Page 102 - 2board23full
P. 102
FINANCIAL STATEMENTS
At the balance sheet date the Company has outstanding commitments under non-cancellable operating leases, which
are presented in note 4.30.
The Company as a lessor
Refer to note 4.1.b
4.30 Commitments
As at 31 December 2009 the Company has the following significant commitments:
a) Capital expenditure commitments amounting to approximately €3,5 million (2008: €6,6 million)
b) Operating service commitments, which are estimated to be approximately to €117,0 million (2008: €77,0 million)
mainly related to security, maintenance and cleaning services, to be settled as follows:
Analysis of operating service commitments 2009 2008
Within 1 year 36.448.578 34.600.000
Between 1 and 5 years 71.704.887 32.500.000
More than 5 years 10.000.000
8.874.076
Total operating service commitments 77.100.000
117.027.541
c) Operating lease commitments are analysed as follows: 2009 2008
203.181 235.261
Analysis of operating lease commitments 365.110 220.941
Within 1 year
Between 1 and 5 years 568.291 456.202
Total operating lease commitments
4.31 Contingent liabilities
The Company has contingent liabilities comprising the following:
a) The Company has not yet been audited by the Tax Authority for the fiscal years 2004 through to 2009. Consequently,
the tax liability with respect to the fiscal years 2004-2009 has not been finalized yet. However, management does not
expect any additional income taxes to be assessed in view of the existence of significant assessable tax losses available
for carried forward (Refer to note 4.25).
b) During 2005 a tax audit was performed by the Tax Authority for the fiscal years 1998-2003. Income tax and all other
indirect taxes, except VAT, were levied and settled in 2006. With respect to VAT, the Tax Authority questioned the right
of the Company to set off the total VAT of all goods purchased and services rendered, as provided by article 26 paragraph
7 of law 2093/1992, in combination with articles 25.1.1 & 25.1.2 (g) of law 2338/1995 (the Airport Development
Agreement). The Tax Authority disputed the above right of the Company, and proceeded to impose VAT –including
penalties- for the years 1998-2003 of €1,9m, which corresponds to VAT of non-exempt expenses, such as, entertainment
and hospitality expenses. The Company appealed to the Athens Administrative Court of First Instance on 7 February
2006, against the decision of the Tax Authority to impose VAT on such expenses. The case has not been scheduled to
be heard so far.
In addition, the Tax Authority issued a provisional VAT audit report, for the years 2001-2003, expressing reservation with
respect to the right of the Company to set off VAT, which corresponds to activities not subjected to VAT i.e. property
leases, without imposing any tax.
Financial Statements as at 31 December 2009 (Amounts in Euros unless otherwise stated) PAGE 65 OF 69
At the balance sheet date the Company has outstanding commitments under non-cancellable operating leases, which
are presented in note 4.30.
The Company as a lessor
Refer to note 4.1.b
4.30 Commitments
As at 31 December 2009 the Company has the following significant commitments:
a) Capital expenditure commitments amounting to approximately €3,5 million (2008: €6,6 million)
b) Operating service commitments, which are estimated to be approximately to €117,0 million (2008: €77,0 million)
mainly related to security, maintenance and cleaning services, to be settled as follows:
Analysis of operating service commitments 2009 2008
Within 1 year 36.448.578 34.600.000
Between 1 and 5 years 71.704.887 32.500.000
More than 5 years 10.000.000
8.874.076
Total operating service commitments 77.100.000
117.027.541
c) Operating lease commitments are analysed as follows: 2009 2008
203.181 235.261
Analysis of operating lease commitments 365.110 220.941
Within 1 year
Between 1 and 5 years 568.291 456.202
Total operating lease commitments
4.31 Contingent liabilities
The Company has contingent liabilities comprising the following:
a) The Company has not yet been audited by the Tax Authority for the fiscal years 2004 through to 2009. Consequently,
the tax liability with respect to the fiscal years 2004-2009 has not been finalized yet. However, management does not
expect any additional income taxes to be assessed in view of the existence of significant assessable tax losses available
for carried forward (Refer to note 4.25).
b) During 2005 a tax audit was performed by the Tax Authority for the fiscal years 1998-2003. Income tax and all other
indirect taxes, except VAT, were levied and settled in 2006. With respect to VAT, the Tax Authority questioned the right
of the Company to set off the total VAT of all goods purchased and services rendered, as provided by article 26 paragraph
7 of law 2093/1992, in combination with articles 25.1.1 & 25.1.2 (g) of law 2338/1995 (the Airport Development
Agreement). The Tax Authority disputed the above right of the Company, and proceeded to impose VAT –including
penalties- for the years 1998-2003 of €1,9m, which corresponds to VAT of non-exempt expenses, such as, entertainment
and hospitality expenses. The Company appealed to the Athens Administrative Court of First Instance on 7 February
2006, against the decision of the Tax Authority to impose VAT on such expenses. The case has not been scheduled to
be heard so far.
In addition, the Tax Authority issued a provisional VAT audit report, for the years 2001-2003, expressing reservation with
respect to the right of the Company to set off VAT, which corresponds to activities not subjected to VAT i.e. property
leases, without imposing any tax.
Financial Statements as at 31 December 2009 (Amounts in Euros unless otherwise stated) PAGE 65 OF 69
