STATUTORY CONSOLIDATED FINANCIAL STATEMENTS – 2022






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CHIMCOMPLEX S.A.
STATUTORY CONSOLIDATED FINANCIAL STATEMENTS
Prepared in accordance with
Order of the Minister of Public Finance
no. 2844/2016 for the approval of Accounting Regulations in accordance with the Standards
International Financial Reporting Standards as adopted by EU.
AT AND FOR THE YEAR ENDED AT
DECEMBER 31, 2022

TABLE OF CONTENT:
PAGE:

INDEPENDENT AUDITOR’S REPORT FOR CONSOLIDATED FINANCIAL STATEMENTS
1 – 5
STATEMENT OF CONSOLIDATED FINANCIAL POSITION
6 – 7
STATEMENT OF
CONSOLIDATED
COMPREHENSIVE INCOME
8 – 9
STATEMENT OF CONSOLIDATED CHANGES IN EQUITY
10
STATEMENT OF CONSOLIDATED CASH FLOW
11 – 12
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
13 – 73

CHIMCOMPLEX S.A.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

Notes attached form an integral part of these consolidated financial statements.

6

December 31,

December 31,

Note

2022

2021

ASSETS

Non-current assets

Property, plant and equipment

15

1,859,918,966

1,747,771,538

Right of use asset

23.b

13,844,826

5,906,799

Investment property

17

31,452,222

14,424,776

Intangible assets

16

122,419,867

126,621,140

Investments in associates and other equity investments

18

31,288,882

3,687,612

Other long term assets

6,718,514

5,093,759

Total non-current assets

2,065,643,277

1,903,505,624

Current assets

Inventories

19

239,200,319

157,905,520

Trade and other receivables

20

504,194,420

301,795,179

Short term loans granted

5,327,386

3,536,799

Cash and bank balances

21

45,539,597

148,351,765

Total current assets

794,261,722

611,589,263

Total assets

2,859,904,999

2,515,094,887

EQUITY AND LIABILITIES

Capital and reserves

Issued capital

22

1,190,991,169

1,190,991,169

Own shares

22

(

47,794,795

)

(

142,454

)

Share premium

22

4,669,565

4,669,565

Legal reserves

109,516,233

90,273,573

Retained earnings

(

21,708,405

)

(

207,046,363

)

Revaluation reserve

577,222,870

578,340,730

Non-controlling interest

30

395,866

Equity attributable to owners of the Group

1,813,292,503

1,657,086,220

LIABILITIES

Non-current liabilities

Subsidies

25

13,778,664

15,450,076

Lease liabilities

23.b

8,705,286

3,444,122

Deferred tax liability

14

136,141,686

146,155,550

Provisions

26

16,302,643

16,459,564

Long term loans

23.a

460,024,477

294,521,275

Other payables

24

10,259,628

598,685

Total non-current liabilities

645,212,384

476,629,272

CHIMCOMPLEX S.A.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

Notes attached form an integral part of these consolidated financial statements.

7

December 31,

December 31,

Note

2022

2021

Current liabilities

Subsidies

25

27,338,122

2,541,998

Trade and other payables

24

280,416,067

289,530,506

Lease liabilities

23.b

5,949,300

3,465,451

Corporate income tax liability

21,859,005

20,101,200

Provisions

26

18,752,331

36,257,005

Short term loans

23.a

47,085,287

29,483,235

Total current liabilities

401,400,112

381,379,395

Total liabilities

1,046,612,496

858,008,667

Total equity and liabilities

2,859,904,999

2,515,094,887

These consolidated financial statements were authorized to be issued by the management as at
March 27, 2023 and signed on its behalf by:
VUZA STEFAN,

STANCIUGEL NICOLAE,

GENERAL DIRECTOR

FINANCIAL DIRECTOR

CHIMCOMPLEX S.A.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

Notes attached form an integral part of these consolidated financial statements.

8

Year ended
December 31,

Year ended
December 31,

Note

2022

2021

Revenue

5

2,263,583,705

2,235,682,220

Investment income

10,177,822

2,062,019

Other gains and losses

6

10,594,051

(

30,031,493

)

Cost of commodities sold

(

85,184,950

)

(

28,142,995

)

Increase in finished goods and production in progress

74,766,067

42,726,248

Raw materials and consumables

7

(

737,478,771

)

(

767,092,901

)

Employees benefits

8

(

169,900,895

)

(

180,078,658

)

Depreciation and amortization

9

(

153,988,404

)

(

111,122,869

)

Distribution costs

(

41,309,258

)

(

38,932,655

)

Water and energy expenses

(

738,532,420

)

(

451,442,533

)

Other third party services

10

(

45,044,579

)

(

29,727,228

)

Maintenance and repair expenses

(

27,887,088

)

(

29,462,915

)

Other income

11

37,638,681

5,035,569

Net revaluation loss of property, plant and equipment

15

(

13,480,054

)

Other expenses

12

(

57,536,672

)

(

52,922,167

)

Finance costs

13

(

21,615,668

)

(

103,696,796

)

Profit before tax

318,281,621

449,372,792

Income tax expense

14

(

46,667,637

)

(

60,718,323

)

Profit for the year

271,613,984

388,654,469

Earnings per share

Basic and diluted earnings per share

0.89

1.27

CHIMCOMPLEX S.A.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

Notes attached form an integral part of these consolidated financial statements.

9

Note

Year ended
December 31,

Year ended
December 31,

2022

2021

Profit for the year

271,613,984

388,654,469

Other comprehensive income:

Items that will not be reclassified to profit or loss:

Impact of revaluation

15

437,282,714

Deferred tax related to revaluation

15

(

69,965,234

)

Impact of disposal of non-current assets

15

(

1,117,860

)

Other comprehensive income, net of tax

(

1,117,860

)

367,317,480

Total comprehensive income

270,496,124

755,971,949

Total comprehensive income attributable to:

Owners

270,402,897

755,971,949

Non-controlling interest

93,227

These consolidated financial statements were authorized to be issued by the management as at March 27, 2023 and signed
on its behalf by:
VUZA STEFAN,

STANCIUGEL NICOLAE,

GENERAL DIRECTOR

FINANCIAL DIRECTOR

CHIMCOMPLEX S.A.

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

Notes attached form an integral part of these consolidated financial statements.

10

Share
capital

Own shares

Share
premium

Legal
reserve

Retained
earnings

Revaluation
reserve

Non-Controlling
interest

Total

Balance at January 1, 2021

1,182,587,379

844,028

63,104,317

(

567,358,173

)

211,023,250

890,200,801

Profit for the year

388,654,469

388,654,469

Other comprehensive income –
revaluation gain

367,317,480

367,317,480

Dividends distribution

(

1,200,000

)

(

1,200,000

)

Increase in share capital

8,403,790

8,403,790

Increase in share premium

3,825,537

3,825,537

Legal reserves

27,169,256

(

27,169,256

)

Redemption of own shares (note
22)

(

142,454

)

26,598

(

115,856

)

Balance at December 31, 2021

1,190,991,169

(

142,454

)

4,669,565

90,273,573


(

207,046,363

)

578,340,730

1,657,086,220

Profit for the year

271,613,984

271,613,984

Dividends distribution

(

60,000,000

)

(

60,000,000

)

Other comprehensive income –
revaluation for disposed assets

1,117,860

(

1,117,860

)

Legal reserves

19,242,660

(

19,242,660

)

Redemption of own shares ( note
22)

(

47,652,341

)

(

47,652,341

)

Surplus resulting from acquisition
of Sistemplast S.A (note 29)

(

9,593,394

)

(

9,593,394

)

Acquisition of Sistemplast (note 29)

302,639

302,639

Adjustment arising from change in
noncontrolling interest (note 30)

93,227

93,227

Other movement

1,442,169

1,442,169

Balance at December 31, 2022

1,190,991,169

(

47,794,795

)

4,669,565

109,516,233

(

21,708,405

)

577,222,870

395,866

1,813,292,503

These consolidated financial statements were authorized to be issued by the management as at March 27, 2023 and signed on its behalf by:
VUZA STEFAN,

STANCIUGEL NICOLAE,

GENERAL DIRECTOR

FINANCIAL DIRECTOR

CHIMCOMPLEX S.A.

CONSOLIDATED STATEMENT OF CASH FLOW
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

Notes attached form an integral part of these consolidated financial statements.

11

Year ended
December 31,

Year ended
December 31,

2022

2021

Cash flows from operating activities:
Profit before tax

318,281,621

449,372,792

Adjustments for non-cash items:

Interest expense

20,123,112

66,952,514

Impairment loss on investments

(

8,655,349

)

875,592

Impairment loss/(gain) on property, plant and equipment

(

35,143,061

)

Interest revenue

(

3,302,825

)

(

645,208

)

Loss/(gain) on disposal of non-current assets

171,926

(

445,200

)

Net loss/(gain) from provisions

(

17,318,335

)

30,577,532

Loss from revaluation of property, plant and equipment

48,623,115

Foreign exchange loss, net

1,130,178

6,374,515

Impairment loss on inventories, net

5,608,961

1,783,851

Depreciation and amortization

153,988,405

111,122,869

Subsidies income

(

1,939,752

)

(

2,156,263

)

Non-controlling interest

93,227

468,181,169

677,293,048

Movements in working capital:

Decrease/(increase) in inventory

(

108,102,431

)

(

80,844,491

)

Decrease/(increase) in trade and other receivables

(

61,184,516

)

(

161,330,818

)

Increase/ (decrease) in trade and other liabilities

(

170,284,276

)

70,103,937

Increase/ (decrease) in subsidies

25,067,462

Subsidy received for costs of electric energy

32,404,226

41,297,958

Cash generated from operating activities

186,081,634

546,519,634

Interest paid

(

19,124,019

)

(

36,565,193

)

Income tax paid

(

729,791

)

(

22,343,050

)

Net cash generated by/(used) in operating activities

166,227,824

487,611,391

Cash flows from investing activities:

Interest received

3,302,825

645,208

Proceeds from sale of non-current assets

1,666,252

3,133,290

Payment to acquire financial assets

(

18,945,921

)

Acquisition of non-current assets

(

164,752,434

)

(

58,827,681

)

Payments for participation in Sistemplast, net of purchased cash

(

758,415

)

Net cash used in investing activities

(

179,487,693

)

(

55,049,183

)

CHIMCOMPLEX S.A.

CONSOLIDATED STATEMENT OF CASH FLOW
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

Notes attached form an integral part of these consolidated financial statements.

12

Year ended
December 31,

Year ended
December 31,

2022

2021

Cash flow from financing activities:

Proceeds from borrowings*

218,306,795

351,609,499

Lease liabilities repayments*

(

8,081,443

)

(

5,055,761

)

Dividends paid

(

214,280,638

)

(

1,065,739

)

Repayment of borrowings*

(

38,438,416

)

(

684,034,787

)

Share capital increase

12,086,873

Purchase of own shares

(

47,652,341

)

Net cash (used in)/generated by financing activities

(

90,146,043

)

(

326,459,915

)

Net (decrease) / increase in cash and cash equivalents

(

103,405,912

)

106,102,293

Cash and cash equivalents at beginning of the year

148,351,765

41,112,208

Effects of foreign exchange rate changes on the balance of cash held
in foreign currencies

593,746

1,137,265

Cash and cash equivalents at end of the year

45,539,597

148,351,765

*The Group present in the statement of cash flow changes in finance liabilities (proceeds from borrowings, lease liabilities
repayments, and repayment of borrowings). For the year ended December 31, 2022, and December 31, 2021 respectively,
the changes in finance lease comprise in principal cash changes, the effect of non-cash changes is not material therefore the
Group believes that the presentation truly reveals the cash changes in finance liabilities.

These consolidated financial statements were authorized to be issued by the management as at March 27, 2023 and signed
on its behalf by:
VUZA STEFAN,

STANCIUGEL NICOLAE,

GENERAL DIRECTOR

FINANCIAL DIRECTOR

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

13

1.GENERAL INFORMATION

These financial statements are the consolidated financial statements of
CHIMCOMPLEX S.A. BORZESTI

(“the Company”) and
its subsidiaries (together “the Group”) as at and for the year ended 31 December 2021.

The Company is a
private limited company

incorporated in accordance with the Romanian legislation and recorded in 1991
to Trade Registry.

The Company’s headquarter is in
3 Industriilor Street, Onesti, Romania

.

The Group operates in the chemical industry and it’s main groups of products are:


Chloralkali,

Organic Solvents,

Inorganic Chlorides,

Alkylamines, Polyols

Oxo-Alcholos.

As at December 31, 2022 and December 31, 2021 respectively, the Company’s subsidiaries and associates are the following:

% shareholding

Name

Activity

Type

Tax code

Head Office

December 31,
2022

December 31,
2021

Greenhouse Onesti
SRL

Manufacture of
other base
inorganic
chemicals

Subsidiary

16030164

Onesti

99.9998%

99.9998%

A5 Invest

Intermediation in
the sale of
machinery,
industrial
equipment, ships
and airplanes

Subsidiary

17701390

Onesti

100%

100%

A6 Impex SA

Electricity
production

Associate

21381692

Dej

49.4497%

33.6453%

Sistemplast SA

General
mechanical
operations

Subsidiary

11438007

RamnicuValcea

94,4000%

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

14

2.
APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

These annual consolidated financial statements have been prepared in accordance with International Financial Reporting
Standards (“IFRS”) as adopted by the European Union (“IFRS-EU”).
New standards and amendments to existing standards in issue not yet adopted
At the date of authorisation of these financial statements, the following new standard and amendments to existing
standards were in issue, but not yet effective:

IFRS

17

“Insurance

Contracts”

including

amendments

to

IFRS

17

issued

on

25

June

2020

and

amendments

to

IFRS

17
“Initial

Application

of

IFRS

17

and

IFRS

9”

issued

on

9

December

2021

(effective

for

annual

periods

beginning

on

or

after
1 January 2023),

Amendments

to

IAS

1

“Presentation

of

Financial

Statements”



Classification

of

Liabilities

as

Current

or

Non-Current
(effective for annual periods beginning on or after 1 January 2023),

Amendments

to

IAS

1

“Presentation

of

Financial

Statements”



Disclosure

of

Accounting

Policies

(effective

for

annual
periods beginning on or after 1 January 2023),

Amendments

to

IAS

8

“Accounting

Policies,

Changes

in

Accounting

Estimates

and

Errors”



Definition

of

Accounting
Estimates (effective for annual periods beginning on or after 1 January 2023),

Amendments

to

IAS

12

“Income

Taxes”



Deferred

Tax

related

to

Assets

and

Liabilities

arising

from

a

Single

Transaction
(effective for annual periods beginning on or after 1 January 2023),

Amendments

to

IFRS

16

“Leases”



Lease

Liability

in

a

Sale

and

Leaseback

(effective

for

annual

periods

beginning

on

or
after 1 January 2024),

Amendments

to

IAS

1

“Presentation

of

Financial

Statements”



Non-current

Liabilities

with

Covenants

(effective

for
annual periods beginning on or after 1 January 2024),

Amendments

to

IFRS

10

“Consolidated

Financial

Statements”

and

IAS

28

“Investments

in

Associates

and

Joint
Ventures”



Sale

or

Contribution

of

Assets

between

an

Investor

and

its

Associate

or

Joint

Venture

and

further
amendments
(effective date deferred indefinitely until the research project on the equity method has been concluded).
The

Group

has

elected

not

to

adopt

the

new

standard

and

amendments

to

existing

standards

in

advance

of

their

effective
dates.

[If

the

Company

/

Group

elected

to

adopt

some

of

the

standards

and

interpretations

in

advance,

the

information

under
IAS

8.28

should

be

disclosed.]

The

Group

anticipates

that

the

adoption

of

the

standard

and

amendments

to

existing

standards
will have no material impact on the financial statements of the
Group
in the period of initial application.
Standards and amendments to the existing standards issued by IASB and adopted by the EU but not yet effective
At the date of authorisation of these financial statements, the following amendments to the existing standards were issued
by IASB and adopted by the EU and which are not yet effective:

IFRS

17

“Insurance

Contracts”

including

amendments

to

IFRS

17

issued

by

IASB

on

25

June

2020



adopted

by

the

EU

on
19 November 2021 (effective for annual periods beginning on or after 1 January 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 (effective for annual periods beginning on or after 1 January 2023),

Amendments

to

IAS

1

“Presentation

of

Financial

Statements”



Disclosure

of

Accounting

Policies

adopted

by

the

EU

on
2 March 2022 (effective for annual periods beginning on or after 1 January 2023),

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

15

2. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (continued)


Amendments

to

IAS

8

“Accounting

Policies,

Changes

in

Accounting

Estimates

and

Errors”



Definition

of

Accounting
Estimates adopted by the EU on 2 March 2022 (effective for annual periods beginning on or after 1 January 2023),

Amendments

to

IAS

12

“Income

Taxes”



Deferred

Tax

related

to

Assets

and

Liabilities

arising

from

a

Single

Transaction
adopted by the EU on 11 August 2022 (effective for annual periods beginning on or after 1 January 2023).
New standards and amendments to the existing standards issued by IASB but not yet adopted by the EU
At

present,

IFRS

as

adopted

by

the

EU

do

not

significantly

differ

from

regulations

adopted

by

the

International

Accounting
Standards

Board

(IASB)

except

for

the following

new

standards

and

amendments

to

the

existing

standards,

which

were

not
endorsed

for

use

in

EU

as

at

the

date

of

publication

of

financial

statements

(the

effective

dates

stated

below

is

for

IFRS

as
issued by IASB)
:

Amendments

to

IAS

1

“Presentation

of

Financial

Statements”



Classification

of

Liabilities

as

Current

or

Non-Current
(effective for annual periods beginning on or after 1 January 2023),

Amendments

to

IAS

1

“Presentation

of

Financial

Statements”



Non-current

Liabilities

with

Covenants

(effective

for
annual periods beginning on or after 1 January 2024),

Amendments

to

IFRS

16

“Leases”



Lease

Liability

in

a

Sale

and

Leaseback

(effective

for

annual

periods

beginning

on

or
after 1 January 2024),

IFRS

14

“Regulatory

Deferral

Accounts”

(effective

for

annual

periods

beginning

on

or

after

1

January

2016)



the
European

Commission

has

decided

not

to

launch

the

endorsement

process

of

this

interim

standard

and

to

wait

for

the
final standard,

Amendments

to

IFRS

10

“Consolidated

Financial

Statements”

and

IAS

28

“Investments

in

Associates

and

Joint
Ventures”



Sale

or

Contribution

of

Assets

between

an

Investor

and

its

Associate

or

Joint

Venture

and

further
amendments
(effective date deferred indefinitely until the research project on the equity method has been concluded).
The

Group

anticipates

that

the

adoption

of

these

new

standards

and

amendments

to

the

existing

standards

will

have

no
material impact on the financial statements of the Company in 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 application of hedge accounting to a portfolio of financial assets or liabilities pursuant to IAS 39: “Financial Instruments: Recognition and Measurement” would not significantly impact the financial statements, if applied as at the balance sheet date.

3.
SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance

The Group’s consolidated financial statements were drawn up in accordance with the provisions of Order no. 2844/2016 for
approval of accounting regulations in accordance with the International Financial Reporting Standards applicable to
companies whose securities are admitted to trading on a regulated market, with subsequent amendments and clarifications
(“OMFP 28422/2016”). These provisions are in accordance with the provisions of the adopted International Financial
Reporting Standards by the European Union (“IFRS EU”).

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

16

3.SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of preparation

The statutory consolidated financial statements have been prepared on a going concern basis and under the historical cost
basis except for certain classes of financial instruments and Property Plant and Equipment that are measured at revalued
amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of
the consideration given in the exchange for assets.
The consolidated financial statements have been prepared on a going concern basis, under the historical cost convention
adjusted for the effects of hyperinflation until December 31, 2003 for share capital and reserves, respectively property,
plant and equipment.

Going concern

Management have, at the time of approving the financial statements, a reasonable expectation that the Group has
adequate resources to continue in operational existence for the foreseeable future. This reasonable expectation is based
on the following:

The Group recorded net profit in the amount of RON 271,613,984 for 2022 (2021: RON 388,654,469 );

As disclosed in Note 23A. the Group is compliant with the financial covenants as stated in the borrowing
agreements and expects to be compliant with them in 2023, as well.
Thus, they continue to adopt the going concern basis of accounting in preparing the consolidated financial statements.

(a)
Property, plant and Equipment and intangible assets

PROPERTY, PLANT AND EQUIPMENT

(i)
Recognition and measurement
Property, plant and equipment are stated initially at cost, which includes purchase price and other costs directly attributable
to acquisition and bringing the asset to the location and condition necessary for their intended use.
The tangible assets are measured at revalued amounts less any accumulated depreciation and any accumulated impairment
losses since the most recent valuation. The assets in progress and advance payments for non-current assets are measured at
cost less any accumulated impairment losses.
Revaluations of property, plant and equipment are made with sufficient regularity to ensure that the carrying amount does
not differ materially from the one that would be determined using the fair value at the end of the reporting period. The last
revaluation was made as of December 31, 2021 by an independent certified appraiser – Darian DRS S.A
When an item of tangible assets is revalued, the accumulated depreciation is eliminated against the gross carrying amount
of that item, and the net amount is restated to the revalued amount of the asset.
The cost of assets internally constructed by the Group includes the following:
i.
material costs and direct labour costs;
ii.
any amounts that can be directly attributable to bringing the asset into working condition;
iii.
costs of dismantle, removal and restoration of the area in which they were placed, when the Group is required to
move the assets and restore land;
iv.
borrowing costs (capitalized).
When parts of an item of property, plant and equipment have different useful lives, they are considered as separate parts.

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

17

3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(a)
Property, plant and Equipment and intangible assets (continued)
PROPERTY, PLANT AND EQUIPMENT (continued)
A provision for unused tangible assets is recorded in the financial statements to the extent that these items are identified.
The borrowing costs directly attributable to the acquisition and installation major construction are capitalized in the cost of tangible assets in progress in accordance with IAS 23 „Borrowing costs”.

Gains or losses from the disposal of an assets (determined by comparing the proceeds from disposal with the carrying value
of tangible assets) are recognized in profit or loss account.

(ii)
Subsequent expenditure on maintenance

Subsequent costs on major maintenance and replacements are included in the asset’s carrying amount or recognized as a
separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to
the
Group
and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized.
Cost of other maintenance, repair and minor improvements are shown on expenses when they are carried out.
Impairment tests are performed with sufficient regularity such that the carrying amounts do not differ materially from those
that would be determined using fair values at the end of each reporting period.

(iii)
Depreciation

Tangible assets are depreciated using the straight-line method over their useful lives. The estimated useful lives used for
tangible assets are as follows:
Category

Useful live

(years)

Buildings / special installations

30-50

Plant and machinery

2-30

Fixtures and fittings

2-15

Fixed assets in progress are not depreciated. The depreciation of the fixed assets in progress commences when the assets are ready for their intended use.

The estimated useful lives, residual values and depreciation method are reviewed periodically to be ensured their consistency
with the estimated period of economic benefits that will result from the use of assets.

(iv)
Revaluation reserve
The difference between the revalued amount and the net carrying amount of property, plant and equipment is recognised
as revaluation reserve included in equity.
If an asset’s carrying amount is increased as a result of a revaluation, the increase is recognised and accumulated in equity
under the heading of revaluation reserve. However, the increase is recognised in profit and loss to the extent that it reverses
a revaluation decrease of the same amount of the asset previously recognised in profit and loss.
If an asset’s carrying amount is decreased as a result of a revaluation, the decrease is recognised in profit or loss. However,
the decrease is recognized in equity in revaluation reserves if there is any credit balance existing in the revaluation reserve in
respect of that asset.

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

18

3.SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(a)
Property, plant and Equipment and intangible assets (continued)
PROPERTY, PLANT AND EQUIPMENT (continued)
The revaluation surplus included in equity in respect of an item of property, plant and equipment may be transferred
directly to retained earnings when the asset is derecognised. This may involve transferring the whole of the surplus when
the asset is retired or disposed of. Transfers from revaluation surplus to retained earnings are not made through profit or
loss.
The effects of taxes on income, if any, resulting from the revaluation of property, plant and equipment are recognised and
disclosed in accordance with IAS 12 Income Taxes.

(v)
Impairment of non-financial assets

The carrying amounts of the Group ‘s non-financial assets, other than inventories and deferred tax assets are reviewed at
each reporting date to determine whether there is evidence of the existence of any impairment. An impairment loss is
recognized if the carrying amount of an asset or cash-generating unit exceeds its estimated recoverable amount.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and fair value less costs to sell. In
determining value in use, the expected future cash flows are discounted to determine the 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 impairment
testing, assets that cannot be tested individually are grouped in the smallest group of assets that generate cash inflows from
continuing use and that are largely independent of the cash inflows from other assets or group of assets (“cash-generating
unit”).
An impairment loss should be recognised in profit or loss immediately unless it relates to an asset carried at a revalued
amount. If an asset has been revalued (e.g. an item of property, plant and equipment), the impairment loss is dealt with as a
revaluation decrease in accordance with the relevant Standard, (in this case, IAS 16).
For all assets, impairment losses recognized in prior periods are assessed at each reporting date to determine whether there
is evidence that the loss has decreased or no longer exists.
An impairment loss is reversed if there have been changes in the estimates used to determine the recoverable amount. An
impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that
would have been determined, net of depreciation, if no impairment had been recognized.

(vi)
Reclassification to and from investment property

The
Group
reclassifies elements of plant, property and equipment as investment property or elements of investment
property to plant, property and equipment when:

when there is a change in use, a change in use occurs when the property meets, or ceases to meet, the definition
of investment property and there is evidence of the change in use;
end of owner-occupation, for a transfer from owner-occupied property to investment property

INTANGIBLE ASSETS

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a
business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried
at cost less any accumulated amortisation and any accumulated impairment losses.
Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is
reflected in the income statement in the year in which the expenditure is incurred. The useful lives of intangible assets are
assessed as either finite or indefinite.

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

19

3.SIGNIFICANT ACCOUNTING POLICIES (continued)

(a)
Property, plant and Equipment and intangible assets (continued)
INTANGIBLE ASSETS
(continued)
Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is
an indication that the intangible asset may be impaired. The estimated useful lives used for intangible assets are as follows:
Category

Useful live

Licenses

2 years

Patents

2-12 years

Concessions

2 years

Trademarks and customers lists

Indefinite useful life

The amortisation period and the amortisation method for an intangible asset with a finite useful life is reviewed at least at
each financial year end.
Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the
asset is accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in
accounting estimates.
The amortisation expense on intangible assets with finite lives is recognised in the income statement in the depreciation and
amortization expense.
Intangible assets with indefinite useful life are tested for impairment annually, irrespective of whether there is any indication of impairment, as well as whenever there is any indication that they may be impaired.

(b)
Investment property

An investment property is held to obtain revenues from rentals or to increase the capital or both. Therefore, an investment
property generates cash flows that are to a great extent independent from other assets held by an Group.
The Group’s accounting policy regarding subsequent valuation of investment property is based on the cost model, and subsequently depreciated on its useful life, using the straight line method.

(c)
Foreign currencies

The Group’s operations are in Romania and the functional currency is RON.

In preparing the consolidated financial statements of the Group, transactions in currencies other than the Group ‘s
functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.
At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing
at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates
prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost
in a foreign currency are not retranslated.
Exchange differences on monetary items are recognized in profit or loss in the period in which they arise except for:

Exchange differences on foreign currency borrowings relating to assets under construction for future productive use,
which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those
foreign currency borrowings;

Exchange differences on transactions entered into in order to hedge certain foreign currency risks.

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

20

3.SIGNIFICANT ACCOUNTING POLICIES (continued)

(c)
Foreign currencies (continued)
The official conversion rates used to convert foreign currency denominated balance sheet items at the end of the reporting
periods were as follows:
CCY

December 31,
2022

December 31,
2021

December 31,
2020

EUR

4.9474

4.9481

4.8694

USD

4.6346

4.3707

3.9660

(d)
Trade receivables and other receivables

Trade Receivables and other receivables include invoices issued at nominal value and revenues for goods delivered until the
end of the year but invoiced in the first days after the end of the year. Trade receivables and similar accounts are initially
recognized at transaction price and subsequently presented at amortized cost less impairment losses. Trade and other
receivables do not contain any significant financing component, the amortized costs amounts approximates the fair value.
. Ultimate losses may vary from current estimates.
The nominal value of receivables to be collected in instalments due over one year is discounted considering the best
estimate of an interest rate, to take into account the time value of money and risk profile of the counterparty.
Please refer to note 3 (g) for how the Group recognizes lifetime expected credit losses on trade receivables. The Group uses
the simplified method of expected credit losses.

(e)
Inventories

Inventories are stated at the lower of cost and net realizable value.
Inventories like raw materials, consumables, materials in the form of inventory items, goods and packages are valued at
acquisition cost or the price in foreign currency at the exchange rate on the date of acquisition, plus custom duties, custom
fees and travel expenses such as insurance.
Costs of inventories is determined on a first-in-first-out basis. Net realisable value represents the estimated selling price for
inventories less all estimated costs of completion and costs necessary to make the sale.
If the Group considers it necessary, value adjustments are made for obsolete inventory or scrap.

(f)
Bank deposits, cash and cash equivalents

Cash and cash equivalents comprise cash balances and deposits with an original maturity up to 3 months which are subject
to an insignificant risk in fair value change. Cash in foreign currencies are revalued at the exchange rate at the end of the
period. Bank overdrafts are treated as current liabilities.
Bank deposits refer to those who have an initial maturity of more than 3 months.

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

21

3.SIGNIFICANT ACCOUNTING POLICIES (continued)

(g)
Impairment of financial assets

The Group recognizes a loss allowance for expected credit losses on investments in debt instruments that are measured at
amortized cost or at fair value through other comprehensive income. The amount of expected credit losses is updated at
each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Group
assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.
The Group always recognizes lifetime expected credit losses for trade receivables. The expected credit losses on these
financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for
factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the
forecast direction of conditions at the reporting date, including time value of money where appropriate.
i.
Definition of default
The Group considers the following as constituting an event of default for internal credit risk management purposes as
historical experience indicates that financial assets that meet either of the following criteria are generally not recoverable:

when there is a breach of financial covenants by the debtor; or

information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its
creditors, including the Group, in full (without taking into account any collateral held by the Group).
Irrespective of the above analysis, the Group considers that default has occurred when a financial asset is more
than 90 days past due unless the Group has reasonable and supportable information to demonstrate that a more lagging
default criterion is more appropriate.
ii.
Credit-impaired financial assets
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash
flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about
the following events:
a)
significant financial difficulty of the issuer or the borrower;
b)
a breach of contract, such as a default or past due event (see (ii) above);
c)
the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty,
having granted to the borrower a concession(s) that the lender(s) would not otherwise consider;
d)
it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or
e)
the disappearance of an active market for that financial asset because of financial difficulties.
iii.
Write-off policy
The Group writes off a financial asset when there is information indicating that the debtor is in severe financial
difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has
entered into bankruptcy proceedings. Financial assets written off may still be subject to enforcement activities under the
Group’s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in
profit or loss.

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

22

3.SIGNIFICANT ACCOUNTING POLICIES (continued)

(g)
Impairment of financial assets (continued)
iv.
Measurement and recognition of expected credit losses
The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude
of the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given
default is based on historical data adjusted by forward-looking information as described above. As for the exposure at
default, for financial assets, this is represented by the assets’ gross carrying amount at the reporting date.
For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows that are due to
the Group in accordance with the contract and all the cash flows that the Group expects to receive, discounted at the
original effective interest rate.
The Group recognises an impairment loss and reversal of impairment loss in profit or loss for all financial assets in the scope
of expected credit loss (ECL) model with a corresponding adjustment to their carrying amount through a loss allowance
account, except for investments in debt instruments that are measured at fair value through other comprehensive income
(FVTOCI, for which the loss allowance is recognised in other comprehensive income and accumulated in the investment
revaluation reserve, and does not reduce the carrying amount of the financial asset in the statement of financial position.

Derecognition of financial assets

The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the
transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have
to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group
continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and
the sum of the consideration received and receivable is recognised in profit or loss.

(h)
Share capital

Ordinary shares are classified as part of equity. The Group recognizes changes in the share capital as provided by law and
only after their approval by the Shareholders and registration at Trade Register. Additional costs directly attributable to issue
of shares are recognized as a deduction from equity, net of the effects of taxation.

(i)
Trade and other payables

Trade payables and other liabilities are initially recorded at fair value and subsequently measured using the effective interest
method and include the invoices issued by suppliers of goods and services rendered.

(j)
Interest bearing loans

Interest bearing borrowings are recognized initially at fair value, net of transaction costs. Subsequent to initial recognition,
borrowings are presented at amortized cost, any difference between cost and redemption value being recognized in the
income statement over the period of a loan based on the effective interest rate.
Transaction costs and commitment fees on loans are amortized over the repayment period of the loan in accordance with effective interest rate method.

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

23

3.SIGNIFICANT ACCOUNTING POLICIES (continued)

(k)
Leasing

The Group as lessee
The Group assesses whether a contract is or contains a lease component, at inception of the contract. The Group recognises
a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except
for short-term leases (with a lease term of 12 months or less) and leases of low value assets (of less than USD 5,000). For
these leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the
lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased
assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted by using the interest rate implicit in the lease. If this rate cannot be readily determined, the Group uses its
incremental borrowing rate.
The lease liability is presented as a separate line in the consolidated statement of financial position. The lease liability is
subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective
interest method) and by reducing the carrying amount to reflect the lease payments made.
The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset)
whenever:

the lease term has changed or there is a significant event or change in circumstances resulting in a change in the
assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the
revised lease payments using a revised discount rate;

the lease payments change due to changes in an index or rate or a change in expected payment under a
guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease
payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating
interest rate, in which case a revised discount rate is used)

a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the
lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease
payments using a revised discount rate at the effective date of the modification.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease
transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a
purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation
starts at the commencement date of the lease.
The right-of-use assets are presented as a separate line in the consolidated statement of financial position.
Please refer to note 3 (a) (v) for the accounting policy for impairment testing.

(l)
Employee benefits

The Group, in the normal course of business, makes payments to the Romanian State on behalf of its employees for
pensions, health care and unemployment cover. The cost of these payments is charged to profit or loss account in the same
period as the related salary cost.
The Group pays employees retirement benefits, benefits which are defined in the Collective Labor Agreement of the Group.

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

24

3.SIGNIFICANT ACCOUNTING POLICIES (continued)

(l)
Employee benefits (continued)
For defined benefit retirement benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurements comprising actuarial gains and losses, the effect of the asset ceiling (if applicable) and the return on plan assets (excluding interest) are recognised immediately in the statement of financial position with a charge or credit to other comprehensive income in the period in which they occur. Remeasurements recognized in other comprehensive income are not reclassified.

(m)
Governmental Grants

Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions
attaching to them and that the grants will be received.
Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises as
expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose primary
condition is that the Group should purchase, construct or otherwise acquire non-current assets (including property, plant
and equipment) are recognised as deferred income in the consolidated statement of financial position and transferred to
profit or loss on a systematic and rational basis over the useful lives of the related assets.
Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving
immediate financial support to the Group with no future related costs are recognised in profit or loss in the period in which
they become receivable.

(n)
Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is
probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation.
Provisions are determined by discounting the expected future cash flows using a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. Unwinding of the discount is recognized as
financial expense. Where the effect of time value of money is material, the amount of a provision is the present value of the
expenditures that are foreseen to be required to settle the obligation.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a
receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the
receivable can be measured reliably.
Onerous contracts
Present obligations arising under onerous contracts are recognized and measured as provisions. An onerous contract is
considered to exist where the
Group
has a contract under which the unavoidable costs of meeting the obligations under the
contract exceed the economic benefits expected to be received from the contract.

Decommissioning provisions

Liabilities for decommissioning costs are recognized when the Group has an obligation to dismantle and remove a facility or
an item of plant and to restore the site on which it is located, and when a reliable estimate of that liability can be made.
According with the Integrated Environmental Authorisation no. 1/10.01.2013 from the Agency of Environmental Protection
Bacau, the Group should dismantle the equipment when the activity will be ceased, and restore the land to its initial
condition. As at December 31, 2022, the Group have no plans to cease totally or partially the Group’s activity.

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

25

3.SIGNIFICANT ACCOUNTING POLICIES (continued)

(n)
Provisions (continued)
However, a decommissioning provision was recorded in relation to warehouses with dangerous and non-hazard substances for which the decommissioning part should be performed in order to comply with the environmental requirements.

(o)
Income tax

Income tax expenses comprise current tax and deferred tax.
Current tax is the tax expected to be paid or received for taxable income or loss realized in the year, using tax rates enacted
or substantively enacted at the reporting date, and any adjustment to the payment obligations of corporation tax for the
previous years. Current tax payable also includes any tax arising from declaring dividends.

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the tax base used to calculate the tax. Deferred tax is not recognized for the following
temporary differences:


the initial recognition of assets or liabilities originating in a transaction that is not a business combination and
that is not affecting the accounting or taxable profit or loss;

differences on investments in subsidiaries or jointly controlled entities, to the extent that it is probable that they
will not be reversed in the foreseeable future; and

taxable temporary differences arising from the initial recognition of goodwill.
Deferred tax receivables and liabilities are offset only if there is a legally enforceable right to offset current tax liabilities and
receivables, and relate to taxes levied by the same taxation authority to the same Group or different taxable Group, and the
Group intends to settle its current tax assets and liabilities on a net basis.
A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences to the extent that
it is probable the realization of taxable profits which will be available in the future and will be used. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that a tax benefit will be
realized. Effect of tax rate change on deferred tax is recognized in profit or loss, except when it relates to items recognized in
other comprehensive income or directly in equity.

Statutory income tax rate for the year ended December 31, 2022 was 16% (December 31, 2021: 16%).

(p)
Related parties

Companies are considered related if one party, through ownership, contractual rights, family relationship or other kind, has
the opportunity to directly or indirectly control or significantly influence the other party.

(q)
Revenues

Revenues are measured
in accordance with IFRS 15 – Revenues from Contracts with Customers
.
IFRS 15 establishes a 5-step model to record the revenues resulted from contracts with customers:

Step 1: Identification of a contract with a customer

Step 2: Identification of performance obligations established in the contract.

Step 3: Determination of the transaction price

Step 4: Allocation of the transaction price for the performance obligations included in the contract

Step 5: Recognition of revenues as the company fulfils each performance obligation
In accordance with IFRS 15, revenues are recognized in the amount which reflects the consideration at which an entity
expects to be entitled in exchange of the transfer of goods or services to a customer

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

26

3.SIGNIFICANT ACCOUNTING POLICIES (continued)

(q)
Revenues (continued)
Revenues from sales of goods
Revenue from sales of goods is recognized at a point in time when it transfers control of a product to the buyer.
The consideration promised in sales contracts doesn’t include a variable consideration such as discounts, rebates, refunds,
credits, price concessions, incentives, performance bonuses or other similar items.
The Group invoices the customer for the agreed-upon price with a typical 30-day payment terms, some group of clients
might have a maximum length of 90-day payment terms. Advance payments are requested by the Group to the external
clients and once the advance is received the goods are delivered in less than 30 days.
The Group does not applies long term frame contracts with minimal purchase commitment as all purchases are ad-hoc
orders.
In accordance with IFRS 15, the revenues will be recognized when a customer gets control of the goods. The Group delivers
goods under contractual conditions based on delivery terms.
For the contracts with customers, the sale of goods (mainly polyols, chloralkali and oxo alcohols products) is generally
estimated to be one single performance obligation. The Group
charges extra for shipping if the customer requires delivery
services and the delivery fees are included in the price of products sold. Thereby delivery necessarily occurs before control
of the goods transfers to the customer and the Group policy is to consider that the delivery fees are not a separate service
provided to the customer and are included in the transaction price. The Group does not provide transportation services as a
standalone service and these are done in connection with the sale of goods to certain customers.
The Group expects that the revenue recognition will take place at a certain moment in time, when the control of the asset is
transferred to the customer, namely upon delivery of the goods in accordance with the Incoterms established. The main
incoterm used by the Group is Free Carrier “FCA” is on over 70% of the Group’s sales followed by Delivered at Place “DAP”,
Delivered Duty Paid “DDP” and Carriage and Insurance Paid to “CIP”.
As at December 31, 2022 and 2021 the Group didn’t have any bill-and-hold arrangement concluded.
Revenues from service
Revenue from sales of services is measured based on the consideration to which the Group expects to be entitled in a
contract with a customer. The Group recognises revenue when it transfers control of a service to a
customer. The services
provided by the Group are recognized monthly once the service is performed. The
Group applies a typical 30-day payment
terms

(r)
Financial income and expenses

Financial income includes interest income, dividend income, changes in fair value of financial assets through profit or loss.
Interest income is recognized as it accumulates in profit or loss using the effective interest method. Dividend income is
recognized in profit or loss at the date when is determined the Group’s right to receive dividends.
Financial expenses comprise interest expenses of loans, unwinding of the discount of provisions, changes in the fair value of
financial assets recognized at fair value through profit or loss.
All borrowing costs that are not directly attributable to an acquisition, construction or production of assets on long-term, are
recognized in profit or loss, using the effective interest method.
Gains and losses on exchange differences are carried on a net basis.

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

27

3.SIGNIFICANT ACCOUNTING POLICIES (continued)

(s)
Contingencies

Contingent liabilities are not recognized in the consolidated financial statements. They are presented if there is the
possibility of an outflow of resources representing possible economic benefits, but not probable, and / or the amount can be
estimated reliably. A contingent asset is not recognized in the accompanying consolidated financial statements, but
disclosed when an inflow of economic benefits is probable but not remote and the amount cannot be reliably estimate

(t)
Fair value

Certain accounting policies of the Group and presentation of information requirements need the determination of fair value
for financial assets and liabilities such as for non-financial. The fair values were determined in order to evaluate and present
the information in the consolidated financial statements using the methods described below. When applicable, further
information about the assumptions used in determining fair values are disclosed specific to the asset or liability.

(u)
Business combinations

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business
combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of assets transferred
by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interest issued by the
Group in exchange for control of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value at the
acquisition date, except that:

deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are recognised
and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively;

liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based
payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree
are measured in accordance with IFRS 2 Share-Based Payments at the acquisition date (see below); and

assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held
for Sale and Discontinued Operations are measured in accordance with that Standard.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests
in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the
acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the
acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration
transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held
interest in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain.

When the consideration transferred by the Group in a business combination includes contingent consideration arrangement,
the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration
transferred in a business combination. Changes in fair value of the contingent consideration that qualify as measurement
period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period
adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which
cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.

The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement
period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as
equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Other
contingent consideration is remeasured to fair value at subsequent reporting dates with changes in fair value recognised in
profit or loss.
When a business combination is achieved in stages, the Group’s previously held interests in the acquired entity are
remeasured to its acquisition-date fair value and the resulting gain or loss, if any, is recognised in profit or loss. Amounts
arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other
comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were
disposed of.

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

28

3.SIGNIFICANT ACCOUNTING POLICIES (continued)

(u)
Business combinations (continued)
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the
combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those
provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are
recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if
known, would have affected the amounts recognised as of that date.

(v)
Investments in associates

An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a
joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee
.

The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of
accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with
IFRS 5.
Under the equity method, an investment in an associate is recognised initially in the consolidated statement of financial
position at cost and adjusted thereafter to recognise the Group’s share of the profit or loss and other comprehensive
income of the associate. When the Group’s share of losses of an associate exceeds the Group’s interest in that associate
(which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate), the
Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group
has incurred legal or constructive obligations or made payments on behalf of the associate.
An investment in an associate is accounted for using the equity method from the date on which the investee becomes an
associate. On acquisition of the investment in an associate, any excess of the cost of the investment over the Group’s share
of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included within
the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets and
liabilities over the cost of the investment, after reassessment, is recognised immediately in profit or loss in the period in
which the investment is acquired.

(w)
Consolidation of entities under common control

Acquisitions of entities under common control is a transaction where the acquired entities are ultimately controlled by the
same party or parties both before and after the consolidation, and that control is not transitory. Under the predecessor
value method, the consolidation is performed as follow:

the acquired assets and liabilities are recorded at their existing carrying values;

no goodwill is recorded, the surplus from the acquisition is recorded in the Group retained earnings;

the carrying amounts of assets, liabilities, income and expenses of entities under common control have
been aggregated and all balances and transactions between the entities have been eliminated.

4.
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, which are described in note 3, the directors are required to make
judgements (other than those involving estimations) that have a significant impact on the amounts recognised and to make
estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical experience and other factors that are considered
to be relevant.
Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised 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 periods.

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

29

4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (continued)

Critical judgements in applying the Group’s accounting policies
The

following

are

the

critical

judgements,

apart

from

those

involving

estimations

(which

are

presented

separately

below),

that
the

management

have

made

in

the

process

of

applying

the

Group’s

accounting

policies

and

that

have

the

most

significant
effect on the amounts recognised in financial statements.
Revaluation of tangible assets
The Group records its tangible assets based on the revaluation method. The last revaluation of property plant and
equipment has been performed as at December 31, 2021, using the depreciated cost method and adjusted, as necessary,
based on an impairment test exercise.

Impairment of tangible and intangible assets

At each balance sheet date, the Group reviews the carrying amounts of the intangible and tangible assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). As at
December 31, 2022 and December 31, 2021 respectively, the management assessed if there is any impairment indicators for
tangible and intangible assets. There was no impairment indicator identified.
In assessing the recoverable amount of tangible and intangible assets, management estimates future cash flows 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 tangible and intangible assets for which the estimates of future cash flows have not been adjusted.
The Company considers that the disposal costs are not negligible and the fair value less costs of disposal of the revalued
asset is necessarily less than its fair value.
The Group considers that the disposal costs of the tangible assets are not negligible and the fair value less costs of disposal
of the revalued asset is necessarily less than its fair value. Therefore, the revalued asset will be impaired if its

fair values less

cost to sell

is less than its revalued amount. In this case, after the revaluation requirements have been applied, the Group
applies this to determine whether the asset may be impaired.

Recoverable amount for intangible assets with indefinite useful life (trademarks and customer lists) is determined annually
as the fair value less costs to sell of the specific intangible asset. The Group determine the fair value for impairment analysis
specifically for each item of intangible assets with indefinite useful life.

When measuring the fair value of tangible and intangible assets, the Group uses market observable data as far as possible.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques
as follows:


Level 1: quoted prices (unadjusted) in active markets for identical assets;

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset, either directly (i.e. as
prices) or indirectly (i.e. derived from prices);

Level 3: inputs for the asset that are not based on observable market data (unobservable inputs).
The budgets used includes forecast for revenue, raw materials, utilities, staff costs and other operating expenses and income
based on current and anticipated market conditions and are approved by the board. However, the budgets used are subject
to uncertainties mainly determined by the market volatility and assumptions used by management, the headroom is
significant.

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period that
may have a significant risk of causing a material adjustment to the carrying amounts of liabilities within the next financial
year, are discussed below.

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

30

4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (continued)

Useful life’s of property, plant and equipment items
The management reviews for adequacy the estimated useful lives of property, plant and equipment at the end of each
annual reporting period.
Provisions and contingent liabilities
The management exercises judgment in measuring and recognizing provisions (e.g., decommissioning provision, retirement
provision, CO2 emissions provision, commercial litigation, etc.) and the exposures to contingent liabilities related to pending
litigation or other outstanding claims subject to negotiated settlement, mediation, arbitration or government regulation, as
well as other contingent liabilities. Judgment is necessary in assessing the likelihood that a pending claim will succeed, or a
liability will arise, and to quantify the possible range of the financial settlement. Because of the inherent uncertainty in this
evaluation process, actual losses may be different from the originally estimated provision.

5.
REVENUES

The following is an analysis of the Group’s revenue for the year from continuing operations.
Year ended
December 31,
2022

Year ended
December 31,
2021

Sales of finished goods

2,134,650,231

2,170,556,518

Services rendered

7,940,980

3,072,833

Sale of goods purchased for resale

89,027,959

34,069,277

Sales of residual products

630,655

51,638

Revenues from transportation services

31,333,880

27,931,954

Total

2,263,583,705

2,235,682,220

Presentation of revenue on business lines:
Year ended
December 31,
2022

Year ended
December 31,
2021

Polyols

1,095,896,741

1,483,901,682

Chloralkali

995,302,506

442,133,305

Oxo-alcohols

66,746,104

261,699,919

Goods for resale

89,027,959

34,069,277

Other

16,610,395

13,878,037

Total

2,263,583,705

2,235,682,220

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

31

5. REVENUES (continued)

Presentation of revenues on geographical segments:

Year ended
December 31,
2022

Year ended
December 31,
2021

Europe

2,092,939,716

1,901,966,292

Middle East

153,819,813

250,270,969

America

5,317,899

17,060,435

Asia-Pacific

10,105,615

57,213,981

Africa

1,400,662

9,170,543

Total

2,263,583,705

2,235,682,220

Presentation of revenue on countries:

Year ended
December 31,
2022

Year ended
December 31,
2021

Total sales

2,263,583,705

2,235,682,220

Domestic sales

666,031,508

485,451,509

Export sales

1,597,552,197

1,750,230,711

Out of which:

Poland

375,375,331

516,194,880

Turkey

153,045,518

238,202,336

Bulgary

147,469,036

70,798,524

Italy

134,002,652

109,317,532

Hungary

125,482,910

140,419,596

Bosnia and Herzegovina

73,364,518

19,229,550

Germany

68,423,055

105,836,253

Ukraine

68,118,694

59,918,888

Czech Republic

61,860,992

44,009,939

Belgium

57,963,726

56,193,754

Other

332,445,765

390,109,459

As at December 31, 2022, the Group has sales commitments in the amount of RON 262,995,623 (December 31, 2021: RON
1,985,196,366), the entity expects to recognise as revenue in 2023 the amount disclosed.

6.
OTHER GAINS AND LOSSES

Year ended
December 31,
2022

Year ended
December 31,
2021

Net loss/(gain) from bad debts written off

6,067

18,602

Net loss/(gain) from provisions

7,529,741

30,577,917

Net loss/(gain) from foreign exchange

85,500

(2,760,282)

Net loss/(gain) from impairments of current assets

(5,521,300)

1,765,249

Net loss/(gain) on disposed fixed assets

(171,926)

(445,200)

Net loss/(gain) from impairments of financial assets

8,655,349

875,592

Other gains and losses

10,620

(385)

Total

(10,594,051)

30,031,493

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

32

7.RAW MATERIALS AND CONSUMABLES

Year ended
December 31,
2022

Year ended
December 31,
2021

Raw materials

698,663,708

736,709,982

Other consumables and inventories

38,815,063

30,382,919

Total

737,478,771

767,092,901

8.
EMPLOYEE BENEFITS EXPENSES

Year ended
December 31,
2022

Year ended
December 31,
2021

Wages and salaries

145,444,674

159,833,797

out of which:

– amount paid to management

22,339,330

22,646,872

– amount paid to board of directors

11,282,590

14,163,983

Meal tickets expenses

10,013,355

10,636,407

Gift tickets expenses

Holiday tickets expenses

4,606,850

18,550

Social security expenses

9,836,016

9,589,904

Total

169,900,895

180,078,658

9.
DEPRECIATION AND AMORTISATION

Year ended
December 31,
2022

Year ended
December 31,
2021

Depreciation of right of use asset

8,820,555

4,995,437

Depreciation of investment property

1,893,860

648,137

Depreciation of property plant and equipment

138,823,571

98,817,556

Amortization of intangible assets

4,450,419

6,661,739

Total

153,988,404

111,122,869

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

33

10.OTHER THIRD PARTY SERVICES

Year ended
December 31,
2022

Year ended
December 31,
2021

Consulting expenses

832,371

1,379,554

Other third party out of which:

44,212,208

28,347,674

Logistic services

10,809,980

10,195,438

Security services

4,266,098

3,333,780

Consulting services

1,057,861

2,069,861

Monitoring of waste water

946,904

1,057,341

Other services

27,131,365

11,691,254

Total

45,044,579

29,727,228

11.
OTHER INCOME

Year ended
December 31,
2022

Year ended
December 31,
2021

Compensations, fines and penalties

50,567

146,321

Amortization of investment subsidies

2,178,343

2,315,162

State-aid for indirect greenhouse emission costs for 2021*

32,404,226

Other income

3,005,545

2,574,086

Total

37,638,681

5,035,569

* The Group benefited from a state aid scheme provided by the Romanian Government to support companies in the sectors
and subsectors exposed to a significant risk of relocation due to the transfer of the cost of greenhouse gas emissions to the
price of electricity. The measure covers indirect emission costs incurred in years 2021 and 2022.
The Group recorded as Other income the amount of RON 32,404,226 representing the subsidy for 2021 indirect emission
cost. The subsidy related to 2022 indirect emission costs in the amount of RON 64,173,308 has been recorded under Water
and energy expenses in the Consolidated Statement of Profit or loss and other comprehensive income. The aid scheme was
approved by the Government in October 2022 therefore, the entries were performed by the Group in 2022 when was
certain that the aid is granted by the Government.

12.
OTHER EXPENSES

Year ended
December 31,
2022

Year ended
December 31,
2021

Penalty expenses*

19,758,878

21,636,468

Sponsorship granted

14,248,728

14,065,513

Other taxes, duties and similar expenses

5,753,272

5,353,835

Insurance premiums

2,579,799

4,763,729

Royalties and rental expenses

4,152,564

1,750,655

Other operating expenses

5,820,081

1,709,884

Entertaining, promotion and advertising

1,641,212

1,584,379

Travel and accommodation expenses

1,373,721

618,551

Compensations, fines and penalties

1,397,092

610,306

Transportation expenses

440,178

480,954

Post and telecommunication expenses

275,645

269,930

Materials not stored

95,502

77,963

Total

57,536,672

52,922,167

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

34

12.OTHER EXPENSES (continued)

*The penalty expenses for the year 2022 in amount of RON 19,758,878 (December 31, 2021: RON 21,636,468) represent
penalties for exceeding the maximum admissible concentration of chemical indicators in wastewater, paid to Romanian
Waters and varies depending on propylene production level.

13.
FINANCE COSTS

Year ended
December 31,
2022

Year ended
December 31,
2021

Commissions and fees paid

277,898

13,399,271

Warrant expenses

14,210,214

Interest expense

20,123,112

66,952,514

Effects of foreign exchange rate changes on the balance of loans held in
foreign currencies

1,215,678

9,134,797

Total

21,615,668

103,696,796

14.
INCOME TAX EXPENSE

Year ended
December 31,
2022

Year ended
December 31,
2021

Current income tax expense

56,681,502

70,655,027

Deferred tax (gain) / expense

(10,013,865)

(9,936,704)

Income tax expense/(revenue)

46,667,637

60,718,323

Accounting profit before tax

318,281,621

449,372,792

Income tax expense/(gain) calculated at 16%

59,925,059

71,899,647

Sponsorship

(377,880)

(410,512)

Effect of non-taxable income

Effect of reinvested profit*

(463,253)

(752,542)

Effect of non-deductible expenses

5,008,456

3,694,909

Effect of bonification

Effect of other permanent differences

(4,480,135)

178,503

Effect of other fiscal facilities

(9,868,076)

(9,547,194)

Legal reserve

(3,076,534)

(4,344,488)

Income tax expense/(gain) for the year

46,667,637

60,718,323

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

35

14.
INCOME TAX EXPENSE (continued)

Components of deferred tax liability:

Cumulative
temporary
differences
2022

Deferred tax
(asset) / liability
2022

Cumulative
temporary
differences
2021

Deferred tax
(asset) / liability
2021

Provisions and retirement benefit obligation

34,683,970

5,549,435

52,503,344

8,400,535

Property, plant and equipment

(807,962,043)

(129,273,927)

(894,496,814)

(143,119,490)

Other intangible assets

(121,473,111)

(19,435,698)

(125,641,276)

(20,102,604)

Right of use and lease liability

762,731

122,037

813,017

130,083

Impairment allowances for financial investments

27,991,559

4,478,649

36,646,908

5,863,505

Impairment allowances for inventories

5,597,608

895,617

1,940,689

310,510

Impairment allowances for trade and other receivables

2,991,558

478,649

8,142,409

1,302,785

Loans

Loans interest deductible in the next years

Trade and other payables

6,552,185

1,043,550

6,619,528

1,059,126

TOTAL

(850,855,542)

(136,141,686)

(913,472,195)

(146,155,550)

Impact in the income statement

(10,013,865)

(9,936,704)

Impact in other comprehensive income

69,965,234

Variation in deferred tax liability

(10,013,865)

60,028,530

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

36

15.
PROPERTY, PLANT AND EQUIPMENT

Land

Buildings and
other
constructions

Plant,
machinery and
equipment

Furniture and
fittings

Assets in
progress

Decommissionin
g provision

Advance
payments non-
current assets

Total

COST

At January 1, 2021

103,628,985

419,129,181

1,079,805,013

5,195,100

79,445,886

6,634,752

2,724,604

1,696,563,519

Increase, out of which:

20,516,255

275,238,397

314,150,214

595,534

50,323,608

24,992,841

685,816,849

Increase from revaluation

19,500,287

273,457,209

299,580,362

439,402

592,977,261

Transfers

1,781,189

7,109,332

156,132

5,806,081

14,852,733

Decrease, out of which:

9,992,004

7,250,937

104,251,077

315,684

9,450,203

5,806,081

137,065,986

Decrease from revaluation

9,992,004

7,187,457

101,046,854

301,604

118,527,919

Transfers

9,046,653

5,806,081

14,852,734

Cancelation of accumulated
amortization

79,358,094

224,198,979

902,760

304,459,834

At December 31, 2021

114,153,236

607,758,547

1,065,505,171

4,572,190

120,319,290

6,634,752

21,911,365

1,940,854,548

Increase, out of which:

5,528,249

20,122,563

53,274,640

1,156,562

207,709,525

27,915,580

315,707,119

Additions

5,528,249

13,351,898

192,301,663

27,915,580

239,097,393

Transfers

15,485,363

29,621,855

1,143,685

15,373,250

61,624,153

Acquisition of subsidiary

10,300,887

12,875

34,611

10,348,373

Transfers from investment
property

4,637,200

4,637,200

Decrease, out of which:

588,062

6,368,292

56,711

47,148,433

15,373,250

69,534,748

Transfers

46,250,904

15,373,250

61,624,154

At December 31, 2022

119,681,485

627,293,048

1,112,411,518

5,672,039

280,880,381

6,634,752

34,453,694

2,187,026,919

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

37

15.
PROPERTY, PLANT AND EQUIPMENT (continued)

Land

Buildings and
other
constructions

Plant,
machinery and
equipment

Furniture and
fittings

Assets in
progress

Decommissionin
g provision

Advance
payments non-
current assets

Total

ACCUMULATED
DEPRECIATION

At January 1, 2021

54,887,360

152,125,668

605,311

5,309,933

212,928,272

Additions

24,534,214

73,365,979

312,558

949,344

99,162,095

Disposals out of which

79,421,574

225,491,647

917,869

305,831,090

Cancelation of accumulated
depreciation

79,358,094

224,198,979

902,760

304,459,834

At December 31, 2021

6,259,277

6,259,277

Additions

31,072,360

107,141,581

496,989

112,641

138,823,571

Acquisition of subsidiary

1,260,915

12,875

1,273,790

Disposals out of which

7,186

2,650,954

2,658,140

Cancelation of accumulated
depreciation

At December 31, 2022

31,065,174

105,751,541

509,864

6,371,918

143,698,497

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

38

15. PROPERTY, PLANT AND EQUIPMENT (continued)

Land

Buildings and
other
constructions

Plant,
machinery and
equipment

Furniture and
fittings

Assets in
progress

Decommissionin
g provision

Advance
payments non-
current assets

Total

IMPAIRMENT ALLOWANCE

At January 1, 2021

65,013,055

67,578,624

253,910

3,235,865

136,081,454

Increase

138,254,841

45,058,291

140,531

183,453,663

Out of which, recognized
in other comprehensive
income

134,609,097

36,873,208

32,669

171,514,974

Decrease

64,872,653

67,548,605

290,125

132,711,383

Out of which, recognized
in other comprehensive
income

57,510,008

28,119,738

85,629,746

At December 31, 2021

138,395,243

45,088,310

104,316

3,235,865

186,823,734

Increase

Decrease

56,335

3,357,826

117

3,414,278

At December 31, 2022

138,338,908

41,730,484

104,199

3,235,865

183,409,456

NET BOOK VALUE

At December 31, 2021

114,153,236

469,363,304

1,020,416,860

4,467,874

117,083,425

375,471

21,911,230

1,747,771,404

At December 31, 2022

119,681,485

457,888,966

964,929,493

5,057,977

277,644,516

262,834

34,453,694

1,859,918,966

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

39

15. PROPERTY, PLANT AND EQUIPMENT (continued)

Measurement of fair value

The Company’s land, buildings and equipment are stated at their revalued amounts, being the fair value at the date of
revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The fair value measurements of the Group’s tangible assets as at 31 December 2021 were performed by Darian DRS S.A. an
independent valuer. Darian DRS S.A. is member of the National Association of Authorised Romanian Valuers, and has
appropriate qualifications and recent experience in the fair value measurement of properties in the relevant locations. The
valuation conforms to International Valuation Standards and was based on recent market transactions on arm’s length
terms for similar properties, whenever possible and discounted cash-flows method.
The Group considers that there is no material change in the fair value of the property, plant and equipment as of 31
December 2022 compared with the last revaluation.
Property, plant and equipment located on Onesti industrial platform has been mortgaged for bank loans (please see note
23.a). The term loans from CEC Bank and Alpha Bank are jointly secured with mortgage on property, plant and equipment
located on the industrial platform from Onesti and assignment of the insurance policy.
The Group has developed internally fixed assets in amount of RON 23,221,751 for 2022 and RON 16,188,982 for 2021. These
are included under cost of buildings and other constructions.
Had the Group’s freehold land, buildings and equipment been measured on a historical cost basis, their carrying amount
would have been as follows:
December 31,
2022

December 31,
2021

January 1,
2021

Freehold land

88,274,785

38,723,277

37,676,622

Buildings

269,622,589

171,943,567

167,724,112

Equipment and others

776,096,676

526,689,544

507,378,062

Total

1,133,994,050

737,356,388

712,778,796

CHIMCOMPLEX S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

40

16.
INTANGIBLE ASSETS

Concessions,
patents, licenses,
trademarks and
similar rights and
assets

Other intangible
assets

Total

COST

At January 1, 2021

149,825,054

1,365,815

151,190,868

Additions

247,855

10,049

257,904

Disposals

247,663

574,928

822,591

At December 31, 2021

149,825,246

800,936

150,626,181

Additions

203,061

24,198

227,259

Acquisition of subsidiary

19,597

19,597

Disposals

247,855

247,855

At December 31, 2022

149,780,452

844,731

150,625,183

ACCUMULATED AMORTIZATION

At January 1, 2021

17,789,872

376,020

18,165,893

Amortization expense

6,455,408

206,331

6,661,739

Eliminated on disposals of assets

247,663

574,928

822,591

At December 31, 2021

23,997,617

7,422

24,005,039

Amortization expense

4,433,275

17,144

4,450,419

Acquisition of subsidiary

7,333

7,333

Eliminated on disposals of assets

247,855

9,619