Emitents | Ditton pievadķēžu rūpnīca, AS (391200LSGSVWPZW6LL87) |
Veids | Būtiski notikumi |
Valoda | EN |
Statuss | Publicēts |
Versija | |
Datums | 2012-04-29 13:57:08 |
Versijas komentārs | |
Teksts |
On 29 April 2012 the JSC AS „Ditton pievadķēžu rūpnīca”,
hereinafter – the Company, disclosed its audited annual report with
the report of the auditor SIA „Deloitte Audits Latvia”, hereinafter
– the Auditor.
In the Auditor’s report there are some judgments concerning the
Company, which in the opinion of the Council and the Management
Board are significant information for shareholders and potential
investors.
In this regards, in order to fulfil requirements of Clause 59 of
Financial Instrument Market Law, the Council and the Management
Board consider it necessary to disclose following explanations.
1. Regarding impossibility to perform a reliable and guaranteed
evaluation of effectiveness and efficiency of the Company’s
investments into markets of next periods.
In conditions when the world economy has not finished an exit from
global economic recession and according to many economic analysts
the world economy expects “the second wave” of crisis, when
problems with a default affect earlier prosperous countries, when
the issue concerning the lack of an appreciable growth of a real
sector of economy is topical, when more developed countries of the
world community are compelled to increase funds for overcoming of
the crisis phenomena (IMF, ECB), when all this occurs against the
background of high unemployment rate and a low consumption level
which has not reached the pre-crisis level, it is impossible to
make reliable and long-term forecasts of the markets for long
prospect.
In this regard the Auditor’s conclusions completely coincide with a
position of the Company which is presented in the reports of the
management and of the Council to the annual report, and also
earlier was published in annexes to quarterly reports of the
Company.
At the same time analyzing an aspect of the Company’s investments
into markets of next periods, it is necessary to recognize that
forecasts of the Company for a reasonable prospect completely came
true. This is testified by the results of the Company’s activity in
2011, and also that the Company maintained and strengthened its
position in these markets.
Certainly, risks of commercial activity are topical always.
Certainly, the Company can not restrict the activity only to Latvia
and objective circumstances demand its presence on other markets
and with different level of risks. Presence of risks doesn’t mean
that the Company should stop its economic activity till the moment
when there will be certain ideal markets for the
Company created, with absolute guarantees and protection. There
will be never such circumstances on the
market.
The Company is compelled to work and will work on all markets,
considering, forecasting and managing risks as much as possible. In
this regard the Company is solidary with the Auditor that these
risks and conditions of the market are dynamic, they can’t be
forecasted for a long term and in definite frames, but it is
necessary to analyze constantly this dynamics and to correct policy
of the Company in due time, including by using the Company’s
investments into the markets of next periods.
The Company conducts such activities all the time.
2. As to the provisions for the Company’s debt
liabilities with a high risk. According to rules of law of the
Republic of Latvia and the European Union, the decision on
provisions is within the competence of a capital company. Judgments
of expert institutions are recommendations to the Company, as well
as an emphasis of an attention on those circumstances which are
subject to a systematic control. Of course, the Company is grateful
for such expert recommendations and emphasis, and they are taken
into consideration.
At the same time existing objective circumstances don’t cause, in
the Company’s opinion, a real need for provisions for debit debts
designated by the Auditor.
For the decisions about provisions there is a formal sign necessary
(delay of payment terms agreed by contractors), and also an
informal subjective sign (high probability of risk that the debt
shall not be repaid).
In this concrete case the formal sign is absent and the debts are
not delayed by term of payments. For shareholders and investors it
is essentially and important that these are not long-term debts,
belong to economic activity of the Company in October - December
2011. For shareholders and investors it is essentially and
important also that as of 25 April 2012 45% from these obligations
is already paid.
In addition, Clause 37 of Annual Accounts Law provides for
provisions not for all debit debts in general, but only for that
part, which according to the Company’s evaluation is doubtful or
unreliable. Dynamics of return indicates absence of such debit
debts and this circumstance, unfortunately, has not been taken into
consideration by the Auditor.
The largest debtor of the Company is a Latvian company owning
assets (real estate, shares), in this connection, and also due to
its reputation the Company does not see a high probability of risk
that this debt shall not be repaid by this debtor (as the total
amount of the debt does not exceed a criterion specified in Clause
59 of Financial Instrument Market Law, it is not required to
disclose information on this partner).
In these conditions provisions seem to be unreasonable, otherwise
it is necessary to admit a need of such provisions for any
operations of economic and commercial activity, for example, for
accounts and settlements in Latvian banks, as it is also priori
impossible to estimate risks of such operations, for example,
prompt crash of Latvijas Krājbanka with termination of settlements
and loss of deposits.
At the same time the Company is going to analyze performance of
debt liabilities and if signs will occur, according to which these
provisions shall be objectively necessary, they will be certainly
executed.
The Management Board and the Council |
Pielikumi |
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