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Analysis of other reserves 2010 Movement 2009
Statutory reserves 32,372,414 4,827,501 27,544,913
Other reserves 142,196 134,663 7,533
Totals 32,514,610 4,962,164 27,552,446
5.18 Retained earnings
In accordance with Greek Corporate Law, companies are required each year, to declare dividends of at least 35% of after
tax profits, after allowing for the legal reserve.
In addition, the prevailing bank loan agreements impose specific conditions for the permitted dividend distribution,
which have been fulfilled since 2003 when the Company was in the financial position to distribute dividends.
5.19 Bank loans 2010 2009
Borrowings are analysed as follows:
677,727,647 729,043,391
Analysis of loans
Long term loans 677,727,647 729,043,391
EIB loan
Total long term loans
Short term loans 51,315,744 48,322,245
3,784,348 6,264,665
EIB loan
Accrued interest & related expenses 55,100,092 54,586,910
732,827,739 783,630,301
Total short term loans
Total bank loans
The amortised cost of the long term financial liabilities at fixed interest rates (i.e. EIB Loan) is determined using the
effective interest rate method, by discounting the future contractual cash flows with the effective interest rate applied
to those liabilities. The fair value of the financial liabilities at fixed interest rates is determined by discounting the future
contractual cash flows with the current mid-swap interest rate for the average loan life period of such liabilities.
Fair value of the borrowings 2010 2009
Carrying amount 729,043,391 777,365,635
Fair value 843,832,444 915,730,679
Excess of fair value over carrying amount (114,789,053) (138,365,044)
All borrowings are denominated in the functional currency.
5.20 Employee retirement benefits
In accordance with Greek labour law, employees are entitled to compensation payments in the event of dismissal or
retirement with the amount of payment varying depending on the employee’s compensation, length of service and
manner of termination (dismissal or retirement). Employees who resign or are dismissed with cause are not entitled to
termination payments. The amount payable in the event of retirement is equal to 40% of the amount which would be
payable upon dismissal without cause.
The provision for employees’ retirement benefits is reflected in the attached balance sheet in accordance with IAS 19 and
is calculated, as at the balance sheet date (31 December 2010), based on an independent actuarial study performed by
Hewitt. The net charge to the income statement of € 1.948.079, minus the benefits paid directly of €586.049, is reflected
under the personnel expenses.
The results of any valuation depend upon the assumptions employed. Thus, as at 31/12/2010:
Financial Statements as at 31 December 2010 (Amounts in Euros unless otherwise stated) Page 40 of 51
Statutory reserves 32,372,414 4,827,501 27,544,913
Other reserves 142,196 134,663 7,533
Totals 32,514,610 4,962,164 27,552,446
5.18 Retained earnings
In accordance with Greek Corporate Law, companies are required each year, to declare dividends of at least 35% of after
tax profits, after allowing for the legal reserve.
In addition, the prevailing bank loan agreements impose specific conditions for the permitted dividend distribution,
which have been fulfilled since 2003 when the Company was in the financial position to distribute dividends.
5.19 Bank loans 2010 2009
Borrowings are analysed as follows:
677,727,647 729,043,391
Analysis of loans
Long term loans 677,727,647 729,043,391
EIB loan
Total long term loans
Short term loans 51,315,744 48,322,245
3,784,348 6,264,665
EIB loan
Accrued interest & related expenses 55,100,092 54,586,910
732,827,739 783,630,301
Total short term loans
Total bank loans
The amortised cost of the long term financial liabilities at fixed interest rates (i.e. EIB Loan) is determined using the
effective interest rate method, by discounting the future contractual cash flows with the effective interest rate applied
to those liabilities. The fair value of the financial liabilities at fixed interest rates is determined by discounting the future
contractual cash flows with the current mid-swap interest rate for the average loan life period of such liabilities.
Fair value of the borrowings 2010 2009
Carrying amount 729,043,391 777,365,635
Fair value 843,832,444 915,730,679
Excess of fair value over carrying amount (114,789,053) (138,365,044)
All borrowings are denominated in the functional currency.
5.20 Employee retirement benefits
In accordance with Greek labour law, employees are entitled to compensation payments in the event of dismissal or
retirement with the amount of payment varying depending on the employee’s compensation, length of service and
manner of termination (dismissal or retirement). Employees who resign or are dismissed with cause are not entitled to
termination payments. The amount payable in the event of retirement is equal to 40% of the amount which would be
payable upon dismissal without cause.
The provision for employees’ retirement benefits is reflected in the attached balance sheet in accordance with IAS 19 and
is calculated, as at the balance sheet date (31 December 2010), based on an independent actuarial study performed by
Hewitt. The net charge to the income statement of € 1.948.079, minus the benefits paid directly of €586.049, is reflected
under the personnel expenses.
The results of any valuation depend upon the assumptions employed. Thus, as at 31/12/2010:
Financial Statements as at 31 December 2010 (Amounts in Euros unless otherwise stated) Page 40 of 51
