18. Trade receivables and other assets
|PLN ’000||Note||Dec 31 2013||Dec 31 2012
|Jan 1 2012
|Non-current financial assets|
|Other financial assets:||31.1||194,002||86,435||125,472|
|Security deposits receivable||23,089||28,555||20,919|
|Finance lease receivables||18.2||8,061||6,180||3,564|
|Oil and gas facility
decommissioning fund (1)
|Security deposits (margins)||32.4.1||11,029||11,163||11,748|
|Cash blocked in bank
|Derivative financial instruments||-||-||12,098|
|Current financial assets|
|Trade receivables. including:||31.1||1,594,746||1,632,837||2,071,269|
|- from related entities||36.1||16,657||2,507||90|
|Other financial assets:||31.1||185,376||173,238||119,789|
|Security deposits receivable||23,089||10,483||7,998|
|Cash blocked in bank
|Total financial assets||1,974,124||1,892,510||2,316,530|
|Prepayments for lease
of railway locomotives
|Current non-financial assets|
|Value-added tax receivable||51,899||165,152||42,236|
|Other receivables from the state
budget other than income tax
|Property and other insurance||4,522||5,704||4,427|
|Prepayments for lease of railway
|Settlements under joint ventures
|Excise duty on inter-warehouse
|Total non-financial assets||156,682||283,680||115,434|
|- trade receivables||1,594,746||1,632,837||2,071,269|
(1) Cash deposited in the bank account of the oil and gas facility decommissioning fund (created pursuant to the Geological and Mining Law of February 4th 1994 and the Minister of Economy’s Regulation of June 24th 2002) to cover future costs of decommissioning of oil and gas facilities, as discussed in Note 30.1.
As at December 31st 2013 and December 31st 2012, the item Deposits mainly included the Parent's deposits securing payments of interest under credit facilities contracted for the financing of the 10+ Programme, as well as for financing and refinancing inventories, referred to in Note 27.1. As at December 31st 2012, the item included Parent's cash of PLN 83,826 thousand earmarked for plant maintenance, as required under the 10+ Programme financing agreements. The cash was used in the first half of 2013.
As at December 31st 2013, Security deposits (margins) mainly included PLN 8,917 thousand security deposit (margin) provided by the Parent to BNP Paribas Bank Polska, to enable execution of transactions on the ICE Futures Internet platform (December 31st 2012: PLN 9,051 thousand).
As at December 31st 2013, Cash blocked in bank accounts comprised cash on ecrow account associated with the agreement concluded between the parties involved in the execution of the YME Project in Norway; for more information, see Note 30.1. As at December 31st 2013, the blocked cash totalled PLN 213,938 thousand. As at December 31st 2012, Cash blocked in bank accounts comprised LOTOS Paliwa Sp. z o.o.'s cash in of PLN 18,320 thousand. These funds were blocked by a court enforcement officer in connection with court proceedings concerning WANDEKO and were released in 2013; for more information, see Note 35.1.
The collection period for trade receivables in the ordinary course of business is 7−35 days.
As at December 31st 2013, a PLN 3,156 thousand assignment was established on the Group’s receivables as security for the Group's liabilities. As at December 31st 2012, the Group’s receivables were not subject to any assignment by way of security for the Group's liabilities.
The maximum credit risk exposure of financial assets is presented in Note 32.6.
For currency risk sensitivity analysis of financial assets, see Note 32.3.1.
For interest rate risk sensitivity analysis of financial assets, see Note 32.4.1.
|PLN ’000||Year ended
Dec 31 2013
Dec 31 2012
|At beginning of the period||177,152||195,646|
|Exchange differences on translating foreign operations||34||(1,025)|
|Deconsolidation (LOTOS Tank Sp. z o.o.) (1)||(735)||-|
|At end of the period||175,293||177,152|
(1) For more information on the transaction, see Note 2.
The amounts resulting from recognition or reversal of impairment losses on receivables are presented under other income or expenses (the principal portion) and under finance income or costs (the default interest portion).
Recognised impairment losses included PLN 9,584 thousand under the principal (2012: PLN 9,898 thousand) and PLN 2,371 thousand under interest (2012: PLN 1,416 thousand).
The item Reversed comprised PLN 1,280 thousand under the principal (2012: PLN 8,537 thousand) and PLN 861 thousand under interest (2012: PLN 78 thousand).
In 2013, the Group disclosed the recognition and reversal of impairment losses on the principal under Other expenses, in the amount of PLN 6,012 thousand (2012: PLN 5,012 thousand under Other income). Moreover, in 2013 the Group offset the impairment loss of PLN 2,292 thousand against corresponding Other income items (2012: PLN 6,373 thousand).
The table below presents aging of past due receivables for which no impairment losses were recognised:
|PLN ’000||Dec 31 2013||Dec 31 2012|
|Up to 1 month||47,503||81,742|
|From 1 to 3 months||8,051||11,932|
|From 3 to 6 months||5,694||4,800|
|From 6 months to 1 year||4,948||2,275|
|Over 1 year||6,341||5,357|
No impairment loss was recognised on past due receivables because they are secured against credit risk with a mortgage, pledge, insurance policy, bank guarantee or surety.
As at December 31st 2013 and December 31st 2012, the share of trade receivables from the Group’s four largest customers as at the end of the reporting period slightly exceeded 20% of total trade receivables. In the Group’s opinion, with the exception of receivables from the above-mentioned customers, there is no material concentration of credit risk. The Group’s maximum exposure to credit risk as at the end of the reporting period is best represented by the carrying amounts of those instruments. The concentration of risk related to sales is limited, as the Group trades with large number of partners.
The Group has developed and operates the “LOTOS Family” Franchise Programme, which defines the procedures for managing service stations. The Group has entered into franchise agreements with entities operating service stations at their own risk and for their own account (Partners). Receivables under franchise agreements represent mainly expenditure on the design of DOFO service stations operated by dealers under agreements executed for periods from 5 to 10 years.
|PLN ’000||Minimum lease payments||Present value of minimum lease payments|
|Dec 31 2013||Dec 31 2012||Dec 31 2013||Dec 31 2012|
|Up to 1 year (1)||3,437||2,716||3,406||2,683|
|From 1 to 5 years||7,604||5,970||7,534||5,896|
|Over 5 years||532||288||527||284|
(1) Present value of minimum lease payments is disclosed under Trade receivables.