.
4
The consolidated financial statements were approved by the Board of Directors and were authorized for
issuance on March 27, 2023.
PREPARED BY,
HUANG LIANG NENG,
VIORICA ZAINESCU,
CARMEN MANAILA,
Chairman of the Board
And General Manager
Financial Manager
Deputy General Manager for
Administrative Operations
For signatures, please refer to the original Romanian version.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITYFOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
The accompanying notes are integral part of these consolidated financial statements.
This is a free translation from the original Romanian version.
5
2022
Issued
capital
Share
premium
Revaluation
surplus
Legal &
Other
reserves
Reserve of
exchange
differences
on
translation
Retained
earnings
Equity
attributable
to owners of
parent
Non-
controlling
interests
Equity
Equity at beginning of period
26,412,210
2,182,283
38,652,619
22,636,604
(1,061,863)
49,182,732
138,004,585
915,581
138,920,166
Profit (loss)
0
0
0
0
0
56,119,419
56,119,419
5,336
56,124,755
Other comprehensive income
0
0
1,018,596
0
0
0
1,018,596
0
1,018,596
Total comprehensive income
0
0
1,018,596
0
0
56,119,419
57,138,015
5,336
57,143,351
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as
distributions to owners
0
0
0
0
0
(26,412,210)
(26,412,210)
0
(26,412,210)
Increase (decrease) through other
changes, equity
0
0
(470,016)
2,141,737
0
(1,642,776)
28,945
(1)
28,944
Equity at end of period
26,412,210
2,182,283
39,201,199
24,778,341
(1,061,863)
77,247,165
168,759,335
920,916
169,680,251
The resolution of the General Meeting of Shareholders of 08.06.2022 approved the dividend allocation in amount of Lei 2,641,221. The full amount was
transferred to the Central Depositary to pay dividends owed to shareholders.
The resolution of the General Meeting of Shareholders of 22.11.2022 approved the dividend allocation in amount of Lei 23,770,989. In December 2022 the
amount of Lei 7,775,757 was transferred to the Central Depositary to partial pay dividends owed to shareholders. The remaining amount was transferred to the
Central Depositary at the beginning of January 2023.
In 2022 the dividend per share was in amount of 0.10 lei/share (2021: 0.01 lei /share).
ST The consolidated financial statements were approved by the Board of Directors and were authorized for issuance on March 27, 2023.
PREPARED BY,
HUANG LIANG NENG,
VIORICA ZAINESCU,
CARMEN MANAILA,
Chairman of the Board And
General Manager
Financial Manager
Deputy General Manager for Administrative
Operations
STATEMENT OF THE CHANGES IN SHAREHOLDERS’ EQUITY
For signatures, please refer to the original Romanian version.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITYFOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
The accompanying notes are integral part of these consolidated financial statements.
This is a free translation from the original Romanian version.
6
2021
Issued
capital
Share
premium
Revaluation
surplus
Legal &
Other
reserves
Reserve of
exchange
differences
on
translation
Retained
earnings
Equity
attributable
to owners of
parent
Non-
controlling
interests
Equity
Equity at beginning of period
26,412,210
2,182,283
39,577,007
22,454,150
(1,062,080)
49,238,098
138,801,668
909,941
139,711,609
Profit (loss)
0
0
0
0
0
1,793,730
1,793,730
(3,118)
1,790,612
Other comprehensive income
0
0
21,017
0
115
0
21,132
0
21,132
Total comprehensive income
0
0
21,017
0
115
1,793,730
1,814,862
(3,118)
1,811,744
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as
distributions to owners
0
0
0
0
0
(2,641,221)
(2,641,221)
0
(2,641,221)
Increase (decrease) through other
changes, equity
0
0
(945,405)
182,454
102
792,125
29,276
8,758
38,034
Equity at end of period
26,412,210
2,182,283
38,652,619
22,636,604
(1,061,863)
49,182,732
138,004,585
915,581
138,920,166
The resolution of the General Meeting of Shareholders of 28.04.2021 approved the dividend allocation in amount of Lei 2,641,221. The full amount was
transferred to the Central Depositary to pay dividends owed to shareholders.
The consolidated financial statements were approved by the Board of Directors and were authorized for issuance on March 27, 2023.
PREPARED BY,
HUANG LIANG NENG,
VIORICA ZAINESCU,
CARMEN MANAILA,
Chairman of the Board And
General Manager
Financial Manager
Deputy General Manager for Administrative
Operations
For signatures, please refer to the original Romanian version.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
The accompanying notes are integral part of these consolidated financial statements.
This is a free translation from the original Romanian version.
7
SITUATIA FLUXURILOR DE NUMERAR
31-dec-22
31-dec-21
Cash flows from (used in) operating activities
Profit (loss)
56,124,755
1,790,612
Adjustments to reconcile profit (loss)
Adjustments for income tax expense
1,066,842
928,652
Finance expenses recognized in profit
2,810,679
2,009,061
(Gain) / Loss on sale or disposal of fixed assets
(915,742)
3,462
(Gain) / Loss on sale or disposal of investment property
(1,191,307)
(411,233)
(Gain) / Loss on sale or disposal of financial investments
(44,525,895)
0
Production of the imobilization
(1,880,995)
(1,207,153)
Interest income
(218,712)
(85,170)
Loss on impairment of stocks
96,975
280,404
Loss on impairment of trade receivables
54,270
80,859
Amortization / Depreciation of non-current assets
14,538,409
14,897,799
Net (gain) / loss on foreign exchange
(71,335)
1,037,861
(Gain) / Loss on revaluation of fixed assets
1,370,104
0
(Gain) / Loss on revaluation of investment property
(170,996)
(1,377,918)
(Gain) / Loss on share of profit of associates
(2,402,565)
1,144,985
Increase / Decrease in provisions
769,394
213,585
Increases /(decreases) in subsidies
(3,692,905)
(3,745,692)
Movement in working capital
(Increase) / Decrease in trade and other receivables
(8,802,444)
(16,895,040)
(Increase) / Decrease in inventories
(11,193,067)
(15,816,276)
(Increase) / Decrease in other assets
177,455
(3,722,015)
Increase / (Decrease) in trade and other payables
7,936,850
21,849,670
Increase / (Decrease) in other payables
(12,762,862)
27,434
Total adjustments to reconcile profit (loss)
(59,007,847)
(786,725)
Interest paid
(2,364,092)
(1,657,222)
Income taxes refund (paid)
(1,044,691)
(773,611)
Bank commissions paid
(446,587)
(351,839)
Net cash flows from (used in) operating activities
(6,738,462)
(1,778,785)
Cash flows from (used in) investing activities
Payments for property, plant and equipment
(4,346,068)
(2,328,207)
Payments for assets held for sale
0
(3,164,051)
Payments for intangible assets
(154,390)
(124,275)
Proceeds from disposal of property, plant and equipment
915,736
492,998
Proceeds from subsidies
912,179
0
Proceeds from selling the financial investments
70,253,078
0
Proceeds from sale of investment property
2,373,151
2,862,616
Interest received
218,702
85,170
Net cash flows from (used in) investing activities
70,172,388
(2,175,749)
Cash flows from (used in) financing activities
Proceeds from borrowing
14,609,909
16,482,163
Repayment of borrowing
(11,104,805)
(12,984,408)
Lease payments
0
(9,739)
Dividends paid
(10,666,862)
(2,641,221)
Net cash flows from (used in) financing activities
(7,161,758)
846,795
Net increase (decrease) in cash and cash equivalents before
effect of exchange rate changes
56,272,168
(3,107,739)
Effect of exchange rate changes on cash and cash equivalents
0
0
Net increase (decrease) in cash and cash equivalents
56,272,168
(3,107,739)
Cash and cash equivalents at beginning of period
17,596,893
20,704,632
Cash and cash equivalents at end of period
73,869,061
17,596,893
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
The accompanying notes are integral part of these consolidated financial statements.
This is a free translation from the original Romanian version.
8
The consolidated financial statements were approved by the Board of Directors and were authorized for
issuance on March 27, 2023.
PREPARED BY,
HUANG LIANG NENG,
VIORICA ZAINESCU,
CARMEN MANAILA,
Chairman of the Board
And General Manager
Financial Manager
Deputy General Manager for
Administrative Operations
For signatures, please refer to the original Romanian version.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
9
NOTE SITUATII CONSOLIDATE
1. GENERAL INFORMATION
ROMCARBON S.A. (the “Parent”) has its main office in Romania and the address in Buzău, Str. Transilvaniei,
nr. 132 and is organised as a joint-stock company with the following identification details: registered with
the Registry of Commerce under no. J10/83/1991, Fiscal Code RO1158050. Country of incorporation is
Romania. As at December 31, 2022 the Parent’s shares were traded on the BSE and its main shareholders
were Living Plastic Industry S.R.L., Joyful River Limited Loc. Nicosia CYP, Toderiță Ștefan Alexandru. The
reporting entity of the Group is Romcarbon SA.
The Parent’s main field of activity is the manufacture of plastic packaging, NACE code 2222.
In the reporting period it wasn’t changed the name of the parent company nor the field of activity.
As at December 31, 2022 the company was holding directly or through other subsidiaries, participating
interest in the following entities, forming ROMCARBON GROUP:
RC ENERGO INSTALL S.R.L. is a company established in 2005, fully owned by S.C. Romcarbon S.A. The
company’s main office is located in Buzău, Str. Transilvaniei, nr. 132. The company was established by
outsourcing the maintenance and repair of heating, water installations, sewage and substations; the main
object of activity is Plumbing, heat and air conditioning installation (NACE code 4322).
LIVINGJUMBO INDUSTRY S.A. is a company established in 2002, where S.C. Romcarbon S.A. holds 99.86%
of the shares and the remaining shares are held by Romanian legal persons. The company’s main office is
located in Buzău, Str. Transilvaniei, nr. 132. The company’s main object of activity is Manufacture of plastic
packing goods (NACE code 2222).
INFO TECH SOLUTIONS S.R.L. is a company established in 2005, where S.C. Romcarbon S.A. holds 99.50%
of the shares and the remaining shares are held by natural persons. The company’s main office is located
in Buzău, Str. Transilvaniei, nr. 132. The company was established by outsourcing the IT services and its
main object of activity is Other information technology and computer service activities (NACE code 6209).
YENKI S.R.L. is a company established in 2007, where S.C. Romcarbon S.A. holds 33.34% of the shares
and the remaining shares are held by Romanian legal and natural persons. The company’s main office is
located at Soseaua Nordului, DN2, Buzău. The company’s main object of activity is Operation of sports
facilities (NACE code 9311).
GRINFILD LLC UKRAINE is a company established in 2007, where SC Romcarbon SA holds 62.62% of the
shares and the remaining shares are held by foreign legal persons. The company’s main office is located in
Ukraine, Odessa region, Krijianivka locality, Str. Mikolayevska, Bl. 2. The company’s main object of activity
is wholesale. The company ceased its activity in 2012.
GRINRUH LLC UKRAINE is a company established in 2007, where SC Romcarbon SA holds 62.62%. The
company’s main office is located in Ukraine, Odessa region, Krijianivka locality, Str. Mikolayevska, Bl. 2.
The company’s main object of activity is construction and wholesale. The company ceased its activity in
2012.
ECO PACK MANAGEMENT SA is a company established in 2010, where SC Romcarbon SA directly holds
25.36% and 74.62% indirectly. The remaining shares are held by Romanian legal persons. The company’s
main office is located in Buzau, 132 Transilvaniei street, Granules Hall, room no.7, 2nd floor. The company’s
main object of activity is Other business support service activities n.e.c. (NACE code 8299). Starting with
10.12.2021, the company suspended his activity for a period of 3 years.
RECYPLAT LTD is a company established in 2011, wholly owned by SC Romcarbon SA. The company’s main
office is located in Akropoleos, 59-61, 3
rd
floor, Nicosia, Cyprus.
The company’s main object of activity is the Conduct of activities and business of consultants, experts in
all scientific fields, financial, administrative or otherwise, in relation to the setting up, operation,
development and improvement of any business, industry, company, partnership or other organization.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
10
1. GENERAL INFORMATION (continued)
Name
Field of business
Place of
business
Interest
held
31-dec-22
31-dec-21
%
RON
RON
RECYPLAT LTD CIPRU
Activities and business of consultants, experts in all scientific
fields, financial, administrative or otherwise
Nicosia
100.00%
20,261,120
20,261,120
RC ENERGO INSTALL SRL
Plumbing, heat and air conditioning installation (NACE code
4322)
Buzau
100.00%
15,112
15,112
INFO TECH SOLUTIONS SRL
Other information technology and computer service activities
(NACE code 6209)
Buzau
99.00%
1,990
1,980
LIVINGJUMBO INDUSTRY SA
Manufacture of plastic packing goods (NACE code 2222)
Buzau
99.86%
6,477,632
6,477,632
GRINFILD LTD
Activity is wholesale
Odessa
62.62%
2,687,755
2,687,755
GRINRUH LTD
Activity is construction and wholesale
Odessa
62.62%
4,426,809
4,426,809
ECO PACK MANAGEMENT SA
Other business support service activities n.e.c. (NACE code
8299)
Bucurest
99.88%
2,619,254
2,619,254
YENKI SRL
Operation of sports facilities (NACE code 9311)
Buzau
33.34%
100,000
100,000
KANG YANG BIOTECHNOLOGY CO.
LTD
Manufacture of products beneficial to human health
Taiwan
4.81%
203,963
203,963
Registrul Miorita SA
Other financial service activities, except insurance and
pension funding n.e.c..(NACE code 6499)
Cluj
3.79%
5,000
5,000
Asociatia “Viitorul incepe azi”
Buzau
14.29%
1,000
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
11
1. GENERAL INFORMATION (continued)
Indirect holdings through Recyplat LTD
Name
Field of business
Place of
business
Interest
held
ROMGREEN UNIVERSAL LTD
1)
Activities and business of consultants, experts in all scientific fields, financial,
administrative or otherwise
Nicosia
17.59%
GREENTECH SA
2)
Recovery of sorted materials (NACE code 3832)
Buzau
17.59%
GREENFIBER INTERNATIONAL SA
2)
Manufacture of man-made fibres (NACE code 2060)
Buzau
17.59%
GREENWEEE INTERNATIONAL SA
Dismantling of wrecks for materials recovery (NACE code 3831)
Buzau
17.59%
GREENGLASS RECYCLING SA
Recovery of sorted materials (NACE code 3832)
Ilfov
12.31%
GREEN RESOURCES MANAGEMENT SA
Other business support service activities n.e.c. (NACE code 8299)
Bucuresti
11.73%
GREENTECH BALTIC UAB LITUANIA
Commercial, economic, financial and industrial activity
Lituania
17.59%
GREENTECH SLOVAKIA S.R.O.
Collection of non-hazardous waste (NACE code 3811)
Slovacia
14.07%
ELTEX RECYCLING SRL
Treatment and disposal of non-hazardous waste (NACE code 3821)
Oradea
17.59%
ASOCIATIA ECOLOGICA GREENLIFE (Non-
Profit Organization)
The association’s purpose is to represent, promote and support the employer and
professional interests of its members in the relationship with public authorities
Buzau
17.59%
CIRCULAR VENTURES SA
Other business support service activities n.e.c. (NACE code 8299)
Bucuresti
17.59%
SENEX SIGAD S.R.L.
Custom software creation activities (customer-oriented software)) (NACE CODE
6201)
Bucuresti
12.35%
1)
On 30 December 2022 Recyplat LTD sold the stake of 17.59% held in Romgreen Universal LTD (Green-Group), for the price of EUR 14,200,000. Cost of
Recyplat investment in Romgreen Universal LTD was at the date of sale EUR 4,631,525.
2)
In December 2022, the merger process between GREENFIBER INTERNATIONAL SA, the absorbing company, and GREENTECH SA, the absorbed company was
completed. The new entity operates under the name of GREENTECH SA.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
12
2. MAIN ACCOUNTING POLICY
Statement of complience
The consolidated financial statements were prepared in accordance with the International Financial
Reporting Standards as adopted by the European Union (“IFRS”) effective on the Company’s reporting
date, i.e. December 31, 2022 and in accordance with the provisions of Ministry of Public Finance Order
no. 2844/2016 approving the Accounting regulations compliant with International Financial Reporting
Standards, applicable to companies whose securities are admitted to trading on a regulated market, with
subsequent amendments and clarifications. Such provisions are consistent with the requirements of the
International Financial Reporting Standards adopted by the European Union.
Bases of preparation
The consolidated financial statements were prepared on a going concern basis, at historical cost, adjusted
to hyperinflation as at December 31, 2003 for fixed assets, share capital and reserves.
The financial statements are prepared based on the statutory accounts kept in accordance with Romanian
accounting principles, adjusted for compliance with IFRS
Going concern
These financial statements have been prepared under the going concern basis, which implies that the
Group will continue its activity also in the foreseeable future.
To assess the applicability of this presumption, management reviews forecasts of future cash inflows. On
December 31, 2022, the Group's current assets exceed current liabilities by 61,776,349 RON. In 2022,
the Group recorded a profit of 56,124,755 RON (2021: 1,790,612 RON) and a cash flows of 56,272,168
RON (2021: -3,107,739 RON).
Based on the budgets of the companies in the Group proposed for the year 2023 and the positive growth
trend recorded in recent years, the management believes that the Group will be able to continue its
activity in the foreseeable future and, therefore, the application of the principle of going concern in the
preparation of financial statements is justified .
Bases of consolidation
The consolidated financial statements include the financial statements of the Parent, of its subsidiaries
and joint ventures. Control is obtained when the Parent has the power to govern the financing and
operating policies of an entity to acquire benefits from the latter’s activities.
In view of the Commission Delegated Regulation (EU) 2018/815 (hereinafter referred to as the ESEF
RTS) which specifies the single electronic reporting format (ESEF) in which all financial statements are
prepared, the Group considered it necessary to align the presentation of the overall result with the
financial position. compliance with ESEF taxonomy.
The profit of the subsidiary acquired during the year is included in the consolidated income statement as
at the acquisition date.
Where required, the subsidiary’s financial statements are corrected to adjust its accounting policies in
accordance with the policies used by the Parent.
All group transactions, balances, income and expenses are completely eliminated from the consolidation.
Non-controlling interests in net assets (excluding goodwill) of the subsidiary are disclosed separately from
the Group’s equity. Non-controlling interests consist in the sum of interests as at the date of the original
business combination (see below) and the non-controlling share in changes in equity starting from the
combination date. Losses corresponding to the minority, which exceed the non-controlling interest held in
the subsidiary’s equity are allocated as compared to the Group’s interests, except if the minority holds an
obligation and can make additional investments to cover losses.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2021
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
13
This is a free translation from the original Romanian version.
2. MAIN ACCOUNTING POLICY (continued)
Initial application of new amendments to the existing standards effective for the current
reporting period
The following new standards, amendments to the existing standards and new interpretation issued by the
International Accounting Standards Board (IASB) and adopted by the EU are effective for the current
reporting period:
• Amendments to IFRS 9 “Financial Instruments”, IAS 39 “Financial Instruments: Recognition
and Measurement”, IFRS 7 “Financial Instruments: Disclosures”, IFRS 4 “Insurance
Contracts” and IFRS 16 “Leases” - Interest Rate Benchmark Reform — Phase 2 adopted by the EU
on 13 January 2021 (effective for annual periods beginning on or after 1 January 2021),
• Amendments to IFRS 16 “Leases” - Covid-19-Related Rent Concessions beyond 30 June 2021
adopted by the EU on 30 August 2021 (effective from 1 April 2021 for financial years starting, at the
latest, on or after 1 January 2021),
• Amendments to IFRS 4 Insurance Contracts “Extension of the Temporary Exemption from
Applying IFRS 9” adopted by the EU on 16 December 2020 (the expiry date for the temporary
exemption from IFRS 9 was extended from 1 January 2021 to annual periods beginning on or after 1
January 2023).
The adoption of amendments to the existing standards has not led to any material changes in the
Group’s financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
14
2. MAIN ACCOUNTING POLICY (continued)
Information on the initial application of new regulations
IAS 8.28: When the initial application of an IFRS standard has an effect on the current period or any
other prior period, it would have such an effect except that it is impossible to determine the amount
of the adjustment, or it could have an effect on future periods, the entity must present:
(a) the title of the IFRS standard;
(b) where applicable, that the change in accounting policy is made in accordance with its transitional
provisions;
(c) the nature of the accounting policy change;
(d) where applicable, a description of the transitional provisions;
(e) where appropriate, transitional provisions that could have an effect on future periods;
(f) for the current period and for each prior period presented, to the extent possible, the amount of
the adjustment:
(i) for each affected line element of the financial statement; and
(ii) if IAS 33 Earnings per share applies to the entity, for basic and diluted earnings per share;
(g) the amount of the adjustment relating to periods prior to those presented, to the extent possible;
and
(h) if the retroactive application required by paragraph 19 letter (a) or (b) is impossible for a
particular earlier period, or for periods earlier than those shown, the circumstances which led to the
existence of that condition and a description of how and a the moment from which the change in
accounting policy was applied.
Initial application of new amendments to existing standards in force for the current
reporting period
The following amendments to existing standards issued by the International Accounting Standards
Board (IASB) and adopted by the EU are in effect for the current reporting period:
• Amendments to IAS 16 "Property, plant and equipment" - Receipts before expected use adopted by
the EU on June 28, 2021 (applicable for annual periods beginning on or after January 1, 2022),
• Amendments to IAS 37 "Provisions, contingent liabilities and contingent assets" - Onerous contracts
— Cost of contract execution adopted by the EU on June 28, 2021 (applicable for annual periods
beginning on or after January 1, 2022),
• Amendments to IFRS 3 "Business Combinations" – Definition of the conceptual framework with
amendments to IFRS 3 adopted by the EU on June 28, 2021 (applicable for annual periods beginning
on or after January 1, 2022),
• Amendments to various standards due to "IFRS Improvements (2018-2020 cycle)" resulting from
the annual project to improve IFRS (IFRS 1, IFRS 9, IFRS 16 and IAS 41) with the main aim of
removing inconsistencies and clarifying certain wordings – adopted by the EU on 28 June 2021
(amendments to IFRS 1, IFRS 9 and IAS 41 are applicable for annual periods beginning on or after 1
January 2022. The amendment to IFRS 16 refers only to an illustrative example, so it is not
mentioned an effective date).
The adoption of these amendments to the existing standards did not lead to significant changes in the
Group's financial statements.
Information on issued standards that will come into force at a later date, which are not
applied by the Group in its financial statements
IAS 8.30: When an entity has not applied a new standard that has been issued but is not yet in force,
the entity shall disclose:
(c) this fact; and
(d) information known or that can be reasonably estimated relevant to the assessment of the possible
impact that the application of the new standard will have on the entity's financial statements during
the period of initial application.
IAS 8.31: In accordance with paragraph 30, an entity considers presenting:
(f) the title of the new IFRS standard;
(g) the nature of the change or imminent changes in accounting policy;
(h) the date until which the application of the standard is foreseen;
(i) the date on which the entity plans to apply the IFRS standard for the first time; and
(j) either:
(iii) a discussion of the impact that the initial application of the standard is expected to have on the
entity's financial statements; or
(iv) if that impact is not known or cannot reasonably be estimated, a statement to that effect.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
15
2. MAIN ACCOUNTING POLICY (continued)
Information on issued standards that will come into force at a later date, which are not
applied by the Group in its financial statements (continued)
Standards and amendments to existing standards issued by the IASB and adopted by the
EU, but which have not yet entered into force
At the date of approval of these financial statements, the following amendments to existing standards
have been issued by the IASB and adopted by the EU, but are not yet in force:
➢ IFRS 17 "Insurance contracts" including amendments to IFRS 17 issued by the IASB on June
25, 2020 - adopted by the EU on November 19, 2021 (applicable for annual periods beginning on
or after January 1, 2023),
➢ Amendments to IFRS 17 "Insurance contracts" – Initial application of IFRS 17 and IFRS 9 –
Comparative information, adopted by the EU on 8 September 2022 (applicable for annual periods
beginning on or after 1 January 2023),
➢ Amendments to IAS 1 "Presentation of financial statements" - Presentation of accounting
policies adopted by the EU on March 2, 2022 (applicable for annual periods beginning on or after
January 1, 2023),
➢ Amendments to IAS 8 “Accounting policies, changes in accounting estimates and errors” –
Definition of accounting estimates adopted by the EU on March 2, 2022 (applicable for annual
periods beginning on or after January 1, 2023).
➢ Amendments to IAS 12 "Income tax" – Deferred tax related to receivables and payables
arising from a single transaction adopted by the EU on 11 August 2022 (applicable for annual
periods beginning on or after 1 January 2023).
New standards and amendments to existing standards issued by the IASB but not yet
adopted by the EU
Currently, IFRS as adopted by the EU do not differ significantly from the regulations adopted by the
International Accounting Standards Board (IASB), except for the following new standards,
amendments to existing standards and new interpretations, which have not been approved for use in
EU on 31.12.2022 (the effective dates mentioned below are for the IFRS standards issued by the
IASB):
➢ Amendments to IAS 1 "Presentation of financial statements" – Classification of liabilities
into short-term liabilities and long-term liabilities (applicable for annual periods beginning on or
after January 1, 2023),
➢ Amendments to IFRS 16 "Leases" – Lease liabilities in a sale and leaseback transaction
(applicable for annual periods beginning on or after 1 January 2024),
➢ IFRS 14 "Deferral accounts related to regulated activities" (applicable for annual periods
beginning on or after January 1, 2016) – The European Commission decided not to issue the
approval process for this interim standard and wait for the final standard,
➢ Amendments to IFRS 10 "Consolidated financial statements" and IAS 28 "Investments in
associated entities and joint ventures" - Sale of or contribution of assets between an investor and
its associated entities or joint ventures and subsequent amendments (effective date has been
postponed indefinitely, until the research project on the equivalence method is completed).
The Group anticipates that the adoption of these new standards and amendments to existing standards
will not have a material impact on the Group's financial statements during the period of initial
application.
Hedge accounting for a portfolio of financial assets and liabilities whose principles have not been
adopted by the EU remains unregulated.
According to the Group's estimates, the use of hedge accounting for a portfolio of financial assets and
liabilities according to IAS 39: "Financial instruments: recognition and measurement" would not
significantly affect the financial statements, if applied at the balance sheet date.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
16
2. MAIN ACCOUNTING POLICY (continued)
Information on issued standards that will come into force at a later date, which are not
applied by the Group in its financial statements (continued)
Additional information on specific standards, amendments to existing standards and
interpretations that may be used when appropriate:
➢ IFRS 14 "Deferral accounts related to regulated activities" issued by the IASB on January 30,
2014. This standard aims to allow entities that adopt IFRS for the first time, and which currently
recognize deferred accounts related to regulated activities according to generally accepted accounting
policies previous, to continue to do so upon transition to IFRS.
➢ IFRS 17 "Insurance contracts" issued by the IASB on 18 May 2017. The new standard states that
insurance obligations must be valued at a current realizable value and provides a more uniform
valuation and presentation approach for all insurance contracts. These requirements are intended to
achieve consistent, principles-based accounting of insurance contracts. IFRS 17 prevails over IFRS 4
"Insurance contracts" and related interpretations when applied. The amendments to IFRS 17 Insurance
Contracts issued by the IASB on 25 June 2020 postpone the date of initial application of IFRS 17 by
two years for annual periods beginning on or after 1 January 2023. In addition, the amendments
issued on 25 June 2020 introduce simplifications and clarifications to certain requirements in the
standard and provide additional facilities to the initial application of IFRS 17.
➢ Amendments to IFRS 3 “Business Combinations” – References to the Conceptual Framework with
amendments to IFRS 3, issued by the IASB on 14 May 2020. The amendments: (a) update IFRS 3 to
refer to the 2018 Conceptual Framework instead of The 1989 framework; (b) adds an additional
requirement to IFRS 3 that, for transactions and other events that are subject to IAS 37 or IFRIC 21,
an acquirer shall apply IAS 37 or IFRIC 21 (and not the Conceptual Framework) to identify the
liabilities it - assumed in a business combination; and (c) add an explicit statement to IFRS 3 that an
acquirer shall not recognize contingent assets acquired in a business combination.
➢ Amendments to IFRS 4 "Insurance contracts" – Extension of the temporary exemption from the
application of IFRS 9, issued by the IASB on 25 June 2020. The amendments change the fixed expiry
date of the temporary exemption from IFRS 4 Insurance contracts from the application of IFRS 9
Financial instruments , so that entities apply IFRS 9 for annual periods beginning on or after 1 January
2023.
➢ Amendments to IFRS 9 "Financial instruments", IAS 39 "Financial instruments: recognition
and measurement", IFRS 7 "Financial instruments: disclosures", IFRS 4 "Insurance
contracts" and IFRS 16 "Leasing contracts" – Reform of the index interest rate benchmark –
Phase Two, issued by the IASB on 27 August 2020. The changes relate to changes to financial assets,
financial liabilities and lease liabilities, certain hedge accounting requirements and disclosure
requirements applying IFRS 7 to accompany the amendments on changes and hedge accounting:
a) Changes in financial assets, financial liabilities and lease liabilities - the IASB introduces a
practical advantage for the changes that the reform implies (changes that come as a direct
consequence of the IBOR reform and operated on an economically equivalent basis). These changes
are accounted for by updating the effective interest rate. All other changes are accounting applying
the current requirements of IFRS. A similar practical advantage is proposed for lessee accounting
applying IFRS 16.
b) Hedge accounting requirements – according to the amendments, hedge accounting is not
discontinued only as a result of the IBOR reform. Hedging relationships (and related documentation)
must be amended to reflect changes to the hedged item, hedging instrument and hedged risk.
Modified hedging relationships must meet all qualifying criteria for the application of hedge accounting,
including efficiency requirements.
c) Disclosures – for users to understand the nature and scope of the risks arising from the IBOR
reform to which the entity is exposed, how the entity manages such risks, the entity's progress in
moving from IBOR indices to other reference rates, such as and how the entity manages this transition,
the amendments provide that the entity must disclose information on:
- how the transition from benchmarks based on interest rates to other benchmarks is managed, the
progress made at the reporting date and the risks arising from the transition;
- the quantitative information on non-derivative financial assets, non-derivative financial liabilities
and derivatives that continue to use interest rate benchmarks subject to reform, broken down by
significant interest rate benchmarks;
- to the extent that the IBOR reform has determined changes in the risk management strategy
implemented by the entity, a description of these changes and how the entity manages these risks.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
17
2. MAIN ACCOUNTING POLICY (continued)
Information on issued standards that will come into force at a later date, which are not
applied by the Group in its financial statements (continued)
Additional information on specific standards, amendments to existing standards and
interpretations that may be used when appropriate: (continued)
d) The IASB also amended IFRS 4 in the sense that insurers applying the temporary exemption
from IFRS 9 should apply the amendments in accounting for the changes directly imposed by the
IBOR reform.
➢ Amendments to IFRS 10 "Consolidated financial statements" and IAS 28 "Investments in
associates and joint ventures" - Sale of or contribution of assets between an investor and its associates
or joint ventures, issued by the IASB on September 11, 2014 (on 17 December 2015, the IASB
postponed the effective date indefinitely). The amendments resolve the contradiction between the
requirements of IAS 28 and IFRS 10 and clarify that in a transaction involving an associate or joint
venture, gains or losses are recognized when the assets sold or contributed represent an enterprise.
➢ Amendments to IFRS 16 “Leases” – Rent concessions as a result of Covid-19, issued by the IASB on
28 May 2020. The amendments exempt lessees from considering each lease when determining whether
rent concessions that arise as a direct effect of the covid-19 pandemic constitute lease modifications
and allow lessees to account for such rent concessions as if they did not constitute lease modifications.
Applies to covid-19 rent concessions that reduce lease payments due on or before June 30, 2021.
➢ Amendments to IFRS 16 "Leases" - Rent concessions as a result of Covid-19 after 30 June 2021
issued by the IASB on 31 March 2021. The amendments extend by one year the period of application of
the practical advantage in IFRS 16. The relief was extended by one year to cover rent concessions that
only reduce lease payments due on or before June 30, 2022.
➢ Amendments to IFRS 17 “Insurance contracts” – Initial application of IFRS 17 and IFRS 9 –
Comparative information issued by the IASB on 9 December 2021. It is a narrow-scope amendment to
the transitional requirements of IFRS 17 for entities applying for the first time IFRS 17 and IFRS 9
simultaneously.
➢ Amendments to IAS 1 "Presentation of financial statements" - Classification of liabilities into
short-term liabilities and long-term liabilities, issued by the IASB on January 23, 2020. The
amendments provide a more general approach to the classification of liabilities provided by IAS 1
starting from contractual agreements existing at the reporting date. The amendments to IAS 1 issued
by the IASB on 15 July 2020 postpone the effective date by one year for annual periods beginning on or
after 1 January 2023.
➢ Amendments to IAS 1 “Presentation of Financial Statements” – Presentation of Accounting
Policies issued by the IASB on 12 February 2021. The amendments require entities to present their
significant accounting policies rather than significant accounting policies and provide guidance and
examples to assist preparers of financial statements to decide which accounting policies to present in
the financial statements.
➢ Amendments to IAS 8 “Accounting policies, changes in accounting estimates and errors” –
Definition of accounting estimates issued by the IASB on 12 February 2021. The amendments focus on
accounting estimates and provide guidance on the distinction between accounting policies and
accounting estimates.
➢ Amendments to IAS 12 "Income tax" - Deferred tax related to receivables and payables
arising from a single transaction issued by the IASB on 6 May 2021. According to the
amendments, the exemption from initial recognition does not apply to transactions where temporary
differences arise both deductible as well as taxable on initial recognition, resulting in the recognition of
equal deferred tax assets and liabilities.
➢ Amendments to IAS 16 "Property, plant and equipment" - Receipts before expected use, issued
by the IASB on 14 May 2020. The amendments prohibit the deduction from the cost of an item of
property, plant and equipment of any proceeds obtained from the sale of items produced during the
bringing of the respective asset to the place and in the condition necessary to be able to operate as
planned by management. Instead, the entity recognizes the proceeds from the sale of these items, and
the cost of producing these items in the profit and loss account.
➢ Amendments to IAS 37 "Provisions, Contingent Liabilities and Contingent Assets" - Onerous
Contracts - Cost of Contract Execution, issued by the IASB on May 14, 2020. According to the
amendments, the "cost of execution" of a contract includes "costs directly related to the contract". The
costs directly related to the contract can be either incremental costs of contract execution, or an
allocation of other costs directly related to the execution of contracts.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
18
2. MAIN ACCOUNTING POLICY (continued)
Information on issued standards that will come into force at a later date, which are not
applied by the Group in its financial statements (continued)
Additional information on specific standards, amendments to existing standards and
interpretations that may be used when appropriate: (continued)
➢ Amendments to various standards due to "IFRS Improvements (2018-2020 cycle)" issued
by the IASB on 14 May 2020. Amendments to various standards resulting from the annual IFRS
improvement project (IFRS 1, IFRS 9, IFRS 16 and IAS 41) with the main purpose of eliminating
inconsistencies and clarifying certain wordings. The amendments: (a) clarify that the subsidiary
applying paragraph D16(a) of IFRS 1 can cumulatively assess exchange differences using the
amounts reported by the parent, depending on the date of transition of the parent to IFRS (IFRS 1);
(b) clarifies the fees that an entity includes when applying the “10 per cent” test in paragraph B3.3.6
of IFRS 9 to assess whether it should derecognize a financial liability. An entity includes only fees
paid or received between the entity (borrower) and the lender, including fees paid or received by
either the entity or the lender on behalf of the other (IFRS 9); (c) removes from the example the
presentation of the lessor's reimbursement of leasehold improvements to resolve any possible
confusion about the treatment of lease incentives that might arise because of the way in which lease
incentives are presented in that example (the example illustrative 13 attached to IFRS 16); and (d)
removes the requirement in paragraph 22 of IAS 41 for entities to exclude cash flows with taxation
when measuring the fair value of a biological asset using a present value technique (IAS 41).
Revenue recognition
According to IFRS 15, revenue is recognized when or as the customer acquires control of the goods or
services at the value that reflects the price that the Company expects to be entitled to receive in
exchange for those goods and services. Income is recognized at the fair value of the services rendered or
the goods delivered, net of VAT, excise duties and other sales taxes.
IFRS 15 "Revenue from contracts with customers"
IFRS 15 "Revenue from contracts with customers" introduces a comprehensive model for the recognition
and measurement of income. The standard replaces the income recognition criteria, replacing IAS 18
"Revenue", IAS 11 "Construction Contracts" and IFRIC 13 "Customer Loyalty Programs". Under the new
standard, revenue is recognized when or as the customer acquires control of the goods or services at the
value that reflects the price that the Company expects to be entitled to receive in exchange for those
goods and services.
Being permitted by the standard, the Company adopted IFRS 15 as of January 1, 2018 using the revised
retrospective method with cumulative adjustments from the initial application recognized as at 1 January
2018 in equity and without altering the figures for prior periods. Initial application has no impact on the
Company's retained earnings.
Income is measured at the fair value of amounts received or receivable. Income is reduced by the value
of returns, commercial rebates and other similar costs
Sale of goods
Income from sale of goods is recognized when the following conditions are met:
i. The Group has transferred to the buyer all the significant risks and rewards of ownership of the
goods;
ii. The Group retains neither continuing managerial involvement to the degree usually associated
with ownership nor effective control over the goods sold;
iii.The value of the income can be measured reliably.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
19
2. MAIN ACCOUNTING POLICY (continued)
Revenue recognition (continued)
Revenues from services delivered
Revenues from services delivered are recognized if they can be reliably measured.
The revenue associated with the transaction must be recognized according to the stage of execution of
the transaction at the balance sheet date. The outcome of a transaction can be reliably estimated when
all of the following conditions are met:
a. the amount of revenue can be reliably assessed;
b. it is likely that the economic benefits associated with the transaction will be generated for the
Company;
c. the stage of completion of the transaction at the end of the reporting period can be reliably
assessed; and
d. the costs incurred for the transaction and the costs of completing the transaction can be reliably
measured.
When the outcome of a transaction involving the revenues from services delivered cannot be reliably
estimated, revenue should be recognized only to the extent of recognized recoverable expenses.
Dividend and interest income
Income from dividends related to investments is recognized when the shareholders’ right to receive them
is established.
Foreign currency transactions
The Group operates in Romania and its functional currency is the Romanian leu.
When preparing the financial statements of individual entities and the Group, transactions in currencies
other than the functional currency (foreign currencies) are registered at the exchange rates prevailing at
the dates of the transactions. At each balance sheet date, monetary items denominated in foreign
currencies are translated at the rates prevailing at the balance sheet date.
Non-monetary items that are measured in terms of historical cost in a foreign currency are not
translated.
Foreign exchange differences are recognized in the profit and loss as they arise.
The official conversion rates used to convert balance sheet items denominated in foreign currency at the
end of the reporting period were as follows:
➢ December 31, 2016: 4.3033 LEI/USD and 4.5411 LEI/EUR
➢ December 31 2017: 3.8915 LEI/USD and 4.6597 LEI/EUR
➢ December 31 2018: 4.0736 LEI/USD and 4.6639 LEI/EUR
➢ December 31 2019: 4.2608 LEI/USD and 4.7793 LEI/EUR
➢ December 31 2020: 3.9660 LEI/USD and 4.8694 LEI/EUR
➢ December 31 2021: 4.3707 LEI/USD and 4.9481 LEI/EUR
➢ December 31 2022: 4.6346 LEI/USD and 4.9474 LEI/EUR
Costs related to long-term borrowings
Costs related to long-term borrowings directly attributable to the acquisition, construction or production
of assets, which require a substantial amount of time to be used or for sale are added to the cost of such
assets, until such assets are ready to be used according to their purpose or for sale.
All the other borrowing costs are recognized in the income statement as incurred.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
20
2. MAIN ACCOUNTING POLICY (continued)
Government subsidies
Government subsidies are not recognized until there is reasonable assurance that the Group will comply
with the conditions of such subsidies and the subsidies are received.
Government subsidies whose main condition is that the Group acquire, build or otherwise obtain non-
current assets are recognized as deferred income in the balance sheet and are transferred to the income
statement systematically and rationally throughout the useful life of such assets.
Employee contributions
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as
reported in the income statement because it excludes items of income or expense that are taxable or
deductible in other years and it further excludes items that are never taxable or deductible. The Group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted at
the balance sheet date.
Provisions for taxes
As at December 31, 2022 the Group’s financial statements include revaluation reserves. Based on the
latest provisions of current legislation, such reserves may become taxable if their destination changed, by
using them to cover accounting losses or by the Group’s winding up. The Group’s management considers
that there is no intention to use such reserves to cover accounting losses. Nevertheless, if such reserves
are used to cover losses, the Group must register an income tax liability in connection with such
reserves.
Deferred tax
Deferred tax is recognized on the difference between the carrying amounts of assets and liabilities in the
separate financial statements and the corresponding tax bases used in the computation of taxable profit,
and are accounted for using the balance sheet liability method. Deferred tax liabilities are generally
recognized for all taxable temporary differences, to the extent that it is probable that taxable profits will
be available against which those deductible temporary differences can be utilized. Such assets and
liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition
(other than from a business combination) of other assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in
subsidiaries and associates and interests in joint ventures, unless the Group is able to control the reversal
of the temporary difference and it is probable that the temporary difference will not reverse in the
foreseeable future. Deferred tax assets arising from deductible temporary differences associated with
such investments and interests are recognized only to the extent that it is probable that sufficient taxable
profits will be available against which the benefits of the temporary differences can be utilized and are
expected to be reversed in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and is reduced to the
extent that it is no longer probable that there will be sufficient taxable profits to allow full or partial
recovery of the asset.
Deferred tax assets and liabilities are measured at the tax rates estimated to be applied in the period in
which the liability is settled or the asset is realized, based on tax rates (and tax laws) in force or
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
21
2. MAIN ACCOUNTING POLICY (continued)
Taxation (continued)
substantially enacted by the date of the balance sheet. The measurement of deferred tax assets and
liabilities reflects the tax consequences of how the Group estimates, at the reporting date, that it will
recover or settle the book value of its assets and liabilities.
Current and deferred tax for the period
Current and deferred taxes are recognized as expense or income in statement of comprehensive income,
except when they relate to items credited or debited directly to equity, in which case the tax is also
recognized directly in equity, or where they arise from the initial accounting for a business combination.
In the case of a business combination, the tax effect is considered when calculating goodwill or when
determining the excess of the acquirer’s interests in the net fair value of the identifiable assets, liabilities
and contingent liabilities of the acquired company on cost.
Property, plant and equipment
Land and buildings held to be used in the production or delivery of goods or services or for administrative
purposes are recorded in the balance sheet at fair value less the subsequently accumulated depreciation
and other losses of value.
The Group conducts the revaluation of land and buildings based on a valuation report issued by a
professional valuer, in order to determine the fair value thereof as at the balance sheet date.
Revaluations are conducted with enough regularity so as to ensure that the carrying amount does not
differ significantly from the amount that would have been determined by using fair value at the end of
the reporting period. The increases in the book values of tangible assets further to revaluation were
credited to Revaluation reserves under Equity. Revaluation reserves established after 2004 are not
fiscally deductible.
Gains and losses on the sale or disposal of an asset are determined as difference between income from
the asset sale and their net book value. Gains and losses are recognized in the Income Statement.
The buildings’ depreciation is charged to the income statement.
Assets under construction for production, rental or administrative purposes, or for purposes not yet
determined, are carried at historical cost. Depreciation of these assets, on the same basis as other
tangible assets, commences when the assets are ready for their intended use.
Plant and equipment are recorded in the balance sheet at historical cost adjusted to the effect of
hyperinflation as at December 31, 2003, in accordance with IAS 29 Financial Reporting in
Hyperinflationary Economies less the subsequently accumulated depreciation and impairment losses.
Depreciation is registered so as to diminish the cost other than the cost of land and buildings under
construction, throughout their estimated useful life, on a straight line basis. The estimated useful lives,
residual values and depreciation method are reviewed at the end of each year, with the effect of any
changes in estimate accounted for on a prospective basis.
Assets held in financial leasing are amortized over the useful life, similarly to the assets held or, if the
lease term is shorter, over the term of the respective leasing contract.
Losses or gains from selling or disposing a tangible asset are computed as difference between sale
revenues and the net book value of the asset and are recognized in the income statement.
The following useful lives are used in the depreciation calculation:
Years
Buildings 5 – 45
Plant and equipment 3 – 20
Other installations, office equipment 3 – 30
Vehicles in finance lease 5 – 6
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
22
2. MAIN ACCOUNTING POLICY (continued)
Investment property
Investment property are properties held to earn rentals and/or for future capital appreciation. They are
measured initially at cost, including transaction costs. Subsequent to initial recognition, investment
property is measured at fair value. Gains and losses arising from changes in the fair value of investment
properties are included in the profit or loss in the period in which they arise.
Intangible assets
Intangible assets acquired separately
Intangible assets acquired separately are carried at cost less accumulated amortization. Amortization is
calculated on a straight line basis throughout their useful life. The estimated useful life and method of
amortization are reviewed at the end of each reporting period, with the effect of any changes in estimate
accounted for on a prospective basis.
The calculation of amortization uses the following useful lives:
Years
Licences 1 – 5
Impairment of tangible and intangible assets, goodwill exclusively
At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets
to determine whether there is any indication that those assets have suffered an impairment loss. If any
such indication exists, the Group estimates the recoverable amount of the asset in order to determine the
extent of the impairment loss. Where it is not possible to estimate the recoverable amount of an
individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the
asset belongs. Where a reasonable and consistent basis of allocation cannot be identified, tangible assets
are allocated to the smallest group of cash-generating units for which a consistent and reasonable
allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for
impairment at least annually, and whenever there is an indication that the asset may be impaired.
The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing the
value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset for which the future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (or the cash-generating unit) is reduced to its recoverable
amount. An impairment loss is recognized immediately in profit or loss, unless the relevant asset is carried
at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or the cash-generating
unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying
amount does not exceed the carrying amount that would have been determined had no impairment loss
been recognized for the asset (or the cash-generating unit) in prior years. A reversal of an impairment loss
is recognized immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in
which case the reversal of the impairment loss is treated as a revaluation increase.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
23
2. MAIN ACCOUNTING POLICY (continued)
Inventories
Inventories are stated at the lower of cost and net realizable value. Costs, including a portion
corresponding to indirect fixed and variable expenses are allocated to inventories held according to the
most suitable method to that class of inventory, most of them being measured using the weighted
average. The net realizable value represents the estimated selling price for inventories less all estimated
completion costs and costs necessary to make the sale.
Assets held for sale
Assets held for sale are represented by real estate held by the Company, which forms the object of a
selling plan as at the date of the consolidated financial statements. Such assets are not depreciated and
are carried at the lower of carrying amount and fair value, less costs to sell and are presented
separately in the consolidated financial statements. Resulting gains and losses are included in profit or
loss as they arise.
Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive), as a result of
past events, it is probable that an outflow of resources will be required to settle the obligation, and a
reliable estimate of the amount can be made.
The amount recognized as provision is the best estimate of the required amount to settle the obligation
at the balance sheet date, considering the risks and uncertainties related to the obligation. If a provision
is measured using estimated cash flows to settle the current obligation, then the carrying value is the
current value of such cash flows.
Fair value measurement IFRS 13
A number of assets and liabilities included in the Company's financial statements require measurement
and / or presentation at fair value.
IFRS 13 Defines fair value as the price at which it would be collected for the sale of an asset or paid for
the transfer of a debt in a regulated transaction between market participants at the measurement date
(ie an exit price). The definition of fair value emphasizes that fair value is a market-based valuation, not
a Company-specific value.
IFRS 13 applies when another IFRS provides or permits fair value measurements or disclosures about
fair value measurements except in the following cases:
a) Share-based payment transactions falling under IFRS 2
b) Leasing transactions that fall under IFRS 16
c) Measurements that are similar to fair value but do not represent fair value, such as net realizable
value under IAS 2
d) Plan assets valued at fair value in accordance with IAS 19
e) Assets whose recoverable amount is fair value less costs associated with disposal under IAS 36
Fair Value Hierarchy - In order to improve the consistency and comparability of fair value measurements
and related disclosures, this hierarchy is classified into 3 levels:
1. Level 1 inputs – quoted prices (not adjusted) on active markets for identical assets or liabilities, to
which the Company has access at the measurement date
2. Level 2 inputs – inputs other than the quoted prices included in level 1 that are observable for assets
or liabilities either directly or indirectly
3. Level 3 inputs– inputs for assets or liabilities that are not based on observable inputs
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
24
2. MAIN ACCOUNTING POLICY (continued)
Financial assets and liabilities
The group applies IFRS 9 – Financial instruments which entered into force on January 1, 2018 and which
uses for the classification of financial assets, the business model of the entity and the cash flow
characteristics of the financial asset according to the contract.
Classification of the financial assets
According to IFRS 9 Financial instruments, financial assets are classified in:
1. financial asset valued at amortized cost if both conditions below are met:
– the financial asset is held within a business model whose objective is to hold the financial assets to
collect contractual cash flows and
- the contractual terms of the financial asset generate, on certain dates, cash flows that are exclusively
payments of the principal and the interest related to the principal owed.
2. financial asset valued at fair value through other elements of the overall result if both conditions below
are met
- the financial asset is held within a business model whose objective is fulfilled both by collecting the
contractual treasury flows and by selling the financial assets and
- the contractual terms of the financial asset generate, on certain dates, cash flows that are exclusively
payments of the principal and the interest related to the principal owed
3. financial asset valued at fair value through profit or loss, unless it is valued at amortized cost in
accordance with point 1 or at fair value through other elements of the comprehensive result in
accordance with point 2.
With the exception of trade receivables that fall under the scope of IFRS 15, a financial asset or a
financial liability is initially evaluated at fair value, and in the case of a financial asset or a financial
liability that is not at fair value through profit or loss, it is added or decrease the costs of the transaction
that are directly attributable to the purchase or issue of the financial asset or financial debt.
After the initial recognition, the subsequent evaluation of the financial assets is done at:
– amortized cost
– the fair value through other elements of the global result or
– fair value through profit or loss
Financial assets include shares held in subsidiaries, associated entities and jointly controlled entities,
loans granted to these entities, other investments held as fixed assets and other loans.
Investments in associates
An associate is an entity over which the Group has significant influence. Significant influence is the power
to participate in the financial and operational policy decisions of the investee, but there is no joint control
or control over these policies.
The Group's investment in its associates is accounted for using the equity method. According to the
equity method, the investment in a partner is initially recognized at cost. The carrying amount of the
investment is adjusted to recognize changes in the share of the associated group's net assets at the
acquisition date. Goodwill related to the associate is included in the carrying amount of the investment
and is not tested separately for impairment
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
25
2. MAIN ACCOUNTING POLICY (continued)
Financial assets and liabilities (continued)
Investments in associates(continued)
The profit or loss statement reflects the Group's share of the associate's results of operations. Any change
in the OCI of those holdings is presented as part of the Group's OCI. In addition, when there has been a
directly recognized change in equity, the Group recognizes its share of any change, when applicable, in the
statement of changes in equity. Unrealized gains and losses arising from transactions between the Group
and the associate are eliminated to the extent of the interest in the associate.
The aggregate of the profit or loss share of an associate of the Group is presented in the statement of profit
or loss other than operating profit and represents profit or loss after taxes and non-controlling interests in
the associate's subsidiaries.
The financial statements of the associate are prepared for the same reporting period as the group. When
necessary, adjustments are made to align the accounting policies with those of the Group.
After applying the equity method, the Group determines whether it is necessary to recognize an impairment
loss on its investment in its association. At each reporting date, the Group determines whether there is
objective evidence that the investment in the association is impaired. If there is such evidence, the Group
calculates the amount of impairment as the difference between the recoverable amount of the associate
and its carrying amount and then recognizes the loss in "Share of profit of an associate" in the statement
of profit or loss.
Upon loss of significant influence over the associate, the Group measures and recognizes any investment
retained at its fair value. Any difference between the carrying amount of the associate at the loss of
significant influence and the value of the retained investment and the income from disposal are recognized
to profit or loss.
The Group's financial assets include cash and cash equivalents, trade receivables and long-term
investments. Financial liabilities include finance lease obligations, interest-bearing bank loans, overdrafts,
trade payables and other liabilities. For each item, the accounting policies for recognition and measurement
are presented in this note. Management believes that the estimated fair values of these instruments
approximate their carrying amounts.
The impairment model in IFRS 9 requires that impairment allowances be recognized in accordance with
expected credit losses and not in accordance with the model of actual credit losses provided for in IAS 39.
IFRS 9 requires the Group to record an allowance for expected credit losses on all loans and financial assets
attached to liabilities that are not held at fair value through profit or loss. Financial assets measured at
amortized cost will be subject to impairment allowances in accordance with IFRS 9. In general, the
application of the model for expected credit losses will involve the earlier recording of credit losses and will
lead to an increase in the impairment allowance for the relevant items.
For some financial instruments, such as trade receivables, impairment losses are estimated based on a
simplified approach, recognizing lifetime expected credit losses. The Group has established a matrix of
provisions based on the Group's historical credit loss experience, adjusted for forward-looking factors
specific to borrowers and the business environment.
Borrowings are initially recognized at fair value less costs incurred with such operation. Subsequently, they
are registered at amortized cost. Any difference between the entry value and the repayment value is
recognized in the income statement over the borrowing term, using the effective interest method.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
26
2. MAIN ACCOUNTING POLICY (continued)
Financial assets and liabilities (continued)
Financial liabilities
The Group classifies financial liabilities into one of the categories presented below, depending on the
purpose for which they were acquired.
• Measured at fair value through profit or loss - only for the categories of derivative financial
instruments held for sale. These are recognized in the balance sheet at fair value, and changes in
value are recognized in the income statement.
• Other financial liabilities: this category includes the following:
Bank loans, which are initially recognized at amortized cost, less transaction costs directly attributable to
obtaining the loans.
Debts and other short-term monetary liabilities, which are initially recognized at amortized cost,
subsequently presented at cost using the market interest method.
Financial liabilities are classified as liabilities or equity according to the substance of the contractual
arrangements. Interest, dividends, gains and losses related to a financial instrument classified as debt are
reported as expense or income. Distributions to equity holders are directly recorded to equity. Financial
instruments are offset when the Group has a legally enforceable right to offset and intends to settle either
on net basis, or to realize the asset and simultaneously write off the obligation.
The classification of investments depends on their nature and scope and is determined on the initial
recognition date.
Financial assets available for sale (AFS)
Shares held in an unlisted capital instruments are classified as AFS and are registered at fair value. Gains
and losses arising from changes in fair value are directly recognized in equity, in investment revaluation
reserves, except for impairment losses, interest calculated using the effective interest method and gains
and losses from the exchange rate of monetary assets, which are recognized directly in profit and loss. If
the investment is sold or it is found impaired, then the gain or loss previously cumulated previous
recognized in the investment revaluation reserve, is included in the profit and loss of the period.
Dividends from AFS capital instruments are recognized in profit and loss when the Group’s right to receive
them is established.
Impairment of financial assets
Financial assets, other than the ones recognized at fair value through the profit and loss account, are
measured for impairment on each balance sheet date.
Financial assets are impaired when there is objective evidence that one or more of the events occurring
after initial recognition have affected future cash flows related to the investment.
For shares available for sale, a significant or extended decline of the fair value of the security below its cost
is considered objective evidence of impairment.
Certain categories of financial assets, such as receivables, assets evaluated as individually non-impaired,
are subsequently evaluated for impairment collectively. Objective evidence for the impairment of a portfolio
of receivables may include the Group’s past experience in collective payments, an increase of delayed
payments beyond the credit period, as well as visible changes of national and local economic conditions
correlated with payment incidents regarding receivables.
The accounting value of the financial asset is reduced by the impairment loss, directly for all financial
assets, except for trade receivables, in which case the accounting value is reduced by using a provision
account. If a receivable is considered to be irrecoverable, it is eliminated and deducted from the provision.
Subsequent recoveries of amounts previously written off are credited to the provision account. Changes in
the accounting value of the provision account are recognized in the profit and loss account.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
27
2. MAIN ACCOUNTING POLICY (continued)
Financial assets and liabilities (continued)
The Group derecognizes financial assets only when the contractual rights over cash flows related to the
assets expire; or when it transfers the financial asset and substantially all risks and rewards related to
the asset to another entity.
The Group derecognizes financial liabilities when and only when the Company’s liabilities have been paid,
written off or expired.
Segment reporting
Reporting by activity segments is based on the management's analysis of the group's activity considering
production processes, sales markets, the relevance of the resulting information. Thus, the Management
has identified four activity segments: Plastics processing, Recycled Polymers and compounds, Other
productive sectors and Other activities.
The "Plastics processing" segment includes the income obtained by the Group from the sale of
polyethylene products (agricultural films and heat-shrinkable films, polyethylene bags of various
thicknesses and sizes, covers), polypropylene (polypropylene bags for the milling and bakery industry,
chemistry, the sugar industry, etc. and large-sized bags - big-bags), polystyrene products (expanded
polystyrene trays - standard and catering, extruded polystyrene boards for floor insulation), PET products
(PET trays and foils and films multilayer (lamination, sealing, thermoforming), PVC pipes, etc. The
activities of this segment are carried out in Romcarbon SA and Livingjumbo Industry SA.
The segment "Recycled polymers & compounds" includes sales of regranulates from recycled polymers
and plastic compounds from virgin polymers used by processors of plastics that produce articles for
various applications in the automotive industry, the electrical and household appliances industry,
furniture, construction, pipes, packaging, etc. The activity of this sector is carried out in Romcarbon SA.
In the "Other Productive Sectors" segment are included "Individual respiratory protection equipment and
active carbon" which includes - respiratory protection equipment used by the large chemical and
petrochemical plants in the country as well as activated carbon intended for various gas purification
activities methane resulting from the process of biodegradation of household waste, greening of landfills,
retention of toxic gases from incinerators, etc., the "Filters" category, which includes sales of oil, fuel and
air filters for vehicles, vacuum cleaners, agriculture as well as industrial filters and "processed PVC"
includes products made from recycled material intended for obtaining road signs.
Each business segment is allocated revenues and profits, assets and liabilities, depreciation and
amortization expenses, and inputs of property, plant and equipment.
Earnings per share
IAS 33 - Earnings per share provides that, if an entity presents consolidated financial statements and
separate financial statements, the presentation of earnings per share is based on consolidated disclosures
only. If it chooses to disclose earnings per share based on its separate financial statements, it must
disclose such information on earnings per share only in the statement of comprehensive income.
The Group has chosen to disclose earnings per share in the separate financial statements, based on the
separate comprehensive income.
Use of estimates
The preparation of the financial information requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and
liabilities at the end of reporting date, and the reported amounts of revenue and expenses during the
reporting period. Actual results could vary from these estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the
period in which the estimate is revised if the revision affects only that period or in the period of the
revision and future periods if the revision affects both current and future period.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
28
3. REVENUES
An analysis of the Group’s revenues for the reporting period is presented below:
Fiscal year
ended
December 31,
Fiscal year
ended
December 31,
2022
2021
RON
RON
Revenues from sale of finished products
1
313,728,863
276,755,901
Revenues from sale of commodities
37,641,933
43,132,592
Revenues from services delivered
3,141,708
3,514,731
Other revenues (revenues from sale of semi-finished goods, residual
goods, other income)
27,473,173
17,916,212
Total
381,985,677
341,319,435
1
The increase in Revenues from sales of finished products and from the sale of commodities is mainly
due to the significant increase in raw material prices (plastic granules) during the reporting period and is
correlated with the increased cost of raw materials.
Segment reporting
Fiscal year
ended
December 31,
Fiscal year
ended
December 31,
2022
2021
RON
RON
Sales on domestic market (Romania)
267,602,809
225,334,281
Sales on foreign market (Europe)
114,235,017
113,871,928
Others (China, Israel, Turkey)
147,851
2,113,226
Total
381,985,677
341,319,435
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
29
3. REVENUES (continued)
SEGMENT :REVENUES
SEGMENT : PROFIT
Fiscal year
ended
December 31,
Fiscal year
ended
December 31,
Fiscal year
ended
December 31,
Fiscal year
ended
December 31,
2022
2021
2022
2021
RON
RON
RON
RON
Plastics processing
288,065,682
257,423,146
28,189,525
24,426,404
Regenerated polymers &
Compounds
51,224,339
40,009,626
5,925,723
4,687,147
Other productive sectors
(protection materials, Active
carbon, car and industrial filters,
processed PVC. etc)
9,569,410
5,876,115
3,039,222
819,008
Revenues from sale of goods, sale
of utilities, provision of services,
other revenues
33,126,246
38,010,548
1,656,312
1,140,316
Total from operations
381,985,677
341,319,435
38,810,782
31,072,875
Other income
-
-
4,287,141
4,291,042
Other gains and losses, salaries
and administrative expenses
-
-
(27,827,563)
(29,675,037)
Finance expenses
-
-
(2,894,705)
(3,054,785)
Net gain/(loss) on disposal of
financial investments
44,525,895
-
Finance income
290,047
85,170
Profit inainte de impozitare
-
-
57,191,597
2,719,264
“Plastics processing” segment include income obtained by the Group from selling polyethylene products
(agriculture foils and thermo-contractible foils, polyethylene bags of different thicknesses and sizes, covers),
polypropylene products (polypropylene bags for the milling and bakery industry, the chemical industry, sugar
industry, etc. and big-bags), polystyrene products (expanded polystyrene trays - standard and catering,
expanded polystyrene boards for floor insulation), PET products (PET trays and multilayer films (lamination,
sealing, thermoforming), PVC tubes, etc.
“Regenerated Polymers & Compounds ” segment includes income from sale of compounds and re-
granulated materials made of recycled polymers and plastics compounds made of virgin polymers used by the
processors of plastics products that manufacture items for various uses in the automotive industry, the electrical
and household industry, furniture, constructions, pipes, packaging, etc.
Other productive sectors include the following groups of products:
• “Materials for respiratory protection and active carbon” include respiratory protection
equipment used by the big chemical and petrochemical plants in the country as well as activated coal
applied in different actions of purification of methane in the biodegradation of household waste, pit
soil reclamation, retention of toxic gas from incinerators, etc.
• “Filters” include sales of oil, fuel and air filters for both motor vehicles and industrial use.
• “Processed PVC” includes products made of recycled materials used to produce traffic signs.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
30
3. REVENUES (continued)
SEGMENT : ASSETS
SEGMENT : LIABILITIES
31-dec
31-dec
31-dec
31-dec
2022
2021
2022
2021
Segment Assets and Liabilities
RON
RON
RON
RON
Romcarbon, LivingJumbo
Industry
Plastics processing (Polypropylene,
Polystyrene,Polyethylene, PET)
115,217,017
120,116,717
92,928,865
105,315,946
Romcarbon
Regenerated polymers & Compounds
48,745,757
55,171,383
18,647,978
21,024,345
Romcarbon
Other productive sectors (protection materials, Active
carbon, car and industrial filters, processed PVC, etc)
5,307,606
5,785,563
2,699,423
2,346,520
Romcarbon, RC Energo Install,
Info Tech Solutions, etc
Revenues from sale of goods, sale of utilities, provision of
services, other revenues
174,841,151
120,736,750
60,155,014
34,203,436
Total Assets / Liabilities
344,111,530
301,810,412
174,431,279
162,890,246
Segment of non-current
SEGMENT : DEPRECIATION
assets additions *
31-dec
31-dec
31-dec
31-dec
2022
2021
2022
2021
RON
RON
RON
RON
Segment Depreciation and
Non-current assets additions
Romcarbon, LivingJumbo
Industry
Plastics processing (Polypropylene,
Polystyrene,Polyethylene, PET)
7,556,484
7,657,157
2,293,951
1,850,257
Romcarbon
Regenerated polymers & Compounds
5,615,091
5,732,261
22,554
1,250,354
Romcarbon
Other productive sectors (protection materials, Active
carbon, car and industrial filters, processed PVC, etc)
312,537
293,496
73,102
27,275
Romcarbon, RC Energo Install,
Info Tech Solutions, etc
Revenues from sale of goods, sale of utilities, provision of
services, other revenues
1,054,298
1,214,885
2,504,151
1,311,246
Total
14,538,409
14,897,799
4,893,758
4,439,132
* Non-current assets additions represent inflows of fixed assets during the year and do not include inflows from purchases of subsidiaries.
In “Other activities” segment, the Group has one client (Kasakrom Chemicals SRL) whose turnover represents 4% (8% in 2021) of the Group’s sale.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
31
4. OTHER INCOME
Fiscal year
ended
December 31,
Fiscal year
ended
December 31,
2022
2021
RON
RON
Income from lease of investment property
594,236
545,350
Income from subsidies
3,692,905
3,745,692
4,287,141
4,291,042
5. RAW MATERIALS AND CONSUMABLES USED
Fiscal year
ended
December 31,
Fiscal year
ended
December 31,
2022
2021
RON
RON
Raw materials
189,658,392
164,956,416
Commodities sold
12,796,779
12,575,727
Energy expenses
33,683,638
40,187,664
Goods sold
25,098,983
15,769,854
Packaging cost
2,495,169
1,906,710
Total
263,732,961
235,396,370
The increase in expenses with raw materials took place as a result of the increase in the purchase costs
of plastic granules and is correlated with the increase in revenues from sales of finished products.
6. EMPLOYEE BENEFITS EXPENSES
Fiscal year
ended
December 31,
Fiscal year
ended
December 31,
2022
2021
RON
RON
Salaries expenses
72,543,133
69,160,782
Social contributions
1,747,394
1,666,198
Meal tickets
3,970,536
2,919,349
78,261,063
73,746,329
The increase in salary expenses is mainly due to the increase of the minimum wage in the economy in 2022
compared with 2021 and the value of the meal tickets offered to the employees.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
32
7. DEPRECIATION AND AMORTIZATION EXPENSES
Fiscal year
ended
December 31,
Fiscal year
ended
December 31,
2022
2021
RON
RON
Amortization/depreciation, out of which:
14,538,409
14,897,799
Depreciation of property, plant and equipment (Note 13)
14,372,685
14,748,814
Amortization of intangible assets (Note 16)
165,724
148,985
8. OTHER EXPENSES
Fiscal year
ended
December 31,
Fiscal year
ended
December 31,
2022
2021
RON
RON
Expenses with repairs
1,218,415
900,254
Expenses with rents
4,721,072
1,546,709
Expenses with insurance premiums
622,788
648,368
Research expenses
1,000
250
Other expenses with commissions
265,387
93,398
Protocol, advertising and publicity expenses
193,268
190,838
Transport
8,016,868
8,263,795
Expenses with travels
178,340
94,584
Expenses with postal charges and telecommunications
172,006
176,580
Expenses with third party services
1
10,895,191
6,608,976
Other taxes and levies
1,640,436
2,030,528
Losses on receivables and sundry debtors
54,270
80,859
Expenses with indemnifications, fines and penalties
41,459
16,786
Other expenses
2
2,625,646
730,707
Total
30,646,145
21,382,633
1
The indicator "Expenses with third party services" includes the cost of financial audit services performed
by Deloitte Audit SRL. The value of the services is established according to the contract concluded
between the parties.
2
In Other expenses in 2022, the amount of 1,241,521 lei is included, representing differences from the
revaluation of Romcarbon SA constructions carried out on 31 December 2022.
9. OTHER GAINS (LOSSES)
Fiscal year
ended
December 31,
Fiscal year
ended
December 31,
2022
2021
RON
RON
Compensations, fines and penalties income
51,586
8,202
Gain/(loss) on disposal of property, plant and equipment
915,742
(3,462)
Gains / Losses on fair value adjustments related to
investment property **
170,996
1,377,918
Gains / (Losses) from disposal of investment property
1,191,307
411,233
Net income / (expense) from provisions
(96,975)
(280,404)
Other losses
(128,583)
-
Other gains *
172,675
422,893
Total
2,276,748
1,936,380
(*) Line Other gains includes in 2021 income from subsidies for the payment of technical unemployment
in amount of lei 298,392 RON.
(**)On December 31, 2022, the Group revalued the investment properties held at the end of the
financial year, resulting in an increase in the net value of Lei 170,996 (2021 : Lei 1,377,918), an amount
that was recorded in the Profit of the year - see note 15.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
33
10. FINANCE INCOME
Fiscal year
ended
December 31,
Fiscal year
ended
December 31,
2022
2021
RON
RON
Interest
(218,712)
(85,170)
Net foreign exchange gain
(71,335)
-
Total
(290,047)
(85,170)
11. FINANCE COST
Fiscal year
ended
December 31,
Fiscal year
ended
December 31,
2022
2021
RON
RON
Interest expense
2,364,092
1,657,222
Net foreign exchange losses
-
1,037,861
Bank commissions and assimilated charges
446,587
351,839
Discounts allowed
84,027
7,936
Total
2,894,705
3,054,857
12. INCOME TAX (EXPENSES)
Income tax expenses
Fiscal year
ended
December 31,
Fiscal year
ended
December 31,
2022
2021
RON
RON
Current income tax expense
1,025,425
752,529
Deferred tax income expense / (income)
41,417
176,123
Total expense (income) with income tax
1,066,842
928,652
The tax rate applied for the reconciliation above related to 2022 and 2021 is 16% and is due by all Romanian
legal persons.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
34
12. INCOME TAX (EXPENSES) (continued)
The total expense of the year may be reconciled with the accounting profit as follows:
Year ended
December 31,
2022
Year ended
December 31, 2021
RON
RON
Gross profit
57,191,597
2,719,264
Tax calculated according to the 16% rate
9,150,656
435,082
Effect of non-taxable income
(9,667,766)
(328,073)
Sponsorship deductions
21,298
Exemption of reinvested profit
318,914
18,695
Tax loss from previous years
-
Effect of deferred tax
41,417
176,123
Effect of non-deductible expenses
(910,062)
(1,251,777)
Expense with income tax recognized in income
statement
(1,066,842)
(928,652)
Components of deferred tax liabilities
Year ended
December 31,
2022
Year ended
December 31,
2021
RON
RON
Property, plant and equipment
7,314,812
7,588,146
Investment property
872,343
837,044
Inventories
(274,549)
(274,549)
Trade and other receivables
(131,947)
(138,067)
-
-
7,780,659
8,012,574
Recognized deferred income tax liabilities
7,780,659
8,012,574
of which: deferred tax on revaluation reserves from
comprehensive income
Year ended
December 31,
2022
Year ended
December 31,
2021
RON
RON
Opening balance as at January 1
8,012,574
7,857,468
(Expense) / Income during the year
- movement from revaluation reserves
(273,332)
(21,017)
- recognized in income statement
41,417
176,123
- from acquisition of subsidiaries
-
-
Closing balance as at December 31
7,780,659
8,012,574
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
35
13. PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND
EQUIPMENT
Land
Constructions
Plant and
equipment
Other
fixtures,
plant and
furniture
Tangible assets
in progress and
advances
Total
RON
RON
RON
RON
RON
RON
COST
Balance as at January 1, 2022
44,784,188
23,511,706
183,827,727
907,477
2,800,045
255,831,143
Additions, of which:
-
3,376,956
3,274,441
136,327
5,187,258
11,974,982
- Transfers
-
1,482,990
3,274,441
114,419
-
4,871,851
- Revaluation
1,893,966
1,893,966
Disposals, of which:
1,158,326
5,270,976
4,149,172
7,080
3,592,572
14,178,126
- Transfers
4,871,851
4,871,851
- Transfers to investment property
-
-
-
-
-
-
- Revaluation
1,158,326
5,217,502
-
-
-
6,375,828
Balance as at December 31,
2022
43,625,862
21,617,686
182,952,996
1,036,724
4,394,731
253,627,999
PROPERTY, PLANT AND
EQUIPMENT
Land
Constructions
Plant and
equipment
Other fixtures, plant
and furniture
Tangible
assets in
progress
and
advances
Total
RON
RON
RON
RON
RON
RON
COST
Balance as at January 1, 2021
45,780,054
22,940,657
181,277,855
921,344
3,191,939
254,111,849
Additions, of which:
257,863
913,322
3,181,652
86,295
3,616,491
8,055,623
- Transfers
-
931,219
2,990,871
86,295
-
4,008,385
- Revaluation
-
-
-
-
-
-
Disposals, of which:
1,253,731
342,273
631,777
100,161
4,008,384
6,336,327
- Transfers
-
-
-
-
4,008,385
4,008,385
- Transfers to investment property
-
-
-
-
-
-
- Revaluation
-
-
-
-
-
-
Balance as at December 31,
2021
44,784,188
23,511,706
183,827,727
907,477
2,800,045
255,831,143
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
36
13. PROPERTY, PLANT AND EQUIPMENT (continued)
PROPERTY, PLANT AND
EQUIPMENT
Land
Constructions
Plant and
equipment
Other fixtures, plant and
furniture
Tangible
assets in
progress and
advances
Total
RON
RON
RON
RON
RON
RON
ACUMULATED DEPRECIATION
Balance as at January 1, 2022
33,306
4,351,455
117,204,666
557,976
-
122,147,404
Depreciation charge
3,231
1,516,361
12,793,503
59,591
14,372,687
Disposals from sale of assets
-
3,882,865
4,077,587
4,230
7,964,682
Revaluation decrease
-
-
-
-
-
Balance as at December 31,
2022
36,537
1,984,951
125,920,582
613,338
128,555,408
IMPAIRMENT
Balance as at January 1, 2022
-
-
-
-
1,185,825
1,185,825
Balance as at December 31,
2022
-
-
-
-
1,185,825
1,185,825
PROPERTY, PLANT AND
EQUIPMENT
Land
Constructions
Plant and equipment
Other fixtures, plant
and furniture
Tangible
assets in
progress
and
advances
Total
RON
RON
RON
RON
RON
RON
ACUMULATED DEPRECIATION
Balance as at January 1,
2021
31,144
2,804,839
104,728,780
604,524
-
108,169,287
Depreciation charge
2,162
1,608,144
13,084,894
53,613
-
14,748,813
Disposals from sale of assets
-
61,528
609,006
100,161
-
770,695
Revaluation decrease
-
-
-
-
-
Balance as at December 31,
2021
33,306
4,351,455
117,204,666
557,976
-
122,147,404
IMPAIRMENT
Balance as at January 1, 2021
-
-
-
-
1,185,825
1,185,825
Balance as at December 31, 2021
-
-
-
-
1,185,825
1,185,825
NET BOOK VALUE
Balance as at January 1, 2022
44,750,881
19,160,251
66,623,061
349,501
1,614,220
132,497,914
Balance as at December 31, 2022
43,589,325
19,632,735
57,032,414
423,387
3,208,905
123,886,765
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
37
13. IMOBILIZARI CORPORALE (continuare)
Pledged and restricted tangible assets
ROMCARBON S.A.
Tangible assets having a net book value of Lei 68,314,018 as at December 31, 2021 (December 31,
2021: Lei 80,298,674) represent security for loans and credit lines contracted from: BRD GSG SA,
UniCredit Bank, EXIMBANK SA and CecBank SA.
LIVINGJUMBO INDUSTRY S.A.
Tangible assets with a net book value of Lei 21,880,693 as at December 31, 2022 (December 31, 2021:
Lei 25,412,377) consisting of technical installations and equipment represent security for loans and
credit lines contracted from BRD GSG and UniCredit Bank SA.
RC Energo Install SRL
Tangible assets with a net book value of Lei 10,122 at December 31, 2021 (31.12.2021: Lei 56,852)
consisting of technical installations and equipment represent security for loans and credit lines contracted
from Eximbank SA.
14. INVESTMENT PROPERTIES
December 31,
2022
December 31,
2021
RON
RON
Land
3,618,291
4,654,143
Plants
6,265,447
6,240,443
Total
9,883,738
10,894,586
As at December 31, 2022, the Group owns in its locations in Iasi and Buzau non-current assets that are
not used for its core activity. They are held to acquire future appreciation and to be partly rented to third
parties. Based on such criteria, in accordance with IAS 40 “Investment Property”, the Group decided to
classify such non-current assets as investment property.
In July 2022 was sold a land having a total surface of 504 sq m, located in Iasi, Calea Chisinaului no. 29,
for which it was cashed the price of Lei 249,299 (equivalent of Eur 50,400).
In November 2022 was sold a land having a total surface of 2,732 sq m , located in Iasi, Calea Chisinaului
no. 29, for which it was cashed the price of Lei 2,123,852 (equivalent of Eur 432,257).
On December 31, 2022, the Company revaluated the investment property held at the end of the financial
year, resulting in an increase in the net value of LEI 176,315, the amount was recorded in the Profit of
the year
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
38
15. GOODWILL
COST
December 31,
2022
December 31,
2021
RON
RON
Balance at the beginning of the year
143,461
143,461
Additions from acquisition of subsidiaries
-
-
Impairment of goodwill
-
-
Disposals from sale of subsidiaries
-
-
Balance at the end of the year
143,461
143,461
According to International Financial Reporting Standards, goodwill is reviewed at the end of each
reporting period for any impairment.
16. OTHER INTANGIBLE ASSETS
Licenses
Other
intangible
assets
Intangible
assets in
progress
Total
COST
RON
RON
RON
RON
Balance as at January 1, 2022
1,484,912
1,030,967
-
2,515,879
Additions
36,093
19,619
140,646
196,358
Disposals
269,816
-
-
269,816
Correction
205,131
(205,131)
-
-
Balance as at December 31,
2022
1,456,321
845,455
140,646
2,442,421
Licenses
Other
intangible
assets
Intangible
assets in
progress
Total
COST
RON
RON
RON
RON
Balance as at January 1, 2021
1,437,062
976,205
-
2,413,267
Additions
69,517
54,762
-
124,279
Disposals
21,667
-
21,667
Balance as at December 31,
2021
1,484,912
1,030,967
-
2,515,879
Licenses
Other
Intangible
assets in
progress
Total
intangible
assets
CUMULATED AMORTIZATION
Balance as at January 1, 2022
1,475,043
742,370
-
2,217,413
Additions
118,779
46,945
165,724
Disposals
269,816
0
269,816
Correction
5,242
(5,242)
-
-
Balance as at December 31,
2022
1,329,248
784,073
-
2,113,321
BOOK NET VALUES
Balance as at January 1, 2022
9,869
288,597
-
298,466
Balance as at December 31,
2022
127,072
61,382
140,646
329,100
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
39
17. OTHER FINANCIAL INVESTMENTS
Changes of investment regarding associates and financial assets
December 31,
2022
December 31,
2021
RON
RON
23,324,617
24,469,503
As at January 01
Share of profit / loss of associates (Romgreen)
2,402,566
(1,144,985)
Additions
-
-
Transfer to other comprehensive income
-
-
Sale of the financial investment in Romgreen*
(25,727,183)
-
Net loss on the reduction of partial holdings in Romgreen
-
-
Others
-
99
-
23,324,617
As at December 31
* On 30 December 2022 Recyplat LTD sold the stake of 17,59% held in Romgreen Universal LTD (Green-
Group), for the price of RON 70,253,080 (EUR 14,200,000). Cost of Recyplat investment in Romgreen
Universal LTD was at the date of sale RON 25,727,183.
18. CURRENT INVENTORIES
December 31,
2022
December 31,
2021
RON
RON
Raw materials
27,725,605
26,613,224
Consumables
5,784,577
4,992,101
Items of inventory
116,525
173,624
Packaging
639,801
527,447
Finished products
15,599,417
8,210,274
Production in progress
3,173,535
2,521,525
Semi-finished products
8,153,700
6,146,555
Residual products
43,463
101,982
Commodities
6,894,254
7,112,324
Advances for inventories
109,775
593,889
Impairment allowances for inventories
(2,340,901)
(2,189,286)
Total
65,899,751
54,803,659
In 2022, the Group’s average rotation of the inventrie was 57 days, as compared to 50 days in 2021.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
40
19. TRADE AND OTHER CURRENT RECEIVABLES
December 31,
2022
December 31,
2021
RON
RON
Trade receivables
1
59,556,063
52,965,513
Allowances for doubtful clients
(2,046,324)
(2,100,964)
Taxes recoverable
2,131,900
1,143,375
Other receivables
889,066
973,414
Other non-trade receivables
448,821
72,896
Total
60,979,526
53,054,234
1
The increase in trade receivables is due to the increase in sales with term payment in the sector
Recycled Polymers and Compounds, but also due to the increase in the prices of processed plastics as a
result of the increase in the costs of raw materials .
Changes of allowance for doubtful clients
Year ended
Deecember 31,
Year ended
Deecember
31,
2022
2021
RON
RON
2,100,964
2,087,323
Balance at the beginning of the year
Receivables transferred to expenses during the year
-
-
Decrease of allowance recognized in profit and loss
(54,640)
13,642
2,046,324
2,100,964
Balance at the end of the year
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
41
19. TRADE AND OTHER CURRENT RECEIVABLES (continued)
When determining the recoverability of a receivable, the Group takes into account any change in the receivable’s crediting capacity from the date the loan was
granted, until the reporting date. The level of credit risk is limited given that the client basis is large and the client portfolio is diverse and clients are
independent from each other.
The analysis was made strictly on the balance of the trade receivables account, less uncertain and disputable receivables.
The Group registers adjustments of receivables as per IFRS 9, and specific allowances for doubtful clients.
Therefore, the Group’s management considers that there is no need for an additional provision exceeding the allowance for doubtful debts.
Trade receivables – days past due
31/12/2022
Not past due
<30
31-60
61-90
91-120
>120
Total
Expected loss rate
0.09%
0.16%
0.59%
0.63%
0.81%
1.84%
Total gross carrying
amount of specific
un-provisioned
receivables
44,222,112
6,592,670
535,849
172,581
263,751
883,713
52,670,675
Trade receivables – days past due
31/12/2021
Not past due
<30
31-60
61-90
91-120
>120
Total
Expected loss rate
0.00%
0.01%
0.02%
0.02%
0.03%
0.06%
Total gross carrying
amount of specific
un-provisioned
receivables
40,538,004
4,234,902
2,043,197
269,188
66,999
481,611
47,633,902
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
42
20. OTHER CURRENT FINANCIAL ASSETS
December 31,
2022
December 31,
2021
RON
RON
Short term bank-deposits
263,414
617,902
Total
263,414
617,902
21. OTHER CURRENT NON - FINANCIAL ASSETS
December 31,
2022
December 31,
2021
RON
RON
Suppliers-debtors for services
560,044
638,873
Pre-paid amounts
4,236,642
3,982,678
Total
4,796,687
4,621,551
22. CASH ON HAND AND AT BANKS
Within the meaning of statement of cash flows, cash and cash equivalent include petty cash and bank
accounts. Cash and cash equivalents at the end of the financial year, as presented in the statement of
cash flows, may be reconciled with the corresponding elements of balance sheet, as follows:
December 31,
2022
December 31,
2021
RON
RON
Cash at banks
73,370,121
17,272,872
Cash on hand
36,410
39,880
Cash equivalents
462,530
284,141
Total
73,869,061
17,596,893
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
43
23. ASSETS HELD FOR SALE
The assets held for sale have the following geographical distribution:
Assets held for sale
December 31,
2022
December 31,
2021
RON
RON
Iasi
70,845
70,845
Buzau
3,689,310
3,689,310
Total
3,760,155
3,760,155
In December 2021, it was purchased a building located in the vicinity of Romcarbon SA having a total
area of 3,723 sq m., land together with the three buildings erected on it for a total price of Lei 3,164,050
, equivalent to Eur 639,370. From the acquired building, the surface of 3,450 sq m together with a land
with an area of 3,957 sq m from the company's patrimony will be the object of the sale-purchase
transaction with LIDL Romania, which will materialize in 2022, this building being classified as fixed
assets held for sale.
24. ISSUED CAPITAL
Issued capital
December 31,
2022
December 31,
2021
RON
RON
264,122,096 fully paid ordinary shares (2020: 264,122,096).
The value of one share is LEI 0.1
26,412,210
26,412,210
Inflation effect according to IAS 29
-
-
Total
26,412,210
26,412,210
December31,
December31,
2022
2021
No. of
%
No. of
%
shares
Holding
shares
Holding
Living Plastic Industry SRL
86.774.508
32.85%
86,774,508
32.85%
Joyful River Limited Loc, Nicosia
54,195,089
20.52%
54,195,089
20.52%
Toderita Stefan Alexandru
32,700,000
12.38%
30,600,000
11.59%
Other legal entities
9,815,721
3.72%
11,613,182
4.40%
Other natural persons
80,636,778
30.53%
80,939,317
30.64%
Total
264,122,096
100%
264,122,096
100%
The main characteristics of the securities issued by the parent company: 264,122,096 nominal shares,
dematerialized, at nominal value of LEI 0.1.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
44
25. RETAINED EARNINGS
December 31,
2022
December 31,
2021
RON
RON
Balance at the beginning of the year
49,182,732
49,238,098
Net profit / (net loss) attributable to parent
56,119,419
1,793,730
Reclassification of revaluation reserve to retained earnings
470,016
945,405
Transfers to reserves
(2,141,737)
(26,914)
Corrections of financial assets disposed
-
(155,540)
Dividends paid
(26,412,210)
(2,641,221)
Other
28,945
29,174
Balance at the end of the year
77,247,165
49,182,732
26. OTHER RESERVES
December 31,
2022
December 31,
2021
RON
RON
Revaluation reserves
39,093,925
38,708,540
Legal reserves
5,288,528
4,009,201
Other reserves
19,489,813
18,627,403
Translation differences
(954,589)
(1,117,784)
Total
62,917,677
60,227,360
27. NON-CONTROLLING INTERESTS
December 31,
2022
December 31,
2021
RON
RON
Balance at the beginning of the year
915,581
909,941
Share of profit / (loss) for the year
5,335
(3,118)
Distribution of other capital items
-
-
Decrease of minority holding further to the increase of
parent’s holding
-
-
Corrections at dissolution of subsidiaries
-
8,758
Balance at the end of the year
920,916
915,581
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
45
28. OTHER FINANCIAL LIABILITIES
OTHER CURRENT FINANCIAL
LIABILITIES
OTHER NON - CURRENT
FINANCIAL LIABILITIES
Secured loans
- at amortized cost
December 31,
2022
December 31,
2021
December
31,
2022
December 31,
2021
RON
RON
RON
RON
Borrowings (Overdraft and
Investment loans)
74,737,029
67,635,179
4,044,764
7,623,547
Lease liabilities
-
-
-
-
Total
74,737,029
67,635,179
4,044,764
7,623,547
Short-term bank loans
Entity
31-dec-22
31-dec-21
RON
RON
Credit line in Euro – EximBank SA
Romcarbon
12,333,191
12,290,542
Investment loan II Euro-BRD
Romcarbon
0
515,237
Investment loan III Euro-BRD
Romcarbon
0
65,055
Credit line in Euro – UniCredit Bank SA*
Romcarbon
25,973,635
23,347,205
Credit facility for aquisitions of inventory -
UniCredit Bank SA - I
Romcarbon
0
7,131,743
Credit facility for aquisitions of inventory -
UniCredit Bank SA - RCB&LJI
Romcarbon
3,799,602
0
Investment loan VI in euro- UniCredit Bank
Romcarbon
686,604
341,069
Investment loan VII in euro- UniCredit Bank
Romcarbon
308,880
0
Investment loan Euro - UniCredit Bank SA - CCE
2015 project
Romcarbon
2,757,779
2,152,424
Investment loan in lei I - Eximbank SA
Romcarbon
0
420,086
Credit line in Euro – UniCredit Bank SA
LivingJumbo
Industry
5,027,641
0
Investment loan in lei II - Eximbank SA
Romcarbon
0
596,833
Credit facility for aquisitions of inventory -
UniCredit Bank SA - RCB&LJI
LivingJumbo
Industry
11,042,597
0
Credit line in Euro – EximBank SA
LivingJumbo
Industry
6,336,349
8,825,961
Investment loan Euro - UniCredit Bank SA - CCE
2015 project
LivingJumbo
Industry
2,918,043
3,338,699
Investment loan Euro-UniCredit Bank SA
LivingJumbo
Industry
0
260,203
Investment loan I in Euro -BRD
LivingJumbo
Industry
0
310,676
Multiproduct credit facility (factoring) in lei -
Eximbank SA
LivingJumbo
Industry
2,865,207
145,182
Credit in lei - CEC Bank
LivingJumbo
Industry
0
4,312,663
Credit line in lei - Eximbank SA
EnergoInstall
0
460,887
Credit for current activity in lei - Eximbank SA
EnergoInstall
687,500
3,120,715
Total
74,737,029
67,635,179
Linia de credit contractata cu UniCredit Bank SA are un plafon de 8.000.000 Euro, imprumutati sunt
Romcarbon SA si Livingjumbo Industry SA. Sublimita care va putea fi utilizata de Livingjumbo Industry SA
e de 2.550.000 Euro.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
46
28. OTHER FINANCIAL LIABILITIES (continued)
Long-term bank loans
Entity
31-dec-22
31-dec-21
RON
RON
Investment loan VI in euro- UniCredit Bank
Romcarbon
1,882,602
1,259,422
Investment loan VII in euro- UniCredit Bank
Romcarbon
2,162,161
0
Investment loan Euro - UniCredit Bank SA - CCE
2015 project
Romcarbon
0
2,758,169
Investment loan Euro - UniCredit Bank SA - CCE
2015 project
LivingJumbo
Industry
0
2,918,456
Credit for current activity in lei - Eximbank SA
EnergoInstall
0
687,500
Total
4,044,764
7,623,547
29. TRADE AND OTHER CURRENT PAYABLES
December 31,
2022
December 31,
2021
RON
RON
Trade liabilities
42,006,642
49,203,709
Suppliers invoices not received
1,821,294
1,113,793
Advances to clients
2,094,029
3,287,775
Sundry creditors (a)
1
17,239,540
1,619,388
Miscellaneous payable
-
-
Total
63,161,506
55,224,665
1
Sundry creditors (a), the amount of 15,745,347 lei represents dividends to be paid. Their payment was
made in January 2023.
30. OTHER NON-FINANCIAL LIABILITIES
OTHER CURRENT NON - FINANCIAL
LIABILITIES
OTHER NON-CURRENT NON -
FINANCIAL LIABILITIES
December 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
RON
RON
RON
RON
Subsidies
3,600,219
3,745,692
13,384,594
16,015,575
Other liabilities
6,293,491
3,973,391
-
-
Total
9,893,710
7,719,083
13,384,594
16,015,575
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
47
30. OTHER NON-FINANCIAL LIABILITIES (continued)
VENITURI IN AVANS
As at December 31, 2022 the value of investment subsidies received from the Group amounts to
16,984,813 lei, as follows:
Romcarbon SA: 9,589,166 lei
Livingjumbo Industry SA: 7,395,647 lei
As at December 31, 2021 the value of investment subsidies received from the Group amounts to
19,761,267 lei, as follows:
Romcarbon SA: 10,879,379 lei
Livingjumbo Industry SA: 8,881,888 lei
31. FINANCIAL INSTRUMENTS
(a) Capital risk management
The Group manages its capital to ensure that Group entities will be able to continue as a going concern
while maximizing revenues for shareholders, by optimizing the debt and equity balance.
The Group’s capital consists of liabilities, which include the borrowings presented in note 28, cash and
cash equivalent and equity attributable to the company. Equity comprises the share capital, reserves and
retained earnings as presented in notes 24, 25 and 26.
The management of the Group’s risk also consists in a regular review of the capital structure. As part of
this review, the management takes into account the cost of capital and risks associated with each class
of capital. Based on the management’s recommendations, the Group will balance the general structure of
its capital by dividend payment, issuance of new shares and redemption of shares, as well as by
contracting new debts or settling existing debts.
(b) Main accounting policies
Details of the main accounting policies and methods adopted, including the criteria for recognition, the
basis of measurement and the basis on which income and expenses are recognized, in respect of each
class of financial asset, financial liability and equity instrument are disclosed in Note 2 to the financial
statements.
(c) Objectives of financial risk management
The Group’s treasury function supplies services necessary to the business, coordinates access to national
and international financial market, monitors and manages financial risk related to the Group’s operations
through reports on internal risks, analysing exposure by the degree and extent of risks. Such risks include
market risk (including currency risk, fair value interest rate risk and price risk), credit risk, liquidity risk
and cash flow interest rate risk.
(d) Market risk
The Group’s activities expose it firstly to financial risks regarding the fluctuation of the foreign exchange
rate (see (e) below) and interest rate (see (f) below).
There has been no change in the Group’s exposure to market risks or in the manner the Group manages
and measures risks.
(e) Currency risk management
The Group undertakes transactions denominated in various foreign currencies. Hence, exposures to
exchange rate fluctuations arise. Exchange rate exposures are managed within approved policies .
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
48
31. FINANCIAL INSTRUMENTS (continued)
(f) Interest rate risk management
The Group is exposed to interest rate risk given that Group entities borrow funds both at fixed and at
variable interest. The risk is managed by the Group by maintaining a balance between fixed rate and
variable rate borrowings.
The Group’s exposures to interest rates over financial assets are presented in the section regarding
liquidity risk management under this note.
(g) Other risks regarding prices
The Group is exposed to risks related to equity, arising from equity investments. Equity investments are
held for strategic purposes rather than commercial purposes. The Group does not actively trade such
investments.
(h) Credit risk management
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in
financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy
counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of
financial loss from defaults. The management monitors the Group’s exposure and the credit ratings of its
contractual counterparties.
Trade receivables consist of a large number of clients from various industries and geographical areas.
Credits are constantly assessed as regards the clients’ financial status and, if applicable, credit insurance
is concluded.
The Group does not have any significant credit risk exposure towards any counterparty or any group of
similar counterparties. The Group defines counterparties as having similar characteristics when they are
related entities. At no time during the year has the credit risk percentage exceeded 5% of the gross
monetary assets.
(i) Liquidity risk management
The ultimate responsibility for liquidity risk management rests with the Board of Administration, which
has built a proper liquidity risk management framework regarding the Group funds’ short, medium and
long term insurance and the liquidity management requirements. The Group manages liquidity risk by
maintaining adequate reserves, backup banking facilities and loan facilities, by continually monitoring
cash flows and matching the maturity profiles of financial assets and liabilities. Note 32 includes a list of
additional facilities not drawn, available to the Group in order to further mitigate liquidity risk.
(j) Fair value of financial instruments
The fair values of financial assets and liabilities are determined as follows:
− the fair value of financial assets and liabilities with standard terms and conditions and traded
on active liquid markets are determined by reference to quoted market prices;
− the fair value of other financial assets and liabilities (excluding derivative instruments) is
determined in accordance with generally accepted pricing models based on discounted cash
flow analysis using prices from observable current market transactions; and
− the fair value of derivative instruments is calculated using quoted prices. Where such prices
are not available, use is made of discounted cash flow analysis using the applicable yield curve
for the duration of the instruments for non-optional derivatives, and option pricing models for
optional derivatives.
The financial statements include unlisted share holdings, measured at fair value. The best estimate for
fair value is determined using the historical cost of shares.
The financial instruments in the balance sheet include trade receivables and other receivables, cash and
cash equivalents, short and long term borrowings and other liabilities. The estimated fair values of such
instruments approximate their carrying values. The carrying values represent the Group’s maximum
exposure to credit risks related to existing receivables.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
49
31. FINANCIAL INSTRUMENTS (continued)
The carrying values of the Group’s currencies expressed in monetary assets and liabilities as at the reporting date are as follows:
EUR
USD
Leu
31 Decembrie
1 EUR = 4.9474
1 USD = 4.6346
1
2022
2022
lei
lei
lei
Total
ASSETS
RON
RON
RON
RON
Cash and cash equivalents
66,005,701
256,117
7,607,243
73,869,061
Receivables and other current assets
13,285,565
-
47,693,961
60,979,526
Other current financial assets
-
263,414
263,414
Other current non-financial assets
130,362
-
4,666,325
4,796,687
LIABILITIES
Trade and other liabilities
17,627,848
2,056
45,531,601
63,161,505
Short and long-term borrowings
74,097,100
-
4,684,692
78,781,793
Short and long-term finance lease liabilities
-
-
-
-
Other current non-financial liabilities
208
-
9,893,501
9,893,710
EUR
USD
Leu
31 Decembrie
1 EUR = 4,9481
1 USD = 4,3707
1
2021
2021
lei
lei
lei
Total
ASSETS
RON
RON
RON
RON
Cash and cash equivalents
2,728,892
1,421,134
13,446,868
17,596,893
Receivables and other current assets
14,005,125
-
39,049,109
53,054,234
Other current financial assets
-
-
617,902
617,902
Other current non-financial assets
130,362
-
4,491,190
4,621,551
LIABILITIES
Trade and other liabilities
16,091,168
15,882
39,117,615
55,224,664
Short and long-term borrowings
62,205,375
-
13,053,351
75,258,726
Short and long-term finance lease liabilities
-
-
-
-
Other current non-financial liabilities
208
-
7,718,875
7,719,083
-
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
50
31. FINANCIAL INSTRUMENTS (continued)
The Group is mainly exposed to EUR and USD exchange rates. The following table details the Group’s
sensitivity to a 10% increase and decrease in the LEI against the USD/EUR. 10% is the sensitivity rate
used when reporting foreign currency risk internally to top management and represents management’s
estimate of the reasonably possible changes in foreign exchange rates. The vulnerability analysis
includes only outstanding foreign currency denominated in monetary items and adjusts their translation
at the period end for a 10% change in foreign currency rates. In the following table, a negative number
below indicates a decrease in profit, whereas the LEI weaken 10% against the EUR/USD. For a 10%
strengthening of the LEI against the EUR/USD, there would be an equal and opposite impact on the
profit and other equity, and the balances below will be positive. Changes will be attributable to the
exposure related to EUR borrowings at the end of the year.
December 31,
2022
December 31,
2021
RON
RON
LOSS
(1,204,947)
(6,002,712)
Tables regarding liquidity and interest rate risks
The following tables present the maturity terms of the Group’s financial liabilities.
The tables have been prepared based on the cash flows, not current, of the financial liabilities on the
nearest date when the Group is likely to be claimed payment. The table includes both interest and cash
flows related to principal.
2022
Less than 1
year
1-2 years
2-5
years
Total
RON
RON
RON
RON
Non-interest bearing
Trade liabilities
63,161,505
-
-
63,161,505
Other current liabilities
9,893,710
-
-
9,893,710
Interest bearing instruments
Short and long-term borrowings
74,737,029
2,741,605
1,303,158
78,781,793
Short and long-term leases
-
-
-
-
Non-interest bearing
Cash and cash equivalents
73,869,061
-
-
73,869,061
Receivables and other current assets
60,979,526
-
-
60,979,526
Interest bearing
Other current financial assets
263,414
-
-
263,414
2021
Less than 1
year
1-2 years
2-5
years
Total
RON
RON
RON
RON
Non-interest bearing
Trade liabilities
55,224,664
-
-
55,224,664
Other current liabilities
7,719,083
-
-
7,719,083
Interest bearing instruments
Short and long-term borrowings
67,635,179
7,083,794
539,753
75,258,726
Short and long-term leases
-
-
-
-
Non-interest bearing
Cash and cash equivalents
17,596,893
-
-
17,596,893
Receivables and other current assets
53,054,234
-
-
53,054,234
Interest bearing
Other current financial assets
617,902
-
-
617,902
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
51
32. RELATED PARTY TRANSACTIONS
The transactions among the Parent and its subsidiaries – Group’s related parties – were eliminated from
the consolidation and are not presented under this note. Companies and individuals may be deemed
related parties if one party holds control or exercises significant influence over the other party.
Indemnities granted to top management
The remuneration of managers and other top management members was the following:
Year ended
December
31,
2022
Year ended
December
31,
2021
RON
RON
Executive management salaries
4,927,345
4,128,002
Benefits for Board of Administration
43,731
42,699
Total
4,971,076
4,170,701
The remuneration of managers and executive personnel is determined by the shareholders, depending
on individual performances and market conditions.
Shareholder borrowings
Year ended
December 31,
2022
Year ended
December 31,
2021
RON
RON
WU HUI TZU (Livingjumbo Industry SA)
18,417
18,417
WINPACK INDUSTRY (Eco Pack Management SA)
255,647
242,287
Total
274,064
260,704
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
52
32. RELATED PARTY TRANSACTIONS (continued)
Related party transactions
Sales of goods and
services (w/o VAT)
Purchase of goods and
services (w/o VAT)
Recivables from related
parties
Payables from related
parties
12
Months
2022
12
Months
2021
12
Months
2022
12
Months
2021
31/12/2022
31/12/2021
31/12/2022
31/12/2021
GREENFIBER INTERNATIONAL SA
0
3,660,719
0
33,207
0
5,169
0
2,381
GREENTEH DOO SERBIA
0
0
0
0
0
0
0
0
GRINTEH D.O.O MACEDONIA
0
0
0
0
0
0
0
0
GREENGLASS RECYCLING SA
0
0
0
0
0
0
0
0
GREENTECH SA
5,439,816
3,038,586
95,148
132,661
267,856
1,523
8,444
875
TOTAL WASTE MANAGEMENT
0
0
0
0
0
0
0
0
GREENWEEE INTERNATIONAL SA
684,985
807,988
1,530,631
1,270,053
1,373
0
259,813
215,704
GREEN RESOURCES MANAGEMENT
S.A.
0
5,713
216,374
687,687
0
0
24,466
44,771
ELTEX RECYCLING SRL
4,330
0
0
0
0
0
0
0
TOTAL
6,129,131
7,513,006
1,842,153
2,123,608
269,229
6,692
292,723
263,731
In December 2022, the merger process between GREENFIBER INTERNATIONAL SA, the absorbing company, and GREENTECH SA, the absorbed company was
completed. The new entity operates under the name of GREENTECH SA.
The table shows the transactions from 2022 with GREENFIBER INTERNATIONAL SA and GREENTECH SA accumulated on GREENTECH SA .
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
53
33. ACQUISITION OF SUBSIDIARIES
In 2022 the Group did not purchase new subsidiaries.
34. DISPOSAL OF SUBSIDIARIES
In 2021 the Group did not dispose any subsidiaries
35. COMMITMENTS AND CONTINGENCIES
ROMCARBON SA
Unused credit facilities as at December 31, 2022
The company has unused credit lines in amount of Eur 257,181 (31 December 2021: Eur 797,691) and
investment loans in amount of Eur 2,857,496(31 December 2021: Eur 672,667)
Guarantees for bank loans
At 31 December 2022, tangible assets (land, plants, equipment and machineries)having a net book value
of Lei 68,314,018 (31 December 2021: Lei 80,298,674) constitute collateral for loans and credit lines
contracted by the company with UniCredit Bank SA and EximBank SA. For the loans from the banks, the
Company also guaranteed with the present and future cash availability from the accounts opened with
creditor banks, with inventories of raw materials, materials and goods for sales having a minimum value
of Eur 4,600,000, assigned the present and future receivables, as well as their accessories, coming from
the present and future contracts with specific clients, these having the status of assigned debtors.
Also, the Company assigned the rights resulting from the insurance policies issued with the object of the
immovables and movable goods brought as a guarantee.
Guarantees granted for loans contracted by Group companies
Guarantees granted to LivingJumbo Industry SA for the following loans contracted from
UniCredit Bank SA:
- Non-binding loan – cash line – in amount of Eur 450,000 (due in February 2024), contract
BUZA/044/2016 secured by mortgage on inventories, having a minimum value of Eur
2,000,000;
- Credit line having a ceiling of Eur 2,000,000 (due in 13.12.2023),contract no.
BUZA/152021/CSC, secured by mortgage on 15 equipment having a book net value of Lei
3,068,353 as at December 31, 2022
Guarantees granted to Livingjumbo Industry SA for the credit line contracted from EximBank
SA
- Credit line in amount of EUR 2,000,000 (due on May 25, 2023), Contract 9 -
ABZ/28.05.2020, secured by an immovable property mortgage over the Sutco pre-sorting
equipment, having a net book value of Lei 506,984 as at December 31, 2022, and by a
fidejussio contract concluded between the bank and Romcarbon SA.
Guarantees granted to RC Energo Install SRL for the following loans contracted from
EXIMBANK SA:
1. Credit line in amount of Lei 1,000,000 for financing the current activity (due on May 25, 2023),
guaranteed by movable mortgage of subsequent rank over the movable asset Coperion line (line
for filtering, regrinding and production of compounds in the form of ZSK 70 mc 18 grains),
inventory no. 24781, having a net book value of Lei ,256,266 as at December 31, 2022;
2. Credit line in the amount of lei 4,500,000 for financing the current activity (due on May 19,
2023), guaranteed with a real estate mortgage on 8 equipments owned by Romcarbon SA having
a net book value on 31.12.2022 of Lei 2,381,098
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
54
35. COMMITMENTS AND CONTINGENCIES (continued)
LIVINGJUMBO INDUSTRY SA
Unused credit facilities as at December 31, 2022
The company has unused credit facilities in amount of Eur 4,253,038 and Lei 2,134,793 (31 December
202: Eur 216,293 and Lei 4,042,155).
Guarantees for bank loans
At 31 December 2022, tangible assets consist in equipment and machineries having a net book value of
Lei 21,880,693 (31 December 2021: Lei 25,412,377) constitute collateral for loans and credit lines
contracted by the company with UniCredit Bank SA and EximBank SA. For the loans from the banks, the
Company also guaranteed with the present and future cash availability from the accounts opened with
creditor banks, assigned the present and future receivables, as well as their accessories, coming from the
present and future contracts with specific clients, these having the status of assigned debtors.
Also, the Company assigned the rights resulting from the insurance policies issued with the object of the
immovables and movable goods brought as a guarantee.
RC ENERGO INSTALL SRL
Unused credit facilities as at December 31, 2022
The company has unused credit facilities in amount of Lei 1,000,000 (31 December 2021: Lei 460,887).
Guarantees for bank loans
At 31 December 2022, tangible assets consist in equipment and machineries having a net book value of
Lei 10,122 (31 December 2021: Lei 56,852) constitute collateral for loans and credit lines contracted by
the company with UniCredit Bank SA and EximBank SA. For the loans from the banks, the Company also
guaranteed with the present and future cash availability from the accounts opened with creditor banks.
Also, the Company assigned the rights resulting from the insurance policies issued with the object of the
immovables and movable goods brought as a guarantee.
36. SUBSEQUENT EVENTS
ROMCARBON SA
On 04.01.2023, the amount of Lei 39,418,400, equivalent to Eur 8,000,000, was collected as dividends
from the subsidiary Recyplat LTD. In December 2022 G.S.A of Recyplat LTD decided to distribute the
amount of Eur 9,500,000 as dividends, of which the amount of Eur 1,500,000 was paid in the same month.
On 16.02.2023, it was signed the sale and purchase contract with LIDL ROMANIA S.C.S. the object of
which is the sale of the land area of 7,407 sqm, the total price being Lei 7,659,971. The registration cost
of this land in Non-current assets or disposal groups classified as held for sale or as held for distribution
to owners is Lei 3,689,310.
Initially, in December 2019, a sales-purchase antecontract was signed with LIDL ROMANIA S.C.S. on the
basis of which an advance of Lei 2,419,280 (Eur 488,862) was collected in December 2021, the transaction
being completed in February 2023 when the difference of Lei 5,240,691 was collected.
The decision of the Ordinary General Meeting of Shareholders dated 22.11.2022 approved the distribution
of dividends in the amount of Lei 23,770,989. During December 2022, the amount of Lei 7,775,757 was
transferred to the Central Depository for the partial payment of dividends. The difference was transferred
to the Central Depository at the beginning of January 2023.
LIVINGJUMBO INDUSTRY SA
By the decision of the Board of Directors of the company, the mandates of Ms. Manaila Carmen as Deputy
General Director, of Mr. Cretu Victor as Manager of Operations of the Polypropylene Division and of Mr.
Ungureanu Ion, having the position of Manager of Operations of the PET Division were extended with a
period of 3 years (17.02.2023 - 17.02.2026).
The group did not identify other significant subsequent events.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
ROMCARBON SA
(all amounts are expressed in lei, unless specified otherwise)
55
36. SUBSEQUENT EVENTS (continued)
As of the date of this report, no risks have been identified that would significantly affect the income from
the basic activity, however, the global geopolitical tensions arising from the military interventions in Ukraine
by the Russian Federation have generated and are generating economic uncertainties on the energy and
capital markets, the global prices of energy prices have increased and are expected to be very volatile in
the foreseeable future. At the date of this report, management cannot reliably estimate the effects on the
Company's financial outlook and cannot rule out negative consequences for the business, operations and
financial condition. Management considers that it is taking all necessary measures to support the
sustainability and growth of the Company's business in the current circumstances and that the professional
reasoning in these financial statements remains adequate.
37. AUTORIZATION
The consolidated financial statements were approved by the Board of Directors and were authorized for
issuance on March 27, 2023.
PREPARED BY,
HUANG LIANG NENG,
VIORICA ZAINESCU,
CARMEN MANAILA,
Chairman of the Board
And General Manager
Financial Manager
Deputy General Manager for
Administrative Operations
For signatures, please refer to the original Romanian version.
2/20
2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
BOARD OF DIRECTORS REPORT REGARDING THE CONSOLIDATED FINANCIAL STATEMENTS
ACTIVITY OF THE GROUP
As at December 31, 2022 ROMCARBON SA holds participations directly and/or indirectly in 10 entities:
Company
31.12.2022
Consolidation method
Interest
Control
RECYPLAT LTD CIPRU
100.00%
100.00%
Global
RC ENERGO INSTALL SRL
100.00%
100.00%
Global
ECO PACK MANAGEMENT SA
25.36%
99.88%
Global
LIVINGJUMBO INDUSTRY SA
99.86%
99.86%
Global
INFOTECH SOLUTIONS SRL
99.50%
99.50%
Global
GRINFILD LLC UCRAINA
62.62%
62.62%
Global
GRINRUH LLC UCRAINA
62.62%
62.62%
Global
YENKI SRL
33.34%
33.34%
Equity method
REGISTRUL MIORITA SA
3.79%
3.79%
Outside the consolidation area
KANG YANG BIOTECHNOLOGY CO.LTD
1.95%
1.95%
Outside the consolidation area
In the period 01.01.2022 - 30.12.2022, the Group consolidated through the equity method the holdings held by
Recyplat LTD in Romgreen Universal LTD and its subsidiaries
Company
31.12.2022
Interest
Control
ROMGREEN UNIVERSAL LTD CIPRU
17.5879%
17.5879%
GREENWEEE INTERNATIONAL SA
17.5879%
17.5879%
GREENTECH SA
17.5879%
17.5879%
GREENGLASS RECYCLING SA
12.3116%
12.3116%
GREENFIBER INTERNATIONAL SA
17.5879%
17.5879%
TOTAL WASTE MANAGEMENT SRL
17.5879%
17.5879%
GREEN RESOURCES MANAGEMENT S.A.
11.7259%
11.7259%
GREENTECH BALTIC UAB LITUANIA
17.5879%
17.5879%
ASOCIATIA ECOLOGICA GREENLIFE
17.5879%
17.5879%
GREENTECH SLOVAKIA S.R.O.(EKOLUMI S.R.O)
14.0704%
14.0704%
ELTEX RECYCLING SRL
17.5879%
17.5879%
CIRCULAR VENTURES SA
17.5879%
17.5879%
SENEX SIGAD S.R.L.
12.3490%
12.3490%
In December 2022 Recyplat LTD sold the stake of 17,59% held in Romgreen Universal LTD (Green-Group), for the price
of EUR 14,200,000.
PRESENTATION OF THE GROUP AND THE MAIN INDICATORS ACHIEVED IN 2022
PRESENTATION OF THE GROUP’S MEMBER COMPANIES
As at December 31, 2022 the company was holding directly or through other subsidiaries, participating interest in the
following entities:
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2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
RECYPLAT LTD is a company established in 2011, having a share capital of Lei 112,532 (EUR 26,000) wholly owned by
Romcarbon SA. The company’s main office is located in Akropoleos, 59-61, 3
rd
floor, Nicosia, Cyprus.
The company’s main object of activity is the Conduct of activities and business of consultants, experts in all scientific
fields, financial, administrative or otherwise, in relation to the setting up, operation, development and improvement of
any business, industry, company, partnership or other organization.
RC ENERGO INSTALL S.R.L. is a company established in 2005, with a share capital of lei 2,000, fully owned by Romcarbon
S.A. The company’s main office is located in Buzău, Str. Transilvaniei, nr. 132. The company was established by
outsourcing the maintenance and repair of heating, water installations, sewage and substations; the main object of
activity is Plumbing, heat and air conditioning installation (NACE code 4322).
ECO PACK MANAGEMENT SA is a company established in 2010, with a share capital of lei 1,446,000, where Romcarbon
SA directly holds 25.36% and 74.62% indirectly. The remaining shares are held by Romanian legal persons. The
company’s main office is located in Buzau, 132 Transilvaniei street, Granules Hall, room no.7, 2nd floor. The company’s
main object of activity is Other business support service activities n.e.c. (NACE code 8299). Starting with 10.12.2021,
the company suspended his activity for a period of 3 years.
INFO TECH SOLUTIONS S.R.L. is a company established in 2005, with a share capital of lei 2,000, where Romcarbon S.A.
holds 99.50% of the shares and the remaining shares are held by natural persons. The company’s main office is located
in Buzău, Str. Transilvaniei, nr. 132. The company was established by outsourcing the IT services and its main object of
activity is Other information technology and computer service activities (NACE code 6209).
LIVINGJUMBO INDUSTRY S.A. is a company established in 2002, with a share capital of lei 5,644,800, where Romcarbon
S.A. holds 99.86% of the shares and the remaining shares are held by Romanian legal persons. The company’s main
office is located in Buzău, Str. Transilvaniei, nr. 132. The company’s main object of activity is Manufacture of plastic
packing goods (NACE code 2222).
GRINFILD LLC UKRAINE is a company established in 2007, with a share capital of lei 4,312,062, where Romcarbon SA
holds 62.62% of the shares and the remaining shares are held by foreign legal persons. The company’s main office is
located in Ukraine, Odessa region, Krijianivka locality, Str. Mikolayevska, Bl. 2. The company’s main object of activity is
wholesale. The company ceased its activity in 2012.
GRINRUH LLC UKRAINE is a company established in 2007, with a share capital of lei 4,426,809, where Romcarbon SA
holds 62.62%. The company’s main office is located in Ukraine, Odessa region, Krijianivka locality, Str. Mikolayevska, Bl.
2. The company’s main object of activity is construction and wholesale. The company ceased its activity in 2012.
YENKI S.R.L. is a company established in 2007, with a share capital of lei 328,000, where Romcarbon S.A. holds 33.34%
of the shares and the remaining shares are held by Romanian legal and natural persons. The company’s main office is
located at Soseaua Nordului, DN2, Buzău. The company’s main object of activity is Operation of sports facilities (NACE
code 9311).
Association ‘VIITORUL INCEPE AZI (VIA)”, established in accordance with GO no. 26/2000, is a non-governmental, non-
profit and non-political organization; The association's mission is to improve the quality of technical professional training
and development in the Buza area (Romania), to support and promote the interests and needs of its members in front of
the authorities and/or various bodies, third parties.
The association was established in 2022 by 7 economic operators from Buzau - Voestalpine RAILWAY SYSTEMS ROMANIA
SA, URBIS SERV SRL, LUCSOR IMPEX SRL, URSUS BREWERIES SA, ROMCARBON SA, BENCOMP SRL, GREENFIBER
INTERNATIONAL SA - as founding members, with contribution equal in its patrimony and with equal right to vote in the
General Assembly.
The association's assets, worth 7,000 lei, constituted by the membership contribution of the founding members.
HOLDINGS IN ROMGREEN UNIVERSAL LTD HELD THROUGH RECYPLAT LTD until 30.12.2022
ROMGREEN UNIVERSAL LTD Cyprus is a company established in 2011, with a share capital of lei 177,858 (EUR 39,800),
where Romcarbon SA indirectly holds 17.5879% of the shares through Recyplat LTD Cyprus. The company’s main office
is located in 2 Prodromou & Dimitrakopoulou, 5th floor, 1090, Cyprus. The company’s object of activity is the conduct of
activities and business of consultants, experts in all scientific fields, financial, administrative or otherwise, in relation to
the setting up, operation, development and improvement of any business, industry, company, partnership or other
organization.
“Greenlife” Ecological Association, established in accordance with GO no. 26/2000, is a non-governmental, non-profit and
non-political organization. The association’s patrimony amounts to RON 1,200. The association’s purpose is to represent,
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2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
promote and support the employer and professional interests of its members in the relationship with public authorities
and other legal and natural persons, to consolidate their authority and social renown and to act towards modernizing the
developing the field regarding environmental protection according to the international rules and standards. Also, the
association sets itself to promote human solidarity, by organizing and supporting humanitarian actions.
The association was established by reenfiber International SA, Greentech SA and Romcarbon SA as founding members,
each holding 33.33% of its patrimony. In May 2020, SC Romcarbon SA resigned from its membership in this association,
the place being taken over by Greenweee International SA. After this change, the indirect ownership of Romcarbon SA in
the association is 17.59%.
GREENWEEE INTERNATIONAL SA is a company established in 2007, with a share capital of lei 28,827,300, where
Romcarbon SA indirectly holds 17.5879% of the shares. The company’s main office is located in Buzău, Comuna Tintesti,
Str. Ferma Frasinu. The company’s object of activity is Dismantling of wrecks for materials recovery (NACE code 3831).
On 31.12.2019 GREENWEEE INTERNATIONAL SA (absorbing company) merged with GREENLAMP RECICLARE S.A.
(absorbed company). As a result of the merger process, the share capital of GREENWEEE INTERNATIONAL SA increased
from lei 26,212,300 to lei 28,827,300 , issuing 26,150 new shares with a nominal value of lei 100.
GREENTECH SA is a company established in 2002, with a share capital of lei 4,649,117, where Romcarbon SA indirectly
holds LTD 17.5879% of the shares. The company’s main office is located in Buzău, Aleea Industriilor, nr. 17. The
company’s main object of activity is Recovery of sorted materials (NACE code 3832).
GREENFIBER INTERNATIONAL SA is a company established in 2004, with a share capital of lei 35,250,000, where
Romcarbon SA indirectly holds 17.5879% of the shares. The company’s main office is located in Buzău, Aleea Industriilor,
nr. 17. The company’s main object of activity is Manufacture of man-made fibres (NACE code 2060).
In December 2022, the merger process between GREENFIBER INTERNATIONAL SA, the absorbing company,
and GREENTECH SA, the absorbed company, the new entity named GREENTECH SA, was completed.
TOTAL WASTE MANAGEMENT SRL is a company established in 2005. In 2012, it changed its object of activity from
Business and other management consultancy activities (NACE code 7022) to Collection of non-hazardous waste (NACE
code 3811). The company’s share capital is lei 19,442,580. The company’s main office is located in Buzău, Str. Aleea
Industriilor, nr. 17. As at the date of these financial statements, Romcarbon SA was indirectly holding 17.5879% of the
share capital.
GREENGLASS RECYCLING SA is a company established in 2013, where Romcarbon SA indirectly holds 12.3116% of the
shares. The remaining shares are held by natural and legal persons. The company’s share capital is lei 6,750,000. The
company’s main office is located in Ilfov, Popeşti Leordeni Şos. OLTENIŢEI 181, Corp Administrativ. The company’s main
object of activity is Recovery of sorted materials (NACE code 3832).
GREEN RESOURCES MANAGEMENT is a company established in 2016, having a share capital of lei 400,000 where
Romcarbon SA indirectly holds 11.73%. The company’s main office is located in Bucharest, sector 2, Barbu Vacarescu
164A Barbu Vacarescu stret, etaj 3, within Building C3 – Office Building, room 18-22. The company’s main object of
activity is Other business support service activities n.e.c. (NACE code 8299).
GREENTECH BALTIC UAB LITUANIA is a company established in 2016 where Romcarbon SA indirectly holds 17.5879%.
The company’s main office is located in Vilnius, Sandeliu g.16. The company’s share capital is lei 8,444,696 (EUR
1,852,500). The company’s object of activity is commercial, economic, financial and industrial activity.
GREENTECH SLOVAKIA S.R.O. (EKOLUMI s.r.o) is a company established in 2010 where Romcarbon SA indirectly holds
14.07% and the remaining shares are held by foreing natural persons. The company’s share capital is lei 17,829,227
(EUR 3,705,000). The company’s main office is located in Slovakia, Partizánska cesta 4634, Banská Bystrica. The
company’s object of activity is collection of non-hazardous waste (NACE code 3811).
ELTEX RECYCLING SRL is a company established in 2014 having a share capital of lei 50,000 where Romcarbon SA
indirectly holds 17.5879%. The company’s main office is located in Oradea, 5 Octavian Goga street. The company’s
object of activity is Treatment and disposal of non-hazardous waste (NACE code 3821).
In December 2020, Romgreen Universal LTD sold its holdings in GREENTECH DOO SERBIA and GRINTEH MK DOO
MACEDONIA.
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2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
CIRCULAR VENTURES SA is a company established in 2022 having a share capital of lei 9,000 where Romcarbon SA
indirectly holds 17.5879%. The company’s main office is located in 165 Calea Floreasca, OneTower, 11 Floor, District 1,
Bucuresti. The company’s main object of activity is Other business support service activities n.e.c. (NACE code 8299).
PRESENTATION OF THE GROUP COMPANIES
The following persons ensured the executive management of the group companies in 2022:
ROMCARBON SA – General Manager – Huang Liang Neng
RECYPLAT LTD CYPRUS – Director – Nicos Avraamides
RC ENERGO INSTALL SRL – General Manager Duca Eugen Florin
ECO PACK MANAGEMENT SA –Sole administrator WEY, JIANN-SHYANG
INFO TECH SOLUTIONS SRL- General Manager Hristache Cornel
LIVINGJUMBO INDUSTRY SA – General Manager WU,HUI-TZU
GRINFILD LLC UKRAINE – The company has not been operating since 2012
GRINRUH LLC UKRAINE – The company has not been operating since 2012
YENKI SRL – Administrator Petre Romeo Florinel
ROMGREEN UNIVERSAL LTD CYPRUS– Nicos Avraamides, Constantinos Chiotis, Grzegorz Adam Piejka, Nicolaos
Koronis, Paulina Anna Pietkiewicz
GREENGLASS RECYCLING SA – General Manager Costache Iulian Marius
GREENWEEE INTERNATIONAL SA – General Manager Costache Iulian Marius
TOTAL WASTE MANAGEMENT SRL – Administrators – Genes Alina Elena, Stanculescu Adrian, Enache Pommer Matei
GREENTECH SA General Manager Genes Alina Elena
GREENFIBER INTERNATIONAL SA – General Manager Genes Alina Elena
GREENWEEE INTERNATIONAL SA – General Manager Costache Marius Iulian
GREEN RESOURCES MANAGEMENT S.A – General Manager –Bratu Constantin
GREENTECH BALTIC UAB LITHUANIA – Administrator VLADAS VENSKUTONIS
GREENTECH SLOVAKIA S.R.O. – Administrators – Michal Figur, Lukas Cierny
ELTEX RECYCLING SRL – Administrators – Marin Georgian Ionut, Bartha Zoltan, Costache Marius Iulian
CIRCULAR VENTURES SA – Administrators – Costache Marius Iulian, Vorosciuc Gabriela, Stoica Serban Andrei
SENEX SIGAD S.R.L. – Administrators – Costache Marius Iulian, Dobrin Andrei, Stoica Serban Andrei
ACTIVITY OF THE GROUP OF COMPANIES
The evolution of the subsidiaries’ contribution to the consolidated net profit of the group in 12 Months 2022 is
presented in the table below:
Company
12 Months
12 Months
2022 vs 2021
2021
2022
Romcarbon SA (without impact of the GreenGroup Share
transaction)
(1,447,458)
5,687,332
7,134,790
Profit from Green-Group share tranzactions after
adjustment
-
45,784,358
45,784,358
Livingjumbo Industry SA
(2,319,221)
3,477,122
5,796,343
RC Energo Install SRL
295,381
1,162,130
866,749
Infotech Solutions SRL
63,728
116,305
52,577
Eco Pack Management SA
(24,810)
(14,914)
9,896
Elimination of the unrealized profit related to the raw material
inventories and fixed assets from the Group companies
(109,309)
(115,397)
-6,088
Recyplat Ltd Cipru
(346)
-
346
Share of the profit of the associates (Romgreen Universal LTD)
(1,144,985)
-
1,144,985
Elimination of the financial investment impairment in LivingJumbo
6,477,632
-
(6,477,632)
Other adjustments
-
27,819
27,819
Total
1,790,612
56,124,755
54,334,143
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2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
The main indicators of the Statement of profit or loss registered by the two major companies of the Group, Romcarbon
SA and Livingjumbo Industry SA, according to their Standalone Financial Statements
Indicator
12 Months of
2020
12 Months of
2021
12 Months of
2022
2022 vs 2021
Turnover
182,851,592
266,937,601
265,048,638
(1,888,963)
-1%
EBITDA Operational
12,374,754
13,987,048
15,025,300
1,038,253
7%
Profit
869,104
(1,447,458)
51,471,690
52,919,148
n/a
From EBITDA Operational to Net Profit
Indicator
(12 luni)
12 Months of
2020
12 Months of
2021
12 Months of
2022
2022 vs 2021
EBITDA Operational
12,374,754
13,987,049
15,025,300
1,038,251
7%
Fixed assets depreciation
(10,202,833)
(9,977,583)
(9,609,158)
368,425
-4%
Revenues from subsidy from Government
for investments
2,262,431
2,259,451
2,206,664
(52,787)
-2%
Interest expenses
(1,159,858)
(953,055)
(1,286,399)
(333,344)
35%
Gain/loss from sales of assets
(350,498)
432,513
2,106,927
1,674,414
387%
Gain/loss from revaluation of fixed assets
and investment properties
(278,663)
1,377,918
(1,199,108)
(2,577,026)
n/a
Other non-operational items(provisions,
penalties, donations)
(618,688)
(715,608)
(2,244,793)
(1,529,184)
214%
Forex gain/loss
(948,390)
(654,633)
274,153
928,785
-142%
Other gain/loss from Financial
29,147
(6,314,423)
47,110,176
53,424,600
n/a
Tax on profit
(238,297)
(889,087)
(912,071)
(22,984)
3%
Net Profit/Loss
869,104
(1,447,458)
51,471,690
52,919,148
n/a
Indicator
12 Months of
2020
12 Months of
2021
12 Months of
2022
2022 vs 2021
Turnover
110,666,945
133,415,290
164,064,764
30,649,474
23%
EBITDA Operational
5,055,294
2,349,885
8,164,661
5,814,776
247%
Profit
538,251
(2,319,221)
3,477,122
5,796,343
n/a
From EBITDA Operational to Net Profit
Indicator
12 Months of
2020
12 Months
of 2021
12 Months
of 2022
2022 vs 2021
EBITDA Operational
5,055,294
2,349,885
8,164,661
▲
5,814,776
Fixed assets depreciation
(4,860,955)
(4,748,269)
(4,829,234)
▲
(80,965)
Revenues from subsidy from Government for
investments
1,519,521
1,486,241
1,486,241
▬
-
Interest expenses
(562,603)
(657,540)
(895,464)
▲
(237,924)
Gain/loss from sales of assets
467,444
-
-
▬
-
Other non-operational items(provisions,
penalties, donations)
(67,106)
(355,245)
(345,627)
▼
9,618
Forex gain/loss
(353,573)
(353,372)
(46,915)
▼
306,457
Other gain/loss from Financial
(659,771)
(40,921)
(56,540)
▲
(15,619)
Net Profit/Loss
538,251
(2,319,221)
3,477,122
▲
5,796,343
ROMCARBON SA
LIVINGJUMBO INDUSTRY SA
6/20
2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
Presentation of the evolution of the key indicators on production sectors – 12 Months
Indicator
12 Months of 2020
12 Months of 2021
12 Months of 2022
2022 vs 2021
ROMCARBON
PLASTIC PROCESSING SECTOR : POLYETHYLENE
Turnover
27,663,389
36,047,057
36,512,692
465,636
1%
EBITDA before overhead
746,474
3,051
2,439,836
2,436,785
79859%
Profit before overhead
(126,044)
(779,566)
1,697,246
2,476,812
n/a
PLASTIC PROCESSING SECTOR : POLYSTYRENE
Turnover
41,113,965
51,040,479
54,425,638
3,385,159
7%
EBITDA before overhead
11,000,107
9,725,267
7,382,299
(2,342,967)
-24%
Profit before overhead
9,487,524
8,335,220
6,131,441
(2,203,779)
-26%
PLASTIC PROCESSING SECTOR : POLYPROPYLENE
Turnover
34,770,909
42,780,899
40,326,620
(2,454,278)
-6%
EBITDA before overhead
4,618,128
4,719,369
3,454,650
(1,264,720)
-27%
Profit before overhead
4,305,035
4,394,850
3,129,217
(1,265,633)
-29%
RECYCLED POLYMERS & COMPOUNDS
Turnover
23,436,682
40,009,626
51,224,339
11,214,713
28%
EBITDA before overhead
2,956,979
5,811,810
6,952,632
1,140,822
20%
Profit before overhead
(757,367)
1,930,489
3,094,107
1,163,618
60%
OTHER PRODUCTIVE SECTORS : FILTERS, ACTIVE CARBON, PROTECTIVE EQUIPMENT, PVC TRAFFIC BASE SIGNS
Turnover
5,546,725
5,876,115
9,569,410
3,693,295
63%
EBITDA before overhead
1,045,305
743,723
2,933,897
2,190,174
294%
Profit before overhead
719,032
429,011
2,623,639
2,194,628
512%
LIVINGJUMBO
INDUSTRY
PLASTIC PROCESSING SECTOR : POLYPROPYLENE
Turnover
57,605,412
70,185,696
87,305,549
17,119,853
24%
EBITDA before overhead
5,122,265
4,090,236
9,554,043
5,463,807
134%
Profit before overhead
4,252,578
3,356,297
8,842,685
5,486,389
163%
PLASTIC PROCESSING SECTOR : PET
Turnover
53,061,537
63,229,595
76,759,215
13,529,620
21%
EBITDA before overhead
4,072,995
2,532,900
3,208,616
675,716
27%
Profit before overhead
1,607,215
4,811
576,980
572,169
11893%
Note: In the indicator «Turnover» are included in addition to Sales of finished goods, the sales of commodities, services and other sales of the Production
sectors.
7/20
2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
FINANCIAL STATEMENTS
A.)STATEMENTS OF THE FINANCIAL POSITION
Indicator
31.12.2020
31.12.2021
31.12.2022
2022 vs. 2021
Property, plant and equipment
144,756,737
132,497,914
123,886,765
-8,611,149
▼
-6.50%
Investment property
11,885,346
10,894,586
9,883,738
-1,010,848
▼
-9.28%
Goodwill
143,461
143,461
143,461
0
▲
0.00%
Intangible assets other than goodwill
323,176
298,466
329,100
30,634
▲
10.26%
Investments accounted for using
equity method
24,469,503
23,324,617
0
-23,324,617
▼
-100.00%
Investments in subsidiaries, joint
ventures and associates
196,964
196,974
297,974
101,000
▲
51.28%
Other non-current financial assets
100,000
0
1,898
1,898
▲
#DIV/0!
Total non-current assets
181,875,186
167,356,018
134,542,936
-
32,813,082
▼
-19.61%
Current inventories
39,267,786
54,803,659
65,899,751
11,096,092
▲
20.25%
Trade and other current receivables
36,180,344
53,054,234
60,979,526
7,925,292
▲
14.94%
Other current financial assets
181,047
617,902
263,414
-354,488
▼
-57.37%
Other current non-financial assets
1,236,391
4,621,551
4,796,687
175,136
▲
3.79%
Cash and cash equivalents
20,704,632
17,596,893
73,869,061
56,272,168
▲
319.78%
Non-current assets classified as held
for sale
70,845
3,760,155
3,760,155
0
▬
0.00%
Total current assets
97,641,045
134,454,393
209,568,594
75,114,201
▲
55.87%
ASSETS
279,516,232
301,810,411
344,111,530
42,301,119
▲
14.02%
Issued capital
26,412,610
26,412,210
26,412,210
0
▼
0.00%
Share premium
2,182,283
2,182,283
2,182,283
0
▬
0.00%
Reserves
60,969,177
60,227,360
62,917,677
2,690,317
▲
4.47%
Retained earnings
49,237,598
49,182,732
77,247,165
28,064,433
▲
57.06%
Equity attributable to equity holders
of the parent
138,801,669
138,004,585
168,759,335
30,754,750
▲
22.29%
Non-controlling interests
909,941
915,581
920,916
5,335
▲
0.58%
Total equity
139,711,610
138,920,166
169,680,251
30,760,085
▲
22.14%
Other non-current provisions
446,038
659,623
1,429,017
769,394
▲
116.64%
Deferred tax liabilities
7,852,871
8,012,574
7,780,659
-231,915
▼
n/a
Other non-current financial liabilities
17,856,699
7,623,547
4,044,764
-3,578,783
▼
-46.94%
Other non-current non-financial
liabilities
19,761,267
16,015,575
13,384,594
-2,630,981
▼
-16.43%
Total non-current liabilities
45,916,875
32,311,319
26,639,034
-5,672,285
▼
-17.56%
Trade and other current payables
33,374,994
55,224,664
63,161,506
7,936,842
▲
14.37%
Other current financial liabilities
52,867,565
67,635,179
74,737,029
7,101,850
▲
10.50%
Other current non-financial liabilities
7,645,188
7,719,083
9,893,710
2,174,627
▲
28.17%
Total current liabilities
93,887,747
130,578,927
147,792,245
17,213,318
▲
13.18%
Total liabilities
139,804,622
162,890,245
174,431,279
11,541,034
▲
7.09%
TOTAL EQUITY AND LIABILITIES
279,516,232
301,810,411
344,111,530
42,301,119
▲
14.02%
8
2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
The participation of the consolidated companies in the indicators of the Statement of Financial Position in 2022 is
presented in the table below
Company
Non-current
assets
Current assets
Non-current
liabilities
Current
liabilities
Romcarbon SA
133,313,885
146,753,533
20,300,611
99,543,850
Livingjumbo Industry SA
22,980,200
62,716,657
6,338,423
77,541,777
RC Energo Install SRL
61,474
13,685,282
0
8,371,709
InfoTech Solutions SRL
56,899
1,011,765
0
699,915
Grinfild Ucraina
4,426,809
8,614
0
879,485
Grinruh Ucraina
1,186,187
1,007,788
0
6,728
Recyplat LTD
62,838,622
0
39,579,200
Eco Pack Management SA
28,751
163,993
0
882,288
Ajustari consolidare
(27,511,269)
(78,617,659)
0
(79,712,706)
Total
134,542,936
209,568,594
26,639,034
147,792,245
218,141,982
198,403,906
181,875,186
167,356,018
134,542,936
93,356,911
100,619,243
97,641,045
134,454,393
209,568,594
2018 2019 2020 2021 2022
Total non-current assets vs. Total current assets
Total non-current assets Total current assets
70%
66%
65%
55%
39%
30%
34%
35%
45%
61%
311,498,893
299,023,149
279,516,232
301,810,411
344,111,530
2018 2019 2020 2021 2022
Total non-current assets vs. Total current assets
Total non-current assets Total current assets Total
STRUCTURE OF THE FINANCIAL POSITION AS AT 31.12.2022
Non-current
assets
39%
Current assets
61%
49%
8%
43%
Current liabilities: 147,792,245 RON | 43%
Non-current liabilities: 26,639,034 RON | 8%
Equityi: 169,680,251 RON | 49%
Non-current assets: 134,542,936 RON | 39%
Current assets: 209,568.594 RON | 61%
ASSETS
9/20
2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
Non-current assets have
a weight in Total Assets of
39.20% recording a
decrease of - LEI
32,813,082, i.e. – 19.61%,
as compared with the
begining of the year.
Non-current assets
(lei)
31/12/2022
% in total
NCA
% in total
Assets
2022 vs.
2021
Property, plant and equipment
123,886,765
92.08%
36.00%
-6.50%
Investment property
9,883,738
7.35%
2.87%
-9.28%
Goodwill
143,461
0.11%
0.04%
0.00%
Intangible assets other than goodwill
329,100
0.24%
0.10%
10.26%
Investments accounted for using equity method
0
0.00%
0.00%
-100.00%
Investments in subsidiaries, joint ventures and
associates
297,974
0.22%
0.09%
51.28%
Other non-current financial assets
1,898
0.00%
0.00%
n/a
Total non-current assets
134,542,936
100.00%
39.10%
-19.61%
Current assets have a
weight in Total Assets of
60.90% recording an
increase of LEI
75,114,201, i.e. 55.87%,
as compared with the
begining of the year.
Current assets
(lei)
31/12/2022
% in total CA
% in Total
Assets
2022 vs.
2021
Current inventories
65,899,751
31.45%
19.15%
20.25%
Trade and other current receivables
60,979,526
29.10%
17.72%
14.94%
Other current financial assets
263,414
0.13%
0.08%
-57.37%
Other current non-financial assets
4,796,687
2.29%
1.39%
3.79%
Cash and cash equivalents
73,869,061
35.25%
21.47%
319.78%
Non-current assets classified as held for sale
3,760,155
1.79%
1.09%
0.00%
Total current assets
209,568,594
100.00%
60.90%
55.87%
134,542,936
19,738,076
16,528,720
14,519,169
32,813,082
-
-
-
-
218,141,982
2019 2020 2021 2022
Evolution of the item Total non-current assets in the period 2018-2022
209,568,594
-
2,978,197
-
-
7,262,332
-
36,813,348
75,114,201
93,356,911
2019 2020 2021 2022
Evolution of the item Total current assets in the period 2018-2022
NON-CURRENT ASSETS
CURRENT ASSETS
10/20
2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
Total Liabilities hold 50.69% of the Group ’s Equity&Liabilities recording an increase of Lei 11,541,034 , i.e. 7.09%, as
compared with the beginning of the year.
BORROWINGS
STRUCTURE OF BORROWINGS
Company
2021
2022
2022 vs 2021
Romcarbon, total, out of which:
50,877,784
49,904,456
(973,329)
< 12 months
46,860,194
45,859,692
(1,000,502)
> 12 months
4,017,591
4,044,764
27,173
LivingJumbo Industry, total, out of
which:
20,111,839
28,189,837
8,077,998
< 12 months
17,193,383
28,189,837
10,996,454
> 12 months
2,918,456
-
(2,918,456)
EnergoInstall, total, out of which:
4,269,102
687,500
(3,581,602)
< 12 months
3,581,602
687,500
(2,894,102)
> 12 months
687,500
-
(687,500)
Total borrowings, out of which:
75,258,726
78,781,793
3,523,067
< 12 months
67,635,179
74,737,029
7,101,850
> 12 months
7,623,547
4,044,764
(3,578,783)
73,752,954
55,632,771
45,916,875
32,311,319
26,639,034
95,178,722
103,829,238
93,887,747
130,578,927
147,792,245
2018 2019 2020 2021 2022
Total non-current liabilities vs. Total current liabilities
Total non-current liabilities Total current liabilities
44%
35%
33%
20%
15%
56%
65%
67%
80%
85%
168,931,676
159,462,009
139,804,622
162,890,245
174,431,279
2018 2019 2020 2021 2022
Total non-current liabilities vs. Total current liabilities
Total non-current liabilities Total current liabilities Total
37,264,631
23,513,246
17,856,699
7,623,547
4,044,764
52,606,680
60,426,062
52,867,565
67,635,179
74,737,029
2018 2019 2020 2021 2022
Other non-current financial liabilities vs. Other current
financial liabilities
Other non-current financial liabilities
Other current financial liabilities
41%
28%
25%
10%
5%
59%
72%
75%
90%
95%
89,871,311
83,939,309
70,724,264
75,258,726
78,781,793
2018 2019 2020 2021 2022
Other non-current financial liabilities vs. Other current
financial liabilities
Other current financial liabilities
Other non-current financial liabilities
Total
LIABILITIES
RAPORT ANUAL PRIVIND SITUATIILE FINANCIARE CONSOLIDATE
Current liabilities of the
Group have a weight in
Total Liabilities of 84.73%
and in Total Equity and
Liabilities of 42.95%
recording an increase of
LEI 17,213,318, i.e.
13.18%, as compared with
the begining of the year.
Current liabilities
(lei)
31/12/2022
% in total
liabilities
% in
Total
Current
liabilities
% in
Total
Equity
and
liabilities
2022 vs
2021
Trade and other current payables
63,161,506
36.21%
42.74%
18.35%
14.37%
Other current financial liabilities
74,737,029
42.85%
50.57%
21.72%
10.50%
Other current non-financial liabilities
9,893,710
5.67%
6.69%
2.88%
28.17%
Total current liabilities
147,792,245
84.73%
100.00%
42.95%
13.18%
Non-current liabilities
have a weight in Total
Equity and Liabilities of
7.74% recording a
decrease of - LEI
5,672,285, i.e. -17.56%,
as compared with the
begining of the year.
Non-current liabilities
(lei)
31/12/2022
% in
total
liabilities
% in
Total
Non-
current
liabilities
% in
Total
Equity
and
liabilities
2022 vs
2021
Other non-current provisions
1,429,017
0.82%
5.36%
0.42%
116.64%
Deferred tax liabilities
7,780,659
4.46%
29.21%
2.26%
-2.89%
Other non-current financial liabilities
4,044,764
2.32%
15.18%
1.18%
-46.94%
Other non-current non-financial liabilities
13,384,594
7.67%
50.24%
3.89%
-16.43%
Total non-current liabilities
26,639,034
15.27%
100.00%
7.74%
-17.56%
147,792,245
-
9,941,491
-
-
8,650,516
-
36,691,180
17,213,318
95,178,722
2019 2020 2021 2022
Evolution of the item Total current liabilities in the period 2018-2022
26,639,034
18,120,183
9,715,896
13,605,557
5,672,285
-
-
-
-
73,752,954
2019 2020 2021 2022
Evolution of the item Total non-current liabilities in the period 2018-2022
CURRENT LIABILITIES
NON-CURRENT LIABILITIES
14/20
2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
The Equity have a weight
in Total Equity and
Liabilities of 49.31%
recording an increase of
LEI 30,760,085, i.e.
22.14%, as compared with
the begining of the year.
Equity
31/12/2022
2022 vs
2021
Issued capital
26,412,210
0.00%
Share premium
2,182,283
0.00%
Reserves
62,917,677
4.47%
Retained earnings
77,247,165
57.06%
Equity attributable to equity holders of the parent
168,759,335
22.29%
Non-controlling interests
920,916
0.58%
Total equity
169,680,251
22.14%
169,680,251
3,006,078
-
791,444
-
-
150,471
-
30,760,085
142,567,217
2019 2020 2021 2022
Evolution of the item Total equity in the period 2018-2022
EQUITY
13/20
2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
B.)STATEMENT OF THE COMPREHENSIVE INCOME
Indicator (lei)
12 Months of
2020
12 Months of
2021
12 Months of
2022
2022 vs.2021
Revenue
256,828,358
341,319,436
381,985,677
▲
40,666,241
12%
Other Income
4,418,916
4,291,042
4,287,141
▼
(3,901)
0%
Increase (decrease) in
inventories of finished goods and
work in progress
(1,549,135)
4,710,209
11,496,807
▲
6,786,598
144%
Raw materials,consumables,
commodities and utilities used
(150,122,594)
(235,396,370)
(263,732,961)
▲
(28,336,591)
12%
Employee benefits expense
(70,282,433)
(73,746,328)
(78,261,063)
▲
(4,514,735)
6%
Depreciation and amortisation
expenses
(15,272,031)
(14,897,799)
(14,538,409)
▼
359,390
-2%
Other expenses
(18,739,100)
(21,382,633)
(30,646,145)
▲
(9,263,512)
43%
Other gains (losses)
802,760
1,936,380
2,276,748
▲
340,368
18%
Profit (loss) from operating
activities
6,084,741
6,833,937
12,867,795
▲
6,033,858
88%
Finance Income
89,608
85,170
290,047
▲
204,878
241%
Net gain/(loss) on disposal of
financial investments
-
-
44,525,895
▲
44,525,895
n/a
Finance costs
(3,426,116)
(3,054,857)
(2,894,705)
▼
160,152
-5%
Share of profit of associates
(GREEN-GROUP)
(2,564,549)
(1,144,985)
2,402,565
▲
3,547,550
-310%
Profit / (loss) before tax
183,684
2,719,265
57,191,597
▲
54,472,332
2003%
Tax income (expense)
(267,650)
(928,652)
(1,066,842)
▲
(138,190)
15%
Profit (loss) of the year,
attributable to
(83,966)
1,790,612
56,124,755
▲
54,334,143
3034%
Equity holders of the parent
(86,818)
1,793,730
56,119,419
▲
54,325,689
3029%
Minority interest
2,852
(3,118)
5,336
▲
8,454
-271%
Profit (loss) from continuing
operations
(83,966)
1,790,612
56,124,755
▲
54,334,143
3034%
Differences from foreign
operations
12,170
115
-
▼
(115)
-100%
Loss/gain from revaluation of
fixed assets
-
-
745,264
▲
745,264
n/a
Deffered profit tax alocated to
the comprehensive income
289,186
21,017
273,332
▲
252,315
1201%
Comprehensive income of
the year, attributable to:
217,390
1,811,744
56,398,087
▲
54,586,343
3013%
Equity holders of the parent
214,538
1,814,862
56,392,751
▲
54,577,889
3007%
Minority interest
2,852
(3,118)
5,336
▲
8,454
-271%
Indicator
12 Months of
2020
12 Months of
2021
12 Months of
2022
2022 vs.2021
EBITDA OPERATIONAL
17,752,992
16,824,568
24,700,499
▲
7,875,931
47%
Indicator
12 Months of
2020
12 Months of
2021
12 Months
of
2022
Av. number of employees
1,470
1,440
1,338
14/20
2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
From EBITDA OPERATIONAL to NET PROFIT
Indicator
12 Months of
2020
12 Months of
2021
12 Months of
2022
2022 vs 2021
EBITDA OPERATIONAL
17,752,992
16,824,568
24,700,499
▲
7,875,931
47%
Fixed assets depreciation
(15,272,031)
(14,897,799)
(14,538,409)
▼
359,390
-2%
Revenues from subsidy from
Government for investments
3,781,951
3,745,692
3,692,905
▼
(52,787)
-1%
Interest expenses
(1,789,198)
(1,657,222)
(2,364,092)
▲
(706,870)
43%
Gain/loss from sales of assets
85,857
(85,226)
1,191,313
▲
1,276,539
n/a
Net gain/loss from revaluating the
investment properties and fixed assets
(278,663)
1,377,918
(1,199,108)
▼
(2,577,026)
-187%
Other non-operational
items(provisions,penalities, donations)
(303,722)
(483,113)
(1,475,250)
▲
(992,137)
205%
Forex gain/loss
(1,309,826)
(1,037,861)
71,335
▼
1,109,196
n/a
Share of profit / loss of associates
(2,564,549)
(1,144,985)
2,402,565
▲
3,547,550
-n/a
Net gain/(loss) on disposal of financial
investments
-
-
44,525,895
▲
44,525,895
0%
Other gain/loss from Financial
80,873
77,291
183,944
▲
106,653
138%
Tax on profit
(267,650)
(928,652)
(1,066,842)
▲
(138,190)
15%
NET PROFIT
(83,966)
1,790,611
56,124,755
▲
54,334,144
3034%
15/20
2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
On quarters, the Statement of the comprehensive income has the following evolution:
Income statement
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 : 2022
vs 2021
Q2 : 2022
vs 2021
Q3 : 2022
vs 2021
Q4 : 2022
vs 2021
Revenue
95,365,144
97,686,287
95,775,679
93,158,567
21,521,163
15,825,876
3,704,187
(384,986)
Other Income
1,073,659
1,095,422
1,074,311
1,043,749
2,900
25,148
8,532
(40,481)
Increase (decrease) in
inventories of finished goods
and work in progress
6,403,775
902,457
(1,185,374)
5,375,949
3,868,781
(1,806,224)
(329,803)
5,053,844
Raw materials,consumables,
commodities and utilities used
(67,381,271)
(65,457,740)
(64,470,503)
(66,423,447)
(17,949,516)
(10,275,088)
(272,094)
160,107
Employee benefits expense
(18,971,412)
(19,796,619)
(19,594,716)
(19,898,316)
(737,844)
(735,384)
(1,339,386)
(1,702,121)
Depreciation and amortisation
expenses
(3,691,727)
(3,666,881)
(3,602,325)
(3,577,476)
54,079
39,795
126,561
138,955
Other expenses
(9,044,823)
(5,028,616)
(4,789,918)
(11,782,788)
(3,968,062)
(402,471)
(127,740)
(4,765,239)
Other gains (losses)
41,189
26,086
171,529
2,037,944
(76,486)
(138,341)
39,660
515,535
Profit (loss) from operating
activities
3,794,535
5,760,395
3,378,683
(65,818)
2,715,015
2,533,312
1,809,917
(1,024,386)
Finance Income
52,855
2,034
72,943
162,216
11,846
(16,293)
58,885
150,440
Net gain/(loss) on disposal of
financial investments
-
-
-
44,525,895
-
-
-
44,525,895
Finance costs
(581,933)
(749,410)
(874,435)
(688,927)
545,041
(195,942)
(179,522)
(9,426)
Share of profit of associates
(GREEN-GROUP)
1,583,476
1,374,247
867,591
(1,422,749)
843,600
(252,216)
376,591
2,579,575
Profit / (loss) before tax
4,848,934
6,387,265
3,444,781
42,510,617
4,115,503
2,068,861
2,065,871
46,222,098
Tax income (expense)
(377,230)
(529,285)
(367,291)
206,964
(245,969)
(112,068)
(161,206)
381,053
Profit (loss) of the year,
attributable to
4,471,704
5,857,980
3,077,490
42,717,581
3,869,534
1,956,793
1,904,665
46,603,151
Equity holders of the parent
4,470,369
5,855,631
3,076,823
42,716,596
3,867,369
1,953,613
1,902,969
46,601,738
Minority interest
1,335
2,349
667
985
2,165
3,180
1,696
1,413
Profit (loss) from
continuing operations
4,471,704
5,857,980
3,077,490
42,717,581
3,869,534
1,956,793
1,904,665
46,603,151
Differences from foreign
operations
(2)
(2)
4
-
(84)
(5)
(25)
(1)
Loss/gain from revaluation of
fixed assets
745,264
-
-
-
745,264
Deffered profit tax alocated to
the comprehensive income
273,332
-
-
-
252,315
Comprehensive income of
the year, attributable to:
4,471,702
5,857,978
3,077,494
42,990,913
3,869,450
1,956,788
1,904,640
46,855,465
Equity holders of the parent
4,470,367
5,855,629
3,076,827
42,989,928
3,867,285
1,953,608
1,902,944
46,854,052
Minority interest
1,335
2,349
667
985
2,165
3,180
1,696
1,413
EBITDA OPERATIONAL
6,572,211
8,368,149
5,897,359
3,862,780
2,670,226
2,444,140
1,620,241
1,141,324
16/20
2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
C.)REVENUES
The participation of the consolidated subsidiaries in obtaining the item “Revenues ”, in the reporting period is presented
in the below table:
Company
12 Months of
2020
% in
total
12 Months of
2021
% in
total
12 Months of
2022
% in
total
2022
vs.2021
Romcarbon SA
181,146,472
60%
264,737,647
64%
262,801,054
59%
-0.73%
LivingJumbo
Industry SA
110,666,945
37%
133,415,290
32%
164,064,764
37%
22.97%
RC Energo Install
SRL
7,646,082
3%
11,711,050
3%
17,005,204
4%
45.21%
Info Tech
Solutions SRL
936,533
0%
1,071,637
0%
1,124,044
0%
4.89%
Total, out of
which:
300,396,032
100%
410,935,625
100%
444,995,067
100%
8.29%
Within the Group
43,567,674
15%
69,616,189
17%
63,009,389
14%
-9.49%
Outside of the
Group
256,828,358
85%
341,319,436
83%
381,985,677
86%
11.91%
In the reporting period the item «Revenues» have the following structure:
Structure of Revenues
(Net sales)
12 Months
of 2020
% in
total
12 Months of
2021
% in
total
12 Months of
2022
% in
total
2022
vs.2021
Sales of finished goods
(701+709)
221,265,575
86%
276,755,901
81%
313,728,863
82%
13.36%
Sales of intermediary
goods
12,402,732
5%
14,703,881
4%
17,584,021
5%
19.59%
Sales of residual products
329,150
0%
643,853
0%
479,172
0%
-25.58%
Services rendered
3,958,649
2%
3,514,731
1%
3,141,708
1%
-10.61%
Sales of goods purchased
for resale
17,605,357
7%
43,132,592
13%
37,641,933
10%
-12.73%
Revenues from sundry
activities
1,266,895
0%
2,568,478
1%
9,409,981
2%
266.36%
Total
256,828,358
100%
341,319,436
100%
381,985,677
100%
11.91%
D.)STATEMENT OF CASH-FLOW
12M 2020
12 M 2021
12M 2022
Net cash generated by operating activities
19,968,923
(1,778,786)
(6,738,464)
Net cash (used in)/generated by investing activities
4,101,582
(2,175,748)
70,172,389
Net cash (used in)/generated in financing activities
(13,215,044)
846,795
(7,161,758)
Net increase in cash and cash equivalents
10,855,461
(3,107,739)
56,272,168
Cash and cash equivalents at the beginning of the year
9,849,170
20,704,632
17,596,893
Effects of exchange rate changes on the balance of cash held in
foreign currencies
0
0
0
Cash from subsidiaries acquired during the year
0
0
0
Cash and cash equivalents at the end of the period
20,704,631
17,596,893
73,869,061
17/20
2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
E.)FINANCIAL RATIOS
Indicator
Formula
12 Months of
2020
12 Months
of
2021
12 Months of
2022
EBIT
Gross profit + Income tax +
Expenses with interest
1,972,882
4,376,486
59,555,688
EBITDA
EBIT + Depreciation-Subsidies for
investment
13,462,961
15,528,594
70,401,193
Sales
Revenue + Rental and royalty
income
257,465,323
341,864,786
382,579,913
EBITDA to sales ratio
EBITDA/Sales
5.23%
4.54%
18.40%
EBITDA to Equity ratio
EBITDA/Equity
9.64%
11.18%
41.49%
Gross profit margin
Gross profit/Sales
0.07%
0.80%
14.95%
Current ratio
Current assets/Current liabilities
1.04
1.03
1.42
Quick ratio
(Current assets-Inventories)/Current
liabilities
0.62
0.61
0.97
Non-current liabilities to
Equity ratio
Non-current liabilities/Equity
33%
23%
16%
Total liabilities to Assets
ratio
Total liabilities/Total Assets
50%
54%
51%
Interest coverage ratio
EBIT/Interest expenses
1.10
2.64
25.19
Account receivable
turnover ratio
Average receivables/Sales (days)
49
47
54
Account payable
turnover ratio
Average payables/Sales (days)
48
47
56
Return on assets (ROA)
Net profit/Assets
-0.0300%
0.5933%
16.3100%
Return on equity (ROE)
Net profit/Equity
-0.0601%
1.2890%
33.0768%
Return on sales (ROS)
Net profit/Sales
-0.0326%
0.5238%
14.6701%
STRUCTURE OF SHAREHOLDERS
As at 31.12.2022 SC Romcarbon SA shareholders’ structure, according to Depozitarul Central SA was as follows:
LIVING PLASTIC INDUSTRY S.R.L.
; 86,774,508; 33%
JOYFUL RIVER LIMITED ; 54,195,089;
20%
TODERITA STEFAN ALEXANDRU;
32,700,000; 12%
OTHER NATURAL PERSONS;
80,636,778; 31%
OTHER LEGAL ENTITIES; 9,815,721; 4%
18/20
2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
Evolution of average price of ROCE shares in the period 01.01.2022-31.12.2022
*
* *
INTERNAL CONTROL
Internal control aims at ensuring a rigorous and effective management of the Group’s activity through the adoption by
the Group’s member companies of policies and procedures which ensure consistency of objectives, identify the key factors
of success and communicate to the entity’s managers in real-time information on performance and perspectives.
Internal control is organized so as to comply not only with financial-accounting regulations, but with all regulations, such
as environmental, occupational health and safety, emergency situations, the Civil Code.
The Group’s organization chart establishes the hierarchical levels of responsibility and authority existing and allows
knowledge of functional and managerial aspects of the organization.
The Boards of Administration are independent of the management at the organization and their members are involved in
management activities, which they supervise carefully. The Boards of Administration of the Group’s member companies
delegates to the managers responsibilities regarding internal control and make systematic and independent assessments
of the internal control system established by management.
Internal (financial) audit has an assistance function that must ensure management that each of the companies’ internal
procedures are implemented and adhered to by all departments involved.
Regular or permanent check and assessment according to the Program approved by each of the Group companies'
management of the quality operation of internal control is performed to determine whether internal controls are applied
according to the procedures and if they are modified appropriately when the situation requires.
Internal control establishes methods by which employees are assessed, trained, promoted and rewarded as staff
represents an essential component of internal control. The organizational chart, the internal regulations (IR), job
descriptions are updated according to the modifications.
Each of the Group companies’ management has taken action in order to remove or reduce incentives that could cause
employees to engage in dishonest, illegal or immoral activities. They are found in the Internal Regulations and other
regulations issued but also in personal examples.
Management is in charge of the filling of specific positions by competent personnel who has the knowledge and skills to
perform the tasks characteristic of each function.
08/03/22; 0.211
07/11/22; 0.488
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
03/01/22 03/02/22 03/03/22 03/04/22 03/05/22 03/06/22 03/07/22 03/08/22 03/09/22 03/10/22 03/11/22 03/12/22
Pret mediu zilnic Pret mediu lunar
Daily average price
Monthly average price
19/20
2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
The Group faces various risks arising from the external or the internal environment that must be managed appropriately
by management. Risk identification and analysis is an ongoing process and a critical component of an effective internal
control. Some of the examples are the Group member companies’ inability to achieve the set objectives, staff quality,
importance and complexity of basic economic processes, introduction of new information technologies, entry of new
competitors on the market etc.
Management identifies and assesses these risks and formulates specific measures to reduce the risk at an acceptable
level.
For an adequate split of the responsibilities (tasks) in order to prevent significant frauds and errors, the Company applies:
a) The division of the administration of assets to avoid the risk of theft;
b) The division of the authorization of the operations of assets administration;
c) The separation of the IT tasks from the tasks of the persons outside the IT system (the tasks related to the design
and control of accounting software are separated from the ones related to the update of information)
Inside each Group member company, there are three different functions, whose separation (their aggregation is not
admitted) represents the grounds for mutual control between departments and performers, namely:
d) achievement of the objectives of the organization
e) preservation of the assets of the organization
f) the accounting function;
For an efficient internal control, the same person cannot fulfill all such roles. If any two of such roles are fulfilled by the
same person, the risk of error and fraud is higher.
Most of the operations and transactions involve at least two of the presented roles; as result, errors and frauds can be
easily detected, because they result in a lack of correlation between the statements, between the departments or
performers.
The internal accounting and financial control is a major element of internal control inside the entity and it relates to the
entire processes of obtaining and communicating the accounting and financial information in order to obtain reliable
information and in accordance with legal requirements.
The internal accounting and financial control focuses on providing:
g) compliance of the accounting and financial information with the applicable rules;
h) application of the management instructions according to this information;
i) protection of the assets;
j) prevention and detection of accounting and financial frauds and irregularities;
k) reliability of the information disseminated and used internally for controlling purposes, to the extent it contributes
to preparing published accounting and financial information;
l) reliability of the annual published financial statements and other information communicated to the market.
All intern control activities seek to perform a permanent and periodical review of activities, in order for the management
to identify the best solutions for its decisions for increasing the performance of the company and become more
competitive on the market.
THE GROUP’S OBJECTIVES AND POLICIES REGARDING RISK MANAGEMENT
The parent company implemented risk management in accordance with Standard SR EN ISO 31010 – Risk Management.
Risk Assessment Techniques, identifying and assessing risks involving every operating department in the organization.
The Company drafted a Risk Register for every operating department, the Organization’s Risk Register and the Risk
Treatment Action Plan.
Capital risks
The management of the Group’s risk also consists in a regular review of the capital structure. The Group will balance the
general structure of its capital by dividend payment, issuance of new shares and redemption of shares.
Financial risks
The Group’s treasury function supplies services necessary to the business, coordinates access to national and
international financial market, monitors and manages financial risk related to the Group’s operations through reports on
internal risks, analyzing exposure by the degree and extent of risks.
Liquidity risk
Liquidity risk, also called funding risks, is the risk for a company to face difficulties in raising funds to fulfill its
commitments associated to the financial instruments.
20/20
2022 | ANNUAL REPORT REGARDING THE CONSOLIDATED FINANCIAL STATETEMENTS
The ultimate responsibility for liquidity risk management rests with the Board of Administration, which has built a proper
liquidity risk management framework regarding the Group funds’ short, medium and long term insurance and the liquidity
management requirements. The Group manages liquidity risk by maintaining adequate reserves, backup banking facilities
and loan facilities, by continually monitoring cash flows and matching the maturity profiles of financial assets and
liabilities.
Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the
Group. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral
where appropriate, as a means of mitigating the risk of financial loss from defaults. The management monitors the
Group’s exposure and the credit ratings of its contractual counterparties.
Market risk
At the date of this report, no risks are identified that would significantly affect the revenues from the core business. As
of February 2022, global geopolitical tensions have escalated significantly following the Russian Federation's military
interventions in Ukraine. As a result of these escalations, economic uncertainties in the energy and capital markets have
increased, with global energy prices expected to be highly volatile in the foreseeable future. At the date of this report,
management cannot reliably estimate the effects on the Company's financial outlook and cannot rule out negative
consequences for the business, operations and financial condition. Management considers that it is taking all necessary
measures to support the sustainability and growth of the Company's business in the current circumstances and that the
professional reasoning in these financial statements remains adequate.
NON-FINANCIAL DECLARATION
At the date of these financial statements, the Group has not prepared the non-financial declaration.
For the year 2022, the Group will issue until 30.06.2023 the sustainability report prepared in accordance with GRI
standards.
HUANG LIANG NENG, ZAINESCU VIORICA,
Chairman of the Board Financial Manager
And General Manager
MANAILA CARMEN,
Deputy General Manager for Administrative Operations
ROMCARBON SA | Thinking forward
Buzau, Str. Transilvaniei, nr.132
Cod postal 120012
Tel.0238.711.155
Fax.0238.710.697
www.romcarbon.com
investor.relations@romcarbon.com