STATUTORY STANDALONE FINANCIAL STATEMENTS – 2022







<br />


CHIMCOMPLEX S.A.
STATUTORY STANDALONE 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 STANDALONE FINANCIAL STATEMENTS
1 – 5
STANDALONE STATEMENT OF FINANCIAL POSITION
6 – 7
STANDALONE STATEMENT
OF PROFIT AND LOSS AND
COMPREHENSIVE INCOME
8 – 9
STANDALONE STATEMENT OF CHANGES IN EQUITY
10
STANDALONE STATEMENT OF CASH FLOW
11 – 12
NOTES TO THE FINANCIAL STATEMENTS
13 – 89

CHIMCOMPLEX S.A.

STANDALONE 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 financial statements.

6

December 31,

December 31,

January 1,

Note

2022

2021

2021

ASSETS

Non-current assets

Property, plant and equipment

15

1,851,483,903

1,747,770,870

1,347,550,462

Right of use asset

23.b

13,844,826

5,906,799

7,242,009

Investment property

17

31,452,222

14,424,776

15,072,913

Intangible assets

16

122,407,778

126,621,140

133,024,975

Investments in associates

18

43,350,542

20,201,792

21,077,384

Investment in subsidiaries

18

16,693,426

1,727,426

1,727,426

Other long term assets

6,718,514

5,093,759

5,811,445

Total non-current assets

2,085,951,211

1,921,746,562

1,531,506,614

Current assets

Inventories

19

237,998,985

157,905,520

95,592,546

Trade and other receivables

20

494,866,553

301,786,646

181,776,698

Short term loans granted

5,327,386

3,536,799

1,259,292

Cash and bank balances

21

40,466,919

147,994,841

40,785,956

Total current assets

778,659,843

611,223,806

319,414,492

Total assets

2,864,611,054

2,532,970,368

1,850,921,106

EQUITY AND LIABILITIES

Capital and reserves

Issued capital

22

1,190,991,169

1,190,991,169

1,182,587,379

Own shares

22

(47,794,795)

(142,454)

Share premium

22

4,669,565

4,669,565

844,028

Legal reserves

109,435,476

90,207,136

63,054,085

Retained earnings

(1,729,903)

(191,109,065)

(551,186,459)

Revaluation reserve

577,222,870

578,340,730

211,023,250

Equity attributable to owners


1,832,794,382

1,672,957,081

906,322,283

LIABILITIES

Non-current liabilities

Subsidies

25

13,778,664

15,450,076

17,606,337

Lease liabilities

23.b

8,705,286

3,444,122

4,211,255

Deferred tax liability

14

136,699,379

147,395,245

87,366,717

Provisions

26

16,302,643

16,459,564

16,710,971

Long term loans

23.a

457,459,739

294,521,275

548,481,115

Other payables

24

10,259,628

598,685

120,193

Total non-current liabilities

643,205,339

477,868,967

674,496,588

CHIMCOMPLEX S.A.

STANDALONE 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 financial statements.

7

December 31,

December 31,

January 1,

Note

2022

2021

2021

Current liabilities

Subsidies

25

27,230,691

2,541,998

1,590,458

Trade and other payables

24

268,916,021

290,517,388

149,196,063

Lease liabilities

23.b

5,949,300

3,465,451

3,987,243

Corporate income tax liability

21,787,658

20,092,468

13,166,042

Provisions

26

18,575,007

36,043,780

11,381,419

Short term loans

23.a

46,152,656

29,483,235

90,781,010

Total current liabilities

388,611,333

382,144,320

270,102,235

Total liabilities

1,031,816,672

860,013,287

944,598,823

Total equity and liabilities

2,864,611,054

2,532,970,368

1,850,921,106

These standalone 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.

STANDALONE 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 financial statements.

8

Year ended
December 31,

Year ended
December 31,

Note

2022

2021

Revenue

5

2,258,532,411

2,235,205,433

Investment income

10,173,263

2,060,902

Other gains and losses

6

5,917,570

(30,000,431)

Cost of commodities sold

(85,016,214)

(28,142,995)

Increase in finished goods and production in progress

74,765,385

42,726,248

Raw materials and consumables

7

(732,826,457)

(767,091,768)

Employees benefits

8

(162,889,823)

(176,525,730)

Depreciation and amortization

9

(152,995,779)

(111,120,202)

Distribution costs

(41,182,892)

(38,932,655)

Water and energy expenses

(738,470,218)

(451,442,533)

Other third party services

10

(47,350,405)

(33,137,259)

Maintenance and repair expenses

(36,763,622)

(29,462,915)

Other income

11

37,638,394

4,965,878

Net revaluation gain or (loss) of property, plant and
equipment

15

(13,480,054)

Other expenses

12

(56,950,723)

(52,841,247)

Finance costs

13

(21,325,737)

(103,694,808)

Profit before tax

311,255,153

449,085,864

Income tax expense

14

(55,919,098)

(70,618,719)

Deferred tax

10,725,868

9,936,604

Profit for the year

266,061,923

388,403,749

Earnings per share:

Basic and diluted earnings per share

0.873

1.605

CHIMCOMPLEX S.A.

STANDALONE 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 financial statements.

9

Note

Year ended
December 31,

Year ended
December 31,

2022

2021

Profit for the year

266,061,923

388,403,749

Other comprehensive income:

Items that will not be reclassified to profit or loss:

Impact of revaluation

15

437,282,713

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

264,944,063

755,721,229

These standalone 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.

STANDALONE 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 financial statements.

10

Share
capital

Own
shares

Share
premium

Legal
reserve

Retained
earnings

Revaluation
reserve

Total

Balance at January 1, 2021

1,182,587,379

844,028

63,054,085


(551,186,459)

211,023,250

906,322,283

Profit for the year

388,403,849

388,403,849

Other comprehensive income –
revaluation gain (note 15)

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

3,825,536

3,825,536

Legal reserves

27,153,051

(27,153,051)

Redemption of own shares (note 22)

(142,454)

26,596

(115,858)

Balance at December 31, 2021

1,190,991,169

(142,454)

4,669,564

90,207,136


(191,109,065)

578,340,730

1,672,957,081

Profit for the year

266,061,923

266,061,923

Dividends distribution

(60,000,000)

(60,000,000)

Other comprehensive income –
revaluation for disposed assets (note 15)

1,117,860

(1,117,860)

Legal reserves

19,228,340

(19,228,340)

Redemption of own shares (note 22)

(47,652,341)

(47,652,341)

Other movement

1,427,719

1,427,719

Balance at December 31, 2022

1,190,991,169

(47,794,795)

4,669,565

109,435,476

(1,729,903)

577,222,870

1,832,794,382

These standalone 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.

STANDALONE 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 financial statements.

11

Year ended
December 31,

Year ended
December 31,

2022

2021

Cash flows from operating activities
Profit before tax

311,255,153

449,085,864

Adjustments for non-cash items:

Interest expense

19,899,778

66,952,514

Impairment loss on investments

(4,205,329)

875,592

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

(35,143,061)

Interest revenue

(3,298,266)

(644,091)

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

149,715

(445,200)

Net loss from provisions

(17,082,434)

30,546,470

Loss from revaluation of property, plant and equipment

48,623,115

Foreign exchange loss, net

1,122,088

6,374,515

Impairment loss on inventories, net

5,529,253

1,783,851

Depreciation and amortization

152,955,779

111,120,202

Impairment gain on trade receivables and other assets, net

(7,953)

Subsidies income

(1,324,683)

(2,156,261)

464,993,101

676,973,510

Movements in working capital:

Decrease/(increase) in inventory

(108,752,984)

(64,096,825)

Decrease/(increase) in trade and other receivables

(62,896,759)

(161,424,837)

Increase/ (decrease) in trade and other liabilities

(167,799,199)

70,452,116

Increase/ (decrease) in subsidies

25,281,713

Subsidy received for costs of electric energy

32,404,226

41,297,958

Cash generated from operating activities

183,230,098

563,201,922

Interest paid

(18,900,685)

(36,565,193)

Income tax paid

(22,307,227)

Net cash generated by/(used) in operating activities

164,329,413

504,329,502

Cash flows from investing activities:

Interest received

3,298,266

644,091

Proceeds from sale of non-current assets

766,958

3,133,290

Acquisition of non-current assets

(164,381,486)

(75,575,347)

Payments for investment in an associate

(18,943,421)

Acquisition of subsidiary

(4,000,000)

Net cash used in investing activities

(183,259,683)

(71,797,966)

CHIMCOMPLEX S.A.

STANDALONE 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 financial statements.

12

Year ended
December 31,

Year ended
December 31,

2022

2021

Cash flow from financing activities:

Proceeds from borrowings*

218,309,765

351,609,499

Lease liabilities repayments*

(8,085,242)

(5,055,761)

Dividends paid

(214,254,817)

(1,065,739)

Repayment of borrowings*

(37,508,762)

(684,034,787)

Share capital increase

12,086,873

Purchase of own shares

(47,652,341)

Net cash (used in)/generated by financing activities

(89,191,397)

(326,459,915)

Net (decrease) / increase in cash and cash equivalents

(108,121,666)

106,071,621

Cash and cash equivalents at beginning of the year

147,994,841

40,785,956

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

593,744

1,137,265

Cash and cash equivalents at end of the year

40,466,919

147,994,841

*The Company presents 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 standalone 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
STANDALONE
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 standalone financial statements of CHIMCOMPLEX S.A. BORZESTI (“the Company”) as at
and for the year ended 31 December 2022.
These are the Company’s first individual financial statements prepared in accordance with IFRSs. The accounting policies set
out in note 3 have been applied in preparing the financial statements for the year ended 31 December 2022, the
comparative information presented in these financial statements for the year ended 31 December 2021 and in the
preparation of an opening IFRS balance sheet at 1 January 2021 (the Company’s date of transition). In preparing its opening
IFRS balance sheet, the Company has adjusted amounts reported previously in financial statements prepared with Romanian
GAAP. An explanation of how the transition from Romanian GAAP to IFRSs has affected the Company’s financial position,
financial performance and cash flows is set out in note 32.
The Company is the parent of Chimcomplex Group, the consolidated financial statements will be published together with
these separate financial statements. Chimcomplex Group includes the following subsidiaries and associates:
% shareholding

Name

Activity

Type

Tax code

Head
Office

Total assets, per
last approved
financial
statements

December 31,
2022

December
31, 2021

Greenhouse
Onesti SRL

Manufacture of
other base inorganic
chemicals

Subsidiary

16030164

Onesti

RON 352,835

99.9998%

99.9998%

A5 Invest

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

Subsidiary

17701390

Onesti

RON 1,664,490

100%

100%

A6 Impex SA

Electricity
production

Associate

21381692

Dej

RON 76,347,870

49.4497%

33.6453%

Sistemplast
SA

General mechanical
operations

Subsidiary

11438007

Ramnicu
Valcea

RON 23,796,680

94,4000%

The Company was established in 1990, based on Government Decision no. 1200/12.11.1990, through division of the Borzesti
Petrochemical Combine and subsequently the full takeover of the assets of the Borzesti Chemical Combine.
On March 15, 1991, it was organized as a commercial company with full state capital and registered at the Trade Registry
Office under no. J04/493/1991.
The company was privatized in 2003, S.C A2 IMPEX SRL Ploiesti taking over from Authority for the Administration of the
State Assets (AAAS) 94.7465% of the company’s share capital at that date.
The registered office is in Onesti, street Industriilor no. 3, Bacau county.
The main activity of the company, according to CAEN 2013 codification, is the manufacture of other basic inorganic chemical
products.
On December 7, 2018, the Company acquired from Oltchim SA the assets (intellectual property rights, land, constructions,
equipments, and investments in progress) related to the sodium chloride, propene oxide, polyol-polyether, oxo-alcohol,
monomer, PVC I, utilities, the wagon park, from the Rm. Valcea industrial platformI.

CHIMCOMPLEX S.A.

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

14
1.
GENERAL INFORMATION (continued)

The company has a branch and seven work points, respectively:
Branch:

Ramnicu Valcea branch, with headquarters in the Municipality of Ramnicu Valcea, Uzinei street no. 1, Valcea
county;
Working points:

Work point in the village of Cazaci, Tarcau commune, Neamt county;

Work point in Pitesti Municipality, Caminelor street, no. 7, Arges county;

Work point in the town of Dej, Bistritei street, no. 63 (room no. 1), Cluj county ;

Work point Bucharest, Bd. Ficusului, no. 44, Bucharest City, sector 1;

Tarcau Fishing Complex work point located in the village of Cazaci, Tarcau commune, Neamt county;

Work point Bucharest Sector 1, Piata PRESEI LIBERE, No. 3-5, City Gate South Tower, Floor 17.

Ownership structure

The Company is listed on the Bucharest Stock Exchange, on the regulated market, Standard Category, Symbol CRC starting
with January 17, 2022.
From July 21, 2015 until January 17, 2022, the Company was listed on the Alternative Trading System, Financial Instruments
Section listed on ATS, Equity Sector, Shares Category, Symbol CHOB.
The shareholding structure is as follows:
December 31, 2022

Ordinary
shares

Percent

Shareholders

CRC Alchemy Holding BV

259,151,301

84.99%

AAAS

27,305,181

8.96%

Legal persons

14,363,583

4.71%

Individuals

4,087,786

1.34%

Total

304,907,851

100%

Activities carried out by the Company
The main object of activity is 2013 CAEN code – the manufacture of basic inorganic chemical products, in accordance with
the provisions of the Company’s Constitutive Act.
The activity that holds the largest share in the income achieved by the company in the period January-December 2022,
according to the CAEN codification, is 2014 – the manufacture of other basic organic chemical products.
The main products manufactured by Chimcomplex SA Borzesti are:

Macromolecular products:
polyethers – polyols for polyurethane foams;

Chlorosodium products
: caustic soda solution 50%, caustic soda flakes, technical sodium hypochlorite, synthetic
hydrochloric acid, liquid chlorine, bottled liquid chlorine;

Organic synthesis products:
propylene oxide, propylene glycol, oxo-alcohols, isopropylamine, methylamines;

Inorganic chlorides
: calcium chloride solution, technical calcium chloride, lime chloride, ferric chloride;
Other products
: demineralized water, concentrated sulfuric acid, ammonia water, chlorocholine chloride

CHIMCOMPLEX S.A.

NOTES TO THE
STANDALONE
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

These standalone annual 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

Company

has

elected

not

to

adopt

the

new

standard

and

amendments

to

existing

standards

in

advance

of

their

effective
dates.

The

Company

anticipates

that

the

adoption

of

the

standard

and

amendments

to

existing

standards

will

have

no

material
impact on the financial statements of the
Company
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),

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),

CHIMCOMPLEX S.A.

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

16
2.
APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (continued)


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

Company

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

Company’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 Company’s standalone 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”).
Basis of preparation
The statutory standalone 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 standalone 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.

CHIMCOMPLEX S.A.

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

17
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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

The Company recorded net profit in the amount of RON
266,061,923

for 2022 (2021: RON 388,403,849);

As disclosed in Note 23A. the Company is compliant with the financial covenants as stated in the borrowing
agreements and expects to be compliant with them in 2023 as well.
Thus management continues to adopt the going concern basis of accounting in preparing the standalone financial
statements.
(a)
Property, plant and Equipment and intangible assets
PROPERTY, PLANT AND EQUIPMENT
(i)
Recognizing 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 Company 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 Company 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.
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.

CHIMCOMPLEX S.A.

NOTES TO THE
STANDALONE
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)
(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 Company 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

Buildings / special installations

30-50 years

Plant and machinery

2-30 years

Fixtures and fittings

2-15 years

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.
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.

CHIMCOMPLEX S.A.

NOTES TO THE
STANDALONE
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)
PROPERTY, PLANT AND EQUIPMENT (continued)
(v)
Impairment of non-financial assets
The carrying amounts of the Company ‘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
Company
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
STANDALONE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

20
3.
SIGNIFICANT ACCOUNTING POLICIES (continued)

(a)
Property, plant and Equipment and 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 a Company.
The Company’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 Company’s operations are in Romania and the functional currency is RON.
In preparing the standalone financial statements of the Company, transactions in currencies other than the Company ‘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
STANDALONE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

21
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 amount 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 if 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 are 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 Company 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.
(g)
Impairment of financial assets
The Company 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
Company assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.

CHIMCOMPLEX S.A.

NOTES TO THE
STANDALONE
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)
The Company 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 Company’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 Company 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 Company, in full (without taking into account any collateral held by the Company).
Irrespective of the above analysis, the Company considers that default has occurred when a financial asset is more
than 90 days past due unless the Company 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 Company 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
Company’s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in
profit or loss.
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 Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the
original effective interest rate.

CHIMCOMPLEX S.A.

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

23
3.
SIGNIFICANT ACCOUNTING POLICIES (continued)

(g)
Impairment of financial assets (continued)
The Company 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 Company 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 Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the
transferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may
have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the
Company 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 Company 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.
(k)
Leasing
The Company as lessee
The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company 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 Company 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 Company uses
its incremental borrowing rate.

CHIMCOMPLEX S.A.

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

24
3.
SIGNIFICANT ACCOUNTING POLICIES (continued)

(k)
Leasing (continued)
The Company as lessee (continued)
The lease liability is presented as a separate line in the standalone 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 Company 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 Company 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 standalone statement of financial position.
Please refer to note 3 (a) (v) for the accounting policy for impairment testing.
(l)
Employee benefits
The Company, 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 Company pays employees retirement benefits, benefits which are defined in the Collective Labor Agreement of the
Company.
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 Company will comply with the conditions
attaching to them and that the grants will be received.

CHIMCOMPLEX S.A.

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

25
3.
SIGNIFICANT ACCOUNTING POLICIES (continued)

(m)
Governmental Grants (continued)
Government grants are recognised in profit or loss on a systematic basis over the periods in which the Company recognises
as expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose
primary condition is that the Company should purchase, construct or otherwise acquire non-current assets (including
property, plant and equipment) are recognised as deferred income in the standalone 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 Company 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 Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that the Company 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 Company 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 Company 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 Company should dismantle the equipment when the activity will be ceased, and restore the land to its initial
condition. As at December 31, 2022, the Company have no plans to cease totally or partially the Company’s activity.
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:

CHIMCOMPLEX S.A.

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

26
3.
SIGNIFICANT ACCOUNTING POLICIES (continued)

(o)
Income tax (continued)

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 reverse 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, and the Company 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 payment 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 fulfills a 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
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 Company 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 Company to the external
clients and once the advance is received the goods are delivered in less than 30 days.
The Company does not apply applies long term frame contracts with minimal purchase commitment as all purchases are ad-
hoc orders.

CHIMCOMPLEX S.A.

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

27
3.
SIGNIFICANT ACCOUNTING POLICIES (continued)

(q)
Revenues (continued)
In accordance with IFRS 15, the revenues will be recognized when a customer gets control of the goods. The Company
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 Company
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 Company 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 Company does not provide
transportation services as a standalone service and these are done in connection with the sale of goods to certain
customers.
The Company 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 Company is Free Carrier “FCA” is on over 50% of the Company’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 Company didn’t have any bill-and-hold arrangement concluded.
Revenues from services
Revenue from sales of services is measured based on the consideration to which the Company expects to be entitled in a
contract with a customer. The Company recognises revenue when it transfers control of a service to a
customer. The
services provided by the Company are recognized monthly once the service is performed. The Company
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 Company’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.

(s)
Contingencies

Contingent liabilities are not recognized in the standalone 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 standalone 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 Company 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 standalone 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.

CHIMCOMPLEX S.A.

NOTES TO THE
STANDALONE
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)
Investments in subsidiaries
Investments in subsidiaries represent the shares held in these entities.
These investments are initially recorded at the acquisition cost and subsequently at the cost less the accumulated
impairment.
At each date of the financial statements, the Company evaluates whether there are indications of loss of value of
investments in subsidiaries.
These indicators refer to important changes that have occurred in the economic environment in which the respective
entities operate, or important changes in the evolution of the financial position, respectively the financial performance of
the entities in which the Company holds interests.
In the situation where there are indications of impairment, the Company performs an impairment test and calculates the
amount of value losses as the difference between the recoverable amount and the net book value.
The loss of value resulting from the impairment tests represents an expense of the current year and is recognized in the
profit and loss account.
(v)
Investments in associates
An associate is an entity over which the Company 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
.

These investments are initially recorded at the acquisition cost and subsequently at the cost less the accumulated
impairment.
At each date of the financial statements, the Company evaluates whether there are indications of loss of value of
investments in associates.
These indicators refer to important changes that have occurred in the economic environment in which the respective
entities operate, or important changes in the evolution of the financial position, respectively the financial performance of
the entities in which the Company holds interests.
In the situation where there are indications of impairment, the Company performs an impairment test and calculates the
amount of value losses as the difference between the recoverable amount and the net book value.
The loss of value resulting from the impairment tests represents an expense of the current year and is recognized in the
profit and loss account.
4.
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the Company’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
STANDALONE
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 Company’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

Company’s

accounting

policies

and

that

have

the

most

significant
effect on the amounts recognised in financial statements.
Revaluation of tangible assets
The Company 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 Company 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 Company 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 Company 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 Company determine the fair value for impairment
analysis specifically for each item of intangible assets with indefinite useful life.
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 Company applies this to determine whether the asset may be
impaired.

When measuring the fair value of tangible and intangible assets, the Company 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.

CHIMCOMPLEX S.A.

NOTES TO THE
STANDALONE
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)

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.
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 Company’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

3,027,029

2,596,046

Sale of goods purchased for resale

89,020,112

34,069,277

Sales of residual products

541,526

51,638

Revenues from transportation services

31,293,513

27,931,954

Total

2,258,532,411

2,235,205,433

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

995,302,505

442,133,305

Oxo-alcohols

66,746,104

261,699,919

Goods for resale

89,020,113

34,069,277

Other

11,566,948

13,401,250

Total

2,258,532,411

2,235,205,433

CHIMCOMPLEX S.A.

NOTES TO THE
STANDALONE
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

2,087,888,422

1,901,489,505

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

2,258,532,411

2,235,205,433

Presentation of revenue on countries:
Year ended
December 31,
2022

Year ended
December 31,
2021

Total sales

2,258,532,411

2,235,205,433

Domestic sales

660,980,214

484,974,722

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 Company 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.

CHIMCOMPLEX S.A.

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

32
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

(7,293,840)

30,546,855

Net loss/(gain) from foreign exchange

(93,590)

(2,760,282)

Net loss/(gain) from impairments of current assets

5,521,300

1,765,249

Net loss/(gain) on disposed fixed assets

149,715

(445,200)

Impairment losses (including reversals of impairment losses) on
financial assets

(4,205,329)

875,592

Other gains and losses

(1,893)

(385)

Total

(5,917,570)

30,000,431

7.
RAW MATERIALS AND CONSUMABLES
Year ended
December 31,
2022

Year ended
December 31,
2021

Raw materials

698,663,708

736,709,983

Other consumables and inventories

34,162,749

30,381,785

Total

732,826,457

767,091,768

8.
EMPLOYEE BENEFITS EXPENSES
Year ended
December 31,
2022

Year ended
December 31,
2021

Wages and salaries

139,752,751

156,630,436

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

9,000,833

10,286,840

Gift tickets expenses

Holiday tickets expenses

4,478,600

18,550

Social security expenses

9,657,639

9,589,904

Total

162,889,823

176,525,730

CHIMCOMPLEX S.A.

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

33
9.
DEPRECIATION AND AMORTISATION

Year ended
December 31,
2022

Year ended
December 31,
2021

Depreciation of right of use asset

8,859,888

4,995,437

Depreciation of investment property

1,893,860

648,137

Depreciation of property plant and equipment

137,791,612

98,814,889

Amortization of intangible assets

4,450,419

6,661,739

Total

152,995,779

111,120,202

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:

46,518,034

31,757,705

Logistic services

10,809,980

10,195,438

Security services

4,150,420

3,333,780

Consulting services

1,047,861

2,069,861

Monitoring of waste water

946,904

1,057,341

Other services

29,562,869

15,101,285

Total

47,350,405

33,137,259

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

3,005,258

2,504,395

Total

37,638,394

4,965,878

* The Company 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 Company 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 Standalone 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.

CHIMCOMPLEX S.A.

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

34
12.
OTHER EXPENSES

Year ended
December 31,
2022

Year ended
December 31,
2021

Penalty expenses

19,786,104

21,636,468

Sponsorship granted

14,075,929

14,060,513

Other taxes, duties and similar expenses

5,605,333

5,292,563

Insurance premiums

2,521,919

4,763,729

Royalties and rental expenses

4,511,683

1,750,655

Other operating expenses

5,292,648

1,702,933

Entertaining, promotion and advertising

1,617,642

1,584,379

Travel and accommodation expenses

1,334,107

611,248

Compensations, fines and penalties

1,397,092

610,306

Transportation expenses

445,578

480,954

Post and telecommunication expenses

269,003

269,642

Materials not stored

93,685

77,857

Total

56,950,723

52,841,247

*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

210,768

13,397,283

Warrant expenses

14,210,214

Interest expense

19,899,778

66,952,514

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

1,215,191

9,134,797

Total

21,325,737

103,694,808

CHIMCOMPLEX S.A.

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

35
14.
INCOME TAX EXPENSE

Year ended
December 31,
2022

Year ended
December 31,
2021

Current income tax expense

55,919,098

70,618,719

Deferred tax (gain) / expense

(10,725,868)

(9,936,604)

Income tax expense/(revenue)

45,193,230

60,682,115

Accounting profit before tax

311,255,153

449,085,864

Income tax expense/(gain) calculated at 16%

49,800,824

71,853,738

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

4,020,965

188,104

Effect of other fiscal facilities

(9,719,348)

(9,547,094)

Legal reserve

(3,076,534)

(4,344,488)

Income tax expense/(gain) for the year

45,193,230

60,682,115

CHIMCOMPLEX S.A.

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

36
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

Cumulative
temporary
differences
January 1,
2021

Deferred tax
(asset) / liability
January 1, 2021

Provisions and retirement benefit obligation

34,877,650

5,580,424

52,503,344

8,400,535

28,092,390

4,494,782

Property, plant and equipment

(807,962,043)

(129,273,927)

(894,496,814)

(143,119,490)

(544,701,063)

(87,152,170)

Other intangible assets

(121,473,111)

(19,435,698)

(125,641,276)

(20,102,604)

(131,812,261)

(21,089,962)

Right of use and lease liability

762,731

122,037

813,017

130,083

636,607

101,857

Impairment allowances for financial investments

24,693,483

3,950,957

28,898,812

4,623,810

28,023,221

4,483,715

Impairment allowances for inventories

5,597,608

895,617

1,940,689

310,510

2,498,181

399,709

Impairment allowances for trade and other receivables

2,991,558

478,649

8,142,409

1,302,785

5,044,106

807,057

Loans

(5,085,172)

813,628

Loans interest deductible in the next years

73,836,472

11,813,836

Trade and other payables

6,328,506

1,012,562

6,619,528

1,059,124

(2,574,462)

(411,914)

TOTAL

(854,183,618)

(136,669,379)

(921,220,291)

(147,395,247)

(546,041,981)

(87,366,717)

Impact in the income statement

(10,725,868)

(9,936,604)

18,678,072

Impact in other comprehensive income

69,965,234

Variation in deferred tax liability

(10,725,868)

60,028,530

18,678,072

CHIMCOMPLEX S.A.

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

37
15.
PROPERTY, PLANT AND EQUIPMENT

Land

Buildings and
other
constructions

Plant,
machinery and
equipment

Furniture and
fittings

Assets in
progress

Decommissioning
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

24,992,706

685,816,714

Additions

1,015,967

7,460,519

44,517,527

24,992,706

77,986,719

Increase from revaluation

19,500,287

273,457,209

299,580,362

439,402

592,977,260

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

104,251,611

315,684

9,450,203

5,806,081

137,066,520

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

304,459,833

At December 31, 2021

114,153,236

607,758,547

1,065,504,637

4,572,190

120,319,290

6,634,752

21,911,230

1,940,853,879

Increase, out of which:

5,528,249

20,122,563

40,965,446

1,143,687

209,300,007

27,915,715

304,975,667

Transfers

15,485,363

29,621,855

1,143,687

15,373,250

61,624,155

Transfers from
investment property

4,637,200

4,637,200

Decrease, out of which:

588,062

6,367,757

56,712

47,148,434

15,373,251

69,534,216

Transfers

46,250,904

15,373,251

61,624,155

At December 31, 2022

119,681,485

627,293,048

1,100,102,326

5,659,164

282,470,864

6,634,752

34,453,559

2,176,295,333

CHIMCOMPLEX S.A.

NOTES TO THE
STANDALONE
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

Decommissioning
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

73,018,773

312,558

949,344

98,814,889

Disposals out of which

79,421,574

225,144,441

917,869

305,483,884

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

106,110,145

496,466

112,641

137,791,612

Disposals out of which

7,186

2,641,728

2,648,914

At December 31, 2022

31,065,174

103,468,417

496,466

6,371,918

141,401,974

CHIMCOMPLEX S.A.

NOTES TO THE
STANDALONE
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)

Land

Buildings and
other
constructions

Plant,
machinery and
equipment

Furniture and
fittings

Assets in
progress

Decommissioning
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 January 1, 2021

103,628,985

299,228,766

860,097,388

4,335,879

76,210,021

1,324,819

2,724,604

1,347,550,462

At December 31, 2021

114,153,236

469,363,304

1,020,416,326

4,467,874

117,083,425

375,476

21,911,230

1,747,770,870

At December 31, 2022

119,681,485

457,888,966

954,903,425

5,058,500

279,234,999

262,834

34,453,694

1,851,483,903

CHIMCOMPLEX S.A.

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

40
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 Company’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 Company consider 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 Company 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 Company’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
STANDALONE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2022
(all amounts are expressed in RON, unless specified otherwise)

41
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

43,952

247,013

Disposals

257,812

257,812

At December 31, 2022

149,770,495

844,888

150,615,382

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

24,005,040

Amortization expense

4,433,275

17,144

4,450,419

Eliminated on disposals of assets

247,855

247,855

At December 31, 2022

28,183,037

24,566

28,207,604

NET BOOK VALUE

At January 1, 2021

132,035,182

989,795

133,024,975

At December 31, 2021

125,827,629

793,514

126,621,140

At December 31, 2022

121,587,458

820,322

122,407,778

The Company has trademarks in amount of RON 94,985,000 (December 31, 2021: RON 94,985,000) and customer lists in
amount of RON 4,296,492 (December 31, 2021, RON 4,296,492) with indefinite useful life in amount. The Company
performs annually an impairment test for these intangible assets using discounted cash-flow models. As of December 31,
2022, and December 31, 2021, respectively no impairment was identified. The Company considers that the methods used in
impairment analysis are appropriate considering the business context.

CHIMCOMPLEX S.A.

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

42
17.
INVESTMENT PROPERTY

December 31,
2022

December 31,
2021

January 1,
2021

Balance at the beginning of the year

14,424,776

15,072,913

15,795,342

Additions

23,558,506

Disposals

4,637,200

Depreciation

1,893,860

648,137

722,429

Balance at end of year

31,452,222

14,424,776

15,072,913

The investments property comprises land, buildings and the related furniture and equipment which are located in Onesti,
Bacau county, and rented to third parties and related parties.
The value of revenues from rent for 2022 was RON 6,874,997 and for 2021 was RON 1,416,811. The Company did not
performed significant repairs for the investment property assets.
The fair value of investment property does not differ substantially from the cost presented in above note and statement of
financial position.
18.
INVESTMENTS IN SUBSIDIARES AND ASSOCIATES
The Company’s investments as at December 31, 2022 and December 31, 2021 have been the following:
December 31, 2022

Investment Value

Number of
Shares
Acquired

Nominal
value per
Share

%
of detention

Type

Greencomplex S.R.L

4,733,030

473,303

10

99.99%

Subsidiary

Aisa Invest S.R.L

19,900

8,000

2.5

19.51%

Other equity
instruments

Uzuc S.A

1,680,000

773,974

2.5

16.29%

Other equity
instruments

A5 Invest S.R.L

6,100,000

610,000

10

100%

Subsidiary

A6 Impex S.A

57,213,521

6,089,521

10

49.45%

Associate

Sistemplast S.A

14,966,000

2,138

1,036.6

94.40%

Subsidiary

TOTAL COST

84,712,451

December 31, 2021

Investment Value

Number of
Shares
Acquired

Nominal
value per
Share

%
of detention

Type

Greencomplex S.R.L

4,733,030

473,303

10

99.99%

Subsidiary

Aisa Invest S.R.L

19,900

8,000

2.5

19.51%

Other equity
instruments

Uzuc S.A

1,680,000

773,974

2.5

16.29%

Other equity
instruments

A5 Invest S.R.L

6,100,000

610,000

10

100%

Subsidiary

A6 Impex S.A

38,270,100

3,309,234

10

33.65%

Associate

TOTAL COST

50,803,030

CHIMCOMPLEX S.A.

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

43
18.
INVESTMENTS (continued)

January 1, 2021

Investment Value

Number of
Shares
Acquired

Nominal
value per
Share

%
of detention

Type

Greencomplex S.R.L

4,733,030

473,303

10

99.99%

Subsidiary

Aisa Invest S.R.L

19,900

8,000

2.5

19.51%

Other equity
instruments

Uzuc S.A

1,680,000

773,974

2.5

16.29%

Other equity
instruments

A5 Invest S.R.L

6,100,000

610,000

10

100%

Subsidiary

A6 Impex S.A

38,270,100

3,309,234

10

33.65%

Associate

TOTAL COST

50,803,030

The following allowances are recorded in relation to financial assets:
Company
name

December 31,
2022

December 31,
2021

January 1,
2021

Greencomplex S.R.L

4,375,302

4,375,302

4,375,302

Aisa Invest S.R.L

Uzuc S.A

1,615,648

1,615,648

1,615,648

A5 Invest S.R.L

4,730,302

4,730,302

4,730,302

A6 Impex S.A

13,947,231

18,152,560

17,276,968

Sistemplast S.A

Impairment allowance

24,668,483

28,873,812

27,998,220

Total

60,043,968

21,929,218

22,804,810

19.
INVENTORIES

December 31,
2022

December 31,
2021

January 1,
2021

Raw material

39,233,309

43,042,805

26,603,689

Consumables

16,780,304

13,443,454

8,724,191

Semi-finished goods

15,813,801

8,339,459

5,627,698

Finished goods

154,903,384

86,947,870

48,411,217

Other inventories

11,268,187

6,131,932

6,225,751

TOTAL

237,998,985

157,905,520

95,592,546

Movement of inventories write-down

December 31,
2022

December 31,
2021

January 1,
2021

Balance at the beginning of the year

7,887,377

6,101,046

3,900,702

Write-down expense

12,013,923

3,479,068

3,139,275

Reversal of write-down

6,492,623

1,713,819

938,931

Balance at end of year

13,408,677

7,866,295

6,101,046

CHIMCOMPLEX S.A.

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

44
20.
TRADE AND OTHER RECEIVABLES

a)
Trade and other receivables
December 31,
2022

December 31,
2021

January 1,
2021

Advance payments to suppliers

67,528,663

67,109,086

18,472,580

Other receivables

1,496,543

7,696,509

8,377,085

Receivables representing interim
dividends distributed until year end

167,000,000

60,000,000

Trade receivables

76,806,503

89,064,730

75,121,721

VAT Receivable

60,643,351

22,704,265

7,248,702

VAT not due

10,493,608

13,410,474

4,294,876

Subsidies*
(please see note 11 –
state aid for indirect emission costs)

90,159,070

1,586,268

42,306,694

Related parties receivables (please see
note 28 – receivables and advances to suppliers)

21,816,066

26,534,374

20,942,381

Sundry debtors

Prepayments

597,157

15,363,301

6,716,103

Less: allowance for doubtful debts

(1,313,857)

(1,321,810)

(1,340,413)

Less: allowance for sundry debtors

(17,929)

(17,929)

(20,409)

Less: allowance for group receivables

(342,622)

(342,622)

(342,622)

TOTAL

494,866,553

301,786,646

181,776,698

Based on the Decision of the Ordinary General Meeting of the Company’s Shareholders of November 9, 2021, it was
approved the distribution of the amount of RON 60,000,000 as interim dividends (gross amount) which was regularized
after the approval of the Company’s annual financial statements for the year 2021.
The payment of dividends was decided on April 21, 2022, in accordance with the stipulations of Regulation no. 5/2018.
Based on the Decisions of the Ordinary General Meeting of the Company’s Shareholders of September 16, 2022 and
November 28, 2022, it was approved the distribution of the amount of RON 40,000,000 and RON 127,000,000 RESPECTIVELY
as interim dividends (gross amount) which will be regularized after the approval of the company’s annual financial
statements for the year 2022.
The payment of dividends in amount of RON 40,000,000 was decided on October 21, 2022 and the payment of dividends in
amount of 127,000,000 lei was decided on December 29, 2022, in accordance with the stipulations of Regulation no. 5/2018.
*The subsidies receivable in the amount of RON 90,159,070 include ubsidies for indirect emission costs related to 2022
(RON 64,173,308) and subsidies that will be granted for investment projects from European funds (RON 25,981,262).
December 31,
2022

December 31,
2021

January 1,
2021

Lifetime ECLs

Lifetime ECLs

Lifetime ECLs

Balance at the beginning of the year

1,682,361

1,703,443

1,545,580

Increase

28,687

157,863

Decrease

36,641

21,082

Balance at end of year

1,674,407

1,682,361

1,703,443

CHIMCOMPLEX S.A.

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

45
20.
TRADE AND OTHER RECEIVABLES (continued)

b)
Allowances for trade receivables
(continued)
The average credit period on sales of goods is 40 days as in 2022.
No interest is charged on outstanding trade receivables.
The Company always measures the loss allowance for trade receivables at an amount equal to lifetime ECL. The expected
credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the
debtor and an analysis of the debtor’s current financial position, adjusted for factors that are specific to the debtors, general
economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the
forecast direction of conditions at the reporting date.
There has been no change in the estimation techniques during the current reporting period.
The Company writes off a trade receivable 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, or when the trade receivables are over two years past due, whichever occurs earlier.
None of the trade receivables that have been written off is subject to enforcement activities.
The following table details the risk profile of trade receivables based on the Company’s provision matrix. As the Company’s
historical credit loss experience does not show significantly different loss patterns for different customer segments, the
provision for loss allowance based on past due status is not further distinguished between the Company’s different
customer segments.
Trade receivables – days past due

Dece 31, 2022

Not past
due

Past due 1-30
days

Past due 31-
60 days

Past due 61-
90 days

Past due 91 –
120

Past due more
than 120 days

Expected credit loss
rate

0.01%

0.01%

0.06%

0.37%

5.67%

85%

Gross Value

73,537,853

3,448,882

364,630

798,623

185,710

1,462,361

Lifetime Expected
credit loss

7,354

345

219

2,955

10,530

1,243,007

Trade receivables – days past due

Dec 31, 2021

Not past
due

Past due 1-30
days

Past due 31-
60 days

Past due 61-
90 days

Past due 91 –
120