Riga Stock Exchange                                                  28.04.2005



JSC “Rīgas raugs” comments on land value as shown in 2004 Annual Report



Land acquisition value was set on March 21, 2000, upon signing a purchase agreement 

about state owned land, pursuant to the approved land privatization rules. The company 

paid the last installment only on April 25, 2003. The land plot is located in the 

industrial area, and the cadastral value is LVL 78,263. “Rīgas raugs” believes the 2004 

Annual Report to comply with the law, because the balance sheet item “land, buildings 

and erections” show the acquisition value, LVL 312,700, as stipulated by Article 26 of 

the law on annual reports. Article 29 says that a company may, but not necessarily has 

to value the land according to its highest value. Land valuation exercise is also a 

certain expense, and the company is not ready to take it without a justified reason. 

KPMG audited the 2004 annual accounts, and the opinion was that the accounts present a 

true and fair view on the company’s financial position. 



Unofficial translation by RSE