31 December 2013 Financial assets at fair value through
profit or loss receivablesLoans and
Available for sale financial assets Financial assets designated as hedging
instruments Other Total Trade receivables to Third parties – 2,855 – – – 2,855 Related parties – 9,388 – – – 9,388 Total – 12,243 – – – 12,243 Balance as at 31 December 2012 Financial assets at fair value through
profit or loss receivablesLoans and
Available for sale financial assets Financial assets designated as hedging
instruments Other Total Trade receivables to
Third parties – 3,311 – – – 3,311
Related parties – 8,704 – – – 8,704
Total – 12,015 – – – 12,015
Due to their short term nature the carrying amount of trade receivables approximates the fair value as at the balance sheet date after the valuation allowance is taken into account. The fair value of trade receiv- able qualifies for level 2 of the fair value hierarchy in accordance with IFRS 13. The allowance for the im- pairment of trade receivables of CZK 360 million (2012: CZK 361 million) has been deducted from presented carrying values of trade receivables.
Notes to the consolidated financial statements 2013
9. Inventories (CZK million)
Carrying value as at
31 December 2013 Carrying value as at 31 December 2012
Structure of the inventories
Raw materials, consumables and supplies 5,180 4,546 Work in progress 3,144 2,751 Finished products and goods 9,604 11,322
Total 17,928 18,619
The amount of inventories (including production related personnel costs and overheads capitalised into inventories) recognised as an expense during 2013 was CZK 222,198 million (2012: CZK 215,088 million).
10. Cash and cash equivalents (CZK million)
2013 2012 Cash in hand 6 4 Cash pooling 9,298 4,261 Bank accounts 1,401 1,104 Cash equivalents 31,922 35,098 Total 42,627 40,467
The line Cash pooling also includes also overnight deposits from the use of cash pooling (Note 3.2). The line Cash equivalents includes deposits in Volkswagen Group companies with original maturity less than three months. These deposits are included in the portfolio Loans and receivables in terms of IAS 39.
The weighted average effective interest rate based on the carrying amount of bank accounts as at 31 December 2013 was 2.09% (as at 31 December 2012: 0.08%). The weighted average effective interest rate based on the carrying amount of deposits in Volkswagen Group companies with original maturity less than three months as at 31 December 2013 was 0.52% (as at 31 December 2012: 0.55%). Out of the total amount of deposits provided to Volkswagen Group companies with original maturity less than three months of CZK 31,922 million (as at 31 December 2012: CZK 35,098 million) there were deposits denominated in CZK in the amount of CZK 30,000 million (as at 31 December 2012: CZK 33,501 million), in EUR in the amount of CZK 110 million (as at 31 December 2012: CZK 0 million) and deposits denominated in INR in the amount of CZK 1,812 million (as at 31 December 2012: CZK 1,597 million).
11. Share capital
The issued share capital consists of 1,670,885 ordinary shares at a par value of CZK 10,000 per share. The Company’s sole shareholder Volkswagen International Finance N.V., Amsterdam, The Kingdom of the Neth- erlands, holds 100% of the ordinary shares in the Company. Volkswagen International Finance N.V. is indi- rectly a 100% subsidiary of VOLKSWAGEN AG. Rights to vote on the Company’s general meetings and rights to receive dividends are attached to the ordinary shares.
There was no movement in the Group’s share capital during the accounting period 2013 (2012).
The Company paid a dividend of CZK 6,629 million in 2013 (2012: CZK 7,144 million). The dividend per share was CZK 3,968 in 2013 (2012: CZK 4,276).
Notes to the consolidated financial statements 2013
88 Annual Report 2013
12. Other reserves and retained earnings (CZK million)
12.1
Other reserves
2013 2012
Currency translation reserve (510) (502) Reserves for cash flow hedges* (5,508) (2,766) Statutory reserve fund 3,366 3,366 Funds contributed by owner 10 10
Total (2,642) 108
* Net of deferred tax from financial derivatives.
The statutory reserve fund may be used only to offset losses. According to relevant regulations of the com- mercial code of the Czech Republic, the Company is required to transfer 5% of its annual net profit to the statutory reserve fund until the balance of this reserve reaches 20% of the subscribed capital.
Movement in reserve for cash flow hedges:
Balance as at 1 January 2013 (CZK million) (2,766)
Total change in fair value in the period (3,843) Deferred tax on change in fair value 731 Total transfers to profit or loss in the period – effective hedging 487 Total transfers to profit or loss in the period – ineffective hedging (29) Deferred tax on transfers to profit or loss (88)
Balance as at 31 December 2013 (5,508)
Balance as at 1 January 2012 (CZK million) (4,546)
Total change in fair value in the period 613 Deferred tax on change in fair value (129) Total transfers to profit or loss in the period – effective hedging 1,586 Total transfers to profit or loss in the period – ineffective hedging 12 Deferred tax on transfers to profit or loss (302)
Balance as at 31 December 2012 (2,766)
The transfer from reserves for cash flow hedges to profit or loss arising from effective hedging is in 2013 presented in the line Other operating expense in amount of CZK 2,410 million (2012: CZK 2,822 million) and in the line Other operating income in amount of CZK 1,923 million (2012: CZK 1,236 million).
12.2
Retained earnings
From the total amount of the Group’s retained earnings of CZK 77,714 million as at 31 December 2013 (as at 31 December 2012: CZK 72,511 million) unconsolidated profit for the year 2013, net of tax, amounts to CZK 11,832 million (2012: CZK 15,354 million).
In compliance with the relevant regulation of the commercial code, the unconsolidated profit of the Compa- ny for the year 2013 (determined in accordance with IFRS) is going to be appropriated based on the decision of the Company’s annual general meeting. An approval of the allocation of the Company’s profit for 2013 will follow an approval of Annual Report.
Notes to the consolidated financial statements 2013
13. Financial, other and trade liabilities (CZK million)
Financial and other liabilities
Balance as at 31 December 2013 Financial liabilities at fair value through profit or loss** Financial liabilities carried at amortised costs Financial liabili- ties designated as hedging
instruments Other* Total Financial liabilities
Loans and borrowings – 3,107 – – 3,107
Total – 3,107 – – 3,107
Other liabilities
Negative fair value of financial derivatives 73 – 7,584 – 7,657 Other tax liabilities (excl. income tax) – 108 – 2,067 2,175 Liabilities to employees – – – 1,727 1,727 Social security – – – 415 415
Other – – – 1,273 1,273
Total 73 108 7,584 5,482 13,247
* The category Other includes items that are not financial liabilities in terms of IAS 32. ** Financial liabilities held for trading.
Notes:
Negative fair value of financial derivatives consists of spot component disclosed in portfolio Financial liabilities designated as hedging instruments, term component of hedging derivatives and fair value of derivatives held for trading disclosed in portfolio Financial liabilities at fair value through profit or loss (see Note 2.7.3). Total in table Other liabilities may be reconciled to the statement of financial position as a sum of Other non-current liabilities and Other current liabilities.
Balance as at 31 December 2012 Financial liabilities at fair value through profit or loss** Financial liabilities carried at amortised costs Financial liabili- ties designated as hedging
instruments Other* Total Financial liabilities
Loans and borrowings – 3,107 – – 3,107
Total – 3,107 – – 3,107
Other liabilities
Negative fair value of financial derivatives 505 – 4,197 – 4,702 Other tax liabilities (excl. income tax) – 221 – 3,190 3,411 Liabilities to employees – – – 1,857 1,857 Social security – – – 454 454
Other – – – 992 992
Total 505 221 4,197 6,493 11,416
* The category Other includes items that are not financial liabilities in terms of IAS 32. ** Financial liabilities held for trading.
Notes:
Negative fair value of financial derivatives consists of spot component disclosed in portfolio Financial liabilities designated as hedging instruments, term component of hedging derivatives and fair value of derivatives held for trading disclosed in portfolio Financial liabilities at fair value through profit or loss (see Note 2.7.3). Total in table Other liabilities may be reconciled to the statement of financial position as a sum of Other non-current liabilities and Other current liabilities.
Notes to the consolidated financial statements 2013
90 Annual Report 2013
The fair value of loans and borrowings was CZK 3,137 million as at 31 December 2013 (CZK 3,270 million as at 31 December 2012). The fair value was calculated as the present value of future cash flows based on market rate at the balance sheet date, which was 0% as at 31 December 2013 (as at 31 December 2012: 0.15%). The fair value of loans and borrowings qualifies for level 2 of the fair value hierarchy in accordance with IFRS 13. Detailed information on financial derivatives, including information relating to their fair value in accordance with IFRS 13, is listed in Note 3.3.4.
Due to the short term nature of other liabilities disclosed in Other liabilities, the carrying amount approxi- mates the fair value. The fair value of other liabilities qualifies for level 2 of the fair value hierarchy in ac- cordance with IFRS 13.
In the table below, the financial conditions attached to loans received are summarised at their carrying amounts:
Carrying amount as at 31 December 2013 Weighted average effective interest rate based on nominal amount Maturity Currency Interest terms Interest commitment
ending Nominal amount < 1 year 1 - 5 years > 5 years Total
CZK fixed < 1 year 4.53% 3,000 3,106 – – 3,106
Total financial
liabilities 3,000 3,106 – – 3,106
Carrying amount as at 31 December 2012 Weighted average effective interest rate based on nominal amount Maturity Currency Interest terms Interest commitment
ending Nominal amount < 1 year 1 - 5 years > 5 years Total
CZK fixed 1 – 5 years 4.53% 3,000 107 3,000 – 3,107
Total financial
liabilities 3,000 107 3,000 – 3,107
Notes to the consolidated financial statements 2013