BANJA LUKA (Bosnia and Herzegovina), October 23 (SeeNews) – An audit of Bosnian coal mining and energy company RiTE Gacko [BANJ:RITE-R-A] has revealed that its short-term liabilities exceeded its floating assets by 32.1 million marka ($19.2 million/16.4 million euro) at the end of 2016, the auditor said.
RiTE Gacko's ability to continue operating rests on the financial support of its parent company, the Serb Republic's power utility Elektroprivreda RS (ERS), auditor Deloitte Banja Luka said in the company's audited 2016 financial statement filed to the Banja Luka Stock Exchange on Friday.
At the end of 2016, RiTE Gacko's short-term liabilities totalled 67.1 million marka, while its floating assets stood at 35 million marka.
"The company's management believes it will overcome current difficulties with the help of its parent company," Deloitte noted.
It added that RiTE Gacko finished 2016 with a net loss of 4.1 million marka, which took its accumulated loss to 27.8 million marka at the end of December.
The company employed 1,794 at the end of the review period, up 70 on the year.
RiTE Gacko is located in the southern part of the Serb Republic, one of Bosnia's two entities. The other is the Federation.
The Gacko power plant is one of two coal-fired plants in the Serb Republic. The other plant is part of the Ugljevik coal mining and power generation company located in northeastern Bosnia.
Earlier this year Gacko said it produced 1,511.8 GWh of electricity in 2016, or 98.8% of plan.
(1 euro= 1.95583 marka)