Analyze the liquidity and solvency (at least 4 ratios) of Tet in 2014 and provide your conclusions.
FYI - I couldn't upload the whole pdf, if you can search "Lattelecom Group Consolidated Annual Report for the year ended 31 December 2014" you can find the document.
The notes on pages from 19 to 48 form an integral part of these consolidated financial statements. CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2014 Notes 31 December 31 December 31 December \begin{tabular}{rrr} 2014 & 2013 & 2012 \\ EUR'000 & EUR'000 & EUR'000 \\ \hline \end{tabular} ASSETS Non-current assets Intangible assets Property, plant and equipment Investments in associated companies Long-term receivables Deferred income tax assets \begin{tabular}{crrr} 8 & 7,188 & 7,518 & 9,113 \\ 9 & 212,393 & 225,709 & 234,622 \\ 10 & 29,849 & 30,053 & 33,123 \\ 11 & 48 & 1,261 & 2,422 \\ 6 & 635 & 1,236 & 751 \\ \hline & 250,113 & 265,777 & 280,031 \end{tabular} Current assets Assets classified as held for sale Inventories Trade and other receivables Prepaid expenses and prepayments Corporate income tax receivable Cash and cash equivalents \begin{tabular}{crrr} 9 & 989 & 1,288 & 915 \\ 12 & 4,400 & 6,723 & 5,053 \\ 13 & 16,300 & 19,374 & 20,560 \\ & 1,699 & 1,680 & 2,615 \\ & 222 & 1,242 & 37 \\ 14 & 49,901 & 23,617 & 12,605 \\ \hline & 73,511 & 53,924 & 41,785 \end{tabular} Total assets 323,624319,701321,816 EQUITY AND LIABILITIES Capital and reserves \begin{tabular}{lrrr} Share capital & 207,852 & 207,852 & 207,852 \\ Other reserves & (38) & & 3 \\ Retained earnings & 52,719 & 52,853 & 54,416 \\ \hline & 260,533 & 260,705 & 262,271 \end{tabular} Non-current liabilities Trade and other payables Deferred income tax liabilities Deferred income Current liabilities Trade and other payables Short term borrowings Deferred income and customer prepayments Corporate income tax liabilities Provisions \begin{tabular}{rrrr} 16 & 36,437 & 36,696 & 34,954 \\ 17 & 5 & 4 & 3 \\ 18 & 6,223 & 4,947 & 5,982 \\ & 1,126 & 652 & 139 \\ 19 & 7,840 & 6,205 & 6,263 \\ \hline & 51,631 & 48,504 & 47,341 \end{tabular} Total equity and liabilities 323,624319,701321,816 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR 2014 CONSOLIDATED STATEMENT OF CASH FLOWS FOR 2014 NOTE 1 NOTE 3 EMPLOYEE COSTS NOTE 4 TUED nDEDATINIR EYDENCEC NOTE 5 FINANCE INCOME 20142013 The amount of EUR 57 thousand (EUR 24 thousand in 2013) comprises interest income from short-term cash deposits. INCOME TAX In 2014 and in 2013 Lattelecom applied the officially enacted tax rate of 15% upon calculation of corporate income tax for the current year. For accruals which do not have appropriate supporting documents at the time of submission of income tax declaration, the Group adjusts the taxable amount accordingly. Adjustments are made to balances of accrual accounts reducing them by amounts for which supporting justification documents were received. Reconciliation of accounting and taxable profit and analysis of the tax charge: The tax rate of 15% was applied to all temporary differences in the calculation of deferred income tax as at 31 December 2014 and as at 31 December 2013. Movement in the deferred income tax account is as follows: Deferred income tax assets and liabilities are off-set when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred income taxes relate to the same taxable entity and the same fiscal authority. The following amounts, determined after offsetting, are shown on the statement of financial position: 2014 2013 INCOME TAX (continued) Deferred tax amounts shown in the statement of financial position relate to temporary differences arising from the tax bases and carrying amounts of assets and liabilities as follows: NOTE 7 EARNINGS/DIVIDENDS PER SHARE The share capital according to the Charter of Incorporation of SIA Lattelecom currently amounts to 146,079,000 shares of LVL 1 (EUR 1.42) each. All shares have been fully paid. The holders of ordinary shares are entitled to receive dividends as declared; they are also entitled to one vote per share as well as the residual capital. The Parent Company has no potential dilutive ordinary shares and therefore diluted earnings per share are the same as the basic earnings per share. The dividends paid in 2014 and 2013 were EUR 30.2 million (EUR 0.21 per share) and EUR 29.7 million (EUR 0.20 per share) respectively. NOTE 8 implementation of software and are capitalised based on the hours spent on those projects. The total amount of expenses capitalised to intangible assets was EUR 1.25 million in 2014 (EUR 0.970 million in 2013) (see Notes 3, 4) The notes on pages from 19 to 48 form an integral part of these consolidated financial statements. CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2014 Notes 31 December 31 December 31 December \begin{tabular}{rrr} 2014 & 2013 & 2012 \\ EUR'000 & EUR'000 & EUR'000 \\ \hline \end{tabular} ASSETS Non-current assets Intangible assets Property, plant and equipment Investments in associated companies Long-term receivables Deferred income tax assets \begin{tabular}{crrr} 8 & 7,188 & 7,518 & 9,113 \\ 9 & 212,393 & 225,709 & 234,622 \\ 10 & 29,849 & 30,053 & 33,123 \\ 11 & 48 & 1,261 & 2,422 \\ 6 & 635 & 1,236 & 751 \\ \hline & 250,113 & 265,777 & 280,031 \end{tabular} Current assets Assets classified as held for sale Inventories Trade and other receivables Prepaid expenses and prepayments Corporate income tax receivable Cash and cash equivalents \begin{tabular}{crrr} 9 & 989 & 1,288 & 915 \\ 12 & 4,400 & 6,723 & 5,053 \\ 13 & 16,300 & 19,374 & 20,560 \\ & 1,699 & 1,680 & 2,615 \\ & 222 & 1,242 & 37 \\ 14 & 49,901 & 23,617 & 12,605 \\ \hline & 73,511 & 53,924 & 41,785 \end{tabular} Total assets 323,624319,701321,816 EQUITY AND LIABILITIES Capital and reserves \begin{tabular}{lrrr} Share capital & 207,852 & 207,852 & 207,852 \\ Other reserves & (38) & & 3 \\ Retained earnings & 52,719 & 52,853 & 54,416 \\ \hline & 260,533 & 260,705 & 262,271 \end{tabular} Non-current liabilities Trade and other payables Deferred income tax liabilities Deferred income Current liabilities Trade and other payables Short term borrowings Deferred income and customer prepayments Corporate income tax liabilities Provisions \begin{tabular}{rrrr} 16 & 36,437 & 36,696 & 34,954 \\ 17 & 5 & 4 & 3 \\ 18 & 6,223 & 4,947 & 5,982 \\ & 1,126 & 652 & 139 \\ 19 & 7,840 & 6,205 & 6,263 \\ \hline & 51,631 & 48,504 & 47,341 \end{tabular} Total equity and liabilities 323,624319,701321,816 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR 2014 CONSOLIDATED STATEMENT OF CASH FLOWS FOR 2014 NOTE 1 NOTE 3 EMPLOYEE COSTS NOTE 4 TUED nDEDATINIR EYDENCEC NOTE 5 FINANCE INCOME 20142013 The amount of EUR 57 thousand (EUR 24 thousand in 2013) comprises interest income from short-term cash deposits. INCOME TAX In 2014 and in 2013 Lattelecom applied the officially enacted tax rate of 15% upon calculation of corporate income tax for the current year. For accruals which do not have appropriate supporting documents at the time of submission of income tax declaration, the Group adjusts the taxable amount accordingly. Adjustments are made to balances of accrual accounts reducing them by amounts for which supporting justification documents were received. Reconciliation of accounting and taxable profit and analysis of the tax charge: The tax rate of 15% was applied to all temporary differences in the calculation of deferred income tax as at 31 December 2014 and as at 31 December 2013. Movement in the deferred income tax account is as follows: Deferred income tax assets and liabilities are off-set when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred income taxes relate to the same taxable entity and the same fiscal authority. The following amounts, determined after offsetting, are shown on the statement of financial position: 2014 2013 INCOME TAX (continued) Deferred tax amounts shown in the statement of financial position relate to temporary differences arising from the tax bases and carrying amounts of assets and liabilities as follows: NOTE 7 EARNINGS/DIVIDENDS PER SHARE The share capital according to the Charter of Incorporation of SIA Lattelecom currently amounts to 146,079,000 shares of LVL 1 (EUR 1.42) each. All shares have been fully paid. The holders of ordinary shares are entitled to receive dividends as declared; they are also entitled to one vote per share as well as the residual capital. The Parent Company has no potential dilutive ordinary shares and therefore diluted earnings per share are the same as the basic earnings per share. The dividends paid in 2014 and 2013 were EUR 30.2 million (EUR 0.21 per share) and EUR 29.7 million (EUR 0.20 per share) respectively. NOTE 8 implementation of software and are capitalised based on the hours spent on those projects. The total amount of expenses capitalised to intangible assets was EUR 1.25 million in 2014 (EUR 0.970 million in 2013) (see Notes 3, 4)
