STATUTORY STANDALONE FINANCIAL STATEMENTS – 2022







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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

Past due more
than 120 days

Expected credit loss
rate

0.07%

0.11%

1.2%

1.67%

6.05%

87.66%

Gross Value

81,858,662

5,581,663

87,176

58,339

52,381

1,426,508

Lifetime Expected
credit loss

60,125

5,989

1,049

972

3,170

1,250,505

Trade receivables – days past due

Jan 1, 2021

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

0.07%

0.12%

0.41%

1.85%

8.75%

83%

Gross Value

69,285,846

4,207,197

23,900

15,624

48,220

1,542,362

Lifetime Expected
credit loss

48,957

4,999

98

290

4,221

1,281,849

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)

46
21.
CASH AND BANK BALANCES

December 31,
2022

December 31,
2021

January 1,
2021

Cash at bank

38,487,796

147,173,283

40,256,631

Cheques

1,953,464

804,149

510,484

Cash advances

2,595

4,427

7,388

Petty cash

22,698

12,267

10,593

Cash equivalents

366

715

860

TOTAL

40,466,919

147,994,841

40,785,956

Cash and cash equivalents comprise cash and short-term bank deposits with an original maturity of three months or less.
The carrying amount of these assets is approximately equal to their fair value. Cash and cash equivalents at the end of the
reporting period as shown in the standalone statement of cash flows can be reconciled to the related items in the
standalone reporting position as shown above. Expected credit loss on bank deposits is not material for 2022 and 2021
22.
CAPITAL AND RESERVES
Ordinary Shares

December 31,
2022

December 31,
2021

January 1,
2021

Ordinary shares in issue

304,907,851

304,907,851

235,320,683

Nominal value per share – RON

1.00

1.00

1.26

Statutory share capital – RON

304,907,851

304,907,851

296,504,061

Share Premium RON

4,669,565

4,669,565

844,028

Hyperinflation adjustment

886,083,318

886,083,318

886,083,318

IFRS share capital – RON

1,195,660,734

1,195,660,734

1,183,431,407

The hyperinflation adjustment was recorded against Retained Earnings, in accordance with the provisions of IAS 29, Financial
Reporting in Hyperinflationary Economies.
The ultimate parent of the Company is Serviciile Comerciale Romane, who belongs to the individual shareholder Mr. Vuza
Stefan.
Shareholding’s structure at December 31, 2022 and December 31, 2021 was as follows:
December 31, 2022

Ordinary
shares

Shareholding

Share capital
nominal value

Shareholders

CRC Alchemy Holding B.V.

259,151,301

84.99%

259,151,301

AAAS

27,305,181

8.96%

27,305,181

Legal entities

14,363,583

4.71%

14,363,583

Individuals

4,087,786

1.34%

4,087,786

Total

304,907,851

100%

304,907,851

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)

47
22. CAPITAL AND RESERVES (continued)

December 31, 2021

Ordinary
shares

Shareholding

Share capital
nominal value

Shareholders

CRC Alchemy Holding B.V.

260,251,528

85.35%

260,251,528

AAAS

27,305,182

8.96%

27,305,182

Legal entities

13,841,140

4.54%

13,841,140

Individuals

3,510,001

1.15%

3,510,001

Total

304,907,851

100%

304,907,851

December 31, 2021

Ordinary
shares

Shareholding

Share capital
nominal value

Shareholders

CRC Alchemy Holding B.V.

206,548,832

87.77%

260,251,528

AAAS

21,670,779

9.21%

27,305,182

Legal entities

6,261,032

2.66%

7,888,900

Individuals

840,040

0.36%

1,058,451

Total

304,907,851

100%

296,504,061

Through shareholders decision from June 30, 2021, was approved the repurchase of 7,059,620 own shares. During the 2022,
the company repurchased 2,087,562 shares at RON 47,652,341. The own shares are presented as a separate line in the
statement of change in equity and balance sheet.
Own shares

December 31,
2022

December 31,
2021

Own shares

47,794,795

142,454

23.
BORROWINGS AND LEASING
23.A
BORROWINGS

December 31,
2022

December 31,
2021

January 1,
2021

LONG TERM LOANS

CEC Bank

262,930,536

177,870,706

Alpha Bank

97,028,326

116,650,569

UBS Swizerland

58,417,535

Garanti Bank

39,083,342

Loan Bancpost

11,245,981

VTB Bank

297,812,356

Credit Suisse

239,422,778

TOTAL LONG TERM PORTION

457,459,739

294,521,275

548,481,115

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)

48
23.
BORROWINGS AND LEASING (continued)

23.A
BORROWINGS (continued)
December 31,
2022

December 31,
2021

January 1,
2021

SHORT TERM LOANS

CEC Bank

9,670,846

10,109,106

Alpha Bank

19,604,993

19,343,329

UBS Swizerland

10,496,053

Garanti Bank

6,349,164

Loan Bancpost

3,467,356

VTB Bank

78,929,720

Credit Suisse

8,352,734

Other

31,600

30,800

31,200

TOTAL SHORT TERM LOANS PORTION

46,152,656

29,483,235

90,781,010

TOTAL

503,612,395

324,004,510

639,262,125

The loans from CEC Bank and Alpha Bank were used to refinance the loans from VTB and Credit Suisse in total amount of
EUR 56,7 million and were both disbursed on October 6, 2021.
The term loan from Alpha Bank
– credit facility of EUR 30 million is to be repaid in 28 equal quarterly instalments which

started on December 31, 2021, with the final maturity on September 29, 2028. The closing balance as at 31 December 2022
is EUR 24,642,857 out of which short term EUR 4,285,714 and long term EUR 20,357,143.

The interest is EURIBOR 3M +1.95% and the loan is secured with mortgage on property, plant and equipment located on the
industrial platform from Onesti and with assignment of the insurance policy.
The investment loan from CEC Bank
– credit facility of EUR 20 million is to be repaid in 28 quarterly instalments which started

on January 31, 2022, with the final maturity on September 29, 2028.

The closing balance as at 31 December 2022 is EUR 17,142,857 out of which short term EUR 2,857,143 and long term EUR
14,285,714. The interest is EURIBOR 3M +2.15% and the loan is secured with mortgage on property, plant and equipment
located on the industrial platform from Onesti and with assignment of the insurance policy.
The revolving credit facility from CEC Bank
of EUR 40 million, fully disbursed as at 31 December 2022. The revolving facility

has the maturity on September 29, 2024.

The interest is EURIBOR 3M +2.15% and the loan is secured with pledge on inventories (raw materials and finished goods)
located in Rm.Valcea and Onesti, with mortgage on trade receivables and with assignment of the insurance policy.
The credit facility from Garanti Bank
in total amount of EUR 6,000,000 was contracted on April 20, 2022. This credit consists

of two facilities, as follows:

– investment facility in maximum amount of EUR 4,500,000 for financing 100% of the Company’s contribution to the project
with non-reimbursable funds regarding the construction of a high-efficiency trigeneration plant of maximum 8MWe on the
chemical site from Rm.Valcea; the facility
is to be repaid in monthly instalments in maximum 60 months from the date of
each utilization and with the final maturity on December 31, 2028.
The interest is EURIBOR 3M +2.5%.
-revolving facility in maximum amount of EUR 1,600,000 for financing 100% of the non-eligible VAT related to the invoices
issued under the financed project; the facility
is to be repaid in maximum 26 months from the date of each utilization and
with the final maturity on December 28, 2026.
The interest is EURIBOR 3M +2.5%.
No utilizations were made until December 31, 2022 under these facilities.

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)

49
23.
BORROWINGS AND LEASING (continued)

23.A
BORROWINGS (continued)
The investment credit from Garanti Bank
in total amount of EUR EUR 18,600,000 – consists of two facilities:

– Facility 1 in amount of EUR 11,600,000 for financing 75% of the Project:
Connection of the Cogeneration Plant erected by
Chimcomplex SA Borzesti, Sucursala Ramnicu Valcea to the National Power Grid (SEN) and to the National Natural Gas
Transmission System (SNTGN), is to be repaid in monthly instalments in maximum 60 months from the date of each
utilization and with the final maturity on December 31, 2028.
The closing balance as at 31 December 2022 is EUR 2,649,774
out of which short term EUR 1,283,333 and long term EUR 1,366,441. The interest is EURIBOR 3M +2.5%.
– Facility 2 in amount of EUR 7,000,000 for refinancing CAPEX expenditures done by the company, fully disbursed on 31
August 2022; the facility is to be repaid in 60 monthly instalments which started in September 2022, with the final maturity
on August 31, 2027. The closing balance as at 31 December 2022 is EUR 6,533,333 representing long term loan. The interest
is EURIBOR 3M +2.5%.
All credit facilities granted by Garanti Bank are secured with mortgage on property, plant and equipment located on the
industrial platform from Rm.Valcea and with assignment of the insurance policies.
The export finance facility from UBS Switzerland AG
of EUR 23,079,562 was contracted for financing 85% of the value of the

commercial contract concluded with Solar Turbines Switzerland SAGL for the delivery of equipment for the Cogeneration
Plant in Rm Valcea. The facility is covered by a buyer’s credit insurance issued by the Swiss Export Risk Insurance (SERV). The
facility is to be repaid in 14 semi-annual instalments starting from May 30, 2023, with the final maturity on November 30,
2029.
The closing balance as at 31 December 2022 is EUR 15,654,562 out of which short term EUR 2,236,366 and long term
EUR 13,418,196. The interest is EURIBOR 6M +1.7%.

All loans agreements concluded are subject to covenant clauses, whereby the Company is required to meet certain financial
indicators. The Company has complied as at December 31, 2022 with all the indicators required in the contracts.
Table of movements net debts
2022

2021

2020

Balance Loans at January 1

324,004,510

639,262,125

661,139,001

Withdrawals

218,454,094

351,609,499

21,253,194

Repayments

(37,505,784)

(684,034,787)

(92,194,005)

Foreign exchange difference

1,121,284

9,056,669

12,127,323

Other financial expenses

(2,461,709)

8,111,004

36,936,612

Balance Loans at December 31

503,612,395

324,004,510

639,262,125

23.B
RIGHT OF USE ASSETS AND LEASE LIABILITIES
The Company has taken into consideration the following aspects for the contracts that fall under IFRS 16 incidence:
i)
did not recognize any right-of-use assets or lease liabilities for contracts which expire within 12
months since implementation date; and
ii)
did not recognize any right-of-use assets or lease liabilities for lower value contracts (of less
than USD 5,000).
The weighted average lessee’s incremental borrowing rate used by the Company as at Dec 31, 2021 is 2.66%. There has
been no change in the estimation techniques or significant assumptions made during the current reporting period.
The Company has lease contracts mainly for rental of buildings and vehicles, such as wagons. The Company’s lease
arrangements do not include variable payments. The average lease term is 4 years.

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)

50
23.
BORROWINGS AND LEASING (continued)

Right-of-use assets
Cost

Buildings

Vehicles

Total

At 1 January 2021

8,752,073

3,894,729

12,646,802

Additions

3,604,824

3,604,824

Disposals

1,828,774

1,828,774

At 31 December 2021

6,923,299

7,499,553

14,422,852

Additions

16,758,582

16,758,582

Disposals

1,129,331

1,129,331

At 31 December 2022

5,793,968

24,258,135

30,052,103

Accumulated depreciation

At 1 January 2021

3,363,154

2,041,639

5,404,793

Additions

1,837,154

3,102,880

4,940,034

Disposals

1,828,774

1,828,774

At 31 December 2021

3,371,534

5,144,519

8,516,053

Additions

1,176,304

7,644,251

8,820,555

Disposals

1,129,331

1,129,331

At 31 December 2022

3,418,507

12,788,770

16,207,277

Carrying amount

At 1 January 2021

5,388,919

1,853,090

7,242,009

At 31 December 2021

3,551,765

2,355,034

5,906,799

At 31 December 2022

2,375,461

11,469,365

13,844,826

The maturity analysis of lease liabilities is presented in note 27 d).

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)

51
24.
TRADE AND OTHER SHORT- AND LONG-TERM PAYABLES

December 31,
2022

December 31,
2021

January 1,
2021

Trade payables

193,206,943

150,076,133

85,266,997

Related parties payables (please see note 28)

4,369,468

7,678,627

3,121,738

Advances from clients

11,812,041

10,270,382

25,433,313

Salaries and other related payables

8,977,567

24,423,037

4,761,406

Tax on salaries

8,106,930

15,053,478

5,174,239

Other taxes

413,374

998,528

231,018

Other payables

17,173,941

2,706,619

1,474,821

Deferred income*

11,976,361

19,286,926

23,732,531

Amounts due to shareholders
representing interim dividends
distributed until year end (please see note 20)

12,879,396

60,023,658

TOTAL

268,916,021

290,517,388

149,196,063

*
Deferred income represent the cash received from Oltchim S.A. (see note 21) as part of the prior year business
acquisition in respect of the decommissioning obligations for two warehouses acquired from Oltchim S.A. RON
8,712,260 is presented under other payables in statement of financial position, the remaining being presented as
trade and other payables (current liabilities).
Advances from clients
December 31,
2022

December 31,
2021

January 1,
2021

Balance at the beginning of the year

10,270,382

25,433,313

19,734,709

Settlement of advances

469,119,493

311,643,105

180,533,593

Advances recorded

470,661,152

296,480,174

186,232,197

Balance at end of year

11,812,041

10,270,382

25,433,313

25.
SUBSIDIES
Subsidies Long Term
Project

December 31,
2022

December 31,
2021

January 1,
2021

Cogeneration installation II

11,056,156

12,048,215

12,781,768

Other subsidies

577,973

602,343

616,593

Improving efficiency of energy

293,916

572,841

1,981,299

POPAM subsidy

1,850,619

2,226,677

2,226,677

TOTAL

13,778,664

15,450,076

17,606,337

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)

52
25. SUBSIDIES (continued)

Subsidies Short Term
Project

December 31,
2022

December 31,
2021

January 1,
2021

Cogeneration installation II

732,842

473,624

473,624

Improving efficiency of energy

130,112

1,108,826

1,108,826

POPAM subsidy

129,688

Energy consumption monitoring systems

951,540

951,540

Innovation Norway – Polyols station

6,005,745

Cogeneration station 8 Mwe

19,061,717

Other subsidies

219,047

8,008

8,008

TOTAL

27,230,691

2,541,998

1,590,458

26.
PROVISIONS
Provisions Long Term
Description

December 31,
2022

December 31,
2021

January 1,
2021

Retirement provision

2,591,719

2,816,938

3,104,984

Decommissioning provision
2

13,710,924

13,642,626

13,605,987

TOTAL

16,302,643

16,459,564

16,710,971

Provisions Short Term

Description

December 31,
2022

December 31,
2021

January 1,
2021

Retirement provision
4

531,859

675,300

175,251

Commercial litigations
3

16,258,522

13,798,538

Decommissioning provision
2

1,566,285

1,566,285

Co2 emissions provision

9,425,788

Other claims

218,341

840,401

2,743,054

Provision for SCR guarantee commission
1

9,737,468

8,463,114

TOTAL

18,575,007

36,043,780

11,381,419

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)

53
26.
PROVISIONS (continued)
Description

Decommissioning

Co2 emissions

Retirement
provision

Other claims

Provision for SCR
guarantee

Commercial
litigations

Total

Balance at January 1, 2021

13,605,987

3,280,235

2,743,054

8,463,114

28,092,390

Increase

1,602,924

9,425,788

478,213

2,690,364

7,373,366

13,798,538

35,369,193

Decrease

266,210

4,593,017

6,099,012

10,958,239

Balance at December 31, 2021

15,208,911

9,425,788

3,492,238

840,401

9,737,468

13,798,538

52,503,344

Increase

68,298

367,775

634,218

218,341

2,923,831

4,212,463

Decrease

9,793,563

1,002,878

840,401

9,737,468

463,847

21,838,157

Balance at December 31, 2022

15,277,209

3,123,578

218,341

16,258,522

34,877,650

1)
The provision recorded in relation to SCR payment was recorded in relation to the commitment taken by SCR to guarantee for Chimcomplex SA obligations in respect of the
borrowings received from VTB Bank and Credit Suisse. The Company considered to record a provision in relation to the payment through the whole period of the contracted loan,
based on the loans maturities, as the loans were prepaid during the year the remaining value was recorded during the year and part of the amount was invoiced and paid.
2)
The decommissioning provision was recorded in relation to 2 warehouses of non hazardous substances used by both Onesti and Ramnicu Valcea branches.
3)
The Company is in the process of litigation with Amerocap, for the value of success fee (in total amount of USD 3,039,150) related to the advisory services provided by Amerocap in
connection with the 2018 business acquisition from Oltchim S.A. Based on the fact that on the first decision of the court the Company losed, management assessed that this
litigation will have an adverse effect on the financial performance and the financial position of the Company, and, as a result, a provision has been registered in this respect. The
litigation is in progress. The economic benefits outflow will occur when the court issues the final decision.
4)
According with the Group collective labor agreement, each employee is entitled to receive a compensation in the moment of retirement equal with one average salary. The
retirement provisions represent the best estimate made by the management for the employees.

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)

54
27.
FINANCIAL INSTRUMENTS

a)
Capital risk management
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in
order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to
reduce the cost of capital.
The capital structure of the Company consists of debt, which includes the borrowings presented at note 23, cash and cash
equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained
earnings.
The debt (i) is presented in financial statements as total liabilities while equity (ii) represents equity attributable to owners
of the Company.
Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio. This ratio is calculated
as debt divided by total equity. Debt is calculated as total borrowings (including current and non-current borrowings as
shown in the balance sheet).
The gearing ratios as at December 31, 2022 and December 31, 2021:
Gearing Ratio

December 31,
2022

December 31,
2021

January 1,
2021

Debt (i)

1,031,816,672

860,013,287

944,598,823

Equity (ii)

1,832,794,382

1,672,957,081

906,322,283

Debt to equity ratio

0.56

0.51

1.04

b)
Interest rate risk management
The Company is exposed to interest rate risk because entities in the Company borrow funds at a fixed interest rates and
variable rates, the floating interest rates that are referred here are EURIBOR and ROBOR.
At the reporting date the interest rate profile of the Company’s interest-bearing financial instruments was:
Carrying amount

December 31,
2022

December 31,
2021

January 1,
2021

Financial assets at fixed rate

Short term loans granted

5,327,386

3,536,799

1,259,291

Cash and bank balances

40,466,919

147,994,841

40,785,956

Financial liabilities at fixed rate

Leases

(14,654,586)

(6,909,573)

(8,198,498)

Financial liabilities at variable rate

Borrowings

(503,612,395)

(324,004,510)

(639,262,125)

Total

(472,472,676)

(179,382,443)

(605,415,376)

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)

55
27.
FINANCIAL INSTRUMENTS (continued)

Interest rate sensitivity
The sensitivity analysis presented below has been determined for existing interest bearing loans outstanding at the reporting
date, and the stipulated change taking place at the beginning of the financial year and held constant throughout the next
reporting period in the case of borrowings linked to floating rates.
If interest rates for financial liabilities at variable rate would be higher / lower by 1% (100 basis points) and all other variables
are held constant, the Company’s net loss for 2022 would increase / decrease by RON 5,036,124 (2021: RON 3,240,045). This
is mainly attributable to the Company’s exposure to interest rates on its variable interest rate EUR denominated borrowings.

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)

56
27.
FINANCIAL INSTRUMENTS (continued)

c)
Foreign currency risk management
The Company is mainly exposed to the EURO and USD.
The Company is exposed to foreign exchange rate fluctuations in trade and finance. Currency risk arising from recognized assets and
payables including loand denominated in foreign currency. The Company does not to use derivative financial instruments to mitigate this risk.
The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the reporting date are as follows:
2022

RON

EUR


RON equivalent of EUR
balance

Other currencies
-RON equivalent of other
currencies

Total

Monetary assets

Other long term assets

5,645,951

1,072,564

6,718,514

Cash and bank balances

32,378,481

7,102,539

985,900

40,466,920

Trade and other receivables

431,653,949

63,212,604

494,866,553

Short term loans granted

5,327,386

5,327,386

475,005,767

71,387,707

985,900

547,379,373

Monetary liabilities

Finance lease liabilities

(14,654,586)

(14,654,586)

Trade and other payables

(190,966,885)

(73,603,373)

(4,345,763)

(268,916,021)

Other long term payables

(10,259,628)

(10,259,628)

Borrowings

(31,600)

(503,580,795)

(503,612,395)

(215,912,699)

(577,184,168)

(4,345,763)

(797,442,630)

Net balance sheet exposure

269,084,221

(468,977,621)

(3,359,863)

(250,063,257)

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)

57
27.
FINANCIAL INSTRUMENTS (continued)

2021

RON

EUR


RON equivalent of EUR
balance

Other currencies
-RON equivalent of other
currencies

Total

Monetary assets

Other long term assets

1,618,916

3,474,843

5,093,759

Cash and bank balances

83,895,655

61,085,976

3,013,209

147,994,841

Trade and other receivables

254,957,599

46,340,256

488,791

301,786,646

Short term loans granted

3,536,799

3,536,799

344,008,969

107,426,232

6,976,843

458,412,045

Monetary liabilities

Finance lease liabilities

(6,909,573)

(6,909,573)

Trade and other payables

(269,235,695)

(18,313,224)

(2,968,468)

(290,517,388)

Other long term payables

(598,685)

(598,685)

Borrowings

(30,800)

(323,973,710)

(324,004,510)

(276,774,752)

(342,286,934)

(2,968,468)

(622,030,156)

Net balance sheet exposure

67,234,217

(234,860,702)

4,008,375

(163,618,111)

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)

58
27.
FINANCIAL INSTRUMENTS (continued)

c)
Foreign currency risk management (continued)
2020

RON

EUR


RON equivalent of EUR
balance

Other currencies
-RON equivalent of other
currencies

Total

Monetary assets

Other long term assets

1,799,126

1,000,143

3,012,176

5,811,445

Cash and bank balances

31,167,440

8,648,965

969,551

40,785,957

Trade and other receivables

143,007,327

38,294,693

474,678

181,776,698

Short term loans granted

1,259,291

1,259,291

177,233,184

47,943,801

4,456,405

229,633,391

Monetary liabilities

Trade and other payables

(128,272,315)

(14,741,019)

(6,182,728)

(149,196,063)

Finance lease liabilities

(8,198,498)

(8,198,498)

Other long term payables

(120,193)

(120,193)

Borrowings

(7,064,355)

(617,484,433)

(14,713,337)

(639,262,125)

(143,655,361)

(632,225,452)

(20,896,065)

(796,776,879)

Net balance sheet exposure

33,577,823

(584,281,651)

(16,439,660)

(567,143,488)

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)

59
27.
FINANCIAL INSTRUMENTS (continued)

c)
Foreign currency risk management (continued)
Sensitivity analysis to exchange rate variations
The Company is exposed to the exchange rate EUR/RON mainly. The following table details the Company sensitivity to a 10%
increase and decrease in the RON against the relevant foreign currencies. 10% is the sensitivity rate used when reporting
foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably
possible change in foreign exchange rates.
The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their
translation at the period end for a 10% change in foreign currency rates for all currencies. A negative number indicates a
decrease in profit where the RON weakness 10% against the relevant foreign currency.
For a 10% strengthening of the RON against the relevant currencies, there would be an equal and opposite impact on the
profit and other equity, and the balances below would be positive. Changes will be attributable to exposure on the
borrowings and trade payables, mostly, at the end of the reporting period.
+10%

-10%

Year ended December 31, 2022

Liabilities

58,152,993

(58,152,993)

Assets

7,237,361

(7,237,361)

Net profit or loss

47,233,748

(47,233,748)

+10%

-10%

Year ended December 31, 2021

Liabilities

34,525,540

(34,525,540)

Assets

11,440,308

(11,440,308)

Net profit or loss

23,085,233

(23,085,233)

+10%

-10%

Year started January 1, 2021

Liabilities

65,312,152

(65,312,152)

Assets

5,240,021

(5,240,021)

Net profit or loss

60,072,131

(60,072,131)

d)
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate
liquidity risk management framework for management of the Company’s short, medium and long-term funding and liquidity
management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and
reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity
profiles of financial assets and liabilities
Please refer also to Note 3 and Note 23.a.

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)

60
27.
FINANCIAL INSTRUMENTS (continued)

d)
Liquidity risk management (continued)
Less than
1 year

Between
1 and 2 years

Over
2 years

TOTAL

At December 31, 2022

Financial assets

Other long term assets

6,718,514

6,718,514

Trade and other receivables

494,866,553

494,866,553

Short term loans granted

5,327,386

5,327,386

Cash and bank balances

40,466,919

40,466,919

540,660,858

6,718,514

547,379,372

Financial liabilities

Trade and other payables

(268,916,021)

(268,916,021)

Finance lease liabilities

(5,949,300)

(8,705,286)

(14,654,586)

Other long term payables

(10,259,628)

(10,259,628)

Loans

(46,152,655)

(248,268,576)

(209,191,164)

(503,612,395)

(331,277,604)

(256,973,862)

(209,191,164)

(797,442,630)

Future estimated interest

(10,004,833)

(14,104,266)

(8,842,343)

(32,951,442)

Net

199,378,421

(264,359,614)

(218,033,507)

(283,014,700)

The

Company

has

a

negative

net

amount,

this

is

principally

given

by

the

long-term

loans.

These

loans

were

obtained

for

investments

purposes

therefore,

the

Group

expects

that

these
investments will lead to an increase in the future economic benefits in the time horizon of 1-5 years to compensate the actual negative net position.

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)

61
27.
FINANCIAL INSTRUMENTS (continued)

Less than
1 year

Between
1 and 2 years

Over
2 years

TOTAL

At December 31, 2021

Financial assets

Other long term assets

5,093,759

5,093,759

Trade and other receivables

301,786,646

301,786,646

Short term loans granted

3,536,799

3,536,799

Cash and bank balances

147,994,841

147,994,841

453,318,286

5,093,759

458,412,045

Financial liabilities

Trade and other payables

(290,517,388)

(290,517,388)

Finance lease liabilities

(3,465,451)

(1,528,463)

(1,915,659)

(6,909,573)

Other long term payables

(598,685)

(598,685)

Loans

(29,483,235)

(44,859,944)

(249,661,331)

(324,004,510)

(324,064,759)

(46,388,407)

(251,576,990)

(622,030,156)

Future estimated interest

(8,301,767)

(8,092,890)

(12,036,624)

(28,431,281)

Net

120,951,760

(49,387,538)

(263,613,614)

(192,049,392)

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)

62
27.
FINANCIAL INSTRUMENTS (continued)

d)
Liquidity risk management (continued)
Less than
1 year

Between
1 and 2 years

Between
2 and 5 years

TOTAL

At January 1, 2021

Financial assets

Other long term assets

5,811,445

5,811,445

Trade and other receivables

181,776,698

181,776,698

Short term loans granted

1,259,291

1,259,291

Cash and bank balances

40,785,956

40,785,956

223,821,945

5,811,445

229,633,390

Financial liabilities

Trade and other payables

(149,196,063)

(149,196,063)

Finance lease liabilities

(3,987,243)

(1,211,833)

(2,999,422)

(8,198,498)

Other long term payables

(120,193)

(120,193)

Loans

(90,781,010)

(39,780,517)

(508,700,598)

(639,262,125)

(244,084,509)

(40,992,350)

(511,700,020)

(796,776,879)

Future estimated interest

(85,783,433)

(85,478,187)

(41,787,583)

(213,049,203)

Net

(106,045,997)

(120,659,092)

(553,487,603)

(780,192,692)

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)

63
27.
FINANCIAL INSTRUMENTS (continued)

e)
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company’s receivables from customers, cash and cash equivalents
and bank deposits. Cash and bank deposits are placed in financial institutions which are considered to have low risk of
default. The carrying amount of financial assets represents the maximum credit exposure.
For Trade receivables the Company has no significant concentrations of credit risk. The Company is in process of setting up a
policy regarding insurance of the trade receivables. Also more than 70% of clients are external for which the Company
request advance payments. Due dates depend are usually up to 30 days, 90 days are only for a group of companies.
Credit approvals and other monitoring procedures are also in place to ensure that follow-up action is taken to recover
overdue debts. Furthermore, the Company reviews the recoverable amount of each trade debt and debt investment on an
individual basis at the end of the reporting period to ensure that adequate loss allowance is made for irrecoverable
amounts. In this regard, the directors of the Company consider that the Company’s credit risk is significantly reduced. Trade
receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit
evaluation is performed on the financial condition of accounts receivable.
For trade receivables, the Company has applied the simplified approach in IFRS 9 to measure the loss allowance at lifetime
ECL. The Company determines the expected credit losses on these items by using a provision matrix, estimated based on
historical credit loss experience based on the past due status of the debtors, adjusted as appropriate to reflect current
conditions and estimates of future economic conditions. Accordingly, the credit risk profile of these assets is presented
based on their past due status in terms of the provision matrix. Please refer to Note 20.
The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by
international credit-rating agencies.
Short-term loans granted are subject to general model for allowance assessment however, the Group believes that there is
no material impact if the expected credit loss model would be applied.
f)
Price risk
The price is established based on agreement between the parties. The management is estimating the selling price starting
from the actual costs incurred. The Company does not use hedging instruments in order to mitigate the price risk.
g)
Accounting classifications and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their
levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not
measured at fair value if the carrying amount is a reasonable approximation of fair value.
In accordance with IFRS 13, the individual levels are defined as follows:
Level 1: Using quoted prices in active markets for the same assets or liabilities. The fair value of financial instruments traded
in active markets is based on quoted market prices at the balance sheet end date.
Level 2: Using information about the asset or liability, other than quoted prices, identifiable either directly (as prices) or
indirectly (derived from prices). To determine the fair value of financial instruments, the Company uses the transactions
prices available on market where it available.
Level 3: Using information about the asset or liability that does not come from identifiable market data, such as prices, but
come from internal models or other valuation methods.

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)

64
27.
FINANCIAL INSTRUMENTS (continued)

Financial assets measured at amortized cost include all assets with contractual terms that give rise to cash flows on specific
dates. The Company includes in this measurement category the trade receivables, other long-term assets, short term loans
granted, and cash and cash equivalents. Initial measurement of these assets is generally at fair value, which usually
corresponds to the transaction price at the time of acquisition or, in the case of trade receivable, to the transaction price
pursuant to IFRS 15. Due to the short terms of the cash and cash equivalents short term loans granted, and trade
receivables, the fair values largely correspond to the carrying amounts since it reflects the transaction price.
Financial liabilities measured at amortized cost generally include all financial liabilities, provided these do not represent
derivatives. They are generally measured at fair value at the time of initial recognition, which usually corresponds to the
value of the consideration received. Subsequent measurement is recognized in profit or loss at amortized cost using the
effective interest method. For trade liabilities and other liabilities usually mature in the short term, the amounts on the
balance sheet represent approximations of their fair value since the carrying amount is similar to the transaction price.

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)

65
28.
RELATED PARTY TRANSACTIONS

Information about

Nature of the

December 31,

December 31,

January 1,

Receivables

Transactions

relationship

2022

2021

2021

VITORIA SERV SRL

revenues from services rendered

related party, entity under common control

41,400

41,400

41,400

SOMES SA DEJ

revenues from services rendered

related party, entity under common control

117,185

351,022

152,130

SINTEROM SA CLUJ

revenues from services rendered

related party, entity under common control

1,984

1,984

1,984

A6 IMPEX SRL DEJ

revenues from services rendered,
borrowing and interest

Associate

4,090,067

2,266,330

43,013

CRC IMPEX CHEMICALS SRL

revenues from sales of finished
products and commodities

related party, entity under common control

18,923,402

20,551,175

18,923,402

SC NOVATEXTILE BUMBAC SRL

revenues from services rendered

related party, entity under common control

1,000

116,140

1,000

SC SISTEMPLAST SA

revenues from third party services

related party, entity under common control

2,987,048

CAROMET CARANSEBES

revenues from third party
services, borrowing and interest

related party, entity under common control

1,115,676

1,123,094

CRC EXPLORATION&BUSINESS

advances for consumables and
interest

related party, entity under common control

11,861

135,102

IASITEX

revenues from services rendered

related party, entity under common control

1,423

1,423

UZUC SA

advances for investment

related party, entity under common control

1,459,526

CRC ZEUS

borrowing and interest

related party, entity under common control

192,547

Total

24,496,544

29,034,244

19,162,929

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)

66
28.
RELATED PARTY TRANSACTIONS (continued)

Information about

Nature of the

December
31,

December 31,

January 1,

Payables

transactions

Relationship

2022

2021

2021

CRC EXPLORATION&BUSINESS

acquisition of fixed assets,
consumables and packaging
materials

related party, entity under common control

49,177

46,798

AISA INVEST SA

acquisition of other expenses

related party, entity under common control

6,664

6,664

833

CAROMET CARANSEBES

acquisition of fixed assets and third
party services

related party, entity under common control

340,666

9,875

146,928

INAV BUCURESTI

acquisition of rental services

related party, entity under common control

4,528

3,911

45,722

CRC IMPEX CHEMICALS SRL

acquisition of third party services

related party, entity under common control

833

833

833

SC IASITEX SA IASI

acquisition of third party services

related party, entity under common control

75,842

75,842

75,842

SOMES SA DEJ

acquisition of rental services

related party, entity under common control

3,131

3,131

3,131

SC SISTEMPLAST SA

acquisition of other services

related party, entity under common control

2,913,571

6,307,519

1,865,504

UZUC SA

acquisition of fixed assets and third
party services

related party, entity under common control

398,660

A5 INVEST SRL

maintenance expenses

associate

573,421

GREENCOMPLEX SRL

acquisition of other
services

related party, entity under common control

2,975

Total

4,369,468

6,407,775

2,185,591

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)

67
28.
RELATED PARTY TRANSACTIONS (continued)

Information about

Nature of the

Year ended
December 31,

Year ended
December 31,

Year ended
January 1,

Sales during the period

transactions

Relationship

2022

2021

2021

SC A6 IMPEX SA DEJ

revenues from third party services

related party, entity under common control

23,712

23,317

27,332

SC UZUC SA

revenues from third party services

related party, entity under common control

4,770

1,000

36,800

SC SISTEMPLAST SA

revenues from third party services

related party, entity under common control

38,774

13,035

10,224

SC SOMES LOGISTIC SRL

revenues from rental services

related party, entity under common control

55,624

58,552

54,123

SERVICIILE COMERCIALE ROMANE
SA

revenues from other services

related party, entity under common control

5,119,286

C.R.C. IMPEX CHEMICALS SRL

revenues from sales of finished
products

related party, entity under common control

1,627,765

SC CAROMET SA

revenues from third party services

related party, entity under common control

5,116

Total

127,995

6,842,954

128,479

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)

68
28.
RELATED PARTY TRANSACTIONS (continued)

Information about

Nature of the

Year ended
December 31,

Year ended
December 31,

Year ended
January 1,

Purchases during the period

Transactions

Relationship

2022

2021

2021

SC CAROMET SA

acquisition of fixed assets and third party
services

related party, entity under common control

2,549,819

3,253,431

930,295

SC NOVATEXTILE BUMBAC SRL

acquisition of third party services

related party, entity under common control

34,986

34,986

19,600

AISA INVEST SA

acquisition of third party services and
consumables

related party, entity under common control

4,165

13,400

SC IASITEX SA IASI

acquisition of consumables and small
object

related party, entity under common control

826,630

36,309

FUNDATIA FEDERATIA ROMANA
DE TURISM SPORTIV

Sponsorship granted

related party, entity under common control

12,000,000

SC INAV SA BUCURESTI

acquisition of rental services, fixed assets

related party, entity under common control

389,030

414,259

333,521

SC SISTEMPLAST SA

acquisition of other expenses

related party, entity under common control

56,931,205

43,556,406

14,641,194

CRC IMPEX CHEMICALS SRL

acquisition of packaging materials

related party, entity under common control

123,589

179,446

632,822

SC UZUC SA

acquisition of fixed assets, third party
services

related party, entity under common control

704,540

297,425

700,917

SERVICIILE COMERCIALE
ROMANE

acquisition of other expenses

related party, entity under common control

19,495,480

A5 INVEST SRL

maintenance expenses

associate

3,983,939

GREENCOMPLEX SRL

acquisition of other services

associate

35,700

SC A6 IMPEX SA DEJ

revenues from third party services

related party, entity under common control

7,029,137

Total

91,281,947

60,566,748

17,308,058

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)

69
28.
RELATED PARTY TRANSACTIONS (continued)

Advances

December 31,
2022

December 31,
2021

January 1,
2021

Somes Dej

233,837

233,837

Caromet

6,395

6,389

Uzuc

910,396

1,436,289

Nova Textile

80,154

150,126

Sistemplast SA

2,233,518

1,339,579

CRC Exploration&Business

148,812

TOTAL

3,613,113

1,345,968

1,820,852

Guarantees

December 31,
2022

December 31,
2021

January 1,
2021

Sistemplast SA

2,611,124

1,289,384

TOTAL

2,611,124

1,289,384

The transactions in net value made with Mr. Vuza Stefan, as an individual shareholder of the Romanian Commercial Services
are:
Year ended
December 31,
2022

Year ended
December 31,
2021

Year ended
January 1,
2021

Transactions

12,186,047

8,552,191

2,067,024

The key management remuneration is presented in note 29 and note 8.
29.
INFORMATION REGARDING THE EMPLOYEES AND THE MEMBERS OF THE ADMINISTRATIVE AND MANAGEMENT
The remuneration of executives and directors
During the period ended December 31, 2022 and December 31, 2021 respectively, no loans and advances were granted to
executives and directors of the Company, except for work related travel advances, and they do not owe any amounts to the
Company from such advances.
Year ended
December 31,
2022

Year ended
December 31,
2021

Year ended
January 1,
2021

Salaries and bonuses paid to management personnel and
board of directors

33,621,920

36,810,866

16,999,130

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)

70
30.
COMMITMENTS AND CONTINGENCIES

Litigations
The Company is subject to several legal actions arisen in the normal course of business. Management considers that all the
litigations that will have a material adverse effect on the financial performance and the financial position of the Company
were recorded, please see Note 26. Additionally, the Group is involved in a litigation with its former management, the claims
are estimated at RON 43,322,000. The Group considers this a contingent liability.
Environment
The regulations regarding the environment are in a development phase in Romania and the Company did not record any
liabilities as at December 31, 2022 and December 31, 2021 for any anticipated costs, including legal and consulting fees,
design and implementation of remedial plans regarding the environment.
On January 10, 2013, the Regional Agency of Environment of Bacau County issued an environmental authorization valid until
January 10, 2023 for Onesti Branch. As per this authorization, the Company has the obligation to dismantle the equipment
when the Company’s activity will cease totally or partially, and to restore the land to its initial condition. As of December 31,
2022 there are no plans to cease totally or partially the Company’s activity.
Climate changes
The Company is also interested in environmental problems that may arise for its customers due to the products
manufactured by Company. In order to limit the impact on the environment when using our products, the Company
provides customers with information on products and environmental protection measures when using them through labels,
quality standards, instructions for use, safety data sheets, training and technical support when buying products .
The Company aims to improve communication with the parties interested in environmental performance, with the local
community, control and regulatory authorities, collaborators, etc., carrying out actions for the exchange of ideas, thematic
debates, etc. (direct meetings). In this sense, the modernization works and the investments with possible impact on the
environment were carried out in accordance with the legislation in force, but also with the information of the public and the
interested parties to highlight the interest and effort of our organization for the compliance and application of the legal
provisions and for continuous improvement of environmental performance.
The year 2022 brought a considerable decrease in greenhouse gas emissions (on both platforms) due to both the decrease in
the amount of natural gas consumed and, against the background of the economic crisis triggered by the war in Ukraine, the
aggressive increase in the price of natural gas and restricting the sales market for the Company’s products.
Under these conditions, it was necessary to take measures for the judicious use of own cogeneration installations to
produce electricity and thermal energy needed in the activity, in parallel with the purchase of electricity from the market. At
the same time, a part of natural gas was replaced with hydrogen produced in electrolysis and used as fuel to produce
thermal energy without emissions of greenhouse gases (CO2).
The regulations regarding the environment are in a development phase in Romania and the Company did not.
recorded liabilities as December 31, 2022, for any anticipated costs, including legal and consultancy fees, design and
installation in implementing environmental remedial plans. The Group believes that for this moment there is no material
impact arising from climate changes aspect that could affect the financial statements.
Taxation
Taxation system in Romania is still developing trying to consolidate and harmonize with the European legislation. In this
respect, there still are various interpretations of the tax laws. In certain cases, tax authorities may treat differently certain
aspects and calculate supplementary taxes and levies and related interests and penalties.
According to the legislation in force, in 2022, interest and delay penalties were levied for tax payers’ failure to pay their tax
obligations on time.

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)

71
30.
COMMITMENTS AND CONTINGENCIES (continued)

As of January 1, 2022 the interest value is 0.02% and the delay penalty is of 0.02% for each day of delay.
In Romania, the statute of limitation for tax audits is of 5 years. Management considers that the tax

obligations included in

these financial statements are adequate.

Acquisitions
As at December 31, 2022 the Company has purchasing commitments related to utilities and raw materials of RON
377,361,916 (December 31, 2021: RON 1,198,078,992).
31.
SUBSEQUENT EVENTS
The ongoing military operation in Ukraine and the related sanctions targeted against the Russian Federation may have
impact on the European economies and globally. The entity does not have any significant direct exposure to Ukraine, Russia
or Belarus.
However, the impact on the general economical situation may require revisions of certain assumptions and estimates. This
may lead to material adjustments to the carrying value of certain assets and liabilities within the next financial year. At this
stage management is not able to reliably estimate the impact as events are unfolding day-by-day.
The longer-term impact may also affect trading volumes, cash flows, and profitability. Nevertheless, at the date of these
financial statements the Company continues to meet its obligations as they fall due and therefore continues to apply the
going concern basis of preparation.
The Board of Directors approve the coverage of the carryover accounting loss, arising from the application of IAS 29, in the
amount of 1,729,903 lei, with the full amounts recorded in the “Adjustments of the share capital” account (account in which
the value of 886,083,318 lei from hyperinflation was recorded) and submission of this point for approval on the agenda of
the Ordinary General Meeting of Shareholders.
32.
EFFECT OF IFRS ADOPTION FOR THE FINANCIAL STATEMENTS
The accounting policies set out in Note 6 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 statement of financial position at 1 January 2021 (the Company’s date of
transition).
In preparing its opening IFRS-EU statement of financial position, the Company has adjusted amounts reported previously in
financial statements prepared in accordance with Order of the Minister of Public Finance no. 1802/2014 in Romania – i.e.
previous GAAP. An explanation of how the transition from previous GAAP to IFRSs has affected the Company’s financial
position, financial performance and cash flows is set out in the following tables and the notes that accompany the tables.
The Company prepares also consolidated financial statements in accordance with OMFP 2844/2016 for the approval of
Accounting Regulations in accordance with the Standards International Financial Reporting Standards as adopted by EU.
These consolidated financial statements were presented in the previous periods, the same recognition and measurement
principle, the assets and liabilities are at the same amounts in both financial statements, except for consolidation
adjustments.

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)

72
32.
EFFECT OF IFRS ADOPTION FOR THE FINANCIAL STATEMENTS (continued)

Reconciliation of statement of financial position
As at December 31, 2022

Note

Previous GAAP

Effects of
accounting errors

Effect of
transition to
IFRSs

IFRS

ASSETS

Non-current assets

Property, plant and
equipment

A.1, A.2,
A.4, B.3

1,084,515,670

(64,174,960)

831,143,193

1,851,483,903

Right of use asset

B.1

13,844,826

13,844,826

Investment property

A.2

31,452,222

31,452,222

Intangible assets

B.2

934,667

121,473,111

122,407,778

Investments in associates

A.3

58,913,421

(15,562,879)

43,350,542

Investment in subsidiaries

A.3

25,799,030

(9,105,604)

16,693,426

Other long term assets

6,718,514

6,718,514

Total non-current assets

1,176,881,302

(57,391,221)

966,461,130

2,085,951,211

Current assets

Inventories

A.4, B.4

234,525,674

(1,742,098)

5,215,409

237,998,985

Trade and other receivables

A.4

497,601,344

(2,734,791)

494,866,553

Short term loans granted

5,327,386

5,327,386

Cash and bank balances

40,466,919

40,466,919

Total current assets

777,921,323

(4,476,889)

5,215,409

778,659,843

Total assets

1,954,802,625

(61,868,110)

971,676,539

2,864,611,054

EQUITY AND LIABILITIES

Capital and reserves

Issued capital

B.6

304,907,851

886,083,318

1,190,991,169

Own shares

(47,794,795)

(47,794,795)

Share premium

4,669,565

4,669,565

Legal reserves

B.6

60,981,570

48,453,906

109,435,476

Retained earnings

A.7, B.8

718,055,661

(72,642,620)

(647,142,944)

(1,729,903)

Revaluation reserve

B.7, B.3

44,247,547

532,975,323

577,222,870

Equity attributable to
owners of the
Company

1,085,067,399

(72,642,620)

820,369,603

1,832,794,382

LIABILITIES

Non-current liabilities

Subsidies

13,778,664

13,778,664

Lease liabilities

B.1

8,705,286

8,705,286

Deferred tax liability

B.7

136,699,379

136,699,379

Provisions

A.6

10,802,219

5,500,424

16,302,643

Long term loans

457,459,739

457,459,739

Other payables

10,259,628

10,259,628

Total non-current liabilities

492,300,250

5,500,424

145,404,665

643,205,339

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)

73
32.
EFFECT OF IFRS ADOPTION FOR THE FINANCIAL STATEMENTS (continued)

As at December 31, 2022

Previous

Effects of
accounting
errors

Effect of
transition
to

Note

GAAP

IFRSs

IFRS

Current liabilities

Subsidies

27,230,691

27,230,691

Trade and other payables

A.6

267,024,992

1,891,029

268,916,021

Lease liabilities

B.1

47,029

5,902,271

5,949,300

Corporate income tax liability

21,787,658

21,787,658

Provisions

A.6

15,191,950

3,383,057

18,575,007

Short term loans

46,152,656

46,152,656

Total current liabilities

377,434,976

5,274,086

5,902,271

388,611,333

Total liabilities

869,735,226

10,774,510

151,306,936

1,031,816,672

Total equity and liabilities

1,954,802,625

(61,868,110)

971,676,539

2,864,611,054

Reconciliation of statement of financial position
As at December 31, 2021

Previous

Effects of
accounting errors

Effect of
transition to

Note

GAAP

IFRSs

IFRS

ASSETS

Non-current assets

Property, plant and equipment

A.1, A.2,
A.4, B.3

879,161,948

(25,900,862)

894,509,784

1,747,770,870

Right of use asset

B.1

5,906,799

5,906,799

Investment property

A.2

14,424,776

14,424,776

Intangible assets

B.2

979,864

125,641,276

126,621,140

Investments in associates

A.3

39,119,408

(18,892,616)

20,201,792

Investment in subsidiaries

A.3

10,833,030

(9,105,604)

1,727,426

Other long term assets

A.1

7,814,106

(2,720,347)

5,093,759

Total non-current assets

937,908,356

(42,219,653)

1,026,057,859

1,921,746,562

Current assets

Inventories

A.4, B.4

156,380,886

(1,015,875)

2,540,507

157,905,520

Trade and other receivables

A.1, A.4,
A.6

311,172,383

(9,385,737)

301,786,646

Short term loans granted

3,536,799

3,536,799

Cash and bank balances

147,994,841

147,994,841

Total current assets

619,084,909

(10,401,612)

2,540,507

611,223,806

Total assets

1,556,993,265

(52,621,265)

1,028,598,366

2,532,970,368

EQUITY AND LIABILITIES

Capital and reserves

Issued capital

B.6

304,907,851

886,083,318

1,190,991,169

Own shares

(142,454)

(142,454)

Share premium

4,669,565

4,669,565

Legal reserves

B.6

41,753,230

48,453,906

90,207,136

Retained earnings

A.7, B.8

462,210,629

(73,597,368)

(579,722,326)

(191,109,065)

Revaluation reserve

B.7, B.3

44,247,547

534,093,183

578,340,730

Equity attributable to owners
of the Company

857,646,368

(73,597,368)

888,908,081

1,672,957,081

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)

74
32.
EFFECT OF IFRS ADOPTION FOR THE STATEMENT OF FINANCIAL POSITION (continued)

As at December 31, 2021

Previous

Effects of
accounting
errors

Effect of
transition to

Note

GAAP

IFRSs

IFRS

LIABILITIES

Non-current liabilities

Subsidies

15,450,076

15,450,076

Lease liabilities

B.1

46,956

3,397,166

3,444,122

Deferred tax liability

B.7

147,395,245

147,395,245

Provisions

A.7, A.6

11,428,753

5,030,811

16,459,564

Long term loans

A.5

292,579,077

1,942,198

294,521,275

Other payables

598,685

598,685

Total non-current liabilities

320,103,546

6,973,009

150,792,411

477,868,967

Current liabilities

Subsidies

2,541,998

2,541,998

Trade and other payables

A.6,A.7

288,067,664

2,449,724

290,517,388

Lease liabilities

B.1

142,801

3,322,650

3,465,451

Corporate income tax liability

20,092,467

20,092,468

Provisions

A.7, A.6

36,972,988

(929,207)

36,043,780

Short term loans

A.5

31,425,433

(1,942,198)

29,483,235

Total current liabilities

379,243,351

(421,681)

3,322,650

382,144,319

Total liabilities

699,346,898

6,551,328

154,115,061

860,013,286

Total equity and liabilities

1,556,993,265

(67,046,040)

1,043,023,142

2,532,970,368

Reconciliation of statement of financial position
As at January 1, 2021

Previous

Effects of
accounting
errors

Effect of
transition to

Note

GAAP

IFRSs

IFRS

ASSETS

Non-current assets

Property, plant and equipment

A.1, A.2, A.4
B.3

838,853,355

(16,896,258)

525,593,365

1,347,550,462

Right of use asset

B.1

7,242,009

7,242,009

Investment property

A.2

15,072,913

15,072,913

Intangible assets

B.2

1,212,713

131,812,262

133,024,975

Investments in associates

A.3

39,970,000

(18,892,616)

21,077,384

Investment in subsidiaries

10,833,030

(9,105,604)

1,727,426

Other long term assets

B.5

10,572,497

(4,761,052)

5,811,445

Total non-current assets

901,441,595

(29,821,565)

659,886,584

1,531,506,614

Current assets

Inventories

A.4, B.4

95,488,312

(2,361,974)

2,466,207

95,592,546

Trade and other receivables

A.4, B.5

189,744,615

(2,985,081)

(4,982,836)

181,776,698

Short term loans granted

1,259,291

1,259,291

Cash and bank balances

40,785,956

40,785,956

Total current assets

327,278,175

(5,347,055)

(2,516,629)

319,414,492

Total assets

1,228,719,769

(35,168,620)

657,369,955

1,850,921,106

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)

75
32.
EFFECT OF IFRS ADOPTION FOR THE FINANCIAL STATEMENTS (continued)

As at January 1, 2021

Previous

Effects of
accounting
errors

Effect of
transition to

Note

GAAP

IFRSs

IFRS

EQUITY AND LIABILITIES

Capital and reserves

Issued capital

B.6

296,504,061

886,083,318

1,182,587,379

Own shares

Share premium

844,028

844,028

Legal reserves

B.6

14,600,179

48,453,906

63,054,085

Retained earnings

A.7, B.8

18,012,041

(63,013,291)

(506,185,209)

(551,186,459)

Revaluation reserve

B.7, B.3

44,247,547

166,775,703

211,023,250

Equity attributable to owners of
the Company

374,207,856

(63,013,291)

595,127,718

906,322,283

LIABILITIES

Non-current liabilities

Subsidies

17,606,337

17,606,337

Lease liabilities

B.1

186,739

4,024,516

4,211,255

Deferred tax liability

B.7

87,366,717

87,366,717

Provisions

A.7

8,118,885

8,592,086

16,710,971

Long term loans

A.5, B.5

567,120,947

(3,832,296)

(14,807,536)

548,481,115

Other payables

120,193

120,193

Total non-current liabilities

593,153,101

4,759,790

76,583,697

674,496,588

Current liabilities

Subsidies

1,590,458

1,590,458

Trade and other payables

A.6

151,770,526

(2,574,463)

149,196,063

Lease liabilities

B.1

133,142

3,854,101

3,987,243

Corporate income tax liability

13,166,043

13,166,042

Provisions

A.7

9,776,209

1,605,210

11,381,419

Short term loans

A.5, B.5

84,922,435

3,832,396

2,026,179

90,781,010

Total current liabilities

261,358,813

2,863,143

5,880,280

270,102,236

Total liabilities

854,511,914

7,622,933

82,463,977

944,598,824

Total equity and liabilities

1,228,719,769

(55,390,358)

677,591,695

1,850,921,107

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)

76
32.
EFFECT OF IFRS ADOPTION FOR THE FINANCIAL STATEMENTS (continued)

Reconciliation of statement of profit and loss and other comprehensive income
As at December 31, 2022

Previous

Effects of
accounting
errors

Effect of
transition to

Note

GAAP

IFRSs

IFRS

Revenue

A.4, A.9

2,266,047,941

(7,515,530)

2,258,532,411

Investment income

10,173,263

10,173,263

Other gains and losses

A.9, B.3

14,250,358

(11,440,736)

3,107,948

5,917,570

Cost of commodities sold

(85,016,214)

(85,016,214)

Increase in finished goods and
production in progress

A.4, B.4,
A.9

134,743,809

(61,778,165)

1,799,741

74,765,385

Raw materials and consumables

B.1, A.9,
A.6

(827,170,653)

87,043,474

7,300,722

(732,826,457)

Employees benefits

A.6, A.9,
B.1

(164,157,365)

1,227,893

39,649

(162,889,823)

Depreciation and amortization

B.1, B.2, B.3

(58,338,478)

(94,657,301)

(152,995,779)

Distribution costs

(41,182,892)

(41,182,892)

Water and energy expenses

(738,470,218)

(738,470,218)

Other third-party services

(47,350,405)

(47,350,405)

Maintenance and repair expenses

(36,763,622)

(36,763,622)

Other revenue

A.9

53,682,591

(16,044,197)

37,638,394

Net revaluation loss of property,
plant and equipment

Other expenses

B.1

(58,066,390)

1,115,667

(56,950,723)

Finance costs

A.9

(30,799,273)

9,473,536

(21,325,737)

Profit before tax

391,582,452

966,275

(81,293,574)

311,255,153

Income tax expense

(55,919,098)

(55,919,098)

Deferred tax

B.7

10,725,868

10,725,868

Profit for the year

335,663,354

966,275

(70,567,706)

266,061,923

Earnings per share

Basic and diluted earnings per
share

1.101

0.003

(0.231)

0.873

Profit for the year

335,663,354

966,275

(70,567,706)

266,061,923

Other comprehensive income:

Items that will not be reclassified
to profit or loss:

Impact of revaluation

Deferred tax related to revaluation

Impact of disposal of non-current
assets

(1,117,860)

(1,117,860)

Other comprehensive income, net
of tax

(1,117,860)

(1,117,860)

Total comprehensive income

335,663,354

966,275

(71,685,566)

264,944,063

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)

77
32.
EFFECT OF IFRS ADOPTION FOR THE FINANCIAL STATEMENTS (continued)

Reconciliation of statement of profit and loss and other comprehensive income
As at December 31, 2021

Previous

Effects of
accounting
errors and

Effect of
transition to

Note

GAAP

reclassifications

IFRSs

IFRS

Revenue

A.4, A.9

2,242,585,838

(7,380,405)

2,235,205,433

Investment income

2,060,902

2,060,902

Other gains and losses

A.9, B.3

(12,415,809)

(16,193,831)

(1,390,791)

(30,000,431)

Cost of commodities sold

(28,142,996)

(28,142,995)

Increase in finished goods and
production in progress

A.4, B.4

147,533,783

(104,881,764)

74,229

42,726,248

Raw materials and consumables

B.1

(891,927,249)

121,645,447

3,190,034

(767,091,768)

Employees benefits

A.6, A.9,
B.1

(176,127,012)

(981,332)

582,614

(176,525,730)

Depreciation and amortization

B.1, B.2,
B.3

(46,591,423)

(64,528,779)

(111,120,202)

Distribution costs

(38,932,655)

(38,932,655)

Water and energy expenses

(451,442,533)

(451,442,533)

Other third party services

(33,137,259)

(33,137,259)

Maintenance and repair expenses

(29,792,925)

330,010

(29,462,915)

Other revenue

A.9

17,213,822

(12,247,944)

4,965,878

Net revaluation loss of property,
plant, and equipment

B.3

(13,480,054)

(13,480,054)

Other expenses

B.1

(54,124,359)

1,283,112

(52,841,247)

Finance costs

A.9, B.5

(103,640,572)

12,118,328

(12,172,564)

(103,694,808)

Profit before tax

543,119,553

(7,591,491)

(86,442,199)

449,085,864

Income tax expense

(70,618,719)

(70,618,719)

Deferred tax

B.7

9,936,604

9,936,604

Profit for the year

472,500,834

(7,591,491)

(76,505,595)

388,403,749

Earnings per share

Basic and diluted earnings per
share

1.550

(0.025)

(0.251)

1.274

Profit for the year

472,500,834

(7,591,491)

(76,505,595)

388,403,749

Other comprehensive income:

Items that will not be reclassified
to profit or loss:

Impact of revaluation

B.3

437,282,714

437,282,714

Deferred tax related to revaluation

B.7

(69,965,234)

(69,965,234)

Other comprehensive income, net
of tax

367,317,480

367,317,480

Total comprehensive income

472,500,834

(7,591,491)

290,811,885

755,721,229

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)

78
32.
EFFECT OF IFRS ADOPTION FOR THE FINANCIAL STATEMENTS (continued)

Reconciliation of statement of cash flow
As at December 31, 2022

Previous

Effects of
accounting
errors and

Effect of
transition to

Note

GAAP

reclassifications

IFRSs

IFRS

Cash flows from operating activities:
Profit before tax

391,582,452

966,275

(81,293,574)

311,255,153

Adjustments for non-cash items:

Interest expense

19,710,426

189,352

19,899,778

Impairment loss/(gain) on investments

(875,592)

(3,329,737)

(4,205,329)

Interest revenue

(3,298,266)

(3,298,266)

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

B.3

3,243,857

(3,094,142)

149,715

Net loss from provisions

A.6, A.9

(22,049,863)

4,967,429

(17,082,434)

Loss from revaluation of property, plant
and equipment

Foreign exchange loss, net

1,122,088

1,122,088

Impairment loss on inventories, net

5,529,254

5,529,254

Depreciation and amortization

B.1, B.2,
B.3

58,338,478

94,657,301

152,955,779

Impairment gain on trade receivables
and other assets, net

(7,953)

(7,953)

Subsidies income

(1,324,683)

(1,324,683)

451,970,198

2,603,967

10,458,937

464,993,101

Movements in working capital:

Decrease/(increase) in inventory

A.4, B.4

(106,804,306)

726,223

(2,674,901)

(108,752,984)

Decrease/(increase) in trade and other
receivables

A.1, A.6,
B.5

(54,410,556)

(6,278,340)

(2,207,862)

(62,896,759)

Increase/ (decrease) in trade and other
liabilities

A.6

(167,071,276)

(727,923)

(167,799,199)

Increase/ (decrease) in subsidies

25,281,713

25,281,713

Subsidy received for costs of electric
energy

32,404,226

32,404,226

Cash generated from operating
activities

181,369,999

(3,676,073)

5,576,174

183,230,098

Interest paid

(18,900,685)

(18,900,685)

Income tax paid

Net cash generated by/(used) in
operating activities

162,469,314

(3,676,073)

5,576,174

164,329,413

Cash flows from investing activities:

Interest received

3,298,266

3,298,266

Proceeds from sale of non-current
assets

766,958

766,958

Acquisition of non-current assets

B.1, B.2,
B.3

(170,516,922)

6,135,436

(164,381,486)

Payments for investment in an
associate

(18,943,421)

(18,943,421)

Acquisition of subsidiary

(4,000,000)

(4,000,000)

Net cash used in investing activities

(189,395,119)

6,135,436

(183,259,683)

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)

79
32.
EFFECT OF IFRS ADOPTION FOR THE FINANCIAL STATEMENTS (continued)

Previous

Effects of
accounting
errors and

Effect of
transition to

Not
e

GAAP

reclassifications

IFRSs

IFRS

Cash flow from financing activities:

Proceeds from borrowings

218,309,765

218,309,765

Lease liabilities repayments

B.1

(143,579)

(7,941,663)

(8,085,242)

Dividends paid

(214,254,817)

(214,254,817)

Repayment of borrowings

(37,508,762)

(37,508,762)

Purchase of own shares

(47,652,341)

(47,652,341)

Net cash (used in)/generated by
financing activities

(81,249,734)

(7,941,663)

(89,191,397)

Net (decrease) / increase in cash and
cash equivalents

(108,121,666)

(3,676,073)

3,769,947

(108,121,666)

Cash and cash equivalents at
beginning of the year

147,994,841

147,994,841

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

593,744

593,744

Cash and cash equivalents at end of
the year

40,466,919

40,466,919

Reconciliation of statement of cash flow
As at December 31, 2021

Previous

Effects of
accounting
errors

Effect of
transition to

Note

GAAP

IFRSs

IFRS

Cash flows from operating activities:
Profit before tax

543,119,553

(7,591,491)

(86,442,199)

449,085,864

Adjustments for non-cash items:

Interest expense

B.5

54,507,992

12,444,522

66,952,514

Impairment loss on investments

875,592

875,592

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

B.3

(35,143,061)

(35,143,061)

Interest revenue

(644,091)

(644,091)

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

B.3

914,773

(1,359,972)

(445,200)

Net loss from provisions

30,546,470

30,546,470

Loss from revaluation of property,
plant and equipment

B.3

48,623,115

48,623,115

Foreign exchange loss, net

6,374,515

6,374,515

Impairment loss on inventories, net

A.4

1,127,947

655,904

1,783,851

Depreciation and amortization

B.1, B.2,
B.3

46,591,425

64,528,777

111,120,202

Impairment gain on trade receivables
and other assets, net

Commission annual warrant

Subsidy for the compensation of
electric energy cost

Subsidies income

(2,156,261)

(2,156,261)

681,257,915

(6,935,587)

2,651,182

676,973,510

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)

80
32.
EFFECT OF IFRS ADOPTION FOR THE FINANCIAL STATEMENTS (continued)

As at December 31, 2021

Previous

Effects of
accounting
errors

Effect of
transition to

Note

GAAP

IFRSs

IFRS

Movements in working capital:

Decrease/(increase) in inventory

A.4,
B.4

(62,020,521)

(1,346,099)

(730,205)

(64,096,825)

Decrease/(increase) in trade and
other receivables

A.1,
A.6,
B.5

(160,173,624)

6,498,630

(7,749,842)

(161,424,836)

Increase/ (decrease) in trade and
other liabilities

A.6

70,111,282

340,834

70,452,116

Subsidy received for costs of electric
energy

41,297,958

41,297,958

Cash generated from operating
activities

570,473,010

(1,442,222)

(5,828,865)

563,201,923

Interest paid

(36,565,193)

(36,565,193)

Income tax paid

(21,701,263)

(605,964)

(22,307,227)

Net cash generated by/(used) in
operating activities

512,206,554

(1,442,222)

(6,434,829)

504,329,502

Cash flows from investing activities:

Interest received

644,091

644,091

Proceeds from sale of non-current
assets

A.9

3,133,290

3,133,290

Payment to acquire financial assets

Acquisition of non-current assets

B.1,
B.2,
B.3

(85,074,899)

9,499,552

(75,575,347)

Net cash used in investing activities

(84,430,808)

3,133,290

9,499,552

(71,797,966)

Cash flow from financing activities:

Proceeds from borrowings

351,609,499

351,609,499

Lease liabilities repayments

(236,733)

(4,819,028)

(5,055,761)

Dividends paid

(1,065,739)

(1,065,739)

Repayment of borrowings

B.1

(684,034,787)

(684,034,787)

Share capital increase

12,086,873

12,086,873

Net cash (used in)/generated by
financing activities

(321,640,887)

(4,819,028)

(326,459,915)

Net (decrease) / increase in cash and
cash equivalents

106,071,505

1,754,304

(1,754,304)

106,071,622

Cash and cash equivalents at
beginning of the year

40,785,956

40,785,956

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

1,137,265

1,137,265

Cash and cash equivalents at end of
the year

147,994,841

147,994,841

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)

81
32.
EFFECT OF IFRS ADOPTION FOR THE STATEMENT OF FINANCIAL POSITION (continued)

Notes to the reconciliation
(A)
Effect of Accounting errors
A.1 Property plant and equipment
The reclassifications and errors impact comes from the followings:

The Company did not perform an analysis of the impairment of property, plant and equipment. The Company
reviewed the impairment indicators and checked specifically each item of property, plant and equipment, the
impact of this is RON 17,218,346 for January 1, 2021, December 31, 2021, and December 31, 2022.

The Company capitalized a fee of RON 15,836,480 in property, plant and equipment which does not meet the
capitalization criteria as stated by the previous GAAP. This error impacts the years ended on December 31, 2021
and December 31, 2022

The Company classified as a prepayment within trade and other receivables and other long term assets certain
components of property, plant, and equipment in amount of RON 6,832,876. This accounting error impacts the
year ended on December 31, 2021.
The impact arising from these accounting errors on Property plant and equipment is RON (33,054,826) as of December 31,
2022, RON (26,222,950) as of December 31, 2021, and RON (17,218,346) as of January 1, 2021. The other elements
impacted by this error in the statement of financial position and statement of profit and loss and other comprehensive
income are summarized in the below table.
December 31,
2022

December 31,
2021

January 1,
2021

Statement of financial position

Retained earnings (-)

(33,054,826)

(33,054,826)

(17,218,346)

Trade and other receivables (+)

(4,111,529)

Other long-term assets

(2,720,347)

Statement of profit and loss and other comprehensive income

Other gains and losses

(15,836,480)

(+) shows an increase in Property plant and equipment, (-) shows a decrease in

Property plant and equipment
A.2 Investment property
Under previous GAAP items that qualify as investment property were classified as property, plant and equipment, instead of
investment property. The classification criteria were meet on both previous GAAP and IFRS.
The impact arising from this accounting error on Investment property is RON 31,352,222 as of December 31, 2022, RON
14,424,776 as of December 31, 201, and RON 15,072,913 as of January 1,2021. The other elements impacted by this error in
the statement of financial position are summarized in the below table.
December 31,
2022

December 31,
2021

January 1,
2021

Statement of financial position

Property plant and equipment (+)

(31,452,222)

(14,424,776)

(15,072,913)

(+) shows an increase in Investment property, (-) shows a decrease in

Investment property

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)

82
32.
EFFECT OF IFRS ADOPTION FOR THE STATEMENT OF FINANCIAL POSITION (continued)

(A)
Effect of Accounting errors (continued)
A.3 Investments in associates and subsidiaries
Under previous GAAP, the Company did not perform an analysis in respect of impairment of investment in associates. The
Company analyzed the indications of impairment of investments in associates and recorded an impairment.
The impact of this accounting error on Investments in associates is RON (15,562,879) as of December 31, 2022, RON
(18,892,616) as of December 31, 2021, and RON (18,892,616) as of January 1, 2021. The impact on Investments in
subsidiaries is RON (9,105,604) as of December 31, 2022, RON (9,105,604) as of December 31, 2021, and RON (9,105,604) as
of January 1, 2021. The other elements impacted by this error in the statement of financial position and statement of profit
and loss and other comprehensive income are summarized in the below table.
December 31,
2022

December 31,
2021

January 1,
2021

Statement of financial position

Retained earnings (-)

(24,668,483)

(27,998,220)

(27,998,220)

Statement of profit and loss and other comprehensive income

Other gains and losses

3,329,373

(+) shows an increase in Investments in associates and subsidiaries, (-) shows a decrease in

Investments in associates and
subsidiaries
A.4 Inventories

The Company analyzed the sales made around the year end. Following this analysis there were identified sales for
which the control did not pass to customer until in the first month of the next reporting period. This accounting
error impacts the revenue recognized, the inventories, and the Increase in finished goods and production in
progress. The impact on revenue is seen as the net off between the revenue that should be recognized in the first
month of the next reporting period and the derecognition of the revenue at the end of the period as a result of this
analysis.

The Company did not perform an analysis of the impairment for inventories.

There are some spare parts that meet the recognition criteria to be classified as property, plant and equipment.

Prepayments are reclassified to inventories as they are in fact raw materials.
The impact of this accounting error on Inventories is RON (1,724,098) as of December 31, 2022, RON (1,015,875) as of
December 31, 2021, and RON (2,361,974) as of January 1, 2021. The other elements impacted by this error in the statement
of financial position and statement of profit and loss and other comprehensive income are summarized in the below table.
December 31,
2022

December 31,
2021

January 1,
2021

Statement of financial position

Trade and other receivables (+)

(2,764,791)

(2,936,094)

(2,985,081)

Property, plant, and equipment (-)

332,088

322,088

322,088

Retained earnings (-)

(4,174,801)

(3,629,881)

(5,024,967)

Statement of profit and loss and other comprehensive income

Revenue

(107,340)

337,629

Increase in finished goods and production in progress

437,580

1,713,363

Other gains and (losses)

(655,904)

(+) shows an increase in Inventories, (-) shows a decrease in Inventories

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)

83
32.
EFFECT OF IFRS ADOPTION FOR THE STATEMENT OF FINANCIAL POSITION (continued)

(A)
Effect of Accounting errors (continued)
A.5 Long and short term loans
Under previous GAAP items that qualify to be classified as long term loan were classified as short-term debt.
The impacted elements of statement of financial position are summarized below:
December 31,
2022

December 31,
2021

January 1,
2021

Statement of financial position

Long term loans

1,942,198

(3,832,396)

Short term loans

(1,942,198)

3,832,396

A.6

Trade and other receivables

Under previous GAAP, the Company recognize as prepayments the raw materials not yet delivered by the suppliers. These
prepayments were not appropriately presented in financial statements, as the Company has no right or control over them.
The impact of this accounting error on Trade and other receivables is RON (2,338,114) as of December 31, 2021The other
elements impacted by this error in the statement of financial position are summarized in the below table.
December 31,
2022

December 31,
2021

January 1,
2021

Statement of financial position

Trade and other payables (-)

(2,338,114)

(+) shows an increase in Trade and other receivables, (-) shows a decrease in Trade and other receivables
A.7 Trade and other payables
Under previous GAAP, the Company did not recognize an invoice for penalties from one of the suppliers. Also, one invoice
for price differences was recorded on provisions instead of trade and other payables and provision for holidays tickets for
employees was reclassified within trade and other payables. The corresponding effect in statement of profit and loss and
other comprehensive is also presented in the table below.
The impact of this accounting error on Trade and other payables is RON 1,891,029 as of December 31, 2022, RON 4,787,838
as of December 31, 2021, and RON 2,574,463 as of January 1, 2021. The other elements impacted by this error in the
statement of financial position and statement of profit and loss and other comprehensive income are summarized in the
below table.
December 31,
2022

December 31,
2021

January 1,
2021

Statement of financial position

Retained earnings (+)

(1,891,029)

(1,891,029)

(2,574,463)

Provisions (+)

(2,896,809)

Statement of profit and loss and other comprehensive income

Raw materials and consumables used

1,697,416

(1,697,416)

Employees benefits expenses

1,199,393

(1,199,393)

Other gains and losses

(2,896,809)

2,896,809

(+) shows an increase in Trade and other payables, (-) shows a decrease in Trade and other payables
In current year, when the expenses occurred (invoice for price difference comes and holidays tickets were granted to
employees) the Company made a reversal within the other gains and losses line, this was again reclassified in appropriate
lines as showed in the above table.

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)

84
32.
EFFECT OF IFRS ADOPTION FOR THE STATEMENT OF FINANCIAL POSITION (continued)

(A)
Effect of Accounting errors (continued)
A.8 Provisions
Under previous GAAP, the Company did not recognize the best estimation of possible outflow of resources for provisions.
The impact of this accounting error on Provisions is RON 8,883,481 as of December 31, 2022, RON 6,998,411 as of December
31, 2021, and RON 10,197,296 as of January 1, 2021. The other elements impacted by this error in the statement of financial
position and statement of profit and loss and other comprehensive income are summarized in the below table.
December 31,
2022

December 31,
2021

January 1,
2021

Statement of financial position

Retained earnings (+)

(8,883,481)

(6,998,411)

(10,197,296)

Statement of profit and loss and other comprehensive income

Other gains and (losses)

(1,816,722)

(1,885,070)

(+) shows an increase in Provisions, (-) shows a decrease in Provisions
A.9 Retained earnings
The above errors decreased retained earnings as follows:
December 31,
2022

December 31,
2021

January 1,
2021

Statement of financial position

Property plant and equipment

(33,054,826)

(33,054,826)

(17,218,346)

Investments in associates

(24,668,483)

(27,998,220)

(27,998,220)

Inventories

(4,174,801)

(3,629,881)

(5,024,967)

Trade and other payables

(1,891,029)

(1,891,029)

(2,574,463)

Provisions

(8,883,481)

(6,998,411)

(10,197,296)

Impact

(72,642,620)

(73,597,368)

(63,013,291)

A.10 Reclassifications within Statement of profit and loss and other comprehensive income

Revenue

Under previous GAAP, miscellaneous activities were classified within revenue while they did not represent revenue from
core activities, these are represented by sale of waste and revenue from Oltchim (from which the Company acquired the
assets in 2018) for closing the warehouses of dangerous substances.
The impact of this accounting error on Revenue is RON (7,408,190) as of December 31, 2022 and RON (7,682,034) as of
December 31, 2021. The other elements impacted by this error in the statement of financial position and statement of profit
and loss and other comprehensive income are summarized in the below table
December 31,
2022

December 31,
2021

Statement of profit and loss and other comprehensive income

Other revenue (-)

7,408,190

4,548,744

Other gains and losses (-)

3,133,290

(+) shows an increase in Revenue, (-) shows a decrease in Revenue

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)

85
32.
EFFECT OF IFRS ADOPTION FOR THE STATEMENT OF FINANCIAL POSITION (continued)

(A)
Effect of Accounting errors (continued)
A.9 Reclassifications within Statement of profit and loss and other comprehensive income
(continued)
Other revenue
Under previous GAAP, the Company recorded revenue from own activities (production of property plant and equipment).
This revenue was cancelled with the expenses occurred to produce these property plant and equipment to show only the
capitalization in statement of financial position.
The impact of this accounting error on Revenue is RON (23,221,759) as of December 31, 2022 and RON (16,832,687) as of
December 31, 2021. The other elements impacted by this error in the statement of financial position and statement of profit
and loss and other comprehensive income are summarized in the below table.
December 31,
2022

December 31,
2021

Statement of profit and loss and other comprehensive income

Raw materials and consumables used (-)

23,130,264

16,747,666

Employees benefits expenses (-)

28,500

26,486

Other third party services (-)

62,986

58,535

(+) shows an increase in Other revenue, (-) shows a decrease in Other revenue
Other gains and losses
Under previous GAAP, the Company classified certain items within finance costs while they relates to other gain an losses,
also a part of the expense for a fee was recorded on previous GAAP financial statements, therefore part of the expense was
cancelled with no effect on retained earnings.
The impact of this accounting error on Other gains and losses is RON 9,473,536 as of December 31, 2022 and RON 3,655,214
as of December 31, 2021. The other elements impacted by this error in the statement of financial position and statement of
profit and loss and other comprehensive income are summarized in the below table.
December 31,
2022

December 31,
2021

Statement of profit and loss and other comprehensive income

Finance cost (+)

9,473,536

12,118,328

Other gains and losses (-)

(8,463,114)

(+) shows an increase in Other gains and losses, (-) shows a decrease in Other gains and losses
Changes in inventories of finished goods and raw materials
The Company transferred from one Onesti branch to Valcea branch the chlorine produced which is further processed. Under
previous GAAP this is shown as an expense with raw materials while in nature is a change in inventories of finished goods
and raw materials.
The impact of this accounting error on Other gains and losses is RON 62,215,745 as of December 31, 2022 and RON
106,595,197 as of December 31, 2021. The other elements impacted by this error in the statement of financial position and
statement of profit and loss and other comprehensive income are summarized in the below table.
December 31,
2022

December 31,
2021

Statement of profit and loss and other comprehensive income

Raw materials and consumables used (-)

62,215,745

106,595,197

(+) shows an increase in Changes in inventories of finished goods and raw materials, (-) shows a decrease in Changes in
inventories of finished goods and raw materials

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)

86
32.
EFFECT OF IFRS ADOPTION FOR THE STATEMENT OF FINANCIAL POSITION

(B)
Effect of Transition to IFRS
B.1 Right of use asset
Under previous GAAP certain leases were classified as operating leases since legal title did not pass by the end of the lease.
With the launch of IFRS 16, under IFRSs the lessee does not distinguish between the operating lease and finance lease an all
leases are “on-balance sheet” leases (similar to finance leases). Therefore, the Company recognized lease liabilities and
related assets (so called “right of use assets”) in the statement of financial position of the Company.
The impact arising from the change is summarised as follows:
December 31,
2022

December 31,
2021

January 1,
2021

Statement of financial position

Net book value right to use asset

13,844,826

5,906,799

7,242,009

Lease liability (including finance costs),
out of which

14,607,557

6,719,816

7,878,617

Long term

8,705,286

3,397,166

4,024,516

Short term

5,902,271

3,322,650

3,854,101

Statement of profit and loss and other comprehensive
income

Depreciation and amortization

(8,819,888)

(4,940,034)

Other expenses

1,115,441

1,283,112

Raw materials and consumables used

7,300,772

3,190,034

Employees benefits expenses

39,475

582,615

Other gain and loses

(583,406)

(191,263)

Under previous GAAP, the Company recognize the expense with operational lease within the raw materials and
consumables expense since the lease was for wagons used to transport the raw materials. Under IFRS this expense was
reassessed and classified as depreciation and amortization expense. For buildings leased, the expense was recognized under
previous GAAP as other expenses (Royalties and rental expenses) under IFRS this expense was classified as depreciation
expense.
B.2 Intangible assets
The difference compared with previous GAAP comes from the intangible assets acquired in 2018 from Oltchim through
business combination. Under previous GAAP the Company carried intangible assets at their book value from Oltchim balance
while under IFRS their cost is given by the purchase price allocation report.
The impact of this IFRS transition effect on Intangible assets is RON 121,373,111 as of December 31, 2022, RON 125,641,276
as of December 31, 2021, and RON 131,812,262 as of January 1, 2021. The other elements impacted by this IFRS transition
effect in the statement of financial position and statement of profit and loss and other comprehensive income are
summarized in the below table.
December 31,
2022

December 31,
2021

January 1,
2021

Statement of financial position

Retained earnings (+)

121,373,111

125,641,276

131,812,262

Statement of profit and loss and other comprehensive
income

Depreciation and amortization

(4,161,846)

(6,170,985)

(+) shows an increase in Intangible assets, (-) shows a decrease in Intangible assets

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)

87
32.
EFFECT OF IFRS ADOPTION FOR THE STATEMENT OF FINANCIAL POSITION (continued)

(B)
Effect of Transition to IFRS (continued)
B.3 Property, plant and equipment
The property, plant, and equipment acquired in 2018 from Oltchim through business combination were recognized at their
deemed costs (fair value at the date of transaction) while on previous GAAP they were recognized at their book value (from
Oltchim balance sheet). At that time the Company performed a revaluation of all property plant and equipment (besides
those acquired from Oltchim). Subsequently as of December 31, 2021, the Company performed another revaluation of
property plant and equipment.. This difference between previous GAAP and IFRS impacts also the depreciation and
amortization expense, impairment, disposals, and costs of finished goods.
The impact of this IFRS transition effect on Property, plant and equipment is RON 831,143,193 as of December 31, 2022,
RON 894,509,784 as of December 31, 2021, and RON 525,593,365 as of January 1, 2021. The other elements impacted by
this IFRS transition effect in the statement of financial position and statement of profit and loss and other comprehensive
income are summarized in the below table.
December 31,
2022

December 31,
2021

January 1,
2021

Statement of financial position

Retained earnings (+)

185,169,257

248,535,848

316,902,361

Revaluation reserve (+)

645,973,936

645,973,936

208,691,004

Statement of profit and loss and other comprehensive
income

Depreciation and amortization expense

(81,635,567)

(53,417,760)

Other gains and losses

3,107,948

(1,390,791)

(+) shows an increase in Property, plant and equipment, (-) shows a decrease in Property, plant and equipment
B.4 Inventories
Since there is a difference in amortization expense for property, plant, and equipment due to transition to IFRS, as explained
in note B.3, the Company analyzed the impact of difference in amortization expense in the cost of finished goods. According
to IAS 2, amortization expense is a cost related to production, therefore the difference arising from transition to IFRS should
be allocated to finished goods.
The impact of this IFRS transition effect on Inventories is RON 5,215,309 as of December 31, 2022, RON
2,540,507
as of
December 31, 2021, and RON
2,446,207
as of January 1, 2021. The other elements impacted by this IFRS transition effect in
the statement of financial position and statement of profit and loss and other comprehensive income are summarized in the
below table.
December 31,
2022

December 31,
2021

January 1,
2021

Statement of financial position

Retained earnings (+)

5,215,409

2,540,507

2,446,207

Statement of profit and loss and other comprehensive income

Increase in finished goods and production in progress

1,799,741

74,229

(+) shows an increase in Inventories, (-) shows a decrease in Inventories

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)

88
32.
EFFECT OF IFRS ADOPTION FOR THE STATEMENT OF FINANCIAL POSITION (continued)

(B)
Effect of Transition to IFRS (continued)
B.5 Long and short term loans
Under previous GAAP, the Company did not recognize the transaction costs directly attributable to loans as a deduction
from loans as specified by IFRS 9, they were recognized as a prepayment in trade receivables and other long-term assets.
These costs are represented by up-front management fee and other costs to obtain the finance. Starting with year 2021,
when the Company obtain new finance from Alpha Bank and CEC Bank, on previous GAAP the Company deducted the costs
to obtain the finance from the value of loans therefore, no difference arises between previous GAAP and IFRS for year 2021
and 2022. These costs are discharged through PL during the period of loan agreement. Additionally, in year 2020, the
Company had the obligation to pay an annual warrant according with loan contract terms, this was classified as provision
under previous GAAP, under IFRS this was considered as a liability toward creditor and classified as short-term loan.
The impact of this IFRS transition effect on Long term loans is RON (14,807,536) as of January 1, 2021 and on the Short-term
loans is RON
2,026,179
as of January 1, 2021. The other elements impacted by this IFRS transition effect in the statement of
financial position and statement of profit and loss and other comprehensive income are summarized in the below table.
December 31,
2022

December 31,
2021

January 1,
2021

Statement of financial position

Long term position

Retained earnings (-)

10,496,020

Other long-term assets (-)

(4,311,506)

Short term position

Provisions (+)

7,033,155

Retained earnings (-)

809,386

Trade and other receivables (+)

(4,197,590)

Statement of profit and loss and other comprehensive income

Finance costs

(12,172,564)

(+) shows an increase in Long and short term loans, (-) shows a decrease in Long and short term loans
In 2018, the Company, recorded a part of the costs attributable to obtaining the finance directly in PL and not discharged
over the loan schedule. The impact on retained earnings is only temporary for the period
B.6 Adjustments for hyperinflation
Under previous GAAP the Company did not account for hyperinflation. Under IFRSs the Company adjusted contributions to
share capital and legal reserves setup before 31 December 2003 for the effects of hyperinflation.
The impact of this IFRS transition effect on Share capital is RON 886,083,318 as of December 31, 2022, RON 886,083,318as
of December 31, 2021, and RON 886,083,318 as of January 1, 2021. The impact on legal reserves is RON 48,453,906 as of
December 31, 2022, RON 48,453,906 as of December 31, 2021, and RON 48,453,906 as of January 1, 2021. The other
elements impacted by this IFRS transition effect in the statement of financial position and statement of profit and loss and
other comprehensive income are summarized in the below table.
December 31,
2022

December 31,
2021

January 1,
2021

Statement of financial position

Retained earnings (+)

(934,537,224)

(934,537,224)

(934,537,224)

(+) shows an increase in Share capital and reserves, (-) shows a decrease in Share capital and reserves

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)

89
32.
EFFECT OF IFRS ADOPTION FOR THE STATEMENT OF FINANCIAL POSITION (continued)

(B)
Effect of Transition to IFRS (continued)
B.7 Deferred Tax
Following the transition to IFRS there are taxable temporary differences, the most significant impact is related to difference
between carrying amount of property plant and equipment and other tangible assets and their tax base. Part of this
deferred tax was recorded in other comprehensive income, affecting the revaluation reserve in the statement of financial
position. Other temporary difference are for investments (due to impairment recorded) and provisions.
The impact of this IFRS transition effect on Deferred tac is RON 136,699,379 as of December 31, 2022, RON
147,395,245
as
of December 31, 2021, and RON
87,366,717
as of January 1, 2021. The other elements impacted by this IFRS transition effect
in the statement of financial position and statement of profit and loss and other comprehensive income are summarized in
the below table.
December 31,
2022

December 31,
2021

January 1,
2021

Statement of financial position

Revaluation reserve (-)

(111,881,607)

(111,880,754)

(41,915,300)

Retained earnings (-)

(24,817,722)

(35,514,491)

(45,451,417)

Statement of profit and loss and other comprehensive income

Deferred tax

10,725,868

9,936,604

Deferred tax related to revaluation

(69,965,234)

(+) shows an increase in Deferred Tax liability, (-) shows a decrease in Deferred Tax liability
B.8 Retained earnings
The above IFRS transitions decreased retained earnings as follows:
December 31,
2022

December 31,
2021

January 1,
2021

Statement of financial position

Other intangible assets

121,373,111

125,641,276

131,812,262

Property plant and equipment

185,169,257

248,535,848

316,902,361

Inventories

5,215,409

2,540,507

2,446,207

Long and short term loans

11,305,416

Share capital

(886,083,318)

(886,083,318)

(887,083,318)

Legal reserves

(48,453,906)

(48,453,906)

(48,453,906)

Deferred tax

(24,817,722)

(35,514,491)

(45,451,417)

Other movement

454,225

13,611,758

12,337,186

Impact

(647,142,944)

(579,722,326)

(506,185,209)

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