Kiri

State L LC " KREMERATA BALTICA " Reg. No 40003487546 ANNUAL REVIEW 2023 Riga, 2024 SATURS Page. News about the Company 3 Financial statements: Management report 4-6 Income statement 7 Balance 8-9 Notes to the financial statements Report of the Statutory Auditor 10-17 i nformation about the Company Company name State LLC “ KREMERATA BALTICA ” Legal status of the company State limited liability company Register No, place and date 40003487546, Riga, 27.03.2000. In the Commercial Register from. 04.11.2004. Address (legal and postal) Riharda Vāgnera str . 8-6 , Riga , LV- 1050 Executive Agency Members of the public Preparer of the annual report Ingrīda Zemzare , Member of the Board Ministry of Culture 100% shareholder Registration No 90000042963 Krišjāņa Valdemāra str 11a, Riga Ligita Romāne , General Accountant Reporting period 01.01. 2023 .- 31.12. 2023 . Auditors Anita Kaņepa , Certified Auditor Certificate No 34 SIA " ARMA K Revidents Auditors " Reg. No 40103150246 P.Lejiņa str . 1 -31 , Rīga , LV-1029 State LLC “ KREMERATA BALTICA ” Management report KREMERATA BALTICA was re-registered on 4 November 2004. Core business: Performing Arts. The structural capital of the chamber orchestra - 100% - EUR 47965 is contributed by the state, in the person of the Ministry of Culture. Public procurement and its implementation: According to the financing agreement No 2.5.-11-36 of 2 February 2023, Kremerata Baltica has given 38 concerts , including 2 full CD recordings - 160 minutes in total . 8 concerts were given in the regions of Latvia: 2 in Cesis, 1 in Ventspils, 5 in Jurmala. 10 new programmes have been prepared for 2023, including several thematic programmes: 1. F.Chopin. 2 piano concertos. Georg ijs Osokin s and Kremerata Baltica ; 2. Eine andere Winterreise . Gidon Kremer and Kremerata Baltica ; 3. Glassperlenspiel programme. Gidon Kremer and Kremerata Baltica ; 4. Riga Festival Opening Programme. Lucas Debargs and Kremerata Baltica ; 5. Ligeti per excellence ; 6. New Year's Eve programme. Lettonic a ; 7. New Year's Eve programme. Kremerata Lithuanika ; 8. Mikala Petri and Kremerata Baltica. Premiere by Paul Ruder. Transfigurations ; 9. Hugo Ticciati, Arvo Pärt and Nirvana. Violin Concerto by Krists Auznieks. First performance ; 10. From Silvestrov to Georgs Pelēcis. A new version of a biographical page. Several programmes include major works by Baltic composers, performed in 10 concerts: 1. Eine andere Winterreise . Georg ijs Osokin s . On the river ; 2. 19.07. It too shall pass ; 3. 19.07. It too will pass, Jančevskis Lignum ; 4. 7.06 . Ukrainian Freedom Festival . Kristaps Pētersons. Chakona ; 5. 10.06 . Ukraine Freedom Festival Gala Programme. Works by Latvian and Ukrainian composers 6. 15.09.Dzintari. Krists Auznieks. Violin Concert ; 7. 16.09. Dzintari. Georgs Pelēcis. Pages of a biography for violin and chamber orchestra ; 8. 3.10. Prague Jančevskis . Lignum ; 9. 4.10. Brno. Jančevskis Lignum, Pelēcis Concertino bianco ; 10. Lithuanika. New Year's concerts. Programme of Lithuanian composers. Kremerata Baltica continues its programme of promoting the Baltic audience's opportunity to hear world-class stars from the Baltics by inviting the young Lithuanian pianist Onuti Gražiniti, the Latvian star Georgijs Osokins , and by introducing the audience to international cultural activities - outstanding soloists, the virtuoso of the block flute Mikala Petri, Lukas Debarga, Hugo Ticciati, etc.- in depth. Kremerata Baltica also promotes the individual development of the orchestra's leading artists, giving them the opportunity to perform both as soloists ( Džeraldas Bidva , Madara Peterson e , Giedre Dirvanauskaite , I uri i Gavr y l i uk , Andre i Pus h karev ) and in chamber ensembles. Kremerata Baltica has participated in International Festivals in 2023 : Glassperlenspiel festival in Tartu, Estonia; Kronberg Academy Festival in Germany; Lokenhaus Festival in Austria ; Sto c k h olm Baltic Music Festival . In 2023, Kremerata Baltica has given 20 concerts abroad : Germany, Estonia, Czech Republic . Composers whose works have been performed in chamber orchestra concert programmes : Peter is Vasks, Astor Piazzolla , Frederic Chopin, Milosz Magin , Mecilav Weinberg , Peter is Plakidis, Franz Schubert , Kristaps Peterson s , Viktoria Poleva , Antonio Vivaldi, Peter Vahi, Philip Glass, Ludwig van Beethoven, Arvo Pärt , Andrius Žlabis , Artur s Muscat s , Raminta Šerkšņyte , Jakub Janczewski , Kristaps Peterson s , Johann Sebastian Bach , Giacomo Puccini. Recorded music: Two full-time CD recordings were made in 2023. 1. Chopin. Georg ijs Osokin s and Kremerata Baltica. 2. Eine andere Winterreise. Gidon Kremer and Kremerata Baltica . Financial development : The financial envelope for 2023 is (EUR): Ministry of Culture's basic budget - 635 908 Estonian Ministry of Culture funding - 25 000 Lithuanian Ministry of Culture funding - 50 000 Cooperation partners' funding 186 191 , incl. 81 170 in Latvia Donation by the Gidon Kr e mer Foundation for the release of the CD " Eine andere Winterreise " - 20 000 The Chamber Orchestra has no tax debts as at 1 January 2024. VSIA KREMERATA BALTICA closed the year 2023 with a profit of EUR 810 . Proposal to earmark profits for long-term development to improve technical operations, to be retained in retained earnings. Future prospects and development of society : Concert activity in 2024: . * Concerts in Latvia, Lithuania, Estonia with world-renowned soloists. * Kremerata Baltica concert series worldwide: in Europe and Asia. * 21st Kremerata Baltica Festival in Dzintari *Concert activities abroad, including Switzerland, Estonia, Korea, Japan, Lithuania, Turkey, Azerbaijan, Sweden, Germany. A company's own shares or interests: The Company does not hold its own shares. Use of financial instruments and fintech risk management: Information on the use of financial instruments and financial risk management is provided in note 19 to these financial statements. Events after the last day of the reporting year: We continue to monitor the situation closely and will take the necessary measures to mitigate the impact of new events and circumstances, in particular those related to the volatile situation in Europe due to the Russian war in Ukraine, which may lead us to revise certain concert arrangements, programmes and the composition of the guest line-up. The Company has also given the opportunity to musicians from the Ukrainian Academy of Music to perform on its tours and has collaborated with the Ukrainian Aid Society in giving concerts to Ukrainian refugees and supporting their integration. There have been no circumstances affecting the results for the year and the financial position of the Company during the period between the last day of the financial year and the date on which the annual report is signed by management. The financial statements have been prepared on the going concern basis and management does not identify any liquidity issues in relation to the above. Statement of management responsibility: The Company's management is responsible for the preparation of the financial statements based on the historical cost accounting for each reporting period that present fairly the financial position of the Company at the end of the reporting year and the results of its operations. Management confirms that the accounting policies used in the preparation of this report for the period ending 31 December 2023 were appropriate, were applied consistently and were based on reasonable and prudent judgements. Management confirms that the relevant accounting principles applicable to the LR have been followed and the financial statements have been prepared on a going concern basis. Management is responsible for keeping proper accounting records, for safeguarding the Company's assets and for preventing fraud and other dishonest practices. Management confirms that it has provided the necessary information and explanations for the audit. Member of the Board Signature* Ingrīda Zemzare 9 April 2024 *THIS DOCUMENT IS SIGNED WITH A SECURE ELECTRONIC SIGNATURE AND CONTAINS A TIME STAMP Income statement for 2023 ( Classified by function of expenditure) No. NAME OF THE INDICATOR Note number 2023 EUR 2022 EUR 1 2 3 4 5 Net turnover 1 158 743 669 579 from other operating activities 158 743 669 579 Cost of production of goods sold, cost of goods sold or cost of services rendered (concert operating expenses) 2 ( 686 107 ) (1 176 253) Gross profit or loss ( 527 364 ) (506 674) Administration costs 3 ( 189 666 ) (184 283) Other operating revenue 4 759 837 696 433 Other operating expenses 5 ( 41 278 ) (983) Profit or loss before tax 1 529 4 493 Corporation tax for the year under review (719) - Profit or loss for the year 810 4 493 The annexes on pages 10 to 17 are an integral part of these financial statements . Signature* Ingrīda Zemzare, Member of the Management Board Annual report prepared by: Signature* Ligita Romane Accounting Officer 9 April 2024 *THIS DOCUMENT IS SIGNED WITH A SECURE ELECTRONIC SIGNATURE AND CONTAINS A TIME STAMP Balance sheet at 31 December 2023 Active Note number 31.12. 2023 EUR 31.12. 2022 EUR 1. Non-current investments Intangible investments Other fixed assets and inventories 6 6 4 033 9 910 6 833 14 574 Total fixed assets 13 943 21 407 Total non-current investments 13 943 21 407 2.Current assets I.Stocks Raw materials, basic materials and consumables 7 1 483 956 Total stocks 1 483 956 II. Debtors 1. Trade debtors 8 2 730 - 2. Other debtors 9 16 263 22 701 3. Deferred charges 10 1 921 904 Accrued revenue 11 24 200 - Total debtors 45 114 23 605 IV. Cash (total) 12 24 460 65 289 Total current assets 71 057 89 850 Total assets 85 000 111 257 Balance sheet at 31 December 2023 Passive Note number 31.12. 2023 EUR 31.12. 2022 EUR 1. Equity Share capital, share capital Reserves (a) other reserves 3.Retained earnings 47 965 - 47 965 1 (a) retained earnings from previous years 2 182 565 (b) retained earnings for the year under review 810 4 493 Total equity 50 957 53 024 3. Creditors II. Short-term debts 1. Amounts owed to suppliers and contractors 13 2 724 3 490 2. Other creditors 13 - 9 154 3. Taxes and social security contributions 4. Accrued liabilities 14 15 26 513 4 806 41 983 3 606 Total short-term debts 34 043 58 233 Total creditors 34 043 58 233 Total liabilities 85 000 111 257 The annexes on pages 10 to 17 are an integral part of these financial statements. Signature* Ingrīda Zemzare, Member of the Management Board Annual report prepared by: Signature* Ligita Romane Accounting Officer 9 April 2024 THE DOCUMENT IS SIGNED WITH A SECURE ELECTRONIC SIGNATURE AND CONTAINS A TIME STAMP Annex to the Financial Statements ms 1. Significant accounting principles Reporting principles The Annual Report has been prepared in accordance with the Accounting Law, the Law on Annual Reports and Consolidated Annual Reports and the requirements of the Cabinet of Ministers Regulation No.775 "On the Application of the Law on Annual Reports and Consolidated Annual Reports". As at 31 December 2023, the Company qualifies as a micro-entity . The annual report uses euro (EUR) as the measure of value and rounds figures to whole numbers (EUR). The income statement is presented in a vertical format, with expenditure classified by function. Accounting principles applied . assumed that the Company will continue to operate; The accounting policies and valuation techniques used are the same as those used in the previous year ; items in the financial statements have been recognised and measured using the prudent person approach, subject to the following conditions: the financial statements include only the profit up to the balance sheet date; take into account all liabilities and the amount of risks and losses expected to be incurred during the year or previous years, even if they became known between the balance sheet date and the date on which the annual report is signed by the Company's governing body; all impairment and depreciation amounts are calculated and taken into account, regardless of whether the reporting year ends with a profit or loss; amounts are presented in the balance sheet and income statement on an accrual basis, i.e. income and expenses are shown at the time they are incurred rather than when cash is received or spent. Income and expenditure relating to the year is shown irrespective of the date of receipt of payment or invoice; costs are matched to revenue in the respective accounting periods; asset and liability items are valued separately in the balance sheet ; the amounts in the balance sheet and income statement are based on the substance and substance of the economic transactions, not just the legal form ; items on the balance sheet and income statement are measured at acquisition cost or production cost. Acquisition cost is the purchase price of a good or service (less any discounts received) plus any additional costs associated with the purchase. Cost of production is the cost of raw materials, basic and consumable supplies and other costs directly attributable to the production of the item. Parts of the costs indirectly related to the production of the item may also be included in the cost of production, provided that these costs are attributable to the same period. Reporting period The reference period is the 12 months from 1 January 2023 to 31 December 2023 . Monetary unit and transactions in foreign currencies The figures in these financial statements are expressed in the official currency of Latvia, the euro ( EUR). Gains or losses arising from fluctuations in foreign exchange rates are recognised in the income statement for the period . Related parties Related parties are defined as members of the Company, the Management Board, close relatives of the Management Board and Companies in which they have significant influence or control. Intangible investments and fixed assets Property, plant and equipment and intangible investments are stated at cost less depreciation. Acquired assets are recognised as property, plant and equipment if their value exceeds EUR 400 . Purchased assets below EUR 400 are recorded as inventories of minor value. Depreciation is calculated over the useful life of the asset using the straight-line method, using the following depreciation rates: Intangible investments: Licences 35% Fixed assets : Office equipment 35% Computer equipment 35% Other fixed assets 20% Stock valuation Inventories are valued at the lower of net realisable value. Accounting for debtors Receivables are presented net of any specific allowance for doubtful and bad debts in the balance sheet. Where there is doubt as to the recoverability of a receivable recognised in the current or prior financial year, an allowance for doubtful debts is made in the current financial year for the amount of the doubt, with a corresponding charge to the income statement. A debt is considered doubtful if, for example, the debtor is in financial difficulty and has been declared insolvent by a court order, if the debt is not paid within the prescribed period and after a reminder, if the debtor has disputed the right to recover the debt, or in other cases. Benefits Cash and cash equivalents are cash at banks - the State Treasury and A/S Swedbank. Accounts payable The specific amounts of the liabilities are shown in the balance sheet under long-term creditors and short-term creditors, depending on the maturity of the debt. Non-current creditors include amounts falling due more than 12 months after the end of the reporting year and incurred to finance long-term investments and working capital, which are not included in current creditors. Current creditors include amounts payable within the next 12 months after the end of the reporting year and other liabilities arising in the normal course of the Company's business. Where liabilities are not shown as due for payment, they are shown under short-term credits . Accrued liabilities Accrued liabilities are clearly known amounts due to suppliers and contractors for goods or services received during the reporting year for which, due to the terms of the supply, purchase or enterprise agreement or for other reasons, the appropriate supporting document (invoice) has not yet been received for payment at the balance sheet date. These amounts are calculated on the basis of the contractual price and the evidence of actual receipt of the goods or services. Accrued liability for untaken leave The estimated liability to employees for untaken leave days accrued during the year is recognised in the Company's accounts under the balance sheet caption ' Accrued liabilities ' . Revenue recognition principles The Company's revenue is its net turnover and other operating income. Net turnover is the revenue from the sale of products and goods and the provision of services, less trade discounts and other allowances, value added tax and other taxes directly attributable to turnover. Other operating revenue is other revenue connected with or arising out of the business. Revenue is recognised when the relevant revenue recognition rules are met. Revenue is recognised on an accrual basis. Corporation tax Corporation tax is the tax charged in the period . Corporate income tax is recognised in the income statement. The tax for the period has been calculated by applying the requirements of the Corporation Tax Law to taxable income and the statutory tax rate. Fair value Fair value reflects the amount at which an asset could be realised or a liability settled in normal market conditions. Application of estimates The preparation of financial statements requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period and the date of the financial statements . Management has made an assessment of profit or loss and believes that the financial statements present fairly the financial position based on all currently available information. Information that the Company's assets are pledged or otherwise encumbered The Company's assets are not pledged or otherwise encumbered. Guarantees and warranties The Company has no guarantees or warranties to other parties. Credentials The Company has no letters of credit. Details of possible liabilities The Company is not a defendant in any litigation and the financial statements do not include any provision for liabilities that may arise. Commitments for pensions The Company has no liability for pensions. Information about possible liabilities that could arise from a specific past event The Company has no liabilities that could arise from a specific past event. Commitments under leases and rental agreements material to the Company's operations The Company has no leases or tenancy agreements material to its operations. Information on operating leases The Company does not provide operating lease services and has no operating lease agreements. Information on finance leases The Company does not provide finance lease services and has no finance lease agreements in place. Information on leaseback The Company does not provide leaseback services and does not have any leaseback agreements in place. Liabilities to related and associated undertakings The Company has no liabilities to the parent company and the Company has no associates. Information about adverse or favourable events that do not relate to the year but may materially affect the assessment of users of the annual report of the entity's assets, liabilities, financial position, profit or loss, cash flows or future decision-making. The Company is not aware of any adverse or favourable events that do not relate to the year but may materially affect the assessment of users of the annual report of the Company's assets, liabilities, financial position, profit or loss and cash flows or future decision-making. Explanation of a departure from any of the principles or rules for the recognition, measurement and disclosure of items in the statutory financial statements The Company has not departed from any of the principles or rules of statutory recognition, measurement and disclosure of financial statement items. Explanation if annual accounts data are not comparable or adjustments have been made to previous years. The data in the annual accounts are comparable with each other and no adjustments have been made for prior years. 2. Note to income statement items 1. Net turnover Turnover is the revenue generated during the year from the company's core business of providing concerts , excluding value added tax. 2023 2022 EUR EUR Revenue from the provision of services (Latvia) 81 170 69 736 Revenue from cooperation partners in other countries 77 573 599 843 Total 158 743 669 579 2. cost of production of goods sold, cost of goods sold or cost of services rendered (concert costs) 2023 2022 EUR EUR Salaries of orchestral musicians , provisions for untaken holidays 456 781 501 677 Musician-performer fees 21 458 152 028 Compulsory national social security costs 107 717 118 445 Business trips, transport of musical instruments 75 363 257 455 Other costs of concert activities (rent of premises, rent of music and instruments , Covid-19 tests, copyrights, etc.) 18 780 139 621 Depreciation of fixed assets 5 636 666 6 6 650 Communication services 372 377 Total 686 107 1 176 253 3.Administration costs 2023 2022 EUR EUR Communication costs 1 852 1 692 Office maintenance 9 322 9 637 Banking 1 512 731 Cost of the audit of the annual accounts 1 996 1 815 Administrative remuneration , provision for untaken leave 126 264 109 399 Compulsory national social security costs 27 731 24 013 Depreciation of fixed assets, write-down of current assets 3 369 1 134 Transport expenses 8 894 8 535 Other administration costs 8 726 27 327 Total 189 666 184 283 4.Other operating revenue 2023 2022 EUR EUR Ministry of Culture grants 635 908 619 357 State Culture Capital Foundation project funding 3 248 1 900 Funded by the Ministry of Culture of the Republic of Estonia 25 000 25 000 Funded by the Ministry of Culture of the Republic of Lithuania 50 000 50 000 Other farm operating revenue 1 481 176 GIDON KREMER FOUNDATION donations 20 000 - GIDON KREMER FOUNDATION support 24 200 - Total 759 837 696 433 5 . Other operating costs 2023 2022 EUR EUR Fines paid 1 283 123 CD recording costs 39 700 0 CDs transferred to a partner 295 819 Currency fluctuations - 41 Total 41 278 983 3 . Appendices to the balance sheet items 6. Long-term investments All fixed assets are stated at cost less depreciation in the balance sheet. Depreciation is calculated using the straight-line method . Statement of movements in long-term investments Intangible investments Other fixed assets Total EUR EUR EUR Initial value 31.12. 2022 . 8 733 40 903 49 636 Purchased in 2023 - 1 541 1 541 Off in 2023 - 882 882 Initial value 31.12. 2023 . 8 733 41 562 50 295 Accumulated depreciation as at 31.12. 2022 . 1 900 26 329 28 229 Estimated depreciation in 2023 2 800 6 205 9 005 Depreciation excluded in 2023 - 882 882 Accumulated depreciation as at 31.12. 2023 . 4 700 31 652 36 352 Carrying amount at 31.12. 2022 . 6 833 14 574 21 407 Book value as at 31.12. 2023 . 4 033 9 910 13 943 7 . Stocks 31.12. 2023 . 31.12. 2022 . EUR EUR Finished products, presentation materials 1 483 956 Total 1 483 956 8 . Trade debtors 31.12. 2023 . 31.12. 2022 . EUR EUR Settlements with customers 2 730 - Total 2 730 - There are no overdue debtors in the accounts receivable and the amount is recoverable. 9 . Other debtors 31.12. 2023 . 31.12. 2022 . EUR EUR Other debtors - settlements with customers, advances 936 640 Contributions not subject to tax* 15 327 22 061 Total 16 263 22 701 * Unallocated tax contributions are taxes paid during the reporting period that are not attributed to the payment of taxes as at the balance sheet date. 10 . Deferred charges 31.12. 2023 . 31.12. 2022 . EUR EUR Software licence for 2024 172 102 www. Subscription fee for 2024 60 26 Note rental expenses 776 776 Instrument rental expenditure for 2024 179 - AVIO and bus tickets , hotel for 2024 734 - Total 1 921 904 11.Accrued revenue 31.12.2023. 31.12.2022. EUR EUR Donation for the production of CDs* 24 200 - Total 24 200 - *The donation received in 2024 is included in revenue in the reporting period for the purpose of matching revenue with the costs for which the donation was received. 12 . Cash 31.12. 2023 . 31.12. 2022 . EUR EUR Cash at credit institutions (Latvia) 24 460 65 289 Total 24 460 65 289 The Company's cash is not held on deposit or in foreign banks. 13 . Amounts owed to suppliers and contractors 31.12. 2023 . 31.12. 2022 . EUR EUR Due to suppliers 2 724 3 490 Total 2 724 3 490 14 . Other creditors 31.12. 2023 . 31.12. 2022 . EUR EUR Wages for December - 9 154 Total - 9 154 15 . Taxes and social security contributions* 31.12. 2023 . 31.12. 2022 . EUR EUR Personal income tax 10 031 11 327 Compulsory national social security costs 16 472 22 062 Value added tax - 8 584 Risk levy 10 10 Total 26 513 41 983 * See also note 9 to these financial statements. 16 . Accrued liabilities 31.12. 2023 . 31.12. 2022 . EUR EUR Annual report audit services 1 996 1 815 Provision for untaken leave 2 810 1 791 Total 4 806 3 606 4. General information 17. Number of persons employed by the company 2023 2022 Average number of persons employed by the Company per year 29 29 18. Information on the remuneration of the members of the Supervisory Board and the Executive Board The remuneration paid to a member of the Board of Directors is €49 495 , and the SGEI contribution is €10 280 . 19 Financial risk management The Company's most significant financial instruments are trade receivables, other receivables and cash in current accounts. The main purpose of these financial instruments is to finance the Company's operations. The Company is also exposed to a number of other financial instruments, trade and other payables, which arise directly from its business activities. The financial risks associated with the Company's financial instruments are mainly liquidity risk and credit risk. The Company's management seeks to minimise the negative impact of potential financial risks on the Company's financial position. The Company does not use derivative financial instruments for financial risk management. Credit risk The Company is exposed to credit risk related to its trade receivables and cash. The Company monitors its credit risk by continuously assessing the repayment history of its customers and by setting credit terms for each customer individually. In addition, the Company continuously monitors its receivable balances to minimise the possibility of uncollectible receivables. Liquidity risk The Company manages its liquidity risk by maintaining adequate cash balances in current accounts. 20 . Significant events during and after the balance sheet date and their impact on the Company's ability to continue as a going concern The management of the company employed all the company's staff throughout 2023 , also taking advantage of the positive experience, and continued to develop the individual orchestral groups as independent chamber ensembles: the sextet Kremerata Lithuanica and the nonet Kremerata Let t onica , for which concerts and recordings were provided both in Latvia and abroad. We continue to monitor the situation closely and will take the necessary measures to mitigate the impact of new events and circumstances , in particular those related to the volatile situation in Europe due to the Russian war in Ukraine, which may lead us to revise certain concert arrangements, programmes and the composition of the guest line-up. The Company has also given the opportunity to musicians from the Ukrainian Academy of Music to perform on its tours and has collaborated with the Ukrainian Aid Society in giving concerts to Ukrainian refugees and supporting their integration. 21 . Continuance of the Company The financial statements have been prepared on the going concern basis. Profit for the period has been achieved, which allows for positive cash flow and operating results to be projected for the next reporting period. 22 . Events after the balance sheet date There are no events that occurred between the last day of the reporting year and the date of signing the financial statements that require adjustments to these financial statements or that need to be explained in these financial statements. Member of the Management Board Signature* Ingrīda Zemzare Annual report prepared by : Signature* Ligita Romāne Chief Accountant 9 April 2024 THE DOCUMENT IS SIGNED WITH A SECURE ELECTRONIC SIGNATURE AND CONTAINS A TIME STAMP SIA ”ARMA K Revidents Auditors” “ARMA K R evidents A uditors” Reģ. Nr. 40103150246 P.Lejiņa 1-31, Rīga, LV-1029 e-pasts: [email protected] ZVĒRINĀTU REVIDENTU KOMERCSABIEDRĪBA, LZRA LICENCE NR. 90 tālrunis: 29 540 212 ___________________________________________________________________________________________________________________________________________________________ NEATKARĪGU REVIDENTU ZIŅOJUMS VSIA KREMERATA BALTICA DALĪBNIEKIEM Mūsu atzinums par finanšu pārskatu Esam veikuši VSIA “KREMERATA BALTICA” (“Sabiedrība”) pievienotajā gada pārskatā ietvertā finanšu pārskata no 7. līdz 17. lapai revīziju. Pievienotais finanšu pārskats ietver: • bilanci 2023. gada 31. decembrī, • peļņas vai zaudējumu aprēķinu par gadu, kas noslēdzās 2023. gada 31. decembrī, • finanšu pārskata pielikumu, kas ietver nozīmīgu grāmatvedības uzskaites principu kopsavilkumu un citu paskaidrojošu informāciju. Mūsuprāt, pievienotais finanšu pārskats sniedz patiesu un skaidru priekšstatu par VSIA “KREMERATA BALTICA” finansiālo stāvokli 2023. gada 31. decembrī un par tās darbības finanšu rezultātiem, kas noslēdzās 2023. gada 31. decembrī, saskaņā ar Latvijas Republikas Gada pārskatu un konsolidēto gada pārskatu likumu (“Gada pārskatu un konsolidēto gada pārskatu likums”). Atzinuma pamatojums Atbilstoši Latvijas Republikas Revīzijas pakalpojumu likumam (“Revīzijas pakalpojumu likums”) mēs veicām revīziju saskaņā ar Latvijas Republikā atzītiem starptautiskajiem revīzijas standartiem (turpmāk- SRS). Mūsu pienākumi, kas noteikti šajos standartos, ir turpmāk aprakstīti mūsu ziņojuma sadaļā Revidenta atbildība par finanšu pārskata revīziju. Mēs esam neatkarīgi no Sabiedrības saskaņā ar Starptautiskās Grāmatvežu ētikas standartu padomes izstrādātā Starptautiskā Profesionālu grāmatvežu ētikas kodeksa (tostarp Starptautisko Neatkarības standartu) prasībām un Revīzijas pakalpojumu likumā iekļautajām neatkarības prasībām, kas ir piemērojamas mūsu veiktajai finanšu pārskata revīzijai Latvijas Republikā. Mēs esam ievērojuši arī Starptautiskā Profesionālu grāmatvežu ētikas kodeksa (tostarp Starptautisko Neatkarības standartu) un Revīzijas pakalpojumu likumā noteiktos pārējos profesionālās ētikas principus un objektivitātes prasības. Mēs uzskatām, ka mūsu iegūtie revīzijas pierādījumi dod pietiekamu un atbilstošu pamatojumu mūsu atzinumam. Ziņošana par citu informāciju Par citu informāciju atbild Sabiedrības vadība. Citu informāciju veido: • informācija par Sabiedrību, kas sniegta pievienotā gada pārskata 3. lapā, • vadības ziņojums, kas sniegts pievienotā gada pārskatā no 4. līdz 6. lapai. Mūsu atzinums par finanšu pārskatu neattiecas uz gada pārskatā ietverto citu informāciju, un mēs nesniedzam par to nekāda veida apliecinājumu, izņemot to kā norādīts mūsu ziņojuma sadaļā Citas ziņošanas prasības saskaņā ar Latvijas Republikas tiesību aktu prasībām. Saistībā ar finanšu pārskata revīziju mūsu pienākums ir iepazīties ar citu informāciju un, to darot, izvērtēt, vai šī cita informācija būtiski neatšķiras no finanšu pārskata informācijas vai no mūsu zināšanām, kuras mēs ieguvām revīzijas gaitā, un vai tā nesatur cita veida būtiskas neatbilstības. Ja, balstoties uz veikto darbu un ņemot vērā revīzijas laikā gūtās ziņas un izpratni par Sabiedrību un tās darbības vidi, mēs secinām, ka citā informācijā ir būtiskas neatbilstības, mūsu pienākums ir ziņot par šādiem apstākļiem. Mūsu uzmanības lokā nav nākuši apstākļi, par kuriem būtu jāziņo. Citas ziņošanas prasības saskaņā ar Latvijas Republikas tiesību aktu prasībām Signature Papildus tam, saskaņā ar Revīzijas pakalpojumu likumu mūsu pienākumsnot validated ir sniegt viedokli, vai Vadības ziņojums ir sagatavots saskaņā ar tā sagatavošanu reglamentējošā normatīvā akta, Gada pārskatu un konsolidēto gada pārskatu likuma, prasībām. Pamatojoties vienīgi uz mūsu revīzijas ietvaros veiktajām procedūrām, mūsuprāt: • Digitally Vadības ziņojumā par pārskata gadu, par kuru ir sagatavots signed finanšu bysniegtā pārskats, ANITA KAŅEPA informācija atbilst finanšu pārskatam, un • Date: 2024.04.09 14:04:43 EEST Vadības ziņojums ir sagatavots saskaņā ar Gada pārskatu un konsolidēto gada pārskatu likuma prasībām. NEATKARĪGU REVIDENTU ZIŅOJUMS / GADA PĀRSKATS 2023.G. 1. lapa (1 no 2) Vadības un personu, kurām uzticēta Sabiedrības pārraudzība, atbildība par finanšu pārskatu Vadība ir atbildīga par tāda finanšu pārskata, kas sniedz patiesu un skaidru priekšstatu, sagatavošanu saskaņā ar Gada pārskatu un konsolidēto gada pārskatu likumu, kā arī par tādas iekšējās kontroles sistēmas uzturēšanu, kāda saskaņā ar vadības viedokli ir nepieciešama, lai būtu iespējams sagatavot finanšu pārskatu, kas nesatur ne krāpšanas, ne kļūdas dēļ izraisītas būtiskas neatbilstības. Sagatavojot finanšu pārskatu, vadības pienākums ir izvērtēt Sabiedrības spēju turpināt darbību, pēc nepieciešamības sniedzot informāciju par apstākļiem, kas saistīti ar Sabiedrības spēju turpināt darbību un darbības turpināšanas principa piemērošanu, ja vien vadība neplāno Sabiedrības likvidāciju vai tās darbības izbeigšanu, vai arī tai nav citas reālas alternatīvas kā Sabiedrības likvidācija vai darbības izbeigšana. Personas, kurām uzticēta Sabiedrības pārraudzība, ir atbildīgas par Sabiedrības finanšu pārskata sagatavošanas procesa uzraudzību. Revidenta atbildība par finanšu pārskata revīziju Mūsu mērķis ir iegūt pietiekamu pārliecību par to, ka finanšu pārskats kopumā nesatur kļūdas vai krāpšanas dēļ izraisītas būtiskas neatbilstības, un sniegt revidentu ziņojumu, kurā izteikts atzinums. Pietiekama pārliecība ir augsta līmeņa pārliecība, bet tā negarantē, ka revīzijā, kas veikta saskaņā ar SRS, vienmēr tiks atklāta būtiska neatbilstība, ja tāda pastāv. Neatbilstības var rasties krāpšanas vai kļūdas dēļ, un tās ir uzskatāmas par būtiskām, ja var pamatoti uzskatīt, ka tās katra atsevišķi vai visas kopā varētu ietekmēt saimnieciskos lēmumus, ko lietotāji pieņem, balstoties uz šo finanšu pārskatu. Veicot revīziju saskaņā ar SRS, visa revīzijas procesa gaitā mēs izdarām profesionālus spriedumus un saglabājam profesionālo skepticismu. Mēs arī: • identificējam un izvērtējam riskus, ka finanšu pārskatā varētu būt krāpšanas vai kļūdas dēļ izraisītās būtiskas neatbilstības, izstrādājam un veicam revīzijas procedūras šo risku mazināšanai, kā arī iegūstam revīzijas pierādījumus, kas sniedz pietiekamu un atbilstošu pamatojumu mūsu atzinumam. Risks, ka netiks atklātas būtiskas neatbilstības krāpšanas dēļ, ir augstāks nekā risks, ka netiks atklātas kļūdas izraisītas neatbilstības, jo krāpšana var ietvert slepenas norunas, dokumentu viltošanu, informācijas neuzrādīšanu ar nodomu, informācijas nepatiesu atspoguļošanu vai iekšējās kontroles pārkāpumus; • iegūstam izpratni par iekšējo kontroli, kas ir būtiska revīzijas veikšanai, lai izstrādātu konkrētajiem apstākļiem atbilstošas revīzijas procedūras, bet nevis, lai sniegtu atzinumu par Sabiedrības iekšējās kontroles efektivitāti; • izvērtējam pielietoto grāmatvedības politiku atbilstību un grāmatvedības aplēšu un attiecīgās vadības uzrādītās informācijas pamatotību; • izdarām secinājumu par vadības piemērotā darbības turpināšanas principa atbilstību, un, pamatojoties uz iegūtajiem revīzijas pierādījumiem, par to, vai pastāv būtiska nenoteiktība attiecībā uz notikumiem vai apstākļiem, kas var radīt nozīmīgas šaubas par Sabiedrības spēju turpināt darbību. Ja mēs secinām, ka būtiska nenoteiktība pastāv, revidentu ziņojumā tiek vērsta uzmanība uz finanšu pārskatā sniegto informāciju par šiem apstākļiem, vai, ja šāda informācija nav sniegta, mēs sniedzam modificētu atzinumu. Mūsu secinājumi ir pamatoti ar revīzijas pierādījumiem, kas iegūti līdz revidentu ziņojuma datumam. Tomēr nākotnes notikumu vai apstākļu ietekmē Sabiedrība savu darbību var pārtraukt; • izvērtējam vispārēju finanšu pārskata struktūru un saturu, ieskaitot atklāto informāciju un skaidrojumus pielikumā, un to, vai finanšu pārskats patiesi atspoguļo pārskata pamatā esošos darījumus un notikumus. Mēs sazināmies ar personām, kurām uzticēta Sabiedrības pārraudzība, un, cita starpā, sniedzam informāciju par plānoto revīzijas apjomu un laiku, kā arī par svarīgiem revīzijas novērojumiem, tajā skaitā par būtiskiem iekšējās kontroles trūkumiem, kādus mēs identificējam revīzijas laikā Anita Kaņepa, Atbildīgā zvērinātā revidente, LZRA sertifikāts Nr.34 SIA “ARMA K Revidents Auditors”, Valdes priekšsēdētāja, LZRA licence Nr.90 Rīga, 2024.gada 9.aprīlis ŠIS DOKUMENTS IR ELEKTRONISKI PARAKSTĪTS AR DROŠU ELEKTRONISKO PARAKSTU UN SATUR LAIKA ZĪMOGU . DATUMS SKATĀMS DOKUMENTA PARAKSTA LAIKA ZĪMOGĀ. NEATKARĪGU REVIDENTU ZIŅOJUMS / GADA PĀRSKATS 2023.G. 2. lapa (2 no 2) State L LC " KREMERATA BALTICA " Reg. No 40003487546 ANNUAL REVIEW 2023 Riga, 2024 SATURS Page. News about the Company 3 Financial statements: Management report 4-6 Income statement 7 Balance 8-9 Notes to the financial statements Report of the Statutory Auditor 10-17 i nformation about the Company Company name State LLC “ KREMERATA BALTICA ” Legal status of the company State limited liability company Register No, place and date 40003487546, Riga, 27.03.2000. In the Commercial Register from. 04.11.2004. Address (legal and postal) Riharda Vāgnera str . 8-6 , Riga , LV- 1050 Executive Agency Members of the public Preparer of the annual report Ingrīda Zemzare , Member of the Board Ministry of Culture 100% shareholder Registration No 90000042963 Krišjāņa Valdemāra str 11a, Riga Ligita Romāne , General Accountant Reporting period 01.01. 2023 .- 31.12. 2023 . Auditors Anita Kaņepa , Certified Auditor Certificate No 34 SIA " ARMA K Revidents Auditors " Reg. No 40103150246 P.Lejiņa str . 1 -31 , Rīga , LV-1029 State LLC “ KREMERATA BALTICA ” Management report KREMERATA BALTICA was re-registered on 4 November 2004. Core business: Performing Arts. The structural capital of the chamber orchestra - 100% - EUR 47965 is contributed by the state, in the person of the Ministry of Culture. Public procurement and its implementation: According to the financing agreement No 2.5.-11-36 of 2 February 2023, Kremerata Baltica has given 38 concerts , including 2 full CD recordings - 160 minutes in total . 8 concerts were given in the regions of Latvia: 2 in Cesis, 1 in Ventspils, 5 in Jurmala. 10 new programmes have been prepared for 2023, including several thematic programmes: 1. F.Chopin. 2 piano concertos. Georg ijs Osokin s and Kremerata Baltica ; 2. Eine andere Winterreise . Gidon Kremer and Kremerata Baltica ; 3. Glassperlenspiel programme. Gidon Kremer and Kremerata Baltica ; 4. Riga Festival Opening Programme. Lucas Debargs and Kremerata Baltica ; 5. Ligeti per excellence ; 6. New Year's Eve programme. Lettonic a ; 7. New Year's Eve programme. Kremerata Lithuanika ; 8. Mikala Petri and Kremerata Baltica. Premiere by Paul Ruder. Transfigurations ; 9. Hugo Ticciati, Arvo Pärt and Nirvana. Violin Concerto by Krists Auznieks. First performance ; 10. From Silvestrov to Georgs Pelēcis. A new version of a biographical page. Several programmes include major works by Baltic composers, performed in 10 concerts: 1. Eine andere Winterreise . Georg ijs Osokin s . On the river ; 2. 19.07. It too shall pass ; 3. 19.07. It too will pass, Jančevskis Lignum ; 4. 7.06 . Ukrainian Freedom Festival . Kristaps Pētersons. Chakona ; 5. 10.06 . Ukraine Freedom Festival Gala Programme. Works by Latvian and Ukrainian composers 6. 15.09.Dzintari. Krists Auznieks. Violin Concert ; 7. 16.09. Dzintari. Georgs Pelēcis. Pages of a biography for violin and chamber orchestra ; 8. 3.10. Prague Jančevskis . Lignum ; 9. 4.10. Brno. Jančevskis Lignum, Pelēcis Concertino bianco ; 10. Lithuanika. New Year's concerts. Programme of Lithuanian composers. Kremerata Baltica continues its programme of promoting the Baltic audience's opportunity to hear world-class stars from the Baltics by inviting the young Lithuanian pianist Onuti Gražiniti, the Latvian star Georgijs Osokins , and by introducing the audience to international cultural activities - outstanding soloists, the virtuoso of the block flute Mikala Petri, Lukas Debarga, Hugo Ticciati, etc.- in depth. Kremerata Baltica also promotes the individual development of the orchestra's leading artists, giving them the opportunity to perform both as soloists ( Džeraldas Bidva , Madara Peterson e , Giedre Dirvanauskaite , I uri i Gavr y l i uk , Andre i Pus h karev ) and in chamber ensembles. Kremerata Baltica has participated in International Festivals in 2023 : Glassperlenspiel festival in Tartu, Estonia; Kronberg Academy Festival in Germany; Lokenhaus Festival in Austria ; Sto c k h olm Baltic Music Festival . In 2023, Kremerata Baltica has given 20 concerts abroad : Germany, Estonia, Czech Republic . Composers whose works have been performed in chamber orchestra concert programmes : Peter is Vasks, Astor Piazzolla , Frederic Chopin, Milosz Magin , Mecilav Weinberg , Peter is Plakidis, Franz Schubert , Kristaps Peterson s , Viktoria Poleva , Antonio Vivaldi, Peter Vahi, Philip Glass, Ludwig van Beethoven, Arvo Pärt , Andrius Žlabis , Artur s Muscat s , Raminta Šerkšņyte , Jakub Janczewski , Kristaps Peterson s , Johann Sebastian Bach , Giacomo Puccini. Recorded music: Two full-time CD recordings were made in 2023. 1. Chopin. Georg ijs Osokin s and Kremerata Baltica. 2. Eine andere Winterreise. Gidon Kremer and Kremerata Baltica . Financial development : The financial envelope for 2023 is (EUR): Ministry of Culture's basic budget - 635 908 Estonian Ministry of Culture funding - 25 000 Lithuanian Ministry of Culture funding - 50 000 Cooperation partners' funding 186 191 , incl. 81 170 in Latvia Donation by the Gidon Kr e mer Foundation for the release of the CD " Eine andere Winterreise " - 20 000 The Chamber Orchestra has no tax debts as at 1 January 2024. VSIA KREMERATA BALTICA closed the year 2023 with a profit of EUR 810 . Proposal to earmark profits for long-term development to improve technical operations, to be retained in retained earnings. Future prospects and development of society : Concert activity in 2024: . * Concerts in Latvia, Lithuania, Estonia with world-renowned soloists. * Kremerata Baltica concert series worldwide: in Europe and Asia. * 21st Kremerata Baltica Festival in Dzintari *Concert activities abroad, including Switzerland, Estonia, Korea, Japan, Lithuania, Turkey, Azerbaijan, Sweden, Germany. A company's own shares or interests: The Company does not hold its own shares. Use of financial instruments and fintech risk management: Information on the use of financial instruments and financial risk management is provided in note 19 to these financial statements. Events after the last day of the reporting year: We continue to monitor the situation closely and will take the necessary measures to mitigate the impact of new events and circumstances, in particular those related to the volatile situation in Europe due to the Russian war in Ukraine, which may lead us to revise certain concert arrangements, programmes and the composition of the guest line-up. The Company has also given the opportunity to musicians from the Ukrainian Academy of Music to perform on its tours and has collaborated with the Ukrainian Aid Society in giving concerts to Ukrainian refugees and supporting their integration. There have been no circumstances affecting the results for the year and the financial position of the Company during the period between the last day of the financial year and the date on which the annual report is signed by management. The financial statements have been prepared on the going concern basis and management does not identify any liquidity issues in relation to the above. Statement of management responsibility: The Company's management is responsible for the preparation of the financial statements based on the historical cost accounting for each reporting period that present fairly the financial position of the Company at the end of the reporting year and the results of its operations. Management confirms that the accounting policies used in the preparation of this report for the period ending 31 December 2023 were appropriate, were applied consistently and were based on reasonable and prudent judgements. Management confirms that the relevant accounting principles applicable to the LR have been followed and the financial statements have been prepared on a going concern basis. Management is responsible for keeping proper accounting records, for safeguarding the Company's assets and for preventing fraud and other dishonest practices. Management confirms that it has provided the necessary information and explanations for the audit. Member of the Board Signature* Ingrīda Zemzare 9 April 2024 *THIS DOCUMENT IS SIGNED WITH A SECURE ELECTRONIC SIGNATURE AND CONTAINS A TIME STAMP Income statement for 2023 ( Classified by function of expenditure) No. NAME OF THE INDICATOR Note number 2023 EUR 2022 EUR 1 2 3 4 5 Net turnover 1 158 743 669 579 from other operating activities 158 743 669 579 Cost of production of goods sold, cost of goods sold or cost of services rendered (concert operating expenses) 2 ( 686 107 ) (1 176 253) Gross profit or loss ( 527 364 ) (506 674) Administration costs 3 ( 189 666 ) (184 283) Other operating revenue 4 759 837 696 433 Other operating expenses 5 ( 41 278 ) (983) Profit or loss before tax 1 529 4 493 Corporation tax for the year under review (719) - Profit or loss for the year 810 4 493 The annexes on pages 10 to 17 are an integral part of these financial statements . Signature* Ingrīda Zemzare, Member of the Management Board Annual report prepared by: Signature* Ligita Romane Accounting Officer 9 April 2024 *THIS DOCUMENT IS SIGNED WITH A SECURE ELECTRONIC SIGNATURE AND CONTAINS A TIME STAMP Balance sheet at 31 December 2023 Active Note number 31.12. 2023 EUR 31.12. 2022 EUR 1. Non-current investments Intangible investments Other fixed assets and inventories 6 6 4 033 9 910 6 833 14 574 Total fixed assets 13 943 21 407 Total non-current investments 13 943 21 407 2.Current assets I.Stocks Raw materials, basic materials and consumables 7 1 483 956 Total stocks 1 483 956 II. Debtors 1. Trade debtors 8 2 730 - 2. Other debtors 9 16 263 22 701 3. Deferred charges 10 1 921 904 Accrued revenue 11 24 200 - Total debtors 45 114 23 605 IV. Cash (total) 12 24 460 65 289 Total current assets 71 057 89 850 Total assets 85 000 111 257 Balance sheet at 31 December 2023 Passive Note number 31.12. 2023 EUR 31.12. 2022 EUR 1. Equity Share capital, share capital Reserves (a) other reserves 3.Retained earnings 47 965 - 47 965 1 (a) retained earnings from previous years 2 182 565 (b) retained earnings for the year under review 810 4 493 Total equity 50 957 53 024 3. Creditors II. Short-term debts 1. Amounts owed to suppliers and contractors 13 2 724 3 490 2. Other creditors 13 - 9 154 3. Taxes and social security contributions 4. Accrued liabilities 14 15 26 513 4 806 41 983 3 606 Total short-term debts 34 043 58 233 Total creditors 34 043 58 233 Total liabilities 85 000 111 257 The annexes on pages 10 to 17 are an integral part of these financial statements. Signature* Ingrīda Zemzare, Member of the Management Board Annual report prepared by: Signature* Ligita Romane Accounting Officer 9 April 2024 THE DOCUMENT IS SIGNED WITH A SECURE ELECTRONIC SIGNATURE AND CONTAINS A TIME STAMP Annex to the Financial Statements ms 1. Significant accounting principles Reporting principles The Annual Report has been prepared in accordance with the Accounting Law, the Law on Annual Reports and Consolidated Annual Reports and the requirements of the Cabinet of Ministers Regulation No.775 "On the Application of the Law on Annual Reports and Consolidated Annual Reports". As at 31 December 2023, the Company qualifies as a micro-entity . The annual report uses euro (EUR) as the measure of value and rounds figures to whole numbers (EUR). The income statement is presented in a vertical format, with expenditure classified by function. Accounting principles applied . assumed that the Company will continue to operate; The accounting policies and valuation techniques used are the same as those used in the previous year ; items in the financial statements have been recognised and measured using the prudent person approach, subject to the following conditions: the financial statements include only the profit up to the balance sheet date; take into account all liabilities and the amount of risks and losses expected to be incurred during the year or previous years, even if they became known between the balance sheet date and the date on which the annual report is signed by the Company's governing body; all impairment and depreciation amounts are calculated and taken into account, regardless of whether the reporting year ends with a profit or loss; amounts are presented in the balance sheet and income statement on an accrual basis, i.e. income and expenses are shown at the time they are incurred rather than when cash is received or spent. Income and expenditure relating to the year is shown irrespective of the date of receipt of payment or invoice; costs are matched to revenue in the respective accounting periods; asset and liability items are valued separately in the balance sheet ; the amounts in the balance sheet and income statement are based on the substance and substance of the economic transactions, not just the legal form ; items on the balance sheet and income statement are measured at acquisition cost or production cost. Acquisition cost is the purchase price of a good or service (less any discounts received) plus any additional costs associated with the purchase. Cost of production is the cost of raw materials, basic and consumable supplies and other costs directly attributable to the production of the item. Parts of the costs indirectly related to the production of the item may also be included in the cost of production, provided that these costs are attributable to the same period. Reporting period The reference period is the 12 months from 1 January 2023 to 31 December 2023 . Monetary unit and transactions in foreign currencies The figures in these financial statements are expressed in the official currency of Latvia, the euro ( EUR). Gains or losses arising from fluctuations in foreign exchange rates are recognised in the income statement for the period . Related parties Related parties are defined as members of the Company, the Management Board, close relatives of the Management Board and Companies in which they have significant influence or control. Intangible investments and fixed assets Property, plant and equipment and intangible investments are stated at cost less depreciation. Acquired assets are recognised as property, plant and equipment if their value exceeds EUR 400 . Purchased assets below EUR 400 are recorded as inventories of minor value. Depreciation is calculated over the useful life of the asset using the straight-line method, using the following depreciation rates: Intangible investments: Licences 35% Fixed assets : Office equipment 35% Computer equipment 35% Other fixed assets 20% Stock valuation Inventories are valued at the lower of net realisable value. Accounting for debtors Receivables are presented net of any specific allowance for doubtful and bad debts in the balance sheet. Where there is doubt as to the recoverability of a receivable recognised in the current or prior financial year, an allowance for doubtful debts is made in the current financial year for the amount of the doubt, with a corresponding charge to the income statement. A debt is considered doubtful if, for example, the debtor is in financial difficulty and has been declared insolvent by a court order, if the debt is not paid within the prescribed period and after a reminder, if the debtor has disputed the right to recover the debt, or in other cases. Benefits Cash and cash equivalents are cash at banks - the State Treasury and A/S Swedbank. Accounts payable The specific amounts of the liabilities are shown in the balance sheet under long-term creditors and short-term creditors, depending on the maturity of the debt. Non-current creditors include amounts falling due more than 12 months after the end of the reporting year and incurred to finance long-term investments and working capital, which are not included in current creditors. Current creditors include amounts payable within the next 12 months after the end of the reporting year and other liabilities arising in the normal course of the Company's business. Where liabilities are not shown as due for payment, they are shown under short-term credits . Accrued liabilities Accrued liabilities are clearly known amounts due to suppliers and contractors for goods or services received during the reporting year for which, due to the terms of the supply, purchase or enterprise agreement or for other reasons, the appropriate supporting document (invoice) has not yet been received for payment at the balance sheet date. These amounts are calculated on the basis of the contractual price and the evidence of actual receipt of the goods or services. Accrued liability for untaken leave The estimated liability to employees for untaken leave days accrued during the year is recognised in the Company's accounts under the balance sheet caption ' Accrued liabilities ' . Revenue recognition principles The Company's revenue is its net turnover and other operating income. Net turnover is the revenue from the sale of products and goods and the provision of services, less trade discounts and other allowances, value added tax and other taxes directly attributable to turnover. Other operating revenue is other revenue connected with or arising out of the business. Revenue is recognised when the relevant revenue recognition rules are met. Revenue is recognised on an accrual basis. Corporation tax Corporation tax is the tax charged in the period . Corporate income tax is recognised in the income statement. The tax for the period has been calculated by applying the requirements of the Corporation Tax Law to taxable income and the statutory tax rate. Fair value Fair value reflects the amount at which an asset could be realised or a liability settled in normal market conditions. Application of estimates The preparation of financial statements requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period and the date of the financial statements . Management has made an assessment of profit or loss and believes that the financial statements present fairly the financial position based on all currently available information. Information that the Company's assets are pledged or otherwise encumbered The Company's assets are not pledged or otherwise encumbered. Guarantees and warranties The Company has no guarantees or warranties to other parties. Credentials The Company has no letters of credit. Details of possible liabilities The Company is not a defendant in any litigation and the financial statements do not include any provision for liabilities that may arise. Commitments for pensions The Company has no liability for pensions. Information about possible liabilities that could arise from a specific past event The Company has no liabilities that could arise from a specific past event. Commitments under leases and rental agreements material to the Company's operations The Company has no leases or tenancy agreements material to its operations. Information on operating leases The Company does not provide operating lease services and has no operating lease agreements. Information on finance leases The Company does not provide finance lease services and has no finance lease agreements in place. Information on leaseback The Company does not provide leaseback services and does not have any leaseback agreements in place. Liabilities to related and associated undertakings The Company has no liabilities to the parent company and the Company has no associates. Information about adverse or favourable events that do not relate to the year but may materially affect the assessment of users of the annual report of the entity's assets, liabilities, financial position, profit or loss, cash flows or future decision-making. The Company is not aware of any adverse or favourable events that do not relate to the year but may materially affect the assessment of users of the annual report of the Company's assets, liabilities, financial position, profit or loss and cash flows or future decision-making. Explanation of a departure from any of the principles or rules for the recognition, measurement and disclosure of items in the statutory financial statements The Company has not departed from any of the principles or rules of statutory recognition, measurement and disclosure of financial statement items. Explanation if annual accounts data are not comparable or adjustments have been made to previous years. The data in the annual accounts are comparable with each other and no adjustments have been made for prior years. 2. Note to income statement items 1. Net turnover Turnover is the revenue generated during the year from the company's core business of providing concerts , excluding value added tax. 2023 2022 EUR EUR Revenue from the provision of services (Latvia) 81 170 69 736 Revenue from cooperation partners in other countries 77 573 599 843 Total 158 743 669 579 2. cost of production of goods sold, cost of goods sold or cost of services rendered (concert costs) 2023 2022 EUR EUR Salaries of orchestral musicians , provisions for untaken holidays 456 781 501 677 Musician-performer fees 21 458 152 028 Compulsory national social security costs 107 717 118 445 Business trips, transport of musical instruments 75 363 257 455 Other costs of concert activities (rent of premises, rent of music and instruments , Covid-19 tests, copyrights, etc.) 18 780 139 621 Depreciation of fixed assets 5 636 666 6 6 650 Communication services 372 377 Total 686 107 1 176 253 3.Administration costs 2023 2022 EUR EUR Communication costs 1 852 1 692 Office maintenance 9 322 9 637 Banking 1 512 731 Cost of the audit of the annual accounts 1 996 1 815 Administrative remuneration , provision for untaken leave 126 264 109 399 Compulsory national social security costs 27 731 24 013 Depreciation of fixed assets, write-down of current assets 3 369 1 134 Transport expenses 8 894 8 535 Other administration costs 8 726 27 327 Total 189 666 184 283 4.Other operating revenue 2023 2022 EUR EUR Ministry of Culture grants 635 908 619 357 State Culture Capital Foundation project funding 3 248 1 900 Funded by the Ministry of Culture of the Republic of Estonia 25 000 25 000 Funded by the Ministry of Culture of the Republic of Lithuania 50 000 50 000 Other farm operating revenue 1 481 176 GIDON KREMER FOUNDATION donations 20 000 - GIDON KREMER FOUNDATION support 24 200 - Total 759 837 696 433 5 . Other operating costs 2023 2022 EUR EUR Fines paid 1 283 123 CD recording costs 39 700 0 CDs transferred to a partner 295 819 Currency fluctuations - 41 Total 41 278 983 3 . Appendices to the balance sheet items 6. Long-term investments All fixed assets are stated at cost less depreciation in the balance sheet. Depreciation is calculated using the straight-line method . Statement of movements in long-term investments Intangible investments Other fixed assets Total EUR EUR EUR Initial value 31.12. 2022 . 8 733 40 903 49 636 Purchased in 2023 - 1 541 1 541 Off in 2023 - 882 882 Initial value 31.12. 2023 . 8 733 41 562 50 295 Accumulated depreciation as at 31.12. 2022 . 1 900 26 329 28 229 Estimated depreciation in 2023 2 800 6 205 9 005 Depreciation excluded in 2023 - 882 882 Accumulated depreciation as at 31.12. 2023 . 4 700 31 652 36 352 Carrying amount at 31.12. 2022 . 6 833 14 574 21 407 Book value as at 31.12. 2023 . 4 033 9 910 13 943 7 . Stocks 31.12. 2023 . 31.12. 2022 . EUR EUR Finished products, presentation materials 1 483 956 Total 1 483 956 8 . Trade debtors 31.12. 2023 . 31.12. 2022 . EUR EUR Settlements with customers 2 730 - Total 2 730 - There are no overdue debtors in the accounts receivable and the amount is recoverable. 9 . Other debtors 31.12. 2023 . 31.12. 2022 . EUR EUR Other debtors - settlements with customers, advances 936 640 Contributions not subject to tax* 15 327 22 061 Total 16 263 22 701 * Unallocated tax contributions are taxes paid during the reporting period that are not attributed to the payment of taxes as at the balance sheet date. 10 . Deferred charges 31.12. 2023 . 31.12. 2022 . EUR EUR Software licence for 2024 172 102 www. Subscription fee for 2024 60 26 Note rental expenses 776 776 Instrument rental expenditure for 2024 179 - AVIO and bus tickets , hotel for 2024 734 - Total 1 921 904 11.Accrued revenue 31.12.2023. 31.12.2022. EUR EUR Donation for the production of CDs* 24 200 - Total 24 200 - *The donation received in 2024 is included in revenue in the reporting period for the purpose of matching revenue with the costs for which the donation was received. 12 . Cash 31.12. 2023 . 31.12. 2022 . EUR EUR Cash at credit institutions (Latvia) 24 460 65 289 Total 24 460 65 289 The Company's cash is not held on deposit or in foreign banks. 13 . Amounts owed to suppliers and contractors 31.12. 2023 . 31.12. 2022 . EUR EUR Due to suppliers 2 724 3 490 Total 2 724 3 490 14 . Other creditors 31.12. 2023 . 31.12. 2022 . EUR EUR Wages for December - 9 154 Total - 9 154 15 . Taxes and social security contributions* 31.12. 2023 . 31.12. 2022 . EUR EUR Personal income tax 10 031 11 327 Compulsory national social security costs 16 472 22 062 Value added tax - 8 584 Risk levy 10 10 Total 26 513 41 983 * See also note 9 to these financial statements. 16 . Accrued liabilities 31.12. 2023 . 31.12. 2022 . EUR EUR Annual report audit services 1 996 1 815 Provision for untaken leave 2 810 1 791 Total 4 806 3 606 4. General information 17. Number of persons employed by the company 2023 2022 Average number of persons employed by the Company per year 29 29 18. Information on the remuneration of the members of the Supervisory Board and the Executive Board The remuneration paid to a member of the Board of Directors is €49 495 , and the SGEI contribution is €10 280 . 19 Financial risk management The Company's most significant financial instruments are trade receivables, other receivables and cash in current accounts. The main purpose of these financial instruments is to finance the Company's operations. The Company is also exposed to a number of other financial instruments, trade and other payables, which arise directly from its business activities. The financial risks associated with the Company's financial instruments are mainly liquidity risk and credit risk. The Company's management seeks to minimise the negative impact of potential financial risks on the Company's financial position. The Company does not use derivative financial instruments for financial risk management. Credit risk The Company is exposed to credit risk related to its trade receivables and cash. The Company monitors its credit risk by continuously assessing the repayment history of its customers and by setting credit terms for each customer individually. In addition, the Company continuously monitors its receivable balances to minimise the possibility of uncollectible receivables. Liquidity risk The Company manages its liquidity risk by maintaining adequate cash balances in current accounts. 20 . Significant events during and after the balance sheet date and their impact on the Company's ability to continue as a going concern The management of the company employed all the company's staff throughout 2023 , also taking advantage of the positive experience, and continued to develop the individual orchestral groups as independent chamber ensembles: the sextet Kremerata Lithuanica and the nonet Kremerata Let t onica , for which concerts and recordings were provided both in Latvia and abroad. We continue to monitor the situation closely and will take the necessary measures to mitigate the impact of new events and circumstances , in particular those related to the volatile situation in Europe due to the Russian war in Ukraine, which may lead us to revise certain concert arrangements, programmes and the composition of the guest line-up. The Company has also given the opportunity to musicians from the Ukrainian Academy of Music to perform on its tours and has collaborated with the Ukrainian Aid Society in giving concerts to Ukrainian refugees and supporting their integration. 21 . Continuance of the Company The financial statements have been prepared on the going concern basis. Profit for the period has been achieved, which allows for positive cash flow and operating results to be projected for the next reporting period. 22 . Events after the balance sheet date There are no events that occurred between the last day of the reporting year and the date of signing the financial statements that require adjustments to these financial statements or that need to be explained in these financial statements. Member of the Management Board Signature* Ingrīda Zemzare Annual report prepared by : Signature* Ligita Romāne Chief Accountant 9 April 2024 THE DOCUMENT IS SIGNED WITH A SECURE ELECTRONIC SIGNATURE AND CONTAINS A TIME STAMP Invoice Nr. 10 17.05.2024 Saņēmējs VSIA KREMERATA BALTICA Reģistrācijas Nr. LV40003487546 Adrese: Rīga,Riharda .Vāgnera iela 8 -6 ,LV-1050 Banka: A/S SWEDBANKA Kods: HABALV22 Konts: LV79HABA0551054737344 Maksātājs MINISTRY OF CULTURE OF ESTONIA Reģistrācijas Nr. Adrese: Suur-Karja 23, Tallin Banka: Konts: Summa EUR The year 2024 for Estonia musicians part in 25 000.00 KREMERATA BALTICA Summa vārdiem Twenty five thousand , 00 EUR Director I.Zemzare Finansist L. Romāne