Raport bieżący nr 18/2013
Agrowill Group, AB received the Decision of the Director of the Supervisory Authority of the Bank of Lithuania dated February 19, 2013 regarding the Inspection act No. 241-38 of Agrowill Group, AB dated November 27, 2012
The Company is obliged to notify:
-that AB Agrowill Group has been warned by the decision of the Executive Director of the Supervision Service of the Bank of Lithuania regarding the violation of Article 21(5) of the Law on Securities;
-that 2011 consolidated financial statements of AB Agrowill Group did not comply with the provisions of Article 30 and 31 of IAS 27 "Consolidated and Separate Financial Statements", Article 34 of IAS 36 "Impairment of Assets" and Article 46 of IAS 39 "Financial Instruments: Recognition and Measurement", while the financial statements of the parent company did not comply with the provisions of Article 43 of IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors" and Article 34 of IAS 36 "Impairment of Assets".
If the error of the previous period identified in 2011 financial statements of the parent company of AB Agrowill Group was correctly reflected according to the provisions of IAS, the net profit of the company for the year ending 31 December 2010 would have to be increased by LTL 2.1 million, while the net profit for 2011 would have to be reduced by the same amount.
Furthermore, if the financial standing and the financial results were correctly stated in 2011 consolidated financial statements pursuant to IAS, the book value of financial assets of the group on 31 December 2011 would have to be reduced by LTL 3.7 million, and the net profit for 2011 - by LTL 4.4 million, while other equity items would have to be increased by LTL 0.7 million as a result of the incorrect accounting of investments into securities and control swaps.
At the moment the Company is evaluating an impact of other discrepancies on the consolidated Financial statements for December 31, 2011 of the Company ant the Group.
If it will be determined that other discrepancies had a significant impact on the financial position and financial performance of the Company in 2011, the consolidated financial statements for 2011 will be regressively corrected and published together with the audited consolidated financial statements of the Company for 2012. Alongside the impact of the found discrepancies on the financial performance and financial position of the Company and the Group for December 31, 2011 will be disclosed.
The Company notes that the above mentioned discrepancies will not materially affect Company’s financial results for the year 2012 (forecasts have been disclosed as of April 30, 2012).
Domantas Savicius - CFO