these assets recorded in the
separate financial statements.
Due to the above factors, we
considered impairment of
intangible assets and investments
in subsidiaries to be a key audit
matter.
performing independent sensitivity analysis,
including assessing the effect of a reasonably
possible change in the key assumptions;
considered whether the Company’s disclosures
regarding the sensitivity of the outcome of the
impairment testing to changes in key assumptions
complete and accurately reflected the estimation
uncertainty in the valuation in line with the
applicable requirements of the relevant financial
reporting standards.
Going concern
Reference to the separate financial statements: Note 2 (b) “Use of estimates and
judgements” and Note 28 “Going concern of the Company” (Notes to the separate financial
statements).
Key audit matter Our response
The Company’s separate financial
statements are prepared on a going
concern basis.
The Company’s financial
performance in the reporting year
was a loss of EUR 438 447 (2021:
profit of EUR 2 141 469). At the end
of the year, the Company’s current
liabilities exceeded its current assets
by EUR 11 559 496 (31.12.2021:
current liabilities exceeded current
assets by EUR 8 100 113), as a result
of significant borrowings approaching
maturity, which may cast significant
doubts on the Company’s ability to
continue as a going concern.
The Company’s going concern
assessment was based on cash flows
forecast, which, in the Management
Board’s view, supports the assertion
that the Company will have sufficient
resources to continue for a period of
at least 12 months from the reporting
date. The preparation of these
forecasts incorporated a number of
assumptions and significant
judgment, including those related to
the Company’s and its subsidiaries’
future revenue growth and cost
optimization forecasts. As part of the
assessment, the Company also
considered a number of actions
Our audit procedures included, among others:
understanding the Company’s business
planning process, including the assessment of
its ability to continue as a going concern, and
the preparation and validation of cash flow
forecasts used in the assessment, and also
testing the design and implementation of the
Company’s risk assessment and monitoring
controls;
inspecting the Management Board’s going
concern assessment, including their evaluation
of the business/operating and liquidity risks,
and plans for further actions in response to the
risks identified. As part of the procedure, we
also made corroborating inquiries of the
Company’s Management Board and CFO;
independently, with the assistance of our
valuation specialists, where applicable,
evaluating the reasonableness and feasibility
of the plans for future actions, by reference to
the preceding procedure as well as by
performing the following:
challenging the key assumptions used in the
determination of the prospective financial
information. This primarily included challenging
the forecast amounts of sales and cash
inflows, forecast amounts of expenses and
cash outflows, capital expenditure and the
timing of settlements of the Company’s
liabilities, based on our understanding of the