This paragraph summarises Maflow Polska Sp.zo.o.’s (former Manuli Auto Polska Sp.zo.o.) estimated asset statement drawn up in thousands of Euro. Asset and Liability statement reference date is 31 December 2008 and the company’s official balance sheet items (in Zloty) have been converted into Euro at the EUR/PLN exchange rate in force on 31/12/2008 published by the Bank of Italy.
It is noted that the 2008 balance sheet available was drawn up according to accounting standards in force in Poland (“Accounting Act” of 29 September 1994). International IAS/IFRS standards were used in those cases where no local regulations are available. Unlike that indicated for Maflow S.p.A., these annual accounts were drawn up on the assumption that the company will continue to be a going concern as there is no formal or irreversible proof to the contrary.
As for Maflow S.p.A., the company’s assets as at 28 February and 30 April 2009 are presented at the end of the analysis so that they may be compared with those as at 31 December 2008.
Maflow Polska Sp.z o.o. ASSET AND LIABILITY STATEMENT31/12/2008 ADJUSTMENTS
(in Euro/000 - EUR/PLN of 31/12/2008 )
TOTALE ATTIVO 95,340 (31,883) 63,457
Intangible fixed assets 300 (300) -
of which: research and development costs, advertising costs 22 (22) -
others 278 (278)
Tangible fixed assets 30,696 30,696
Of which: land and buildings 8,976 8.976 Systems and machinery 19,567 19,567 other assets 1,873 1,873 Fixed assets in progress and advances 280 280
Financial fixed assets - -
Stock 9,240 9,240
of which: raw, subsidiary materials and consumables 5,870 5,870 Products in progress and semi-finished products 600 600 Finished products and goods 2,748 2,748 advances 22 22 Receivables 38,985 (18,918) 20,067 of which: to customers 17,881 (102) 17,779 to subsidiaries 5,296 (5,296) - tax credits 2,261 2,261 tax advances 13,520 (13,520) - to others 27 27 Financial assets 12,665 (12,665) - Liquid assets 3,049 3,049
of which: bank and postal deposits 3,049 3,049 money and cash -
Accruals and deferrals 405 405
31/12/2008 ADJUSTED
6.4.A Intangible fixed assets
Total: 300 thousand Euros
They include:
Valuation criteria
Intangible fixed assets are entered at their invoice or manufacturing cost.
Depreciation is calculated at constant rates according to the following estimated useful life:
- development costs (5 years);
- concessions, licences and trademarks (2 years);
- SW (2 years);
- other intangible fixed assets (5 years).
Adjusted value: 0 thousand Euros
Bearing in mind the current uncertainty, it seems best to apply a very prudent approach, in line with that already adopted by Maflow S.p.A. and therefore to reduce all items analysed to zero.
6.4.B Tangible fixed assets
Total: 30,696 thousand Euros
These consist mainly of systems, machinery and buildings. In particular they include:
(Thousands of Euros)
Cost Deprec. Fund Net
Research and development costs 150 (128) 22
Other intangible fixed assets (mainly SW licences)
1,668 (1,390) 278
Net value indicated includes an overall depreciation of 15,380 thousand Euros.
It is noted that during 2008 the systems and machinery category was involved in a sale and lease back operation (ex IAS 17) , as a result of which the company recorded asset sales amounting to a net value of 4,371 thousand Euros (resulting in a capital loss of 12 thousand Euros) and increases of 4,359 thousand Euros. The residual debt entered as at 31 December 2008 amounts to 3,225 thousand Euros (of which 783 thousand Euros short term).
Moreover, tangible assets were depreciated by 101 thousand Euros in 2008 (evidence is in profit and loss account, even if not detailed in asset movement statements).
Valuation criteria
They are valued at their invoice or manufacturing cost (including any appreciation) reduced by accumulated depreciation and lasting losses in value.
Invoice or manufacturing cost includes all direct charges until the date the asset comes into operation, including any non deductable taxes and direct financial charges.
Initial values entered are increased as a result of improvements, extraordinary maintenance and expansion that result in actual increased use.
Depreciation is calculated at constant rates, as from the month the asset comes into operation.
Fixed assets in progress are valued at the actual cost sustained (to purchase or manufacture) until the balance sheet date, reduced by any lasting losses in value.
Adjusted value: 30,696 thousand Euros
On the basis of the information available there is no reason to propose any adjustment to the net value entered in the balance sheet.
(Thousand of Euros)
Land 373
Industrial and commercial buildings and technical structures 8,603
Systems and machinery 19,567
Other assets 1,873
Fixed assets in progress and advances 280 30,696
6.4.C Stock
Total: 9,240 thousand Euros
These consist mainly of raw materials (5,870 thousand Euros) and finished products (2,748 thousand Euros) and include an overall depreciation fund of 1,762 thousand Euros.
During 2008 stock depreciation increased by 1,586 thousand Euros, mainly as a result of applying depreciation rules fixed by the group to the stock acquired from Codan Rubber A/S (Denmark).
Valuation criteria
Stock is valued at invoice or manufacturing cost within the limits of the net break-up value obtained according to market trend.
Cost is determined as follows:
- for raw materials and goods, at invoice cost;
- for finished products, at manufacturing cost including all direct charges, as well as any reasonable estimated indirect manufacturing costs (variable and fixed),calculated according to normal production capacity.
Work in progress is valued at direct cost sustained, moreover considering any reasonable estimated indirect costs.
Cost flow used to value replaceable stock is weighted average cost.
Moreover, any depreciation necessary to adjust stock value to net break-up value is considered.
Adjusted value: 9,240 thousand Euros
On the basis of the information available there is no reason to propose any adjustment to the net value entered in the balance sheet.
6.4.D Credits
Total: 38,985 thousand Euros
Receivables to third parties are concentrated in the following positions (gross balances over 50 thousand Euros, as indicated in ageing list provided by the company’s management):
Age analysis resulting from management documents collected show the following overdue structure (in thousands of Euros):
Overall depreciation calculated by the company amounts to 202 thousand Euros. Receivables to associated firms consist of:
(Thousands of Euros)
Receivables to customers (net of fund of 202 thousand Euros) 17,881 5,296 Tax credit 2,261 Advance tax 13,520 Others 27 38,985 (Thousands of Euros) FIAT AUTO POLAND S.A. (FAP) 3,090 Zexel Valeo Sverige 2,123 AUDI AG 1,754 VOLVO TRUCK CORPORATION UMEPLANT 1,017 BMW AG (OXFORD) 921
BEHR GmbH&Co.KG (Volvo) 855
VOLKSWAGEN AG 769
R.I.R. (RENAULT INDUSTRIE ROUMANIE) SRL DACIA 661
11,190 Tot. Overdue 1-30 31-60 61-90 91-120 >121 4,637 3,596 342 171 224 304 of which Receivables to associated firms
Tax advances are the net result of deferred tax assets (14,841 thousand Euros) and deferred tax liabilites (1,321 thousand Euros). The following are the main temporary tax differences that result in deferred tax.
The only temporary taxable differences (generating deferred taxes) refer to profits on valuation exchange (4,351 thousand Euros).
Deferred tax assets include tax exemptions on investments in Special Economic Zones (SEZ) – relating to the Tychy plant (Poland), one of the three company units – acknowledged on 75% of the investment sustained up until 31 December 2006, amounting to 11,340 thousand Euros.
Average rate is of 19%.
Valuation criteria
(Thousands of Euros)
Maflow Components Iberica 1,102
Maflow S.p.A. 499
Maflow do Brasil Ltda 1,038 Maflow France SA 1,164 Maflow Mexico SA de C.V. 324
Man Servizi S.r.l. 13
Maflow SA 17
Maflow Components (Delian) 280
Codan Rubber 13 Codan Rubber Ltd 456 Codan France 362 Codan Argentina 28 5,296 (Thousands of Euro) Provisions for labour costs 1,508 Tax losses for activities carried outside so-called “SEZ” – Special Economic Zone 7,955 Negative Exchange Differences 4,352 Stock depreciation 1.954 Provision for invoices to be received 1,873 17,642
They are entered at their presumed realisation value, with appropriate funds entered to adjust their nominal values according to foreseeable losses.
As regards advance taxes, the following is noted: considering company activities are carried out, in part, within Special Economic Zones (SEZ), the company benefits from a tax exemption on revenue generated from the sale of goods and services achieved as a result of investments held in these zones (up to 75%). This tax relief is recorded in the balance sheet as a deferred tax asset and also deferred revenue. The deferral is then released gradually to the profit and loss account amongst “other operating revenue”, according to the useful life of the assets involved, whilst the advance tax is reduced according to actual use of the exemption on taxable income. It is noted that the tax in question can only be used up until 8 August 2016.
Adjusted value: 20,067 thousand Euros
As regards third party customers, not having any timely information on actual quality of specific positions, cover of fund must be guaranteed for those items more than 120 days’ overdue: resulting integration amounts to 102 thousand Euros.
Moreover, due to the current difficulties the whole Group is facing and in order to highlight those assets with a real possibility of encashment, intergroup credit items will be depreciated by 5,296 thousand Euros.
Lastly, due to the uncertainty as to the company’s future prospects and resulting impossibility of assessing whether tax advances can be recovered generating future taxable income deferred tax assets will be removed from the credit value, recording a negative adjustment of the overall sum of 13,520 thousand Euros. This adjustment is net of the effect of deferred tax liabilities included in the asset balance.